CONFORMED COPY

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# 1 SEPTEMBER 2004

# US$500,000,000

# 

CREDIT FACILITY
AGREEMENTbetween

# 

TEEKAY SHIPPING CORPORATIONas Parent Guarantor

# 

TEEKAY NORDIC HOLDINGS
INCORPORATEDas Original Borrower

# 

NORDEA BANK FINLAND
PLC, NEW YORK BRANCHas Bookrunner

# 

NORDEA BANK FINLAND PLC,
NEW YORK BRANCH and DNB NOR BANK ASAas Lead Arrangers

# 

NORDEA BANK FINLAND
PLC, NEW YORK BRANCHas Administrative Agent
and as Security Trustee

# THE SUBSIDIARY
GUARANTORS

and

# THE LENDERS

---

WHITE & CASE
7-11 MoorgateLondon EC2R 6HH

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# TABLE OF CONTENTS

Page

`1.    DEFINITIONS AND INTERPRETATION.............................................................................1

2.    THE CREDIT FACILITY.......................................................................................22

3.    CONDITIONS................................................................................................23

4.    DRAWDOWN..................................................................................................24

5.    SCHEDULED COMMITMENT REDUCTIONS AND REPAYMENTS............................................................25

6.    CANCELLATION..............................................................................................26

7.    VOLUNTARY PREPAYMENT......................................................................................27

8.    MANDATORY COMMITMENT REDUCTIONS AND PREPAYMENTS...........................................................28

9.    INTEREST..................................................................................................29

10.      MARKET DISRUPTION AND ALTERNATIVE INTEREST RATES.......................................................30

11.      FEES...................................................................................................31

12.      TAXES..................................................................................................32

13.      TAX RECEIPTS...........................................................................................33

14.      INCREASED COSTS........................................................................................33

15.      ILLEGALITY.............................................................................................34

16.      REPRESENTATIONS AND WARRANTIES.........................................................................35

17.      FINANCIAL INFORMATION..................................................................................40

18.      FINANCIAL CONDITION....................................................................................43

19.      COVENANTS..............................................................................................44

20.      SALE AND LEASEBACK.....................................................................................52

21.      ADDITIONAL OBLIGORS AND NEW VESSELS....................................................................55

22.      EVENTS OF DEFAULT......................................................................................56

23.      DEFAULT INTEREST.......................................................................................60

24.      GUARANTEE AND INDEMNITY................................................................................61

25.      ADMINISTRATIVE AGENT AND OBLIGORS' AGENT...............................................................64

26.      BORROWERS' INDEMNITIES.................................................................................70

27.      CURRENCY OF ACCOUNT....................................................................................71

28.      PAYMENTS...............................................................................................72

29.      SHARING AMONG THE FINANCE PARTIES......................................................................73

30.      CALCULATIONS AND ACCOUNTS..............................................................................74

31.      ASSIGNMENTS AND TRANSFERS..............................................................................76

32.      COSTS AND EXPENSES.....................................................................................78

33.      REMEDIES AND WAIVERS...................................................................................79

34.      NOTICES AND DELIVERY OF INFORMATION....................................................................79

35.      ENGLISH LANGUAGE.......................................................................................82

36.      PARTIAL INVALIDITY.....................................................................................82

37.      AMENDMENTS.............................................................................................82

38.      THIRD PARTY RIGHTS.....................................................................................84

39.      COUNTERPARTS...........................................................................................84

40.      GOVERNING LAW..........................................................................................84

41.      JURISDICTION...........................................................................................84


SCHEDULE 1 LENDERS AND COMMITMENTS..............................................................................86

SCHEDULE 2 FORM OF TRANSFER CERTIFICATE.........................................................................88

SCHEDULE 3......................................................................................................92
         PART I - CONDITIONS PRECEDENT TO FIRST DRAWDOWN........................................................92
         PART II - CONDITIONS SUBSEQUENT DOCUMENTS..............................................................95
         PART III - FORM OF OFFICER'S CERTIFICATE...............................................................96
         PART IV - INITIAL SECURITY DOCUMENTS..................................................................100

SCHEDULE 4 FORM OF DRAWDOWN REQUEST............................................................................101

SCHEDULE 5 ASSOCIATED COSTS RATE...............................................................................103

SCHEDULE 6.....................................................................................................106
         PART I - PERMITTED SALE AND LEASEBACK.................................................................106
         PART II - FORM OF ACCESSION NOTICE....................................................................107
         PART III - ACCESSION DOCUMENTS........................................................................110
         PART IV - FORM OF NOVATION DEED.......................................................................113

SCHEDULE 7 FORM OF COMPLIANCE CERTIFICATE......................................................................116

SCHEDULE 8 COMMITMENT REDUCTION SCHEDULE.......................................................................117

SCHEDULE 9 COLLATERAL VESSELS..................................................................................118

SCHEDULE 10 COLLATERAL VESSEL PROVISIONS.......................................................................121`

THIS AGREEMENT is dated 1
September 2004 (this Agreement) and made between:

(1)     TEEKAY SHIPPING CORPORATION, a Republic of Marshall Islands
          corporation(the Parent Guarantor)'

(2)     TEEKAY NORDIC HOLDINGS INCORPORATED, a Republic of Marshall Islands
          corporation (the Original Borrower);

(3)     NORDEA BANK FINLAND PLC, NEW YORK BRANCH (the
          Bookrunner);

(4)     NORDEA BANK FINLAND PLC, NEW YORK BRANCH and DNB NOR BANK ASA(the
          Lead Arrangers);

(5)     NORDEA BANK FINLAND PLC, NEW YORK BRANCH (as agent for and on behalf of
          the Finance Parties, the Administrative Agent);

(6)     NORDEA BANK FINLAND PLC, NEW YORK BRANCH(as security trustee for and on
          behalf of the Finance Parties, the Security Trustee);

(7)     THE SUBSIDIARY GUARANTORS (as defined below); and

(8)     THE LENDERS(as defined below).

1.       DEFINITIONS AND INTERPRETATION

1.1     Definitions

Except as otherwise defined, in this
Agreement the following terms have the meanings set out below.

Accession Notice
means a duly completed accession notice in the form of Part II of Schedule 6 (Form of
Accession Notice).

Additional Appraisal
Package means an appraisal relating to a Collateral Vessel provided or to be
provided pursuant to and in accordance with Clause 17.6 (Additional Appraisal
Package).

Additional Obligor
means the Leaseback Borrower or any Substitute Vessel Owner, in each case, as the context
may require.

Advancemeans, save as otherwise provided in this Agreement, an advance made or to be made (as
from time to time reduced by repayment) by the Lenders under Tranche A and/or Tranche B,
as the case may be.

Affiliatemeans in relation to a person, any other person directly or indirectly controlling,
controlled by or under direct or indirect common control with that person, and for these
purposes control shall be construed so as to include the ownership,
either directly or indirectly and legally or beneficially, of more than 33% of the issued
share capital of a company or the ability to control, either directly or indirectly, the
affairs or the composition of the board of directors (or equivalent of it) of a company
and controlling, controlled by and under
common control with shall be construed accordingly.

Annual Appraisal
Package means an appraisal prepared in relation to a Collateral Vessel provided
or to be provided pursuant to Clause 17.5 (Annual Appraisal Packages).

Appraisal Package
means in respect of a Collateral Vessel, the Initial Appraisal Package or if applicable,
the most recent Annual Appraisal Package or Additional Appraisal Package (as the case may
be), relating to such Collateral Vessel.

Approved Valuer
means any one of H. Clarkson & Co Ltd, Simpson Spence & Young Shipbrokers Ltd,
Fearnley AS, R.S. Platou AS or P. Bassoe AS or such other valuer as may be approved from
time to time by the Administrative Agent.

Associated Costs
Ratemeans, in relation to any Advance or Unpaid Sum, the rate determined
in accordance with Schedule 5 (Associated Costs Rate).

Authorisationmeans an authorisation, consent, approval, resolution, licence, exemption, filing,
notarisation or registration.

Available
Commitments means the aggregate of the Tranche A Available Commitments and the
Tranche B Available Commitments.

Available Credit
means, on any day, the sum of Free Liquidity and the aggregate of all amounts available to
be drawn by members of the Group under any revolving credit lines (excluding undrawn
revolving credit lines with less than 6 months to maturity) including, as applicable,
pursuant to this Agreement.

Bareboat Charters
means the bareboat charter arrangements in force at the date of this Agreement relating to
the Collateral Vessels Nordic Brasilia, Nordic Spirit,
Petroatlantic and Petronordic, together with any other bareboat
charters entered into from time to time pursuant to and in accordance with Clause 19.10(a)
(Chartering).

Borrowersmeans the Original Borrower and (if applicable) the Leaseback Borrower and
Borrower means either of them, as the context requires.

Break Costsmeans the amount (if any) by which:

|(a) | the interest which a Lender should have received for the period from the date of
          receipt of all or any part of its participation in an Advance or Unpaid Sum to
          the last day of the current Interest Period or Term in respect of that Advance
          or Unpaid Sum, had the principal amount of such Advance or Unpaid Sum received
          been paid on the last day of that Interest Period or Term;
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

exceeds:

|(b) | the amount which that Lender would be able to obtain by placing an amount equal
          to the principal amount of such Advance or Unpaid Sum received or recovered by
          it on deposit with a leading bank in the London interbank market for a period
          starting on the Business Day following such receipt or recovery and ending on
          the last day of the current Interest Period or Term.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Business Daymeans a day (other than a Saturday or Sunday) on which banks generally are open for
business in London and New York.

Centre of Main
Interests has the meaning given to it in Article 3(1) of Council Regulation (EC)
NO 1346/2000 of 29 May, 2000 on Insolvency Proceedings.

# Change of
Control means:

|(a) | in respect of the Parent Guarantor, any person or two or more persons acting in
          concert (excluding Resolute Investments Inc. or any successor thereto) acquires:
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (i) | legally or beneficially and either directly or indirectly, more than 50% of the
               entire issued share capital of the Parent Guarantor; or
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------

| | (ii) | the right or ability to control, either directly or indirectly, the affairs or
               the composition of the majority of the board of directors (or equivalent of it)
               of the Parent Guarantor;
| | ---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | in respect of the Original Borrower, the Parent Guarantor ceases to own:
|--- | ------------------------------------------------------------------------

| | (i) | legally or beneficially and either directly or indirectly, the entire issued
               share capital of the Original Borrower; or
| | --- | --------------------------------------------------------------------------------------------------------------------------------------

| | (ii) | the right or ability to control, either directly or indirectly, the affairs or
               the composition of the board of directors (or equivalent of it) of the Original
               Borrower; and
| | ---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) | in respect of the Leaseback Borrower, any change in the constitution or identity
          of the partnership of the Leaseback Borrower which has not been previously
          approved by the Administrative Agent (acting reasonably), provided that this
          paragraph shall not apply to a transfer of an equity interest in the Leaseback
          Borrower by an entity (x) to another member of its group or (y) to a member of
          the Group, if the completion of such transfer has been notified to the
          Administrative Agent within 10 Business Days following the occurrence of the
          same,
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

in each case by virtue of ownership
of share capital, contract or otherwise.

Charterer means, from
time to time, each member of the Group or (if applicable) the Leaseback Group which has
entered into a Relevant Third Party Charter with a third party in respect of a Collateral
Vessel to the extent that such Relevant Third Party Charter remains in effect at the
relevant time.

Collateral Vessels
means the Tranche A Vessels and the Tranche B Vessels.

Collateral Vessel
Provisions means each of the terms and conditions contained in Schedule 10
(Collateral Vessel Provisions).

Commitmentmeans, in relation to a Lender at any time, its Tranche A Commitment and/or its
Tranche B Commitment, as the context may require.

Commitment Reduction
Date means each of the dates referred to in the applicable column of Schedule 8
(Commitment Reduction Schedule), provided that if any such day is not a Business
Day, the Commitment Reduction Date will be the next succeeding Business Day in the then
current calendar month (if there is one) or the immediately preceding Business Day (if
there is not).

Compliance
Certificatemeans a certificate substantially in the form set out in
Schedule 7 (Form of Compliance Certificate).

Credit Facility
means the credit facility to be provided to the Borrowers pursuant to Clause 2.1
(Revolving Credit Facility) and Clause 2.2 (Consolidation on Leaseback
Completion Date).

Cross Guarantee
Obligations means, from time to time, the aggregate of:

|(a) | the Tranche A Obligations;
|--- | --------------------------

|(b) | the Tranche B Obligations; and
|--- | ------------------------------

|(c) | all other amounts due and payable to any Finance Party by the Borrowers (or
          either of them) under the Finance Documents,
|--- | ----------------------------------------------------------------------------------------------------------------------------------

in each case, as applicable at the
relevant time.

Cross Guarantors
means the Original Borrower and the Subsidiary Guarantors (excluding the Tranche A Vessel
Owners).

Default means an
Event of Default or any event or circumstance which (with the expiry of a grace period,
the giving of notice, the making of any determination under any of the Finance Documents
or any combination of any of the foregoing) would be an Event of Default.

Disposal Date in
relation to a sale or other disposal to a third party of a Collateral Vessel and except as
otherwise provided, means the date on which such sale or other disposal is completed by
delivery of that Collateral Vessel to the relevant person acquiring such Collateral
Vessel.

Document of
Compliance has the meaning given to it in the ISM Code.

Drawdown Datemeans the date on which an Advance is (or is requested to be) made under this
Agreement.

Drawdown
Requestmeans a duly completed notice in the form set out in Schedule 4
(Form of Drawdown Request).

Earnings in
relation to a Collateral Vessel, means:

|(a) | all freights, hires and any other moneys whatsoever which may at any time be
          earned by, or become payable to or for the account of, its owner and which arise
          out of or as a result of the ownership or operation of the relevant Collateral
          Vessel by such owner or its agents (net of normal brokerage commissions);
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | all moneys and claims for moneys due and to become due to its owner under, and
          all claims for damages arising out of the breach of, any charter or contract of
          affreightment which may be entered into in relation to the relevant Collateral
          Vessel and any and all claims and causes of action for money, losses or damages
          that may accrue to or belong to such owner and which arise out of or which are
          in any way connected with the present or future use, operation or management of
          such Collateral Vessel; and
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) | all moneys and claims for moneys due and to become due to its owner, and all
          claims for damages in respect of a requisition for hire (other than a
          requisition for hire constituting a total loss) or use of the relevant
          Collateral Vessel or its owners interest therein.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Encumbrance means:

|(a) | a mortgage, charge, pledge, lien or other encumbrance or security interest
          securing any obligation of any person;
|--- | ---------------------------------------------------------------------------------------------------------------------------

|(b) | any arrangement under which money or claims to, or the benefit of, a bank or
          other account may be applied, set-off or made subject to a combination of
          accounts so as to effect payment of sums owed or payable to any person; or
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) | any other type of preferential arrangement (including title transfer and
          retention arrangements) having a similar effect.
|--- | -----------------------------------------------------------------------------------------------------------------------------------

Event of
Defaultmeans any of the events or circumstances described as such in
Clause 22 (Events of Default).

Environmental
Affiliate means an agent or employee of a Subsidiary Guarantor or a person in a
contractual relationship with a Subsidiary Guarantor in respect of the Collateral Vessel
owned by it (including, without limitation, the operation of or the carriage of cargo of
such Collateral Vessel).

Environmental
Approvals means any present or future permit, licence, approval, ruling,
variance, exemption or other authorisation required under the applicable Environmental
Laws.

Environmental
Claim means any and all enforcement, clean-up, removal, administrative,
governmental, regulatory or judicial actions, orders, demands or investigations instituted
or completed pursuant to any Environmental Laws or Environmental Approvals together with
any claims made by any third person relating to damage, contribution, loss or injury
resulting from any Environmental Incident.

Environmental
Incident means:

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

|(b) | any incident in which Environmentally Sensitive Material is released from a
          vessel other than such Collateral Vessel and which involves a collision between
          that Collateral Vessel and such other vessel or some other incident of
          navigation or operation, in either case, in connection with which the relevant
          Collateral Vessel is actually or potentially liable to be arrested, attached,
          detained or injuncted and/or where any guarantor, any manager (or any
          sub-manager of such Collateral Vessel) or any of its officers, employees or
          other persons retained or instructed by it (or such sub-manager) are 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 such Collateral Vessel and in connection with which that
          Collateral Vessel is actually or potentially liable to be arrested and/or where
          any guarantor, any manager (or any sub-manager of the relevant Collateral
          Vessel) or any of its officers, employees or other persons retained or
          instructed by it (or such sub-manager) are at fault or allegedly at fault or
          otherwise liable to any legal or administrative action.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Environmental Laws
means all present and future laws, regulations, treaties and conventions of any applicable
jurisdiction which:

|(a) | have as a purpose or effect the protection of, and/or prevention of harm or
          damage to, the environment;
|--- | -----------------------------------------------------------------------------------------------------------------

|(b) | relate to the carriage of Environmentally Sensitive Material or to actual or
          threatened releases of Environmentally Sensitive Material;
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------

|(c) | provide remedies or compensation for harm or damage to the environment; or
|--- | --------------------------------------------------------------------------

|(d) | relate to Environmentally Sensitive Materials or health or safety matters.
|--- | --------------------------------------------------------------------------

Environmentally Sensitive
Material means (i) oil and oil products and (ii) any other waste, pollutant,
contaminant or other substance (including any liquid, solid, gas, ion, living organism or
noise) that may be harmful to human health or other life or the environment or a nuisance
to any person or that may make the enjoyment, ownership or other territorial control of
any affected land, property or waters more costly for such person to a material degree.

Facility
Office  means:

|(a) | in relation to the Administrative Agent, the office identified with its
          signature below or such other office as it may, from time to time, select for
          performance of its agency function under this Agreement; and
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | in relation to a Lender, the office from time to time designated by it to the
          Administrative Agent for the purposes of this Agreement (or, in the case of a
          Transferee, at the end of the Transfer Certificate to which it is a party as
          Transferee) or such other office as such Lender may from time to time select.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Fees Lettermeans the fees letter dated 11 June 2004 from Nordea Bank Finland Plc, New York Branch
(as Bookrunner, Lead Arrangers and Administrative Agent) to the Borrower.

Finance
Documents means:

|(a) | this Agreement, any Novation Deeds, Accession Notices, Transfer Certificates and
          the Fees Letter;
|--- | -----------------------------------------------------------------------------------------------------------

|(b) | the Security Trust Deed;
|--- | ------------------------

|(c) | the Security Documents;
|--- | -----------------------

|(d) | any other agreement or document entered into or executed pursuant to or
          contemplated by any of the foregoing documents; and
|--- | -------------------------------------------------------------------------------------------------------------------------------------

|(e) | any other agreement or document designated a Finance Document in
          writing by the Administrative Agent with the agreement of an Obligor.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------

Finance Partiesmeans the Administrative Agent, the Bookrunner, the Lead Arrangers, the Security
Trustee and the Lenders and Finance Party means any of them.

Financial
Indebtedness means any Indebtedness of any person for or in respect of:

|(a) | moneys borrowed or raised;
|--- | --------------------------

|(b) | amounts raised under any acceptance credit facility;
|--- | ----------------------------------------------------

|(c) | amounts raised pursuant to any note purchase facility or the issue of bonds,
          notes, debentures, loan stock or similar instruments;
|--- | --------------------------------------------------------------------------------------------------------------------------------------------

|(d) | amounts raised pursuant to any issue of shares of the relevant person which are
          expressed to be redeemable;
|--- | ---------------------------------------------------------------------------------------------------------------------

|(e) | the amount of any liability in respect of leases or hire purchase contracts
          which would, in accordance with GAAP, be treated as finance or capital leases;
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(f) | the amount of any liability in respect of any purchase price for assets or
          services, the payment of which is deferred for a period in excess of one hundred
          and eighty (180) days;
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(g) | all reimbursement obligations whether contingent or not in respect of amounts
          paid under a letter of credit or similar instrument;
|--- | --------------------------------------------------------------------------------------------------------------------------------------------

|(h) | all interest rate, currency swap and similar agreements obliging the making of
          payments, whether periodically or upon the happening of a contingency (and the
          value of such Indebtedness shall be the mark-to-market valuation of such
          transaction at the relevant time);
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(i) | amounts raised under any other transaction (including, without limitation, any
          forward sale or purchase agreement) having the commercial effect of a borrowing;
          and
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(j) | any guarantee of Indebtedness falling within paragraphs (a) to (i) above.
|--- | -------------------------------------------------------------------------

Financial Quarter
means the period commencing on the day immediately following any Quarter Date in each
year, and ending on the next succeeding Quarter Date.

Free Liquidity
means, on any date, the aggregate of:

|(a) | cash and cash equivalents; and
|--- | ------------------------------

|(b) | marketable securities,
|--- | ----------------------

to which the Parent Guarantor shall
have free, immediate and direct access and as may be ascertained from the balance sheets
contained in the annual or quarterly statements for the Group provided to the Lenders
under this Agreement.

GAAPmeans
generally accepted accounting principles in the United States of America.

GMTmeans
Greenwich Mean Time.

Groupmeans
the Parent Guarantor and its Subsidiaries from time to time.

Guarantorsmeans the Subsidiary Guarantors, the Parent Guarantor and following the Leaseback
Completion Date, the Original Borrower and Guarantor means any one of
them, as the context requires.

Holding Companymeans a company, corporation or partnership of which another company, corporation or
partnership is a Subsidiary.

Increased
Costmeans:

|(a) | any reduction in the rate of return from the Credit Facility or on a Finance
          Partys (or an Affiliates) overall capital;
|--- | -----------------------------------------------------------------------------------------------------------------------------------

|(b) | any additional or increased cost; or
|--- | ------------------------------------

|(c) | any reduction of any amount due and payable under any Finance Document,
|--- | -----------------------------------------------------------------------

which is incurred or suffered by a
Finance Party or any of its Affiliates to the extent that it is attributable to that
Finance Party having agreed to make available its Commitment or having funded or performed
its obligations under any Finance Document.

Indebtednessincludes any obligation (whether incurred as principal or as surety) for the payment
or repayment of money, whether present or future, actual or contingent (including interest
and other charges relating to it).

Initial Appraisal
Package means, in relation to a Collateral Vessel, a written estimate (to be
provided pursuant to Clause 3.1 (Conditions Precedent)) confirmed in writing by an
Approved Valuer and dated no more than 30 days prior to its delivery to the Administrative
Agent as to inter alia the Market Value of the relevant Collateral Vessel as at the
date of such estimate.

Initial Security
Documentsmeans the documents listed in Part IV of Schedule 3 (Initial
Security Documents).

Instructing
Groupmeans:

|(a) | before the making of any Advance under this Agreement, a Lender or group of
          Lenders whose Available Commitments amount in aggregate to more than 66 2/3% of
          all the Available Commitments; and
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | thereafter, a Lender or group of Lenders to whom in aggregate more than 66 2/3%
          of the aggregate amount of the Outstandings are (or if there are no Outstandings
          at such time, immediately prior to repayment of all such Outstandings, were
          then) owed.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Interest Periodmeans, save as otherwise provided in this Agreement, any of those periods mentioned in
Clause 9.1 (Interest Periods following Leaseback Completion Date).

Intra-Group Charter
Party means each of the persons being party to an Intra-Group Charter from time
to time.

Intra-Group
Charters means the chartering agreements or other arrangements between members
of the Group in effect from time to time in respect of the Collateral Vessels.

ISM Code means the
International Management Code for the Safe Operation of Ships and for Pollution Prevention
adopted by the International Maritime Organisation.

Law means any:

|(a) | common or customary law;
|--- | ------------------------

|(b) | constitution, decree, judgment, legislation, order, ordinance, regulation,
          statute, treaty or other legislative measure in any jurisdiction; and
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) | present or future directive, regulation, practice, concession or requirement
          which has the force of law and which is issued by any governmental body, agency
          or department or any central bank or other fiscal, monetary, regulatory,
          self-regulatory or other authority or agency.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Leaseback Borrower
has the meaning given to it in Part I of Schedule 6 (Permitted Sale and Leaseback).

Leaseback Completion
Date means the Business Day specified by the Administrative Agent in the
Leaseback Completion Date Notice on which the completion of the Permitted Sale and
Leaseback is deemed to have occurred for the purposes of this Agreement.

Leaseback Completion Date
Notice has the meaning given to it in Clause 20.3 (Leaseback Completion
Date).

Leaseback
Disclosures means the documents and other information relating to the Permitted
Sale and Leaseback provided by the Parent Guarantor to the Lenders (through the
Administrative Agent) prior to the date of this Agreement.

Leaseback Group
means the Leaseback Borrower and each of the Tranche A Vessel Owners.

Leaseback Period
means the period commencing on the date of this Agreement and ending on the first
anniversary of such date.

Lendermeans a person which:

|(a) | is named in Schedule 1 (Lenders and Commitments); or
|--- | ----------------------------------------------------

|(b) | has become a party to this Agreement in accordance with the provisions of Clause
          31 (Assignments and Transfers),
|--- | --------------------------------------------------------------------------------------------------------------------------

which (in each case) has not ceased
to be a party to this Agreement in accordance with the terms of this Agreement.

LIBORmeans, in relation to any amount owed by an Obligor under this Agreement on which
interest for a given period is to accrue:

|(a) | the rate per annum which appears on the Telerate page 3750 (British
          Bankers Association Interest Settlement Rates) (or such other page as may
          replace such page 3750 on such system or on any other system of the information
          vendor for the time being designated by the British Bankers Association to
          calculate the BBA Interest Settlement Rate (as defined in the British
          Bankers Associations Recommended Terms and Conditions dated August
          1985)) for such period at or about 11.00 a.m. on the Quotation Date for such
          period; or
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | if no such rate is displayed, the arithmetic mean (rounded upwards, if not
          already such a multiple, to one sixteenth of a percent) of the rates (as
          notified to the Administrative Agent) at which each of the Reference Banks was
          offering to prime banks in the London interbank market deposits in dollars for
          such period at or about 11.00 a.m. on the Quotation Date for such period.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Loss or Sale Commitment
Reduction in relation to a total loss or sale (or other disposal to a third
party) of a Collateral Vessel, means an amount equal to:

|(a) | the Total Tranche A Commitments (in the case of a Tranche A Vessel) or the Total
          Tranche B Commitments (in the case of a Tranche B Vessel); multiplied by
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | the applicable fraction,
|--- | ------------------------

and for the purposes of this
definition, applicable fraction shall mean the Market Value of the
relevant Collateral Vessel divided by the aggregate Market Value of all such Tranche A
Vessels or Tranche B Vessels (as the case may be).

MAP Pollution
means mortgagee additional perils (pollution) insurance.

Marginmeans 0.70% per annum.

Market Value
means, in relation to one or more Collateral Vessels (as the context may require) at any
time, the appraised value thereof in dollars determined on the basis of a sale (for cash
and prompt delivery) by a willing seller to a willing buyer, free of any contract of
affreightment, charter and encumbrances and at arms length on normal commercial
terms, being the appraised value referred to in the Appraisal Package relating to each
such Collateral Vessel.

Material Adverse
Effect means a material adverse change in, or a material adverse effect on:

|(a) | the financial condition, assets, prospects or business of any Obligor or on the
          consolidated financial condition, assets, prospects or business of the Group;
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | the ability of any Obligor (or if applicable, the Parent Guarantor on its
          behalf) to perform and comply with its obligations under any Finance Document or
          to avoid any Default;
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) | the validity, legality or enforceability of any Finance Document; or
|--- | --------------------------------------------------------------------

|(d) | the validity, legality or enforceability of any Security expressed to be created
          pursuant to any Security Document or the priority and ranking of any such
          Security,
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

provided that, in determining whether
any of the foregoing circumstances shall constitute such a material adverse change or
material adverse effect for the purposes of this definition, the Finance Parties shall
consider such circumstance in the context of (x) the Group taken as a whole and (y) the
ability of the Parent Guarantor to perform each of its obligations under the Finance
Documents.

Material
Subsidiarymeans:

|(a) | the Original Borrower and each Subsidiary Guarantor; and
|--- | --------------------------------------------------------

|(b) | any other Subsidiary of the Parent Guarantor or of the Leaseback Borrower (as
          the case may be) whose assets, as determined in accordance with GAAP and as
          shown from the most recent financial statements available to the Administrative
          Agent relating to it, as multiplied by the Relevant Percentage in respect of
          such Subsidiary, equal or exceed 10% of the aggregate value of the assets of the
          Group or the Leaseback Group (as the case may be) as determined in accordance
          with GAAP and as shown from the most recently available financial statements of
          the Group or the Leaseback Group (as applicable),
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

provided that:

| | (i) | in respect of any Subsidiary of the Parent Guarantor or of the Leaseback
               Borrower (as applicable), only the value of its assets as multiplied by the
               Relevant Percentage in respect of such Subsidiary shall be taken into account in
               the computation of the value of the assets of the Group or the Leaseback Group
               (as the case may be); and
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (ii) | a statement by the auditors of the Parent Guarantor or (if applicable) the
               Leaseback Borrower to the effect that, in their opinion, a Subsidiary of the
               Parent Guarantor or the Leaseback Borrower (as the case may be) is or is not or
               was or was not at any particular time a Material Subsidiary shall, in the
               absence of manifest error, be conclusive and binding on each of the parties to
               this Agreement.
| | ---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Maturing Advance
has the meaning given to it in Clause 5.1(d) (Commitment Reduction and Repayment).

Maturity Date
means the date falling on the tenth anniversary of this Agreement.

Member State means
a member of the European Community.

MII means
mortgagee interest insurance.

Necessary
Authorisationsmeans all Authorisations of any person including any
government or other regulatory authority required by applicable Law to enable it to:

|(a) | lawfully enter into and perform its obligations under the Transaction Documents
          to which it is party;
|--- | ---------------------------------------------------------------------------------------------------------------

|(b) | ensure the legality, validity, enforceability or admissibility in evidence in
          England and, if different, its jurisdiction of incorporation, of such
          Transaction Documents to which it is party; and
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) | carry on its business from time to time.
|--- | ----------------------------------------

New Vessel means
any vessel which:

|(a) | is a conventional tanker or shuttle tanker, of aframax or suezmax size, with a
          double hull;
|--- | -----------------------------------------------------------------------------------------------------

|(b) | has a Market Value equal to or greater than;
|--- | --------------------------------------------

| | (i) | 1 times (in the case of a vessel built in 1998 or later);
| | --- | ---------------------------------------------------------

| | (ii) | 1.25 times (in the case of a vessel built in 1997 or 1996); or
| | ---- | --------------------------------------------------------------

| | (iii) | 1.50 times (in the case of a vessel built in 1995 or earlier),
| | ----- | --------------------------------------------------------------

| |  | that of the Collateral Vessel or Collateral Vessels (taken together) which such vessel
substitutes or is to substitute, pursuant to Clause 19.12(b)(ii) (Disposal of Assets
and Collateral Vessel Substitution);
| |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) | is registered with a Pre-Approved Flag and has a classification with a
          Pre-Approved Classification Society (or such other flag and/or classification
          society as may be acceptable to the Administrative Agent); and
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(d) | has been built no earlier than 1992,
|--- | ------------------------------------

in each case, as determined by the
Administrative Agent (in consultation with the Parent Guarantor) on the basis of such
information as may be required by the Administrative Agent for the purposes of such
determination pursuant to Clause 17.6 (Additional Appraisal Package) or otherwise
provided that, notwithstanding the foregoing criteria, for the purposes of a substitution
of the Nordic Sarita for the Collateral Vessel Falster Spirit pursuant to and
in accordance with Clause 19.12(b)(ii) (Disposal of Assets and Collateral Vessel
Substitution), the Nordic Sarita shall constitute a New Vessel for the
purposes of this Agreement.

Nordic Sarita
means the Suezmax double hull shuttle tanker built in 1986 at the Daewoo yard with a dwt
of 124,472 which (as at the date of this Agreement) is owned by Ugland Nordic Shipping AS
and is registered on Norwegian flag.

Novation Deedmeans a duly completed novation deed substantially in the form of Part IV of Schedule
6 (Form of Novation Deed).

Obligorsmeans the Borrowers and the Guarantors and Obligor means any of
them.

Obligors
Agentmeans the Parent Guarantor in its capacity as agent for the
Obligors, pursuant to Clause 25.17 (Obligors Agent).

Original Consolidated
Financial Statementsmeans the audited consolidated financial statements
of the Parent Guarantor in respect of its financial year ended 31 December 2003.

Original
Guarantors means the Subsidiary Guarantors being original parties to this
Agreement.

Original
Obligorsmeans the Original Guarantors, the Parent Guarantor and the
Original Borrower.

Other Parties has
the meaning given to it in Clause 21.2 (Novation of Leaseback Borrower).

Outstandingsmeans, at any time, the aggregate outstanding amount (if any) of all Advances, at such
time.

Participating Member
Statemeans any member of the European Community that at the relevant
time has adopted the euro as its lawful currency in accordance with legislation of the
European Community relating to Economic and Monetary Union.

Permitted Liens in
relation to a Collateral Vessel, means:

|(a) | liens for master and crews wages, liens in respect of salvage (including
          contract salvage) and general average; and
|--- | ------------------------------------------------------------------------------------------------------------------------------

|(b) | other liens covered by insurance, repairers liens and liens incurred in
          the ordinary course of trading such Collateral Vessel, of an aggregate amount
          not exceeding $5,000,000.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Permitted Sale and
Leaseback means a sale and leaseback transaction entered into or to be entered
into pursuant to and in accordance with Clause 20 (Sale and Leaseback).

Petrobras means
Petróleo Brasileiro S.A. and/or any of its Subsidiaries and Affiliates.

Pre-Approved Classification
Societies means Det Norske Veritas, Lloyds Register of Shipping and The
American Bureau of Shipping.

Pre-Approved Flag
means a vessel registration in a Pre-Approved Jurisdiction, NIS or (solely in the case of
the Collateral Vessels Nordic Brasilia and Nordic Spirit or any
other Collateral Vessels on bareboat charter to Petrobras in accordance with this
Agreement) Brazil.

Pre-Approved
Jurisdiction means the Marshall Islands, the Bahamas, Liberia and the Cayman
Islands.

Proportionin relation to a Lender, means:

|(a) | in relation to an Advance to be made under this Agreement, the proportion borne
          by such Lenders Available Commitments in respect of the Credit Facility to
          all the Available Commitments;
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | in relation to an Advance or Advances outstanding under this Agreement, the
          proportion borne by such Lenders share of such Advance or Advances to the
          amount of all Advances for the time being;
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) | if paragraph (a) does not apply and there are no Outstandings, the proportion
          borne by the aggregate of such Lenders Available Commitments to all the
          Available Commitments (or if the Available Commitments are then zero, by its
          Available Commitment to all of the Available Commitments immediately prior to
          their reduction to zero); and
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(d) | if paragraph (b) does not apply and there are any Outstandings, the proportion
          borne by such Lenders share of the Outstandings to the amount of all the
          Outstandings for the time being.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Quarter Datemeans any of 31 March, 30 June, 30 September and 31 December.

Quotation Datemeans, in relation to any period for which an interest rate is to be determined, 2
Business Days before the first day of that period.

Recovering Finance
Party has the meaning given to it in Clause 29.1 (Payments to Finance
Parties).

Reference Banksmeans the principal London offices of HSBC Bank plc, The Royal Bank of Scotland plc
and Lloyds TSB Bank plc or such other bank or banks as may be appointed as such by the
Administrative Agent after consultation with the Parent Guarantor.

Relevant
Percentage means, in respect of any Subsidiary of the Parent Guarantor or the
Leaseback Borrower (as applicable) at any time, the percentage of the equity share capital
or the partnership capital, as the case may be, of such Subsidiary which is beneficially
owned (free from Encumbrances) by the Parent Guarantor or the Leaseback Borrower (as the
case may be) at such time.

Relevant Third Party
Charters means the Third Party Time Charters and the Bareboat Charters which,
from time to time, have an unexpired term in excess of 36 months, at such time.

Rollover Advance
has the meaning given to it in Clause 5.1(d) (Commitment Reduction and Repayment).

Rollover Date
means in relation to any Advance (or if the Leaseback Completion Date has occurred, any
Tranche B Advance), the last day of its Term provided that, if any such day is not a
Business Day, the Rollover Date will be the next succeeding Business Day in the then
current calendar month (if there is one) or the preceding Business Day (if there is not).

Safety Management
Certificate has the meaning given to it in the ISM Code.

Securitymeans a mortgage, charge, pledge, lien or encumbrance or other security interest
securing any obligation of any person or any other agreement or arrangement having a
similar effect.

Security
Documents  means:

|(a) | each of the Initial Security Documents;
|--- | ---------------------------------------

|(b) | any other document (executed at any time) conferring or evidencing any
          Encumbrance, guarantee or other assurance against financial loss for, or in
          respect of, any of the obligations of the Obligors (or any of them) under this
          Agreement (including, but not limited to, any vessel mortgage or deed of
          covenant delivered in respect of such obligations pursuant to this Agreement
          which is not an Initial Security Document); and
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) | any other document executed at any time pursuant to any covenant in any of the
          Security Documents referred to in paragraph (a) or (b) above.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------

Security Trust
Deed means the security trust deed entered into or to be entered into in
relation to this Agreement betweenthe Parent Guarantor and the Finance Parties.

Sharing Payment
has the meaning given to it in Clause 29.1 (Payments to Finance Parties).

Subsidiaryof a company, corporation or partnership means any company, corporation or
partnership:

|(a) | more than 50% of the issued share capital or equity capital of which is legally
          or beneficially owned, directly or indirectly, by the first-mentioned company,
          corporation or partnership; or
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | where the first-mentioned company, corporation or partnership owns the right or
          ability to control directly or indirectly the affairs or the composition of the
          board of directors (or equivalent of it, if applicable) of such company or
          corporation; or
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) | which is a Subsidiary of another Subsidiary of the first-mentioned company,
          corporation or partnership.
|--- | -----------------------------------------------------------------------------------------------------------------

Subsidiary
Guarantors means the entities named under the heading Vessel and
Owner in Schedule 9 (Collateral Vessels) as the owners of the relevant
Collateral Vessels and each Substitute Vessel Owner which has acceded to this Agreement as
a Subsidiary Guarantor (excluding any Superseded Guarantor or other entity which has
ceased to be a Subsidiary Guarantor in accordance with this Agreement).

Substitute Vessel
Owner means a Subsidiary (or entity which is to become a Subsidiary) of the
Parent Guarantor or the Leaseback Borrower (as applicable) to whom ownership of a
Collateral Vessel is (or is to be) transferred pursuant to and in accordance with
sub-paragraph (i) or (ii) (as the case may be) of Clause 19.12(b) (Disposal of Assets
and Collateral Vessel Substitution), in each case, as the context may require.

Superseded
Guarantor means a Subsidiary Guarantor which has transferred (or is to transfer)
the Collateral Vessel owned by it pursuant to and in accordance with sub-paragraph (i) or
(ii) (as the case may be) of Clause 19.12(b) (Disposal of Assets and Collateral Vessel
Substitution).

Supplemental Leaseback
Disclosures means any documents or other information relating to the Permitted
Sale and Leaseback delivered from time to time following the execution of this Agreement
pursuant to Clause 20.4 (Supplemental Leaseback Disclosures).

Term in relation
to an Advance, means the period for which such Advance is borrowed, as specified in the
relevant Drawdown Request or as otherwise provided pursuant to this Agreement.

Third Party Time
Charters means each time charter from time to time entered into in respect of a
Collateral Vessel between a member of the Group or (if applicable) the Leaseback Group and
a third party.

Total Debt means
the aggregate of:

|(a) | the amount calculated in accordance with GAAP shown as each of long term
          debt, short term debt and current portion of long term
          debt on the latest consolidated balance sheet of the Parent Guarantor; and
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | the amount of any liability in respect of any lease or hire purchase contract
          entered into by the Parent Guarantor and/or any of its Subsidiaries which would,
          in accordance with GAAP, be treated as a finance or capital lease.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Total Loss Date in
relation to the total loss of a Collateral Vessel, means:

|(a) | if it consists of an actual total loss, at noon GMT on the actual date of loss
          or, if that is not known, on the date on which the Collateral Vessel was last
          heard of;
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | if it consists of a requisitioning for title, at noon GMT on the date on which
          the same is expressed to take effect by the person making the same; and
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) | if it consists of a constructive, compromised, arranged or agreed total loss, at
          noon GMT on the date on which a notice of abandonment of the Collateral Vessel
          is given to her insurers for the time being or (if her insurers for the time
          being do not admit liability in respect of such claim for total loss) at the
          time on which a total loss is subsequently adjudged to have occurred by a
          competent court or arbitration tribunal or liability in respect thereof as a
          total loss is admitted by insurers.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Total Tranche A
Commitments means, at any time, the aggregate of the Tranche A Commitments of
the Lenders at such time.

Total Tranche B
Commitments means, at any time, the aggregate of the Tranche B Commitments of
the Lenders at such time.

Tranche A has the
meaning given to it in Clause 2.1(a) (Revolving Credit Facility).

Tranche A Available
Commitment means, in relation to a Lender, at any time and save as otherwise
provided in this Agreement, its Tranche A Commitment at such time adjusted to take account
of:

|(a) | any cancellation or reduction of it or any transfer by such Lender or any
          transfer to it, in each case, pursuant to the terms of this Agreement; and
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | in the case of any proposed Advance, the proportion of any other Advance
          corresponding to Tranche A which, pursuant to any other Drawdown Request, is to
          be made on or before the proposed Drawdown Date,
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

less the amount of its share of the
Tranche A Outstandings at such time, provided always that such amount shall not be less
than zero.

Tranche A
Commitment means, in relation to a Lender at any time, and save as otherwise
provided in this Agreement (including by virtue of the operation of Clause 20.6(b)(i)
(Collateral Vessel Conversion)), the amount set opposite its name in the relevant
column of Schedule 1 (Lenders and Commitments) or as specified in the Transfer
Certificate pursuant to which such Lender becomes a party to this Agreement.

Tranche A Commitment
Reduction means the amount referred to in the applicable column in Schedule 8
(Commitment Reduction Schedule) in respect of Tranche A for such Commitment
Reduction Date, adjusted to reflect the effect of the operation (if any) of Clause
20.6(b)(ii) (Collateral Vessel Conversion).

# Tranche Adjustment
Amount means:

|(a) | the aggregate Market Value of the Tranche B Vessels which are to be the subject
          of the relevant conversion; divided by
|--- | --------------------------------------------------------------------------------------------------------------------------------

|(b) | the aggregate Market Value of all the Tranche B Vessels immediately prior to
          such conversion; multiplied by
|--- | ---------------------------------------------------------------------------------------------------------------------

|(c) | the aggregate Tranche B Commitments or (for the purposes of an adjustment to the
          Tranche A Outstandings or Tranche B Outstandings (as the case may be) under
          Clause 20.6(b)(i) (Collateral Vessel Conversion)) the Tranche B
          Outstandings immediately prior to such conversion,
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

as determined by the Administrative
Agent (in consultation with the Parent Guarantor) on the basis of the Additional Appraisal
Packages required by the Administrative Agent for the purposes of such determination
pursuant to Clause 17.6 (Additional Appraisal Package) or such other Appraisal
Packages as the Administrative Agent may select.

Tranche A
Obligations means, at any time, the Tranche A Outstandings and all interest
(including default interest) accrued but unpaid in respect of Tranche A at the relevant
time pursuant to this Agreement.

Tranche A
Outstandings means, at the relevant time, the aggregate outstanding principal
amount of the Tranche A Advances, at such time.

Tranche A Vessel
Owners means, as applicable from time to time, the Subsidiary Guarantors being
the owners of the Tranche A Vessels.

Tranche A Vessels
means the vessels referred to under the heading Vessel and Owner in Schedule 9
(Collateral Vessels) (subject to any substitution (in relation to a New Vessel) or
conversion (from a Tranche B Vessel) or disposal from time to time of such vessels
pursuant to and in accordance with Clause 19.12(b) (Disposal of Assets and Collateral
Vessel Substitution) and/or Clause 20.6 (Collateral Vessel Conversion)).

Tranche B has the
meaning given to it in Clause 2.1(b) (Revolving Credit Facility).

Tranche B Available
Commitment means, in relation to a Lender, at any time and save as otherwise
provided in this Agreement, its Tranche B Commitment at such time adjusted to take account
of:

|(a) | any cancellation or reduction of it or any transfer by such Lender or any
          transfer to it, in each case, pursuant to the terms of this Agreement; and
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | in the case of any proposed Advance, the proportion of any other Advance
          corresponding to Tranche B which, pursuant to any other Drawdown Request, is to
          be made on or before the proposed Drawdown Date,
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

less the amount of its share of the
Tranche B Outstandings at such time, provided always that such amount shall not be less
than zero.

Tranche B
Commitment means, in relation to a Lender at any time, and save as otherwise
provided in this Agreement (including by virtue of the operation of Clause 20.6(b)(i)
(Collateral Vessel Conversion)), the amount set opposite its name in the relevant
column of Part I of Schedule 1 (Lenders and Commitments) or as specified in the
Transfer Certificate pursuant to which such Lender becomes a party to this Agreement.

Tranche B Commitment
Reduction means the amount referred to in the applicable column in Schedule 8
(Commitment Reduction Schedule) in respect of Tranche B for such Commitment
Reduction Date, adjusted to reflect the operation (if any) of Clause 20.6(b)(ii)
(Collateral Vessel Conversion).

Tranche B
Obligations means, at any time, the Tranche B Outstandings, together with all
interest (including default interest) accrued but unpaid in respect of Tranche B at the
relevant time pursuant to this Agreement.

Tranche B
Outstandings means, at any time, the aggregate outstanding amount of the Tranche
B Advances, at such time.

Tranche B Vessels
means the vessels referred to under the heading Vessel and Owner in Schedule 9
(Collateral Vessels) (subject to any substitution (in relation to a New Vessel) or
conversion (to a Tranche A Vessel) or disposal from time to time of such vessels pursuant
to and in accordance with Clause 19.12(b) (Disposal of Assets and Collateral Vessel
Substitution) and/or Clause 20.6 (Collateral Vessel Conversion)).

Transaction
Documentsmeans:

|(a) | the Finance Documents; and
|--- | --------------------------

|(b) | the Relevant Third Party Charters.
|--- | ----------------------------------

Transfer
Certificatemeans a duly completed transfer certificate in the form set
out in Schedule 2 (Form of Transfer Certificate) and signed by a Lender and a
Transferee whereby such Lender seeks to procure the transfer to such Transferee of all or
a part of such Lenders rights, benefits and obligations under this Agreement as
contemplated in Clause 31 (Assignments and Transfers).

Transfer Datemeans, in relation to any Transfer Certificate, the date for the making of the
transfer as specified in such Transfer Certificate.

Transfereemeans a person to which a Lender seeks to transfer all or part of its rights, benefits
and obligations under this Agreement pursuant to and in accordance with Clause 31
(Assignments and Transfers).

Unpaid Sum means
any sum due and payable by an Obligor under any Finance Document but unpaid.

# 1.2     Accounting
Expressions

All accounting expressions which are
not otherwise defined in this Agreement shall be construed in accordance with GAAP.

# 1.3     Construction
(General)

Unless a contrary indication appears,
any reference in this Agreement to:

the Administrative
Agent, the Bookrunner, a Lead Arranger,
the Security Trustee or a Lender shall be construed
so as to include their respective and any subsequent successors, transferees and permitted
assigns in accordance with their respective interests;

continuingin relation to a Default shall be construed as meaning that (a) the
circumstances constituting such Default continue unremedied and (b) neither the
Administrative Agent (being duly authorised to do so) nor the Lenders have waived such of
its or their rights under this Agreement as arise as a result of that event;

the equivalenton any given date in one currency (the first currency) of an amount
denominated in another currency (the second currency) is a reference to
the amount of the first currency which could be purchased with the second currency at the
Administrative Agents spot rate of exchange for the purchase of the first currency
with the second currency in the London foreign exchange market at or about 11a.m. on such
date;

monthis a
reference to a period starting on one day in a calendar month and ending on the
numerically corresponding day in the next succeeding calendar month save that, where any
such period would otherwise end on a day which is not a Business Day, it shall end on the
next succeeding Business Day, unless that day falls in the calendar month succeeding that
in which it would otherwise have ended, in which case it shall end on the immediately
preceding Business Day provided that, if a period starts on the last Business Day in a
calendar month or if there is no numerically corresponding day in the month in which that
period ends, that period shall end on the last Business Day in that later month (and
references to months shall be construed accordingly);

a person shall be
construed as a reference to any person, firm, company, corporation, government, state or
agency of a state or any association or partnership (whether or not having separate legal
personality) of two or more of the foregoing;

taxshall
be construed so as to include all present and future taxes, charges, imposts, duties,
levies, deductions or withholdings of any kind whatsoever, or any amount payable on
account of or as security for any of the foregoing, by whomsoever on whomsoever and
wherever imposed, levied, collected, withheld or assessed together with any penalties,
additions, fines, surcharges or interest relating to it and taxesand taxationshall be construed accordingly;

VATshall
be construed as value added tax including any equivalent or analogous tax which may apply
from time to time in the relevant place;

a wholly-owned
Subsidiary of a company, corporation or partnership shall be construed as a
reference to any company, corporation or partnership which has no other members or
partners except that other company, corporation or partnership and that other
companys, corporations or partnerships wholly-owned Subsidiaries or
nominees for that other company, corporation or partnership or its wholly-owned
Subsidiaries; and

the winding-up,
dissolution, administration or
reorganisation of a company, corporation or partnership shall be
construed so as to include any equivalent or analogous proceedings under the Law of the
jurisdiction in which such person is incorporated or any jurisdiction in which such person
carries on business, including the seeking of liquidation, winding-up, reorganisation,
dissolution, administration, arrangement, adjustment, protection from creditors or relief
of debtors.

# 1.4     Construction
(Maritime)

Unless the contrary indication
appears, any reference in this Agreement to:

arrest (as a noun)
includes any arrest, detention, attachment, distraint, restraint, impounding or filing of
a libel and arrest (as a verb) shall be construed accordingly;

contract of
affreightment means any contract or engagement of affreightment or for the
carriage or transportation of cargo relating to a vessel or vessels entered from time to
time by the owner of such vessel or any person on its behalf;

requisition for
title (as a verb) includes, in relation to an asset, to compulsorily acquire,
expropriate, nationalise, seize, capture, forfeit, condemn as a prize or otherwise act so
as to divest the owner thereof of title thereto and noun forms of such verb shall be
construed accordingly;

total loss in
relation to a vessel, shall be construed so as to include (a) any actual,
constructive, agreed, arranged or compromised total loss of such vessel including such as
may occur during a requisition for hire of that vessel and (b) the requisition for
title of such vessel (otherwise than by requisition for hire) by any government or other
competent authority or by any person acting or purporting to act by the authority of the
same and from which such vessel has not been released within a period of ninety days
following the occurrence of such event; and

a vessel or a
Collateral Vessel includes her boilers, engines, machinery, masts,
spares, boats, anchors, chains, tackle, apparel, furniture, fittings, freights, computers
and other equipment and all other appurtenances belonging or appertaining to her (whether
owned at the date of this Agreement or acquired later and whether or not on board but
excluding such as may be leased to the owner of such vessel) and all additions,
replacements and improvements thereto.

# 1.5     Currency

US$",
$ and dollar denote the lawful currency for the time
being of the United States of America and  and
euro denote the lawful currency for the time being of each
Participating Member State.

# 1.6     Statutes

Any reference in this Agreement to a
statute or a statutory provision shall, save where a contrary intention is specified, be
construed as a reference to such statute or statutory provision as the same shall have
been, or may be, amended or re-enacted.

# 1.7     Time

Any reference in this Agreement to a
time shall, unless otherwise specified, be construed as a reference to New York time.

# 1.8     References to
Agreements

Unless otherwise stated, any
reference in this Agreement to any agreement or document (including any reference to this
Agreement) shall be construed as a reference to:

|(a) | such agreement or document as amended, varied, novated or supplemented from time
          to time;
|--- | ---------------------------------------------------------------------------------------------------

|(b) | any other agreement or document whereby such agreement or document is so
          amended, varied, supplemented or novated; and
|--- | --------------------------------------------------------------------------------------------------------------------------------

|(c) | any other agreement or document entered into pursuant to or in accordance with
          any such agreement or document.
|--- | ------------------------------------------------------------------------------------------------------------------------

# 2.       THE CREDIT FACILITY

# 2.1     Revolving Credit
Facility

The Lenders grant to the Original
Borrower, upon the terms and subject to the conditions of this Agreement, a revolving
credit facility in a maximum aggregate amount of US$500,000,000 comprising two tranches as
follows:

|(a) | US$320,000,000 (Tranche A); and
|--- | ---------------------------------

|(b) | US$180,000,000 (Tranche B),
|--- | -----------------------------

in each case, subject to any
adjustment to the amount of such tranches during the Leaseback Period pursuant to and in
accordance with Clause 20.6 (Collateral Vessel Conversion).

# 2.2     Consolidation on
Leaseback Completion Date

On the Leaseback Completion Date,
each Tranche A Advance shall be converted and consolidated into a single Advance, which
shall be deemed to have been advanced to the Leaseback Borrower (in place of the Original
Borrower) on the Leaseback Completion Date and shall have a single Term commencing on such
date and ending on the Maturity Date.

# 2.3     Purpose

|(a) | The Credit Facility is to be applied by the Borrowers:
|--- | ------------------------------------------------------

| | (i) | to refinance existing Indebtedness relating to the Collateral Vessels; and
| | --- | --------------------------------------------------------------------------

| | (ii) | for the general corporate purposes of the Parent Guarantor and its Subsidiaries
          and following the occurrence of the Leaseback Completion Date, those of the
          Leaseback Group.
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | The Borrowers shall apply all amounts borrowed under this Agreement in or
          towards satisfaction of the purposes referred to in paragraph (a) above and none
          of the Finance Parties shall be obliged to concern themselves with such
          application.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# 2.4     Several Obligations

The obligations of each Finance Party
under this Agreement are several and the failure by a Finance Party to perform any of its
obligations under this Agreement shall not affect the obligations of any of the Obligors
towards any other party to this Agreement nor shall any other party be liable for the
failure by such Finance Party to perform its obligations under this Agreement.

# 2.5     Several Rights

The rights of each Finance Party are
several and any debt arising under this Agreement at any time from an Obligor to any
Finance Party shall be a separate and independent debt. Each Finance Party may, except as
otherwise stated in this Agreement, separately enforce its rights under this Agreement.

# 3.       CONDITIONS

# 3.1     Conditions Precedent

|(a) | The obligations of the Finance Parties to make an Advance under this Agreement
               shall be conditional upon the Administrative Agent having confirmed to the
               Parent Guarantor that it has received the documents and other evidence listed in
               Part I of Schedule 3 (Conditions Precedent to first Drawdown) (excluding
               the Relevant Documents, in the case of an Advance to be made solely under
               Tranche A but without prejudice to Clause 11.1 (Commitment Fee)) and that
               each is satisfactory, in form and substance, to the Administrative Agent. The
               Administrative Agent shall notify the Parent Guarantor and the Lenders promptly
               upon being so satisfied.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | For the purposes of this Clause 3.1, Relevant Documents
               means:
|--- | -------------------------------------------------------------------------------

| | (i) | any documents and other evidence to be executed and/or delivered by Golar-Nor
               Offshore AS, Fronape International Company or Petrobras (in each case) as third
               party charterer under the Relevant Third Party Charter to which such entity is a
               party;
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (ii) | deeds of covenant in respect of the Collateral Vessels being subject to a
               Bareboat Charter as at the date of this Agreement; and
| | ---- | -----------------------------------------------------------------------------------------------------------------------------------------------

| | (iii) | any notices to be delivered by members of the Group to any of the third parties
               referred to in the foregoing sub-paragraph (i),
| | ----- | ----------------------------------------------------------------------------------------------------------------------------------------------

| |  | in each case, to the extent required by paragraphs 5(c) or 10 under Part I or paragraphs 2
and 4 under Part IV of Schedule 3 (Conditions Precedent to first Drawdown).
| |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------

# 3.2     Conditions Subsequent

The Parent Guarantor shall procure
(and each relevant Obligor shall ensure) that as soon as practicable after the initial
Drawdown Date and in any event within 10 days thereafter, there shall have been delivered
to the Administrative Agent each of the documents listed in Part II of Schedule 3
(Conditions Subsequent Documents), each in form and substance satisfactory to the
Administrative Agent. The Administrative Agent shall notify the Parent Guarantor and the
Lenders promptly upon being so satisfied.

# 4.       DRAWDOWN

# 4.1     Conditions to each
Advance

Save as otherwise provided in this
Agreement, an Advance will be made by the Lenders to the Original Borrower if:

|(a) | the Administrative Agent has received from the Original Borrower a duly
          completed Drawdown Request for that Advance not later than 10.00 a.m. on a day
          which is not more than 10 nor less than 3 Business Days prior to the proposed
          Drawdown Date for such Advance, receipt of which shall oblige the Original
          Borrower to borrow the amount requested on the date stated upon the terms and
          subject to the conditions contained in this Agreement;
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | the proposed Drawdown Date for the Advance is a Business Day which precedes the
          Maturity Date;
|--- | --------------------------------------------------------------------------------------------------------

|(c) | immediately following the making of such Advance, there will be no more than 6
          Advances outstanding;
|--- | --------------------------------------------------------------------------------------------------------------

|(d) | the proposed amount of such Advance is equal to the amount of the corresponding
          Available Commitments or less than such amount but equal to a minimum amount of
          US$5,000,000 and an integral multiple of US$1,000,000;
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(e) | each of the representations and warranties made in Clause 16 (Representations
          and Warranties) is true and will continue to be true, in each case, in all
          respects, following the making of the relevant Advance, provided that, any such
          representation which expressly relates to a given date or period shall be
          required to be true solely in respect of that date or period;
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(f) | the proposed Term or Interest Period (as applicable) of such Advance is a period
          of 1, 3 or 6 months or such other period as each of the Lenders may agree (but
          in each such case) ending on or before the Maturity Date;
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(g) | no Default (or in the case of a Rollover Advance, Event of Default) has occurred
          and is continuing or would result from the making of the relevant Advance; and
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(h) | in the case of an Advance, other than in the case of a Rollover Advance, the
          interest rate applicable to such Advances first Interest Period or Term
          (as the case may be) will not have to be determined under Clause 10 (Market
          Disruption and Alternative Interest Rates).
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# 4.2     Lenders
Participations

Each Lender will participate through
its Facility Office in each Advance made pursuant to Clause 4.1 (Conditions to each
Advance) in its respective Proportion.

# 5.       SCHEDULED COMMITMENT
REDUCTIONS AND REPAYMENTS

# 5.1     Commitment Reduction
and Repayment

|(a) | The Original Borrower shall repay the full amount of each Advance made to it on
          the last day of its Term.
|--- | -------------------------------------------------------------------------------------------------------------------

|(b) | The Leaseback Borrower shall repay the Advance made to it in instalments by
          repaying an amount equal to the Tranche A Commitment Reduction on each
          Commitment Reduction Date.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) | Without prejudice to the obligations of the Borrowers in sub-paragraph (a) and
          (b) above, the Total Tranche A Commitments and the Total Tranche B Commitments
          of the Lenders shall be reduced (on the basis of each Lenders Proportion)
          pursuant to a cancellation thereof in an amount equal to the Tranche A
          Commitment Reduction or Tranche B Commitment Reduction as applicable on such
          Commitment Reduction Date and each Borrower shall (in respect of each Advance
          made to it) repay an amount necessary to ensure that the Tranche A Outstandings
          and the Tranche B Outstandings applicable on such date do not exceed the Total
          Tranche A Commitments and the Total Tranche B Commitments respectively, in each
          case, in effect following such cancellation.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(d) | Without prejudice to the Original Borrowers obligation to repay the full
          amount of each Advance made to it on the last day of its Term, where, on the
          same day on which the Original Borrower is due to repay an Advance (a
          Maturing Advance) it has also requested that an Advance be
          made to it (a Rollover Advance), subject to the Lenders
          being obliged to make such Rollover Advance under Clause 4.1 (Conditions to
          each Advance) (taking into account the amount of the Maturing Advance, for
          the purposes of paragraph (d) of such Clause, but without prejudice to paragraph
          (c) of this Clause 5.1 (Commitment Reduction and Repayment)), the
          amount to be so repaid and the amount to be so drawn down shall be netted off
          against each other so that the amount which the Original Borrower is actually
          required to repay or, as the case may be, the amount which the Lenders are
          actually required to advance to the Original Borrower, shall be the net amount
          remaining after such netting off.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# 5.2     Cancellation on
Maturity Date

Without prejudice to the provisions
of Clause 5.1 (Commitment Reduction and Repayment), on the Maturity Date, the
Borrowers shall repay the Tranche A Obligations and the Original Borrower shall repay the
Tranche B Obligations (if any) which remain due and payable by them respectively on such
date.

# 5.3     Confirmation

Prior to each Commitment Reduction
Date, the Administrative Agent shall confirm, by notice to the Borrowers, the amounts (if
any) which are to fall due from them on such Commitment Reduction Date under this Clause 5
(Scheduled Commitment Reductions and Repayments) provided that, a failure on the
part of the Administrative Agent to deliver such a notice, shall not affect the
obligations of the relevant Borrower in respect of such amounts which have fallen due.

# 5.4     Reborrowing

|(a) | Without prejudice to paragraph (b) of this Clause 5.4, the Leaseback Borrower
          may not reborrow any part of Tranche A which is repaid or prepaid.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | Subject to Clause 4.1 (Conditions to each Advance) and the other
          provisions of this Agreement, the Original Borrower may reborrow any part of the
          Credit Facility which is repaid (provided that, for the avoidance of doubt, this
          paragraph (b) shall not apply to Tranche A if the Leaseback Completion Date has
          occurred).
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# 6.       CANCELLATION

# 6.1     Voluntary
Cancellation

The Original Borrower may, by giving
to the Administrative Agent not less than 3 Business Days prior written notice to
that effect, cancel the whole or any part of the Available Commitments and any such
cancellation shall reduce the relevant Available Commitments of the Lenders rateably,
provided that, such cancellation shall be in respect of the aggregate of all Available
Commitments or an integral multiple of US$5,000,000.

# 6.2     Notice of
Cancellation

Any notice of cancellation given by
the Original Borrower pursuant to Clause 6.1 (Voluntary Cancellation) shall be
irrevocable and shall specify the date upon which such cancellation is to be made and the
amount of such cancellation.

# 6.3     Cancellation of
Available Commitments

|(a) | On the Maturity Date, any Available Commitments in respect of the Credit
          Facility shall automatically be cancelled and the Commitment of each Lender in
          relation to the Credit Facility shall automatically be reduced to zero.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | On the Leaseback Completion Date, any Tranche A Available Commitments shall
          automatically be cancelled and the Commitment of each of the Lenders
          representing such Tranche A Available Commitments shall automatically be reduced
          to zero.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# 7.       VOLUNTARY PREPAYMENT

# 7.1     Voluntary Prepayment

A Borrower owing any Outstandings
shall, if it has given the Administrative Agent at least 5 Business Days prior
written notice to that effect, prepay such Outstandings, in whole or in part (but if in
part, in a minimum amount of US$5,000,000 and an integral multiple of US$1,000,000),
together with accrued interest on the amount prepaid without premium or penalty but
subject to the payment of any Break Costs.

# 7.2     Right of Prepayment
and Cancellation in relation to a single Lender

If any sum payable to any Lender by
an Obligor is required to be increased under Clause 12.1 (Tax Gross-up) or a Lender
claims indemnification from an Obligor under the provisions of Clause 12.2 (Tax
Indemnity) or Clause 14.1 (Increased Costs) and within six months thereafter
the Administrative Agent receives from such Obligor, while the circumstances giving rise
to such increase or indemnification continue, at least 5 Business Days prior notice
of its intention to repay or to cause to be repaid such Lenders share of the
Outstandings, the relevant Obligor shall immediately upon the expiry of such 5 Business
Day period (or if earlier, in the case of any particular Advance, on the last day of the
then current Interest Period or Term (as the case may be) relating to such Advance), repay
such Lenders portion of each Advance together with any Break Costs accruing in
relation thereto.

# 7.3     Application of
Voluntary Prepayments

|(a) | Any amounts prepaid pursuant to Clause 7.1 (Voluntary Prepayment), shall
          be applied by the Administrative Agent, in or towards the repayment of the
          relevant Outstandings, following which (solely in respect of Tranche A
          Outstandings, if the Leaseback Completion Date has occurred and otherwise
          without prejudice to Clause 5.4 (Reborrowing)) each of the Tranche A
          Commitment Reductions shall immediately be reduced on a pro ratabasis,
          pursuant to a cancellation thereof in an amount equal to such prepayment.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | Any amounts prepaid pursuant to Clause 7.2 (Right of Prepayment and
          Cancellation in relation to a single Lender), shall be applied by
          the Administrative Agent, in or towards the discharge of the applicable share of
          the Outstandings owed to the relevant Lender on the date of such repayment until
          the same are repaid in full, following which each of the remaining Tranche A
          Commitment Reductions and Tranche B Commitment Reductions shall immediately be
          reduced on a pro ratabasis in an aggregate amount equal to the
          Commitment of such Lender, pursuant to a cancellation thereof.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# 7.4     Notice of Prepayment

Any notice of prepayment given by a
Borrower or the Parent Guarantor as the case may be pursuant to Clause 7.1 (Voluntary
Prepayment) shall be irrevocable, shall specify the date upon which such repayment is
to be made and the amount of such repayment and shall oblige the relevant Borrower to make
such repayment, and the Parent Guarantor to ensure that such repayment is made, on such
date.

# 7.5     Restrictions on
Repayment

No Obligor shall repay or prepay all
or any part of any Advance, except at the times and in the manner expressly provided for
in this Agreement.

# 8.       MANDATORY COMMITMENT
REDUCTIONS AND PREPAYMENTS

# 8.1     Total Loss or Sale

|(a) | If a Collateral Vessel is sold or otherwise disposed of to a third party,
               including a deemed disposal pursuant to Clause 19.14(b)(ii)
               (Registration) or an indirect disposal by way of a transfer of a
               controlling interest in the relevant person being the owner of such Collateral
               Vessel or any of its Holding Companies (other than pursuant to and in accordance
               with Clause 19.12(b) (Disposal of Assets and Collateral Vessel
               Substitution)), or is the subject of a total loss, the Total Tranche A
               Commitments (in the case of a Tranche A Vessel) or the Total Tranche B
               Commitments (in the case of a Tranche B Vessel) shall be reduced pursuant to a
               cancellation thereof in an amount equal to the Loss or Sale Commitment Reduction
               and the Original Borrower or (in respect of a Tranche A Vessel following the
               Leaseback Completion Date), the Leaseback Borrower, shall prepay an amount
               necessary to ensure that the Tranche A Outstandings or the Tranche B
               Outstandings (as applicable) do not exceed the Total Tranche A Commitments or
               the Total Tranche B Commitments (as the case may be), such amount to be applied
               in or towards the discharge of such Tranche A Outstandings or Tranche B
               Outstandings at such time, in accordance with Clause 8.2 (Application of
               Mandatory Prepayments), together with accrued interest on the amount prepaid
               without premium or penalty but subject to the payment of any Break Costs arising
               in respect of such prepayment, provided that, no prepayment shall be required to
               be made under this Clause 8.1 (Total Loss or Sale) if:
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (i) | on the Disposal Date or the Total Loss Date (as the case may be), the aggregate
               Market Value of (x) all the remaining Collateral Vessels, exceeds 143% of the
               aggregate Commitments at such time (if the Leaseback Completion Date has not
               occurred and/or if the relevant Collateral Vessel is a Tranche A Vessel) or (y)
               all the remaining Tranche B Vessels, exceeds 143% of the aggregate Tranche B
               Commitments at such time (if the Leaseback Completion Date has occurred and the
               relevant Collateral Vessel is a Tranche B Vessel); or
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (ii) | the relevant Collateral Vessel has been replaced by one or more other vessels
               pursuant to and in accordance with Clause 19.12(b) (Disposal of Assets and
               Collateral Vessel Substitution) (x) in the case of a total loss, within six
               months of the Total Loss Date or (y) in the case of a sale or other disposal to
               a third party, on or before the Disposal Date.
| | ---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | A prepayment required under this Clause 8.1 shall be payable:
|--- | -------------------------------------------------------------

| | (i) | in the case of a sale or other disposition of a Collateral Vessel, on the
               Disposal Date (provided that in the case of a deemed disposal pursuant to Clause
               19.14(b) (Registration), such prepayment shall be payable within 30 days
               following the relevant Disposal Date); or
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (ii) | in the case of a total loss of a Collateral Vessel, on the earlier of the date
               on which the requisition compensation or insurance proceeds in respect of the
               relevant total loss have been received by or on behalf of an Obligor or the
               Security Trustee and the date which falls six months after the Total Loss Date.
| | ---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# 8.2     Application of
Mandatory Prepayments

Any amount prepaid pursuant to Clause
8.1 (Total Loss or Sale), shall be applied by the Administrative Agent, in or
towards the discharge of the Tranche A Outstandings or the Tranche B Outstandings (as the
case may be) prorata to the aggregate amount of such Outstandings on the date of
such prepayment until the same are repaid in full, following which each of the Tranche A
Commitment Reductions or Tranche B Commitment Reductions (as applicable) shall immediately
be reduced on a pro ratabasis, pursuant to a cancellation thereof in an amount
equal to such prepayment.

# 9.       INTEREST

# 9.1     Interest Periods
following Leaseback Completion Date

With effect from the Leaseback
Completion Date, the period for which the Tranche A Advance is outstanding shall be
divided into successive periods (each an Interest Period) each of which
(other than the first) shall start on the last day of the preceding such period.

# 9.2     Duration

|(a) | The duration of each Interest Period or Term (as applicable) shall, save as
          otherwise provided in this Agreement, be 1, 3 or 6 months, in each case as the
          relevant Borrower may, by not less than 5 Business Days prior notice to
          the Administrative Agent, select or such other period as the Lenders may agree,
          provided that, if that Borrower fails to give such notice of selection in
          relation to an Interest Period or Term (as the case may be), the duration of
          that Interest Period or Term shall, subject to the other provisions of this
          Clause 9 (Interest), be 3 months.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | Any Interest Period or Term that would otherwise end during the month preceding
          or extend beyond a Commitment Reduction Date or (if applicable) the Leaseback
          Completion Date relating to the relevant Outstandings, shall be of such duration
          that it shall end on the Commitment Reduction Date or the Leaseback Completion
          Date (as the case may be).
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# 9.3     Payment of Interest

|(a) | On the last day of its Term (and, if such Term of any Advance exceeds 3 months,
          on the expiry of each period of 3 months during such Term) the Original Borrower
          shall pay accrued interest on each Advance made to it (or, following the
          Leaseback Completion Date, each Tranche B Advance).
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | On the last day of each Interest Period (or if such day is not a Business Day,
          on the immediately succeeding Business Day in the then current calendar month
          (if there is one) or the preceding Business Day (if there is not)), and if the
          relevant Interest Period exceeds 3 months, on the expiry of each 3 month period
          during that Interest Period, the Leaseback Borrower shall pay accrued interest
          on the Tranche A Advance made to it.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# 9.4     Interest Rate for
Advances

The rate of interest applicable to an
Advance during each Term or Interest Period (as applicable) relating to it shall be the
rate per annum which is the sum of:

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

|(b) | the Associated Costs Rate for such Advance; and
|--- | -----------------------------------------------

|(c) | LIBOR,
|--- | ------

for such Interest Period or Term (as
the case may be).

# 10.       MARKET DISRUPTION
AND ALTERNATIVE INTEREST RATES

# 10.1     Market Disruption

If, in relation to any Interest
Period or Term:

|(a) | at or about 11.00 a.m. on the Quotation Date for such Interest Period or Term,
          paragraph (b) of the definition of LIBOR applies and none or only one of the
          Reference Banks supplies a rate for the purpose of determining LIBOR for the
          relevant period; or
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | before the close of business in London on the Quotation Date for such Interest
          Period or Term, the Administrative Agent has been notified by a Lender to whom,
          or each of a group of Lenders, to whom in aggregate, 35% or more of the relevant
          Advance is owed (or, in the case of an undrawn Advance, if made, would be owed)
          that the cost to it of obtaining matching deposits for the relevant Advance in
          the London interbank market would be in excess of LIBOR,
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

then the Administrative Agent shall
notify the Parent Guarantor and the Lenders of such event and, notwithstanding anything to
the contrary in this Agreement, Clause 10.2 (Substitute Interest Period and Interest
Rate) shall apply (if the relevant Advance is a Rollover Advance). If either paragraph
(a) or (b) applies to a proposed Advance (other than a Rollover Advance), such Advance
shall not be made.

# 10.2     Substitute Interest
Period and Interest Rate

|(a) | If paragraph (a) of Clause 10.1 (Market Disruption) applies, the duration
               of the relevant Interest Period or Term shall be 1 month or, if less, such that
               it shall end on the next succeeding Commitment Reduction Date.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | If either paragraph of Clause 10.1 (Market Disruption) applies to an
               Advance, the rate of interest applicable to each Lenders Portion of such
               Advance during the relevant Interest Period or Term shall (subject to any
               agreement reached pursuant to Clause 10.3 (Alternative Rate)) be the rate
               per annum which is the sum of:
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (i) | the Margin;
| | --- | -----------

| | (ii) | the rate per annum notified to the Administrative Agent by such Lender as soon
               as practicable after the commencement of such Interest Period or Term to be that
               which expresses as a percentage rate per annum the cost to such Lender of
               funding from whatever sources it may select its portion of such Advance during
               such Interest Period or Term; and
| | ---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (iii) | the Associated Costs Rate, if any, applicable to such Lenders
               participation in the relevant Advance.
| | ----- | --------------------------------------------------------------------------------------------------------------------

# 10.3     Alternative Rate

If:

|(a) | Clause 10.1 (Market
Disruption) applies; or
|--- | -------------------------------------------

|(b) | by reason of circumstances affecting the London interbank market during any
          period of 3 consecutive Business Days, LIBOR is not available to prime banks in
          the London interbank market,
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

then, if the Administrative Agent or
the Parent Guarantor so requires, the Administrative Agent and the Parent Guarantor shall
enter into negotiations with a view to agreeing an alternative basis:

|(a) | for determining the rate of interest from time to time applicable to Advances;
          and/or
|--- | -----------------------------------------------------------------------------------------------

|(b) | upon which the Advances may be maintained (whether in dollars or some other
          currency) thereafter,
|--- | -----------------------------------------------------------------------------------------------------------

and any such alternative basis that
is agreed shall take effect in accordance with its terms and be binding on each party to
this Agreement, provided that the Administrative Agent may not agree any such alternative
basis without the prior consent of each Lender.

# 11.       FEES

# 11.1     Commitment Fee

The Original Borrower shall pay to
the Administrative Agent for distribution to the Lenders on the basis of each such
Lenders Proportion, an annual commitment fee equal to 0.40% which shall accrue on a
daily basis for the period from the date of this Agreement up to and including the
Maturity Date in respect of the aggregate of the Available Commitments applicable on each
such day and shall be payable quarterly in arrears.

# 11.2     Other Fees

The Parent Guarantor shall pay to the
Administrative Agent (or shall procure the payment of) the other fees specified in the
Fees Letter, at the times, and in the manner, set out in such letter.

# 12.       TAXES

# 12.1     Tax Gross-up

All sums payable by an Obligor under
any Finance Document shall be paid in full without set-off or counterclaim or any
restriction or condition and, except to the extent required by any law or regulation, free
and clear of any deduction or withholding on account of tax or otherwise. If an Obligor or
any other related person is required by any law or regulation to make any such deduction
or withholding, the relevant Obligor shall, together with the relevant payment, pay such
additional amount as will ensure that the person to which the relevant sum is owed
receives and is entitled to retain, free and clear of any such deduction or withholding,
the full amount which it would have received if no such deduction or withholding had been
required.

# 12.2     Tax Indemnity

Without prejudice to the provisions
of Clause 12.1 (Tax Gross-up), if any Finance Party (or its Affiliate) or the
Administrative Agent on its behalf is required to make any payment on account of tax (not
being a tax imposed on and calculated by reference to the net income paid to and received
by its Facility Office by the jurisdiction in which it is incorporated or in which its
Facility Office is located) or otherwise on or in relation to any sum received or
receivable hereunder by such Finance Party or Affiliate or the Administrative Agent on its
behalf (including any sum received or receivable under this Clause 12 (Taxes)) or
any liability in respect of any such payment is asserted, imposed, levied or assessed
against such Finance Party or Affiliate or the Administrative Agent on its behalf, the
Parent Guarantor shall, upon demand of the Administrative Agent, promptly indemnify such
Finance Party or Affiliate against such payment or liability, together with any interest,
penalties, costs and expenses payable or incurred in connection therewith.

# 12.3     Claims by Finance
Parties

A Lender intending to make a claim
pursuant to Clause 12.2 (Tax Indemnity) shall notify the Administrative Agent
of the event by reason of which it is entitled to do so and provide a reasonable written
explanation of the basis and calculation of such claim, whereupon the Administrative Agent
shall notify the Parent Guarantor, provided that nothing herein shall require such Lender
to disclose any confidential information relating to the organisation of its affairs.

# 12.4     Tax Credits

In the event that an additional
payment is made under Clause 12.1 (Tax Gross-up) or Clause 12.2 (Tax
Indemnity) and a Finance Party, in its sole discretion, determines that it has
received or been granted a credit against relief or remission for, or repayment of, any
relevant tax paid or payable by it in respect of or calculated with reference to the
deduction or withholding giving rise to the relevant payment or liability, that Finance
Party shall, to the extent that it can do so without prejudice to the retention of the
amount of such credit, relief, remission or repayment, pay to the relevant Obligor such
amount as that Finance Party shall, in its sole discretion, have concluded to be
attributable to the relevant payment or liability. Any such payment shall be conclusive
evidence of the amount due to the relevant Obligor hereunder and shall be accepted by such
Obligor in full and final settlement of its rights of reimbursement hereunder in respect
of the relevant payment or liability. Nothing herein contained shall interfere with the
right of a Finance Party to arrange its tax affairs in whatever manner it thinks fit and,
in particular, no Finance Party shall be under any obligation to claim credit, relief,
remission or repayment from or against its corporate profits or similar tax liability in
respect of the amount of the relevant payment or liability in priority to any other
claims, reliefs, credits or deductions available to it. Any such reimbursement to be made
by a Finance Party pursuant to this Clause 12.4 shall be made as soon as possible after
such credit or remission or repayment has, in the reasonable opinion of the relevant
Finance Party, been received or granted.

# 13.       TAX RECEIPTS

# 13.1     Notification of
Requirement to Deduct Tax

If, at any time, an Obligor is
required by law to make any deduction or withholding from any sum payable by it hereunder
(or if thereafter there is any change in the rates at which or the manner in which such
deductions or withholdings are calculated), such Obligor shall promptly notify the
Administrative Agent.

# 13.2     Evidence of Payment
of Tax

If an Obligor makes any payment
hereunder in respect of which it is required to make any deduction or withholding, it
shall pay the full amount required to be deducted or withheld to the relevant taxation or
other authority within the time allowed for such payment under applicable law and shall
deliver to the Administrative Agent for each Finance Party, within thirty days after it
has made such payment to the applicable authority, an original receipt (or a certified
copy thereof) or other appropriate document issued by such authority evidencing the
payment to such authority of all amounts so required to be deducted or withheld in respect
of that Finance Partys share of such payment.

# 14.       INCREASED COSTS

# 14.1     Increased Costs

Subject to Clause 14.3
(Exceptions), the Parent Guarantor shall, within 3 Business Days of a demand by the
Administrative Agent, pay for the account of a Finance Party, the amount of any Increased
Cost incurred by that Finance Party or any of its Affiliates as a result (directly or
indirectly) of:

|(a) | the introduction or implementation of or any change in (or in the
          interpretation, administration or application of) any Law, regulation, practice
          or concession or any directive, requirement, request or guidance (whether or not
          having the force of Law) of any central bank, including the European Central
          Bank, the Financial Services Authority or any other fiscal, monetary, regulatory
          or other authority; or
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | compliance with any Law, regulation, practice, concession or any such directive,
          requirement, request or guidance made after the date of this Agreement.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------

# 14.2     Increased Costs
Claims

|(a) | A Finance Party intending to make a claim pursuant to Clause 14.1 (Increased
          Costs) shall, as soon as reasonably practicable after becoming aware of the
          circumstances giving rise to such claim, notify the Administrative Agent of the
          event giving rise to the claim and provide a reasonable written explanation of
          the basis and calculation of such claim to the Administrative Agent, following
          which the Administrative Agent shall promptly notify the Parent Guarantor.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | Each Finance Party shall, as soon as practicable after a demand by the
          Administrative Agent, provide a certificate confirming the amount (if any) of
          its Increased Costs.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# 14.3     Exceptions

Clause 14.1 (Increased Costs)
does not apply to the extent any Increased Cost is:

|(a) | compensated for by Clause 12.2 (Tax Indemnity);
|--- | -----------------------------------------------

|(b) | compensated for by the payment of the Associated Costs Rate; or
|--- | ---------------------------------------------------------------

|(c) | attributable to the wilful breach by the relevant Finance Party or any of its
          Affiliates of any Law or regulation.
|--- | ----------------------------------------------------------------------------------------------------------------------------

# 15.       ILLEGALITY

If it becomes unlawful in any
relevant jurisdiction for a Lender to perform any of its obligations as contemplated by
this Agreement or to fund or maintain its participation in any Advance:

|(a) | that Lender shall promptly notify the Administrative Agent upon becoming aware
          of that event;
|--- | -------------------------------------------------------------------------------------------------------

|(b) | upon the Administrative Agent notifying the Parent Guarantor, the Available
          Commitments of that Lender will immediately be cancelled and its Commitments
          reduced to zero and such Lender shall not thereafter be obliged to participate
          in any Advance; and
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) | each Borrower shall repay that Lenders participation in the Advances made
          to that Borrower on the last day of the current Interest Period or Term for each
          Advance occurring after the Administrative Agent has notified the Parent
          Guarantor or, if earlier, the date specified by the Lender in the notice
          delivered to the Administrative Agent (being no earlier than the last day of any
          applicable grace period permitted by Law), together with accrued interest and
          all other amounts owing to that Lender under the Finance Documents.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# 16.       REPRESENTATIONS AND WARRANTIES

Each Obligor (and in the case of
Clause 16.18(d) (Ownership, Security, Intra-Group Charters and Relevant Third Party
Charters), the Parent Guarantor on behalf of each Intra-Group Charter Party) makes the
representations and warranties set out in this Clause 16 to each Finance Party on the date
of this Agreement, on each Drawdown Date and on the last day of each Interest Period and
Term (other than Clause 16.2 (No Deductions or Withholding) which shall be made
only on the date of this Agreement) by reference to the facts and circumstances then
existing on such date, and acknowledges that each Finance Party has entered into this
Agreement in reliance on such representations and warranties.

# 16.1     Status and Due
Authorisation

It is a corporation or limited
liability company (or in the case of the Leaseback Borrower, a limited liability
partnership) duly organised or formed under the laws of its jurisdiction of incorporation,
organisation or formation (as the case may be) with power to enter into the Finance
Documents and to exercise its rights and perform its obligations under the Finance
Documents and all corporate and other action required to authorise its execution of the
Finance Documents and its performance of its obligations thereunder has been duly taken.

# 16.2     No Deductions or
Withholding

Under the laws of its jurisdiction of
incorporation or organisation in force at the date hereof, it will not be required to make
any deduction or withholding from any payment it may make under any of the Finance
Documents.

# 16.3     Claims Pari Passu

Under the laws of its jurisdiction of
incorporation or organisation in force at the date hereof, its Indebtedness hereunder
will, to the extent that it exceeds the realised value of any Security granted in respect
of its Indebtedness hereunder, rank at least pari passu with all its other
unsecured Indebtedness save that which is preferred solely by any bankruptcy, insolvency
or other similar laws of general application.

# 16.4     No Immunity

In any proceedings taken in its
jurisdiction of incorporation in relation to any of the Finance Documents, it will not be
entitled to claim for itself or any of its assets immunity from suit, execution,
attachment or other legal process.

# 16.5     Governing Law and
Judgments

In any proceedings taken in its
jurisdiction of incorporation or organisation in relation to any of the Finance Documents
in which there is an express choice of the law of a particular country as the governing
law thereof, that choice of law and any judgment or (if applicable) arbitral award
obtained in that country will be recognised and enforced.

# 16.6     Validity and
Admissibility in Evidence

As at the date hereof, all acts,
conditions and things required to be done, fulfilled and performed in order (a)to
enable it lawfully to enter into, exercise its rights under and perform and comply with
the obligations expressed to be assumed by it in the Transaction Documents, (b) to
ensure that the obligations expressed to be assumed by it in the Transaction Documents are
legal, valid and binding and (c) to make the Transaction Documents admissible in
evidence in its jurisdiction of incorporation or organisation, have been done, fulfilled
and performed.

# 16.7     No Filing or Stamp
Taxes

Under the laws of its jurisdiction of
incorporation or organisation in force at the date hereof, it is not necessary that any of
the Finance Documents be filed, recorded or enrolled with any court or other authority in
its jurisdiction of incorporation or organisation (other than the Registrar of Companies
for England and Wales or the relevant maritime registry, to the extent applicable, in
respect of any Security Document) or that any stamp, registration or similar tax be paid
on or in relation to any of the Finance Documents.

# 16.8     Binding Obligations

The obligations expressed to be
assumed by it in the Finance Documents are legal and valid obligations, binding on it in
accordance with the terms of the Finance Documents and no limit on its powers will be
exceeded as a result of the borrowings, granting of security or giving of guarantees
contemplated by the Finance Documents or the performance by it of any of its obligations
thereunder.

# 16.9     No Winding-up

Neither the Parent Guarantor nor the
Leaseback Borrower (if applicable) nor any Material Subsidiary have taken any corporate
action nor have any other steps been taken or legal proceedings been started or (to the
best of the Parent Guarantors (and if applicable, the Leaseback Borrowers)
knowledge and belief) threatened against the Parent Guarantor, the Leaseback Borrower or
any Material Subsidiary for its winding-up, dissolution, administration or reorganisation
or for the appointment of a receiver, administrator, administrative receiver, trustee or
similar officer of it or of any or all of its assets or revenues which might have a
material adverse effect on the business or financial condition of the Group or (if
applicable) the Leaseback Group taken as a whole.

# 16.10     Solvency

|(a) | Neither the Parent Guarantor nor the Leaseback Borrower (as applicable) nor any
          Material Subsidiary is unable, or admits or has admitted its inability, to pay
          its debts or has suspended making payments in respect of any of its debts.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | Neither the Parent Guarantor nor the Leaseback Borrower (as applicable) nor any
          Material Subsidiary, by reason of actual or anticipated financial difficulties,
          has commenced, or intends to commence, negotiations with one or more of its
          creditors with a view to rescheduling any of its Indebtedness.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) | The value of the assets of each of the Parent Guarantor and the Leaseback
          Borrower (as applicable) and of each Material Subsidiary of the Parent Guarantor
          or the Leaseback Borrower (as the case may be) is not less than its liabilities
          (taking into account contingent and prospective liabilities).
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(d) | No moratorium has been, or may, in the reasonably foreseeable future be,
          declared in respect of any Indebtedness of the Parent Guarantor, the Leaseback
          Borrower or any Material Subsidiary.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# 16.11     No Material
Defaults

|(a) | Without prejudice to paragraph (b) of this Clause 16.11, neither the Parent
          Guarantor nor the Leaseback Borrower (if applicable) nor any Material Subsidiary
          is in breach of or in default under any agreement to which it is a party or
          which is binding on it or any of its assets to an extent or in a manner which
          might have a material adverse effect on the business or financial condition of
          the Group or the Leaseback Group (as the case may be) taken as a whole.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | No Default is continuing or might reasonably be expected to result from the
          making of any Advance.
|--- | ------------------------------------------------------------------------------------------------------------

# 16.12     No Material
Proceedings

No action or administrative
proceeding of or before any court, arbitral body or agency which is not covered by
adequate insurance or which might have a material adverse effect on the business or
financial condition of the Group or (if applicable) the Leaseback Group taken as a whole
has been started or is reasonably likely to be started.

# 16.13     Original
Consolidated Financial Statements

The Original Consolidated Financial
Statements and all other annual financial statements relating to the Group and (if
applicable) the Leaseback Group required to be delivered under Clause 17.1 (Annual
Financial Statements), were each prepared in accordance with GAAP and such annual
financial statements and all quarterly financial statements (as applicable) required to be
delivered under Clause 17.2 (Quarterly Financial Statements) give (in conjunction
with the notes thereto) a true and fair view of (in the case of annual financial
statements) or fairly represent (in the case of quarterly financial statements) the
financial condition of the Group and (if applicable) the Leaseback Group at the date as of
which they were prepared and the results of the Groups and (if applicable) the
Leaseback Groups operations during the financial year then ended.

# 16.14     No Material
Adverse Change

Since the publication of the last
financial statements relating to the Group or (if applicable) the Leaseback Group
delivered pursuant to this Agreement, there has been no material adverse change in the
business or financial condition of the Group or the Leaseback Group (as the case may be)
taken as a whole.

# 16.15     No Undisclosed
Liabilities

As at the date to which the Original
Consolidated Financial Statements were prepared neither the Parent Guarantor nor the
Leaseback Borrower (as applicable) nor any Material Subsidiary had any material
liabilities (contingent or otherwise) which were not disclosed thereby (or by the notes
thereto) or reserved against therein nor any unrealised or anticipated losses arising from
commitments entered into by it which were not so disclosed or reserved against therein.

# 16.16     No Obligation to
Create Security

Its execution of the Finance
Documents and its exercise of its rights and performance of its obligations thereunder
will not result in the existence of nor oblige the Parent Guarantor nor the Leaseback
Borrower (as applicable) nor any Material Subsidiary to create any Encumbrance over all or
any of its present or future revenues or assets, other than pursuant to the Finance
Documents.

# 16.17     No Breach

Its execution of the Finance
Documents and its exercise of its rights and performance of its obligations under any of
the Finance Documents do not constitute and will not result in any breach of any agreement
or treaty to which it is a party.

# 16.18     Ownership,
Security, Intra-Group Charters and Relevant Third Party Charters

|(a) | Each Obligor (other than the Parent Guarantor and (if the Leaseback Completion
               Date has occurred) any Tranche A Vessel Owner and the Leaseback Borrower) is a
               wholly-owned Subsidiary of the Parent Guarantor.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | Subject to the occurrence of the Leaseback Completion Date, each Tranche A
               Vessel Owner is or (pursuant to the Permitted Sale and Leaseback) will be a
               wholly-owned Subsidiary of the Leaseback Borrower.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) | Each Obligor is the legal and beneficial owner of all assets and other property
               which it purports to charge, mortgage, pledge, assign or otherwise secure
               pursuant to each Security Document and those Security Documents to which it is a
               party create and give rise to valid and effective Security having the ranking
               expressed in those Security Documents.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(d) | Without prejudice to the generality of Clause 16.1 (Status and Due
               Authorisation), Clause 16.6 (Validity and Admissibility in
               Evidence) and Clause 16.8 (Binding Obligations):
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (i) | each Intra-Group Charter Party is a wholly-owned Subsidiary of the Parent
               Guarantor and the Parent Guarantor has the right and/or ability to control,
               either directly or indirectly, the affairs or composition of the board of
               directors (or equivalent of it) of such Intra-Group Charter Party;
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (ii) | in respect of each Collateral Vessel being subject to a Relevant Third Party
               Charter, such Relevant Third Party Charter together with each applicable
               Intra-Group Charter comprise the only chartering arrangements relating to such
               Collateral Vessel to which any member of the Group is a party and the
               Intra-Group Charter Parties are the only persons being party to such Intra-Group
               Charters;
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (iii) | pursuant to and in accordance with the Intra-Group Charters and under applicable
               Law, each Charterer has a valid and enforceable right to enter into and perform
               its obligations under each of the Relevant Third Party Charters to which it is a
               party and to provide valid, enforceable and perfected Security in favour of the
               Security Trustee in respect of such Relevant Third Party Charters; and
| | ----- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (iv) | the copies of the Relevant Third Party Charters which are delivered to the
               Administrative Agent from time to time, represent all of the Relevant Third
               Party Charters in effect at such time.
| | ---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# 16.19     Necessary
Authorisations

The Necessary Authorisations required
by it, are in full force and effect, and it is in compliance with the material provisions
of each such Necessary Authorisation relating to it and, to the best of its knowledge,
none of the Necessary Authorisations relating to it are the subject of any pending or
threatened proceedings or revocation.

# 16.20     Money Laundering

Any amount borrowed hereunder, and
the performance of its obligations hereunder and under the other Finance Documents, will
be for its own account and will not involve any breach by it of any law or regulatory
measure relating to money laundering as defined in Article 1 of the Directive
(91/308/EEC) of the Council of the European Communities.

# 16.21     Centre of Main
Interests

Where an Obligor is incorporated in a
Member State, its Centre of Main Interests is the place in which its registered office is
situated.

# 16.22     Representations
Limited

The representation and warranties of
the Obligors in this Clause 16 (Representations and Warranties) are subject to:

|(a) | the principle that equitable remedies are remedies which may be granted or
          refused at the discretion of the court;
|--- | ----------------------------------------------------------------------------------------------------------------------------

|(b) | the limitation of enforcement by laws relating to bankruptcy, insolvency,
          liquidation, reorganisation, court schemes, moratoria, administration and other
          laws generally affecting or limiting the rights of creditors;
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) | the time barring of claims under any applicable limitation acts;
|--- | ----------------------------------------------------------------

|(d) | the possibility that a court may strike out provisions for a contract as being
          invalid for reasons of oppression, undue influence or similar; and
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------

|(e) | any other reservations or qualifications of law expressed in any legal opinions
          obtained by the Lenders in connection with the Credit Facility.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------

# 17.       FINANCIAL INFORMATION

# 17.1     Annual Financial
Statements

The Parent Guarantor shall, as soon
as the same become available, but in any event within 120 days after the end of its
financial year, deliver to the Administrative Agent for distribution to the Lenders, its
audited consolidated financial statements and if the Leaseback Completion Date has
occurred, the audited consolidated financial statements of the Leaseback Borrower, in each
case, for such financial year.

# 17.2     Quarterly Financial
Statements

The Parent Guarantor shall, as soon
as the same become available, but in any event within 90 days after the end of each
Quarter Date, deliver to the Administrative Agent for distribution to the Lenders, its
unaudited consolidated financial statements for such quarterly period (and if the
Leaseback Completion Date has occurred, the unaudited consolidated financial statements of
the Leaseback Borrower for such quarterly period).

# 17.3     Other Financial
Information

The Parent Guarantor shall from time
to time, promptly on the request of the Administrative Agent, furnish the Administrative
Agent for distribution to the Lenders, with such information about the business and
financial condition of the Group and (if applicable) the Leaseback Group as the
Administrative Agent may reasonably require.

# 17.4     Requirements as to
Financial Statements

The Parent Guarantor shall ensure
that:

|(a) | each set of financial statements delivered by it pursuant to Clause 17.1
               (Annual Financial Statements) and Clause 17.2 (Quarterly Financial
               Statements), is certified by a duly authorised representative of the Parent
               Guarantor (in the case of annual financial statements) as giving a true and fair
               view of (or in the case of quarterly financial statements, as fairly
               representing), its financial condition or, as the case may be, the financial
               condition of the Group or (if applicable) the Leaseback Group as at the end of
               the period to which those financial statements relate and of the results of its
               operations or, as the case may be, those of the Group or the Leaseback Group (as
               the case may be), during such period; and
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | each set of financial statements delivered by it pursuant to Clause 17.1
               (Annual Financial Statements) and (in the case of sub-paragraph (i) and
               (iii) below), Clause 17.2 (Quarterly Financial Statements):
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (i) | is prepared in accordance with GAAP, consistently applied;
| | --- | ----------------------------------------------------------

| | (ii) | has been audited by an internationally recognised firm of independent auditors
               qualified to audit accounts in accordance with GAAP; and
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------------

| | (iii) | is accompanied by a Compliance Certificate signed by a duly authorised
               representative of the Parent Guarantor.
| | ----- | -----------------------------------------------------------------------------------------------------------------------------

# 17.5     Annual Appraisal
Packages

The Parent Guarantor shall, on each
date on which it is required to deliver annual financial statements under Clause 17.1
(Annual Financial Statements), deliver to the Administrative Agent a written
estimate of the Market Value of each of the Collateral Vessels made by an Approved Valuer
on a date not more than thirty days prior to such date for delivery to the Administrative
Agent, such estimate to be provided at the sole cost of the Parent Guarantor.

# 17.6     Additional
Appraisal Package

Without prejudice to Clause 17.5
(Annual Appraisal Packages), prior to the substitution of a New Vessel for an
existing Collateral Vessel pursuant to Clause 19.12(b) (Disposal of Assets and
Collateral Vessel Substitution), the conversion of a Tranche B Vessel to a Tranche A
Vessel pursuant to Clause 20.6 (Collateral Vessel Conversion) or the sale or other
disposal to a third party of a Collateral Vessel pursuant to Clause 8.1 (Total Loss orSale), the Parent Guarantor shall deliver to the Administrative Agent promptly upon
request, a written estimate of the Market Value of the Collateral Vessels (including, as
applicable, any New Vessel) made by an Approved Valuer on a date not more than thirty days
prior to such date for delivery to the Administrative Agent, such estimate to be provided
at the sole cost of the Parent Guarantor.

# 17.7     Appraisals Binding

Any Appraisal Package delivered
pursuant to this Agreement shall be binding and conclusive as regards each of the
Obligors.

# 17.8     Information
Concerning Appraisals

The Obligors shall (and the Parent
Guarantor shall procure that each other Obligor shall) promptly provide the Administrative
Agent and the Approved Valuer with any information which the Administrative Agent or such
Approved Valuer may reasonably request in relation to the preparation of an Appraisal
Package (or part thereof) and, if the Obligors fail to provide the information by the date
specified in the relevant request, such Appraisal Package may be prepared on any basis
which the Approved Valuer or the Administrative Agent considers prudent.

# 17.9     Information
Concerning Collateral Vessels, Subsidiary Guarantors and Borrowers

The Parent Guarantor will:

|(a) | provide to the Administrative Agent on request, copies of the classification
          certificates of each Collateral Vessel and her machinery and of all material
          damage or survey reports on such Collateral Vessel;
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | keep full, proper and up-to-date books of account, documents, records, data and
          other information (including, if applicable, computer programmes) in respect of
          the Collateral Vessel, each Subsidiary Guarantor and each Borrower or procure
          that such managers and other officers of such Collateral Vessel, Subsidiary
          Guarantor or Borrower do so, and permit the Administrative Agent for itself and
          as agent for and on behalf of the other Finance Parties or any persons nominated
          by the Administrative Agent in such capacity on reasonable notice to inspect and
          (subject to the provision by the Administrative Agent of a confidentiality
          undertaking acceptable to the Parent Guarantor (acting reasonably)) copy and
          make extracts from the same, or procure that such managers or other officers do
          so and promptly upon request of the Administrative Agent, furnish satisfactory
          evidence that the wages and allotments and the insurance and pension
          contributions of the master and crew are being promptly and regularly paid;
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) | promptly notify the Administrative Agent of any occurrence whereby a Collateral
          Vessel has become, or is, with the passage of time or otherwise, likely to
          become, a total loss and furnish the Administrative Agent with full information
          of any casualty or other accident or damage to such Collateral Vessel involving
          an amount in excess of US$3,000,000 (or its equivalent in any other currency);
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(d) | notify the Administrative Agent of any material requirement or recommendation
          made by any insurer or classification society or by any competent authority
          which is not complied with within any time limit specified by such person (as
          such requirement or reccomendation may be extended or modified from time to
          time) or, if no such time limit is specified, as soon as reasonably practicable;
          and
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(e) | notify the Administrative Agent of any intention to lay-up a Collateral Vessel.
|--- | -------------------------------------------------------------------------------

# 17.10     Other Information

Without prejudice to the other
provisions of this Clause 17 (Financial Information), each Obligor shall (and the
Parent Guarantor shall procure that each of the other Obligors shall) from time to time on
the request of the Administrative Agent, provide the Administrative Agent with such
information about the business of the Group and (if applicable) the Leaseback Group and
its financial condition or any member of the Group or the Leaseback Group, as the case may
be (including such members business) as the Administrative Agent may reasonably
require.

# 17.11     Know your
Customer Checks

|(a) | If:
|--- | ---

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

| | (ii) | any change in the status of an Obligor or the composition of the shareholders of
               an Obligor after the date of this Agreement; or
| | ---- | -----------------------------------------------------------------------------------------------------------------------------------------------

| | (iii) | a proposed assignment or transfer by a Lender in accordance with Clause 31
               (Assignments and Transfers) of any of its rights and/or obligations under
               this Agreement to a party that is not a Lender prior to such assignment or
               transfer,
| | ----- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | obliges the Administrative Agent or any Lender (or, in the case of paragraph (iii) above, any
prospective new Lender) to comply with know your customer or similar
identification procedures in circumstances where the necessary information is not already
available to it, each Obligor shall (and the Parent Guarantor shall procure that each
other Obligor shall) promptly upon the request of the Administrative Agent or such Lender
supply, or procure the supply of, such documentation and other evidence as is reasonably
requested by the Administrative Agent (for itself or on behalf of such Lender) or such
Lender (for itself or, in the case of the event described in paragraph (iii) above, on
behalf of any prospective new Lender) in order for the Administrative Agent, such Lender
or, in the case of the event described in paragraph (iii) above, any prospective new
Lender, to carry out and be satisfied with the results of all necessary know your
customer or other checks in relation to any relevant person pursuant to the
transactions contemplated in the Finance Documents.
| |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | Each Lender shall promptly upon the request of the Administrative Agent supply,
          or procure the supply of, such documentation and other evidence as is reasonably
          requested by the Administrative Agent (for itself) in order for the
          Administrative Agent to carry out and be satisfied with the results of all
          necessary know your customer or other checks on Lenders or
          prospective new Lenders pursuant to the transactions contemplated in the Finance
          Documents.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# 18.       FINANCIAL CONDITION

The Parent Guarantor shall ensure
that, at all times, the financial condition of the Group, as evidenced by the financial
statements of the Parent Guarantor provided pursuant to Clause 17.1 (Annual Financial
Statements) and Clause 17.2 (Quarterly Financial Statements) shall be such
that:

|(a) | Free Liquidity is at least US$100,000,000; and
|--- | ----------------------------------------------

|(b) | Available Credit is at least 7.5% of Total Debt,
|--- | ------------------------------------------------

provided that, following any change
in GAAP, the Administrative Agent (on the instructions of an Instructing Group and in
consultation with the Parent Guarantor) may require an amendment to the foregoing
financial covenants which it deems logical and necessary having regard to the nature of
such changes in policy and the intended substance of such financial covenants.

# 19.       COVENANTS

# 19.1     Stock Exchange

The Parent Guarantor shall maintain a
listing of its equity share capital on a recognised stock exchange acceptable to the
Administrative Agent.

# 19.2     Consolidation

|(a) | Subject to paragraph (b) of this Clause 19.2, no member of the Group or (if the
               Leaseback Completion Date has occurred) the Leaseback Group shall merge or
               consolidate with any other entity.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | Paragraph (a) of this Clause 19.2 shall not apply in the case of a merger or
               consolidation between:
|--- | ------------------------------------------------------------------------------------------------------------------

| | (i) | the Parent Guarantor and any other entity where the Parent Guarantor is to be
               the only surviving entity; or
| | --- | --------------------------------------------------------------------------------------------------------------------------

| | (ii) | the Original Borrower (or any of its Subsidiaries) and the Parent Guarantor in
               accordance with the foregoing sub-paragraph (i) of this Clause 19.2.
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------

# 19.3     Maintenance of
Legal Validity

Each Obligor shall (and the Parent
Guarantor shall procure that each other Obligor shall) obtain, comply with the terms of
and do all that is necessary to maintain in full force and effect all authorisations,
approvals, licences and consents required in or by the laws and regulations of its
jurisdiction of incorporation or organisation and all other applicable jurisdictions, to
enable it lawfully to enter into and perform its obligations under the Finance Documents
and to ensure the legality, validity, enforceability or admissibility in evidence of the
Finance Documents in its jurisdiction of incorporation or organisation and all other
applicable jurisdictions.

# 19.4     Notification of
Default

Each Obligor shall (and the Parent
Guarantor shall procure that each other Obligor shall) promptly, upon becoming aware of
the same, inform the Administrative Agent of the occurrence of any Default and, upon
receipt of a written request to that effect from the Administrative Agent, confirm to the
Administrative Agent that, save as previously notified to the Administrative Agent or as
notified in such confirmation, no Default has occurred.

# 19.5     Claims Pari Passu

Each Obligor shall (and the Parent
Guarantor shall procure that each other Obligor shall) ensure that at all times the claims
of the Finance Parties against it under this Agreement rank at least pari passu
with the claims of all its other unsecured creditors save those whose claims are preferred
by any bankruptcy, insolvency, liquidation, winding-up or other similar laws of general
application.

# 19.6     Management of
Collateral Vessels

Each Obligor shall (and the Parent
Guarantor shall procure that each other Obligor shall) ensure that each Collateral Vessel
which it owns is at all times technically and commercially managed by a member of the
Group or (if applicable) the Leaseback Group (excluding any Collateral Vessels being the
subject of a Bareboat Charter).

# 19.7     Classification

Each Obligor shall (and the Parent
Guarantor shall procure that each other Obligor shall) ensure that each Collateral Vessel
which it owns maintains the highest classification required for the purpose of the
relevant trade of such Collateral Vessel which shall be with a Pre-Approved Classification
Society or such other society as may be acceptable to the Administrative Agent, in each
case, free from any overdue recommendations and conditions affecting that Collateral
Vessels class.

# 19.8     Financial
Indebtedness

|(a) | Subject to paragraph (d) of this Clause 19.8, other than pursuant to the Finance
          Documents, neither the Leaseback Borrower (if applicable) nor any Subsidiary
          Guarantor shall (and the Parent Guarantor shall procure that no Subsidiary
          Guarantor shall) incur any Financial Indebtedness except (subject to paragraph
          (b) of this Clause 19.8) any such Indebtedness owed to any member of the Group
          or the Leaseback Group (if any), provided that:
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (i) | such inter-group Financial Indebtedness is unsecured and fully subordinated in
          right of payment to the rights of each of the Finance Parties under the Finance
          Documents in accordance with paragraph (c) of this Clause 19.8; and
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (ii) | each Subsidiary Guarantor and the Leaseback Borrower may incur Financial
          Indebtedness in the ordinary course of operating the Collateral Vessel owned by
          it provided that in respect of each such Subsidiary Guarantor or the Leaseback
          Borrower (as the case may be), the aggregate of such Financial Indebtedness does
          not exceed US$1,000,000 in the case of each such Collateral Vessel at any time.
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | No member of the Leaseback Group may incur any Financial Indebtedness to any
          member of the Group (other than for the purposes of an investment in the
          Leaseback Borrower, which (subject to paragraph (c) of this Clause 19.8) is
          fully subordinated to the rights of each of the Finance Parties under the
          Finance Documents, by a member of the Group pursuant to the Permitted Sale and
          Leaseback) and no member of the Group other than the Parent Guarantor may incur
          any Financial Indebtedness to any member of the Leaseback Group.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) | To the extent permitted under the foregoing provisions of this Clause 19.8, any
          member of the Group and/or the Leaseback Group (as applicable) may service
          Financial Indebtedness owed to any other member of the Group and/or the
          Leaseback Group (as the case may be) in accordance with the terms of such
          Financial Indebtedness, provided that, on any day on which an amount remains due
          and payable by an Obligor under any Finance Document, such amount shall be
          discharged in preference to any such Financial Indebtedness owed by such Obligor
          to another member of the Group and/or (as applicable) the Leaseback Group which
          is also due and payable on such day and notwithstanding the foregoing provisions
          of this Clause 19.8, following the occurrence of an Event of Default which is
          continuing, any payment by an Obligor in respect of Financial Indebtedness owed
          to another member of the Group and/or (as applicable) the Leaseback Group shall
          require the prior consent of the Security Trustee.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(d) | Any Obligor may enter into an interest rate hedge, currency swap or similar
          arrangement for a notional amount not exceeding the Outstandings as applicable
          from time to time.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# 19.9     Certificate of
Financial Responsibility

Each Subsidiary Guarantor shall (and
the Parent Guarantor shall procure that each Subsidiary Guarantor shall) obtain and
maintain a certificate of financial responsibility in relation to any Collateral Vessel
which it owns, which is to call the United States of America.

# 19.10     Chartering

|(a) | Subject to paragraph (b) of this Clause 19.10 and without prejudice to any other
          Security required to be provided in connection with any charter or contract of
          affreightment for a Collateral Vessel pursuant to the Finance Documents, each
          Obligor may enter into any charter party (including one or more bareboat
          charters) and/or contract of affreightment of any type or duration, in respect
          of any vessel, provided that, the entry into a bareboat charter with Petrobras
          in respect of a Collateral Vessel after the date of this Agreement shall require
          the prior consent of an Instructing Group.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | In relation to each Relevant Third Party Charter in effect from time to time (to
          the extent that the same was not required to be provided pursuant to and in
          accordance with Clause 3.1 (Conditions Precedent)), the Parent Guarantor
          shall procure the delivery to the Security Trustee of an Encumbrance in relation
          to such Relevant Third Party Charter (including in respect of the Earnings of
          the relevant Collateral Vessel), such Encumbrance to be provided in form and
          substance reasonably satisfactory to the Security Trustee, provided that such
          Encumbrance shall not restrict the operation by the relevant Obligors of the
          accounts into which such Earnings are to be paid from time to time unless an
          Event of Default has occurred and is continuing, in which case, the Parent
          Guarantor shall pay (or shall procure that) all amounts standing to the credit
          of such accounts representing such Earnings shall be applied promptly, as the
          Security Trustee may direct.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) | Without prejudice to paragraph (d) of this Clause 19.10, following the
          occurrence of an Event of Default which is continuing, each Subsidiary Guarantor
          being the owner of a Collateral Vessel which is the subject of one or more
          Intra-Group Charters shall (and the Parent Guarantor shall procure that each
          Subsidiary Guarantor and any other Intra-Group Charter Party shall):
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (i) | effect the immediate and unconditional suspension of each and every right and
          remedy whatsoever available to it (whether in respect of charter hire due and
          payable for the time being or otherwise);
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (ii) | except as otherwise permitted with the prior consent of the Security Trustee, at
          all times thereafter, maintain such suspension in full; and
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------------

| | (iii) | take all such steps as are necessary in the reasonable determination of the
          Security Trustee in connection with any enforcement of the Security created in
          respect of the relevant Collateral Vessel pursuant to the Security Documents
          (including, without limitation, to terminate any Intra-Group Charters relating
          to such Collateral Vessel and to ensure that the Security Trustee is able to
          freely deal with that Collateral Vessel for the purposes of such enforcement).
| | ----- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(d) | The Parent Guarantor (for itself and on behalf of each Intra-Group Charter
          Party) and each Subsidiary Guarantor acknowledges and agrees that each of the
          rights and remedies of the Intra-Group Charter Parties which arise from time to
          time pursuant to the Intra-Group Charters are and shall at all times be fully
          subordinate in right of payment to the rights and remedies of the Finance
          Parties under the Finance Documents so that the Intra-Group Charter Parties may
          make payments falling due and payable from time to time under the Intra-Group
          Charters to which they are a party in accordance with the terms of such
          Intra-Group Charters but on any day on which an amount remains due and payable
          by an Obligor or a Charterer under a Finance Document, such amount shall be
          discharged in preference to any such amount owed by such Obligor or such
          Charterer to an Intra-Group Charter Party which is also due and payable on such
          day.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# 19.11     Negative Pledge

Neither the Leaseback Borrower (if
applicable) nor any Subsidiary Guarantor shall (and the Parent Guarantor shall procure
that no Subsidiary Guarantor shall) create, or permit to subsist, any Encumbrance (other
than pursuant to the Finance Documents) over all or any part of its present or future
revenues or assets, other than:

|(a) | an Encumbrance which has been the subject of the prior approval of an
          Instructing Group;
|--- | --------------------------------------------------------------------------------------------------

|(b) | an Encumbrance arising either by operation of law or in the ordinary course of
          business of such Subsidiary Guarantor or the Leaseback Borrower (as the case may
          be) which is discharged in the ordinary course of business; or
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) | a Permitted Lien.
|--- | -----------------

# 19.12     Disposal of Assets
and Collateral Vessel Substitution

|(a) | Subject to paragraph (b) of this Clause 19.12, neither the Leaseback Borrower
               (if applicable) nor any Subsidiary Guarantor shall (and the Parent Guarantor
               shall procure that no Subsidiary Guarantor shall) sell, lease, transfer or
               otherwise dispose of, by one or more transactions (whether related or not), the
               whole or any part of its revenues or assets (and the Parent Guarantor shall
               procure that no member of the Group or (if applicable) the Leaseback Group
               otherwise disposes of a Collateral Vessel, including indirectly by way of a
               transfer of any equity interest), other than:
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (i) | the sale of a Collateral Vessel to a third party where (x) the net proceeds of
               such sale will be sufficient for the relevant Borrower to make any prepayment
               required pursuant to and in accordance with Clause 8.1 (Total Loss or
               Sale) (when taken together with any additional portion of such prepayment to
               be funded by the Group or (if applicable) the Leaseback Group in accordance with
               this Agreement) or (y) no prepayment will be required in relation to such sale
               by virtue of sub-paragraph (i) or (ii) of Clause 8.1(a) (Total Loss or
               Sale); or
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (ii) | pursuant to the Permitted Sale and Leaseback.
| | ---- | ---------------------------------------------

|(b) | Subject to compliance with Clause 17.6 (Additional Appraisal Package) and
               Clause 21 (Additional Obligors and New Vessels) (and provided
               that no Default has occurred and is continuing), the Parent Guarantor may at any
               time (by notice to the Lenders (through the Administrative Agent)) elect:
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (i) | to transfer the ownership of a Tranche A Collateral Vessel from the Subsidiary
               Guarantor being the current owner of such vessel to another entity (such other
               entity to be (x) incorporated or established in a Pre-Approved Jurisdiction or
               other jurisdiction acceptable to the Administrative Agent and (y) a Subsidiary
               of the Parent Guarantor); or
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (ii) | to substitute one or more New Vessels for any of the existing Collateral Vessels
               by way of a transfer of the ownership of such New Vessel (or the entity which
               owns it) to the Parent Guarantor or any of its Subsidiaries (provided that, any
               such Subsidiary is incorporated or established in a Pre-Approved Jurisdiction or
               other jurisdiction acceptable to the Administrative Agent), following which, the
               Security Trustee at the expense of the Parent Guarantor shall effect the release
               of such existing Collateral Vessel from the mortgage and other Security (as
               applicable) created over it pursuant to the Security Documents.
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# 19.13     Sale and Leaseback

Except pursuant to the Permitted Sale
and Leaseback, no Obligor shall (and the Parent Guarantor shall procure that no other
Obligor shall) sell, transfer or otherwise dispose of any of its assets on terms whereby
such asset is or may be leased to or reacquired or acquired by any member of the Group or
(if applicable) the Leaseback Group, in circumstances where the transaction is entered
into primarily as a method of raising finance or of financing the acquisition cost of an
asset, except for assets acquired in the ordinary course of trade.

# 19.14     Registration

|(a) | No Subsidiary Guarantor shall (and the Parent Guarantor shall procure that no
               Subsidiary Guarantor shall) change or permit a change to the flag of the
               Collateral Vessel which it owns other than to a Pre-Approved Flag or such other
               flag as may be acceptable to the Administrative Agent.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | In relation to any Collateral Vessel from time to time on charter to Petrobras
               and (provided that such charter has been entered into in accordance with this
               Agreement) subject to the prior delivery by the Security Trustee to the Parent
               Guarantor of a quiet enjoyment undertaking satisfactory to the Parent Guarantor
               in favour of Petrobras in respect of such Collateral Vessel:
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (i) | where pursuant to any Law a registration is required to be effected and
               maintained at the Brazilian Special Registry in respect of such Collateral
               Vessel, within 60 days of the completion of such registration (or if later,
               within 60 days of the delivery by the Security Trustee of the aforementioned
               quiet enjoyment undertaking relating to such Collateral Vessel), the Parent
               Guarantor shall procure the delivery to the Security Trustee by the relevant
               Subsidiary Guarantor in form and substance satisfactory to the Security Trustee,
               of a power of attorney authorising the Security Trustee to cancel such
               registration or de-register such Collateral Vessel from such register following
               the occurrence of any event which entitles the relevant member of the Group or
               Leaseback Group to withdraw that Collateral Vessel from such charter or
               otherwise repossess it or to terminate such charter; and
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (ii) | if the Parent Guarantor fails to deliver any such power of attorney in
               accordance with sub-paragraph (i) above, immediately upon the expiry of such 60
               day period, the relevant Collateral Vessel shall for the purposes of this
               Agreement be deemed to have been disposed of (the day immediately following such
               expiry being the Disposal Date) and the relevant Borrower shall comply with its
               obligations under Clause 8 (Mandatory Commitment Reductions and
               Prepayments).
| | ---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# 19.15     ISM Compliance

Each Obligor shall (and the Parent
Guarantor shall procure that each other Obligor shall) comply (and procure that the
manager of each Collateral Vessel which it owns, if not managed by it, complies) in all
material respects with the ISM Code or any replacement thereof and in particular (without
prejudice to the generality of the foregoing) shall ensure that it holds (or procures that
such other manager holds) a valid and current Document of Compliance issued pursuant to
the ISM Code and a valid and current Safety Management Certificate issued in respect of
such Collateral Vessel pursuant to the ISM Code and such Obligor shall (and the Parent
Guarantor shall procure that each other Obligor shall), promptly upon request, supply the
Administrative Agent with copies of the same.

# 19.16     Necessary
Authorisations

Without prejudice to Clause 19.15
(ISM Compliance) or any other specific provision of the Finance Documents relating
to an Authorisation, each Obligor shall (and the Parent Guarantor shall procure that each
other member of the Group and (if applicable) the Leaseback Group shall):

|(a) | obtain, comply with and do all that is necessary to maintain in full force and
          effect all Necessary Authorisations (if a failure to do the same may cause a
          Material Adverse Effect); and
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | promptly upon request, supply certified copies to the Administrative Agent of
          all Necessary Authorisations.
|--- | ---------------------------------------------------------------------------------------------------------------------

# 19.17     Compliance with
Applicable Laws

Each Obligor shall (and the Parent
Guarantor shall procure that each other member of the Group and (if applicable) each
member of the Leaseback Group shall) comply with all applicable laws to which it may be
subject, if a failure to do the same may have a Material Adverse Effect.

# 19.18     Loans and
Guarantees

Neither the Leaseback Borrower (if
applicable) nor any Subsidiary Guarantor shall (and the Parent Guarantor shall procure
that no Subsidiary Guarantor shall) make any loans, grant any credit (save in the ordinary
course of business) or give any guarantee or indemnity (except pursuant to the Finance
Documents) to or for the benefit of any person or otherwise voluntarily assume any
liability, whether actual or contingent, in respect of any obligation of any other person,
otherwise than to another member of the Group and/or the Leaseback Group in accordance
with Clause 19.8 (Financial Indebtedness).

# 19.19     Dividends

Following the occurrence of a Default
which is continuing, no Obligor shall (and the Parent Guarantor shall procure that no
other Obligor shall) pay, make or declare any dividend or other distribution.

# 19.20     Financial
Assistance and Fraudulent Conveyance

The Parent Guarantor will ensure that
all payments and provision of guarantees, security and other assistance by and between
members of the Group and/or (if applicable) the Leaseback Group have been and will be made
in compliance with applicable local laws and regulations concerning fraudulent conveyance,
financial assistance by a company for the acquisition of or subscription for its own
shares or the shares of its parent or any other company or concerning the protection of
shareholders capital.

# 19.21     Other Business

Except to the extent expressly
permitted by the Finance Documents, neither of the Borrowers nor any Subsidiary Guarantor
shall (and the Parent Guarantor shall procure that no Subsidiary Guarantor shall) carry on
any business other than that of owning, chartering and operating vessels or, in the case
of the Borrowers, being a Holding Company or other owner of persons doing the same.

# 19.22     Insurance

|(a) | The Obligors shall (and the Parent Guarantor shall procure that the other
          Obligors shall) maintain hull and machinery insurance and war risks in respect
          of:
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (i) | the Collateral Vessels, in an aggregate amount equal to not less than the
          greater of (x) 110% of the aggregate of the Commitments and (y) the aggregate
          Market Value of such Collateral Vessels; and
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (ii) | each Collateral Vessel, in an amount equal to not less than the Market Value of
          such Collateral Vessel.
| | ---- | -----------------------------------------------------------------------------------------------------------------

|(b) | The Obligors shall (and the Parent Guarantor shall procure that the other
          Obligors shall) maintain oil pollution and protection and indemnity insurance on
          the Collateral Vessels in an aggregate amount equal to at least US$1,000,000,000
          in respect of each incident or where (in the reasonable opinion of an
          Instructing Group, which shall take into consideration the price at which such
          cover can be obtained in the market) such insurance cannot be obtained in the
          international insurance market following due diligence (other than where the
          absence of available cover is caused by a history of accidents and/or spillage
          in respect of certain of the Collateral Vessels and/or their owners), such
          insurance shall be for an aggregate amount equal to at least US$500,000,000 in
          respect of each incident (or such other amount as may be agreed by an
          Instructing Group).
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) | For the avoidance of doubt, the Obligors shall not be required to maintain MII
          or MAP Pollution in respect of any Collateral Vessel.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------

# 19.23     Collateral Vessel
Provisions

|(a) | Each deed of covenant or (if a deed of covenant is not required in the relevant
          jurisdiction) each mortgage to be delivered in relation to a Collateral Vessel
          pursuant to this Agreement (other than each Collateral Vessel being subject to a
          Bareboat Charter as at the date of this Agreement), shall incorporate all of the
          Collateral Vessel Provisions, subject only to such amendments as are necessary
          for the purposes of the governing law of such deed of covenant or mortgage (as
          the case may be).
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | Each Obligor shall (and the Parent Guarantor shall procure that each other
          Obligor shall) comply with each such mortgage and (if applicable) deed of
          covenant to which it is a party, including (without limitation) the Collateral
          Vessel Provisions (as applicable) contained therein.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# 19.24     Centre of Main
Interests

No Obligor shall (and the Parent
Guarantor shall procure that no other Obligor shall), without the prior written consent of
an Instructing Group, transfer or allow to change its Centre of Main Interests.

# 19.25     Further Assurance

Each Obligor shall (and the Parent
Guarantor shall procure that each other Obligor shall) at its own expense, promptly take
all such action as the Administrative Agent or the Security Trustee may reasonably require
for the purpose of perfecting or protecting any Finance Partys rights with respect
to the Security created or evidenced (or intended to be created or evidenced) by the
Security Documents.

# 20.       SALE AND LEASEBACK

# 20.1     Permitted Sale and
Leaseback

On or before the expiry of the
Leaseback Period and subject to Clause 20.2 (Conditions), the Parent Guarantor may
enter into a sale and leaseback transaction in respect of all of the Tranche A Vessels.

# 20.2     Conditions

A sale and leaseback transaction
under Clause 20.1 (Permitted Sale and Leaseback) shall require the approval of an
Instructing Group unless in relation to such transaction:

|(a) | each of the representations made in Clause 16 (Representations and
          Warranties) is true and will continue to be true, in each case, in all
          respects, following the completion of such transaction, provided that any such
          representation which expressly relates to a given date or period shall be
          required to be true solely in respect of that date or period;
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | no Default has occurred and is continuing or will result from the completion of
          such transaction;
|--- | -----------------------------------------------------------------------------------------------------------

|(c) | the structure of such transaction reflects the description contained in Part I
          of Schedule 6 (Permitted Sale and Leaseback) as further
          supplemented by the Leaseback Disclosures;
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(d) | on (or where applicable, prior to, if the same will not materially prejudice the
          interests of the Lenders) the completion of such transaction:
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------

| | (i) | pursuant to and in accordance with Clause 21.2 (Novation of Leaseback
          Borrower), the Original Borrower will be released from and the Leaseback
          Borrower will assume its rights and obligations in respect of each of the
          Tranche A Obligations;
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (ii) | to the extent applicable (but without prejudice to Clause 24.10 (Limitation
          upon Permitted Sale and Leaseback)), pursuant to and in accordance
          with Clause 19.12(b) (Disposal of Assets and Collateral Vessel
          Substitution), the relevant Subsidiary Guarantors will be released from (and
          the relevant Substitute Vessel Owners will assume) liability as Guarantors in
          respect of the Tranche A Obligations;
| | ---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (iii) | to the extent necessary, the relevant Obligors shall (and the Parent Guarantor
          shall procure that each other Obligor shall) provide such additional or
          alternative security in favour of the Security Trustee and such other documents
          (in each case, in a form and substance satisfactory to it) as will be required
          to ensure inter aliathat on (and if applicable, prior to) completion of
          such transaction, the Lenders have the benefit of a security package
          substantially the same as that which the Obligors purported to provide pursuant
          to the Security Documents prior to such completion, including (to the extent
          applicable in the relevant jurisdiction where the ownership of a Collateral
          Vessel is to be transferred by a Subsidiary Guarantor for the purposes of such
          transaction), but not limited to, a vessel mortgage and deed of covenant in
          respect of such Collateral Vessel from the relevant Substitute Vessel Owner
          (each of which complies with Clause 19.23(a) (Collateral Vessel
          Provisions)); and
| | ----- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (iv) | the Administrative Agent has received a legal opinion (in form and substance
          satisfactory to it) relating to the Leaseback Borrower in respect of each of (x)
          the relevant local law applicable to (aa) the jurisdiction of incorporation or
          establishment of the Leaseback Borrower and (bb) such transaction (y) the tax
          structure and treatment of the Leaseback Group and (z) the Finance Documents
          (including, without limitation, the Novation Deed, any Accession Notice and any
          Security Document) entered into by the Obligors for the purposes of the
          completion of the Permitted Sale and Leaseback in accordance with this
          Agreement; and
| | ---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(e) | the interest rate applicable to the first Interest Period of the Tranche A
          Advance will not have to be determined under Clause 10 (Market Disruption and
          Alternative Interest Rates),
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

provided that (x) it shall be the
sole responsibility of the Parent Guarantor to demonstrate that the conditions in this
Clause 20.2 have been met in relation to the Permitted Sale and Leaseback (y) any
determination by the Administrative Agent under this Clause 20.2 shall be made solely on
the basis of the relevant evidence made available to it at the applicable time by any
person and (z) without prejudice to Clause 25.9(a) (Exclusion of Liability), the
Administrative Agent shall be entitled to rely on the prima facieaccuracy,
completeness and efficacy of any such evidence, without incurring any liability to any
person in connection with the same.

# 20.3     Leaseback
Completion Date

Subject to (i) the satisfaction of
the conditions contained in Clause 20.2 (Conditions) and (ii) the receipt of all
information required by the Administrative Agent under Clause 20.5 (Information
Required by Administrative Agent), the Administrative Agent, by notice to the Parent
Guarantor and each Lender (the Leaseback Completion Date Notice), shall
confirm the Leaseback Completion Date (which shall be a date falling no earlier than 10
Business Days following the delivery of such notice by the Administrative Agent).

# 20.4     Supplemental
Leaseback Disclosures

Promptly upon receipt of any
information whatsoever which would warrant a material change to the description of the
Permitted Sale and Leaseback as contained in Part I of Schedule 6 (Permitted Sale and
Leaseback) and/or the Leaseback Disclosures, the Parent Guarantor shall procure the
prompt delivery of such information to the Lenders (through the Administrative Agent).

# 20.5     Information
Required by Administrative Agent

In addition to any Supplemental
Leaseback Disclosures, during the Leaseback Period, the Parent Guarantor shall regularly
provide the Administrative Agent with such accurate and up to date information relating to
the preparations for the completion of the Permitted Sale and Leaseback (whether or not
requested by the Administrative Agent) for the purposes of its compliance with the
provisions of Clause 20.3 (Leaseback Completion Date), including (but not limited
to) any information concerning the proposed timing for the completion of the Permitted
Sale and Leaseback and any steps required to be taken by any party to a Finance Document
in relation to such completion.

# 20.6     Collateral Vessel
Conversion

|(a) | At any time during the Leaseback Period, a Subsidiary Guarantor (or the Parent
               Guarantor on its behalf) may elect to convert the Tranche B Vessel (if any)
               owned by it into a Tranche A Vessel (subject to the provision of at least 10
               Business Days prior notice to the Administrative Agent, such notice to specify
               the date on which the conversion is to take effect in accordance with this
               Clause 20.6).
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | Immediately upon such conversion:
|--- | ---------------------------------

| | (i) | the Total Tranche A Commitments and the Tranche A Outstandings shall be
               increased, and the Total Tranche B Commitments and the Tranche B Outstandings
               shall be reduced; and
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (ii) | each Tranche A Commitment Reduction shall be increased and each Tranche B
               Commitment Reduction shall be reduced,
| | ---- | -------------------------------------------------------------------------------------------------------------------------------

| |  | in each case, on the basis of each Lenders Proportion by an aggregate amount equal to
the Tranche Adjustment Amount. Following an adjustment pursuant to this paragraph (b), the
Administrative Agent shall deliver to the Borrowers and the Lenders, details of the
principal repayments required to be made from time to time under Clause 5 (Scheduled
Commitment Reductions and Repayments) in the form of Schedule 8 (Commitment
Reduction Schedule), as amended to reflect such adjustment provided that, a failure on
the part of the Administrative Agent to deliver such a notice, shall not affect the
obligations of the relevant Borrower in respect of such amounts which are to fall due.
| |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# 21.       ADDITIONAL OBLIGORS
AND NEW VESSELS

# 21.1     Accession Documents

|(a) | Prior to any disposal of a Collateral Vessel to a Substitute Vessel Owner
          pursuant to Clause 19.12(b)(i) (Disposal of Assets and Collateral Vessel
          Substitution) (whether in relation to the Permitted Sale and Leaseback or
          otherwise), the Parent Guarantor shall procure that there is delivered to the
          Administrative Agent an Accession Notice duly executed by itself, each Borrower
          (as applicable) and the relevant Substitute Vessel Owner, together with the
          documents set out in Part III of Schedule 6 (Accession Documents) (in
          each case, to the extent reasonably required by the Administrative Agent).
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | Prior to any substitution of a New Vessel for one or more existing Collateral
          Vessels pursuant to Clause 19.12(b)(ii) (Disposal of Assets and Collateral
          Vessel Substitution) (whether in relation to the Permitted Sale and
          Leaseback or otherwise), the Parent Guarantor shall procure that there is
          delivered to the Administrative Agent the documents set out in Part III of
          Schedule 6 (Accession Documents) (in each case, to the extent reasonably
          required by the Administrative Agent).
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# 21.2     Novation of
Leaseback Borrower

Without prejudice to the liability of
the Parent Guarantor and the Cross Guarantors in respect of the Cross Guarantee
Obligations and subject to the delivery to the Administrative Agent of a duly executed
Novation Deed and to the provisions of Clause 21.1 (Accession Documents), with
effect from the Leaseback Completion Date:

|(a) | the Original Borrower and the other parties to this Agreement (the
          Other Parties), shall be released from any further
          obligations towards one another in respect of Tranche A and their respective
          rights against one another in relation to Tranche A and the Tranche A
          Obligations shall be cancelled (such rights and obligations being referred to in
          this Clause 21.2 as relevant obligations);
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | the Leaseback Borrower and the Other Parties shall assume obligations towards
          one another and/or acquire rights against one another which differ from the
          relevant obligations only insofar as the Leaseback Borrower and the Other
          Parties have assumed and/or acquired the same in place of the Original Borrower
          and the Other Parties;
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) | the Leaseback Borrower and the Other Parties shall acquire the same rights and
          benefits and assume the same obligations between themselves as they would have
          acquired and assumed had the Leaseback Borrower been an original party to this
          Agreement as a Borrower in respect of Tranche A and the Tranche A Obligations,
          with the rights, benefits and obligations acquired or assumed by it as a result
          of such transfer (but subject always to Clause 24.10 (Limitation upon
          Permitted Sale and Leaseback)); and
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(d) | the Leaseback Borrower shall become a party to this Agreement as the Borrower in
          respect of Tranche A and the Tranche A Obligations.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------

# 21.3     Accession of
Substitute Vessel Owners

In respect of any Substitute Vessel
Owner, upon delivery of a duly executed Accession Notice to the Administrative Agent (but
subject to compliance by the Parent Guarantor with Clause 21.1 (Accession
Documents)), the Substitute Vessel Owner being party to it, the other Obligors
(including, if applicable, the Leaseback Borrower) and the Finance Parties, will assume
such obligations towards one another and/or acquire such rights against each other as they
would each have assumed or acquired had such Substitute Vessel Owner been an original
party to this Agreement as a Guarantor, such Substitute Vessel Owner shall become a party
to this Agreement as a Guarantor and in relation to any Superseded Guarantor, such
Superseded Guarantor shall cease to be a party to this Agreement and to be liable in
respect of any obligations which would otherwise accrue to it from the date of such
release under Clause 24 (Guarantee and Indemnity).

# 22.       EVENTS OF DEFAULT

Each of Clauses 22.1 (Failure to
Pay) to Clause 22.18 (Change of Control) describes the circumstances which
constitute an Event of Default for the purposes of this Agreement.

# 22.1     Failure to Pay

|(a) | An Obligor fails to pay any amount of principal due from it under this Agreement
          at the time, in the currency and otherwise in the manner specified herein
          provided that, if such Obligor can demonstrate to the reasonable satisfaction of
          the Administrative Agent that it has given all necessary instructions to effect
          such payment and the non-receipt thereof is attributable solely to an error in
          the banking system, such payment shall instead be deemed to be due, solely for
          the purposes of this paragraph (a), within 3 Business Days of the date on which
          it actually fell due under this Agreement.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | An Obligor fails to pay any other amount due from it under a Finance Document
          and such failure continues unremedied for 5 Business Days or, in the case of
          sums payable on demand, 10 Business Days, after such demand has been duly made
          on the relevant Obligor.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# 22.2     Misrepresentation

Any representation or statement made
by any Obligor in any Finance Document to which it is a party or in any notice or other
document, certificate or statement delivered by it pursuant thereto or in connection
therewith is or proves to have been incorrect or misleading, where the circumstances
causing the same give rise to a Material Adverse Effect.

# 22.3     Specific Covenants

An Obligor fails duly to perform or
comply with any of the obligations expressed to be assumed by it under Clause 19.1
(Stock Exchange), Clause 19.2 (Consolidation), Clause 19.3 (Maintenance
of Legal Validity), Clause 19.5 (Claims Pari Passu), Clause 19.6 (Management
of Collateral Vessels), Clause 19.8 (Financial Indebtedness), Clause 19.11
(Negative Pledge), Clause 19.12 (Disposal of Assets and Collateral Vessel
Substitution), Clause 19.13 (Sale and Leaseback), Clause 19.18 (Loans and
Guarantees), Clause 19.20 (Financial Assistance and FraudulentConveyance) or
Clause 19.22 (Insurance).

# 22.4     Financial Condition

An Obligor fails duly to perform or
comply with any of its obligations under Clause 18 (Financial Condition) at any
time.

# 22.5     Other Obligations

An Obligor fails duly to perform or
comply with any of the obligations expressed to be assumed by it in any Transaction
Document (other than those referred to in Clause 22.3 (Specific Covenants) or
Clause 22.4 (Financial Condition)) and such failure is not remedied within 30 days
after the Administrative Agent has given notice thereof to the Parent Guarantor.

# 22.6     Cross Default

Any Indebtedness of a member of the
Group or (if applicable) the Leaseback Group is not paid when due (or within any
applicable grace period) or any Indebtedness of a member of the Group or (as the case may
be) the Leaseback Group is declared to be or otherwise becomes due and payable prior to
its specified maturity where (in either case) the aggregate of all such unpaid or
accelerated Indebtedness of members of the Group or (if applicable) the Leaseback Group is
equal to or greater than US$50,000,000 or its equivalent in any other currency.

# 22.7     Insolvency and
Rescheduling

An Obligor is unable to pay its debts
as they fall due, commences negotiations with any one or more of its creditors with a view
to the general readjustment or rescheduling of its Indebtedness or makes a general
assignment for the benefit of its creditors or a composition with its creditors.

# 22.8     Winding-up

An Obligor takes any corporate action
or other steps are taken or legal proceedings are started for its winding-up, dissolution,
administration or re-organisation or for the appointment of a liquidator, receiver,
administrator, administrative receiver, conservator, custodian, trustee or similar officer
of it or of any or all of its revenues or assets or any moratorium is declared or sought
in respect of any of its Indebtedness.

# 22.9     Execution or
Distress

|(a) | Any Obligor fails to comply with or pay any sum due from it (within 30 days of
          such amount falling due) under any final judgment or any final order made or
          given by any court or other official body of a competent jurisdiction in an
          aggregate amount equal to or greater than US$50,000,000 (or its equivalent in
          any other currency), being a judgment or order against which there is no right
          of appeal or if a right of appeal exists, where the time limit for making such
          appeal has expired.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | Any execution or distress is levied against, or an encumbrancer takes possession
          of, the whole or any part of, the property, undertaking or assets of an Obligor
          in an aggregate amount equal to or greater than US$50,000,000 (or its equivalent
          in any other currency), other than any execution or distress which is being
          contested in good faith and which is either discharged within 30 days or in
          respect of which adequate security has been provided within 30 days to the
          relevant court or other authority to enable the relevant execution or distress
          to be lifted or released.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) | Notwithstanding the foregoing paragraphs of this Clause 22.9, any levy of any
          distress on or any arrest, condemnation, confiscation, requisition for title or
          use, compulsory acquisition, seizure, detention or forfeiture of a Collateral
          Vessel (or any part thereof) or any exercise or purported exercise of any lien
          or claim on or against a Collateral Vessel where the release of or discharge the
          lien or claim on or against such Collateral Vessel has not been procured within
          30 days.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# 22.10     Similar Events

Any event occurs which, under the
laws of any jurisdiction, has a similar or analogous effect to any of those events
mentioned in Clause 22.7 (Insolvency and Rescheduling), Clause 22.8
(Winding-up) or Clause 22.9 (Execution or Distress).

# 22.11     Insurance

Insurance is not maintained in
respect of any Collateral Vessel in accordance with the terms of the Collateral Vessel
Provisions or (in the case of each Collateral Vessel being subject to a Bareboat Charter
as at the date of this Agreement) the applicable agreements (if any) delivered to the
Administrative Agent pursuant to paragraph 5 under Part IV of Schedule 3 (Initial
Security Documents).

# 22.12     Environmental
Matters

|(a) | Any Environmental Claim is pending or made against it or any of its
          Environmental Affiliates or in connection with a Collateral Vessel, where such
          Environmental Claim has a Material Adverse Effect.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | Any actual Environmental Incident occurs in connection with a Collateral Vessel,
          where such Environmental Incident has a Material Adverse Effect.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------

# 22.13     Repudiation

Any Obligor repudiates any Finance
Document to which it is a party or does or causes to be done any act or thing evidencing
an intention to repudiate any such Finance Document.

# 22.14     Validity and
Admissibility

At any time any act, condition or
thing required to be done, fulfilled or performed in order:

|(a) | to enable any Obligor lawfully to enter into, exercise its rights under and
          perform the respective obligations expressed to be assumed by it in the Finance
          Documents;
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | to ensure that the obligations expressed to be assumed by each Obligor in the
          Finance Documents are legal, valid and binding; or
|--- | ------------------------------------------------------------------------------------------------------------------------------------------

|(c) | to make the Finance Documents admissible in evidence in any applicable
          jurisdiction is not done, fulfilled or performed within 30 days after
          notification from the Administrative Agent to the relevant Obligor requiring the
          same to be done, fulfilled or performed.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# 22.15     Illegality

At any time it is or becomes unlawful
for any Obligor to perform or comply with any or all of its obligations under the Finance
Documents to which it is a party or any of the obligations of the relevant Obligor
hereunder are not or cease to be legal, valid and binding and such illegality is not
remedied or mitigated to the satisfaction of the Administrative Agent within 30 days after
it has given notice thereof to the relevant Obligor.

# 22.16     Material Adverse
Change

At any time there shall occur a
change in the financial condition of any Obligor which, in the reasonable opinion of an
Instructing Group, materially impairs such Obligors ability to discharge its
obligations under the Finance Documents to which it is a party in the manner provided
therein and such change, if capable of remedy, is not so remedied within 15 Business Days
of the delivery of a notice confirming such change by the Administrative Agent to the
relevant Obligor.

# 22.17     Qualifications of
Financial Statements

The auditors of the Group or the
Leaseback Group qualify their report on any audited consolidated financial statements of
the Group or the Leaseback Group (as the case may be) in any regard which, in the opinion
of the Administrative Agent, is material in the context of the Finance Documents and the
transactions contemplated thereby.

# 22.18     Change of Control

A Change of Control occurs in
relation to the Parent Guarantor or either Borrower.

# 22.19     Acceleration

Upon the occurrence of an Event of
Default and while the same is continuing at any time thereafter, the Administrative Agent
may (and, if so instructed by an Instructing Group, shall) by written notice to the Parent
Guarantor:

|(a) | declare all or any part of the Outstandings to be immediately due and payable
          (whereupon the same shall become so payable together with accrued interest
          thereon and any other sums then owed by any Obligor under the Finance Documents)
          or declare all or any part of the Outstandings to be due and payable on demand
          of the Administrative Agent; and/or
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | declare that any undrawn portion of the Credit Facility shall be cancelled,
          whereupon the same shall be cancelled and the corresponding Commitment of each
          Lender shall be reduced to zero; and/or
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) | exercise or direct the Security Trustee to exercise any rights and remedies in
          existence or arising under the Finance Documents.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------

# 22.20     Repayment on Demand

If, pursuant to paragraph (a) of
Clause 22.19 (Acceleration), the Administrative Agent declares all or any part of
the Outstandings to be due and payable on demand of the Administrative Agent, then, and at
any time thereafter, the Administrative Agent may (and, if so instructed by an Instructing
Group, shall) by written notice to the Parent Guarantor:

|(a) | require repayment of all or the relevant part of the Advances on such date as it
          may specify in such notice (whereupon the same shall become due and payable on
          such date together with accrued interest thereon and any other sums then owed by
          any Obligor under the Finance Documents) or withdraw its declaration with effect
          from such date as it may specify in such notice; and/or
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | select as the duration of any Interest Period or Term which begins whilst such
          declaration remains in effect a period of 6 months or less.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------

# 23.       DEFAULT INTEREST

# 23.1     Consequences of
Non-Payment

If any sum due and payable by an
Obligor under this Agreement is not paid on the due date therefor in accordance with the
provisions of Clause 28 (Payments) or if any sum due and payable by an Obligor
pursuant to a judgment of any court in connection with this Agreement is not paid on the
date of such judgment, the period beginning on such due date or, as the case may be, the
date of such judgment and ending on the Business Day on which the obligation of such
Obligor to pay the Unpaid Sum is discharged shall be divided into successive periods, each
of which (other than the first) shall start on the last day of the preceding such period
(which shall be a Business Day) and the duration of each of which shall (except as
otherwise provided in this Clause 23 (Default Interest)) be selected by the
Administrative Agent.

# 23.2     Default Rate

During each such period relating
thereto as is mentioned in Clause 23.1 (Consequences of Non-Payment) an Unpaid Sum
shall bear interest at the rate per annum which is the sum from time to time of 2%, the
Margin, the Associated Costs Rate at such time and LIBOR on the Quotation Date therefor,
provided that:

|(a) | if, for any such period, LIBOR cannot be determined, the rate of interest
          applicable to each Lenders portion of such Unpaid Sum shall be the rate
          per annum which is the sum of 2%, the Margin and the Associated Costs Rate at
          such time and the rate per annum shall be that notified to the Administrative
          Agent by such Lender as soon as practicable after the beginning of such period
          as being that which expresses as a percentage rate per annum the cost to such
          Lender of funding from whatever sources it may select its portion of such Unpaid
          Sum during such period; and
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | if such Unpaid Sum is all or part of an Advance which became due and payable on
          a day other than the last day of an Interest Period or Term relating thereto,
          the first Interest Period applicable to it shall be of a duration equal to the
          unexpired portion of that Interest Period or Term and the rate of interest
          applicable thereto from time to time during such Interest Period shall be that
          which exceeds by 2% the rate which would have been applicable to it had it not
          so fallen due.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# 23.3     Maturity of Default
Interest

Any interest which shall have accrued
under Clause 23.2 (Default Rate) in respect of an Unpaid Sum shall be due and
payable and shall be paid by the Obligor owing such sum at the end of the period by
reference to which it is calculated or on such other dates as the Administrative Agent may
specify by written notice to such Obligor.

# 23.4     Construction of
Unpaid Sum

Any Unpaid Sum shall (for the
purposes of this Clause 23 (Default Interest), Clause 14 (Increased Costs),
Clause 26 (Borrowers Indemnities) and Schedule 5 (Associated Costs
Rate)) be treated as an advance and accordingly in those provisions the term
Advance includes any Unpaid Sum and the term Interest
Period and Term, in relation to an Unpaid Sum, includes each
such period relating thereto as is mentioned in Clause 23.1 (Consequences of
Non-Payment).

# 24.       GUARANTEE AND
INDEMNITY

# 24.1     Guarantee

Subject to Clause 24.10
(Limitation upon Permitted Sale and Leaseback), each Guarantor irrevocably and
unconditionally guarantees, jointly and severally, to each of the Finance Parties the due
and punctual payment by the Borrowers (and either of them) (or in the case of the Original
Borrower in its capacity as a Guarantor, by the Leaseback Borrower) of all sums payable by
any of them under each of the Finance Documents and agrees that promptly on demand it will
pay to the Administrative Agent each and every sum of money which either Borrower (or in
the case of the Original Borrower in its capacity as a Guarantor, the Leaseback Borrower)
is at any time liable to pay to any Finance Party under or pursuant to any Finance
Document which is due but unpaid.

# 24.2     Indemnity

Subject to Clause 24.10
(Limitation upon Permitted Sale and Leaseback), each Guarantor irrevocably and
unconditionally agrees, jointly and severally, as primary obligor and not only as surety,
to indemnify and hold harmless each Finance Party on demand by the Administrative Agent
from and against any loss incurred by such Finance Party as a result of any of the
obligations of either Borrower (or in the case of the Original Borrower in its capacity as
a Guarantor, the Leaseback Borrower) under or pursuant to any Finance Document being or
becoming void, voidable, unenforceable or ineffective as against that Borrower for any
reason whatsoever (whether or not known to that Finance Party or any other person) the
amount of such loss being the amount which the Finance Party suffering it would otherwise
have been entitled to recover from such Borrower.

# 24.3     Continuing and
Independent Obligations

Subject to Clause 24.10
(Limitation upon Permitted Sale and Leaseback), the obligations of each Guarantor
under this Agreement shall constitute and be continuing obligations which shall not be
released or discharged by any intermediate payment or settlement of all or any of the
obligations of either Borrower under the Finance Documents, shall continue in full force
and effect until the unconditional and irrevocable payment and discharge in full of all
amounts owing by either Borrower under each of the Finance Documents and are in addition
to and independent of, and shall not prejudice or merge with, any other security (or right
of set-off) which any Finance Party may at any time hold in respect of such obligations or
any of them.

# 24.4     New Accounts

If the Administrative Agent makes
demand of the Guarantors or any of them pursuant to this Clause 24 (Guarantee and
Indemnity):

|(a) | the Administrative Agent may open a new account or accounts in respect of the
          liabilities of either Borrower to which this guarantee relates or any of them
          (and if it does not do so it shall be treated as if it had done so at the time
          it made such demand); and
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | thereafter any amounts paid by a Borrower (or any other person) to the
          Administrative Agent in respect of the liabilities of either Borrower under any
          of the Finance Documents shall be credited (or be treated as having been
          credited) to a new account and not as having been applied in or towards payment
          of such liabilities or any of them.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# 24.5     Avoidance of
Payments

Where any release, discharge or other
arrangement in respect of any obligation of a Borrower, or any Security any Finance Party
may hold therefor, is given or made in reliance on any payment or other disposition which
is avoided or must be repaid (whether in whole or in part) in an insolvency, liquidation
or otherwise and whether or not any Finance Party has conceded or compromised any claim
that any such payment or other disposition will or should be avoided or repaid (in whole
or in part), the provisions of this Clause 24 (Guarantee and Indemnity) shall
continue as if such release, discharge or other arrangement had not been given or made.

# 24.6     Immediate Recourse

None of the Finance Parties shall be
obliged, before exercising or enforcing any of the rights conferred upon them in respect
of the Guarantors by this Agreement or by Law, to seek to recover amounts due from either
Borrower or to exercise or enforce any other rights or Security any of them may have or
hold in respect of any of the obligations of the Borrowers (or either of them) under any
of the Finance Documents.

# 24.7     Waiver of Defences

Neither the obligations of the
Guarantors contained in this Agreement nor the rights, powers and remedies conferred on
the Finance Parties in respect of the Guarantors by this Agreement or by Law shall be
discharged, impaired or otherwise affected by:

|(a) | the winding-up, dissolution, administration or re-organisation of either
          Borrower or any other person or any change in the status, function, control or
          ownership of either Borrower or any such other person;
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | any of the obligations of either Borrower or any other person under any Finance
          Document or any security held by any Finance Party therefor being or becoming
          illegal, invalid, unenforceable or ineffective in any respect;
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) | any time or other indulgence being granted to or agreed (i) to or with a
          Borrower or any other person in respect of its obligations or (ii) in respect of
          any security granted under any Finance Document;
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(d) | any amendment to, or any variation, waiver or release of, any obligation of, or
          any security granted by, a Borrower or any other person under any Finance
          Document;
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(e) | any total or partial failure to take, or perfect, any security proposed to be
          taken in respect of the obligations of a Borrower or any other person under a
          Finance Document;
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(f) | any total or partial failure to realise the value of, or any release, discharge,
          exchange or substitution of, any security held by any Finance Party in respect
          of a Borrowers obligations under any Finance Document; or
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(g) | any other act, event or omission which might operate to discharge, impair or
          otherwise affect any of the obligations of any of the Guarantors under the
          Finance Documents or any of the rights, powers or remedies conferred upon the
          Finance Parties or any of them thereby or by Law.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# 24.8     No Competition

Any rights which any Guarantor may at
any time have by way of contribution or indemnity in relation to any of the obligations of
a Borrower under any of the Finance Documents or to claim or prove as a creditor of a
Borrower or any other person or its estate in competition with the Finance Parties or any
of them, shall (so long as there remains any sums owed by the Borrowers or either of them
under any of the Finance Documents) be exercised by such Guarantor only if and to the
extent that the Administrative Agent so requires and in such manner and upon such terms as
the Administrative Agent may specify and each Guarantor shall hold any moneys, rights or
Security held or received by it as a result of the exercise of any such rights on trust
for the Administrative Agent for application in or towards payment of any sums at any time
owed by the Borrowers or either of them under any of the Finance Documents as if such
moneys, rights or Security were held or received by the Administrative Agent under this
Agreement.

# 24.9     Appropriation

No Finance Party shall be obliged to
apply any sums held or received by it in respect of the obligations of the Borrowers (or
either of them) under any of the Finance Documents in or towards payment of amounts owing
under any of the Finance Documents, and any such sum may, in the relevant Finance
Partys discretion (but always acting in good faith), be credited to a suspense or
impersonal account and held in such account pending the application from time to time (as
the relevant Finance Party may think fit) of such sums in or towards the discharge of such
liabilities owed to it under the Finance Documents as such Finance Party may select.

# 24.10     Limitation upon
Permitted Sale and Leaseback

With effect from the Leaseback
Completion Date (if any), but without prejudice to the obligations of the Parent Guarantor
and the Cross Guarantors in respect of the Cross Guarantee Obligations, the obligations of
the Tranche A Vessel Owners under this Clause 24 (Guarantee and Indemnity) shall be
limited to the Tranche A Obligations outstanding from time to time, any payment by a
Tranche A Vessel Owner pursuant to this Clause 24 (Guarantee and Indemnity) shall
be applied as and when required pursuant to this Agreement in or towards the discharge of
the Tranche A Obligations and it is agreed and acknowledged that the maximum amount
recoverable from the Tranche A Vessel Owners collectively under Clause 24.1
(Guarantee) and Clause 24.2 (Indemnity) with effect from the Leaseback
Completion Date shall not exceed the aggregate of the Tranche A Obligations.

# 25.       ADMINISTRATIVE AGENT
AND OBLIGORS AGENT

# 25.1     Appointment of the
Administrative Agent

Each of the other Finance Parties
appoints the Administrative Agent to act as its agent under and in connection with the
Finance Documents and authorises the Administrative Agent to exercise the rights, powers,
authorities and discretions specifically delegated to it under or in connection with the
Finance Documents together with any other incidental rights, powers, authorities and
discretions.

# 25.2     Duties of the
Administrative Agent

|(a) | The Administrative Agent shall promptly inform each Lender of the contents of
          any notice or document received by it in its capacity as Administrative Agent
          from any of the Obligors under this Agreement.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | The Administrative Agent shall promptly notify the Lenders of the occurrence of
          any Event of Default or any default by an Obligor in the due performance of or
          compliance with its obligations under any Finance Document upon becoming aware
          of the same.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) | If so instructed by an Instructing Group, the Administrative Agent shall refrain
          from exercising any power or discretion vested in it as agent under any Finance
          Document.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(d) | The duties of the Administrative Agent under the Finance Documents are, save to
          the extent otherwise expressly provided, solely mechanical and administrative in
          nature.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# 25.3     Role of Bookrunner
and Lead Arrangers

Except as specifically provided in
the Finance Documents, the Bookrunner and the Lead Arrangers shall have no obligations of
any kind to any other party under or in connection with any Finance Document.

# 25.4     No Fiduciary Duties

|(a) | Nothing in the Finance Documents constitutes the Administrative Agent, either of
          the Lead Arrangers or the Bookrunner as a trustee or fiduciary of any other
          person.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | The Administrative Agent, the Lead Arrangers or the Bookrunner shall not be
          bound to account to any Lender for any sum or the profit element of any sum
          received by it for its own account.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# 25.5     Business with the
Group

The Administrative Agent, the Lead
Arrangers and the Bookrunner may accept deposits from, lend money to and generally engage
in any kind of banking or other business with any member of the Group and (if applicable)
the Leaseback Group.

# 25.6     Discretion of the
Administrative Agent

|(a) | The Administrative Agent may rely on:
|--- | -------------------------------------

| | (i) | any representation, notice or document believed by it to be genuine, correct and
          appropriately authorised; and
| | --- | ------------------------------------------------------------------------------------------------------------------------

| | (ii) | any statement made by a director, authorised signatory or employee of any person
          regarding any matters which may reasonably be assumed to be within his knowledge
          or within his power to verify.
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | The Administrative Agent may assume, unless it has received notice to the
          contrary in its capacity as agent for the Lenders, that:
|--- | --------------------------------------------------------------------------------------------------------------------------------------------

| | (i) | no Default has occurred;
| | --- | ------------------------

| | (ii) | any right, power, authority or discretion vested in this Agreement upon any
          party, the Lenders or an Instructing Group has not been exercised; and
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (iii) | any notice or request made by the Parent Guarantor is made on behalf of and with
          the consent and knowledge of all the Obligors.
| | ----- | -----------------------------------------------------------------------------------------------------------------------------------------

|(c) | The Administrative Agent may engage, pay for and rely on the advice or services
          of any lawyers, accountants, surveyors or other experts.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------

|(d) | The Administrative Agent may act in relation to the Finance Documents through
          its personnel and agents.
|--- | -----------------------------------------------------------------------------------------------------------------

# 25.7     Instructing
Groups Instructions

|(a) | Unless a contrary indication appears in a Finance Document, the Administrative
          Agent shall (i) act in accordance with any instructions given to it by an
          Instructing Group (or, if so instructed by an Instructing Group, refrain from
          acting or exercising any right, power, authority or discretion vested in it as
          Administrative Agent) and (ii) shall not be liable for any act (or
          omission) if it acts (or refrains from taking any action) in accordance with
          such an instruction of an Instructing Group.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | Unless a contrary indication appears in a Finance Document, any instructions
          given by an Instructing Group will be binding on all the Finance Parties.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) | The Administrative Agent may refrain from acting in accordance with the
          instructions of an Instructing Group (or, if appropriate, all the Lenders) until
          it has received such security or collateral as it may require for any cost, loss
          or liability which it may incur in complying with such instructions.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(d) | In the absence of instructions from an Instructing Group (or, if appropriate,
          the Lenders), the Administrative Agent may act (or refrain from taking action)
          as it considers to be in the best interest of the Lenders.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(e) | The Administrative Agent is not authorised to act on behalf of a Lender in any
          legal or arbitration proceedings relating to any Finance Document without first
          obtaining the Lenders consent to do so.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# 25.8     No Responsibility

The Administrative Agent and the Lead
Arrangers are not responsible for:

|(a) | the adequacy, accuracy and/or completeness of any information (whether oral or
          written) supplied by any Finance Party or an Obligor or any other person in or
          in connection with any Finance Document; or
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | the legality, validity, effectiveness, adequacy or enforceability of any Finance
          Document or any other agreement, arrangement or document entered into, made or
          executed in anticipation of or in connection with any Finance Document.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# 25.9     Exclusion of
Liability

|(a) | Without limiting paragraph (b) of this Clause 25.9, the Administrative Agent
          will not be liable for any action taken by it under or in connection with any
          Finance Document, unless directly caused by its gross negligence or wilful
          misconduct.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | Each of the Lenders agrees that it will not take any proceedings, or assert or
          seek to assert any claim, against any officer, employee or agent of the
          Administrative Agent in respect of any claim it might have against the
          Administrative Agent or in respect of any act or omission of any kind by that
          officer, employee or agent in relation to any Finance Document and agrees that
          any officer, employee or agent of the Administrative Agent may enforce this
          provision.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) | The Administrative Agent will not be liable for any delay (or any related
          consequences) in crediting an account with an amount required under the Finance
          Documents to be paid by it if it has taken all necessary steps as soon as
          reasonably practicable to comply with the regulations or operating procedures of
          any recognised clearing or settlement system used by it for that purpose.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# 25.10     Lenders
Indemnity

Each Lender shall (in its relevant
Proportion (as determined at all times for these purposes in accordance with paragraph (c)
of the definition of Proportion)) indemnify the Administrative Agent from time
to time on demand by the Administrative Agent against any cost, loss or liability incurred
by the Administrative Agent (otherwise than by reason of its gross negligence or wilful
misconduct) in acting as Administrative Agent under the Finance Documents (unless it has
been reimbursed therefor by an Obligor pursuant to the terms of the Finance Documents).

# 25.11     Resignation

|(a) | The Administrative Agent may resign and appoint one of its Affiliates acting
          through an office in New York City or London as successor Administrative Agent
          by giving notice to the Lenders and the Parent Guarantor.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | Alternatively, the Administrative Agent may resign without having designated a
          successor as agent under paragraph (a) above (and shall do so if so required by
          an Instructing Group) by giving notice to the Lenders and the Parent Guarantor,
          in which case an Instructing Group (after consultation with the Parent
          Guarantor) may appoint a successor Administrative Agent.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) | If an Instructing Group has not appointed a successor Administrative Agent in
          accordance with paragraph (b) above within 30 days after notice of resignation
          was given, the Administrative Agent (after consultation with the Parent
          Guarantor) may appoint a successor Administrative Agent (acting through an
          office in New York City or London).
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(d) | The retiring Administrative Agent shall, at the Parent Guarantors cost,
          make available to its successor such documents and records and provide such
          assistance as its successor may reasonably request for the purposes of
          performing its functions as Administrative Agent under the Finance Documents.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(e) | The resignation notice of the Administrative Agent shall only take effect upon
          the appointment of a successor Administrative Agent.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------

|(f) | Upon the appointment of a successor, the retiring Administrative Agent shall be
          discharged from any further obligation in respect of the Finance Documents but
          shall remain entitled to the benefit of this Clause 25 (Administrative Agent
          and Obligors Agent). The Administrative Agents successor and
          each of the other parties to this Agreement shall have the same rights and
          obligations amongst themselves as they would have had if such successor
          Administrative Agent had been an original party as the Administrative Agent.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# 25.12     Confidentiality

|(a) | The Administrative Agent (in acting as agent for the Finance Parties) shall be
          regarded as acting through its respective agency division which in each case
          shall be treated as a separate entity from any other of its divisions or
          departments.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | If information is received by another division or department of the
          Administrative Agent, it may be treated as confidential to that division or
          department and the Administrative Agent shall not be deemed to have notice of
          it.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) | Notwithstanding any other provision of any Finance Document to the contrary, the
          Finance Parties are not obliged to disclose to any other person (i) any
          confidential information or (ii) any other information if the disclosure would,
          or might in its reasonable opinion, constitute a breach of any Law.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# 25.13     Facility Office

The Administrative Agent may treat
each Lender as a Lender, entitled to payments under this Agreement and acting through its
Facility Office, unless it has received not less than 5 Business Days prior notice
from that Lender to the contrary in accordance with the terms of this Agreement.

# 25.14     Lenders
Associated Costs Details

Each Lender shall supply the
Administrative Agent with any information required by the Administrative Agent in order to
calculate the Associated Costs Rate in accordance with Schedule 5 (Associated Costs
Rate).

# 25.15     Credit Appraisal
by the Lenders

Without affecting the responsibility
of any Obligor for information supplied by it or on its behalf in connection with any
Finance Document, each Lender confirms to the Administrative Agent, the Lead Arrangers and
the Bookrunner that it has been, and will continue to be, solely responsible for making
its own independent appraisal and investigation of all risks arising under or in
connection with any Finance Document including but not limited to:

|(a) | the financial condition, status and nature of each member of the Group and (if
          applicable) the Leaseback Group;
|--- | -------------------------------------------------------------------------------------------------------------------------

|(b) | the legality, validity, effectiveness, adequacy or enforceability of any Finance
          Document and any other agreement, arrangement or document entered into, made or
          executed in anticipation of, under or in connection with any Finance Document;
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) | whether that Lender has recourse, and the nature and extent of that recourse,
          against any party or any of its respective assets under or in connection with
          any Finance Document, the transactions contemplated by the Finance Documents or
          any other agreement, arrangement or document entered into, made or executed in
          anticipation of, under or in connection with any Finance Document; and
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(d) | the adequacy, accuracy and/or completeness of any information provided by the
          Administrative Agent, the Lead Arrangers, the Bookrunner or by any other person
          under or in connection with any Finance Document, the transactions contemplated
          by the Finance Documents or any other agreement, arrangement or document entered
          into, made or executed in anticipation of, under or in connection with any
          Finance Document.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# 25.16     Deduction from
Amounts Payable by the Administrative Agent

If any party owes an amount to the
Administrative Agent under any Finance Document, the Administrative Agent may, after
giving notice to that party, deduct an amount not exceeding that amount from any payment
to that party which the Administrative Agent would otherwise be obliged to make under the
Finance Documents and apply the amount deducted in or towards satisfaction of the amount
owed. For the purposes of the Finance Documents, that party shall be regarded as having
received such payment without any such deduction.

# 25.17     Obligors
Agent

|(a) | Each Obligor (other than the Parent Guarantor) irrevocably authorises the Parent
               Guarantor to act on its behalf as its agent in relation to the Finance Documents
               and irrevocably authorises:
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (i) | the Parent Guarantor on its behalf to supply all information concerning itself,
               its financial condition and otherwise to the relevant persons contemplated under
               this Agreement and to give all notices and instructions to execute on its behalf
               any Finance Document and to enter into any agreement in connection with the
               Finance Documents notwithstanding that the same may affect such Obligor, without
               further reference to or the consent of such Obligor; and
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (ii) | each Finance Party to give any notice, demand or other communication to be given
               to or served on such Obligor pursuant to the Finance Documents to the Parent
               Guarantor on its behalf,
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | and in each such case, such Obligor will be bound thereby as though such Obligor itself had
supplied such information, given such notice and instructions, executed such Finance
Document and agreement or received any such notice, demand or other communication.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | Every act, omission, agreement, undertaking, settlement, waiver, notice or other
          communication given or made by the Obligors Agent under any Finance
          Document, or in connection with this Agreement (whether or not known to any
          other Obligor and whether occurring before or after such Obligor became an
          Obligor under this Agreement), shall be binding for all purposes on all other
          Obligors as if the other Obligors had expressly made, given or concurred with
          the same. In the event of any conflict between any notices or other
          communications of the Obligors Agent and any other Obligor, those of the
          Obligors Agent shall prevail.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# 25.18     Co-operation with
the Administrative Agent

Each Lender and each Obligor will
co-operate with the Administrative Agent to complete any legal requirements imposed on the
Administrative Agent in connection with the performance of its duties under this Agreement
and shall supply any information requested by the Administrative Agent in connection with
the proper performance of those duties.

# 26.       BORROWERS
INDEMNITIES

# 26.1     General Indemnities

Each Borrower undertakes
to indemnify:

|(a) | each of the Finance Parties against any cost, claim, loss, expense (including
          legal fees and disbursements) or liability, which any of them may sustain or
          incur as a consequence of the occurrence of any Default; and
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | each Lender against any loss it may suffer or incur as a result of its funding
          or making arrangements to fund its portion of an Advance requested by a Borrower
          under this Agreement but not made by reason of the operation of any one or more
          of the provisions of this Agreement (save as a result of the gross negligence or
          wilful default of the relevant Lender).
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# 26.2     Break Costs

|(a) | Each Borrower shall, within 3 Business Days of demand by the Administrative
          Agent on behalf of a Finance Party, pay to that Finance Party its Break Costs
          attributable to all or any part of any Advance or Unpaid Sum being paid by that
          Borrower on a day other than the last day of an Interest Period or Term for that
          Advance or Unpaid Sum.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | Each Lender shall, as soon as reasonably practicable after a demand by the
          Administrative Agent, provide a certificate confirming the amount of its Break
          Costs for any Interest Period or Term in which they accrue.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# 27.       CURRENCY OF ACCOUNT

# 27.1     Currency

The dollar is the currency of account
and payment for each and every sum at any time due from any Obligor under this Agreement
provided that:

|(a) | each repayment of any Outstandings or Unpaid Sum (or part of it) shall be made
          in the currency in which those Outstandings or Unpaid Sum are denominated on
          their due date;
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | interest shall be payable in the currency in which the sum in respect of which
          such interest is payable was denominated when that interest accrued;
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) | each payment in respect of costs and expenses shall be made in the currency in
          which the same were incurred; and
|--- | --------------------------------------------------------------------------------------------------------------------------

|(d) | each payment pursuant to Clause 12.2 (Tax Indemnity) or Clause 14.1
          (Increased Costs) shall be made in the currency specified by the Finance
          Party claiming under it.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# 27.2     Currency Indemnity

If any sum due from an Obligor under
this Agreement or any order or judgment given or made in relation to this Agreement has to
be converted from the currency (the first currency) in which the same
is payable under this Agreement or under such order or judgment into another currency (the
second currency) for the purpose of (a) making or filing a claim
or proof against such Obligor, (b) obtaining an order or judgment in any court or
other tribunal or (c) enforcing any order or judgment given or made in relation to
this Agreement, the Parent Guarantor shall indemnify and hold harmless each of the persons
to whom such sum is due from and against any loss suffered or incurred as a result of any
discrepancy between (x) the rate of exchange used for such purpose to convert the sum
in question from the first currency into the second currency and (y) the rate or
rates of exchange at which such person may in the ordinary course of business purchase the
first currency with the second currency upon receipt of a sum paid to it in satisfaction,
in whole or in part, of any such order, judgment, claim or proof.

# 28.       PAYMENTS

# 28.1     Payment to the
Administrative Agent

On each date on which this Agreement
requires an amount to be paid by an Obligor or any of the Lenders under this Agreement,
such Obligor or, as the case may be, such Lender shall make the same available to the
Administrative Agent by payment in same day funds (or such other funds as may for the time
being be customary for the settlement of transactions in the relevant currency) to such
account or bank as the Administrative Agent may have specified for this purpose and any
such payment which is made for the account of another person shall be made in time to
enable the Administrative Agent to make available such persons portion of it to such
other person in accordance with Clause 28.2 (Same Day Funds).

# 28.2     Same Day Funds

Save as otherwise provided in this
Agreement, each payment received by the Administrative Agent for the account of another
person shall be made available by the Administrative Agent to such other person (in the
case of a Lender, for the account of its Facility Office) for value the same day by
transfer to such account of such person with such bank in London or New York as such
person shall have previously notified to the Administrative Agent for this purpose.

# 28.3     Clear Payments

Any payment required to be made by an
Obligor under this Agreement shall be calculated without reference to any set-off or
counterclaim and shall be made free and clear of, and without any deduction for or on
account of, any set-off or counterclaim.

# 28.4     Partial Payments

If the Administrative Agent receives
a payment that is insufficient to discharge all the amounts then due and payable by an
Obligor under the Finance Documents, the Administrative Agent shall, unless otherwise
instructed by an Instructing Group, apply that payment towards the obligations of that
Obligor under the Finance Documents in the following order:

|(a) | first, in or towards payment pro rata of any unpaid fees, costs
          and expenses incurred by the Administrative Agent under the Finance Documents;
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | secondly, in or towards payment pro rata of any accrued interest
          or commission due but unpaid under any Finance Document;
|--- | -----------------------------------------------------------------------------------------------------------------------------------

|(c) | thirdly, in or towards payment pro rataof any principal due but
          unpaid under any Finance Document; and
|--- | ----------------------------------------------------------------------------------------------------------------

|(d) | fourthly, in or towards payment pro rata of any other sum due but
          unpaid under the Finance Documents,
|--- | ---------------------------------------------------------------------------------------------------------------

and such application shall override
any appropriation made by an Obligor.

# 28.5     Indemnity

Where a sum is to be paid under this
Agreement to the Administrative Agent for the account of another person, the
Administrative Agent shall not be obliged to make the same available to that other person
(or to enter into or perform any exchange contract in connection therewith) until it has
been able to establish to its satisfaction that it has actually received such sum, but if
it does so and it proves to be the case that it had not actually received such sum, then
the person to whom such sum (or the proceeds of such exchange contract) was (or were) so
made available shall on request refund the same to the Administrative Agent together with
an amount sufficient to indemnify and hold harmless the Administrative Agent from and
against any cost or loss it may have suffered or incurred by reason of its having paid out
such sum (or the proceeds of such exchange contract) prior to its having received such
sum.

# 29.       SHARING AMONG THE
FINANCE PARTIES

# 29.1     Payments to Finance
Parties

If a Finance Party (a
Recovering Finance Party) receives or recovers any amount from an
Obligor other than in accordance with Clause 28 (Payments) and applies that amount
to a payment due under the Finance Documents then:

|(a) | the Recovering Finance Party shall, within 3 Business Days, notify details of
          the receipt or recovery to the Administrative Agent;
|--- | --------------------------------------------------------------------------------------------------------------------------------------------

|(b) | the Administrative Agent shall determine whether the receipt or recovery is in
          excess of the amount the Recovering Finance Party would have been paid had the
          receipt or recovery been received or made by the Administrative Agent and
          distributed in accordance with Clause 28.4 (Partial Payments), without
          taking account of any tax which would be imposed on the Administrative Agent in
          relation to the receipt, recovery or distribution; and
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) | the Recovering Finance Party shall, within 3 Business Days of demand by the
          Administrative Agent, pay to the Administrative Agent an amount (the
          Sharing Payment) equal to such receipt or recovery less any
          amount which the Administrative Agent determines may be retained by the
          Recovering Finance Party as its share of any payment to be made, in accordance
          with Clause 28.4 (Partial Payments).
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# 29.2     Redistribution of
Payments

The Administrative Agent shall treat
the Sharing Payment as if it had been paid by the relevant Obligor and distribute it
between the Finance Parties (other than the Recovering Finance Party) in accordance with
Clause 28.4 (Partial Payments).

# 29.3     Recovering Finance
Partys Rights

|(a) | On a distribution by the Administrative Agent under Clause 29.2
          (Redistribution of Payments), the Recovering Finance Party will be
          subrogated to the rights of the Finance Parties which have shared in the
          redistribution.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | If and to the extent that the Recovering Finance Party is not able to rely on
          its rights under paragraph (a) above, the relevant Obligor shall be liable to
          the Recovering Finance Party for a debt equal to the Sharing Payment which is
          immediately due and payable.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# 29.4     Reversal of
Redistribution

If any part of the Sharing Payment
received or recovered by a Recovering Finance Party becomes repayable and is repaid by
that Recovering Finance Party, then:

|(a) | each Finance Party which has received a share of the relevant Sharing Payment
          pursuant to Clause 29.2 (Redistribution of Payments)shall, upon
          the request of the Administrative Agent, pay to the Administrative Agent for the
          account of that Recovering Finance Party an amount equal to its share of the
          Sharing Payment (together with an amount as is necessary to reimburse that
          Recovering Finance Party for its share of any interest on the Sharing Payment
          which that Recovering Finance Party is required to pay); and
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | that Recovering Finance Partys rights of subrogation in respect of any
          reimbursement shall be cancelled and the relevant Obligor will be liable to the
          reimbursing Finance Party for the amount so reimbursed.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# 29.5     Exceptions

|(a) | This Clause 29 (Sharing Among the Finance Parties) shall not apply to the
               extent that the Recovering Finance Party would not, after making any payment
               pursuant hereto, have a valid and enforceable claim against the relevant
               Obligor.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | A Recovering Finance Party is not obliged to share with any other Finance Party
               under any amount which the Recovering Finance Party has received or recovered as
               a result of taking legal or arbitration proceedings, if:
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (i) | it notified such other Finance Party of the legal or arbitration proceedings;
               and
| | --- | ------------------------------------------------------------------------------------------------

| | (ii) | such other Finance Party had an opportunity to participate in those legal or
               arbitration proceedings but did not do so as soon as reasonably practicable
               having received notice of it or did not take separate legal or arbitration
               proceedings.
| | ---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# 30.       CALCULATIONS AND ACCOUNTS

# 30.1     Day Count Convention

Interest and commitment fees shall
accrue from day to day and shall be calculated on the basis of a year of 360 days and the
actual number of days elapsed.

# 30.2     Reference Banks

Save as otherwise provided in this
Agreement, on any occasion a Reference Bank or Lender fails to supply the Administrative
Agent with an interest rate quotation required of it under the foregoing provisions of
this Agreement, the rate for which such quotation was required shall be determined from
those quotations which are supplied to the Administrative Agent.

# 30.3     Maintain Accounts

Each Lender shall maintain in
accordance with its usual practice accounts evidencing the amounts from time to time lent
by and owing to it under this Agreement.

# 30.4     Control Accounts

The Administrative Agent shall
maintain on its books a control account or accounts in which shall be recorded:

|(a) | the amount of any Advance or Unpaid Sum and each Lenders share in it;
|--- | ----------------------------------------------------------------------

|(b) | the amount of all principal, interest and other sums due or to become due from
          each of the Obligors to any of the Lenders under the Finance Documents and each
          Lenders share in it; and
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) | the amount of any sum received or recovered by the Administrative Agent under
          this Agreement and each Lenders share in it.
|--- | -------------------------------------------------------------------------------------------------------------------------------------

# 30.5     Prima Facie Evidence

In any legal action or proceeding
arising out of or in connection with this Agreement, the entries made in the accounts
maintained pursuant to Clause 30.3 (Maintain Accounts) and Clause 30.4 (Control
Accounts) shall be prima facie evidence of the existence and amounts of the
specified obligations of the Obligors.

# 30.6     Certificate of
Finance Party

A certificate of a Finance Party as
to the amount for the time being required to indemnify it against any Tax Liability
pursuant to Clause 12.2 (Tax Indemnity) or any Increased Cost pursuant to Clause
14.1 (Increased Costs) shall be prima facie evidence of the existence and
amounts of the specified obligations of the Obligors.

# 30.7     Certificate of the
Administrative Agent

A certificate of the Administrative
Agent as to the amount at any time due from either Borrower under this Agreement (or the
amount which, but for any of the obligations of either Borrower under this Agreement being
or becoming void, unenforceable or ineffective, at any time, would have been due from such
Borrower under this Agreement) shall, in the absence of manifest error, be prima facieevidence for the purposes of Clause 24 (Guarantee and Indemnity).

# 31.       ASSIGNMENTS AND
TRANSFERS

# 31.1     Successors and Assignees

This Agreement shall be binding upon
and enure to the benefit of each party to this Agreement and its or any subsequent
successors, permitted assignees and Transferees.

# 31.2     Assignment or
Transfers by Obligors

Except pursuant to and in accordance
with Clause 20 (Sale and Leaseback) and Clause 21 (Additional Obligors and New
Vessels), none of the rights, benefits and obligations of an Obligor under this
Agreement shall be capable of being assigned or transferred, and each Obligor undertakes
not to seek to assign or transfer any of its rights, benefits and obligations under this
Agreement.

# 31.3     Assignments or
Transfers by Lenders

Any Lender may, at any time and at
its own cost, assign all or any of its rights and benefits under the Finance Documents in
accordance with Clause 31.4 (Assignments) or transfer all or any of its rights,
benefits and obligations under the Finance Documents in accordance with Clause 31.5
(Transfer Certificate) provided that such assignment or transfer:

|(a) | is the subject of the prior approval of the Borrowers (which approval shall not
               be unreasonably withheld); and
|--- | -----------------------------------------------------------------------------------------------------------------------------

|(b) | the principal amount to be assigned or transferred by the relevant Lender:
|--- | --------------------------------------------------------------------------

| | (i) | is at least US$5,000,000; and
| | --- | -----------------------------

| | (ii) | consists of Tranche A Commitment and Tranche B Commitment (in each case, if any)
               which corresponds pro ratato such Lenders respective
               participation in the Tranche A Commitments and Tranche B Commitments of all the
               Lenders, as applicable immediately prior to such assignment or transfer.
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# 31.4     Assignments

If any Lender wishes to assign all or
any of its rights and benefits under the Finance Documents, unless and until the relevant
assignee has agreed with the other Finance Parties that it shall be under the same
obligations towards each of them as it would have been under if it had been an original
party to the Finance Documents as a Lender, such assignment shall not become effective and
the other Finance Parties shall not be obliged to recognise such assignee as having the
rights against each of them which it would have had if it had been such a party to this
Agreement.

# 31.5     Transfer Certificate

If any Lender wishes to transfer all
or any of its rights, benefits and/or obligations under the Finance Documents, such
transfer may be effected by novation through the delivery to the Administrative Agent of a
duly completed and duly executed Transfer Certificate in which event, on the later of the
Transfer Date specified in such Transfer Certificate and the fifth Business Day after (or
such earlier Business Day endorsed by the Administrative Agent on such Transfer
Certificate falling on or after) the date of delivery of such Transfer Certificate to the
Administrative Agent:

|(a) | to the extent that in such Transfer Certificate the Lender party to it seeks to
          transfer its rights, benefits and obligations under the Finance Documents, each
          of the Obligors and such Lender shall be released from further obligations
          towards one another under the Finance Documents and their respective rights
          against one another shall be cancelled (such rights and obligations being
          referred to in this Clause 31.5 as discharged rights and
          obligations);
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | each of the Obligors and the Transferee party to it shall assume obligations
          towards one another and/or acquire rights against one another which differ from
          the discharged rights and obligations only insofar as such Obligor and such
          Transferee have assumed and/or acquired the same in place of such Obligor and
          such Lender;
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) | the other Finance Parties and the Transferee shall acquire the same rights and
          benefits and assume the same obligations between themselves as they would have
          acquired and assumed had such Transferee been an original party to the Finance
          Documents as a Lender with the rights, benefits and obligations acquired or
          assumed by it as a result of such transfer; and
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(d) | such Transferee shall become a party to this Agreement as a Lender,
|--- | -------------------------------------------------------------------

provided that, such transfer shall be
conditional upon the performance by the Administrative Agent of all know your
customer or other checks relating to any person that it is required to carry out
where the transfer is to a new Lender.

# 31.6     Transfer Fee

On the date upon which a transfer
takes effect pursuant to Clause 31.5 (Transfer Certificate) the Transferee in
respect of such transfer shall pay to the Administrative Agent for its own account a
transfer fee of US$3,000.

# 31.7     Disclosure of
Information

Any Lender may disclose to any of its
Affiliates, to any actual or potential assignee or Transferee, to any person who may
otherwise enter into contractual relations with such Lender in relation to this Agreement
or any person to whom, and to the extent that, information is required to be disclosed by
any applicable Law, such information about the Obligors, the Group and (if applicable) the
Leaseback Group as such Lender shall consider appropriate. Provided that the Parent
Guarantor may require such Lender to obtain from its relevant Affiliate or such actual or
potential assignee or transferee or such other person, a confidentiality undertaking in
substantially the form previously delivered to the Parent Guarantor by the Lenders being
original parties to this Agreement in relation to such information concerning the Group
and (if applicable) the Leaseback Group which has been supplied to such Lender on a
confidential basis.

# 32.       COSTS AND EXPENSES

# 32.1     Transaction Costs

The Borrowers shall, from time to
time on demand of the Administrative Agent, reimburse the Administrative Agent, the
Security Trustee and each of the Lead Arrangers for all costs and expenses (including
legal fees and disbursements) reasonably incurred by them in connection with the
negotiation, preparation and execution of the Finance Documents, the completion of the
transactions therein contemplated and primary syndication of the Facilities (including
publicity expenses).

# 32.2     Preservation and
Enforcement Costs

The Borrowers shall, from time to
time on demand of the Administrative Agent, reimburse each Finance Party for all costs and
expenses (including legal fees and disbursements) reasonably incurred in or in connection
with the preservation and/or enforcement of any of the rights of such Finance Party under
the Finance Documents.

# 32.3     Stamp Taxes

The Borrowers shall pay all stamp,
registration, documentary and other taxes (including any penalties, additions, fines,
surcharges or interest relating thereto) to which any of the Finance Documents or any
judgment given in connection therewith is or at any time may be subject and shall, from
time to time on demand of the Administrative Agent, indemnify the Finance Parties against
any liabilities, costs, claims and expenses resulting from any failure to pay or any delay
in paying those taxes. The Administrative Agent shall be entitled (but not obliged) to pay
those taxes (whether or not they are its primary responsibility) and to the extent that it
does so, claim under this Clause 32.3.

# 32.4     Amendments and
Waivers

If an Obligor requests any amendment
or waiver in accordance with Clause 37 (Amendments), the relevant Obligor shall, on
demand of the Administrative Agent, reimburse the Finance Parties for all costs and
expenses (including legal fees and disbursements) reasonably incurred by any of the
Finance Parties in responding to or complying with such request.

# 32.5     Lenders
Indemnity

If any Obligor fails to perform any
of its obligations under this Clause 32 (Costs and Expenses), each Lender shall
indemnify and hold harmless each of the Administrative Agent, the Lead Arrangers and/or
the Security Trustee from and against its Proportion (as determined at all times for these
purposes in accordance with paragraph (c) of the definition of Proportion) of
any loss incurred by any of them as a result of such failure and the relevant Obligor
shall forthwith reimburse each Lender for any payment made by it pursuant to this Clause
32.5.

# 32.6     Value Added Tax

|(a) | All amounts expressed to be payable under any Finance Document by any Obligor to
          a Finance Party shall be exclusive of any VAT. If VAT is chargeable on any
          supply made by a Finance Party to any Obligor under any Finance Document
          (whether that supply is taxable pursuant to the exercise of an option or
          otherwise), that Obligor shall pay to that Finance Party (in addition to and at
          the same time as paying that consideration) an amount equal to the amount of the
          VAT as further consideration.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | No payment or other consideration to be made or furnished to any Obligor
          pursuant to or in connection with any Finance Document may be increased or added
          to by reference to (or as a result of any increase in the rate of) any VAT which
          shall be or may become chargeable in respect of any taxable supply.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) | Where a Finance Document requires any party to reimburse a Finance Party for any
          costs or expenses, that party shall also pay any amount of those costs or
          expenses incurred referable to VAT chargeable thereon.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# 32.7     Indemnity Payments

Where under any Finance Document an
Obligor has an obligation to indemnify or reimburse any Finance Party in respect of any
loss or payment, the calculation of the amount payable by way of indemnity or
reimbursement shall take account of the likely tax treatment in the hands of that Finance
Party (as determined by it) of the amount payable by way of indemnity or reimbursement and
of the loss or payment in respect of which that amount is payable.

# 33.       REMEDIES AND WAIVERS

No failure to exercise, nor any delay
in exercising, on the part of the Finance Parties or any of them, any right or remedy
under this Agreement shall operate as a waiver thereof, nor shall any single or partial
exercise of any right or remedy prevent any further or other exercise thereof or the
exercise of any other right or remedy. The rights and remedies provided in this Agreement
are cumulative and not exclusive of any rights or remedies provided by Law.

# 34.       NOTICES AND DELIVERY
OF INFORMATION

# 34.1     Writing

Each communication to be made under
this Agreement shall be made in writing and, unless otherwise stated, shall be made by fax
or letter.

# 34.2     Giving of Notice

Subject to Clause 34.3 (Use of
Websites) and to Clause 34.4 (Electronic Communication), any communication or
document to be made or delivered by one person to another pursuant to this Agreement shall
in the case of any person other than a Lender or the Leaseback Borrower (unless that other
person has by 15 days written notice to the Administrative Agent specified another
address) be made or delivered to that other person at the address identified with its
signature below or, in the case of a Lender, at the address from time to time designated
by it to the Administrative Agent for the purpose of this Agreement (or, in the case of a
Transferee at the end of the Transfer Certificate to which it is a party as Transferee)
or, in the case of the Leaseback Borrower, at the address designated in the applicable
Novation Deed or such other address as may from time to time be designated by it to the
Administrative Agent for such purpose (by notice to the Administrative Agent at least 15
days prior to which such address is to take effect for such purpose) and shall be deemed
to have been made or delivered (in the case of any communication made by fax) when
despatched and the transmission report of the sender indicates that the fax transmission
has been received by the addressee or (in the case of any communication made by letter)
when left at the address or (as the case may be) 5 days after being deposited in the post
postage prepaid in an envelope addressed to it at that address provided that any
communication or document to be made or delivered to the Administrative Agent shall be
effective only when received by the Administrative Agent and then only if the same is
expressly marked for the attention of the department or officer identified with the
Administrative Agents signature below (or such other department or officer as the
Administrative Agent shall from time to time specify for this purpose). Any communication
which would otherwise be deemed to have been received on a day which is not a Business Day
shall be deemed to have been received on the next succeeding Business Day.

# 34.3     Use of Websites

|(a) | Without prejudice to the obligation of each Obligor when providing information
               to a Lender to do so (in each case) through the Administrative Agent, any
               information required to be delivered to the Lenders, may be delivered to those
               Lenders (the Website Lenders) who accept such method of
               communication by posting the relevant information onto an electronic website
               designated by the Parent Guarantor and the Administrative Agent (the
               Designated Website) if:
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (i) | the Administrative Agent expressly agrees (after consultation with each of the
               Lenders) that it will accept communication of the information by this method;
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (ii) | both the Parent Guarantor and the Administrative Agent are aware of the address
               of, and any relevant password specifications for, the Designated Website; and
| | ---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (iii) | the information is in a format previously agreed between the Parent Guarantor
               and the Administrative Agent.
| | ----- | --------------------------------------------------------------------------------------------------------------------------

| | If any Lender (a Paper Form Lender) does not agree to the delivery of such
information electronically then the Administrative Agent shall notify the Parent Guarantor
accordingly and the Parent Guarantor shall supply the information to the Administrative
Agent (in sufficient copies for each Paper Form Lender) in paper form.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | The Administrative Agent shall supply each Website Lender with the address of,
               and any relevant password specifications for, the Designated Website following
               designation of that website by the Parent Guarantor and the Administrative
               Agent.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) | The Administrative Agent shall, as soon as reasonably practicable after becoming
               aware of the occurrence of such event, notify the other parties to this
               Agreement if:
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (i) | the Designated Website cannot be accessed due to technical failure;
| | --- | -------------------------------------------------------------------

| | (ii) | the password specifications for the Designated Website change;
| | ---- | --------------------------------------------------------------

| | (iii) | any new information which is required to be provided under this Agreement is
               posted onto the Designated Website;
| | ----- | -------------------------------------------------------------------------------------------------------------------------------

| | (iv) | any existing information which has been provided under this Agreement and posted
               onto the Designated Website is amended; or
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------------

| | (v) | it becomes aware that the Designated Website or any information posted onto the
               Designated Website is or has been infected by any electronic virus or similar
               software.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | If the Administrative Agent notifies the other parties to this Agreement under paragraph
(c)(i) or paragraph (c)(v) above, all information to be provided by any Obligor under this
Agreement after the date of that notice shall be supplied in paper form unless and until
the Administrative Agent and each Website Lender is satisfied that the circumstances
giving rise to the notification are no longer continuing.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(d) | Any Website Lender may request, through the Administrative Agent, one paper copy
          of any information required to be provided under this Agreement which is posted
          onto the Designated Website. The relevant Obligor shall comply with any such
          request within 10 Business Days.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# 34.4     Electronic
Communication

|(a) | Any communication to be made between the Administrative Agent and a Lender or
          between an Obligor and the Administrative Agent under or in connection with the
          Finance Documents may be made by electronic mail or other electronic means, if
          the Administrative Agent, the relevant Lender and/or the Parent Guarantor (as
          the case may be):
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (i) | agree that, unless and until notified to the contrary, this is to be an accepted
          form of communication;
| | --- | -----------------------------------------------------------------------------------------------------------------

| | (ii) | notify each other in writing of their electronic mail address and/or any other
          information required to enable the sending and receiving of information by that
          means; and
| | ---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (iii) | notify each other of any change to their address or any other such information
          supplied by them.
| | ----- | ----------------------------------------------------------------------------------------------------------

|(b) | Any electronic communication made between the Administrative Agent and a Lender
          or between the Administrative Agent and an Obligor will be effective only when
          actually received in readable form and in the case of any electronic
          communication made by a Lender or an Obligor to the Administrative Agent only if
          it is addressed in such a manner as the Administrative Agent shall specify for
          this purpose.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# 35.       ENGLISH LANGUAGE

Each communication and document made
or delivered by one party to another pursuant to this Agreement shall be in the English
language or (if requested by the Administrative Agent) accompanied by a translation of it
into English certified (by an officer of the person making or delivering the same) as
being a true and accurate translation of it.

# 36.       PARTIAL INVALIDITY

If, at any time, any provision of
this Agreement is or becomes illegal, invalid or unenforceable in any respect under the
Law of any jurisdiction, such illegality, invalidity or unenforceability shall not affect:

|(a) | the legality, validity or enforceability of the remaining provisions of this
          Agreement; or
|--- | ----------------------------------------------------------------------------------------------------

|(b) | the legality, validity or enforceability of such provision under the Law of any
          other jurisdiction.
|--- | -------------------------------------------------------------------------------------------------------------

37.      
          AMENDMENTS

# 37.1     Amendments

Except as provided in Clauses 37.2
(Consent), 37.3 (Technical Amendments) and 37.5 (Guarantees and
Security), the Administrative Agent, if it has the prior written consent of an
Instructing Group, and the Obligors affected thereby, may from time to time agree in
writing to amend this Agreement or to waive, prospectively or retrospectively, any of the
requirements of this Agreement and any amendments or waivers so agreed shall be binding on
all the Finance Parties and all the Obligors.

# 37.2     Consent

An amendment or waiver relating to
the following matters shall not be made without the prior written consent of each Lender
affected thereby:

|(a) | any increase in the Commitment of such Lender;
|--- | ----------------------------------------------

|(b) | a reduction in the proportion of any amount received or recovered (whether by
          way of set-off, combination of accounts or otherwise) in respect of any amount
          due from an Obligor under this Agreement to which any Lender is entitled;
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) | a decrease in the Margin, or the principal amount of, any Advance or any
          interest payment, fees or other amounts due under this Agreement to any Lender
          from an Obligor or any other party to this Agreement;
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(d) | any change in the currency of account;
|--- | --------------------------------------

|(e) | the deferral of the date for payment of any principal, interest, fee or any
          other amount due under this Agreement to any Lender from an Obligor or any other
          party to this Agreement;
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(f) | the deferral of the Maturity Date;
|--- | ----------------------------------

|(g) | the obligations of the Parent Guarantor or (subject to Clause 37.5
          (Guarantees and Security)) any other Guarantor, under Clause 24
          (Guarantee and Indemnity);
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(h) | any reduction to the percentage set forth in the definition of Instructing
          Group; or
|--- | ----------------------------------------------------------------------------------------------

|(i) | a change to any provision which contemplates the need for the consent or
          approval of all the Lenders.
|--- | ---------------------------------------------------------------------------------------------------------------

# 37.3     Technical Amendments

Notwithstanding Clause 37.1
(Amendments), the Administrative Agent may determine administrative matters and
make technical amendments arising out of manifest errors on the face of this Agreement,
where such amendments would not prejudice or otherwise be adverse to the position of any
Lender under this Agreement, without reference to the Lenders.

# 37.4     Amendments
affecting the Administrative Agent

Notwithstanding any other provision
of this Agreement, the Administrative Agent shall not be obliged to agree to any amendment
or waiver if the same would:

|(i) | amend or waive any provision of Clause 25 (Administrative Agent and
          Obligors Agent), Clause 32 (Costs and Expenses) or this
          Clause 37 (Amendments); or
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(ii) | otherwise amend or waive any of the Administrative Agents rights under
          this Agreement or subject the Administrative Agent to any additional obligations
          under this Agreement.
|---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# 37.5     Guarantees and
Security

The release of a Guarantor from any
of its obligations under Clause 24 (Guarantee and Indemnity) or a release of any
Security under the Security Documents, in each case, other than in accordance with the
terms of this Agreement, shall require prior consent of all the Lenders, provided that the
Administrative Agent or the Security Trustee (as applicable) in its discretion shall be
permitted to effect any such release (excluding, for the avoidance of doubt, a release of
the Parent Guarantor from any of its obligations under Clause 24 (Guarantee and
Indemnity)) to the extent required in connection with:

|(a) | the Permitted Sale and Leaseback;
|--- | ---------------------------------

|(b) | the sale or other disposal to a third party of a Collateral Vessel (or of a
               Subsidiary Guarantor) or a total loss of a Collateral Vessel, subject to (x)
               receipt by the Administrative Agent on the Disposal Date or the Total Loss Date
               (as the case may be) of the prepayment required to be made by the relevant
               Borrower in respect of the same or (y) a determination by the Administrative
               Agent that no such prepayment is required, in each case, pursuant to and in
               accordance with Clause 8.1 (Total Loss or Sale); or
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) | the substitution of a Collateral Vessel pursuant to and in accordance with
               Clause 19.12(b) (Disposal of Assets and Collateral Vessel
               Substitution).
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

38.      
          THIRD PARTY RIGHTS

|(a) | A person which is not a party to this Agreement (a third
               party) shall have no right to enforce any of its provisions except
               that:
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (i) | a third party shall have those rights it would have had if the Contracts (Rights
               of Third Parties) Act 1999 had not come into effect; and
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------

| | (ii) | each of Clause 12.2 (Tax Indemnity), Clause 14 (Increased Costs)
               and Clause 25.9(b) (Exclusion of Liability) shall be enforceable
               by any third party referred to in such clause as if such third party were a
               party to this Agreement.
| | ---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | The parties to this Agreement may without the consent of any third party vary or
               rescind this Agreement.
|--- | -----------------------------------------------------------------------------------------------------------------------

39.      
          COUNTERPARTS

This Agreement may be executed in any
number of counterparts and all of such counterparts taken together shall be deemed to
constitute one and the same instrument.

# 40.       GOVERNING LAW

This Agreement shall be governed by,
and construed in accordance with, English Law.

# 41.       JURISDICTION

# 41.1     Courts of England

Each of the parties to this Agreement
irrevocably agrees for the benefit of each of the Finance Parties that the courts of
England shall have exclusive jurisdiction to hear and determine any suit, action or
proceedings, and to settle any disputes, which may arise out of or in connection with this
Agreement (respectively Proceedings and Disputes)
and, for such purposes, irrevocably submits to the jurisdiction of such courts.

# 41.2     Waiver

Each of the Obligors irrevocably
waives any objection which it might now or hereafter have to Proceedings being brought or
Disputes being settled in the courts of England and agrees not to claim that any such
court is an inconvenient or inappropriate forum.

# 41.3     Service of Process

Each of the Obligors which is not
incorporated in England agrees that the process by which any Proceedings are begun may be
served on it by being delivered in connection with any Proceedings in England, to Teekay
Shipping (UK) Limited at 49 St. James Street, London SW1A 1JT or its registered office for
the time being. If the appointment of the person mentioned in this Clause 41.3 ceases to
be effective in respect of any of the Obligors, the relevant Obligor shall immediately
appoint a further person in England to accept service of process on its behalf in England
and, failing such appointment within 15 days, the Administrative Agent shall be
entitled to appoint such person by notice to the relevant Obligor. Nothing contained in
this Agreement shall affect the right to serve process in any other manner permitted by
Law.

# 41.4     Proceedings in
Other Jurisdictions

Nothing in Clause 41.1 (Courts of
England) shall (or shall be construed so as to) limit the right of the Finance Parties
or any of them to take Proceedings against any of the Obligors in any other court of
competent jurisdiction nor shall the taking of Proceedings in any one or more
jurisdictions preclude the taking of Proceedings in any other jurisdiction (whether
concurrently or not) if and to the extent permitted by applicable Law.

# 41.5     Waiver of Immunity

To the extent that any Obligor may in
any jurisdiction claim for itself or its assets or revenues immunity from suit, execution,
attachment (whether in aid of execution, before judgment or otherwise) or other legal
process and to the extent that in any such jurisdiction there may be attributed to itself,
its assets or revenues such immunity (whether or not claimed), such Obligor irrevocably
agrees not to claim, and irrevocably waives, such immunity to the full extent permitted by
the laws of such jurisdiction.

This Agreement has been entered
into on the date stated at the beginning of this Agreement.

`SCHEDULE 1

                                             LENDERS AND COMMITMENTS

Tranche A

------------------------------------------------------------------- --------------------------------------------
                              Lender                                                Commitment
------------------------------------------------------------------- --------------------------------------------
Nordea Bank Norge ASA, Grand Cayman Branch                                         US$32,000,000
------------------------------------------------------------------- --------------------------------------------
DnB NOR Bank ASA                                                                   US$32,000,000
------------------------------------------------------------------- --------------------------------------------
HSBC Bank plc                                                                      US$24,000,000
------------------------------------------------------------------- --------------------------------------------
ING Bank N.V.                                                                      US$24,000,000
------------------------------------------------------------------- --------------------------------------------
Danish Ship Finance (Danmarks Skibskreditfond)                                     US$18,240,000
------------------------------------------------------------------- --------------------------------------------
Deutsche Schiffsbank Aktiengesellschaft                                            US$18,240,000
------------------------------------------------------------------- --------------------------------------------
Dresdner Bank AG in Hamburg                                                        US$18,240,000
------------------------------------------------------------------- --------------------------------------------
Fokus Bank ASA                                                                     US$18,240,000
------------------------------------------------------------------- --------------------------------------------
Landesbank Hessen-Thuringen Girozentrale                                           US$18,240,000
------------------------------------------------------------------- --------------------------------------------
Lloyds TSB Bank plc                                                                US$18,240,000
------------------------------------------------------------------- --------------------------------------------
NIB Capital Bank N.V.                                                              US$18,240,000
------------------------------------------------------------------- --------------------------------------------
The Royal Bank of Scotland plc                                                     US$18,240,000
------------------------------------------------------------------- --------------------------------------------
Scotiabank Europe plc                                                              US$18,240,000
------------------------------------------------------------------- --------------------------------------------
Vereins- und Westbank AG                                                           US$18,240,000
------------------------------------------------------------------- --------------------------------------------
The Governor and Company of the Bank of Ireland                                    US$12,800,000
------------------------------------------------------------------- --------------------------------------------
Skandinaviska Enskilda Banken AB (publ.)                                           US$12,800,000
------------------------------------------------------------------- --------------------------------------------
Total:                                                                            US$320,000,000
=================================================================== ============================================


Tranche B

------------------------------------------------------------------- --------------------------------------------
                              Lender                                                 Commitment
------------------------------------------------------------------- --------------------------------------------
Nordea Bank Norge ASA, Grand Cayman Branch                                         US$18,000,000
------------------------------------------------------------------- --------------------------------------------

DnB NOR Bank ASA                                                                   US$18,000,000
------------------------------------------------------------------- --------------------------------------------
HSBC Bank plc                                                                      US$13,500,000
------------------------------------------------------------------- --------------------------------------------
ING Bank N.V.                                                                      US$13,500,000
------------------------------------------------------------------- --------------------------------------------
Danish Ship Finance (Danmarks Skibskreditfond)                                     US$10,260,000
------------------------------------------------------------------- --------------------------------------------
Deutsche Schiffsbank Aktiengesellschaft                                            US$10,260,000
------------------------------------------------------------------- --------------------------------------------
Dresdner Bank AG in Hamburg                                                        US$10,260,000
------------------------------------------------------------------- --------------------------------------------
Fokus Bank ASA                                                                     US$10,260,000
------------------------------------------------------------------- --------------------------------------------
Landesbank Hessen-Thuringen Girozentrale                                           US$10,260,000
------------------------------------------------------------------- --------------------------------------------
Lloyds TSB Bank plc                                                                US$10,260,000
------------------------------------------------------------------- --------------------------------------------
NIB Capital Bank N.V.                                                              US$10,260,000
------------------------------------------------------------------- --------------------------------------------
The Royal Bank of Scotland plc                                                     US$10,260,000
------------------------------------------------------------------- --------------------------------------------
Scotiabank Europe plc                                                              US$10,260,000
------------------------------------------------------------------- --------------------------------------------
Vereins- und Westbank AG                                                           US$10,260,000
------------------------------------------------------------------- --------------------------------------------
The Governor and Company of the Bank of Ireland                                     US$7,200,000
------------------------------------------------------------------- --------------------------------------------
Skandinaviska Enskilda Banken AB (publ.)                                            US$7,200,000
------------------------------------------------------------------- --------------------------------------------
Total:                                                                            US$180,000,000
=================================================================== ============================================`

# SCHEDULE 2 FORM OF TRANSFER
CERTIFICATE

To:      Nordea Bank Finland Plc,
New York Branch (as the "Administrative Agent")

# TRANSFER CERTIFICATE

This Transfer Certificate relates to
an agreement (the Credit Facility Agreement) dated 1 September 2004 and
made between Teekay Shipping Corporation (the Parent Guarantor), Teekay
Nordic Holdings Incorporated (as the Original Borrower), Nordea Bank
Finland Plc, New York Branch (as the Bookrunner), Nordea Bank Finland
Plc, New York Branch and DnB NOR Bank ASA (as the Lead Arrangers), the
Administrative Agent, Nordea Bank Finland Plc, New York Branch (as the Security
Trustee), the vessel owning entities named therein (as the Subsidiary
Guarantors) and the persons named therein as lenders (as from time to time
amended, varied, novated or supplemented).

|1. | Terms defined in the Credit Facility Agreement shall, subject to any contrary
          indication, have the same meanings in this Transfer Certificate. The terms
          Lender, Transferee, Lenders
          Participation and Portion Transferred are defined in the
          Schedule to this Transfer Certificate.
|-- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|2. | The Lender:
|-- | -----------

| | (a) | confirms that the details in the Schedule to this Transfer Certificate are an
               accurate summary of the Lenders participation in the Credit Facility
               Agreement and the Interest Periods or Terms (as the case may be) for existing
               Advances as at the date of this Transfer Certificate; and
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | requests the Transferee to accept and procure the transfer to the Transferee of
               the Portion Transferred by countersigning and delivering this Transfer
               Certificate to the Administrative Agent at its address for the service of
               notices designated to the Administrative Agent in accordance with the Credit
               Facility Agreement.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|3. | The Transferee requests the Administrative Agent to accept this Transfer
          Certificate as being delivered to the Administrative Agent pursuant to and for
          the purposes of Clause 31.5 (Transfer Certificate) of the Credit
          Facility Agreement so as to take effect in accordance with the terms of it on
          the Transfer Date or on such later date as may be determined in accordance with
          the terms of it.
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4. | The Transferee confirms that it has received a copy of the Credit Facility
          Agreement together with such other information as it has required in connection
          with this transaction and that it has not relied and will not rely on the Lender
          to check or enquire on its behalf into the legality, validity, effectiveness,
          adequacy, accuracy or completeness of any such information and further agrees
          that it has not relied and will not rely on the Lender to assess or keep under
          review on its behalf the financial condition, creditworthiness, condition,
          affairs, status or nature of any Obligor.
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|5. | The Transferee undertakes with the Lender and each of the other parties to the
          Credit Facility Agreement that it will perform in accordance with their terms
          all those obligations which by the terms of the Credit Facility Agreement will
          be assumed by it after delivery of this Transfer Certificate to the
          Administrative Agent and satisfaction of the conditions (if any) subject to
          which this Transfer Certificate is expressed to take effect.
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|6. | The Lender makes no representation or warranty and assumes no responsibility
          with respect to the legality, validity, effectiveness, adequacy or
          enforceability of the Credit Facility Agreement, any other Finance Document or
          other document relating to it and assumes no responsibility for the financial
          condition of any Obligor or for the performance and observance by any Obligor of
          any of its obligations under the Credit Facility Agreement, any Finance Document
          or any other document relating to it and any and all such conditions and
          warranties, whether express or implied by Law or otherwise, are excluded.
|-- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|7. | The Lender gives notice that nothing in this Transfer Certificate or in the
          Credit Facility Agreement (or any other Finance Document or other document
          relating to it) shall oblige the Lender (a) to accept a re-transfer from the
          Transferee of the whole or any part of its rights, benefits and/or obligations
          under the Credit Facility Agreement transferred pursuant to this Transfer
          Certificate or (b) to support any losses directly or indirectly sustained
          or incurred by the Transferee for any reason whatsoever (including the failure
          by any Obligor or any other party to the Credit Facility Agreement (or any
          document relating to it) to perform its obligations under any such document) and
          the Transferee acknowledges the absence of any such obligation as is referred to
          in (a) and (b) above.
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|8. | This Transfer Certificate and the rights, benefits and obligations of the
          parties under this Transfer Certificate shall be governed by and construed in
          accordance with English Law.
|-- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

---

|*         delete
as appropriate.
|--------------------------------

# The Schedule

1.    
          Lender: 2.     Transferee: 3.     Transfer Date:

4.    
          Lenders Participation
                 
         
Interest Period/Term                 
         
Portion Transferred

5.    
          Commitment Portion Transferred

6.    
          Outstandings            
            
                
   Term Portion Transferred

---

|*    
     Details of the Lenders Available Commitment should not be completed after the
applicable Termination Date.
|----------------------------------------------------------------------------------------------------------------------

[Lender]      
                    
                        
              
          [Transferee]

By:      
                    
                        
                      
  By:

Date:       
                    
                        
                  
  Date:

---

# Administrative Details
of Transferee and its Facility Office

Facility Office Address:

Contact Name:

Account for Payments:

Fax:

Telephone:

# [to be printed onto Transfer
Certificate by the Administrative Agent following delivery]

The Administrative Agent hereby
acknowledges the transfer effected by this Transfer Certificate and confirms that such
transfer took effect on [the Transfer Date referred to above]/[[date] (notwithstanding
paragraph 3 of this Schedule)].

# The Administrative Agent

By:

Date:

# SCHEDULE 3 PART I  CONDITIONS
PRECEDENT TO FIRST DRAWDOWN

|1. | Corporate Documents
|-- | -------------------

In relation to each Original Obligor
and each Charterer which is required to enter into a Security Document pursuant to this
Agreement:

|(a) | a copy of its up to date constitutional documents and, if applicable, a good
          standing certificate;
|--- | ------------------------------------------------------------------------------------------------------------

|(b) | a copy of resolutions of the board of directors of such Original Obligor (or to
          the extent applicable, in the case of each Subsidiary Guarantor, resolutions of
          its sole member) or (as applicable) such Charterer (and in the case of each
          Charterer being a corporation, a resolution of its shareholders) approving the
          execution, delivery and performance of each of the Transaction Documents to
          which it is party and the terms and conditions of it and authorising a named
          person or persons to sign each Transaction Document to which it is party and any
          documents to be delivered by such Original Obligor or Charterer (as the case may
          be) pursuant to it, together with copies of any powers of attorney or other
          instruments of authority required in connection therewith; and
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) | a duly completed certificate of a duly authorised officer of such Original
          Obligor or (as applicable) such Charterer in the form attached in Part III of
          Schedule 3 (Form of Officers Certificate) (subject to the necessary
          amendments to such form contemplated therein).
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|2. | Authorisations
|-- | --------------

A copy of each Necessary
Authorisation as is, in the opinion of counsel to the Administrative Agent, necessary to
render the Finance Documents to which any Original Obligor or Charterer (as applicable) is
party legal, valid, binding and enforceable, to make the Finance Documents admissible in
evidence in such Original Obligors or Charterers (as the case may be)
jurisdiction of incorporation and in England and to enable such Original Obligor or
Charterer (as the case may be) to perform its obligations thereunder.

|3. | Initial Appraisal Packages and Insurance Report
|-- | -----------------------------------------------

|(a) | Initial Appraisal Packages in respect of each of the Collateral Vessels
          (demonstrating that the aggregate Market Value of all Collateral Vessels is
          equal to at least US$715,000,000); and
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | An insurance report prepared by Bank Assure addressed to the Finance Parties (or
          accompanied by written confirmation that such report may be relied upon by them)
          relating to the insurance maintained in respect of the Collateral Vessels.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4. | Financial Statements
|-- | --------------------

Copies of the Original Consolidated
Financial Statements of the Group.

|5. | Finance Documents
|-- | -----------------

Original duly executed copies of:

(a)    
          this Agreement;

(b)    
          the Security Trust Deed; and

(c)    
          the Initial Security Documents, together with all documents required to be
          delivered pursuant thereto.

|6. | Process Agent
|-- | -------------

Written confirmation from the process
agent (a) referred to in Clause 41.3 (Service of Process) and (b)
appointed by each Charterer which is to enter into a Security Document, in each case, in
respect of its acceptance of such appointment as process agent.

|7. | Legal Opinions
|-- | --------------

An opinion of:

|(a) | White & Case, legal advisers to the Administrative Agent and the Lead
          Arrangers on matters of English law;
|--- | --------------------------------------------------------------------------------------------------------------------

|(b) | Watson, Farley & Williams, legal advisers to the Parent Guarantor on matters
          of Marshall Islands law; and
|--- | -------------------------------------------------------------------------------------------------------------------

|(c) | Kluge Advokatfirma, legal advisers to the Administrative Agent and the Lead
          Arrangers on matters of Norwegian law.
|--- | ----------------------------------------------------------------------------------------------------------------------------

in each case addressed to the
Administrative Agent (for itself and on behalf of the Finance Parties).

|8. | Collateral Vessels
|-- | ------------------

|(a) | Evidence that the mortgage entered into or to be entered into by each Subsidiary
          Guarantor has been (or will be simultaneously with the making of the Advances to
          be made on the initial Drawdown Date) duly registered and/or recorded as a valid
          first priority ship mortgage in favour of the Security Trustee in respect of the
          relevant Collateral Vessel in accordance with the laws of the relevant
          jurisdiction.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | Evidence that the relevant Collateral Vessel:
|--- | ---------------------------------------------

| | (i) | is (or will be simultaneously with the making of the Advances to be made on the
               initial Drawdown Date) definitively and permanently registered in the name of
               the applicable Subsidiary Guarantor in full compliance with Clause 19.14
               (Registration) (including the provision of certificates of ownership from
               appropriate authorities);
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (ii) | is in the absolute and unencumbered ownership of such Subsidiary Guarantor, save
               as contemplated by the Finance Documents;
| | ---- | -----------------------------------------------------------------------------------------------------------------------------------------

| | (iii) | has a classification which complies in all respects with Clause 19.7
               (Classification); and
| | ----- | ---------------------------------------------------------------------------------------------------------

| | (iv) | without prejudice to paragraph 3(b) (Initial Appraisal Packages and Insurance
               Report) above, is insured in accordance with the Finance Documents and all
               requirements therein in respect of insurances for the time being applicable have
               been complied with.
| | ---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) | Copies of the Documents of Compliance and of the Collateral Vessels Safety
          Management Certificate in respect of each Collateral Vessel (together with any
          other relevant details of the applicable safety management system relating to
          such Collateral Vessel which the Administrative Agent may reasonably require).
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

(d)    
          The results of maritime registry searches relating to each Collateral Vessel.

|9. | Relevant Third Party
Charters
|-- | -----------------------------

Copies of each of the Relevant Third
Party Charters.

|10. | Other Evidence
|--- | --------------

Any other documents or other evidence
that the Administrative Agent may reasonably require, by notice to the Parent Guarantor.

# PART II 
CONDITIONS SUBSEQUENT DOCUMENTS

# Legal Opinions

An opinion of:

|(a) | Higgs & Johnson, legal advisers to the Administrative Agent and the Lead
          Arrangers on matters of Bahamian law; and
|--- | ----------------------------------------------------------------------------------------------------------------------------

|(b) | Kluge Advokatfirma, legal advisers to the Administrative Agent and the Lead
          Arrangers on matters of Norwegian law.
|--- | ----------------------------------------------------------------------------------------------------------------------------

# PART III  FORM OF
OFFICERS CERTIFICATE

To:      Nordea Bank Finland Plc, New York Branch
 (as the "Administrative Agent")

Dear Sirs,

We refer to an agreement (the
Credit Facility Agreement) dated 1 September 2004 and made between
Teekay Shipping Corporation (the Parent Guarantor), Teekay Nordic
Holdings Incorporated (as the Original Borrower), Nordea Bank Finland
Plc, New York Branch (as the Bookrunner), Nordea Bank Finland Plc, New
York Branch and DnB NOR Bank ASA (as the Lead Arrangers), the
Administrative Agent, Nordea Bank Finland Plc, New York Branch (as the Security
Trustee), the vessel owning entities named therein (as the Subsidiary
Guarantors) and the persons named therein as lenders (as from time to time
amended, varied, novated or supplemented). Terms defined or construed in the Credit
Facility Agreement have the same meanings and constructions when used in this Certificate.

I, [name], [a][an] [Director][General
Partner][Officer] of [name of Obligor/Charterer] of [address] (the Relevant
Company):

CERTIFY that:

|(a) | attached to this Certificate marked A is a true, correct,
          complete and up-to-date copy of the Relevant Third Party Charter to which the
          Relevant Company is a party. [Include in Certificate for each Obligor
          or the relevant Charterer (as applicable) where a Relevant Third Party
          Charter is in place to which the Charterer is a party or in respect of
          Collateral Vessel owned by such Obligor (as the case may be).]
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | attached to this Certificate marked B are true, correct,
          complete and up-to-date copies of all constitutional documents and, if
          applicable, a good standing certificate relating to the Relevant Company;
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) | attached to this Certificate marked C is a true, correct,
          complete and up-to-date copy of resolutions of the Relevant Company approving
          the execution, delivery and performance of each of the [applicable] Transaction
          Documents [to which it is party] and the terms and conditions thereof and
          authorising a named person or persons to sign each such Transaction Document and
          any documents to be delivered by the Relevant Company pursuant to it, together
          with copies of any powers of attorney or other instruments of authority required
          in connection therewith;
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(d) | [attached to this Certificate marked D is a true, correct,
          complete and up-to-date copy of a resolution of the [shareholders][sole member]
          of the Relevant Company approving the execution, delivery and performance of the
          Transaction Documents to which it is party and the terms and conditions
          thereof];
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(e) | [attached to this Certificate and marked E is a true, correct
          and complete copy of all relevant Necessary Authorisations required in relation
          to the Transaction Documents pursuant to the Finance Documents and each such
          Necessary Authorisation remains in full force and effect];***
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(f) | [attached to this Certificate marked F is a true, complete
          and correct copy of the acceptance by the relevant agent in England of its
          appointment as agent of the Relevant Company for the purpose of accepting
          service of process. I confirm that such agents appointment remains in
          force as at the date of this Certificate;] [Process agent appointment
          required in relation to each Obligor and each Charterer being party to a
          Security Document.]
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(g) | [attached to this Certificate marked G are true, complete and
          correct copies of the Documents of Compliance and of the Safety Management
          Certificate relating to the Collateral Vessel owned by the Relevant Company
          (together with any other relevant details of the applicable safety management
          system relating to such Collateral Vessel which have been requested by the
          Administrative Agent prior to the delivery of this Certificate);] [Include
          where Relevant Company is (or is to become) a Subsidiary Guarantor or
          where Officers Certificate to be delivered in respect of a New Vessel.]
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(h) | [The Collateral Vessel owned by the Relevant Company:
|--- | -----------------------------------------------------

| | (i) | is (or will be concurrently with the making of the Advances to be made on the
               initial Drawdown Date) definitively and permanently registered in the name of
               the applicable Subsidiary Guarantor in full compliance with Clause 19.14
               (Registration) (as evidenced by the provision of certificates of
               ownership from appropriate authorities);
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (ii) | is in the absolute and unencumbered ownership of such Subsidiary Guarantor, save
               as contemplated by the Finance Documents;
| | ---- | -----------------------------------------------------------------------------------------------------------------------------------------

| | (iii) | has a classification which complies in all respects with Clause 19.7
               (Classification); and
| | ----- | ---------------------------------------------------------------------------------------------------------

| | (iv) | is insured in accordance with the Finance Documents and all requirements therein
               in respect of Insurances for the time being applicable have been complied with.]
               [Include where Relevant Company is (or is to become) a Subsidiary
               Guarantor or where Officers Certificate to be delivered in respect
               of a New Vessel.]
| | ---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(i) | the entry into and performance of the Finance Documents by the Relevant Company
          will not breach any borrowing or other Indebtedness limit to which the Relevant
          Company is subject; [and]
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(j) | [the execution, delivery and performance of the Finance Documents to which the
          Relevant Company is a party and the performance by the Relevant Company of its
          obligations thereunder and under any other agreement or document executed
          pursuant thereto does not breach any agreement binding on the Relevant Company.]
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|[(h) | The following persons were the duly elected and qualified directors and officers
          of the Relevant Company, holding the respective offices set forth opposite their
          names on the date of the adoption of the resolutions described in paragraph (c)
          above and on the date hereof:
|---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Name | Position
| | ---- | --------

| | [     
      
                   ][     
      
                   ][     
      
                   ] | [          
     
               ][          
     
               ][          
     
               ]]
| | ------------------------------------------------------------------------------------------------------ | -------------------------------------------------------------------------------------------------------

|[(h) | [The Relevant Company has no directors [or officers].] [The following persons
          are the duly elected and qualified officers of the Relevant Company on the date
          hereof.]
|---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Name | Position
| | ---- | --------

| | [     
      
                   ][     
      
                   ][     
      
                   ] | [          
     
               ][          
     
               ][          
     
               ]]
| | ------------------------------------------------------------------------------------------------------ | -------------------------------------------------------------------------------------------------------

|[(i) | The Relevant Company is authorised to issue 500 shares with a par value of $1.00
          per share, [all] of which have been issued to the Parent Guarantor and are so
          held on the date of the adoption of the resolution described in paragraph [(d)]
          above and on the date hereof.]
|---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

The following signatures are the true
signatures of the persons who have been authorised to sign the relevant Finance Documents
on behalf of the Relevant Company and to give notices and communications, [(including
Drawdown Requests)]*, under or in connection with the Finance Documents on
behalf of the Relevant Company.

Name           
          
                    
        Position           
          
                    
        Signature[     
      
                   ]   
                     
 [     
      
                   ]   
                     
       [     
      
                   ][     
      
                   ]   
                     
 [     
      
                   ]   
                     
       [     
      
                   ][     
      
                   ]   
                     
 [     
      
                   ]   
                     
       [     
      
                   ]

Signed:
_______________________

[Director][General Partner][Officer]

Date:               [ 
            
            ]

* Include in respect of
the Original Borrower.

I, [name], a
[Director/Secretary/General Partner/Officer] of the Relevant Company, certify that the
persons whose names and signatures are set out above are duly authorised signatories of
the Relevant Company and that the signatures of each of them above are their respective
signatures.

Signed:
_______________________

[Director/Secretary/General Partner/Officer]

Date:               [ 
            
            ]

# PART IV  INITIAL
SECURITY DOCUMENTS

|1. | Assignments in respect of the rights of each Subsidiary Guarantor to or under
                    (i) the Insurances (ii) the requisition proceeds (iii) the Earnings and (iv) in
                    the case of each Collateral Vessel being subject to a Relevant Third Party
                    Charter entered into by a Charterer incorporated in Norway, the benefit of the
                    assignments referred to in paragraph 2(ii) below.
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|2. | Assignments (including in respect of Earnings) by the relevant Charterer in
                    favour of (i) the Security Trustee or (ii) where such Charterer is incorporated
                    in Norway, the relevant Subsidiary Guarantor, in relation to each Relevant Third
                    Party Charter.
|-- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|3. | Share pledges/charges in respect of the entire issued share capital or limited
                    liability company interest (as applicable) of each Subsidiary Guarantor.
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4. | Vessel mortgage and (if required in the relevant jurisdiction) deed of covenant
                    in respect of each of the Collateral Vessels (subject to Clause 19.23
                    (Collateral Vessel Provisions)) incorporating the Collateral
                    Vessel Provisions and providing inter alia for the maintenance of
                    insurances by the bareboat charterer in respect of such Collateral Vessel and
                    the naming of the Security Trustee as sole loss payee (in respect of a total
                    loss).
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# SCHEDULE 4FORM OF DRAWDOWN
REQUEST

From:    Teekay Nordic Holdings Incorporated (the "Original
Borrower")

To:      Nordea Bank Finland Plc, New York Branch (the "Administrative
Agent")

Date: []

Dear Sirs,

We refer to an agreement (the
Credit Facility Agreement) dated 1 September 2004 and made between
Teekay Shipping Corporation (the Parent Guarantor), the Original
Borrower, Nordea Bank Finland Plc, New York Branch (as the Bookrunner),
Nordea Bank Finland Plc, New York Branch and DnB NOR Bank ASA (as the Lead
Arrangers), the Administrative Agent, Nordea Bank Finland Plc, New York Branch
(as the Security Trustee), the vessel owning entities named therein (as
the Subsidiary Guarantors) and the persons named therein as lenders (as
from time to time amended, varied, novated or supplemented).

Terms defined or construed in the
Credit Facility Agreement shall have the same meanings and constructions when used in this
request.

We give you notice that, pursuant to
the Credit Facility Agreement, we wish the Lenders to make an Advance [by way of a
Rollover Advance]* on the following terms:

(a)    
          Amount US$[]

(b)    
          Portion of such Advance from: Tranche A []; Tranche B[];

(c)    
          Interest Period/Term [1/3/6] month[s]; and

(d)    
          Proposed date of such Advance (or if that day is not a Business Day, the next
          Business Day),

We confirm that, at the date of this
Request, the representations and warranties referred to in Clause 4.1(e) (Conditions to
each Advance) of the Credit Facility Agreement are true and that no Default has
occurred and is continuing [and no Default]/[Event of
Default]* would result from the making of the Advance to
which this Drawdown Request relates.

* Applicable if Drawdown
Request relates to a Rollover Advance.

The proceeds of this drawdown should
be credited to [insert account details].

Yours faithfully

_______________________

For and on behalf of:

# TEEKAY NORDIC HOLDINGS
INCORPORATED

# SCHEDULE 5ASSOCIATED COSTS RATE

|1. | The Associated Costs Rate is an addition to the interest rate to compensate
          Lenders for the cost of compliance with (a) the requirements of the Bank of
          England and/or the Financial Services Authority (or, in either case, any other
          authority which replaces all or any of its functions) or (b) the requirements of
          the European Central Bank or (c) the requirements of the National Central Bank
          in such Lenders jurisdiction.
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|2. | On the first day of each Interest Period (or as soon as possible thereafter) the
          Administrative Agent shall calculate, as a percentage rate, a rate (the
          Additional Cost Rate) for each Lender, in accordance with the
          paragraphs set out below. The Associated Costs Rate will be calculated by the
          Administrative Agent as a weighted average of the Lenders Additional Cost
          Rates (weighted in proportion to the percentage participation of each Lender in
          the relevant Loan) and will be expressed as a percentage rate per annum.
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|3. | The Additional Cost Rate for any Lender lending from a Facility Office in a
          Participating Member State will be the percentage notified by that Lender to the
          Administrative Agent as the cost of complying with the minimum reserve
          requirements of the European Central Bank.
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4. | The Additional Costs Rate for a Lender lending from a Facility Office in the
          United Kingdom shall be calculated as follows:
|-- | -------------------------------------------------------------------------------------------------------------------------------------

| |  | E  x  0.01 
          per cent per annum     
                    
               
300
| |  | --------------------------------------------------------------------------------------

| | where: | 
| | ------ | 

| | E | is designed to compensate the Lenders for amounts payable under the Fees Rules and is
calculated by the Administrative Agent as being the average of the most recent rates of
charge supplied by the Lenders to the Administrative Agent pursuant to paragraph 5 below
and expressed in pounds per £1,000,000.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|5. | For the purposes of paragraph 4 of this Schedule, Fees Rules means
          the rules on periodic fees contained in the FSA Supervision Manual or such other
          law or regulation as may be in force from time to time in respect of the payment
          of fees for the acceptance of deposits.
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|6. | If requested by the Administrative Agent, each Lender shall, as soon as
          practicable after publication by the Financial Services Authority, supply to the
          Administrative Agent, the rate of charge payable by that Lender to the Financial
          Services Authority (calculated for this purpose by that Lender as being the
          average of the Fee Tariffs applicable to that Lender for that financial year)
          and expressed in pounds per £1,000,000 of the Tariff base of that Lender.
|-- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|7. | For the purposes of paragraph
 5 of this Schedule:
|-- | --------------------------------------------------

| | (a) | Fee Tariffs means the fee tariffs specified in the Fees Rules
               under the activity group A.1 Deposit acceptors (ignoring any minimum fee or zero
               rated fee required pursuant to the Fees Rules but taking into account any
               applicable discount rate); and
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | Tariff Base has the meaning given to it, and will be
               calculated in accordance with, the Fees Rules of the Tariff Base of that Lender.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------

|8. | Each Lender shall supply any information required by the Administrative Agent
          for the purpose of calculating its Additional Cost Rate. In particular, but
          without limitation, each Lender shall supply the following information in
          writing on or prior to the date on which it becomes a Lender:
|-- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (a) | its jurisdiction of incorporation and the jurisdiction of its Facility Office;
          and
| | --- | --------------------------------------------------------------------------------------------

| | (b) | any other information that the Administrative Agent may reasonably require for
          such purpose.
| | --- | ------------------------------------------------------------------------------------------------------

| | Each
Lender shall promptly notify the Administrative Agent in writing of any change to the
information provided by it pursuant to this paragraph. | 
| | ------------------------------------------------------------------------------------------------------------------------------------------------- | 

|9. | The rates of charge of each Lender for the purpose of E above shall be
          determined by the Administrative Agent based upon the information supplied to it
          pursuant to paragraph 6 above.
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|10. | The Administrative Agent shall have no liability to any person if such
          determination results in an Additional Cost Rate which over or under compensates
          any Lender and shall be entitled to assume that the information provided by any
          Lender pursuant to paragraphs 3 and 6 above is true and correct in all respects.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|11. | The Administrative Agent shall distribute the additional amounts received as a
          result of the Associated Costs Rate to the Lenders on the basis of the
          Additional Cost Rate for each Lender based on the information provided by each
          Lender pursuant to paragraphs 3 and 6 above.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|12. | Any determination by the Administrative Agent pursuant to this Schedule in
          relation to a formula, the Associated Costs Rate, an Additional Cost Rate or any
          amount payable to a Lender shall, in the absence of manifest error, be
          conclusive and binding on all parties to this Agreement.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|13. | The Administrative Agent may from time to time, after consultation with the
          Borrowers and the Lenders, determine and notify to all parties to this Agreement
          any amendments which are required to be made to this Schedule in order to comply
          with any change in law, regulation or any requirements from time to time imposed
          by the Financial Services Authority or the European Central Bank (or, in any
          case, any other authority which replaces all or any of its functions) and any
          such determination shall, in the absence of manifest error, be conclusive and
          binding on all parties to this Agreement.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# SCHEDULE 6PART I  PERMITTED
SALE AND LEASEBACK

|1. | A sale-and-leaseback transaction in respect of the Tranche A Vessels structured
          primarily to achieve tax efficiency for the purposes of the tax arrangements of
          the Group, whilst preserving the interests of the Lenders in relation to the
          Credit Facility.
|-- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|2. | A limited partnership (the Leaseback Borrower) to be
          established (a) in a jurisdiction and with a constitutional,
          administrative and legal structure which is satisfactory to the Administrative
          Agent and (b) with a member of the Group as a general partner.
|-- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|3. | Leaseback Borrower (and/or new special purpose companies owned or to be owned by
          Leaseback Borrower established in a suitable tax jurisdiction for chartering the
          Tranche A Vessels) to acquire the Tranche A Vessels and/or Subsidiary Guarantors
          being owners of the Tranche A Vessels (Relevant Subsidiary
          Guarantors).
|-- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4. | Acquisition to be funded by equity investment in, and debt provided to,
          Leaseback Borrower (as a percentage of acquisition price) substantially as
          follows: (i) pursuant to the transfer of the loan from the Lenders under Tranche
          A (70%) and (ii) a combination of equity from CanCo (Investor) and debt from the
          Parent Guarantor (in each case, fully subordinated to the rights of each of the
          Finance Parties under the Finance Documents) (30%).
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|5. | Leaseback Borrower and/or Relevant Subsidiary Guarantors to enter into long-term
          time charters (each a Time Charter) in respect of the Tranche
          A Vessels with a subsidiary of the Parent Guarantor, which provide for charter
          payments (net of taxes) in amounts which are at least sufficient to meet the
          payment obligations of the Leaseback Borrower falling due under the Credit
          Facility Agreement as well as other reasonable costs and expenses associated
          with the operation of the Tranche A Vessels. Time Charters to be assigned in
          favour of the Lenders.
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|6. | Leaseback Borrower, or its respective vessel owning subsidiaries, to enter into
          management agreements (each a Management Agreement) with the
          Parent Guarantor or a subsidiary thereof for the technical management of the
          Tranche A Vessels. Such Management Agreements to be assigned in favour of the
          Lenders.
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# PART II  FORM OF
ACCESSION NOTICE

THIS ACCESSION NOTICE is
entered into on
[                        ]
by [insert name of relevant Substitute Vessel Owner] (the
Relevant Subsidiary) and Teekay Shipping Corporation by way of a deed
in favour of each of the Finance Parties (as defined in the Credit Facility Agreement
referred to below).

# BACKGROUND

|A | By an agreement (the Credit Facility Agreement) dated 1 September 2004
and made between Teekay Shipping Corporation (the Parent Guarantor),
Teekay Nordic Holdings Incorporated (as the Original Borrower),
Nordea Bank Finland Plc, New York Branch (as the Bookrunner), Nordea
Bank Finland Plc, New York Branch and DnB NOR Bank ASA (as the Lead
Arrangers), Nordea Bank Finland Plc, New York Branch (as the
Administrative Agent), Nordea Bank Finland Plc, New York Branch (as the
Security Trustee), the vessel owning entities named therein (as the
Subsidiary Guarantors) and the persons named therein as lenders (as
from time to time amended, varied, novated or supplemented), the Lenders agreed to provide
the Credit Facility to the Original Borrower on the terms and subject to the conditions
thereof. Terms defined or construed in the Credit Facility Agreement shall have the same
meanings and constructions when used in this Notice.
|- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|B | Pursuant to and in accordance with the terms of the Credit Facility Agreement, the
Relevant Subsidiary is to become a party to the Credit Facility Agreement as a Guarantor.
|- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# NOW THIS DEED WITNESS AS
FOLLOWS:

|1. | The Relevant Subsidiary is a company duly organised under the laws of
          [insert relevant jurisdiction].
|-- | ---------------------------------------------------------------------------------------------------------------

|2. | The Relevant Subsidiary confirms that it has received from the Parent Guarantor
          a true and up-to-date copy of the Credit Facility Agreement and of the other
          Finance Documents.
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|3. | The Relevant Subsidiary undertakes, upon its becoming a Guarantor, to perform
          all the obligations expressed to be undertaken under the Credit Facility
          Agreement and the other Finance Documents by a Guarantor and agrees that it
          shall be bound by the Credit Facility Agreement and the other Finance Documents
          in all respects as if it had been an original party thereto as an Original
          Guarantor. [Provided that [make such exceptions (if any) as may be
          necessary to limit the obligations of Relevant Subsidiary to ensure that
          such obligations are enforceable in accordance with applicable local
          law]].
|-- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4. | The Parent Guarantor and the Relevant Subsidiary confirm that (a) no
          Default has occurred and is continuing or will result from the execution and
          delivery of this Accession Notice and (b) each of the representations
          made in Clause 16 (Representations and Warranties) is true and will
          continue to be true, in each case, in respect of such Relevant Subsidiary,
          following the accession of the Relevant Subsidiary to the Credit Facility
          Agreement as a Guarantor pursuant to this Accession Notice (or in the case of
          any such representation which expressly relates to a given date or period
          (following such accession), such representation is true in respect of that date
          or period in relation to the Relevant Subsidiary).
|-- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|5. | The Relevant Subsidiary confirms that it has appointed
          [        ] of
          [        ] to be its
          process agent for the purposes of accepting service of Proceedings in England on
          it.
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|6. | The Relevant Subsidiarys administrative details for the purposes of the
          Credit Facility Agreement are as follows:
|-- | ----------------------------------------------------------------------------------------------------------------------------

| | Address:Contact:Telephone No:
Fax No:E-mail:
| | --------------------------------------------

|7. | This Accession Notice and the rights, benefits and obligations of the parties
          under this Accession Notice shall be governed by and construed in accordance
          with English law.
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|8. | This Accession Notice has been executed as a Deed by the Parent Guarantor and
          the Relevant Subsidiary and signed by [?] on the date written at the beginning
          of this Accession Notice.
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|THE COMMON SEAL of[Name of Relevant Subsidiary]
was hereunto affixed in thepresence of: | )))))
|--------------------------------------------------------------------------------------- | -----

|.........................................................
|---------------------------------------------------------

|Director | )
|-------- | -

|.........................................................
|---------------------------------------------------------

|Director/Secretary | )
|------------------ | -

|OREXECUTED as a DEED
by[Name of Relevant Subsidiary]acting by
|-------------------------------------------------------------

|THE COMMON SEAL ofTEEKAY SHIPPING CORPORATION
was hereunto affixed in thepresence of: | )))))
|------------------------------------------------------------------------------------- | -----

|Director           
   
                    
                   
)                
                
            
    
   ...................................................  
             
                    
                   
   
                    
                      
                   
[insert name of director]
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Director/Secretary      
           
                   
)                
                
            
    
   ...................................................  
             
                    
                   
   
                    
                      
                   
[insert name of director/secretary]
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|OREXECUTED as a DEED byTEEKAY SHIPPING CORPORATIONacting byTHE ADMINISTRATIVE AGENTNORDEA BANK FINLAND PLC,
NEW YORK BRANCHBy:
|------------------------------------------------------------------------------------------------------------------------------

# PART III  ACCESSION DOCUMENTS

|1. | Corporate Documents
|-- | -------------------

In relation to an Additional Obligor
or (where indicated) (x) a Subsidiary Guarantor which is to acquire a New Vessel and (y)
any Charterer which is required to enter into a Security Document in respect of a Relevant
Third Party Charter relating to such New Vessel under this Agreement, a copy of:

|(a) | its up-to-date constitutional documents and, if applicable, a good standing
          certificate in respect thereof (including in respect of such Charterer);
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | a board resolution (or in the case of the Leaseback Borrower, other appropriate
          approval) approving the execution and delivery of the relevant Accession Notice,
          its accession to the Credit Facility Agreement as a Borrower and/or Guarantor
          (as the case may be) and the performance of its obligations under the Finance
          Documents and authorising a named person to sign such Accession Notice and any
          other documents to be delivered by it pursuant thereto, together with copies of
          any powers of attorney or other instruments of authority required in connection
          therewith;
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) | in the case of any such Subsidiary Guarantor or Charterer (as the case may be),
          a board resolution approving the execution and delivery of the Finance Documents
          to be entered into in relation to such New Vessel and authorising a named person
          to sign such Finance Documents and any other documents to be delivered by it
          pursuant thereto, together with copies of any powers of attorney or other
          instruments of authority required in connection therewith;
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(e) | if applicable, a copy of a shareholders resolution of the shareholders of
          such Additional Obligor, Subsidiary Guarantor or Charterer (as applicable)
          approving the execution, delivery and performance of the Transaction Documents
          to which it is party or which are to be entered into in relation to a New Vessel
          (as the case may be) and the terms and conditions thereof; and
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(f) | a duly completed certificate, of a duly authorised officer of such Additional
          Obligor, Subsidiary Guarantor or Charterer (as the case may be) in the form of
          Part III of Schedule 3 (Form of Officers Certificate)
          (subject to the necessary amendments to such form contemplated therein).
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|2. | Legal Opinions
|-- | --------------

Without prejudice to the scope of
Clause 20.2(d)(iv) (Conditions), opinions (if any) required by the Administrative
Agent from such legal advisers as may be acceptable to it as to relevant Law (including in
relation to any tax matters applicable to such Additional Obligor or Subsidiary Guarantor
and any Security required to be provided under this Agreement by or in respect of such
Additional Obligor, Charterer or New Vessel).

|3. | Necessary Authorisations
|-- | ------------------------

A copy of any Necessary Authorisation
as is in the opinion of counsel to the Lenders necessary to render the Transaction
Documents to which such Additional Obligor, Subsidiary Guarantor or Charterer is (or is to
be) party legal, valid, binding and enforceable to make the Transaction Documents to which
such Additional Obligor, Subsidiary Guarantor or Charterer is (or is to be) party
admissible in evidence in such Additional Obligors, Subsidiary Guarantors or
Charterers jurisdiction of incorporation and (if different) in England and to enable
such Additional Obligor, Subsidiary Guarantor or Charterer to perform its obligations
thereunder.

|4. | Security Documents
|-- | ------------------

At least 2 original copies of any
Security Documents required by the Administrative Agent pursuant to Clause 20.2(d)(iii)
(Conditions) duly executed by the Additional Obligor, Subsidiary Guarantor or
Charterer (as the case may be) together with all documents required to be delivered
pursuant to it.

|5. | Process Agent
|-- | -------------

Written confirmation from the process
agent referred to in the relevant Accession Notice, in the case of an Additional Obligor,
or appointed by the Charterer which is required to enter into a Security Document pursuant
to this Agreement in respect of a Collateral Vessel owed by such Additional Obligor, in
each case, that it accepts its appointment as process agent.

|6. | Collateral Vessels
|-- | ------------------

To the extent required by the
Administrative Agent, in respect of any Collateral Vessel owned by, or to be acquired in
connection with, the accession or novation of such Additional Obligor to this Agreement or
any New Vessel:

|(a) | evidence that the mortgage entered into or to be entered into by such Additional
          Obligor or Subsidiary Guarantor (as the case may be) has been duly registered
          and/or recorded as a valid first priority ship mortgage in favour of the
          Security Trustee in respect of the relevant Collateral Vessel in accordance with
          the laws of the relevant jurisdiction;
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | evidence that the relevant Collateral Vessel:
|--- | ---------------------------------------------

| | (i) | is definitively and permanently registered in the name of the applicable
               Additional Obligor or Subsidiary Guarantor (as the case may be), is in full
               compliance with Clause 19.14 (Registration) (including the provision of
               certificates of ownership from appropriate authorities);
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (ii) | is in the absolute and unencumbered ownership of such Additional Obligor or
               Subsidiary Guarantor, save as contemplated by the Finance Documents;
| | ---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (iii) | has a classification which complies in all respects with Clause 19.7
               (Classification); and
| | ----- | ---------------------------------------------------------------------------------------------------------

| | (iv) | is insured in accordance with the Finance Documents and all requirements therein
               in respect of Insurances for the time being applicable have been complied with;
| | ---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) | copies of the Documents of Compliance and of the Collateral Vessels Safety
          Management Certificate in respect of the relevant Collateral Vessel (together
          with any other relevant details of the applicable safety management system
          relating to such Collateral Vessel which the Administrative Agent may reasonably
          require); and
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(d) | the results of maritime registry searches relating to the relevant Collateral
          Vessel.
|--- | -----------------------------------------------------------------------------------------------

|7. | Additional Appraisal Package
|-- | ----------------------------

Each Additional Appraisal Package for
the time being required to be delivered pursuant to Clause 17.6 (Additional Appraisal
Package).

|8. | Relevant Third Party
Charters
|-- | -----------------------------

In respect of any New Vessel, copies
of any Relevant Third Party Charters relating thereto.

|9. | Know your
Customer Checks
|-- | ---------------------------

In respect of each Additional
Obligor, all documents and other evidence relating to it which are required for the
purposes of Clause 17.11 (Know your Customer Checks).

|10. | Other Evidence
|--- | --------------

Such other documents or other
evidence which the Administrative Agent may reasonably require.

# PART IV  FORM OF
NOVATION DEED

# NOVATION DEED

To:      Nordea Bank Finland Plc, New York Branch (the "Administrative
Agent")

From:    (1) [name of Leaseback Borrower] (the "Leaseback Borrower")
           (2) Teekay Nordic Holdings Incorporated
(the Original Borrower)         
  (3)  Teekay Shipping Corporation (the Parent
Guarantor)

Dear Sirs,

|1. | We refer to an agreement (the Credit Facility Agreement)
          dated 1 September 2004 and made between the Parent Guarantor, the Original
          Borrower, Nordea Bank Finland Plc, New York Branch (as the
          Bookrunner), Nordea Bank Finland Plc, New York Branch and DnB
          NOR Bank ASA (as the Lead Arrangers), the Administrative
          Agent, Nordea Bank Finland Plc, New York Branch (as the Security
          Trustee), the vessel owning entities named therein (as the
          Subsidiary Guarantors) and the persons named therein as
          lenders (as from time to time amended, varied, novated or supplemented). Terms
          defined or construed in the Credit Facility Agreement have the same meanings and
          constructions when used in this Deed. The Leaseback Borrower, the Parent
          Guarantor and the Original Borrower are referred to in this Deed as the
          Relevant Obligors.
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|2. | Each Relevant Obligor confirms that (a) the conditions set out in Clause
          20.2 (Conditions) in relation to the Permitted Sale and Leaseback have
          been satisfied or will be satisfied immediately upon the occurrence of the
          Leaseback Completion Date (b) no Default has occurred and is continuing
          or will result from the completion of the Permitted Sale and Leaseback and
          (c) each of the representations made in Clause 16 (Representations and
          Warranties) is true and will continue to be true, in each case, in respect
          of the Leaseback Borrower, following the completion of the Permitted Sale and
          Leaseback (or in the case of any such representation which expressly relates to
          a given date or period following such completion, such representation is true in
          respect of that date or period in relation to the Leaseback Borrower).
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|3. | For the purposes of the Permitted Sale and Leaseback, the Original Borrower
          wishes to procure the transfer to the Leaseback Borrower (and the Leaseback
          Borrower wishes to accept such transfer) of the Tranche A Obligations by signing
          this Deed and delivering the same to the Administrative Agent.
|-- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4. | Each Relevant Obligor requests the Administrative Agent to accept this Deed as
          being delivered to the Administrative Agent pursuant to and in accordance with
          Clause 21.2 (Novation of Leaseback Borrower) so as to take effect in
          accordance with the terms thereof on the Leaseback Completion Date.
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|5. | The Leaseback Borrower undertakes with each of the other parties to the Credit
          Facility Agreement that it will (a) perform in accordance with the terms
          thereof all those obligations which will be assumed by it under the Credit
          Facility Agreement from the Leaseback Completion Date and (b) satisfy
          each of the conditions (if any) subject to which this Deed is expressed to take
          effect.
|-- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|6. | The Parent Guarantor confirms (for itself and as Obligors Agent for the
          other Obligors) that, notwithstanding the occurrence of the Leaseback Completion
          Date, the Parent Guarantors guarantee and indemnity obligations and the
          guarantee and indemnity obligations of the other Obligors pursuant to Clause 24
          (Guarantee and Indemnity) of the Credit Facility Agreement will apply to
          all of the obligations of the Leaseback Borrower under the Finance Documents in
          all respects in accordance with the terms of the Credit Facility Agreement as if
          the Leaseback Borrower had been party to the Credit Facility Agreement as the
          Original Borrower.
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|7. | The Leaseback Borrowers administrative details for the purposes of the
          Credit Facility Agreement are as follows:
|-- | ---------------------------------------------------------------------------------------------------------------------------

| | Address:Contact:Telephone No:
Fax No:E-mail:
| | --------------------------------------------

|8. | This Deed and the rights, benefits and obligations of the parties under this
          Deed shall be governed by and construed in accordance with English Law.
|-- | --------------------------------------------------------------------------------------------------------------------------------------------------------------

|9. | This Deed has been executed and delivered as a deed by the Leaseback Borrower,
          the Original Borrower and the Parent Guarantor.
|-- | ----------------------------------------------------------------------------------------------------------------------------------------

Yours faithfully,

# THE LEASEBACK BORROWER

[Applicable Signature Block for
Leaseback Borrower when executing a deed]

# THE ORIGINAL BORROWER

TEEKAY NORDIC HOLDINGS
INCORPORATED

[Applicable Signature Block for
Original Borrower when executing a deed]

# THE PARENT GUARANTOR

TEEKAY SHIPPING
CORPORATION

Acknowledged by the
Administrative Agent:

# THE ADMINISTRATIVE AGENT

NORDEA BANK FINLAND PLC,
NEW YORK BRANCH

By:

Date:

# SCHEDULE 7

# FORM OF COMPLIANCE
CERTIFICATE

To:      Nordea Bank Finland Plc, New York Branch
 (the "Administrative Agent")From:    Teekay Shipping Corporation (the "Parent Guarantor")Date:    []

Dear Sirs,

We refer to an agreement (the
Credit Facility Agreement) dated 1 September 2004 and made between
Teekay Nordic Holdings Incorporated (as the Original Borrower) the
Parent Guarantor, Nordea Bank Finland Plc, New York Branch (as the
Bookrunner), Nordea Bank Finland Plc, New York Branch and DnB NOR Bank
ASA (as the Lead Arrangers), the Administrative Agent, Nordea Bank
Finland Plc, New York Branch (as the Security Trustee), the vessel
owning entities named therein (as the Subsidiary Guarantors) and the
persons named therein as lenders (as from time to time amended, varied, novated or
supplemented).

Terms defined or construed in the
Credit Facility Agreement have the same meanings and constructions in this Certificate.

We attach the relevant calculation
details applicable on the last day of our financial [year][quarter] ending [] (the
Relevant Period) which confirm that:

|1. | Free Liquidity [was at all times equal to or greater than/fell below]
          $100,000,000. Therefore the condition contained in Clause 18(a) (Financial
          Condition) [has/has not] been complied with in respect of the Relevant
          Period.
|-- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|2. | Available Credit [was at all times equal to or greater than/fell below] 7.5% of
          Total Debt. Therefore the condition contained in Clause 18(b) (Financial
          Condition) [has/has not] been complied with.
|-- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Signed:
.....

Duly
authorised representative of TEEKAY SHIPPING
CORPORATION

# SCHEDULE 8

# COMMITMENT REDUCTION SCHEDULE

`Commitment Reduction                      Tranche A                                     Tranche B             
         Date
(months following date     Commitment (US$)          Tranche A          Commitment (US$)          Tranche B
  of this Agreement)                                 Commitment                                   Commitment
                                                  Reductions (US$)                             Reductions (US$)

           0                   320,000,000                                   180,000,000
           6                   311,813,920              8,186,080            175,395,330              4,604,670
          12                   303,441,095              8,372,825            170,685,616              4,709,714
          18                   294,877,265              8,563,830            165,868,462              4,817,154
          24                   286,118,073              8,759,192            160,941,416              4,927,046
          30                   277,159,061              8,959,011            155,901,972              5,039,444
          36                   267,995,672              9,163,389            150,747,566              5,154,406
          42                   258,623,244              9,372,429            145,475,574              5,271,991
          48                   249,037,006              9,586,237            140,083,316              5,392,258
          54                   239,232,083              9,804,923            134,568,047              5,515,269
          60                   229,203,485             10,028,598            128,926,960              5,641,086
          66                   218,946,109             10,257,376            123,157,187              5,769,774
          72                   208,454,737             10,491,372            117,255,790              5,901,397
          78                   197,724,031             10,730,706            111,219,768              6,036,022
          84                   186,748,531             10,975,501            105,046,048              6,173,719
          90                   175,522,652             11,225,879             98,731,491              6,314,557
          96                   164,040,682             11,481,970             92,272,884              6,458,608
          102                  152,296,780             11,743,902             85,666,939              6,605,945
          108                  140,284,970             12,011,810             78,910,296              6,756,643
          114                  128,000,000             12,284,970             72,000,000              6,910,296
          120                            0            128,000,000                     (0)            72,000,000

-------------------------------------------------------------------------------------------------------------------`

# SCHEDULE 9

# COLLATERAL VESSELS

`Tranche A Vessels
Vessel  and          Year                  Yard               Type               dwt               Flag
Owner
Suezmax - Shuttle Tankers

Navion               2003                  Samsung            DH                 147,500           Bahamas
Stavanger
(Navion
Stavanger
L.L.C.)
Aframax - Shuttle Tankers

Nordic               1999                  Samsung            DH                 103,895           Bahamas
Marita
(Nordic
Marita
L.L.C.)

Nordic               1997                  Imabari            DH                 106,506           Bahamas
Svenita
(Nordic
Svenita
L.L.C.)

Nordic               1992                  Tsuneishi          DH                 108,153           NIS
Savonita
(Nordic
Savonita
L.L.C.)

Nordic               1992                  Tsuneishi          DH                 106,877           Bahamas
Torinita
(Nordic
Torinita
L.L.C.)

Nordic               1992                  Dalian             DH                 97,068            NIS
Yukon
(Nordic
Yukon
L.L.C.)

Nordic               1987                  Dalian             DH                 80,745            NIS
Trym
(Nordic
Troll &
Trym L.L.C.)
Aframax - Conventional Tankers

Falster Spirit       1995                  Hyundai            DH                 95,416            Bahamas
(Falster
Spirit L.L.C.)

Poul Spirit          1995                  Onomichi           DH                 105,351           Bahamas
(Poul Spirit
L.L.C.)

Senang Spirit        1994                  Imabari            DH                 95,649            Bahamas
(Senang
Spirit
L.L.C.)

Torben Spirit        1994                  Onomichi           DH                 98,662            Bahamas
(Torben
Spirit L.L.C.)

Samar Spirit         1992                  Onomichi           DH                 98,640            Bahamas
(Samar Spirit
L.L.C.)`

`Tranche B Vessels
Vessel  and          Year                  Yard               Type               dwt               Flag
Owner
Suezmax - Shuttle Tankers

Nordic                2004                 Samsung            DH                 151,294           Bahamas
Brasilia                                                                                           (with
(Nordic                                                                                            Brazilian
Brasilia                                                                                           bareboat
L.L.C.)                                                                                            registry
                                                                                                   option)

Nordic Spirit         2001                 Samsung            DH                 151,294           Bahamas
(Nordic                                                                                            (with
Spirit                                                                                             Brazilian
L.L.C.)                                                                                            bareboat
                                                                                                   registry
                                                                                                   option)
Aframax - Shuttle Tankers

Petroatlantic         2003                 Samsung            DH                  92,995           Bahamas
(Petroatlantic
L.L.C.)

Petronordic           2002                 Samsung            DH                  92,995           Bahamas
(Petronordic
L.L.C.)`

# SCHEDULE 10

# COLLATERAL VESSEL
PROVISIONS

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

In this Schedule 10
(Collateral Vessel Provisions):

Approved Brokers
means the insurance brokers appointed by the Subsidiary Guarantor as approved, in writing,
from time to time by the Security Trustee (such approval not to be unreasonably withheld
or delayed).

Approved Currency
means dollars or any other currency approved, in writing, from time to time by the
Security Trustee.

Collateral Vessel
means, for the purpose of this Schedule 10, the collateral vessel from time to time
legally and beneficially owned by the Subsidiary Guarantor.

Damage Notification
Event means any circumstance or event in connection with or in relation to the
Collateral Vessel which gives rise to any claim or aggregate claims against the relevant
insurers, before any adjustment for any relevant franchise or deduction, which exceeds
$5,000,000 or the equivalent in any other currency.

Environmental
Affiliate means an agent or employee of the Subsidiary Guarantor or a person in
a contractual relationship with the Subsidiary Guarantor in respect of the Collateral
Vessel (including, without limitation, the operation of or the carriage of cargo of the
Collateral Vessel).

Environmental
Approvals means any present or future permit, licence, approval, ruling,
variance, exemption or other authorisation required under the applicable Environmental
Laws.

Environmental
Claim means any and all enforcement, clean-up, removal, administrative,
governmental, regulatory or judicial actions, orders, demands or investigations instituted
or completed pursuant to any Environmental Laws or Environmental Approvals together with
any claims made by any third person relating to damage, contribution, loss or injury
resulting from any Environmental Incident.

# Environmental
Incident means:

|(a) | any release of Environmentally Sensitive Material from the Collateral Vessel; or
|--- | --------------------------------------------------------------------------------

|(b) | any incident in which Environmentally Sensitive Material is released from a
          vessel other than the Collateral Vessel and which involves a collision between
          the Collateral Vessel and such other vessel or some other incident of navigation
          or operation, in either case, in connection with which the Collateral Vessel is
          actually or potentially liable to be arrested, attached, detained or injuncted
          and/or where any guarantor, any manager (or any sub-manager of the Collateral
          Vessel) or any of its officers, employees or other persons retained or
          instructed by it (or such sub-manager) are 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 the Collateral Vessel and in connection with which the
          Collateral Vessel is actually or potentially liable to be arrested and/or where
          any guarantor, any manager (or any sub-manager of the Collateral Vessel) or any
          of its officers, employees or other persons retained or instructed by it (or
          such sub-manager) are at fault or allegedly at fault or otherwise liable to any
          legal or administrative action.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Environmental Laws
means all present and future laws, regulations, treaties and conventions of any applicable
jurisdiction which:

|(a) | have as a purpose or effect the protection of, and/or prevention of harm or
          damage to, the environment;
|--- | -----------------------------------------------------------------------------------------------------------------

|(b) | relate to the carriage of Environmentally Sensitive Material or to actual or
          threatened releases of Environmentally Sensitive Material;
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------

|(c) | provide remedies or compensation for harm or damage to the environment; or
|--- | --------------------------------------------------------------------------

|(d) | relate to Environmentally Sensitive Materials or health or safety matters.
|--- | --------------------------------------------------------------------------

Environmentally Sensitive
Material means (i) oil and oil products and (ii) any other waste, pollutant,
contaminant or other substance (including any liquid, solid, gas, ion, living organism or
noise) that may be harmful to human health or other life or the environment or a nuisance
to any person or that may make the enjoyment, ownership or other territorial control of
any affected land, property or waters more costly for such person to a material degree.

Excess Risks
means, in relation to the Collateral Vessel, the proportion of claims for general average,
salvage and salvage charges not recoverable under the hull and machinery policies in
respect of the Collateral Vessel as a consequence of the excess of the value at which the
Collateral Vessel is assessed for the purposes of such claims is over the Collateral
Vessels insured value.

Insurers means the
underwriters or insurance companies with whom any of the Obligatory Insurances is effected
and any protection and indemnity or war risks association in which the Collateral Vessel
may at any time be entered.

ISM Code means the
International Safety Management Code for the Safe Operation of Ships and for Pollution
Prevention adopted by the International Maritime Organisation.

Law means any:

|(a) | common or customary law;
|--- | ------------------------

|(b) | constitution, decree, judgment, legislation, order, ordinance, regulation,
          statute, treaty or other legislative measure in any jurisdiction; and
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) | present or future directive, regulation, practice, concession or requirement
          which has the force of law and which is issued by any governmental body, agency
          or department or any central bank or other fiscal, monetary, regulatory,
          self-regulatory or other authority or agency.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Mortgage means the
first preferred mortgage in respect of the Collateral Vessel to be granted by the
Subsidiary Guarantor in favour of the Security Trustee.

Obligatory
Insurances means, in relation to the Collateral Vessel, any policy or contract
of insurance and any entry in a protection and indemnity or war risks association which
are now or may hereafter be taken out or effected by or on behalf of the Subsidiary
Guarantor pursuant to Clauses 6.1, 6.2 and 6.4 herein or the provisions of any other
Finance Document in respect of the Collateral Vessel or its increased value, Earnings or
profits, and all the benefits thereof including all claims thereunder and returns of
premium.

Policy means, in
relation to the Obligatory Insurances, any binder, contract, slip, note, certificate of
entry, record or any other document evidencing the contract of the Obligatory Insurance or
its terms.

Required Insurance
Amount means, in respect of the Collateral Vessel, an aggregate amount equal to
not less than the greater of the Market Value of the Collateral Vessel and 110 per cent of
the Outstandings, pro rata in respect of the Collateral Vessel.

Requisition
Compensation means any monies or other compensation receivable from any
government (whether civil, military or de facto) or public or local authority in relation
to the Collateral Vessel or any part thereof in the event of its requisition for title,
confiscation, restraint, detention, forfeiture or compulsory acquisition or seizure or
requisition for hire (to the extent that a total loss occurs during such requisition for
hire) by or under the order of any such government or public or local authority.

Security Period
means the period beginning on the date of Mortgage and ending on the date upon which the
Security Trustee is satisfied that:

|(a) | none of the Finance Parties is under any obligation (whether actual or
          contingent) to make advances or provide other financial accommodation to the
          Borrower under any of the Finance Documents; and
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | all secured obligations (however defined in the Security Documents to which the
          Subsidiary Guarantor is a party) have been unconditionally and irrevocably paid
          and discharged in full.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Shipper shall
include any person (except for the Subsidiary Guarantor or any person, firm or company
acting on its behalf) who is or becomes a party to any contract of affreightment.

|2. | REPRESENTATIONS AND WARRANTIES
|-- | ------------------------------

The Subsidiary Guarantor makes the
representations and warranties set out in this Clause 2 and acknowledges that the Security
Trustee (for the benefit of the Finance Parties) has entered into the Security Documents
in reliance on the following:

|(a) | it is the sole, legal and beneficial owner of all of sixty-four sixty-fourth
          shares in the Collateral Vessel, free and clear of all Encumbrances except for
          Permitted Liens, the Mortgage and, if applicable, any deed of covenants;
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | the Collateral Vessel has been registered under a Pre-Approved Flag and is in
          full compliance with such flag regulations;
|--- | -----------------------------------------------------------------------------------------------------------------------------------

|(c) | the Collateral Vessel is not (i) under arrest, detention or any similar action
          or (ii) in the possession of any person (other than the Collateral Vessels
          master and/or crew);
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(d) | it has not, save for any Security Document to which it is a party, assigned or
          otherwise created any Encumbrance over its rights, title, interest in and
          benefit to any of the Earnings, the Requisition Compensation or the Obligatory
          Insurances (or any part thereof);
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(e) | the Collateral Vessel is insured in accordance with the provisions of Clause 6
          (Obligatory Insurances) and the Obligatory Insurances are valid and in
          full force and effect;
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(f) | the Collateral Vessel is classified to the highest classification for vessels of
          a similar type to the Collateral Vessel by a Pre-Approved Classification
          Society, free from any recommendation or requirement of such classification
          society which has not been complied with in accordance with, and in the time
          required (as extended or modified by such classification society from time to
          time) by, that classification society;
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(g) | neither its entry into, nor the performance by it of its obligations under the
          Security Documents to which it is a party shall:
|--- | -----------------------------------------------------------------------------------------------------------------------------------------

| | (i) | give rise to or oblige it to create any Encumbrance in favour of any person
               other than the Security Trustee;
| | --- | ---------------------------------------------------------------------------------------------------------------------------

| | (ii) | confer any person with the right to require either payment in respect of any
               obligation which has not matured or repayment (whether full or partial) in
               respect of any indebtedness; or
| | ---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (iii) | require it to withdraw the Collateral Vessel from service under, or terminate,
               any charter or contract of affreightment in respect of the Collateral Vessel;
| | ----- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(h) | it and (to the best of its knowledge) its Environmental Affiliates have complied
          with the provisions of all Environmental Laws and have obtained and are in full
          compliance with all requisite Environmental Approvals except where
          non-compliance or failure to obtain Environmental Approvals does not and will
          not have a Material Adverse Effect;
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(i) | neither it nor (to the best of its knowledge) its Environmental Affiliates has
          received notice of any Environmental Claim that alleges that either it or its
          Environmental Affiliate is not in compliance with all Environmental Laws or
          Environmental Approvals, where such non-compliance has or will have a Material
          Adverse Effect;
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(j) | no Environmental Claim has been made, threatened or is pending against it or to
          the best of its knowledge, its Environmental Affiliates in connection with the
          Collateral Vessel; and
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(k) | there has been no Environmental Incident except where such incident does not and
          will not have a Material Adverse Effect and no person has claimed that an
          Environmental Incident has occurred in respect of the Collateral Vessel.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|3. | INSURANCE COVENANTS
|-- | -------------------

The Subsidiary Guarantor covenants
with the Security Trustee (for the benefit of the Finance Parties) that, at all times,
during the Security Period it shall:

|(a) | execute all such documents (including, without limitation, any guarantees and/or
          indemnities required by any protection and indemnity or war risks association)
          and ensure such documents remain in full force and effect and do all such things
          as may be necessary to confer the Security Trustee with the benefit of the
          Obligatory Insurances including, without limitation, at the request of the
          Security Trustee:
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (i) | notify the insurers of the Security Trustees interest in the Collateral
               Vessel and the Obligatory Insurances by notices in the forms set out in the
               relevant Security Documents to which it is a party; and
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (ii) | ensure that the Obligatory Insurances contain loss payable and, if applicable,
               notices of cancellation clauses substantially in the forms set out in the
               relevant Security Documents to which it is a party (or in such form as may be
               approved from time to time, in writing, by the Security Trustee);
| | ---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | promptly upon effecting the Obligatory Insurances, give written notice to the
          Security Trustee stating the full particulars (including, without limitation,
          the dates and amounts of the Obligatory Insurances) thereof;
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) | punctually pay all premiums, calls, contributions or other sums payable in
          respect of the Obligatory Insurances and upon request by the Security Trustee
          promptly produce the receipts paid by it in respect of the Obligatory
          Insurances;
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(d) | within thirty days following a request by the Security Trustee (such request not
          to be made more than once in any calendar year unless additional insurances have
          been effected pursuant to Clause 4(h) (Operational Covenants)), provide
          the Security Trustee with a detailed report signed by an independent and
          reputable firm of marine insurance brokers or consultants appointed by it and
          approved by the Security Trustee detailing the Obligatory Insurances and stating
          that, in the reasonable opinion of such firm, the Obligatory Insurances are
          adequate, each such report to be prepared at the expense of the Subsidiary
          Guarantor if the Security Trustee has reasonable grounds for inquiring about the
          adequacy of such Obligatory Insurances, but otherwise at the expense of the
          Security Trustee;
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(e) | not alter materially or agree to any material alteration of any of the
          Obligatory Insurances without the prior written consent of the Security Trustee
          or consent or agree to any act or omission which might invalidate or render
          unenforceable any of the Obligatory Insurances in whole or in part or waive any
          of its rights under or in respect of any of the Obligatory Insurances;
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(f) | cause the Approved Brokers and the managers of any protection and indemnity or
          war risks association in which the Collateral Vessel may be entered:
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (i) | to hold to the order of the Security Trustee in accordance with customary market
               practice the originals of all Policies (and the benefit of such Obligatory
               Insurances) and upon request deliver certified copies of the same to the
               Security Trustee;
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (ii) | to deliver to the Security Trustee a letter or letters of undertaking in the
               form customarily provided by the relevant protection and indemnity club in a
               form acceptable to the Security Trustee together with a copy of the clubs
               certificate of entry (if the relevant protection and indemnity club has
               confirmed that it will deliver the same); and
| | ---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (iii) | in the event that the Collateral Vessel enters United States of America waters
               (or the territorial waters of any other country which requires special
               certification) to provide to the Security Trustee with such evidence as the
               Security Trustee may reasonably require that the Collateral Vessel has a valid
               and current certificate of financial responsibility for pollution by oil and/or
               any other Environmentally Sensitive Material issued by the relevant certifying
               authority in relation to the Collateral Vessel;
| | ----- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(g) | promptly notify the Security Trustee:
|--- | -------------------------------------

| | (i) | if any underwriter, insurance company or protection and indemnity or war risks
               association cancels any of the Obligatory Insurances or ceases to be
               underwriters for any purpose whatsoever in connection with that Obligatory
               Insurance;
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (ii) | of any material alteration to any of the Obligatory Insurances or any failure to
               pay any premium, call, contribution or other amounts due or any failure to renew
               any of the Obligatory Insurances (other than entry in a protection and indemnity
               association) at least seven days before the expiry of that Obligatory Insurance
               and one day before expiry of the entry in the protection and indemnity
               association; and
| | ---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (iii) | of any other act, omission or event of which would or might render invalid or
               unenforceable any of the Obligatory Insurances in whole or in part;
| | ----- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------

|(h) | not, without the prior written consent of the Security Trustee, settle,
          compromise or abandon any claim, give notice of abandonment in respect of the
          Collateral Vessel under any of the Obligatory Insurances other than a claim
          under protection and indemnity insurance or, so long as no Event of Default
          shall have occurred and be continuing, a claim of less than $5,000,000 (or the
          equivalent thereof in any other currency) arising otherwise than out of a total
          loss of the Collateral Vessel;
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(i) | do all things necessary and provide all documents, evidence and information to
          the Security Trustee to enable the Security Trustee to collect or recover any
          moneys which may at any time, become payable in respect of any of the Obligatory
          Insurances;
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(j) | in the case of the Obligatory Insurances in respect of protection and indemnity
          risks, provide for all moneys payable thereunder arising out of a claim to be
          paid in accordance with a loss payable clause in the relevant form set out in
          the relevant Security Document to which it is a party, and pay or settle, in
          full, any liability to which a claim relates or, as the case may be, reimburse
          any relevant insured which has settled that claim;
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(k) | ensure that all payments made to the Security Trustee (or such person as the
          Security Trustee may direct) by or on behalf of the insurers under any of the
          Obligatory Insurances shall be made without any set-off, counterclaim,
          deductions or condition whatsoever;
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(l) | not do (or permit to be done) or omit to do any act or thing which would or
          might enable the cancellation of any of the Obligatory Insurances or render any
          of the Obligatory Insurances invalid, void, voidable or unenforceable or render
          any sum paid under any of the Obligatory Insurances repayable in whole or in
          part;
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(m) | take all necessary action and comply with all requirements which may from time
          to time be applicable to the Obligatory Insurances, and ensure that the
          Obligatory Insurances are not made subject to any exclusions or qualifications
          without the Security Trustees prior written consent, such consent not to
          be unreasonably delayed or withheld;
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(n) | not make any changes relating to the classification, classification society,
          manager or operator of the Collateral Vessel without the prior written consent
          of the insurers and the Security Trustee other than in accordance with clause 19
          (Covenants) of the Credit Facility Agreement;
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(o) | if the Collateral Vessel is trading to the United States of America, during such
          time, make all quarterly or other voyage declarations which may be required by
          the protection and indemnity risks association in respect of the Collateral
          Vessel in order to maintain cover for such trading to the United States of
          America and the Exclusive Economic Zone (as defined in the United States Oil
          Pollution Act 1990 or any other applicable legislation) in respect of the
          Collateral Vessel; and
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(p) | not do any act nor voluntarily suffer nor permit any act to be done whereby any
          of the Obligatory Insurances shall or may be suspended or avoided (in whole or
          in part) and it shall not without obtaining the prior written consent of the
          relevant insurers and the Security Trustee employ or allow the employment of the
          Collateral Vessel otherwise than in conformity with the terms and conditions of
          the Obligatory Insurances.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4. | OPERATIONAL COVENANTS
|-- | ---------------------

The Subsidiary Guarantor covenants
with the Security Trustee (for the benefit of the Finance Parties) that, at all times,
during the Security Period it shall:

|(a) | maintain the registration of the Collateral Vessel under a Pre-Approved Flag or
          under such other flag as may be approved by the Security Trustee, in writing,
          such approval not to be unreasonably withheld or delayed, and it shall not cause
          or permit to be done any act or omission whereby the registration of the
          Collateral Vessel at any one time would or might be defeated or imperilled;
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | not knowingly cause or permit the Collateral Vessel to be operated in any manner
          or employed in any trade or business contrary to or unlawful under the laws,
          regulations, treaties and conventions (and all rules and regulations issued
          thereunder) from time to time applicable to the Collateral Vessel;
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) | maintain and preserve, at its own expense, the Collateral Vessel in a seaworthy
          condition and in good working order and repair (ordinary wear and tear excepted)
          and in such condition to ensure that the Collateral Vessel is free of
          recommendation or requirement which has not been complied with within any time
          limit specified by such person (as such requirement or recommendation may be
          extended or modified from time to time) or, if no such time limit is specified,
          as soon as reasonably practicable;
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(d) | comply with all laws, regulations and requirements (statutory or otherwise) from
          time to time applicable in the jurisdiction where the Collateral Vessel is
          registered and/or in the jurisdictions where the Collateral Vessel trades and/or
          is operated from and take all action as is necessary to ensure that it receives
          certification of compliance with those laws, regulation and requirements;
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(e) | submit the Collateral Vessel on a regular basis to all periodical or other
          surveys as the classification society in which the Collateral Vessel is entered
          may require and at the request of the Security Trustee provide the Security
          Trustee with copies of all classification certificates of the Collateral Vessel
          and its machinery and of all damage or survey reports issued in connection
          therewith;
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(f) | promptly notify the Security Trustee of any substantial change in the structure
          of the Collateral Vessel or any other modification which might involve material
          alteration to the Collateral Vessel provided that it shall not without the prior
          written consent of the Security Trustee, cause or permit to be made any change
          or modification which may result in a change to the type of the Collateral
          Vessel;
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(g) | promptly notify the Security Trustee of any change of the name or port of
          registry of the Collateral Vessel;
|--- | ----------------------------------------------------------------------------------------------------------------------

|(h) | not cause or permit the Collateral Vessel to enter into, trade to, or within the
          territorial waters of any country where the Obligatory Insurances on the
          Collateral Vessel may be jeopardised or imperilled unless it has first taken out
          or effected, at its own cost and expense, such additional insurances as the
          Security Trustee and the relevant insurers may require and as shall be necessary
          or customary for first class ship-owners trading vessels with or within the
          territorial waters of such country and if required by the Security Trustee, it
          shall assign those insurances in favour of the Security Trustee (in form and
          substance satisfactory to the Security Trustee);
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(i) | ensure that all repairs to or replacements of any damaged or worn or lost parts
          of equipment are effected in such manner (both as regards workmanship and
          quality of materials) so not as to diminish in any material way the value of the
          Collateral Vessel and not to remove any material part of, or any item of,
          equipment installed on the Collateral Vessel unless the part or item so removed
          is replaced by a suitable part or item which is in the same condition and value
          as or better condition and value than the part or item removed, is free from any
          Encumbrance other than in favour of the Security Trustee and becomes upon
          installation on the Collateral Vessel the property of the Subsidiary Guarantor
          and subject to the security constituted by the Mortgage or, if applicable, any
          deed of covenants to which it is a party provided, that the Subsidiary Guarantor
          or any person on its behalf may not install equipment owned by a third party
          unless the equipment can be removed without any risk of damage to the Collateral
          Vessel;
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(j) | not, other than those already in existence and fully disclosed to the Security
          Trustee prior to or on the date of the Credit Facility Agreement, enter into any
          agreement or arrangement whereby the Earnings may be shared or pooled with any
          other person, except with the prior written consent of the Security Trustee,
          which consent shall not be unreasonably withheld provided that the Subsidiary
          Guarantor assigns or procures that the Security Trustee obtains an assignment of
          the benefit of such Earnings in favour of the Security Trustee in form and
          substance satisfactory to the Security Trustee;
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(k) | not, without the prior written consent of the Security Trustee, sell, assign or
          transfer, or enter into any agreement to sell, assign or transfer, all or part
          of the Collateral Vessel to any other person other than in circumstances where
          the proceeds of such sale, assignment or transfer will be applied as
          contemplated by clause 8.2 (Application of Mandatory Prepayments) of the
          Credit Facility Agreement;
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(l) | (and it procures that its Environmental Affiliates shall) comply in all material
          respects with the ISM Code, all Environmental Laws, all Environmental Approvals
          and all other laws or regulations applicable to it and/or the Collateral Vessel
          including, without limitation, requirements relating to its establishment of
          financial responsibility, the management of its business and its ownership,
          operation, use and maintenance of the Collateral Vessel and its operation and/or
          its carriage of cargo except where such non-compliance does not or will not have
          an adverse effect on the value or utility of the Collateral Vessel and provide
          evidence of its compliance with such laws, regulations and/or approvals upon the
          request of the Security Trustee;
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(m) | not employ or operate or allow the employment or operation of the Collateral
          Vessel in any manner contrary to any law, regulation or approval including,
          without limitation, the ISM Code in any applicable jurisdiction or in breach of
          any United States of America, European Union or United Nations sanctions;
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(n) | not permit or allow to occur any discharge, release, leak, migration or other
          escape of any Environmentally Sensitive Material into the environment on, under
          or from any property owned, leased, occupied or controlled by it (including,
          without limitation, the Collateral Vessel), where such discharge, release, leak,
          migration or other escape would or might have a Material Adverse Effect;
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(o) | upon the request of the Security Trustee, conduct and complete all
          investigations, studies, sampling, audits and testings reasonably required by
          any known Environmental Incident that would or might have a Material Adverse
          Effect;
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(p) | promptly notify the Security Trustee by an effective and prompt mode of
          communication upon receiving notice of or becoming aware of any of the following
          events:
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (i) | any circumstance or event which is or is likely to constitute a Damage
          Notification Event;
| | --- | ----------------------------------------------------------------------------------------------------

| | (ii) | any event as a result of which the Collateral Vessel has become or might, with
               the passage of time or otherwise, become a total loss;
| | ---- | ----------------------------------------------------------------------------------------------------------------------------------------------------

| | (iii) | any requirement or recommendation made in relation to the Collateral Vessel by
               any insurer or classification society or by any competent authority which is not
               complied with within the time limit (as extended or modified by such insurer or
               classification society) and/or in the manner required by that insurer,
               classification society or competent authority;
| | ----- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (iv) | any levy of any distress on or any arrest, condemnation, confiscation,
               requisition for title or use, compulsory acquisition, seizure, detention or
               forfeiture of the Collateral Vessel (or any part thereof), any exercise or
               purported exercise of any lien or claim on or against the Collateral Vessel, any
               Earnings or any Requisition Compensation and (save in the case of any compulsory
               acquisition or requisition for title or use in respect of the Collateral Vessel)
               procure within 30 days the release of or discharge the lien or claim on or
               against the Collateral Vessel, any Earnings or any Requisition Compensation by
               providing adequate bail, security or otherwise as the circumstances may require;
| | ---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (v) | any Environmental Claim pending, or made against it or any of its Environmental
               Affiliates or in connection with the Collateral Vessel which has or will have a
               Material Adverse Effect;
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (vi) | any claim for breach of the ISM Code being made against it or any of its
               Environmental Affiliates, any manager or otherwise in connection with the
               Collateral Vessel;
| | ---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (vii) | any other matter, event or incident, actual or threatened, the effect of which
               would or might lead to the ISM Code not being complied with in all material
               respects;
| | ----- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (viii) | any known Environmental Incident which has or will have a Material Adverse
               Effect;
| | ------ | -------------------------------------------------------------------------------------------------

| | (ix) | any death, sickness, injury of any third party, or any loss or damage to any
               property of any third party caused by, or in connection with, the Collateral
               Vessel (or any part thereof) which might reasonably be expected to give rise to
               a loss which constitutes a Damage Notification Event;
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (x) | any other event which might reasonably have a Material Adverse Effect on its
               ability to punctually and fully perform its obligations hereunder or under any
               of the Finance Documents;
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(q) | promptly submit to the protection and indemnity association in accordance with
          such associations requirements such quarterly or other declarations in
          respect of cargo voyages to the United States of America and any other
          jurisdiction which requires declaration in respect of cargo voyages;
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(r) | not represent to any third parties nor hold out any of the Finance Parties as
          having any operational interest in or carrying any cargo or passengers on the
          Collateral Vessel or as being in any way connected or associated with any such
          cargo or passengers or with the operation of the Collateral Vessel;
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(s) | not pledge the credit of any of the Finance Parties for any maintenance,
          service, repairs, dry-docking or modification in respect of the Collateral
          Vessel or for any other purpose whatsoever;
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(t) | not sell or purport to sell (save as permitted under the Credit Facility
          Agreement) or execute a bill of sale of in respect of the Collateral Vessel or
          any interest therein; and
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(u) | promptly pay and discharge or cause to be paid and discharged in full:
|--- | ----------------------------------------------------------------------

| | (i) | all liabilities which give or may give rise to maritime or possessory liens on
               or claims enforceable against the Collateral Vessel, any Earnings or any of the
               Obligatory Insurances;
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (ii) | all taxes, assessments, governmental charges, fines, penalties, dues and other
               amounts due and payable in respect of the Collateral Vessel, any Earnings or any
               of the Obligatory Insurances; and
| | ---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (iii) | all other outgoings whatsoever in respect of the Collateral Vessel.
| | ----- | -------------------------------------------------------------------

|5. | MAINTENANCE OF
SECURITY COVENANTS
|-- | ---------------------------------

The Subsidiary Guarantor covenants
with the Security Trustee (for the benefit of the Finance Parties) that, at all times,
during the Security Period it shall:

|(a) | do everything necessary under all
applicable laws for the purpose of perfecting the Security Documents and maintaining the
Collateral Vessel as a good and valid security including, without
limitation, at all times:
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (i) | keep on board the Collateral Vessel together with the Collateral Vessels
               papers, a certified copy of the Mortgage, any mortgage book or other document of
               record as may be required by law to be kept on board the Collateral Vessel and
               cause to be recorded therein or thereon the particulars relating to the Mortgage
               or any other document as may be required by law and exhibit the same to the
               Security Trustee (including its representatives and nominees) and any person
               having a legal interest in or any business arrangement in connection with the
               Collateral Vessel;
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (ii) | place and keep prominently in the chart room and in the masters cabin of
               the Collateral Vessel a framed notice printed in plain type of such size that
               the paragraph of reading matter shall cover a space not less than six inches
               wide and nine inches high reading as follows:
| | ---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# NOTICE OF MORTGAGE

| |  | This vessel is subject to a first priority mortgage in favour of Nordea Bank Finland
Plc, New York Branch, as security trustee. Under the terms of the said first
priority mortgage neither the owner nor any master nor any charterer of the vessel
nor any other person has the right, power or authority to create, incur or permit
to be placed on the vessel any lien whatsoever other than for the crews
wages or salvage.;and
| |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (iii) | ensure that the interest of the Finance Parties in the Collateral Vessel is duly
               noted and/or recorded to the maximum extent permitted by applicable law with the
               registry where the Collateral Vessel is registered;
| | ----- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | promptly (and in any event within 45 days of the relevant event) replace any
          notice as referred to in Clause 5(a)(ii) above that becomes illegible, lost,
          damaged or destroyed for any reason;
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) | not, without the prior written consent of the Security Trustee, abandon (save in
          the case of extreme inclement weather) the Collateral Vessel or any part
          thereof;
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(d) | not, without the prior written consent of the Security Trustee (which consent
          shall not be unreasonably withheld or delayed), let or agree to let the
          Collateral Vessel (or any part thereof) on demise charter (excluding, for the
          purposes of this clause, any Bareboat Charters);
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(e) | not, without the prior written consent of the Security Trustee (which shall not
          be unreasonably withheld), appoint any person to act as manager of the
          Collateral Vessel other than in accordance with clause 19 (Covenants) of
          the Credit Facility Agreement;
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(f) | do all such acts and execute all such documents as may be reasonably required by
          the Security Trustee to ensure the payment to the Security Trustee of any
          Requisition Compensation and any other moneys owed to the Subsidiary Guarantor
          in respect of any requisition for use or hire of the Collateral Vessel by or on
          behalf of any government or other authority;
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(g) | not cause or permit the Collateral Vessel to be employed in any manner which
          will or may render it liable to confiscation, forfeiture, seizure, condemnation
          or destruction or any other similar action;
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(h) | take all reasonable steps necessary to prevent any threatened arrest, detention,
          seizure, condemnation or any other similar action of the Collateral Vessel and
          to prevent any material risk of forfeiture of the Collateral Vessel and/or any
          risk of criminal liability to any of the Finance Parties by the adequate
          provision of bail, security or otherwise as the circumstances may require; and
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(i) | not, without the prior written consent of the Security Trustee, save for any
          Security Document to which it is a party, assign, charge, mortgage or otherwise
          create (or concur in the creation of or permit to exist) any Encumbrance (in
          part or in whole) other than Permitted Liens over the Collateral Vessel, the
          Requisition Compensation, the Obligatory Insurances or the Earnings.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|6. | OBLIGATORY INSURANCES
|-- | ---------------------

|6.1 | The Subsidiary Guarantor shall ensure that the Collateral Vessel is, at all times, during
the Security Period, insured against:
|--- | -------------------------------------------------------------------------------------------------------------------------------

| | (a) | fire and marine risks (including hull and machinery, hull interest and freight
               interest insurance) and war risks in an amount equal to at least the Required
               Insurance Amount; and
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | protection and indemnity risks (including pollution and Excess Risks) in
               accordance with usual practice for a full entry in respect of the
               full value and full tonnage of the Collateral Vessel,
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | such insurance to be expressed in an Approved Currency and arranged through the Approved
Brokers and to be on such terms and with such insurers or insurance companies (or, in the
case of war risks and protection and indemnity risks, such war risk or protection and
indemnity associations) as may be approved, in writing, by the Security Trustee from time
to time (such approval not to be unreasonably withheld or delayed).
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|6.2 | The Subsidiary Guarantor shall effect and maintain oil pollution insurance cover in
respect of the Collateral Vessel in an amount equal to US$1,000,000,000 in respect of each
incident (such insurance shall include cover taken out or effected under Clause 6.1
insofar as insurance risks are concerned) or where (in the reasonable opinion of an
Instructing Group, which shall take into consideration the price at which such cover can
be effected) such insurance cannot be obtained in the international insurance market
following due diligence (other than where the absence of available cover is caused by a
history of accidents and/or spillage in respect of the Collateral Vessel and/or the
Subsidiary Guarantor) such insurance shall be in an amount equal to at least
US$500,000,000 in respect of each incident (or such other amount as may be agreed by the
Instructing Group).
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|6.3 | If the Subsidiary Guarantor fails to take out or maintain any Obligatory Insurance
required to be effected by it pursuant to the provisions of Clauses 6.1 and 6.2, the
Security Trustee, for and on behalf of the Subsidiary Guarantor, may (but shall not be
obliged to) effect any such insurance (without prejudice to any other right of the
Security Trustee arising hereunder or under any other Finance Document) and the Subsidiary
Guarantor will on demand promptly pay to the Security Trustee the amount of any payment
made in connection therewith, together with interest thereon at the rate and in the manner
specified in clause 23.2 (Default Rate) of the Credit Facility Agreement.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|6.4 | Without prejudice to the Subsidiary Guarantors continuing obligations under this
Clause 6, it shall, at least seven days before the expiry of any Obligatory Insurances
(other than entry in a protection and indemnity association) and at least one day before
the expiry of any entry in the protection and indemnity association (or within such
shorter period as the Security Trustee may from time to time agree) taken out or effected
by it or on its behalf in respect of the Collateral Vessel confirm, in writing, to the
Security Trustee that the same has been renewed in accordance with the terms hereunder and
promptly provide certified copies of the terms and conditions of the renewal.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|6.5 | Without prejudice to Clause 3(h) (Insurance Covenants), provided that no Event of
Default shall have occurred and be continuing, the Subsidiary Guarantor may settle or
compromise a claim arising out of any event or circumstance which does not constitute a
total loss or a Damage Notification Event of or in respect of the Collateral Vessel.
Further, where in accordance with Clause 5(f) (Maintenance of Security
Covenants) any Requisition Compensation has been paid to the Security Trustee (to the
extent that it is entitled to retain the same) the Security Trustee shall, provided that
the Subsidiary Guarantor is in compliance with its obligations under the Transaction
Documents to which it is a party, release such proceeds to the Subsidiary Guarantor.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|7. | BAREBOAT CHARTER INSURANCE
|-- | --------------------------

The Subsidiary Guarantor agrees that
if the Collateral Vessel is subject to a Third Party Bareboat Charter or other demise
charter, it shall procure that:

|(a) | the relevant bareboat charterer of the Collateral Vessel complies, in a manner
          satisfactory to the Security Trustee, in all respects with the provisions of
          Clause 6 (Obligatory Insurances) in respect of the Obligatory Insurances
          relating to the Collateral Vessel; and
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | the relevant bareboat charterer assigns to the Security Trustee all of its
          rights, title, interest in and benefit to the insurances taken out or effected
          by it or on its behalf relating to the Collateral Vessel upon terms satisfactory
          to the Security Trustee.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|8. | CHANGES TO OBLIGATORY INSURANCES
|-- | --------------------------------

If following a review of the
Obligatory Insurances, the Security Trustee determines that such Obligatory Insurances are
inadequate to protect the Finance Parties interest in the Collateral Vessel by
reason of changes to the insurance market (other than changes permitted hereunder) having
regard to comparable insurances effected by owners and operators of vessels of a similar
type and age to the Collateral Vessel, the Security Trustee may by notice to the
Subsidiary Guarantor require the Subsidiary Guarantor, at its own cost and expense, to
promptly take such actions as in the reasonable opinion of the Security Trustee are
necessary to remedy such inadequacies.

|9. | APPLICATION OF INSURANCE MONEYS
|-- | -------------------------------

9.1 Prior to an Event of
Default

Prior to the occurrence of an Event
of Default which is continuing, the proceeds of any claim under any of the Obligatory
Insurances (other than in respect of a total loss or a Damage Notification Event) shall be
applied, in full, by the Subsidiary Guarantor in or towards making good the loss or damage
in respect of which such proceeds have been paid (and in the event that the proceeds of
any claim are received by the Security Trustee, such proceeds (provided that the
Subsidiary Guarantor is not in breach of any of its obligations under any Finance Document
to which it is a party) shall be paid by the Security Trustee to the Subsidiary Guarantor
in reimbursement of moneys expended by it for such purpose upon providing evidence
satisfactory to the Security Trustee that such sums have been or are to be applied for
such purpose).

9.2 After the occurrence of an Event of Default

Upon the occurrence of an Event of
Default which is continuing, the Subsidiary Guarantor shall ensure that the proceeds of
any claim in respect of protection and indemnity insurance shall be paid directly by the
relevant insurers to the person to which the liability covered by such insurance was
incurred.

9.3 General

Without prejudice to the terms of
clause 8.2 (Application of Mandatory Prepayments) of the Credit Facility Agreement,
all monies held, received or recovered by the Security Trustee, as a consequence of a
total loss or a Damage Notification Event in respect of the Collateral Vessel or an Event
of Default shall be applied by the Security Trustee in accordance with the provisions of
clause [ ] of the Security Trust Deed.

|10. | SUBSIDIARY GUARANTORS CONTINUING OBLIGATIONS
|--- | ---------------------------------------------

Notwithstanding anything contained in
this Schedule 10:

|(a) | the Subsidiary Guarantor shall remain liable under each charter and each
          contract of affreightment in respect of the Collateral Vessel to perform all the
          obligations assumed by it thereunder; and
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | the Security Trustee shall not be obliged:
|--- | ------------------------------------------

| | (i) | to assume or be under any obligation in any manner to perform or fulfil any
               obligations (including making any payments) of the Subsidiary Guarantor or any
               of its Environmental Affiliates under or pursuant to any charter or contract of
               affreightment in respect of the Collateral Vessel;
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (ii) | to enforce against any charterer or Shipper any term or condition of any charter
               or contract of affreightment in respect of the Collateral Vessel; or
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (iii) | to make any enquiries as to the nature or sufficiency of any payment received by
               the Security Trustee.
| | ----- | ---------------------------------------------------------------------------------------------------------------------

|11. | PROVISION OF INFORMATION
|--- | ------------------------

The Subsidiary Guarantor agrees that
it shall, at all times, during the Security Period:

|(a) | provide the Security Trustee with any information regarding the Collateral
          Vessel (including, without limitation, the employment, the position and the
          engagements of the Collateral Vessel) as reasonably requested by the Security
          Trustee together with details of the Earnings, payments and amounts due to the
          master and crew, all towages and salvages and copies of all contracts for the
          employment of or any other matters concerning the Collateral Vessel;
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | provide to the Security Trustee on request copies of the classification
          certificates of the Collateral Vessel and all machinery, damage and/or survey
          reports on the Collateral Vessel and of any charter and any contract of
          affreightment entered into by or on behalf of it in respect of the Collateral
          Vessel;
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) | (i) ensure that the Security Trustee, its surveyors and/or other persons
          appointed by it will be permitted upon giving reasonable notice (and so as not
          to interrupt the trade of the Collateral Vessel) to board and have full and
          complete access to inspect the Collateral Vessel, its cargo and its logs; and
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(d) | keep full, proper and up-to-date books of account in respect of the Collateral
          Vessel, or procure that the managers of the Collateral Vessel do so, and permit
          the Security Trustee upon giving reasonable notice to inspect, copy and make
          extracts from the same, or procure that the said managers do so, and provide
          evidence satisfactory to the Security Trustee that the wages and allotments and
          the insurance, tax (including PAYE) and pension contributions of the master and
          crew are being promptly and regularly paid in such amounts as required to fully
          discharge any due and payable liabilities.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|12. | SECURITY TRUSTEE POWERS
|--- | -----------------------

Upon the occurrence of any Event of
Default which is continuing, the Security Trustee shall be entitled (and the Subsidiary
Guarantor agrees that the Security Trustee shall be so entitled), without notice or
further demand, to immediately exercise all the powers and remedies conferred on it under
such documents and in accordance with applicable law as mortgagee and chargee of the
Collateral Vessel including, without limitation, the right:

|(a) | to take possession of the Collateral Vessel and exercise all the rights and
          powers of a mortgagee;
|--- | ------------------------------------------------------------------------------------------------------------

|(b) | to recover and collect all freights, passage moneys, remuneration for salvage or
          towage services, hire moneys and all other income or earnings then due or to
          become due to the Subsidiary Guarantor in respect of the Collateral Vessel and
          to give a good receipt therefor on behalf of the Subsidiary Guarantor;
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) | to require that all Policies relating to any of the Obligatory Insurances
          (including details of and correspondence concerning outstanding claims) be
          delivered to such adjusters and/or brokers and/or other insurers as the Security
          Trustee may nominate;
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(d) | to collect, recover, compromise and give a good discharge for all claims then
          outstanding or thereafter arising under any of the Obligatory Insurances and to
          take over or institute or pursue all proceedings in connection therewith (as the
          Security Trustee in its absolute discretion thinks fit) and to permit the
          Approved Brokers through whom collection or recovery is effected to charge and
          retain the usual brokerage therefor;
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(e) | to recover, defend, discharge, compound, release or compromise claims including,
          without limitation, those which (i) have given or may give rise to any charge or
          lien on the Collateral Vessel, (ii) have priority over the Mortgage or (iii) are
          or may be enforceable by proceedings against the Collateral Vessel;
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(f) | to sell the Collateral Vessel or any share therein (whether as mortgagee,
          attorney-in-fact for the Subsidiary Guarantor or otherwise), with or without the
          benefit of any charter or other engagement, by public auction or private
          contract, at any place in the world, with or without advertisement (but in the
          case of a sale by private contract, the Security Trustee shall give prior
          notification thereof to the Subsidiary Guarantor), for cash, on credit or
          otherwise and upon such terms as the Security Trustee in its absolute discretion
          may determine with the power to postpone any sale and to execute legal bills or
          bills of sale in respect of a sale and without being answerable for any loss
          incurred by any sale or resulting from any postponement thereof unless such loss
          has occurred due to the gross negligence or wilful misconduct of the Security
          Trustee, and at any public sale to purchase the Collateral Vessel and to set off
          the purchase price of the Collateral Vessel against the secured obligations
          (howsoever defined in the Mortgage or, as the case may be, any deed of
          covenants);
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(g) | to manage and, for such purpose, to appoint and/or remove any manager of the
          Collateral Vessel and to insure the Collateral Vessel on such terms and with
          such insurers and against such risks as the Security Trustee may in its absolute
          discretion think fit, and to maintain and repair the Collateral Vessel and to
          hold, lay up, lease, charter, operate or otherwise use the Collateral Vessel in
          such manner and for such period as the Security Trustee in its absolute
          discretion deems expedient and to do all acts and things incidental or conducive
          thereto in all respects as if the Security Trustee were the owner of the
          Collateral Vessel without being responsible for any loss thereby incurred unless
          such loss has occurred due to the gross negligence or wilful misconduct of the
          Security Trustee;
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(h) | order the Collateral Vessel to proceed forthwith at the Subsidiary
          Guarantors risk and expense to a port or place nominated by the Security
          Trustee and require the Subsidiary Guarantor to give the necessary instructions
          to the master and/or crew of the Collateral Vessel to comply with any such
          instructions of the Security Trustee and if the Subsidiary Guarantor fails to
          give such instructions for any reason whatsoever the Security Trustee shall have
          the right and power to give such instructions directly to the master and/or
          crew;
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(i) | recover from the Subsidiary Guarantor on first demand, all losses, expenses,
          payments and disbursements (including, without limitation, legal fees) incurred
          reasonablyby the Security Trustee in respect of or, incidental to the
          exercise by it of any of its powers under the Mortgage or, as the case may be,
          the Deed of Covenants together with interest thereon at the rate as set out in
          clause 23.2 (Default Rate) of the Credit Facility Agreement from the date
          when such losses, expenses, payments or disbursements (including, without
          limitation, legal fees) were incurred by the relevant Finance Party until the
          date of reimbursement whether before or after judgment.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Notwithstanding the terms of this
Clause 12, the Security Trustee shall be under no duty to enquire as to the sufficiency of
any payment received by it in relation to the Collateral Vessel or to take any action to
recover amounts due or to enforce its rights and powers in relation thereto.

|13. | ENVIRONMENTAL INDEMNIFICATION
|--- | -----------------------------

The Subsidiary Guarantor shall
defend, indemnify and hold harmless each of the Finance Parties and any of its employees,
agents, officers and directors from and against any claims, demands, penalties,
disbursements, fines, liabilities, settlements, damages, costs or expenses of whatever
kind or nature, known or unknown (including, without limitation, legal fees), contingent
or otherwise, arising out of or in any way related to Environmentally Sensitive Material
in, transported, stored or carried upon or forming a part of or discharge from the
Collateral Vessel or in relation to any Environmental Laws, Environmental Approvals or
Environmental Claims.

# SIGNATORIES

# THE PARENT GUARANTOR

TEEKAY SHIPPING
CORPORATION

|By: | GREG ROMANIUK
|--- | -------------

|Address: | c/o Teekay Shipping (Canada) Ltd.Suite 2000Bentall 5550 Burrard StreetVancouverBritish
Columbia V6C 2K2Canada
|-------- | -------------------------------------------------------------------------------------------------------------

|Attention: | Director, Finance
|---------- | -----------------

|Fax: | +1 604 681 3011
|---- | ---------------

|Telephone: | +1 604 683 3529
|---------- | ---------------

|Email: | greg.romaniuk@teekay.com
|------ | ------------------------

# THE ORIGINAL BORROWER

TEEKAY NORDIC HOLDINGS
INCORPORATED

|By: | GREG ROMANIUK
|--- | -------------

|Address: | c/o Teekay Shipping (Canada) Ltd.Suite 2000Bentall 5550 Burrard StreetVancouverBritish
Columbia V6C 2K2Canada
|-------- | -------------------------------------------------------------------------------------------------------------

|Attention: | Director, Finance
|---------- | -----------------

|Fax: | +1 604 681 3011
|---- | ---------------

|Telephone: | +1 604 683 3529
|---------- | ---------------

|Email: | greg.romaniuk@teekay.com
|------ | ------------------------

# THE BOOKRUNNER

NORDEA BANK FINLAND PLC,
NEW YORK BRANCH

|By: | HANS KJELSRUD
|--- | -------------

|Address: | 437 Madison AvenueNew York, NY 10022USA
|-------- | ---------------------------------------

|Fax: | +1 212 421 4420
|---- | ---------------

|Attention: | Hans Chr. Kjelsrud
|---------- | ------------------

|Telephone: | +1 212 318 9634
|---------- | ---------------

|Email: | hans.kjelsrud@nordea.com
|------ | ------------------------

# THE LEAD ARRANGERS

NORDEA BANK FINLAND PLC,
NEW YORK BRANCH

|By: | HANS KJELSRUD
|--- | -------------

|Address: | 437 Madison AvenueNew York, NY 10022USA
|-------- | ---------------------------------------

|Fax: | +1 212 421 4420
|---- | ---------------

|Attention: | Hans Chr. Kjelsrud
|---------- | ------------------

|Telephone: | +1 212 318 9634
|---------- | ---------------

|Email: | hans.kjelsrud@nordea.com
|------ | ------------------------

DNB NOR BANK ASA

|By: | ASTRID PRESTNES NORDTORP
|--- | ------------------------

|Address: | Stranden 210250 OsloNorway
|-------- | --------------------------

|Fax: | + 47 22 48 20 20
|---- | ----------------

|Attention: | Astrid Prestnes Nordtorp
|---------- | ------------------------

|Telephone: | + 47 22 94 91 29
|---------- | ----------------

|Email: | astrid.prestnes.nordtorp@dnbnor.no
|------ | ----------------------------------

# THE ADMINISTRATIVE AGENT

NORDEA BANK FINLAND PLC,
NEW YORK BRANCH

|By: | HANS KJELSRUD
|--- | -------------

|Address: | 437 Madison AvenueNew York, NY 10022USA
|-------- | ---------------------------------------

|Fax: | +1 212 421 4420
|---- | ---------------

|Attention: | Hans Chr. Kjelsrud
|---------- | ------------------

|Telephone: | +1 212 318 9634
|---------- | ---------------

|Email: | hans.kjelsrud@nordea.com
|------ | ------------------------

# THE SECURITY TRUSTEE

NORDEA BANK FINLAND PLC,
NEW YORK BRANCH

|By: | HANS KJELSRUD
|--- | -------------

|Address: | 437 Madison AvenueNew York, NY 10022USA
|-------- | ---------------------------------------

|Fax: | +1 212 421 4420
|---- | ---------------

|Attention: | Hans Chr. Kjelsrud
|---------- | ------------------

|Telephone: | +1 212 318 9634
|---------- | ---------------

|Email: | hans.kjelsrud@nordea.com
|------ | ------------------------

# THE SUBSIDIARY GUARANTORS

NAVION STAVANGER L.L.C.

|By: | GREG ROMANIUK
|--- | -------------

|Address: | c/o Teekay Shipping (Canada) Ltd.Suite 2000Bentall 5550 Burrard StreetVancouverBritish
Columbia V6C 2K2Canada
|-------- | -------------------------------------------------------------------------------------------------------------

|Attention: | Director, Finance
|---------- | -----------------

|Fax: | +1 604 681 3011
|---- | ---------------

|Telephone: | +1 604 683 3529
|---------- | ---------------

|Email: | greg.romaniuk@teekay.com
|------ | ------------------------

NORDIC MARITA L.L.C.

|By: | GREG ROMANIUK
|--- | -------------

|Address: | c/o Teekay Shipping (Canada) Ltd.Suite 2000Bentall 5550 Burrard StreetVancouverBritish
Columbia V6C 2K2Canada
|-------- | -------------------------------------------------------------------------------------------------------------

|Attention: | Director, Finance
|---------- | -----------------

|Fax: | +1 604 681 3011
|---- | ---------------

|Telephone: | +1 604 683 3529
|---------- | ---------------

|Email: | greg.romaniuk@teekay.com
|------ | ------------------------

NORDIC SVENITA L.L.C.

|By: | GREG ROMANIUK
|--- | -------------

|Address: | c/o Teekay Shipping (Canada) Ltd.Suite 2000Bentall 5550 Burrard StreetVancouverBritish
Columbia V6C 2K2Canada
|-------- | -------------------------------------------------------------------------------------------------------------

|Attention: | Director, Finance
|---------- | -----------------

|Fax: | +1 604 681 3011
|---- | ---------------

|Telephone: | +1 604 683 3529
|---------- | ---------------

|Email: | greg.romaniuk@teekay.com
|------ | ------------------------

NORDIC SAVONITA L.L.C.

|By: | GREG ROMANIUK
|--- | -------------

|Address: | c/o Teekay Shipping (Canada) Ltd.Suite 2000Bentall 5550 Burrard StreetVancouverBritish
Columbia V6C 2K2Canada
|-------- | -------------------------------------------------------------------------------------------------------------

|Attention: | Director, Finance
|---------- | -----------------

|Fax: | +1 604 681 3011
|---- | ---------------

|Telephone: | +1 604 683 3529
|---------- | ---------------

|Email: | greg.romaniuk@teekay.com
|------ | ------------------------

NORDIC TORINITA L.L.C.

|By: | GREG ROMANIUK
|--- | -------------

|Address: | c/o Teekay Shipping (Canada) Ltd.Suite 2000Bentall 5550 Burrard StreetVancouverBritish
Columbia V6C 2K2Canada
|-------- | -------------------------------------------------------------------------------------------------------------

|Attention: | Director, Finance
|---------- | -----------------

|Fax: | +1 604 681 3011
|---- | ---------------

|Telephone: | +1 604 683 3529
|---------- | ---------------

|Email: | greg.romaniuk@teekay.com
|------ | ------------------------

NORDIC YUKON L.L.C.

|By: | GREG ROMANIUK
|--- | -------------

|Address: | c/o Teekay Shipping (Canada) Ltd.Suite 2000Bentall 5550 Burrard StreetVancouverBritish
Columbia V6C 2K2Canada
|-------- | -------------------------------------------------------------------------------------------------------------

|Attention: | Director, Finance
|---------- | -----------------

|Fax: | +1 604 681 3011
|---- | ---------------

|Telephone: | +1 604 683 3529
|---------- | ---------------

|Email: | greg.romaniuk@teekay.com
|------ | ------------------------

NORDIC TROLL & TRYM
L.L.C.

|By: | GREG ROMANIUK
|--- | -------------

|Address: | c/o Teekay Shipping (Canada) Ltd.Suite 2000Bentall 5550 Burrard StreetVancouverBritish
Columbia V6C 2K2Canada
|-------- | -------------------------------------------------------------------------------------------------------------

|Attention: | Director, Finance
|---------- | -----------------

|Fax: | +1 604 681 3011
|---- | ---------------

|Telephone: | +1 604 683 3529
|---------- | ---------------

|Email: | greg.romaniuk@teekay.com
|------ | ------------------------

FALSTER SPIRIT L.L.C.

|By: | GREG ROMANIUK
|--- | -------------

|Address: | c/o Teekay Shipping (Canada) Ltd.Suite 2000Bentall 5550 Burrard StreetVancouverBritish
Columbia V6C 2K2Canada
|-------- | -------------------------------------------------------------------------------------------------------------

|Attention: | Director, Finance
|---------- | -----------------

|Fax: | +1 604 681 3011
|---- | ---------------

|Telephone: | +1 604 683 3529
|---------- | ---------------

|Email: | greg.romaniuk@teekay.com
|------ | ------------------------

POUL SPIRIT L.L.C.

|By: | GREG ROMANIUK
|--- | -------------

|Address: | c/o Teekay Shipping (Canada) Ltd.Suite 2000Bentall 5550 Burrard StreetVancouverBritish
Columbia V6C 2K2Canada
|-------- | -------------------------------------------------------------------------------------------------------------

|Attention: | Director, Finance
|---------- | -----------------

|Fax: | +1 604 681 3011
|---- | ---------------

|Telephone: | +1 604 683 3529
|---------- | ---------------

|Email: | greg.romaniuk@teekay.com
|------ | ------------------------

SENANG SPIRIT L.L.C.

|By: | GREG ROMANIUK
|--- | -------------

|Address: | c/o Teekay Shipping (Canada) Ltd.Suite 2000Bentall 5550 Burrard StreetVancouverBritish
Columbia V6C 2K2Canada
|-------- | -------------------------------------------------------------------------------------------------------------

|Attention: | Director, Finance
|---------- | -----------------

|Fax: | +1 604 681 3011
|---- | ---------------

|Telephone: | +1 604 683 3529
|---------- | ---------------

|Email: | greg.romaniuk@teekay.com
|------ | ------------------------

TORBEN SPIRIT L.L.C.

|By: | GREG ROMANIUK
|--- | -------------

|Address: | c/o Teekay Shipping (Canada) Ltd.Suite 2000Bentall 5550 Burrard StreetVancouverBritish
Columbia V6C 2K2Canada
|-------- | -------------------------------------------------------------------------------------------------------------

|Attention: | Director, Finance
|---------- | -----------------

|Fax: | +1 604 681 3011
|---- | ---------------

|Telephone: | +1 604 683 3529
|---------- | ---------------

|Email: | greg.romaniuk@teekay.com
|------ | ------------------------

SAMAR SPIRIT L.L.C.

|By: | GREG ROMANIUK
|--- | -------------

|Address: | c/o Teekay Shipping (Canada) Ltd.Suite 2000Bentall 5550 Burrard StreetVancouverBritish
Columbia V6C 2K2Canada
|-------- | -------------------------------------------------------------------------------------------------------------

|Attention: | Director, Finance
|---------- | -----------------

|Fax: | +1 604 681 3011
|---- | ---------------

|Telephone: | +1 604 683 3529
|---------- | ---------------

|Email: | greg.romaniuk@teekay.com
|------ | ------------------------

NORDIC BRASILIA L.L.C.

|By: | GREG ROMANIUK
|--- | -------------

|Address: | c/o Teekay Shipping (Canada) Ltd.Suite 2000Bentall 5550 Burrard StreetVancouverBritish
Columbia V6C 2K2Canada
|-------- | -------------------------------------------------------------------------------------------------------------

|Attention: | Director, Finance
|---------- | -----------------

|Fax: | +1 604 681 3011
|---- | ---------------

|Telephone: | +1 604 683 3529
|---------- | ---------------

|Email: | greg.romaniuk@teekay.com
|------ | ------------------------

NORDIC SPIRIT L.L.C.

|By: | GREG ROMANIUK
|--- | -------------

|Address: | c/o Teekay Shipping (Canada) Ltd.Suite 2000Bentall 5550 Burrard StreetVancouverBritish
Columbia V6C 2K2Canada
|-------- | -------------------------------------------------------------------------------------------------------------

|Attention: | Director, Finance
|---------- | -----------------

|Fax: | +1 604 681 3011
|---- | ---------------

|Telephone: | +1 604 683 3529
|---------- | ---------------

|Email: | greg.romaniuk@teekay.com
|------ | ------------------------

PETROATLANTIC L.L.C.

|By: | GREG ROMANIUK
|--- | -------------

|Address: | c/o Teekay Shipping (Canada) Ltd.Suite 2000Bentall 5550 Burrard StreetVancouverBritish
Columbia V6C 2K2Canada
|-------- | -------------------------------------------------------------------------------------------------------------

|Attention: | Director, Finance
|---------- | -----------------

|Fax: | +1 604 681 3011
|---- | ---------------

|Telephone: | +1 604 683 3529
|---------- | ---------------

|Email: | greg.romaniuk@teekay.com
|------ | ------------------------

PETRONORDIC L.L.C.

|By: | GREG ROMANIUK
|--- | -------------

|Address: | c/o Teekay Shipping (Canada) Ltd.Suite 2000Bentall 5550 Burrard StreetVancouverBritish
Columbia V6C 2K2Canada
|-------- | -------------------------------------------------------------------------------------------------------------

|Attention: | Director, Finance
|---------- | -----------------

|Fax: | +1 604 681 3011
|---- | ---------------

|Telephone: | +1 604 683 3529
|---------- | ---------------

|Email: | greg.romaniuk@teekay.com
|------ | ------------------------

# THE LENDERS

NORDEA BANK NORGE ASA,
GRAND CAYMAN BRANCH

By:       HANS CHR. KJELSRUD

DNB NOR BANK ASA

By:       ASTRID PRESTNES
NORDTORP

HSBC BANK PLC

By:       ADAM BYRNE

ING BANK N.V.

By:       PAUL BROSNAHAN

By:       HUGH BAKER

DANISH SHIP FINANCE
(DANMARKS SKIBSKREDITFOND)

By:       ERIK I. LASSEN

By:       CHRISTIAN BEHNKE

DEUTSCHE SCHIFFSBANK
AKTIENGESELLSCHAFT

By:       MALTE SCHULTE-TRUX

By:       LARS BOHLIG

DRESDNER BANK AG IN
HAMBURG

By:       DOROTHEE MILEWSKI

By:       D. QIAN

FOKUS BANK ASA

By:       BENT R. EIDEM

LANDESBANK
HESSEN-THÜRINGEN GIROZENTRALE

By:       NORBERT SCHUSTER

By:       NEIL HENNESSY

LLOYDS TSB BANK PLC

By:       DAVID SUMMER

By:       ANTHONY STEVENS

NIB CAPITAL BANK N.V.

By:       J. L. NIEUWENHUISEN

By:       C. MULDER

THE ROYAL BANK OF
SCOTLAND PLC

By:       ROBERT JAMES MANNERS

SCOTIABANK EUROPE PLC

By:       DAVID SPARKES

VEREINS- UND WESTBANK AG

By:       NICOLINI HELFER

THE GOVERNOR AND COMPANY
OF THE BANK OF IRELAND

By:       JOHN HARTIGAN

SKANDINAVISKA ENSKILDA BANKEN AB
(PUBL.)

By:       BEARTE B E

By:       PER FR LICH