Document:

PURCHASE AGREEMENT

This Agreement is made as of the 30th day of November, 2005.

Between:

      DR. SOHAIL KHATTAK, medical doctor, and
      with an office at 220 Dundas Street West, Whitby, Ontario L1N 8M7
      (herein called the "Vendor")
      Of the First Part

And:

      HOLMES HERBS, INC.
      A State of Nevada company with offices at
      8655 Ease Via De Ventura, Suite G-200, Scottsdale, Arizona 85258
      (herein called the "Purchaser")
      Of the Second Part

WHEREAS:

The Vendor has developed a business plan and has certain industry contacts
relating to the clinical drug research and development business;

The Vendor has agreed to sell and transfer 100% of the business plan to the
Purchaser, on the terms and conditions hereinafter contained.

NOW THEREFORE THIS AGREEMENT WITNESSES that in consideration of ten dollars
($10) paid to Vendor, plus the representations, warranties, covenants and
agreements herein (the receipt and sufficiency of which is hereby acknowledged
by each of the parties), the parties agree as follows:

1.    DEFINITIONS

1.1   "Business Plan" means the Vendors business plans and industry contacts
      relating to clinical research services and drug development.

1.2   "Qualia Nevada" means a State of Nevada company incorporated by the
      Purchaser for the purpose of carrying out the Business Plan.  Prior to
      Closing, the share structure of Qualia Nevada will consist of twenty
      million (20,000,000) common shares issued to the Purchaser at a value of
      $.001 per share.

2.    PURCHASE AND SALE

2.1   The Vendor hereby agrees to sell, transfer and assign 100% of the
      Business Plan to the purchaser at Closing, for the Purchase Price,
      subject to the terms and conditions of this Agreement.

3.    PURCHASE PRICE

3.1   The Purchase price shall be fifteen million (15,000,000) common shares
      (the "Shares") of Qualia Nevada, seven million five hundred thousand
      (7,500,000) issued to the Vendor at Closing and seven million five
      hundred thousand (7,500,000) authorized at Closing and issued at the
      Vendor's discretion after Closing, all at a deemed value of $.001 per
      share, subject to the terms and conditions of this Agreement.

4.    MANAGEMENT OF QUALIA NEVADA

4.1   The parties agree that the management of Qualia Nevada at Closing will
      be:

      -   Dr. Sohail Khattak, Presdent, President and Director
      -   John Metcalfe, CFO and Director

      The President may appoint one additional person to become a director and
      officer of Qualia Nevada at some time after Closing.

5.    FINANCING

5.1   Purchaser covenants and agrees to provide one million five hundred
      thousand ($1,500,000) in financing for Qualia Nevada during the six
      month period following Closing.

5.2   Purchaser will use best efforts to provide any additional financing for
      Qualia Nevada required to implement the Business Plan.  The parties
      acknowledge that the timing and funding of these items may be subject to
      market forces and successful initial operations.

6.    CLOSING

6.1   The closing of this Purchase Agreement shall take place upon execution
      of this Agreement.

7.    REPRESENTATIONS AND WARRANTIES

7.1   The Vendor represents and warrants to the Purchaser that:

      a)  The Vendor owns 100% of the Business Plan, free and clear of
          encumbrances;

      b)  There are no actions, suits, proceedings, judgments or executions
          pending or threatened against or affecting the Vendor.

      c)  the execution and delivery of this Agreement and any of the
          agreements referred to or contemplated herein, will not conflict
          with or result in the breach of any agreement to which the Vendor is
          a party.

7.2   The Purchaser represents and warrants to Vendor that:

      a)  Qualia Nevada is duly incorporated, organized and validly subsisting
          under the laws of the State of Nevada;

      b)  The Purchaser has obtained board of director approval and all
          corporate authorizations for the execution and performance of this
          Agreement and any agreements referred to or contemplated herein;

      c)  The execution and delivery of this Agreement and any of the
          agreements referred to or contemplated herein, will not conflict
          with or result in the breach of any agreement to which it is a
          party, nor violate or result in the breach of the laws of any
          applicable jurisdiction.

8.    GENERAL COVENANTS

8.1   Independent Advice - All parties acknowledge that they have been advised
      to obtain and have obtained independent legal advice with respect to
      this Agreement and that they have not relied in any way upon advice or
      representations relating to this Agreement made by any other party.

8.2   Governing Law - This Agreement shall be governed by and construed in
      accordance with the laws of the State of Nevada.

8.3   Currency - All dollar amounts in this Agreement and Schedules are in
      United States currency.

8.4   Severability - Should any provision in this Agreement be held by a court
      of competent jurisdiction to be illegal, invalid or unenforceable, such
      provision may be modified by such court in compliance with the law and,
      as modified, enforced.  All other terms and conditions of this Agreement
      shall remain in full force and effect and shall be construed as if such
      illegal, invalid or unenforceable provision had not been contained in
      this Agreement.

8.5   Compliance with Laws and Regulations - The Vendor and Purchaser will
      comply with all applicable government laws, regulations and ordinances.

8.6   Arbitration - If any difference or dispute shall arise between any of
      the parties in respect to any matter in this Agreement, such dispute or
      matter shall be arbitrated or submitted to arbitration under and
      pursuant to the Commercial Arbitration Act of Nevada, and shall hear and
      dispose of the dispute in such manner as the arbitrator, in his
      discretion, shall determine.  The decision of the Arbitrator shall be
      rendered in writing with all reasonable speed and shall be final and
      binding upon such parties involved.

8.7   Amendment/Waiver - No amendment or modification of this Agreement shall
      be in effect unless set forth in writing executed by the parties'
      authorized representatives.  No waiver of any provision of this
      Agreement shall be effective unless it is set forth in writing which
      refers to the provisions so waived and the instrument in which provision
      is contained and is executed by an authorized representative of the
      party waiving its rights.

8.8   Counterpart Execution - This Agreement may be executed in as many
      counterparts as may be necessary and each of which so signed will be
      deemed to be an original and such counterparts together will constitute
      one and the same instrument and notwithstanding the date of execution
      will be deemed to bear the date set forth above.

IN WITNESS WHEREOF the parties hereto have caused this Agreement to be duly
executed and delivered as of the day and year first above written.

SIGNED, SEALED AND DELIVERED by            )
HOLMES HERBS, INC.                         )
in the presence of:                        )
                                           )
                                           )    c/s
                                           )
/s/ John Metcalfe                          )
----------------------------------------
Authorized Representative

SIGNED AND DELIVERED by                    )
DR. SOHAIL KHATTAK                         )
in the presence of:                        )
                                           )
                                           )
                                           )
/s/ Christine Dermeil                            /s/SohailKhattak
----------------------------------------        ---------------------------
Witness                                         Dr. Sohail KhattakExhibit 10.28

    
      
        

      

    DATED
          1st June     
2006

    

    

    GULFMARK
      OFFSHORE, INC.

    (as
      borrower)

    

    -
      and -

    

    DnB
      NOR Bank ASA

    and
      others

    (as
      banks)

    

    -
      and -

    

    

    DnB
      NOR Bank ASA

    (as
      mandated lead arranger)

    

    -
      and -

    

    DnB
      NOR Bank ASA

    (as
      Issuer)

    

    -
      and -

    

    DnB
      NOR Bank ASA

    (as
      agent and security trustee)

    

    _________________________________________

    

    US$85,000,000
      SECURED

    REDUCING
      REVOLVING LOAN

    AND
      LETTER OF CREDIT

    FACILITY
      AGREEMENT

    _________________________________________

    

    

    

    

    

    

    STEPHENSON
      HARWOOD

    One,
      St. Paul's Churchyard

    London
      EC4M 8SH

    Tel:
      020 7329 4422

    Fax:
      020 7329 7100

    Ref:
      1313

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    CONTENTS

     

    
      	
              1

            	
              Definitions
                and Interpretation

            	
              1

            
	
              2

            	
              The Facility and
                LCs and their Purpose

            	
              25

            
	
              3

            	
              Conditions Precedent and Subsequent

            	
              35

            
	
              4

            	
              Representations
                and Warranties

            	
              41

            
	
              5

            	
              Repayment,
                Prepayment and Currency Option

            	
              46

            
	
              6

            	
              Interest

            	
              49

            
	
              7

            	
              Fees

            	
              51

            
	
              8

            	
              Security
                Documents

            	
              52

            
	
              9

            	
              Agency
                and Trust

            	
              52

            
	
              10

            	
              Covenants

            	
              62

            
	
              11

            	
              Earnings

            	
              70

            
	
              12

            	
              Events Of Default

            	
              70

            
	
              13

            	
              Set-Off
                and Lien

            	
              75

            
	
              14

            	
              Assignment and
                Sub-Participation

            	
              76

            
	
              15

            	
              Payments,
                Mandatory Prepayment, Reserve Requirements and Illegality

            	
              78

            
	
              16

            	
              Communications

            	
              83

            
	
              17

            	
              General
                Indemnities

            	
              84

            
	
              18

            	
              Miscellaneous

            	
              86

            
	
              19

            	
              Law and Jurisdiction

            	
              90

            
	 	
              SCHEDULE
                1

            	
              92

            
	 	
              The
                Banks, the Commitments and the Proportionate Shares

            	
              92

            

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	
              SCHEDULE
                2

            	
              93

            
	
              Part
                I

            	
              93

            
	
              The
                Mortgaged Vessels

            	
              93

            
	
              Part
                II

            	
              94

            
	
              The
                Newbuildings

            	
              94

            
	
              Part
                III

            	
              95

            
	
              The
                Negative Pledged Vessels

            	
              95

            
	
              SCHEDULE
                3

            	
              96

            
	
              Form
                of Transfer Certificate

            	
              96

            
	
              SCHEDULE
                4

            	
              99

            
	
              Form
                of Drawdown Notice

            	
              99

            
	
              SCHEDULE
                5

            	
              101

            
	
              Calculation
                of the Mandatory Cost

            	
              101

            
	
              SCHEDULE
                6

            	
              104

            
	
              Form
                of Compliance Certificate

            	
              104

            
	
              SCHEDULE
                7

            	
              106

            
	
              Form
                of Issue Request

            	
              106

            

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      LOAN
        FACILITY AGREEMENT

    

     

    Dated: 1st
      June 2006

     

    BETWEEN:-

     

    
      	
              (1)

            	
              GULFMARK
                OFFSHORE, INC.,
                a
                company incorporated according to the law of the State of Delaware
                whose
                principal place of business is at 10111 Richmond Avenue, Suite 340,
                Houston, Texas, 77042, the United States of America (the "Borrower");
                and 

            

    

     

    
      	
              (2)

            	
              the
                banks and financial institutions listed in Schedule 1, each acting
                through
                its office at the address indicated against its name in Schedule
                1
                (together "the
                Banks"
                and each a "Bank");
                and 

            

    

     

    
      	
              (3)

            	
              DnB
                NOR Bank ASA acting
                as mandated lead arranger (in that capacity the "MLA");
                and

            

    

     

    
      	
              (4)

            	
              DnB
                NOR Bank ASA
                acting as issuer of the Letters of Credit (in that capacity the
                "Issuer");
                and

            

    

     

    
      	
              (5)

            	
              DnB
                NOR Bank ASA
                acting as agent and security trustee through its office at Lars Hillesgate
                30, PO Box 7100, NO-5020 Bergen, Norway (in that capacity the
                "Agent").

            

    

     

    WHEREAS:-

     

    Each
      of
      the Banks has agreed to
      advance
      to the Borrower its respective Commitment of an aggregate principal amount
      not
      exceeding eighty five million Dollars ($85,000,000) to assist the Borrower
      in
      refinancing the Existing Facility, financing various instalments under the
      Building Contracts, and thereafter for the general corporate purposes of the
      Group, and the Issuer has agreed to issue the Letters of Credit at the request
      of the Borrower for and on behalf of any of the Owners, for certain obligations
      of the Owners on the terms and conditions herein set forth. 

     

    IT IS AGREED
      as
      follows:-

     

    
      	1  	
              Definitions
                and Interpretation

            

    

     

    1.1 Definitions

     

    In
      this
      Agreement:-

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	 	
              1.1.1

            	
              "Accounts"
                means the consolidated financial accounts of the Borrower to be provided
                to the Agent pursuant hereto.

            

    

     

    
      	 	
              1.1.2

            	
              "Address
                for Service"
                means c/o Gulf Offshore N.S. Limited of 10 Charlotte Road, Barnes,
                London,
                SW13 9QJ, England or, in relation to any of the Security Parties,
                such
                other address in England and Wales as that Security Party may from
                time to
                time designate by no fewer than ten (10) Business Days' written notice
                to
                the Agent.

            

    

     

    
      	 	
              1.1.3

            	
              "Administration"
                has the meaning given to it in paragraph 1.1.3 of the ISM
                Code.

            

    

     

    
      	 	
              1.1.4

            	
              "Advance
                Date",
                in relation to any Drawing, means the date on which that Drawing
                is
                advanced by the Banks to the Borrower pursuant to
                Clause 2.

            

    

     

    
      	 	
              1.1.5

            	
              "Agent's
                Spot Rate of Exchange"
                means the Agent's spot rate of exchange for the purchase of the relevant
                currency with the Base Currency in the London foreign exchange market
                at
                or about 11.00 a.m. on a particular
                day.

            

    

     

    
      	 	
              1.1.6

            	
              "Approved
                Brokers"
                means H. Clarkson & Co. Ltd, Simpson Spence & Young Shipbrokers
                Ltd, Fearnley AS, R. S. Platou AS and Seabrokers
                Group.

            

    

     

    
      	 	
              1.1.7

            	
              "Assignments"
                means the first priority assignments of the Insurances and Requisition
                Compensation of the Vessels to be made between the relevant Owner
                and the
                Agent referred to in Clause 8.1.2 (each an "Assignment").

            

    

     

    1.1.8          
       "Base
      Currency"
      means
      Dollars.

     

    
      	 	
              1.1.9

            	
              "Base
                Currency Amount"
                means the amount specified in the Drawdown Request or, if the amount
                requested is not denominated in the Base Currency, that amount converted
                into the Base Currency at the Agent's Spot Rate of Exchange on the
                date
                which is three (3) Business Days before the Advance Date adjusted
                to
                reflect any repayment (other than a repayment arising from a change
                of
                currency) or prepayment.

            

    

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    
      	 	
              1.1.10

            	
              "Borrower's
                Obligations"
                means all of the liabilities and obligations of the Borrower to the
                Finance Parties under or pursuant to the Borrower's Security Documents,
                whether actual or contingent, present or future, and whether incurred
                alone or jointly or jointly and severally with any other and in whatever
                currency, including (without limitation) interest, commission and
                all
                other charges and expenses.

            

    

     

    
      	 	
              1.1.11

            	
              "Borrower's
                Security Documents"
                means those of the Security Documents to which the Borrower is or
                is to be
                a party.

            

    

     

    
      	 	
              1.1.12

            	
              "Break
                Costs"
                means all documented costs, losses, premiums or penalties incurred
                by any
                of the Finance Parties in the circumstances contemplated by Clause
                17.4 or
                as a result of any of them receiving any prepayment of all or any
                part of
                the Facility (whether pursuant to Clauses 5.2 and 5.3 or otherwise)
                or any
                other payment under or in relation to the Security Documents on a
                day
                other than the due date for payment of the sum in question, and includes
                (without limitation) any losses or costs incurred in liquidating
                or
                re-employing deposits from third parties acquired to effect or maintain
                the Facility, and any liabilities, expenses or losses incurred by
                any of
                the Finance Parties in terminating or reversing, or otherwise in
                connection with, any interest rate and/or currency swap, transaction
                or
                arrangement entered into by any of the Finance Parties with any member
                of
                the Group to hedge any exposure arising under this Agreement, or
                in
                terminating or reversing, or otherwise in connection with, any open
                position arising under this
                Agreement.

            

    

     

       
      1.1.13  
 "Builder"
      means
      the builder of the relevant Newbuilding detailed in Schedule 2 Part
      II.

     

    
      	 	
              1.1.14

            	
              "Building
                Contracts"
                means the building contracts pursuant to which the Newbuildings are
                being
                constructed as are more particularly described in Schedule 2 Part
                II (each
                a "Building
                Contract").

            

    

     

    
      	 	
              1.1.15

            	
              "Business
                Day"
                means a day (other than a Saturday or Sunday) on which banks are
                open for
                general business in London, New York City and Bergen and which is
                a TARGET
                Day.

            

    

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    
      	 	
              1.1.16

            	
              "Commitment"
                means, in relation to each Bank, the amount of the Facility which
                that
                Bank agrees to advance to the Borrower as its several liability as
                indicated against the name of that Bank in Schedule 1, as reduced
                from time to time in accordance with Clause 2.4, or, where the context
                permits, the amount of the Facility advanced by that Bank and remaining
                outstanding.

            

    

     

    
      	 	
              1.1.17

            	
              "Commitment
                Commission"
                means the commitment commission to be paid by the Borrower to the
                Agent on
                behalf of the Banks pursuant to Clause
                7.

            

    

     

    
      	 	
              1.1.18

            	
              "Commitment
                Termination Date"
                means the date falling one month prior to the Termination
                Date.

            

    

     

    
      	 	
              1.1.19

            	
              "Communication"
                means any notice, approval, demand, request or other communication
                from
                one party to this Agreement to any other party to this
                Agreement.

            

    

     

    
      	 	
              1.1.20

            	
              "Communications
                Address"
                means 10111 Richmond Avenue, Suite 340, Houston, Texas, 77042, the
                United
                States of America (fax no: +1 713 963 0541 marked for the attention
                of Mr
                E. Guthrie, email:
                ed.guthrie@gulfmark.com).

            

    

     

    
      	 	
              1.1.21

            	
              "Company"
                means at any given time the company responsible for a Vessel's compliance
                with (i) the ISM Code under paragraph 1.1.2 of the ISM Code and/or
                (ii)
                the ISPS Code (as the case may be).

            

    

     

    
      	 	
              1.1.22

            	
              "Compliance
                Certificate"
                means a certificate to be delivered by the Borrower to the Agent
                substantially in the form of Schedule
                6.

            

    

     

    
      	 	
              1.1.23

            	
              "Construction
                Period"
                means the period beginning on the first Drawing and continuing until
                the
                earlier of (i) the date that the last of the Newbuildings has been
                delivered to the Borrower, (ii) 31 December 2008, or (iii) such later
                date
                as may be agreed in writing by the
                Banks.

            

    

     

    
      	 	
              1.1.24

            	
              "Currency
                of Account"
                means, in relation to any payment to be made to a Finance Party pursuant
                to any of the Security Documents, the

            

    

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    currency
      in which that payment is required to be made by the terms of the relevant
      Security Document. 

     

    
      	 	
              1.1.25

            	
              "Declaration
                of Negative Pledge"
                means the declaration relating to the Negative Pledged Vessels to
                be made
                between the English Owner and the Agent referred to in Clause
                8.1.3.

            

    

     

    
      	 	
              1.1.26

            	
              "Default
                Rate"
                means the rate which is the aggregate of LIBOR, any Mandatory Cost,
                the
                Margin and two per centum (2%) per
                annum.

            

    

     

    
      	 	
              1.1.27

            	
              "Delivery
                Date"
                means the date of actual delivery of the relevant Newbuilding to
                the
                Borrower by the relevant Builder under a Building
                Contract.

            

    

     

    
      	 	
              1.1.28

            	
              "Delivery
                Drawing"
                means a Drawing made pursuant to a Building Contract upon the delivery
                of
                a Newbuilding to the Borrower.

            

    

     

    
      	 	
              1.1.29

            	
              "Determination
                Date"
                means

            

    

     

    (a) the
      last
      day of each calendar quarter during the Facility Period;

     

    (b) after
      the
      occurrence of an Event of Default which is continuing, any date designated
      by
      the Agent upon at least three (3) Business Days' prior written notice to the
      Borrower; and

     

    (c) each
      Advance Date.

     

    
      	 	
              1.1.30

            	
              "DOC"
                means in relation to the ISM Company, a valid Document of Compliance
                issued for the ISM Company by the Administration under paragraph
                13.2 of
                the ISM Code.

            

    

     

    
      	 	
              1.1.31

            	
              "Dollars"
                "US$"
                and "$"
                each means available and freely transferable and convertible funds
                in
                lawful currency of the United States of
                America.

            

    

     

    
      	 	
              1.1.32

            	
              "Drawdown
                Notice"
                means a notice complying with Clause 2.3 in the form set out in Schedule
                4.

            

    

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    
      	 	
              1.1.33

            	
              "Drawing"
                means a part (or, if requested and available, all) of the Facility
                advanced by the Banks to the Borrower in accordance with Clause
                2.

            

    

     

    
      	 	
              1.1.34

            	
              "Earnings",
                in relation to a Vessel, means all hires including (without limitation)
                all time charter hire and bareboat charter hire, freights, pool income
                and
                other sums payable to or for the account of the Owner in respect
                of that
                Vessel including (without limitation) all remuneration for salvage
                and
                towage services, demurrage and detention moneys, contributions in
                general
                average, compensation in respect of any requisition for hire and
                damages
                and other payments (whether awarded by any court or arbitral tribunal
                or
                by agreement or otherwise) for breach, termination or variation of
                any
                contract for the operation, employment or use of that
                Vessel.

            

    

     

    
      	 	
              1.1.35

            	
              "Earnings
                Account"
                means a bank account to be opened in the name of the Borrower with
                the
                Agent and designated "Vessel Net Earnings Account".
                

            

    

     

    
      	 	
              1.1.36

            	
              "EBITDA"
                means, for any twelve month period ending on a Determination Date,
                the
                consolidated profit on ordinary activities of the Group before
                Taxes:

            

    

     

    (a) adjusted
      to exclude interest received or receivable and other similar income to the
      extent not already excluded;

     

    (b) before
      the depreciation of fixed assets but after excluding any loss or gain arising
      on
      the disposal of fixed assets or shares;

     

    (c) before
      the deduction of Interest Expense for such period;

     

    (d) before
      any charge for the amortisation of goodwill, merger differences, acquisition
      costs or any other intangible asset; and

     

    (e) before
      adding or deducting extraordinary or exceptional items (to include, for the
      avoidance of doubt, any redundancy costs and foreign exchange profits and losses
      in relation to the funding of the business) in each case for such
      period.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    1.1.37 "Employee
      Plan"
      means
      an employee pension benefit plan (other than a Multiemployer Plan) subject
      to
      the provisions of Title IV of ERISA or section 412 of the Code or Section 302
      of
      ERISA, and in respect of which the Borrower or any of its ERISA Affiliates
      is
      (or, if such plan were terminated, would under Section 4069 of ERISA be deemed
      to be) an "employer" as defined in Section 3(5) of ERISA.

     

    
      	 	
              1.1.38

            	
              "Encumbrance"
                means any mortgage, charge, pledge, lien, assignment, hypothecation,
                preferential right, option, title retention or trust arrangement
                or any
                other agreement or arrangement which, in any of the aforementioned
                instances, has the effect of creating
                security.

            

    

     

    1.1.39 "English
      Owner"
      means,
      subject to Clause 2.18, the company set out in Schedule 2 Part III as the owner
      of a Negative Pledged Vessel.

     

    
      	 	
              1.1.40

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

            

    

     

    
      	 	
              1.1.41

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

            

    

     

    
      	 	
              1.1.42

            	
              "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.

            

    

     

    
      	 	
              1.1.43

            	
              "Environmental
                Incident"
                means:

            

    

     

    
      	 	
              (a)

            	
              any
                release of Environmentally Sensitive Material from a Vessel;
                or

            

    

     

    
      	 	
              (b)

            	
              any
                incident in which Environmentally Sensitive Material is released
                from a
                vessel other than a Vessel and which involves a

            

    

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    collision
      between a Vessel and such other vessel or some other incident of navigation
      or
      operation, in either case, in connection with which the relevant 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 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 Vessel and in connection with which that
                Vessel
                is actually or potentially liable to be arrested and/or where any
                guarantor, any manager (or any sub-manager of the relevant 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.

            

    

     

    
      	 	
              1.1.44

            	
              "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.

            

    

     

    
      	 	
              1.1.45

            	
              "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 

            

    

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    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.

     

    1.1.46 "ERISA"
      means,
      at any date, the United States Employee Retirement Income Security Act of 1974
      (or any successor legislation thereto) as amended from time to time, and the
      regulations promulgated and rulings issued thereunder, all as the same may
      be in
      effect at such date.

     

    1.1.47 "ERISA
      Affiliate"
      of the
      Borrower means any person that for purposes of Title I and Title IV of ERISA
      and
      Section 412 of the Code would be deemed at any relevant time to be a single
      employer with the Borrower, pursuant to Section 414(b), (c), (m) or (o) of
      the
      Code or Section 4001 of ERISA.

     

    1.1.48 "ERISA
      Event"
      means:

     

    (a) any
      reportable event, as defined in Section 4043 of ERISA, with respect to an
      Employee Plan, as to which PBGC has not by regulation waived the requirement
      of
      Section 4043(a) of ERISA that it be notified of such event;

     

    (b) the
      filing of a notice of intent to terminate any Employee Plan, if such termination
      would require material additional contributions in order to be considered a
      standard termination within the meaning of Section 404(b) of ERISA, the filing
      under Section 4041(c) of ERISA of a notice of intent to terminate any Employee
      Plan or the termination of any Employee Plan under Section 4041(c) of
      ERISA;

     

    (c) the
      institution of proceedings under Section 4042 of ERISA by the PBGC for the
      termination of, or the appointment of a trustee to administer, any Employee
      Plan;

     

    (d) the
      failure to make a required contribution to any Employee Plan that would result
      in the imposition of an encumbrance under Section 412 of the Code or Section
      302
      of ERISA or the filing of any request for a minimum funding waiver under

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    Section
      412 of the Code with respect to any Employee Plan or Multiemployer
      Plan;

     

    (e) an
      engagement in a non-exempt prohibited transaction within the meaning of Section
      4975 of the Code or Section 406 of ERISA;

     

    (f) the
      complete or partial withdrawal of the Borrower or any of its EIRSA Affiliates
      from a Multiemployer Plan; and 

     

    (g) the
      Borrower or any of its ERISA Affiliates incurring any liability under Title
      IV
      of ERISA with respect to any Employee Plan (other than premiums due and not
      delinquent under section 4007 of ERISA).

     

    1.1.49 "EURIBOR"
      means:

     

    (a) the
      applicable Screen Rate; or

     

    (b) (if
      no
      Screen Rate is available for the relevant Interest Period) the arithmetic mean
      of the rates (rounded upwards to four decimal places) as supplied to the Agent
      at its request quoted by the Reference Banks to leading banks in the European
      interbank market,

     

    
      	 	 	
              at
                11.00 a.m. (Brussels time) on the Quotation Day for the offering
                of
                deposits in euro in an amount comparable to the Loan (or any relevant
                part
                of the Loan) and for a period comparable to the relevant Interest
                Period.

            

    

     

    
      	 	
              1.1.50

            	
              "euro"
                and "€"
                means the single currency of the Participating Member
                States.

            

    

     

    
      	 	
              1.1.51

            	
              "Event
                of Default"
                means any of the events set out in
                Clause 12.2.

            

    

     

    
      	 	
              1.1.52

            	
              "Execution
                Date"
                means the date on which this Agreement is executed by each of the
                parties
                hereto.

            

    

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    
      	 	
              1.1.53

            	
              "Existing
                Facility"
                means a senior secured revolving reducing multi-currency credit facility
                agreement for $100,000,000 dated 26 June 2002 made between Gulf Offshore
                N.S. Limited, GulfMark Norge AS and GulfMark Offshore, Inc. as borrowers
                provided by the banks and institutions listed therein as lenders,
                GulfMark
                Offshore, Inc. as guarantor, Nordea Bank Norge ASA and the Royal
                Bank of
                Scotland PLC as arrangers, Nordea Norge ASA as facility agent and
                security
                trustee and Danship Ship Finance as
                co-arranger.

            

    

     

    
      	 	
              1.1.54

            	
              "Existing
                Swap Arrangements"
                means a foreign exchange currency transaction dated 30 September
                2005 for
                value 17 March 2007 between the Borrower and Nordea Bank Finland
                plc (New
                York branch).

            

    

     

    
      	 	
              1.1.55

            	
              "Facility"
                means the reducing revolving credit facility made available by the
                Banks
                to the Borrower pursuant to this
                Agreement.

            

    

     

    
      	 	
              1.1.56

            	
              "Facility
                Outstandings"
                at any time means the total of all Drawings made at that time, to
                the
                extent not reduced by repayments, prepayments or voluntary
                reductions.

            

    

     

    
      	 	
              1.1.57

            	
              "Facility
                Period"
                means the period beginning on the Execution Date and ending on the
                date
                when the whole of the Indebtedness has been repaid in full and the
                Borrower has ceased to be under any further actual or contingent
                liability
                to the Finance Parties under or in connection with the Security
                Documents.

            

    

     

    
      	 	
              1.1.58

            	
              "Fee
                Letter"
                means a letter or letters from the Agent to the Borrower setting
                out
                certain fees payable to the Agent in connection with the
                Facility.

            

    

     

    
      	 	
              1.1.59

            	
              "Final
                Balloon Payment"
                means an amount of fifty five million eight hundred thousand Dollars
                ($55,800,000), less any voluntary cancellation pursuant to Clause
                2.4.2 or
                any mandatory prepayment pursuant to Clause 2.4.3 or Clause 2.4.4,
                which
                shall be payable on the Termination
                Date.

            

    

     

    
      	 	
              1.1.60

            	
              "Finance
                Parties"
                means the Banks, the MLA and the
                Agent.

            

    

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    
      	 	
              1.1.61

            	
              "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)

            	
              all
                reimbursement obligations whether contingent or not in respect of
                amounts
                paid under a letter of credit or similar
                instrument;

            

    

     

    
      	 	
              (g)

            	
              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) with the exception of the
                Existing
                Swap Arrangements;

            

    

     

    
      	 	
              (h)

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

            

    

     

    
      	 	
              (i)

            	
              any
                guarantee of indebtedness falling within paragraphs (a) to (i)
                above.

            

    

     

    
      	 	
              1.1.62

            	
              "First
                Reduction Date"
                means the date falling sixty six (66) calendar months after the Execution
                Date.

            

    

     

    
      	 	
              1.1.63

            	
              "GAAP"
                means either IFRS or the generally accepted accounting principles
                in the
                United States of America.

            

    

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    
      	 	
              1.1.64

            	
              "Group"
                means the Borrower and each of its
                Subsidiaries.

            

    

     

    
      	 	
              1.1.65

            	
              "IFRS"
                means International Financial Reporting Standards issued and/or adopted
                by
                the International Accounting Standards
                Board.

            

    

     

    
      	 	
              1.1.66

            	
              "Indebtedness"
                means the Facility Outstandings; all other sums of any nature including
                costs (together with all interest on any of those sums) which from
                time to
                time may be payable by the Borrower to the Finance Parties pursuant
                to the
                Security Documents; any damages payable as a result of any breach
                by the
                Borrower of any of the Security Documents; and any damages or other
                sums
                payable as a result of any of the obligations of the Borrower under
                or
                pursuant to any of the Security Documents being disclaimed by a liquidator
                or any other person, or, where the context permits, the amount thereof
                for
                the time being outstanding.

            

    

     

    
      	 	
              1.1.67

            	
              "Insurances",
                in relation to a Vessel, means all policies and contracts of insurance
                (including but not limited to hull and machinery, all entries in
                protection and indemnity or war risks associations) which are from
                time to
                time taken out or entered into in respect of or in connection with
                that
                Vessel or her increased value and (where the context permits) all
                benefits
                thereof, including all claims of any nature and returns of
                premium.

            

    

     

    
      	 	
              1.1.68

            	
              "Interest
                Expense"
                means the interest paid by any member of the Group on the Total Debt
                in
                the twelve month period ending on a Determination
                Date.

            

    

     

    
      	 	
              1.1.69

            	
              "Interest
                Payment Date"
                means each date for the payment of interest in accordance with
                Clause 6.

            

    

     

    
      	 	
              1.1.70

            	
              "Interest
                Period"
                means each interest period selected by the Borrower or agreed by
                the Banks
                pursuant to Clause 6.

            

    

     

    
      	 	
              1.1.71

            	
              "ISM
                Code"
                means the International Ship Management Code for the Safe Operation
                of
                Ships and for Pollution Prevention.

            

    

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    
      	 	
              1.1.72

            	
              "ISM
                Company"
                means, at any given time, the company responsible for a Vessel's
                compliance with the ISM Code under paragraph 1.1.2 of the ISM
                Code.

            

    

     

    
      	 	
              1.1.73

            	
              "ISPS
                Code"
                means the International Ship and Port Security Code as adopted by
                the
                Conference of Contracting Governments to the Safety of Life at Sea
                Convention 1974 on 13 December 2002 and incorporated as Chapter XI-2
                of
                the Safety of Life at Sea Convention
                1974.

            

    

     

    
      	 	
              1.1.74

            	
              "Issue
                Date"
                means the date on which an LC is issued under Clause
                2.11.

            

    

     

    
      	 	
              1.1.75

            	
              "Issue
                Request"
                means a notice substantially in the form set out in Schedule
                7.

            

    

     

    
      	 	
              1.1.76

            	
              "law"
                or "Law"
                means any law, statute, treaty, convention, regulation, instrument
                or
                other subordinate legislation or other legislative or quasi-legislative
                rule or measure, or any order or decree of any government, judicial
                or
                public or other body or authority, or any directive, code of practice,
                circular, guidance note or other direction issued by any competent
                authority or agency (whether or not having the force of
                law).

            

    

     

    
      	 	
              1.1.77

            	
              "LC"
                means any letter of credit, standby letter of credit, payment guarantees
                or other equivalent instruments which the Issuer in its absolute
                discretion agrees to issue
                hereunder.

            

    

     

    
      	 	
              1.1.78

            	
              "LC
                Amount"
                means the aggregate from time to time of the actual and contingent
                liabilities of the Issuer under or pursuant to the
                LCs.

            

    

     

    
      	 	
              1.1.79

            	
              "LC
                Availability Termination Date"
                means the seventh anniversary of the Execution
                Date.

            

    

     

    
      	 	
              1.1.80

            	
              "LIBOR"
                means:

            

    

     

    (a) the
      applicable Screen Rate; or 

     

    (b) (if
      no
      Screen Rate is available for any Interest Period or for any currency in which
      the Facility is to be denominated during that Interest Period) the arithmetic
      mean of the rates (rounded 

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    upwards
      to four decimal places) as supplied to the Agent at its request quoted by the
      Reference Banks to leading banks in the London interbank market,

     

    
      	 	 	
              at
                11.00 a.m. (London time) on the Quotation Day for the offering of
                deposits
                in the currency in which the Facility is to be denominated during
                the
                relevant Interest Period in an amount comparable to the Facility
                (or any
                relevant part of the Facility) and for a period comparable to the
                relevant
                Interest Period.

            

    

     

    
      	 	
              1.1.81

            	
              "Majority
                Banks"
                means any one or more Banks whose combined Proportionate Shares exceed
                sixty six and two thirds per centum
                (662⁄3%).

            

    

     

    
      	 	
              1.1.82

            	
              "Manager"
                means the Borrower or any entity within the
                Group.

            

    

     

    
      	 	
              1.1.83

            	
              "Mandatory
                Cost"
                means for each Bank to which it applies, the cost imputed to that
                Bank of
                compliance with the mandatory liquid asset requirements of the Bank
                of
                England and/or the banking supervision or other costs imposed by
                the
                Financial Services Authority, determined in accordance with Schedule
                 5 (Calculation of the Mandatory
                Cost).

            

    

     

    
      	 	
              1.1.84

            	
              "Margin"
                shall be calculated on, and effective from each Determination Date
                in
                accordance with the following grid based on the ratio of (a) the
                Borrower's average Total Debt over the twelve (12) month period
                terminating on the relevant Determination Date to (b) the Borrower's
                consolidated EBITDA determined on the relevant Determination
                Date:

            

    

     

    
      	
              Total
                Debt/EBITDA

               

            	 	
              Applicable
                Margin

               

            
	
              Less
                than 2.5

               

            	 	
              0.70%
                p.a.

               

            
	
              Equal
                to or greater than 2.5

               

            	 	 
	
              but
                less than 5.0

               

            	 	
              0.80%
                p.a.

               

            
	
              Equal
                to or greater than 5.0

               

            	 	
              0.90%
                p.a.

               

            

    

    

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

    
      	 	
              1.1.85

            	
              "Margin
                Stock"
                means margin stock or "margin security" within the meaning of Regulations
                T, U and X.

            

    

     

    
      	 	
              1.1.86

            	
              "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 Security
                Party
                or on the consolidated financial condition, assets, prospects or
                business
                of the Group;

            

    

     

    
      	 	
              (b)

            	
              the
                ability of any Security Party to perform and comply with its obligations
                under any Security Document or to avoid any Event of
                Default;

            

    

     

    
      	 	
              (c)

            	
              the
                validity, legality or enforceability of any Security 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.

            

    

     

    1.1.87 "Material
      Subsidiary"
      means
      any Subsidiary of the Borrower whose net asset value represents ten per cent
      (10%) or more of the net asset value of the Group, as indicated by the financial
      statements to be delivered to the Agent pursuant to Clause 10.2.1.

     

    
      	 	
              1.1.88

            	
              "Maximum
                Facility Amount"
                means an amount not exceeding the lesser of (i) eighty per cent (80%)
                of
                the aggregate value of the Vessels as determined by the Valuations
                and
                (ii) eighty five million Dollars ($85,000,000) less the LC Amount
                from
                time to time,

            

    

     

    
      	 	 	
              and
                subject to any reductions effected in accordance with Clauses 2.4,
                15.7 and 15.8.

            

    

     

    
      	 	
              1.1.89

            	
              "Maximum
                LC Amount"
                means twenty five million Dollars
                ($25,000,000).

            

    

     

    
      	 	
              1.1.90

            	
              "Mortgaged
                Vessels"
                means, subject to Clause 2.17, those vessels listed in Schedule 2
                Part I
                (each a "Mortgaged
                Vessel").

            

    

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

    
      	 	
              1.1.91

            	
              "Mortgages"
                means together the first priority statutory ship mortgages or first
                preferred naval mortgages (as the case may be) over each of the Vessels
                made or to be made between the Borrower and the Agent referred to
                in
                Clause 8.1.1 (each a "Mortgage").

            

    

     

    
      	 	
              1.1.92

            	
              "Multiemployer
                Plan"
                means a "multiemployer plan" (as defined in Section (3)(37) of ERISA)
                contributed to for any employees of the Borrower or any of its ERISA
                Affiliates.

            

    

     

    
      	 	
              1.1.93

            	
              "Newbuildings"
                means, subject to Clause 2.17, those vessels listed in Schedule 2
                Part II
                (each a "Newbuilding").

            

    

     

    1.1.94 "Negative
      Pledged Vessels"
      means,
      subject to Clause 2.18, those vessels specified in Schedule 2 Part III
      (each a "Negative
      Pledged Vessel").

     

    1.1.95 "Negative
      Pledged Vessels Valuations"
      means
      either (i) in relation to a Negative Pledged Vessel, the average of the written
      valuations of that Negative Pledged Vessel expressed in Dollars prepared by
      two
      of the Approved Brokers (or such other firms of reputable independent
      shipbrokers as may be acceptable to the Majority Banks), to be nominated by
      the
      Borrower. Such valuations shall be prepared at the Borrowers expense (unless
      otherwise stated in this Agreement), without a physical inspection, on the
      basis
      of a sale for prompt delivery for cash at arm's length on a charter free basis
      between a willing buyer and a willing seller; and (ii) in relation to a
      Replacement Negative Pledged Vessel (as defined in Clause 2.18), the average
      of
      the written valuations of that Replacement Negative Pledged Vessel expressed
      in
      Dollars prepared by two of the Approved Brokers (or such other firms of
      reputable independent shipbrokers as may be acceptable to the Majority Banks),
      to be nominated by the Borrower. Such valuations shall be prepared at the
      Borrower's expense (unless otherwise stated in this Agreement), without a
      physical inspection, on the basis of a sale for prompt delivery for cash at
      arm's length on a charter free basis between a willing buyer and a willing
      seller. 

     

    1.1.96 "Net
      Earnings"
      means
      the Earnings less any Operating Commissions. 

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

    1.1.97 "NIBOR"
      means
      the Norwegian interbank offered rate being the rate per annum equal to the
      offered quotation for deposits in amounts equal to that Drawing (and for periods
      equal to the Interest Period of that Drawing) appearing on Reuters Screen page
      NIBR, published by Reuters through its monitor service or any equivalent
      successor to such service at or about 12:00 p.m. (Oslo time) on the applicable
      Quotation Day or if no such rate is available, the arithmetic mean (rounded
      upwards to the nearest 1/16 of one per cent) of the rate per annum at which
      the
      Agent is able to acquire NOK in the amount and for the Interest Period equal
      to
      such Drawing in the Norwegian interbank market at or about 12:00 p.m. (Oslo
      time) on the applicable Quotation Day.

     

    1.1.98 "Norwegian
      Kroner"
      means
      the lawful currency of the Kingdom of Norway.

     

    1.1.99 "Optional
      Currency"
      means
      any of Dollars, Sterling, Euro and Norwegian Kroner.

     

    1.1.100 "Operating
      Commissions"
      means
      any commissions or fees payable by the Borrower in respect of any of the Vessels
      to any agents in respect of the chartering of the Vessels. 

     

    
      	 	
              1.1.101

            	
              "Owners"
                means, subject to Clause 2.17, each of the companies set out in
                Schedule 2 Part I and Schedule 2 Part II as the owner of a
                Vessel.

            

    

     

    
      	 	
              1.1.102

            	
              "Participating
                Member State"
                means any member state of the European Community that adopts or has
                adopted the euro as its lawful currency in accordance with legislation
                of
                the European Community relating to Economic and Monetary
                Union.

            

    

     

    
      	 	
              1.1.103

            	
              "Party"
                means a party to this Agreement. 

            

    

     

    
      	 	
              1.1.104

            	
              "PBGC"
                means the U.S. Pension Benefit Guaranty Corporation, or any entity
                succeeding to all or any of its functions under
                ERISA.

            

    

     

    
      	 	
              1.1.105

            	
              "Permitted
                Liens"
                means (i) any Encumbrance which has the prior written approval of
                the
                Agent or (ii) any Encumbrances that arise either
                

            

    

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

    by
      operation of law or in the ordinary course of the business of the relevant
      Security Party which are discharged in the ordinary course of
      business.

     

    
      	 	
              1.1.106

            	
              "Potential
                Event of Default"
                means any event which, with the giving of notice and/or the passage
                of
                time and/or the satisfaction of any materiality test, would constitute
                an
                Event of Default.

            

    

     

    
      	 	
              1.1.107

            	
              "Pre-Approved
                Classification Society"
                means any of Det norske Veritas, Lloyds Register of Shipping, American
                Bureau of Shipping (ABS), Germanischer Lloyd or Bureau
                Veritas.

            

    

     

    
      	 	
              1.1.108

            	
              "Proceedings"
                means any suit, action or proceedings begun by any of the Finance
                Parties
                arising out of or in connection with the Security
                Documents.

            

    

     

    
      	 	
              1.1.109

            	
              "Proportionate
                Share"
                means, for each Bank, the percentage that its Commitment bears to
                the
                aggregate Commitments of all Banks from time to time, being initially
                the
                percentage indicated against the name of that Bank in Schedule
                1.

            

    

     

    1.1.110 "Quotation
      Day"
      means,
      in relation to any period for which an interest rate is to be determined
      :

     

    (a) (if
      the
      currency is sterling) the first day of that period; 

     

    (b) (if
      the
      currency is euro) two TARGET Days before the first day of that period; or

     

    (c) (for
      any
      other currency) two Business Days before the first day of that
      period,

     

    unless
      market practice differs in the relevant interbank market for a currency, in
      which case the Quotation Day will be determined by the Agent in accordance
      with
      market practice in that interbank market.

     

    
      	 	
              1.1.111

            	
              "Reference
                Banks"
                means the office of DnB NOR Bank ASA at Lars Hillesgate 30, PO Box
                7100,
                NO-5020 Bergen, Norway and The Royal Bank of Scotland plc at 1 Albyn
                Place, Aberdeen AB10 1BR, Scotland

            

    

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

    or
      such
      other banks as may be appointed by the Agent in consultation with the
      Borrower.

     

    
      	 	
              1.1.112

            	
              "Regulations T,
                U and X"
                means, respectively Regulations T, U and X of the Board of Governors
                of
                the Federal Reserve System of the United States (or any successor)
                as now
                and from time to time hereafter in
                effect.

            

    

     

    
      	 	
              1.1.113

            	
              "Requisition
                Compensation",
                in relation to a Vessel, means all compensation or other money which
                may
                from time to time be payable to an Owner as a result of that Vessel
                being
                requisitioned for title or in any other way compulsorily acquired
                (other
                than by way of requisition for hire).

            

    

     

    1.1.114 "Screen
      Rate"
      means:

     

    
      	 	
              (a)

            	
              in
                relation to LIBOR, the British Bankers' Association Interest Settlement
                Rate for the relevant currency and period;
                and

            

    

     

    
      	 	
              (b)

            	
              in
                relation to EURIBOR, the percentage rate per annum determined by
                the
                Banking Federation of the European Union for the relevant period;
                and

            

    

     

    
      	 	
              (c)

            	
              in
                relation to NIBOR, Reuters screen page
                NIBR,

            

    

     

    
      	 	 	
              displayed
                on the appropriate page of the Reuters screen. If the agreed page
                is
                replaced or the service ceases to be available, the Agent may specify
                another page or service displaying the appropriate rate after consultation
                with the Borrower and the Banks.

            

    

     

    1.1.115 "Security
      Documents"
      means
      this Agreement, the Declaration of Negative Pledge, the Assignments, the
      Mortgages or (where the context permits) any one or more of them, and any other
      agreement or document which may at any time be executed as security for the
      payment of all or any part of the Indebtedness.

     

    1.1.116 "Security
      Parties"
      means,
      at any relevant time, the Borrower, the Owners, the English Owner and any other
      party who may at any time during the Facility Period be liable for, or provide
      security for, all or 

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

    any
      part
      of the Indebtedness, and "Security
      Party"
      means
      any one of them. 

     

    1.1.117 "SMC"
      means a
      valid safety management certificate issued for a Vessel by or on behalf of
      the
      Administration under paragraph 13.7 of the ISM Code.

     

    1.1.118 "SMS"
      means,
      in relation to each Vessel, a safety management system for that Vessel developed
      and implemented in accordance with the ISM Code and including the functional
      requirements, duties and obligations required by the ISM Code.

     

    1.1.119 "Sterling"
      means
      the lawful currency of England.

     

    1.1.120 "Subsequent
      Reduction Dates"
      means
      each date falling at consecutive six monthly intervals after the previous
      Subsequent Reduction Date which in the case of the first Subsequent Reduction
      Date shall be six months after the First Reduction Date.

     

    1.1.121 "Subsidiary"
      means a
      subsidiary undertaking, as defined in section 736 Companies Act 1985, or any
      analogous definition under any other relevant system of law.

     

    1.1.122 "TARGET"
      means
      the Trans-European Automated Real-time Gross Settlement Express Transfer payment
      system.

     

    1.1.123 "TARGET
      Day"
      means
      any day on which TARGET is open for the settlement of payments in
      euro.

     

    1.1.124 "Taxes"
      means
      all taxes, levies, imposts, duties, charges, fees, deductions and withholdings
      (including any related interest and penalties) and any restrictions or
      conditions resulting in any charge, other than taxes on the overall net income
      of a Finance Party or branch thereof, and "Tax"
      and
      "Taxation"
      shall
      be interpreted accordingly.

     

    
      	 	
              1.1.125

            	
              "Termination
                Date"
                means the seventh anniversary of the Execution
                Date.

            

    

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

    
      	 	
              1.1.126

            	
              "Total
                Assets"
                means the amount which is equal to the total consolidated assets
                of the
                Borrower as shown in the Borrower's latest audited consolidated balance
                sheet less the goodwill (if any) of the Borrower as shown in the
                Borrower's latest audited balance
                sheet.

            

    

     

    
      	 	
              1.1.127

            	
              "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 Borrower; and

     

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

     

    
      	 	
              1.1.128

            	
              "Total
                Loss",
                in relation to a Vessel, means:- 

            

    

     

    (a) an
      actual, constructive, arranged, agreed or compromised total loss of that Vessel;
      or 

     

    (b) the
      requisition for title, compulsory acquisition, nationalisation or expropriation
      of that Vessel by or on behalf of any government or other authority (other
      than
      by way of requisition for hire); or

     

    (c) the
      capture, seizure, arrest, detention or confiscation of that Vessel, unless
      the
      Vessel is released and returned to the possession of its Owner within thirty
      (30) days after the capture, seizure, arrest, detention or confiscation in
      question.

     

    
      	 	
              1.1.129

            	
              "Total
                Shareholders Equity"
                means the aggregate of the amount paid up on the issued share capital
                of
                any relevant entity and the amount standing to the credit of its
                capital
                and revenue reserves (including any share premium account or capital
                redemption reserve but excluding any revaluation reserve,) plus or
                minus
                the amount standing to the credit or debit (as the case may be) of
                its
                profit and loss account.

            

    

     

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

    
      	 	
              1.1.130

            	
              "Transfer
                Certificate"
                means a certificate materially in the form set forth in Schedule
                3 signed
                by a Bank and a Transferee
                whereby:-

            

    

     

    (a) such
      Bank
      seeks to procure the transfer to such Transferee of all or a part of such Bank's
      rights and obligations under this Agreement upon and subject to the terms and
      conditions set out in Clause 14; and

     

    (b) such
      Transferee undertakes to perform the obligations it will assume as a result
      of
      delivery of such certificate to the Agent as is contemplated in Clause
      14.

     

    
      	 	
              1.1.131

            	
              "Transfer
                Date"
                means, in relation to any Transfer Certificate, the date for the
                making of
                the transfer specified in the schedule to such Transfer
                Certificate.

            

    

     

    1.1.132 "Transferee"
      means a
      bank or other financial institution to which a Bank seeks to transfer all or
      part of such Bank's rights and obligations under this Agreement.

     

    1.1.133 "Trust
      Property"
      means:-

     

    (a) the
      benefit of Clause 8 and the covenants contained in Clause 9.3;
      and

     

    (b) all
      benefits arising under (including, without limitation, all proceeds of the
      enforcement of) each of the Security Documents (other than this Agreement),
      with
      the exception of any benefits arising solely for the benefit of the
      Agent.

     

    1.1.134 "UCC"
      means
      the Uniform Commercial Code as from time to time in effect in the State of
      Delaware, or, if the Uniform Commercial Code in any other State of the United
      States of America is mandatorily applicable with respect to any particular
      matter, the Uniform Commercial Code as from time to time in effect in such
      other
      State of the United States of America.

     

    1.1.135 "Valuation"
      means
      either (i) in relation to a Vessel the average of the written valuations of
      that
      Vessel expressed in Dollars prepared by two 

     

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

    of
      the
      Approved Brokers (or such other firms of reputable independent shipbrokers
      as
      may be acceptable to the Majority Banks), to be nominated by the Borrower.
      Such
      valuations shall be prepared at the Borrower's expense (unless otherwise stated
      in this Agreement), without a physical inspection, on the basis of a sale for
      prompt delivery for cash at arm's length on a charter free basis between a
      willing buyer and a willing seller, or (ii) the commercial invoice evidencing
      the purchase price in respect of either a Newbuilding or of a Vessel that was
      delivered to the Owner no more than six (6) months prior to the date of this
      Agreement. 

     

    
      	 	
              1.1.136

            	
              "Vessels" means,
                subject to Clause 2.17, those vessels listed in Schedule 2
                Part I and Schedule 2 Part II (if and to the extent each Newbuilding
                has at any relevant time been delivered to the Borrower) (each a
                "Vessel").

            

    

     

    1.2 Interpretation

     

    In
      this
      Agreement:-

     

    
      	 	
              1.2.1

            	
              words
                denoting the plural number include the singular and vice
                versa;

            

    

     

    
      	 	
              1.2.2

            	
              words
                denoting persons include corporations, partnerships, associations
                of
                persons (whether incorporated or not) or governmental or
                quasi-governmental bodies or authorities and vice
                versa;

            

    

     

    
      	 	
              1.2.3

            	
              references
                to Recitals, Clauses, Schedules and Appendices are references to
                recitals
                and clauses of, and schedules and appendices to, this Agreement;
                

            

    

     

    
      	 	
              1.2.4

            	
              references
                to this Agreement include the Recitals, the Schedules and the
                Appendices;

            

    

     

    
      	 	
              1.2.5

            	
              the
                headings and contents page(s) are for the purpose of reference only,
                have
                no legal or other significance, and shall be ignored in the interpretation
                of this Agreement;

            

    

     

    
      	 	
              1.2.6

            	
              references
                to any document (including, without limitation, to all or any of
                the
                Security Documents) are, unless the context otherwise requires,
                

            

    

     

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

    

    references
      to that document as amended, supplemented, novated or replaced from time to
      time;

     

    
      	 	
              1.2.7

            	
              references
                to statutes or provisions of statutes are references to those statutes,
                or
                those provisions, as from time to time amended, replaced or
                re-enacted;

            

    

     

    
      	 	
              1.2.8

            	
              references
                to any of the Finance Parties include its successors, transferees
                and
                assignees; 

            

    

     

    
      	 	
              1.2.9

            	
              references
                to times of day are unless otherwise stated to London time;
                and

            

    

     

    
      	 	
              1.2.10

            	
              unless
                the contrary intention appears, a reference to a month or months
                is a
                reference to a period starting on one day in a calendar month and
                ending
                on the numerically corresponding day in the next calendar month or
                the
                calendar month in which it is to end, except
                that:

            

    

     

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

     

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

     

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

     

    
      	2  	
              The Facility and
                LCs and their Purpose

            

    

     

    
      	 	
              2.1

            	
              Agreement
                to lend Subject
                to the terms and conditions of this Agreement, and in reliance on
                each of
                the representations and warranties made or to be made in or in accordance
                with each of the Security Documents, each of the Banks agrees to
                advance
                to the Borrower its Commitment of an aggregate principal amount not
                exceeding the Maximum Facility Amount to be used by the Borrower
                for the
                purposes referred to in the
                Recital.

            

    

     

    
      
        
        

      

      
        25

        
          

        

      

      
        
        

      

    

    
      	 	
              2.2

            	
              Drawings
                Subject
                to satisfaction by the Borrower of the conditions set out in
                Clause 3.1 (in respect of the first Drawing), or Clause 3.2 (in
                respect of all subsequent Drawings other than Delivery Drawings),
                or
                Clause 3.3 (in respect of all Delivery Drawings) and subject to Clause
                2.3, and provided that the maximum aggregate amount of the Facility
                Outstandings at any given time during the Facility Period shall not
                exceed
                the Maximum Facility Amount, each Drawing shall be advanced to the
                Borrower, in each case by the Agent transferring the amount of the
                Drawing
                to such account as the Borrower shall notify to the Agent in the
                relevant
                Drawdown Notice by such same day method of funds transfer as the
                Agent
                shall select.

            

    

     

    
      	 	
              2.3

            	
              Advance
                of Drawings
                Each Drawing shall be advanced in the Base Currency. Each Drawing
                shall be
                advanced on a Business Day, provided that the Borrower shall have
                given to
                the Agent not more than ten and not fewer than three Business Days'
                notice
                in writing materially in the form set out in Schedule 4 of the required
                Advance Date of the Drawing in question and provided that the requested
                Drawing would not cause a breach of Clause 2.5. Each Drawdown Notice
                once
                given shall be irrevocable and shall constitute a warranty by the
                Borrower
                that:- 

            

    

     

    
      	 	
              2.3.1

            	
              all
                conditions precedent to the advance of the Drawing requested in that
                Drawdown Notice will have been satisfied on or before the Advance
                Date
                requested; 

            

    

     

    
      	 	
              2.3.2

            	
              no
                Event of Default or Potential Event of Default has occurred or will
                then
                have occurred; and

            

    

     

    
      	 	
              2.3.3

            	
              no
                Event of Default or Potential Event of Default will result from the
                advance of the Drawing in question.

            

    

     

    The
      Agent
      shall promptly notify each Bank of the receipt of each Drawdown Notice,
      following which each Bank will make its Proportionate Share of the amount of
      the
      requested Drawing available to the Borrower through the Agent on the Advance
      Date requested.

     

    2.4 Facility
      Reduction

     

    
      	 	
              2.4.1

            	
              The
                aggregate amount of the Facility available to the Borrower for drawing
                under this Agreement shall be eighty five million Dollars
                

            

    

     

    
      
        
        

      

      
        26

        
          

        

      

      
        
        

      

    

    ($85,000,000)
      (less the LC Amount from time to time) during the period from the Execution
      Date
      until the First Reduction Date. On the First Reduction Date and on each of
      the
      Subsequent Reduction Dates the amount of the Facility available for drawing
      shall be reduced by seven million three hundred thousand Dollars ($7,300,000),
      which shall leave the Final Balloon Payment as being payable on the Termination
      Date. On the Termination Date the Facility available shall be reduced to zero.
      Subject to the proviso hereto, the mandatory reductions in the amount of the
      Facility available for drawing required pursuant to this Clause will be made
      in
      the amounts and at the times specified whether or not the Maximum Facility
      Amount is reduced pursuant to Clause 2.4.2, Clause 2.4.3, Clause 2.4.4, Clause
      15.7 or Clause 15.8. PROVIDED
      ALWAYS THAT
      any
      mandatory reductions pursuant to Clause 2.4.2 (voluntary reductions), Clause
      2.4.3 (sale) or Clause 2.4.4 (Total Loss) shall be applied to the remaining
      mandatory reductions hereunder on a pro rata basis.

     

    
      	 	
              2.4.2

            	
              The
                Borrower may voluntarily cancel the Maximum Facility Amount in whole
                or in
                part in an amount of not less than five million Dollars ($5,000,000)
                and
                shall be in integral multiples of one million Dollars ($1,000,000),
                provided that it has first given to the Agent not fewer than five
                (5)
                Business Days' prior written notice expiring on a Business Day (the
                "Cancellation
                Date")
                of its desire to reduce the Maximum Facility Amount. Such notice,
                once
                received by the Agent, shall be irrevocable and shall oblige the
                Borrower
                to make payment of all interest and Commitment Commission accrued
                on the
                amount so cancelled up to and including the Cancellation Date together
                with any Break Costs in respect of such cancelled amount if the
                Cancellation Date is not an Interest Payment Date. Any such reduction
                in
                the Maximum Facility Amount:

            

    

     

    (a) shall
      not
      be reversed; and 

     

    (b) shall
      be
      applied against the Final Balloon Payment, and the Final Balloon Payment shall
      be reduced by the same amount as any such reduction of the Maximum Facility
      Amount. 

     

    
      
        
        

      

      
        27

        
          

        

      

      
        
        

      

    

    2.4.3 In
      the
      event of a sale or disposal of a Vessel, if the aggregate Valuation of the
      remainder of the Vessels is less than one hundred and seventy five per cent
      (175%) of the Maximum Facility Amount, then the whole of the net sales proceeds
      shall be applied as a mandatory prepayment and the Maximum Facility Amount
      shall
      be reduced by an amount equal to such prepayment. Such reduction shall be made
      on the date of such sale or disposal. If the aggregate Valuation of the
      remainder of the Vessels is between one hundred and seventy five per cent (175%)
      and two hundred per cent (200%) of the Maximum Facility Amount, then no
      prepayment shall be required and there shall be no reduction to the Maximum
      Facility Amount until such time as twenty five million Dollars ($25,000,000)
      has
      been released under this Clause 2.4.3 when aggregated with those amounts
      similarly released under Clause 2.4.4, whereupon the whole of any further net
      sales proceeds shall be applied as a mandatory prepayment and the Maximum
      Facility Amount shall be reduced by an amount equal to such prepayment. If
      the
      aggregate Valuation of the remainder of the Vessels is above two hundred per
      cent (200%) of the Maximum Facility Amount then no prepayment shall be required
      and there shall be no reduction to the Maximum Facility Amount. In each case,
      the Valuations used shall be that attached to the then most recently delivered
      Compliance Certificate. Any such prepayment shall oblige the Borrower to make
      payment of all interest and Commitment Commission accrued on the amount so
      reduced up to and including the date of reduction together with any Break Costs
      in respect of such reduced amount if the date of such reduction is not an
      Interest Payment Date. Any such reduction in the Maximum Facility Amount:

     

    (a) shall
      not
      be reversed; and 

     

    (b) shall
      be
      applied against the Final Balloon Payment, and the Final Balloon Payment shall
      be reduced by the same amount as any such reduction of the Maximum Facility
      Amount. 

     

    
      	 	
              2.4.4

            	
              In
                the event that a Vessel becomes a Total Loss, on the earlier to occur
                of
                (a) the date of receipt of the proceeds of the Total Loss and (b)
                the date
                falling one hundred and eighty (180) days after the occurrence of
                the
                

            

    

     

    
      
        
        

      

      
        28

        
          

        

      

      
        
        

      

    

    Total
      Loss (the "Reduction
      Date"),
      if
      the aggregate Valuation of the remainder of the Vessels is less than one hundred
      and seventy five per cent (175%) of the Maximum Facility Amount then the whole
      of any total loss proceeds shall be applied as a mandatory prepayment and the
      Maximum Facility Amount shall be reduced by an amount equal to such prepayment.
      If the aggregate Valuation of the remainder of the Vessels is between one
      hundred and seventy five per cent (175%) and two hundred per cent (200%) of
      the
      Maximum Facility Amount, then no prepayment shall be required and there shall
      be
      no reduction to the Maximum Facility Amount until such time as twenty five
      million Dollars ($25,000,000) has been released under this Clause 2.4.4 when
      aggregated with those amounts similarly released under Clause 2.4.3, whereupon
      the whole of any further total loss proceeds shall be applied as a mandatory
      prepayment and the Maximum Facility Amount shall be reduced by an amount equal
      to such prepayment. If the aggregate Valuation of the remainder of the Vessels
      is above two hundred per cent (200%) of the Maximum Facility Amount, then no
      prepayment shall be required and there shall be no reduction to the Maximum
      Facility Amount. In each case, the Valuation used shall be that attached to
      the
      then most recently delivered Compliance Certificate. Any such prepayment shall
      oblige the Borrower to make payment of all interest and Commitment Commission
      accrued on the amount so reduced up to and including the date of reduction
      together with any Break Costs in respect of such reduced amount if the date
      of
      such reduction is not an Interest Payment Date. Any such reduction in the
      Maximum Facility Amount: 

     

    (a) shall
      not
      be reversed; and 

     

    (b) shall
      be
      applied against the Final Balloon Payment, and the Final Balloon Payment shall
      be reduced by the same amount as any such reduction of the Maximum Facility
      Amount. 

     

    
      	 	
              2.4.5

            	
              To
                the extent that repayments or prepayments made by the Borrower to
                the
                Agent in accordance with this Agreement reduce the Facility Outstandings
                to less than the Maximum Facility Amount, the Borrower shall again
                be
                entitled to make Drawings up to the Commitment

            

    

     

    
      
        
        

      

      
        29

        
          

        

      

      
        
        

      

    

    Termination
      Date in accordance with and subject to the terms of this Agreement. Any part
      of
      the Facility which is undrawn on the Commitment Termination Date shall be
      automatically cancelled.

     

    
      	 	
              2.4.6

            	
              Simultaneously
                with each reduction of the Maximum Facility Amount in accordance
                with
                Clause 2.4.1, Clause 2.4.2, Clause 2.4.3 or Clause 2.4.4, (as the
                case may
                be), the Commitment of each Bank will reduce so that the Commitments
                of
                the Banks in respect of the reduced Maximum Facility Amount remain
                in
                accordance with their respective Proportionate
                Shares.

            

    

     

    
      	 	
              2.5

            	
              Restrictions
                on Drawings
                The Borrower shall not be entitled to make more than one Drawing
                on any
                Business Day and no more than five (5) Drawings may be outstanding
                at any
                one time during the Facility Period. Each Drawing shall be of an
                amount of
                not less than four million Dollars ($4,000,000) and shall be in integral
                multiples of one million Dollars ($1,000,000), or the equivalent
                in an
                Optional Currency. If at any time during the Facility Period the
                Facility
                Outstandings exceed the Maximum Facility Amount then available or
                if a
                proposed Drawing added to the Facility Outstandings would result
                in the
                Maximum Facility Amount being exceeded then the Borrower shall immediately
                pay to the Agent on behalf of the Banks such amounts as will ensure
                that
                the Facility Outstandings are equal to or less than the Maximum Facility
                Amount then available. 

            

    

     

    
      	 	
              2.6

            	
              Termination
                Date No
                Bank shall be under any obligation to advance all or any part of
                its
                Commitment after the Commitment Termination
                Date.

            

    

     

    
      	 	
              2.7

            	
              Several
                obligations The
                obligations of the Banks under this Agreement are several. The failure
                of
                a Bank to perform its obligations under this Agreement shall not
                affect
                the obligations of the Borrower to any Finance Party nor shall any
                Finance
                Party be liable for the failure of another Bank to perform any of
                its
                obligations under or in connection with this
                Agreement.

            

    

     

    
      	 	
              2.8

            	
              Application
                of Facility Without
                prejudice to the obligations of the Borrower under this Agreement,
                no
                Finance Party shall be obliged to concern itself with the application
                of
                the Facility by the Borrower.

            

    

     

    
      
        
        

      

      
        30

        
          

        

      

      
        
        

      

    

    
      	 	
              2.9

            	
              Loan
                facility and control accounts The
                Agent will open and maintain such loan facility account or such other
                control accounts as the Agent shall in its discretion consider necessary
                or desirable in connection with the Facility.

            

    

     

    2.10 LCs
      Subject
      to the terms of this Agreement, the Issuer agrees to issue LCs in an amount
      in
      aggregate not exceeding the Maximum LC Amount to be applied for general
      corporate purpose. The Issuer will only be obliged to issue an LC (i) if after
      the issue of that LC, the LC Amount does not exceed the Maximum LC Amount (ii)
      it approves the form of the proposed LC (which shall be at the Issuer's absolute
      discretion) (iii) the proposed LC has an expiry date of on or before the LC
      Availability Termination Date and (iv) no Event of Default or Potential Event
      of
      Default has occurred or will then have occurred or will result from the issuance
      of the LC in question.

     

    
      	 	
              2.11

            	
              LC
                Requests
                The Borrower may, for and on behalf of any of the Owners, request
                an LC to
                be issued on any Business Day prior to the LC Availability Termination
                Date by delivery to the Issuer of a duly completed Issue Request
                not more
                than ten (10) and not fewer than three (3) Business Days before the
                proposed Issue Date. Each Issue Request once given shall be irrevocable
                and shall constitute a warranty by the Borrower that:-
                

            

    

     

    
      	 	
              2.11.1

            	
              all
                conditions precedent to the issue of the LC requested in that Issue
                Request will have been satisfied on or before the Issue Date requested;
                

            

    

     

    
      	 	
              2.11.2

            	
              no
                Event of Default or Potential Event of Default has occurred or will
                then
                have occurred; and

            

    

     

    2.11.3 no
      Event
      of Default or Potential Event of Default will result from the advance of the
      Drawing in question.

     

    2.12 LC
      Indemnity
      In
      consideration of the Issuer agreeing to issue the LCs (and for other good and
      valuable consideration (the receipt and adequacy of which the Borrower hereby
      acknowledges), the Borrower unconditionally and irrevocably agrees:

     

    2.12.1 to
      pay to
      the Issuer in the relevant currency upon the Issuer's written demand each and
      every amount which the Issuer is called upon to pay pursuant to an
      LC;

     

    
      
        
        

      

      
        31

        
          

        

      

      
        
        

      

    

    2.12.2 at
      all
      times as a continuing security to keep the Issuer indemnified against all
      demands, claims, payments, costs, liabilities, damages, losses, proceedings
      and
      expenses incurred or suffered by the Issuer directly or indirectly by reason
      of
      or in connection with an LC;

     

    2.12.3 to
      supply
      the Issuer promptly with such evidence as the Issuer may reasonably require
      at
      the termination or reduction of the Issuer's liability under that LC;
      and

     

    2.12.4 to
      pay
      interest to the Issuer in the relevant currency upon the Issuer's written demand
      from time to time on each amount payable by the Borrower under this Clause
      2.12
      at a date of the Issuer's payment until the date of the Borrower's payment
      to
      the Issuer before or after any relevant judgment.

     

    2.13 Direction
      to pay under LCs The
      Borrower irrevocably directs the Issuer to make such payments and comply with
      such demands or claims made on the Issuer in respect of or purporting to be
      in
      respect of an LC as the Issuer in its absolute discretion thinks fit without
      any
      reference to or further authority or direction from the Borrower, or any
      necessity to obtain the Borrower's confirmation or verification, and
      notwithstanding that the Borrower may have disputed the Issuer's liability
      to
      pay or comply or that all or any part of the Issuer's obligations under the
      LC
      may not legally exist or be legally binding on the Issuer. The Borrower agrees
      that the Issuer may treat the Issuer's obligations under an LC as payable on
      first demand and that any such payment or compliance or purported compliance
      by
      the Issuer shall as between the Issuer and the Borrower be conclusive evidence
      that the Issuer was liable to make the payment or comply with the demand or
      claim.

     

    2.14 Transaction
      underlying LC
      The
      Borrower agrees that the Issuer shall be concerned only with the demand or
      claim
      made on it in respect of an LC and, where a demand or claim must be accompanied
      by any other document, with any such document, in each case as presented to
      the
      Issuer, and not with any transaction to which the demand, claim or document
      relates, or as to whether the payment demanded or the claim made was in fact
      due.

     

    
      
        
        

      

      
        32

        
          

        

      

      
        
        

      

    

    2.15 Demand
      under LC The
      Issuer shall be entitled to rely without further enquiry on any demand, claim,
      document or communication in respect of an LC believed by it acting in good
      faith to be genuine and correct and to have been signed or otherwise executed
      or
      made by the proper person. In particular, but without limitation, the Issuer
      acting in good faith shall not be obliged to investigate the propriety of any
      such demand, claim, document or communication or the authority or identity
      of
      the person producing, claiming, signing or making such demand, claim, document
      or communication.

     

    2.16 Currency
      for payment of LC The
      Issuer may, if called on to make a payment or to comply with a demand or claim
      in respect of an LC, purchase in accordance with its usual practice the amount
      of the relevant currency necessary to make that payment or to comply with that
      demand or claim (unless the Issuer has already been put in funds by the
      Borrower).

     

    2.17 Substitute
      Vessels
      It is
      agreed and acknowledged that the Borrower may request amendments to the list
      of
      Vessels set out at Schedule 2 Part I and Schedule 2 Part II. Any such request
      shall be considered by the Banks acting reasonably, and subject to:

     

    2.17.1 the
      Banks
      being satisfied that the replacement vessels are:

     

    (i) offshore
      PSVs or AHTSs of the Borrower's usual standard and quality;

     

    (ii) registered
      in an acceptable registry and classed with a Pre-Approved Classification
      Society;

     

    (iii) built
      no
      earlier than 1997 and being no more than two (2) years older than the Vessel
      it
      is to replace;

     

    (iv) have
      a
      Valuation no less than eighty per cent (80%) of the Valuation of the Vessel
      to
      be replaced;

     

    2.17.2 the
      Borrower, as owner of the replacement vessel, granting security over such
      replacement vessel equivalent to the other Security Documents; and

     

    
      
        
        

      

      
        33

        
          

        

      

      
        
        

      

    

    2.17.3 the
      Agent
      receiving such conditions precedent (including but not limited to corporate
      papers and legal opinions) as it may reasonably require,

     

    the
      Banks
      shall consent to such substitutions and the definitions of "Vessels"
      and
      "Owners"
      shall
      be amended accordingly.

     

    2.18 Substitute
      Negative Pledged Vessels
      It is
      agreed and acknowledged that during the Construction Period the Borrower may
      request amendments to the list of Negative Pledged Vessels set out at Schedule
      2
      Part III. Any such request shall be considered by the Banks acting reasonably,
      and subject to:

     

    2.18.1 the
      Banks
      being satisfied that the replacement vessels ("Replacement
      Negative Pledged Vessels"
      and
      each a "Replacement
      Negative Pledged Vessel")
      are:

     

    (i) offshore
      PSVs or AHTSs of the Borrower's usual standard and quality;

     

    (ii) registered
      in an acceptable registry and classed with a Pre-Approved Classification
      Society;

     

    (iii) built
      no
      earlier than 1997 and being no more than two (2) years older than the Negative
      Pledged Vessel it is to replace;

     

    (iv) have
      a
      Negative Pledged Vessel Valuation no less than eighty per cent (80%) of the
      Negative Pledged Vessel Valuation of the Negative Pledged Vessel to be
      replaced;

     

    2.18.2 the
      Borrower, as owner of the replacement vessel, granting security over such
      replacement vessel equivalent to the other Security Documents; and

     

    2.18.3 the
      Agent
      receiving such conditions precedent (including but not limited to corporate
      papers and legal opinions) as it may reasonably require,

     

    the
      Banks
      shall consent to such substitutions and the definitions of "Negative
      Pledged Vessels"
      shall
      be amended accordingly.

     

    
      
        
        

      

      
        34

        
          

        

      

      
        
        

      

    

    2.19 Release
      of Negative Pledged Vessels
      Following the conclusion of the Construction Period, the Declaration of Negative
      Pledge shall be released upon the request of the Borrower, subject always to
      the
      provisions of Clause 17.2.

     

    
      	3  	
              Conditions Precedent and Subsequent 

            

    

     

    
      	 	
              3.1

            	
              Conditions
                Precedent
                -
                First
                Drawing Before
                any Bank shall have any obligation to advance the first Drawing under
                the
                Facility and/or the Issuer has any obligation to issue an LC, the
                Borrower
                shall pay to the Agent the relevant fees referred to in Clause 7
                and
                deliver or cause to be delivered to or to the order of the Agent
                the
                following documents and evidence:-

            

    

     

    
      	 	
              3.1.1

            	
              Evidence
                of incorporation Such
                evidence as the Agent may reasonably require that each Security Party
                was
                duly incorporated in its country of incorporation and remains in
                existence
                and, where appropriate, in good standing, with power to enter into,
                and
                perform its obligations under, those of the Security Documents to
                which it
                is, or is intended to be, a party, including (without limitation)
                a copy,
                certified by a director or an officer of the Security Party in question
                as
                true, complete, accurate and unamended, of all documents establishing
                or
                limiting the constitution of each Security Party.
                

            

    

     

    
      	 	
              3.1.2

            	
              Corporate
                authorities A
                copy, certified by a director or any duly authorised officer of the
                Security Party in question as true, complete, accurate and neither
                amended
                nor revoked, of a resolution of the directors of each Security Party
                (together, where appropriate, with signed waivers of notice of any
                directors' meetings) approving, and authorising or ratifying the
                execution
                of, those of the Security Documents to which that Security Party
                is or is
                intended to be a party and all matters incidental thereto.
                

            

    

     

    
      	 	
              3.1.3

            	
              Officer's
                certificate A
                certificate (i) signed by a duly authorised officer or representative
                of
                each of the Security Parties setting out the names of the directors
                and
                officers of that Security Party and (ii) issued by each Security
                Party's
                company registry confirming due incorporation and valid existence
                and
                (when such information is maintained by the registry) the names of
                its
                directors and shareholders.

            

    

     

    
      
        
        

      

      
        35

        
          

        

      

      
        
        

      

    

    
      	 	
              3.1.4

            	
              Power
                of attorney The
                power of attorney (notarially attested and legalised, if necessary,
                for
                registration purposes) of each of the Security Parties under which
                any
                documents are to be executed or transactions undertaken by that Security
                Party.

            

    

     

    
      	 	
              3.1.5

            	
              The
                Security Documents The
                Security Documents, together with all notices and other documents
                required
                by any of them, duly executed.

            

    

     

    
      	 	
              3.1.6

            	
              Drawdown
                Notice A
                duly completed Drawdown Notice.

            

    

     

    
      	 	
              3.1.7

            	
              Process
                agent A
                letter from Gulf Offshore N.S. Limited accepting their appointment
                by each
                of the Security Parties as agent for service of Proceedings pursuant
                to
                the Security Documents.

            

    

     

    
      	 	
              3.1.8

            	
              Legal
                opinions Confirmation
                satisfactory to the Agent that all legal opinions required by the
                Agent
                and the Finance Parties will be given substantially in the form required
                by the Agent and the Finance
                Parties.

            

    

     

    
      	 	
              3.1.9

            	
              Consents
                A
                certificate from the Borrower that all (if any) consents, licences,
                approvals and authorisations of, or registrations with or declarations
                to,
                any governmental authority, bureau or agency which may be required
                in
                connection with the Security Documents have been made or obtained
                and
                remain in full force and effect.

            

    

     

    
      	 	
              3.1.10

            	
              Fee
                Letter The
                Fee Letter duly signed and payment of all fees that have fallen due
                thereunder.

            

    

     

    
      	 	
              3.1.11

            	
              Accounts
                The
                audited consolidated accounts for the Borrower for the year ended
                2005.

            

    

     

    
      	 	
              3.1.12

            	
              Evidence
                of Owner's title Evidence
                that on the date of the Drawing (i) the Mortgaged Vessels and the
                Negative
                Pledged Vessels are registered under the flag stated in Schedule
                2 Part I
                and Schedule 2 Part III in the ownership of the relevant Owners and
                (ii)
                the relevant Mortgages will be capable of being immediately registered
                against the Mortgaged Vessels with first
                priority.

            

    

     

    
      	 	
              3.1.13

            	
              Evidence
                of insurance Evidence
                that the Vessels are insured in the manner required by the Security
                Documents and that letters of
                undertaking

            

    

     

    
      
        
        

      

      
        36

        
          

        

      

      
        
        

      

    

    will
      be
      issued in the manner required by the Security Documents, together with a written
      opinion on the Insurances from an insurance adviser appointed by the
      Agent.

     

    
      	 	
              3.1.14

            	
              Confirmation
                of class A Certificate
                of Confirmation of Class for hull and machinery confirming that the
                Mortgaged Vessels and the Negative Pledged Vessels are classed with
                the
                highest class applicable to vessels of her type with a Pre-Approved
                Classification Society.

            

    

     

    
      	 	
              3.1.15

            	
              Vessel
                Documents Photocopies,
                certified as true, accurate and complete by an authorised signatory
                of the
                Borrower, of:

            

    

     

    (i) current
      SMC of each of the Vessels; and

     

    (ii) each
      ISM
      Company's current DOC,

     

    
      	 	 	
              in
                each case together with all addenda, amendments or
                supplements.

            

    

     

    3.1.16 Valuations
      Valuation in respect of m.v. "SEA GUARDIAN". 

     

    
      	 	
              3.2

            	
              Conditions
                Precedent
                -
                Subsequent
                Drawings (other than Delivery Drawings) Before
                any Bank shall have any obligation to advance any subsequent Drawings
                (other than Delivery Drawings) under the Facility and/or the Issuer
                has
                any obligation to issue any further LC, the Borrower shall deliver
                or
                cause to be delivered to the order of the
                Agent:

            

    

     

    3.2.1 Officer's
      certificate
      A
      certificate signed by a duly authorised officer of each Security Party dated
      no
      later than five (5) Business Days before the date of the Drawing confirming
      that
      none of the documents and evidence delivered to the Agent pursuant to Clauses
      3.1.1, 3.1.2, 3.1.3 and 3.1.4 has been amended, modified or revoked in any
      way
      since its delivery to the Agent. 

     

    3.2.2 Drawdown
      Notice
      Drawdown
      Notice or an Issue Request (as applicable).

     

    3.3 Conditions
      Precedent - Delivery Drawings
      

     

    3.3.1  Officer's
      certificate
      A
      certificate signed by a duly authorised officer of each Security Party dated
      no
      later than five (5) Business Days before the 

     

    
      
        
        

      

      
        37

        
          

        

      

      
        
        

      

    

    Delivery
      Date confirming that none of the documents and evidence delivered to the Agent
      pursuant to Clauses 3.1.1, 3.1.2, 3.1.3 and 3.1.4 has been amended, modified
      or
      revoked in any way since its delivery to the Agent.

     

    3.3.2 Vessel
      documents
      Photocopies, certified as true, accurate and complete by a director or the
      secretary of the Borrower, of:

     

    
      	 	
              (i)

            	
              the
                builder's certificate and/or bill of sale transferring title in the
                relevant Newbuilding to the Borrower free of all encumbrances, maritime
                liens or other debts;

            

    

     

    
      	 	
              (ii)

            	
              the
                protocol of delivery and acceptance evidencing the unconditional
                physical
                delivery of the relevant Newbuilding by the relevant Builder to the
                Borrower pursuant to the relevant Building
                Contract;

            

    

     

    
      	 	
              (iii)

            	
              the
                commercial invoice issued by the relevant Builder in respect of the
                final
                contract price of the relevant
                Newbuilding;

            

    

     

    
      	 	
              (iv)

            	
              the
                relevant Newbuilding's current Certificate of Financial Responsibility
                issued pursuant to the United States Oil Pollution Act
                1990;

            

    

     

    
      	 	
              (v)

            	
              the
                relevant Newbuilding's current SMC;

            

    

     

    
      	 	
              (vi)

            	
              the
                ISM Company's current DOC;

            

    

     

    
      	 	
              (vii)

            	
              the
                relevant Newbuilding's current
                ISSC;

            

    

     

    
      	 	
              (viii)

            	
              the
                relevant Newbuilding's current
                IAPPC;

            

    

     

    in
      each
      case together with all addenda, amendments or supplements.

     

    3.3.3 Evidence
      of Borrower's title Evidence
      that on the Delivery Date (i) the relevant Newbuilding will be at least
      provisionally registered under the flag stated in Schedule 2 Part II, or an
      alternative flag acceptable to the Agent in its absolute discretion, in the
      ownership of the Borrower and (ii) the 

     

    
      
        
        

      

      
        38

        
          

        

      

      
        
        

      

    

    Mortgage
      will be capable of being registered against the relevant Newbuilding with first
      priority.

     

    3.3.4 Evidence
      of insurance Evidence
      that the relevant Newbuilding is insured in the manner required by the Security
      Documents and that letters of undertaking will be issued in the manner required
      by the Security Documents, together with (if required by the Agent) the written
      approval of the Insurances by an insurance adviser appointed by the
      Agent.

     

    3.3.5 Confirmation
      of class An
      interim Certificate of Confirmation of Class for hull and machinery confirming
      that the relevant Newbuilding is classed with the highest class applicable
      to
      vessels of her type with Lloyd's Register of Shipping or such other
      classification society as may be acceptable to the Agent.

     

    3.3.6 Valuation
      A
      Valuation of the relevant Newbuilding.

     

    3.3.7 Security
      Documents The
      Mortgage and the Assignment for the relevant Newbuilding together with all
      other
      documents required by any of them, including, without limitation, all notices
      of
      assignment and/or charge and evidence that those notices will be duly
      acknowledged by the recipients.

     

    
      	 	
              3.3.8

            	
              Legal
                Opinions Confirmation
                satisfactory to the Agent that all legal opinions required by the
                Agent on
                behalf of the Finance Parties will be given substantially in the
                form
                required by the Agent on behalf of the Finance
                Parties.

            

    

     

    3.3.9 Drawdown
      Notice
      A duly
      completed Drawdown Notice.

     

    
      	 	
              3.3.10

            	
              Process
                agent A
                letter from Gulf Offshore N.S. Limited accepting their appointment
                by each
                of the Security Parties as agent for service of Proceedings pursuant
                to
                the Security Documents.

            

    

     

    3.4 Conditions
      Subsequent
      The
      Borrower undertakes to deliver or to cause to be delivered to the Agent on,
      or,
      in respect of Clause 3.4.1 and Clause 3.4.3 not later than ten (10) days, or
      in
      respect of Clause 3.4.2 not later than fifteen (15) Business Days, or such
      other
      period as the Agent may have consented to after, the 

     

    
      
        
        

      

      
        39

        
          

        

      

      
        
        

      

    

    earlier
      of the first Advance Date and the First Issue Date, or the relevant Delivery
      Date (as the case may be) the following additional documents and
      evidence:-

     

    
      	 	
              3.4.1

            	
              Letters
                of undertaking
                Letters of undertaking in respect of the Insurances as required by
                the
                Security Documents together with copies of the relevant policies
                or cover
                notes or entry certificates duly endorsed with the interest of the
                Agent.
                

            

    

     

    
      	 	
              3.4.2

            	
              Evidence
                of Owner's title
                Certificates of ownership and encumbrance (or equivalent) issued
                by the
                Registrar of Ships (or equivalent official) of the relevant Vessel's
                flag
                state confirming that (a) the Vessels are permanently registered
                under
                that flag in the ownership of the relevant Owner (b) the Mortgages
                have
                been registered with first priority against the Mortgaged
                Vessels
                or the relevant Newbuilding (as the case may be, following delivery
                to the
                Borrower) and (c) there are no further Encumbrances registered against
                the
                Vessels.

            

    

     

    
      	 	
              3.4.3

            	
              Evidence
                of UCC filing
                Evidence that financing
                statement pursuant to the UCC in respect of the Assignments entered
                into
                between the Borrower and the Agent have been filed.
                

            

    

     

    
      	 	
              3.5

            	
              No
                waiver If
                the Banks in their sole discretion agree to advance any part of the
                Facility to the Borrower or if the Issuer agrees in its sole discretion
                to
                issue an LC before all of the documents and evidence required by
                Clause
                3.1 or Clause 3.2 or Clause 3.3 (as the case may be) have been delivered
                to or to the order of the Agent, the Borrower undertakes to deliver
                all
                outstanding documents and evidence to or to the order of the Agent
                no
                later than the date agreed by the Agent and the Borrower and the
                advance
                of any part of the Facility or the issue of an LC shall not be taken
                as a
                waiver of the Agent's right to require production of all the documents
                and
                evidence required by Clause 3.1 or Clause 3.2 or Clause 3.3 (as the
                case
                may be).

            

    

     

    
      	 	
              3.6

            	
              Form
                and content All
                documents and evidence delivered to the Agent pursuant to this Clause
                shall:- 

            

    

     

    
      	 	
              3.6.1

            	
              be
                in form and substance reasonably acceptable to the Agent;
                

            

    

     

    
      
        
        

      

      
        40

        
          

        

      

      
        
        

      

    

    
      	 	
              3.6.2

            	
              be
                accompanied, if required by the Agent, by translations into the English
                language, certified in a manner acceptable to the Agent acting reasonably;
                

            

    

     

    
      	 	
              3.6.3

            	
              if
                required for registration purposes, be certified, notarised, legalised
                or
                attested in a manner acceptable for
                registration.

            

    

     

    
      	4  	
              Representations
                and Warranties

            

    

     

    The
      Borrower represents and warrants to each of the Finance Parties at the Execution
      Date and (by reference to the facts and circumstances then pertaining) at the
      date of each Drawdown Notice, at each Advance Date, at each Issue Date and
      at
      each Interest Payment Date as follows (except that the representation and
      warranty contained at Clause 4.17 shall only be made on the first Advance Date
      and that the representation and warranty contained at Clause 4.9 shall only
      be
      made on the Execution Date) :-

     

    
      	 	
              4.1

            	
              Incorporation
                and capacity Each
                of the Security Parties is a body corporate duly constituted, organised
                and validly existing and (where applicable) in good standing under
                the law
                of its country of incorporation, in each case with perpetual
                corporate existence and the power to sue and be sued, to own its
                assets
                and to carry on its business, and all of the corporate shareholders
                (if
                any) of each Security Party are duly constituted and existing under
                the
                laws of their countries of incorporation with perpetual corporate
                existence and the power to sue and be sued, to own their assets and
                to
                carry on their business and are acting on their own
                account.

            

    

     

    
      	 	
              4.2

            	
              Solvency
                None
                of the Security Parties is insolvent or in liquidation or administration
                or subject to any other insolvency procedure, and no receiver,
                administrative receiver, administrator, liquidator, trustee or analogous
                officer has been appointed in respect of any of the Security Parties.
                For
                this purpose a Security Party will be deemed insolvent if it is unable
                to
                pay its debts within the meaning of S.123 of the Insolvency Act
                1986.

            

    

     

    
      	 	
              4.3

            	
              Binding
                obligations The
                Security Documents when duly executed and delivered will constitute
                the
                legal, valid and binding obligations of the Security Parties enforceable
                in accordance with their respective terms subject to applicable laws
                regarding creditors' rights in
                general.

            

    

     

    
      
        
        

      

      
        41

        
          

        

      

      
        
        

      

    

    
      	 	
              4.4

            	
              Satisfaction
                of conditions All
                acts, conditions and things required to be done and satisfied and
                to have
                happened prior to the execution and delivery of the Security Documents
                in
                order to constitute the Security Documents the legal, valid and binding
                obligations of the Security Parties in accordance with their respective
                terms have been done, satisfied and have happened in compliance with
                all
                applicable laws.

            

    

     

    
      	 	
              4.5

            	
              Registrations
                and consents All
                (if any) consents, licences, approvals and authorisations of, or
                registrations with or declarations to, any governmental authority,
                bureau
                or agency which may be required in connection with the execution,
                delivery, performance, validity or enforceability of the Security
                Documents have been obtained or made and remain in full force and
                effect
                and the Borrower is not aware of any event or circumstance which
                could
                reasonably be expected adversely to affect the right of any of the
                Security Parties to hold and/or obtain renewal of any such consents,
                licences, approvals or
                authorisations.

            

    

     

    
      	 	
              4.6

            	
              Disclosure
                of material facts The
                Borrower is not aware of any material facts or circumstances which
                have
                not been disclosed to the Agent and which might, if disclosed, have
                reasonably been expected to adversely affect the decision of a person
                considering whether or not to make facilities of the nature contemplated
                by this Agreement available to the
                Borrower.

            

    

     

    
      	 	
              4.7

            	
              No
                material litigation There
                is no action, suit, arbitration or administrative proceeding nor
                any
                contemplated action, suit, arbitration or administrative proceeding
                pending or to its knowledge about to be pursued before any court,
                tribunal
                or governmental or other authority which is not covered by adequate
                insurance which would, or would be likely to, have a Material Adverse
                Effect.

            

    

     

    
      	 	
              4.8

            	
              No
                breach of law or contract The
                execution, delivery and performance of the Security Documents will
                not
                contravene any contractual restriction or any law binding on any
                of the
                Security Parties or on any shareholder (whether legal or beneficial)
                of
                any of the Security Parties, or the constitutional documents of any
                of the
                Security Parties, nor result in the creation of, nor oblige any of
                the
                Security Parties to create, any Encumbrance over all or any of its
                assets,
                with the exception of the Encumbrances created by or pursuant to
                the
                Security Documents and Permitted
                Liens.

            

    

     

    
      
        
        

      

      
        42

        
          

        

      

      
        
        

      

    

    
      	 	
              4.9

            	
              No
                deductions
                To
                the best of its knowledge belief and without undue enquiry, none
                of the
                Security Parties is required to make any deduction or withholding
                from any
                payment which it may be obliged to make to any of the Finance Parties
                under or pursuant to the Security
                Documents.

            

    

     

    
      	 	
              4.10

            	
              Use
                of Facility
                The Facility will be used for the purpose specified in the
                recital.

            

    

     

    
      	 	
              4.11

            	
              Material
                Adverse Change
                There has been no change in the business, assets, operations or condition
                (financial or otherwise) of any of the Security Parties or in the
                facts
                and information regarding such entities as represented to date which
                constitutes a Material Adverse
                Effect.

            

    

     

    
      	 	
              4.12

            	
              No
                default
                None of the Security Parties is in default of its obligations under
                any
                other financing documents to which it is a party to an extent or
                in a
                manner which might have a Material Adverse Effect on the business
                or
                condition (financial or otherwise) of that Security Party and no
                Event of
                Default is continuing or might reasonably be expected to result from
                the
                advance of any Drawing or the issue of an
                LC.

            

    

     

    
      	 	
              4.13

            	
              Pari
                passu ranking
                The payment obligations of each of the Security Parties under the
                Security
                Documents to which it is a party rank at least pari passu with the
                claims
                of all its other unsecured and unsubordinated creditors, except for
                obligations mandatorily preferred by law applying to companies
                incorporated in the relevant Security Party's country of incorporation
                or
                otherwise applicable to that Security
                Party.

            

    

     

    
      	 	
              4.14

            	
              No
                Immunity
                In
                any proceedings taken in any of the Security Parties' respective
                jurisdictions of incorporation in relation to any of the Security
                Documents, none of the Security Parties will be entitled to claim
                for
                itself or any of its assets immunity from suit, execution, attachment
                or
                other legal process.

            

    

     

    
      	 	
              4.15

            	
              Governing
                Law and Judgments
                In
                any proceedings taken in any of the Security Parties' jurisdiction
                of
                incorporation or organisation in relation to any of the Security
                Documents
                in which there is an express choice of the law, the submission to
                that
                jurisdiction 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.

            

    

     

    
      
        
        

      

      
        43

        
          

        

      

      
        
        

      

    

    
      	 	
              4.16

            	
              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 each of the Security
                Parties lawfully to enter into, exercise its rights under and perform
                and
                comply with the obligations expressed to be assumed by it in the
                Security
                Documents, (b) to ensure that the obligations expressed to be assumed
                by
                each of the Security Parties in the Security Documents are legal,
                valid
                and binding and (c) to make the Security Documents admissible in
                evidence
                in the jurisdictions of incorporation or organization of each of
                the
                Security Parties, have been done, fulfilled and
                performed.

            

    

     

    
      	 	
              4.17

            	
              No
                Filing or Stamp Taxes Under
                the laws of the Security Parties' respective jurisdictions of
                incorporation or organisation in force at the date hereof, it is
                not
                necessary that any of the Security 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, the maritime registry in Panama, or UCC filings
                in
                respect of the Assignments entered into between the Borrower and
                the Agent
                to the extent applicable) or that any stamp, registration or similar
                tax
                be paid on or in relation to any of the Security
                Documents.

            

    

     

    
      	 	
              4.18

            	
              Accounts
                The
                first set of Accounts and all other annual financial statements relating
                to the Group required to be delivered, were prepared in accordance
                with
                GAAP, 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 accounts) the financial condition of the Group
                at the
                date as of which they were prepared and the results of the Group’s
                operations during the financial period then
                ended.

            

    

     

    
      	 	
              4.19

            	
              Ownership
                and Security

            

    

     

    
      	 	
              4.19.1

            	
              The
                English Owner is a wholly owned subsidiary of the Borrower;
                and

            

    

     

    4.19.2 Each
      of
      the Security Parties 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 

     

    
      
        
        

      

      
        44

        
          

        

      

      
        
        

      

    

    effective
      Security having the ranking expressed in those Security Documents.

     

    4.20 Money
      Laundering Any
      amount borrowed hereunder, and the performance of the obligations of the
      Security Parties under the Security Documents, will be for the account of
      members of the Group and will not involve any breach by any of them 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.

     

    
      	 	
              4.21

            	
              ERISA
                Event, Margin Stock and "Investment
                Company"

            

    

     

    
      	 	
              4.21.1

            	
              No
                ERISA Event has occurred or is reasonably expected to occur in relation
                to
                the Borrower that, when taken together with all other such ERISA
                Events
                for which liability is reasonably expected to occur, would result
                in a
                Material Adverse Effect; the present value of all accumulated benefit
                obligations under each Employee Plan (based on the assumptions used
                for
                purposes of Statement of Financial Accounting Standards No. 87) did
                not,
                as of the date of its most recent financial statements, reflecting
                such
                amounts, exceed the fair market value of the assets of such Employee
                Plan
                by an amount that would have a Material Adverse Effect; and the present
                value of all accumulated benefit obligations of all underfunded Employee
                Plans (based on the assumptions used for purposes of Statement of
                Financial Accounting Standards No. 87) did not, as of the date of
                the most
                recent financial statements reflecting such amounts, exceed the fair
                market value of the assets of all such underfunded Employee Plans
                by an
                amount that would have a Material Adverse
                Effect;

            

    

     

    
      	 	
              4.21.2

            	
              The
                Borrower is not engaged nor will it engage principally, or as one
                of its
                important activities, in the business of owning or extending credit
                for
                the purpose of "buying" or "carrying" any Margin
                Stock;

            

    

     

    
      	 	
              4.21.3

            	
              None
                of the proceeds of the Facility nor a LC will be used, directly or
                indirectly, for the purpose of buying or carrying any Margin Stock,
                for
                the purpose of reducing or retiring any Financial Indebtedness that
                was
                originally incurred to "buy" or "carry" any Margin Stock or for any
                other
                

            

    

     

    
      
        
        

      

      
        45

        
          

        

      

      
        
        

      

    

    purpose
      which might cause the Facility or a LC to be considered a "purpose credit"
      within the meaning of Regulation U or Regulation X; and

     

    
      	 	
              4.21.4

            	
              The
                Borrower is not an "investment company" as such term is defined in
                the
                Investment Company Act of 1940 of the United States (the 1940 Act)
                or
                otherwise subject to regulation under the 1940 Act or subject to
                regulation under the Public Utility Holding Company Act of 1935 of
                the
                United States, the Federal Power Act of 1935 of the United States
                or the
                1940 Act or any United States federal or state statute or regulation
                restricting or limiting its ability to incur
                indebtedness.

            

    

     

    
      	5  	
              Repayment,
                Prepayment
                and Currency Option

            

    

     

    
      	 	
              5.1

            	
              Repayment
                Each
                Drawing shall be repaid by the Borrower to the Agent on behalf of
                the
                Banks on the last day of its Interest Period unless the Borrower
                selects a
                further Interest Period for that Drawing in accordance with Clause
                6,
                provided that the Borrower shall not be permitted to select such
                further
                Interest Period if an Event of Default or Potential Event of Default
                has
                occurred and shall then be obliged to repay such Drawing on the last
                day
                of its then current Interest Period. The Borrower shall on the Termination
                Date repay to the Agent as agent for the Banks all Facility
                Outstandings.

            

    

     

    
      	 	
              5.2

            	
              Prepayment
                The
                Borrower may prepay the Facility Outstandings in whole or in part
                in
                integral multiples of one million Dollars ($1,000,000) (or as otherwise
                may be agreed by the Agent), each such prepayment to be of a minimum
                amount of five million Dollars ($5,000,000), provided that it has
                first
                given to the Agent not fewer than five (5) days prior written notice
                expiring on a Business Day of its intention to do so. Any notice
                pursuant
                to this Clause 5.2 once given shall be irrevocable and shall oblige
                the
                Borrower to make the prepayment referred to in the notice on the
                Business
                Day specified in the notice, together with all interest accrued on
                the
                amount prepaid up to and including that Business
                Day.

            

    

     

    
      	 	
              5.3

            	
              Mandatory
                Prepayment If
                at any time the Facility Outstandings shall exceed the Maximum Facility
                Amount the Borrower shall immediately prepay to the Agent on behalf
                of the
                Banks such amounts as will ensure that the Facility Outstandings
                do not
                exceed the Maximum Facility Amount and shall pay to the
                

            

    

     

    
      
        
        

      

      
        46

        
          

        

      

      
        
        

      

    

    Banks
      all
      interest accrued on the amount prepaid up to and including the date on which
      such prepayment occurred.

     

    
      	 	
              5.4

            	
              Prepayment
                indemnity If
                the Borrower shall make a prepayment on a Business Day other than
                the last
                day of an Interest Period, it shall pay to the Agent on behalf of
                the
                Banks such amount which is necessary to compensate the Banks for
                any Break
                Costs incurred by the Agent or any of the Banks as a result of the
                prepayment in question. 

            

    

     

    
      	 	
              5.5

            	
              Application
                of prepayments Any
                prepayment by the Borrower in an amount less than the Indebtedness
                shall
                be applied in satisfaction or reduction first of any costs and other
                expenses outstanding; secondly of all interest accrued with respect
                to the
                outstanding Drawings; and thirdly of the outstanding
                Drawings.

            

    

     

    
      	 	
              5.6

            	
              Reborrowing
                of prepayments Any
                amount prepaid pursuant to this Agreement, which for the avoidance
                of
                doubt shall exclude any amount prepaid pursuant to Clause 2.4.2,
                Clause
                2.4.3 or Clause 2.4.4, may be reborrowed in accordance with Clause
                2.2.

            

    

     

    
      	 	
              5.7

            	
              Selection
                of currency The
                Borrower may from time to time select in a written notice to the
                Agent
                given not later than 11.00am on the Quotation Day for the relevant
                Interest Period that the Facility shall be denominated for the next
                Interest Period (which may include the first Interest Period) in
                an
                Optional Currency.

            

    

     

    
      	 	
              5.8

            	
              Unavailability
                of a currency If:

            

    

     

    5.8.1 a
      Bank
      notifies the Agent that the Optional Currency requested is not readily available
      to it in the amount required; or 

     

    5.8.2 a
      Bank
      notifies the Agent that to make an advance in that Optional Currency would
      contravene a law or regulation applicable to it,

     

    the
      Agent
      will promptly give notice to the Borrower to that effect. In this event any
      Bank
      that gives notice pursuant to this Clause 5.8 will be required to
      participate in the Facility during the relevant Interest Period in the Base
      Currency (in an amount equal to that Bank's proportion of the Base Currency
      Amount) and its participation will be treated as a separate Facility denominated
      in the Base Currency during that Interest Period.

     

    
      
        
        

      

      
        47

        
          

        

      

      
        
        

      

    

    5.9 Change
      of currency If
      the
      Facility is to be denominated in different currencies during two successive
      Interest Periods:

     

    5.9.1 the
      following provisions shall apply:

     

    (a) if
      the
      currency for the second Interest Period is an Optional Currency, the amount
      of
      the Facility in that Optional Currency will be calculated by the Agent as the
      amount of that Optional Currency equal to the Base Currency Amount of the
      Facility at the Agent's Spot Rate of Exchange two (2) Business Days before
      the
      first day of the second Interest Period;

     

    (b) if
      the
      currency for the second Interest Period is the Base Currency, the amount of
      the
      Facility will be equal to the Base Currency Amount;

     

    (c) the
      Borrower shall repay the Facility on the last day of the first Interest Period
      in the currency in which it was denominated for that Interest Period;
      and

     

    (d) the
      Banks
      shall re-advance the Facility in the new currency in accordance with Clause
      5.10;

     

    5.9.2 the
      Agent
      shall:

     

    (a) apply
      the
      amount to be readvanced by the Banks under Clause 5.9.1(d) (or so much of that
      amount as is necessary) in or towards the purchase of an amount in the currency
      in which the Facility is outstanding for the first Interest Period;
      and

     

    (b) use
      the
      amount it purchases in or towards satisfaction of the Borrower's obligations
      under Clause 5.9.1(c);

     

    5.9.3 if
      the
      amount purchased by the Agent under Clause 5.9.2(a) is less than the amount
      required to be repaid by the Borrower, the Agent shall promptly notify the
      Borrower and the Borrower shall, on the last day of the first Interest Period,
      pay an amount to the Agent (for the account of the Banks) (in the currency
      of
      the Facility for the first Interest Period) equal to the
      difference;

     

    
      
        
        

      

      
        48

        
          

        

      

      
        
        

      

    

    5.9.4 if
      any
      part of the amount to be readvanced by the Banks under Clause 5.9.1(d) is not
      needed to purchase the amount required to be repaid by the Borrower, the Agent
      shall promptly notify the Borrower and pay the Borrower on the last day of
      the
      first Interest Period that part of that amount (in the new
      currency).

     

    5.10 Same
      Optional Currency during successive Interest Periods If
      the
      Facility is to be denominated in the same Optional Currency during two
      successive Interest Periods, the Agent shall calculate the amount of the
      Facility in the Optional Currency for the second of those Interest Periods
      (by
      calculating the amount of Optional Currency equal to the Base Currency Amount
      of
      the Facility at the Agent's Spot Rate of Exchange two (2) Business Days before
      the first day of the second Interest Period) and (subject to Clause
      5.10.2):

     

    (i) if
      the
      amount calculated is less than the existing amount of the Facility in the
      Optional Currency during the first Interest Period, promptly notify the Borrower
      and the Borrower shall pay to the Agent (for the account of the Banks), on
      the
      last day of the first Interest Period, an amount equal to the difference;
      or

     

    (ii) if
      the
      amount calculated is more than the existing amount of the Facility in the
      Optional Currency during the first Interest Period, if no Event of Default
      is
      continuing, each Bank shall, on the last day of the first Interest Period,
      pay
      to the Borrower through the Agent its participation in an amount equal to the
      difference;

     

    
      	 	
              5.11

            	
              Agent's
                calculations All
                calculations made by the Agent under this Clause 5 will take into
                account
                any repayment or prepayment of the Facility to be made on the last
                day of
                the first Interest Period.

            

    

     

    
      	6  	
              Interest

            

    

     

    
      	 	
              6.1

            	
              Interest
                Periods
                The period during which any Drawing shall be outstanding pursuant
                to this
                Agreement shall be divided into consecutive Interest Periods of one,
                three
                or six months' duration, as selected by the Borrower by written notice
                to
                the Agent not later than 3:00 p.m. on the fourth Business Day before
                the
                beginning of the Interest Period in question, or such other duration
                as
                may be 

            

    

     

    
      
        
        

      

      
        49

        
          

        

      

      
        
        

      

    

    agreed
      by
      the Banks in their discretion. No more than three one (1) month Interest Periods
      may be selected by the Borrower in each twelve (12) month period during the
      Facility Period.

     

    
      	 	
              6.2

            	
              Beginning
                and end of Interest Periods The
                first Interest Period in respect of each Drawing shall begin on the
                Advance Date of that Drawing and shall end on the last day of the
                Interest
                Period selected in accordance with Clause 6.1. Any subsequent Interest
                Period selected in respect of each Drawing shall commence on the
                day
                following the last day of its previous Interest Period and shall
                end on
                the last day of its current Interest Period selected in accordance
                with
                Clause 6.1. However, in respect of any Drawings outstanding on the
                Termination Date, the Interest Period applicable to such Drawings
                shall
                end on the Termination Date.

            

    

     

    
      	 	
              6.3

            	
              Interest
                rate
                During each Interest Period, interest shall accrue on each Drawing
                at the
                rate determined by the Agent to be the aggregate of (a) the Margin
                (b)
                LIBOR (or, if the Facility is denominated in Euro, EURIBOR, or, if
                the
                Facility is denominated in NOK, NIBOR) and (c), if applicable, the
                Mandatory Cost determined at or about 11.00 a.m. (London time) on
                the
                second Business Day prior to the beginning of the Interest Period
                relating
                to that Drawing. 

            

    

     

    
      	 	
              6.4

            	
              Accrual
                and payment of interest During
                the Facility Period, interest
                shall accrue from day to day, shall be calculated on the basis of
                a 360
                day year (or, for any period when the Facility is denominated in
                Sterling
                on the basis of a 365 day year) and the actual number of days elapsed
                (or,
                in any circumstance where market practice differs, in accordance
                with the
                prevailing market practice) and shall be paid by the Borrower to
                the Agent
                on behalf of the Banks on the last day of each Interest Period and
                additionally, during any Interest Period exceeding six months, on the
                last day of each successive six month period after the beginning of
                that Interest Period.

            

    

     

    
      	 	
              6.5

            	
              Ending
                of Interest Periods If
                any Interest Period would end on a day which is not a Business Day,
                that
                Interest Period shall end on the next succeeding Business Day (unless
                the
                next succeeding Business Day falls in the next calendar month, in
                which
                event the Interest Period in question shall end on the immediately
                preceding Business Day).

            

    

     

    
      
        
        

      

      
        50

        
          

        

      

      
        
        

      

    

    6.6 Default
      Rate If
      an
      Event of Default shall occur, the whole of the Indebtedness shall, from the
      date
      of the occurrence of the Event of Default, bear interest up to the date of
      actual payment (both before and after judgment) at the Default Rate, compounded
      at such intervals as the Agent shall in its reasonable discretion determine,
      which interest shall be payable from time to time by the Borrower to the Agent
      on behalf of the Banks on demand.

     

    6.7 Absence
      of quotations
      If LIBOR
      or, if applicable, EURIBOR or NIBOR is to be determined by reference to the
      Reference Banks but a Reference Bank does not supply a quotation by 11.00 am
      (London time) in respect of LIBOR, 11.00 am (Brussels time) in respect of
      EURIBOR or 12.00 pm (Oslo time) in respect NIBOR, the applicable LIBOR, EURIBOR
      or NIBOR shall be determined on the basis of the quotations obtained from such
      other banks as may be appointed by the Agent in consultation with the Borrower.
      

     

    
      	 	
              6.8

            	
              Determinations
                conclusive Each
                determination of an interest rate made by the Agent in accordance
                with
                Clause 6 shall (save in the case of manifest error or on any question
                of law) be final and conclusive.

            

    

     

    
      	7  	
              Fees

            

    

     

    
      	 	
              7.1

            	
              The
                Borrower shall pay to the Agent for distribution to the Banks Commitment
                Commission at the rate of forty per centum (40%) of the applicable
                Margin
                on any undrawn and uncancelled part of the Facility. The Commitment
                Commission will accrue from day to day on the basis of a 360 day
                year and
                the actual number of days elapsed and shall be paid quarterly in
                arrears
                from 15 March 2006 until the Commitment Termination Date with a pro
                rata
                payment being due and payable on the Commitment Termination
                Date.

            

    

     

    
      	 	
              7.2

            	
              The
                Borrower shall pay to the Agent the fees detailed in the Fee
                Letter.

            

    

     

    
      	 	
              7.3

            	
              The
                Borrower shall pay to the Issuer an LC fee calculated at the rate
                of the
                Margin on the LC Amount from time to time. The accrued LC fee is
                payable
                quarterly in arrears and on the basis of a 360 day year and the actual
                number of days elapsed.

            

    

     

    
      	 	
              7.4

            	
              All
                fees and commissions hereunder or under the Fee Letter shall be calculated
                by reference to, and payable in, the Base
                Currency.

            

    

     

    
      
        
        

      

      
        51

        
          

        

      

      
        
        

      

    

    

     

    
      	8  	
              Security
                Documents

            

    

     

    
      	 	
              8.1

            	
              As
                security for the repayment of the Indebtedness, the Borrower will
                execute
                and deliver to the Agent or cause to be executed and delivered to
                the
                Agent, on or before the first Advance Date (or the relevant Delivery
                Date
                in the case of the Newbuildings), the following Security Documents
                in such
                forms and containing such terms and conditions as the Agent
                requires:-

            

    

     

    
      	 	
              8.1.1

            	
              the
                Mortgages
                the first priority statutory ship mortgages or first preferred naval
                mortgages (as the case may be) over each of the Vessels executed
                by the
                Borrower. 

            

    

     

    
      	 	
              8.1.2

            	
              the
                Assignments
                the assignments of the Insurances and Requisition Compensation in
                respect
                of each of the Vessels executed by the relevant Owners.
                

            

    

     

    
      	 	
              8.1.3

            	
              Declaration
                of Negative Pledge
                the declaration of negative pledge in respect of the Negative Pledged
                Vessels entered into by the English
                Owner.

            

    

     

    
      	9  	
              Agency
                and Trust

            

    

     

    
      	 	
              9.1

            	
              Appointment
                Each
                of the Finance Parties appoints the Agent its agent for the purpose
                of
                administering the Facility and the Security Documents and authorises
                the
                Agent and its directors, officers, employees and agents acting on
                the
                instructions from time to time of the Majority Banks, and subject
                to
                Clauses 9.4 and 9.19, to execute the Security Documents on its behalf
                and
                to exercise all rights, powers, discretions and remedies vested in
                the
                Banks under or pursuant to the Security Documents, together with
                all
                powers reasonably incidental to them.

            

    

     

    
      	 	
              9.2

            	
              Authority
                Each
                of the Finance Parties irrevocably authorises the Agent, acting on
                the
                instructions from time to time of the Majority Banks (save where
                the terms
                of any Security Document expressly require the instructions of all
                of the
                Banks):- 

            

    

     

    
      	 	
              9.2.1

            	
              to
                give or withhold any consents or approvals; and

            

    

     

    
      	 	
              9.2.2

            	
              to
                exercise, or refrain from exercising, any discretions; and
                

            

    

     

    
      	 	
              9.2.3

            	
              to
                collect, receive, release or pay any
                money;

            

    

     

     

     

    
      
        
        

      

      
        52

        
          

        

      

      
        
        

      

    

    under
      or
      pursuant to any of the Security Documents. The Agent shall have no duties or
      responsibilities as agent or as security trustee other than those expressly
      conferred on it by the Security Documents and shall not be obliged to act on
      any
      instructions if to do so would, in the opinion of the Agent, be contrary to
      any
      provision of the Security Documents or to any law, or would expose the Agent
      to
      any actual or potential liability to any third party.

     

    
      	 	
              9.3

            	
              Trust
                The
                Agent agrees and declares, and each of the Banks acknowledges, that,
                subject to the terms and conditions of this Clause, the Agent holds
                the
                Trust Property on trust for (i) the Banks, in accordance with their
                respective Proportionate Shares and (ii) the Issuer absolutely. Each
                of
                the Finance Parties agrees that the obligations, rights and benefits
                vested in the Agent in its capacity as security trustee shall be
                performed
                and exercised in accordance with this Clause. The Agent in its capacity
                as
                security trustee shall have the benefit of all of the provisions
                of this
                Agreement benefiting it in its capacity as agent for the Finance
                Parties,
                and all the powers and discretions conferred on trustees by the Trustee
                Act 1925 (to the extent not inconsistent with this Agreement). In
                addition:-

            

    

     

    
      	 	
              9.3.1

            	
              the
                Agent (and any attorney, agent or delegate of the Agent) may indemnify
                itself or himself out of the Trust Property against all liabilities,
                costs, fees, damages, charges, losses and expenses sustained or incurred
                by it or him in relation to the taking or holding of any of the Trust
                Property or in connection with the exercise or purported exercise
                of the
                rights, trusts, powers and discretions vested in the Agent or any
                other
                such person by or pursuant to the Security Documents or in respect
                of
                anything else done or omitted to be done in any way relating to the
                Security Documents other than as a result of its gross negligence
                or
                wilful misconduct; and

            

    

     

    
      	 	
              9.3.2

            	
              the
                Finance Parties acknowledge that the Agent shall be under no obligation
                to
                insure any property nor to require any other person to insure any
                property
                and shall not be responsible for any loss which may be suffered by
                any
                person as a result of the lack or insufficiency of any insurance;
                and

            

    

     

    
      
        
        

      

      
        53

        
          

        

      

      
        
        

      

    

    
      	 	
              9.3.3

            	
              the
                Agent and the Finance Parties agree that the perpetuity period applicable
                to the trusts declared by this Agreement shall be the period of eighty
                years from the Execution Date.

            

    

     

    9.4 Limitations
      on authority Except
      with the prior written consent of each of the Banks, the Agent shall not be
      entitled to :-

     

    
      	 	
              9.4.1

            	
              release
                or vary any security given for the Borrower's obligations under this
                Agreement; nor

            

    

     

    
      	 	
              9.4.2

            	
              agree
                to waive the payment of any sum of money payable by any of the Security
                Parties under the Security Documents;
                nor

            

    

     

    
      	 	
              9.4.3

            	
              change
                the meaning of the expression "Majority
                Banks";
                nor

            

    

     

    
      	 	
              9.4.4

            	
              exercise,
                or refrain from exercising, any discretion, or give or withhold any
                consent, the exercise or giving of which is, by the terms of this
                Agreement, expressly reserved to the Banks;
                nor

            

    

     

    
      	 	
              9.4.5

            	
              extend
                the due date for the payment of any sum of money payable by any of
                the
                Security Parties under the Security Documents;
                nor

            

    

     

    
      	 	
              9.4.6

            	
              take
                or refrain from taking any step if the effect of such action or inaction
                may lead to the increase of the obligations of a Bank under any of
                the
                Security Documents; nor

            

    

     

    
      	 	
              9.4.7

            	
              agree
                to change the currency in which any sum is payable under the Security
                Documents; nor

            

    

     

    
      	 	
              9.4.8

            	
              agree
                to amend this Clause 9.4; nor

            

    

     

    
      	 	
              9.4.9

            	
              agree
                to reduce the rate under the definitions of "Margin"
                "Commitment
                Commission"
                or "Default
                Rate".

            

    

     

    
      	 	
              9.5

            	
              Liability
                Neither
                the Agent nor any of its directors, officers, employees or agents
                shall be
                liable to any of the other Finance Parties for anything done or omitted
                to
                be done by the Agent under or in connection with the Security Documents
                unless as a result of the Agent's wilful misconduct or gross
                negligence.

            

    

     

    
      
        
        

      

      
        54

        
          

        

      

      
        
        

      

    

    
      	 	
              9.6

            	
              Acknowledgement
                Each
                of the Finance Parties (other than the Agent) acknowledges that:-
                

            

    

     

    
      	 	
              9.6.1

            	
              it
                has not relied on any representation made by the Agent or any of
                the
                Agent's directors, officers, employees or agents or by any other
                person
                acting or purporting to act on behalf of the Agent to induce it to
                enter
                into any of the Security Documents;

            

    

     

    
      	 	
              9.6.2

            	
              it
                has made and will continue to make without reliance on the Agent,
                and
                based on such documents and other evidence as it considers appropriate,
                its own independent investigation of the financial condition and
                affairs
                of the Security Parties in connection with the making and continuation
                of
                the Facility; 

            

    

     

    
      	 	
              9.6.3

            	
              it
                has made its own appraisal of the creditworthiness of the Security
                Parties;

            

    

     

    
      	 	
              9.6.4

            	
              the
                Agent shall not have any duty or responsibility at any time to provide
                it
                with any credit or other information relating to any of the Security
                Parties unless that information is received by the Agent pursuant
                to the
                express terms of the Security Documents.

            

    

     

    Each
      of
      the Finance Parties (other than the Agent) agrees that it will not assert nor
      seek to assert against any director, officer, employee or agent of the Agent
      or
      against any other person acting or purporting to act on behalf of the Agent
      any
      claim which it might have against them in respect of any of the matters referred
      to in this Clause.

     

    
      	 	
              9.7

            	
              Limitations
                on responsibility The
                Agent shall have no responsibility to any of the Security Parties
                or to
                any of the other Finance Parties on account of:-
                

            

    

     

    
      	 	
              9.7.1

            	
              the
                failure of any of the Finance Parties or of any of the Security Parties
                to
                perform any of their respective obligations under the Security Documents;
                

            

    

     

    
      	 	
              9.7.2

            	
              the
                financial condition of any of the Security Parties;
                

            

    

     

    
      	 	
              9.7.3

            	
              the
                completeness or accuracy of any statements, representations or warranties
                made in or pursuant to any of the Security Documents, or in
                

            

    

     

    
      
        
        

      

      
        55

        
          

        

      

      
        
        

      

    

    or
      pursuant to any document delivered pursuant to or in connection with any of
      the
      Security Documents; 

     

    
      	 	
              9.7.4

            	
              the
                negotiation, execution, effectiveness, genuineness, validity,
                enforceability, admissibility in evidence or sufficiency of any of
                the
                Security Documents or of any document executed or delivered pursuant
                to or
                in connection with any of the Security
                Documents.

            

    

     

    9.8 The
      Agent's rights The
      Agent
      may:-

     

    
      	 	
              9.8.1

            	
              assume
                that all representations or warranties made or deemed repeated by
                any of
                the Security Parties in or pursuant to any of the Security Documents
                are
                true and complete, unless, in its capacity as the Agent, it has acquired
                actual knowledge to the contrary;
                and

            

    

     

    
      	 	
              9.8.2

            	
              assume
                that no Event of Default or Potential Event of Default has occurred
                unless, in its capacity as the Agent, it has acquired actual knowledge
                to
                the contrary; and 

            

    

     

    
      	 	
              9.8.3

            	
              rely
                on any document or Communication believed by it to be genuine;
                and

            

    

     

    
      	 	
              9.8.4

            	
              rely
                as to legal or other professional matters on opinions and statements
                of
                any legal or other professional advisers selected or approved by
                it;
                and

            

    

     

    
      	 	
              9.8.5

            	
              rely
                as to any factual matters which might reasonably be expected to be
                within
                the knowledge of any of the Security Parties on a certificate signed
                by or
                on behalf of that Security Party;
                and

            

    

     

    
      	 	
              9.8.6

            	
              refrain
                from exercising any right, power, discretion or remedy unless and
                until
                instructed to exercise that right, power, discretion or remedy and
                as to
                the manner of its exercise by the Banks (or, where applicable, by
                the
                Majority Banks) and unless and until the Agent has received from
                the Banks
                any payment which the Agent may require on account of, or any security
                which the Agent may require for, any costs, claims, expenses (including
                legal and other professional fees) and liabilities
                

            

    

     

    
      
        
        

      

      
        56

        
          

        

      

      
        
        

      

    

    which
      it
      considers it may incur or sustain in complying with those
      instructions.

     

    
      	 	
              9.9

            	
              The
                Agent's duties The
                Agent shall:-

            

    

     

    
      	 	
              9.9.1

            	
              if
                requested in writing to do so by a Bank, make enquiry and advise
                the Banks
                as to the performance or observance of any of the provisions of the
                Security Documents by any of the Security Parties or as to the existence
                of an Event of Default; and

            

    

     

    
      	 	
              9.9.2

            	
              inform
                the Banks promptly of any Event of Default of which the Agent has
                actual
                knowledge.

            

    

     

    
      	 	
              9.10

            	
              No
                deemed knowledge The
                Agent shall not be deemed to have actual knowledge of the falsehood
                or
                incompleteness of any representation or warranty made or deemed repeated
                by any of the Security Parties or actual knowledge of the occurrence
                of
                any Event of Default or Potential Event of Default unless a Bank
                or any of
                the Security Parties shall have given written notice thereof to the
                Agent.

            

    

     

    
      	 	
              9.11

            	
              Other
                business The
                Agent may, without any liability to account to the Banks, generally
                engage
                in any kind of banking or trust business with any of the Security
                Parties
                or any of their respective Subsidiaries or associated companies or
                with a
                Bank as if it were not the Agent.

            

    

     

    
      	 	
              9.12

            	
              Agent's
                Indemnity The
                Banks shall, promptly on the Agent's request, reimburse the Agent
                in their
                respective Proportionate Shares, for, and keep the Agent fully indemnified
                in respect of:- 

            

    

     

    
      	 	
              9.12.1

            	
              all
                amounts payable by the Borrower to the Agent pursuant to Clause 17
                (other
                than under Clauses 17.3 and 17.4) to the extent that those amounts
                are not
                paid by the Borrower; 

            

    

     

    
      	 	
              9.12.2

            	
              all
                liabilities, damages, costs and claims sustained or incurred by the
                Agent
                in connection with the Security Documents, or the performance of
                its
                duties and obligations, or the exercise of its rights, powers, discretions
                or remedies under or pursuant to any of the Security Documents; or
                in
                connection with any action taken or omitted by the Agent under or
                pursuant
                to any of the Security Documents, unless in

            

    

     

    
      
        
        

      

      
        57

        
          

        

      

      
        
        

      

    

    any
      case
      those liabilities, damages, costs or claims arise solely from the Agent's wilful
      misconduct or gross negligence.

     

    
      	 	
              9.13

            	
              Employment
                of agents In
                performing its duties and exercising its rights, powers, discretions
                and
                remedies under or pursuant to the Security Documents, the Agent shall
                be
                entitled to employ and pay agents to do anything which the Agent
                is
                empowered to do under or pursuant to the Security Documents (including
                the
                receipt of money and documents and the payment of money) and to act
                or
                refrain from taking action in reliance on the opinion of, or advice
                or
                information obtained from, any lawyer, banker, broker, accountant,
                valuer
                or any other person believed by the Agent in good faith to be competent
                to
                give such opinion, advice or
                information.

            

    

     

    
      	 	
              9.14

            	
              Distribution
                of payments The
                Agent shall pay promptly to the order of (i) each of the Banks that
                Bank's
                Proportionate Share and (ii) the Issuer any amount to which the Issuer
                is
                entitled of every sum of money received by the Agent pursuant to
                the
                Security Documents (with the exception of any amounts payable pursuant
                to
                Clause 7 and any amounts which, by the terms of the Security Documents,
                are paid to the Agent for the account of the Agent alone or specifically
                for the account of one or more of the Finance Parties) and until
                so paid
                such amount shall be held by the Agent on trust absolutely for that
                Finance Party.

            

    

     

    
      	 	
              9.15

            	
              Reimbursement
                The
                Agent shall have no liability to pay any sum to another Party until
                it has
                itself received payment of that sum. If, however, the Agent does
                pay any
                sum to a Party on account of any amount prospectively due to it pursuant
                to Clause 9.14 or otherwise before it has itself received payment of
                that amount, and the Agent does not in fact receive payment within
                five
                Business Days after the date on which that payment was required to
                be made
                by the terms of the Security Documents, the recipient will, on demand
                by
                the Agent, refund to the Agent an amount equal to the amount received
                by
                it, together with an amount sufficient to reimburse the Agent for
                the cost
                of money for funding the amount in question during the period beginning
                on
                the date on which that amount was required to be paid by the terms
                of the
                Security Documents and ending on the date on which the Agent receives
                reimbursement.

            

    

     

    
      
        
        

      

      
        58

        
          

        

      

      
        
        

      

    

    
      	 	
              9.16

            	
              Redistribution
                of payments Unless
                otherwise agreed between the Finance Parties, if at any time a Finance
                Party receives or recovers by way of set-off, the exercise of any
                lien or
                otherwise other than from any assignee or transferee of or sub-participant
                in that Bank's Commitment, an amount greater than either (i) that
                Bank's
                Proportionate Share of any sum due from any of the Security Parties
                under
                the Security Documents or (ii) an amount greater than the amount
                outstanding and due to the Issuer under an LC (the amount of the
                excess
                being referred to in this Clause as the "Excess
                Amount")
                then:-

            

    

     

    
      	 	
              9.16.1

            	
              that
                Finance Party shall promptly notify the Agent (which shall promptly
                notify
                each other Finance Party);

            

    

     

    
      	 	
              9.16.2

            	
              that
                Finance Party shall pay to the Agent an amount equal to the Excess
                Amount
                within ten days of its receipt or recovery of the Excess Amount;
                and

            

    

     

    
      	 	
              9.16.3

            	
              the
                Agent shall treat that payment as if it were a payment by the Security
                Party in question on account of the sum owed to the Finance Parties
                as
                aforesaid and shall account to the Finance Parties in respect of
                the
                Excess Amount in accordance with the provisions of this
                Clause.

            

    

     

    However,
      if a Finance Party has commenced any Proceedings to recover sums owing to it
      under the Security Documents and, as a result of, or in connection with, those
      Proceedings has received an Excess Amount, the Agent shall not distribute any
      of
      that Excess Amount to any other Finance Party which had been notified of the
      Proceedings and had the legal right to, but did not, join those Proceedings
      or
      commence and diligently prosecute separate Proceedings to enforce its rights
      in
      the same or another court.

     

    
      	 	
              9.17

            	
              Rescission
                of Excess Amount If
                all or any part of any Excess Amount is rescinded or must otherwise
                be
                restored to any of the Security Parties or to any other third party,
                the
                Finance Parties which have received any part of that Excess Amount
                by way
                of distribution from the Agent pursuant to Clause 9.16 shall repay
                to the
                Agent for the account of the Finance Party which originally received
                or
                recovered the Excess Amount, the amount which shall be necessary
                to ensure
                that (i) all of the Banks share rateably in accordance with their
                Proportionate Shares and (ii) the Issuer in the amount of the receipt
                or
                payment retained, 

            

    

     

    
      
        
        

      

      
        59

        
          

        

      

      
        
        

      

    

    together
      with interest on that amount at a rate equivalent to that (if any) paid by
      the
      Finance Party receiving or recovering the Excess Amount to the person to whom
      that Finance Party is liable to make payment in respect of such amount, and
      Clause 9.16.3 shall apply only to the retained amount.

     

    
      	 	
              9.18

            	
              Proceedings
                Each
                of the Finance Parties shall notify one another of the proposed
                commencement of any Proceedings under any of the Security Documents
                prior
                to their commencement. No such Proceedings may be commenced without
                the
                prior written consent of the Majority
                Banks.

            

    

     

    
      	 	
              9.19

            	
              Instructions
                Where
                the Agent is authorised or directed to act or refrain from acting
                in
                accordance with the instructions of the Banks, or of the Majority
                Banks
                where applicable, each of the Banks shall provide the Agent with
                instructions within five (5) Business Days of the Agent's written
                request
                or such shorter period as the Agent may reasonably specify. If a
                Bank does
                not provide the Agent with instructions within that period, (i) that
                Bank
                shall be bound by the decision of the Agent, (ii) that Bank shall
                have no
                vote for the purposes of this Clause and (iii) the combined Proportionate
                Shares of the other Banks who provided such instructions shall be
                deemed
                to contribute 100%. Nothing in this Clause shall limit the right
                of the
                Agent to take, or refrain from taking, any action without obtaining
                the
                instructions of the Banks if the Agent in its discretion considers
                it
                necessary or appropriate to take, or refrain from taking, such action
                in
                order to preserve the rights of the Banks under or in connection
                with the
                Security Documents. In that event, the Agent will notify the Banks
                of the
                action taken by it as soon as reasonably practicable, and the Banks
                agree
                to ratify any action taken by the Agent pursuant to this
                Clause.

            

    

     

    
      	 	
              9.20

            	
              Communications
                Any
                Communication under this Clause shall be given, delivered, made or
                served,
                in the case of the Agent (in its capacity as Agent, Issuer, or as
                one of
                the Banks), and in the case of the other Finance Parties, at the
                address
                indicated in Schedule 1 or such other addresses as shall be duly
                notified
                in writing to the Agent on behalf of the
                Banks.

            

    

     

    
      	 	
              9.21

            	
              Payments
                All amounts payable to a Finance Party under this Clause shall be
                paid to
                such account at such bank as that Finance Party may from time to
                time
                direct in writing to the Agent.

            

    

     

    
      
        
        

      

      
        60

        
          

        

      

      
        
        

      

    

    
      	 	
              9.22

            	
              Retirement
                Subject
                to a successor being appointed in accordance with this Clause, the
                Agent
                may retire as agent and/or security trustee at any time without assigning
                any reason by giving to the Borrower and the other Finance Parties
                notice
                of its intention to do so, in which event the following shall apply:-
                

            

    

     

    
      	 	
              9.22.1

            	
              with
                the consent of the Borrower, not to be unreasonably withheld, the
                other
                Finance Parties may within thirty days after the date of the Agent's
                notice appoint a successor to act as agent and/or security trustee
                or, if
                they fail to do so with the consent of the Borrower, not to be
                unreasonably withheld, the Agent may appoint any other bank or financial
                institution as its successor;

            

    

     

    
      	 	
              9.22.2

            	
              the
                resignation of the Agent shall take effect simultaneously with the
                appointment of its successor on written notice of that appointment
                being
                given to the Borrower and the other Finance Parties;
                

            

    

     

    
      	 	
              9.22.3

            	
              the
                Agent shall thereupon be discharged from all further obligations
                as agent
                and/or security trustee but shall remain entitled to the benefit
                of the
                provisions of this Clause; 

            

    

     

    
      	 	
              9.22.4

            	
              the
                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 that successor had been a party to this
                Agreement.

            

    

     

    
      	 	
              9.23

            	
              No
                fiduciary relationship Except
                as provided in Clauses 9.3 and 9.14, the Agent shall not have any
                fiduciary relationship with or be deemed to be a trustee of or for
                any
                other Finance Party and nothing contained in any of the Security
                Documents
                shall constitute a partnership between any two or more Banks or between
                the Agent and any other Finance
                Party.

            

    

     

    
      	 	
              9.24

            	
              Issuer's
                Indemnity The
                Banks shall, promptly on the Issuer's request, reimburse the Issuer
                in
                their respective Proportionate Shares, for, and keep the Issuer fully
                indemnified in respect of:- 

            

    

     

    
      	 	
              9.24.1

            	
              all
                amounts payable by the Borrower to the Issuer pursuant to Clause
                2.12 to
                the extent that those amounts are not paid by the Borrower;
                

            

    

     

    
      
        
        

      

      
        61

        
          

        

      

      
        
        

      

    

    
      	 	
              9.24.2

            	
              all
                liabilities, damages, costs and claims sustained or incurred by the
                Issuer
                in connection with any LC, or the performance of its duties and
                obligations, or the exercise of its rights, powers, discretions or
                remedies under or pursuant to any LC; or in connection with any action
                taken or omitted by the Issuer under or pursuant to any LC, unless
                in any
                case those liabilities, damages, costs or claims arise solely from
                the
                Issuer's wilful misconduct or gross
                negligence.

            

    

     

    
      	 	
              9.25

            	
              The
                Agent as a Bank The
                expression "the
                Banks"
                when used in the Security Documents includes the Agent in its capacity
                as
                one of the Banks. The Agent shall be entitled to exercise its rights,
                powers, discretions and remedies under or pursuant to the Security
                Documents in its capacity as one of the Banks in the same manner
                as any
                other Bank and as if it were not also the
                Agent.

            

    

     

    
      	 	
              9.26

            	
              The
                Agent as security trustee
                Unless the context otherwise requires, the expression "the
                Agent"
                when used in the Security Documents includes the Agent acting in
                its
                capacities both as agent and security
                trustee.

            

    

     

    
      	10  	
              Covenants

            

    

     

    The
      Borrower covenants with the Finance Parties in the following terms.

     

    
      	 	
              10.1

            	
              Negative
                covenants 

            

    

     

    The
      Borrower will not:-

     

    10.1.1 no
      third party rights without
      the Majority Banks' prior written consent, create or permit to arise or continue
      and procure that the Owners do not consent, create, or permit to arise or
      continue any Encumbrance on or over all or any part of the Vessels or their
      respective Insurances except for Permitted Liens, subject always to the
      provisions of Clause 10.1.5; nor

     

    10.1.2 no
      other business
      materially change the nature of their business from that of acting as a holding
      company as carried on as at the Execution Date and shall procure that there
      is
      no material change in the nature of the business of the Group as a whole from
      that advised to the Agent of the date of this Agreement; nor

     

    
      
        
        

      

      
        62

        
          

        

      

      
        
        

      

    

    10.1.3 merger
      or amalgamation
      without
      the prior written consent of the Majority Banks, permit any merger or
      amalgamation; nor

     

    10.1.4 no
      change in management
      permit
      anyone other than the Manager to be appointed as commercial or technical
      managers of the Vessels, nor permit any material variation of the arrangements
      for the commercial or technical management of the Vessels, nor permit the
      Manager to sub-contract or delegate a material part of the commercial or
      technical management of any Vessel to any third party; nor

     

    10.1.5 no
      disposal of Negative Pledged Vessels
      during
      the Construction Period, permit the English Owner to dispose of or pledge to
      any
      third party any of the Negative Pledged Vessels unless the aggregate of the
      Valuations and the Negative Pledged Vessels Valuations, following the disposal
      or release from the Declaration of Negative Pledge of the Negative Pledged
      Vessel in question, exceeds two hundred per cent (200%) of the
      Indebtedness.

     

    10.2 Positive
      covenants

     

    
      	 	
              10.2.1

            	
              Financial
                statements The
                Borrower shall supply to the Agent 

            

    

     

    
      	 	
              (a)

            	
              as
                soon as the same become available, but in any event within one hundred
                and
                fifty (150) days after the end of each of its financial years, its
                audited
                consolidated financial statements for that financial
                year;

            

    

     

    
      	 	
              (b)

            	
              as
                soon as the same become available, but in any event within sixty
                (60) days
                of the end of its second quarter in each of its financial years,
                unaudited
                consolidated financial statements for that half
                year;

            

    

     

    
      	 	
              (c)

            	
              as
                soon as they become available, but in any event within one hundred
                and
                fifty (150) days after the end of each of its financial years,
                consolidated financial forecasts for the following two financial
                years.

            

    

     

    
      
        
        

      

      
        63

        
          

        

      

      
        
        

      

    

    
      	 	
              10.2.2

            	
              Requirements
                as to financial statements Each
                set of financial statements delivered by the Borrower under Clause
                10.2.1:

            

    

     

    
      	 	
              (a)

            	
              shall
                be certified by an officer of the Borrower to the best of its knowledge
                and belief as fairly representing its financial condition as at the
                date
                as at which those financial statements were drawn up;
                and

            

    

     

    
      	 	
              (b)

            	
              shall
                be prepared using GAAP, accounting practices and financial reference
                periods consistently applied unless, in relation to any set of financial
                statements, the Borrower notifies the Agent that there has been a
                change
                in GAAP, the accounting practices or reference periods and the Borrower's
                auditors deliver to the Agent:

            

    

     

    
      	 	
              (i)

            	
              a
                description of any change necessary for those financial statements
                to
                reflect the GAAP, accounting practices and reference periods upon
                which
                the previous financial statements were prepared;
                and

            

    

     

    
      	 	
              (ii)

            	
              sufficient
                information, in form and substance as may be reasonably required
                by the
                Agent, to enable the Agent to make an accurate comparison between
                the
                financial position indicated in those financial statements and that
                indicated in the previous financial statements.

            

    

     

    
      	 	
              10.2.3

            	
              Information:
                miscellaneous The
                Borrower shall supply to the Agent:

            

    

     

    
      	 	
              (a)

            	
              all
                documents dispatched by the Borrower to its creditors generally at
                the
                same time as they are dispatched;

            

    

     

    
      	 	
              (b)

            	
              promptly
                upon becoming aware of them, details of any litigation, arbitration
                or
                administrative proceedings which are current, threatened or pending
                against any Security Party, and which might, if adversely determined,
                have
                a Material Adverse Effect on the ability of a Security Party to perform
                its obligations under the Finance Documents or on the validity or
                enforceability of any of the Finance Documents; and
                

            

    

     

    
      
        
        

      

      
        64

        
          

        

      

      
        
        

      

    

    
      	 	
              (c)

            	
              promptly,
                such further information regarding the financial condition, business
                and
                operations of any Security Party as the Agent may reasonably request
                including, without limitation, cash flow analyses and details of
                the
                operating costs of each Vessel.

            

    

     

    
      	 	
              10.2.4

            	
              Notification
                of default 

            

    

     

    
      	 	
              (a)

            	
              The
                Borrower shall notify the Agent of any Default (and the steps, if
                any,
                being taken to remedy it) promptly upon becoming aware of its
                occurrence.

            

    

     

    
      	 	
              (b)

            	
              Promptly
                upon a request by the Agent, the Borrower shall supply to the Agent
                a
                certificate signed by two of its directors or senior officers on
                its
                behalf certifying to the best of their knowledge and belief that
                no
                Default is continuing (or if a Default is continuing, specifying
                the
                Default and the steps, if any, being taken to remedy
                it).

            

    

     

    10.2.5 "Know
      your customer" checks If:

     

    
      	 	
              (a)

            	
              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;

            

    

     

    
      	 	
              (b)

            	
              any
                change in the status of the Borrower after the date of this Agreement;
                or

            

    

     

    
      	 	
              (c)

            	
              a
                proposed assignment or transfer by a Bank of any of its rights and
                obligations under this Agreement to a party that is not a Bank prior
                to
                such assignment or transfer,

            

    

     

    obliges
      the Agent or any Bank (or, in the case of (c) above, any prospective new Bank)
      to comply with "know your customer" or similar identification procedures in
      circumstances where the necessary information is not already available to it,
      the Borrower shall promptly upon the request of the Agent or any Bank supply,
      or
      procure the supply of, such documentation and other evidence as is reasonably
      requested by the Agent (for itself or on behalf of any Bank) or any Bank for
      itself (or, 

     

    
      
        
        

      

      
        65

        
          

        

      

      
        
        

      

    

    in
      the
      case of (c) above, on behalf of any prospective new Bank) in order for the
      Agent
      or that Bank (or, in the case of (c) above, any prospective new Bank) to carry
      out and be satisfied it has complied with all necessary "know your customer"
      or
      other similar checks under all applicable laws and regulations pursuant to
      the
      transactions contemplated in the Finance Documents.

     

    10.2.6 Pari
      Passu
      The
      Borrower shall ensure that its obligations under this Agreement shall at all
      times rank at least pari passu with all of its other present and future
      unsecured and unsubordinated indebtedness with the exception of any obligations
      which are mandatorily preferred by any applicable laws to companies generally
      and not by contract.

     

    10.2.7 Corporate
      Existence
      The
      Borrower shall ensure that throughout the Facility Period each of the Security
      Parties shall (i) remain duly formed and validly existing under the laws of
      its
      respective jurisdiction of incorporation (ii) remain authorised to do business
      in the jurisdiction in which it transacts its business (iii) continue to have
      the power to carry on its business as it is now being conducted and to enter
      into and perform its obligations under the Security Documents to which it is
      a
      party and (iv) continue to comply with all laws, statutory, regulatory and
      other
      requirements relative to its business which could reasonably be expected to
      have
      a Material Adverse Effect on its business, assets or operations, financial
      or
      otherwise.

     

    10.2.8 Admissibility
      In Evidence
      The
      Borrower shall obtain all necessary authorisations, consents, approvals,
      licences, exemptions, filings, registrations, recordings and notarisations
      required or advisable in connection with the admissibility in evidence of the
      Security Documents or any of them in Proceedings in England or any other
      jurisdiction in which Proceedings have been commenced.

     

    10.2.9 Registration
      of Vessels
      The
      Borrower undertakes to procure that the Owners shall maintain the registration
      of the Vessels and the Negative Pledged Vessels under the flag indicated in
      Schedule 2 Part I, Schedule 2 Part II and Schedule 2 Part III, or such other
      flag requested by the 

     

    
      
        
        

      

      
        66

        
          

        

      

      
        
        

      

    

    Borrower
      and is consented to by the Banks (such consent not to be unreasonably withheld),
      for the duration of the Facility Period. 

     

    10.2.10 Classification
      The
      Borrower shall procure that the Owners shall ensure that each Vessel and each
      Negative Pledged Vessel maintains the highest classification required for the
      purpose of the relevant trade of such Vessel or Negative Pledged Vessel (as
      the
      case may be) which shall be with a Pre-Approved Classification Society or such
      other society as may be acceptable to the Agent, in each case, free from any
      overdue recommendations and conditions affecting the class of that Vessel or
      Negative Pledged Vessel (as the case may be).

     

    10.2.11 Compliance
      with Applicable Laws
      The
      Borrower shall comply with all applicable laws to which it may be
      subject.

     

    10.2.12 Inspection
      of records
      The
      Borrower will permit the inspection of its financial records and accounts on
      reasonable notice from time to time during business hours by the Agent or its
      nominee. 

     

    10.2.13 Valuations
      The
      Borrower will deliver to the Agent: 

     

    (a) a
      Valuation of each of the Vessels on the due date for delivery of the six monthly
      Compliance Certificate (which shall be at the expense of the Borrower);

     

    (b) a
      Valuation of each Newbuilding on the delivery of such Newbuilding to the
      Borrower (which shall be at the expense of the Borrower); and 

     

    (c) on
      such
      other occasions as the Agent may reasonably request (which shall be at the
      expense of the Agent).

     

    10.2.14 Financial
      covenants
      Throughout the Facility Period the Borrower shall:-

     

    (i) maintain
      a ratio of Total Shareholder Equity to Total Assets of at least thirty five
      per
      cent. (35%); and

     

    (ii) maintain
      a ratio of EBITDA to Interest Expense of no less than 2.25:1.00.

     

    
      
        
        

      

      
        67

        
          

        

      

      
        
        

      

    

    
      	 	
              10.2.15

            	
              Compliance
                Certificates
                The Borrower will produce a Compliance Certificate with each set
                of
                audited consolidated annual accounts and each set of unaudited
                consolidated six monthly accounts.

            

    

     

    
      	 	
              10.2.16

            	
              Additional
                security If
                and so often as the aggregate of: 

            

    

     

    
      	 	
              (i)

            	
              the
                Valuations of the Vessels; and

            

    

     

    
      	 	
              (ii)

            	
              the
                value of any additional security acceptable to the Agent in its absolute
                discretion for the time being provided to the Banks (or to the Agent
                on
                their behalf) pursuant to this Clause (the "Collateral")
                

            

    

     

    shall
      during the Construction Period be less than either: 

     

    
      	 	
              (i)
                

            	
              one
                hundred and twenty five per cent (125%) of the amount of the aggregate
                of
                the Facility Outstandings and the LC Amount;
                or

            

    

     

    
      	 	
              (ii)

            	
              one
                hundred and forty per cent (140%) of the amount of the aggregate
                of the
                Facility Outstandings and the LC Amount when aggregated with sixty
                per
                cent (60%) of the aggregate Negative Pledged Vessels Valuations for
                the
                Negative Pledged Vessels (and which for the avoidance of doubt shall
                exclude any Replacement Negative Pledged Vessel);
                or

            

    

     

    shall
      following the Construction Period be less than one hundred and forty per cent
      (140%) of the amount of the aggregate of the Facility Outstandings and the
      LC
      Amount (each being a "Relevant
      Percentage")
      the
      Borrower will, within thirty days of the request of the Agent to do so, at
      the
      Borrower's option:- 

     

    
      	 	
              (a)

            	
              pay
                to the Agent or to its nominee a cash deposit in the amount of the
                shortfall to be secured in favour of the Banks (or of the Agent on
                their
                behalf) as additional security for the payment of the Indebtedness;
                or
                

            

    

     

    
      	 	
              (b)

            	
              give
                to the Banks (or to the Agent on their behalf) other additional security
                as proposed by the Borrower in amount and form acceptable to the
                Banks in
                their reasonable discretion, acting in good faith; or
                

            

    

     

    
      
        
        

      

      
        68

        
          

        

      

      
        
        

      

    

    
      	 	
              (c)

            	
              prepay
                the amount of the Indebtedness which will ensure that the Collateral
                is
                not less than the Relevant
                Percentage.

            

    

     

     

    Clauses 5.3,
      5.4, 5.5 and 5.6 shall apply, mutatis
      mutandis,
      to any
      prepayment made pursuant to this Clause and the value of any additional security
      provided pursuant to this Clause shall be determined by the Agent in its
      discretion after consultation with the Majority Banks. Where the Borrower has
      provided additional security pursuant to this Clause, the Borrower may obtain
      new Valuations (at the Borrower's expense) on a date falling not earlier than
      three (3) months after the date such additional security was provided. If the
      aggregate amount of the Collateral reflecting the new Valuations of the Vessels
      (the "New
      Security Amount")
      is
      greater than the Relevant Percentage then, provided no Event of Default has
      occurred and is continuing, the Agent shall release to the Borrower, upon the
      Borrower's written request and at the Borrower's expense, any part of the
      additional security as the Borrower shall select with the consent of the Agent
      (such consent not to be unreasonably withheld), such that after its release
      the
      New Security Amount will be at least equal to the Relevant
      Percentage.

     

     

    10.2.17 Subsidiaries
      Throughout the Facility Period the Borrower shall ensure that each of Gulf
      Offshore N.S. Limited and GulfMark Rederi AS remain wholly owned subsidiaries
      of
      the Borrower, unless a change of ownership of Gulf Offshore N.S. Limited or
      GulfMark Rederi AS (as the case may be) is approved in writing by the
      Banks.

     

     

    10.2.18 US
      Filings
      The
      Borrower shall permit the Agent to undertake the filing of all such UCC
      financing statements as may be requested to be filed in one or more registries
      within the States of Delaware, Texas and District of Columbia which in the
      judgment of the Agent are necessary in order to perfect the security interests
      in favour of the Agent created by the Assignments entered into by the
      Borrower.

     

     

    10.2.19 Delivery
      of the Newbuildings
      The
      Borrower shall take delivery of each of the Newbuildings in accordance with
      the
      terms of the relevant Building Contract and the Borrower shall not nominate
      another entity to take delivery of any Newbuilding nor shall the Borrower
      transfer, assign 

     

    
      
        
        

      

      
        69

        
          

        

      

      
        
        

      

    

     

    nor
      novate its right to take delivery of any Newbuilding to any other entity. Upon
      the delivery of a Newbuilding to the Borrower, the Borrower shall be obliged
      to
      satisfy those conditions set out in Clause 3.3 for such Newbuilding on the
      relevant Delivery Date, whether or not a drawing is then being made. 

     

    
      	11  	
              Earnings

            

    

     

    
      	 	
              11.1

            	
              Remittance
                of Earnings The
                Borrower shall procure that all Net Earnings and any Requisition
                Compensation are paid to the Earnings Account or to such other account(s)
                as the Agent shall from time to time specify by notice in writing
                to the
                Borrower to begin as of no later than 30 June 2006 or such later
                date as
                the Banks shall agree. 

            

    

     

    
      	 	
              11.2

            	
              Earnings
                Account The
                Borrower shall maintain the Earnings Account with the Agent for the
                duration of the Facility Period free of Encumbrances and rights of
                set off
                except for Permitted Liens and those Encumbrances and rights of set
                off
                created by or under the Security Documents.

            

    

     

    
      	12  	
              Events Of Default

            

    

     

    
      	 	
              12.1

            	
              The
                Agent's rights If
                any of the events set out in Clause 12.2 occurs, the Agent may at
                its
                discretion (and, on the instructions of the Majority Banks,
                will):

            

    

     

    12.1.1 by
      notice
      to the Borrower declare the Banks to be under no further obligation to the
      Borrower under or pursuant to this Agreement and may (and, on the instructions
      of the Majority Banks, will) declare all or any part of the Indebtedness
      (including such unpaid interest as shall have accrued and any Break Costs
      incurred by the Finance Parties) to be immediately payable, whereupon the
      Indebtedness (or the part of the Indebtedness referred to in the Agent's notice)
      shall immediately become due and payable without any further demand or notice
      of
      any kind; and/or

     

    12.1.2 declare
      that any undrawn portion of the Facility shall be cancelled, whereupon the
      same
      shall be cancelled and the corresponding Commitment of each Bank shall be
      reduced to zero; and/or

     

    
      
        
        

      

      
        70

        
          

        

      

      
        
        

      

    

    12.1.3 require
      cash cover for the LC Amount; and/or

     

    
      	 	
              12.1.4

            	
              exercise
                any rights and remedies in existence or arising under the Security
                Documents.

            

    

     

    
      	 	
              12.2

            	
              Events
                of Default The
                events referred to in Clause 12.1
                are:-

            

    

     

    
      	 	
              12.2.1

            	
              payment
                default if
                the Borrower defaults in the payment of any part of the Indebtedness
                when
                due PROVIDED
                ALWAYS
                that if the Borrower can demonstrate to the reasonable satisfaction
                of the
                Agent that it has given all necessary instructions to effect payment
                and
                the non-receipt thereof is attributable to an error in the banking
                system,
                such Event of Default shall only occur two (2) Business Days after
                such
                payment fell due; or

            

    

     

    
      	 	
              12.2.2

            	
              other
                default if
                any of the Security Parties fails to observe or perform any of the
                covenants, conditions, undertakings, agreements or obligations on
                its part
                contained in any of the Security Documents or shall in any other
                way be in
                breach of any of the Security Documents and such default (if in the
                reasonable opinion of the Majority Banks capable of remedy) is not
                remedied within fifteen (15) Business Days after notice of the default
                has
                been given to the Borrower; or 

            

    

     

    
      	 	
              12.2.3

            	
              misrepresentation
                or breach of warranty if
                any representation, warranty or statement made, deemed to be made,
                or
                repeated under any of the Security Documents or in any accounts,
                certificate, notice instrument, written statement or opinion delivered
                by
                a Security Party under or in connection with any Security Document
                is
                incorrect or misleading in any material respect when made, deemed
                to be
                made or repeated; or

            

    

     

    
      	 	
              12.2.4

            	
              execution
                if
                a distress or execution or other process of a court or authority
                not
                covered by insurance is levied on any of the property of any of the
                Security Parties before or after final judgment or by order of any
                competent court or authority for an amount in excess of one million
                Dollars ($1,000,000) or its equivalent in any other currency and
                is not
                

            

    

     

    
      
        
        

      

      
        71

        
          

        

      

      
        
        

      

    

    satisfied
      or stayed (with a view to being contested in good faith) within fourteen days
      of
      levy or any other applicable cure period (if longer); or

     

    
      	 	
              12.2.5

            	
              insolvency
                events if
                any of the Security Parties:-

            

    

     

    
      	 	
              (a)

            	
              resolves
                to appoint, or applies for, or consents to the appointment of, a
                receiver,
                administrative receiver, trustee, administrator or liquidator of
                itself or
                of all or part of its assets; or

            

    

     

    
      	 	
              (b)

            	
              is
                unable or admits its inability to pay its debts as they fall due;
                or

            

    

     

    
      	 	
              (c)

            	
              makes
                a general assignment for the benefit of creditors;
                or

            

    

     

    
      	 	
              (d)

            	
              ceases
                trading or threatens to cease trading;
                or

            

    

     

    
      	 	
              (e)

            	
              has
                appointed an Inspector under the Companies Act 1985 or any statutory
                provision which the Agent in its discretion considers analogous thereto;
                or

            

    

     

    
      	 	
              12.2.6

            	
              insolvency
                proceedings if
                any proceedings are commenced or threatened, or any order or judgment
                is
                given by any court, for the bankruptcy, liquidation, winding up,
                administration or re-organisation of any of the Security Parties
                or for
                the appointment of a receiver, administrative receiver, administrator,
                liquidator or trustee of any of the Security Parties or of all or
                any
                material part of the assets of any of the Security Parties or if
                any
                person appoints or purports to appoint such receiver, administrative
                receiver, administrator, liquidator or trustee which proceeding is
                not
                discharged within fifteen (15) days of its commencement;
                or

            

    

     

    
      	 	
              12.2.7

            	
              impossibility
                or illegality unless
                covered by Clause 15.7, if any event occurs which would, or would
                with the
                passage of time, render performance of any of the Security Documents
                impossible, unlawful or unenforceable by the Banks or the Agent;
                or

            

    

     

    
      	 	
              12.2.8

            	
              conditions
                subsequent if
                any of the conditions set out in Clause 3.4 is not satisfied within
                the
                time reasonably required by the Agent;
                or

            

    

     

    
      
        
        

      

      
        72

        
          

        

      

      
        
        

      

    

    
      	 	
              12.2.9

            	
              revocation
                or modification of consents etc. if
                any material consent, licence, approval or authorisation which is
                now or
                which at any time during the Facility Period becomes necessary to
                enable
                any of the Security Parties to comply with any of their obligations
                in or
                pursuant to any of the Security Documents is revoked, withdrawn or
                withheld, or modified in a manner which the Agent reasonably considers
                is,
                or may be, prejudicial to the interests of the Banks in a material
                manner,
                or any material consent, licence, approval or authorisation ceases
                to
                remain in full force and effect; or

            

    

     

    
      	 	
              12.2.10

            	
              curtailment
                of business if
                the business of any of the Security Parties is wholly or materially
                curtailed by any intervention by or under authority of any government,
                or
                if all or a substantial part of the undertaking, property or assets
                of any
                of the Security Parties is seized, nationalised, expropriated or
                compulsorily acquired by or under authority of any government or
                any
                Security Party disposes or threatens to dispose of a substantial
                part of
                its business or assets; or

            

    

     

    
      	 	
              12.2.11

            	
              acceleration
                of other indebtedness if
                any Financial Indebtedness of any of the Security Parties or any
                Material
                Subsidiary becomes due or capable of being declared due prior to
                its
                stated maturity by reason of default on the part of that Security
                Party or
                Material Subsidiary (as the case may be), or is not repaid or satisfied
                on
                the due date for its repayment or any such other loan, guarantee
                or
                indebtedness becomes enforceable save for amounts of less than one
                million
                Dollars ($1,000,000) in aggregate, or its equivalent in any other
                currency; or

            

    

     

    
      	 	
              12.2.12

            	
              reduction
                of capital if
                any of the Security Parties reduces its authorised or issued or subscribed
                capital except as part of a share buy-back, whilst solvent, by the
                Borrower; or

            

    

     

    
      	 	
              12.2.13

            	
              challenge
                to registration if
                the registration of any Vessel or any Mortgage becomes void or voidable
                or
                liable to cancellation or termination;
                or

            

    

     

    
      	 	
              12.2.14

            	
              war
                if
                the country of registration of any Vessel becomes involved in war
                involving another sovereign state (whether or not declared) or civil
                

            

    

     

    
      
        
        

      

      
        73

        
          

        

      

      
        
        

      

    

    war
      or is
      occupied by any other power and the Agent reasonably considers that, as a
      result, the security conferred by the Security Documents is materially
      prejudiced; or

     

    
      	 	
              12.2.15

            	
              material
                adverse change etc. if
                any thing is done or permitted or omitted to be done by any of the
                Security Parties or any Material Subsidiary which in the reasonable
                opinion of the Majority Banks has a Material Adverse Effect or if
                there
                occurs (in the reasonable opinion of the Majority Banks) any material
                adverse change in the business, affairs or financial condition of
                any of
                the Security Parties or any Material Subsidiary from that pertaining
                at
                the date of this Agreement; or 

            

    

     

    
      	 	
              12.2.16

            	
              final
                judgements
                if
                any of the Security Parties fails to comply with any non appealable
                court
                order or fails to pay a final unappealable judgment against it which
                remains unsettled for fifteen (15) Business Days;
                or

            

    

     

    
      	 	
              12.2.17

            	
              loss
                of stock market listing
                if
                the Borrower ceases to be listed on NASDAQ or another recognised
                stock
                exchange for more than fifteen (15) Business Days;
                or

            

    

     

    
      	 	
              12.2.18

            	
              similar
                event any
                event occurs which, under the laws of any jurisdiction, has a similar
                or
                analogous effect to any of those events mentioned in Clauses 12.2.4,
                12.2.5 and 12.2.6; or

            

    

     

    
      	 	
              12.2.19

            	
              environmental
                matters

            

    

     

    
      	 	
              (a)

            	
              any
                Environmental Claim is pending or made against an Owner or any of
                the
                Owner's Environmental Affiliates or in connection with a Vessel,
                where
                such Environmental Claim has a Material Adverse Effect, where such
                Environmental Claim is not covered by the Insurances.
                

            

    

     

    
      	 	
              (b)

            	
              any
                actual Environmental Incident occurs in connection with a Vessel,
                where
                such Environmental Incident has a Material Adverse Effect, where
                such
                Environmental Claim is not covered by the Insurances; or
                

            

    

     

    
      
        
        

      

      
        74

        
          

        

      

      
        
        

      

    

    
      	 	
              12.2.20

            	
              repudiation
                Any Security Party repudiates any Security 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 Security
                Documents.

            

    

     

    
      	13  	
              Set-Off
                and Lien

            

    

     

    
      	 	
              13.1

            	
              Set-off
                The
                Borrower irrevocably authorises each of the Finance Parties at any
                time
                after all or any part of the Indebtedness shall have become due and
                payable to set off without notice any liability of the Borrower to
                any of
                the Finance Parties (whether present or actual, and irrespective
                of the
                branch or office, currency or place of payment) against any credit
                balance
                from time to time standing on any account of the Borrower (whether
                current
                or otherwise and whether or not subject to notice) with any branch
                of any
                of the Finance Parties in or towards satisfaction of the Indebtedness
                and,
                in the name of that Finance Party or the Borrower, to do all acts
                (including, without limitation, converting or exchanging any currency)
                and
                execute all documents which may be required to effect such
                application.

            

    

     

    
      	 	
              13.2

            	
              Lien
                If
                an Event of Default has occurred and is continuing, unremedied or
                unwaived, each Finance Party shall have a lien on and be entitled
                to
                retain and realise as additional security for the repayment of the
                Indebtedness any cheques, drafts, bills, notes or negotiable or
                non-negotiable instruments and any stocks, shares or marketable or
                other
                securities and property of any kind of the Borrower (or of that Finance
                Party as agent or nominee of the Borrower) from time to time held
                by that
                Finance Party, whether for safe custody or
                otherwise.

            

    

     

    
      	 	
              13.3

            	
              Restrictions
                on withdrawal Despite
                any term to the contrary in relation to any deposit or credit balance
                at
                any time on any account of the Borrower with any of the Finance Parties,
                no such deposit or balance shall be repayable or capable of being
                assigned, mortgaged, charged or otherwise disposed of or dealt with
                by the
                Borrower after an Event of Default has occurred and while such Event
                of
                Default is continuing unremedied or unwaived, but any Finance Party
                may
                from time to time permit the withdrawal of all or any part of any
                such
                deposit or balance without affecting the continued application of
                this
                Clause.

            

    

     

    
      	 	
              13.4

            	
              Application
                Whilst
                an Event of Default is continuing unremedied or unwaived, the Borrower
                irrevocably authorises the Agent to apply all sums which the Agent
                may
                receive:-

            

    

     

    
      
        
        

      

      
        75

        
          

        

      

      
        
        

      

    

    13.4.1 pursuant
      to a sale or other disposition of a Vessel or any right, title or interest
      in a
      Vessel; or

     

    13.4.2 by
      way of
      payment to the Agent of any sum in respect of the Insurances or Requisition
      Compensation of a Vessel; or

     

    13.4.3 otherwise
      arising under or in connection with any of the Security Documents

     

    in
      or
      towards satisfaction, or by way of retention on account, of the Indebtedness,
      in
      such manner as the Agent may in its discretion determine PROVIDED
      THAT
      any part
      of the Indebtedness arising out of the LCs shall rank pari passu with every
      other part of the Indebtedness.

     

    
      	14  	
              Assignment and
                Sub-Participation

            

    

     

    
      	 	
              14.1

            	
              Right
                to assign Each
                of the Banks may assign or transfer all or any of its rights under
                or
                pursuant to the Security Documents or assign or grant sub-participations
                in all or any part of its Commitment (i) to any other branch or affiliate
                of that Bank or to another Bank or (ii) with the prior written consent
                of
                the Agent, the Issuer and the Borrower (which shall not be unreasonably
                withheld and which shall be deemed given if no response shall be
                received
                within ten (10) Business Days of a request or at any time whilst
                an Event
                of Default is in existence) to any other bank or financial
                institution.

            

    

     

    
      	 	
              14.2

            	
              Borrower's
                co-operation The
                Borrower will co-operate fully and will procure that the other Security
                Parties co-operate fully with the Banks in connection with any assignment,
                transfer or sub-participation pursuant to Clause 14.1; will execute
                and
                procure the execution of such documents as the Banks may require
                in
                connection therewith; and irrevocably authorises each of the Finance
                Parties to disclose to any proposed assignee, transferee or
                sub-participant (whether before or after any assignment, transfer
                or
                sub-participation and whether or not any assignment, transfer or
                sub-participation shall take place) all information relating to the
                Security Parties, the Facility, the LCs or the Security Documents
                which
                each such Finance Party may in its discretion consider necessary
                or
                desirable (subject to any duties of confidentiality applicable to
                the
                Banks generally). 

            

    

     

    
      
        
        

      

      
        76

        
          

        

      

      
        
        

      

    

    
      	 	
              14.3

            	
              Rights
                of assignee Any
                assignee or transferee of a Bank shall (unless limited by the express
                terms of the assignment or transfer) take the full benefit of every
                provision of the Security Documents benefiting that Bank.
                

            

    

     

    
      	 	
              14.4

            	
              Transfer
                Certificates
                If
                any Bank wishes to transfer all or any of its Commitment as contemplated
                in Clause 14.1 then such transfer may be effected by the delivery
                to the
                Agent and the Banks 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 the date
                of
                delivery of such Transfer Certificate to the
                Agent:

            

    

     

    14.4.1 to
      the
      extent that in such Transfer Certificate the Bank which is a party thereto
      seeks
      to transfer its Commitment in whole, the Borrower and such Bank shall be
      released from further obligations towards each other under this Agreement and
      their respective rights against each other shall be cancelled other than
      existing claims against such Bank for breach of this Agreement (such rights,
      benefits and obligations being referred to in this Clause 14.4 as "discharged
      rights and obligations");

     

    14.4.2 the
      Borrower and the Transferee which is a party thereto shall assume obligations
      towards each other and/or acquire rights against each other which differ from
      such discharged rights and obligations only insofar as the Borrower and such
      Transferee have assumed and/or acquired the same in place of the Borrower and
      such Bank; 

     

    14.4.3 the
      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 this Agreement as
      a
      Bank with the rights, benefits and/or obligations acquired or assumed by it
      as a
      result of such transfer; and

     

    14.4.4 the
      Transferee shall pay to the Agent a transfer fee of three thousand Dollars
      ($3,000).

     

    
      	 	
              14.5

            	
              Power
                of Attorney In
                order to give effect to each Transfer Certificate, the Finance Parties
                (with the exception of the Banks) and the Borrower each hereby irrevocably
                and unconditionally appoint the Agent as its true and lawful attorney
                

            

    

     

    
      
        
        

      

      
        77

        
          

        

      

      
        
        

      

    

    with
      full
      power to execute on their respective behalves each Transfer Certificate
      delivered to the Agent pursuant to Clause 14.4 without the Agent being under
      any
      obligation to take any further instructions from or give any prior notice to,
      any of the Finance Parties or, subject to the Borrower's rights under Clause
      14.1, the Borrower before doing so and the Agent shall so execute each such
      Transfer Certificate on behalf of the other Finance Parties (with the exception
      of the Banks) and the Borrower immediately on its receipt of the same pursuant
      to Clause 14.4.

     

    
      	 	
              14.6

            	
              Notification
                The
                Agent shall promptly notify the other Finance Parties (with the exception
                of the Banks), the Transferee and the Borrower on the execution by
                it and
                the Banks of any Transfer Certificate together with details of the
                amount
                transferred, the Transfer Date and the parties to such
                transfer.

            

    

     

    
      	15  	
              Payments,
                Mandatory Prepayment, Reserve Requirements and
                Illegality

            

    

     

    
      	 	
              15.1

            	
              Payments
                All
                amounts payable by the Borrower under or pursuant to any of the Security
                Documents shall be paid to such accounts at such banks as the Agent
                may
                from time to time direct to the Borrower and shall be paid in the
                relevant
                Optional Currency in same day funds. Payments shall be deemed to
                have been
                received by the Agent on the date on which the Agent receives
                authenticated advice of receipt, unless that advice is received by
                the
                Agent on a day other than a Business Day or at a time of day (whether
                on a
                Business Day or not) when the Agent in its reasonable discretion
                considers
                that it is impossible or impracticable for the Agent to utilise the
                amount
                received for value that same day, in which event the payment in question
                shall be deemed to have been received by the Agent on the Business
                Day
                next following the date of receipt of advice by the
                Agent.

            

    

     

    
      	 	
              15.2

            	
              No
                deductions or withholdings All
                payments (whether of principal or interest or otherwise) to be made
                by the
                Borrower pursuant to the Security Documents shall, subject only to
                Clause
                15.3, be made free and clear of and without deduction for or on account
                of
                any Taxes or other deductions, withholdings, restrictions, conditions
                or
                counterclaims of any nature, and the Borrower will not claim any
                equity in
                respect of any payment due from them to the Banks or to the Agent
                under or
                in relation to any of the Security
                Documents.

            

    

     

    
      
        
        

      

      
        78

        
          

        

      

      
        
        

      

    

    
      	 	
              15.3

            	
              Grossing-up
                If
                at any time any law requires (or is interpreted to require) the Borrower
                to make any deduction or withholding from any payment, or to change
                the
                rate or manner in which any required deduction or withholding is
                made, the
                Borrower will promptly notify the Agent and, simultaneously with
                making
                that payment, will pay to the Agent whatever additional amount (after
                taking into account any additional Taxes on, or deductions or withholdings
                from, or restrictions or conditions on, that additional amount) is
                necessary to ensure that, after making the deduction or withholding,
                the
                Agent and the Banks receive a net sum equal to the sum which they
                would
                have received had no deduction or withholding been made.
                

            

    

     

    
      	 	
              15.4

            	
              Evidence
                of deductions If
                at any time the Borrower is required by law to make any deduction
                or
                withholding from any payment to be made by it pursuant to any of
                the
                Security Documents, the Borrower will pay the amount required to
                be
                deducted or withheld to the relevant authority within the time allowed
                under the applicable law and will, no later than thirty days after
                making
                that payment, deliver to the Agent an original receipt issued by
                the
                relevant authority, or other evidence reasonably acceptable to the
                Agent,
                evidencing the payment to that authority of all amounts required
                to be
                deducted or withheld. If
                the Borrower makes any deduction or withholding from any payment
                under or
                pursuant to any of the Security Documents, and a Bank subsequently
                receives a refund or allowance from any tax authority which that
                Bank at
                its sole discretion identifies as being referable to that deduction
                or
                withholding, that Bank shall, as soon as reasonably practicable,
                pay to
                the Borrower an amount equal to the amount of the refund or allowance
                received, if and to the extent that it may do so without prejudicing
                its
                right to retain that refund or allowance and without putting itself
                in any
                worse financial position than that in which it would have been had
                the
                deduction or withholding not been required to have been made. Nothing
                in
                this Clause shall be interpreted as imposing any obligation on any
                Bank to
                apply for any refund or allowance nor as restricting in any way the
                manner
                in which any Bank organises its tax affairs, nor as imposing on any
                Bank
                any obligation to disclose to the Borrower any information regarding
                its
                tax affairs or tax computations. All costs and expenses incurred
                by any
                Bank in obtaining or seeking to obtain a refund or allowance from
                any tax
                authority pursuant to this Clause shall be for the Borrower's
                account.

            

    

     

    
      
        
        

      

      
        79

        
          

        

      

      
        
        

      

    

    
      	 	
              15.5

            	
              Adjustment
                of due dates If
                any payment to be made under any of the Security Documents, other
                than a
                payment of interest on the Facility (to which Clause 6.5 applies),
                shall
                be due on a day which is not a Business Day, that payment shall be
                made on
                the next succeeding Business Day (unless the next succeeding Business
                Day
                falls in the next calendar month in which event the payment shall
                be made
                on the next preceding Business Day). Any such variation of time shall
                be
                taken into account in computing any interest in respect of that
                payment.

            

    

     

    
      	 	
              15.6

            	
              Change
                in law If,
                by reason of the introduction of any law, or any change in any law,
                or the
                interpretation or administration of any law, or in compliance with
                any
                request or requirement from any central bank or any fiscal, monetary
                or
                other authority:-

            

    

     

    
      	 	
              15.6.1

            	
              any
                Finance Party (or the holding company of any Finance Party) shall
                be
                subject to any Tax with respect to payments of all or any part of
                the
                Indebtedness; or

            

    

     

    
      	 	
              15.6.2

            	
              the
                basis of Taxation of payments to any Finance Party in respect of
                all or
                any part of the Indebtedness shall be changed;
                or

            

    

     

    
      	 	
              15.6.3

            	
              any
                reserve requirements shall be imposed, modified or deemed applicable
                against assets held by or deposits in or for the account of or loans
                by
                any branch of any Finance Party or its direct or indirect holding
                company;
                or

            

    

     

    
      	 	
              15.6.4

            	
              any
                ratio (whether cash, capital adequacy, liquidity or otherwise) which
                any
                Finance Party or its direct or indirect holding company is required
                or
                requested to maintain shall be affected;
                or

            

    

     

    
      	 	
              15.6.5

            	
              there
                is imposed on any Finance Party (or on the direct or indirect holding
                company of any Finance Party) any other condition in relation to
                the
                Indebtedness or the Security Documents;

            

    

     

    and
      the
      result of any of the above shall be to increase the cost to any Bank (or to
      the
      direct or indirect holding company of any Bank) of that Bank making or
      maintaining its Commitment or its Drawing, or the cost to the Issuer (or to
      the
      direct or indirect holding company of the Issuer) of the Issuer making or
      maintaining its obligations under an LC, or to cause any Finance Party to suffer
      

     

    
      
        
        

      

      
        80

        
          

        

      

      
        
        

      

    

    (in
      its
      reasonable opinion) a material reduction in the rate of return on its overall
      capital below the level which it reasonably anticipated at the Execution Date
      and which it would have been able to achieve but for its entering into this
      Agreement and/or performing its obligations under this Agreement, the Finance
      Party affected shall notify the Agent and, on demand to the Borrower by the
      Agent, the Borrower shall from time to time pay to the Agent for the account
      of
      the Finance Party affected the amount which shall compensate that Finance Party
      or the Agent (or the relevant holding company) for such additional cost or
      reduced return. A certificate signed by an authorised signatory of the Agent
      or
      of the Finance Party affected setting out the amount of that payment and the
      basis of its calculation shall be submitted to the Borrower and shall be
      conclusive evidence of such amount save for manifest error or on any question
      of
      law.

     

    
      	 	
              15.7

            	
              Illegality
                and impracticality Notwithstanding
                anything contained in the Security Documents, (i) the obligations
                of a
                Bank to advance or maintain its Commitment or (ii) the obligations
                of the
                Issuer to issue or maintain an LC shall terminate respectively in
                the
                event that a change in any law or in the interpretation of any law
                by any
                authority charged with its administration shall make it unlawful
                (in the
                case of (i) above) for that Bank to advance or maintain its Commitment
                or
                (in the case of (ii) above) for the Issuer to issue or maintain an
                LC. In
                such event the Issuer and/or the Bank affected shall notify the Agent
                and
                the Agent shall, by written notice to the Borrower, declare that
                Bank's
                obligations or the Issuer's obligations (as the case may be) to be
                immediately terminated. In the event of (i) above if all or any part
                of
                the Facility shall have been advanced by the Banks to the Borrower
                the
                portion of the Indebtedness (including all accrued interest) advanced
                by
                the Bank so affected shall be prepaid within thirty days from the
                date of
                such notice, or sooner if illegality is determined. In the event
                of (ii)
                above if an LC shall have been issued by the Issuer then the Borrower
                shall procure the release of such LC within thirty days from the
                receipt
                of such notice, or sooner if illegality is determined. Clause 5.4
                shall
                apply to either of those prepayments if it is made on a day other
                than the
                last day of an Interest Period. During that period, the affected
                Bank
                and/or Issuer shall negotiate in good faith with the Borrower to
                find an
                alternative method or lending base in order to maintain the Facility
                or LC
                (as the case may be).

            

    

     

    
      
        
        

      

      
        81

        
          

        

      

      
        
        

      

    

    
      	 	
              15.8

            	
              Changes
                in market circumstances If
                at any time a Bank determines (which determination shall be final
                and
                conclusive and binding on the Borrower) that, by reason of changes
                affecting the London Interbank market, adequate and fair means do
                not
                exist for ascertaining the rate of interest on the Facility or any
                part
                thereof pursuant to this
                Agreement:-

            

    

     

    
      	 	
              15.8.1

            	
              that
                Bank shall give notice to the Agent and the Agent shall give notice
                to the
                Borrower of the occurrence of such event;
                and

            

    

     

    
      	 	
              15.8.2

            	
              the
                Agent shall as soon as reasonably practicable certify to the Borrower
                in
                writing the effective cost to that Bank of maintaining its Commitment
                for
                such further period as shall be selected by that Bank and the rate
                of
                interest payable by the Borrower for that period; or, if that is
                not
                acceptable to the Borrower, 

            

    

     

    
      	 	
              15.8.3

            	
              the
                Agent in accordance with instructions from that Bank and subject
                to that
                Bank's approval of any agreement between the Agent and the Borrower,
                will
                negotiate with the Borrower in good faith with a view to modifying
                this
                Agreement to provide a substitute basis for that Bank’s Commitment which
                is financially a substantial equivalent to the basis provided for
                in this
                Agreement. 

            

    

     

    If,
      within thirty days of the giving of the notice referred to in
      Clause 15.8.1, the Borrower and the Agent fail to agree in writing on a
      substitute basis for such Bank’s Commitment the Borrower will immediately prepay
      the amount of such Bank’s Commitment and the Maximum Facility Amount will
      automatically decrease by the amount of such Commitment and such decrease shall
      not be reversed. Clause 5.4 shall apply to that prepayment if it is made on
      a
      day other than the last day of an Interest Period.

     

    
      	 	
              15.9

            	
              Non-availability
                of currency If
                a Bank is for any reason unable to obtain the relevant Optional Currency
                in the London Interbank market and is, as a result, or as a result
                of any
                other contingency affecting the London Interbank market, unable to
                advance
                or maintain its Commitment in the relevant Optional Currency, that
                Bank
                shall give notice to the Agent and the Agent shall give notice to
                the
                Borrower and that Bank's obligations to make the Facility available
                shall
                immediately cease. In that event, if all or any part of the Facility
                shall
                have been 

            

    

     

    
      
        
        

      

      
        82

        
          

        

      

      
        
        

      

    

    advanced
      by that Bank to the Borrower, the Agent in accordance with instructions from
      that Bank and subject to that Bank's approval of any agreement between the
      Agent
      and the Borrower, will negotiate with the Borrower in good faith with a view
      to
      establishing a mutually acceptable basis for funding the Facility or relevant
      part thereof from an alternative source. If the Agent and the Borrower have
      failed to agree in writing on a basis for funding the Facility or relevant
      part
      thereof from an alternative source by 11.00 a.m. on the second Business Day
      prior to the end of the then current relevant Interest Period, the Borrower
      will
      (without prejudice to its other obligations under or pursuant to this Agreement,
      including, without limitation, its obligation to pay interest on the Facility,
      arising on the expiry of the then relevant Interest Period) prepay the
      Indebtedness (or relevant part thereof) to the Agent on behalf of that Bank
      on
      the expiry of the then current relevant Interest Period. 

     

    
      	16  	
              Communications

            

    

     

    
      	 	
              16.1

            	
              Method
                Except for Communications pursuant to Clause 9, which shall be made
                or
                given in accordance with Clause 9.20, any Communication may be given,
                delivered, made or served (as the case may be) under or in relation
                to
                this Agreement by letter or fax and shall be in the English language
                and
                sent addressed:- 

            

    

     

    
      	 	
              16.1.1

            	
              in
                the case of any of the Finance Parties to the Agent at its address
                at the
                head of this Agreement (fax no: +47 5521 1924) marked for the attention
                of: Credit Administration; and 

            

    

     

    
      	 	
              16.1.2

            	
              in
                the case of the Borrower to the Communications
                Address;

            

    

     

    or
      to
      such other address or fax number as the Agent or the Borrower may designate
      for
      themselves by written notice to the others.

     

    
      	 	
              16.2

            	
              Timing
                A
                Communication shall be deemed to have been duly given, delivered,
                made or
                served to or on, and received by a party to this Agreement:-
                

            

    

     

    
      	 	
              16.2.1

            	
              in
                the case of a fax when the sender receives one or more transmission
                reports showing the whole of the Communication to have been transmitted
                to
                the correct fax number; 

            

    

     

    
      
        
        

      

      
        83

        
          

        

      

      
        
        

      

    

    
      	 	
              16.2.2

            	
              if
                delivered to an officer of the relevant party or (in the case of
                the
                Borrower) left at the Communications Address at the time of delivery
                or
                leaving; or 

            

    

     

    
      	 	
              16.2.3

            	
              if
                posted, at 9.00 a.m. on the fifth Business Day after posting by prepaid
                first class post. 

            

    

     

    Any
      Communication by fax shall be promptly confirmed in writing by post or hand
      delivery.

     

    
      	17  	
              General
                Indemnities

            

    

     

    
      	 	
              17.1

            	
              Currency
                In
                the event of any Finance Party receiving or recovering any amount
                payable
                under any of the Security Documents in a currency other than the
                Currency
                of Account, and if the amount received or recovered is insufficient
                when
                converted into the Currency of Account at the date of receipt to
                satisfy
                in full the amount due, the Borrower shall, on the Agent's written
                demand,
                pay to the Agent such further amount in the Currency of Account as
                is
                sufficient to satisfy in full the amount due and that further amount
                shall
                be due to the Agent on behalf of the Finance Parties as a separate
                debt
                under this Agreement.

            

    

     

    
      	 	
              17.2

            	
              Costs
                and expenses The
                Borrower will, within fourteen days of the Agent's written demand,
                reimburse the Agent (on behalf of each of the Finance Parties) for
                all
                reasonable out of pocket expenses including external legal costs
                (including stamp duty, Value Added Tax or any similar or replacement
                tax
                if applicable) of and incidental to:-

            

    

     

    
      	 	
              17.2.1

            	
              the
                negotiation, preparation, execution and registration of the Security
                Documents (whether or not any of the Security Documents are actually
                executed or registered and whether or not all or any part of the
                Facility
                is advanced or an LC is issued); 

            

    

     

    
      	 	
              17.2.2

            	
              any
                amendments, addenda or supplements to any of the Security Documents
                (whether or not completed); 

            

    

     

    
      	 	
              17.2.3

            	
              any
                other documents which may at any time reasonably be required by any
                Finance Party to give effect to any of the Security Documents or
                

            

    

     

    
      
        
        

      

      
        84

        
          

        

      

      
        
        

      

    

    which
      any
      Finance Party is entitled to call for or obtain pursuant to any of the Security
      Documents; and

     

    
      	 	
              17.2.4

            	
              the
                exercise of the rights, powers, discretions and remedies of the Finance
                Parties under or pursuant to the Security
                Documents.

            

    

     

    
      	 	
              17.3

            	
              Events
                of Default The
                Borrower shall indemnify the Finance Parties from time to time on
                demand
                against all losses and costs incurred or sustained by any Finance
                Party as
                a consequence of any Event of Default, including (without limitation)
                any
                Break Costs. 

            

    

     

    
      	 	
              17.4

            	
              Funding
                costs
                The Borrower shall indemnify the Finance Parties from time to time
                on
                demand against all losses and costs incurred or sustained by any
                Finance
                Party if, for any reason due to a default or other action by the
                Borrower,
                any Drawing is not advanced to the Borrower or an LC issued after
                the
                relevant Drawdown Notice or Issue Request has been given to the Agent,
                or
                is advanced or issued (as the case may be) on a date other than that
                requested in the Drawdown Notice or Issue Request, including (without
                limitation) any Break Costs.

            

    

     

    
      	 	
              17.5

            	
              Protection
                and enforcement The
                Borrower shall indemnify the Finance Parties from time to time on
                demand
                against all losses, costs and liabilities which any Finance Party
                may from
                time to time sustain, incur or become liable for in or about the
                protection, maintenance or enforcement of the rights conferred on
                the
                Finance Parties by the Security Documents or in or about the exercise
                or
                purported exercise by the Finance Parties of any of the rights, powers,
                discretions or remedies vested in them under or arising out of the
                Security Documents, including (without limitation) any losses, costs
                and
                liabilities which any Finance Party may from time to time sustain,
                incur
                or become liable for by reason of any Finance Party being mortgagees
                of
                any Vessel, assignees of any Mortgage and/or a lender to the Borrower,
                or
                by reason of any Finance Party being deemed by any court or authority
                to
                be an operator or controller, or in any way concerned in the operation
                or
                control, of any Vessel. No such indemnity will be given to a Finance
                Party
                where any such loss, cost or liability has occurred due to gross
                negligence or wilful misconduct on the part of that Finance Party;
                however
                this shall not affect the right of any other Finance Party to receive
                any
                such indemnity.

            

    

     

    
      
        
        

      

      
        85

        
          

        

      

      
        
        

      

    

    
      	 	
              17.6

            	
              Liabilities
                of Finance Parties The
                Borrower will from time to time reimburse the Finance Parties on
                demand
                for all sums which any Finance Party may pay on account of any of
                the
                Security Parties or in connection with any Vessel (whether alone
                or
                jointly or jointly and severally with any other person) including
                (without
                limitation) all sums which any Finance Party may pay or guarantees
                which
                any Finance Party may give in respect of the Insurances, any expenses
                incurred by any Finance Party in connection with the maintenance
                or repair
                of any Vessel or in discharging any lien, bond or other claim relating
                in
                any way to any Vessel, and any sums which any Finance Party may pay
                or
                guarantees which they may give to procure the release of any Vessel
                from
                arrest or detention.

            

    

     

    
      	 	
              17.7

            	
              Taxes
                The
                Borrower shall pay all Taxes to which all or any part of the Indebtedness
                or any of the Security Documents may be at any time subject and shall
                indemnify the Finance Parties on demand against all liabilities,
                costs,
                claims and expenses incurred in connection therewith, including but
                not
                limited to any such liabilities, costs, claims and expenses resulting
                from
                any omission to pay or delay in paying any such Taxes. The indemnity
                contained in this Clause shall survive the repayment of the
                Indebtedness.

            

    

     

    
      	18  	
              Miscellaneous

            

    

     

    
      	 	
              18.1

            	
              Waivers
                No
                failure or delay on the part of any Finance Party in exercising any
                right,
                power, discretion or remedy under or pursuant to any of the Security
                Documents, nor any actual or alleged course of dealing between any
                Finance
                Party and any of the Security Parties, shall operate as a waiver
                of, or
                acquiescence in, any default on the part of any Security Party, unless
                expressly agreed to do so in writing by the Agent, nor shall any
                single or
                partial exercise by any Finance Party of any right, power, discretion
                or
                remedy preclude any other or further exercise of that right, power,
                discretion or remedy, or the exercise by a Finance Party of any other
                right, power, discretion or remedy.

            

    

     

    
      	 	
              18.2

            	
              No
                oral variations No
                variation or amendment of any of the Security Documents shall be
                valid
                unless in writing and signed on behalf of the Agent and the relevant
                Security Party.

            

    

     

    
      	 	
              18.3

            	
              Severability
                If
                at any time any provision of any of the Security Documents is invalid,
                illegal or unenforceable in any respect that provision shall be severed
                

            

    

     

    
      
        
        

      

      
        86

        
          

        

      

      
        
        

      

    

    from
      the
      remainder and the validity, legality and enforceability of the remaining
      provisions shall not be affected or impaired in any way.

     

    
      	 	
              18.4

            	
              Successors
                etc. The
                Security Documents shall be binding on the Security Parties and on
                their
                successors and permitted transferees and assignees, and shall inure
                to the
                benefit of the Finance Parties and their respective successors,
                transferees and assignees. The Borrower may not assign or transfer
                any of
                its rights or duties under or pursuant to any of the Security Documents
                without the prior written consent of the
                Banks.

            

    

     

    
      	 	
              18.5

            	
              Further
                assurance If
                any provision of the Security Documents shall be invalid or unenforceable
                in whole or in part by reason of any present or future law or any
                decision
                of any court, or if the documents at any time held by the Finance
                Parties
                on their behalf are considered by the Banks for any reason insufficient
                to
                carry out the terms of this Agreement, then from time to time the
                Borrower
                will promptly, on demand by the Agent, execute or procure the execution
                of
                such further documents as in the reasonable opinion of the Banks
                are
                necessary to provide adequate security for the repayment of the
                Indebtedness.

            

    

     

    
      	 	
              18.6

            	
              Other
                arrangements The
                Finance Parties may, without prejudice to their rights under or pursuant
                to the Security Documents, at any time and from time to time, on
                such
                terms and conditions as they may in their discretion determine, and
                without notice to the Borrower, grant time or other indulgence to,
                or
                compound with, any other person liable (actually or contingently)
                to the
                Finance Parties or any of them in respect of all or any part of the
                Indebtedness, and may release or renew negotiable instruments and
                take and
                release securities and hold funds on realisation or suspense account
                without affecting the liabilities of the Borrower or the rights of
                the
                Finance Parties under or pursuant to the Security
                Documents.

            

    

     

    
      	 	
              18.7

            	
              Advisers
                The Borrower irrevocably authorises the Agent, at any time and from
                time
                to time during the Facility Period, to consult insurance advisers
                on any
                matters relating to the Insurances, and from time to time to consult
                or
                retain advisers or consultants to monitor or advise on any other
                claims
                relating to the Vessels. The Borrower will provide such advisers
                and
                consultants with all information and documents which they may from
                time to
                time reasonably require and will reimburse the Agent on demand for
                all
                reasonable costs and expenses 

            

    

     

    
      
        
        

      

      
        87

        
          

        

      

      
        
        

      

    

    incurred
      by the Agent in connection with the consultation or retention of such advisers
      or consultants.

     

    
      	 	
              18.8

            	
              Delegation
                The
                Finance Parties may at any time and from time to time delegate to
                any
                person any of their rights, powers, discretions and remedies pursuant
                to
                the Security Documents, other than rights relating to actions to
                be taken
                by the Majority Banks or the Banks as a group on such terms as they
                may
                consider appropriate (including the power to
                sub-delegate).

            

    

     

    
      	 	
              18.9

            	
              Rights
                etc. cumulative Every
                right, power, discretion and remedy conferred on the Finance Parties
                under
                or pursuant to the Security Documents shall be cumulative and in
                addition
                to every other right, power, discretion or remedy to which they may
                at any
                time be entitled by law or in equity. The Finance Parties may exercise
                each of their rights, powers, discretions and remedies as often and
                in
                such order as they deem appropriate subject to obtaining the prior
                written
                consent of the Majority Banks. The exercise or the beginning of the
                exercise of any right, power, discretion or remedy shall not be
                interpreted as a waiver of the right to exercise any other right,
                power,
                discretion or remedy either simultaneously or
                subsequently.

            

    

     

    
      	 	
              18.10

            	
              No
                enquiry The
                Finance Parties shall not be concerned to enquire into the powers
                of the
                Security Parties or of any person purporting to act on behalf of
                any of
                the Security Parties, even if any of the Security Parties or any
                such
                person shall have acted in excess of their powers or if their actions
                shall have been irregular, defective or informal, whether or not
                any
                Finance Parties had notice thereof.

            

    

     

    
      	 	
              18.11

            	
              Continuing
                security The
                security constituted by the Security Documents shall be continuing
                and
                shall not be satisfied by any intermediate payment or satisfaction
                until
                the Indebtedness shall have been repaid in full and none of the Finance
                Parties shall be under any further actual or contingent liability
                to any
                third party in relation to the Vessels, the Insurances or Requisition
                Compensation or any other matter referred to in the Security Documents.
                

            

    

     

    
      	 	
              18.12

            	
              Security
                cumulative The
                security constituted by the Security Documents shall be in addition
                to any
                other security now or in the future held by the Finance Parties or
                any of
                them for or in respect of all or any part of the Indebtedness, and
                shall
                not merge with or prejudice or be prejudiced by any such security
                or any
                

            

    

     

    
      
        
        

      

      
        88

        
          

        

      

      
        
        

      

    

    other
      contractual or legal rights of any of the Finance Parties, nor affected by
      any
      irregularity, defect or informality, or by any release, exchange or variation
      of
      any such security. Section 93 of the Law of Property Act 1925 and all provisions
      which the Agent considers analogous thereto under the law of any other relevant
      jurisdiction shall not apply to the security constituted by the Security
      Documents. 

     

    
      	 	
              18.13

            	
              Re-instatement
                If
                any Finance Party takes any steps to exercise any of its rights,
                powers,
                remedies or discretions pursuant to the Security Documents and the
                result
                shall be adverse to the Finance Parties, the Borrower and the Finance
                Parties shall be restored to their former positions as if no such
                steps
                had been taken.

            

    

     

    
      	 	
              18.14

            	
              No
                liability None
                of the Finance Parties, nor any agent or employee of any Finance
                Party,
                nor any receiver and/or manager appointed by the Agent, shall be
                liable
                for any losses which may be incurred in or about the exercise of
                any of
                the rights, powers, discretions or remedies of the Finance Parties
                under
                or pursuant to the Security Documents nor liable as mortgagee in
                possession for any loss on realisation or for any neglect or default
                of
                any nature for which a mortgagee in possession might otherwise be
                liable
                unless such Finance Party’s action constitutes gross negligence or wilful
                misconduct.

            

    

     

    
      	 	
              18.15

            	
              Rescission
                of payments etc. Any
                discharge, release or reassignment by any of the Finance Parties
                of any of
                the security constituted by, or any of the obligations of any Security
                Party contained in, any of the Security Documents shall be (and be
                deemed
                always to have been) void if any act (including, without limitation,
                any
                payment) as a result of which such discharge, release or reassignment
                was
                given or made is subsequently wholly or partially rescinded or avoided
                by
                operation of any law, unless such Finance Party's action constitutes
                gross
                negligence or wilful misconduct.

            

    

     

    
      	 	
              18.16

            	
              Subsequent
                Encumbrances If
                the Agent receives notice of any subsequent Encumbrance (other than
                any
                Encumbrance permitted by the terms of this Agreement) affecting any
                Vessel
                or all or any part of the Insurances or Requisition Compensation,
                the
                Agent may open a new account in its books for the Borrower. If the
                Agent
                does not open a new account, then (unless the Encumbrance is permitted
                by
                the terms of this Agreement or the Agent gives written notice to
                the
                contrary to the Borrower) as from the time of receipt by the Agent
                of
                notice of such subsequent Encumbrance, all payments made to the
                

            

    

     

    
      
        
        

      

      
        89

        
          

        

      

      
        
        

      

    

    Agent
      shall be treated as having been credited to a new account of the Borrower and
      not as having been applied in reduction of the Indebtedness.

     

    
      	 	
              18.17

            	
              Releases
                If
                any Finance Party shall at any time in its discretion release any
                party
                from all or any part of any of the Security Documents or from any
                term,
                covenant, clause, condition or obligation contained in any of the
                Security
                Documents, the liability of any other party to the Security Documents
                shall not be varied or diminished.

            

    

     

    
      	 	
              18.18

            	
              Certificates
                Any
                certificate or statement signed by an authorised signatory of the
                Agent
                purporting to show the amount of the Indebtedness (or any part of
                the
                Indebtedness) or any other amount referred to in any of the Security
                Documents shall, save for manifest error or on any question of law,
                be
                conclusive evidence as against the Borrower of that amount.
                

            

    

     

    
      	 	
              18.19

            	
              Survival
                of representations and warranties The
                representations and warranties on the part of the Borrower contained
                in
                this Agreement shall survive the execution of this Agreement and
                the
                advance of the Facility or any part thereof.

            

    

     

    
      	 	
              18.20

            	
              Counterparts
                This
                Agreement may be executed in any number of counterparts each of which
                shall be original but which shall together constitute the same instrument.
                

            

    

     

    
      	 	
              18.21

            	
              Third
                Party Rights
                Notwithstanding the provisions of the Contracts (Rights of Third
                Parties)
                Act 1999, no term of this Agreement is enforceable by a person who
                is not
                a party to it.

            

    

     

    
      	19  	
              Law and Jurisdiction

            

    

     

    
      	 	
              19.1

            	
              Governing
                law This
                Agreement shall in all respects be governed by and interpreted in
                accordance with English law.

            

    

     

    
      	 	
              19.2

            	
              Jurisdiction
                For
                the exclusive benefit of the Finance Parties, the parties to this
                Agreement irrevocably agree that the courts of England are to have
                jurisdiction to settle any disputes which may arise out of or in
                connection with this Agreement and that any Proceedings may be brought
                in
                those courts. The Borrower irrevocably waives any objection which
                it may
                now or in the future have to the laying of the venue of any Proceedings
                in
                any court referred to in this Clause, and

            

    

     

    
      
        
        

      

      
        90

        
          

        

      

      
        
        

      

    

    any
      claim
      that those Proceedings have been brought in an inconvenient or inappropriate
      forum.

     

    
      	 	
              19.3

            	
              Alternative
                jurisdictions Nothing
                contained in this Clause shall limit the right of the Finance Parties
                to
                commence any Proceedings against the Borrower in any other court
                of
                competent jurisdiction nor shall the commencement of any Proceedings
                against the Borrower in one or more jurisdictions preclude the
                commencement of any Proceedings in any other jurisdiction, whether
                concurrently or not.

            

    

     

    
      	 	
              19.4

            	
              Service
                of process Without
                prejudice to the right of the Finance Parties to use any other method
                of
                service permitted by law, the Borrower irrevocably agrees that any
                writ,
                notice, judgment or other legal process shall be sufficiently served
                on it
                if addressed to it and left at or sent by post to the Address for
                Service,
                and in that event shall be conclusively deemed to have been served
                at the
                time of leaving or, if posted, at 9.00 a.m. on the third Business
                Day
                after posting by prepaid first class registered
                post.

            

    

     

    19.5 Waiver
      of trial by jury
      Each of
      the parties to this Agreement irrevocably waive  trial
      by
      jury in any Proceedings with respect to this Agreement or any other Security
      Document.

     

    

     

    IN
      WITNESS
      of which
      the parties to this Agreement have executed this Agreement the day and year
      first before written.

     

    
      
        
        

      

      
        91

        
          

        

      

      
        
        

      

    

    SCHEDULE
      1

     

    The
      Banks, the Commitments and the Proportionate Shares 

     

    

    
      	
              The
                Banks

            	
              The
                Commitments ($)

            	
              The
                Proportionate Shares (%)

            
	
              DnB
                NOR BANK ASA

            	
              $61,200,000

            	
              72%

            
	
              THE
                ROYAL BANK OF SCOTLAND PLC

            	
              $23,800,000

            	
              28%

               

            

    

    

    
      
        
        

      

      
        92

        
          

        

      

      
        
        

      

    

    SCHEDULE
      2

     

    Part
      I

     

    The
      Mortgaged Vessels 

     

    

    
      	
              Owner

               

            	
              Country
                of Incorporation

               

            	
              Vessel

               

            	
              Flag

               

            
	
              GulfMark
                Offshore, Inc.

               

            	
              Delaware,
                U.S.A.

               

            	
              "Highland
                Scout"

               

            	
              Panama

               

            
	
              GulfMark
                Offshore, Inc.

               

            	
              Delaware,
                U.S.A.

               

            	
              "Highland
                Guide"

               

            	
              Panama

               

            
	
              GulfMark
                Offshore, Inc.

               

            	
              Delaware,
                U.S.A.

               

            	
              "Sea
                Intrepid" 

               

            	
              Panama

               

            
	
              GulfMark
                Offshore, Inc.

               

            	
              Delaware,
                U.S.A.

               

            	
              "Sea
                Guardian"

               

            	
              Panama

               

            

    

    

     

    
      
        
        

      

      
        93

        
          

        

      

      
        
        

      

    

    

     

    Part
      II

     

    The
      Newbuildings

     

    
      	
              Owner

               

            	
              Country
                of Incorporation

               

            	
              Builder

               

            	
              Date
                of Building Contract

               

            	
              Vessel

               

            	
              Flag
                on delivery

               

            
	
              GulfMark
                Offshore, Inc.

               

            	
              Delaware,
                U.S.A.

               

            	
              Keppel
                Singmarine Pte. Ltd.

               

            	
              10
                November 2005

               

            	
              Hull
                no. 310

               

            	
              Panama
                

               

            
	
              GulfMark
                Offshore, Inc.

               

            	
              Delaware,
                U.S.A.

               

            	
              Keppel
                Singmarine Pte. Ltd.

               

            	
              10
                November 2005

               

            	
              Hull
                no. 311

               

            	
              Panama

               

            
	
              GulfMark
                Offshore, Inc.

               

            	
              Delaware,
                U.S.A.

               

            	
              Keppel
                Singmarine Pte. Ltd.

               

            	
              10
                November 2005

               

            	
              Hull
                no. 312

               

            	
              Panama

               

            
	
              GulfMark
                Offshore, Inc.

               

            	
              Delaware,
                U.S.A.

               

            	
              Keppel
                Singmarine Pte. Ltd.

               

            	
              10
                November 2005

               

            	
              Hull
                no. 313

               

            	
              Panama

               

            
	
              GulfMark
                Offshore, Inc.

               

            	
              Delaware,
                U.S.A.

               

            	
              Keppel
                Singmarine Pte. Ltd.

               

            	
              10
                November 2005

               

            	
              Hull
                no. 314

               

            	
              Panama

               

            
	
              GulfMark
                Offshore, Inc.

               

            	
              Delaware,
                U.S.A.

               

            	
              Keppel
                Singmarine Pte. Ltd.

               

            	
              10
                November 2005

               

            	
              Hull
                no. 315

               

            	
              Panama

               

            
	
              GulfMark
                Offshore, Inc.

               

            	
              Delaware,
                U.S.A.

               

            	
              Jaya
                Shipbuilding and Engineering Pte. Ltd.

               

            	
              22
                November 2005

               

            	
              Hull
                no. 857 (tbn "SEA SOVEREIGN")

               

            	
              Panama

               

            

    

    

    

    
      
        
        

      

      
        94

        
          

        

      

      
        
        

      

    

    

    Part
      III

     

    The
      Negative Pledged Vessels

     

    
      	
              Owner

               

            	
              Country
                of Incorporation

               

            	
              Vessel

               

            	
              Flag

               

            
	
              Gulf
                Offshore N.S. Limited

               

            	
              England
                & Wales

               

            	
              "Highland
                Rover" 

               

            	
              UK

               

            
	
              Gulf
                Offshore N.S. Limited

               

            	
              England
                & Wales

               

            	
              "Highland
                Spirit" 

               

            	
              UK

               

            
	
              Gulf
                Offshore N.S. Limited

               

            	
              England
                & Wales

               

            	
              "Highland
                Drummer"

               

            	
              UK

               

            
	
              Gulf
                Offshore N.S. Limited

               

            	
              England
                & Wales

               

            	
              "Highland
                Citadel" 

               

            	
              UK

               

            
	
              Gulf
                Offshore N.S. Limited

               

            	
              England
                & Wales

               

            	
              "Highland
                Piper" 

               

            	
              UK

               

            
	
              Gulf
                Offshore N.S. Limited

               

            	
              England
                & Wales

               

            	
              "Highland
                Fortress"

               

            	
              UK

               

            
	
              Gulf
                Offshore N.S. Limited

               

            	
              England
                & Wales

               

            	
              "Highland
                Navigator"

               

            	
              UK

               

            
	
              Gulf
                Offshore N.S. Limited

               

            	
              England
                & Wales

               

            	
              "Safe
                Truck" 

               

            	
              UK

               

            

    

    

    

     

    
      
        
        

      

      
        95

        
          

        

      

      
        
        

      

    

    SCHEDULE
      3

     

    Form
      of Transfer Certificate

     

    To:
       DnB
      NOR
      Bank ASA as agent (the "Agent")

    The
      Royal
      Bank of Scotland plc (the "Bank")

    

    TRANSFER
      CERTIFICATE

    

    This
      transfer certificate relates to a facility agreement (as the same may be from
      time to time amended, varied, novated or supplemented, the "Facility
      Agreement")
      dated
                              
2006 whereby an initial reducing revolving credit facility of up to $85,000,000
      was made available to GulfMark Offshore, Inc. by a group of banks on whose
      behalf the Agent acts as agent and security trustee.

    

    
      	1  	
              Terms
                defined in the Facility Agreement shall, subject to any contrary
                indication, have the same meanings herein. The terms "Existing Bank"
                and
                "Transferee" are defined in the schedule to this transfer
                certificate.

            

    

    

    
      	2  	
              The
                Existing Bank (i) confirms that the details in the Schedule hereto
                under
                the heading "Existing Bank's
                Commitment"
                accurately summarises its Commitment in the Facility Agreement and
                (ii)
                requests the Transferee to accept and procure the transfer to the
                Transferee of the portion of such Commitment specified in the Schedule
                hereto by counter-signing and delivering the Transfer Certificate
                to the
                Agent at its address for the service of Communications specified
                in the
                Facility Agreement.

            

    

    

    
      	3  	
              The
                Transferee requests the Agent and the Bank to accept this Transfer
                Certificate as being delivered to the Agent and the Bank pursuant
                to and
                for the purposes of clause 14.4 of the Facility Agreement so as to
                take
                effect in accordance with the terms thereof on the Transfer Date
                or on
                such later date as may be determined in accordance with the terms
                thereof.

            

    

    

    
      	4  	
              The
                Transferee confirms that it has received a copy of the 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 in the future
                rely on the Existing Bank or any other party to the Facility Agreement
                to
                check or enquire on its behalf into the legality, validity,
                

            

    

    
      
        
        

      

      
        96

        
          

        

      

      
        
        

      

    

    effectiveness,
      adequacy, accuracy or completeness of any such information and further agrees
      that it has not relied and will not rely on the Existing Bank or any other
      party
      to the Facility Agreement to access or keep under review on its behalf the
      financial condition, creditworthiness, condition, affairs, status or nature
      of
      the Borrower or any other party to the Facility Agreement.

    

    
      	5  	
              Execution
                of this Transfer Certificate by the Transferee constitutes its
                representation to the Transferor and all other parties to the Facility
                Agreement that it has power to become a party to the Facility Agreement
                as
                a Bank (as defined in the Facility Agreement) on the terms herein
                and
                therein set out and has taken all steps to authorise execution and
                delivery of this Transfer Certificate.

            

    

    

    
      	6  	
              The
                Transferee undertakes with the Existing Bank and each of the other
                parties
                to the Facility Agreement that it will perform in accordance with
                their
                terms all those obligations which by the terms of the Facility Agreement
                will be assumed by it after delivery of this Transfer Certificate
                to the
                Agent and the Bank and satisfaction of the conditions (if any) subject
                to
                which the Transfer Certificate is expressed to take
                effect.

            

    

    

    
      	7  	
              The
                Existing Bank makes no representation or warranty and assumes no
                responsibility with respect to the legality, validity, effectiveness,
                adequacy or enforceability of the Facility Agreement or any document
                relating thereto and assumes no responsibility for the financial
                condition
                of the Borrower or for the performance and observance by the Borrower
                of
                any of their obligations under the Facility Agreement or any document
                relating thereto and any and all such conditions and warranties,
                whether
                express or implied by law or otherwise, are hereby
                excluded.

            

    

    

    
      	8  	
              The
                Existing Bank gives notice that nothing in this transfer certificate
                or in
                the Facility Agreement (or any document relating thereto) shall oblige
                the
                Existing Bank to (i) accept a re-transfer from the Transferee of
                the whole
                or any part of its rights, benefits and/or obligations under the
                Facility
                Agreement transferred pursuant hereto or (ii) support any losses
                directly
                or indirectly sustained or incurred by the Transferee for any reason
                whatsoever including, without limitation, the non-performance by
                the
                Borrower or any other party to the Facility Agreement (or any document
                relating thereto) of its obligations under any such document. The
                Transferee acknowledges the absence of any such obligation as is
                referred
                to in (i) or (ii) above.

            

    

    
      
        
        

      

      
        97

        
          

        

      

      
        
        

      

    

    

    
      	9  	
              This
                Transfer Certificate and the rights and obligations of the parties
                hereunder shall be governed by and interpreted in accordance with
                English
                law.

            

    

    THE SCHEDULE

    

    
      	1  	
              Existing
                Bank:

            

    

    

    
      	2  	
              Transferee:

            

    

    

    
      	3  	
              Transfer
                Date:

            

    

    

    
      	4  	
              Existing
                Bank's Commitment1:Portion
                Transferred

            

    

    

    

    [Transferor
      Bank]    [Transferee
      Bank]

    

    By:      By:

    

    Date:      Date:

    

    DnB
      NOR Bank ASA

    

    As
      agent
      for and on behalf of itself,

    the
      Borrower and the other Finance Parties (with the exception of the
      Banks):-

    

    By:
      ..........................................

    

    Date:
      [    ]

    

    

    The
      Royal Bank of Scotland plc

    

    By:
      ..........................................

    

    Date:
      [    ]

    

    

    
      
        
1 Details
        of the Bank's Commitment should not be completed after the Termination
        Date.

    

     

    

    

    

    
      
        
        

      

      
        98

        
          

        

      

      
        
        

      

    

    SCHEDULE
      4

     

    Form
      of Drawdown Notice

     

    

    
      	
              To:

            	
              DnB
                NOR Bank ASA

            

    

    

    

    From: GULFMARK
      OFFSHORE, INC.

    

    [Date]

    

    Dear
      Sirs,

    Drawdown
      Notice

    

    We
      refer
      to the Revolving Credit Facility Agreement dated
                                    2006
      made between, amongst others, ourselves and yourselves ("the
      Agreement").

    

    Words
      and
      phrases defined in the Agreement have the same meaning when used in this
      Drawdown Notice. 

    

    Pursuant
      to Clause 2.3 of the Agreement, we irrevocably request that the Banks
      advance a Drawing of
      [           ] to us on
   
             
200[ ], which is a Business Day, by paying the amount of the Drawing to
      [     ].

     

    We
      warrant that the representations and warranties contained in Clause 4 of the
      Agreement other than those in clause 4.9 [and clause 4.17]2 
      are true
      and correct at the date of this Drawdown Notice and will be true and correct
      on
             
200[ ]; that no Event of Default nor Potential Event of Default has
      occurred and is continuing, and that no Event of Default or Potential Event
      of
      Default will result from the advance of the Drawing requested in this Drawdown
      Notice. 

    

    [We
      further confirm and certify that no material adverse change has occurred since
      the Execution Date in the business, assets, operations, condition (financial
      or
      otherwise) or prospects of the Borrower or its subsidiaries or in the facts
      and
      information regarding such entities as represented to date3 ].

     

     

    
      
        

      

    

    2 To
      be in subsequent Drawdown Notices only.

    3 To
      be in first Drawdown Notice only.

    
      
        
        

      

      
        99

        
          

        

      

      
        
        

      

    

    We
      select
      the period of [       ] months as the [first]
      Interest Period in respect of the Drawing.

    

    Yours
      faithfully

    

    

    .......................

    For
      and
      on behalf of

    GULFMARK
      OFFSHORE, INC.

     

    
      
        
        

      

      
        100

        
          

        

      

      
        
        

      

    

    SCHEDULE
      5

     

    Calculation
      of the Mandatory Cost

     

    
      	
              1

            	
              The
                Mandatory Cost is an addition to the interest rate to compensate
                the Banks
                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.

            

    

     

    
      	
              2

            	
              On
                the first day of each Interest Period (or as soon as possible thereafter)
                the Agent shall calculate, as a percentage rate, a rate (the "Additional
                Cost Rate")
                for each Bank, in accordance with the paragraphs set out below. The
                Mandatory Cost will be calculated by the Agent as a weighted average
                of
                the Banks' Additional Cost Rates (weighted in proportion to the percentage
                participation of each Bank in the Loan) and will be expressed as
                a
                percentage rate per annum.

            

    

     

    
      	
              3

            	
              The
                Additional Cost Rate for any Bank lending from a Facility Office
                in a
                Participating Member State will be the percentage notified by that
                Bank to
                the Agent. This percentage will be certified by that Bank in its
                notice to
                the Agent to be its reasonable determination of the cost (expressed
                as a
                percentage of that Bank's participation in all loans made from that
                Facility Office) of complying with the minimum reserve requirements
                of the
                European Central Bank in respect of loans made from that Facility
                Office.

            

    

     

    
      	
              4

            	
              The
                Additional Cost Rate for any Bank lending from a Facility Office
                in the
                United Kingdom will be calculated by the Agent as
                follows:

            

    

     

    
      per
        cent.
        per annum.
E
      x
      0.01

    300 

     

    
      	 	
              Where
                E is the rate of charge payable by a Bank to the Financial Services
                Authority under the Fees Rules in respect of the relevant financial
                year
                of the Financial Services Authority (calculated for this purpose
                by the
                Agent as being the average of the Fee Tariffs applicable to that
                Bank for
                that financial year).

            

    

     

    5 For
      the
      purposes of this Schedule:

     

    
      	 	
              (a)

            	
              "Eligible
                Liabilities and
                "Special
                Deposits"
                have the meanings given to them from time to time under or pursuant
                to the
                Bank of England Act 1998 or (as may be appropriate) by the Bank of
                England;

            

    

     

    
      
        
        

      

      
        101

        
          

        

      

      
        
        

      

    

    
      	 	
              (b)

            	
              "Facility
                Office"
                means the office notified by a Bank to the Agent in writing on or
                before
                the date it becomes a Bank as the office through which it will perform
                its
                obligations under the Agreement;

            

    

     

    
      	 	
              (c)

            	
              "Fee
                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;

            

    

     

    
      	 	
              (d)

            	
              "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 Fee Rules but taking into account any applicable
                discount
                rate); and

            

    

     

    
      	 	
              (e)

            	
              "Participating
                Member State"
                means any member state of the European Communities that adopts or
                has
                adopted the euro as its lawful currency in accordance with legislation
                of
                the European Union relating to European Monetary
                Union;

            

    

     

    
      	 	
              (f)

            	
              "Parties"
                means any party to the Agreement, including its successors in title
                permitted assigns and permitted transferees;
                and

            

    

     

    
      	 	
              (g)

            	
              "Tariff
                Base"
                has the meaning given to it in, and will be calculated in accordance
                with,
                the Fees Rules.

            

    

     

    
      	
              6

            	
              If
                requested by the Agent, each Bank shall, as soon as practicable after
                publication by the Financial Services Authority, supply to the Agent,
                the
                rate of charge payable by that Bank to the Financial Services Authority
                pursuant to the Fees Rules in respect of the relevant financial year
                of
                the Financial Services Authority (calculated for this purpose by
                that Bank
                as being the average of the Fee Tariffs applicable to that Bank for
                that
                financial year).

            

    

     

    
      	
              7

            	
              Each
                Bank shall supply any information required by the Agent for the purpose
                of
                calculating its Additional Cost Rate. In particular, but without
                limitation, each Bank Shall supply the following information on or
                prior
                to the date on which it becomes a
                Bank:

            

    

     

    (a) the
      jurisdiction of its Facility Office; and

     

    (b) any
      other
      information that the Agent may reasonably require for such purpose.

     

    Each
      Bank
      shall promptly notify the Agent of any change to the information provided by
      it
      pursuant to this paragraph.

     

    
      
        
        

      

      
        102

        
          

        

      

      
        
        

      

    

    
      	
              8

            	
              The
                percentages of each Bank for the purpose of E above shall be determined
                by
                the Agent based upon the information supplied to it pursuant to paragraphs
                6 and 7 above and on the assumption that, unless the Bank notifies
                the
                Agent to the contrary, each Bank's obligations in relation to cash
                ratio
                deposits and Special Deposits are the same as those of a typical
                bank from
                its jurisdiction of incorporation with a Facility Office in the same
                jurisdiction as in its Facility
                Office.

            

    

     

    
      	
              9

            	
              The
                Agent shall have no liability to any person if such determination
                results
                in an Additional Cost Rate which over or under compensates any Bank
                and
                shall be entitled to assume that the information provided by any
                Bank
                pursuant to paragraphs 3, 6 and 7 above is true and correct in all
                respects.

            

    

     

    
      	
              10

            	
              The
                Agent shall distribute the additional amounts received as a result
                of the
                Mandatory Cost to the Banks on the basis of the Additional Cost Rate
                for
                each Bank based on the information provided by each Bank pursuant
                to
                paragraphs 3, 6 and 7 above.

            

    

     

    
      	
              11

            	
              Any
                determination by the Agent pursuant to this Schedule in relation
                to a
                formula, the Mandatory Cost, an Additional Cost Rate or any amount
                payable
                to a Bank shall, in the absence of manifest error, be conclusive
                and
                binding on all Parties.

            

    

     

    
      	
              12

            	
              The
                Agent may from time to time, after consultation with the Borrower
                and the
                Banks determine and notify to all Parties 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 Bank
                of England, 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.

            

    

     

    
      
        
        

      

      
        103

        
          

        

      

      
        
        

      

    

    SCHEDULE
      6

     

    Form
      of Compliance Certificate

     

    To: DnB
      NOR
      Bank ASA (the "Agent")

    From: GulfMark
      Offshore, Inc.

    

    Date:
      [Ÿ]

    

    

    Dear
      Sirs,

     

    We
      refer
      to an agreement (the "Agreement")
      dated
      [                        ]
      2006 and made between (inter alia) (1) ourselves as borrower (2) the banks
      and
      financial institutions listed in Schedule 1 of the Agreement as banks and (3)
      the Agent as the agent and security trustee (as from time to time amended,
      varied, novated or supplemented).

     

    Terms
      defined or construed in the 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 [Ÿ]
      (the
      "Relevant
      Period")
      which
      confirm that:-

     

    
      	
              1.

            	
              Our
                Total Shareholder Equity is
                [          ], and our
                Total Assets are
                [          ]. As such
                the ratio of Total Shareholder Equity to Total Assets is
                [          ].

            

    

     

    
      	
              2.

            	
              Our
                EBITDA is [          ]
                and our Interest Expense is
                [          ]. As such
                our ratio of EBITDA to Interest Expense is
                [          ].

            

    

     

    
      	
              3.

            	
              We
                attach Valuations for each of the Vessels showing an aggregate Valuation
                of [          ]. As such
                the
                aggregate of: 

            

    

     

    
      	 	
              (a)

            	
              the
                Valuations of the Vessels; and

            

    

     

    
      	 	
              (b)

            	
              the
                value of any additional security acceptable to the Agent in its absolute
                discretion for the time being provided to the Banks (or to the Agent
                on
                their behalf) pursuant to
                Clause 10.2.16,

            

    

     

    
      
        
        

      

      
        104

        
          

        

      

      
        
        

      

    

    [when
      aggregated with sixty per cent (60%) of the aggregate Negative Pledged Vessels
      Valuations]
      is
      [    ]% of the Maximum Facility Amount.

     

    

    Signed:  ........................................

    Duly
      authorised representative of

    GULFMARK
      OFFSHORE, INC.

    

    

    
      
        
        

      

      
        105

        
          

        

      

      
        
        

      

    

    SCHEDULE
      7

     

    Form
      of Issue Request

     

    

    To: DnB
      NOR Bank ASA

    From: GULFMARK
      OFFSHORE, INC.

    [Date]

    

    Dear
      Sirs,

    Issue
      Request

    We
      refer
      to the Loan and LC Facility Agreement dated
                         2006
      made between ourselves and yourselves (the "Agreement").

    

    Words
      and
      phrases defined in the Agreement have the same meaning when used in this
      Drawdown Notice.

    

    Pursuant
      to Clause 2.11 of the Agreement, we irrevocably request that you issue an LC
      on
                     200
      , which is a Business Day, in the sum of
      [                                ]
      in respect of
      [                                     ].

    

    We
      warrant that the representations and warranties contained in clause 4 of the
      Agreement other than those in Clause 4.9 [and Clause
      4.17]4 
      are true
      and correct at the date of this Issue Request and will be true and correct
      on
                          
200   , that no Event of Default has occurred and is continuing, and
      that no Event of Default will result from the issue of the LC requested in
      this
      Issue Request.

    

    Yours
      faithfully

    

    

    .............................................................................

    For
      and
      on behalf of

    4 To
      be in
      subsequent Issue Requests only

    

    GULFMARK
      OFFSHORE, INC.

    
      
        
        

      

      
        106

        
          

        

      

      
        
        

      

    

    

      

      
        	
                SIGNED
                  by

                duly
                  authorised for and on behalf 

                of
                  DnB
                  NOR Bank ASA

                (as
                  Agent, MLA, Issuer and Bank)

                in
                  the presence of:- Ania Lipinski

              	
                )

                )

                )

                )

                )

              	
                /s/
                  M.A. Russell

                 

                /s/
                  Ania Lipinski

                Stephenson
                  Harwood

                One,
                  St. Paul’s Churchyard

                London
                  EC4M 8SH

                 

              
	
                SIGNED
                  by

                duly
                  authorised for and on behalf 

                of
                  THE
                  ROYAL BANK OF SCOTLAND PLC

                (as
                  Bank)

                in
                  the presence of:- Ania Lipinski

              	
                )

                )

                )

                )

                )

              	
                /s/
                  Ian Mace

                 

                /s/
                  Ania Lipinski

                Stephenson
                  Harwood

                One,
                  St. Paul’s Churchyard

                London
                  EC4M 8SH

                 

              
	
                SIGNED
                  by
                  B. Streeter

                duly
                  authorised for and on behalf 

                of
                  GULFMARK
                  OFFSHORE, INC.

                in
                  the presence of:- 

              	
                )

                )

                )

                )

                )

              	
                /s/
                  Bruce Streeter

                 

                /s/
                  Mary Kay Kutka

                Mary
                  Kay Kutka

                10111
                  Richmond Ave., Ste. 340

                Houston,
                  TX 77042

              

      

      

    

    

    

    

    

    

    

      
 

      
        
          
          

        

        
          107

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