Document:

Exhibit 4.4

 

Execution Copy

 

 

 

SHIP FINANCE INTERNATIONAL LIMITED,

 

as Issuer

 

AND

 

WILMINGTON TRUST COMPANY,

 

as Trustee

 

INDENTURE

 

Dated as of December 18, 2003

 

 

Providing for Issuance of

 

81⁄2%
Senior
Notes due 2013

 

 

 

 

Table of
Contents

 

	
  ARTICLE I

  	
   

  	
   

  
	
  Definitions and
  Incorporation by Reference

  	
   

  
	
  Section 1.1

  	
  Definitions

  	
   

  
	
  Section 1.2

  	
  Other Definitions

  	
   

  
	
  Section 1.3

  	
  Incorporation by Reference of Trust Indenture Act

  	
   

  
	
  Section 1.4

  	
  Rules of Construction

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE II

  	
   

  	
   

  
	
  The Securities

  	
   

  	
   

  
	
  Section 2.1

  	
  Form, Dating and Terms

  	
   

  
	
  Section 2.2

  	
  Execution and Authentication

  	
   

  
	
  Section 2.3

  	
  Registrar and Paying Agent

  	
   

  
	
  Section 2.4

  	
  Paying Agent to Hold Money in Trust

  	
   

  
	
  Section 2.5

  	
  Securityholder Lists

  	
   

  
	
  Section 2.6

  	
  Transfer and Exchange

  	
   

  
	
  Section 2.7

  	
  Form of Certificate to be Delivered in Connection
  with Transfers to Institutional Accredited Investors

  	
   

  
	
  Section 2.8

  	
  Form of Certificate to be Delivered in Connection
  with Transfers Pursuant to Regulation S

  	
   

  
	
  Section 2.9

  	
  Mutilated, Destroyed, Lost or Stolen Securities

  	
   

  
	
  Section 2.10

  	
  Outstanding Securities

  	
   

  
	
  Section 2.11

  	
  Temporary Securities

  	
   

  
	
  Section 2.12

  	
  Cancellation

  	
   

  
	
  Section 2.13

  	
  Payment of Interest; Defaulted Interest

  	
   

  
	
  Section 2.14

  	
  Computation of Interest

  	
   

  
	
  Section 2.15

  	
  CUSIP AND ISIN Numbers

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE III

  	
   

  	
   

  
	
  Covenants

  	
   

  	
   

  
	
  Section 3.1

  	
  Payment of Securities; Payment of Additional
  Amounts

  	
   

  
	
  Section 3.2

  	
  SEC Reports

  	
   

  
	
  Section 3.3

  	
  Limitation on Indebtedness

  	
   

  
	
  Section 3.4

  	
  Limitation on Restricted Payments

  	
   

  
	
  Section 3.5

  	
  Limitation on Liens

  	
   

  
	
  Section 3.6

  	
  Limitation on Restrictions on Distributions from
  Restricted Subsidiaries

  	
   

  
	
  Section 3.7

  	
  Limitation on Sales of Assets and Subsidiary
  Stock.

  	
   

  
	
  Section 3.8

  	
  Limitation on Affiliate Transactions

  	
   

  
	
  Section 3.9

  	
  Change of Control.

  	
   

  
	
  Section 3.10

  	
  Limitation on Sale of Capital Stock of Restricted
  Subsidiaries

  	
   

  
	
  Section 3.11

  	
  Limitation on Sale/Leaseback Transactions

  	
   

  

 

i

 

	
  Section 3.12

  	
  Future Subsidiary Guarantors

  	
   

  
	
  Section 3.13

  	
  Limitation on Lines of Business

  	
   

  
	
  Section 3.14

  	
  Maintenance of Office or Agency

  	
   

  
	
  Section 3.15

  	
  Corporate Existence

  	
   

  
	
  Section 3.16

  	
  Payment of Taxes and Other Claims

  	
   

  
	
  Section 3.17

  	
  Payments for Consent

  	
   

  
	
  Section 3.18

  	
  Compliance Certificate

  	
   

  
	
  Section 3.19

  	
  Further Instruments and Acts

  	
   

  
	
  Section 3.20

  	
  Statement by Officers as to Default

  	
   

  
	
  Section 3.21

  	
  Amendments of Material Agreements

  	
   

  
	
  Section 3.22

  	
  Insurance

  	
   

  
	
  Section 3.23

  	
  Suspended Covenants

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV

  	
   

  	
   

  
	
  Successor Company

  	
   

  
	
  Section 4.1

  	
  Merger and Consolidation

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE V

  	
   

  	
   

  
	
  Redemption of Securities

  	
   

  
	
  Section 5.1

  	
  Optional Redemption; Optional Tax Redemption

  	
   

  
	
  Section 5.2

  	
  Applicability of Article

  	
   

  
	
  Section 5.3

  	
  Election to Redeem; Notice to Trustee

  	
   

  
	
  Section 5.4

  	
  Selection by Trustee of Securities to Be Redeemed

  	
   

  
	
  Section 5.5

  	
  Notice of Redemption

  	
   

  
	
  Section 5.6

  	
  Deposit of Redemption Price

  	
   

  
	
  Section 5.7

  	
  Securities Payable on Redemption Date

  	
   

  
	
  Section 5.8

  	
  Securities Redeemed in Part

  	
   

  
	
  Section 5.9

  	
  Special Mandatory Redemption.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI

  	
   

  	
   

  
	
  Defaults and Remedies

  	
   

  
	
  Section 6.1

  	
  Events of Default

  	
   

  
	
  Section 6.2

  	
  Acceleration

  	
   

  
	
  Section 6.3

  	
  Other Remedies

  	
   

  
	
  Section 6.4

  	
  Waiver of Past Defaults

  	
   

  
	
  Section 6.5

  	
  Control by Majority

  	
   

  
	
  Section 6.6

  	
  Limitation on Suits

  	
   

  
	
  Section 6.7

  	
  Rights of Holders to Receive Payment

  	
   

  
	
  Section 6.8

  	
  Collection Suit by Trustee

  	
   

  
	
  Section 6.9

  	
  Trustee May File Proofs of Claim

  	
   

  
	
  Section 6.10

  	
  Priorities

  	
   

  
	
  Section 6.11

  	
  Undertaking for Costs

  	
   

  
	
  Section 6.12

  	
  Additional Payments

  	
   

  

 

ii

 

	
  ARTICLE VII

  	
   

  	
   

  
	
  Trustee

  	
   

  	
   

  
	
  Section 7.1

  	
  Duties of Trustee

  	
   

  
	
  Section 7.2

  	
  Rights of Trustee

  	
   

  
	
  Section 7.3

  	
  Individual Rights of Trustee

  	
   

  
	
  Section 7.4

  	
  Trustee’s Disclaimer

  	
   

  
	
  Section 7.5

  	
  Notice of Defaults

  	
   

  
	
  Section 7.6

  	
  Reports by Trustee to Holders

  	
   

  
	
  Section 7.7

  	
  Compensation and Indemnity

  	
   

  
	
  Section 7.8

  	
  Replacement of Trustee

  	
   

  
	
  Section 7.9

  	
  Successor Trustee by Merger

  	
   

  
	
  Section 7.10

  	
  Eligibility; Disqualification

  	
   

  
	
  Section 7.11

  	
  Preferential Collection of Claims Against Company

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VIII

  	
   

  	
   

  
	
  Discharge of
  Indenture; Defeasance

  	
   

  
	
  Section 8.1

  	
  Discharge of Liability on Securities; Defeasance

  	
   

  
	
  Section 8.2

  	
  Conditions to Defeasance

  	
   

  
	
  Section 8.3

  	
  Application of Trust Money

  	
   

  
	
  Section 8.4

  	
  Repayment to Company

  	
   

  
	
  Section 8.5

  	
  Indemnity for U.S. Government Securities

  	
   

  
	
  Section 8.6

  	
  Reinstatement

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE IX

  	
   

  	
   

  
	
  Amendments

  	
   

  	
   

  
	
  Section 9.1

  	
  Without Consent of Holders

  	
   

  
	
  Section 9.2

  	
  With Consent of Holders

  	
   

  
	
  Section 9.3

  	
  Compliance with Trust Indenture Act

  	
   

  
	
  Section 9.4

  	
  Revocation and Effect of Consents and Waivers

  	
   

  
	
  Section 9.5

  	
  Notation on or Exchange of Securities

  	
   

  
	
  Section 9.6

  	
  Trustee To Sign Amendments

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE X

  	
   

  	
   

  
	
  Subsidiary Guarantees

  	
   

  
	
  Section 10.1

  	
  Subsidiary Guarantees

  	
   

  
	
  Section 10.2

  	
  Limitation on Liability; Termination, Release and
  Discharge

  	
   

  
	
  Section 10.3

  	
  Right of Contribution

  	
   

  
	
  Section 10.4

  	
  No Subrogation

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE XI

  	
   

  	
   

  
	
  Miscellaneous

  	
   

  	
   

  
	
  Section 11.1

  	
  Trust Indenture Act Controls

  	
   

  
	
  Section 11.2

  	
  Notices

  	
   

  
	
  Section 11.3

  	
  Communication by Holders with other Holders

  	
   

  
	
  Section 11.4

  	
  Certificate and Opinion as to Conditions Precedent

  	
   

  
	
  Section 11.5

  	
  Statements Required in Certificate or Opinion

  	
   

  

 

iii

 

	
  Section 11.6

  	
  When Securities Disregarded

  	
   

  
	
  Section 11.7

  	
  Rules by Trustee, Paying Agent and Registrar

  	
   

  
	
  Section 11.8

  	
  Legal Holidays

  	
   

  
	
  Section 11.9

  	
  GOVERNING LAW

  	
   

  
	
  Section 11.10

  	
  No Recourse Against Others

  	
   

  
	
  Section 11.11

  	
  Successors

  	
   

  
	
  Section 11.12

  	
  Multiple Originals

  	
   

  
	
  Section 11.13

  	
  Qualification of Indenture

  	
   

  
	
  Section 11.14

  	
  Table of Contents; Headings

  	
   

  
	
  Section 11.15

  	
  Submission to Jurisdiction; Service of Process

  	
   

  
	
  Section 11.16

  	
  Indemnification for Foreign Currency Judgments

  	
   

  
	
  Section 11.17

  	
  Severability

  	
   

  
	
   

  	
   

  	
   

  
	
  SCHEDULE I

  	
  Agreements

  	
   

  
	
   

  	
   

  	
   

  
	
  EXHIBIT A

  	
  Form of the Unregistered Note

  	
   

  
	
   

  	
   

  	
   

  
	
  EXHIBIT B

  	
  Form of the Registered Note

  	
   

  
	
   

  	
   

  	
   

  
	
  EXHIBIT C

  	
  Form of Supplemental Indenture

  	
   

  
				

 

iv

 

INDENTURE
dated as of December 18, 2003, between SHIP FINANCE INTERNATIONAL LIMITED, a
Bermuda exempted company (the “Company”), and WILMINGTON TRUST COMPANY, a
Delaware banking corporation (the “Trustee”) as Trustee.

 

Each party agrees as follows for the benefit of the
other parties and for the equal and ratable benefit of the Holders of (i) the
Company’s 81⁄2% Senior Notes due 2013, issued on the date hereof (the “Initial
Securities”), (ii) if and when issued, an unlimited principal amount
of additional 81⁄2% Senior Notes due 2013 in a non-registered offering or 81⁄2%
Senior Notes due 2013 in a registered offering of the Company that may be
offered from time to time subsequent to the Issue Date (the “Additional
Securities”) and (iii) if and when issued, the Company’s 81⁄2% Senior
Notes due 2013 that may be issued from time to time in exchange for Initial
Securities or any Additional Securities in an offer registered under the
Securities Act as provided in a Registration Rights Agreement (as hereinafter
defined the “Exchange Securities,” and together with the Initial
Securities and Additional Securities, the “Securities”).

 

ARTICLE
I

Definitions
and Incorporation by Reference

 

Section 1.1                                      Definitions.

 

“Additional Assets” means:

 

(1)                                  any
property or assets (other than Indebtedness and Capital Stock) used or useful
by the Company or a Restricted Subsidiary in a Related Business, including,
without limitation, a hull under construction or rights under a Vessel
Construction Contract, any installment payment under a Vessel Construction
Contract, and any repairs, improvements, additions, enhancements, drydocking or
capital improvement of any vessel;

 

(2)                                  the
Capital Stock of a Person that becomes a Restricted Subsidiary as a result of
the acquisition of such Capital Stock by the Company or a Restricted Subsidiary
of the Company; or

 

(3)                                  Capital
Stock constituting a minority interest in any Person that at such time is a
Restricted Subsidiary of the Company;

 

provided,
however,
that, in the case of clauses (2) and (3), such Restricted Subsidiary is
primarily engaged in a Related Business.

 

“Additional Securities” has the meaning
ascribed to it in the second introductory paragraph of this Indenture.

 

“Affiliate” of any specified Person means
any other Person, directly or indirectly, controlling or controlled by or under
direct or indirect common control with such specified Person. For the purposes
of this definition, “control” when used with respect to any Person means the
power to direct the management and policies of such Person, directly or
indirectly, whether through the ownership of voting securities, by contract or
otherwise; and the terms 

 

 

“controlling” and
“controlled” have meanings correlative to the foregoing.  For purposes of the foregoing, Knightsbridge
Tankers Limited shall be deemed to be an Affiliate of Frontline.

 

“Applicable Premium” means, with respect to
a Security at any Redemption Date, the greater of (i) 1.0% of the principal
amount of such Security and (ii) the excess of (A) the present value at such
time of (1) the redemption price of such Security at December 15, 2008 (such
redemption price as set forth in Section 5.1) plus (2) all required
interest payments due on such Security through December 15, 2008, computed
using a discount rate equal to the Treasury Rate plus 50 basis points, over
(B) the principal amount of such Security.

 

“Asset Disposition” means any direct or
indirect sale, lease (other than a charter or an operating lease entered into
in the ordinary course of business), transfer, issuance or other disposition
(including by way of a Total Loss), or a series of related sales, leases,
transfers, issuances or dispositions that are part of a common plan, of shares
of Capital Stock of a Subsidiary (other than directors’ qualifying shares),
property or other assets (each referred to for the purposes of this definition
as a “disposition”) by the Company or any of its Restricted Subsidiaries,
including any disposition by means of a merger, consolidation or similar
transaction.

 

Notwithstanding the preceding, the following items
shall not be deemed to be Asset Dispositions:

 

(1)                                  a
disposition by a Restricted Subsidiary to the Company or by the Company or a
Restricted Subsidiary to a Wholly Owned Subsidiary;

 

(2)                                  the
sale of Cash Equivalents in the ordinary course of business;

 

(3)                                  a
disposition of inventory in the ordinary course of business;

 

(4)                                  a
disposition of obsolete, scrap or worn out assets that are no longer useful in
the conduct of the business of the Company and its Restricted Subsidiaries and
that is disposed of in each case in the ordinary course of business;

 

(5)                                  transactions
permitted under Section 4.1;

 

(6)                                  an
issuance of Capital Stock by a Restricted Subsidiary of the Company to the
Company or to a Wholly Owned Subsidiary;

 

(7)                                  for
purposes of Section 3.7 only, the making of a Permitted Investment or a
disposition subject to Section 3.4;

 

(8)                                  dispositions
of assets in a single transaction or series of related transactions with an
aggregate fair market value in any calendar year of less than $5.0 million;

 

(9)                                  dispositions
in connection with Liens permitted to be incurred under this Indenture;

 

2

 

(10)                            the
licensing or sublicensing of intellectual property or other general intangibles
and licenses, leases or subleases of other property in the ordinary course of
business which do not materially interfere with the business of the Company and
its Restricted Subsidiaries;

 

(11)                            foreclosure
on assets; and

 

(12)                            Asset
Swaps.

 

“Asset Swap” means concurrent purchase and
sale or exchange of Related Business Assets between the Company or any of its
Restricted Subsidiaries and another Person; provided that any cash received must be
applied in accordance with Section 3.7.

 

“Attributable Indebtedness” in respect of a
Sale/Leaseback Transaction means, as at the time of determination, the present
value (discounted at the rate of interest implicit in such transaction
determined in accordance with GAAP) of the total obligations of the lessee for
rental payments during the remaining term of the lease included in such
Sale/Leaseback Transaction (including any period for which such lease has been
extended).

 

“Available
Surplus Cash” means, for any quarter, all cash and Cash
Equivalents on hand at the end of that quarter, less the amount of any cash
reserves necessary or appropriate in the reasonable discretion of the Board of
Directors to (a) provide for the proper conduct of the business of the
Company and its Subsidiaries, including reserves for anticipated future credit
needs and future capital expenditures, after that quarter, or (b) comply
with applicable law or any loan agreement, security agreement, mortgage, debt
instrument or other agreement or obligation to which the company is a party or
by which the Company or any Subsidiary is bound or to which its assets are
subject.

 

“Average Life” means, as of the date of
determination, with respect to any Indebtedness or Preferred Stock, the
quotient obtained by dividing (1) the sum of the products of the numbers of
years from the date of determination to the dates of each successive scheduled
principal payment of such Indebtedness or redemption or similar payment with
respect to such Preferred Stock multiplied by the amount of such payment by (2)
the sum of all such payments.

 

“Bankruptcy Law” means Title 11, United
States Code or any bankruptcy, insolvency or other similar law of Bermuda or
any other foreign jurisdiction or any similar Federal, state or foreign law for
the relief of debtors.

 

“Board of Directors” means, as to any
Person, the board of directors of such Person or any duly authorized committee
thereof.

 

“Board Resolution” means a copy of a
resolution certified by the Secretary or an Assistant Secretary of a Person to
have been duly adopted by the Board of Directors of such Person and to be in
full force and effect on the date of such certification.

 

“Capital Stock” of any Person means any and
all shares, interests, rights to purchase, warrants, options, participation or
other equivalents of or interests in (however designated) equity of such
Person, including any Preferred Stock, but excluding any debt securities
convertible into such equity.

 

3

 

“Capitalized Lease Obligations” means an
obligation that is required to be classified and accounted for as a capitalized
lease for financial reporting purposes in accordance with GAAP, and the amount
of Indebtedness represented by such obligation will be the capitalized amount
of such obligation at the time any determination thereof is to be made as
determined in accordance with GAAP, and the Stated Maturity thereof will be the
date of the last payment of rent or any other amount due under such lease prior
to the first date such lease may be terminated without penalty.

 

“Cash Equivalents” means:

 

(1)                                  securities
issued or directly and fully guaranteed or insured by the United States
Government or any agency or instrumentality of the United States (provided that
the full faith and credit of the United States is pledged in support thereof),
having maturities of not more than one year from the date of acquisition;

 

(2)                                  marketable
general obligations issued by any state of the United States of America or any
political subdivision of any such state or any public instrumentality thereof
maturing within one year from the date of acquisition and, at the time of
acquisition, having a credit rating of “A” or better from either S&P or
Moody’s;

 

(3)                                  certificates
of deposit, time deposits, euro dollar time deposits, overnight bank deposits
or bankers’ acceptances having maturities of not more than one year from the
date of acquisition thereof issued by any bank or financial institution the
long-term debt of which is rated at the time of acquisition thereof at least
“A” or the equivalent thereof by S&P, or “A” or the equivalent thereof by
Moody’s, and having combined capital and surplus in excess of $500.0 million;

 

(4)                                  repurchase
obligations with a term of not more than seven days for underlying securities
of the types described in clauses (1), (2) and (3) entered into with any bank
meeting the qualifications specified in clause (3) above;

 

(5)                                  commercial
paper rated at the time of acquisition thereof at least “A-2” or the equivalent
thereof by S&P or “P-2” or the equivalent thereof by Moody’s, or carrying
an equivalent rating by a nationally recognized Rating Agency, if both of the
two named Rating Agencies cease publishing ratings of investments, and in any
case maturing within one year after the date of acquisition thereof; and

 

(6)                                  interests
in any investment company or money market fund which invests primarily in
instruments of the type specified in clauses (1) through (5) above.

 

“Change of Control” means:

 

(1)                                  any
“person” or “group” of related persons (as such terms are used in Sections
13(d) and 14(d) of the Exchange Act), other than one or more Permitted Holders,
is or becomes the beneficial owner (as defined in Rules 13d-3 and 13d-5 under
the Exchange Act, except that such person or group shall be deemed to have
“beneficial ownership” of all shares that any such person or group has the
right to acquire, whether such right is exercisable immediately or only after
the passage of time), directly or indirectly, of more than 50% of the total
voting power of

 

4

 

the Voting
Stock of the Company (or its successor by merger, consolidation or purchase of
all or substantially all of its assets) (for the purposes of this clause, such
person or group shall be deemed to beneficially own any Voting Stock of the
Company held by a parent entity, if such person or group “beneficially owns”
(as defined above), directly or indirectly, more than 50% of the voting power
of the Voting Stock of such parent entity); or

 

(2)                                  the
first day on which a majority of the members of the Board of Directors (but not
committees thereof) of the Company are not Continuing Directors; or

 

(3)                                  the
sale, lease, transfer, conveyance or other disposition (other than by way of
merger or consolidation), in one or a series of related transactions, of all or
substantially all of the assets of the Company and its Restricted Subsidiaries
taken as a whole to any “person” (as such term is used in Sections 13(d) and
14(d) of the Exchange Act); or

 

(4)                                  the
adoption by the stockholders of the Company of a plan or proposal for the
liquidation or dissolution of the Company.

 

“Charter Ancillary Agreement” means the
Charter Ancillary Agreement to be entered into pursuant to the Fleet Purchase
Agreement between the Company, the Charterer and others, as such agreement
shall be amended from time to time.

 

“Charterer” means Frontline Shipping
Limited, a Bermuda exempted company and wholly owned subsidiary of Frontline,
and its successors.

 

“Charters” means the Charters contemplated
by the Fleet Purchase Agreement.

 

“Code” means the Internal Revenue Code of
1986, as amended.

 

“Common Stock” means with respect to any
Person, any and all shares, interest or other participations in, and other
equivalents (however designated and whether voting or nonvoting) of such
Person’s common stock whether or not outstanding on the Issue Date, and
includes, without limitation, all series and classes of such common stock.

 

“Consolidated Cash Flow” for any period
means, without duplication, the Consolidated Net Income of the Company for such
period, plus
the portion of lease payments allocated as a reduction in the net investment in
capital leases in accordance with GAAP to the extent not included in
Consolidated Net Income, plus the following to the extent deducted
in calculating such Consolidated Net Income:

 

(1)                                  Consolidated
Interest Expense;

 

(2)                                  Consolidated
Income Taxes;

 

(3)                                  consolidated
depreciation expense;

 

(4)                                  consolidated
amortization of intangibles;

 

5

 

(5)                                  other
non-cash charges reducing Consolidated Net Income (excluding any such non-cash
charge to the extent it represents an accrual of or reserve for cash charges in
any future period or amortization of a prepaid cash expense that was paid in a
prior period not included in the calculation).

 

Notwithstanding the preceding sentence, clauses (2) through (5)
relating to amounts of a Restricted Subsidiary will be added to Consolidated
Net Income of the Company to compute its Consolidated Cash Flow only to the
extent (and in the same proportion) that the net income (loss) of such
Restricted Subsidiary was included in calculating the Consolidated Net Income
of the Company and, to the extent the amounts set forth in clause (1) and
clauses (3) through (5) are in excess of those necessary to offset a net loss
of such Restricted Subsidiary or if such Restricted Subsidiary has net income
for such period included in Consolidated Net Income, only if a corresponding
amount would be permitted at the date of determination to be dividended to the
Company by such Restricted Subsidiary without prior approval (that has not been
obtained), pursuant to the terms of its charter and all agreements,
instruments, judgments, decrees, orders, statutes, rules and governmental
regulations applicable to that Restricted Subsidiary or its stockholders.

 

“Consolidated Coverage Ratio” means as of
any date of determination, with respect to any Person, the ratio of (x) the
aggregate amount of Consolidated Cash Flow of such Person for the period of the
most recent four consecutive fiscal quarters ending prior to the date of such
determination for which financial statements are in existence to (y)
Consolidated Interest Expense for such four fiscal quarters, provided,
however,
that:

 

(1)                                  if
the Company or any Restricted Subsidiary:

 

(a)                                  has
Incurred any Indebtedness since the beginning of such period that remains
outstanding on such date of determination or if the transaction giving rise to
the need to calculate the Consolidated Coverage Ratio is an Incurrence of
Indebtedness, Consolidated Cash Flow and Consolidated Interest Expense for such
period will be calculated after giving effect on a pro forma basis to such
Indebtedness as if such Indebtedness had been Incurred on the first day of such
period (except that in making such computation, the amount of Indebtedness
under any revolving credit facility outstanding on the date of such calculation
will be computed based on (i) the average daily balance of such Indebtedness
during such four fiscal quarters or such shorter period for which such facility
was outstanding or (ii) if such facility was created after the end of such four
fiscal quarters, the average daily balance of such Indebtedness during the
period from the date of creation of such facility to the date of such
calculation) and the discharge of any other Indebtedness repaid, repurchased,
defeased or otherwise discharged with the proceeds of such new Indebtedness as
if such discharge had occurred on the first day of such period; or

 

(b)                                 has
repaid, repurchased, defeased or otherwise discharged any Indebtedness since
the beginning of the period that is no longer outstanding on such date of
determination or if the transaction giving rise to the need to calculate the
Consolidated Coverage Ratio involves a discharge of Indebtedness (in each case
other than Indebtedness incurred under any revolving credit facility unless
such Indebtedness has 

 

6

 

been
permanently repaid and the related commitment terminated), Consolidated Cash
Flow and Consolidated Interest Expense for such period will be calculated after
giving effect on a pro forma basis to such discharge of such Indebtedness,
including with the proceeds of such new Indebtedness or otherwise, as if such
discharge had occurred on the first day of such period;

 

(2)                                  if
since the beginning of such period the Company or any Restricted Subsidiary
will have made any Asset Disposition or if the transaction giving rise to the
need to calculate the Consolidated Coverage Ratio is an Asset Disposition:

 

(a)                                  the
Consolidated Cash Flow for such period will be reduced by an amount equal to
the Consolidated Cash Flow (if positive) attributable to the assets which are
the subject of such Asset Disposition for such period or increased by an amount
equal to the Consolidated Cash Flow (if negative) directly attributable thereto
for such period; and

 

(b)                                 Consolidated
Interest Expense for such period will be reduced by an amount equal to the
Consolidated Interest Expense attributable to any Indebtedness of the Company
or any Restricted Subsidiary repaid, repurchased, defeased or otherwise
discharged with respect to the Company and its continuing Restricted
Subsidiaries in connection with such Asset Disposition for such period (or, if
the Capital Stock of any Restricted Subsidiary is sold, the Consolidated
Interest Expense for such period attributable to the Indebtedness of such
Restricted Subsidiary to the extent the Company and its continuing Restricted
Subsidiaries are no longer liable for such Indebtedness after such sale);

 

(3)                                  if
since the beginning of such period the Company or any Restricted Subsidiary (by
merger or otherwise) will have made an Investment in any Restricted Subsidiary
(or any Person which becomes a Restricted Subsidiary or is merged with or into
the Company) or an acquisition of assets, including any acquisition of assets
occurring in connection with a transaction causing a calculation to be made
hereunder, which constitutes all or substantially all of an operating unit,
division or line of business (or for purposes of this subsection, any Vessel),
Consolidated Cash Flow and Consolidated Interest Expense for such period will
be calculated after giving pro forma effect thereto (including the Incurrence
of any Indebtedness) as if such Investment or acquisition occurred on the first
day of such period; and

 

(4)                                  if
since the beginning of such period any Person that subsequently became a
Restricted Subsidiary or was merged with or into the Company or any Restricted
Subsidiary since the beginning of such period will have made any Asset
Disposition or any Investment or acquisition of assets that would have required
an adjustment pursuant to clause (2) or (3) above if made by the Company or a
Restricted Subsidiary during such period, Consolidated Cash Flow and
Consolidated Interest Expense for such period will be calculated after giving
pro forma effect thereto as if such Asset Disposition or Investment or
acquisition of assets occurred on the first day of such period.

 

For purposes of this definition, whenever pro forma effect is to be
given to any calculation under this definition, the pro forma calculations will
be determined in good faith by a responsible financial or accounting officer of
the Company (including pro forma expense and cost reductions 

 

7

 

calculated on a basis consistent with Regulation S-X under the
Securities Act). For purposes of this definition, whenever pro forma effect is
to be given to an acquisition or construction of a Vessel or the Capital Stock
of a Vessel owning company or the financing thereof, the Company may
(a) if the relevant Vessel is to be subject to a time charter with a
remaining term longer than six months, apply pro forma earnings (losses) for
such period for such Vessel based upon such charter, or (b) if such Vessel
is not to be subject to a time charter, is under time charter that is due to
expire within six months or less, or is to be subject to charter on a voyage
charter basis (whether or not any such charter is in place for such Vessel),
then in each case apply earnings (losses) for such period for such Vessel based
upon the average of the historical earnings of comparable Vessels in the Company’s
fleet (as determined in good faith by its Board of Directors) during such
period or if there is no such comparable Vessel, then based upon industry
average earnings for comparable Vessels (as determined in good faith by its
Board of Directors). If any Indebtedness bears a floating rate of interest and
is being given pro forma effect, the interest expense on such Indebtedness will
be calculated as if the rate in effect on the date of determination had been
the applicable rate for the entire period (taking into account any Interest
Rate Agreement applicable to such Indebtedness).

 

“Consolidated Income Taxes” means, with
respect to for any period, taxes imposed upon the Company and its consolidated
Restricted Subsidiaries or other payments required to be made by any such
Person by any governmental authority which taxes or other payments are
calculated by reference to the income or profits any of the Company and its
consolidated Restricted Subsidiaries (to the extent such income or profits were
included in computing Consolidated Net Income for such period), regardless of
whether such taxes or payments are required to be remitted to any governmental
authority.

 

“Consolidated Interest Expense” means, for
any period, the total interest expense of the Company and its consolidated
Restricted Subsidiaries, whether paid or accrued, plus, to the extent not
included in such interest expense:

 

(1)                                  interest
expense attributable to Capitalized Lease Obligations and the interest portion
of rent expense associated with Attributable Indebtedness in respect of the
relevant lease giving rise thereto, determined as if such lease were a
capitalized lease in accordance with GAAP and the interest component of any
deferred payment obligations;

 

(2)                                  amortization
of debt discount and debt issuance cost;

 

(3)                                  non-cash
interest expense;

 

(4)                                  commissions,
discounts and other fees and charges owed with respect to letters of credit and
bankers’ acceptance financing;

 

(5)                                  the
interest expense on Indebtedness of another Person that is Guaranteed by such
Person or one of its Restricted Subsidiaries or secured by a Lien on assets of
such Person or one of its Restricted Subsidiaries;

 

(6)                                  net
costs associated with Hedging Obligations (other than under Fuel Hedging
Agreements) (including amortization of fees);

 

8

 

(7)                                  the
consolidated interest expense of the Company and its Restricted Subsidiaries
that was capitalized during such period;

 

(8)                                  the
product of (a) all dividends paid or payable in cash, Cash Equivalents or
Indebtedness or accrued during such period on any series of Disqualified Stock
of the Company or on Preferred Stock of its Restricted Subsidiaries payable to
a party other than the Company or a Wholly Owned Subsidiary, times (b) a fraction,
the numerator of which is one and the denominator of which is one minus the
then current combined federal, state, provincial and local statutory tax rate
of the Company, expressed as a decimal, in each case, on a consolidated basis
and in accordance with GAAP; and

 

(9)                                  the
cash contributions to any employee stock ownership plan or similar trust to the
extent such contributions are used by such plan or trust to pay interest or
fees to any Person (other than the Company) in connection with Indebtedness
Incurred by such plan or trust; provided, however, that there will be
excluded therefrom any such interest expense of any Unrestricted Subsidiary to
the extent the related Indebtedness is not Guaranteed or paid by the Company or
any Restricted Subsidiary.

 

For purposes of this definition, total interest expense will be
determined after giving effect to any net payments made or received by the
Company and its Subsidiaries with respect to Interest Rate Agreements.

 

“Consolidated Net Income” means, for any period,
the net income (loss) of the Company and its consolidated Restricted
Subsidiaries determined in accordance with GAAP; provided, however, that
there will not be included in such Consolidated Net Income:

 

(1)                                  any
net income (loss) of any Person if such Person is not a Restricted Subsidiary,
except that:

 

(a)                                  subject
to the limitations contained in clauses (3), (4) and (5) below, the Company’s
equity in the net income of any such Person for such period will be included in
such Consolidated Net Income up to the aggregate amount of cash actually
distributed by such Person during such period to the Company or a Restricted
Subsidiary as a dividend or other distribution (subject, in the case of a
dividend or other distribution to a Restricted Subsidiary, to the limitations
contained in clause (2) below); and

 

(b)                                 the
Company’s equity in a net loss of any such Person (other than an Unrestricted
Subsidiary) for such period will be included in determining such Consolidated
Net Income to the extent such loss has been funded with cash from the Company
or a Restricted Subsidiary;

 

(2)                                  any
net income (but not loss) of any Restricted Subsidiary if such Subsidiary is
subject to restrictions, directly or indirectly, on the payment of dividends or
the making of distributions by such Restricted Subsidiary, directly or
indirectly, to the Company, except that:

 

(a)                                  subject
to the limitations contained in clauses (3), (4) and (5) below, the Company’s
equity in the net income of any such Restricted Subsidiary for such period will
be included in such Consolidated Net Income up to the aggregate amount of cash 

 

9

 

that could
have been distributed by such Restricted Subsidiary during such period to the
Company or another Restricted Subsidiary as a dividend (subject, in the case of
a dividend to another Restricted Subsidiary, to the limitation contained in
this clause); and

 

(b)                                 the
Company’s equity in a net loss of any such Restricted Subsidiary for such
period will be included in determining such Consolidated Net Income;

 

(3)                                  any
gain (loss) realized upon the sale, writedown or other disposition of any
property, plant or equipment of the Company or its consolidated Restricted
Subsidiaries (including pursuant to any Sale/Leaseback Transaction) and any
gain (loss) realized upon the sale or other disposition of any Capital Stock of
any Person in each case, not in the ordinary course of business.

 

(4)                                  any
extraordinary gain or loss; and

 

(5)                                  the
cumulative effect of a change in accounting principles.

 

“Consolidated Net Tangible Assets” of any
Person means, as of any date of determination, the sum of the assets of such
Person after eliminating intercompany items, determined on a consolidated basis
in accordance with GAAP, including appropriate deductions for any minority
interest in tangible assets of such Person’s Subsidiaries, less (without
duplication) (a) the net book value of all of its licenses, patents, patent
applications, copyrights, trademarks, trade names, goodwill, non-compete agreements
or organizational expenses and other like intangibles, (b) unamortized
Indebtedness discount and expenses, (c) all reserves for depreciation,
obsolescence, depletion and amortization of its properties and (d) all other
proper reserves which in accordance with GAAP should be provided in connection
with the business conducted by such Person.

 

“Continuing Directors” means, as of any
date of determination, any member of the Board of Directors of the Company who:
(1) was a member of such Board of Directors on the date of this Indenture; or
(2) was nominated for election or elected to such Board of Directors with the
approval of a majority of the Continuing Directors who were members of such
Board at the time of such nomination or election.

 

“Credit Facilities” means one or more debt
facilities with commercial banks providing for revolving credit loans, term
loans, receivables financing or trade letters of credit, in each case as
amended, restated, modified, renewed, refunded, replaced or refinanced by commercial
banks in whole or in part from time to time.

 

“Currency Agreement” means in respect of a
Person any foreign exchange contract, currency swap agreement or other similar
agreement as to which such Person is a party or a beneficiary.

 

“Custodian” means any receiver, trustee,
assignee, liquidator, custodian or similar official under any Bankruptcy Law.

 

“Default” means any event which is, or
after notice or passage of time or both would be, an Event of Default.

 

10

 

“Definitive Securities” means certificated
Securities.

 

“Disqualified Stock” means, with respect to
any Person, any Capital Stock of such Person which by its terms (or by the
terms of any security into which it is convertible or for which it is
exchangeable) or upon the happening of any event:

 

(1)                                  matures
or is mandatorily redeemable pursuant to a sinking fund obligation or
otherwise;

 

(2)                                  is
convertible or exchangeable for Indebtedness or Disqualified Stock (excluding
Capital Stock which is convertible or exchangeable solely at the option of the
Company or a Restricted Subsidiary); or

 

(3)                                  is
redeemable at the option of the holder of the Capital Stock thereof, in whole
or in part,

 

in each case on or prior to the date that is 91 days after the date (a)
on which the Securities mature or (b) on which there are no Securities
outstanding, provided that only the portion of Capital Stock which so matures
or is mandatorily redeemable, is so convertible or exchangeable or is so
redeemable at the option of the holder thereof prior to such date will be
deemed to be Disqualified Stock; provided, further, that any Capital Stock
that would constitute Disqualified Stock solely because the holders thereof
have the right to require the Company to repurchase such Capital Stock upon the
occurrence of a change of control or asset disposition (each defined in a
substantially identical manner to the corresponding definitions in this
Indenture) shall not constitute Disqualified Stock if the terms of such Capital
Stock (and all such securities into which it is convertible or for which it is
ratable or exchangeable) provide that the Company may not repurchase or redeem
any such Capital Stock (and all such securities into which it is convertible or
for which it is ratable or exchangeable) pursuant to such provision prior to
compliance by the Company with the provisions of this Indenture described under
Section 3.9 and Section 3.7 and such repurchase or
redemption complies with Section 3.4.

 

“DTC” means The Depository Trust Company,
its nominees and their respective successors and assigns, or such other
depository institution hereafter appointed by the Company.

 

“Escrow Agent” means the Wilmington Trust
Company in its capacity as Escrow Agent under the Escrow Agreement.

 

“Escrow Agreement” means the Escrow
Agreement dated as of the date of this Indenture among the Initial Purchasers,
Frontline, the Company, the Trustee and the Escrow Agent.

 

“Escrow Funds” has the meaning set forth in
the Escrow Agreement.

 

“Escrow Release” means the release of the
Escrow Funds held under the Escrow Agreement to the Company pursuant to Section
5(a) thereof.

 

“Exchange Act” means the Securities
Exchange Act of 1934, as amended.

 

11

 

“Exchange Offer” has the meaning set forth
in the applicable Registration Rights Agreement.

 

“Exchange Securities” has the meaning
ascribed to it in the second introductory paragraph of this Indenture.

 

“Fleet Purchase Agreement” means the Fleet
Purchase Agreement dated as of December 11, 2003 between Frontline and the
Company.

 

“Fleet Purchase Completion” means the
satisfaction of the conditions specified in clauses (1) through (7) of Annex A
to the Escrow Agreement, which shall be evidenced by an Officers’ Certificate delivered
to the Trustee.

 

“Frontline” means Frontline Ltd., an
exempted Bermuda company, and its successors.

 

“Frontline Management” means Frontline
Management (Bermuda) Limited, a Bermuda exempted company and wholly owned
subsidiary of Frontline.

 

“Fuel Hedging Agreements” means any spot,
forward or option fuel price protection agreements and other types of fuel
hedging agreements designed to protect against or manage exposure to
fluctuations in fuel prices.

 

“GAAP” means generally accepted accounting
principles in the United States of America as in effect as of the date of this
Indenture, including those set forth in the opinions and pronouncements of the
Accounting Principles Board of the American Institute of Certified Public
Accountants and statements and pronouncements of the Financial Accounting
Standards Board or in such other statements by such other entity as approved by
a significant segment of the accounting profession. All ratios and computations
based on GAAP contained in this Indenture will be computed in conformity with
GAAP.

 

“Guarantee” means any obligation,
contingent or otherwise, of any Person directly or indirectly guaranteeing any
Indebtedness of any other Person and any obligation, direct or indirect,
contingent or otherwise, of such Person:

 

(1)                                  to
purchase or pay (or advance or supply funds for the purchase or payment of)
such Indebtedness of such other Person (whether arising by virtue of
partnership arrangements, or by agreement to keep-well, to purchase assets,
goods, securities or services, to take-or-pay, or to maintain financial
statement conditions or otherwise); or

 

(2)                                  entered
into for purposes of assuring in any other manner the obligee of such
Indebtedness of the payment thereof or to protect such obligee against loss in
respect thereof (in whole or in part); provided, however, that the term
“Guarantee” will not include endorsements for collection or deposit in the
ordinary course of business. The term “Guarantee” used as a verb has the
corresponding meaning.

 

“Guarantor Subordinated Obligation” means,
with respect to a Subsidiary Guarantor, any Indebtedness of such Subsidiary
Guarantor (whether outstanding on the Issue Date or 

 

12

 

thereafter
Incurred) which is expressly subordinate in right of payment to the obligations
of such Subsidiary Guarantor under its Subsidiary Guarantee pursuant to a
written agreement.

 

“Hedging Obligations” of any Person means
the obligations of such Person pursuant to any Interest Rate Agreement, Currency
Agreement or Fuel Hedging Agreement.

 

“Incur” means issue, create, assume,
Guarantee, incur or otherwise become liable for; provided, however,
that any Indebtedness or Capital Stock of a Person existing at the time such
Person becomes a Restricted Subsidiary (whether by merger, consolidation,
acquisition or otherwise) will be deemed to be incurred by such Restricted
Subsidiary at the time it becomes a Restricted Subsidiary; and the terms
“Incurring,” “Incurred” and “Incurrence” have meanings correlative to the
foregoing.

 

“Indebtedness” means, with respect to any
Person on any date of determination (without duplication):

 

(1)                                  the
principal of and premium (if any) in respect of indebtedness of such Person for
borrowed money;

 

(2)                                  the
principal of and premium (if any) in respect of obligations of such Person
evidenced by bonds, debentures, notes or other similar instruments;

 

(3)                                  the
principal component of all obligations of such Person in respect of letters of
credit, bankers’ acceptances or other similar instruments (including
reimbursement obligations with respect thereto except to the extent such
reimbursement obligation relates to a trade payable and such obligation is
satisfied within 30 days of Incurrence);

 

(4)                                  the
principal component of all obligations of such Person to pay the deferred and
unpaid purchase price of property (except trade payables), which purchase price
is due more than six months after the date of placing such property in service
or taking delivery and title thereto;

 

(5)                                  Capitalized
Lease Obligations and all Attributable Indebtedness of such Person;

 

(6)                                  the
principal component or liquidation preference of all obligations of such Person
with respect to the redemption, repayment or other repurchase of any
Disqualified Stock or, with respect to any Subsidiary, any Preferred Stock (but
excluding, in each case, any accrued dividends);

 

(7)                                  the
principal component of all Indebtedness of other Persons secured by a Lien on
any asset of such Person, whether or not such Indebtedness is assumed by such
Person; provided,
however,
that the amount of such Indebtedness will be the lesser of (a) the fair market
value of such asset at such date of determination and (b) the amount of such
Indebtedness of such other Persons;

 

(8)                                  the
principal component of Indebtedness of other Persons to the extent Guaranteed
by such Person; and

 

13

 

(9)                                  to
the extent not otherwise included in this definition, net obligations of such
Person under Currency Agreements, Fuel Hedging Agreements and Interest Rate
Agreements (the amount of any such obligations to be equal at any time to the
termination value of such agreement or arrangement giving rise to such
obligation that would be payable by such Person at such time).

 

The amount of Indebtedness of any Person at any date will be the
outstanding balance at such date of all unconditional obligations as described
above and the maximum liability, upon the occurrence of the contingency giving
rise to the obligation, of any contingent obligations at such date.

 

In addition, “Indebtedness” of any Person shall
include Indebtedness described in the preceding paragraph that would not appear
as a liability on the balance sheet of such Person if:

 

(1)                                  such
Indebtedness is the obligation of a Joint Venture;

 

(2)                                  such
Person or a Restricted Subsidiary of such Person is a general partner of the
Joint Venture (a “General Partner”); and

 

(3)                                  there
is recourse, by contract or operation of law, with respect to the payment of
such Indebtedness to property or assets of such Person or a Restricted
Subsidiary of such Person; and then such Indebtedness shall be included in an
amount not to exceed:

 

(a)                                  the
lesser of (x) the net assets of the General Partner and (y) the amount of such
obligations to the extent that there is recourse, by contract or operation of
law, to the property or assets of such Person or a Restricted Subsidiary of
such Person; or

 

(b)                                 if
less than the amount determined pursuant to clause (a) immediately above, the
actual amount of such Indebtedness that is recourse to such Person or a
Restricted Subsidiary of such Person, if the Indebtedness is evidenced by a
writing and is for a determinable amount and the related interest expense shall
be included in Consolidated Interest Expense to the extent actually paid by the
Company or its Restricted Subsidiaries.

 

“Indenture” means this Indenture as amended
or supplemented from time to time.

 

“Independent Appraiser” means a Person:

 

(1)                                  engaged
in the business of appraising vessels who is generally acceptable to
institutional lenders to the shipping industry; and

 

(2)                                  who
(a) is independent of the parties to the transaction in question and their
Affiliates and (b) is not connected with the Company, any of the Restricted
Subsidiaries or any of such Affiliates as an officer, director, employee,
promoter, underwriter, trustee, partner or person performing similar functions.

 

“Initial Purchasers” means Jefferies &
Company, Inc. and Citigroup Global Markets Inc.

 

14

 

“Initial Securities” has the meaning
ascribed to it in the second introductory paragraph of this Indenture.

 

“Interest Rate Agreement” means with
respect to any Person any interest rate protection agreement, interest rate
future agreement, interest rate option agreement, interest rate swap agreement,
interest rate cap agreement, interest rate collar agreement, interest rate
hedge agreement or other similar agreement or arrangement as to which such
Person is party or a beneficiary.

 

“Investment” means, with respect to any
Person, all investments by such Person in other Persons (including Affiliates)
in the form of any direct or indirect advance, loan (other than advances to
customers in the ordinary course of business) or other extension of credit
(including by way of Guarantee or similar arrangement, but excluding any debt
or extension of credit represented by a bank deposit other than a time deposit)
or capital contribution to (by means of any transfer of cash or other property
to others or any payment for property or services for the account or use of
others), or any purchase or acquisition of Capital Stock, Indebtedness or other
similar instruments issued by, such Person and all other items that are or
would be classified as investments on a balance sheet prepared in accordance
with GAAP; provided
that none of the following will be deemed to be an Investment:

 

(1)                                  Hedging
Obligations entered into in the ordinary course of business and in compliance
with this Indenture;

 

(2)                                  endorsements
of negotiable instruments and documents in the ordinary course of business; and

 

(3)                                  an
acquisition of assets, Capital Stock or other securities by the Company or a
Subsidiary for consideration to the extent such consideration consists of
Common Stock of the Company.

 

For purposes of Section 3.4:

 

(1)                                  “Investment”
will include the portion (proportionate to the Company’s equity interest in a
Restricted Subsidiary to be designated as an Unrestricted Subsidiary) of the
fair market value of the net assets of such Restricted Subsidiary of the
Company at the time that such Restricted Subsidiary is designated an
Unrestricted Subsidiary; provided, however, that upon a
redesignation of such Subsidiary as a Restricted Subsidiary, the Company will
be deemed to continue to have a permanent “Investment” in an Unrestricted
Subsidiary in an amount (if positive) equal to (a) the Company’s “Investment”
in such Subsidiary at the time of such redesignation less (b) the portion
(proportionate to the Company’s equity interest in such Subsidiary) of the fair
market value of the net assets (as conclusively determined by the Board of
Directors of the Company in good faith) of such Subsidiary at the time that
such Subsidiary is so re-designated a Restricted Subsidiary; and

 

(2)                                  any
property transferred to or from an Unrestricted Subsidiary will be valued at
its fair market value at the time of such transfer, in each case as determined
in good faith by the Board of Directors of the Company.

 

15

 

“Investment
Grade Rating” means a rating equal to or higher than “Baa3”
(or the equivalent) by Moody’s or “BBB-” (or the equivalent) by S&P.

 

“Issue Date” means the first date on which
the Initial Securities are originally issued.

 

“Joint Venture” means a partnership or
joint venture that is not a Restricted Subsidiary.

 

“Lien” means any mortgage, pledge, security
interest, encumbrance, lien or charge of any kind (including any conditional
sale or other title retention agreement or lease in the nature thereof).

 

“Material Agreements” means the Charters,
the Charter Ancillary Agreement, the Performance Guarantee and the Management
Agreements, each entered into or to be entered into prior to the Escrow Release
in accordance with the Fleet Purchase Agreement.

 

“Moody’s” means Moody’s Investors Service,
Inc, or any successor to the rating agency business thereof.

 

“Net Available Cash” from an Asset
Disposition means cash payments actually received (including any cash payments
received by way of deferred payment of principal pursuant to a note or
installment receivable or otherwise, but only as and when received, but
excluding any other consideration received in the form of assumption by the
acquiring person of Indebtedness or other obligations relating to the
properties or assets that are the subject of such Asset Disposition or received
in any other noncash form) therefrom, in each case net of:

 

(1)                                  all
legal, accounting, investment banking, title and recording tax expenses,
commissions and other fees and expenses incurred, and all Federal, state,
provincial, foreign and local taxes required to be paid or accrued as a
liability under GAAP (after taking into account any available tax credits or
deductions and any tax sharing agreements), as a consequence of such Asset
Disposition;

 

(2)                                  all
payments made on any Indebtedness which is secured by any assets subject to
such Asset Disposition, in accordance with the terms of any Lien upon such
assets, or which must by its terms, or in order to obtain a necessary consent
to such Asset Disposition, or by applicable law be repaid out of the proceeds
from such Asset Disposition;

 

(3)                                  all
distributions and other payments required to be made to minority interest
holders in Subsidiaries or joint ventures as a result of such Asset
Disposition;

 

(4)                                  the
deduction of appropriate amounts to be provided by the seller as a reserve, in
accordance with GAAP, against any liabilities associated with the assets
disposed of in such Asset Disposition and retained by the Company or any Restricted
Subsidiary after such Asset Disposition; and

 

(5)                                  all
expenditures incurred to inspect, repair or modify a Vessel and bring such
Vessel to the condition and place of delivery in connection with the sale of
such Vessel as may be specified in the related purchase and sale agreement or
otherwise as the Board of Directors of the Company shall determine as advisable
in connection with such sale.

 

16

 

“Net Cash Proceeds,” with respect to any
issuance or sale of Capital Stock, means the cash proceeds of such issuance or
sale actually received net of attorneys’ fees, accountants’ fees, underwriters’
or placement agents’ fees, listing fees, discounts or commissions and
brokerage, consultant and other fees and charges actually incurred in
connection with such issuance or sale and net of taxes paid or payable as a
result of such issuance or sale (after taking into account any available tax
credit or deductions and any tax sharing arrangements).

 

“Non-Recourse Debt” means Indebtedness as
to which:

 

(1)                                  neither
the Company nor any Restricted Subsidiary (a) provides any Guarantee or credit
support of any kind (including any undertaking, guarantee, indemnity, agreement
or instrument that would constitute Indebtedness) or (b) is directly or
indirectly liable (as a guarantor or otherwise);

 

(2)                                  no
default with respect to which (including any rights that the holders thereof
may have to take enforcement action against an Unrestricted Subsidiary) would
permit (upon notice, lapse of time or both) any holder of any other
Indebtedness of the Company or any Restricted Subsidiary to declare a default
under such other Indebtedness or cause the payment thereof to be accelerated or
payable prior to its stated maturity; and

 

(3)                                  there
is no recourse against any of the assets of the Company or its Restricted
Subsidiaries.

 

“Non-U.S. Person” means a person who is not
a U.S. person, as defined in Regulation S.

 

“Note Register” has the meaning ascribed to
it Section 2.3.

 

“Offering  Circular” means the Offering
Circular dated December 11, 2003 pursuant to which the Initial Securities were
offered for sale.

 

“Officer” means the Chairman of the Board,
the Chief Executive Officer, the President, the Chief Financial Officer, any
Vice President, the Treasurer or the Secretary of the Company.

 

“Officers’ Certificate” means a certificate
signed by two Officers or by an Officer and either an Assistant Treasurer or an
Assistant Secretary of the Company.

 

“Opinion of Counsel” means a written
opinion from legal counsel who is reasonably acceptable to the Trustee.  The counsel may be an employee of or counsel
to the Company or the Trustee.

 

“Pari Passu Indebtedness” means
Indebtedness that ranks equally in right of payment to the Securities.

 

“Permitted Holders” means Frontline and its
Affiliates.

 

17

 

“Permitted Investment” means an Investment
by the Company or any Restricted Subsidiary in:

 

(1)                                  a
Restricted Subsidiary or a Person which will, upon the making of such
Investment, become a Restricted Subsidiary; provided, however, that the primary
business of such Restricted Subsidiary is a Related Business;

 

(2)                                  another
Person if as a result of such Investment such other Person is merged or
consolidated with or into, or transfers or conveys all or substantially all its
assets to, the Company or a Restricted Subsidiary; provided, however,
that such Person’s primary business is a Related Business;

 

(3)                                  Investments
in Joint Ventures in connection with a Related Business in an aggregate
principal amount not to exceed, as of the most recent balance sheet date, the
lesser of (a) $25.0 million and (b) 2.5% of Consolidated Net Tangible Assets of
the Company at any one time outstanding;

 

(4)                                  cash
and Cash Equivalents;

 

(5)                                  receivables
owing to the Company or any Restricted Subsidiary created or acquired in the
ordinary course of business and payable or dischargeable in accordance with
customary trade terms; provided, however, that such trade
terms may include such concessionary trade terms as the Company or any such
Restricted Subsidiary deems reasonable under the circumstances;

 

(6)                                  payroll,
travel and similar advances to cover matters that are expected at the time of
such advances ultimately to be treated as expenses for accounting purposes and
that are made in the ordinary course of business;

 

(7)                                  stock,
obligations or securities received in settlement of debts created in the
ordinary course of business and owing to the Company or any Restricted
Subsidiary or in satisfaction of judgments or pursuant to any plan of
reorganization or similar arrangement upon the bankruptcy or insolvency of a
debtor;

 

(8)                                  Investments
made as a result of the receipt of non-cash consideration from an Asset
Disposition that was made pursuant to and in compliance with Section 3.7;

 

(9)                                  Investments
in existence on the Issue Date;

 

(10)                            Currency
Agreements, Fuel Hedging Agreements and Interest Rate Agreements and related
Hedging Obligations, which transactions or obligations are Incurred in compliance
with Section 3.3;

 

(11)                            Guarantees
issued in accordance with Section 3.3; and

 

(12)                            in
addition to the items referred to in clauses (1) through (11) above, so long as
no Event of Default has occurred and is continuing, Investments by the Company
or any of its 

 

18

 

Restricted
Subsidiaries, when taken together with other Investments made pursuant to this
clause (12), in an aggregate amount not to exceed $20.0 million outstanding at
any one time.

 

“Permitted Liens” means, with respect to
any Person:

 

(1)                                  Liens
securing Indebtedness and other obligations of the Company and its Restricted
Subsidiaries under Credit Facilities in an aggregate amount at any one time not
to exceed $1,160,000,000;

 

(2)                                  Liens
securing Indebtedness incurred to finance the construction, purchase or lease
of, or repairs, improvements or additions to, property of such Person,
including a Vessel (which term, for purposes of this clause (2), shall include
the Capital Stock of a Person substantially all of the assets of which is a
Vessel and any Related Assets, as the context may require); provided,
however, (A) subject to clause (B) below, in the case of a Vessel,
(i) except as provided in clauses (ii), (iii) and (iv) below, the principal amount
of Indebtedness secured by such a Lien does not exceed (x) with respect to
Indebtedness Incurred to finance the construction of such Vessel, 80% of the
sum of (1) the contract price pursuant to the Vessel Construction Contract for
such Vessel and (2) any other Ready for Sea Cost for such Vessel, and (y) with
respect to Indebtedness Incurred to finance the acquisition of such Vessel, 80%
of the sum of (1) the contract price for the acquisition of such Vessel and (2)
any other Ready for Sea Cost of such Vessel, (ii) in the case of Indebtedness
that matures within nine months after the Incurrence of such Indebtedness
(other than any Refinancing Indebtedness of such Indebtedness or Indebtedness
that matures within one year prior to the Stated Maturity of the Securities),
the principal amount of Indebtedness secured by such a Lien shall not exceed
the fair market value, as determined in good faith by the Board of Directors,
of such Vessel at the time such Lien is incurred, (iii) in the case of a
Sale/Leaseback Transaction, the principal amount of Indebtedness secured by
such a Lien shall not exceed the fair market value, as determined in good faith
by the Board of Directors, of such Vessel at the time such Lien is incurred and
(iv) in the case of Indebtedness representing Capitalized Lease Obligations
relating to a Vessel, the principal amount of Indebtedness secured by such a
Lien shall not exceed 100% of the sum of (1) the fair market value, as
determined in good faith by the Board of Directors, of such Vessel at the time
such Lien is incurred and (2) any Ready for Sea Cost for such Vessel and (B) in
the case of Additional Assets acquired directly or indirectly from Net
Available Cash pursuant to Section 3.7, the principal amount of
Indebtedness secured by such a Lien does not exceed the lesser of (i) 80% of
the contract price for the acquisition of such Additional Asset and (ii) the
contract price for the acquisition of such Additional Asset less the Net
Available Cash used to acquire such Additional Asset; provided further, however,
that such Lien may not extend to any other property owned by such Person or any
of its Subsidiaries at the time the Lien is Incurred and the Indebtedness
(other than any interest thereon) secured by the Lien may not be incurred more
than 180 days after the later of the acquisition, completion of construction,
repair, improvement, addition or commencement of full operation of the property
subject to the Lien;

 

(3)                                  pledges
or deposits by such Person under workmen’s compensation laws, unemployment
insurance laws or similar legislation, or good faith deposits in connection
with bids, tenders, contracts (other than for the payment of Indebtedness) or
leases to which such Person is a party, or deposits to secure public or
statutory obligations of such Person or deposits or cash or United States
government bonds to secure surety or appeal bonds to which such 

 

19

 

Person is a
party, or deposits as security for contested taxes or import or customs duties
or for the payment of rent, in each case Incurred in the ordinary course of
business;

 

(4)                                  Liens
imposed by law, including carriers’, warehousemen’s and mechanics’ Liens;

 

(5)                                  Liens
for taxes, assessments or other governmental charges not yet subject to
penalties for non-payment or which are being contested in good faith by
appropriate proceedings provided appropriate reserves required pursuant to GAAP
have been made in respect thereof;

 

(6)                                  Liens
in favor of issuers of surety or performance bonds or letters of credit or
bankers’ acceptances issued pursuant to the request of and for the account of
such Person in the ordinary course of its business; provided, however,
that such letters of credit do not constitute Indebtedness;

 

(7)                                  encumbrances,
easements or reservations of, or rights of others for, licenses, rights of way,
sewers, electric lines, telegraph and telephone lines and other similar
purposes, or zoning or other restrictions as to the use of real properties or
liens incidental to the conduct of the business of such Person or to the
ownership of its properties which do not in the aggregate materially adversely
affect the value of said properties or materially impair their use in the
operation of the business of such Person;

 

(8)                                  Liens
securing Hedging Obligations so long as the related Indebtedness is, and is
permitted to be under this Indenture, secured by a Lien on the same property
securing such Hedging Obligation;

 

(9)                                  leases
and subleases of real property which do not materially interfere with the
ordinary conduct of the business of the Company or any of its Restricted
Subsidiaries;

 

(10)                            judgment
Liens not giving rise to an Event of Default so long as such Lien is adequately
bonded and any appropriate legal proceedings which may have been duly initiated
for the review of such judgment have not been finally terminated or the period
within which such proceedings may be initiated has not expired;

 

(11)                            Liens
for the purpose of securing the payment of all or a part of the purchase price
of, or Capitalized Lease Obligations with respect to, assets or property (other
than Vessels) acquired or constructed in the ordinary course of business,
provided that:

 

(a)                                  the
aggregate principal amount of Indebtedness secured by such Liens is otherwise
permitted to be Incurred under this Indenture and does not exceed the cost of
the assets or property so acquired or constructed; and

 

(b)                                 such
Liens are created within 180 days of construction or acquisition of such assets
or property and do not encumber any other assets or property of the Company or
any Restricted Subsidiary other than such assets or property and assets affixed
or appurtenant thereto;

 

20

 

(12)                            Liens
arising solely by virtue of any statutory or common law provisions relating to
banker’s Liens, rights of set-off or similar rights and remedies as to deposit
accounts or other funds maintained with a depositary institution; provided
that:

 

(a)                                  such
deposit account is not a dedicated cash collateral account and is not subject
to restrictions against access by the Company in excess of those set forth by
regulations promulgated by the Federal Reserve Board; and

 

(b)                                 such
deposit account is not intended by the Company or any Restricted Subsidiary to
provide collateral to the depository institution;

 

(13)                            Liens
arising from Uniform Commercial Code financing statements;

 

(14)                            Liens
existing on the Issue Date;

 

(15)                            Liens
on property or shares of stock of a Person at the time such Person becomes a
Restricted Subsidiary; provided, however, that such Liens are
not created, incurred or assumed in connection with, or in contemplation of,
such other Person becoming a Restricted Subsidiary; provided further, however,
that any such Lien may not extend to any other property owned by the Company or
any Restricted Subsidiary;

 

(16)                            Liens
on property at the time the Company or a Restricted Subsidiary acquired the
property, including any acquisition by means of a merger or consolidation with
or into the Company or any Restricted Subsidiary; provided, however,
that such Liens are not created, incurred or assumed in connection with, or in
contemplation of, such acquisition; provided further, however, that such Liens may
not extend to any other property owned by the Company or any Restricted
Subsidiary;

 

(17)                            Liens
securing Indebtedness or other obligations of a Restricted Subsidiary owing to
the Company or a Wholly Owned Subsidiary;

 

(18)                            Liens
securing the Securities and Subsidiary Guarantees;

 

(19)                            Liens
securing Refinancing Indebtedness incurred to refinance Indebtedness that was
previously so secured, provided that any such Lien is limited to all or part of
the same property or assets (plus improvements, accessions, proceeds or
dividends or distributions in respect thereof) that secured (or, under the
written arrangements under which the original Lien arose, could secure) the
Indebtedness being refinanced or is in respect of property that is the security
for a Permitted Lien hereunder;

 

(20)                            Liens
incurred in the ordinary course of business of the Company or any Restricted
Subsidiary arising from Vessel chartering, drydocking, maintenance, the
furnishing of supplies and bunkers to Vessels, repairs and improvements to
Vessels, crews’ wages and maritime Liens;

 

(21)                            any
Lien or pledge created or subsisting in the ordinary course of business over
documents of title, insurance policies or sale contracts in relation to
commercial goods to secure the purchase price thereof;

 

21

 

(22)                            Liens
for salvage and general average; and

 

(23)                            in
addition to the items referred to in clauses (1) through (22) above, Liens
securing Indebtedness (other than Subordinated Obligations and Guarantor
Subordinated Obligations) in an aggregate principal amount outstanding at any
one time not to exceed $20.0 million.

 

Notwithstanding the foregoing, clauses (2), (15) and
(16) of this definition shall not apply with respect to the transactions
contemplated by the Fleet Purchase Agreement.

 

“Person” means any individual, corporation,
partnership, joint venture, association, joint-stock company, trust,
unincorporated organization, limited liability company, government or any
agency or political subdivision hereof or any other entity.

 

“Preferred Stock,” as applied to the
Capital Stock of any corporation, means Capital Stock of any class or classes
(however designated) which is preferred as to the payment of dividends, or as
to the distribution of assets upon any voluntary or involuntary liquidation or
dissolution of such corporation, over shares of Capital Stock of any other
class of such corporation.

 

“Public Equity Offering” means an offering
for cash by the Company of its common stock, or options, warrants or rights
with respect to its common stock made pursuant to a registration statement that
has been declared effective by the Securities and Exchange Commission (other
than on Form S-4 or S-8 or their foreign private issuer equivalent, if any).

 

“Rating Agency” means each of S&P and
Moody’s, or if S&P or Moody’s or both shall not make a rating on the
Securities publicly available, a nationally recognized statistical rating
agency or agencies, as the case may be, selected by the Company (as certified
by a resolution of its Board of Directors) which shall be substituted for
S&P or Moody’s or both, as the case may be.

 

“Ready for Sea Cost” means with respect to
a Vessel or Vessels to be acquired or leased (pursuant to a Capitalized Lease
Obligation) by the Company or any Restricted Subsidiary of the Company, the
aggregate amount of all expenditures incurred to acquire or construct and bring
such Vessel or Vessels to the condition and location necessary for its intended
use, including any and all inspections, appraisals, repairs, modifications,
construction related insurance, additions, permits and licenses in connection
with such acquisition or lease.

 

“Refinancing Indebtedness” means
Indebtedness that is Incurred to refund, refinance, replace, exchange, renew,
repay or extend (including pursuant to any defeasance or discharge mechanism)
(collectively, “refinance” and “refinances” and “refinanced” shall have
correlative meanings) any Indebtedness existing Issue Date or Incurred in
compliance with this Indenture (including Indebtedness of the Company that
refinances Indebtedness of any Restricted Subsidiary and Indebtedness of any
Restricted Subsidiary that refinances Indebtedness of another Restricted
Subsidiary) including Indebtedness that refinances Refinancing Indebtedness, provided,
however,
that:

 

22

 

(1)                                  (a)
if the Stated Maturity of the Indebtedness being refinanced is earlier than the
Stated Maturity of the Securities, the Refinancing Indebtedness has a Stated
Maturity no earlier than the Stated Maturity of the Indebtedness being
refinanced or (b) if the Stated Maturity of the Indebtedness being refinanced
is later than the Stated Maturity of the Securities, the Refinancing
Indebtedness has a Stated Maturity at least 91 days later than the Stated
Maturity of the Securities;

 

(2)                                  the
Refinancing Indebtedness has an Average Life at the time such Refinancing
Indebtedness is Incurred that is equal to or greater than the Average Life of
the Indebtedness being refinanced;

 

(3)                                  such
Refinancing Indebtedness is Incurred in an aggregate principal amount (or if
issued with original issue discount, an aggregate issue price) that is equal to
or less than the sum of the aggregate principal amount (or if issued with
original issue discount, the aggregate accreted value) then outstanding of
Indebtedness being refinanced (plus, without duplication, any additional
Indebtedness Incurred to pay interest or premiums required by the instruments
governing such existing Indebtedness and fees incurred in connection
therewith); and

 

(4)                                  if
the Indebtedness being refinanced is subordinated in right of payment to the
Securities or any Subsidiary Guarantee, such Refinancing Indebtedness is
subordinated in right of payment to the Securities or any Subsidiary Guarantee
on terms at least as favorable to the Holders of Securities as those contained
in the documentation governing the Indebtedness being extended, refinanced,
renewed, replaced, defeased or refunded.

 

“Registration Rights Agreement” means that
certain registration rights agreement dated as of the date of this Indenture by
and between the Company and the Initial Purchasers set forth therein and future
registration rights agreements with respect to Additional Securities.

 

“Related Asset” means, with respect to a
Vessel, (a) any insurance policies and contracts from time to time in force
with respect to such Vessel, (b) the Capital Stock of any Subsidiary of the
Company owning such Vessel and related assets, (c) any requisition compensation
payable in respect of any compulsory acquisition thereof, (d) any earnings
derived from the use or operation thereof and/or any earnings account with
respect to such earnings, (e) any charters, operating leases and related
agreements entered into in respect of such Vessel and any security or guarantee
in respect of the charterer’s or lessee’s obligations under such charter, lease
or agreement, (f) any cash collateral account established with respect to such
Vessel pursuant to the financing arrangement with respect thereto, (g) any
building, conversion or repair contracts relating to such Vessel and any
security or guarantee in respect of the builder’s obligations under such
contracts and (h) any security interest in, or agreement or assignment relating
to, any of the foregoing or any mortgage in respect of such Vessel.

 

“Related Business” means any business which
is the same as or related, ancillary or complementary to any of the businesses
of the Company and its Restricted Subsidiaries on the date of this Indenture or
any other business that the Board of Directors determines in good faith is an
appropriate business for the Company or a Restricted Subsidiary.

 

“Related Business Assets” means assets used
or useful in a Related Business.

 

23

 

“Representative” means any trustee, agent
or representative (if any) of an issue of Indebtedness; provided that when used in
connection with the Credit Facilities, the term “Representative” shall refer to
the administrative agent under the Credit Facilities.

 

“Restricted Investment” means any
Investment other than a Permitted Investment.

 

“Restricted Subsidiary” means any
Subsidiary of the Company other than an Unrestricted Subsidiary.

 

“S&P” means Standard & Poor’s
Ratings Services, a division of The McGraw-Hill Companies, Inc, or any
successor to the rating agency business thereof.

 

“SEC” means the Securities and Exchange
Commission of the United States of America.

 

“Sale/Leaseback Transaction” means an
arrangement relating to property now owned or hereafter acquired whereby the Company
or a Restricted Subsidiary transfers such property to a Person and the Company
or a Restricted Subsidiary leases it from such Person.

 

“Secured Indebtedness” means Indebtedness
that is secured by a lien on the property or assets of the relevant obligor.

 

“Securities” has the meaning ascribed to it
in the second introductory paragraph of this Indenture.

 

“Securities Act” means the Securities Act
of 1933, as amended.

 

“Securities Custodian” means the custodian
with respect to the Global Security (as appointed by DTC), or any successor
Person thereto and shall initially be the Trustee.

 

“Securityholder” or “Holder” means the Person in
whose name a Security is registered in the Note Register.

 

“Significant Subsidiary” means any
Restricted Subsidiary that would be a “Significant Subsidiary” of the Company
within the meaning of Rule 1-02 under Regulation S-X promulgated by the SEC.

 

“Special Mandatory Redemption Trigger”
shall be deemed to have occurred if either of the following conditions has not
been satisfied as of 5:01 p.m. Eastern time on March 17, 2004: (a) a Release
Certificate and Opinion of Counsel shall have been delivered to the Trustee in
accordance with Section 5(a) of the Escrow Agreement, and (b) the Fleet
Purchase Completion shall have occurred.

 

“Stated Maturity” means, with respect to
any security, the date specified in such security as the fixed date on which
the payment of principal of such security is due and payable, including
pursuant to any mandatory redemption provision, but shall not include any
contingent obligations to repay, redeem or repurchase any such principal prior
to the date originally scheduled for the payment thereof.

 

24

 

“Subordinated Obligation” means any
Indebtedness of the Company (whether outstanding on the Issue Date or
thereafter Incurred) which is subordinate or junior in right of payment to the
Securities pursuant to a written agreement.

 

“Subsidiary” of any Person means any
corporation, association, partnership, joint venture, limited liability company
or other business entity of which more than 50% of the total voting power of
shares of Capital Stock or other interests (including partnership and joint
venture interests) entitled (without regard to the occurrence of any
contingency) to vote in the election of directors, managers or trustees thereof
is at the time owned or controlled, directly or indirectly, by (1) such Person,
(2) such Person and one or more Subsidiaries of such Person or (3) one or more
Subsidiaries of such Person. Unless otherwise specified herein, each reference
to a Subsidiary will refer to a Subsidiary of the Company.

 

“Subsidiary Guarantee” means, individually,
any Guarantee of payment of the Securities by a Subsidiary Guarantor pursuant
to the terms of this Indenture and any supplemental indenture hereto, and,
collectively, all such Guarantees.

 

“Subsidiary Guarantor” means (1) each
Subsidiary of the Company in existence on the date of the Escrow Release and
(2) each other Subsidiary of the Company that becomes a Subsidiary
Guarantor in accordance with Section 3.12, in each case until such
Subsidiary Guarantor ceases to be such in accordance with this Indenture.

 

“Successful
Public Listing” means the completion of one or more transactions
that result in at least 20% of the then outstanding Common Stock of the Company
being listed or quoted for public trading on the Oslo Stock Exchange or the New
York Stock Exchange, American Stock Exchange, Nasdaq National Market System or
other United States national securities exchange, as evidenced by an Officers’
Certificate delivered to the Trustee to such effect.

 

“Total Loss” means, with respect to a
Vessel, a total loss, destruction, condemnation, confiscation, requisition,
seizure, forfeiture, blocking and trapping or other taking of title to or use
of such Vessel (provided that such loss, destruction, condemnation,
confiscation, requisition, seizure, forfeiture, blocking and trapping or other
taking of title to or use of such Vessel was covered by insurance or resulted
in the actual payment of compensation, indemnification or similar payments to
such Person).

 

“Treasury Rate” means the yield to maturity
at the time of computation of United States Treasury securities with a constant
maturity (as compiled and published in the most recent Federal Reserve
Statistical Release H.15 (519) which has become publicly available at least two
business days prior to the Redemption Date (or, if such Statistical Release is
no longer published, any publicly available source or similar market data))
most nearly equal to the period from the Redemption Date to December 15, 2008; provided,
however, that if the period from the Redemption Date to December 15,
2008 is not equal to the constant maturity of a United States Treasury security
for which a weekly average yield is given, the Treasury Rate shall be obtained
by linear interpolation (calculated to the nearest one-twelfth of a year) from
the weekly average yields of United States Treasury securities for which such
yields are given, except that if the period from the Redemption Date to
December 15, 2008 is less than one year, the weekly 

 

25

 

average yield on
actually traded United States Treasury securities adjusted to a constant maturity
of one year shall be used.

 

“TIA” or “Trust Indenture Act” means
the Trust Indenture Act of 1939 (15U.S.C. §§ 77aaa-77bbbb), as in effect
on the date of this Indenture.

 

“Trust Officer” shall mean, when used with
respect to the Trustee, any officer within the corporate trust department of
the Trustee, including any vice president, assistant vice president, assistant
secretary, assistant treasurer, trust officer or any other officer of the
Trustee who customarily performs functions similar to those performed by the
Persons who at the time shall be such officers, respectively, or to whom any
corporate trust matter is referred because of such person’s knowledge of and
familiarity with the particular subject and who shall have direct
responsibility for the administration of this Indenture.

 

“Trustee” means the party named as such in
this Indenture until a successor replaces it and, thereafter, means the
successor.

 

“U.S. Dollar Equivalent” means, with
respect to any monetary amount in a currency other than the U.S. dollar, at or
as of any time for the determination thereof, the amount of U.S. dollars
obtained by converting such foreign currency involved in such computation into
U.S. dollars at the spot rate for the purchase of U.S. dollars with the applicable
foreign currency as quoted by Reuters (or, if Reuters ceases to provide such
spot quotations, by any other reputable service as is providing such spot
quotations, as selected by the Company) at approximately 11:00 a.m. (New
York City time) on the date not more than two business days prior to such
determination.

 

“U.S. Government Securities” means
non-callable direct obligations of, or obligations guaranteed by, the United
States of America for the payment of which guarantee or obligations the full
faith and credit of the United States is pledged.

 

“Unrestricted Subsidiary” means:

 

(1)                                  any
Subsidiary of the Company that at the time of determination shall be designated
an Unrestricted Subsidiary by the Board of Directors of the Company in the
manner provided below; and

 

(2)                                  any
Subsidiary of an Unrestricted Subsidiary.

 

The Board of Directors of the Company may designate
any Subsidiary of the Company (including any newly acquired or newly formed
Subsidiary or a Person becoming a Subsidiary through merger or consolidation or
Investment therein) to be an Unrestricted Subsidiary only if:

 

(1)                                  such
Subsidiary or any of its Subsidiaries does not own any Capital Stock or
Indebtedness of or have any Investment in, or own or hold any Lien on any
property of, any other Subsidiary of the Company which is not a Subsidiary of
the Subsidiary to be so designated or otherwise an Unrestricted Subsidiary;

 

26

 

(2)                                  all
the Indebtedness of such Subsidiary and its Subsidiaries shall consist of
Non-Recourse Debt;

 

(3)                                  such
designation and the Investment of the Company in such Subsidiary complies with Section 3.4;

 

(4)                                  such
Subsidiary, either alone or in the aggregate with all other Unrestricted
Subsidiaries, does not operate, directly or indirectly, all or substantially
all of the business of the Company and its Subsidiaries;

 

(5)                                  such
Subsidiary is a Person with respect to which neither the Company nor any of its
Restricted Subsidiaries has any direct or indirect obligation:

 

(a)                                  to
subscribe for additional Capital Stock of such Person; or

 

(b)                                 to
maintain or preserve such Person’s financial condition or to cause such Person
to achieve any specified levels of operating results; and

 

(6)                                  on
the date such Subsidiary is designated an Unrestricted Subsidiary, such
Subsidiary is not a party to any agreement, contract, arrangement or
understanding with the Company or any Restricted Subsidiary with terms
substantially less favorable to the Company than those that might have been
obtained from Persons who are not Affiliates of the Company.

 

Any such designation by the Board of Directors of the
Company shall be evidenced to the Trustee by filing with the Trustee a Board
Resolution giving effect to such designation and an Officers’ Certificate
certifying that such designation complies with the preceding conditions. If, at
any time, any Unrestricted Subsidiary would fail to meet the foregoing
requirements as an Unrestricted Subsidiary, it shall thereafter cease to be an
Unrestricted Subsidiary for purposes of this Indenture and any Indebtedness of
such Subsidiary shall be deemed to be Incurred as of such date.

 

The Board of Directors of the Company may designate
any Unrestricted Subsidiary to be a Restricted Subsidiary; provided that immediately
after giving effect to such designation, no Default or Event of Default shall
have occurred and be continuing or would occur as a consequence thereof and the
Company could incur at least $1.00 of additional Indebtedness under the first
paragraph of Section 3.3 on a pro forma basis taking into account
such designation.

 

“Vessel” means one or more shipping vessels
whose primary purpose is the maritime transportation of cargo and/or passengers
or which are otherwise engaged, used or useful in any business activities of
the Company and its Restricted Subsidiaries and which are owned by and
registered (or to be owned by and registered) in the name of the Company or any
of its Restricted Subsidiaries or operated or to be operated by the Company or
any of its Restricted Subsidiaries pursuant to a lease or other operating
agreement constituting a Capitalized Lease Obligation, in each case together
with all related spares, equipment and any additions or improvements.

 

27

 

“Vessel Construction Contract” means any
contract for the construction (or construction and acquisition) of a Vessel
entered into by the Company or any Restricted Subsidiary, including any
amendments, supplements or modifications thereto or change orders in respect
thereof.

 

“Voting Stock” of a Person means all
classes of Capital Stock of such Person then outstanding and normally entitled
to vote in the election of directors, managers or trustees of such Person.

 

“Wholly Owned Subsidiary” means a Restricted
Subsidiary of the Company, all of the Capital Stock of which (other than
directors’ qualifying shares) is owned by the Company or another Wholly Owned
Subsidiary.

 

Section 1.2                                      Other
Definitions.

 

	
  TERM

  	
   

  	
  DEFINED IN

  SECTION

  
	
  “Additional
  Amounts”

  	
  3.1(b)

  
	
  “Additional
  Restricted Securities”

  	
  2.1(b)

  
	
  “Affiliate
  Transaction”

  	
  3.8

  
	
  “Agent
  Member”

  	
  2.1(e)

  
	
  “Agreement
  Currency”

  	
  11.16

  
	
  “Asset
  Disposition Offer Amount”

  	
  3.7(c)(1)

  
	
  “Asset
  Disposition Offer Period”

  	
  3.7(c)(1)

  
	
  “Asset
  Disposition Offer”

  	
  3.7(b)

  
	
  “Asset Disposition
  Purchase Date”

  	
  3.7(c)(1)

  
	
  “Authenticating
  Agent”

  	
  2.2

  
	
  “Certificate
  of Destruction”

  	
  2.12

  
	
  “Change in
  Tax Law”

  	
  5.1(b)

  
	
  “Change of
  Control Offer”

  	
  3.9(b)

  
	
  “Change of
  Control Payment Date”

  	
  3.9(b)(2)

  
	
  “Change of
  Control Payment”

  	
  3.9(b)(1)

  
	
  “Company Order”

  	
  2.2

  
	
  “Corporate
  Trust Office”

  	
  3.14

  
	
  “covenant
  defeasance option”

  	
  8.1(b)

  
	
  “Defaulted
  Interest”

  	
  2.13

  
	
  “Distribution
  Compliance Period”

  	
  2.6(b)

  
	
  “Event of
  Default”

  	
  6.1

  
	
  “Excess
  Proceeds”

  	
  3.7(b)

  
	
  “Exchange
  Global Note”

  	
  2.1(b)

  
	
  “Global
  Securities”

  	
  2.1(b)

  
	
  “IAI”

  	
  2.1(b)

  
	
  “Institutional
  Accredited Investor Global Note”

  	
  2.1(b)

  
	
  “Institutional
  Accredited Investor Note”

  	
  2.1(b)

  
	
  “Judgment
  Currency”

  	
  11.16

  
	
  “legal
  defeasance option”

  	
  8.1(b)

  
	
  “Legal
  Holiday”

  	
  11.8

  
	
  “Note
  Register”

  	
  2.3

  

 

28

 

	
  TERM

  	
   

  	
  DEFINED IN

  SECTION

  
	
  “Obligations”

  	
  10.1

  
	
  “Pari Passu
  Notes”

  	
  3.7(b)

  
	
  “Paying
  Agent”

  	
  2.3

  
	
  “payment
  default”

  	
  6.1(6)(a)

  
	
  “Payor”

  	
  3.1(b)

  
	
  “Private
  Placement Legend”

  	
  2.1(d)

  
	
  “protected
  purchaser”

  	
  2.9

  
	
  “QIB”

  	
  2.1(b)

  
	
  “Redemption
  Date”

  	
  5.1

  
	
  “Registrar”

  	
  2.3

  
	
  “Regulation
  S Global Note”

  	
  2.1(b)

  
	
  “Regulation
  S Note”

  	
  2.1(b)

  
	
  “Regulation
  S”

  	
  2.1(b)

  
	
  “Relevant
  Tax Jurisdiction”

  	
  3.1(b)

  
	
  “Required
  Filing Dates”

  	
  3.2

  
	
  “Resale
  Restriction Termination Date”

  	
  2.6(a)

  
	
  “Restricted
  Payment”

  	
  3.4

  
	
  “Rule 144A
  Global Note”

  	
  2.1(b)

  
	
  “Rule 144A
  Note”

  	
  2.1(b)

  
	
  “Rule 144A”

  	
  2.1(b)

  
	
  “SK”

  	
  11.15

  
	
  “Special
  Interest Payment Date”

  	
  2.13(a)

  
	
  “Special
  Record Date”

  	
  2.13(a)

  
	
  “Successor
  Company”

  	
  4.1

  

 

Section 1.3                                      Incorporation
by Reference of Trust Indenture Act. 
This Indenture is subject to the mandatory provisions of the TIA which
are incorporated by reference in and made a part of this Indenture. The
following TIA terms have the following meanings:

 

“Commission” means the Securities and Exchange
Commission.

 

“indenture securities” means the Securities.

 

“indenture security holder” means a Securityholder.

 

“indenture to be qualified” means this Indenture.

 

“indenture trustee” or “institutional trustee” means
the Trustee.

 

“obligor” on this Indenture securities means the
Company and any other obligor on this Indenture securities.

 

All other TIA terms used in this Indenture that are
defined by the TIA, defined in the TIA by reference to another statute or
defined by Commission rule have the meanings assigned to them by such
definitions.

 

29

 

Section 1.4                                      Rules
of Construction.  Unless the context
otherwise requires:

 

(1)                                  a
term has the meaning assigned to it;

 

(2)                                  an
accounting term not otherwise defined has the meaning assigned to it in accordance
with GAAP;

 

(3)                                  “or”
is not exclusive;

 

(4)                                  “including”
means including without limitation;

 

(5)                                  words
in the singular include the plural and words in the plural include the
singular;

 

(6)                                  unsecured
Indebtedness shall not be deemed to be subordinate or junior to Secured
Indebtedness merely by virtue of its nature as unsecured Indebtedness;

 

(7)                                  the
principal amount of any noninterest bearing or other discount security at any
date shall be the principal amount thereof that would be shown on a balance
sheet of the issuer dated such date prepared in accordance with GAAP;

 

(8)                                  the
principal amount of any Preferred Stock shall be (i) the maximum liquidation
value of such Preferred Stock or (ii) the maximum mandatory redemption or
mandatory repurchase price with respect to such Preferred Stock, whichever is
greater;

 

(9)                                  references
to U.S. dollar amounts mean the U.S. Dollar Equivalent as of the date of any
determination thereof; and

 

(10)                            the
term “merger” includes an amalgamation, a compulsory share exchange, a
conversion of a corporation into another business entity and any other
transaction having effects substantially similar to a merger under the General
Corporation Laws of the State of Delaware

 

ARTICLE
II

The Securities

 

Section 2.1                                      Form,
Dating and Terms.

 

(a)                                  The
aggregate principal amount of Securities that may be authenticated and
delivered under this Indenture is unlimited. The Initial Securities issued on
the Issue Date will be in an aggregate principal amount of $580,000,000.  In addition, the Company may issue, from
time to time in accordance with the provisions of this Indenture, including,
without limitation, Section 3.3 hereof, Additional Securities and
Exchange Securities. Furthermore, Securities may be authenticated and delivered
upon registration of transfer, or in exchange for or in lieu of, other
Securities pursuant to Section 2.2, 2.6, 2.9, 2.11, 5.8 or 9.5 or in
connection with an Asset Disposition Offer pursuant to Section 3.7 or a
Change of Control Offer pursuant to Section 3.9.

 

The Initial Securities, Additional Securities and
Exchange Securities shall be known and designated as “81⁄2 % Senior Notes due
2013” of the Company.

 

30

 

The Initial Securities, the Additional Securities and
the Exchange Securities shall be considered collectively as a single class for
all purposes of this Indenture. Holders of the Initial Securities, the
Additional Securities and the Exchange Securities will vote and consent
together on all matters to which such Holders are entitled to vote or consent
as one class, and none of the Holders of the Initial Securities, the Additional
Securities or the Exchange Securities shall have the right to vote or consent
as a separate class on any matter to which such Holders are entitled to vote or
consent.

 

(b)                                 The
Initial Securities are being offered and sold by the Company pursuant to a
Purchase Agreement, dated December 11, 2003, among the Company, Frontline and
the Initial Purchasers. The Initial Securities and any Additional Securities
(if issued as Restricted Securities) (the “Additional Restricted Securities”)
will be resold initially only to (A) qualified institutional buyers (as defined
in Rule 144A under the Securities Act (“Rule 144A”)) in reliance on Rule 144A
(“QIBs”), (B) Persons other than U.S. Persons in reliance on Regulation S under
the Securities Act (“Regulation S”) and (C) institutional “accredited
investors” (as defined in Rules 501(a)(1), (2), (3) and (7) under the
Securities Act) who are not QIBs (“IAIs”) in accordance with Rule 501 of the
Securities Act. Such Initial Securities and Additional Restricted Securities
may thereafter be transferred to, among others, QIBs, purchasers in reliance on
Regulation S and IAIs in accordance with the procedures described herein.

 

Initial Securities and Additional Restricted
Securities offered and sold to QIBs in the United States of America in reliance
on Rule 144A (the “Rule 144A Notes”) shall be issued in the form of a permanent
global Security, without interest coupons, substantially in the form of Exhibit
A, which is hereby incorporated by reference and made a part of this Indenture,
including appropriate legends as set forth in Section 2.1(d) (the “Rule
144A Global Note”), deposited with the Trustee, as custodian for DTC, duly
executed by the Company and authenticated by the Trustee as hereinafter
provided. The Rule 144A Global Note may be represented by more than one
certificate, if so required by DTC’s rules regarding the maximum principal
amount to be represented by a single certificate. The aggregate principal
amount of the Rule 144A Global Note may from time to time be increased or
decreased by adjustments made on the records of the Trustee, as custodian for
DTC or its nominee, as hereinafter provided.

 

Initial Securities and Additional Securities offered
and sold outside the United States of America (the “Regulation S Notes”) in
reliance on Regulation S shall be issued in the form of a permanent global
Security, without interest coupons, substantially in the form of Exhibit A (the
“Regulation S Global Note”) deposited with the Trustee, as custodian for DTC,
duly executed by the Company and authenticated by the Trustee as hereinafter
provided. The Regulation S Global Note may be represented by more than one
certificate, if so required by DTC’s rules regarding the maximum principal
amount to be represented by a single certificate. The aggregate principal
amount of the Regulation S Global Note may from time to time be increased or
decreased by adjustments made on the records of the Trustee, as custodian for
DTC or its nominee, as hereinafter provided.

 

Initial Securities and Additional Securities offered
and sold to IAIs (the “Institutional Accredited Investor Notes”) in the United
States of America shall be issued in the form of a permanent global Security,
without interest coupons, substantially in the form of Exhibit A (the
“Institutional Accredited Investor Global Note”) deposited with the Trustee, as
custodian for

 

31

 

DTC, duly executed by the
Company and authenticated by the Trustee as hereinafter provided. The
Institutional Accredited Investor Global Note may be represented by more than
one certificate, if so required by DTC’s rules regarding the maximum principal amount
to be represented by a single certificate. The aggregate principal amount of
the Institutional Accredited Investor Global Note may from time to time be
increased or decreased by adjustments made on the records of the Trustee, as
custodian for DTC or its nominee, as hereinafter provided.

 

Exchange Securities exchanged for interests in the
Rule 144A Notes, the Regulation S Notes and the Institutional Accredited
Investor Notes will be issued in the form of a permanent global Security,
without interest coupons, substantially in the form of Exhibit B, which is
hereby incorporated by reference and made a part of this Indenture, deposited
with the Trustee as hereinafter provided, including the appropriate legend set
forth in Section 2.1(d) (the “Exchange Global Note”). The Exchange
Global Note may be represented by more than one certificate, if so required by
DTC’s rules regarding the maximum principal amount to be represented by a
single certificate.

 

The Rule 144A Global Note, the Regulation S Global
Note, the Institutional Accredited Investor Global Note and the Exchange Global
Note are sometimes collectively herein referred to as the “Global Securities.”

 

The principal of (and premium, if any) and interest on
the Securities shall be payable at the office or agency designated by the
Company maintained for such purpose in the City of New York, or at such other
office or agency of the Company as may be maintained for such purpose pursuant
to Section 2.3; provided, however, that, at the option of
the Company, each installment of interest may be paid by (i) check mailed to
addresses of the Persons entitled thereto as such addresses shall appear on the
Note Register or (ii) wire transfer to an account located in the United States
maintained by the payee. Payments in respect of Securities represented by a
Global Security (including principal, premium and interest) will be made by
wire transfer of immediately available funds to the accounts specified by DTC.

 

The Securities may have notations, legends or
endorsements required by law, stock exchange rule or usage, in addition to
those set forth on Exhibit A and Exhibit B and in Section 2.1(d).
The terms of the Securities set forth in Exhibit A and Exhibit B are part of
the terms of this Indenture and, to the extent applicable, the Company and the
Trustee, by their execution and delivery of this Indenture, expressly agree to
be bound by such terms.

 

(c)                                  Denominations.  The Securities shall be issuable only in
fully registered form, without coupons, and only in denominations of $1,000 and
any integral multiple thereof.

 

(d)                                 Restrictive
Legends.  Unless and until
(i) an Initial Security or Additional Security is sold under an effective
registration statement or (ii) an Initial Security or Additional Security is
exchanged for an Exchange Security in connection with an effective registration
statement, in each case pursuant to the applicable Registration Rights
Agreement or a similar agreement,

 

(A)                              the
Rule 144A Global Note, the Regulation S Global Note and the Institutional Accredited
Investor Global Note shall bear the following legend (the “Private Placement
Legend”) on the face thereof:

 

32

 

“THIS SECURITY
HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY
STATE SECURITIES LAWS. NEITHER THIS SECURITY NOR ANY INTEREST OR PARTICIPATION
HEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR
OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH
TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, REGISTRATION.

 

THE HOLDER OF
THIS SECURITY BY ITS ACCEPTANCE HEREOF (1) REPRESENTS THAT (A) IT IS
A “QUALIFIED INSTITUTIONAL BUYER” (AS DEFINED IN RULE 144A UNDER THE SECURITIES
ACT), (B) IT IS A NON-U.S. PURCHASER AND IS ACQUIRING THIS SECURITY IN AN
OFFSHORE TRANSACTION WITHIN THE MEANING OF REGULATION S UNDER THE SECURITIES
ACT, OR (C) IT IS AN INSTITUTIONAL “ACCREDITED INVESTOR” WITHIN THE
MEANING OF SUBPARAGRAPH (a)(1), (2), (3) OR (7) OF RULE 501 UNDER THE
SECURITIES ACT, AND (2) AGREES TO OFFER, SELL OR OTHERWISE TRANSFER SUCH
SECURITY, PRIOR TO THE DATE WHICH IS TWO YEARS AFTER THE LATER OF THE ORIGINAL
ISSUE DATE HEREOF AND THE LAST DATE ON WHICH THE COMPANY OR ANY AFFILIATE OF
THE COMPANY WAS THE OWNER OF THIS SECURITY (OR ANY PREDECESSOR OF SUCH
SECURITY), ONLY (A) TO THE COMPANY OR ANY OF ITS SUBSIDIARIES,
(B) PURSUANT TO A REGISTRATION STATEMENT WHICH HAS BEEN DECLARED EFFECTIVE
UNDER THE SECURITIES ACT, (C) FOR SO LONG AS THE NOTES ARE ELIGIBLE FOR RESALE
PURSUANT TO RULE 144A, TO A PERSON IT REASONABLY BELIEVES IS A “QUALIFIED
INSTITUTIONAL BUYER” AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT THAT
PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL
BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON
RULE 144A, (D) PURSUANT TO OFFERS AND SALES TO NON-U.S. PURCHASERS THAT
OCCUR OUTSIDE THE UNITED STATES WITHIN THE MEANING OF REGULATION S UNDER THE
SECURITIES ACT, (E) TO AN INSTITUTIONAL “ACCREDITED INVESTOR” WITHIN THE
MEANING OF SUBPARAGRAPH (a)(1), (2), (3) OR (7) OF RULE 501 UNDER THE
SECURITIES ACT THAT IS ACQUIRING THE SECURITY FOR ITS OWN ACCOUNT, OR FOR THE
ACCOUNT OF SUCH AN INSTITUTIONAL ACCREDITED INVESTOR, FOR INVESTMENT PURPOSES
AND NOT WITH A VIEW TO, OR FOR OFFER OR SALE IN CONNECTION WITH, ANY
DISTRIBUTION IN VIOLATION OF THE SECURITIES ACT OR (F) PURSUANT TO ANOTHER
AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT,
SUBJECT TO THE COMPANY’S AND THE TRUSTEE’S, OR TRANSFER AGENT’S, AS APPLICABLE,
RIGHT PRIOR TO ANY SUCH OFFER, SALE OR

 

33

 

TRANSFER
PURSUANT TO CLAUSES (D), (E), OR (F) TO REQUIRE THE DELIVERY OF AN OPINION
OF COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO EACH OF
THEM, AND IN EACH OF THE FOREGOING CASES, A CERTIFICATE OF TRANSFER IN THE FORM
APPEARING ON THE OTHER SIDE OF THIS SECURITY IS COMPLETED AND DELIVERED BY THE
TRANSFEROR TO THE TRUSTEE OR REGISTRAR.

 

BY ITS ACQUISITION OF THIS SECURITY THE HOLDER
THEREOF WILL BE DEEMED TO HAVE REPRESENTED AND WARRANTED THAT EITHER
(I) NO PORTION OF THE ASSETS USED BY SUCH HOLDER TO ACQUIRE AND HOLD THIS
SECURITY CONSTITUTES THE ASSETS OF AN EMPLOYEE BENEFIT PLAN THAT IS SUBJECT TO
TITLE I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED
(“ERISA”), OF PLANS, INDIVIDUAL RETIREMENT ACCOUNTS OR OTHER ARRANGEMENTS THAT
ARE SUBJECT TO SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED
(THE “CODE”), OR PROVISIONS UNDER ANY FEDERAL, STATE, LOCAL, NON-U.S. OR OTHER
LAWS OR REGULATIONS THAT ARE SIMILAR TO SUCH PROVISIONS OF ERISA OR THE CODE
(COLLECTIVELY, “SIMILAR LAWS”), OR OF AN ENTITY WHOSE UNDERLYING ASSETS ARE
CONSIDERED TO INCLUDE “PLAN ASSETS” OF SUCH PLANS, ACCOUNTS OR ARRANGEMENTS, OR
(II) THE PURCHASE AND HOLDING OF THIS SECURITY WILL NOT CONSTITUTE A
NON-EXEMPT PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF
THE CODE OR A SIMILAR VIOLATION UNDER ANY APPLICABLE SIMILAR LAWS.”

 

(B)                                The
Global Securities, whether or not an Initial Security, shall bear the following
legend on the face thereof:

 

“UNLESS THIS CERTIFICATE IS PRESENTED BY AN
AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK
CORPORATION (“DTC”), NEW YORK, NEW YORK, TO THE COMPANY OR ITS AGENT FOR
REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS
REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED
BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE &
CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF
DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO
ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO.,
HAS AN INTEREST HEREIN.

 

TRANSFERS OF THIS GLOBAL SECURITY SHALL BE
LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO NOMINEES OF DTC OR

 

34

 

TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S
NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO
TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN THIS INDENTURE
REFERRED TO ON THE REVERSE HEREOF.”

 

(e)                                  Book-Entry
Provisions

 

(i)                                     This
Section 2.1(e) shall apply only to Global Securities deposited with the
Trustee, as custodian for DTC.

 

(ii)                                  Each
Global Security initially shall (x) be registered in the name of DTC, (y) be
delivered to the Trustee as custodian for DTC and (z) bear legends as set forth
in Section 2.1(d).

 

(iii)                               Members
of, or participants in, DTC (“Agent Members”) shall have no rights under
this Indenture with respect to any Global Security held on their behalf by DTC
or by the Trustee as the custodian of DTC or under such Global Security, and
DTC may be treated by the Company, the Trustee and any agent of the Company or
the Trustee as the absolute owner of such Global Security for all purposes
whatsoever. Notwithstanding the foregoing, nothing herein shall prevent the
Company, the Trustee or any agent of the Company or the Trustee from giving
effect to any written certification, proxy or other authorization furnished by
DTC or impair, as between DTC and its Agent Members, the operation of customary
practices of DTC governing the exercise of the rights of a Holder of a
beneficial interest in any Global Security.

 

(iv)                              In
connection with any transfer of a portion of the beneficial interest in a
Global Security pursuant to subsection (f) of this Section 2.1 to
beneficial owners who are required to hold Definitive Securities, the custodian
shall reflect on its books and records the date and a decrease in the principal
amount of such Global Security in an amount equal to the principal amount of
the beneficial interest in the Global Security to be transferred, and the
Company shall execute, and the Trustee shall authenticate and deliver, one or
more Definitive Securities of like tenor and amount.

 

(v)                                 In
connection with the transfer of an entire Global Security to beneficial owners
pursuant to subsection (f) of this Section 2.1, such Global Security
shall be deemed to be surrendered to the Trustee for cancellation, and the
Company shall execute, and the Trustee shall authenticate and deliver, to each
beneficial owner identified by DTC in exchange for its beneficial interest in
such Global Security, an equal aggregate principal amount of Definitive
Securities of authorized denominations.

 

(vi)                              The
Holder of a Global Security may grant proxies and otherwise authorize any
Person, including Agent Members and Persons that may hold interests through
Agent Members, to take any action which a Holder is entitled to take under this
Indenture or the Securities.

 

35

 

(f)                                    Definitive
Securities.

 

(i) Except as provided below, owners of beneficial interests in Global
Securities will not be entitled to receive Definitive Securities. If required
to do so pursuant to any applicable law or regulation, beneficial owners may
obtain Definitive Securities in exchange for their beneficial interests in a
Global Security upon written request in accordance with DTC’s and the
Registrar’s procedures. In addition, Definitive Securities shall be transferred
to all beneficial owners in exchange for their beneficial interests in a Global
Security if (a) DTC notifies the Company that it is unwilling or unable to
continue as depositary for such Global Security or DTC ceases to be a clearing
agency registered under the Exchange Act, at a time when DTC is required to be
so registered in order to act as depositary, and in each case a successor
depositary is not appointed by the Company within 90 days of such notice or,
(b) the Company executes and delivers to the Trustee and Registrar an Officers’
Certificate stating that such Global Security shall be so exchangeable or (c)
an Event of Default has occurred and is continuing and the Registrar has
received a request from DTC.

 

(ii)                                  Any
Definitive Security delivered in exchange for an interest in a Global Security
pursuant to Section 2.1(e)(iv) or (v) shall, except as otherwise
provided by Section 2.6(c), bear the applicable legend regarding
transfer restrictions applicable to the Definitive Security set forth in Section
2.1(d).

 

(iii)                               In
connection with the exchange of a portion of a Definitive Security for a
beneficial interest in a Global Security, the Trustee shall cancel such
Definitive Security, and the Company shall execute, and the Trustee shall
authenticate and deliver, to the transferring Holder a new Definitive Security
representing the principal amount not so transferred.

 

Section 2.2                                      Execution
and Authentication.  One Officer
shall sign the Securities for the Company by manual or facsimile signature. If
an Officer whose signature is on a Security no longer holds that office at the
time the Trustee authenticates the Security, the Security shall be valid nevertheless,
after giving effect to any exchange of Initial Securities for Exchange
Securities.

 

A Security shall not be valid until an authorized
signatory of the Trustee manually authenticates the Security. The signature of
the Trustee on a Security shall be conclusive evidence that such Security has
been duly and validly authenticated and issued under this Indenture. A Security
shall be dated the date of its authentication.

 

At any time and from time to time after the execution
and delivery of this Indenture, the Trustee shall authenticate and make
available for delivery: (1) Initial Securities for original issue on the Issue
Date in an aggregate principal amount of $580,000,000, (2) Additional
Securities for original issue and (3) Exchange Securities for issue only in an
Exchange Offer pursuant to the Registration Rights Agreement, and only in
exchange for Initial Securities or Additional Securities of an equal principal
amount, in each case upon a written order of the Company signed by two Officers
or by an Officer and either an Assistant Treasurer or an Assistant Secretary of
the Company (the “Company Order”). 
Such Company Order shall specify the amount of the Securities to be
authenticated and the date on which the original issue of Securities is to be
authenticated, whether the Securities are to be Initial Securities, Additional
Securities or

 

36

 

Exchange Securities and
whether the Securities shall be issued in the form of Exhibit A or Exhibit B
hereto.

 

The Trustee may appoint an agent (the “Authenticating
Agent”) reasonably acceptable to the Company to authenticate the
Securities. Unless limited by the terms of such appointment, any such
Authenticating Agent may authenticate Securities whenever the Trustee may do
so.  Each reference in this Indenture to
authentication by the Trustee includes authentication by the Authenticating
Agent.

 

In case the Company, pursuant to Article IV, shall be
consolidated or merged with or into any other Person or shall sell, lease,
convey, assign, transfer or otherwise dispose of all or substantially all its
assets to any Person, and the successor Person resulting from such
consolidation, or surviving such merger, or into which the Company shall have
been merged, or the Person which shall have received a disposition as
aforesaid, shall have executed an indenture supplemental hereto with the
Trustee pursuant to Article IV, any of the Securities authenticated or
delivered prior to such consolidation, merger or other disposition may, from
time to time, at the request of the successor Person, be exchanged for other
Securities executed in the name of the successor Person with such changes in
phraseology and form as may be appropriate, but otherwise in substance of like
tenor as the Securities surrendered for such exchange and of like principal
amount; and the Trustee, upon Company Order of the successor Person, shall
authenticate and deliver Securities as specified in such order for the purpose
of such exchange. If Securities shall at any time be authenticated and
delivered in any new name of a successor Person pursuant to this Section 2.2
in exchange or substitution for or upon registration of transfer of any
Securities, such successor Person, at the option of the Holders but without expense
to them, shall provide for the exchange of all Securities at the time
outstanding for Securities authenticated and delivered in such new name.

 

Section 2.3                                      Registrar
and Paying Agent.  The Company shall
maintain in the City of New York or Wilmington, Delaware, an office or agency
where Securities may be presented for registration of transfer or for exchange
(the “Registrar”)
and an office or agency where Securities may be presented for payment (the “Paying Agent”).  The Registrar shall keep a register of the
Securities and of their transfer and exchange (the “Note Register”).  The Company may have one or more
co-registrars and one or more additional paying agents.  The term “Paying Agent” includes any
additional paying agent.

 

The Company shall enter into an appropriate agency
agreement with any Registrar, Paying Agent or co-registrar not a party to this
Indenture, which shall incorporate the terms of the TIA. The agreement shall
implement the provisions of this Indenture that relate to such agent.  The Company shall notify the Trustee of the
name and address of each such agent.  If
the Company fails to maintain a Registrar or Paying Agent, the Trustee shall
act as such and shall be entitled to appropriate compensation therefor pursuant
to Section 7.7.  The Company or
any of its Restricted Subsidiaries may act as Paying Agent, Registrar,
co-registrar or transfer agent.

 

The Company initially appoints the Trustee as
Registrar and Paying Agent for the Securities.

 

37

 

Section 2.4                                      Paying
Agent to Hold Money in Trust.  By no
later than 10:00 a.m. (New York City time) on the date on which any principal
of or premium or interest on any Security is due and payable, the Company shall
deposit with the Paying Agent a sum sufficient in immediately available funds
to pay such principal, premium or interest when due. The Company shall require
each Paying Agent (other than the Trustee) to agree in writing that such Paying
Agent shall hold in trust for the benefit of Securityholders or the Trustee all
money held by such Paying Agent for the payment of principal of or premium or
interest on the Securities and shall notify the Trustee in writing of any
default by the Company or any Subsidiary Guarantor in making any such payment.
If the Company or a Subsidiary acts as Paying Agent, it shall segregate the
money held by it as Paying Agent and hold it as a separate trust fund. The
Company at any time may require a Paying Agent (other than the Trustee) to pay
all money held by it to the Trustee and to account for any funds disbursed by
such Paying Agent. Upon complying with this Section, the Paying Agent (if other
than the Company or a Subsidiary) shall have no further liability for the money
delivered to the Trustee. Upon any bankruptcy, reorganization or similar
proceeding with respect to the Company, the Trustee shall serve as Paying Agent
for the Securities.

 

Section 2.5                                      Securityholder
Lists.  The Trustee shall preserve
in as current a form as is reasonably practicable the most recent list
available to it of the names and addresses of Securityholders. If the Trustee
is not the Registrar, or to the extent otherwise required under the TIA, the
Company shall furnish to the Trustee, in writing at least five Business Days
before each interest payment date and at such other times as the Trustee may
request in writing, a list in such form and as of such date as the Trustee may
reasonably require of the names and addresses of Securityholders.

 

Section 2.6                                      Transfer
and Exchange.

 

(a)                                  The
following provisions shall apply with respect to any proposed transfer of a
Rule 144A Note or an Institutional Accredited Investor Note prior to the date
which is two years after the later of the date of its original issue and the
last date on which the Company or any Affiliate of the Company was the owner of
such Securities (or any predecessor thereto) (the “Resale Restriction Termination Date”):

 

(i)                                     a
transfer of a Rule 144A Note or an Institutional Accredited Investor Note or a
beneficial interest therein to a QIB shall be made upon the representation of
the transferee in the form as set forth on the reverse of the Security that it
is purchasing for its own account or an account with respect to which it
exercises sole investment discretion and that it and any such account is a
“qualified institutional buyer” within the meaning of Rule 144A, and is aware
that the sale to it is being made in reliance on Rule 144A and acknowledges
that it has received such information regarding the Company as the undersigned has
requested pursuant to Rule 144A or has determined not to request such
information and that it is aware that the transferor is relying upon its
foregoing representations in order to claim the exemption from registration
provided by Rule 144A;

 

(ii)                                  a
transfer of a Rule 144A Note or an Institutional Accredited Investor Note or a
beneficial interest therein to an IAI shall be made upon receipt by the Trustee
or its agent of a certificate substantially in the form set forth in Section
2.7 from the

 

38

 

proposed transferee and, if requested by the
Company or the Trustee, the delivery of an opinion of counsel, certification
and/or other information satisfactory to each of them; and

 

(iii)                               a
transfer of a Rule 144A Note or an Institutional Accredited Investor Note or a
beneficial interest therein to a Non-U.S. Person shall be made upon receipt by
the Trustee or its agent of a certificate substantially in the form set forth
in Section 2.8 from the proposed transferee and, if requested by the
Company or the Trustee, the delivery of an opinion of counsel, certification
and/or other information satisfactory to each of them.

 

(b)                                 The
following provisions shall apply with respect to any proposed transfer of a
Regulation S Note prior to the expiration of the applicable distribution
compliance period specified in Rule 903(b) of Regulation S (the “Distribution
Compliance Period”):

 

(i)                                     a
transfer of a Regulation S Note or a beneficial interest therein to a QIB shall
be made upon the representation of the transferee, in the form of assignment on
the reverse of the certificate, that it is purchasing the Security for its own
account or an account with respect to which it exercises sole investment
discretion and that it and any such account is a “qualified institutional
buyer” within the meaning of Rule 144A, and is aware that the sale to it is
being made in reliance on Rule 144A and acknowledges that it has received such
information regarding the Company as the undersigned has requested pursuant to
Rule 144A or has determined not to request such information and that it is
aware that the transferor is relying upon its foregoing representations in
order to claim the exemption from registration provided by Rule 144A;

 

(ii)                                  a
transfer of a Regulation S Note or a beneficial interest therein to an IAI
shall be made upon receipt by the Trustee or its agent of a certificate
substantially in the form set forth in Section 2.7 from the proposed
transferee and, if requested by the Company or the Trustee, the delivery of an
opinion of counsel, certification and/or other information satisfactory to each
of them; and

 

(iii)                               a
transfer of a Regulation S Note or a beneficial interest therein to a Non-U.S.
Person shall be made upon receipt by the Trustee or its agent of a certificate
substantially in the form set forth in Section 2.8 hereof from the
proposed transferee and, if requested by the Company or the Trustee, receipt by
the Trustee or its agent of an opinion of counsel, certification and/or other
information satisfactory to each of them.

 

After the expiration of the Distribution Compliance
Period, interests in the Regulation S Note may be transferred without requiring
the certification set forth in Section 2.7, Section 2.8 or any
additional certification.

 

(c)                                  Restricted
Securities Legend.  Upon the
transfer, exchange or replacement of Securities not bearing a Restricted
Securities Legend, the Registrar shall deliver Securities that do not bear a
Restricted Securities Legend. Upon the transfer, exchange or replacement of
Securities bearing a Restricted Securities Legend, the Registrar shall deliver
only Securities that bear a Restricted Securities Legend unless there is
delivered to the Registrar an Opinion of

 

39

 

Counsel to the effect that neither such
legend nor the related restrictions on transfer are required in order to
maintain compliance with the provisions of the Securities Act.

 

(d)                                 The
Registrar shall retain copies of all letters, notices and other written
communications received pursuant to Section 2.1 or this Section 2.6.  The Company shall have the right to inspect
and make copies of all such letters, notices or other written communications at
any reasonable time upon the giving of reasonable prior written notice to the
Registrar.

 

(e)                                  Obligations
with Respect to Transfers and Exchanges of Securities.

 

(i)                                     To
permit registrations of transfers and exchanges, the Company shall, subject to
the other terms and conditions of this Article II, execute and the Trustee
shall authenticate Definitive Securities and Global Securities at the
Registrar’s or co-registrar’s request.

 

(ii)                                  No
service charge shall be made to a Holder for any registration of transfer or
exchange, but the Company may require payment of a sum sufficient to cover any
transfer tax, assessments, or similar governmental charge payable in connection
therewith (other than any such transfer taxes, assessments or similar
governmental charges payable upon exchange or transfer pursuant to Sections
3.7, 3.9 or 9.5).

 

(iii)                               The
Registrar or co-registrar shall not be required to register the transfer of or
exchange of any Security selected for redemption or for a period beginning 15
days before a selection of Securities to be redeemed.

 

(iv)                              Prior
to the due presentation for registration of transfer of any Security, the
Company, the Trustee, the Paying Agent, the Registrar or any co-registrar may
deem and treat the person in whose name a Security is registered as the
absolute owner of such Security for the purpose of receiving payment of
principal of and interest on such Security and for all other purposes
whatsoever, whether or not such Security is overdue, and none of the Company,
the Trustee, the Paying Agent, the Registrar or any co-registrar shall be
affected by notice to the contrary.

 

(v)                                 Any
Definitive Security delivered in exchange for an interest in a Global Security
pursuant to Section 2.1(e) shall, except as otherwise provided by Section
2.6(c), bear the applicable legend regarding transfer restrictions
applicable to the Definitive Security set forth in Section 2.1(d).

 

(vi)                              All
Securities issued upon any transfer or exchange pursuant to the terms of this
Indenture shall evidence the same debt and shall be entitled to the same benefits
under this Indenture as the Securities surrendered upon such transfer or
exchange.

 

(f)                                    No
Obligation of the Trustee.

 

(i)                                     The
Trustee shall have no responsibility or obligation to any beneficial owner of a
Global Security, a member of, or a participant in, DTC or other Person with
respect to the accuracy of the records of DTC or its nominee or of any
participant or member thereof, with respect to any ownership interest in the
Securities or with respect to

 

40

 

the delivery to any participant, member,
beneficial owner or other Person (other than DTC) of any notice (including any
notice of redemption) or the payment of any amount or delivery of any
Securities (or other security or property) under or with respect to such
Securities. All notices and communications to be given to the Holders and all
payments to be made to Holders in respect of the Securities shall be given or
made only to or upon the order of the registered Holders (which shall be DTC or
its nominee in the case of a Global Security). The rights of beneficial owners
in any Global Security shall be exercised only through DTC subject to the
applicable rules and procedures of DTC. The Trustee may rely and shall be fully
protected in relying upon information furnished by DTC with respect to its
members, participants and any beneficial owners.

 

(ii)                                  The
Trustee shall have no obligation or duty to monitor, determine or inquire as to
compliance with any restrictions on transfer imposed under this Indenture or
under applicable law with respect to any transfer of any interest in any
Security (including any transfers between or among DTC participants, members or
beneficial owners in any Global Security) other than to require delivery of
such certificates and other documentation or evidence as are expressly required
by, and to do so if and when expressly required by, the terms of this
Indenture, and to examine the same to determine substantial compliance as to
form with the express requirements hereof.

 

Section 2.7                                      Form
of Certificate to be Delivered in Connection with Transfers to Institutional
Accredited Investors.

 

[Date]

 

Ship Finance International Limited

c/o Wilmington Trust Company

Rodney Square North

1100 North Market Street

Wilmington, Delaware 19890-0001

Attention: Corporate Trust Administration

 

Dear Sirs:

 

This certificate is
delivered to request a transfer of
$                           
principal amount of the 81⁄2% Senior Notes due 2013 (the “Securities”) of Ship Finance
International Limited (the “Company”).

 

Upon transfer, the Securities would be registered in
the name of the new beneficial owner as follows:

 

	
  Name:

  	
   

  	
   

  
	
   

  	
   

  
	
  Address: 

  	
   

  	
   

  
	
   

  	
   

  
	
  Taxpayer ID Number:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  We hereby confirm that:

  
							

 

41

 

1.                                       We
are an institutional “Accredited Investor” within the meaning of
Rule 501(a)(1), (2), (3) or (7) under the Securities Act of
1933, as amended (the “Securities Act”);

 

2.                                       Any
purchase of notes by us will be for our own account or the account of one or
more other Accredited Investors as to which we exercise sole investment
discretion;

 

3.                                       We
are not acquiring the notes for or on behalf of, and will not transfer the
notes to, any pension or welfare plan (as defined in Section 3 of the
Employee Retirement Income Security Act of 1974, as amended) except as
permitted in the section entitled “Notice to Investors” of the Offering
Circular;

 

4.                                       We
have such knowledge and experience in financial and business matters that we
are capable of evaluating the merits and risks of purchasing the notes, and we
and any accounts for which we are acting are able to bear the economic risks of
an entire loss of our or their investment in the notes;

 

5.                                       We
are not acquiring notes with a view to any distribution thereof in a transaction
that would violate the Securities Act or the securities laws of any state of
the United States or any other applicable jurisdiction; provided that the
disposition of our property and the property of any accounts for which we are
acting as fiduciary shall remain at all times within our and their control;

 

6.                                       We
acknowledge that the notes have not been registered under the Securities Act
and that the notes may not be offered or sold within the United States or to,
or for the benefit of, U.S. persons except as set forth below.

 

We agree, on
our own behalf and on behalf of each account for which we acquire any notes,
that, for a period of two years after the later of the date of
(x) original issuance of the notes and (y) the last date on which the
notes or any part thereof were owned by the Company or an affiliate of the
Company, such notes may be offered, resold, pledged or otherwise transferred
only (i) to the Company, (ii) inside the United States to a person
that we reasonably believe to be a “Qualified Institutional Buyer” (as defined
in Rule 144A under the Securities Act) in compliance with Rule 144A,
(iii) inside the United States to a person we reasonably believe to be an
Accredited Investor that, prior to such transfer, furnishes to the trustee
under the indenture governing the notes (the “Trustee”) a signed letter
containing certain representations and agreements (a form of which can be
obtained from the Trustee), (iv) outside the United States to persons
other than U.S. persons in offshore transactions meeting the requirements of
Rule 904 under Regulation S under the Securities Act,
(v) pursuant to the exemption from registration provided by Rule 144
under the Securities Act (if available), or (vi) pursuant to an effective
registration statement under the Securities Act, and in each case, in
accordance with any applicable laws of any state of the United States or any
other applicable jurisdiction.

 

We understand
that the Trustee will not be required to accept for registration of transfer
any notes acquired by us, except upon presentation of evidence satisfactory to
the Company and

 

42

 

the Trustee that the foregoing
restrictions on transfer have been complied with. We further understand that
the notes purchased by us will bear a legend reflecting the substance of this
paragraph. We further agree to provide to any person acquiring any of the notes
from us a notice advising such person that resales of the notes are restricted
as stated herein and that certificates representing the notes will bear a
legend to that effect.

 

We acknowledge
that you, the Company, the Trustee and others will rely upon our
acknowledgements, representations and agreements set forth herein, and we agree
to notify you promptly in writing if any of our acknowledgements,
representations and agreements herein cease to be accurate and complete.

 

As used
herein, the terms “offshore transaction,” “United States” and “U.S. person”
have the respective meanings given to them in Regulation S under the
Securities Act.

 

 

	
   

  	
  TRANSFEREE:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BY:

  	
   

  
				

 

Section 2.8                                      Form
of Certificate to be Delivered in Connection with Transfers Pursuant to
Regulation S.

 

[Date]

 

Ship Finance International Limited

c/o Wilmington Trust Company

Rodney Square North

1100 North Market Street

Wilmington, Delaware 19890-0001

Attention: Corporate Trust Administration

 

Re:  Ship Finance International
Limited 81⁄2 % Senior Notes due 2013 (the “Securities”)

 

Ladies and Gentlemen:

 

In connection with our
proposed sale of
$                     
aggregate principal amount of the Securities, we confirm that such sale has
been effected pursuant to and in accordance with Regulation S under the United
States Securities Act of 1933, as amended (the “Securities Act”), and,
accordingly, we represent that:

 

(a)                                  the offer of the
Securities was not made to a person in the United States;

 

(b)                                 either (i) at the time
the buy order was originated, the transferee was outside the United States or
we and any person acting on our behalf reasonably believed that the transferee

 

43

 

was outside the United States or (ii) the transaction was executed in,
on or through the facilities of a designated off-shore securities market and
neither we nor any person acting on our behalf knows that the transaction has
been pre-arranged with a buyer in the United States;

 

(c)                                  no directed selling
efforts have been made in the United States in contravention of the
requirements of Rule 903 or Rule 904 of Regulation S, as applicable; and

 

(d)                                 the transaction is not
part of a plan or scheme to evade the registration requirements of the
Securities Act.

 

In addition, if the sale
is made during a distribution compliance period and the provisions of Rule 903
or Rule 904 of Regulation S are applicable thereto, we confirm that such sale
has been made in accordance with the applicable provisions of Rule 903 or Rule
904, as the case may be.

 

You and the Company are entitled to rely upon this
letter and are irrevocably authorized to produce this letter or a copy hereof
to any interested party in any administrative or legal proceedings or official
inquiry with respect to the matters covered hereby. Terms used in this
certificate have the meanings set forth in Regulation S.

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  [Name of Transferor]

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Authorized Signature]

  

 

Section 2.9                                      Mutilated,
Destroyed, Lost or Stolen Securities. 
If a mutilated Security is surrendered to the Registrar or if the Holder
of a Security claims that the Security has been lost, destroyed or wrongfully
taken, the Company shall issue and the Trustee shall authenticate a replacement
Security if the requirements of Section 8-405 of the Uniform Commercial Code
are met, such that the Securityholder (a) satisfies the Company or the Trustee
within a reasonable time after such Securityholder has notice of such loss,
destruction or wrongful taking and the Registrar does not register a transfer
prior to receiving such notification, (b) makes such request to the Company or
Trustee prior to the Security being acquired by a protected purchaser as
defined in Section 8-303 of the Uniform Commercial Code (a “protected
purchaser”) and (c) satisfies any other reasonable requirements of
the Trustee. If required by the Trustee or the Company, such Holder shall
furnish an indemnity bond sufficient in the judgment of the Company and the
Trustee to protect the Company, the Trustee, the Paying Agent, the Registrar
and any co-registrar from any loss which any of them may suffer if a Security
is replaced, and, in the absence of notice to the Company, any Subsidiary
Guarantor or the Trustee that such Security has been acquired by a bona fide
purchaser, the Company shall execute and upon Company Order the Trustee shall
authenticate and make available for delivery, in exchange for any such
mutilated Security or in lieu of any such destroyed, lost or stolen Security, a
new Security of like tenor and principal amount, bearing a number not
contemporaneously outstanding.

 

44

 

In case any such
mutilated, destroyed, lost or stolen Security has become or is about to become
due and payable, the Company in its discretion may, instead of issuing a new
Security, pay such Security.

 

Upon the issuance of any new Security under this Section,
the Company may require the payment of a sum sufficient to cover any tax or
other governmental charge that may be imposed in relation thereto and any other
expenses (including the fees and expenses of the Trustee) in connection
therewith.

 

Every new Security issued pursuant to this Section in
lieu of any mutilated, destroyed, lost or stolen Security shall constitute an
original additional contractual obligation of the Company, any Subsidiary
Guarantor (if applicable) and any other obligor upon the Securities, whether or
not the mutilated, destroyed, lost or stolen Security shall be at any time
enforceable by anyone, and shall be entitled to all benefits of this Indenture
equally and proportionately with any and all other Securities duly issued
hereunder.

 

The provisions of this Section are exclusive and shall
preclude (to the extent lawful) all other rights and remedies with respect to
the replacement or payment of mutilated, destroyed, lost or stolen Securities.

 

Section 2.10                                Outstanding
Securities.  Securities outstanding
at any time are all Securities authenticated by the Trustee except for those
canceled by it, those delivered to it for cancellation and those described in
this Section as not outstanding. A Security shall be deemed to be outstanding in
the event the Company or an Affiliate of the Company holds the Security, provided,
however,
that (i) for purposes of determining which are outstanding for consent or
voting purposes hereunder, the provisions of Section 11.6 shall apply
and (ii) in determining whether the Trustee shall be protected in making a
determination whether the Holders of the requisite principal amount of
outstanding Securities are present at a meeting of Holders of Securities for
quorum purposes or have consented to or voted in favor of any request, demand,
authorization, direction, notice, consent, waiver, amendment or modification
hereunder, or relying upon any such quorum, consent or vote, only Securities
which a Trust Officer of the Trustee actually knows to be held by the Company
or an Affiliate of the Company shall not be considered outstanding.

 

If a Security is replaced pursuant to Section 2.9,
it ceases to be outstanding unless the Trustee and the Company receive proof
satisfactory to them that the replaced Security is held by a bona fide
purchaser.

 

If the Paying Agent segregates and holds in trust, in
accordance with this Indenture, by 10:00 a.m. (New York City time) on a
Redemption Date or other maturity date money sufficient to pay all principal,
premium and interest payable on that date with respect to the Securities (or
portions thereof) to be redeemed or otherwise maturing, as the case may be,
then on and after that date such Securities (or portions thereof) cease to be
outstanding and interest on them ceases to accrue.

 

Section 2.11                                Temporary
Securities.  In the event that Definitive Securities are
to be issued under the terms of this Indenture, until such Definitive
Securities are ready for delivery,

 

45

 

the Company may prepare and the
Trustee shall authenticate temporary Securities. Temporary Securities shall be
substantially in the form of Definitive Securities but may have variations that
the Company considers appropriate for temporary Securities. Without unreasonable
delay, the Company shall prepare and the Trustee shall authenticate Definitive
Securities. After the preparation of Definitive Securities, the temporary
Securities shall be exchangeable for Definitive Securities upon surrender of
the temporary Securities at any office or agency maintained by the Company for
that purpose and such exchange shall be without charge to the Holder. Upon
surrender for cancellation of any one or more temporary Securities, the Company
shall execute, and the Trustee shall authenticate and make available for
delivery in exchange therfor, one or more Definitive Securities representing an
equal principal amount of Securities. Until so exchanged, the Holder of
temporary Securities shall in all respects be entitled to the same benefits under
this Indenture as a Holder of Definitive Securities.

 

Section 2.12                                Cancellation.  The Company at any time may deliver
Securities to the Trustee for cancellation. The Registrar and the Paying Agent
shall forward to the Trustee any Securities surrendered to them for
registration of transfer, exchange or payment. The Trustee and no one else
shall cancel all Securities surrendered for registration of transfer, exchange,
payment or cancellation and destroy such Securities in accordance with its
internal policies including delivery of a certificate (a “Certificate of Destruction”)
describing such Securities disposed (subject to the record retention
requirements of the Exchange Act). The Company may not issue new Securities to
replace Securities it has paid or delivered to the Trustee for cancellation for
any reason other than in connection with a transfer or exchange.

 

Section 2.13                                Payment
of Interest; Defaulted Interest.  Interest on
any Security which is payable, and is punctually paid or duly provided for, on
any interest payment date shall be paid to the Person in whose name such
Security (or one or more predecessor Securities) is registered at the close of
business on the regular record date for such interest at the office or agency
of the Company maintained for such purpose pursuant to Section 2.3.

 

Any interest on any Security which is payable, but is
not paid when the same becomes due and payable and such nonpayment continues
for a period of 30 days shall forthwith cease to be payable to the Holder on
the regular record date by virtue of having been such Holder, and such
defaulted interest and (to the extent lawful) interest on such defaulted
interest at the rate borne by the Securities (such defaulted interest and
interest thereon herein collectively called “Defaulted Interest”) shall
be paid by the Company, at its election in each case, as provided in clause (a)
or (b) below:

 

(a)                                  The
Company may elect to make payment of any Defaulted Interest to the Persons in
whose names the Securities (or their respective predecessor Securities) are
registered at the close of business on a Special Record Date (as defined below)
for the payment of such Defaulted Interest, which shall be fixed in the
following manner. The Company shall notify the Trustee in writing of the amount
of Defaulted Interest proposed to be paid on each Security and the date (not
less than 30 days after such notice) of the proposed payment (the “Special
Interest Payment Date”), and at the same time the Company shall
deposit with the Trustee an amount of money equal to the aggregate amount
proposed to be paid in respect of such Defaulted Interest or shall make
arrangements satisfactory to the Trustee for such deposit prior to the date of
the proposed payment, such money when deposited to be held in trust for the
benefit of the Persons

 

46

 

entitled to such Defaulted Interest as in
this clause provided. Thereupon the Trustee shall fix a record date (the “Special
Record Date”) for the payment of such Defaulted Interest, which date
shall be not more than 15 days and not less than 10 days prior to the Special
Interest Payment Date and not less than 10 days after the receipt by the
Trustee of the notice of the proposed payment. The Trustee shall promptly notify
the Company of such Special Record Date, and in the name and at the expense of
the Company, shall cause notice of the proposed payment of such Defaulted
Interest and the Special Record Date and Special Interest Payment Date therefor
to be given in the manner provided for in Section 11.2, not less than 10
days prior to such Special Record Date. Notice of the proposed payment of such
Defaulted Interest and the Special Record Date and Special Interest Payment
Date therefor having been so given, such Defaulted Interest shall be paid on
the Special Interest Payment Date to the Persons in whose names the Securities
(or their respective predecessor Securities) are registered at the close of
business on such Special Record Date and shall no longer be payable pursuant to
the following clause (b).

 

(b)                                 The
Company may make payment of any Defaulted Interest in any other lawful manner
not inconsistent with the requirements of any securities exchange on which the
Securities may be listed, and upon such notice as may be required by such
exchange, if, after notice given by the Company to the Trustee of the proposed
payment pursuant to this clause, such manner of payment shall be deemed
practicable by the Trustee.

 

Subject to the foregoing provisions of this Section,
each Security delivered under this Indenture upon registration of transfer of,
or in exchange for or in lieu of, any other Security shall carry the rights to
interest accrued and unpaid, and to accrue, which were carried by such other
Security.

 

Section 2.14                                Computation
of Interest.  Interest on the Securities shall be computed
on the basis of a 360-day year of twelve 30-day months.

 

Section 2.15                                CUSIP
AND ISIN Numbers.  The Company in issuing the Securities may
use “CUSIP” and “ISIN” numbers (if then generally in use) and, if so, the
Trustee shall use CUSIP and ISIN numbers in notices of redemption as a
convenience to Holders; provided, however, that any such
notice may state that no representation is made as to the correctness of such
numbers either as printed on the Securities or as contained in any notice of a
redemption and that reliance may be placed only on the other identification
numbers printed on the Securities, and any such redemption shall not be
affected by any defect in or omission of such CUSIP and ISIN numbers. The
Company shall promptly notify the Trustee in writing of any change in the CUSIP
and ISIN numbers.

 

ARTICLE
III

Covenants

 

Section 3.1                                      Payment
of Securities; Payment of Additional Amounts.

 

(a)                                  Payment of
Securities.  The Company
shall pay the principal of, premium on and interest on the Securities by 10:00
a.m. New York City time on the dates and in the manner provided in the
Securities and in this Indenture. All references in this Indenture to interest
on the Securities shall be deemed to include any Additional Interest that may
be payable with respect to

 

47

 

the Securities pursuant to the applicable
Registration Rights Agreement. 
Principal, premium and interest shall be considered paid on the date due
if on such date the Trustee or the Paying Agent holds in accordance with this
Indenture immediately available funds sufficient to pay all principal, premium
and interest then due.

 

The Company shall pay interest on overdue principal or
premium at the rate specified therefor in the Securities, and it shall pay
interest on overdue installments of interest at the same rate to the extent
lawful.

 

Notwithstanding anything to the contrary contained in
this Indenture, the Company may, to the extent it is required to do so by law,
deduct or withhold income or other similar taxes imposed by the United States
of America from payments hereunder.

 

(b)                                 Payment of
Additional Amounts.  If any
taxes, assessments or other governmental charges are imposed by any
jurisdiction where the Company, a Subsidiary Guarantor or a successor of either
(a “Payor”)
is organized or otherwise considered by a taxing authority to be a resident for
tax purposes, any jurisdiction from or through which the Payor makes a payment
on the Securities, or, in each case, any political organization or governmental
authority thereof or therein having the power to tax (the “Relevant Tax Jurisdiction”)
in respect of any payments under the Securities, the Payor will pay to each
Holder of a Security, to the extent it may lawfully do so, such additional
amounts (“Additional
Amounts”) as may be necessary in order that the net amounts paid to
such Holder will be not less than the amount specified in such Security to
which such Holder is entitled; provided, however, the Payor will not
be required to make any payment of Additional Amounts for or on account of:

 

(1)                                  any
tax, assessment or other governmental charge which would not have been imposed
but for (a) the existence of any present or former connection between such
Holder (or between a fiduciary, settlor, beneficiary, member or shareholder of,
or possessor of a power over, such Holder, if such Holder is an estate, trust,
partnership, limited liability company or corporation) and the Relevant Tax Jurisdiction
including, without limitation, such Holder (or such fiduciary, settlor,
beneficiary, member, shareholder or possessor) being or having been a citizen
or resident thereof or being or having been present or engaged in trade or
business therein or having or having had a permanent establishment therein or
(b) the presentation of a Security (where presentation is required) for payment
on a date more than 30 days after (x) the date on which such payment became due
and payable or (y) the date on which payment thereof is duly provided for,
whichever occurs later (in either case (x) or (y), except to the extent that
the Holder would have been entitled to Additional Amounts had the Security been
presented for such 30-day period);

 

(2)                                  any
estate, inheritance, gift, sales, transfer, personal property or similar tax,
assessment or other governmental charge;

 

(3)                                  any
tax, assessment or other governmental charge that is imposed or withheld by
reason of the failure by the Holder or the beneficial owner of the Security to
comply with a reasonable and timely request of the Payor addressed to the
Holder to provide information, documents or other evidence concerning the
nationality, residence or identity of the Holder or such beneficial owner which
is required by a statute, treaty, regulation or administrative practice

 

48

 

of the taxing jurisdiction as a precondition
to exemption from all or part of such tax, assessment or other governmental
charge; or

 

(4)                                  any
combination of the above;

 

nor will Additional Amounts be paid with respect to any payment of the
principal of, or any premium or interest on, any Security to any Holder who is
a fiduciary or partnership or limited liability company or other than the sole
beneficial owner of such payment to the extent such payment would be required
by the laws of the Relevant Tax Jurisdiction to be included in the income for
tax purposes of a beneficiary or settlor with respect to such fiduciary or a
member of such partnership, limited liability company or beneficial owner who
would not have been entitled to such Additional Amounts had it been the Holder
of such Security.

 

The Payor will provide the Trustee with the official
acknowledgment of the Relevant Tax Authority (or, if such acknowledgment is not
available, a certified copy thereof) evidencing the payment of the withholding
taxes by the Payor. Copies of such documentation will be made available to the
Holders of the Securities or the Paying Agents, as applicable, upon request therefor.

 

The Company and the Subsidiary Guarantors will pay any
present or future stamp, court or documentary taxes, or any other excise or
property taxes, charges or similar levies which arise in any jurisdiction from
the execution, delivery or registration of the Securities or any other document
or instrument referred to in this Indenture (other than a transfer of the
Securities), or the receipt of any payments with respect to the Securities,
excluding any such taxes, charges or similar levies imposed by any jurisdiction
outside Bermuda or any jurisdiction in which a Paying Agent is located, other
than those resulting from, or required to be paid in connection with, the
enforcement of this Indenture or any other such document or instrument
following the occurrence of any Event of Default.

 

All references in this Indenture to principal of,
premium, if any, and interest on the Securities will include any Additional
Amounts payable by the Payor in respect of such principal, such premium, if
any, and such interest.

 

Section 3.2                                      SEC
Reports.   (1) The Company shall,
for so long as any of the Securities remain outstanding, file with the SEC and
the Trustee all such reports and other information which the Company would
have been required to file with (and in such form as is required by) the SEC
pursuant to Section 13(a) or 15(d) of the Exchange Act or any successor
provision thereto applicable to a “foreign private issuer,” as that term is
defined in Rule 3b-4 under the Exchange Act, such documents to be filed
with the SEC on or prior to the respective dates (the “Required Filing Dates”) by
which the Company would be required so to file such documents and
(b) whether or not required pursuant to the immediately preceding clause,
(i) within 120 days following the end of each fiscal year of the
Company, annual reports on Form 20-F (or any successor form) containing
the information required to be contained therein (or required in such successor
form); and (ii) within 60 days after the end of each of the first
three fiscal quarters of each fiscal year of the Company, reports on
Form 6-K (or any successor form), containing unaudited financial
statements (including a balance sheet and statement of income, changes in
stockholders’ equity and cash flows) and Management’s Discussion and

 

49

 

Analysis of Financial Condition
and Results of Operations for and as of the end of each such quarter (with
comparable financial statements for such quarter in the immediately preceding
fiscal year). The Company shall also in any event (a) within 15 days
of each Required Filing Date, as applicable, request that the Trustee transmit
such documents by mail to all Holders, as their names and addresses appear in
the Securities register, without cost to such Holders, and (b) if filing
such documents by the Company with the SEC is not permitted under the Exchange
Act, promptly upon written request supply copies of such documents to any
prospective Holder. Notwithstanding anything herein to the contrary, if the
Company is not subject to the reporting requirements of such Section 13(a)
or 15(d) of the Exchange Act, the Company shall be deemed to have satisfied
this Section 3.2 by supplying all of the foregoing information to the
Trustee and making all such information publicly available on the Company’s
website.

 

(2) If the
Company has designated any of its Subsidiaries as Unrestricted Subsidiaries,
then the quarterly and annual financial information required by the preceding
paragraph shall include a reasonably detailed presentation, either on the face
of the financial statements or in the footnotes to the financial statements,
and in Management’s Discussion and Analysis of Results of Operations and
Financial Condition of the financial condition and results of operations of the
Company and its Restricted Subsidiaries separate from the financial condition
and results of operations of the Unrestricted Subsidiaries.

 

(3) In addition, for so long as any Securities remain
outstanding, the Company and the Subsidiary Guarantors will furnish to the
Holders of the Securities and prospective purchasers of the Securities, upon
their request, the information, if any, required to be delivered pursuant to
Rule 144A(d)(4) under the Securities Act.

 

(4)  The
Company shall at all times comply with TIA §314(a).

 

Section 3.3                                      Limitation
on Indebtedness.  The Company shall
not, and shall not permit any of its Restricted Subsidiaries to, Incur any
Indebtedness; provided, however, that the Company and the
Subsidiary Guarantors may Incur Indebtedness if on the date thereof:

 

(1)                                  the
Consolidated Coverage Ratio for the Company and its Restricted Subsidiaries is
at least 2.00 to 1.00; and

 

(2)                                  no
Default or Event of Default will have occurred or be continuing or would occur
as a consequence of Incurring the Indebtedness.

 

The first paragraph of this Section 3.3 will
not prohibit the Incurrence of the following Indebtedness:

 

(1)                                  Indebtedness
of the Company and its Restricted Subsidiaries Incurred pursuant to the Credit
Facilities in an amount up to $1,160,000,000 at any time outstanding;

 

(2)                                  Indebtedness
of the Company or any Restricted Subsidiary Incurred to finance the replacement
(through construction or acquisition) of one or more Vessels, and any assets
that shall become Related Assets (and any Refinancing Indebtedness with respect
to such Vessels or assets), upon a Total Loss, in an aggregate amount no
greater than the Ready for Sea Cost for such replacement Vessel, in each case
less all compensation, damages and other payments

 

50

 

(including insurance proceeds other than in
respect of business interruption insurance) actually received by the Company or
any Restricted Subsidiary from any Person in connection with the Total Loss in
excess of amounts actually used to repay Indebtedness secured by the Vessel
subject to the Total Loss;

 

(3)                                  the
Subsidiary Guarantees and other Guarantees by the Subsidiary Guarantors of
Indebtedness Incurred in accordance with the provisions of this Indenture; provided that
in the event such Indebtedness that is being Guaranteed is a Subordinated
Obligation or a Guarantor Subordinated Obligation, then the related Guarantee
shall be subordinated in right of payment to the Subsidiary Guarantee;

 

(4)                                  Indebtedness
of the Company owing to and held by any Restricted Subsidiary or Indebtedness
of a Restricted Subsidiary owing to and held by the Company or any Restricted
Subsidiary, provided,
however,

 

(a)                                  if
the Company is the obligor on such Indebtedness, such Indebtedness is unsecured
and expressly subordinated to all its obligations with respect to the
Securities; and

 

(b)                                 (x)
any subsequent issuance or transfer of Capital Stock or any other event that
results in any such Indebtedness being beneficially held by a Person other than
the Company or a Restricted Subsidiary and (y)                             any sale or other transfer
of any such Indebtedness to a Person other than the Company or a Restricted
Subsidiary, shall be deemed, in each case, to constitute an Incurrence of such
Indebtedness by the Company or such Subsidiary, as the case may be;

 

(5)                                  (a)
Indebtedness represented by the Securities (excluding any Additional Securities
issued after the Issue Date) and (b) any Refinancing Indebtedness Incurred in
respect of (w) the Securities, (x) any Indebtedness described in clause (2),
(y) and Indebtedness Incurred pursuant to the first paragraph of this covenant
or (z) any Indebtedness described in this clause (5);

 

(6)                                  Indebtedness
under Currency Agreements, Fuel Hedging Agreements and Interest Rate
Agreements; provided
that in the case of Currency Agreements and Fuel Hedging Agreements,
such Currency Agreements and Fuel Hedging Agreements are related to business
transactions of the Company or its Restricted Subsidiaries entered into in the
ordinary course of business or in the case of Currency Agreements, Fuel Hedging
Agreements and Interest Rate Agreements, such Currency Agreements, Fuel Hedging
Agreements and Interest Rate Agreements are entered into for bona fide hedging
purposes of the Company or its Restricted Subsidiaries (as determined in good
faith by the Board of Directors or senior management of the Company) and
substantially correspond in terms of notional amount, duration, currencies and
interest rates, as applicable, to Indebtedness of the Company or its Restricted
Subsidiaries Incurred without violation of this Indenture;

 

(7)                                  Indebtedness
of the Company or any Restricted Subsidiary Incurred in relation to: (a)
regular maintenance required to maintain the classification of any of the
Vessels owned, time chartered or bareboat chartered to or by the Company or any
Restricted Subsidiary; (b) scheduled

 

51

 

dry-docking of any of the Vessels owned by
the Company or any Restricted Subsidiary for normal maintenance purposes; and
(c) any expenditures which will or may reasonably expected to be recoverable
from insurance on such Vessels;

 

(8)                                  Indebtedness
incurred in respect of workers’ compensation claims, self-insurance
obligations, performance, surety and similar bonds and completion guarantees
provided by the Company or a Restricted Subsidiary in the ordinary course of
business;

 

(9)                                  Indebtedness
arising from agreements of the Company or a Restricted Subsidiary providing for
indemnification, adjustment of purchase price or similar obligations, in each
case, Incurred in connection with the disposition of any business, assets or
Capital Stock of a Restricted Subsidiary, provided that the maximum aggregate
liability in respect of all such Indebtedness shall at no time exceed the gross
proceeds actually received by the Company and its Restricted Subsidiaries in
connection with such disposition;

 

(10)                            Indebtedness
arising from the honoring by a bank or other financial institution of a check,
draft or similar instrument (except in the case of daylight overdrafts) drawn
against insufficient funds in the ordinary course of business, provided,
however,
that such Indebtedness is extinguished within five business days of Incurrence;
and

 

(11)                            in
addition to the items referred to in clauses (1) through (10) above,
Indebtedness of the Company and its Restricted Subsidiaries in an aggregate
outstanding principal amount which, when taken together with the principal
amount of all other Indebtedness Incurred pursuant to this clause (11) and then
outstanding, will not exceed $75.0 million.

 

The Company will not Incur any Indebtedness under the
preceding paragraph if the proceeds thereof are used, directly or indirectly,
to refinance any Subordinated Obligations of the Company unless such
Indebtedness will be subordinated to the Securities to at least the same extent
as such Subordinated Obligations. No Subsidiary Guarantor will incur any
Indebtedness if the proceeds thereof are used, directly or indirectly, to refinance
any Guarantor Subordinated Obligations of such Subsidiary Guarantor unless such
Indebtedness will be subordinated to the obligations of such Subsidiary
Guarantor under its Subsidiary Guarantee to at least the same extent as such
Guarantor Subordinated Obligations.

 

For purposes of determining compliance with, and the
outstanding principal amount of any particular Indebtedness Incurred pursuant
to and in compliance with, this Section 3.3:

 

(1)                                  in
the event that Indebtedness meets the criteria of more than one of the types of
Indebtedness described in the first and second paragraphs of this Section
3.3, the Company, in its sole discretion, will classify such item of
Indebtedness on the date of Incurrence (or later classify or reclassify such
Indebtedness) and only be required to include the amount and type of such
Indebtedness in one of such clauses; and

 

(2)                                  the
amount of Indebtedness issued at a price that is less than the principal amount
thereof will be equal to the amount of the liability in respect thereof
determined in accordance with GAAP.

 

52

 

Accrual of interest, accrual of dividends, the
accretion of value, the payment of interest in the form of additional
Indebtedness and the payment of dividends in the form of additional shares of
Preferred Stock will not be deemed to be an Incurrence of Indebtedness for
purposes of this Section 3.3. The amount of any Indebtedness outstanding
as of any date shall be (a) the accreted value of the Indebtedness in the case
of any Indebtedness issued with original issue discount and (b) the principal
amount or liquidation preference thereof, together with any interest thereon
that is more than 30 days past due, in the case of any other Indebtedness.

 

In addition, the Company will not permit any of its
Unrestricted Subsidiaries to Incur any Indebtedness or issue any shares of
Disqualified Stock, other than Non-Recourse Debt. If at any time an
Unrestricted Subsidiary becomes a Restricted Subsidiary, any Indebtedness of
such Subsidiary shall be deemed to be Incurred by a Restricted Subsidiary as of
such date (and, if such Indebtedness is not permitted to be Incurred as of such
date under this Section 3.3, the Company shall be in Default of
this Section 3.3).

 

Section 3.4                                      Limitation
on Restricted Payments.  The Company
shall not, and shall not permit any of its Restricted Subsidiaries, directly or
indirectly, to:

 

(1)                                  declare
or pay any dividend or make any distribution on or in respect of its Capital
Stock (including any payment in connection with any merger or consolidation
involving the Company or any of its Restricted Subsidiaries) except:

 

(a)                                  dividends
or distributions payable in Capital Stock of the Company (other than
Disqualified Stock) or in options, warrants or other rights to purchase such
Capital Stock; and

 

(b)                                 dividends
or distributions payable to the Company or a Restricted Subsidiary (and if such
Restricted Subsidiary is not a Wholly Owned Subsidiary, to its other holders of
Common Stock on a pro rata basis);

 

(2)                                  purchase,
redeem, retire or otherwise acquire for value any Capital Stock of the Company
or any direct or indirect parent of the Company held by Persons other than the
Company or a Restricted Subsidiary (other than in exchange for Capital Stock of
the Company (other than Disqualified Stock));

 

(3)                                  purchase,
repurchase, redeem, defease or otherwise acquire or retire for value, prior to
scheduled maturity, scheduled repayment or scheduled sinking fund payment, any
Subordinated Obligations or Guarantor Subordinated Obligations (other than the
purchase, repurchase or other acquisition of Subordinated Obligations or
Guarantor Subordinated Obligations purchased in anticipation of satisfying a
sinking fund obligation, principal installment or final maturity, in each case
due within one year of the date of purchase, repurchase or acquisition); or

 

(4)                                  make
any Restricted Investment in any Person;

 

(any such dividend, distribution, purchase, redemption, repurchase,
defeasance, other acquisition, retirement or Restricted Investment referred to
in clauses (1) through (4) shall be referred to herein as a “Restricted
Payment”), unless at the time of and after giving effect to such
Restricted

 

53

 

Payment no Default or Event of Default shall have occurred and be
continuing or would occur as a consequence thereof and either:

 

(I)  Prior to completion of a
Successful Public Listing only, the Company is able to Incur an additional
$1.00 of Indebtedness pursuant to the first paragraph of Section 3.3
after giving effect, on a pro forma basis, to such Restricted Payment and the
aggregate amount of such Restricted Payment and all other Restricted Payments
declared or made subsequent to the Issue Date would not exceed the sum of:

 

(i)                                     15%
of Consolidated Cash Flow for the period (treated as one accounting period)
from the first day of the fiscal quarter in which the Issue Date occurs to the
end of the most recent fiscal quarter ending prior to the date of such
Restricted Payment for which financial statements are in existence; plus

 

(ii)                                  the
aggregate Net Cash Proceeds received by the Company from the issue or sale of
its Capital Stock (other than Disqualified Stock) or other capital
contributions subsequent to the Issue Date (other than Net Cash Proceeds
received from an issuance or sale of such Capital Stock to a Subsidiary of the
Company or an employee stock ownership plan, option plan or similar trust to
the extent such sale to an employee stock ownership plan, option plan or
similar trust is financed by loans from or guaranteed by the Company or any
Restricted Subsidiary unless such loans have been repaid with cash on or prior
to the date of determination); plus

 

(iii)                               $5.0
million; or

 

(II) 
From and after completion of a Successful Public Listing only,

 

(a)                                  if
the Consolidated Coverage Ratio for the Company and its Restricted Subsidiaries
is at least 1.75 to 1.0, such Restricted Payment, together with the aggregate
amount of all other Restricted Payments made by the Company and its Restricted
Subsidiaries with respect to the fiscal quarter for which such Restricted
Payment is made, is less than Available Surplus Cash with respect to the
immediately preceding fiscal quarter, provided that the Company will not pay or
declare any extraordinary or one-time dividends on its Capital Stock
(“extraordinary or one-time dividends” meaning for such purpose dividends in
excess of amounts stated in the Company’s regular Capital Stock dividend policy
as determined from time to time by the Company’s Board of Directors); or

 

(b)                                 if
the Consolidated Coverage Ratio for the Company and its Restricted Subsidiaries
is less than 1.75 to 1.00, such Restricted Payment, together with the aggregate
amount of all other Restricted Payments made by the Company and its Restricted
Subsidiaries with respect to the quarter for which such Restricted Payment is
made (such Restricted Payments for purposes of this clause (b) meaning
only distributions on Common Stock of the Company), is less than $25.0 million
less the aggregate amount of all Restricted Payments made by the Company and
its Restricted Subsidiaries pursuant to this clause (b) during the

 

54

 

period ending
on the last day of the fiscal quarter of the Company immediately preceding the
date of such Restricted Payment and beginning on the Issue Date.

 

Notwithstanding any of the foregoing provisions of this covenant,
neither the Company or any Restricted Subsidiary shall make any Restricted
Payment to the extent that, after giving effect to such Restricted Payment, the
sum of (a) cash and Cash Equivalents held by the Company and its
Restricted Subsidiaries and (b) cash and Cash Equivalents held by the
Charterer to support its obligations under its Vessel charters with the Company
or its Restricted Subsidiaries in accordance with the Charter Ancillary
Agreement, is less than $100.0 million. 
For the purposes of the foregoing, from and after completion of a
Successful Public Listing, the Company may rely in good faith upon written
confirmation from the Charterer, delivered no more than two Business Days prior
to its determination, as to the amount of cash and Cash Equivalents then held
by the Charterer.

 

The foregoing provisions of this Section 3.4
will not prohibit:

 

(1)                                  any
purchase or redemption of Capital Stock, Subordinated Obligations or Guarantor
Subordinated Obligations made by exchange for, or out of the proceeds of the
substantially concurrent sale of, Capital Stock of the Company (other than
Disqualified Stock and other than Capital Stock issued or sold to a Subsidiary
or an employee stock ownership plan or similar trust to the extent such sale to
an employee stock ownership plan or similar trust is financed by loans from or
Guaranteed by the Company or any Restricted Subsidiary unless such loans have
been repaid with cash on or prior to the date of determination); provided,
however, that (a) such purchase or redemption will be excluded in
subsequent calculations of the amount of Restricted Payments and (b) the Net
Cash Proceeds from such sale will be excluded from clause I(ii) of the
preceding paragraph;

 

(2)                                  any
purchase or redemption of Subordinated Obligations or Guarantor Subordinated
Obligations made by exchange for, or out of the proceeds of the substantially
concurrent sale of, Subordinated Obligations or Guarantor Subordinated
Obligations, respectively, that qualifies as Refinancing Indebtedness; provided,
however,
that such purchase or redemption will be excluded in subsequent calculations of
the amount of Restricted Payments;

 

(3)                                  dividends
paid within 60 days after the date of declaration if at such date of
declaration such dividend would have complied with this provision; provided,
however,
that such dividends will be included in subsequent calculations of the amount
of Restricted Payments;

 

(4)                                  so
long as no Default or Event of Default has occurred and is continuing, the
purchase, redemption or other acquisition, cancellation or retirement for value
of Capital Stock, or options, warrants, equity appreciation rights or other
rights to purchase or acquire Capital Stock of the Company or any Restricted
Subsidiary or any parent of the Company held by any existing or former
employees or management of the Company or any Restricted Subsidiary or their assigns,
estates or heirs, in each case in connection with the repurchase provisions
under employee or director stock option or stock purchase agreements or other
agreements to compensate management employees or directors; provided
that such redemptions or repurchases pursuant to this clause will not exceed
$2.5 million in the aggregate during any calendar year and $10.0 million in the
aggregate for all such redemptions and repurchases; provided, however,
that

 

55

 

the amount of any such repurchase or
redemption will be included in subsequent calculations of the amount of
Restricted Payments;

 

(5)                                  so
long as no Default or Event of Default has occurred and is continuing, the
declaration and payment of dividends to holders of any class or series of
Disqualified Stock of the Company issued in accordance with the terms of this
Indenture to the extent such dividends are included in the definition of
“Consolidated Interest Expense;” provided that the payment of such dividends
will be included in subsequent calculations of the amount of Restricted
Payments; and

 

(6)                                  repurchases
of Capital Stock deemed to occur upon the exercise of stock options if such
Capital Stock represents a portion of the exercise price thereof; provided,
however,
that such repurchases will be excluded from subsequent calculations of the
amount of Restricted Payments.

 

The amount of all Restricted Payments (other than
cash) shall be the fair market value on the date of such Restricted Payment of
the asset(s) or securities proposed to be paid, transferred or issued by the
Company or such Restricted Subsidiary, as the case may be, pursuant to such
Restricted Payment. The fair market value of any cash Restricted Payment shall
be its face amount and any non-cash Restricted Payment shall be determined
conclusively by the Board of Directors of the Company acting in good faith by
resolution, such determination to be based upon an opinion or appraisal issued
by an investment banking firm of national standing if such fair market value is
estimated to exceed $25.0 million, or, in the case of a Vessel, to be based
upon a written appraisal of three Independent Appraisers.

 

Not later than the date of making any Restricted
Payment (excluding any Restricted Payment described in the preceding clause
(6)), the Company shall deliver to the Trustee an Officers’ Certificate stating
that such Restricted Payment is permitted and setting forth the basis upon
which the calculations required by this Section 3.4 were computed,
together with a copy of any fairness opinion or appraisal required by this
Indenture.

 

Section 3.5                                      Limitation
on Liens.  The Company shall not,
and shall not permit any of its Restricted Subsidiaries to, directly or
indirectly, create, incur or suffer to exist any Lien (other than Permitted
Liens) upon any of its property or assets (including Capital Stock), whether
owned on the date of this Indenture or acquired after that date, securing any
Indebtedness, unless contemporaneously with the Incurrence of the Liens
effective provision is made to secure the Indebtedness due under this Indenture
and the Securities or, in respect of Liens on any Restricted Subsidiary’s
property or assets, any Subsidiary Guarantee of such Restricted Subsidiary,
equally and ratably with (or prior to in the case of Liens with respect to
Subordinated Obligations or Guarantor Subordinated Obligations, as the case may
be) the Indebtedness secured by such Lien for so long as such Indebtedness is
so secured.

 

Section 3.6                                      Limitation
on Restrictions on Distributions from Restricted Subsidiaries.  The Company shall not, and shall not permit
any Restricted Subsidiary to, create or otherwise cause or permit to exist or
become effective any consensual encumbrance or consensual restriction on the ability
of any Restricted Subsidiary to:

 

56

 

(1)                                  pay
dividends or make any other distributions on its Capital Stock to the Company
or any Restricted Subsidiary or pay any Indebtedness or other obligations owed
to the Company or any Restricted Subsidiary;

 

(2)                                  make
any loans or advances to the Company or any Restricted Subsidiary; or

 

(3)                                  transfer
any of its property or assets to the Company or any Restricted Subsidiary.

 

The preceding provisions will not prohibit:

 

(a)  any encumbrance or restriction with respect to a Restricted
Subsidiary pursuant to an agreement relating to any Indebtedness Incurred by a
Restricted Subsidiary on or before the date on which such Restricted Subsidiary
was acquired by the Company (other than Indebtedness Incurred as consideration
in, or to provide all or any portion of the funds utilized to consummate, the
transaction or series of related transactions pursuant to which such Restricted
Subsidiary became a Restricted Subsidiary or was acquired by the Company or in
contemplation of the transaction) and outstanding on such date;

 

(b)                                 any
encumbrance or restriction with respect to a Restricted Subsidiary pursuant to
an agreement effecting a refunding, replacement or refinancing of Indebtedness
Incurred pursuant to an agreement referred to in clause (a) of this paragraph
or this clause (b) or contained in any amendment to an agreement referred to in
clause (a) of this paragraph or this clause (b); provided, however, that the
encumbrances and restrictions with respect to such Restricted Subsidiary
contained in any such agreement are no less favorable in any material respect
to the Holders of the Securities than the encumbrances and restrictions
contained in such agreements referred to in clause (a) of this paragraph on the
Issue Date or the date such Restricted Subsidiary became a Restricted
Subsidiary, whichever is applicable;

 

(c)                                  in
the case of clause (3) of the first paragraph of this Section 3.6, any
encumbrance or restriction:

 

(x)                                   that
restricts in a customary manner the subletting, assignment or transfer of any
property or asset that is subject to a charter, lease, license or similar
contract, or the assignment or transfer of any such charter, lease, license or
other contract;

 

(y)                                 contained
in mortgages, pledges or other security agreements permitted under this
Indenture securing Indebtedness of the Company or a Restricted Subsidiary to
the extent such encumbrances or restrictions restrict the transfer of the
property subject to such mortgages, pledges or other security agreements; or

 

(z)                                   pursuant
to customary provisions restricting dispositions of real property interests set
forth in any reciprocal easement agreements of the Company or any Restricted
Subsidiary;

 

57

 

(d)                                 purchase
money obligations for property acquired in the ordinary course of business that
impose encumbrances or restrictions of the nature described in clause (3) of
the first paragraph of this Section 3.6 on the property so acquired;

 

(e)                                  any
restriction with respect to a Restricted Subsidiary (or any of its property or
assets) imposed pursuant to an agreement entered into for the direct or
indirect sale or disposition of all or substantially all the Capital Stock or assets
of such Restricted Subsidiary (or the property or assets that are subject to
such restriction) pending the closing of such sale or disposition; and

 

(f)                                    encumbrances
or restrictions arising or existing by reason of applicable law or any
applicable rule, regulation or order.

 

Section 3.7                                      Limitation
on Sales of Assets and Subsidiary Stock.

 

(a)                                  The Company shall
not, and shall not permit any of its Restricted Subsidiaries to, make any Asset
Disposition (excluding for purposes of the following clauses (1) and (2) an
Asset Disposition connected with a Total Loss) unless:

 

(1)                                  the
Company or such Restricted Subsidiary, as the case may be, receives
consideration at the time of such Asset Disposition at least equal to the fair
market value, as determined in good faith by the Board of Directors (including
as to the value of all non-cash consideration), of the shares and assets
subject to such Asset Disposition;

 

(2)                                  at
least 80% of the consideration from such Asset Disposition received by the
Company or such Restricted Subsidiary, as the case may be, is in the form of
cash or Cash Equivalents; and

 

(3)                                  subject
to the requirement to make an Asset Disposition Offer as described below, an
amount equal to 100% of the Net Available Cash from such Asset Disposition (including
from an Asset Disposition connected with a Total Loss) is applied by the
Company or such Restricted Subsidiary, as the case may be, to any one of the
following:

 

(a)                                  to
prepay, repay or purchase Indebtedness (other than Disqualified Stock or Subordinated
Obligations) of the Company or Indebtedness (other than any Preferred Stock or
Guarantor Subordinated Obligation) of a Restricted Subsidiary (in each case
other than Indebtedness owed to the Company or an Affiliate of the Company)
within 360 days from the later of the date of such Asset Disposition or the
receipt of such Net Available Cash; provided, however, that, in connection
with any prepayment, repayment or purchase of Indebtedness pursuant to this
clause (a), the Company or such Restricted Subsidiary will retire such
Indebtedness and will cause the related commitment (if any) to be permanently
reduced in an amount equal to the principal amount so prepaid, repaid or
purchased; and

 

(b)                                 to
acquire or invest in Additional Assets or make installment or progress payments
in respect of such Additional Assets within 360 days from the

 

58

 

later of the date of such Asset Disposition
or the receipt of such Net Available Cash.

 

(b)                                 Any Net Available Cash
from Asset Dispositions that are not applied or invested as provided in the
preceding paragraph will be deemed to constitute “Excess Proceeds.” On the
361st day after an Asset Disposition, if the aggregate amount of Excess
Proceeds exceeds $10.0 million, the Company shall make an offer (“Asset
Disposition Offer”) to all Holders of Securities and to the extent
required by the terms of other Pari Passu Indebtedness, to all holders of other
Pari Passu Indebtedness outstanding with similar provisions requiring the
Company to make an offer to purchase such Pari Passu Indebtedness with the
proceeds from any Asset Disposition (“Pari Passu Notes”), to purchase the
maximum principal amount of Securities and any such Pari Passu Notes to which
the Asset Disposition Offer applies that may be purchased out of the Excess
Proceeds, at an offer price in cash in an amount equal to 100% of the principal
amount of the Securities and Pari Passu Notes (or, in respect of the Pari Passu
Notes, such lesser offer price as many be applicable) plus accrued and unpaid
interest to the date of purchase, in accordance with the procedures set forth
in this Indenture or the agreements governing the Pari Passu Notes, as
applicable, in each case in integral multiples of $1,000. To the extent that
the aggregate amount of Securities and Pari Passu Notes so validly tendered and
not properly withdrawn pursuant to an Asset Disposition Offer is less than the
Excess Proceeds, the Company may use any remaining Excess Proceeds for general
corporate purposes, subject to the other covenants contained in this Indenture.
If the aggregate principal amount of Securities surrendered by Holders thereof
and other Pari Passu Notes surrendered by holders or lenders, collectively,
exceeds the amount of Excess Proceeds, the Trustee shall select the Securities
and Pari Passu Notes to be purchased on a pro rata basis on the basis of the
aggregate principal amount of tendered Securities and Pari Passu Notes. Upon
completion of such Asset Disposition Offer, the amount of Excess Proceeds shall
be reset at zero.

 

(c) (1) The Asset Disposition Offer will
remain open for a period of 20 Business Days following its commencement, except
to the extent that a longer period is required by applicable law (the “Asset
Disposition Offer Period”). No later than five Business Days after
the termination of the Asset Disposition Offer Period (the “Asset
Disposition Purchase Date”), the Company will purchase the principal
amount of Securities and Pari Passu Notes required to be purchased pursuant to
this Section 3.7 (the “Asset Disposition Offer Amount”) or, if
less than the Asset Disposition Offer Amount has been so validly tendered, all
Securities and Pari Passu Notes validly tendered in response to the Asset
Disposition Offer.

 

(2)                                  If the Asset
Disposition Purchase Date is on or after an interest record date and on or
before the related interest payment date, any accrued and unpaid interest will
be paid to the Person in whose name a Security is registered at the close of
business on such record date, and no additional interest will be payable to
Holders of the Securities who tender Securities pursuant to the Asset
Disposition Offer.

 

(3)                                  On or before the
Asset Disposition Purchase Date, the Company will, to the extent lawful, accept
for payment, on a pro rata basis to the extent necessary, the Asset Disposition
Offer Amount of Securities and Pari Passu Notes or portions of Securities and
Pari Passu Notes so validly tendered and not properly withdrawn pursuant to the
Asset Disposition Offer, or if less than the Asset Disposition Offer Amount has
been validly tendered and not 

59

 

properly withdrawn, all Securities and Pari
Passu Notes so validly tendered and not properly withdrawn, in each case in integral
multiples of $1,000. The Company will deliver to the Trustee an Officers’
Certificate stating that such Securities or portions thereof were accepted for
payment by the Company in accordance with the terms of this Section 3.7
and, in addition, the Company will deliver all certificates and Pari Passu
Notes required, if any, by the agreements governing the Pari Passu Notes. The
Company or the Paying Agent, as the case may be, will promptly (but in any case
not later than five Business Days after termination of the Asset Disposition
Offer Period) mail or deliver to each tendering Holder of Securities or holder
or lender of Pari Passu Notes, as the case may be, an amount equal to the
purchase price of the Securities or Pari Passu Notes so validly tendered and
not properly withdrawn by such holder or lender, as the case may be, and
accepted by the Company for purchase, and the Company will promptly issue a new
Security, and the Trustee, upon delivery of an Officers’ Certificate from the
Company will authenticate and mail or deliver such new Security to such Holder,
in a principal amount equal to any unpurchased portion of the Security
surrendered; provided that each such new Security will be in a principal
amount of $1,000 or an integral multiple of $1,000. In addition, the Company
will take any and all other actions required by the agreements governing the
Pari Passu Notes. Any Security not so accepted will be promptly mailed or
delivered by the Company to the Holder thereof. The Company will publicly announce
the results of the Asset Disposition Offer on the Asset Disposition Purchase
Date.

 

For the purposes of this Section 3.7, the
following will be deemed to be cash:

 

(1)                                  the
assumption by the transferee of Indebtedness (other than Subordinated
Obligations or Disqualified Stock) of the Company or Indebtedness (other than
Guarantor Subordinated Obligations or Preferred Stock) of any Restricted
Subsidiary of the Company and the release of the Company or such Restricted
Subsidiary from all liability on such Indebtedness in connection with such
Asset Disposition (in which case the Company will, without further action, be
deemed to have applied such deemed cash to Indebtedness in accordance with
clause (a)(3)(a) above); and

 

(2)                                  securities,
notes or other obligations received by the Company or any Restricted Subsidiary
of the Company from the transferee that are converted by the Company or such
Restricted Subsidiary into cash within 90 days from the receipt of such
obligations.

 

The Company will, and will not permit any Restricted
Subsidiary to, engage in any Asset Swaps, unless:

 

(1)                                  at
the time of entering into such Asset Swap and immediately after giving effect
to such Asset Swap, no Default or Event of Default shall have occurred and be
continuing or would occur as a consequence thereof;

 

(2)                                  in
the event such Asset Swap involves the transfer by the Company or any
Restricted Subsidiary of assets having an aggregate fair market value, as
determined by the Board of Directors of the Company in good faith, in excess of
$5.0 million, the terms of such Asset Swap have been approved by a majority of
the members of the Board of Directors of the Company; and

 

60

 

(3)                                  in
the event such Asset Swap involves the transfer by the Company or any
Restricted Subsidiary of assets having an aggregate fair market value, as
determined by the Board of Directors of the Company in good faith, in excess of
$30.0 million, the Company has received a written opinion from an independent
investment banking firm of nationally recognized standing (or, in the case of
Vessels, three Independent Appraisers), that such Asset Swap is fair to the
Company or such Restricted Subsidiary, as the case may be, from a financial
point of view.

 

(d)                                 The Company will
comply, to the extent applicable, with the requirements of Section 14(e) of the
Exchange Act and any other securities laws or regulations in connection with
the repurchase of Securities pursuant to this Section 3.7. To the extent
that the provisions of any securities laws or regulations conflict with
provisions of this Section 3.7, the Company will comply with the
applicable securities laws and regulations and will not be deemed to have
breached its obligations under this Indenture by virtue of any conflict.

 

Section 3.8                                      Limitation
on Affiliate Transactions.  (a) The
Company shall not, and shall not permit any of its Restricted Subsidiaries to,
directly or indirectly, enter into or conduct any transaction (including the
purchase, sale, lease or exchange of any property or the rendering of any
service) with any Affiliate of the Company (an “Affiliate Transaction”)
unless:

 

(1)                                  the
terms of such Affiliate Transaction are no less favorable to the Company or
such Restricted Subsidiary, as the case may be, than those that could be
obtained in a comparable transaction at the time of such transaction in
arm’s-length dealings with a Person who is not such an Affiliate;

 

(2)                                  in
the event such Affiliate Transaction involves an aggregate amount in excess of
$5.0 million, the terms of such transaction have been approved by a majority of
the members of the Board of Directors of the Company and by a majority of the
members of such Board having no direct or indirect interest (other than with
respect to the Company) in such transaction, if any, (and such majority or
majorities, as the case may be, determines that such Affiliate Transaction
satisfies the criteria in clause (1) above); and

 

(3)                                  in
the event such Affiliate Transaction involves an aggregate amount in excess of
$10.0 million, the Company has received a written opinion from an independent
investment banking firm of nationally recognized standing (or, in the case of
Vessels, three Independent Appraisers) that such Affiliate Transaction is not
materially less favorable than those that might reasonably have been obtained
in a comparable transaction at such time on an arm’s-length basis from a Person
that is not an Affiliate.

 

(b)    The preceding paragraph
will not apply to:

 

(1)                                  any
Restricted Payment (other than a Restricted Investment) permitted to be made
pursuant to Section 3.4;

 

(2)                                  any
issuance of securities, or other payments, awards or grants in cash, securities
or otherwise pursuant to, or the funding of, employment arrangements, stock
options and stock ownership plans and other reasonable fees, compensation,
benefits and indemnities paid or

 

61

 

entered into by the Company or its Restricted
Subsidiaries in the ordinary course of business to or with officers, directors
or employees of the Company and its Restricted Subsidiaries;

 

(3)                                  any
transaction between the Company and a Wholly Owned Subsidiary or between Wholly
Owned Subsidiaries;

 

(4)                                  the
issuance or sale of any Company Stock of the Company or any contribution to the
capital of the Company or any Restricted Subsidiary of the Company; and

 

(5)                                  the
performance of obligations of the Company or any of its Restricted Subsidiaries
under the terms of any agreement to which the Company or any of its Restricted
Subsidiaries is a party on the Issue Date and disclosed in the Offering
Circular or identified on Schedule I to this Indenture, as these agreements may
be amended, modified or supplemented from time to time; provided, however,
that any future amendment, modification or supplement entered into after the
Issue Date will be permitted to the extent that its terms are not more
disadvantageous to the Holders of the Securities than the terms of the
agreements in effect on the Issue Date.

 

Section 3.9                                      Change
of Control.

 

(a)                                  If
a Change of Control occurs, each Holder of Securities will have the right to
require the Company to repurchase all or any part (equal to $1,000 or an
integral multiple thereof) of such Holder’s Securities at a purchase price in
cash equal to 101% of the principal amount of the Securities plus
accrued and unpaid interest, if any, to the date of purchase (subject to the
right of Holders of record on the relevant record date to receive interest due
on the relevant interest payment date); provided, however, that notwithstanding
the foregoing, the Company shall not be obligated to repurchase the Securities
pursuant to this Section 3.9 if the Company has exercised its right to
redeem all of the Securities pursuant to the terms of Section 5.1.

 

(b)                                 Within
30 days following any Change of Control, the Company will mail a notice (the “Change of
Control Offer”) to each registered Holder with a copy to the Trustee
stating:

 

(1)                                   that
a Change of Control has occurred and that such Holder has the right to require
the Company to purchase such Holder’s Securities at a purchase price in cash
equal to 101% of the principal amount of such Securities plus accrued and unpaid
interest, if any, to the date of purchase (subject to the right of Holders of
record on a record date to receive interest on the relevant interest payment
date) (the “Change
of Control Payment”);

 

(2)                                   the
repurchase date (which shall be no earlier than 30 days nor later than 60 days
from the date such notice is mailed) (the “Change of Control Payment Date”); and

 

(3)                                   the
procedures determined by the Company, consistent with this Indenture, that a
Holder must follow in order to have its Securities repurchased.

 

(c)                                  On
the Change of Control Payment Date, the Company will, to the extent lawful:

 

62

 

(1)                                   accept
for payment all Securities or portions of Securities (in integral multiples of
$1,000) properly tendered pursuant to the Change of Control Offer;

 

(2)                                   deposit
with the Paying Agent an amount equal to the Change of Control Payment in
respect of all Securities or portions of Securities so tendered; and

 

(3)                                   deliver
or cause to be delivered to the Trustee the Securities so accepted together
with an Officers’ Certificate stating the aggregate principal amount of
Securities or portions of Securities being purchased by the Company.

 

(d)                                 The
Paying Agent will promptly deliver to each Holder of Securities so tendered the
Change of Control Payment for such Securities, and the Trustee will promptly
authenticate and mail (or cause to be transferred by book entry) to each Holder
a new Security equal in principal amount to any unpurchased portion of the
Securities surrendered, if any; provided that each such new Security will
be in a principal amount of $1,000 or an integral multiple of $1,000.

 

(e)                                  If
the Change of Control Payment Date is on or after an interest record date and
on or before the related interest payment date, any accrued and unpaid
interest, if any, will be paid to the Person in whose name a Security is registered
at the close of business on such record date, and no additional interest will
be payable to Holders who tender pursuant to the Change of Control Offer.

 

(f)                                    In
the event that any issue of Indebtedness issued under an indenture or other
agreement may be violated by the payment of the Change of Control Offer, the
Company covenants to effect repayment of such Indebtedness or obtain from the
holders of such Indebtedness consent and waivers of any event of default within
30 days following any Change of Control, it being a Default of this Section
3.9 if the Company fails to comply with such covenant.

 

(g)                                 The
Company will not be required to make a Change of Control Offer upon a Change of
Control if a third party makes the Change of Control Offer in the manner, at
the times and otherwise in compliance with the requirements set forth in this
Indenture applicable to a Change of Control Offer made by the Company and
purchases all Securities validly tendered and not withdrawn under such Change
of Control Offer.

 

(h)                                 The
Company will comply, to the extent applicable, with the requirements of
Section 14(e) of the Exchange Act and any other securities laws or
regulations in connection with the repurchase of Securities pursuant to this Section
3.9. To the extent that the provisions of any securities laws or
regulations conflict with provisions of this Indenture, the Company will comply
with the applicable securities laws and regulations and will not be deemed to
have breached its obligations described in this Indenture by virtue of the
conflict.

 

(i)                                     The
provisions of this Section 3.9 will apply whether or not any other
provisions of the Indenture are applicable.

 

Section 3.10                                Limitation
on Sale of Capital Stock of Restricted Subsidiaries.  The Company shall not, and shall not permit
any Restricted Subsidiary of the Company to, transfer, convey, sell, lease or
otherwise dispose of any Voting Stock of any Restricted Subsidiary or to

 

63

 

issue any of the Voting Stock
of a Restricted Subsidiary (other than, if necessary, shares of its Voting
Stock constituting directors’ qualifying shares) to any Person except:

 

(1)                                  to
the Company or a Wholly Owned Subsidiary; or

 

(2)                                  in
compliance with Section 3.7 and immediately after giving effect to such
issuance or sale, such Restricted Subsidiary would continue to be a Restricted
Subsidiary.

 

Notwithstanding the preceding paragraph, the Company
may sell all the Voting Stock of a Restricted Subsidiary as long as the Company
complies with the terms of Section 3.7.

 

Section 3.11                                Limitation
on Sale/Leaseback Transactions.  The
Company shall not, and shall not permit any of its Restricted Subsidiaries to,
enter into any Sale/Leaseback Transaction unless:

 

(1)                                  the
Company or such Restricted Subsidiary, as the case may be, receives
consideration at the time of such Sale/Leaseback Transaction at least equal to
the fair market value (as evidenced by a resolution of the Board of Directors
of the Company) of the property subject to such transaction;

 

(2)                                  the
Company or such Restricted Subsidiary could have Incurred Indebtedness in an
amount equal to the Attributable Indebtedness in respect of such Sale/Leaseback
Transaction pursuant to Section 3.3;

 

(3)                                  the
Company or such Restricted Subsidiary would be permitted to create a Lien on
the property subject to such Sale/Leaseback Transaction without securing the
Securities or any Subsidiary Guarantor of such Restricted Subsidiary as set
forth in Section 3.5; and

 

(4)                                  the
Sale/Leaseback Transaction is treated as an Asset Disposition and all of the
conditions of this Indenture described under Section 3.7 (including the
provisions concerning the application of Net Available Cash) are satisfied with
respect to such Sale/Leaseback Transaction, treating all of the consideration
received in such Sale/Leaseback Transaction as Net Available Cash for purposes
of such covenant.

 

Section 3.12                                Future
Subsidiary Guarantors.  After the
Issue Date, the Company will cause each Restricted Subsidiary created or
acquired by the Company or one or more of its Restricted Subsidiaries to
execute and deliver to the Trustee a supplement to this Indenture,
substantially in the form of Exhibit C hereto, providing for a Subsidiary
Guarantee; provided that with respect to any Restricted Subsidiary acquired
after the Issue Date but prior to the Escrow Release, the foregoing
requirements shall be deemed satisfied so long as they are complied with at or
prior to such Escrow Release.

 

Section 3.13                                Limitation
on Lines of Business.  The Company
will not, and will not permit any Restricted Subsidiary to, engage in any
business other than a Related Business.

 

Section 3.14                                Maintenance
of Office or Agency.  The Company
will maintain in The City of New York or Wilmington, Delaware, an office or agency
where notices and demands to or upon the Company in respect of the Securities
and this Indenture may be served. The

 

64

 

Company will give prompt
written notice to the Trustee of any change in the location of any such office
or agency. If at any time the Company shall fail to maintain any such required
office or agency or shall fail to furnish the Trustee with the address thereof,
such notices and demands may be made or served at the Trustee’s principal corporate
trust office (the “Corporate Trust Office”), and the Company
hereby appoints the Trustee as its agent to receive all such notices and
demands.

 

Section 3.15                                Corporate
Existence.  Subject to Article IV
and Section 10.2, the Company will do or cause to be done all things
necessary to preserve and keep in full force and effect its corporate existence
and that of each Subsidiary Guarantor and the corporate rights (charter and
statutory) licenses and franchises of the Company and each Subsidiary Guarantor;
provided,
however,
that the Company shall not be required to preserve any such existence (except
the Company), right, license or franchise if the Board of Directors of the
Company shall determine that the preservation thereof is no longer desirable in
the conduct of the business of the Company and each of its Restricted
Subsidiaries, taken as a whole, and that the loss thereof would not have a
material adverse effect on the ability of the Company to perform its
obligations under the Securities or this Indenture.

 

Section 3.16                                Payment
of Taxes and Other Claims.  The
Company will pay or discharge or cause to be paid or discharged, before the
same shall become delinquent, (i) all material taxes, assessments and
governmental charges levied or imposed upon the Company or any Subsidiary or
upon the income, profits or property of the Company or any Subsidiary and (ii)
all lawful claims for labor, materials and supplies, which, if unpaid, might by
law become a material liability or lien upon the property of the Company or any
Restricted Subsidiary, except for any Lien permitted to be incurred pursuant to
subsections (4) and (5) of the definition of “Permitted Liens”; provided,
however,
that the Company shall not be required to pay or discharge or cause to be paid or
discharged any such tax, assessment, charge or claim whose amount,
applicability or validity is being contested in good faith by appropriate
proceedings and for which appropriate reserves, if necessary (in the good faith
judgment of management of the Company), are being maintained in accordance with
GAAP or where the failure to pay or discharge the same would not have a
material adverse effect on the ability of the Company to perform its
obligations under the Securities or this Indenture.

 

Section 3.17                                Payments
for Consent.  Neither the Company
nor any of its Subsidiaries will, directly or indirectly, pay or cause to be
paid any consideration, whether by way of interest, fees or otherwise, to any
Holder of any Securities for or as an inducement to any consent, waiver or
amendment of any of the terms or provisions of this Indenture or the Securities
unless such consideration is offered to be paid or is paid to all Holders of
the Securities that consent, waive or agree to amend in the time frame set
forth in the solicitation documents relating to such consent, waiver or
amendment.

 

Section 3.18                                Compliance
Certificate.  The Company shall
deliver to the Trustee within 120 days after the end of each Fiscal Year of the
Company an Officers’ Certificate stating that in the course of the performance
by the signers of their duties as Officers of the Company they would normally
have knowledge of any Default or Event of Default and whether or not the
signers know of any Default or Event of Default that occurred during such
period. If they do, the certificate shall describe the Default or Event of
Default, its status and what action the Company

 

65

 

is taking or proposes to take
with respect thereto. The Company also shall comply with TIA § 314(a)(4).

 

Section 3.19                                Further
Instruments and Acts.  Upon the
reasonable request of the Trustee, the Company will execute and deliver such
further instruments and do such further acts as may be reasonably necessary or
proper to carry out more effectively the purpose of this Indenture.

 

Section 3.20                                Statement
by Officers as to Default.  The
Company shall deliver to the Trustee, as soon as possible and in any event
within thirty days after the Company becomes aware of the occurrence of any
Event of Default or Default, an Officers’ Certificate setting forth the details
of such Event of Default or Default and the action which the Company proposes
to take with respect thereto.

 

Section 3.21                                Amendments
of Material Agreements.  Prior to
the completion of a Successful Public Listing, the Company will not, and will
not permit any Restricted Subsidiary to, amend or modify (or agree to amend or
modify) any of the Material Agreements in a manner that would materially
adversely affect the rights of the Company and its Restricted Subsidiaries
thereunder, taken as a whole.  For
purposes of the foregoing, a waiver of compliance shall be deemed a
modification.

 

Section 3.22                                Insurance.  The Company will maintain, and will cause
its Subsidiaries to maintain, insurance coverage by financially sound and
reputable insurers in such forms and amounts and against such risks as are at
that time customary for corporations of established reputation engaged in the
same or a similar business and owning and operating similar properties
including general liability insurance and (but without duplication) protection
and indemnity insurance, hull and machinery insurance and oil pollution
insurance.

 

Section 3.23                                Suspended
Covenants.  During any period of
time that the Securities have an Investment Grade Rating from both the Rating
Agencies and no Default or Event of Default has occurred and is continuing
under this Indenture, the Company and its Restricted Subsidiaries will not be
subject to the provisions of this Indenture corresponding with Sections 3.3,
3.4, 3.6, 3.7, 3.8, 3.10, and 3.13; provided, however, that if the Company and
its Restricted Subsidiaries are not subject to the Suspended Covenants for any
period of time as a result of this Section 3.23 and, subsequently, either
of the Rating Agencies withdraws its ratings or downgrades the ratings assigned
to the Securities below the Investment Grade Ratings so that the Securities do
not have an Investment Grade Rating from both Rating Agencies, or a Default or
Event of Default (other than with respect to the Suspended Covenants) occurs
and is continuing, the Company and its Restricted Subsidiaries will thereafter
again be subject to the Suspended Covenants, subject to the terms, conditions
and obligations set forth in this Indenture.

 

ARTICLE
IV

Successor Company

 

Section 4.1                                      Merger
and Consolidation.  The Company will
not consolidate with or merge with or into, or sell, lease, convey, assign,
transfer or otherwise dispose of all or substantially all its assets to, any
Person, unless:

 

66

 

(1)                                  the
resulting, surviving or transferee Person (the “Successor Company”) will be
a corporation, partnership, trust or limited liability company organized and
existing under the laws of Bermuda, the United States of America, any State of
the United States or the District of Columbia or any other country recognized
by the United State of America and the Successor Company (if not the Company)
will expressly assume, by supplemental indenture, executed and delivered to the
Trustee, in form satisfactory to the Trustee, all the obligations of the
Company under the Securities and this Indenture;

 

(2)                                  immediately
after giving effect to such transaction (and treating any Indebtedness that
becomes an obligation of the Successor Company or any Subsidiary of the
Successor Company as a result of such transaction as having been Incurred by
the Successor Company or such Subsidiary at the time of such transaction), no
Default or Event of Default shall have occurred and be continuing;

 

(3)                                  except
in the case of a merger of the Company with or into a Restricted Subsidiary of
the Company, immediately after giving effect to such transaction, the Successor
Company would be able to Incur at least an additional $1.00 of Indebtedness
pursuant to the first paragraph of Section 3.3;

 

(4)                                  unless
the Company is the Successor Company, each Subsidiary Guarantor (unless it is
the other party to the transactions above, in which case clause (1) shall
apply) shall have by supplemental indenture confirmed that its Subsidiary
Guarantee shall apply to such Person’s obligations in respect of this Indenture
and the Securities and its obligations under the applicable Registration Rights
Agreement shall continue to be in effect;

 

(5)                                  if
the Successor Company is organized under the laws of a jurisdiction other than
Bermuda or the United States of America, any State thereof or the District of
Columbia, it delivers to the Trustee an Officers’ Certificate and Opinion of
Counsel experienced in such matters that, taken together, state that the
Holders of the Securities will not suffer any economic, legal or regulatory
disadvantage as a result of such transaction; and

 

(6)                                  the
Company shall have delivered to the Trustee an Officers’ Certificate and an
Opinion of Counsel, each stating that such consolidation, merger or transfer
and such supplemental indenture (if any) comply with this Indenture.

 

For purposes of this Section 4.1, the sale,
lease, conveyance, assignment, transfer, or other disposition of all or
substantially all of the assets of one or more Subsidiaries of the Company,
which properties and assets, if held by the Company instead of such
Subsidiaries, would constitute all or substantially all of the properties and
assets of the Company on a consolidated basis, shall be deemed to be the
disposition of all or substantially all of the assets of the Company.

 

The Successor Company will succeed to, and be
substituted for, and may exercise every right and power of, the Company under
this Indenture, but, in the case of a lease of all or substantially all its
assets, the Company will not be released from the obligation to pay the
principal of and interest on the Securities.

 

67

 

ARTICLE
V

Redemption of
Securities

 

Section 5.1                                      Optional
Redemption; Optional Tax Redemption.

 

(1)                                  Except
as set forth in this Section 5.1 and Section 5.9, the Securities
shall not be subject to redemption until December 15, 2008. On and after
December 15, 2008, the Company may redeem all or, from time to time, part of
the Securities upon not less than 30 nor more than 60 days’ notice, at the
following redemption prices (expressed as a percentage of principal amount) plus
accrued and unpaid interest on the Securities, if any, to the applicable date
of redemption (any such date, a “Redemption Date”) (subject to the right of
Holders on the relevant record date to receive interest due on the relevant
interest payment date), if redeemed during the 12-month period beginning on December
15 of the years indicated below:

 

	
  YEAR

  	
   

  	
  PERCENTAGE

  	
   

  
	
  2008

  	
   

  	
  104.250

  	
  %

  
	
  2009

  	
   

  	
  102.833

  	
  %

  
	
  2010

  	
   

  	
  101.417

  	
  %

  
	
  2011 and thereafter

  	
   

  	
  100.000

  	
  %

  

 

(2)                                  Prior
to December 15, 2006, the Company may on any one or more occasions redeem up to
35% of the original principal amount of the Securities (including any
Additional Securities) with the Net Cash Proceeds of one or more Public Equity
Offerings at a redemption price of 108.50% of the principal amount thereof, plus
accrued and unpaid interest, if any, to the redemption date (subject to the
right of Holders on the relevant record date to receive interest due on the
relevant interest payment date); provided that:

 

(a)                                  at
least 65% of the original principal amount of the Securities remains
outstanding after each such redemption; and

 

(b)                                 the
redemption occurs within 60 days after the closing of such Public Equity
Offering.

 

(3)                                  At
any time prior to December 15, 2008 the Securities may be redeemed in whole or
in part at the option of the Company upon (a) the occurrence of a Change of
Control or (b) if no more than 5.0% of the principal amount of the Securities
(including any Additional Securities) shall remain outstanding at any time, in
each case upon not less than 30 nor more than 60 days’ prior notice (but in no
event more than 90 days after the occurrence of such Change of Control event)
mailed by first-class mail to each Holder’s registered address, at a redemption
price equal to 100% of the principal amount thereof plus the Applicable Premium
as of, and accrued and unpaid interest, if any, to the Redemption Date (subject
to the right of Holders on the relevant record date to receive interest due on
the relevant interest payment date). 
The Company shall deliver to the Trustee, at least one Business Day
prior to the Redemption Date, an Officers’ Certificate setting forth the
redemption price and showing in reasonable detail the method of its
determination.

 

68

 

(4)                                  The
Payor may redeem all, but not less than all, of the Securities if as a result
of any change in or amendment to the laws, regulations or rulings of any
Relevant Tax Jurisdiction or any change in the official application or
interpretation of such laws, regulations or rulings, or any change in the
official application or interpretation of, or any execution of or amendment to,
any treaty or treaties affecting taxation to which such Relevant Tax
Jurisdiction is a party (a “Change in Tax Law”) the Payor is or would
be required on the next succeeding interest payment date to pay Additional
Amounts with respect to the Securities as set forth in Section 3.1, and
the payment of such Additional Amounts cannot be avoided by the use of any
reasonable measures available to the Payor; provided that the Board of
Directors of the Company determines in good faith that the aggregate amount of
such Additional Amounts would create additional annual costs in excess of 0.50%
of the aggregate principal amount of Securities then outstanding.  In the case of the Company, the Change in
Tax Law must become effective on or after the date of the Offering Circular. In
the case of a Subsidiary Guarantor, or a successor of either the Company or a
Subsidiary Guarantor, the Change in Tax Law must become effective after the
date that such entity first makes payment on the Securities. Further, the Payor
must deliver to the Trustee at least 30 days before the applicable Redemption
Date an Opinion of Counsel to the effect that the Payor has or will become
obligated to pay Additional Amounts as a result of such Change in Tax Law. The
Payor must also provide the Holders with notice of the intended redemption at
least 30 days and no more than 60 days before the applicable redemption date.
The redemption price will equal the principal amount of the Securities plus
accrued and unpaid interest thereon, if any, to the applicable Redemption Date
and Additional Amounts, if any, then due and which otherwise would be payable.

 

Section 5.2                                      Applicability
of Article.  Redemption of
Securities at the election of the Company or otherwise, as permitted or
required by any provision of this Indenture, shall be made in accordance with
such provision and this Article.

 

Section 5.3                                      Election
to Redeem; Notice to Trustee.  The
election of the Company to redeem any Securities pursuant to Section 5.1
shall be evidenced by a Board Resolution. In case of any redemption at the
election of the Company, the Company shall, not later than the earlier of the
date that is 45 days prior to the Redemption Date fixed by the Company or the date
on which notice is given to the Holders (except as provided in Section 5.5
or unless a shorter notice shall be satisfactory to the Trustee), notify the
Trustee of such Redemption Date and of the principal amount of Securities to be
redeemed and shall deliver to the Trustee such documentation and records as
shall enable the Trustee to select the Securities to be redeemed pursuant to Section
5.4.

 

Section 5.4                                      Selection
by Trustee of Securities to Be Redeemed. 
If less than all the Securities are to be redeemed at any time pursuant
to an optional redemption, the particular Securities to be redeemed shall be
selected not more than 60 days prior to the Redemption Date by the Trustee,
from the outstanding Securities not previously called for redemption, in compliance
with the requirements of the principal securities exchange, if any, on which
such Securities are listed, or, if such Securities are not so listed, on a pro
rata basis, by lot or by such other method as the Trustee shall deem fair and
appropriate (and in such manner as complies with applicable legal requirements)
and which may provide for the selection for redemption of portions of the
principal of the Securities; provided, however, that no such
partial redemption shall reduce the portion of the principal amount of a
Security not redeemed to less than $1,000.

 

69

 

The Trustee shall promptly notify the Company in
writing of the Securities selected for redemption and, in the case of any
Securities selected for partial redemption, the principal amount thereof to be
redeemed.

 

For all purposes of this Indenture, unless the context
otherwise requires, all provisions relating to redemption of Securities shall
relate, in the case of any Security redeemed or to be redeemed only in part, to
the portion of the principal amount of such Security which has been or is to be
redeemed.

 

Section 5.5                                      Notice
of Redemption.  Notice of redemption
shall be given in the manner provided for in Section 11.2 not less than
30 nor more than 60 days prior to the Redemption Date, to each Holder of
Securities to be redeemed. The Trustee shall give notice of redemption in the
Company’s name and at the Company’s expense; provided, however,
that the Company shall deliver to the Trustee, at least five Business Days
prior to the date of giving such notice, an Officers’ Certificate requesting
that the Trustee give such notice at the Company’s expense and setting forth
the information to be stated in such notice as provided in the following items.

 

All notices of redemption shall state:

 

(1)                                  the
Redemption Date,

 

(2)                                  the
redemption price (or, if the redemption price is not then determinable, the
basis for its determination) and the amount of accrued interest to the
Redemption Date payable as provided in Section 5.7, if any,

 

(3)                                  if
less than all outstanding Securities are to be redeemed, the identification of
the particular Securities (or portion thereof) to be redeemed, as well as the
aggregate principal amount of Securities to be redeemed and the aggregate
principal amount of Securities to be outstanding after such partial redemption,

 

(4)                                  in
case any Definitive Security is to be redeemed in part only, the notice which
relates to such Security shall state that on and after the Redemption Date, upon
surrender of such Security, the Holder will receive, without charge, a new
Security or Securities of authorized denominations for the principal amount
thereof remaining unredeemed,

 

(5)                                  that
on the Redemption Date the redemption price (and accrued interest, if any, to
the Redemption Date payable as provided in Section 5.7) will become due
and payable upon each such Security, or the portion thereof, to be redeemed,
and, unless the Company defaults in making the redemption payment, that
interest on Securities called for redemption (or the portion thereof) will
cease to accrue on and after said date,

 

(6)                                  the
place or places where Definitive Securities are to be surrendered for payment
of the redemption price and accrued interest, if any,

 

(7)                                  the
name and address of the Paying Agent,

 

70

 

(8)                                  that
Definitive Securities called for redemption must be surrendered to the Paying
Agent to collect the redemption price,

 

(9)                                  the
CUSIP and ISIN numbers, and that no representation is made as to the accuracy
or correctness of the CUSIP or ISIN numbers, if any, listed in such notice or
printed on the Securities, and

 

(10)                            the
provision of the Indenture pursuant to which the Securities are to be redeemed.

 

Section 5.6                                      Deposit
of Redemption Price.  Prior to 10:00
a.m. (New York City time) on any Redemption Date, the Company shall deposit
with the Trustee or with a Paying Agent (or, if the Company is acting as its
own Paying Agent, segregate and hold in trust as provided in Section 2.4)
an amount of money sufficient to pay the redemption price of, and accrued
interest on, all the Securities which are to be redeemed on that date.

 

Section 5.7                                      Securities
Payable on Redemption Date.  Notice
of redemption having been given as aforesaid, the Securities so to be redeemed
shall, on the Redemption Date, become due and payable at the redemption price
therein specified (together with accrued interest, if any, to the Redemption
Date), and from and after such date (unless the Company shall default in the
payment of the redemption price and accrued interest) such Securities shall
cease to bear interest. Upon surrender of any such Security for redemption in
accordance with said notice, such Security shall be paid by the Company at the
redemption price, together with accrued interest, if any, to the Redemption
Date, except that if a Redemption Date is on or after an interest record date
and on or before the related interest payment date, then accrued and unpaid
interest, if any, will be paid to the Person in whose name the Security is
registered at the close of business on such record date, and no additional
interest will be payable to Holders whose Securities will be subject to
redemption by the Company.

 

If any Security called for redemption shall not be so
paid upon surrender thereof for redemption, the principal (and premium, if any)
shall, until paid, bear interest from the Redemption Date at the rate borne by
the Securities.

 

Section 5.8                                      Securities
Redeemed in Part.  Any Definitive
Security which is to be redeemed only in part (pursuant to the provisions of
this Article) shall be surrendered at the office or agency of the Company
maintained for such purpose pursuant to Section 3.14 (with, if the
Company or the Trustee so requires, due endorsement by, or a written instrument
of transfer in form satisfactory to the Company and the Trustee duly executed
by, the Holder thereof or such Holder’s attorney duly authorized in writing),
and the Company shall execute, and the Trustee shall authenticate and make
available for delivery to the Holder of such Security at the expense of the
Company, a new Definitive Security or Securities, of any authorized
denomination as requested by such Holder, in an aggregate principal amount
equal to and in exchange for the unredeemed portion of the principal of the
Security so surrendered, provided, that each such new Security will be in a
principal amount of $1,000 or integral multiple thereof.

 

Section 5.9                                      Special
Mandatory Redemption.  Following the
occurrence of the Special Mandatory Redemption Trigger, the Company shall
redeem the Securities as a whole,

 

71

 

upon notice as provided in this
Section 5.9, at a redemption price in cash equal to 101% of the
aggregate principal amount thereof plus accrued and unpaid interest thereon
to the Redemption Date.  Notwithstanding
Section 5.5, the Company shall give notice of such mandatory redemption
within ten days of the occurrence of the Special Mandatory Redemption Trigger
by first-class mail mailed not less than 30 or more than 45 days prior to the
Redemption Date to each Holder of Securities at its registered address and to
the Escrow Agent, stating:

 

(1)                                  that
the Special Mandatory Redemption Trigger has occurred;

 

(2)                                  the
Redemption Date;

 

(3)                                  the
redemption price;

 

(4)                                  that
on the Redemption Date the redemption price will become due and payable upon
each Security to be redeemed and that interest thereon will cease to accrue on
and after such date; and

 

(5)                                  the
place or places where each Security is to be surrendered for payment of the
redemption price.

 

Upon receipt
of the Escrow Funds pursuant to Section 5(b) of the Escrow Agreement, the
Paying Agent or the Trustee (as the case may be) shall use all such Escrow
Funds along with additional funds provided by Frontline in accordance with the
Escrow Agreement to pay the redemption price and accrued interest due on the
Redemption Date, provided that the foregoing shall not relieve the Company of
its obligations with respect to such redemption.

 

ARTICLE
VI

Defaults and
Remedies

 

Section 6.1                                      Events
of Default.  Each of the following
is an “Event
of Default”:

 

(1)                                  default
in any payment of interest or additional interest (as required by a
Registration Rights Agreement) on any Security when due, continued for 30 days;

 

(2)                                  default
in the payment of principal of or premium, if any, on any Security when due at
its Stated Maturity, upon optional redemption, upon required redemption or
repurchase, upon declaration or otherwise;

 

(3)                                  failure
by the Company or any Subsidiary Guarantor to comply with its obligations under
Article IV or Section 10.2;

 

(4)                                  failure
by the Company to comply with any of its obligations under Sections 3.2
through 3.22 (inclusive) (in each case, other than a failure to purchase
Securities which will constitute an Event of Default under clause (2) above and
other than a failure to comply with Section 4.1 or Section 10.2
which is covered by clause (3)) for 30 days after notice from the Trustee or
the Holders of at least 25% in principal amount of the outstanding Securities;

 

72

 

(5)                                  failure
by the Company to comply with its other agreements contained in this Indenture
for 60 days after notice from the Trustee or the Holders of at least 25% in
principal amount of the outstanding Securities;

 

(6)                                  default
under any mortgage, indenture or instrument under which there may be issued or
by which there may be secured or evidenced any Indebtedness for money borrowed
by the Company or any of its Restricted Subsidiaries (or the payment of which
is Guaranteed by the Company or any of its Restricted Subsidiaries), other than
Indebtedness owed to the Company or a Restricted Subsidiary, whether such
Indebtedness or guarantee now exists, or is created after the Issue Date, which
default:

 

(a)                                  is
caused by a failure to pay principal of, or interest or premium, if any, on the
stated maturity of such Indebtedness (“payment default”); or

 

(b)                                 results
in the acceleration of such Indebtedness prior to its maturity;

 

and, in each case, the principal amount of
any such Indebtedness, together with the principal amount of any other such
Indebtedness under which there has been a payment default or the maturity of
which has been so accelerated, aggregates $15.0 million or more;

 

(7)                                  (a)
the Company or any Significant Subsidiary or a group of Restricted Subsidiaries
that, taken together (as of the latest audited consolidated financial
statements for the Company and its Restricted Subsidiaries), would constitute a
Significant Subsidiary pursuant to or within the meaning of any Bankruptcy Law:

 

(i)                                     commences
a voluntary case or proceeding;

 

(ii)                                  consents
to the entry of judgment, decree or order for relief against it in an
involuntary case or proceeding;

 

(iii)                               consents
to the appointment of a Custodian of it or for any substantial part of its
property;

 

(iv)                              makes
a general assignment for the benefit of its creditors;

 

(v)                                 consents
to or acquiesces in the institution of a bankruptcy or an insolvency proceeding
against it; or

 

(vi)                              takes
any corporate action to authorize or effect any of the foregoing; or

 

(b)                                 a
court of competent jurisdiction enters an order or decree under any Bankruptcy
Law that:

 

(i)                                     is
for relief against the Company or any Significant Subsidiary or a group of
Restricted Subsidiaries that, taken together (as of the latest audited

 

73

 

consolidated financial statements for the
Company and its Restricted Subsidiaries), would constitute a Significant
Subsidiary in an involuntary case;

 

(ii)                                  appoints
a Custodian of the Company or any Significant Subsidiary or a group of
Restricted Subsidiaries that, taken together (as of the latest audited
consolidated financial statements for the Company and its Restricted
Subsidiaries), would constitute a Significant Subsidiary or for any substantial
part of its property; or

 

(iii)                               orders
the winding up or liquidation of the Company or any Significant Subsidiary or a
group of Restricted Subsidiaries that, taken together (as of the latest audited
consolidated financial statements for the Company and its Restricted
Subsidiaries) would constitute a Significant Subsidiary;

 

(8)                                  failure
by the Company or any Restricted Subsidiary to pay final judgments aggregating
in excess of $15.0 million (net of any amounts that a reputable and
creditworthy insurance company has acknowledged liability for in writing),
which judgments are not paid, discharged or stayed for a period of 60 days;

 

(9)                                  any
Subsidiary Guarantee ceases to be in full force and effect (except as
contemplated by the terms of this Indenture) or is declared null and void in a
judicial proceeding or any Subsidiary Guarantor denies or disaffirms its
obligations under this Indenture or its Subsidiary Guarantee; or

 

(10)                            prior
to the completion of a Successful Public Listing, the failure by Charterer,
Frontline or Frontline Management to comply for 30 days after notice from
the Trustee or the Holders of at least 25% in principal amount of the
outstanding Securities with any of its obligations under the Material
Agreements.

 

Section 6.2                                      Acceleration.  If an Event of Default (other than an Event
of Default described in clause (7) of Section 6.1) occurs and is
continuing, the Trustee by notice to the Company, or the Holders of at least
25% in principal amount of the outstanding Securities by notice to the Company
and the Trustee, may, and the Trustee at the request of such Holders shall,
declare the principal of, premium, if any, and accrued and unpaid interest, if
any, on all the Securities to be due and payable. Upon such a declaration, such
principal, premium and accrued and unpaid interest will be due and payable
immediately. In the event of a declaration of acceleration of the Securities
because an Event of Default described in clause (6) of Section 6.1 has
occurred and is continuing, the declaration of acceleration of the Securities
shall be automatically annulled if the event of default or payment default
triggering such Event of Default pursuant to clause (6) of Section 6.1
shall be remedied or cured by the Company or a Restricted Subsidiary of the
Company or waived by the holders of the relevant Indebtedness within 20 days
after the declaration of acceleration with respect thereto and if (1) the
annulment of the acceleration of the Securities would not conflict with any
judgment or decree of a court of competent jurisdiction and (2) all existing
Events of Default, except nonpayment of principal, premium or interest on the
Securities that became due solely because of the acceleration of the
Securities, have been cured or waived. If an Event of Default described in
clause (7) of Section 6.1 above occurs and is continuing, the principal
of, premium, if any, and accrued and unpaid

 

74

 

interest on all the Securities
will become and be immediately due and payable without any declaration or other
act on the part of the Trustee or any Holders.

 

Section 6.3                                      Other
Remedies.  If an Event of Default
occurs and is continuing, the Trustee may pursue any available remedy to
collect the payment of principal of (or premium, if any) or interest on the
Securities or to enforce the performance of any provision of the Securities or
this Indenture.

 

The Trustee may maintain a proceeding even if it does
not possess any of the Securities or does not produce any of them in the
proceeding. A delay or omission by the Trustee or any Securityholder in
exercising any right or remedy accruing upon an Event of Default shall not
impair the right or remedy or constitute a waiver of or acquiescence in the
Event of Default. No remedy is exclusive of any other remedy. All available
remedies are cumulative.

 

Section 6.4                                      Waiver
of Past Defaults.  The Holders of a
majority in principal amount of the outstanding Securities by notice to the
Trustee may (a) waive, by their consent (including, without limitation consents
obtained in connection with a purchase of, or tender offer or exchange offer
for, Securities), an existing Default or Event of Default and its consequences
except (i) a Default or Event of Default in the payment of the principal of, or
premium, if any, or interest on a Security or (ii) a Default or Event of
Default in respect of a provision that under Section 9.2 cannot be
amended without the consent of each Securityholder affected and (b) rescind any
such acceleration with respect to the Securities and its consequences if (1)
rescission would not conflict with any judgment or decree of a court of
competent jurisdiction and (2) all existing Events of Default, other than the
nonpayment of the principal of, premium, if any, and interest on the Securities
that have become due solely by such declaration of acceleration, have been
cured or waived. When a Default or Event of Default is waived, it is deemed cured,
but no such waiver shall extend to any subsequent or other Default or Event of
Default or impair any consequent right.

 

Section 6.5                                      Control
by Majority.  The Holders of a
majority in principal amount of the outstanding Securities may direct the time,
method and place of conducting any proceeding for any remedy available to the
Trustee or of exercising any trust or power conferred on the Trustee. However,
the Trustee may refuse to follow any direction that conflicts with law or this
Indenture or, subject to Sections 7.1 and 7.2, that the Trustee
determines is unduly prejudicial to the rights of other Securityholders or
would involve the Trustee in personal liability; provided, however,
that the Trustee may take any other action deemed proper by the Trustee that is
not inconsistent with such direction. Prior to taking any action hereunder, the
Trustee shall be entitled to indemnification satisfactory to it in its sole
discretion against all losses and expenses caused by taking or not taking such
action.

 

Section 6.6                                      Limitation
on Suits.  Subject to Section 6.7,
a Securityholder may not pursue any remedy with respect to this Indenture or
the Securities unless:

 

(1)                                  such
Holder has previously given to the Trustee written notice stating that an Event
of Default is continuing;

 

75

 

(2)                                  Holders
of at least 25% in principal amount of the outstanding Securities make
requested in writing that the Trustee pursue the remedy;

 

(3)                                  such
Holders have offered to the Trustee reasonable security or indemnity against
any loss, liability or expense;

 

(4)                                  the
Trustee has not complied with such request within 60 days after receipt of the
request and the offer of security or indemnity; and

 

(5)                                  the
Holders of a majority in principal amount of the outstanding Securities have
not given the Trustee a direction that, in the opinion of the Trustee, is
inconsistent with such request within such 60-day period.

 

A Securityholder may not use this Indenture to
prejudice the rights of another Securityholder or to obtain a preference or
priority over another Securityholder.

 

Section 6.7                                      Rights
of Holders to Receive Payment. 
Notwithstanding any other provision of this Indenture (including,
without limitation, Section 6.6), the right of any Holder to
receive payment of principal of, premium (if any) or interest on the Securities
held by such Holder, on or after the respective due dates expressed in the
Securities, or to bring suit for the enforcement of any such payment on or
after such respective dates, shall not be impaired or affected without the
consent of such Holder.

 

Section 6.8                                      Collection
Suit by Trustee.  If an Event of
Default specified in clause (1) or (2) of Section 6.1 occurs and is
continuing, the Trustee may recover judgment in its own name and as Trustee of
an express trust against the Company for the whole amount then due and owing
(together with interest on any unpaid interest to the extent lawful) and the
amounts provided for in Section 7.7.

 

Section 6.9                                      Trustee
May File Proofs of Claim.  The
Trustee may file such proofs of claim and other papers or documents as may be
necessary or advisable in order to have the claims of the Trustee and the
Securityholders allowed in any judicial proceedings relative to the Company,
its Subsidiaries or its or their respective creditors or properties and, unless
prohibited by law or applicable regulations, may vote on behalf of the Holders
in any election of a trustee in bankruptcy or other Person performing similar
functions, and any Custodian in any such judicial proceeding is hereby
authorized by each Holder to make payments to the Trustee and, in the event
that the Trustee shall consent to the making of such payments directly to the
Holders, to pay to the Trustee any amount due it for the reasonable
compensation, expenses, disbursements and advances of the Trustee, its agents
and its counsel, and any other amounts due the Trustee under Section 7.7.

 

Section 6.10                                Priorities.  If the Trustee collects any money or
property pursuant to this Article VI, it shall pay out the money or property in
the following order:

 

FIRST: to the Trustee for amounts due under Section
7.7;

 

76

 

SECOND: to Securityholders for amounts due and unpaid
on the Securities for principal, premium, if any, and interest, ratably,
without preference or priority of any kind, according to the amounts due and
payable on the Securities for principal and interest, respectively; and

 

THIRD: to the Company.

 

The Trustee may fix a record date and payment date for
any payment to Securityholders pursuant to this Section. At least 15 days
before such record date, the Company shall mail to each Securityholder and the
Trustee a notice that states the record date, the payment date and amount to be
paid.

 

Section 6.11                                Undertaking
for Costs.  In any suit for the
enforcement of any right or remedy under this Indenture or in any suit against
the Trustee for any action taken or omitted by it as Trustee, a court in its
discretion may require the filing by any party litigant in the suit of an
undertaking to pay the costs of the suit, and the court in its discretion may
assess reasonable costs, including reasonable attorneys’ fees, against any
party litigant in the suit, having due regard to the merits and good faith of
the claims or defenses made by the party litigant. This Section does not apply
to a suit by the Trustee, a suit by the Company, a suit by a Holder pursuant to
Section 6.7 or a suit by Holders of more than 10% in outstanding principal
amount of the Securities.

 

Section 6.12                                Additional
Payments.  In the case of any Event
of Default occurring by reason of any willful action (or inaction) taken (or
not taken) by or on behalf of the Company with the intention of avoiding
payment of the premium that the Company would have had to pay if the Company
then had elected to redeem the Securities pursuant to the optional redemption
provisions of this Indenture or was required to repurchase the Securities, an
equivalent premium shall also become and be immediately due and payable to the
extent permitted by law upon the acceleration of the Securities.

 

ARTICLE
VII

Trustee

 

Section 7.1                                      Duties
of Trustee.   (a)  If an Event of Default has occurred and is
continuing, the Trustee shall exercise the rights and powers vested in it by
this Indenture and use the same degree of care and skill in their exercise as a
prudent person would exercise or use under the circumstances in the conduct of
such Person’s own affairs; provided that if an Event of Default
occurs and is continuing, the Trustee will be under no obligation to exercise
the rights or powers under this Indenture at the request or direction of any of
the holders unless such holders have offered to the Trustee reasonable
indemnity or security against loss, liability or expense.

 

(b)                                 Except during the
continuance of an Event of Default:

 

(1)                                  the
Trustee undertakes to perform such duties and only such duties as are
specifically set forth in this Indenture and no implied covenants or
obligations shall be read into this Indenture against the Trustee; and

 

(2)                                  in
the absence of bad faith on its part, the Trustee may conclusively rely, as to
the truth of the statements and the correctness of the opinions expressed
therein,

 

77

 

upon
certificates, opinions or orders furnished to the Trustee and conforming to the
requirements of this Indenture. However, in the case of any such certificates
or opinions which by any provisions hereof are specifically required to be
furnished to the Trustee, the Trustee shall examine such certificates and
opinions to determine whether or not they conform on their face to the
requirements of this Indenture (but need not confirm or investigate the
accuracy of mathematical calculations or other facts stated therein).

 

(c)                                  The Trustee may not
be relieved from liability for its own negligent action, its own negligent
failure to act or its own willful misconduct, except that:

 

(1)                                   this
paragraph does not limit the effect of paragraph (b) of this Section;

 

(2)                                   the
Trustee shall not be liable for any error of judgment made in good faith by a
Trust Officer unless it is proved that the Trustee was negligent in
ascertaining the pertinent facts; and

 

(3)                                   the
Trustee shall not be liable with respect to any action it takes or omits to
take in good faith in accordance with a direction received by it pursuant to Section
6.5.

 

(d)                                 Every provision of
this Indenture that in any way relates to the Trustee is subject to paragraphs
(a), (b) and (c) of this Section.

 

(e)                                  The Trustee shall not
be liable for interest on any money received by it except as the Trustee may
agree in writing with the Company.

 

(f)                                    Money held in trust
by the Trustee need not be segregated from other funds except to the extent
required by law.

 

(g)                                 No provision of this
Indenture shall require the Trustee to expend or risk its own funds or
otherwise incur financial liability in the performance of any of its duties
hereunder or in the exercise of any of its rights or powers, if it shall have
reasonable grounds to believe that repayment of such funds or adequate
indemnity against such risk or liability is not reasonably assured to it.

 

(h)                                 Every provision of
this Indenture relating to the conduct or affecting the liability of or
affording protection to the Trustee shall be subject to the provisions of this
Section and to the provisions of the TIA.

 

(i)                                     Unless otherwise
specifically provided in this Indenture, any demand, request, direction or
notice from the Company shall be sufficient if signed by an Officer of the
Company.

 

(j)                                     The Trustee shall
be under no obligation to exercise any of the rights or powers vested in it by
this Indenture at the request or direction of any of the Holders unless such
Holders shall have offered to the Trustee reasonable security or indemnity
satisfactory to it against the costs, expenses (including reasonable attorneys’
fees and expenses) and liabilities that might be incurred by it in compliance
with such request or direction.

 

Section 7.2                                      Rights
of Trustee.  Subject to Section 7.1:

 

78

 

(a)                                  The
Trustee may conclusively rely on any document (whether in its original or
facsimile form) reasonably believed by it to be genuine and to have been signed
or presented by the proper person. The Trustee need not investigate any fact or
matter stated in the document.

 

(b)                                 Before
the Trustee acts or refrains from acting, it may require an Officers’
Certificate and/or an Opinion of Counsel. The Trustee shall not be liable for
any action it takes or omits to take in good faith in reliance on an Officers’
Certificate or Opinion of Counsel.

 

(c)                                  The
Trustee may act through its attorneys and agents and shall not be responsible
for the misconduct or negligence of any agent appointed with due care.

 

(d)                                 The
Trustee shall not be liable for any action it takes or omits to take in good
faith which it believes to be authorized or within its rights or powers, unless
the Trustee’s conduct constitutes willful misconduct or negligence.

 

(e)                                  The
Trustee may consult with counsel of its selection, and the advice or opinion of
counsel with respect to legal matters relating to this Indenture and the
Securities shall be full and complete authorization and protection from
liability in respect of any action taken, omitted or suffered by it hereunder
in good faith and in accordance with the advice or opinion of such counsel.

 

Section 7.3                                      Individual
Rights of Trustee.  The Trustee in
its individual or any other capacity may become the owner or pledgee of
Securities and may otherwise deal with the Company or its Affiliates with the
same rights it would have if it were not Trustee. Any Paying Agent, Registrar,
co-registrar or co-paying agent may do the same with like rights. However, the
Trustee must comply with Sections 7.10 and 7.11.

 

Section 7.4                                      Trustee’s
Disclaimer.  The Trustee shall not
be responsible for and makes no representation as to the validity or adequacy
of this Indenture or the Securities, it shall not be accountable for the
Company’s use of the proceeds from the Securities, and it shall not be
responsible for any statement of the Company in this Indenture or in any
document issued in connection with the sale of the Securities or in the
Securities other than the Trustee’s certificate of authentication.

 

Section 7.5                                      Notice
of Defaults.  If a Default or Event
of Default occurs and is continuing and if a Trust Officer has actual knowledge
thereof, the Trustee shall mail to each Securityholder notice of the Default or
Event of Default within 30 days after it occurs. Except in the case of a
Default or Event of Default in payment of principal of, premium (if any), or
interest on any Security (including payments pursuant to the optional
redemption or required repurchase provisions of such Security, if any), the
Trustee may withhold the notice if and so long a committee of its Trust
Officers in good faith determines that withholding the notice is in the
interests of Securityholders.

 

Section 7.6                                      Reports
by Trustee to Holders.  As promptly
as practicable after each May 15 beginning with the May 15 following the date
of this Indenture, and in any event prior to July 15 in each year, the Trustee
shall mail to each Securityholder a brief report dated as of such May 15 that
complies with TIA § 313(a). The Trustee also shall comply with TIA § 313(b).
The Trustee shall also transmit by mail all reports required by TIA § 313(c).

 

79

 

A copy of each report at the time of its mailing to
Securityholders shall be filed with each stock exchange (if any) on which the
Securities are listed. The Company agrees to notify promptly the Trustee
whenever the Securities become listed on any stock exchange and of any
delisting thereof.

 

Section 7.7                                      Compensation
and Indemnity.  The Company shall
pay to the Trustee from time to time reasonable compensation for its acceptance
of this Indenture and services hereunder as the Company and the Trustee shall
from time to time agree in writing. The Trustee’s compensation shall not be
limited by any law on compensation of a trustee of an express trust. The
Company shall reimburse the Trustee upon request for all reasonable
out-of-pocket expenses incurred or made by it, including costs of collection,
costs of preparing and reviewing reports, certificates and other documents,
costs of preparation and mailing of notices to Securityholders, in addition to
the compensation for its services. Such expenses shall include the reasonable
compensation and expenses, disbursements and advances of the Trustee’s agents,
counsel, accountants and experts. The Company shall indemnify the Trustee
against any and all loss, liability, damages, claims or expense (including
reasonable attorneys’ fees and expenses) incurred by it without negligence or
willful misconduct on its part in connection with the administration of this
trust and the performance of its duties hereunder, including the costs and
expenses of enforcing this Indenture (including this Section 7.7)
and of defending itself against any claims (whether asserted by any Securityholder,
the Company or otherwise). The Trustee shall notify the Company promptly of any
claim for which it may seek indemnity. Failure by the Trustee to so notify the
Company shall not relieve the Company of its obligations hereunder. The Company
shall defend the claim and the Trustee shall provide reasonable cooperation at
the Company’s expense in the defense. The Trustee may have separate counsel and
the Company shall pay the fees and expenses of such counsel provided that the
Company shall not be required to pay such fees and expenses if it assumes the
Trustee’s defense, and, in the reasonable judgment of outside counsel to the
Trustee, there is no conflict of interest between the Company and the Trustee
in connection with such defense. The Company shall not be under any obligation
to pay for any written settlement without its consent, which consent shall not
be unreasonably delayed, conditioned or withheld. The Company need not
reimburse any expense or indemnify against any loss, liability or expense incurred
by the Trustee through the Trustee’s own willful misconduct or negligence.

 

To secure the Company’s payment obligations in this
Section, the Trustee shall have a lien prior to the Securities on all money or
property held or collected by the Trustee other than money or property held in
trust to pay principal of and interest on particular Securities.

 

The Company’s payment obligations pursuant to this
Section shall survive the discharge of this Indenture. When the Trustee incurs
expenses after the occurrence of a Default specified in clause (7) of Section
6.1 with respect to the Company, the expenses are intended to constitute
expenses of administration under any Bankruptcy Law.

 

Section 7.8                                      Replacement
of Trustee.  The Trustee may resign
at any time by so notifying the Company. The Holders of a majority in principal
amount of the Securities may remove the Trustee by so notifying the Trustee and
may appoint a successor Trustee. The Company shall remove the Trustee if:

 

80

 

(1)                                  the
Trustee fails to comply with Section 7.10;

 

(2)                                  the
Trustee is adjudged bankrupt or insolvent;

 

(3)                                  a
receiver or other public officer takes charge of the Trustee or its property;
or

 

(4)                                  the
Trustee otherwise becomes incapable of acting.

 

If the Trustee resigns or is removed by the Company or
by the Holders of a majority in principal amount of the Securities and such
Holders do not reasonably promptly appoint a successor Trustee, or if a vacancy
exists in the office of the Trustee for any reason (the Trustee in such event
being referred to herein as the retiring Trustee), the Company shall promptly
appoint a successor Trustee.

 

A successor Trustee shall deliver a written acceptance
of its appointment to the retiring Trustee and to the Company. Thereupon the
resignation or removal of the retiring Trustee shall become effective, and the
successor Trustee shall have all the rights, powers and duties of the Trustee
under this Indenture.  The successor
Trustee shall mail a notice of its succession to Securityholders. The retiring
Trustee shall promptly transfer all property held by it as Trustee to the
successor Trustee, subject to the lien provided for in Section 7.7.

 

If a successor Trustee does not take office within 60
days after the retiring Trustee resigns or is removed, the retiring Trustee or
the Holders of at least 10% in principal amount of the Securities may petition,
at the Company’s expense, any court of competent jurisdiction for the
appointment of a successor Trustee.

 

If the Trustee fails to comply with Section 7.10,
unless the Trustee’s duty to resign is stayed as provided in Section 310(b) of
the TIA, any Securityholder who has been a bona fide Holder of a Security for
at least six months may petition any court of competent jurisdiction for the
removal of the Trustee and the appointment of a successor Trustee.

 

Notwithstanding the replacement of the Trustee
pursuant to this Section, the Company’s obligations under Section 7.7
shall continue for the benefit of the retiring Trustee.

 

Section 7.9                                      Successor
Trustee by Merger.  If the Trustee
consolidates with, merges or converts into, or transfers all or substantially
all its corporate trust business or assets to, another corporation or banking
association, the resulting, surviving or transferee Person without any further
act shall be the successor Trustee.

 

In case at the time such successor or successors by
merger, conversion or consolidation to the Trustee shall succeed to the trusts
created by this Indenture, any of the Securities shall have been authenticated
but not delivered, any such successor to the Trustee may adopt the certificate
of authentication of any predecessor trustee, and deliver such Securities so
authenticated; and in case at that time any of the Securities shall not have
been authenticated, any successor to the Trustee may authenticate such
Securities either in the name of any predecessor hereunder or in the name of
the successor to the Trustee; and in all such cases such certificates shall
have the full force which it is anywhere in the Securities or in this Indenture
provided that the certificate of the Trustee shall have.

 

81

 

Section 7.10                                Eligibility;
Disqualification.  The Trustee shall
at all times satisfy the requirements of TIA § 310(a). The Trustee shall have a
combined capital and surplus of at least $100.0 million as set forth in its
most recent published annual report of condition. The Trustee shall comply with
TIA § 310(b); provided, however, that there shall be excluded from the
operation of TIA § 310(b)(1) any indenture or indentures under which other
securities or certificates of interest or participation in other securities of
the Company are outstanding if the requirements for such exclusion set forth in
TIA § 310(b)(1) are met.

 

Section 7.11                                Preferential
Collection of Claims Against Company.  The Trustee
shall comply with TIA § 311(a), excluding any creditor relationship listed in
TIA § 311(b). A Trustee who has resigned or been removed shall be subject to
TIA § 311(a) to the extent indicated.

 

ARTICLE VIII

Discharge
of Indenture; Defeasance

 

Section 8.1                                      Discharge
of Liability on Securities; Defeasance.  (a) Subject to
Section 8.1(c), when (i)(x) the Company delivers to the Trustee all
outstanding Securities (other than Securities replaced pursuant to Section
2.9) for cancellation or (y) all outstanding Securities not theretofore
delivered to the Trustee for cancellation have become due and payable, whether
at Stated Maturity or upon redemption or will become due and payable within one
year or are to be called for redemption within one year under arrangements
satisfactory to the Trustee for the giving of notice of redemption pursuant to
Article V hereof and the Company or any Subsidiary Guarantor irrevocably
deposits or causes to be deposited with the Trustee as trust funds in trust
solely for the benefit of the Holders money in U.S. dollars, U.S. Government
Securities, or a combination thereof, in such amounts as will be sufficient
without consideration of any reinvestment of interest to pay and discharge the
entire indebtedness on such Securities not theretofore delivered to the Trustee
for cancellation for principal, premium, if any, and accrued interest to the
date of Stated Maturity or redemption; (ii) no Default or Event of Default
shall have occurred and be continuing on the date of such deposit or shall
occur as a result of such deposit and such deposit will not result in a breach
or violation of, or constitute a default under, any other material instrument
to which the Company or any Subsidiary Guarantor is a party or by which the
Company or any Guarantor is bound; (iii) the Company or any Subsidiary
Guarantor has paid or caused to be paid all sums payable under this Indenture
and the Securities; and (iv) the Company has delivered irrevocable instructions
to the Trustee under this Indenture to apply the deposited money toward the
payment of such Securities at Stated Maturity or the Redemption Date, as the
case may be, then the Trustee shall acknowledge satisfaction and discharge of
this Indenture on demand of the Company (accompanied by an Officers’
Certificate and an Opinion of Counsel stating that all conditions precedent
specified herein relating to the satisfaction and discharge of this Indenture
have been complied with) and at the cost and expense of the Company.

 

(b)                                 Subject to Sections
8.1(c) and 8.2, the Company at any time may terminate (i) all its
obligations under the Securities and this Indenture (“legal defeasance option”),
and after giving effect to such legal defeasance, any omission to comply with
such obligations shall no longer constitute a Default or Event of Default or
(ii) its obligations under Sections 3.2 (other than paragraph (4)
thereof), 3.3, 3.4, 3.5, 3.6, 3.7, 3.8, 3.9, 3.10, 3.11, 3.12, 3.13, 3.21,
3.22 and clause (3) of 4.1 and the Company may omit to comply with and
shall have no liability in respect

 

82

 

of any term, condition or limitation set forth in any such covenant or
clause, whether directly or indirectly, by reason of any reference elsewhere
herein to any such covenant or clause or by reason of any reference in any such
covenant or clause to any other provision herein or in any other document and
such omission to comply with such covenants shall no longer constitute a
Default or an Event of Default under Sections 6.1(3) and 6.1(4) and the
operation of Sections 6.1(6), 6.1(7) (but only with respect to a
Significant Subsidiary or group of Restricted Subsidiaries that would
constitute a Significant Subsidiary), 6.1(8), 6.1(9) and 6.1(10), and
the events specified in such Sections shall no longer constitute an Event of
Default (clause (ii) being referred to as the “covenant defeasance option”),
but except as specified above, the remainder of this Indenture and the
Securities shall be unaffected thereby. The Company may exercise its legal
defeasance option notwithstanding its prior exercise of its covenant defeasance
option.

 

If the Company exercises its legal defeasance option,
payment of the Securities may not be accelerated because of an Event of
Default.  If the Company exercises its
covenant defeasance option, payment of the Securities may not be accelerated
because of an Event of Default specified in Section 6.1(4) (as such Section
relates to Sections 3.2 (other than paragraph (4) thereof), 3.3, 3.4,
3.5, 3.6, 3.7, 3.8, 3.9, 3.10, 3.11, 3.12, 3.13, 3.21 and 3.22), 6.1(5),
6.1(6), 6.1(7) (but only with respect to a Significant Subsidiary or group
of Restricted Subsidiaries that would constitute a Significant Subsidiary), 6.1(8),  6.1(9) or 6.1(10) or because of the
failure of the Company to comply with clause (3) of Section 4.1.

 

Upon satisfaction of the conditions set forth herein
and upon request of the Company, the Trustee shall acknowledge in writing the
discharge of those obligations that the Company terminates.

 

If the Company exercises either its legal or covenant
defeasance option, the Subsidiary Guarantees in effect at such time will
terminate.

 

(c)                                  Notwithstanding the
provisions of Sections 8.1(a) and(b), the Company’s obligations in Sections
2.2, 2.3, 2.4, 2.5, 2.6, 2.9, 2.10, 2.11, 3.1, 3.2(4), 3.14, 3.15, 3.16, 3.17,
3.18, 3.19, 3.20, 6.7, 7.7, 7.8 and in this Article 8 shall survive until
the Securities have been paid in full. Thereafter, the Company’s obligations in
Sections 7.7, 8.4 and 8.5 shall survive.

 

Section 8.2                                      Conditions
to Defeasance.  The Company may
exercise its legal defeasance option or its covenant defeasance option only if:

 

(1)                                  the
Company irrevocably deposits in trust with the Trustee for the benefit of the
Holders money in U.S. dollars or U.S. Government Securities or a combination
thereof for the payment of principal, premium, if any, and interest on the
Securities to maturity or redemption, as the case may be;

 

(2)                                  the
Company delivers to the Trustee a certificate from a nationally recognized firm
of independent accountants expressing their opinion that the payments of
principal and interest when due and without reinvestment on the deposited U.S.
Government Securities plus any deposited money without
investment will provide cash at such times and in such amounts as will be
sufficient to pay principal and interest when due on all the Securities to
maturity;

 

83

 

(3)                                  no
Default or Event of Default shall have occurred and be continuing on the date
of such deposit or, with respect to certain bankruptcy or insolvency Events of
Default, on the 91st day after such date of deposit;

 

(4)                                  such
legal defeasance or covenant defeasance shall not result in a breach or
violation of, or constitute a Default under, this Indenture or any other
material agreement or instrument to which the Company or any of its
Subsidiaries is a party or by which the Company or any of its Subsidiaries is
bound;

 

(5)                                  the
Company shall have delivered to the Trustee an Opinion of Counsel (subject to
customary assumptions and exclusions) to the effect that (A) the Securities and
(B) assuming no intervening bankruptcy of the Company between the date of
deposit and the 91st day following the deposit and that no Holder of the
Securities is an insider of the Company, after the 91st day following the
deposit, the trust funds will not be subject to the effect of any applicable
bankruptcy, insolvency, reorganization or similar laws affecting creditors’
right generally;

 

(6)                                  the
Company delivers to the Trustee an Opinion of Counsel (subject to customary
assumptions and exclusions) to the effect that the trust resulting from the
deposit does not constitute, or is qualified as, a regulated investment company
under the Investment Company Act of 1940;

 

(7)                                  in
the case of the legal defeasance option, the Company shall have delivered to
the Trustee an Opinion of Counsel (subject to customary assumptions and
exclusions) in the United States stating that (i) the Company has received
from, or there has been published by, the Internal Revenue Service a ruling, or
(ii) since the date of this Indenture there has been a change in the applicable
federal income tax law, in either case to the effect that, and based thereon
such Opinion of Counsel shall confirm that, the Securityholders will not
recognize income, gain or loss for federal income tax purposes as a result of
such defeasance and will be subject to federal income tax on the same amounts,
in the same manner and at the same times as would have been the case if such
legal defeasance had not occurred;

 

(8)                                  in
the case of the covenant defeasance option, the Company shall have delivered to
the Trustee an Opinion of Counsel (subject to customary assumptions and
exclusions) in the United States to the effect that the Securityholders will
not recognize income, gain or loss for federal income tax purposes as a result
of such deposit and covenant defeasance and will be subject to federal income
tax on the same amount, in the same manner and at the same times as would have
been the case if such deposit and covenant defeasance had not occurred; and

 

(9)                                  the
Company delivers to the Trustee an Officers’ Certificate and an Opinion of
Counsel, each stating that all conditions precedent to the defeasance and
discharge of the Securities and this Indenture as contemplated by this Article
VIII have been complied with.

 

Section 8.3                                      Application
of Trust Money.  The Trustee shall hold in trust money or
U.S. Government Securities deposited with it pursuant to this Article VIII. It
shall apply the deposited money and the money from U.S. Government Securities
through the Paying Agent and in accordance with this Indenture to the payment
of principal of and interest on the Securities.

 

84

 

Section 8.4                                      Repayment
to Company.  The Trustee and the Paying Agent shall
promptly turn over to the Company upon request any excess money, U.S. Government
Securities or securities held by them upon payment of all the obligations under
this Indenture.

 

Subject to any applicable abandoned property law, the
Trustee and the Paying Agent shall pay to the Company upon request any money
held by them for the payment of principal of or premium or interest on the
Securities that remains unclaimed for two years, and, thereafter,
Securityholders entitled to the money must look to the Company for payment as
general creditors.

 

Section 8.5                                      Indemnity
for U.S. Government Securities.  The Company
shall pay and shall indemnify the Trustee against any tax, fee or other charge
imposed on or assessed against deposited U.S. Government Securities or the
principal and interest received on such U.S. Government Securities.

 

Section 8.6                                      Reinstatement.  If the Trustee or Paying Agent is unable to
apply any money or U.S. Government Securities in accordance with this Article
VIII by reason of any legal proceeding or by reason of any order or judgment of
any court or governmental authority enjoining, restraining or otherwise
prohibiting such application, the obligations of the Company under this
Indenture and the Securities shall be revived and reinstated as though no
deposit had occurred pursuant to this Article VIII until such time as the
Trustee or Paying Agent is permitted to apply all such money or U.S. Government
Securities in accordance with this Article VIII; provided, however,
that, if the Company has made any payment on any Securities because of the
reinstatement of its obligations, the Company shall be subrogated to the rights
of the Holders of such Securities to receive such payment from the money or
U.S. Government Securities held by the Trustee or Paying Agent.

 

ARTICLE
IX

Amendments

 

Section 9.1                                      Without
Consent of Holders.  The Company,
the Subsidiary Guarantors and the Trustee may amend this Indenture or the
Securities without notice to or consent of any Securityholder:

 

(1)                                  to
cure any ambiguity, omission, defect or inconsistency;

 

(2)                                  to
comply with Article IV in respect of the assumption by a Successor Company of
an obligation of the Company under this Indenture;

 

(3)                                  to
provide for uncertificated Securities in addition to or in place of
certificated Securities (provided that the uncertificated Securities are issued
in registered form for purposes of Section 163(f) of the Code, or in a manner
such that the uncertificated Securities are described in Section 163(f) (2) (B)
of the Code);

 

(4)                                  to
add additional Subsidiary Guarantors or confirm and evidence the release of a
Subsidiary Guarantee in accordance with this Indenture; provided, however,
that the designation is in accord with the applicable provisions of this
Indenture;

 

85

 

(5)                                  to
secure the Securities or the Subsidiary Guarantees;

 

(6)                                  to
add to the covenants of the Company for the benefit of the Holders or to
surrender any right or power herein conferred upon the Company;

 

(7)                                  to
make any change that does not adversely affect the rights of any
Securityholder;

 

(8)                                  to
comply with any requirement of the SEC in connection with qualifying, or
maintaining the qualification of this Indenture under the Trust Indenture Act;
or

 

(9)                                  provide
for a successor Trustee under this Indenture.

 

After an amendment under this Section becomes effective,
the Company shall mail to Securityholders a notice briefly describing such
amendment. The failure to give such notice to all Securityholders, or any
defect therein, shall not impair or affect the validity of an amendment under
this Section.

 

Section 9.2                                      With
Consent of Holders.  The Company,
the Subsidiary Guarantors and the Trustee may amend this Indenture or the
Securities without notice to any Securityholder but with the written consent of
the Holders of at least a majority in principal amount of the Securities then
outstanding (including, without limitation, consents obtained in connection
with a purchase of, or tender offer or exchange offer for, Securities).
However, without the consent of each Securityholder affected, an amendment may
not:

 

(1)                                  reduce
the principal amount of Securities whose Holders must consent to an amendment;

 

(2)                                  reduce
the stated rate of or extend the stated time for payment of interest on any
Security;

 

(3)                                  reduce
the principal of or extend the Stated Maturity of any Security;

 

(4)                                  reduce
the premium payable upon the redemption or repurchase of any Security or change
the time at which any Security may be redeemed or repurchased as described
under Article V, Section 3.9, Section 3.7 or any similar provision,
whether through an amendment or waiver of provisions in the covenants,
definitions or otherwise;

 

(5)                                  make
any Security payable in currency other than that stated in the Security;

 

(6)                                  impair
the right of any Holder to receive payment of, premium, if any, principal of
and interest on such Holder’s Securities on or after the due dates therefor or
to institute suit for the enforcement of any payment on or with respect to such
Holder’s Securities;

 

(7)                                  modify
the Subsidiary Guarantees in any manner adverse to the Holders of the
Securities; or

 

(8)                                  make
any change in this Section 9.2 or in Section 6.4.

 

86

 

It shall not be necessary for the consent of the
Holders under this Section to approve the particular form of any proposed
amendment, but it shall be sufficient if such consent approves the substance
thereof. A consent to any amendment or waiver under this Indenture by any
Holder of the Securities given in connection with a tender of such Holder’s
Securities will not be rendered invalid by such tender.

 

After an amendment under this Section becomes
effective, the Company shall mail to Securityholders a notice briefly
describing such amendment. The failure to give such notice to all
Securityholders, or any defect therein, shall not impair or affect the validity
of an amendment under this Section.

 

Section 9.3                                      Compliance
with Trust Indenture Act.  Every
amendment to this Indenture or the Securities shall comply with the TIA as then
in effect.

 

Section 9.4                                      Revocation
and Effect of Consents and Waivers.  A consent to
an amendment or a waiver by a Holder of a Security shall bind the Holder and
every subsequent Holder of that Security or portion of the Security that
evidences the same debt as the consenting Holder’s Security, even if notation
of the consent or waiver is not made on the Security. However, any such Holder
or subsequent Holder may revoke the consent or waiver as to such Holder’s
Security or portion of the Security if the Trustee receives the notice of
revocation before the date the amendment or waiver becomes effective. After an
amendment or waiver becomes effective, it shall bind every Securityholder. An
amendment or waiver shall become effective upon receipt by the Trustee of the
requisite number of written consents under Section 9.1 or 9.2 as
applicable.

 

The Company may, but shall not be obligated to, fix a
record date for the purpose of determining the Securityholders entitled to give
their consent or take any other action described above or required or permitted
to be taken pursuant to this Indenture. If a record date is fixed, then
notwithstanding the immediately preceding paragraph, those Persons who were
Securityholders at such record date (or their duly designated proxies), and
only those Persons, shall be entitled to give such consent or to revoke any
consent previously given or to take any such action, whether or not such
Persons continue to be Holders after such record date. No such consent shall
become valid or effective more than 120 days after such record date.

 

Section 9.5                                      Notation
on or Exchange of Securities.  If an
amendment changes the terms of a Security, the Trustee may require the Holder
of the Security to deliver it to the Trustee. The Trustee may place an
appropriate notation on the Security regarding the changed terms and return it
to the Holder. Alternatively, if the Company or the Trustee so determines, the
Company in exchange for the Security shall issue and the Trustee shall
authenticate a new Security that reflects the changed terms. Failure to make
the appropriate notation or to issue a new Security shall not affect the
validity of such amendment.

 

Section 9.6                                      Trustee
To Sign Amendments.  The Trustee
shall sign any amendment authorized pursuant to this Article IX if the
amendment does not adversely affect the rights, duties, liabilities or
immunities of the Trustee. If it does, the Trustee may but need not sign it. In
signing such amendment the Trustee shall be entitled to receive indemnity
reasonably satisfactory to it and to receive, and (subject to Sections 7.1
and 7.2) shall be fully protected in

 

87

 

relying upon an Officers’
Certificate and an Opinion of Counsel stating that such amendment is authorized
or permitted by this Indenture.

 

ARTICLE
X

Subsidiary
Guarantees

 

Section 10.1                                Subsidiary
Guarantees.  Each Subsidiary Guarantor hereby fully,
unconditionally and irrevocably guarantees, as primary obligor and not merely
as surety, jointly and severally with each other Subsidiary Guarantor, to each
Holder of the Securities and the Trustee the full and punctual payment when
due, whether at Stated Maturity, by acceleration, by redemption or otherwise,
of the principal of, premium, if any, and interest on the Securities and all
other monetary obligations of the Company under this Indenture (all the
foregoing being hereinafter collectively called the “Obligations”). Each
Subsidiary Guarantor further agrees (to the extent permitted by law) that the
Obligations may be extended or renewed, in whole or in part, without notice or
further assent from it, and that it will remain bound under this Article X
notwithstanding any extension or renewal of any Obligation.

 

Each Subsidiary Guarantor waives presentation to,
demand of payment from and protest to the Company of any of the Obligations and
also waives notice of protest for nonpayment. Each Subsidiary Guarantor waives
notice of any default under the Securities or the Obligations. The obligations
of each Subsidiary Guarantor hereunder shall not be affected by (a) the failure
of any Holder to assert any claim or demand or to enforce any right or remedy
against the Company or any other person under this Indenture, the Securities or
any other agreement or otherwise; (b) any extension or renewal of any thereof;
(c) any rescission, waiver, amendment or modification of any of the terms or
provisions of this Indenture, the Securities or any other agreement; (d) the
release of any security held by any Holder or the Trustee for the Obligations
or any of them; (e) the failure of any Holder to exercise any right or remedy
against any other Subsidiary Guarantor; or (f) any change in the ownership of
the Company.

 

Each Subsidiary Guarantor further agrees that its
Subsidiary Guarantee herein constitutes a Guarantee of payment when due (and
not a Guarantee of collection) and waives any right to require that any resort
be had by any Holder to any security held for payment of the Obligations.

 

Except as expressly set forth in Sections 8.1(b)
and 10.2, the obligations of each Subsidiary Guarantor hereunder shall not
be subject to any reduction, limitation, impairment or termination for any
reason (other than payment of the Obligations in full), including any claim of
waiver, release, surrender, alteration or compromise, and shall not be subject
to any defense of setoff, counterclaim, recoupment or termination whatsoever or
by reason of the invalidity, illegality or unenforceability of the Obligations
or otherwise. Without limiting the generality of the foregoing, the obligations
of each Subsidiary Guarantor herein shall not be discharged or impaired or
otherwise affected by the failure of any Holder to assert any claim or demand
or to enforce any remedy under this Indenture, the Securities or any other
agreement, by any waiver or modification of any thereof, by any default,
failure or delay, willful or otherwise, in the performance of the Obligations,
or by any other act or thing or omission or delay to do any other act or thing
which may or might in any manner or to any extent vary the risk of any
Subsidiary Guarantor or would otherwise operate as a discharge of such
Subsidiary Guarantor as a matter of law or equity.

 

88

 

Each Subsidiary Guarantor further agrees that its
Subsidiary Guarantee herein shall continue to be effective or be reinstated, as
the case may be, if at any time payment, or any part thereof, of principal of
or interest on any of the Obligations is rescinded or must otherwise be
restored by any Holder upon the bankruptcy or reorganization of the Company or
otherwise.

 

In furtherance of the foregoing and not in limitation
of any other right which any Holder has at law or in equity against any
Subsidiary Guarantor by virtue hereof, upon the failure of the Company to pay any
of the Obligations when and as the same shall become due, whether at maturity,
by acceleration, by redemption or otherwise, each Subsidiary Guarantor hereby
promises to and will, upon receipt of written demand by the Trustee, forthwith
pay, or cause to be paid, in cash, to the Holders an amount equal to the sum of
(i) the unpaid amount of such Obligations then due and owing and (ii) accrued
and unpaid interest on such Obligations then due and owing (but only to the
extent not prohibited by law).

 

Each Subsidiary Guarantor further agrees that, as
between such Subsidiary Guarantor, on the one hand, and the Holders, on the
other hand, (x) the maturity of the Obligations guaranteed hereby may be
accelerated as provided in this Indenture for the purposes of its Subsidiary
Guarantee herein, notwithstanding any stay, injunction or other prohibition
preventing such acceleration in respect of the Obligations guaranteed hereby
and (y) in the event of any such declaration of acceleration of such
Obligations, such Obligations (whether or not due and payable) shall forthwith
become due and payable by the Subsidiary Guarantor for the purposes of this
Subsidiary Guarantee.

 

Each Subsidiary Guarantor also agrees to pay any and
all reasonable costs and expenses (including reasonable attorneys’ fees)
incurred by the Trustee or the Holders in enforcing any rights under this
Section.

 

Section 10.2                                Limitation
on Liability; Termination, Release and Discharge.

 

(a)                                  The
obligations of each Subsidiary Guarantor hereunder will be limited to the
maximum amount as will, after giving effect to all other contingent and fixed
liabilities of such Subsidiary Guarantor (including, without limitation, any
guarantees under the Credit Facilities) and after giving effect to any
collections from or payments made by or on behalf of any other Subsidiary
Guarantor in respect of the obligations of such other Subsidiary Guarantor
under its Subsidiary Guarantee or pursuant to its contribution obligations
under this Indenture, result in the obligations of such Subsidiary Guarantor
under its Subsidiary Guarantee not constituting a fraudulent conveyance or
fraudulent transfer under federal or state law.

 

(b)                                 Each
Subsidiary Guarantor may consolidate with or merge into or sell its assets to
the Company or another Subsidiary Guarantor without limitation. Subject to
Article III and Article IV, each Subsidiary Guarantor may consolidate with or
merge into or sell all or substantially all its assets to a corporation,
partnership or trust other than the Company or another Subsidiary Guarantor
(whether or not affiliated with the Subsidiary Guarantor), except that if the
surviving Person of any such merger or consolidation is a Subsidiary of the
Company but not a Subsidiary Guarantor, such merger, consolidation or sale
shall not be permitted unless (i) the Person formed by or surviving any such
consolidation or merger assumes all the obligations of such Subsidiary
Guarantor pursuant to a supplemental indenture in form and substance

 

89

 

reasonably satisfactory to the Trustee in
respect of the Securities, this Indenture and the Subsidiary Guarantee; (ii)
immediately after giving effect to such transaction, no Default or Event of
Default exists; and (iii) the Company delivers to the Trustee an Officers’
Certificate and an Opinion of Counsel addressed to the Trustee with respect to
the foregoing matters. Upon the sale or disposition of a Subsidiary Guarantor
(by merger, consolidation, the sale of its Capital Stock or the sale of all or
substantially all of its assets (other than by a vessel charter made in the
ordinary course of business)) and whether or not the Subsidiary Guarantor is
the surviving Person in such transaction to a Person (whether or not an
Affiliate of the Subsidiary Guarantor) which is not the Company or a Restricted
Subsidiary of the Company, which sale or disposition is otherwise in compliance
with this Indenture (including, without limitation, Sections 3.4, 3.7 and
3.10), such Subsidiary Guarantor will be deemed released from all its
obligations under this Indenture and its Subsidiary Guarantee and such
Subsidiary Guarantee will terminate; provided, however, that any such
termination will occur only to the extent that all obligations of such
Subsidiary Guarantor under the Credit Facilities, related documentation and any
other agreements relating to any other Indebtedness of the Company or its
Restricted Subsidiaries will also terminate upon such release, sale or
transfer.

 

(c)                                  A
Subsidiary Guarantor will be deemed released and relieved of its obligations
under this Indenture and its Subsidiary Guarantee without any further action
required on the part of the Company or such Subsidiary Guarantor upon (i) the
designation of such Subsidiary Guarantor as an Unrestricted Subsidiary in
accordance with the terms of this Indenture or (ii) if the Company exercises
either its legal or covenant defeasance option in accordance with Article VIII.

 

Section 10.3                                Right
of Contribution.  Each Subsidiary Guarantor hereby agrees that
to the extent that any Subsidiary Guarantor shall have paid more than its
proportionate share of any payment made on the obligations under the Subsidiary
Guarantees, such Subsidiary Guarantor shall be entitled to seek and receive
contribution from and against the Company or any other Subsidiary Guarantor who
has not paid its proportionate share of such payment, so long as the exercise
of such right does not impair the rights of Holders under the Subsidiary
Guarantees.  The provisions of this Section
10.3 shall in no respect limit the obligations and liabilities of each
Subsidiary Guarantor to the Trustee and the Holders and each Subsidiary
Guarantor shall remain liable to the Trustee and the Holders for the full
amount guaranteed by such Subsidiary Guarantor hereunder.

 

Section 10.4                                No
Subrogation.  Notwithstanding any payment or payments made
by each Subsidiary Guarantor hereunder, no Subsidiary Guarantor shall be
entitled to be subrogated to any of the rights of the Trustee or any Holder
against the Company or any other Subsidiary Guarantor or any collateral
security or guarantee or right of offset held by the Trustee or any Holder for
the payment of the Obligations, nor shall any Subsidiary Guarantor seek or be
entitled to seek any contribution or reimbursement from the Company or any
other Subsidiary Guarantor in respect of payments made by such Subsidiary
Guarantor hereunder, until all amounts owing to the Trustee and the Holders by
the Company on account of the Obligations are paid in full. If any amount shall
be paid to any Subsidiary Guarantor on account of such subrogation rights at
any time when all of the Obligations shall not have been paid in full, such
amount shall be held by such Subsidiary Guarantor in trust for the Trustee and
the Holders, segregated from other funds of such Subsidiary Guarantor, and
shall, forthwith upon receipt by such Subsidiary Guarantor, be

 

90

 

turned over to the Trustee in
the exact form received by such Subsidiary Guarantor (duly indorsed by such
Subsidiary Guarantor to the Trustee, if required), to be applied against the
Obligations.

 

ARTICLE
XI

Miscellaneous

 

Section 11.1                                Trust
Indenture Act Controls.  If any
provision of this Indenture limits, qualifies or conflicts with another
provision which is required to be included in an indenture qualified under the
TIA, the provision required by the TIA shall control. Each Subsidiary Guarantor
in addition to performing its obligations under its Subsidiary Guarantee shall
perform such other obligations as may be imposed upon it with respect to this
Indenture under the TIA.

 

Section 11.2                                Notices.  Any notice or communication shall be in
writing in the English language and delivered in person or mailed by
first-class mail addressed as follows:

 

if to the Company:

 

Ship Finance International Limited

Par-la-Ville Place, 14 Par-la-Ville Road,

Hamilton, HM 08, Bermuda

Attention:  Chief Financial
Officer

 

with a copy to:

 

Seward & Kissel LLP

One Battery Park Plaza

New York, New York 10004

Attention:  Gary J. Wolfe

Robert E.
Lustrin; or

 

if to the Trustee:

 

Wilmington Trust Company

Rodney Square North

1100 North Market Street

Wilmington, Delaware 19890-0001

Attention: Corporate Trust Administration

 

The Company, any
Subsidiary or the Trustee by notice to the other may designate additional or
different addresses for subsequent notices or communications.

 

Any notice or communication mailed to a registered
Securityholder shall be mailed to the Securityholder at the Securityholder’s
address as it appears on the registration books of the Registrar and shall be
sufficiently given if so mailed within the time prescribed.

 

91

 

Failure to mail a notice or communication to a
Securityholder or any defect in it shall not affect its sufficiency with
respect to other Securityholders. If a notice or communication is mailed in the
manner provided above, it is duly given, whether or not the addressee receives
it.

 

Section 11.3                                Communication
by Holders with other Holders. 
Securityholders may communicate pursuant to TIA § 312(b) with other
Securityholders with respect to their rights under this Indenture or the
Securities. The Company, the Trustee, the Registrar and anyone else shall have
the protection of TIA § 312(c).

 

Section 11.4                                Certificate
and Opinion as to Conditions Precedent.  Upon any
request or application by the Company to the Trustee to take or refrain from
taking any action under this Indenture, the Company shall furnish to the
Trustee:

 

(1)                                  an
Officers’ Certificate in form and substance reasonably satisfactory to the
Trustee stating that, in the opinion of the signers, all conditions precedent,
if any, provided for in this Indenture relating to the proposed action have
been complied with; and

 

(2)                                  an
Opinion of Counsel in form and substance reasonably satisfactory to the Trustee
stating that, in the opinion of such counsel, all such conditions precedent
have been complied with.

 

Section 11.5                                Statements
Required in Certificate or Opinion.  Each certificate
or opinion with respect to compliance with a covenant or condition provided for
in this Indenture shall include:

 

(1)                                  a
statement that the individual making such certificate or opinion has read such
covenant or condition;

 

(2)                                  a
brief statement as to the nature and scope of the examination or investigation
upon which the statements or opinions contained in such certificate or opinion
are based;

 

(3)                                  a
statement that, in the opinion of such individual, he has made such examination
or investigation as is necessary to enable him to express an informed opinion
as to whether or not such covenant or condition has been complied with; and

 

(4)                                  a
statement as to whether or not, in the opinion of such individual, such
covenant or condition has been complied with.

 

In giving such Opinion of Counsel, counsel may rely as
to factual matters on an Officers’ Certificate or on certificates of public
officials.

 

Section 11.6                                When
Securities Disregarded.  In determining
whether the Holders of the required principal amount of Securities have
concurred in any direction, waiver or consent, Securities owned by the Company
or by any Affiliate of the Company shall be disregarded and deemed not to be
outstanding, except that, for the purpose of determining whether the Trustee
shall be protected in relying on any such direction, waiver or consent, only
Securities which the Trustee knows are so owned shall be so disregarded. Also,
subject to the foregoing, only Securities outstanding at the time shall be
considered in any such determination.

 

92

 

Section 11.7                                Rules
by Trustee, Paying Agent and Registrar.  The Trustee
may make reasonable rules for action by, or a meeting of, Securityholders. The
Registrar and the Paying Agent may make reasonable rules for their functions.

 

Section 11.8                                Legal
Holidays.  A “Legal Holiday” is a Saturday, a Sunday or
other day on which commercial banking institutions are authorized or required
to be closed in New York City, New York, Wilmington, Delaware or Oslo, Norway.
If a payment date is a Legal Holiday, payment shall be made on the next
succeeding day that is not a Legal Holiday, and no interest shall accrue for
the intervening period. If a regular record date is a Legal Holiday, the record
date shall not be affected.

 

Section 11.9                                GOVERNING
LAW.  THIS INDENTURE AND THE SECURITIES SHALL BE
GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW
YORK.

 

Section 11.10                          No Recourse Against Others.  An incorporator, director, officer, employee,
partner, member, manager, stockholder or controlling person, as such, of the
Company or any Subsidiary Guarantor shall not have any liability for any
obligations of the Company under the Securities, this Indenture or the
Subsidiary Guarantees or for any claim based on, in respect of or by reason of
such obligations or their creation. By accepting a Security, each
Securityholder shall waive and release all such liability. The waiver and
release shall be part of the consideration for the issue of the Securities.

 

Section 11.11                          Successors. 
All agreements of the Company in this Indenture and the
Securities shall bind its respective successors. All agreements of the Trustee
in this Indenture shall bind its successors.

 

Section 11.12                          Multiple Originals.  The parties may sign any number of copies of
this Indenture. Each signed copy shall be an original, but all of them together
represent the same agreement. One signed copy is enough to prove this
Indenture.

 

Section 11.13                          Qualification of Indenture.  The Company shall qualify this Indenture
under the TIA in accordance with the terms and conditions of the Registration
Rights Agreement and shall pay all reasonable costs and expenses (including
attorneys’ fees and expenses for the Company, the Trustee and the Holders)
incurred in connection therewith, including, but not limited to, costs and
expenses of qualification of this Indenture and the Securities and printing
this Indenture and the Securities. The Trustee shall be entitled to receive
from the Company any such Officers’ Certificates or other documentation as it
may reasonably request in connection with any such qualification of this
Indenture under the TIA.

 

Section 11.14                          Table of Contents; Headings.  The table of contents, cross-reference sheet
and headings of the Articles and Sections of this Indenture have been inserted
for convenience of reference only, are not intended to be considered a part
hereof and shall not modify or restrict any of the terms or provisions hereof.

 

Section 11.15                          Submission to Jurisdiction;
Service of Process.  The Company and each Subsidiary Guarantor hereby
irrevocably submit to the nonexclusive jurisdiction of the United States
District Court for the Southern District of New York and of any competent New

 

93

 

York State Court sitting in the
Borough of Manhattan in New York City for purposes of all legal proceedings
arising out of or relating to this Indenture, the Securities or the Subsidiary
Guarantees, or the transactions contemplated hereby or thereby.  The Company and each Subsidiary Guarantor
irrevocably waive, to the fullest extent permitted by law, any objection which
they may now or hereafter have to the laying of the venue of any such proceeding
brought in such a court and any claim that any such proceeding brought in such
a court has been brought in an inconvenient forum.  Each of the Company and each Subsidiary Guarantor hereby
irrevocably designates and appoints Seward & Kissel, LLP (“SK”)
as such Person’s authorized agent to receive and forward on its behalf service
of any and all process which may be served in any such suit, action or
proceeding in any such court and agrees that service of process in accordance
with applicable law upon SK (or any successor) at its office at One Battery
Park Plaza, New York, New York 10004 (or such other address in the Borough of
Manhattan, the City of New York, as the Company may designate by written notice
to the other parties hereto) and written notice of such service to the Company,
mailed or delivered to the Seward & Kissel, One Battery Park Plaza, New
York, New York 10004, shall be deemed in every respect effective service of
process upon the Company and, if applicable, such Subsidiary Guarantor in any
such suit, action or proceeding and shall be taken and held to be valid
personal service upon the Company.  Such
designation and appointment shall be irrevocable.  Nothing in this Section 11.15 shall affect the right of
any party hereto to service process in any manner permitted by law or limit the
right of any party hereto to bring proceeding against the Company or any
Subsidiary Guarantor in the courts of any jurisdiction or jurisdictions.  The Company and each Subsidiary Guarantor
further agree to take any and all action, including the execution and filing of
any and all such documents and instruments, as may be necessary to continue
such designation and appointment of SK in full force and effect so long as this
Indenture or any of the Securities shall be outstanding; provided that the
Company may and shall (to the extent SK ceases to be able to be served on the
basis contemplated herein), by written notice to the Trustee, designate such
additional or alternative agent for service of process under this Section
11.15 that (a) maintains an office located in the Borough of Manhattan, The
City of New York in the State of New York, (b) is either (i) counsel for the
Company or (ii) a corporate service company which acts as agent for service of
process for other Persons in the ordinary course of its business and (c) agrees
to act as agent for service of process in accordance with this Section 11.15.  Such notice shall identify the name of such
agent for process and the address of such agent for process in the Borough of
Manhattan, The City of New York, State of New York.  Upon the request of any Holder, the Trustee shall deliver such
information to such Holder.  To the
extent that the Company or any Subsidiary Guarantor has or hereafter may
acquire any immunity from jurisdiction or any court or from any legal process
(whether through service of notice, attachment prior to judgment, attachment in
aid of execution, execution or otherwise) with respect to itself or its
property, the Company and each Subsidiary Guarantor hereby irrevocably waive
such immunity in respect of its obligations under this Indenture, the
Securities and the Subsidiary Guarantees, as applicable, to the extent
permitted by law.

 

Section 11.16                          Indemnification for Foreign
Currency Judgments.  The obligations of the Company or any Subsidiary
Guarantor to any Holder of Securities or the Trustee shall, notwithstanding any
judgment in a currency (the “Judgment Currency”) other than United
States dollars (the “Agreement Currency”), be discharged only
to the extent that on the first Business Day following receipt by such Holder
of Securities or the Trustee, as the case may be, of any amount in the Judgment
Currency, such Holder of Securities or the Trustee may in accordance

 

94

 

with normal banking procedures
purchase the Agreement Currency with the Judgment Currency in New York, New
York.  If the amount of the Agreement
Currency that could be so purchased is less than the amount originally to be
paid to such Holder of Securities or the Trustee, as the case may be, in the
Agreement Currency, the Company and each Subsidiary Guarantor agrees, as a
separate obligation and notwithstanding such judgment, to pay to such Holder of
Securities or the Trustee, as the case may be, the difference, and if the amount
of the Agreement Currency that could be so purchased exceeds the amount
originally to be paid to such Holder of Securities or the Trustee, as the case
may be, such Holder of Securities or the Trustee, as the case may be, agrees to
pay to or for the account of the Company such excess, provided that such Holder
of Securities or the Trustee, as the case may be, shall not have any obligation
to pay any such excess as long as a default by the Company or any Subsidiary
Guarantor in its obligations in respect of its obligations to pay when due any
principal of, or interest, premium, if any, liquidated damages, if any, or
Additional Amounts, if any, on the Securities, or any other amounts due under
this Indenture or the Subsidiary Guarantees has occurred and is continuing, in
which case such excess may be applied by such Holder of Securities or the
Trustee, as the case may be, to such payment obligations.

 

(2)                                  The
provisions of this Section 11.16 shall apply irrespective of any
indulgence granted to the Company or any Subsidiary Guarantor from time to time
and shall continue in full force and effect notwithstanding any payment by or
on behalf of the Company or any Subsidiary Guarantor, and any amount due from
the Company under this Section 11.16 will be due as a separate payment
and shall not be affected by any judgment obtained or claims made for any other
sums due under or in respect of this Indenture.

 

Section 11.17                          Severability.  In case any provision in this
Indenture or in the Securities shall be invalid, illegal or unenforceable, the
validity, legality and enforceability of the remaining provisions shall not in
any way be affected or impaired thereby.

 

95

 

IN WITNESS WHEREOF, the
parties have caused this Indenture to be duly executed as of the date first
written above.

 

	
   

  	
  Very truly yours,

  	 

	
   

  	
   

  	 

	
   

  	
  SHIP FINANCE INTERNATIONAL LIMITED

  	 

	
   

  	
   

  	 

	
   

  	
   

  	 

	
   

  	
  By:

  	
  /s/ Kate Blankenship

  	 

	
   

  	
  Name:

  	
  Kate Blankenship

  	 

	
   

  	
  Title:

  	
  Director, Secretary and Attorney-In-Fact

  	 

	
   

  	
   

  	 

	
   

  	
   

  	 

	
   

  	
  WILMINGTON TRUST COMPANY

  	 

	
   

  	
   

  	 

	
   

  	
  By:

  	
  /s/ James J. McGintey

  	 

	
   

  	
    Name:

  	
  James J.
  McGintey

  	 

	
   

  	
    Title:

  	
  Authorized
  Signer

  
								

 

 

SCHEDULE I

 

AGREEMENTS

 

The Material Agreements (as defined in this
Indenture), the Fleet Purchase Agreement (as defined in this Indenture) and
each of the agreements contemplated in accordance with the Fleet Purchase
Agreement are excluded from the provisions of Section 3.8(a) to the extent set
forth in Section 3.8(b).

 

 

EXHIBIT A

 

[FORM OF FACE
OF UNREGISTERED NOTE]

 

THIS SECURITY HAS NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE
SECURITIES LAWS. NEITHER THIS SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN
MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE
DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS
EXEMPT FROM, OR NOT SUBJECT TO, REGISTRATION.

 

THE HOLDER OF THIS SECURITY BY
ITS ACCEPTANCE HEREOF (1) REPRESENTS THAT (A) IT IS A “QUALIFIED
INSTITUTIONAL BUYER” (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT),
(B) IT IS A NON-U.S. PURCHASER AND IS ACQUIRING THIS SECURITY IN AN
OFFSHORE TRANSACTION WITHIN THE MEANING OF REGULATION S UNDER THE SECURITIES
ACT, OR (C) IT IS AN INSTITUTIONAL “ACCREDITED INVESTOR” WITHIN THE
MEANING OF SUBPARAGRAPH (a)(1), (2), (3) OR (7) OF RULE 501 UNDER THE
SECURITIES ACT, AND (2) AGREES TO OFFER, SELL OR OTHERWISE TRANSFER SUCH
SECURITY, PRIOR TO THE DATE WHICH IS TWO YEARS AFTER THE LATER OF THE ORIGINAL
ISSUE DATE HEREOF AND THE LAST DATE ON WHICH THE COMPANY OR ANY AFFILIATE OF
THE COMPANY WAS THE OWNER OF THIS SECURITY (OR ANY PREDECESSOR OF SUCH
SECURITY), ONLY (A) TO THE COMPANY OR ANY OF ITS SUBSIDIARIES,
(B) PURSUANT TO A REGISTRATION STATEMENT WHICH HAS BEEN DECLARED EFFECTIVE
UNDER THE SECURITIES ACT, (C) FOR SO LONG AS THE NOTES ARE ELIGIBLE FOR
RESALE PURSUANT TO RULE 144A, TO A PERSON IT REASONABLY BELIEVES IS A
“QUALIFIED INSTITUTIONAL BUYER” AS DEFINED IN RULE 144A UNDER THE SECURITIES
ACT THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED
INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN
RELIANCE ON RULE 144A, (D) PURSUANT TO OFFERS AND SALES TO NON-U.S.
PURCHASERS THAT OCCUR OUTSIDE THE UNITED STATES WITHIN THE MEANING OF
REGULATION S UNDER THE SECURITIES ACT, (E) TO AN INSTITUTIONAL “ACCREDITED
INVESTOR” WITHIN THE MEANING OF SUBPARAGRAPH (a)(1), (2), (3) OR
(7) OF RULE 501 UNDER THE SECURITIES ACT THAT IS ACQUIRING THE SECURITY
FOR ITS OWN ACCOUNT, OR FOR THE ACCOUNT OF SUCH AN INSTITUTIONAL ACCREDITED
INVESTOR, FOR INVESTMENT PURPOSES AND NOT WITH A VIEW TO, OR FOR OFFER OR SALE
IN CONNECTION WITH, ANY DISTRIBUTION IN VIOLATION OF THE SECURITIES ACT OR
(F) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO THE COMPANY’S AND THE TRUSTEE’S,
OR TRANSFER AGENT’S, AS APPLICABLE, RIGHT PRIOR TO ANY SUCH OFFER, SALE OR
TRANSFER PURSUANT TO CLAUSES (D), (E), OR (F) TO REQUIRE THE DELIVERY OF
AN OPINION OF COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO
EACH OF THEM, AND IN EACH OF THE FOREGOING CASES, A CERTIFICATE OF TRANSFER IN
THE FORM APPEARING ON THE OTHER SIDE OF THIS SECURITY IS COMPLETED AND
DELIVERED BY THE TRANSFEROR TO THE TRUSTEE OR TRANSFER AGENT.

 

BY ITS ACQUISITION OF THIS SECURITY THE HOLDER THEREOF WILL BE DEEMED
TO HAVE REPRESENTED AND WARRANTED THAT EITHER (I) NO PORTION OF THE ASSETS
USED BY SUCH HOLDER TO ACQUIRE AND HOLD THIS SECURITY CONSTITUTES THE ASSETS OF
AN EMPLOYEE BENEFIT PLAN THAT IS SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT
INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”), OF PLANS, INDIVIDUAL
RETIREMENT ACCOUNTS OR OTHER ARRANGEMENTS THAT ARE SUBJECT TO SECTION 4975 OF
THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”), OR PROVISIONS UNDER
ANY FEDERAL, STATE, LOCAL, NON-U.S. OR OTHER LAWS OR REGULATIONS THAT ARE
SIMILAR TO SUCH PROVISIONS OF ERISA OR THE CODE (COLLECTIVELY, “SIMILAR LAWS”),
OR OF AN ENTITY WHOSE UNDERLYING ASSETS ARE CONSIDERED TO INCLUDE “PLAN ASSETS”
OF SUCH PLANS, ACCOUNTS OR ARRANGEMENTS, OR (II) THE PURCHASE AND HOLDING
OF THIS SECURITY WILL NOT CONSTITUTE A NON-EXEMPT PROHIBITED TRANSACTION UNDER
SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE OR A SIMILAR VIOLATION UNDER
ANY APPLICABLE SIMILAR LAWS.

 

A-1

 

[UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE
OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), NEW YORK, NEW YORK,
TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT,
AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN
SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY
PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR
VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED
OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

 

TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN
WHOLE, BUT NOT IN PART, TO NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR SUCH
SUCCESSOR’S NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL SECURITY SHALL BE
LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN THIS
INDENTURE REFERRED TO ON THE REVERSE HEREOF.]

 

	
  No. [   ]

  	
  Principal Amount U.S. $[      ]

  
	
   

  	
   

  
	
   

  	
  CUSIP NO.

  

 

SHIP FINANCE
INTERNATIONAL LIMITED

 

81⁄2% Senior
Note due 2013

 

Ship Finance International Limited, a Bermuda exempted
company, promises to pay to [        ],
or registered assigns, the principal sum of
[                             ]
U.S. Dollars, on             ,
2013.

 

Interest Payment Dates: June 15 and December 15

 

Record Dates: June 1 and December 1 preceding each
interest payment date

 

Additional provisions of this Security are set forth
on the other side of this Security.

 

	
   

  	
  SHIP FINANCE INTERNATIONAL LIMITED

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  

 

 

	
  TRUSTEE’S CERTIFICATE OF AUTHENTICATION

  	
   

  
	
   

  	
   

  
	
  WILMINGTON TRUST COMPANY

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  	
  Date:

  	
   

  
	
  Authorized Signatory

  	
   

  	
   

  
						

 

[FORM OF
REVERSE SIDE OF UNREGISTERED NOTE]

 

A-2

 

81⁄2% Senior
Notes due 2013

 

(1)                                  Interest

 

Ship Finance International Limited, an exempted
Bermuda company (such company, and its successors and assigns under the
Indenture hereinafter referred to, being herein called the “Company”), promises
to pay interest on the principal amount of this Security at the rate per annum
shown above, plus any Additional Interest specified in the Registration Rights
Agreement or Additional Amounts described in the Indenture.

 

The Company will pay interest semiannually on June 15
and December 15 of each year commencing June 15, 2004. Interest on the
Securities will accrue from the most recent date to which interest has been
paid on the Securities or, if no interest has been paid, from December 18,
2003. The Company shall pay interest on overdue principal or premium, if any (plus
interest on such interest to the extent lawful), at the rate borne by the
Securities to the extent lawful. Interest will be computed on the basis of a
360-day year of twelve 30-day months.

 

(2)                                  Method
of Payment

 

By no later than 10:00 a.m. (New York City time) on
the date on which any principal of or premium or interest on any Security is
due and payable, the Company shall irrevocably deposit with the Trustee or the
Paying Agent money sufficient to pay such principal, premium, if any, and/or
interest. The Company will pay interest (except Defaulted Interest) to the
Persons who are registered Holders of Securities at the close of business on
the June 1 or December 1 next preceding the interest payment date even if
Securities are cancelled, repurchased or redeemed after the record date and on
or before the interest payment date. Holders must surrender Securities to a
Paying Agent to collect principal payments. The Company will pay principal and
interest in money of the United States that at the time of payment is legal
tender for payment of public and private debts. Payments in respect of
Securities represented by a Global Security (including principal, premium, if
any, and interest) will be made by the transfer of immediately available funds
to the accounts specified by The Depository Trust Company. The Company will
make all payments in respect of a Definitive Security (including principal,
premium, if any, and interest) by mailing a check to the registered address of
each Holder thereof; provided, however, that payments on the
Securities may also be made, in the case of a Holder of a least $1,000,000
aggregate principal amount of Securities, by wire transfer to a U.S. dollar
account maintained by the payee with a bank in the United States if such Holder
elects payment by wire transfer by giving written notice to the Trustee or the
Paying Agent to such effect designating such account no later than 15 days immediately
preceding the relevant due date for payment (or such other date as the Trustee
may accept in its discretion).

 

(3)                                  Paying
Agent and Registrar

 

Initially, Wilmington Trust Company (the “Trustee”),
will act as Trustee, Paying Agent and Registrar. The Company may appoint and
change any Paying Agent, Registrar or co-registrar without notice to any
Securityholder. The Company or any of its Restricted Subsidiaries may act as
Paying Agent, Registrar or co-registrar.

 

A-3

 

(4)                                  Indenture

 

The Company issued the Securities under an Indenture
dated as of December 18, 2003 (as it may be amended or supplemented from time
to time in accordance with the terms thereof, the “Indenture”), between the
Company and the Trustee. The terms of the Securities include those stated in
the Indenture and those made part of the Indenture by reference to the Trust
Indenture Act of 1939 (15 U.S.C. §§ 77aaa-77bbbb) as in effect on the date of
the Indenture (the “Act”). Capitalized terms used herein and not defined herein
have the meanings ascribed thereto in the Indenture. The Securities are subject
to all such terms, and Securityholders are referred to the Indenture and the
Act for a statement of those terms.

 

The aggregate principal amount of Securities that may
be authenticated and delivered under the Indenture is unlimited. This Security
is one of the 81⁄2% Senior Notes due 2013 referred to in the Indenture. The
Securities include (i) $580,000,000 aggregate principal amount of the Company’s
81⁄2% Senior Notes due 2013 issued under the Indenture on December 18, 2003
(herein called “Initial Securities”), (ii) if and when issued, additional 81⁄2%
Senior Notes due 2013 of the Company that may be issued from time to time under
the Indenture subsequent to December 18, 2003 (herein called “Additional
Securities”) and (iii) if and when issued, the Company’s 81⁄2% Senior Notes due
2013 that may be issued from time to time under the Indenture in exchange for
Initial Securities or Additional Securities in an offer registered under the
Securities Act as provided in the applicable Registration Rights Agreement. The
Initial Securities, Additional Securities and Exchange Securities are treated
as a single class of securities under the Indenture.

 

To guarantee the due and punctual payment of the
principal, premium, if any, and interest on the Securities and all other
amounts payable by the Company under the Indenture and the Securities when and
as the same shall be due and payable, whether at Stated Maturity, by
acceleration or otherwise, according to the terms of the Securities and the
Indenture, the Subsidiary Guarantors unconditionally guarantee, jointly and
severally, such obligations on a senior basis pursuant to the terms of the
Indenture.

 

(5)                                  Optional
and Mandatory Redemption

 

The Securities are subject to both optional and
mandatory redemption, either as a whole or in some cases in part, at the times,
under the circumstances and at the redemption prices described in Article Five
of the Indenture.

 

(6)                                  Repurchase
Provisions

 

(a)                                  Upon
a Change of Control any Holder of Securities will have the right to cause the
Company to repurchase all or any part of the Securities of such Holder at a
purchase price in cash equal to 101% of the principal amount thereof, plus
accrued and unpaid interest, if any, to the date of repurchase (subject to the
right of Holders of record on the relevant record date to receive interest due
on the relevant interest payment date) as provided in, and subject to the terms
of, the Indenture.

 

(b)                                 In
the event of an Asset Disposition that requires the purchase of Securities
pursuant to Section 3.7(b) of the Indenture, the Company will be
required to apply such Excess

 

A-4

 

Proceeds to the repayment
of the Securities and any Pari Passu Notes in accordance with the procedures
set forth in Section 3.7 of the Indenture.

 

(7)                                  Denominations;
Transfer; Exchange

 

The Securities are in registered form without coupons
in denominations of principal amount of $1,000 and whole multiples of $1,000. A
Holder may transfer or exchange Securities in accordance with the Indenture.
The Registrar may require a Holder, among other things, to furnish appropriate
endorsements or transfer documents and to pay any taxes and fees required by
law or permitted by the Indenture.

 

(8)                                  Persons
Deemed Owners

 

The registered Holder of this Security may be treated
as the owner of it for all purposes.

 

(9)                                  Amendment,
Waiver

 

The Indenture or the Securities may be amended, and certain
defaults may be waived, each as provided in the Indenture.

 

(10)                            Trustee
Dealings with the Company

 

Subject to certain limitations set forth in the
Indenture, the Trustee under the Indenture, in its individual or any other
capacity, may become the owner or pledgee of Securities and may otherwise deal
with and collect obligations owed to it by the Company or its Affiliates and
may otherwise deal with the Company or its Affiliates with the same rights it
would have if it were not Trustee.

 

(11)                            No
Recourse Against Others

 

An incorporator, director, officer, employee, partner,
member, manager, stockholder or controlling person, as such, of each of the
Company, or any Subsidiary Guarantor shall not have any liability for any
obligations of the Company under the Securities, the Indenture or any
Subsidiary Guarantees or for any claim based on, in respect of or by reason of
such obligations or their creation. By accepting a Security, each
Securityholder waives and releases all such liability. The waiver and release
are part of the consideration for the issue of the Securities.

 

(12)                            Authentication

 

This Security shall not be valid until an authorized
signatory of the Trustee (or an authenticating agent acting on its behalf)
manually signs the certificate of authentication on the other side of this
Security.

 

(13)                            Abbreviations

 

Customary abbreviations may be used in the name of a
Securityholder or an assignee, such as TEN COM (= tenants in common), TEN ENT
(= tenants by the entirety), JT TEN

 

A-5

 

(= joint tenants with
rights of survivorship and not as tenants in common), CUST (= custodian) and
U/G/M/A (= Uniform Gift to Minors Act).

 

(14)                            CUSIP
and ISIN Numbers

 

Pursuant to a recommendation promulgated by the Committee
on Uniform Security Identification Procedures, the Company has caused CUSIP and
ISIN numbers to be printed on the Securities and has directed the Trustee to
use CUSIP and ISIN numbers in notices of redemption as a convenience to
Securityholders. No representation is made as to the accuracy of such numbers
either as printed on the Securities or as contained in any notice of redemption
and reliance may be placed only on the other identification numbers placed
thereon.

 

(15)                            Governing
Law

 

This Security shall be governed by, and construed in
accordance with, the laws of the State of New York.

 

(16)                            Additional
Information

 

The Company will furnish to any Securityholder upon
written request and without charge to the Securityholder a copy of the
Indenture.  Requests may be made to:

 

Ship Finance International Limited

Par-la-Ville Place, 14 Par-la-Ville Road,

Hamilton, HM 08, Bermuda

Attention: Chief Financial Officer

 

A-6

 

ASSIGNMENT
FORM

 

	
   

  	
  To assign this Security,
  fill in the form below:

  
	
   

  	
   

  
	
   

  	
  I or we assign and
  transfer this Security to

  
	
   

  
	
   

  
	
  (Print or type assignee’s name, address and zip code)

  
	
   

  
	
   

  
	
  (Insert assignee’s soc. sec. or tax I.D. No.)

  
	
   

  
	
  and irrevocably
  appoint                                       agent
  to transfer this Security on the books of the Company. The agent may
  substitute another to act for him.

  
	
   

  
	
  Date:

  	
   

  	
   

  	
  Your Signature:

  	
   

  
	
   

  
	
  Signature Guarantee:

  	
   

  	
   

  
	
  (Signature must be guaranteed)

  
	
   

  
	
   

  	
   

  
	
  Sign exactly as your name appears on the other side of this Security.

  
									

 

The signature(s) should
be guaranteed by an eligible guarantor institution (banks, stockbrokers,
savings and loan associations and credit unions with membership in an approved
signature guarantee medallion program), pursuant to S.E.C. Rule 17Ad-15.

 

In connection with any transfer or exchange of any of
the Securities evidenced by this certificate occurring prior to the date that
is two years after the later of the date of original issuance of such
Securities and the last date, if any, on which such Securities were owned by
the Company or any Affiliate of the Company, the undersigned confirms that such
Securities are being:

 

CHECK ONE BOX BELOW:

 

1 ý                           acquired
for the undersigned’s own account, without transfer; or

 

2 ý                           transferred
to the Company; or

 

3 ý                           transferred
pursuant to and in compliance with Rule 144A under the Securities Act of 1933,
as amended (the “Securities Act”); or

 

4 ý                           transferred
pursuant to an effective registration statement under the Securities Act; or

 

A-7

 

5 ý                           transferred
pursuant to and in compliance with Regulation S under the Securities Act; or

 

6 ý                           transferred
to an institutional “accredited investor” (as defined in Rule 501(a)(1), (2),
(3) or (7) under the Securities Act), that has furnished to the Trustee a
signed letter containing certain representations and agreements (the form of
which letter appears as Section 2.7 of the Indenture); or

 

7 ý                           transferred
pursuant to another available exemption from the registration requirements of
the Securities Act of 1933.

 

Unless one of the boxes is checked, the Trustee will refuse to register
any of the Securities evidenced by this certificate in the name of any person
other than the registered Holder thereof; provided, however, that if box (5), (6) or
(7) is checked, the Trustee or the Company may require, prior to registering
any such transfer of the Securities, in their sole discretion, such legal
opinions, certifications and other information as the Trustee or the Company
may reasonably request to confirm that such transfer is being made pursuant to
an exemption from, or in a transaction not subject to, the registration
requirements of the Securities Act of 1933, such as the exemption provided by
Rule 144 under such Act.

 

 

	
   

  	
   

  
	
   

  	
  Signature

  
	
   

  	
   

  
	
  Signature Guarantee:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (Signature
  must be guaranteed)

  	
   

  
	
   

  	
  Signature

  
			

 

The signature(s) should be guaranteed by an eligible guarantor
institution (banks, stockbrokers, savings and loan associations and credit
unions with membership in an approved signature guarantee medallion program),
pursuant to S.E.C. Rule 17Ad-15.

 

TO BE COMPLETED BY PURCHASER IF (1) OR (3) ABOVE IS CHECKED.

 

The undersigned represents and warrants that it is
purchasing this Security for its own account or an account with respect to
which it exercises sole investment discretion and that it and any such account
is a “qualified institutional buyer” within the meaning of Rule 144A under the
Securities Act of 1933, as amended, and is aware that the sale to it is being
made in reliance on Rule 144A and acknowledges that it has received such
information regarding the Company as the undersigned has requested pursuant to
Rule 144A or has determined not to request such information and that it is
aware that the transferor is relying upon the undersigned’s foregoing
representations in order to claim the exemption from registration provided by
Rule 144A.

 

	
   

  	
   

  
	
  Dated:

  

 

A-8

 

[TO BE
ATTACHED TO GLOBAL SECURITIES]

 

SCHEDULE OF
INCREASES OR DECREASES IN GLOBAL SECURITY

 

The following increases or decreases in this Global
Security have been made:

 

	
  Date of

  Exchange

  	
   

  	
  Amount of

  decrease in

  Principal Amount

  of this Global

  Security

  	
   

  	
  Amount of

  increase in

  Principal Amount

  of this Global

  Security

  	
   

  	
  Principal

  Amount of

  this Global

  Security

  following such

  decrease or

  increase

  	
   

  	
  Signature
  of

  authorized

  signatory of

  Trustee or

  Securities

  Custodian

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

A-9

 

OPTION OF
HOLDER TO ELECT PURCHASE

 

If you want to elect to have this Security purchased
by the Company pursuant to Section 3.7 or 3.9 of the Indenture, check
either box:

 

	
  ý 

  	
   

  	
  ý

  
	
  3.7

  	
   

  	
  3.9

  

 

If you want to elect to have only part of this
Security purchased by the Company pursuant to Section 3.7 or 3.9 of the
Indenture, state the amount in principal amount (must be integral multiple of
$1,000): $

 

	
  Date:

  	
   

  	
   

  	
   

  	
  Your Signature

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  (Sign exactly as your name appears on the other side of the Security)

  
	
   

  	
   

  
	
  Signature Guarantee:

  	
   

  
	
   

  	
   

  
	
   

  	
  (Signature must be guaranteed)

  
								

 

The signature(s) should be guaranteed by an eligible guarantor
institution (banks, stockbrokers, savings and loan associations and credit
unions with membership in an approved signature guarantee medallion program),
pursuant to S.E.C. Rule 17Ad-15.

 

A-10

 

EXHIBIT B

 

[FORM OF FACE
OF REGISTERED NOTE]

 

[UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE
OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), NEW YORK, NEW YORK,
TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT,
AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN
SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY
PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR
VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED
OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

 

TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN
WHOLE, BUT NOT IN PART, TO NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR SUCH
SUCCESSOR’S NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL SECURITY SHALL BE LIMITED
TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN THIS
INDENTURE REFERRED TO ON THE REVERSE HEREOF.]

 

	
  No.  [   ]

  	
  Principal Amount  U.S.
  $[      ]

  
	
   

  	
   

  
	
   

  	
  CUSIP NO.

  

 

SHIP FINANCE
INTERNATIONAL LIMITED

 

81⁄2% Senior
Note due 2013

 

Ship Finance International Limited, an exempted
Bermuda company, promises to pay to
[        ], or registered assigns, the
principal sum of
[           ] Dollars,
on           , 2013.

 

Interest Payment Dates: June 15 and December 15

 

Record Dates: June 1 and December 1 preceding each
interest payment date

 

Additional provisions of this Security are set forth
on the other side of this Security.

 

B-1

 

	
   

  	
  SHIP FINANCE INTERNATIONAL

  LIMITED

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  

 

TRUSTEE’S CERTIFICATE OF

AUTHENTICATION

 

WILMINGTON TRUST COMPANY

as Trustee, certifies

that this is one of

the Securities referred

to in the Indenture.

 

	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  Authorized Signatory

  	
  Date:

  	
   

  
						

 

B-2

 

[FORM OF
REVERSE SIDE OF REGISTERED NOTE]

 

81⁄2% Senior
Notes due 2013

 

(1)                                  Interest

 

Ship Finance International Limited, an exempted
Bermuda company (such company, and its successors and assigns under the
Indenture hereinafter referred to, being herein called the “Company”), promises
to pay interest on the principal amount of this Security at the rate per annum
shown above, plus any Additional Interest specified in the Registration Rights
Agreement or Additional Amounts described in the Indenture.

 

The Company will pay interest semiannually on June 15
and December 15 of each year commencing June 15, 2004. Interest on the
Securities will accrue from the most recent date to which interest has been
paid on the Securities or, if no interest has been paid, from December 18,
2003. The Company shall pay interest on overdue principal or premium, if any (plus
interest on such interest to the extent lawful), at the rate borne by the
Securities to the extent lawful. Interest will be computed on the basis of a
360-day year of twelve 30-day months.

 

(2)                                  Method
of Payment

 

By no later than 10:00 a.m. (New York City time) on
the date on which any principal of or premium or interest on any Security is
due and payable, the Company shall irrevocably deposit with the Trustee or the
Paying Agent money sufficient to pay such principal, premium, if any, and/or
interest. The Company will pay interest (except Defaulted Interest) to the
Persons who are registered Holders of Securities at the close of business on
the June 1 or December 1 next preceding the interest payment date even if
Securities are cancelled, repurchased or redeemed after the record date and on
or before the interest payment date. Holders must surrender Securities to a
Paying Agent to collect principal payments. The Company will pay principal and
interest in money of the United States that at the time of payment is legal
tender for payment of public and private debts. Payments in respect of
Securities represented by a Global Security (including principal, premium, if
any, and interest) will be made by the transfer of immediately available funds
to the accounts specified by The Depository Trust Company. The Company will
make all payments in respect of a Definitive Security (including principal,
premium, if any, and interest) by mailing a check to the registered address of
each Holder thereof; provided, however, that payments on the
Securities may also be made, in the case of a Holder of a least $1,000,000
aggregate principal amount of Securities, by wire transfer to a U.S. dollar
account maintained by the payee with a bank in the United States if such Holder
elects payment by wire transfer by giving written notice to the Trustee or the
Paying Agent to such effect designating such account no later than 15 days
immediately preceding the relevant due date for payment (or such other date as
the Trustee may accept in its discretion).

 

(3)                                  Paying
Agent and Registrar

 

Initially, Wilmington Trust Company (the “Trustee”),
will act as Trustee, Paying Agent and Registrar. The Company may appoint and
change any Paying Agent, Registrar or

 

B-3

 

co-registrar without
notice to any Securityholder. The Company or any of its Restricted Subsidiaries
may act as Paying Agent, Registrar or co-registrar.

 

(4)                                  Indenture

 

The Company issued the Securities under an Indenture
dated as of December 18, 2003 (as it may be amended or supplemented from time
to time in accordance with the terms thereof, the “Indenture”), between the
Company and the Trustee. The terms of the Securities include those stated in
the Indenture and those made part of the Indenture by reference to the Trust
Indenture Act of 1939 (15 U.S.C. §§ 77aaa-77bbbb) as in effect on the date of
the Indenture (the “Act”). Capitalized terms used herein and not defined herein
have the meanings ascribed thereto in the Indenture. The Securities are subject
to all such terms, and Securityholders are referred to the Indenture and the
Act for a statement of those terms.

 

The aggregate principal amount of securities that may
be authenticated and delivered under the Indenture is unlimited. This Security
is one of the 81⁄2% Senior Notes due 2013 referred to in the Indenture. The
Securities include (i) $580,000,000 aggregate principal amount of the Company’s
81⁄2% Senior Notes due 2013 issued under the Indenture on December 18, 2003
(herein called “Initial Securities”), (ii) if and when issued, additional 81⁄2%
Senior Notes due 2013 of the Company that may be issued from time to time under
the Indenture subsequent to December 18, 2003 (herein called “Additional
Securities”) and (iii) if and when issued, the Company’s 81⁄2% Senior Notes due
2013 that may be issued from time to time under the Indenture in exchange for
Initial Securities or Additional Securities in an offer registered under the
Securities Act as provided in the applicable Registration Rights Agreement. The
Initial Securities, Additional Securities and Exchange Securities are treated
as a single class of securities under the Indenture.

 

To guarantee the due and punctual payment of the
principal, premium, if any, and interest on the Securities and all other
amounts payable by the Company under the Indenture and the Securities when and
as the same shall be due and payable, whether at Stated Maturity, by
acceleration or otherwise, according to the terms of the Securities and the
Indenture, the Subsidiary Guarantors unconditionally guarantee, jointly and
severally, such obligations on a senior basis pursuant to the terms of the
Indenture.

 

(5)                                  Optional
and Mandatory Redemption

 

The Securities are subject to both optional and
mandatory redemption, either as a whole or in some cases in part, at the times,
under the circumstances and at the redemption prices described in Article Five
of the Indenture.

 

(6)                                  Repurchase
Provisions

 

(a)                                  Upon
a Change of Control any Holder of Securities will have the right to cause the
Company to repurchase all or any part of the Securities of such Holder at a
purchase price in cash equal to 101% of the principal amount thereof, plus
accrued and unpaid interest, if any, to the date of repurchase (subject to the
right of Holders of record on the relevant record date to receive interest due
on the relevant interest payment date) as provided in, and subject to the terms
of, the Indenture.

 

B-4

 

(b)                                 In
the event of an Asset Disposition that requires the purchase of Securities
pursuant to Section 3.7(b) of the Indenture, the Company will be
required to apply such Excess Proceeds to the repayment of the Securities and
any Pari Passu Notes in accordance with the procedures set forth in Section
3.7 of the Indenture.

 

(7)                                  Denominations;
Transfer; Exchange

 

The Securities are in registered form without coupons
in denominations of principal amount of $1,000 and whole multiples of $1,000. A
Holder may transfer or exchange Securities in accordance with the Indenture.
The Registrar may require a Holder, among other things, to furnish appropriate
endorsements or transfer documents and to pay any taxes and fees required by
law or permitted by the Indenture.

 

(8)                                  Persons
Deemed Owners

 

The registered Holder of this Security may be treated
as the owner of it for all purposes.

 

(9)                                  Amendment,
Waiver

 

The Indenture or the Securities may be amended, and
certain defaults may be waived, each as provided in the Indenture.

 

(10)                            Trustee
Dealings with the Company

 

Subject to certain limitations set forth in the
Indenture, the Trustee under the Indenture, in its individual or any other
capacity, may become the owner or pledgee of Securities and may otherwise deal
with and collect obligations owed to it by the Company or its Affiliates and
may otherwise deal with the Company or its Affiliates with the same rights it
would have if it were not Trustee.

 

(11)                            No
Recourse Against Others

 

An incorporator, director, officer, employee, partner,
member, manager, stockholder or controlling person, as such, of each of the
Company, or any Subsidiary Guarantor shall not have any liability for any
obligations of the Company under the Securities, the Indenture or any
Subsidiary Guarantees or for any claim based on, in respect of or by reason of
such obligations or their creation. By accepting a Security, each
Securityholder waives and releases all such liability. The waiver and release
are part of the consideration for the issue of the Securities.

 

(12)                            Authentication

 

This Security shall not be valid until an authorized
signatory of the Trustee (or an authenticating agent acting on its behalf)
manually signs the certificate of authentication on the other side of this
Security.

 

B-5

 

(13)                            Abbreviations

 

Customary abbreviations may be used in the name of a
Securityholder or an assignee, such as TEN COM (= tenants in common), TEN ENT
(= tenants by the entirety), JT TEN (= joint tenants with rights of
survivorship and not as tenants in common), CUST (= custodian) and U/G/M/A (=
Uniform Gift to Minors Act).

 

(14)                            CUSIP
and ISIN Numbers

 

Pursuant to a recommendation promulgated by the
Committee on Uniform Security Identification Procedures the Company has caused
CUSIP and ISIN numbers to be printed on the Securities and has directed the
Trustee to use CUSIP and ISIN numbers in notices of redemption as a convenience
to Securityholders. No representation is made as to the accuracy of such
numbers either as printed on the Securities or as contained in any notice of
redemption and reliance may be placed only on the other identification numbers
placed thereon.

 

(15)                            Governing
Law

 

This Security shall be governed by, and construed in
accordance with, the laws of the State of New York.

 

(16)                            Additional
Information

 

The Company will furnish to any Securityholder upon
written request and without charge to the Securityholder a copy of the
Indenture.  Requests may be made to:

 

Ship Finance International Limited

Par-la-Ville Place, 14 Par-la-Ville Road,

Hamilton, HM 08, Bermuda

Attention: Chief Financial Officer

 

B-6

 

ASSIGNMENT
FORM

 

	
   

  	
  To assign this
  Security, fill in the form below:

  
	
   

  	
   

  
	
   

  	
  I or we assign and
  transfer this Security to

  
	
   

  
	
   

  
	
  (Print or type assignee’s name, address and zip code)

  
	
   

  
	
   

  
	
  (Insert assignee’s soc. sec. or tax I.D. No.)

  
	
   

  
	
  and irrevocably
  appoint                                         agent
  to transfer this Security on the books of the Company. The agent may
  substitute another to act for him.

  
	
   

  
	
  Date:

  	
   

  	
   

  	
  Your Signature:

  	
   

  
	
   

  
	
  Signature Guarantee:

  	
   

  	
   

  
	
  (Signature must be guaranteed)

  
	
   

  
	
   

  	
   

  
									

Sign exactly as your name
appears on the other side of this Security.

 

The signature(s) should be
guaranteed by an eligible guarantor institution (banks, stockbrokers, savings
and loan associations and credit unions with membership in an approved
signature guarantee medallion program), pursuant to S.E.C. Rule 17Ad-15.

 

B-7

 

[TO BE
ATTACHED TO GLOBAL SECURITIES]

 

SCHEDULE OF
INCREASES OR DECREASES IN GLOBAL SECURITY

 

The following increases or decreases in this Global
Security have been made:

 

	
  Date of

  Exchange

  	
   

  	
  Amount of

  decrease in

  Principal Amount

  of this Global

  Security

  	
   

  	
  Amount of

  increase in

  Principal Amount

  of this Global

  Security

  	
   

  	
  Principal

  Amount of

  this Global

  Security

  following such

  decrease or

  increase

  	
   

  	
  Signature
  of

  authorized

  signatory of

  Trustee or

  Securities

  Custodian

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

B-8

 

OPTION OF
HOLDER TO ELECT PURCHASE

 

If you want to elect to have this Security purchased
by the Company pursuant to Section 3.7 or 3.9 of the Indenture, check
either box:

 

	
  ý 

  	
   

  	
  ý

  
	
  3.7

  	
   

  	
  3.9

  

 

If you want to elect to have only part of this
Security purchased by the Company pursuant to Section 3.7 or 3.9 of the
Indenture, state the amount in principal amount (must be integral multiple of
$1,000): $

 

	
  Date:

  	
   

  	
   

  	
  Your Signature

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  (Sign exactly as your name appears on the other side of the Security)

  
	
   

  	
   

  
	
   

  	
   

  
	
  Signature Guarantee:

  	
   

  	
   

  
	
   

  	
  (Signature must be guaranteed)

  	
   

  
							

 

The signature(s) should be
guaranteed by an eligible guarantor institution (banks, stockbrokers, savings
and loan associations and credit unions with membership in an approved
signature guarantee medallion program), pursuant to S.E.C. Rule 17Ad-15.

 

B-9

 

EXHIBIT C

 

FORM OF SUPPLEMENTAL INDENTURE

 

This Supplemental Indenture, dated as
of                            (this
“Supplemental Indenture”), among [name of future Subsidiary Guarantor] (the “Guarantor”),
Ship Finance International Limited, a Bermuda exempted company, (together with
its successors and assigns, the “Company”), each other then existing Subsidiary
Guarantor under the Indenture referred to below, and Wilmington Trust Company,
a Delaware banking corporation, as Trustee under the Indenture referred to
below.

 

W I T N E S S E T H:

 

WHEREAS, the Company, the Subsidiary Guarantors and
the Trustee have heretofore executed and delivered an Indenture, dated as of
         , 2003 (as amended,
supplemented, waived or otherwise modified, the “Indenture”), providing for the
initial issuance of an aggregate principal amount of $580,000,000 of 81⁄2% Senior
Notes due 2013 of the Company (the “Securities”);

 

WHEREAS, Section 3.12 of the Indenture provides
that unless such Subsidiary has previously issued a Subsidiary Guarantee which
is then in full force and effect, the Company is required to cause each
Restricted Subsidiary created or acquired by the Company or one or more of its
Restricted Subsidiaries to execute and deliver to the Trustee a Supplemental
Indenture pursuant to which such Subsidiary will unconditionally Guarantee, on
a joint and several basis with the other Subsidiary Guarantors, the full and
prompt payment of the principal of, premium, if any, and interest on the
Securities on a senior basis; and

 

WHEREAS, pursuant to Section 9.1 of the
Indenture, the Trustee, the Company and the other Subsidiary Guarantors are
authorized to execute and deliver this Supplemental Indenture to amend the
Indenture, without the consent of any Securityholder;

 

NOW, THEREFORE, in consideration of the foregoing and
for other good and valuable consideration, the receipt of which is hereby
acknowledged, the Guarantor, the Company, the other Subsidiary Guarantors and
the Trustee mutually covenant and agree for the equal and ratable benefit of
the Holders of the Securities as follows:

 

ARTICLE I

 

Definitions

 

SECTION 1.1                          Defined Terms.  As used in this Supplemental Indenture,
terms defined in the Indenture or in the preamble or recital hereto are used
herein as therein defined. The words “herein,” “hereof” and “hereby” and other
words of similar import used in this Supplemental Indenture refer to this
Supplemental Indenture as a whole and not to any particular section hereof.

 

C-1

 

ARTICLE II

 

Agreement to be Bound; Subsidiary Guarantee

 

SECTION 2.1                          Agreement to be Bound.  The Guarantor hereby becomes a party to the
Indenture as a Subsidiary Guarantor and as such will have all of the rights and
be subject to all of the obligations and agreements of a Subsidiary Guarantor
under the Indenture. The Guarantor agrees to be bound by all of the provisions
of the Indenture applicable to a Subsidiary Guarantor and to perform all of the
obligations and agreements of a Subsidiary Guarantor under the Indenture.

 

SECTION 2.2                          Guarantee.  The Guarantor hereby fully, unconditionally
and irrevocably guarantees, as primary obligor and not merely as surety,
jointly and severally with each other Subsidiary Guarantor, to each Holder of
the Securities and the Trustee, the full and punctual payment when due, whether
at maturity, by acceleration, by redemption or otherwise, of the Obligations
pursuant to Article X of the Indenture on a senior basis.

 

ARTICLE III

 

Miscellaneous

 

SECTION 3.1                          Notices.  All notices and other communications to the
Guarantor shall be given as provided in the Indenture to the Guarantor, at its
address set forth below, with a copy to the Company as provided in the
Indenture for notices to the Company.

 

SECTION 3.2                          Parties.  Nothing expressed or mentioned herein is
intended or shall be construed to give any Person, firm or corporation, other
than the Holders and the Trustee, any legal or equitable right, remedy or claim
under or in respect of this Supplemental Indenture or the Indenture or any
provision herein or therein contained.

 

SECTION 3.3                          Governing Law.  This Supplemental Indenture shall be
governed by, and construed in accordance with, the laws of the State of New
York.

 

SECTION 3.4                          Severability Clause.  In case any provision in this Supplemental
Indenture shall be invalid, illegal or unenforceable, the validity, legality
and enforceability of the remaining provisions shall not in any way be affected
or impaired thereby and such provision shall be ineffective only to the extent
of such invalidity, illegality or unenforceability.

 

SECTION 3.5                          Ratification of Indenture;
Supplemental Indenture Part of Indenture. 
Except as expressly amended hereby, the Indenture is in all respects
ratified and confirmed and all the terms, conditions and provisions thereof
shall remain in full force and effect. This Supplemental Indenture shall form a
part of the Indenture for all purposes, and every Holder of Securities
heretofore or hereafter authenticated and delivered shall be bound hereby. The
Trustee makes no representation or warranty as to the validity or sufficiency of
this Supplemental Indenture.

 

C-2

 

SECTION 3.6                          Counterparts.  The parties hereto may sign one or more
copies of this Supplemental Indenture in counterparts, all of which together
shall constitute one and the same agreement.

 

SECTION 3.7                          Headings.  The headings of the Articles and the
Sections in this Supplemental Indenture are for convenience of reference only
and shall not be deemed to alter or affect the meaning or interpretation of any
provisions hereof.

 

C-3

 

IN WITNESS WHEREOF, the parties hereto have caused
this Supplemental Indenture to be duly executed as of the date first above
written.

 

 

	
   

  	
  [SUBSIDIARY GUARANTOR],

  
	
   

  	
  as a Subsidiary Guarantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  WILMINGTON TRUST COMPANY, as Trustee

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  SHIP FINANCE INTERNATIONAL LIMITED

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  [EXISTING SUBSIDIARY GUARANTORS

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:]

  

 

C-4Exhibit
10.1

 

17
FEBRUARY 2004

 

US$1,058,000,000

 

CREDIT FACILITY AGREEMENT

 

between

 

SHIP FINANCE
INTERNATIONAL LIMITED

as Borrower

 

CITIGROUP GLOBAL MARKETS LIMITED

 

and

 

NORDEA BANK NORGE ASA

as Bookrunners

 

CITIGROUP
GLOBAL MARKETS LIMITED, NORDEA BANK NORGE ASA,

FORTIS BANK (NEDERLAND) N.V., CRÉDIT AGRICOLE INDOSUEZ,

SKANDINAVISKA ENSKILDA BANKEN AB (PUBL.), DNB NOR BANK ASA, HSH

NORDBANK AG, SCOTIABANK EUROPE PLC, SWEDBANK

(FÖRENINGSSPARBANKEN AB (PUBL)), THE GOVERNOR AND COMPANY OF

THE BANK OF SCOTLAND, ING BANK N.V. (NORWAY), DEUTSCHE BANK AG

IN HAMBURG and SCHIFFSHYPOTHEKENBANK ZU LÜBECK AG

as Mandated Lead Arrangers

 

NORDEA BANK
NORGE ASA

as Administrative Agent

 

NORDEA BANK
NORGE ASA

as Security Trustee

 

THE ARRANGERS

 

THE ORIGINAL GUARANTORS

 

and

 

THE LENDERS

 

 

WHITE & CASE

 

7-11 Moorgate

London EC2R 6HH

 

 

TABLE OF CONTENTS

 

	
  1.

  	
  DEFINITIONS AND INTERPRETATION

  	
   

  
	
   

  	
   

  	
   

  
	
  2.

  	
  THE
  FACILITY

  	
   

  
	
   

  	
   

  	
   

  
	
  3.

  	
  CONDITIONS PRECEDENT

  	
   

  
	
   

  	
   

  	
   

  
	
  4.

  	
  DRAWDOWN

  	
   

  
	
   

  	
   

  	
   

  
	
  5.

  	
  REPAYMENT

  	
   

  
	
   

  	
   

  	
   

  
	
  6.

  	
  VOLUNTARY PREPAYMENT

  	
   

  
	
   

  	
   

  	
   

  
	
  7.

  	
  MANDATORY PREPAYMENT

  	
   

  
	
   

  	
   

  	
   

  
	
  8.

  	
  INTEREST ON ADVANCES

  	
   

  
	
   

  	
   

  	
   

  
	
  9.

  	
  MARKET DISRUPTION AND ALTERNATIVE INTEREST
  RATES

  	
   

  
	
   

  	
   

  	
   

  
	
  10.

  	
  COMMISSIONS AND FEES

  	
   

  
	
   

  	
   

  	
   

  
	
  11.

  	
  TAXES

  	
   

  
	
   

  	
   

  	
   

  
	
  12.

  	
  INCREASED
  COSTS

  	
   

  
	
   

  	
   

  	
   

  
	
  13.

  	
  ILLEGALITY

  	
   

  
	
   

  	
   

  	
   

  
	
  14.

  	
  MITIGATION

  	
   

  
	
   

  	
   

  	
   

  
	
  15.

  	
  REPRESENTATIONS AND WARRANTIES

  	
   

  
	
   

  	
   

  	
   

  
	
  16.

  	
  FINANCIAL INFORMATION

  	
   

  
	
   

  	
   

  	
   

  
	
  17.

  	
  FINANCIAL CONDITION

  	
   

  
	
   

  	
   

  	
   

  
	
  18.

  	
  INSURANCE

  	
   

  
	
   

  	
   

  	
   

  
	
  19.

  	
  COLLATERAL VESSELS

  	
   

  
	
   

  	
   

  	
   

  
	
  20.

  	
  COLLATERAL MAINTENANCE

  	
   

  
	
   

  	
   

  	
   

  
	
  21.

  	
  POSITIVE UNDERTAKINGS

  	
   

  
	
   

  	
   

  	
   

  
	
  22.

  	
  NEGATIVE UNDERTAKINGS

  	
   

  
	
   

  	
   

  	
   

  
	
  23.

  	
  ACCEDING GUARANTORS

  	
   

  
	
   

  	
   

  	
   

  
	
  24.

  	
  EVENTS OF DEFAULT

  	
   

  
	
   

  	
   

  	
   

  
	
  25.

  	
  DEFAULT INTEREST

  	
   

  
	
   

  	
   

  	
   

  
	
  26.

  	
  GUARANTEE AND INDEMNITY

  	
   

  
	
   

  	
   

  	
   

  
	
  27.

  	
  AGENT AND OBLIGORS’ AGENT

  	
   

  
	
   

  	
   

  	
   

  
	
  28.

  	
  BORROWER’S INDEMNITIES

  	
   

  
	
   

  	
   

  	
   

  
	
  29.

  	
  CURRENCY OF ACCOUNT

  	
   

  

 

i

 

	
  30.

  	
  PAYMENTSs

  	
   

  
	
   

  	
   

  	
   

  
	
  31.

  	
  SET-OFF

  	
   

  
	
   

  	
   

  	
   

  
	
  32.

  	
  SHARING AMONG THE FINANCE PARTIES

  	
   

  
	
   

  	
   

  	
   

  
	
  33.

  	
  CALCULATIONS AND ACCOUNTS

  	
   

  
	
   

  	
   

  	
   

  
	
  34.

  	
  ASSIGNMENTS AND TRANSFERS

  	
   

  
	
   

  	
   

  	
   

  
	
  35.

  	
  COSTS AND EXPENSES

  	
   

  
	
   

  	
   

  	
   

  
	
  36.

  	
  REMEDIES AND WAIVERS

  	
   

  
	
   

  	
   

  	
   

  
	
  37.

  	
  TAXATION AND STRUCTURAL MATTERS

  	
   

  
	
   

  	
   

  	
   

  
	
  38.

  	
  CONSEQUENTIAL DAMAGES

  	
   

  
	
   

  	
   

  	
   

  
	
  39.

  	
  NOTICES AND DELIVERY OF INFORMATION

  	
   

  
	
   

  	
   

  	
   

  
	
  40.

  	
  ENGLISH LANGUAGE

  	
   

  
	
   

  	
   

  	
   

  
	
  41.

  	
  PARTIAL INVALIDITY

  	
   

  
	
   

  	
   

  	
   

  
	
  42.

  	
  AMENDMENTS

  	
   

  
	
   

  	
   

  	
   

  
	
  43.

  	
  THIRD PARTY RIGHTS

  	
   

  
	
   

  	
   

  	
   

  
	
  44.

  	
  COUNTERPARTS

  	
   

  
	
   

  	
   

  	
   

  
	
  45.

  	
  GOVERNING
  LAW

  	
   

  
	
   

  	
   

  	
   

  
	
  46.

  	
  JURISDICTION

  	
   

  
	
   

  	
   

  	
   

  
	
  SCHEDULE
  1 LENDERS AND COMMITMENTS

  	
   

  
	
   

  	
   

  
	
  SCHEDULE
  2 FORM OF TRANSFER CERTIFICATE

  	
   

  
	
   

  	
   

  
	
  SCHEDULE
  3

  	
   

  
	
   

  	
  PART I - CONDITIONS PRECEDENT TO FIRST
  DRAWDOWN

  	
   

  
	
   

  	
  PART II - CONDITIONS TO EACH ACQUISITION

  	
   

  
	
   

  	
  PART III - FORM OF CORPORATE CERTIFICATE

  	
   

  
	
   

  	
  PART IV - INITIAL SECURITY DOCUMENTS

  	
   

  
	
   

  	
   

  	
   

  
	
  SCHEDULE
  4 FORM OF DRAWDOWN REQUEST

  	
   

  
	
   

  	
   

  	
   

  
	
  SCHEDULE
  5 FORM OF ACCESSION NOTICE

  	
   

  
	
   

  	
   

  	
   

  
	
  SCHEDULE
  6 FORM OF DIRECTORS’ COMPLIANCE CERTIFICATE

  	
   

  
	
   

  	
   

  	
   

  
	
  SCHEDULE
  7

  	
   

  
	
   

  	
  PART I - GROUP STRUCTURE

  	
   

  
	
   

  	
  PART II - COLLATERAL VESSELS

  	
   

  
	
   

  	
   

  	
   

  
	
  SCHEDULE
  8 FORM OF CONSOLIDATION NOTICE

  	
   

  
	
   

  	
   

  	
   

  
	
  SCHEDULE
  9 REPAYMENT

  	
   

  
				

 

ii

 

THIS
AGREEMENT is dated 17 February 2004 and made between:

 

(1)           SHIP FINANCE INTERNATIONAL LIMITED, a limited liability company incorporated under the laws of Bermuda
with its principal place of business at Par-la-Ville Place, 14 Par-la-Ville
Road, Hamilton, HM08, Bermuda  (the
“Borrower”);

 

(2)           CITIGROUP GLOBAL MARKETS LIMITED and NORDEA BANK NORGE ASA (each
a “Bookrunner” and together, the “Bookrunners”;

 

(3)           CITIGROUP GLOBAL MARKETS
LIMITED, NORDEA BANK NORGE ASA, FORTIS
BANK (NEDERLAND) N.V., CRÉDIT AGRICOLE INDOSUEZ, SKANDINAVISKA ENSKILDA BANKEN
AB (PUBL.), DNB NOR BANK ASA, HSH NORDBANK AG, SCOTIABANK EUROPE PLC, SWEDBANK
(FÖRENINGSSPARBANKEN AB (PUBL)), THE GOVERNOR AND COMPANY OF THE BANK OF
SCOTLAND, ING BANK N.V. (Norway), DEUTSCHE BANK AG IN HAMBURG and
SCHIFFSHYPOTHEKENBANK ZU LÜBECK AG (each a “Mandated Lead Arranger” and together, the “Mandated Lead  Arrangers”);

 

(4)           NORDEA BANK NORGE ASA (as
administrative agent for and on behalf of the Finance Parties, the “Administrative Agent”);

 

(5)           NORDEA BANK NORGE ASA (as
security trustee for and on behalf of the Finance Parties, the “Security Trustee”);

 

(6)           DANISH SHIP FINANCE (DANMARKS SKIBSKREDITFOND),
DEUTSCHE SCHIFFSBANK AKTIENGESELLSCHAFT, NIB CAPITAL BANK N.V. and VEREINS-UND
WESTBANK AG (each an “Arranger” and together, the “Arrangers”);

 

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

 

(8)           THE LENDERS (as
defined below).

 

IT
IS AGREED as follows:

 

1.             DEFINITIONS AND INTERPRETATION

 

1.1          Definitions

 

In this
Agreement the following terms have the meanings set out below.

 

“Acceding Guarantor” means any member of the
Group which has complied with the requirements of Clause 23 (Acceding
Guarantors).

 

 “Acceptable
Hedging Agreement”  means
a Hedging Agreement entered into on the terms of the International Swaps &
Derivatives Association Inc. 1992 Master Agreement (Multicurrency-Cross
Border).

 

1

 

“Accession Notice”  means a duly completed notice of accession in substantially
the form of Schedule 5 (Form of Accession Notice).

 

“Acquisition”  means the acquisition of a Collateral Vessel or a Collateral
Vessel Owner pursuant to one or more Acquisition Documents (including the acquisition
of each of the Collateral Vessel Owners for the time being incorporated in
Singapore or the Isle of Man (as at the date of this Agreement) by virtue of
the acquisition of Madeira International Corp. as the immediate Holding Company
of such Collateral Vessel Owners) provided that, to the extent that the
relevant Collateral Vessel Owner is a Subsidiary of the Borrower, no such
acquisition shall constitute an “Acquisition” until the Advance to be made in
respect of such Collateral Vessel has been made (taking into account the Seller
Credit Undertaking relating thereto).

 

“Acquisition Documents”  means the Fleet Purchase Agreement, each
other document entered into or to be entered into by a member of the Group in
relation to an Acquisition and any other document designated as an “Acquisition
Document” by the Administrative Agent in writing.

 

“Act”  means
the Companies Act 1985.

 

“Additional Acquisition” means the
acquisition of an Additional Vessel or an Additional Vessel Owner by the Group.

 

“Additional Projections” means such
additional financial projections (if any) as are required by the Administrative
Agent pursuant to Clause 3 (Conditions
Precedent) by way of supplement to the Projections, which (except as
otherwise permitted by the Administrative Agent) shall include the following:

 

(a)           detailed
projected consolidated financial statements of the Group, prepared and approved
by the Borrower:

 

(i)            covering
a period of at least ten fiscal years beginning with the first fiscal year
commencing 2004; and

 

(ii)           reflecting
the forecasted consolidated financial condition of the Group after giving
effect to the Transaction; and

 

(b)           detailed projected consolidated financial statements of the Parent
and the Charterer, prepared and approved by the Parent:

 

(i)            covering
a period of at least 5 fiscal years beginning with the first fiscal year
commencing 2004; and

 

(ii)           reflecting
the forecasted consolidated financial condition of the Parent and the Charterer
after giving effect to the Transaction,

 

in each case,
to the extent that such information and requirements are not so provided in the
Projections.

 

2

 

“Additional Vessel” means any double hull
oil tanker (excluding, for the avoidance of doubt, each Collateral Vessel)
acquired (wholly or partially) by a member of the Group from time to time
pursuant to and in accordance with Clause 22.3 (b) (Financial Indebtedness) and Clause 22.17 (Acquisitions and Investments) and the
other provisions of this Agreement.

 

“Additional Vessel Owner” means from time to
time, any person being the legal and registered owner of an Additional Vessel.

 

“Administrative Services Agreement” means
the administrative services agreement to be entered into on or around the date
of this Agreement between the Borrower, the Collateral Vessel Owners and the
Manager.

 

“Advance”  means
an advance (as from time to time reduced by repayment) made or to be made by
the Lenders under the Facility or arising in respect of the Facility under
Clause 8.3 (Consolidation
of Advances) or Clause 8.4 (Division
of Advances).

 

“Affiliate”means in relation to a person, any other person directly or
indirectly controlling, controlled by or under direct or indirect common
control with that person, and for these purposes “control” shall be construed
so as to include the ownership, either directly or indirectly and legally or
beneficially, of more than 50% of the issued share capital of a company or the
ability to control, either directly or indirectly, the affairs or the composition
of the board of directors (or equivalent of it) of a company and “controlling”,
“controlled by” and “under common control with” shall be construed accordingly.

 

“Agent’s Spot Rate of Exchange”  means, in relation to 2 currencies, the
Administrative Agent’s spot rate of exchange for the purchase of the
first-mentioned currency with the second-mentioned currency in the London
foreign exchange market at or about 11a.m. on a particular day.

 

“Annual Budget” has the meaning given to it
in Clause 16.2 (Annual Budget).

 

“Applicable Advance Amount” means in
relation to an Advance made or to be made to the Borrower pursuant to Clause
4.1 (Conditions to Drawdown) of
this Agreement in connection with an Acquisition, the applicable amount
appearing under the relevant heading in Part II of Schedule 7 (Collateral Vessels) in respect of the
relevant Collateral Vessel Owner.

 

“Applicable Outstanding Amount” in relation
to any Collateral Vessel at the relevant time, means the amount (determined by
the Administrative Agent) which is equal to:

 

(a)           the Applicable Advance Amount relating to such Collateral Vessel;
less

 

(b)           the aggregate of all Individual Repayment Instalments (if any) made
by the Borrower at such time in respect of such Collateral Vessel.

 

“Appraisal Criteria” means, in relation to
the preparation of any Appraisal Package, such Appraisal Package is prepared:

 

3

 

(a)           with or without a physical inspection of the relevant Collateral
Vessel (as the Administrative Agent may require);

 

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

 

(c)           after
deducting the estimated amount of the usual and reasonable expenses which would
be incurred in connection with such sale.

 

“Appraisal Package” means in respect of a
Collateral Vessel, the Initial Appraisal Package or if applicable, the most
recent Quarterly Appraisal Package or Updated Appraisal Package (as the case
may be), relating to such Collateral Vessel.

 

“Authorisation”  means an authorisation, consent, approval, resolution,
licence, exemption, filing, notarisation or registration.

 

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

 

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

 

(b)           in the
case of any proposed Advance, amount of any Advance which, pursuant to any
other Drawdown Request is to be made on or before the proposed Drawdown Date,

 

less the
amount of its share of the Advances made under this Agreement, provided always
that such amount shall not be less than zero.

 

“Available Facility”  means the aggregate amount of the
Available Commitments in respect of the Facility at the relevant time.

 

“Bankruptcy Code”  means Title 11 of the United States Code entitled
“Bankruptcy” as now or hereafter in effect, or any successor to it.

 

“Bareboat Charter Assignments” means  each of the assignment agreements entered
into or to be entered into by the relevant Collateral Vessel Owner in favour of
the Security Trustee in respect of an Existing Bareboat Charter.

 

“Borrower Account” means the account of the
Borrower maintained with (a) the Security Trustee under the number
6011.04.43636 or (b) another financial institution which has a rating of at
least A from Standard & Poor’s Ratings Services and at least A2 from
Moody’s Investor’s Services, Inc. (and which, in relation to (b), is otherwise
acceptable to the Administrative Agent (acting on the instructions of an Instructing
Group) and the Borrower).

 

“Break Costs”  means the amount (if any) by which:

 

4

 

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

 

exceeds:

 

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

 

“Business Day” means a day (other than a
Saturday or Sunday) on which banks generally are open for business in London,
Oslo and New York City.

 

“Cash”  means
any credit balances on any deposit, savings or current account with a bank,
Cash Equivalent Investments and cash in hand.

 

“Cash Equivalent Investment”  means:

 

(a)           debt
securities denominated in dollars issued or fully guaranteed or fully insured
by any state of the United States of America (or any agency of it) rated at
least A-1 by Standard & Poor’s Ratings Group and P-1 by Moody’s Investor
Services, Inc. and having maturities of 12 months or less from the date of
acquisition;

 

(b)           certificates
of deposit of, or time deposits or overnight bank deposits with, any commercial
bank whose short-term securities are rated at least A-1 by Standard and Poor’s
Rating Group and P-1 by Moody’s Investor Services, Inc. having maturities of 12
months or less from the date of acquisition;

 

(c)           commercial
paper of, or money market accounts or funds with or issued by, an issuer rated
at least A-1 by Standard & Poor’s Ratings Group and P-1 by Moody’s Investor
Services, Inc. and having an original tenor of 12 months or less;

 

(d)           medium
term fixed or floating rate notes of an issuer rated at least AA by Standard
& Poor’s Rating Group and/or Aa2 by Moody’s Investor Services, Inc. at the
time of acquisition and having a remaining term of 12 months or less from the
date of acquisition; and

 

(e)           is
secured in favour of the Security Trustee (except as otherwise agreed by an
Instructing Group).

 

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

 

5

 

“Change of Control” means the occurrence of
any event whereby two or more persons acting in concert or any individual
person acquires (to the extent not already acquired as at the date of this
Agreement):

 

(a)           legally
and/or beneficially and either directly or indirectly at least 50% of the
issued share capital of either the Borrower or the Parent; or

 

(b)           the
right or ability to control, either directly or indirectly, the affairs or
composition of the majority of the board of directors (or equivalent of it) of
either the Borrower or the Parent (as the case may be),

 

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

 

“Change in Tax Law”  means the introduction, implementation,
repeal, withdrawal or change in, or in the interpretation, administration or
application of any Law relating to taxation after the date of this Agreement.

 

“Charter Accounts” means the account of the
Charterer maintained (in respect of (x) the Charter Service Reserve Deposit and
(y) any charter hire paid pursuant to third party charters) with (a) the
Security Trustee under the number 6011.04.43628 and (b) (in respect of (x)
exclusively) each account maintained with another financial institution which
has a rating of at least A from Standard & Poor’s Ratings Services and at
least A2 from Moody’s Investor’s Services, Inc. and is subject to an Encumbrance
in favour of the Security Trustee in form and substance satisfactory to it.

 

“Charter Ancillary Agreement” means the
charter ancillary agreement to be entered into on or around the date of this
Agreement between the Borrower, the Parent, the Charterer and the Collateral
Vessel Owners.

 

“Charter Payment Deferral” means any
deferral of charter hire by the Charterer pursuant to and in accordance with
each of Article 3 (Deferral of Charter
Payments) of the Charter Ancillary Agreement and the Deed of
Undertaking.

 

“Charter Service Reserve Deposit” means the
portion of the amount comprising of Cash from time to time standing to the
credit of the Charter Accounts which has been deposited pursuant to Article 2.1
(Charter Service Reserve) of the
Charter Ancillary Agreement and which is to be maintained in accordance with
the Transaction Documents.

 

“Charterer” means Frontline Shipping
Limited, a special purpose company incorporated in Bermuda and a wholly-owned
Subsidiary of the Parent.

 

“Collateral Vessel” means any of the vessels
listed under the relevant heading in Part II of Schedule 7 (Collateral Vessels).

 

“Collateral Vessel Owner” means, from time
to time, any person being (or, pursuant to the Transaction, any person to be)
the legal and registered owner of a Collateral Vessel including, without
limitation, any Substitute Vessel Owner (and any reference to the Collateral
Vessel 

 

6

 

owned by such
Collateral Vessel Owner (where applicable) shall mean the Collateral Vessel to
be acquired by it pursuant to the Transaction).

 

“Collateral Vessel Security Documents” has
the meaning given to it in Part II of Schedule 3 (Conditions to each Acquisition).

 

“Collateral Maintenance Prepayment Amount”
has the meaning given to it in Clause 20.3 (Collateral
Maintenance Prepayment Amount).

 

“Collateral Maintenance Test” has the
meaning given to it in Clause 20.1 (Collateral
Maintenance Test).

 

“Commitment” means, in relation to a Lender
at any time, and save as otherwise provided in this Agreement, the amount set
opposite its name in Schedule 1 (Lenders and
Commitments) or as specified in the Transfer Certificate pursuant to
which such Lender becomes a party to this Agreement.

 

“Commercial Management Agreement” means the
commercial management agreement to be entered into on or around the date of
this Agreement between the Charterer and the Manager.

 

“Commercial Management Report” has the
meaning given to it in Clause 20.9 (Commercial
Management Reports).

 

“Compliance Certificate”  means a certificate substantially in the
form set out in Schedule 6 (Form of Directors’ Compliance Certificate).

 

“Compulsory Acquisition” means requisition
of title or other compulsory acquisition, requisition, appropriation,
expropriation, deprivation or confiscation for any reason of a Collateral
Vessel by any government or official authority or by any person or persons
purporting to be or to represent a government or official authority.

 

“Consolidated Current Assets” means all of
the current assets (other than credits receivable for corporation tax
(including unrelieved surplus advance corporation tax (and their equivalents in
any relevant jurisdiction, including any such taxes levied locally in such
jurisdiction), withholding tax or any other tax on income or gains suffered and
Interest receivable), in each case, at the relevant time.

 

“Consolidated Current Liabilities” means all
of the current liabilities (excluding the short-term portion of any long term
debt and any other Financial Indebtedness) and any accrued or unpaid Interest
and any liabilities in respect of corporation tax (and their equivalents in any
relevant jurisdiction including any such taxes levied locally in such
jurisdiction), and dividends, redemptions and other distributions payable by
members of the Group to persons not members of the Group, in each case, at the
relevant time.

 

“Consolidated Working Capital” means
Consolidated Current Assets minus Consolidated Current Liabilities, in each
case, at the relevant time.

 

“Consolidation Date” means the date falling
three months after the date of this Agreement.

 

7

 

“Consolidation Notice” means a notice signed
by an authorised signatory of the Borrower and delivered to the Administrative
Agent in accordance with Clause 8.3(b) (Consolidation
of Advances) substantially in the form of Schedule 8 (Form of Consolidation Notice).

 

“Corporate Governance Trigger” means the
occurrence of any event whereby the Parent ceases to own legally and/or
beneficially and either directly or indirectly at least 50% of the issued share
capital of the Borrower.

 

“Deed of Covenant” means the deed of
covenant entered into or to be entered into (if applicable) by a Collateral
Vessel Owner in relation to a Collateral Vessel pursuant to this Agreement.

 

“Deed of Undertaking” means the deed of
undertaking entered into on or around the date of this Agreement between the
Parent, the Borrower, the Charterer, the Manager, the Collateral Vessel Owners,
the Administrative Agent and the Security Trustee.

 

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

 

“Document of Compliance” has the meaning
given to it in the ISM Code.

 

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

 

“Drawdown Request”  means a duly completed notice in the form prescribed by
Schedule 4 (Form
of Drawdown Request).

 

“Earnings” means, in relation to any
Collateral Vessel, all moneys whatsoever which are now, or later become,
payable (actually or contingently) to any Collateral Vessel Owner or the Security
Trustee and which arise out of the use or operation of the relevant Collateral
Vessel, including (but not limited to) the following, save to the extent that
any of them is, with the prior written consent of the Administrative Agent,
pooled or shared with any other person:

 

(a)           all
freight, hire and passage moneys;

 

(b)           compensation
payable to the relevant Collateral Vessel Owner or the Security Trustee in the
event of requisition of that Collateral Vessel for hire;

 

(c)           remuneration for salvage and towage services;

 

(d)           demurrage
and detention moneys;

 

(e)           damages
for breach (or payments for variation or termination) of any charterparty or
other contract for the employment of that Collateral Vessel; and

 

(f)            all moneys which are at any time payable under any Insurances in
respect of loss of hire.

 

8

 

“Encumbrance”  means:

 

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

 

(b)           the security rights of a plaintiff under an action in rem; and

 

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

 

“Environment”  means living organisms including the ecological systems of
which they form part and the following media:

 

(a)           air
(including air within natural or man-made structures, whether above or below
ground);

 

(b)           water
(including territorial, coastal and inland waters, water under or within land
and water in drains and sewers); and

 

(c)           land
(including land under water).

 

“Environmental Claim”  means any administrative, regulatory or
judicial action, suit, demand, demand letter, claim, notice of non-compliance
or violation, investigation, proceeding, consent order or consent agreement
relating to any Environmental Law or Environmental Licence.

 

“Environmental Incident” means:

 

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

 

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

 

(c)           any
other incident in which Environmentally Sensitive Material is released
otherwise than from a Collateral Vessel and in connection with which a
Collateral Vessel is actually or potentially liable to be arrested and/or where
any Guarantor, the Manager (or any sub-manager of such Collateral Vessel) or any
of its officers, employees or other persons retained or instructed by it (or
such sub-manager) are at fault or allegedly at fault or otherwise liable to any
legal or administrative action.

 

9

 

“Environmental Law”  means all laws and regulations of any
relevant 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.

 

“Environmental Licence”  means any Authorisations required at any
time under Environmental Law.

 

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

 

“Equity Conversion” has the meaning given to
it in the Deed of Undertaking.

 

“Equity Ratio” means the ratio (expressed as
a percentage) of Shareholder Equity to Total Assets.

 

“Event of Default”  means any of the events or circumstances described as such in
Clause 24 (Events
of Default).

 

“Existing Bareboat Charters” means the
demise charter agreements executed and in effect as at the date of this
Agreement in respect of the ‘Navix Astral’, ‘New Vanguard’ ‘New Vista’ ‘Front
Comanche’ ‘Opalia’ and ‘Oscilla’ Collateral Vessels.

 

“Existing Time Charters” means the time
charter agreements executed and in effect as at the date of this Agreement in
respect of the ‘Front Breaker’, ‘Front Climber’, ‘Front Driver’, ‘Front
Guider’, ‘Front Leader’, ‘Front Rider’, ‘Front Striver’, ‘Front Viewer’, ‘Front
Brabant’ and ‘Front Comanche’ Collateral Vessels.

 

“Facility”means the term loan facility granted to the Borrower pursuant to
Clause 2.1 (The
Facility).

 

“Facility Office”  means:

 

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

 

10

 

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

 

“Fee Letters” means the fee letter dated 18
November 2003 addressed to the Parent from the Bookrunners and such other fee
letters relating to the Finance Documents from time to time provided to (and countersigned
by) the Borrower and/or the Parent by the Bookrunners, the Security Trustee
and/or the Administrative Agent.

 

“Finance Documents”  means:

 

(a)           this
Agreement, any Accession Notices, any Transfer Certificates and any Letter of
Accession;

 

(b)           the
Security Documents;

 

(c)           the
Security Trust Deed;

 

(d)           each
Hedging Agreement entered into pursuant to Clause 21.11 (Hedging);

 

(e)           the
Fee Letters;

 

(f)            the Deed of Undertaking;

 

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

 

(h)           any
other agreement or document designated as a “Finance Document” in writing by
the Administrative Agent.

 

“Finance Parties”  means the Bookrunners, the Administrative Agent, the Mandated
Lead Arrangers, the Arrangers, the Security Trustee, the Lenders and each Hedge
Counterparty and “Finance Party”
means any of them.

 

“Financial Indebtedness” means any
Indebtedness for or in respect of:

 

(a)           moneys
borrowed;

 

(b)           any
amount raised by acceptance under any acceptance credit facility;

 

(c)           any
amount raised pursuant to any note purchase facility or the issue of bonds,
notes, debentures, loan stock or any similar instrument;

 

(d)           any
redeemable preference shares;

 

(e)           the
amount of any liability in respect of any lease or hire purchase contract which
would, in accordance with GAAP, be treated as a finance or capital lease;

 

11

 

(f)            receivables
sold or discounted (other than any receivables to the extent they are sold on a
non-recourse basis);

 

(g)           accounts
payable in the ordinary course of trade which have been outstanding for more
than 120 days since their due date (other than any such amounts which are the
subject of a dispute which is actively being contested in good faith);

 

(h)           the
amount of any liability in respect of any purchase price for assets or services
the payment of which is deferred for a period in excess of 120 days in order to
raise finance or to finance the acquisition of those assets or services;

 

(i)            any
amount raised under any other transaction (including any forward sale or
purchase agreement) having the commercial effect of a borrowing;

 

(j)            any
derivative transaction entered into in connection with protection against or
benefit from fluctuation in any rate or price (and, when calculating the value
of any derivative transaction, only the marked to market value shall be taken
into account);

 

(k)           any
counter-indemnity obligation in respect of a guarantee, indemnity, bond,
standby or documentary letter of credit or any other instrument issued by a
bank or financial or other institution; and

 

(l)            the
amount of any liability in respect of any guarantee or indemnity for any of the
items referred to in paragraphs (a) to (k) above.

 

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

 

“Fleet Purchase Agreement” means the fleet
purchase agreement dated 11 December 2003 entered into between the Parent and
the Borrower in relation to the Acquisitions.

 

“GAAP”  means
in relation to an Obligor or any financial statement of an Obligor, generally
accepted accounting principles in the United States of America.

 

“General Assignment” means each general assignment
entered into or to be entered into pursuant to this Agreement between the
Charterer and a Collateral Vessel Owner in relation to a Collateral Vessel
(including the documents referred to in paragraph 1 under Part IV of Schedule 3
(Initial
Security Documents)).

 

“Group”  means
the Borrower and each of its direct or indirect Subsidiaries from time to time.

 

“Group Business”  means the commercial business or activity of the Borrower and
the Group, being the ownership, chartering out and operation of single and
double hull crude oil tankers.

 

“Group Structure Chart” means the group
structure chart set out in Part I of Schedule 7 (Group Structure).

 

12

 

“Guaranteed Obligations” means the aggregate
of all amounts from time to time due and payable by the Guarantors or any of
them to the Finance Parties or any of them pursuant to Clause 26 (Guarantee and Indemnity).

 

“Guarantors”  means the Original Guarantors and any Acceding Guarantors and
“Guarantor” means any one of them,
as the context requires.

 

“Hedge Counterparty”  means each Lender which is a party to an
Acceptable Hedging Agreement pursuant to and in accordance with Clause 21.11 (Hedging) and “Hedge Counterparties” means all such Lenders.

 

“Hedging Agreement”  means any agreement in respect of an
interest rate swap, currency swap, forward foreign exchange transaction, cap,
floor, collar or option transaction or any other treasury transaction or any
combination of it or any other transaction entered into in connection with the
protection against or benefit from fluctuation in any rate or price.

 

“Holding Company”  means a company or corporation of which another company or
corporation is a Subsidiary.

 

“Increased Cost”  means:

 

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

 

(b)           any
additional or increased cost; or

 

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

 

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

 

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

 

“Individual Collateral Value” has the
meaning given to it in Clause 20.4 (Valuation
of Collateral Vessels).

 

“Individual Repayment Instalment” in
relation to a Collateral Vessel (to the extent that an Advance has been made in
respect of such Collateral Vessel), means each of the quarterly repayment
amounts (numbered 1 to 24 (or less, if applicable)) set opposite such
Collateral Vessel in Schedule 9 (Repayment),
being an amount which is to fall due from time to time under Clause 5.1 (Repayment) as a portion of each Repayment
Instalment.

 

“Initial Appraisal Package” means, in relation to each of the
Collateral Vessels, an appraisal prepared in accordance with the Appraisal
Criteria and confirmed in writing by three independent first class shipbrokers
appointed or approved by the Administrative Agent as to 

 

13

 

inter alia the fair market value of the
relevant Collateral Vessel as at the date of each such written confirmation.

 

“Initial Borrowing Date”  means the first Drawdown Date on which an
Advance is made to the Borrower under this Agreement.

 

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

 

“Instructing Group”  means:

 

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

 

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

 

“Insurance Report and Certificate” means, in
relation to a Collateral Vessel (a) a report prepared by Marsh Marine &
Energy AS confirming inter alia
full details of the Insurance in place for such Collateral Vessel, the identity
of each insurance company, underwriter and/or club providing such Insurance and
further confirming that such Insurance is consistent with the terms of the
Mortgage and Deed of Covenant and/or the General Assignment (as applicable)
entered into or to be entered into in relation to such Collateral Vessel
pursuant to this Agreement, as well as (in each case) the terms of Clause 18 (Insurance) and (b) a certificate signed by
an authorised signatory of Marsh Marine & Energy AS confirming (in its
professional judgement) that the contents of such report is accurate and that
adequate Insurance is in place in respect of the relevant Collateral Vessel.

 

“Insurances” means, in relation to any
Collateral Vessel:

 

(a)           all
policies and contracts of insurance, including entries of that Collateral
Vessel in any protection and indemnity or war risks association, which are
effected in respect of that Collateral Vessel, its Earnings or otherwise in
relation to it; and

 

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

 

“Intellectual Property Rights”  means any patent, trade mark, service
mark, registered design, trade name or copyright or any license to use any of
the same.

 

“Interest”means:

 

(a)           interest
and amounts in the nature of interest accrued in respect of any Financial
Indebtedness;

 

14

 

(b)           discounts
suffered and repayment premiums payable in respect of Financial Indebtedness,
in each case to the extent GAAP requires that such discounts and premiums be
treated as or in like manner to interest;

 

(c)           discount
fees and acceptance fees payable or deducted in respect of any Financial
Indebtedness (including all fees payable in connection with any letters of
credit or guarantees);

 

(d)           any
other costs, expenses and deductions of the like effect and any net payment
(or, if appropriate in the context, receipt) under any Hedging Agreement or
like instrument, taking into account any premiums payable for the same, and the
interest element of any net payment under any Hedging Agreement; and

 

(e)           commitment
and non-utilisation fees (including, without limitation, those payable under
this Agreement) but excluding agent’s fees, front-end, management, arrangement
and participation fees and repayment premia with respect to any Financial
Indebtedness (including, without limitation, all those payable under the
Finance Documents) and any up-front premium or front-end fee payable in connection
with any Hedging Agreement entered into with a Hedge Counterparty pursuant to
Clause 21.11 (Hedging).

 

“Interest Payment Date” has the meaning
given to it in Clause 8.5 (Payment of
Interest for Advances).

 

“Interest Period”  means, save as otherwise provided in this Agreement, any of
those periods mentioned in Clause 8.1 (Interest Periods for Advances).

 

“ISM Code” means the International Safety
Management Code (including the guidelines on its implementation), adopted by
the International Maritime Organisation Assembly as Resolutions A.741 (18) and
A.788 (19), as the same may be amended or supplemented from time to time.

 

“Joint Venture”  means any joint venture, partnership or similar arrangement
that is not a member of the Group.

 

“Law”  means:

 

(a)           common
or customary law;

 

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

 

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

 

“Lender”  means
a person which:

 

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

 

15

 

(b)           has
become a party to this Agreement in accordance with the provisions of Clause 34
(Assignments
and Transfers),

 

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

 

“Letter of Accession” has the meaning given
to it in the Deed of Undertaking.

 

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

 

(a)           the
rate per annum which appears on the Relevant Page for such period at or about
11.00 am on the Quotation Date for such period; or

 

(b)           if no
such rate is displayed and the Administrative Agent shall not have selected an
alternative service on which such rate is displayed, the arithmetic mean
(rounded upwards, if not already such a multiple, to the nearest 5 decimal
places) of the rates (as notified to the Administrative Agent) at which each of
the Reference Banks was offering to prime banks in the London interbank market
deposits in dollars for such period at or about 11.00 am on the Quotation Date
for such period.

 

“Loss or Sale Prepayment Amount” means an
amount equal to the greater of:

 

(a)              the Applicable Outstanding Amount relating to such Acquisition; and

 

(b)              the Outstandings at such time multiplied by the applicable fraction,

 

in either
case, up to a maximum amount equal to the Outstandings at the relevant time and
for the purposes of this definition, “applicable
fraction” at such time means the Individual Collateral Value of the
relevant Collateral Vessel divided by the Total Collateral Value.

 

“Major Casualty” means, in relation to any
Collateral Vessel, any casualty to that Collateral Vessel in respect of which
the claim or the aggregate of the claims against all insurers, before
adjustment for any relevant franchise or deductible, exceeds $2,000,000 or the equivalent in any
other currency.

 

“Management Agreement” means each of the
management agreements entered into or to be entered into in relation to a
Collateral Vessel between the Manager and the relevant Collateral Vessel Owner
comprising of a ‘Shipman 98’ Baltic and
International Maritime Council standard ship management agreement together with
the riders attached thereto.

 

“Manager” means Frontline Management
(Bermuda) Ltd. a company incorporated in Bermuda and a wholly-owned Subsidiary
of the Parent.

 

“Margin”  means
1.25% per annum.

 

“Material Adverse Effect” means a material
adverse effect on:

 

16

 

(a)           the validity or enforceability of any of the Transaction Documents
or the rights or remedies of the Finance Parties under the Transaction
Documents;

 

(b)           the ability of the Parent or any other member of the Parent Group to
perform their obligations in respect of the Transaction; or

 

(c)           the business, property, assets, nature of assets, operations,
liabilities, condition (financial or otherwise) or prospects of the Parent or
any member of the Parent Group.

 

“Maturity Date” means the sixth anniversary
of the date of this Agreement.

 

“Member State” means a member of the
European Community.

 

“Mortgage” means, in relation to any
Collateral Vessel, the first priority ship mortgage on that Collateral Vessel
entered into or to be entered into by the relevant Obligor pursuant to and in
accordance with this Agreement.

 

“Necessary Authorisations”  means all Authorisations (including any
competition and other clearances necessary in relation to the Acquisitions and
Environmental Licences) of any person including any government or other
regulatory authority required by applicable Law to enable it to:

 

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

 

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

 

(c)           carry
on its business from time to time,

 

in each case, in
relation to which any applicable waiting periods have expired, as determined by
the Administrative Agent, except to the extent that any permitted action by the
relevant person during such waiting period would not, in the opinion of the
Administrative Agent, have a Material Adverse Effect.

 

“Net Worth” at any time, means the aggregate
of:

 

(a)           the
amount paid up or credited as paid up in respect of the issued share capital of
the Borrower; and

 

(b)           the
aggregate amount of the consolidated reserves (including retained earnings) of
the Borrower,

 

but
adjusted by:

 

(i)            adding
any credit balance on the profit and loss account of the Borrower contained in
the most recent financial statements of the Borrower delivered under 

 

17

 

this
Agreement (to the extent not included in paragraph (b) above) or, as the case
may be, deducting any debit balance on such profit and loss account;

 

(ii)           deducting any dividend or other distribution declared, recommended
or made by the Borrower out of profits earned up to and including the date of
the latest financial statements of the Borrower to the extent that such
distribution is not provided for in such financial statements;

 

(iii)         deducting
to the extent included any amounts in respect of goodwill or other intangible
assets;

 

(iv)          deducting
any loans (or any other transactions of any kind having the commercial effect
of lending) to any person;

 

(v)            excluding
to the extent included any amount by which the net book value of any asset of
the Borrower has been written up after the date of the most recent financial
statements delivered by the Borrower under this Agreement by way of a
revaluation;

 

(vi)          reflecting
any variation since the date of the latest financial statements of the Borrower
delivered under this Agreement in the amount paid up or credited as paid up on
the issued share capital of the Borrower and in the consolidated reserves of
the Borrower (other than in the profit and loss account of the Borrower
contained in such financial statements); and

 

(vii)         excluding the amount paid up or credited as paid up on any share
capital of the Borrower which is redeemable or may on the occurrence of certain
events be redeemable prior to the Maturity Date, and excluding any element of
consolidated reserves attributable to such share capital,

 

but so that no
amount shall be included or excluded more than once in the same calculation,
and, for the avoidance of doubt, no account shall be taken of any amount set
aside for taxation purposes.

 

“Obligors”means the Borrower and the Guarantors and “Obligor” means any of them.

 

“Obligors’ Agent”  means the Borrower in its capacity as agent for the Obligors,
pursuant to Clause 27.16 (Obligors’ Agent).

 

“Offering Memorandum” means the final form
offering memorandum relating to the Senior Notes dated 11 December 2003.

 

“Original Financial Statements”  means in relation to the Group:

 

(a)           the
audited predecessor combined carve-out financial statements relating to it for
the fiscal years ended 31 December 2002, 2001 and 2000;

 

18

 

(b)           the
unaudited predecessor combined carve-out financial statements relating to it
for the six months ended 30 June 2003 and 2002; and

 

(c)           the
Projections and any Additional Projections.

 

“Original Guarantors” means Madeira
International Corp. and each of the Collateral Vessel Owners.

 

“Original Obligors”  means the Borrower and the Original
Guarantors.

 

“Other Management Agreement” in relation to
a Collateral Vessel being the subject of an Existing Time Charter or a Relevant
Bareboat Charter, means the management agreement entered into or to be entered
into by the relevant Collateral Vessel Owner pursuant to which such Collateral
Vessel is for the time being managed or is to be managed.

 

“Outstandings” means, at any time, the
aggregate principal amount of the Advances outstanding under this Agreement.

 

“Parent” means Frontline Ltd., a company
incorporated in Bermuda, being the owner of the entire issued share capital of
each of the Borrower, the Charterer and the Manager, as at the date of this
Agreement.

 

“Parent Group” means the Parent, the
Manager, the Charterer, the Group and any other direct or indirect Subsidiaries
of the Parent.

 

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

 

“Performance Guarantee” means the
performance guarantee to be entered into on or around the date of this
Agreement by the Parent as guarantor in relation to the Transaction.

 

“Permitted Capital Payment” means the
payment of a dividend or distribution (including by way of an issue of shares
to one or more existing shareholders of the Borrower) or a payment in respect
of capital expenditure, in each case, by the Borrower where (x) such payment is
made in the absence of a Default and would not itself give rise to a Default
(y) any amounts deferred in respect of the Charter Payment Deferral have been
received by the Group and (z) at the time of the relevant payment:

 

(a)           where such payment is effected prior to a Successful Listing:

 

(i)            the
Charter Service Reserve Deposit is in excess of $100,000,000 and will continue
to be immediately following the making of such payment; and

 

(ii)           the Group (on a consolidated basis) has an Equity Ratio of at least
30% and will continue to have immediately following the making of such payment;

 

(b)           where such payment is effected immediately upon completion of a
Successful Listing:

 

19

 

(i)            such payment is a one-time payment (in the case of a dividend or
distribution payment to the shareholders of record immediately prior to such
Successful Listing);

 

(ii)           the
Charter Service Reserve Deposit is at least $250,000,000 and will continue to
be immediately following the making of such payment;

 

(iii)         the Net
Worth of the Borrower is in excess of $528,900,000 and will continue to be
immediately following the making of such payment; and

 

(iv)          the
Group (on a consolidated basis) has an Equity Ratio of at least 24.2% and will
continue to have immediately following the making of such payment; and

 

(c)           where
such payment and/or share issue is effected on or after a Successful Listing
and after any payment made pursuant to paragraph (b) above, the aggregate of
(x) the Cash freely available to the Group and (y) the Charter Service Reserve
Deposit is in excess of $100,000,000 and will continue to be immediately following
the making of such payment,

 

provided that,
prior to any such payment, the Borrower has provided to the Administrative
Agent a certificate in form and substance satisfactory to the Administrative
Agent signed by the chief financial officer of the Borrower confirming
compliance by the Borrower with each of the foregoing conditions (to the extent
applicable) in relation to such payment (and compliance by the Group with
Clause 17.1 (Financial Condition)
in respect of the date of such certificate and immediately following the
relevant payment).

 

“Permitted Encumbrances” means:

 

(a)           each
of the Encumbrances created pursuant to the Security Documents;

 

(b)           an Encumbrance in respect of any Additional Vessel (including its
earnings and insurances) securing Indebtedness assumed by any Obligor (and/or
the relevant Additional Vessel Owner where it has yet to become an Acceding
Guarantor, if applicable) in respect of the acquisition of such Additional
Vessel, as contemplated under Clause 22.4 (c) (Guarantees);

 

(c)           liens in respect of a Collateral Vessel for unpaid master’s or
crew’s wages in accordance with usual maritime practice;

 

(d)           liens in respect of a Collateral Vessel for salvage;

 

(e)           liens arising by operation of law for not more than 2 months’ prepaid
hire under any charter relating to a Collateral Vessel (to the extent that such
charter is permitted in accordance with this Agreement);

 

(f)            liens
for master’s disbursements incurred in the ordinary course of trading and any
other lien arising by operation of law or otherwise in the ordinary course of
the operation, repair or maintenance of a Collateral Vessel, provided such
liens do not secure amounts 

 

20

 

more
than 30 days overdue (unless the overdue amount is being disputed by the
Guarantor who is the owner of such Collateral Vessel in good faith by
appropriate steps);

 

(g)           any Encumbrance created in favour of a plaintiff or defendant in any
proceedings or arbitration as security for costs and expenses where the
relevant Guarantor is actively prosecuting or defending such proceedings or
arbitration in good faith; and

 

(h)           Encumbrances arising by operation of law in respect of taxes which
are not overdue for payment or in respect of taxes being disputed in good faith
by appropriate steps and in respect of which appropriate reserves have been
made.

 

“Permitted Listing” means a sale of all or a
portion of the share capital of the Borrower or the payment of a dividend to
any existing shareholders of the Borrower by way of a share issue, in each
case, pursuant to a public offering on the New York Stock Exchange in
accordance with Clause 21.7 (Listing),
on terms which have been the subject of the prior approval of the
Administrative Agent (acting on the instructions of an Instructing Group).

 

“Pertinent Document” means:

 

(a)           any
Finance Document;

 

(b)           any policy or contract of insurance contemplated by or referred to
in Clause 18 (Insurance) or any
other provision of the Finance Documents;

 

(c)           any
other document contemplated by or referred to in any Finance Document; and

 

(d)           any
document which has been or is at any time sent by or to a Finance Party in
contemplation of or in connection with the Transaction or under any policy,
contract or document falling within paragraphs (b) or (c) above.

 

“Pertinent Matter” means:

 

(a)           any
transaction or matter contemplated by, arising out of, or in connection with a
Pertinent Document; or

 

(b)           any
statement relating to a Pertinent Document or to a transaction or matter falling
within paragraph (a) above,

 

and which
covers any such transaction, matter or statement, whether entered into, arising
or made at any time prior to or on the date of this Agreement or thereafter.

 

“Projections” means the detailed
consolidated financial projections relating to the Group, the Parent and the
Charterer, in the form most recently delivered to the Administrative Agent
prior to the date of this Agreement.

 

“Proportion”  in respect of a Lender, means:

 

21

 

(a)           in the
case of an Advance to be made under this Agreement, the proportion borne by
such Lender’s Available Commitment to the Available Facility;

 

(b)           in the
case of an Advance or Advances outstanding under this Agreement, the proportion
borne by such Lender’s share of the amount of such Advance or Advances to the
total amount thereof;

 

(c)           if
paragraph (a) does not apply and there are no Outstandings, the proportion
borne by such Lender’s Available Commitment to the Available Facility (or if
the Available Facility is then zero, by its Available Commitment to the
Available Facility immediately prior to its reduction to zero); and

 

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

 

“Prospective Bareboat Charters” means the
demise charter agreements due to be executed on or around 31 March 2004 in
respect of the ‘New Circassia’, ‘Opalia’, ‘Front Commerce’ and ‘Hakata’
Collateral Vessels.

 

“Protected Party”  means a Finance Party or any Affiliate of a Finance Party
which is or will be, subject to any Tax Liability in relation to any amount
payable under or in relation to a Finance Document.

 

“Purchase Price”  means in relation to a Collateral Vessel, the amount referred
to under the relevant heading in Part II of Schedule 7 (Collateral Vessels).

 

“Quarter Date”  means any of 31 March, 30 June, 30 September and 31 December.

 

“Quarterly Appraisal Package” means, in relation to a
Collateral Vessel, an appraisal prepared in accordance with the Appraisal
Criteria and confirmed in writing by three independent first class shipbrokers
appointed or approved by the Administrative Agent as to inter alia the fair market value of the
relevant Collateral Vessel as at the date of each such written confirmation.

 

“Quotation Date”  means, in relation to any currency and any period for which
an interest rate is to be determined, 2 Business Days before the first day of
that period,

 

 “Reference
Banks”  means the
principal London offices of Citibank, N.A., Deutsche Bank AG and Credit
Agricole Indosuez or such other bank or banks as may be appointed as such by
the Administrative Agent.

 

“Relevant Bareboat Charters” means the
Existing Bareboat Charters and the Prospective Bareboat Charters.

 

“Relevant Page”  means the page of the Reuters or Telerate screen on which is
displayed BBA LIBOR for dollars, or, if such page or service shall cease to be
available, such other page or service which displays the London interbank
offered rates for dollars as the Administrative Agent, after consultation with
the Lenders, shall select.

 

22

 

“Repayment Date” means each of the dates
specified in Clause 5.1 (Repayment) as a Repayment Date in respect
of the Outstandings.

 

“Repayment Instalment” has the meaning given
to it in Clause 5.1 (Repayment).

 

“Reports”  means:

 

(a)           each
Insurance Report and Certificate;

 

(b)           the
Appraisal Packages; and

 

(c)           each
Commercial Management Report (if any).

 

“Safety Management Certificate” has the
meaning given to it in the ISM Code.

 

“Security Documents”  means:

 

(a)           the
Initial Security Documents (and any General Assignment in addition to those
referred to in paragraph 1 under Part IV of Schedule 3 (Initial Security Documents)),
each Collateral Vessel Security Document, each Deed of Covenant, each
Tripartite Agreement and each Bareboat Charter Assignment;

 

(b)           any
other document (executed at any time) conferring or evidencing any Encumbrance,
guarantee or other assurance against financial loss for, or in respect of, any
of the obligations of the Obligors under this Agreement (including but not
limited to any security document (or if applicable, tripartite or other
subordination agreement) entered into pursuant to Clause 18.16(b) (Bareboat Charter Insurance), Clause
19.1(a)(ii) (Collateral Vessels’ Names and
Registration), Clause 19.13(b) (Restrictions
on Chartering and Appointment of Managers), Clause 21.14 (Further Assurance), Clause 22.7(c) (Disposals), Clause 22.19(a) (Bank Accounts) or Clause 23(a) (Acceding Guarantors); and

 

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

 

“Security Trust Deed” means the security
trust deed dated on or around the date of this Agreement entered into between inter alia the Borrower and the Security
Trustee.

 

“Seller Credit Undertaking” has the meaning
given to it in the Deed of Undertaking.

 

“Senior Note Default” means an event of
default (however described and subject to any applicable grace periods) under
the Senior Note Documents.

 

“Senior Note Documents” means:

 

(a)           the
Offering Memorandum;

 

(b)           the
Senior Note Indenture;

 

23

 

(c)           the Senior Note Purchase Agreement;

 

(d)           the Senior Notes;

 

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

 

(f)            any other agreement or document designated as a “Senior Note
Document” in writing by the Administrative Agent.

 

“Senior Notes” means the senior unsecured
notes due 2013 constituted by the Senior Note Indenture issued by the Borrower
in relation to the Transaction.

 

“Senior Note Indenture” means the note
indenture entered into by the Borrower and dated 18 December 2003 relating to
the Senior Notes.

 

“Senior Note Purchase Agreement” means the
senior note purchase agreement entered into by inter
alia the Borrower on 11
December 2003 relating to the Senior Notes.

 

“Shareholder Equity” means any Indebtedness outstanding at the
relevant time issued by the Borrower to one or more of its shareholders that is
fully subordinated, whether by law, pursuant to contract or otherwise (or by a
combination of the same) in right of payment to the rights of the Finance
Parties under the Finance Documents.

 

“Subsidiary”  of a company or corporation means any company or corporation:

 

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

 

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

 

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

 

“Substitute
Vessel Owner” has the meaning given to it in Clause 23(a) (Acceding Guarantors).

 

“Successful Listing” means one or more Permitted Listings
representing in aggregate at least 20% of the share capital of the Borrower.

 

“Tax Credit”  means a credit against, relief or remission for, or repayment
of any tax.

 

“Tax Deduction”  means a deduction or withholding for or on account of tax
from a payment made or to be made under a Finance Document.

 

“Taxes Act”means the Income and Corporation Taxes Act 1988.

 

“Tax Liability”  has the meaning set out in paragraph (e) of Clause 11.2 (Tax
Indemnity).

 

24

 

“Tax Payment”  means the increase in any payment made by an Obligor to a
Finance Party under paragraph (c) of Clause 11.1 (Tax Gross-up) or any amount
payable under paragraph (d) of Clause 11.1 (Tax
Gross-up) or under Clause 11.2 (Tax Indemnity).

 

“Termination Date”  means the earlier of the date which is:

 

(a)           the
Consolidation Date;

 

(b)           the
first Business Day (if any) on which the Available Commitment of each of the
Lenders in respect of the Facility is zero;

 

(c)           the first Business Day (if any) on which the Group is the owner of
each of the forty seven Collateral Vessels; and

 

(d)           the
date (if any) on which this Agreement and the Facility is terminated by the
mutual agreement of each of the parties to this Agreement,

 

in each case,
as determined by the Administrative Agent by notice to the Borrower under
Clause 4.2 (Notification of Termination Date) (in respect of
paragraph (c), following consultation with the Security Trustee and the
Borrower).

 

“Termination Date Notice” has the meaning
given to it in Clause 4.2 (Notification of
Termination Date).

 

“Time Charter Parties” means each of the time charter parties entered into or to
be entered into between the Charterer and the relevant Collateral Vessel Owner
pursuant to this Agreement in relation to the applicable Collateral Vessel.

 

“Total Assets” means the aggregate book
value of all assets (both tangible and intangible) owned by the Group and/or
any member of it at the relevant time.

 

“Total Collateral Value” means the aggregate
of all Individual Collateral Values at the relevant time.

 

“Total Loss” means, in relation to any
Collateral Vessel:

 

(a)           actual, constructive, compromised, agreed or arranged total loss of
such Collateral Vessel;

 

(b)           any
expropriation, confiscation, requisition or acquisition of such Collateral
Vessel, whether for full consideration, a consideration less than its proper
value, a nominal consideration or without any consideration, which is effected
by any government or official authority or by any person or persons claiming to
be or to represent a government or official authority, (excluding a requisition
for hire for a fixed period not exceeding 1 year without any right to an
extension) unless it is within 1 month redelivered to the full control or the
relevant Collateral Vessel Owner; or

 

25

 

(c)           any arrest, capture, seizure or detention of such Collateral Vessel
(including any hijacking or theft) unless it is within 2 months of such
incident redelivered to the full control of the relevant Collateral Vessel
Owner.

 

“Total Loss Date” means, in relation to any
Collateral Vessel:

 

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

 

(b)           in the
case of a constructive, compromised, agreed or arranged total loss of such
Collateral Vessel, the earlier of:

 

(i)            the
date on which a notice of abandonment is given to any insurers of such
Collateral Vessel; and

 

(ii)           the
date of any compromise, arrangement or agreement made by or on behalf of the
relevant Collateral Vessel Owner with such insurers, in which such insurers
agree to treat the Collateral Vessel as a total loss; and

 

(c)           in the
case of any other type of total loss, on the date (or the most likely date) on
which it appears to the Security Trustee that the event constituting the total
loss occurred.

 

“Transaction” means the entry into the
Transaction Documents (other than the Relevant Bareboat Charters, the Existing
Time Charters and the Other Management Agreements) and the performance of the
obligations thereunder by each of the parties thereto including inter alia the issuance of the Senior
Notes, the provision of the Facility to the Borrower and the consummation of
each of the Acquisitions.

 

“Transaction Documents”  means:

 

(a)           the
Finance Documents;

 

(b)           the
Senior Note Documents;

 

(c)           each
Management Agreement;

 

(d)           the
Performance Guarantee;

 

(e)           the Administrative Services Agreement;

 

(f)            the Charter Ancillary Agreement;

 

(g)           each
Time Charter Party;

 

(h)           the Commercial Management Agreement;

 

(i)            each
Acquisition Document;

 

(j)            the Relevant Bareboat Charters;

 

26

 

(k)           the
Existing Time Charters;

 

(l)            the Other Management Agreements;

 

(m)          any other agreement or document (other than any Finance Document)
entered into or executed pursuant to or contemplated by any of the foregoing
documents; and

 

(n)           any
other agreement or document designated as a “Transaction Document” in writing
by the Administrative Agent.

 

“Transfer Certificate”  means a duly completed transfer
certificate in the form set out in Schedule 2 (Form of Transfer Certificate)
and signed by a Lender and a Transferee whereby such Lender seeks to procure
the transfer to such Transferee of all or a part of such Lender’s rights,
benefits and obligations under this Agreement as contemplated in Clause 34 (Assignments
and Transfers).

 

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

 

“Transferee”  means a person to which a Lender seeks to transfer all or
part of its rights, benefits and obligations under this Agreement pursuant to
and in accordance with Clause 34 (Assignments and Transfers).

 

“Tripartite Agreements” means  each of the agreements entered into or to
be entered into in respect of a Collateral Vessel being subject to an Existing
Bareboat Charter by the relevant third party charterer in favour of the Finance
Parties for the purposes of inter alia the
subordination of certain of the rights of such third party charterer to the
rights of the Finance Parties under the Security Documents relating to such
Collateral Vessel.

 

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

 

“Updated Appraisal Package” means, in relation to a Collateral Vessel,
an appraisal prepared in accordance with the Appraisal Criteria and confirmed
in writing by three independent first class shipbrokers appointed or approved
by the Administrative Agent as to inter alia
the fair market value of the relevant Collateral Vessel as at the
date of each such written confirmation.

 

1.2          Accounting
Expressions

 

All accounting
expressions which are not otherwise defined in this Agreement shall be
construed in accordance with generally accepted accounting principles in the
United States of America.

 

1.3          Construction

 

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

 

the “Administrative Agent”, a “Mandated Lead Arranger”, a “Bookrunner”, the “Security Trustee”, a “Hedge Counterparty”, an “Arranger” or a “Lender” shall be construed so as to 

 

27

 

include their
respective and any subsequent successors, Transferees and permitted assigns in
accordance with their respective interests;

 

“agreed form”  means, in relation to any document, in the form agreed by the
Mandated Lead Arrangers and the Borrower prior to the date of this Agreement;

 

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

 

“determines”  or “determined”
means a determination made in the absolute discretion of the person making the
determination;

 

the “equivalent”  on any given date in one currency (the “first currency”) of an amount denominated
in another currency (the “second currency”)
is a reference to the amount of the first currency which could be purchased
with the second currency at the Administrative Agent’s Spot Rate of Exchange
for the purchase of the first currency with the second currency;

 

“including” means including (without
limitation), to the extent not already stated;

 

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

 

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

 

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

 

“VAT”  shall
be construed as value added tax as provided for in the Value Added Tax Act 1994
and legislation (or purported legislation and whether delegated or otherwise)
supplemental to that Act or in any primary or secondary legislation promulgated
by the European Community or European Union or any official body or agency of
the European Community or European Union, and any tax similar or equivalent to
value added tax (including details of
any applicable foreign VAT) imposed by any country other than the United
Kingdom and any similar or turnover tax replacing or introduced in addition to
any of the same;

 

28

 

a “wholly-owned Subsidiary” of a company or
corporation shall be construed as a reference to any company or corporation
which has no other members except that other company or corporation and that
other company’s or corporation’s wholly-owned Subsidiaries or nominees for that
other company or corporation or its wholly-owned Subsidiaries; and

 

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

 

1.4          Currency

 

“US$”, “$”
and “dollar” denote the lawful
currency of the United States of America.

 

1.5          Statutes

 

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

 

1.6          Time

 

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

 

1.7          References
to Agreements

 

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

 

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

 

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

 

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

 

2.             THE FACILITY

 

2.1          The
Facility

 

The Lenders
grant to the Borrower, upon the terms and subject to the conditions of this
Agreement, a term loan facility in a maximum aggregate amount of $1,058,000,000.

 

29

 

2.2          Purposes

 

The Borrower
shall apply the proceeds of each Advance exclusively in or towards the payment
of part of the Purchase Price applicable to such Acquisition as set out in Part
II of Schedule 7 (Collateral Vessels),
the repayment of any existing Indebtedness related to the relevant Collateral
Vessel (excluding, for the avoidance of doubt, any Outstandings) and/or the
payment of any costs and expenses incurred in connection with such Acquisition
or otherwise in relation to the Transaction.

 

2.3          Several
Obligations

 

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

 

2.4          Several
Rights

 

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

 

3.             CONDITIONS PRECEDENT

 

The
obligations of the Finance Parties under this Agreement shall be conditional
upon the Administrative Agent having confirmed to the Borrower that it has
received the documents listed in Part I of Schedule 3 (Conditions Precedent to First Drawdown)
and that each is satisfactory, in form and substance, to the Mandated Lead
Arrangers.  The Administrative Agent
shall notify the Borrower and the Lenders promptly upon being so satisfied.

 

4.             DRAWDOWN

 

4.1          Conditions
to Drawdown

 

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

 

(a)           the
Administrative Agent has received from the Borrower a duly completed Drawdown
Request for that Advance not later than 10.00 a.m. on a day which is no more
than 10 nor less than 3 Business Days prior to the proposed Drawdown Date for
such Advance, receipt of which shall oblige the Borrower to borrow the amount
requested on the date stated upon the terms and subject to the conditions
contained in this Agreement;

 

(b)           the
proposed Drawdown Date is a Business Day which is or precedes the Termination
Date;

 

30

 

(c)           the
proposed amount of such Advance is equal to the Applicable Advance Amount;

 

(d)           the
Administrative Agent has received confirmation that the Charter Service Reserve
Deposit is at least $250,000,000 (less the amount of any pre-paid charter hire
as agreed in advance with the Administrative Agent); and

 

(e)           the
Administrative Agent has received evidence satisfactory to it that:

 

(i)            any
Indebtedness outstanding (other than the Outstandings) in relation to the
relevant Collateral Vessel or Collateral Vessel Owner has been discharged in
full (or will be discharged in full, immediately upon the provision of (x) such
Advance and (y) (where that Indebtedness is in respect of more than one
Collateral Vessel) such other Advances (if applicable) requested to be made on
the same Drawdown Date); and

 

(ii)           any
Encumbrances over the relevant Collateral Vessel securing any such Indebtedness
have been (or immediately upon the provision of such Advances, will be)
released;

 

(f)            immediately
after the making of such Advance there will be no more than forty seven
Advances outstanding;

 

(g)           no
Default has occurred which is continuing or would occur from the making of such
Advance and no other circumstances exist or will arise in connection with the
making of such Advance which will have a Material Adverse Effect;

 

(h)           each
of the representations made in Clause 15 (Representations
and Warranties) is true and will continue to be true, in each case,
in all respects, following the making of the relevant Advance, provided that
any such representation which expressly relates to a given date or period shall
be required to be true solely in respect of that date or period;

 

(i)            in
relation to the relevant Acquisition, the Administrative Agent has received (or
it is satisfied that immediately upon the making of the relevant Advance, it
will receive) each of the documents referred to in Part II of Schedule 3 (Conditions to each Acquisition) (each in
form and substance satisfactory to the Mandated Lead Arrangers); and

 

(j)            the
Administrative Agent has received evidence satisfactory to it that all costs
and expenses for the time being due and payable by the Parent or any Obligor to
any Finance Party under the Finance Documents have been paid.

 

4.2          Notification
of Termination Date

 

Following
consultation with the Borrower, the Administrative Agent shall, by notice to
the Borrower and the Lenders (a “Termination
Date Notice”), confirm the Termination Date.  The Administrative Agent shall provide the
Termination Date Notice on or prior to the Termination Date.

 

31

 

4.3          Legal
Opinions

 

Within 14 days
following each Drawdown Date, the Borrower shall procure that the
Administrative Agent receives each of the legal opinions (issued by the
relevant local counsel) in respect of the Collateral Vessel Owner and/or
Collateral Vessel to which the relevant Advance relates (being the legal
opinions to be delivered in the form agreed with the Mandated Lead Arrangers in
relation to such Advance pursuant to and in accordance with paragraph 7(b) (Legal Opinions) in Part II of Schedule 3 (Conditions to each Acquisition), subject
to any amendments thereto which are acceptable to the Mandated Lead Arrangers
for the purposes of this Clause 4.1).

 

5.             REPAYMENT

 

5.1          Repayment

 

On the date
occurring three months after the date of this Agreement and at subsequent
three-monthly intervals thereafter or (if earlier) on the Maturity Date in
respect of the final such date (each a “Repayment
Date”), the Borrower shall repay an amount equal to the aggregate of
all Individual Repayment Instalments falling due on such date (excluding any
prior application against such Individual Repayment Instalments (or any of
them) under Clause 6.3 (Application of
Repayments of Advances) or Clause 7.4 (Application of Mandatory Prepayments)), each such repayment
being referred to in this Agreement as a “Repayment Instalment” provided that, if any
such day is not a Business Day, the Repayment Date will be the next succeeding
Business Day in the then current calendar month (if there is one) or the
preceding Business Day (if there is not). 
For the avoidance of doubt, if applicable following the Termination Date
or at any time following a prepayment under Clause 6 (Voluntary Prepayment) or Clause 7 (Mandatory Prepayment), the Administrative
Agent shall provide to the Borrower on request a copy of Schedule 9 (Repayment) as amended to account for any
repayment or prepayment of Outstandings pursuant to this Agreement.  Without prejudice to the foregoing
provisions of this Clause 5.1, on the Maturity Date, the Borrower shall repay
all Outstandings (if any) which remain due and payable on such date.

 

5.2          No
Reborrowing of Advances

 

The Borrower
may not reborrow any part of the Facility which is repaid.

 

6.             VOLUNTARY PREPAYMENT

 

6.1          Voluntary
Prepayment

 

The Borrower
shall, if it has given to the Administrative Agent not less than 3 Business Days’ prior written notice
to that effect, repay the Outstandings in whole or in part (but if in part, in
an amount that reduces the Outstandings by a minimum amount of $500,000 or such
lesser amount as the Administrative Agent may permit) together with accrued
interest on the amount repaid without premium or penalty (but without prejudice
to any Break Costs payable in respect of such repayment in accordance with
Clause 28.2 (Break Costs)).

 

32

 

6.2          Right
of Prepayment and Cancellation in relation to a single Lender

 

If any sum
payable to any Lender by an Obligor is required to be increased under Clause
11.1 (Tax
Gross-up) or a Lender claims indemnification from the Borrower under
the provisions of Clause 11.2 (Tax Indemnity) or Clause 12.1 (Increased
Costs) and within 30 days thereafter the Administrative Agent
receives from the Borrower (while the circumstances giving rise to such increase
or indemnification continue), at least 10 Business Days’ prior notice of its
intention to repay or to cause to be repaid such Lender’s share of the
Outstandings, the Borrower shall on the last day of each of the then current
Interest Periods repay such Lender’s portion of each Advance to which such
Interest Periods relate.

 

6.3          Application
of Repayments of Advances

 

Any repayment
made pursuant to Clauses 6.1 (Voluntary Prepayment) or 6.2 (Right of
Prepayment and Cancellation in relation to a single Lender) shall be
applied on a pro rata basis against each Individual Repayment Instalment
that remains outstanding.

 

6.4          Release
from Obligation to make Advances

 

A Lender for
whose account a repayment is to be made under Clause 6.2 (Right of Prepayment and Cancellation in
relation to a single Lender) shall not be obliged to participate in
the making of Advances on or after the date upon which the Administrative Agent
receives the relevant notice of intention to repay such Lender’s share of the
Outstandings, on which date all of such Lender’s Available Commitment shall be
cancelled and all of its Commitment shall be reduced to zero.

 

6.5          Notice
of Repayment

 

Any notice of
repayment given by the Borrower pursuant to Clauses 6.1 (Voluntary Prepayment) or 6.2
(Right of
Prepayment and Cancellation in relation to a single Lender) shall be
irrevocable, shall specify the date upon which such repayment is to be made and
the amount of such repayment and shall oblige the Borrower to make such
repayment on such date.

 

6.6          Restrictions
on Repayment

 

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

 

6.7          Cancellation
upon Repayment

 

No amount
repaid under this Agreement may subsequently be reborrowed and upon any
repayment the availability of the Facility shall be reduced by an amount
corresponding to the amount of such repayment and the Available Commitment of
each Lender in relation to the Facility shall be cancelled in an amount equal
to such Lender’s Proportion of the amount repaid.

 

33

 

7.             MANDATORY PREPAYMENT

 

7.1          Total
Loss or Sale

 

(a)           If a
Collateral Vessel is sold or otherwise disposed of or is the subject of a Total
Loss, the Borrower shall repay an amount equal to the Loss or Sale Prepayment
Amount which shall be applied in or towards the discharge of the Outstandings
at such time, in accordance with Clause 7.4(b) (Application of Mandatory Prepayments), together with accrued
interest on the amount repaid without premium or penalty but subject to the
payment of any Break Costs arising in respect of such repayment.

 

(b)           Such
repayment shall be made:

 

(i)            in
the case of a sale or other disposition of a Collateral Vessel, on or before
the date on which the sale or disposal is completed by delivery of that
Collateral Vessel to the relevant person acquiring such Collateral Vessel; or

 

(ii)           in the
case of a Total Loss of a Collateral Vessel, on the earlier of the date falling
120 days after the Total Loss Date and the date of receipt by the
Security Trustee of the proceeds of insurance relating to such Total Loss.

 

7.2          Collateral
Maintenance Test

 

Promptly upon
receipt of a notice under Clause 20.3 (Collateral
Maintenance Prepayment Amount), the Borrower shall repay an amount
equal to the Collateral Maintenance Prepayment Amount, which shall be applied
in or towards the discharge of the Outstandings at such time, in accordance
with Clause 7.4 (Application of Mandatory
Prepayments), together with accrued interest on the amount repaid
without premium or penalty (but without prejudice to any Break Costs payable in
respect of such repayment in accordance with Clause 28.2 (Break Costs)).

 

7.3          Change
of Control

 

If there
occurs a Change of Control or a sale of all or substantially all of the assets
or business of the Parent Group or the Group, all of the Available Commitments
shall immediately be cancelled, the Commitment of each Lender in respect of the
Facility shall be reduced to zero and the Borrower shall immediately repay the
Outstandings in full together with unpaid interest accrued thereon and all
other amounts due and payable to any Finance Party pursuant to Clause 28 (Borrower’s Indemnities) and any other
provision of the Finance Documents.

 

7.4          Application
of Mandatory Prepayments

 

(a)           Any
repayment made pursuant to the foregoing provisions of this Clause 7 (Mandatory Prepayment) (other than pursuant
to Clause 7.1 (Total Loss or Sale))
shall be applied on a pro rata basis against each Individual Repayment
Instalment in inverse chronological order of maturity.

 

(b)           Any
repayment made pursuant to Clause 7.1 (Total
Loss or Sale) in respect of a Collateral Vessel which is sold or
otherwise disposed of or subject to a Total Loss, shall 

 

34

 

be applied in or towards the repayment of
each Individual Repayment Instalment relating to such Collateral Vessel in
inverse chronological order of maturity and thereafter on a pro rata
basis against each other Individual Repayment Instalment in inverse
chronological order of maturity.

 

8.             INTEREST ON ADVANCES

 

8.1          Interest
Periods for Advances

 

The period for
which the Facility is outstanding shall be divided into successive periods
(each an “Interest Period”) each
of which (other than the first which shall begin on the Drawdown Date relating
to such Advance) shall start on the last day of the preceding such period and
any Interest Period which begins during or at the same time as any other
Interest Period in respect of an Advance shall end at the same time as that
other Interest Period.

 

8.2          Duration

 

The duration
of each Interest Period shall, save as otherwise provided in this Agreement, be
1, 2, 3, 6, 9 or 12 months, in each case as the Borrower may, by not less than
three Business Days’ prior notice to the Administrative Agent, select or such
other period as the Lenders may agree, provided that:

 

(a)           if the
Borrower fails to give such notice of selection in relation to an Interest
Period, the duration of that Interest Period shall, subject to the other
provisions of this Clause 8 (Interest on
Advances), be 3 months;

 

(b)           the
first Interest Period relating to each Advance (unless the Administrative Agent
otherwise specifies), shall commence on the Drawdown Date relating to that
Advance and (in each case) shall end on the Consolidation Date; and

 

(c)           any
Interest Period that would otherwise end during the month preceding, or extend
beyond, a Repayment Date shall be of such duration that it shall end on that
Repayment Date.

 

8.3          Consolidation
of Advances

 

(a)           Subject
to paragraph (b) of this Clause 8.3, if 2 or more Interest Periods in respect
of Advances end at the same time, then on the last day of those Interest
Periods, the Advances to which those Interest Periods relate shall be
consolidated into and treated as a single Advance.

 

(b)           No
later than 5 Business Days immediately prior to the Consolidation Date, the
Borrower (in consultation with the Administrative Agent) shall provide a
Consolidation Notice to the Administrative Agent directing:

 

(i)            the
number of Advances which are to remain outstanding from the Consolidation Date
(which shall not exceed 6);

 

35

 

(ii)           the
Interest Period to be applicable to each such Advance, which shall be 1, 2, 3,
6, 9 or 12 months; and

 

(iii)         the
principal amount of each such Advance.

 

Following
the delivery of a Consolidation Notice in accordance with this Clause 8.3 (with
effect from the Consolidation Date (or such other Business Day as the
Administrative Agent may determine)) the Advances shall be consolidated and the
Interest Periods relating thereto shall be adjusted to reflect the directions
made by the Borrower pursuant to and in accordance with paragraphs (i) to (iii)
above (subject always to Clause 8.2 (Duration)
and the other provisions of this Agreement).

 

8.4          Division
of Advances

 

Subject to the
requirements of Clause 8.2 (Duration)
and without prejudice to Clause 8.3 (Consolidation
of Advances), the Borrower may, by not less than 3 Business Days’
prior notice to the Administrative Agent, direct that any Advance borrowed by
it shall, at the beginning of the next Interest Period relating to it, be
divided into (and thereafter, save as otherwise provided in this Agreement, be
treated in all respects as) 2 or more Advances in such amounts (equal in
aggregate to the Advance being so divided) as shall be specified by the
Borrower in such notice provided that the Borrower shall not be entitled to
make such a direction if:

 

(a)           the
Consolidation Date has not occurred; or

 

(b)           as a
result of so doing, there would be outstanding more than 6 Advances.

 

8.5          Payment
of Interest for Advances

 

On the last
day of each Interest Period (or if such day is not a Business Day, on the
immediately succeeding Business Day in the then current calendar month (if
there is one) or the preceding Business Day (if there is not)) and if the
relevant Interest Period exceeds 3 months, on the expiry of each 3 month period
during that Interest Period (each an “Interest
Payment Date”), the Borrower shall pay accrued interest on the
Advance to which such Interest Period relates.

 

8.6          Interest
Rate for Advances

 

The rate of
interest applicable to an Advance at any time during an Interest Period
relating to it shall be the rate per annum which is the sum of the Margin and
LIBOR.

 

9.             MARKET DISRUPTION
AND ALTERNATIVE INTEREST RATES

 

9.1          Market
Disruption

 

If, in
relation to any Interest Period:

 

(a)           LIBOR
is to be determined by reference to the Reference Banks and at or about
11.00 a.m. on the Quotation Date for such Interest Period, none or only
one of the 

 

36

 

Reference Banks supplies a rate for the
purpose of determining LIBOR for the relevant period; or

 

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

 

then the
Administrative Agent shall notify the Borrower and the Lenders of such event and,
notwithstanding anything to the contrary in this Agreement, Clause 9.2 (Substitute
Interest Period and Interest Rate) shall apply (if the relevant
Advance is an Advance which is already outstanding).  If either paragraph (a) or (b) applies to a proposed Advance such
Advance shall not be made.

 

9.2          Substitute
Interest Period and Interest Rate

 

(a)           If
paragraph (a) of Clause 9.1 (Market Disruption) applies, the duration
of the relevant Interest Period shall be 1 month or, if less, such that it
shall end on the next succeeding Repayment Date.

 

(b)           If
either paragraph of Clause 9.1 (Market Disruption) applies to an Advance,
the rate of interest applicable to each Lender’s portion of such Advance during
the relevant Interest Period shall (subject to any agreement reached pursuant
to Clause 9.3 (Alternative Rate)) be the rate per annum which is the sum
of:

 

(i)            the
Margin; and

 

(ii)           the
rate per annum notified to the Administrative Agent by such Lender before the
last day of such Interest Period to be that which expresses as a percentage
rate per annum the cost to such Lender of funding from whatever sources it may
select its portion of such Advance during such Interest Period.

 

9.3          Alternative
Rate

 

If:

 

(a)           Clause
9.1 (Market
Disruption) applies; or

 

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

 

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

 

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

 

37

 

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

 

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

 

10.          COMMISSIONS AND FEES

 

10.1        Commitment
Fee

 

The Borrower
shall, within 2 Business Days following the Termination Date, pay to the
Administrative Agent for the account of each Lender a commitment fee on the
aggregate amount of such Lender’s Available Commitment from day to day during
the period beginning on the date of this Agreement and ending on the
Termination Date, such commitment fee to be calculated at the rate of 0.625%
per annum on such Available Commitment applicable from time to time during that
period.

 

10.2        Other
Fees

 

The Borrower
shall pay to the Administrative Agent the other fees referred to in the Fee
Letters in the amounts and at the times specified therein for distribution (if
applicable) by the Administrative Agent in accordance with such letters.

 

11.          TAXES

 

11.1        Tax
Gross-up

 

(a)           Each
payment made by an Obligor under a Transaction Document shall be made by it
without any Tax Deduction, unless a Tax Deduction is required by Law.

 

(b)           As
soon as it becomes aware that an Obligor is or will be required by Law to make
a Tax Deduction (or that there is any change in the rate at which or the basis
on which such Tax Deduction is to be made) the relevant Obligor shall notify
the Administrative Agent accordingly.

 

(c)           If a
Tax Deduction is required by Law to be made by an Obligor, the amount of the
payment due shall be increased to an amount so that, after the required Tax
Deduction is made, the payee receives an amount equal to the amount it would
have received had no Tax Deduction been required.

 

(d)           If a
Tax Deduction is required by Law to be made by the Administrative Agent or the
Security Trustee from any payment to any Finance Party which represents an
amount or amounts received from an Obligor, that Obligor shall, unless
paragraph (e) below applies, pay directly to that Finance Party an amount
which, after making the required Tax Deduction enables the payee of that amount
to receive an amount equal to the payment which it would have received if no
Tax Deduction had been required.

 

38

 

(e)           An
Obligor which is required to make a Tax Deduction shall make that Tax Deduction
and any payment required in connection with that Tax Deduction to the relevant
taxing authority within the time allowed and in the minimum amount required by
Law.

 

(f)            Within
30 days of making either a Tax Deduction or any payment required in connection
with that Tax Deduction, the Obligor making that Tax Deduction or other payment
shall deliver to the Administrative Agent for the Finance Party entitled to the
interest to which such Tax Deduction or payment relates, an original receipt or
other evidence which is reasonably satisfactory to that Finance Party that the
Tax Deduction or other payment has been made to the relevant tax authority.

 

11.2        Tax
Indemnity

 

(a)           Subject
to paragraph (b) of this Clause, the Borrower shall (within 3 Business Days of
demand by the Administrative Agent) pay (or procure that the relevant Obligor
pays) for the account of a Protected Party an amount equal to any Tax Liability
which that Protected Party determines will arise or has arisen (directly or
indirectly) in connection with any Finance Document.

 

(b)           Paragraph
(a) of this Clause shall not apply:

 

(i)            with
respect to any Tax Liability of a Protected Party in respect of Tax on Overall
Net Income of that Protected Party; or

 

(ii)           to the
extent that any Tax Liability has been compensated for by an increased payment
or other payment under paragraphs (c) or (d) of Clause 11.1 (Tax Gross-up)
or would have been compensated for by such an increased payment or other
payment, but for the application of paragraph (e) of Clause 11.1 (Tax Gross-up).

 

(c)           A Protected
Party making, or intending to make, a claim pursuant to paragraph (a) of this
Clause shall promptly notify the Administrative Agent of the event which will
give, or has given, rise to the claim, following which the Administrative Agent
shall notify the Borrower.

 

(d)           A
Protected Party shall, on receiving a payment from an Obligor under this
Clause, notify the Administrative Agent.

 

(e)           In
this Clause 11.2:

 

“Tax Liability”  means, in respect of any Protected Party:

 

(i)            any
liability or any increase in the liability of that person to make any payment
of or in respect of tax;

 

(ii)           any
loss of any relief, allowance, deduction or credit in respect of tax which
would otherwise have been available to that person;

 

39

 

(iii)         any
setting off against income, profits or gains or against any tax liability of
any relief, allowance, deduction or credit in respect of tax which would
otherwise have been available to that person; and

 

(iv)          any
loss or setting off against any tax liability of a right to repayment of tax
which would otherwise have been available to that person.

 

For this
purpose, any question of whether or not any relief, allowance, deduction,
credit or right to repayment of tax has been lost or set off in relation to any
person, and if so, the date on which that loss or set-off took place, shall be
conclusively determined by that person and such determination shall be binding
on the relevant parties to this Agreement.

 

“Tax on Overall Net Income”  means, in relation to a Protected Party,
tax (other than tax deducted or withheld from any payment) imposed on the net
income of that Protected Party by the jurisdiction in which the relevant
Finance Party’s Facility Office or head office is situated.

 

11.3        Tax Credit

 

(a)           If an
Obligor makes a Tax Payment and the relevant Finance Party determines in its
absolute discretion that:

 

(i)            a Tax
Credit is attributable to that Tax Payment; and

 

(ii)           that
Finance Party has obtained, utilised and retained that Tax Credit,

 

the
Finance Party shall (subject to paragraph (b) below and to the extent that such
Finance Party can do so without prejudicing the availability and/or the amount
of the Tax Credit and the right of that Finance Party to obtain any other
benefit, relief or allowance which may be available to it) pay to the Obligor
such amount which that Finance Party determines will leave it (after that
payment) in the same after-tax position as it would have been in had the Tax
Payment not been made by the Obligor.

 

(b)           (i)            Each
Finance Party shall have an absolute discretion as to the time at which and the
order and manner in which it realises or utilises any Tax Credits and shall not
be obliged to arrange its business or its tax affairs in any particular way in
order to be eligible for any credit or refund or similar benefit.

 

(ii)           Without
prejudice to Clause 37 (Taxation and
Structural Matters), no Finance Party shall be obliged to disclose
to any other person any information regarding its business, tax affairs or tax
computations.

 

(iii)         If a
Finance Party has made a payment to an Obligor pursuant to this Clause 11.3 on
account of a Tax Credit and it subsequently transpires that that Finance Party
did not receive that Tax Credit, that Obligor shall, on demand, pay to that
Finance Party the amount which that Finance Party determines will put it (after
that payment is received) in the same after-tax position as it would have been
in had no such payment been made to that Obligor.

 

40

 

(c)           No
Finance Party shall be obliged to make any payment under this Clause 11.3 if,
by doing so, it would contravene the terms of any applicable Law or any notice,
direction or requirement of any governmental or regulatory authority (whether
or not having the force of law).

 

12.          INCREASED COSTS

 

12.1        Increased
Costs

 

Subject to
Clause 12.3, (Exceptions) the Borrower shall, within 3 Business Days of a
demand by the Administrative Agent, pay for the account of a Finance Party the
amount of any Increased Cost incurred by that Finance Party or any of its
Affiliates as a result (direct or indirect) of:

 

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

 

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

 

(c)           the
implementation of economic or monetary union by any Member State which is not
already a Participating Member State.

 

12.2        Increased
Costs Claims

 

(a)           A
Finance Party intending to make a claim pursuant to Clause 12.1 (Increased
Costs) shall notify the Administrative Agent of the event giving
rise to the claim, following which the Administrative Agent shall promptly
notify the Borrower.

 

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

 

12.3        Exceptions

 

Clause 12.1 (Increased
Costs) does not apply to the extent any Increased Cost is:

 

(a)           attributable
to a Tax Deduction required by Law to be made by an Obligor;

 

(b)           compensated
for by Clause 11.2 (Tax Indemnity) (or would have been
compensated for by Clause 11.2 but was not so compensated solely because Clause
11.2 (b) applied); and

 

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

 

41

 

13.          ILLEGALITY

 

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

 

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

 

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

 

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

 

14.          MITIGATION

 

14.1        Mitigation

 

(a)           Each
Finance Party shall, if requested by and in consultation with the Borrower,
take all reasonable steps to mitigate any circumstances which arise and which
would result in any amount becoming payable under, or pursuant to, or cancelled
pursuant to, any of Clause 11 (Taxes), Clause 12 (Increased Costs) or Clause
13 (Illegality)
including (but not limited to) transferring its rights and obligations under
the Finance Documents to another Affiliate or Facility Office.

 

(b)           Paragraph
(a) of this Clause does not in any way limit the obligations of any Obligor
under the Finance Documents.

 

14.2        Limitation
of Liability

 

(a)           The
Borrower shall indemnify each Finance Party for all costs and expenses
reasonably incurred by that Finance Party as a result of steps taken by it
under Clause 14.1 (Mitigation).

 

(b)           A
Finance Party is not obliged to take any steps under Clause 14.1 if, in the
opinion of that Finance Party (acting reasonably), to do so might in any way be
prejudicial to it.

 

15.          REPRESENTATIONS AND
WARRANTIES

 

Each Obligor
(in the case of the Borrower, both in respect of itself and on behalf of each
other member of the Parent Group (if applicable) and in the case of each of the
other Obligors in respect of itself) makes the representations and warranties
set out in this Clause 15 to each Finance Party.

 

42

 

15.1        Due
Organisation

 

(a)           It is
a corporation duly organised under the laws of its jurisdiction of incorporation
with power to enter into those of the Transaction Documents to which it is
party and to exercise its rights and perform its obligations under them and all
corporate and other action required to authorise its execution of such
Transaction Documents and its performance of its obligations under them has
been duly taken.

 

(b)           It is
duly qualified and is authorised to do business and, in jurisdictions having a
concept of good standing, is in good standing in each jurisdiction where the
ownership, leasing or operation of its property or the conduct of its business
requires such qualifications.

 

15.2        No
Deduction

 

Under the laws
of its jurisdiction of incorporation and/or territories in which it is subject
to taxation in force at the date of this Agreement, it will not be required to
make any deduction for or withholding on account of tax from any payment it may
make under any of the Finance Documents to which it is party.

 

15.3        Claims
Pari Passu

 

Under the laws
of its jurisdiction of incorporation, and, if different, England, in force at
the date of this Agreement, the claims of the Finance Parties against it under
the Finance Documents to which it is party rank and will rank at least pari passu
with the claims of all its unsecured creditors save those whose claims are
preferred by any bankruptcy, insolvency, liquidation or similar laws of general
application.

 

15.4        No
Immunity

 

In any legal
proceedings taken in its jurisdiction of incorporation and, if different,
England in relation to any of the Transaction Documents to which it is party it
will not be entitled to claim for itself or any of its assets immunity from
suit, execution, attachment or other legal process.

 

15.5        Governing
Law, Judgments and Arbitral Awards

 

In any legal
proceedings taken in its jurisdiction of incorporation in relation to any of
the Transaction Documents to which it is party, the choice of law expressed in
such documents to be the governing law of it and any judgment obtained in such
jurisdiction (or arbitral award obtained pursuant to any such Transaction
Document) will be recognised and enforced.

 

15.6        All
Actions Taken

 

All acts,
conditions and things required to be done, fulfilled and performed in order:

 

(a)           to
enable it lawfully to enter into, exercise its rights under and perform and
comply with the obligations expressed to be assumed by it in the Transaction
Documents to which it is party;

 

43

 

(b)           to
ensure that the obligations expressed to be assumed by it in the Transaction
Documents to which it is party are legal, valid and binding; and

 

(c)           to
make the Transaction Documents to which it is party admissible in evidence in
its jurisdiction of incorporation and, if different, England,

 

have been
done, fulfilled and performed.

 

15.7        No Filing
or Stamp Taxes

 

Under the laws
of its jurisdiction of incorporation and England, in force at the date of this
Agreement, it is not necessary that any of the Transaction Documents to which
it is party be filed, recorded or enrolled with any court or other authority in
such jurisdiction or that any stamp, registration or similar tax be paid on or
in relation to any of them other than those filings which are necessary to
perfect the Encumbrances created pursuant to the Security Documents.

 

15.8        Binding
Obligations

 

The
obligations expressed to be assumed by it in the Transaction Documents to which
it is party, are legal, valid and binding and enforceable against it in
accordance with the terms thereof and no limit on its powers will be exceeded
as a result of the borrowings, grant of security or giving of guarantees
contemplated by such Transaction Documents or the performance by it of any of
its obligations thereunder.

 

15.9        No
Winding-up

 

No member of
the Parent Group has taken any corporate action nor have any other steps been
taken or legal proceedings been started or (to the best of its knowledge and
belief) threatened against any member of the Parent Group, for its winding-up,
dissolution, administration or re-organisation or for the appointment of a
receiver, administrator, administrative receiver, conservator, custodian,
trustee or similar officer of it or of any or all of its assets or revenues.

 

15.10      Solvency

 

(a)           No
member of the Parent Group is unable, or admits or has admitted its inability,
to pay its debts or has suspended making payments on any of its debts.

 

(b)           No
member of the Parent Group by reason of actual or anticipated financial
difficulties has commenced, or intends to commence, negotiations with one or
more of its creditors with a view to rescheduling any of its indebtedness.

 

(c)           The
value of the assets of each member of the Parent Group is not less than its
liabilities (taking into account contingent and prospective liabilities).

 

(d)           No
moratorium has been, or may, in the reasonably foreseeable future be, declared
in respect of any indebtedness of any member of the Parent Group.

 

44

 

15.11      No Default

 

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

 

(b)           No
other event or circumstance is outstanding or has occurred which constitutes or
may (with the passage of time, the giving of notice, the making of any
determination or any combination of the foregoing) constitute a default under
any agreement or instrument which is binding on it or any of its Subsidiaries
or to which its (or its Subsidiaries’) assets are subject which might have a
Material Adverse Effect.

 

15.12      No Material
Proceedings

 

(a)           No
litigation, investigation, arbitration, action or administrative proceeding
(including proceedings relating to any alleged or actual breach of the ISM
Code) of or before any court, arbitral body, or agency (private, governmental
or otherwise):

 

(i)            relating
to this Agreement, any document executed in connection herewith or otherwise in
relation to the Transaction; or

 

(ii)           which
(in the opinion of the Administrative Agent or an Instructing Group) has or
could reasonably be expected to have a Material Adverse Effect,

 

has
been started or, to the best of its knowledge, is threatened or is pending
against it, or any member of the Group.

 

(b)           Without
prejudice to the foregoing paragraph (a), no judgement, order, injunction or
other restraint (excluding for the avoidance of doubt any provision of the
Transaction Documents) has been imposed or declared, or has otherwise arisen in
relation to the Transaction which might cause a Material Adverse Effect, except
to extent permitted under Clause 24.10 (Judgment).

 

(c)           No
labour disputes are current or, to the best of its knowledge, threatened
against it or any member of the Group, which would or might have a Material
Adverse Effect.

 

15.13      Original
Financial Statements

 

The Original
Financial Statements were prepared in accordance with GAAP and consistently
applied (unless and to the extent expressly disclosed to the Administrative
Agent in writing to the contrary before the date of this Agreement) and
(excluding the Projections and any Additional Projections) fairly represent the
financial position of the Borrower as at the dates for which they were prepared
and/or (as appropriate) the results of operations and changes in financial
position during the period for which they were prepared.

 

15.14      No Material
Adverse Effect

 

Since the
delivery of the Original Financial Statements pursuant to this Agreement, no
event or series of events has occurred having a Material Adverse Effect.

 

45

 

15.15      No
Undisclosed Liabilities

 

As at the date
as of which the Original Financial Statements were prepared, it does not have
any liabilities (contingent or otherwise) which were not disclosed thereby (or
by the notes thereto) or reserved against therein and it has no unrealised or
anticipated losses arising from commitments entered into by it which were not
so disclosed or reserved against.

 

15.16      Projections,
Reports and Annual Budgets

 

In the case of
the Borrower:

 

(a)           to the
best of its knowledge and belief having made all reasonable and proper
enquiries, all statements of fact relating to the assets, financial condition
and operations of the Group and each of the Collateral Vessel Owners and
Collateral Vessels contained in each of the Projections, the Reports and the
Annual Budgets (if any) is true, complete and accurate in all material respects
as at their respective dates;

 

(b)           the
opinions and views (if any) expressed in each of the Projections, the Reports
and the Annual Budgets (if any) by the Borrower represent the honestly held
opinions and views of the Borrower and were arrived at after careful
consideration and were based on reasonable grounds as at their respective
dates;

 

(c)           all
projections and forecasts (if any) contained in each of the Projections, the
Reports and the Annual Budgets (if any) made by the Borrower are based upon
assumptions (including, without limitation, assumptions as to the future
performance of the business, inflation, price increases and efficiency gains)
which the Borrower has carefully considered and considers to be fair and reasonable
as at their respective dates; and

 

(d)           none
of the Reports, the Projections or Annual Budgets (if any) omitted to disclose
or take into account any matter known to the Borrower after due and careful
enquiry where failure to disclose or take into account such matter would result
in the Reports, the Projections or the Annual Budgets (as applicable) or any
information or projection contained therein being misleading in any material
respect as at the date thereof and which might, if disclosed, adversely affect
the decision of a person considering whether to provide finance in relation to
the Transaction.

 

15.17      Indebtedness
and Encumbrances

 

(a)           Save
as permitted under Clause 22.3 (Financial Indebtedness) and excluding any
other Indebtedness to be discharged in accordance with Clause 4.1(e)(i) (Conditions to Drawdown) (but including any
such Indebtedness not discharged in accordance with such Clause), neither it
nor any member of the Group has incurred any Indebtedness.

 

(b)           Save
as permitted under Clause 22.1 (Negative Pledge), no Encumbrance exists
over all or any of the present or future revenues or assets of any member of
the Group.

 

46

 

15.18      Transaction
Documents

 

(a)           Its
execution of the Transaction Documents to which it is party and its exercise of
its rights and performance of its obligations thereunder do not and will not:

 

(i)            conflict
with any agreement, mortgage, bond or other instrument or treaty which is
binding upon it, any Subsidiary or any of the assets of any Subsidiary or,
except as provided in the Security Documents, result in a requirement for the
creation of any Encumbrance over any such asset, in each case, in any way;

 

(ii)           conflict
with any of the provisions of the documents relating to its constitution; or

 

(iii)         conflict
with any applicable law, regulation or official or judicial order.

 

(b)           The
Transaction Documents (or part thereof) constitute the entire agreement between
the Parent and the Group in relation to the Transaction.

 

15.19      Structure

 

(a)           The
Group Structure Chart (x) is a complete and accurate representation of the
structure of the Parent, the Group, the Charterer and the Manager (subject to
any transfer or issuance in respect of the share capital of the Borrower
pursuant to any Permitted Listing or Permitted Capital Payment, any disposal or
acquisition of an entity by a member of the Group in accordance with Clause
22.7 (Disposals) or Clause 22.17
(Acquisitions and Investments)
respectively (including the incorporation or acquisition of a Subsidiary
(whether or not being an Additional Vessel Owner or Substitute Vessel Owner at
such time) by the Borrower for the purposes of any Additional Acquisition or
the substitution of an existing Collateral Vessel Owner, in either case, to be
made in accordance with this Agreement), or any variation otherwise expressly
permitted pursuant to the Finance Documents) and (y) in relation to each
Collateral Vessel Owner, shows the Collateral Vessel owned by such Collateral
Vessel Owner or to be acquired pursuant to the Transaction.  From time to time upon request of the
Administrative Agent, the Borrower shall promptly deliver to the Administrative
Agent a revised structure chart in the form of the Group Structure Chart, as
amended in order to accurately reflect the structure of the Group at such time.

 

(b)           Each
Guarantor (excluding any Additional Vessel Owner partially owned by the Group
in accordance with this Agreement) is a wholly-owned Subsidiary of the Borrower
and (subject to any Permitted Listing or other transfer or (if applicable)
issue of share capital in the Borrower in accordance with this Agreement) the
Borrower is a wholly-owned Subsidiary of the Parent.

 

(c)           In the
case of the Borrower, it is a Holding Company and, save as contemplated by the
Transaction Documents, the Borrower has not traded or undertaken any commercial
activities of any kind and has no liabilities or obligations (actual or
contingent) except to the extent contemplated under the Finance Documents.

 

47

 

15.20      Environmental
Matters

 

(a)           It
has:

 

(i)            complied
with all Environmental Laws to which it may be subject;

 

(ii)           obtained
all Environmental Licences required or desirable in connection with its
business; and

 

(iii)         complied
with the terms of all such Environmental Licences,

 

in
each case, where failure to do so would or might have a Material Adverse
Effect.

 

(b)           There
is no Environmental Claim pending or threatened against it, and to the best of
its knowledge and belief there are no past or present acts, omissions, events
or circumstances which could form the basis of any Environmental Claim against
it, which has or may have a Material Adverse Effect.

 

(c)           No:

 

(i)            property
currently or previously owned, leased, occupied or controlled by it is
contaminated with any Environmentally Sensitive Material; and

 

(ii)           discharge,
release, leaking, migration or escape of any Environmentally Sensitive Material
into the Environment has occurred or is occurring on, under or from that
property,

 

in
each case, in circumstances where the same would or might have a Material
Adverse Effect.

 

15.21      Necessary
Authorisations

 

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

 

15.22      Intellectual
Property

 

(a)           The
Intellectual Property Rights owned by or licensed to it are all the material
Intellectual Property Rights required by it in order to carry out, maintain and
operate its business, properties and assets, and so far as it is aware, it does
not infringe, in any way any Intellectual Property Rights of any third party
save, in each case, where the failure to own or license the relevant
Intellectual Property Rights or any infringement thereof will not have a
Material Adverse Effect.

 

(b)           So far
as it is aware, it and each of its Subsidiaries has taken all reasonable formal
and procedural actions (including payment of fees) required to maintain any
registered 

 

48

 

Intellectual Property Rights owned by it,
which are material in the context of the Group Business or which are required
by it (or such Subsidiary) in order for it (or such Subsidiary) to carry on its
(or such Subsidiary’s) business in all material respects and such formal and
procedural actions are in full force and effect.

 

15.23      Ownership
of Assets

 

Save to the
extent disposed of without breaching the terms of any of the Finance Documents
with effect from and after the date of this Agreement, it and each of its
Subsidiaries has good title to or valid leases or licences of or is otherwise
entitled to use and permit other members of the Group to use all assets
necessary to conduct the Group Business taken as a whole as it is conducted at
the date of this Agreement.

 

15.24      Payment of
Taxes

 

It:

 

(a)           has
paid all taxes imposed upon it or its assets within the time period allowed
therefor without incurring tax penalties or creating any Encumbrance;

 

(b)           is not
overdue in the filing of any tax returns; and

 

(c)           has no
claims which are being, or are reasonably likely to be, asserted against it
with respect to taxes which might have a Material Adverse Effect,

 

save to the
extent it can demonstrate to the satisfaction of the Administrative Agent that
the same are being contested in good faith on the basis of appropriate
professional advice.

 

15.25      Security
Documents

 

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

 

15.26      Insurance

 

Each member of
the Group is adequately insured in full compliance with the provisions of
Clause 18 (Insurance).

 

15.27      Private
& Commercial Acts

 

Its execution
of the Finance Documents to which it is party constitutes, and its exercise of
its rights and performance of its obligations under this Agreement will
constitute, private and commercial acts done and performed for private and
commercial purposes.

 

15.28      Centre of
Main Interests

 

Its Centre of
Main Interests is Bermuda.

 

49

 

15.29      EC
Regulation

 

On the date of
this Agreement and on each day on which the Finance Documents (or any of them)
are in force and/or any amount due and payable thereunder remains unpaid, in
relation to the drawdown by the Borrower of each of the Advances, the
performance and discharge of its obligations and liabilities under this
Agreement or any of the other Finance Documents and the transactions and other
arrangements effected or contemplated hereby or thereby, it is acting for its
own account and the foregoing will not involve or lead to a contravention of
any law, official requirement or other regulatory measure or procedure which
has been implemented to combat “money laundering” (as defined in Article 1 of
the Directive (91/308/EEC) of the Council of the European Communities).

 

15.30      Financial
Assistance

 

All payments
and provision of guarantees, security and other assistance by and/or between
members of the Parent Group made under the Transaction Documents have been and
will be made in compliance with applicable local laws and regulations
concerning financial assistance by a company for the acquisition of or
subscription for its own shares or the shares of its parent or any other
company (including Isle of Man law, in respect of the execution of the Finance
Documents by each of Oscilla Shipping Limited and Golden Current Limited and
the performance of their respective obligations thereunder (and the payment of
the Purchase Price in relation to such Collateral Vessel Owners)).

 

15.31      Repetition

 

Except as
otherwise indicated, each of the representations in this Clause 15 (Representations and Warranties) is deemed
to be made by each Obligor making such representation on the date of this
Agreement in relation to itself and by the Borrower in relation to itself and
the other members of the Parent Group (if applicable) by reference to the facts
and circumstances then existing on:

 

(a)           each
Drawdown Date and on the first day of each Interest Period; and

 

(b)           in the
case of any Acceding Guarantor on the day the same becomes (or if earlier, is
required to have become) an Acceding Guarantor.

 

16.          FINANCIAL INFORMATION

 

16.1        Financial
Statements

 

The Borrower
shall provide to the Administrative Agent in sufficient copies for all the
Lenders as soon as the same become available, but in any event within
180 days after the end of each of its or the Parent Group’s financial
years (as applicable), the audited consolidated financial statements for such
financial year (in respect of the Group and the Parent Group), in each case,
audited by an internationally recognised firm of independent auditors licensed
to practise in the jurisdiction of incorporation of the Parent and the
Borrower, and accompanied by the related auditor’s report (and as soon as they
become available but in any event within 60 days after the 

 

50

 

end of each
Financial Quarter, unaudited consolidated quarterly financial statements of the
Group and the Parent Group, in each case, relating to such Financial Quarter).

 

16.2        Annual
Budget

 

On the first
Business Day following the commencement of each financial year of the Borrower
commencing 2005, the Borrower shall deliver to the Administrative Agent in form
and substance satisfactory to it a budget (including inter alia a profit and loss account, balance sheet and cash
flow projection) (an “Annual Budget”)
in respect of the Group for such financial year.

 

16.3        Other
Information

 

(a)           The
Borrower shall and shall procure that each of the other members of the Parent
Group shall from time to time promptly on the request of the Administrative
Agent, provide the Administrative Agent with such information about the Group
Business and financial condition of the Parent Group or any member of the
Parent Group (including such member’s business, where applicable) as the Administrative
Agent may require (including in relation to the corporate and capital structure
of the Group, any member of the Group, the Parent, the Charterer or the
Manager).

 

(b)           Promptly
upon the Administrative Agent’s request, the Borrower shall supply, or procure
the supply of, such documentation and other evidence as is reasonably requested
by the Administrative Agent in order for the Administrative Agent to carry out
and be satisfied with the results of all necessary “know your client” or other
checks in relation to the identity of any person, that it is required to carry
out in relation to the transactions contemplated by the Finance Documents.

 

16.4        Compliance
Certificates

 

(a)           The
Borrower shall ensure that each set of financial statements delivered by it
pursuant to Clause 16.1 (Financial Statements) or otherwise
pursuant to this Agreement is accompanied by a Compliance Certificate signed by
its chief financial officer confirming compliance with the financial covenants
set out in Clause 17 (Financial Condition) (in the case of any
financial statements of the Group) and Clause 9.5(a) of the Deed of Undertaking
(in the case of any financial statements of the Parent Group) and (in each
case) the absence of any Default as at the end of such financial year or Financial
Quarter (as the case may be) to which such financial statements relate.

 

(b)           Without
prejudice to Clause 21.13 (Access to Records),
if, in the reasonable opinion of an Instructing Group, a breach of any
provision of Clause 17 (Financial Condition) or Clause 9.5(a) of
the Deed of Undertaking has occurred or is reasonably likely to occur, the
Administrative Agent shall be entitled to (i) call for a full independent audit
and investigation of the financial position of any member of the Parent Group at
the Borrower’s expense and (ii) have access, together with its accountants and
other professional advisers (with or without prior notice), during normal
business hours, to the assets, books and records of any member of the Parent
Group and to inspect the same.

 

51

 

16.5        Notifications

 

The Borrower
shall furnish or procure that there shall be furnished to the Administrative
Agent:

 

(a)           promptly,
documents required to be despatched by the Borrower, the Manager, the Charterer
or any other member of the Parent Group (other than the Parent) to the Parent
or any other person being a shareholder of the Borrower, the Manager, the
Charterer or such member of the Parent Group (as the case may be) from time to
time in their capacity as shareholder and all documents relating to the
financial obligations of any Obligor, the Manager, the Charterer or such member
of the Parent Group (as the case may be) despatched by or on behalf of such
person to its creditors generally (in their capacity as creditors) (including,
without limitation, any notifications or documents relating to any Finance
Document or Senior Note Document);

 

(b)           promptly,
such further information regarding any Collateral Vessel, its Earnings or
Insurances or the financial condition, business and operations of any member of
the Parent Group as any Finance Party (through the Administrative Agent) may
reasonably request;

 

(c)           as
soon as the same are instituted or, to its knowledge, threatened, details of
any litigation, arbitration or administrative proceedings involving any member
of the Parent Group (including proceedings relating to any alleged or actual
breach of the ISM Code) which, if adversely determined, would or might have a
Material Adverse Effect;

 

(d)           written
details of any Default forthwith upon becoming aware of the same and of all
remedial steps being taken and proposed to be taken in respect of that Default;
and

 

(e)           promptly
upon receipt of a request by the Administrative Agent, a certificate signed by
a director or its chief financial officer on its behalf certifying that no
Default is continuing (or if a Default is continuing, specifying such Default
and the steps, if any, being taken to remedy the same).

 

17.          FINANCIAL CONDITION

 

17.1        Financial
Condition

 

At all times
(or as otherwise stated), the financial condition of the Group, as evidenced by
the financial statements provided pursuant to Clause 16.1 (Financial Statements) shall
be such that:

 

(a)           Minimum Liquidity

 

Free and
available Cash in respect of the Group shall be at least $25,000,000.

 

(b)           Minimum Working Capital

 

Consolidated
Working Capital on the last day of each Financial Quarter of the Borrower shall
be no less than zero.

 

52

 

(c)           Minimum Equity Ratio

 

The Equity
Ratio on the last day of each Financial Quarter of the Borrower shall be at
least 20%.

 

17.2        Calculation
on Pro Forma Basis

 

All
calculations of the financial covenants set out in Clause 17.1 (Financial Condition) and the financial
definitions used in this Agreement shall be made on a pro forma basis giving
effect to all material acquisitions and/or dispositions made during the
relevant period of calculation based on the actual historical financial results
of the items being acquired or disposed of.

 

18.          INSURANCE

 

18.1        Definitions

 

In this Clause
18 (Insurance):

 

“excess risks” means, in relation to any
Collateral Vessel, the proportion of claims for general average, salvage and
salvage charges not recoverable under the hull and machinery policies in
respect of that Collateral Vessel in consequence of its insured value being
less than the value at which that Collateral Vessel is assessed for the purpose
of such claims;

 

“obligatory insurances” means, in relation
to any Collateral Vessel, all insurances effected, or which the Guarantor which
owns that Collateral Vessel is obliged to effect, under this Clause 18 (Insurance) or any other provision of this
Agreement or of another Finance Document;

 

“policy”, in relation to any insurance,
includes a slip, cover note, certificate of entry or other document evidencing
the contract of insurance or its terms;

 

“protection and indemnity risks” means the
usual risks covered by a member of the International Group of Protection and
Indemnity Associations, including pollution risks and the proportion (if any)
of any sums payable to any other person or persons in case of collision which
are not recoverable under the hull and machinery policies entered into pursuant
to Clause 18.2(a) (Maintenance of Obligatory
Insurances) by reason of the incorporation into them of clause 8 of
the Institute Time Clauses (Hulls)(1/10/83) or (1/11/1995) or the Institute
Amended Running Down Clause (1/10/71) or any equivalent provision; and

 

“war risks” 
includes the risk of mines and all risks excluded from hull and
machinery marine risk policies (entered into pursuant to Clause 18.2(a) (Maintenance of Obligatory Insurances)) by
clause 23 of the Institute Time Clauses (Hulls)(1/10/83) or clause 24 of the
Institute Time Clauses (Hulls) (1/11/1995) or any equivalent provision.

 

18.2        Maintenance
of Obligatory Insurances

 

Each Guarantor
shall (and the Borrower shall procure that each Guarantor shall) keep the
Collateral Vessel owned by it insured at its own expense against:

 

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

 

53

 

(b)           war
risks (with terrorism and war protection and indemnity risks);

 

(c)           protection
and indemnity risks; and

 

(d)           any
other risks against which the Security Trustee considers, having regard to
practices and other circumstances prevailing at the relevant time, it would be
reasonable for each Guarantor to insure and which are specified by the Security
Trustee by notice to that Guarantor or the Borrower.

 

18.3        Terms of
Obligatory Insurances

 

Each Guarantor
shall (and the Borrower shall procure that each Guarantor shall) effect such
insurances:

 

(a)           in
dollars;

 

(b)           in
respect of the Collateral Vessels, in the case of fire and usual marine risks
and war risks, in an amount (calculated on an agreed value basis) equal to at
least (i) 110% of the Applicable Outstanding Amount relating to such Collateral
Vessel, or if greater (ii) the Individual Collateral Value of such Collateral
Vessel; and

 

(c)           in the
case of protection and indemnity cover, including pollution liability risks,
for an aggregate amount equal to the highest amount in respect of which cover
is ordinarily available from protection and indemnity associations which are
members of the International Group of Protection and Indemnity Associations and
in the international marine insurance market;

 

(d)           in
relation to protection and indemnity risks in respect of the Collateral
Vessel’s full tonnage;

 

(e)           on
terms approved by the Security Trustee; and

 

(f)            through
approved brokers and with approved insurance companies; and/or

 

(g)           underwriters
or, in the case of war risks and protection and indemnity risks, in approved
war risks and protection and indemnity risks associations.

 

18.4        Further
Protection for Finance Parties

 

In addition to
the terms set out in Clause 18.3 (Terms of
Obligatory Insurances), each Guarantor shall (and the Borrower shall
procure that each Guarantor shall) procure that the obligatory insurances
effected by it shall:

 

(a)           whenever
the Security Trustee requires, other than the obligatory insurances in respect
of protection and indemnity risks, name (or be amended to name) the Security
Trustee as additional named assured for its rights and interests, warranted no
operational interest and with full waiver of rights of subrogation against the
Security Trustee, but without the 

 

54

 

Security Trustee thereby being liable to pay
(but having the right to pay) premiums, calls or other assessments in respect
of such insurance;

 

(b)           name
(or be amended to name) the Security Trustee as a joint assured in respect of
protection and indemnity risks (but without, as between the Security Trustee
and the Guarantor, liability on the part of the Security Trustee for  premiums, calls or
contributions);

 

(c)           in the
case of the obligatory insurances in respect of marine risks and war risks, be
endorsed by way of a loss payable clause in the relevant form set out in the
relevant Security Document;

 

(d)           in the
case of the obligatory insurances in respect of protection and indemnity risks
provide for moneys payable thereunder to be paid in accordance with a loss
payable clause in the relevant form set out in the relevant Security Document,
and in any case in reimbursement of the assured which has settled the liability
to which the relevant claim relates or, if so agreed by the relevant insurers,
to be paid directly to the person to whom the liability was incurred in respect
of which the relevant money was paid.

 

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

 

(f)            provide
that such obligatory insurances shall be primary without right of contribution
from other insurances which may be carried by the Security Trustee or any other
Finance Party; and

 

(g)           provide
that the Security Trustee may make proof of loss if the Guarantor concerned
fails to do so.

 

18.5        Renewal of Obligatory Insurances

 

Each Guarantor
shall (and the Borrower shall procure that each Guarantor shall):

 

(a)           at
least 21 days before the expiry of any obligatory insurance effected by it:

 

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

 

(ii)           obtain
the Security Trustee’s approval to the matters referred to in paragraph (a) (i)
above;

 

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

 

55

 

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

 

18.6        Copies of Policies and Letters of Undertaking

 

Each Guarantor
shall (and the Borrower shall procure that each Guarantor shall) ensure that
all approved brokers (i) provide the Security Trustee with pro forma copies of
all policies relating to the obligatory insurances which they are to effect or
renew and of a letter or letters of undertaking in the form customarily
provided by the relevant broker or hull and/or war underwriters acceptable to
the Security Trustee and (ii) in the case of any Guarantor being a Collateral
Vessel Owner, undertake to the Security Trustee and the Administrative Agent
that they will:

 

(a)           endorse
on each policy, immediately upon issue, a loss payable clause and a notice of
assignment complying with the provisions of Clause 18.4 (Further Protection for Finance Parties);

 

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

 

(c)           advise
the Security Trustee immediately of any material change to the terms of the
obligatory insurances and/or any non-payment by the relevant Guarantor of any
premiums or other sums;

 

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

 

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

 

18.7        Copies of Certificates of Entry

 

Each Guarantor
shall (and the Borrower shall procure that each Guarantor shall) ensure that
any protection and indemnity and/or war risks associations in which the
Collateral Vessel owned by it is entered, provides the Security Trustee with:

 

(a)           a certified
copy of the certificate of entry for that Collateral Vessel;

 

56

 

(b)           in the
case of a Collateral Vessel, a letter or letters of undertaking in the form
customarily provided by the relevant protection and indemnity club acceptable
to the Security Trustee; and

 

(c)           a
certified copy of each certificate of financial responsibility for pollution by
oil or other Environmentally Sensitive Material issued by the relevant
certifying authority in relation to such Collateral Vessel.

 

18.8        Deposit of Original Policies

 

Each Guarantor
shall (and the Borrower shall procure that each Guarantor shall) ensure that
all original slips, cover notes, certificates of entry, policies and other
instruments of insurance relating to obligatory insurances effected by it from
time to time are deposited in accordance with market practice with the approved
brokers through which the insurances are effected or renewed.

 

18.9        Payment
of Premiums

 

Each Guarantor
shall (and the Borrower shall procure that each Guarantor shall) punctually pay
all premiums, calls, contributions, or other sums payable in respect of the
obligatory insurances effected by it and produce all relevant receipts when so
required by the Administrative Agent or the Security Trustee.

 

18.10      Required
Guarantees

 

Each Guarantor
shall (and the Borrower shall procure that each Guarantor shall) ensure that
any guarantees and/or indemnities required by a protection and indemnity or war
risks association from time to time are promptly issued, executed and delivered
and remain in full force and effect.

 

18.11      Compliance
with Terms of Insurances

 

No Guarantor
shall (and the Borrower shall procure that no Guarantor shall) do (or permit to
be done) or omit to do any act or thing which would or might enable
cancellation of any obligatory insurance or render any obligatory insurance
invalid, void, voidable or unenforceable or render any sum paid under any
obligatory insurance repayable in whole or in part and in particular:

 

(a)           each
Guarantor shall take all necessary action and comply with all requirements
which may from time to time be applicable to the obligatory insurances, and
(without limiting the obligation contained in paragraph (c) of Clause 18.6 (Copies of Policies and Letters of Undertaking))
ensure that the obligatory insurances are not made subject to any exclusions or
qualifications to which the Security Trustee has not given its prior written
approval;

 

(b)           no
Guarantor shall make any changes relating to the classification or
classification society or manager or operator of the Collateral Vessel owned by
it except as approved by the underwriters of the obligatory insurances and the
Administrative Agent;

 

57

 

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

 

(d)           no
Guarantor shall (and the Borrower shall procure that no Guarantor shall) do any
act or voluntarily suffer or permit any act to be done whereby any obligatory
insurances shall or may be suspended or avoided and no Guarantor shall (and the
Borrower shall procure that no Guarantor shall) employ the Collateral Vessel
owned by it, nor allow it to be employed, otherwise than in conformity with the
terms and conditions of the obligatory insurances, without first obtaining the
consent of the relevant insurers and complying with any requirements (as to
extra premium or otherwise) which such insurers specify; and

 

(e)           each
Guarantor shall (and the Borrower shall procure that each Guarantor shall)
procure that all amounts payable under the obligatory insurances are paid in
accordance with the relevant loss payable clause.

 

18.12      Alteration
to Terms of Insurances

 

No Guarantor
shall (and the Borrower shall procure that no Guarantor shall) either make or
agree to any alteration to the terms of any obligatory insurance nor waive any
right relating to any obligatory insurance.

 

18.13      Settlement
of Claims

 

No Guarantor
shall (and the Borrower shall procure that no Guarantor shall) without the
prior written consent of the Security Trustee settle, compromise, abandon any
claim, give notice of abandonment of a Collateral Vessel and/or claim a
constructive Total Loss under any obligatory insurance for Total Loss or for a
Major Casualty, and each Guarantor shall (and the Borrower shall procure that
each Guarantor shall) do all things necessary and provide all documents,
evidence and information to enable the Security Trustee to collect or recover
any moneys which at any time become payable in respect of the obligatory
insurances.

 

18.14      Provision
of Insurance Information

 

Each Guarantor
shall (and the Borrower shall procure that each Guarantor shall) promptly
provide the Security Trustee (or any persons which it may designate) with any
information which the Security Trustee (or any such designated person) requests
for the purpose of:

 

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

 

(b)           effecting,
maintaining or renewing such insurances as are referred to in Clause 18.15 Mortgagee’s Interest Insurance Additional Perils
Insurances) or dealing with or considering any matters relating to
any such insurances,

 

58

 

and each
Guarantor shall (and the Borrower shall procure that each Guarantor shall),
forthwith upon demand, indemnify the Security Trustee in respect of all fees
and other expenses incurred by or for the account of the Security Trustee in
connection with any such report as is referred to in paragraph (a) above.

 

18.15      Mortgagee’s
Interest Insurance Additional Perils (Pollution)

 

The Security
Trustee shall be entitled from time to time to effect, maintain and renew a
mortgagee’s interest insurance additional perils insurance policy in such
amounts, on such terms, through such insurers and generally in such manner as
the Security Trustee may from time to time consider appropriate and the
Borrower shall upon demand fully indemnify the Security Trustee in respect of
all premiums and other expenses which are incurred in connection with or with a
view to effecting, maintaining or renewing any such insurance or dealing with,
or considering, any matter arising out of any such insurance.

 

18.16      Bareboat
Charter Insurance

 

In respect of
any Collateral Vessel being subject to a Relevant Bareboat Charter or other
demise charter, the Guarantor which is the owner of that Collateral Vessel
shall (and the Borrower shall procure that such Guarantor shall):

 

(a)           require,
in a manner satisfactory to the Security Trustee, that the bareboat charterer
of that Collateral Vessel comply in all respects with the provisions of this
Clause 18 (Insurance) in respect
of the Insurances relating to that Collateral Vessel; and

 

(b)           require
that such bareboat charterer assign to the Security Trustee all of its rights
title and interest in and to the Insurances relating to that Collateral Vessel
upon terms satisfactory to the Security Trustee.

 

18.17      Changes to
Insurances

 

If following a
review of the Insurances relating to any Collateral Vessel, the Security
Trustee determines that such Insurances are inadequate to protect the Finance
Parties’ interest in the Collateral Vessel by reason of changes to the
insurance market (other than changes permitted by this Clause 18 (Insurance)) having regard to comparable
insurances effected by owners and operators of vessels of a similar type and
age to the relevant Collateral Vessel, the Security Trustee may by notice to
the Guarantor require the Guarantor to promptly take such actions as in the
reasonable opinion of the Security Trustee are necessary to remedy such
inadequacies, in which case, the relevant Guarantor shall at its own cost
procure that such actions are taken accordingly and promptly.

 

19.          COLLATERAL VESSELS

 

19.1        Collateral
Vessels’ Names and Registration

 

Each Guarantor
shall (and the Borrower shall procure that each Guarantor shall):

 

59

 

(a)           not
change the registered name or flag of any Collateral Vessel other than, in each
case, with the prior consent of the Administrative Agent (such consent not to
be unreasonably withheld) provided that:

 

(i)            in
relation to any Collateral Vessel currently flagged at the Norwegian
International Ship Register or in Singapore, such Collateral Vessel may be
changed to a Marshall Island  flag;

 

(ii)           prior
to or immediately upon any change to the existing name or flag of a Collateral
Vessel, the Borrower shall provide to the Administrative Agent such security
and subordination documents and as soon as practicable thereafter, such other
documents, in each case, as the Administrative Agent may require in connection
with such change of name or flag; and

 

(iii)         notwithstanding
the foregoing paragraph (a)(i) of this Clause 19.1, on or after 31 December
2004, any change to a flag or name of a Collateral Vessel shall require the
prior consent of an Instructing Group;

 

(b)           not do
or allow to be done anything as a result of which such registration might be
cancelled or imperilled; and

 

(c)           at its cost and expense, ensure that the
interest of the Finance Parties in the Collateral Vessel is duly noted or reported
to the maximum extent permitted by applicable law with the registry where such
Collateral Vessel is registered.

 

19.2        Repair
and Classification

 

Each Guarantor
shall (and the Borrower shall procure that each Guarantor shall) keep and
maintain at its own expense the Collateral Vessel owned by it in a seaworthy
condition, in good running order and repair and in a good and safe condition:

 

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

 

(b)           so as
to maintain that Collateral Vessel’s present class (in accordance with Clause
18.11 (b) (Compliance with Terms of
Insurances)) with its present classification society, free of
overdue recommendations and conditions affecting that Collateral Vessel’s
class; and

 

(c)           so as
to comply, at all times, with all laws and regulations applicable in the
jurisdiction in which it is registered or to vessels trading to any
jurisdiction to which that Collateral Vessel may trade from time to time,
including but not limited to the ISM Code and take all such action as is
necessary to ensure that each Guarantor receives certification of compliance
with such Code.

 

19.3        Classification
Society Undertaking

 

Each Guarantor
shall (and the Borrower shall procure that each Guarantor shall) instruct the
classification society referred to in Clause 19.2 (Repair and Classification) (and procure that classification
society undertakes with the Security Trustee):

 

60

 

(a)           to
send to the Security Trustee, following receipt of a written request from the
Security Trustee, certified true copies of all original class records held by
that classification society in relation to the Collateral Vessel owned by it;

 

(b)           without
prejudice to the generality of Clause 21.13 (Access
to Records), to allow the Security Trustee (or its representatives),
at any time and from time to time, to inspect the original class and related
records of that Guarantor and that Collateral Vessel at the offices of that
classification society and to take copies of them;

 

(c)           to
notify the Security Trustee immediately in writing if that classification
society:

 

(i)            receives
notification from that Guarantor or any person that that Collateral Vessel’s
classification society is to be changed; or

 

(ii)           becomes
aware of any facts or matters which may result in or have resulted in a change,
suspension, discontinuance, withdrawal or expiry of that Collateral Vessel’s
class under the rules or terms and conditions of that Guarantor’s or that
Collateral Vessel’s membership of that classification society;

 

(d)           following
receipt of a written request from the Security Trustee:

 

(i)            to
confirm that that Guarantor is not in default of any of its contractual
obligations or liabilities to that classification society and, without limiting
the foregoing, that it has paid in full all fees or other charges due and
payable to the classification society; or

 

(ii)           if
that Guarantor is in default of any of its contractual obligations or
liabilities to that classification society, to specify to the Security Trustee
in reasonable detail the facts and circumstances of such default, the
consequences of such default and any remedy period agreed or allowed by that
classification society.

 

19.4        Modification
of Collateral Vessels

 

No Guarantor
shall (and the Borrower shall procure that no Guarantor shall) make any
modification or repairs to, or replacement of, the Collateral Vessel owned by
it or equipment installed on it which would or might materially alter the
structure, type or performance characteristics of that Collateral Vessel or
materially reduce its value.

 

19.5        Removal
of Parts

 

No Guarantor
shall (and the Borrower shall procure that no Guarantor shall) remove any
material part of the Collateral Vessel owned by it, or any item of equipment installed
on, that Collateral Vessel unless the part or item so removed is forthwith
replaced by a suitable part or item which is in the same condition and value as
or better condition and value than the part or item removed, is free from any
Encumbrance in favour of any person other than the Security Trustee and becomes
on installation on that Collateral Vessel the property of the Guarantor
concerned and subject to the security constituted by the Mortgage (if any)
relating to such Collateral Vessel provided that, a Guarantor or any person on
its behalf or under its instruction may not install 

 

61

 

equipment
owned by a third party unless the equipment can be removed without any risk of
damage to the Collateral Vessel owned by it.

 

19.6        Surveys

 

Each Guarantor
shall (and the Borrower shall procure that each Guarantor shall) submit the
Collateral Vessel owned by it regularly to all periodic or other surveys which
may be required for classification purposes and, if so required by the Security
Trustee, provide the Security Trustee with copies of all survey reports.

 

19.7        Inspection
and Documentation

 

Each Guarantor
shall (and the Borrower shall procure that each Guarantor shall) permit the
Security Trustee (acting through surveyors or other persons appointed by it for
that purpose) to board and have full and complete access to the Collateral
Vessel owned by it and its cargo to inspect its condition or to satisfy
themselves about proposed or executed repairs and shall afford all proper
facilities for such inspections and procure that all documentation required to
be on board the Collateral Vessel in compliance with all applicable laws or
regulations and the terms of the Transaction Documents is at all times on such Collateral
Vessel.

 

19.8        Prevention
of and Release from Arrest

 

Each Guarantor
shall (and the Borrower shall procure that each Guarantor shall) promptly
discharge:

 

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

 

(b)           all
taxes, dues and other amounts charged in respect of the Collateral Vessel owned
by it, its Earnings or Insurances; and

 

(c)           all
other outgoings whatsoever in respect of the Collateral Vessel owned by it, its
Earnings or Insurances,

 

and, forthwith
upon receiving notice of the arrest of the Collateral Vessel owned by it, or of
its detention in exercise or purported exercise of any lien or claim, that
Guarantor shall (and the Borrower shall procure that such Guarantor shall)
immediately notify the Security Trustee of such arrest and procure its release
by providing bail or otherwise as the circumstances may require.

 

19.9        Actions
of Guarantor

 

No Guarantor
shall (and the Borrower shall procure that no Guarantor shall), at any time:

 

(a)           abandon
a Collateral Vessel (or any material part thereof);

 

(b)           represent
or hold out any of the Finance Parties as carrying goods or passengers on the
Collateral Vessel owned by it or as being in any way connected or associated
with any

 

62

 

operation or carriage (whether for hire or
otherwise) undertaken in respect of such Collateral Vessel;

 

(c)           pledge
the credit of any of the Finance Parties for any maintenance, service, repairs,
dry-docking or modification to any Collateral Vessel or for any other purpose
whatsoever; or

 

(d)           sell
or purport to sell or execute a bill of sale of any Collateral Vessel or any
interest therein.

 

19.10      Compliance
with Laws

 

Each Guarantor
shall (and the Borrower shall procure that each Guarantor shall):

 

(a)           comply,
or procure compliance with the ISM Code, all other Environmental Laws and all
other laws or regulations relating to the Collateral Vessel owned by it, its
ownership, operation, use, maintenance and management or to the business of
that Guarantor and obtain and comply with all Environmental Licences required
or desirable in connection with the business it carries on;

 

(b)           not
employ the Collateral Vessel owned by it nor allow its employment in any manner
contrary to any Law in any relevant jurisdiction including but not limited to
the ISM Code;

 

(c)           in the
event of hostilities in any part of the world (whether war is declared or not),
not cause or permit the Collateral Vessel owned by it to enter or trade to any
zone which is declared a war zone by any government or by that Collateral
Vessel’s war risks insurers unless that Guarantor has (at its expense) effected
any special, additional or modified insurance cover which the Security Trustee
and the war risks insurers may require;

 

(d)           promptly
notify the Security Trustee of any Environmental Claim pending or threatened
against it and shall take such steps in relation to it as the Security Trustee
may reasonably request; and

 

(e)           without
prejudice to the foregoing provisions of this Clause 19.10, not permit or allow
to occur any discharge, release, leak, migration or other escape of any
Environmentally Sensitive Material into the Environment on, under or from any
property owned, leased, occupied or controlled by it, where such discharge,
release, leak, migration or escape would or might have a Material Adverse
Effect.

 

19.11      Provision
of Information Concerning Collateral Vessels

 

Each Guarantor
shall (and the Borrower shall procure that each Guarantor shall) promptly
provide the Security Trustee with any information which it requests regarding:

 

(a)           the
Collateral Vessel owned by it, its employment, position and engagements;

 

(b)           the
Earnings of the Collateral Vessel owned by it and payments and amounts due to
its master and crew;

 

63

 

(c)           any
expenditure incurred, or likely to be incurred, in connection with the
operation, maintenance or repair of the Collateral Vessel owned by it and any
payments made by it in respect of that Collateral Vessel;

 

(d)           any
towages and salvages affecting such Collateral Vessel; and

 

(e)           its
compliance, the Manager’s (and any sub-manager’s) compliance and the compliance
of the Collateral Vessel owned by it with the ISM Code,

 

and, upon the
Security Trustee’s request, provide copies of any current charter relating to
the Collateral Vessel owned by it, of any current guarantee of any such charter
and of that Collateral Vessel’s Safety Management Certificate and any relevant
Document of Compliance.

 

19.12      Notification
of Certain Events

 

Each Guarantor
shall (and the Borrower shall procure that each Guarantor shall) as soon as
reasonably practicable notify the Security Trustee by fax, confirmed forthwith
by letter, of:

 

(a)           any
casualty to the Collateral Vessel owned by it which is or is likely to be or to
become a Major Casualty;

 

(b)           any
occurrence of an event as a result of which the Collateral Vessel owned by it
has become or might, by the passing of time or otherwise, become a Total Loss;

 

(c)           any
material requirement or recommendation made in relation to the Collateral
Vessel owned by it by any insurer or classification society or by any competent
authority which is not immediately complied with in accordance with its terms;

 

(d)           any
arrest or detention of the Collateral Vessel owned by it, any exercise or
purported exercise of any lien on that Collateral Vessel or its Earnings or any
requisition of that Collateral Vessel for hire;

 

(e)           any
Environmental Claim made against that Guarantor or in connection with the
Collateral Vessel owned by it, or any Environmental Incident;

 

(f)            any
claim for breach of the ISM Code being made against that Guarantor, the Manager
or otherwise in connection with the Collateral Vessel owned by it;

 

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

 

(h)           any
other event in respect of a Collateral Vessel which might reasonably be
expected to result in or give rise to any loss, liability or claim whatsoever,

 

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

 

64

 

19.13      Restrictions on Chartering and Appointment of Managers

 

(a)           No
Guarantor shall (and the Borrower shall procure that no Guarantor shall), in
relation to the Collateral Vessel owned or to be acquired by it (without
prejudice to any Existing Time Charter or Time Charter Party):

 

(i)            let
that Collateral Vessel under a demise charter, or permit such a charter to
continue in respect of such Collateral Vessel, for any period (other than in
accordance with paragraph (b) of this Clause 19.13) or enter into any time
charter or voyage charter arrangement in respect of such Collateral Vessel (or
permit such an arrangement to continue);

 

(ii)           charter
that Collateral Vessel otherwise than on bona fide arm’s length terms at the
time when that Collateral Vessel is fixed; and

 

(iii)         appoint
a manager of that Collateral Vessel other than the Manager, any manager retained
pursuant to an Other Management Agreement or any other person acceptable to the
Administrative Agent (including any person to which the Manager has delegated
some or all of its management responsibilities in relation to the Collateral
Vessels in accordance with the Transaction Documents).

 

(b)           Prior
to or immediately upon the entry into any demise charter agreement in respect
of a Collateral Vessel (other than an Existing Bareboat Charter (without
prejudice to the obligation of the Borrower to deliver a Tripartite Agreement
and Bareboat Charter Assignment in respect of such Existing Bareboat Charter in
accordance with Clause 3 (Conditions
Precedent)) but including any Prospective Bareboat Charter), the
Borrower shall procure the delivery to the Administrative Agent of such
security and other documents as the Administrative Agent may require in
connection with such demise charter agreement (including but not limited to any
security documents required pursuant to Clause 18.16(b) (Bareboat Charter Insurance)).

 

(c)           Within
30 days following each Drawdown Date (in respect of each Collateral Vessel to
which the Advance made on such Drawdown Date relates), the Borrower shall
deliver to the Administrative Agent in form and substance satisfactory to it
(x) copies certified as true and complete copies of each of the agreements
relating to the appointment of the relevant third party manager as contemplated
in sub-paragraph (a)(iii) of this Clause 19.13 and (y) a letter of undertaking
or other subordination document executed by such manager in favour of the
Security Trustee.

 

19.14      Notice of
Mortgage

 

Each Guarantor
shall (and the Borrower shall procure that each Guarantor shall), at its cost
and expense, at all times keep the Mortgage registered against the Collateral
Vessel owned by it as a valid first priority mortgage, carry on board that
Collateral Vessel a certified copy of the Mortgage and place and maintain in a
conspicuous place in the navigation room and the master’s cabin of that
Collateral Vessel a framed, printed and fireproof notice reading as follows:
“This Vessel is covered by a first priority mortgage in favour of Nordea Bank
Norge ASA as security trustee.  Under
the terms of the said first priority mortgage neither the owner nor any
charterer 

 

65

 

nor the master
of the Vessel nor any other person has any right, power or authority to create,
incur or permit to be imposed upon this Vessel any lien whatsoever other than
for crew’s wages or salvage.”.  Each Guarantor
further agrees that it shall promptly (and in any event within 30 days) replace any such notice that
becomes illegible, lost, damaged or destroyed for any reason.

 

19.15      Sharing of
Earnings

 

Subject to the
terms of the Transaction Documents, no Guarantor shall enter into any agreement
or arrangement for the sharing of any Earnings of the Collateral Vessel owned
by it, except as permitted by the Administrative Agent.

 

20.          COLLATERAL MAINTENANCE

 

20.1        Collateral
Maintenance Test

 

The Borrower
shall ensure that the Total Collateral Value is at all times equal to or
greater than 140% of the Outstandings at such times (the “Collateral Maintenance Test”).

 

20.2        Notification

 

The Borrower
shall notify the Administrative Agent and the Security Trustee promptly upon
becoming aware of any breach of the Collateral Maintenance Test, whether by
virtue of any valuation made pursuant to Clause 20.4 (Valuation of Collateral Vessels) or
otherwise.

 

20.3        Collateral
Maintenance Prepayment Amount

 

As soon as
practicable after becoming aware of any breach of the Collateral Maintenance
Test, the Administrative Agent shall (in consultation with the Security Trustee
and if applicable, with reference to any information provided to it pursuant to
Clause 20.4 (Valuation of Collateral Vessels))
notify the Borrower of the amount (the “Collateral
Maintenance Prepayment Amount”) of the Outstandings which need to be
discharged to ensure that the circumstances giving rise to such breach no
longer apply and immediately upon receipt of such notice, the Borrower shall
comply with its obligations under Clause 7.2 (Collateral
Maintenance Test).

 

20.4        Valuation
of Collateral Vessels

 

For the
purposes of this Agreement, the fair market value of a Collateral Vessel on any
date (the “Individual Collateral Value”)
is the average of the three valuations shown in the Appraisal Package relating
to such Collateral Vessel.

 

20.5        Quarterly
Appraisal Packages

 

The Borrower
shall provide to the Administrative Agent as soon as the same becomes
available, but in any event within 30 days after the end of each Financial
Quarter, a Quarterly Appraisal Package in relation to each Collateral Vessel in
form and substance satisfactory to the Administrative Agent.

 

66

 

20.6        Updated
Appraisal Package

 

Without
prejudice to Clause 20.5 (Quarterly
Appraisal Packages), the Borrower shall provide to the
Administrative Agent promptly upon request of the Administrative Agent, an
Updated Appraisal Package in relation to any Collateral Vessel designated by
the Administrative Agent.

 

20.7        Appraisals
Binding

 

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

 

20.8        Provision of Information Concerning Appraisals

 

The Obligors
shall promptly provide the Administrative Agent and any independent appraiser
with any information which the Administrative Agent or that independent
appraiser may request in relation to the preparation of an Appraisal Package
(or part thereof) and, if the Obligors fail to provide the information by the
date specified in the relevant request, such Appraisal Package may be
constituted on any basis and assumptions which each independent appraiser or
the Administrative Agent considers prudent.

 

20.9        Commercial
Management Reports

 

Promptly upon
request of the Administrative Agent, the Borrower shall (in consultation with
the Manager) provide to the Administrative Agent in form and substance
satisfactory to it a commercial management report (a “Commercial Management Report”) relating to
the Collateral Vessels.

 

21.          POSITIVE UNDERTAKINGS

 

21.1        Application
of Advances

 

The Borrower
shall apply the proceeds of each Advance made to it exclusively for the
purposes specified in Clause 2.2 (Purposes).

 

21.2        Financial
Assistance and Fraudulent Conveyance

 

Without
prejudice to Clause 26.12 (Fraudulent
Conveyance), each Obligor shall (and the Borrower shall procure that
each member of the Group shall) ensure that all payments and provision of
guarantees, security and other assistance by and between members of the Group
(or between any member of the Group and any other person) have been and will be
made in compliance with applicable local laws and regulations concerning
fraudulent conveyance, financial assistance by a company for the acquisition of
or subscription for its own shares or the shares of its parent or any other
company or concerning the protection of shareholders’ capital.

 

21.3        Necessary
Authorisations

 

Each Obligor
shall (and the Borrower shall procure that each member of the Group shall):

 

67

 

(a)           obtain,
comply with and do all that is necessary to maintain in full force and effect
all Necessary Authorisations; and

 

(b)           supply
certified copies to the Administrative Agent of all Necessary Authorisations.

 

21.4        Compliance
with Applicable Laws

 

Each Obligor
shall (and the Borrower shall procure that each member of the Group shall)
comply with all applicable Laws to which it and the Collateral Vessel that it
owns may be subject.

 

21.5        Representations
Untrue

 

After the
delivery of any Drawdown Request and before the making of the Advance requested
under it, each Obligor shall (and the Borrower shall procure that each member
of the Group shall) notify the Administrative Agent of the occurrence of any
event of which it is aware which will cause or may reasonably be expected to
cause any of the representations deemed to be repeated pursuant to Clause 15.31
(Repetition) to be untrue at or
before the time of the making of such Advance.

 

21.6        Corporate
Governance

 

Prior to or
immediately upon a Corporate Governance Trigger, the Borrower shall procure
that at least 50% of its board of directors in office following such Corporate
Governance Trigger are at all times independent of the Parent.

 

21.7        Listing

 

Following the
commencement of substantive preparations by the Borrower in relation to a
listing of all or a portion of the share capital of the Borrower on the New
York Stock Exchange, the Borrower shall provide the Administrative Agent on
demand with such information and other assurances relating to the same as it
may require for the purposes of determining whether such listing will
constitute a Permitted Listing for the purposes of this Agreement.

 

21.8        Infringement
of Intellectual Property

 

Each Obligor
shall (and the Borrower shall procure that each member of the Group shall):

 

(a)           notify
the Administrative Agent promptly of any infringement or suspected infringement
or any challenge to the validity of any of the present or future Intellectual
Property Rights owned, used or exploited by it which may come to its notice and
supply the Administrative Agent with all information in its possession relating
thereto if the same might have a Material Adverse Effect and take all necessary
steps (including, without limitation, the institution of legal proceedings) to
prevent third parties infringing such Intellectual Property Rights to the
extent that failure to do so might have a Material Adverse Effect;

 

(b)           take
all necessary action to safeguard and maintain its rights, present and future,
in or relating to all Intellectual Property Rights owned, used or exploited by
it to the extent that 

 

68

 

failure to do so might have a Material
Adverse Effect (in each case including, without limitation, paying all
applicable renewal fees, licence fees and other outgoings in connection with
the same); and

 

(c)           not
enter into any licence or other agreement or arrangement in respect of Intellectual
Property Rights other than on normal arms’ length commercial terms and comply
with all licences to it of any Intellectual Property Rights in each case to the
extent that failure to do so might have a Material Adverse Effect.

 

21.9        Ranking
of Claims

 

Each Obligor
shall (and the Borrower shall procure that each member of the Group shall)
ensure that at all times the claims of the Finance Parties against it under the
Finance Documents rank at least pari passu with the claims of all its
unsecured creditors save those whose claims are preferred by any bankruptcy,
insolvency, liquidation or similar laws of general application.

 

21.10      Pay Taxes

 

Each Obligor
shall (and the Borrower shall procure that each member of the Group shall),
file all tax returns on time and pay and discharge all taxes and governmental
charges payable by or assessed upon it or any Collateral Vessel prior to the
date on which the same become overdue (and without causing any Encumbrance to
be created), save to the extent the relevant Obligor can demonstrate to the
satisfaction of the Administrative Agent that the same are being contested in
good faith on the basis of appropriate professional advice and that adequate
reserves have been established therefor in accordance with GAAP and does not
involve any material risk of the sale, forfeiture or loss of any Collateral
Vessel or any adverse effect or any criminal liability on the part of any
member of the Parent Group or any Finance Party.

 

21.11      Hedging

 

The Borrower
shall:

 

(a)           within 3 Business Days following the date of this Agreement, enter into and maintain interest rate hedging arrangements and
confirmations with Hedge Counterparties to limit the Group’s exposure to
adverse movements in interest rates in relation to the Facility;

 

(b)           ensure
that such arrangements and confirmations are entered into in the form of
Acceptable Hedging Agreements (subject to such amendments as the relevant Hedge
Counterparty may require, provided that the Borrower shall ensure that (x) in
each case, such arrangements cover an approximate period of 5 years from the
Initial Borrowing Date and (y) in aggregate, are in respect of not less than
$500,000,000 of the Outstandings which will be applicable upon full utilisation
of the Facility); and

 

(c)           promptly
provide the Administrative Agent with certified true copies of each such
Hedging Agreement entered into.

 

69

 

21.12      Business
Systems

 

Each Obligor
shall ensure that the equipment and systems associated with the Group Business
and each member of the Group are designed, constructed, completed, tested,
commissioned, equipped, operated and maintained in all material respects in
accordance with:

 

(a)           all
Necessary Authorisations;

 

(b)           all
applicable Laws; and

 

(c)           good
practice in the shipping industry.

 

21.13      Access to
Records

 

Each Obligor
shall (and the Borrower shall procure that each member of the Group shall), at
reasonable times and on reasonable prior notice subject only to the provision
of any confidentiality undertaking required by such Obligor (acting
reasonably), afford the Administrative Agent or any Finance Party, any
professional adviser to the Administrative Agent or such Finance Party, or
other representative and/or contractor of the Administrative Agent or such
Finance Party (an “Inspecting Party”)
access to, and permit such Inspecting Party to inspect or observe, such part of
the Group Business as is owned or operated by such Obligor and to have access
to books, records, accounts, documents, computer programmes, data or other
information in the possession of or available to such Obligor or member of the
Group and to take such copies as may be considered appropriate by such
Inspecting Party.

 

21.14      Further
Assurance

 

(a)           Each
Guarantor being a Collateral Vessel Owner shall (and the Borrower shall procure
that each such Guarantor shall) at its own expense, promptly take all such
action as the Administrative Agent or the Security Trustee may require for the
purpose of perfecting or protecting any Finance Party’s rights with respect to
the Encumbrances intended to be created or evidenced by the Security Documents.

 

(b)           At any
time whilst there is a continuing Default each Obligor which is a Collateral
Vessel Owner shall execute and deliver to the Security Trustee such additional
Security Documents in such form and in relation to such assets as the Security
Trustee may require.

 

21.15      Compliance
with Transaction Documents

 

The Borrower
and each Obligor shall procure the prompt compliance by the Parent, the Charterer
and the Manager with each of the provisions of the Transaction Documents to
which the Parent, the Charterer or the Manager (as the case may be) are a
party.

 

70

 

22.          NEGATIVE UNDERTAKINGS

 

22.1        Negative
Pledge

 

No Obligor
shall (and the Borrower shall procure that no member of the Group shall),
without the prior written consent of an Instructing Group (or in the case of
any Encumbrance in respect of the Senior Notes, all the Lenders), create or
permit to subsist any Encumbrance over all or any of its present or future
revenues or assets, other than Permitted Encumbrances or any Encumbrances to be
released in accordance with Clause 4.1 (e)(ii) (Conditions to Drawdown) (but including any such Encumbrances
not released in accordance with such Clause).

 

22.2        Loans

 

No Obligor
shall (and the Borrower shall procure that no member of the Group shall),
without the prior written consent of an Instructing Group, be the creditor in
respect of any Financial Indebtedness.

 

22.3        Financial
Indebtedness

 

No Obligor
shall (and the Borrower shall procure that no member of the Group shall),
without the prior written consent of an Instructing Group incur, create or
permit to subsist or have outstanding any Financial Indebtedness or enter into
any agreement or arrangement whereby it is entitled to incur, create or permit
to subsist any Financial Indebtedness other than:

 

(a)           Financial
Indebtedness outstanding under the Finance Documents or the Senior Note
Documents;

 

(b)           subject
to Clause 22.4 (c) (Guarantees)
and to Clause 23 (Acceding Guarantors),
Financial Indebtedness incurred by any member of the Group for the purposes of
funding an Additional Acquisition or Financial Indebtedness incurred in
relation to the Additional Vessel acquired pursuant to such Additional
Acquisition by virtue of a sale and lease-back transaction as contemplated
under Clause 22.7(b)(v) (Disposals),
provided that (at all times) the amount of such Financial Indebtedness does not
exceed 70% of the value (as determined by the Administrative Agent in
consultation with the Borrower) of such Additional Vessel; and

 

(c)           Financial
Indebtedness to be discharged in accordance with Clause 4.1 (e)(i) (Conditions to Drawdown), provided that
such Financial Indebtedness is discharged, in full, on or prior to 31 March
2004.

 

22.4        Guarantees

 

No Obligor
shall (and the Borrower shall procure that no member of the Group shall) grant
or agree to grant or permit to subsist any guarantee other than:

 

(a)           guarantees,
indemnities or performance bonds given in the ordinary course of the Group
Business;

 

71

 

(b)           guarantees
contained in the Finance Documents or the Senior Note Documents;

 

(c)           subject
to Clause 23 (Acceding Guarantors),
guarantees in respect of Financial Indebtedness of itself or any other member
of the Group which is contemplated and permitted under Clause 22.3(b) (Financial Indebtedness); or

 

(d)           guarantees
in respect of any Financial Indebtedness to be discharged in accordance with
Clause 4.1 (e)(i) (Conditions to Drawdown)
to the extent such Financial Indebtedness is permitted pursuant to Clause 22.3
(c) (Financial Indebtedness).

 

22.5        Dividends,
Distributions and Share Capital

 

Other than (in
the case of the Borrower) pursuant to (x) a Permitted Capital Payment (but
without prejudice to Clause 7.3 (Change of
Control)), or (y) an Equity Conversion in accordance with the Deed
of Undertaking, no Obligor shall (and the Borrower shall procure that no member
of the Group shall):

 

(a)           (i)            declare,
make or pay any dividend (or interest on any unpaid dividend), charge, fee or
other distribution (whether in cash or in kind) on or in respect of any of its
shares or redeem any preference shares; or

 

(ii)           repay
or distribute any share premium account;

 

save
(in the case of paragraph (i) above) to the extent that payment of such
dividend or other distribution is made in order to facilitate the making of
payments required pursuant to the terms of the Finance Documents; or

 

(b)           (i)            redeem,
repurchase, defease, retire or repay any of its share capital, or resolve to do
so;

 

(ii)           issue
any warrants, notes or bonds which are convertible into shares;

 

(iii)         issue
any shares which by their terms are redeemable; or

 

(iv)          issue
any share capital to any person (other than pursuant to the incorporation of a
Substitute Vessel Owner as a wholly-owned Subsidiary of the Borrower or in
connection with an Additional Acquisition to be made in accordance with this
Agreement).

 

22.6        Amendments
to Documents

 

No Obligor
shall (and the Borrower shall procure that no member of the Group shall),
without the prior written consent of an Instructing Group, amend, supplement,
supersede or waive (by way of express consent or otherwise):

 

(a)           subject
to Clause 21.11(b) (Hedging), any
term of any Transaction Document; or

 

72

 

(b)           its
by-laws or other constitutional documents or enter into any agreements or
arrangements with the Parent,

 

or purport to
release or limit any of the obligations of the Parent, the Manager, the
Charterer or any Obligor under any Transaction Document (except to the extent
expressly permitted under the Finance Documents).

 

22.7        Disposals

 

No Obligor
shall (and the Borrower shall procure that no member of the Group shall),
without the prior written consent of an Instructing Group or except as
expressly permitted under the Finance Documents, either in a single transaction
or in a series of transactions, sell, transfer, lease or otherwise dispose of:

 

(a)           any
shares in any of its Subsidiaries (other than (x) in a Collateral Vessel Owner
to the extent that the applicable Collateral Vessel has been transferred to a
Substitute Vessel Owner in accordance with this Agreement or (y) without
prejudice to Clause 7.3 (Change of Control),
pursuant to a Permitted Capital Payment);

 

(b)           all or
any part of its revenues, assets, other shares, business or undertakings
(including its Earnings or Insurances in respect of any Collateral Vessel)
other than:

 

(i)            the
expenditure of cash in the ordinary course of the Group Business, on arms’
length terms;

 

(ii)           the
lending of cash and the repayment of cash lent or credit provided in compliance
with or as expressly permitted by the terms of the Finance Documents;

 

(iii)         the
payment of fees, interest (including any coupon) and expenses under the Finance
Documents or the Senior Note Documents (and any other amounts payable by the
Borrower expressly under the terms of any Hedge Agreement entered into by it in
accordance with this Agreement);

 

(iv)          disposals
of Cash Equivalent Investments on arms’ length terms; or

 

(v)            the
disposal of any Additional Vessel acquired in accordance with this Agreement,
including on terms whereby such asset is or may be leased to or reacquired or
acquired by any member of the Group; or

 

(c)           any
Collateral Vessel, other than (x) a disposal of a Collateral Vessel owned by a
Collateral Vessel Owner incorporated in Singapore to a Substitute Vessel Owner
incorporated in Liberia in accordance with this Agreement or (y) a disposal of
any other Collateral Vessel by a Collateral Vessel Owner to a Substitute Vessel
Owner in accordance with this Agreement, subject (in the case of (y)) to the
prior consent of the Administrative Agent, which shall not be unreasonably
withheld (and, in the case of (x) and (y), the provision, prior to or
immediately upon such disposal, of such security, subordination and other
documents in respect of the relevant Collateral Vessel as the 

 

73

 

Administrative Agent may require), provided
that, on or after 31 December 2004, any disposal of a Collateral Vessel to a
Substitute Vessel Owner shall require the prior consent of an Instructing
Group,

 

provided that,
all such sales, transfers, leases or other disposals as are referred to in and
permitted by paragraph (b) above shall be made only for cash consideration
payable in full at the time of disposal.

 

22.8        Change of
Business

 

No Obligor
shall (and the Borrower shall procure that no member of the Group shall),
without the prior written consent of an Instructing Group or save as otherwise
expressly permitted by the terms of the Finance Documents:

 

(a)           make
(or threaten to make) any material change in the nature of the Group Business;

 

(b)           cease
(or threaten to cease) any material part of the Group Business;

 

(c)           carry
on any business other than the Group Business; or

 

(d)           charter
in vessels.

 

22.9        Mergers

 

No Obligor
shall (and the Borrower shall procure that no member of the Group shall), without
the prior written consent of an Instructing Group amalgamate, consolidate or
merge with any other company or person.

 

22.10      Joint
Ventures

 

No Obligor
(other than the Borrower) shall, (and the Borrower shall procure that no
Obligor shall) enter into or acquire any interest in any Joint Venture, except
for any Joint Venture entered into in respect of an Additional Acquisition made
or to be made in accordance with this Agreement.

 

22.11      Intra-Group
Transactions

 

Except as
expressly contemplated under the Offering Memorandum, no Obligor shall (and the
Borrower shall procure that no member of the Group shall) without the prior
written consent of an Instructing Group enter into any arrangement or contract
with any other member of the Parent Group unless such arrangement or contract
is entered into on an arms’ length basis and on reasonable commercial terms and
is otherwise expressly permitted under this Agreement.

 

22.12      Change in
Financial Year

 

No Obligor
shall (and the Borrower shall procure that no member of the Group shall) change
the end of its financial year (and in the case of the Borrower, the financial
year of the Group) from 31 December.

 

74

 

22.13      Change in
Auditors

 

The Borrower
shall not change its auditors or those of the Group, save to another
internationally recognised firm of chartered accountants which is reasonably
acceptable to the Administrative Agent and is willing to provide the reports
referred to in Clause 16.1 (Financial Statements) relating to each
Obligor or the Group (on the same or substantially the same basis and format as
the existing auditors), and provided that an Obligor has first given prior
written notice of such proposed change to the Administrative Agent.

 

22.14      Ownership

 

The Borrower
shall ensure that:

 

(a)           each
Collateral Vessel Owner from time to time owned or acquired by any member of
the Group shall at all times be a wholly-owned Subsidiary of the Borrower, in
each case (excluding the Collateral Vessel Owners incorporated in Singapore or
the Isle of Man, as at the date of this Agreement), directly owned by the
Borrower without the involvement of any intermediate Holding Companies in
respect of such Collateral Vessel Owner; and

 

(b)           no
such Collateral Vessel Owner shall be a Holding Company.

 

22.15      Legal Name
and Jurisdiction of Incorporation

 

Without
prejudice to Clause 22.7(c) (Disposals)
and the other provisions of this Agreement, no Obligor (and the Borrower shall
procure that no member of the Group shall) change its legal name or the
jurisdiction in which it is incorporated or organised.

 

22.16      Limitations
on Hedging

 

No Obligor
shall (and the Borrower shall ensure that no member of the Group shall) enter
into any Hedging Agreement other than:

 

(a)           Hedging
Agreements specifically permitted under Clause 21.11 (Hedging); or

 

(b)           spot
or forward foreign exchange contracts solely entered into in connection with
the Group Business, which are not entered into for investment or speculative
purposes.

 

22.17      Acquisitions
and Investments

 

Save as
otherwise expressly permitted under this Agreement, no Obligor shall (and the
Borrower shall procure that no member of the Group shall) purchase, subscribe
for or otherwise acquire any shares (or other securities or any interest
therein) in (or incorporate) any company or acquire (by subscription or
otherwise) or invest in any business or (save in the ordinary course of the
Group Business) purchase or otherwise acquire any other assets (including, but
not limited to, vessels) other than as follows:

 

(a)           the
purchase of Cash Equivalent Investments;

 

75

 

(b)           the
Acquisitions and (subject to Clause 23 (Acceding
Guarantors)) any Additional Acquisition (or by virtue of the
incorporation or acquisition of a Subsidiary by the Borrower which is to be an
Additional Vessel Owner or a Substitute Vessel Owner) or pursuant to any sale
and lease-back transaction as contemplated under Clause 22.7(b)(v) (Disposals), in each case, in accordance
with the Transaction Documents provided that, for the avoidance of doubt, no
part of any Advance may be applied other than in accordance with Clause 2.2 (Purposes); and

 

(c)           subject
to Clause 23 (Acceding Guarantors),
the acquisition of a Collateral Vessel by a Substitute Vessel Owner in
accordance with Clause 22.7(c) (Disposals).

 

22.18      Capital
Expenditure

 

No Obligor
shall (and the Borrower shall procure that no member of the Group shall) incur
any capital expenditure, other than:

 

(a)           capital
expenditure incurred in relation to the Acquisitions or any Additional
Acquisition in accordance with the Finance Documents;

 

(b)           capital expenditure reasonably incurred in the
ordinary course of owning, operating, maintaining and repairing a Collateral
Vessel or Additional Vessel; and

 

(c)           in the
case of the Borrower, for the purposes of any Permitted Capital Payment.

 

22.19      Bank
Accounts

 

No Obligor
shall (and the Borrower shall procure that no Obligor shall) without the prior
written consent of the Administrative Agent (acting on the instructions of an
Instructing Group), open maintain or have any interest (whether alone or with
any other person) in any account with a bank or other financial institution
providing like services other than:

 

(a)           accounts
secured in favour of the Security Trustee pursuant to the Security Documents
(being the Borrower Account or any other account maintained with a financial
institution other than the Security Trustee which has a rating of at least A
from Standard & Poor’s Rating Services and at least A2 from Moody’s
Investor’s Services, Inc. where such other account is the subject of an
Encumbrance in favour of the Security Trustee in form and substance
satisfactory to it);

 

(b)           other
accounts maintained with the Administrative Agent pursuant to the requirements
of the Finance Documents; or

 

(c)           any
account maintained in respect of an Additional Vessel or a member of the Group
(other than an Obligor) and any other account maintained otherwise than in
connection with the Transaction (as determined by the Borrower in good faith).

 

76

 

22.20      Centre of
Main Interests

 

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

 

23.          ACCEDING GUARANTORS

 

(a)           In the
event of a change of legal and registered ownership of a Collateral Vessel from
the owner of such Collateral Vessel to another wholly-owned Subsidiary of the
Borrower in accordance with Clause 22.7(c) (Disposals)
and Clause 22.17(c) (Acquisitions and
Investments) (a “Substitute
Vessel Owner”), the guarantee granted by the
previous Collateral Vessel Owner in respect of such Collateral Vessel pursuant
to Clause 26 (Guarantee and Indemnity)
shall (following receipt by the Administrative Agent of a written request of
from the Borrower) be automatically released subject to the accession of such
Substitute Vessel Owner to this Agreement as an Acceding Guarantor in
accordance with this Clause 23.  The
Borrower shall procure that on or prior to the date such legal and registered
ownership is transferred to such Substitute Vessel Owner, there is delivered to
the Administrative Agent (in form and substance satisfactory to it), an Accession
Notice (together with such security and subordination documentation as the
Administrative Agent may require, including but not limited to a Mortgage and
(if applicable) a Deed of Covenant in respect of such Collateral Vessel) duly
executed by itself (if applicable) and the relevant Substitute Vessel Owner
together with such other documents as the Administrative Agent may require (in
each case, in form and substance satisfactory to it), evidencing (w) the right
of such Substitute Vessel Owner to rely (as a beneficiary) on the Performance
Guarantee on the same basis as the other Collateral Vessel Owners (x) the
accession of such Substitute Vessel Owner to the terms of the Transaction
Documents (in addition to this Agreement) to which the Collateral Vessel Owners
are collectively a party (y) the validity, due capacity, authorisation and
execution of such Accession Notice (and subordination, security and other
documentation referred to above) by each of the parties thereto and (z) the
appointment by such Substitute Vessel Owner of an agent to accept service of
process in England in respect of the Finance Documents to which such Substitute
Vessel Owner is from time to time a party.

 

(b)           In
relation to each Additional Vessel Owner (if any) in respect of which one or
more of the Obligors is to assume guarantee obligations (as contemplated under
Clause 22.4(c) (Guarantees)), the
Borrower shall procure that on or prior to the date such guarantee obligations
are assumed, there is delivered to the Administrative Agent (in form and
substance satisfactory to it), an Accession Notice duly executed by itself and
the relevant Additional Vessel Owner together with such other documents as the
Administrative Agent may require, evidencing (x) the validity, due capacity, authorisation
and execution of such Accession Notice by the Borrower and the relevant
Additional Vessel Owner and (y) the appointment by such Additional Vessel Owner
of an agent to accept service of process in England in respect of the Finance
Documents to which such Additional Vessel Owner is from time to time a party.

 

77

 

(c)           Upon
delivery of a duly executed Accession Notice to the Administrative Agent
pursuant to paragraph (a) or (b) above, the Substitute Vessel Owner or the
Additional Vessel Owner, as the case may be, being party to it, the other
Obligors and the Finance Parties, will assume such obligations towards one
another and/or acquire such rights against each other as they would each have
assumed or acquired had such Substitute Vessel Owner or Additional Vessel
Owner, as the case may be, been an original party to this Agreement as an
Original Guarantor, and such Substitute Vessel Owner or Additional Vessel
Owner, as the case may be, shall become a party to this Agreement as an
Acceding Guarantor.

 

24.          EVENTS OF DEFAULT

 

Each of
Clauses 24.1 (Non-Payment) to Clause 24.19 (Cancellation of Insurances) describes the
circumstances which constitute an Event of Default for the purposes of this
Agreement.

 

24.1        Non-Payment

 

(a)           An
Obligor fails to pay any amount of interest due from it under any Finance
Document at the time, in the currency and in the manner specified in this
Agreement unless failure to pay was due solely to technical or administrative
error in the transmission of funds and the relevant sum is paid in full within
5 Business Days of the due date.

 

(b)           An
Obligor fails to pay any amount of principal due from it under any Finance
Document at the time, in the currency and in the manner specified in this
Agreement.

 

24.2        Covenants
of Obligors

 

(a)           An
Obligor fails duly to perform or comply with its obligations (if any) in
respect of:

 

(i)            Clause
4.3 (Legal Opinions), Clause 16 (Financial Information), Clause 18 (Insurance), Clause 19.1 (Collateral Vessels’ Name and Registration),
Clause 19.2 (Repair and Classification),
Clause 19.9 (Actions of Guarantor),
Clause 21.1 (Application of Advances),
Clause 21.2 (Financial Assistance and
Fraudulent Conveyance), Clause 21.3 (Necessary Authorisations), Clause 21.4 (Compliance with Applicable Laws), Clause
21.9 (Ranking of Claims), Clause
21.11 (Hedging), Clause 22.1 (Negative Pledge), Clause 22.2 (Loans), Clause 22.3 (Financial Indebtedness), Clause 22.4 (Guarantees), Clause 22.5 (Dividends, Distributions and Share Capital),
Clause 22.6 (Amendments to Documents),
Clause 22.7 (Disposals), Clause
22.8 (Change of Business), Clause
22.9 (Mergers), Clause 22.10 (Joint Ventures), Clause 22.14 (Ownership), 22.15 (Legal Name and Jurisdiction of Incorporation),
Clause 22.16 (Limitations on Hedging),
Clause 22.17 (Acquisitions and Investments),
Clause 22.18 (Capital Expenditure),
Clause 22.19 (Bank Accounts) or
Clause 22.20 (Centre of Main Interests);
or

 

(ii)           the
Collateral Maintenance Test.

 

(b)           The
financial condition of the Group fails to comply with any provision of Clause
17 (Financial
Condition) or any other requirement of Clause 17 (Financial
Condition) is not satisfied.

 

78

 

24.3        Other
Obligations of Obligors

 

An Obligor
fails duly to perform or comply with any of the other obligations expressed to
be assumed by it in any of the Transaction Documents (other than any of those
referred to in Clauses 24.1 (Non-Payment) and 24.2 (Covenants of
Obligors) and excluding any Senior Note Default) and such failure,
if capable of remedy, is not so remedied within 30 days of such failure to
perform or comply having occurred, provided that, in relation to a failure by
the Borrower to comply with Clause 21.6 (Corporate
Governance), a grace period of 60 days shall apply.

 

24.4        Covenants
of Parent, Charterer and Manager

 

The Parent,
the Charterer or the Manager fails duly to perform or comply with any provision
of the Transaction Documents to which it is a party.

 

24.5        Misrepresentation

 

Any
representation, warranty or statement made or deemed to have been made by an
Obligor in any Finance Document or in any notice or other document, certificate
or statement delivered by it pursuant to it or in connection therewith is or
proves to have been incorrect or misleading in any material respect when made
or deemed to have been made.

 

24.6        Cross
Default

 

(a)           Any
Financial Indebtedness of any member of the Parent Group is not paid when due
or within any originally applicable grace period (including but not limited to
any Financial Indebtedness arising under the Senior Note Documents);

 

(b)           any
Financial Indebtedness of any member of the Parent Group is declared (or is
capable of being declared) to be or otherwise becomes due and payable prior to
its specified maturity as a result of an event of default, however described
(including but not limited to any Financial Indebtedness arising under the
Senior Note Documents);

 

(c)           any
creditor of any member of the Parent Group becomes entitled to declare any
Financial Indebtedness of any member of the Parent Group due and payable prior
to its specified maturity as a result of an event of default, however described
(including but not limited to any Financial Indebtedness arising under the
Senior Note Documents); or

 

(d)           any
commitment for any Financial Indebtedness of any member of the Parent Group is
cancelled or suspended by a creditor of any member of the Parent Group as a
result of an event of default, however described (including but not limited to
any Financial Indebtedness arising under the Senior Note Documents),

 

provided
that, no Event of Default will occur under this Clause 24.6 if (x) the
aggregate amount of Financial Indebtedness and/or commitment for Financial
Indebtedness falling within paragraphs (a) to (d) above is less than
$10,000,000 (or its equivalent in other currencies) or (y) such event is caused otherwise than by a failure of any
member of the Parent Group (other than the Charterer, the Manager or any member
of the Group) to pay an amount falling due in respect of it, where such event
is remedied or waived within 30 

 

79

 

days
of its occurrence in accordance with any underlying agreements (for the
avoidance of doubt, notwithstanding the expiry of any applicable grace periods
relating thereto under such agreements).

 

24.7        Insolvency

 

Any member of
the Parent Group is unable (or deemed for the purposes of any applicable Law,
unable) to pay its debts as they fall due, ceases or suspends generally the
payment of its debts or announces an intention to do so, or commences
negotiations with any one or more of its creditors (or makes a proposal to do
so) with a view to the general readjustment or rescheduling of its Indebtedness
or makes a general assignment for the benefit of or a composition with its
creditors or a moratorium is declared in respect of the Indebtedness of any
member of the Parent Group (including, without limitation, pursuant to the
Bankruptcy Code).

 

24.8        Winding-up

 

Any member of the
Parent Group takes any corporate action or other steps are taken or legal
proceedings are started for its winding-up, dissolution, administration or
re-organisation or for the appointment of a liquidator, receiver,
administrator, administrative receiver, conservator, custodian, trustee or
similar officer of it or of any or all of its revenues and assets (including,
without limitation, pursuant to the Bankruptcy Code).

 

24.9        Execution
or Distress

 

Any execution,
expropriation, attachment, sequestration or distress is levied against, or an
encumbrancer takes possession of, the whole or any part of, the property,
undertaking or assets of any member of the Parent Group having an aggregate
value of more than $10,000,000 (or its equivalent in other currencies) and the
same is not discharged within 30 days.

 

24.10      Judgment

 

Without
prejudice to the provisions of Clause 24.9 (Execution
or Distress), any judgment, award or similar process in an amount
exceeding $10,000,000 (or its equivalent in other currencies) is made, issued
or levied against an Obligor or any part of its assets:

 

(a)           in
respect of which there is no right of appeal or any right of appeal has lapsed
or, if applicable, the relevant court decides not to review the same within 30
days (or where such proceedings took place in a jurisdiction other than that in
which the relevant Obligor is organised or incorporated, 60 days) after receipt
of a relevant request or filing by the applicable Obligor for it to do so; and

 

(b)           such
judgment, award or similar process is not satisfied, discharged or released
within 30 days (or where such proceedings took place in a jurisdiction other
than that in which the relevant Obligor is organised or incorporated, 60 days)
after its making, issue or levy or, if earlier, immediately following such
decision by the relevant court,

 

80

 

provided that,
if such court decides to review the judgment, award or similar process, it
shall be an Event of Default if an Instructing Group considers that such review
does not have a reasonable chance of success for the relevant Obligor within a
reasonable period of time.

 

24.11      Similar
Events

 

Any event
occurs which, under the laws of any jurisdiction, has a similar or analogous
effect to any of those events mentioned in Clause 24.7 (Insolvency), 24.8 (Winding-up)
or Clause 24.9 (Execution or Distress).

 

24.12      Repudiation

 

Any member of
the Parent Group repudiates any of the Transaction Documents to which it is
party or does or causes to be done any act or thing evidencing an intention to
repudiate any of the Transaction Documents to which it is party.

 

24.13      Illegality

 

At any time it
is or becomes unlawful for a member of the Parent Group to perform or comply
with any or all of its obligations under any of the Transaction Documents to
which it is party or any of the obligations of a member of the Parent Group
under any of the Transaction Documents to which it is party are not or cease to
be legal, valid and binding.

 

24.14      Qualifications
of Financial Statements

 

The auditors
qualify their report on any audited financial statements of the Group in any
regard which, in the opinion of the Administrative Agent acting on the
instructions of an Instructing Group, is material in the context of the Finance
Documents and the transactions contemplated thereby.

 

24.15      Nationalisation

 

y or under the
authority of any government:

 

(a)           the
management of any member of the Parent Group is wholly or partially displaced
or the authority of any member of the Parent Group in the conduct of its
business is wholly or partially curtailed; or

 

(b)           all or
a majority of the issued shares of any member of the Parent Group or the whole
or any part the book value of which is 10% or more of the book value of the
whole of its revenues or assets is seized, nationalised, expropriated or
compulsorily acquired.

 

24.16      Senior Note
Default

 

A Senior Note
Default occurs.

 

81

 

24.17      Material
Adverse Effect

 

Any event or
circumstance occurs which in the opinion of the Administrative Agent (acting on
the instructions of an Instructing Group) would or might have a Material
Adverse Effect.

 

24.18      Consents

 

Any consent,
authorisation, licence, certificate or approval of a registration with or declaration
to any government authority or official required in connection with this
Agreement, including, without limitation:

 

(i)            any
Necessary Authorisations; or

 

(ii)           the
registration of any Collateral Vessels; or

 

(iii)         the
operation, use, management, maintenance, employment or otherwise in respect of
any Collateral Vessel,

 

is modified or
amended in a manner unsatisfactory to the Administrative Agent or is withheld,
terminated or not renewed, or otherwise ceases to be in full force and effect.

 

24.19      Cancellation
of Insurances

 

A notice of
cancellation in respect of the Insurances is given and not rescinded before
such cancellation becomes effective unless replacement insurance coverage
complying with the terms of this Agreement is effected by the relevant Obligor
or other responsible person before such cancellation becomes effective.

 

24.20      Acceleration

 

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

 

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

 

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

 

(c)           exercise
or direct the Security Trustee to exercise any rights and remedies (including
any right to demand cash collateral by deposit in such interest-bearing account
as the Administrative Agent may specify under the Security Documents).

 

82

 

24.21      Repayment
on Demand

 

If, pursuant
to paragraph (a) of Clause 24.20 (Acceleration), the Administrative Agent
declares all or any part of the Outstandings to be due and payable on demand of
the Administrative Agent, then, and at any time thereafter, the Administrative
Agent may (and, if so instructed by an Instructing Group, shall) by written
notice to the Borrower:

 

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

 

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

 

25.          DEFAULT INTEREST

 

25.1        Consequences
of Non-Payment

 

If any sum due
and payable by an Obligor under this Agreement is not paid on the due date
therefor in accordance with the provisions of Clause 30 (Payments) or if any sum due
and payable by an Obligor pursuant to a judgment of any court in connection
with this Agreement is not paid on the date of such judgment, the period
beginning on such due date or, as the case may be, the date of such judgment
and ending on the Business Day which the obligation of such Obligor to pay the
Unpaid Sum is discharged shall be divided into successive periods, each of
which (other than the first) shall start on the last day of the preceding such
period (which shall be a Business Day) and the duration of each of which shall
(except as otherwise provided in this Clause 25 (Default Interest)) be selected by the Administrative Agent.

 

25.2        Default
Rate

 

During each
such period relating thereto as is mentioned in Clause 25.1 (Consequences
of Non-Payment) an Unpaid Sum shall bear interest at the rate
per annum which is the sum from time to time of 2%, the Margin and LIBOR as the
case may be on the Quotation Date therefor, provided that:

 

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

 

(b)           if
such Unpaid Sum is all or part of an Advance which became due and payable on a
day other than the last day of an Interest Period relating thereto, the first
Interest Period applicable to it shall be of a duration equal to the unexpired
portion of that Interest Period 

 

83

 

and the rate of interest applicable thereto
from time to time during such Interest Period shall be that which exceeds by 2%
the rate which would have been applicable to it had it not so fallen due.

 

25.3        Maturity
of Default Interest

 

Any interest
which shall have accrued under Clause 25.2 (Default Rate) in respect of
an Unpaid Sum shall be due and payable and shall be paid by the Obligor owing
such sum at the end of the period by reference to which it is calculated or on
such other dates as the Administrative Agent may specify by written notice to
such Obligor.

 

25.4        Construction
of Unpaid Sum

 

Any Unpaid Sum
shall (for the purposes of this Clause 25 (Default Interest), Clause 12 (Increased
Costs) and Clause 28 (Borrower’s Indemnities)) be treated as an
advance and accordingly in those provisions the term “Advance” includes any
Unpaid Sum and the term “Interest Period”, in relation to an Unpaid Sum,
includes each such period relating thereto as is mentioned in Clause 25.1 (Consequences
of Non-Payment).

 

26.          GUARANTEE AND INDEMNITY

 

26.1        Guarantee

 

Each Guarantor
irrevocably and unconditionally guarantees, jointly and severally, to each of
the Finance Parties the due and punctual payment by each Obligor of all sums
payable by it under each of the Finance Documents to the Finance Parties (or
any of them) and agrees that promptly on demand it will pay to the
Administrative Agent each and every sum of money which such Obligor is at any
time liable to pay to any Finance Party under or pursuant to any Finance
Document which is due but unpaid.

 

26.2        Indemnity

 

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

 

26.3        Continuing
and Independent Obligations

 

The
obligations of each Guarantor under this Agreement shall constitute and be
continuing obligations which shall not be released or discharged by any
intermediate payment or settlement of all or any of the obligations of the
Obligors under the Finance Documents, shall continue in full force and effect
until the unconditional and irrevocable payment and discharge in full of all
amounts owing by the Obligors under each of the Finance Documents and are in
addition to and 

 

84

 

independent
of, and shall not prejudice or merge with, any other security (or right of
set-off) which any Finance Party may at any time hold in respect of such
obligations or any of them.

 

26.4        New
Accounts

 

If the Administrative
Agent makes demand of the Guarantors or any of them pursuant to this Clause 26
(Guarantee and Indemnity):

 

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

 

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

 

26.5        Avoidance
of Payments

 

Where any
release, discharge or other arrangement in respect of any obligation of the
Obligors, or any Encumbrances any Finance Party may hold therefor, is given or
made in reliance on any payment or other disposition which is avoided or must
be repaid (whether in whole or in part) in an insolvency, liquidation or
otherwise and whether or not any Finance Party has conceded or compromised any
claim that any such payment or other disposition will or should be avoided or
repaid (in whole or in part), the provisions of this Clause 26 (Guarantee and Indemnity) shall continue as
if such release, discharge or other arrangement had not been given or made.

 

26.6        Immediate
Recourse

 

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

 

26.7        Waiver of
Defences

 

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

 

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

 

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

 

85

 

(c)           any
time or other indulgence being granted to or agreed (i) to or with any Obligor
or any other person in respect of its obligations or (ii) in respect of any
security granted under any Finance Documents;

 

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

 

(e)           any
total or partial failure to take, or perfect, any security proposed to be taken
in respect of the obligations of any Obligor or any other person under the
Finance Documents;

 

(f)            any
total or partial failure to realise the value of, or any release, discharge,
exchange or substitution of, any security held by any Finance Party in respect
of the Obligors’ obligations under any Finance Document; or

 

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

 

26.8        No
Competition

 

Any rights
which any Guarantor may at any time have by way of contribution or indemnity in
relation to any of the obligations of any Obligor under any of the Finance
Documents (including any right of contribution arising under Clause 26.11 (Guarantor’s Right of Contribution)) or to
claim or prove as a creditor of such Obligor or any other person or its estate
in competition with the Finance Parties or any of them, shall be exercised by
such Guarantor only if and to the extent that the Administrative Agent so
requires and in such manner and upon such terms as the Administrative Agent may
specify and each Guarantor shall hold any moneys, rights or Encumbrances held
or received by it as a result of the exercise of any such rights on trust for
the Administrative Agent for application in or towards payment of any sums at
any time owed by the Obligors or any of them under any of the Finance Documents
as if such moneys, rights or Encumbrances were held or received by the
Administrative Agent under this Agreement.

 

26.9        Appropriation

 

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

 

26.10      Limitation
of Liabilities

 

In respect of
any existing credit facility (an “Existing
Facility”) which is to be discharged pursuant to and in accordance
with Clause 4.1(e)(i) (Conditions to
Drawdown) and Clause 22.3(c) (Financial
Indebtedness) to which a Guarantor is a party as a guarantor and/or
a 

 

86

 

borrower, to
the extent that the granting of a guarantee and/or the provision of an
indemnity by such Guarantor pursuant to this Clause 26 (Guarantee and Indemnity) would cause a
default under such Existing Facility, such guarantee and indemnity shall become
effective, automatically and immediately, upon the release of the guarantee
(and/or if applicable, discharge of principal obligations) to the extent that
such release or discharge constitutes a full release or discharge of all such
obligations of the relevant Guarantor in respect of such Existing Facility (and
not before such release or discharge).

 

26.11      Guarantor’s
Right of Contribution

 

At any time a
payment in respect of the Guaranteed Obligations is made under this Clause 26 (Guarantee and Indemnity), the right of
contribution of each Guarantor against each other Guarantor shall be determined
as provided in the immediately following sentence, with the right of
contribution of each Guarantor to be revised and restated as of each date on
which a payment (a “Relevant Payment”)
is made in respect of the Guaranteed Obligations under this Clause 26 (Guarantee and Indemnity).  At any time that a Relevant Payment is made
by a Guarantor that results in the aggregate payments made by such Guarantor in
respect of the Guaranteed Obligations to and including the date of the Relevant
Payment exceeding such Guarantor’s Contribution Percentage (as defined below)
of the aggregate payments made by all Guarantors in respect of the Guaranteed
Obligations to and including the date of the Relevant Payment (such excess, the
“Aggregate Excess Amount”), each
such Guarantor shall have a right of contribution against each other Guarantor
who has made no payment or has made payments in respect of the Guaranteed
Obligations to and including the date of the Relevant Payment in an aggregate
amount less than such other Guarantor’s Contribution Percentage of the
aggregate payments made to and including the date of the Relevant Payment by
all Guarantors in respect of the Guaranteed Obligations (the aggregate amount
of such deficit, the “Aggregate Deficit
Amount”) in an amount equal to (x) a fraction, the numerator of
which is the Aggregate Excess Amount of such Guarantor and the denominator of
which is the Aggregate Excess Amount of all Guarantors multiplied by (y) the
Aggregate Deficit Amount of such other Guarantor.  A Guarantor’s right of contribution pursuant to the preceding
sentences shall arise at the time of each computation, subject to adjustment to
the time of each computation.  In this
Clause 26.11 (Guarantor’s Right of
Contribution):

 

(i)            each
Guarantor’s “Contribution Percentage” shall mean the percentage obtained by dividing (x) the Adjusted
Net Worth (as defined below) of such Guarantor by (y) the aggregate Adjusted
Net Worth of all Guarantors;

 

(ii)           the “Adjusted Net Worth” of
each Guarantor shall mean the greater of (x) the Applicable Net Worth (as
defined below) of such Guarantor and (y) zero; and

 

(iii)         the “Applicable Net Worth”
of each Guarantor shall mean the amount by which the fair saleable value of
such Guarantor’s assets on the date of any Relevant Payment exceeds its
existing debts and other liabilities (including contingent liabilities, but
without giving effect to any Guaranteed Obligations arising under this Clause
26 (Guarantee and Indemnity) or
any guaranteed obligations arising under any guarantee of the Senior Notes) on
such date.

 

87

 

Each of the Guarantors
recognises and acknowledges that the rights to contribution arising hereunder
shall constitute an asset in favour of the party entitled to such
contribution.  In this respect, each
Guarantor has the right to waive its contribution right against any Guarantor
to the extent that after giving effect to such waiver such Guarantor would
remain solvent, in the determination of an Instructing Group.

 

26.12      No
Fraudulent Conveyance

 

Each Guarantor
and each Finance Party (by its acceptance of the benefits of the provisions of
this Clause 26 (Guarantee and Indemnity))
hereby confirms that it is its intention that the provisions of this Clause 26
(Guarantee and Indemnity) not
constitute a fraudulent transfer or conveyance for the purposes of the
Bankruptcy Code, the Uniform Fraudulent Conveyance Act, the Uniform Fraudulent
Transfer Act or any similar law of the United States of America or any state
thereof, or of the Republic of Liberia. 
To effect the foregoing intention, each Guarantor and each Finance Party
(by its acceptance of the benefits of the provisions of this Clause 26 (Guarantee and Indemnity)) hereby
irrevocably agrees that the Guaranteed Obligations guaranteed by such Guarantor
shall be limited to such amount as will, after giving effect to such maximum
amount and all other (contingent or otherwise) liabilities of such Guarantor
that are relevant under such laws and after giving effect to any rights to
contribution of such Guarantor from the other Guarantors pursuant to Clause
26.11 (Guarantor’s Right of Contribution)
(calculated as if such maximum amount had been discharged in full by such
Guarantor), result in the Guaranteed Obligations of such Guarantor in respect
of such maximum amount not constituting a fraudulent transfer or conveyance.

 

27.          AGENT AND OBLIGORS’ AGENT

 

27.1        Appointment
of the Administrative Agent

 

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

 

27.2        Duties of
the Administrative Agent

 

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

 

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

 

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

 

88

 

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

 

27.3        Role of
the Mandated Lead Arrangers and Arrangers

 

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

 

27.4        No
Fiduciary Duties

 

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

 

(b)           None
of the Administrative Agent, the Mandated Lead Arrangers or the Arrangers shall
be bound to account to any Lender for any sum or the profit element of any sum
received by it for its own account.

 

27.5        Business
with the Group

 

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

 

27.6        Discretion
of the Administrative Agent

 

(a)           The
Administrative Agent may rely on:

 

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

 

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

 

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

 

(i)            no
Default has occurred;

 

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

 

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

 

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

 

89

 

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

 

27.7        Instructing
Group’s Instructions

 

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

 

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

 

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

 

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

 

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

 

27.8        No
Responsibility

 

The
Administrative Agent, the Mandated Lead Arrangers and the Arrangers are not:

 

(a)           responsible
for the adequacy, accuracy and/or completeness of any information (whether oral
or written) supplied by any Finance Party or an Obligor or any other person in
or in connection with any Finance Document, including but not limited to the
Offering Memorandum, the Projections, the Reports and the Annual Budgets (if
any); or

 

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

 

27.9        Exclusion
of Liability

 

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

 

90

 

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

 

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

 

27.10      Lender’s
Indemnity

 

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

 

27.11      Resignation

 

(a)           The
Administrative Agent may resign and appoint one of its Affiliates as successor
Administrative Agent by giving notice to the Lenders and the Borrower.

 

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

 

(c)           If an
Instructing Group has not appointed a successor Administrative Agent in
accordance with paragraph (b) above within 30 days after notice of resignation
was given, the Administrative Agent (after consultation with the Borrower) may
appoint a successor Administrative Agent.

 

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

 

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

 

(f)            Upon
the appointment of a successor, the retiring Administrative Agent shall be
discharged from any further obligation in respect of the Finance Documents but
shall 

 

91

 

remain entitled to the benefit of this Clause
27 (Agent and Obligors’ Agent).  The Administrative Agent’s successor and
each of the other parties to this Agreement shall have the same rights and
obligations amongst themselves as they would have had if such successor
Administrative Agent had been an original party as the Administrative Agent.

 

27.12      Confidentiality

 

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

 

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

 

(c)           Notwithstanding
any other provision of any Finance Document to the contrary but without
prejudice to Clause 37 (Taxation and
Structural Matters), the Finance Parties are not obliged to disclose
to any other person (i) any confidential information or (ii) any other
information if the disclosure would, or might in its reasonable opinion,
constitute a breach of any Law.

 

27.13      Facility
Office

 

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

 

27.14      Credit
Appraisal by the Lenders

 

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

 

(a)           the
financial condition, status and nature of each member of the Group;

 

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

 

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

 

92

 

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

 

27.15      Deduction
from Amounts Payable by the Administrative Agent

 

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

 

27.16      Obligors’
Agent

 

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

 

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

 

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

 

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

 

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

 

93

 

27.17      Co-operation
with the Administrative Agent

 

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

 

28.          BORROWER’S INDEMNITIES

 

28.1        Funding
Indemnity

 

Borrower
agrees at all times to indemnify protect, defend and hold harmless each Lender
against any loss it may suffer or incur as a result of its funding or making
arrangements to fund its portion of an Advance requested by the Borrower under
this Agreement but not made by reason of the operation of any one or more of
the provisions of this Agreement (save as a result of its own gross negligence
or wilful default).

 

28.2        Break
Costs

 

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

 

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

 

28.3        Miscellaneous
Indemnities

 

The Borrower
shall fully indemnify each Finance Party severally on demand in respect of all
claims, expenses, liabilities and losses which may be made or brought against
or incurred by a Finance Party, in any country, as a result of or in connection
with:

 

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

 

(b)           any
other Pertinent Matter.

 

Without
prejudice to its generality, this Clause 28.3 covers any claims, expenses,
liabilities and losses which arise, or are asserted, under or in connection
with any law relating to safety at sea, the ISM Code or any Environmental Law.

 

94

 

29.          CURRENCY OF ACCOUNT

 

29.1        Currency

 

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

 

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

 

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

 

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

 

(d)           each
payment pursuant to Clause 11.2 (Tax Indemnity) or Clause 12.1 (Increased
Costs) shall be made in the currency specified by the Finance Party
claiming under it.

 

29.2        Currency
Indemnity

 

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

 

30.          PAYMENTS

 

30.1        Payment
to the Administrative Agent

 

On each date
on which this Agreement requires an amount to be paid by an Obligor or any of
the Lenders under this Agreement, such Obligor or, as the case may be, such
Lender shall make the same available to the Administrative Agent by payment in
same day funds (or such other funds as may for the time being be customary for
the settlement of transactions in the relevant currency) to such account or
bank as the Administrative Agent may have specified for this purpose and any
such payment which is made for the account of another person shall be made in
time to enable the Administrative Agent to make available such person’s portion
of it to such other person in accordance with Clause 30.2 (Same Day Funds).

 

95

 

30.2        Same Day
Funds

 

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

 

30.3        Clear
Payments

 

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

 

30.4        Partial
Payments

 

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

 

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

 

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

 

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

 

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

 

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

 

30.5        Indemnity

 

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

 

96

 

31.          SET-OFF

 

31.1        Right to
Set-off

 

Each of the
Obligors authorises each Lender to apply any credit balance to which such
Obligor is entitled on any account of such Obligor with that Lender in
satisfaction of any sum due and payable from such Obligor to such Lender under
this Agreement but unpaid and for this purpose, each Lender is authorised to
purchase with the moneys standing to the credit of any such account such other
currencies as may be necessary to effect such application.

 

31.2        No
Obligation

 

No Lender shall
be obliged to exercise any right given to it by Clause 31.1 (Right to
Set-Off).

 

32.          SHARING AMONG THE FINANCE
PARTIES

 

32.1        Payments
to Finance Parties

 

If a Finance
Party (a “Recovering Finance Party”)
receives or recovers any amount from an Obligor other than in accordance with
Clause 30 (Payments)
and applies that amount to a payment due under the Finance Documents then:

 

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

 

(b)           the
Administrative Agent shall determine whether the receipt or recovery is in
excess of the amount the Recovering Finance Party would have been paid had the
receipt or recovery been received or made by the Administrative Agent and
distributed in accordance with Clause 30.4 (Partial Payments), without taking account
of any tax which would be imposed on the Administrative Agent in relation to
the receipt, recovery or distribution; and

 

(c)           the
Recovering Finance Party shall, within 3 Business Days of demand by the
Administrative Agent, pay to the Administrative Agent an amount (the “Sharing Payment”)
equal to such receipt or recovery less any amount which the Administrative
Agent determines may be retained by the Recovering Finance Party as its share
of any payment to be made, in accordance with Clause 30.4 (Partial Payments).

 

32.2        Redistribution
of Payments

 

The
Administrative Agent shall treat the Sharing Payment as if it had been paid by
the relevant Obligor and distribute it between the Finance Parties (other than
the Recovering Finance Party) in accordance with Clause 30.4 (Partial
Payments).

 

97

 

32.3        Recovering
Finance Party’s Rights

 

(a)           On a
distribution by the Administrative Agent under Clause 32.2 (Redistribution
of Payments), the Recovering Finance Party will be subrogated to the
rights of the Finance Parties which have shared in the redistribution.

 

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

 

32.4        Reversal
of Redistribution

 

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

 

(a)           each
Finance Party which has received a share of the relevant Sharing Payment
pursuant to Clause 32.2 (Redistribution of Payments)  shall,
upon the request of the Administrative Agent, pay to the Administrative Agent
for account of that Recovering Finance Party an amount equal to its share of
the Sharing Payment (together with an amount as is necessary to reimburse that
Recovering Finance Party for its share of any interest on the Sharing Payment
which that Recovering Finance Party is required to pay); and

 

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

 

32.5        Exceptions

 

(a)           This
Clause 32 (Sharing Among the Finance Parties)
shall not apply to the extent that the Recovering Finance Party would not,
after making any payment pursuant to this Clause, have a valid and enforceable
claim against the relevant Obligor.

 

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

 

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

 

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

 

33.          CALCULATIONS AND ACCOUNTS

 

33.1        Day Count
Convention

 

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

 

98

 

33.2        Reference
Banks

 

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

 

33.3        Maintain
Accounts

 

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

 

33.4        Control
Accounts

 

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

 

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

 

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

 

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

 

33.5        Prima
Facie Evidence

 

In any legal
action or proceeding arising out of or in connection with this Agreement, the
entries made in the accounts maintained pursuant to Clause 33.3 (Maintain
Accounts) and Clause 33.4 (Control Accounts) shall be prima
facie
evidence of the existence and amounts of the specified obligations of the
Obligors.

 

33.6        Certificate
of Finance Party

 

A certificate
of a Finance Party as to the amount for the time being required to indemnify it
against any Tax Liability pursuant to Clause 11.2 (Tax Indemnity) or any Increased Cost pursuant to Clause 12.1
(Increased
Costs) shall be prima facie evidence of the existence and
amounts of the specified obligations of the Borrower.

 

33.7        Certificate
of the Administrative Agent

 

A certificate
of the Administrative Agent as to the amount at any time due from the Borrower
under this Agreement (or the amount which, but for any of the obligations of
the Borrower under this Agreement being or becoming void, unenforceable or
ineffective, at any time, would have been due from the Borrower under this
Agreement) shall, in the absence of manifest error, be prima facie evidence for the
purposes of Clause 26 (Guarantee and Indemnity) and the other
provisions of this Agreement.

 

99

 

34.          ASSIGNMENTS AND TRANSFERS

 

34.1        Successors
and Assignees

 

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

 

34.2        Assignment
or Transfers by Obligors

 

None of the
rights, benefits and obligations of an Obligor under this Agreement shall be
capable of being assigned or transferred and each Obligor undertakes not to
seek to assign or transfer any of its rights, benefits and obligations under
this Agreement without the prior written consent of all of the Lenders.

 

34.3        Assignments
or Transfers by Lenders

 

Any Lender
may, at any time, assign all or any of its rights and benefits under the
Finance Documents in accordance with Clause 34.4 (Assignments) or transfer all
or any of its rights, benefits and obligations under the Finance Documents in
accordance with Clause 34.5 (Transfer Certificate) without the consent
of any other party save that:

 

(a)           in the
absence of any Default, any such assignment or transfer shall be subject to the
prior consent of the Borrower (such consent not to be unreasonably withheld or
delayed); and

 

(b)           such
assignment or transfer shall be in respect of a principal amount of the
Facility of at least $5,000,000.

 

34.4        Assignments

 

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

 

34.5        Transfer
Certificate

 

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

 

(a)           to the
extent that in such Transfer Certificate the Lender party to it seeks to
transfer its rights, benefits and obligations under the Finance Documents, each
of the Obligors and 

 

100

 

such Lender shall be released from further
obligations towards one another under the Finance Documents and their
respective rights against one another shall be cancelled (such rights and
obligations being referred to in this Clause 34.5 as “discharged rights and obligations”);

 

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

 

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

 

(d)           such
Transferee shall become a party to this Agreement as a Lender.

 

34.6        Transfer
Fee

 

On the date
upon which a transfer takes effect pursuant to Clause 34.5 (Transfer
Certificate), the Transferee in respect of such transfer shall pay
to the Administrative Agent for its own account a transfer fee of $3,000
provided that this fee shall not be payable by any Lender being party to this
Agreement on the date of this Agreement in respect of transfers made by such
Lender prior to the Termination Date.

 

34.7        Disclosure
of Information

 

Without
prejudice to Clause 37 (Taxation and
Structural Matters), any Lender may disclose to any of its
Affiliates, to any actual or potential assignee or Transferee, to any person
who may otherwise enter into contractual relations with such Lender in relation
to this Agreement or any person to whom, and to the extent that, information is
required to be disclosed by any applicable Law, such information about the
Obligors and the Group as such Lender shall consider appropriate.

 

35.          COSTS AND EXPENSES

 

35.1        Transaction
Costs

 

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

 

101

 

35.2        Preservation
and Enforcement Costs

 

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

 

35.3        Stamp
Taxes

 

The Borrower
shall pay all stamp, registration, documentary and other taxes (including any
penalties, additions, fines, surcharges or interest relating thereto) to which
any of the Finance Documents or any judgment given in connection therewith is
or at any time may be subject and shall, from time to time on demand of the
Administrative Agent, indemnify the Finance Parties against any liabilities,
costs, claims and expenses resulting from any failure to pay or any delay in
paying those taxes.  The Administrative
Agent shall be entitled (but not obliged) to pay those taxes (whether or not
they are its primary responsibility) and to the extent that it does so claim
under this Clause 35.3.

 

35.4        Compensation

 

The Borrower
shall, from time to time on demand of the Administrative Agent (and without
prejudice to the provisions of Clause 35.2 (Preservation and Enforcement Costs) and
Clause 35.5 (Amendments and Waivers)) compensate the Administrative Agent
at such daily and/or hourly rates as the Administrative Agent shall from time
to time reasonably determine for all time expended by the Administrative Agent,
its directors, officers and employees, and for all costs and expenses
(including telephone, fax, copying, travel and personnel costs) they may incur,
in connection with the Administrative Agent taking such action as it may
consider appropriate in connection with:

 

(a)           the
granting or proposed granting of any waiver or consent requested under any of
the Finance Documents by the Obligors or any of them;

 

(b)           any
actual, potential or suspected breach by an Obligor of any of its obligations
under any of the Finance Documents;

 

(c)           the
occurrence of any Default; or

 

(d)           any
amendment or proposed amendment of any of the Finance Documents requested by
the Obligors or any of them.

 

102

 

35.5        Amendments
and Waivers

 

If an Obligor
requests any amendment or waiver in accordance with Clause 42 (Amendments),
the relevant Obligor shall, on demand of the Administrative Agent, reimburse
the Finance Parties for all costs and expenses (including legal fees and
disbursements) incurred by any of the Finance Parties in responding to or
complying with such request.

 

35.6        Management
Time of the Administrative Agent

 

Any amount
payable to the Administrative Agent under this Clause 35 (Costs and Expenses) shall include the cost
of utilising its management time or other resources and will be calculated on
the basis of such reasonable daily or hourly rates as it may notify to the
Borrower and the Lenders, and is in addition to any fee paid or payable to it
under Clause 10 (Commissions and Fees).

 

35.7        Lenders’
Indemnity

 

If any Obligor
fails to perform any of its obligations under this Clause 35 (Costs and Expenses), each Lender shall
indemnify and hold harmless each of the Administrative Agent, the Mandated Lead
Arrangers, the Arrangers and/or the Security Trustee (as applicable) from and
against its Proportion (as determined at all times for these purposes in
accordance with paragraph (c) of the definition of “Proportion”) of any loss
incurred by any of them as a result of such failure and the relevant Obligor
shall forthwith reimburse each Lender for any payment made by it pursuant to
this Clause.

 

35.8        Value
Added Tax

 

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

 

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

 

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

 

35.9        Indemnity
Payments

 

Where under
any Finance Document an Obligor has an obligation to indemnify or reimburse any
Protected Party in respect of any loss or payment, the calculation of the
amount payable by way of indemnity or reimbursement shall take account of the
likely tax treatment in the hands of that 

 

103

 

Protected
Party (as determined by such Protected Party) of the amount payable by way of
indemnity or reimbursement and of the loss or payment in respect of which that
amount is payable.

 

36.          REMEDIES AND WAIVERS

 

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

 

37.          TAXATION AND STRUCTURAL MATTERS

 

Notwithstanding
any of the other provisions of this Agreement, each Obligor and each Finance
Party hereby agrees that any party hereto and each employee, representative or
other agent of such party may disclose to any and all persons, without limitation
of any kind, the tax treatment and tax structure applicable in the United
States of America to the transactions contemplated under the Finance Documents
and any materials whatsoever (including opinions or other tax analyses) that
are provided to each such party relating to such tax treatment and tax
structure, other than any information for which non-disclosure is reasonably
necessary in order to comply with applicable securities law.

 

38.          CONSEQUENTIAL DAMAGES

 

In no event
shall any Finance Party be liable on any theory of liability for any special,
indirect, consequential or punitive damages and each Obligor (for itself and in
respect of each of its Subsidiaries (if any)) hereby waives, releases and
agrees not to sue upon any such claim for any such damages, whether or not
accrued and whether or not known or suspected to exist in its favour.

 

39.          NOTICES AND DELIVERY
OF INFORMATION

 

39.1        Writing

 

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

 

104

 

39.2        Giving of
Notice

 

Any
communication or document to be made or delivered by one person to another
pursuant to this Agreement shall in the case of any person other than a Lender
or an Obligor (unless that other person has by 15 days’ written notice to the
Administrative Agent specified another address) be made or delivered to that
other person at the address identified with its signature below, in the case of
a Lender, at the address from time to time designated by it to the
Administrative Agent for the purpose of this Agreement (or, in the case of a
Transferee at the end of the Transfer Certificate to which it is a party as
Transferee) or in the case of any Obligor, to ‘c/o Frontline Management AS,
P.O. Box 1327 Vika, N-0112 Oslo (Attn: Finance Department; Fax: + 47 23 11 40
44; Tel: + 47 23 11 4000)’ and shall be deemed to have been made or delivered
when despatched (in the case of any communication made by fax) or (in the case
of any communication made by letter) when left at the address or (as the case
may be) 5 days after being deposited in the post postage prepaid in an envelope
addressed to it at that address provided that, any communication or document to
be made or delivered to the Administrative Agent shall be effective only when
received by the Administrative Agent and then only if the same is expressly
marked for the attention of the department or officer identified with the
Administrative Agent’s signature below (or such other department or officer as
the Administrative Agent shall from time to time specify for this purpose).

 

39.3        Use of
Websites

 

(a)           An
Obligor may satisfy its obligation under this Agreement to deliver any
information in relation to those Lenders (the “Website
Lenders”) who accept as a method of communication
the posting of information onto an electronic website designated by the
Borrower and the Administrative Agent (the “Designated
Website”) if:

 

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

 

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

 

(iii)         the
information is in a format previously agreed between the Borrower and the
Administrative Agent.

 

If
any Lender (a “Paper Form Lender”)
does not agree to the delivery of information electronically then the
Administrative Agent shall notify the Borrower accordingly and the Borrower
shall supply the information to the Administrative Agent (in sufficient copies
for each Paper Form Lender) in paper form.

 

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

 

(c)           The
Borrower shall, promptly upon becoming aware of its occurrence, notify the
Administrative Agent if:

 

105

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

39.4        Electronic
Communication

 

(a)           Any
communication to be made between the Administrative Agent and a Lender under or
in connection with the Finance Documents may be made by electronic mail or
other electronic means, if the Administrative Agent and the relevant Lender:

 

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

 

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

 

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

 

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

 

106

 

40.          ENGLISH LANGUAGE

 

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

 

41.          PARTIAL INVALIDITY

 

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

 

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

 

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

 

42.          AMENDMENTS

 

42.1        Amendments

 

Except as
provided in Clauses 42.2 (Consent), 42.3 (Technical Amendments) and
42.4 (Guarantees
and Security), the Administrative Agent, if it has the prior written
consent of an Instructing Group, and the Obligors affected thereby, may from
time to time agree in writing to amend this Agreement or to waive,
prospectively or retrospectively, any of the requirements of this Agreement and
any amendments or waivers so agreed shall be binding on all the Finance Parties
and the Obligors.

 

42.2        Consent

 

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

 

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

 

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

 

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

 

(d)           any
change in the currency of account;

 

107

 

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

 

(f)            the
deferral of the Termination Date, the Consolidation Date or the Maturity Date;

 

(g)           the
provisions of Clause 34.3 (Assignments or
Transfers by Lenders);

 

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

 

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

 

42.3        Technical
Amendments

 

Notwithstanding
Clause 42.1 (Amendments), the Administrative Agent may determine
administrative matters and make technical amendments arising out of manifest
errors on the face of this Agreement, where such amendments would not prejudice
or otherwise be adverse to the position of any Lender under this Agreement,
without reference to the Lenders.

 

42.4        Guarantees
and Security

 

A waiver of
issuance or the release of any Guarantor from any of its obligations under
Clause 26 (Guarantee
and Indemnity) other than in accordance with the terms of this
Agreement or a release of any Encumbrances under the Security Documents other
than in accordance with the terms of the Finance Documents shall require the
prior written consent of all the Lenders.

 

42.5        Amendments
affecting the Administrative Agent

 

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

 

(a)           amend
or waive any provision of Clause 27 (Agent and Obligors’ Agent), Clause 28.3 (Miscellaneous Indemnities),  Clause 35 (Costs and Expenses) or this
Clause 42 (Amendments); or

 

(b)           otherwise
amend or waive any of the Administrative Agent’s rights under this Agreement or
subject the Administrative Agent
to any additional obligations under this Agreement.

 

43.          THIRD PARTY RIGHTS

 

(a)           A
person which is not a party to this Agreement (a “third
party”) shall have no right to enforce any of its
provisions except that:

 

(i)            a
third party shall have those rights it would have had if the Contracts (Rights
of Third Parties) Act 1999 had not come into effect; and

 

108

 

(ii)           each
of Clause 11.2 (Tax Indemnity),
Clause 12 (Increased Costs) and
Clause 27.9 (Exclusion of Liability)
shall be enforceable by any third party referred to in such clause as if such
third party were a party to this Agreement.

 

(b)           The
parties to this Agreement may without the consent of any third party (including
the Parent, the Manager or the Charterer) vary or rescind this Agreement.

 

44.          COUNTERPARTS

 

This Agreement
may be executed in any number of counterparts and all of such counterparts taken
together shall be deemed to constitute one and the same instrument.

 

45.          GOVERNING LAW

 

This Agreement
shall be governed by, and construed in accordance with, English Law.

 

46.          JURISDICTION

 

46.1        Courts of
England

 

Each of the
parties to this Agreement irrevocably agrees for the benefit of each of the
Finance Parties that the courts of England shall have exclusive jurisdiction to
hear and determine any suit, action or proceedings, and to settle any disputes,
which may arise out of or in connection with this Agreement (respectively “Proceedings” and “Disputes”) and, for such purposes,
irrevocably submits to the jurisdiction of such courts.

 

46.2        Waiver

 

Each of the
Obligors irrevocably waives any objection which it might now or hereafter have
to Proceedings being brought or Disputes being settled in the courts of England
and agrees not to claim that any such court is an inconvenient or inappropriate
forum.

 

46.3        Service
of Process

 

Each of the
Obligors agrees that the process by which any Proceedings in England are begun
may be served on it by being delivered to Maritime Recovery Limited (Attn:
Nicholas Sherriff) of 20, Salcott Road, P.O.Box 293, London SW11 6DJ, United
Kingdom (or, if different, its registered office for the time being).  If the appointment of the person mentioned
in this Clause ceases to be effective in respect of any of the Obligors, the
relevant Obligor shall immediately appoint a further person in England to
accept service of process on its behalf in England and, failing such appointment
within 15 days, the Administrative Agent shall be entitled to appoint such
person by notice to the relevant Obligor. Nothing contained in this Agreement
shall affect the right to serve process in any other manner permitted by Law.

 

46.4        Proceedings
in Other Jurisdictions

 

Nothing in
Clause 46.1 (Courts of England) shall (and shall not be construed so as
to) limit the right of the Finance Parties or any of them to take Proceedings
against any of the Obligors in any 

 

109

 

other court of
competent jurisdiction nor shall the taking of Proceedings in any one or more
jurisdictions preclude the taking of Proceedings in any other jurisdiction
(whether concurrently or not) if and to the extent permitted by applicable Law.

 

46.5        General
Consent

 

Each of the
Obligors consents generally in respect of any Proceedings to the giving of any
relief or the issue of any process in connection with such Proceedings
including the making, enforcement or execution against any property whatsoever
(irrespective of its use or intended use) of any order or judgment which may be
made or given in such Proceedings.

 

46.6        Waiver of
Immunity

 

To the extent
that any Obligor may in any jurisdiction claim for itself or its assets or
revenues immunity from suit, execution, attachment (whether in aid of
execution, before judgment or otherwise) or other legal process and to the
extent that in any such jurisdiction there may be attributed to itself, its
assets or revenues such immunity (whether or not claimed), such Obligor
irrevocably agrees not to claim, and irrevocably waives, such immunity to the
full extent permitted by the laws of such jurisdiction.

 

This
Agreement has been entered into on the date stated at the beginning of this
Agreement.

 

110

 

SCHEDULE 1

LENDERS AND COMMITMENTS

 

	
  Lenders

  	
   

  	
  Commitments
  (US$)

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Crédit Agricole Indosuez

  	
   

  	
  95,000,000.00

  	
   

  
	
  Fortis Bank (Nederland) N.V.

  	
   

  	
  95,000,000.00

  	
   

  
	
  Skandinaviska Enskilda Banken AB (publ.)

  	
   

  	
  95,000,000.00

  	
   

  
	
  Nordea Bank Norge ASA

  	
   

  	
  88,000,000.00

  	
   

  
	
  Citibank, N.A.

  	
   

  	
  75,000,000.00

  	
   

  
	
  DnB NOR Bank ASA

  	
   

  	
  75,000,000.00

  	
   

  
	
  HSH Nordbank AG

  	
   

  	
  75,000,000.00

  	
   

  
	
  Scotiabank Europe plc

  	
   

  	
  75,000,000.00

  	
   

  
	
  SWEDBANK (FöreningsSparbanken AB (publ))

  	
   

  	
  75,000,000.00

  	
   

  
	
  The Governor and Company of the Bank of
  Scotland

  	
   

  	
  75,000,000.00

  	
   

  
	
  ING Bank N.V. (Norway)

  	
   

  	
  70,000,000.00

  	
   

  
	
  Deutsche Bank AG in Hamburg

  	
   

  	
  32,500,000.00

  	
   

  
	
  Schiffshypothekenbank zu Lübeck AG

  	
   

  	
  32,500,000.00

  	
   

  
	
  Danish Ship Finance (Danmarks
  Skibskreditfond)

  	
   

  	
  25,000,000.00

  	
   

  
	
  Deutsche Schiffsbank Aktiengesellschaft

  	
   

  	
  25,000,000.00

  	
   

  
	
  NIB Capital Bank N.V.

  	
   

  	
  25,000,000.00

  	
   

  
	
  Vereins-und Westbank AG

  	
   

  	
  25,000,000.00

  	
   

  
	
  TOTAL

  	
   

  	
  1,058,000,000.00

  	
   

  

 

111

 

SCHEDULE 2

FORM OF TRANSFER CERTIFICATE

 

To:          Nordea
Bank Norge ASA (the “Administrative Agent”)

 

TRANSFER
CERTIFICATE

 

This Transfer
Certificate relates to the credit facility agreement (the “Credit Facility Agreement”) dated 17  February
2004 entered into between the Borrower, Citigroup Global Markets Limited
and Nordea Bank Norge ASA (the “Bookrunners”),
Citigroup Global Markets Limited, Nordea Bank Norge ASA, Fortis Bank
(Nederland) N.V., Crédit Agricole Indosuez, Skandinaviska Enskilda Banken AB
(publ.), DnB NOR Bank ASA, HSH Nordbank AG, Scotiabank Europe plc, Swedbank
(FöreningsSparbanken AB (publ)), The Governor and Company of the Bank of
Scotland, ING Bank N.V. (Norway), Deutsche Bank AG in Hamburg and
Schiffshypothekenbank zu Lübeck AG (the “Mandated
Lead Arrangers”), the Administrative Agent, Nordea Bank Norge ASA
(the “Security Trustee”), Danish
Ship Finance (Danmarks Skibskreditfond),  NIB Capital Bank N.V.  and Vereins-und Westbank AG
(the “Arrangers”), the entities
named therein as original guarantors (the “Original
Guarantors”) and the entities named therein as lenders (the “Lenders”). 
Terms defined or construed in the Credit Facility Agreement shall have
the same meanings and constructions when used in this Transfer Certificate.

 

1.             Terms
defined or construed in the Credit Facility Agreement shall have the same
meanings and constructions when used in this Transfer Certificate.  The terms “Lender”, “Transferee”, “Lender’s
Participation” and “Portion Transferred” are defined in the Schedule to this
Transfer Certificate.

 

2.             The
Lender:

 

(a)           confirms
that the details in the Schedule to this Transfer Certificate are an accurate
summary of the Lender’s participation in the Agreement and the Interest Periods
or Terms (as the case may be) for existing Advances as at the date of this
Transfer Certificate; and

 

(b)           requests
the Transferee to accept and procure the transfer to the Transferee of the
Portion Transferred by countersigning and delivering this Transfer Certificate
to the Administrative Agent at its address for the service of notices
designated to the Administrative Agent in accordance with the Credit Facility
Agreement.

 

3.             The
Transferee requests the Administrative Agent to accept this Transfer
Certificate as being delivered to the Administrative Agent pursuant to and for
the purposes of Clause 34.5 (Transfer Certificate) of the Credit
Facility Agreement so as to take effect in accordance with the terms of it on
the Transfer Date or on such later date as may be determined in accordance with
the terms of it.

 

112

 

4.             The
Transferee confirms that it has received a copy of the Credit Facility
Agreement together with such other information as it has required in connection
with this transaction and that it has not relied and will not rely on the
Lender to check or enquire on its behalf into the legality, validity,
effectiveness, adequacy, accuracy or completeness of any such information and
further agrees that it has not relied and will not rely on the Lender to assess
or keep under review on its behalf the financial condition, creditworthiness,
condition, affairs, status or nature of any Obligor.

 

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

 

6.             The
Lender makes no representation or warranty and assumes no responsibility with
respect to the legality, validity, effectiveness, adequacy or enforceability of
the Credit Facility Agreement, any other Finance Document or other document
relating to it and assumes no responsibility for the financial condition of any
Obligor or for the performance and observance by any Obligor of any of its
obligations under the Credit Facility Agreement, any Finance Document or any
other document relating to it and any and all such conditions and warranties,
whether express or implied by Law or otherwise, are excluded.

 

7.             The
Lender gives notice that nothing in this Transfer Certificate or in the Credit
Facility Agreement (or any Finance Document or other document relating to it)
shall oblige the Lender (a) to accept a re-transfer from the Transferee of the
whole or any part of its rights, benefits and/or obligations under the Credit
Facility Agreement transferred pursuant to this Transfer Certificate or (b)
to support any losses directly or indirectly sustained or incurred by the
Transferee for any reason whatsoever (including the failure by any Obligor or
any other party to the Credit Facility Agreement (or any document relating to
it) to perform its obligations under any such document) and the Transferee
acknowledges the absence of any such obligation as is referred to in
(a) and (b) above.

 

8.             This
Transfer Certificate and the rights, benefits and obligations of the parties
under this Transfer Certificate shall be governed by and construed in
accordance with English Law.

 

113

 

The
Schedule

 

	
  1.

  	
  Lender:

  
	
   

  	
   

  
	
  2.

  	
  Transferee:

  
	
   

  	
   

  
	
  3.

  	
  Transfer Date:

  
	
   

  	
   

  
	
  4.

  	
  Lender’s Participation in
  Facility                                     Portion
  Transferred

  
	
   

  	
   

  
	
   

  	
  Lender’s Available Commitment*

  
	
   

  	
   

  
	
  5.

  	
  Lender’s Participation in
  Outstandings          Interest
  Period          Portion
  Transferred

  
	
   

  	
   

  

 

 

*              Details
of the Lender’s Available Commitment should not be completed after the
Termination Date.

 

114

 

	
  [Lender]

  	
   

  	
  [Transferee]

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
  By:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Date:

  	
   

  	
  Date:

  

 

 

Administrative
Details of Transferee and its Facility Office

 

Facility Office
Address:

 

Contact Name:

 

Account for
Payments:

 

Fax:

 

Telephone:

 

115

 

SCHEDULE 3

 

PART I - CONDITIONS PRECEDENT TO FIRST DRAWDOWN

 

1.             Corporate Documents

 

In relation to
each Original Obligor, the Parent, the Charterer and the Manager:

 

(a)           a copy
of its up to date constitutional documents and, if applicable, a good standing
certificate;

 

(b)           a copy
of a board resolution or resolutions approving the execution, delivery and
performance of the Transaction Documents to which it is party and the terms and
conditions thereof and authorising a named person or persons to sign the
Transaction Documents to which it is party and any documents to be delivered by
such party pursuant thereto;

 

(c)           if
applicable, a copy of a resolution or resolutions of its shareholders approving
the execution, delivery and performance of the Transaction Documents to which
it is party and the terms and conditions thereto; and

 

(d)           a duly
completed certificate of a duly authorised officer in substantially the form
set out in Part III of Schedule 3 (Form of Corporate Certificate) (as amended
in respect of any documents to be delivered subsequently pursuant to and in
accordance with Clause 4.1(i)(Conditions to
Drawdown)).

 

2.             Authorisations and Clearances

 

A copy of each Necessary Authorisation
requested by the Administrative Agent.

 

3.             Projections and Reports

 

Each of the
following documents, each of which is to be addressed to the Administrative
Agent on behalf of the Finance Parties or is to be delivered with written
confirmation that it can be relied upon by the Finance Parties:

 

(a)           the Additional Projections (if any); and

 

(b)           the Initial Appraisal Package relating to each Collateral Vessel
(all written confirmations forming part of such Initial Appraisal Packages
together establishing that the Total Collateral Value (as determined in
accordance with this Agreement) is at least $1,950,000,000, without prejudice
to the Collateral Maintenance Test).

 

116

 

4.             Financial Statements

 

Copies of the
Original Financial Statements.

 

5.             Finance Documents

 

Original
executed copies of the following documents executed by each of the parties
thereto:

 

(a)           this Agreement;

 

(b)           the Initial Security Documents;

 

(c)           the
Security Trust Deed;

 

(d)           the
Fee Letters;

 

(e)           the Deed of Undertaking and

 

(f)            any
other Finance Document required by the Administrative Agent.

 

6.             Senior Note Documents

 

Copies,
certified as true copies by a duly authorised officer of the Borrower or Parent
of the following documents (if applicable) executed by each of the parties
thereto:

 

(a)           the
Offering Memorandum;

 

(b)           the
Senior Note Indenture;

 

(c)           the Senior Note Purchase Agreement; and

 

(d)           the Senior Notes.

 

7.             Other Transaction Documents

 

Copies,
certified as true copies by a duly authorised officer of the Borrower or Parent
of the following documents executed by each of the parties thereto :

 

(a)           the
Performance Guarantee;

 

(b)           the Administrative Services Agreement;

 

(c)           the Charter Ancillary Agreement;

 

(d)           the Commercial Management Agreement; and

 

(e)           the
Fleet Purchase Agreement and each other Acquisition Document for the time being
available to any Obligor.

 

117

 

8.             Process Agent

 

Written
confirmation from the process agent referred to in Clause 46.3 (Service of
Process) that it
accepts its appointment as process agent of each Obligor, the Parent, the
Charterer and the Manager.

 

9.             Legal Opinions

 

An opinion of:

 

(a)           White
& Case, legal advisers to the Administrative Agent and the Mandated Lead
Arrangers on matters of English law;

 

(b)           Conyers, Dill & Pearman, London on
matters of Bermudan law; and

 

(c)           Kluge Advokatfirma on matters of
Norwegian law;

 

in each case,
addressed to the Finance Parties.

 

10.          Issuance of Senior Notes

 

Evidence
satisfactory to the Administrative Agent that the Borrower has issued the
Senior Notes in accordance with the Senior Note Documents.

 

11.          Available Cash

 

Evidence
satisfactory to the Administrative Agent that the Borrower and the Original
Guarantors between them have (and immediately following the forty seventh
Acquisition, will continue to have) free and available cash on hand of at least
$25,000,000, of which $20,000,000 may be prepaid charter hire.

 

12.          No Conflict

 

In relation to the Borrower, evidence
satisfactory to the Administrative Agent that:

 

(a)           the entry into and performance of the Transaction Documents to which
the Borrower is a party will not breach any borrowing or other Indebtedness limit
to which it is subject; and

 

(b)           the
performance by it of its obligations under the Credit Facility Agreement and
any other agreement or document executed pursuant thereto does not and will not
breach any agreement binding on the Borrower and all Necessary Authorisations
required in connection therewith have been obtained and are current.

 

13.          Solvency of Group

 

Evidence
satisfactory to the Administrative Agent that, following the consummation of
the Transaction and the incurrence of all Indebtedness by the Group (applicable
at such time) in connection with the Transaction, (a) such Group, taken as a
whole, will be solvent during the foreseeable future and able to repay its
debts as they fall due in accordance with its obligations 

 

118

 

and (b) the
Guarantors at such time and each of their direct and indirect Subsidiaries (if
any), taken as a whole, will be solvent during the foreseeable future and able
to repay their debts as they fall due in accordance with their obligations.

 

14.          Other Documents

 

Any other
documents or evidence which the Administrative Agent may reasonably require.

 

119

 

PART II - CONDITIONS TO EACH
ACQUISITION

 

1.             Authorisations and Clearances

 

A copy of each Necessary Authorisation requested by the Administrative
Agent, to the extent not already delivered
pursuant to and in accordance with Clause 3 (Conditions
Precedent).

 

2.             Collateral Vessel Security
Documents

 

In relation to
a Collateral Vessel Owner, at least 2 original copies of the following
documents (the “Collateral Vessel Security
Documents”) duly executed by the relevant Collateral Vessel Owner in
respect of the relevant Collateral Vessel, together with all documents required
to be delivered pursuant to the Collateral Vessel Security Documents and
evidence that the Encumbrances constituted thereby have been (or will be)
registered promptly and/or otherwise perfected to the extent required by the
Administrative Agent and in accordance with applicable Law:

 

(a)           a Mortgage;

 

(b)           a Deed of Covenant (if applicable);

 

(c)           a Tripartite Agreement (if applicable);

 

(d)           a Bareboat Charter Assignment (if
applicable); and

 

(e)           a General Assignment.

 

3.             Relevant Bareboat Charters
and Existing Time Charters

 

If applicable, copies, certified as true copies by a duly authorised
officer of the relevant Collateral Vessel Owner of the Relevant Bareboat
Charters (in executed or agreed form, as applicable) or Existing Time Charters
(in executed form) relating to the relevant Collateral Vessel.

 

4.             Management Agreements and
Other Management Agreements

 

Copies, certified as true copies by a duly authorised officer of the
relevant Collateral Vessel Owner of the Management Agreement and (if
applicable) the Other Management Agreement relating to the relevant Collateral
Vessel.

 

5.             Acquisition Documents

 

Copies, certified as true copies by a duly authorised officer of the
relevant Collateral Vessel Owner of all Acquisition Documents relating to the
acquisition of such Collateral Vessel Owner 

 

120

 

(to the extent not already delivered
pursuant to and in accordance with Clause 3 (Conditions
Precedent)).

 

6.             Time Charter Parties

 

Copies, certified as true copies by a duly authorised officer of the
relevant Collateral Vessel Owner of the Time Charter Party relating to the
relevant Collateral Vessel.

 

7.             Legal Opinions

 

(a)           Opinions
addressed to the Finance Parties from the counsel referred to under paragraph 9
in Part I of Schedule 3 (Condition Precedent
to First Drawdown) in relation to the Transaction Documents
designated by the Administrative Agent, to the extent that such opinions have
not been provided pursuant to and in accordance with Clause 3 (Conditions Precedent).

 

(b)           A
draft opinion from the relevant local counsel in respect of the law of the
jurisdiction (x) in which the relevant Collateral Vessel Owner is incorporated
and (if applicable) (y) in which the relevant Collateral Vessel is registered,
in each case, in a form acceptable to the Mandated Lead Arrangers (to be issued
pursuant to and in accordance with Clause 4.3 (Legal
Opinions)), such local counsel being:

 

(i)            Watson, Farley & Williams in relation to
matters of Marshall Islands, Liberian and (if applicable) French law;

 

(ii)           Khattar Wong & Partners in
relation to matters of Singapore law;

 

(iii)         Higgs & Johnson in relation to
matters of Bahamian law;

 

(iv)          Dickinson, Cruickshank & Co.
in relation to matters of Isle of Man law;

 

(v)            Patton, Moreno & Asvat in
relation to matters of Panamanian law; and/or

 

(vi)          Johnson Stokes & Master in
relation to matters of Hong Kong law,

 

in each case, addressed to the Finance
Parties.

 

8.             Insurance Report and
Certificate

 

The Insurance
Report and Certificate relating to the relevant Collateral Vessel, which is to
be addressed to the Administrative Agent on behalf of the Finance Parties or is
to be delivered with written confirmation that it can be relied upon by the
Finance Parties.

 

9.             Updated Appraisal Package

 

To the extent
required by the Administrative Agent, an Updated Appraisal Package relating to
the relevant Collateral Vessel.

 

121

 

10.          Collateral Vessels

 

(a)           Documentary
evidence that the Mortgage entered into or to be entered into by the relevant
Collateral Vessel Owner has been duly registered and/or recorded as a valid
first priority ship mortgage in accordance with the laws of the relevant
jurisdiction.

 

(b)           Documentary
evidence that the relevant Collateral Vessel:

 

(i)            is
definitively and permanently registered in the name of the applicable
Collateral Vessel Owner under a flag acceptable to the Administrative Agent,
including, without limitation, certificates of ownership from appropriate
authorities;

 

(ii)           is in the absolute and unencumbered ownership of such Collateral
Vessel Owner, save as contemplated by the Finance Documents;

 

(iii)         maintains
the highest class with a classification society acceptable to the
Administrative Agent and is free of all overdue recommendations and conditions
of such classification society; and

 

(iv)          is
insured in accordance with this Agreement and all requirements herein in
respect of Insurances for the time being applicable have been complied with (in
addition to the delivery of the Insurance Report and Certificate relating to
such Collateral Vessel to the satisfaction of the Administrative Agent).

 

(c)           Copies
of the documents of compliance and of the Collateral Vessel’s Safety Management
Certificate (together with any other details of the applicable safety
management system which the Administrative Agent may require).

 

(d)           The
results of maritime registry searches relating to the relevant Collateral
Vessel.

 

11.          Corporate Certificate

 

A duly
completed certificate of a duly authorised officer of the relevant Collateral
Vessel Owner in substantially the form set out in Part III of Schedule 3 (Form of
Corporate Certificate) (as amended in respect of any documents
already delivered pursuant to and in accordance with Clause 3 (Conditions Precedent)).

 

12.          Acquisition Unconditional

 

Evidence
satisfactory to the Administrative Agent that all conditions precedent to the
consummation of the relevant Acquisition have been satisfied, subject only to
the payment of the relevant Purchase Price.

 

13.          No Conflict

 

Evidence satisfactory to the Administrative
Agent that:

 

(a)           the entry into and performance of the Transaction Documents to which
the relevant Collateral Vessel Owner is a party does not and will not breach
any borrowing or other Indebtedness limit to which it is subject; and

 

122

 

(b)           the
execution, delivery and performance of an Accession Notice by such Collateral
Vessel Owner if applicable and the performance by it of its obligations under
the Credit Facility Agreement and any other agreement or document executed
pursuant thereto does not and will not breach any agreement binding on such
Collateral Vessel Owner and all Necessary Authorisations required in connection
therewith have been obtained and are current.

 

14.          Conditions Precedent

 

Evidence
satisfactory to the Administrative Agent that each of the documents and other
evidence delivered to it pursuant to Clause 3 (Conditions
Precedent) (other than any legal opinions) in relation to the
relevant Collateral Vessel Owner remain up-to-date and in full force and
effect, and since the delivery of such documents and other evidence, no
amendment, supplement, waiver or other variation has been made thereto (other
than (if applicable) as approved by the Mandated Lead Arrangers and set out in
such certificate).

 

15.          Other Documents

 

Any other
documents or evidence which the Administrative Agent may reasonably require.

 

123

 

PART III - FORM OF CORPORATE CERTIFICATE

 

To:          Nordea
Bank Norge ASA  (as the “Administrative
Agent”)

 

We refer to a
credit facility agreement (the “Credit
Facility Agreement”) dated
17 February 2004 entered into between the Borrower, Citigroup Global
Markets Limited and Nordea Bank Norge ASA (the “Bookrunners”), Citigroup Global Markets Limited, Nordea Bank
Norge ASA, Fortis Bank (Nederland) N.V., Crédit Agricole Indosuez,
Skandinaviska Enskilda Banken AB (publ.), DnB NOR Bank ASA, HSH Nordbank AG,
Scotiabank Europe plc, Swedbank (FöreningsSparbanken AB (publ)), The Governor
and Company of the Bank of Scotland, ING Bank N.V. (Norway), Deutsche Bank AG
in Hamburg and Schiffshypothekenbank zu Lübeck AG (the “Mandated Lead Arrangers”), the
Administrative Agent, Nordea Bank Norge ASA (the “Security Trustee”), Danish Ship Finance (Danmarks
Skibskreditfond),  NIB Capital Bank N.V.  and Vereins-und Westbank AG (the “Arrangers”), the entities named therein as
original guarantors (the “Original Guarantors”)
and the entities named therein as Lenders (the “Lenders”).  Terms
defined or construed in the Credit Facility Agreement shall have the same
meanings and constructions when used in this Certificate.

 

I, [name],
a Director of [name of Obligor/Parent/Manager/Charterer] of [address] (the “Company”)

 

CERTIFY that:

 

(a)           attached
to this Certificate marked “A”  are, true, correct, complete and
up-to-date copies of [•]  [For Corporate Certificate to be delivered under Part
I of Schedule 3, refer to each of Transaction Documents (other than any Finance
Document) to be delivered under Part I of Schedule 3.  Each such Transaction Document only required to be delivered and
certified by one Obligor (Borrower should certify principal Transaction
Documents in such Corporate Certificate). 
For Corporate Certificate to be delivered under Part II of Schedule 3,
refer to Transaction Documents relating to relevant Collateral Vessel to be
delivered under Part II of Schedule 3 (relevant Collateral Vessel Owner should
certify such Transaction Documents).];

 

(b)           attached
to this Certificate marked “B” are
true, correct, complete and up-to-date copies of all documents which contain or
establish or relate to the constitution of the Company [and a good standing
certificate in respect of it];

 

(c)           attached
to this Certificate marked “C” is
a true, correct and complete copy of [resolutions duly passed]
at [a
meeting of the Board of Directors and/or Shareholders] of the Company duly
convened and held on [        ]
approving the Transaction Documents to which the Company is a party and
authorising their execution, signature, delivery and 

 

124

 

performance
and such resolutions have not been amended, modified or revoked and are in full
force and effect;

 

(d)           [attached to this Certificate and marked “D” is a true, correct and complete copy of all the Necessary
Authorisations referred to in Part II of Schedule 3 (Conditions to each Acquisition);]

 

(e)           [attached to this Certificate marked “E” is a true, complete and correct copy of the acceptance by [•] in England of its appointment as agent of the Company for the
purpose of accepting service of process. 
I confirm that such agent’s appointment remains in force as at the date
of this Agreement;]

 

(f)            the
entry into and performance of the Transaction Documents to which the Company is
a party will not breach any borrowing or other Indebtedness limit to which the
Company is subject;

 

(g)           [each of the documents and other evidence delivered to the
Administrative Agent by or on behalf of the Company pursuant to Clause 3 (Conditions Precedent) (other than any
legal opinions) remain up-to-date and in full force and effect, and since the
delivery of such documents and other evidence, no amendment, supplement, waiver
or other variation has been made thereto [(other
than as approved by the Mandated Lead Arrangers pursuant to a written notice
dated [•] 2004);]

 

(h)           [all conditions
precedent to the consummation of the Acquisition of the Company have been
satisfied, subject only to the payment of the relevant Purchase Price;]

 

(i)            [[the
execution, delivery and performance of the Accession Notice and] the performance by the Company of its
obligations under the Credit Facility Agreement and any other agreement or
document (if any) executed pursuant thereto does not and will not breach any
agreement binding on the Company and all Necessary Authorisations required in
connection therewith have been obtained and are current;]
[and]

 

(j)            [following the consummation of the Transaction
and the incurrence of all Indebtedness by the Group (applicable at such time)
in connection with the Transaction, (a) such Group, taken as a whole, will be
solvent during the foreseeable future and able to repay its debts as they fall
due in accordance with its obligations and (b) the Guarantors at such time and
each of their direct and indirect Subsidiaries (if any), taken as a whole, will
be solvent during the foreseeable future and able to repay their debts as they
fall due in accordance with their obligations].

 

[The following signatures are the true signatures of the persons who
have been authorised to sign the relevant Transaction Documents on behalf of
the Company and to give notices and communications (including Drawdown
Requests) under or in connection with the Transaction Documents on behalf of
the Company].*

 

* Include in
respect of the Borrower.

 

125

 

	
  Name

  	
   

  	
  Position

  	
   

  	
  Signature

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [                           ]

  	
   

  	
  [                           ]

  	
   

  	
  [                           ]

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Signed:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Director

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Date:

  	
  [                           ]

  	
   

  	
   

  
							

 

 

I, [name],
a [Director/Secretary]
of [name of
Obligor/Parent/Manager/Charterer] (the “Company”),
certify that the persons whose names and signatures are set out above are duly
appointed directors of the Company and that the signatures of each of them
above are their respective signatures.

 

	
  Signed:

  	
   

  	
   

  
	
   

  	
  [Director/Secretary]

  
	
   

  	
   

  
	
  Date:

  	
  [                      ]

  

 

126

 

PART IV - INITIAL SECURITY DOCUMENTS

 

1.             Assignments by each of the Collateral Vessel
Owners in favour of the Security Trustee in respect of (i) the Insurances (ii)
the requisition proceeds (iii) the relevant Management Agreement (iv) the
Administrative Services Agreement (v) the relevant Time Charter Party (vi) the
Charter Ancillary Agreement (vii) the Performance Guarantee and (iix) the
benefit of the assignment referred to under paragraph 10 below.

 

2.             Floating charge by the Charterer in favour of
the Borrower in respect of the assets of the Charterer.

 

3.             Share pledge by the Parent in favour of the Borrower in respect of the
share capital of the Charterer.

 

4.             Share charges/pledges by the Borrower in
favour of the Security Trustee in respect of the share capital of each of the
Original Guarantors.

 

5.             Share charges/pledges by Madeira International Corp. in favour of the
Security Trustee in respect of the share capital of each Collateral Vessel
Owner owned by it.

 

6.             Assignments by the Charterer in favour of
each of the Collateral Vessel Owners in respect of the Commercial Management
Agreement.

 

7.             Assignment by the Borrower in favour of the Security Trustee in respect
of (i) the floating charge by the Charterer (ii) the Performance Guarantee
(iii) the share pledge by the Parent (iv) the Charter Ancillary Agreement (v)
the Fleet Purchase Agreement and (vi) the Administrative Services Agreement.

 

8.             Account pledge by the Charterer in favour of
the Borrower in respect of the Charter Account with the Security Trustee.

 

9.             Assignment by Borrower in favour of the
Security Trustee in respect of the account pledge referred to in paragraph 8
above.

 

10.          Assignments by the Manager in favour of each
Collateral Vessel Owner in respect of the insurances relating to off-hire.

 

11.          Account pledge by the Borrower in favour of
the Security Trustee in respect of the Borrower Account.

 

12.          Letter of undertaking/subordination agreement
by Frontline Management AS and/or the Parent in favour of the Security Trustee
in respect of any off-hire insurance relating to a Collateral Vessel under
which such entities are named as co-assured.

 

127

 

SCHEDULE 4

FORM OF DRAWDOWN REQUEST

 

From:      Ship
Finance International Limited (the “Borrower”)

 

To:          Nordea Bank
Norge ASA (the “Administrative Agent”)

 

Date: [•]

 

Dear Sirs

 

We refer to a
credit facility agreement (the “Credit
Facility Agreement”) dated
17 February 2004 entered into between the Borrower, Citigroup Global
Markets Limited and Nordea Bank Norge ASA (the “Bookrunners”), Citigroup Global Markets Limited, Nordea Bank
Norge ASA, Fortis Bank (Nederland) N.V., Crédit Agricole Indosuez,
Skandinaviska Enskilda Banken AB (publ.), DnB NOR Bank ASA, HSH Nordbank AG,
Scotiabank Europe plc, Swedbank (FöreningsSparbanken AB (publ)), The Governor
and Company of the Bank of Scotland, ING Bank N.V. (Norway), Deutsche Bank AG
in Hamburg and Schiffshypothekenbank zu Lübeck AG (the “Mandated Lead Arrangers”), the
Administrative Agent, Nordea Bank Norge ASA (the “Security Trustee”), Danish Ship Finance (Danmarks
Skibskreditfond),  NIB Capital Bank N.V.  and Vereins-und Westbank AG (the “Arrangers”), the entities named therein as
original guarantors (the “Original Guarantors”)
and the entities named therein as Lenders (the “Lenders”).  Terms
defined or construed in the Credit Facility Agreement shall have the same
meanings and constructions when used in this request.

 

We give you
notice that, pursuant to the Credit Facility Agreement, we wish the Lenders to
make an Advance on the following terms:

 

(a)           Applicable
Advance Amount: $[        ]

 

(b)           Interest
Period: [              ]

 

(c)           Proposed
date of Advance: [        ]
(or if that day is not a Business Day, the next Business Day)

 

(d)           Collateral Vessel to which such Advance is to relate: [        ]

 

We confirm
that, at the date of this Request, each of the representations deemed to be
repeated pursuant to Clause 15.31 (Repetition)
are true and no Default is continuing or would result from the Advance to which
this Drawdown Request relates.

 

The proceeds
of this drawdown should be credited to the following account:

 

Relevant bank:
[•]

Address: [•]

Account
number: [•]

 

128

 

Sort code: [•]

Account
holder: [•]

 

 

	
  Yours
  faithfully

  
	
   

  
	
   

  	
   

  
	
   

  
	
  For and on
  behalf of

  
	
   

  
	
  SHIP FINANCE INTERNATIONAL
  LIMITED

  

 

129

 

SCHEDULE 5

FORM OF ACCESSION NOTICE

 

THIS
ACCESSION NOTICE is entered into on [                        ]
by [insert name
of subsidiary] (the “Subsidiary”)
and [insert name
of Borrower] by way of a deed in favour of the Finance
Parties (as defined in the Credit Facility Agreement referred to below).

 

BACKGROUND

 

A             By a
credit facility agreement (the “Credit
Facility Agreement”) dated 17
February 2004 entered into between Ship Finance International Limited (the “Borrower”), Citigroup Global Markets
Limited and Nordea Bank Norge ASA (the “Bookrunners”),
Citigroup Global Markets Limited, Nordea Bank Norge ASA, Fortis Bank
(Nederland) N.V., Crédit Agricole Indosuez, Skandinaviska Enskilda Banken AB
(publ.), DnB NOR Bank ASA, HSH Nordbank AG, Scotiabank Europe plc, Swedbank
(FöreningsSparbanken AB (publ)), The Governor and Company of the Bank of
Scotland, ING Bank N.V. (Norway), Deutsche Bank AG in Hamburg and
Schiffshypothekenbank zu Lübeck AG (the “Mandated
Lead Arrangers”), Nordea Bank Norge ASA (the “Administrative Agent”), Nordea Bank Norge
ASA (the “Security Trustee”),
Danish Ship Finance (Danmarks Skibskreditfond),  NIB Capital Bank N.V.  and
Vereins-und Westbank AG (the “Arrangers”),
the entities named therein as original guarantors (the “Original Guarantors”) and the entities
named therein as Lenders (the “Lenders”),
the Lenders agreed to provide to the Borrower a $1,058,000,000 credit facility.  Terms defined or construed in the Credit
Facility Agreement have the same meanings and constructions when used in this
Accession Notice.

 

B             [The Borrower has
requested that the Subsidiary become
an Acceding Guarantor pursuant to and in accordance with Clause 23 (Acceding
Guarantors) of the Credit Facility Agreement.]

 

NOW
THIS DEED WITNESS AS FOLLOWS:

 

1.             Terms
defined in the Credit Facility Agreement have the same meanings in this
Agreement.

 

2.             The
Subsidiary is a company duly organised under the laws of [insert relevant jurisdiction].

 

3.             The
Subsidiary confirms that it has received from the Borrower a true and
up-to-date copy of the Credit Facility Agreement and the other Finance
Documents.

 

4.             The
Subsidiary undertakes, upon its becoming a Guarantor, to perform all the
obligations expressed to be undertaken under the Credit Facility Agreement and
the other Finance Documents by a Guarantor and agrees that it shall be bound by
the Credit Facility 

 

130

 

Agreement
and the other Finance Documents in all respects as if it had been an original
party to it as an Original Guarantor. [Provided that [make such exceptions as may be
necessary to limit the obligations of an Acceding Guarantor to ensure that such
obligations are enforceable in accordance with applicable Law]].

 

5.             The
Borrower:

 

(a)           repeats
each of the representations deemed to be repeated pursuant to Clause 15.31 (Repetition); and

 

(b)           confirms
that no Default is continuing or will occur as a result of the Subsidiary
becoming an Acceding Guarantor.

 

6.             The
Subsidiary makes, in relation to itself, the representations and warranties set
out in Clause 15 (Representations and Warranties) of the Credit Facility
Agreement (to the extent that the same are stated to apply to the Guarantors).]

 

7.             [The
Subsidiary confirms that it has appointed Maritime Recovery Limited of 20,
Salcott Road, P.O.Box 293, London SW11 6DJ, UK, to be its process agent for the
purposes of accepting service of Proceedings on it.]

 

8.             The
Subsidiary’s administrative details for the purposes of the Credit Facility
Agreement are as follows:

 

Address:

 

Contact:

 

Telephone No:

 

Fax No:

 

9.             This
Accession Notice and the rights, benefits and obligations of the parties under
this Accession Notice shall be governed by and construed in accordance with
English law.

 

This Accession
Notice has been executed as a Deed by the Borrower and the Subsidiary and
signed by the Administrative Agent on the date written at the beginning of this
Accession Notice.

 

	
  THE COMMON SEAL of

  	
  )

  	
   

  
	
  [Name of
  Subsidiary]

  	
  )

  	
   

  
	
  was hereunto
  affixed in the

  	
  )

  	
   

  
	
  presence of:

  	
  )

  	
   

  
	
   

  	
   

  	
   

  
	
  Director

  	
  )

  	
   

  	
   

  
	
   

  	
   

  	
  [insert
  name of director]

  

 

131

 

	
  Director/Secretary

  	
  )

  	
   

  	
   

  
	
   

  	
   

  	
  [insert
  name of director/secretary]

  

 

[OR]

 

EXECUTED
as a DEED by

 

[Name of
Subsidiary]

 

acting by

 

	
  THE COMMON SEAL of

  	
  )

  	
   

  
	
  Ship Finance International
  Limited

  	
  )

  	
   

  
	
  was hereunto
  affixed in

  	
  )

  	
   

  
	
  the presence
  of:

  	
  )

  	
   

  
	
   

  	
   

  	
   

  
	
  Director

  	
  )

  	
   

  	
   

  
	
   

  	
   

  	
  [insert
  name of director]

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Director/Secretary

  	
  )

  	
   

  	
   

  
	
   

  	
   

  	
  [insert
  name of director/secretary]

  
					

 

OR

 

	
  EXECUTED as a DEED by

  
	
  Ship Finance International Limited

  
	
  acting by

  
	
   

  
	
   

  
	
  THE ADMINISTRATIVE AGENT

  
	
   

  
	
  Nordea Bank Norge ASA

  
	
   

  
	
  By:

  

 

132

 

SCHEDULE 6

FORM OF DIRECTORS’ COMPLIANCE
CERTIFICATE

 

To:          Nordea
Bank Norge ASA  (the “Administrative
Agent”)

 

Dear Sirs

 

Certificate
dated [        ] in respect of the
period ended [        ] (the
“Certification Date”)

 

We refer to a
credit facility agreement (the “Credit Facility
Agreement”) dated 17 February 2004 entered into between Ship Finance
International Limited (the “Borrower”),
Citigroup Global Markets Limited and Nordea Bank Norge ASA (the “Bookrunners”), Citigroup Global Markets
Limited, Nordea Bank Norge ASA, Fortis Bank (Nederland) N.V., Crédit Agricole
Indosuez, Skandinaviska Enskilda Banken AB (publ.), DnB NOR Bank ASA, HSH
Nordbank AG, Scotiabank Europe plc, Swedbank (FöreningsSparbanken AB (publ)),
The Governor and Company of the Bank of Scotland, ING Bank N.V. (Norway),
Deutsche Bank AG in Hamburg and Schiffshypothekenbank zu Lübeck AG (the “Mandated Lead Arrangers”), the
Administrative Agent, Nordea Bank Norge ASA (the “Security Trustee”), Danish Ship Finance (Danmarks
Skibskreditfond),  NIB Capital Bank N.V.  and Vereins-und Westbank AG (the “Arrangers”), the entities named therein as
original guarantors (the “Original Guarantors”)
and the entities named therein as Lenders (the “Lenders”).  Terms
defined or construed in the Credit Facility Agreement have the same meanings
and constructions when used in this Compliance Certificate.

 

1.             This
Compliance Certificate is provided in accordance with Clause 16.4 (Compliance
Certificates) of the Credit Facility Agreement.

 

2.             [•], being the chief financial officer of the Borrower as at the date
of this Agreement, confirm that the financial covenants contained in Clause 17
(Financial
Condition) of the Credit Facility Agreement have been complied with
as at the Certification Date.

 

3.             Our
confirmation is based on the following:

[Set
out calculations for each condition required to be met by Clause 17 including
each element required to determine relevant amount/ratio]

 

133

 

4.             We
further confirm that no Default is continuing as at the Certification Date.

 

	
  Signed:

  	
   

  	
  Signed:

  
	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
  Date:

  	
   

  	
  Date:

  

 

134

 

SCHEDULE 7

 

PART I - GROUP STRUCTURE

 

 

135

 

PART II - COLLATERAL VESSELS

 

	
  Collateral
  Vessel

  Owner

  	
   

  	
  Collateral Vessel

  	
   

  	
  Built

  	
   

  	
  Size (dwt)

  	
   

  	
  Type

  	
   

  	
  Purchase Price ($)

  	
   

  	
  Applicable

  Advance

  Amount ($)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Suezmaxes

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Langkawi Shipping Ltd.

  	
   

  	
  Front Birch

  	
   

  	
  1991

  	
   

  	
  152,000

  	
   

  	
  SH

  	
   

  	
  25,244,984

  	
   

  	
  8,198,452

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Sibu Shipping Ltd.

  	
   

  	
  Front Maple

  	
   

  	
  1991

  	
   

  	
  152,000

  	
   

  	
  SH

  	
   

  	
  25,376,672

  	
   

  	
  8,198,452

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Granite Shipping Ltd

  	
   

  	
  Front Granite

  	
   

  	
  1991

  	
   

  	
  142,031

  	
   

  	
  SH

  	
   

  	
  24,651,232

  	
   

  	
  7,964,211

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Puerto Reinosa Shipping Co. S.A.

  	
   

  	
  Front Lillo

  	
   

  	
  1991

  	
   

  	
  147,143

  	
   

  	
  SH

  	
   

  	
  26,168,474

  	
   

  	
  7,964,211

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Front Tujuh Pte Ltd.

  	
   

  	
  Front Emperor

  	
   

  	
  1992

  	
   

  	
  147,273

  	
   

  	
  SH

  	
   

  	
  27,554,389

  	
   

  	
  8,315,573

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Southwest Tankers Inc.

  	
   

  	
  Front Sunda

  	
   

  	
  1992

  	
   

  	
  142,031

  	
   

  	
  SH

  	
   

  	
  26,950,136

  	
   

  	
  8,315,573

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  West Tankers Inc.

  	
   

  	
  Front Comor

  	
   

  	
  1993

  	
   

  	
  142,031

  	
   

  	
  SH

  	
   

  	
  28,427,159

  	
   

  	
  8,784,056

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Fourways Marine Limited

  	
   

  	
  Front Spirit

  	
   

  	
  1993

  	
   

  	
  147,273

  	
   

  	
  SH

  	
   

  	
  29,736,708

  	
   

  	
  8,784,056

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Front Pride Shipping Inc.

  	
   

  	
  Front Pride

  	
   

  	
  1993

  	
   

  	
  149,686

  	
   

  	
  DH

  	
   

  	
  35,601,323

  	
   

  	
  18,600,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Front Splendour Shipping Inc.

  	
   

  	
  Front Splendour

  	
   

  	
  1995

  	
   

  	
  149,745

  	
   

  	
  DH

  	
   

  	
  39,519,675

  	
   

  	
  22,200,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Front Glory Shipping Inc.

  	
   

  	
  Front Glory

  	
   

  	
  1995

  	
   

  	
  149,834

  	
   

  	
  DH

  	
   

  	
  39,223,825

  	
   

  	
  22,200,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Front Ardenne Inc.

  	
   

  	
  Front Ardenne

  	
   

  	
  1997

  	
   

  	
  153,000

  	
   

  	
  DH

  	
   

  	
  41,351,909

  	
   

  	
  25,200,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Rakis Maritime S.A.

  	
   

  	
  Front Fighter

  	
   

  	
  1998

  	
   

  	
  153,328

  	
   

  	
  DH

  	
   

  	
  41,637,071

  	
   

  	
  26,400,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Patrio Shipping Ltd.

  	
   

  	
  Front Hunter

  	
   

  	
  1998

  	
   

  	
  153,344

  	
   

  	
  DH

  	
   

  	
  41,731,293

  	
   

  	
  26,400,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Bolzano Pte.
  Ltd.

  	
   

  	
  Mindanao

  	
   

  	
  1998

  	
   

  	
  158,000

  	
   

  	
  DH

  	
   

  	
  39,320,280

  	
   

  	
  26,400,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Front Brabant Inc.

  	
   

  	
  Front Brabant

  	
   

  	
  1998

  	
   

  	
  153,000

  	
   

  	
  DH

  	
   

  	
  41,358,378

  	
   

  	
  26,400,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  VLCCs

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Cirebon Shipping Pte. Ltd.

  	
   

  	
  Front Vanadis

  	
   

  	
  1990

  	
   

  	
  285,782

  	
   

  	
  SH

  	
   

  	
  34,674,308

  	
   

  	
  9,779,583

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Fox Maritime Pte. Ltd.

  	
   

  	
  Front Sabang

  	
   

  	
  1990

  	
   

  	
  285,715

  	
   

  	
  SH

  	
   

  	
  33,537,308

  	
   

  	
  9,779,583

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Front Empat Pte. Ltd.

  	
   

  	
  Front Highness

  	
   

  	
  1991

  	
   

  	
  284,420

  	
   

  	
  SH

  	
   

  	
  38,925,161

  	
   

  	
  10,248,067

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Front Lima Pte. Ltd.

  	
   

  	
  Front Lady

  	
   

  	
  1991

  	
   

  	
  284,420

  	
   

  	
  SH

  	
   

  	
  39,234,534

  	
   

  	
  10,248,067

  	
   

  

 

136

 

	
  Collateral
  Vessel

  Owner

  	
   

  	
  Collateral Vessel

  	
   

  	
  Built

  	
   

  	
  Size (dwt)

  	
   

  	
  Type

  	
   

  	
  Purchase Price ($)

  	
   

  	
  Applicable

  Advance

  Amount ($)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Front Enam Pte. Ltd.

  	
   

  	
  Front Lord

  	
   

  	
  1991

  	
   

  	
  284,420

  	
   

  	
  SH

  	
   

  	
  38,873,902

  	
   

  	
  10,248,067

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Front Tiga Pte. Ltd.

  	
   

  	
  Front Duke

  	
   

  	
  1991

  	
   

  	
  284,420

  	
   

  	
  SH

  	
   

  	
  42,285,596

  	
   

  	
  10,775,109

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Sea Ace Corp.

  	
   

  	
  Front Ace

  	
   

  	
  1993

  	
   

  	
  275,546

  	
   

  	
  SH

  	
   

  	
  44,126,960

  	
   

  	
  11,126,472

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Front Dua Pte. Ltd.

  	
   

  	
  Front Duchess

  	
   

  	
  1993

  	
   

  	
  284,480

  	
   

  	
  SH

  	
   

  	
  45,451,803

  	
   

  	
  11,126,472

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Edinburgh Navigation S.A.

  	
   

  	
  Edinburgh

  	
   

  	
  1993

  	
   

  	
  302,493

  	
   

  	
  SH

  	
   

  	
  42,938,988

  	
   

  	
  11,770,636

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Golden Bayshore Shipping Corporation

  	
   

  	
  Navix Astral

  	
   

  	
  1996

  	
   

  	
  275,644

  	
   

  	
  SH

  	
   

  	
  49,683,613

  	
   

  	
  12,473,360

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Golden Sound Corp.

  	
   

  	
  New Vista

  	
   

  	
  1998

  	
   

  	
  300,149

  	
   

  	
  DH

  	
   

  	
  67,662,762

  	
   

  	
  37,700,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Golden Seaway Corp.

  	
   

  	
  New Vanguard

  	
   

  	
  1998

  	
   

  	
  300,058

  	
   

  	
  DH

  	
   

  	
  67,431,819

  	
   

  	
  37,700,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Golden Fjord Corp.

  	
   

  	
  Front Commerce

  	
   

  	
  1999

  	
   

  	
  300,144

  	
   

  	
  DH

  	
   

  	
  68,526,501

  	
   

  	
  39,400,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Golden Estuary Corp.

  	
   

  	
  Front Comanche

  	
   

  	
  1999

  	
   

  	
  300,133

  	
   

  	
  DH

  	
   

  	
  68,193,882

  	
   

  	
  39,400,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Golden Current Limited

  	
   

  	
  Opalia

  	
   

  	
  1999

  	
   

  	
  302,193

  	
   

  	
  DH

  	
   

  	
  56,343,723

  	
   

  	
  39,400,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Golden Tide Corp.

  	
   

  	
  New Circassia

  	
   

  	
  1999

  	
   

  	
  306,009

  	
   

  	
  DH

  	
   

  	
  64,184,079

  	
   

  	
  39,400,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Oscilla Shipping Limited

  	
   

  	
  Oscilla

  	
   

  	
  2000

  	
   

  	
  302,193

  	
   

  	
  DH

  	
   

  	
  51,364,002

  	
   

  	
  40,900,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Ariake
  Transport Corp.

  	
   

  	
  Ariake

  	
   

  	
  2001

  	
   

  	
  298,530

  	
   

  	
  DH

  	
   

  	
  74,247,705

  	
   

  	
  42,500,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Front Stratus Inc.

  	
   

  	
  Front Stratus

  	
   

  	
  2002

  	
   

  	
  298,500

  	
   

  	
  DH

  	
   

  	
  72,229,427

  	
   

  	
  43,900,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Front Saga Inc.

  	
   

  	
  Front Page

  	
   

  	
  2002

  	
   

  	
  298,500

  	
   

  	
  DH

  	
   

  	
  72,480,897

  	
   

  	
  43,900,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Front Serenade Inc.

  	
   

  	
  Front Serenade

  	
   

  	
  2002

  	
   

  	
  299,152

  	
   

  	
  DH

  	
   

  	
  70,640,255

  	
   

  	
  43,900,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Front Falcon Corp.

  	
   

  	
  Front Falcon

  	
   

  	
  2002

  	
   

  	
  308,000

  	
   

  	
  DH

  	
   

  	
  73,498,862

  	
   

  	
  43,900,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Hitachi Hull
  4983 Ltd.

  	
   

  	
  Hakata

  	
   

  	
  2002

  	
   

  	
  296,000

  	
   

  	
  DH

  	
   

  	
  75,310,055

  	
   

  	
  43,900,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  OBOs

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Front Lapan Pte. Ltd.

  	
   

  	
  Front Climber

  	
   

  	
  1991

  	
   

  	
  169,178

  	
   

  	
  DH

  	
   

  	
  31,052,994

  	
   

  	
  18,900,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Transcorp Pte. Ltd.

  	
   

  	
  Front Guider

  	
   

  	
  1991

  	
   

  	
  169,142

  	
   

  	
  DH

  	
   

  	
  36,371,734

  	
   

  	
  18,900,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Bonfield Shipping Limited

  	
   

  	
  Front Driver

  	
   

  	
  1991

  	
   

  	
  169,177

  	
   

  	
  DH

  	
   

  	
  34,483,616

  	
   

  	
  18,900,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Front Sembilan Pte. Ltd.

  	
   

  	
  Front Leader

  	
   

  	
  1991

  	
   

  	
  169,381

  	
   

  	
  DH

  	
   

  	
  31,025,808

  	
   

  	
  18,900,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Katong Investments Limited

  	
   

  	
  Front Breaker

  	
   

  	
  1991

  	
   

  	
  169,381

  	
   

  	
  DH

  	
   

  	
  35,438,232

  	
   

  	
  18,900,000

  	
   

  

 

137

 

	
  Collateral
  Vessel

  Owner

  	
   

  	
  Collateral Vessel

  	
   

  	
  Built

  	
   

  	
  Size (dwt)

  	
   

  	
  Type

  	
   

  	
  Purchase Price ($)

  	
   

  	
  Applicable

  Advance

  Amount ($)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Aspinall Pte. Ltd.

  	
   

  	
  Front Viewer

  	
   

  	
  1992

  	
   

  	
  169,381

  	
   

  	
  DH

  	
   

  	
  38,781,295

  	
   

  	
  19,900,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Rettie Pte.
  Ltd.

  	
   

  	
  Front
  Striver

  	
   

  	
  1992

  	
   

  	
  169,204

  	
   

  	
  DH

  	
   

  	
  37,104,624

  	
   

  	
  19,900,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Blizana Pte.
  Ltd.

  	
   

  	
  Front Rider

  	
   

  	
  1992

  	
   

  	
  169,718

  	
   

  	
  DH

  	
   

  	
  38,439,499

  	
   

  	
  19,900,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TOTAL:

  	
   

  	
  2,108,397,452

  	
   

  	
  1,058,000,000

  	
   

  

 

SH = Single Hulled

DH = Double Hulled

 

138

 

SCHEDULE 8

FORM OF CONSOLIDATION NOTICE

 

To:          Nordea
Bank Norge ASA (the “Administrative Agent”)

 

From:      Ship
Finance International Limited (the “Borrower”)

 

Date:       [•] 2004

 

Dear Sirs

 

We refer to a
credit facility agreement (the “Credit
Facility Agreement”) dated 17 February 2004 entered into between the
Borrower, Citigroup Global Markets Limited and Nordea Bank Norge ASA as
Bookrunners, Citigroup Global Markets Limited, Nordea Bank Norge ASA, HSH
Nordbank AG, Fortis Bank (Nederland) N.V., Crédit Agricole Indosuez,
Skandinaviska Enskilda Banken AB (publ.), DnB NOR Bank ASA, HSH Nordbank AG,
Scotiabank Europe plc, Swedbank (FöreningsSparbanken AB (publ)), The Governor
and Company of the Bank of Scotland, ING Bank N.V. (Norway), Deutsche Bank AG
in Hamburg and Schiffshypothekenbank zu Lübeck AG as Mandated Lead Arrangers,
the Administrative Agent, Nordea Bank Norge ASA as the Security Trustee, Danish
Ship Finance (Danmarks Skibskreditfond),  NIB Capital Bank N.V.  and Vereins-und Westbank AG
as the Arrangers, the entities named therein as original guarantors (the “Original Guarantors”) and the entities
named therein as Lenders (the “Lenders”).  Terms defined or construed in the Credit
Facility Agreement have the same meanings and constructions when used in this
Consolidation Notice.

 

We further
refer to the Consolidation Date which is to occur on 17 May 2004.  Pursuant to
Clause 8.3(b) (Consolidation of Advances)
of the Credit Facility Agreement, we hereby give you notice as follows:

 

(a)           the
number of Advances that we wish to remain outstanding from the Consolidation
Date is [•]; and

 

(b)           the
principal amount and Interest Period to be applicable to each such Advance
(with effect from the Consolidation Date) shall be as follows:*

 

(i)            Advance One: [principal
amount] [1] month;

 

(ii)           Advance
Two: [principal amount] [2] months;

 

(iii)         Advance
Three: [principal amount] [3] months;

 

* Delete as appropriate.  Maximum of six Advances.

 

139

 

(iv)          Advance
Four: [principal amount] [6] months;

 

(v)            Advance
Five [principal amount] [9] months; and

 

(vi)          Advance
Six [principal amount] [12] months.

 

(c)           For
the avoidance of doubt, we acknowledge that the aggregate amount outstanding
under the Facility in respect of the principal amount immediately following the
Consolidation Date will equal [•].§

 

	
  Yours
  faithfully

  
	
   

  
	
   

  	
   

  
	
   

  
	
  For and on
  behalf of

  
	
   

  
	
  SHIP FINANCE INTERNATIONAL
  LIMITED

  

 

 

§ Equal to the
sum of the amounts listed under paragraph (b).

 

140

 

SCHEDULE 9

REPAYMENT

 

	
   

  	
   

  	
  (Amounts
  in US$)

  	
   

  
	
  Collateral Vessel

  	
   

  	
  1

  	
   

  	
  2

  	
   

  	
  3

  	
   

  	
  4

  	
   

  	
  5

  	
   

  	
  6

  	
   

  	
  7

  	
   

  	
  8

  	
   

  
	
   

  	
   

  	
  (in $)

  	
   

  
	
  Suezmax

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Front Birch

  	
   

  	
  341,602

  	
   

  	
  341,602

  	
   

  	
  341,602

  	
   

  	
  341,602

  	
   

  	
  341,602

  	
   

  	
  341,602

  	
   

  	
  341,602

  	
   

  	
  341,602

  	
   

  
	
  Front Maple

  	
   

  	
  341,602

  	
   

  	
  341,602

  	
   

  	
  341,602

  	
   

  	
  341,602

  	
   

  	
  341,602

  	
   

  	
  341,602

  	
   

  	
  341,602

  	
   

  	
  341,602

  	
   

  
	
  Front Granite

  	
   

  	
  331,842

  	
   

  	
  331,842

  	
   

  	
  331,842

  	
   

  	
  331,842

  	
   

  	
  331,842

  	
   

  	
  331,842

  	
   

  	
  331,842

  	
   

  	
  331,842

  	
   

  
	
  Front Lillo

  	
   

  	
  331,842

  	
   

  	
  331,842

  	
   

  	
  331,842

  	
   

  	
  331,842

  	
   

  	
  331,842

  	
   

  	
  331,842

  	
   

  	
  331,842

  	
   

  	
  331,842

  	
   

  
	
  Front Emperor

  	
   

  	
  346,482

  	
   

  	
  346,482

  	
   

  	
  346,482

  	
   

  	
  346,482

  	
   

  	
  346,482

  	
   

  	
  346,482

  	
   

  	
  346,482

  	
   

  	
  346,482

  	
   

  
	
  Front Sunda

  	
   

  	
  346,482

  	
   

  	
  346,482

  	
   

  	
  346,482

  	
   

  	
  346,482

  	
   

  	
  346,482

  	
   

  	
  346,482

  	
   

  	
  346,482

  	
   

  	
  346,482

  	
   

  
	
  Front Comor

  	
   

  	
  366,002

  	
   

  	
  366,002

  	
   

  	
  366,002

  	
   

  	
  366,002

  	
   

  	
  366,002

  	
   

  	
  366,002

  	
   

  	
  366,002

  	
   

  	
  366,002

  	
   

  
	
  Front Spirit

  	
   

  	
  366,002

  	
   

  	
  366,002

  	
   

  	
  366,002

  	
   

  	
  366,002

  	
   

  	
  366,002

  	
   

  	
  366,002

  	
   

  	
  366,002

  	
   

  	
  366,002

  	
   

  
	
  Front Pride

  	
   

  	
  465,000

  	
   

  	
  465,000

  	
   

  	
  465,000

  	
   

  	
  465,000

  	
   

  	
  465,000

  	
   

  	
  465,000

  	
   

  	
  465,000

  	
   

  	
  465,000

  	
   

  
	
  Front Splendour

  	
   

  	
  462,500

  	
   

  	
  462,500

  	
   

  	
  462,500

  	
   

  	
  462,500

  	
   

  	
  462,500

  	
   

  	
  462,500

  	
   

  	
  462,500

  	
   

  	
  462,500

  	
   

  
	
  Front Glory

  	
   

  	
  462,500

  	
   

  	
  462,500

  	
   

  	
  462,500

  	
   

  	
  462,500

  	
   

  	
  462,500

  	
   

  	
  462,500

  	
   

  	
  462,500

  	
   

  	
  462,500

  	
   

  
	
  Front Ardenne

  	
   

  	
  450,000

  	
   

  	
  450,000

  	
   

  	
  450,000

  	
   

  	
  450,000

  	
   

  	
  450,000

  	
   

  	
  450,000

  	
   

  	
  450,000

  	
   

  	
  450,000

  	
   

  
	
  Front Fighter

  	
   

  	
  440,000

  	
   

  	
  440,000

  	
   

  	
  440,000

  	
   

  	
  440,000

  	
   

  	
  440,000

  	
   

  	
  440,000

  	
   

  	
  440,000

  	
   

  	
  440,000

  	
   

  
	
  Front Hunter

  	
   

  	
  440,000

  	
   

  	
  440,000

  	
   

  	
  440,000

  	
   

  	
  440,000

  	
   

  	
  440,000

  	
   

  	
  440,000

  	
   

  	
  440,000

  	
   

  	
  440,000

  	
   

  
	
  Front Mindanao

  	
   

  	
  440,000

  	
   

  	
  440,000

  	
   

  	
  440,000

  	
   

  	
  440,000

  	
   

  	
  440,000

  	
   

  	
  440,000

  	
   

  	
  440,000

  	
   

  	
  440,000

  	
   

  
	
  Front Brabant

  	
   

  	
  440,000

  	
   

  	
  440,000

  	
   

  	
  440,000

  	
   

  	
  440,000

  	
   

  	
  440,000

  	
   

  	
  440,000

  	
   

  	
  440,000

  	
   

  	
  440,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  VLCCs

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Front Vanadis

  	
   

  	
  488,979

  	
   

  	
  488,979

  	
   

  	
  488,979

  	
   

  	
  488,979

  	
   

  	
  488,979

  	
   

  	
  488,979

  	
   

  	
  488,979

  	
   

  	
  488,979

  	
   

  
	
  Front Sabang

  	
   

  	
  488,979

  	
   

  	
  488,979

  	
   

  	
  488,979

  	
   

  	
  488,979

  	
   

  	
  488,979

  	
   

  	
  488,979

  	
   

  	
  488,979

  	
   

  	
  488,979

  	
   

  
	
  Front Highness

  	
   

  	
  427,003

  	
   

  	
  427,003

  	
   

  	
  427,003

  	
   

  	
  427,003

  	
   

  	
  427,003

  	
   

  	
  427,003

  	
   

  	
  427,003

  	
   

  	
  427,003

  	
   

  
	
  Front Lady

  	
   

  	
  427,003

  	
   

  	
  427,003

  	
   

  	
  427,003

  	
   

  	
  427,003

  	
   

  	
  427,003

  	
   

  	
  427,003

  	
   

  	
  427,003

  	
   

  	
  427,003

  	
   

  
	
  Front Lord

  	
   

  	
  427,003

  	
   

  	
  427,003

  	
   

  	
  427,003

  	
   

  	
  427,003

  	
   

  	
  427,003

  	
   

  	
  427,003

  	
   

  	
  427,003

  	
   

  	
  427,003

  	
   

  
	
  Front Duke

  	
   

  	
  448,963

  	
   

  	
  448,963

  	
   

  	
  448,963

  	
   

  	
  448,963

  	
   

  	
  448,963

  	
   

  	
  448,963

  	
   

  	
  448,963

  	
   

  	
  448,963

  	
   

  
	
  Front Ace

  	
   

  	
  463,603

  	
   

  	
  463,603

  	
   

  	
  463,603

  	
   

  	
  463,603

  	
   

  	
  463,603

  	
   

  	
  463,603

  	
   

  	
  463,603

  	
   

  	
  463,603

  	
   

  
	
  Front Duchess

  	
   

  	
  463,603

  	
   

  	
  463,603

  	
   

  	
  463,603

  	
   

  	
  463,603

  	
   

  	
  463,603

  	
   

  	
  463,603

  	
   

  	
  463,603

  	
   

  	
  463,603

  	
   

  
	
  Edinburgh

  	
   

  	
  490,443

  	
   

  	
  490,443

  	
   

  	
  490,443

  	
   

  	
  490,443

  	
   

  	
  490,443

  	
   

  	
  490,443

  	
   

  	
  490,443

  	
   

  	
  490,443

  	
   

  
	
  Navix Astral

  	
   

  	
  519,723

  	
   

  	
  519,723

  	
   

  	
  519,723

  	
   

  	
  519,723

  	
   

  	
  519,723

  	
   

  	
  519,723

  	
   

  	
  519,723

  	
   

  	
  519,723

  	
   

  
	
  New Vista

  	
   

  	
  628,333

  	
   

  	
  628,333

  	
   

  	
  628,333

  	
   

  	
  628,333

  	
   

  	
  628,333

  	
   

  	
  628,333

  	
   

  	
  628,333

  	
   

  	
  628,333

  	
   

  
	
  New Vanguard

  	
   

  	
  628,333

  	
   

  	
  628,333

  	
   

  	
  628,333

  	
   

  	
  628,333

  	
   

  	
  628,333

  	
   

  	
  628,333

  	
   

  	
  628,333

  	
   

  	
  628,333

  	
   

  
	
  Front Commerce

  	
   

  	
  615,625

  	
   

  	
  615,625

  	
   

  	
  615,625

  	
   

  	
  615,625

  	
   

  	
  615,625

  	
   

  	
  615,625

  	
   

  	
  615,625

  	
   

  	
  615,625

  	
   

  
	
  Front Comanche

  	
   

  	
  615,625

  	
   

  	
  615,625

  	
   

  	
  615,625

  	
   

  	
  615,625

  	
   

  	
  615,625

  	
   

  	
  615,625

  	
   

  	
  615,625

  	
   

  	
  615,625

  	
   

  

 

141

 

	
   

  	
   

  	
  (Amounts
  in US$)

  	
   

  
	
  Collateral Vessel

  	
   

  	
  1

  	
   

  	
  2

  	
   

  	
  3

  	
   

  	
  4

  	
   

  	
  5

  	
   

  	
  6

  	
   

  	
  7

  	
   

  	
  8

  	
   

  
	
   

  	
   

  	
  (in $)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Opalia

  	
   

  	
  615,625

  	
   

  	
  615,625

  	
   

  	
  615,625

  	
   

  	
  615,625

  	
   

  	
  615,625

  	
   

  	
  615,625

  	
   

  	
  615,625

  	
   

  	
  615,625

  	
   

  
	
  New Circassia

  	
   

  	
  615,625

  	
   

  	
  615,625

  	
   

  	
  615,625

  	
   

  	
  615,625

  	
   

  	
  615,625

  	
   

  	
  615,625

  	
   

  	
  615,625

  	
   

  	
  615,625

  	
   

  
	
  Oscilla

  	
   

  	
  601,471

  	
   

  	
  601,471

  	
   

  	
  601,471

  	
   

  	
  601,471

  	
   

  	
  601,471

  	
   

  	
  601,471

  	
   

  	
  601,471

  	
   

  	
  601,471

  	
   

  
	
  Ariake

  	
   

  	
  590,278

  	
   

  	
  590,278

  	
   

  	
  590,278

  	
   

  	
  590,278

  	
   

  	
  590,278

  	
   

  	
  590,278

  	
   

  	
  590,278

  	
   

  	
  590,278

  	
   

  
	
  Front Stratus

  	
   

  	
  577,632

  	
   

  	
  577,632

  	
   

  	
  577,632

  	
   

  	
  577,632

  	
   

  	
  577,632

  	
   

  	
  577,632

  	
   

  	
  577,632

  	
   

  	
  577,632

  	
   

  
	
  Front Page

  	
   

  	
  577,632

  	
   

  	
  577,632

  	
   

  	
  577,632

  	
   

  	
  577,632

  	
   

  	
  577,632

  	
   

  	
  577,632

  	
   

  	
  577,632

  	
   

  	
  577,632

  	
   

  
	
  Front Serenade

  	
   

  	
  577,632

  	
   

  	
  577,632

  	
   

  	
  577,632

  	
   

  	
  577,632

  	
   

  	
  577,632

  	
   

  	
  577,632

  	
   

  	
  577,632

  	
   

  	
  577,632

  	
   

  
	
  Front Falcon

  	
   

  	
  577,632

  	
   

  	
  577,632

  	
   

  	
  577,632

  	
   

  	
  577,632

  	
   

  	
  577,632

  	
   

  	
  577,632

  	
   

  	
  577,632

  	
   

  	
  577,632

  	
   

  
	
  Hakata

  	
   

  	
  577,632

  	
   

  	
  577,632

  	
   

  	
  577,632

  	
   

  	
  577,632

  	
   

  	
  577,632

  	
   

  	
  577,632

  	
   

  	
  577,632

  	
   

  	
  577,632

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  OBOs

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Front Climber

  	
   

  	
  590,625

  	
   

  	
  590,625

  	
   

  	
  590,625

  	
   

  	
  590,625

  	
   

  	
  590,625

  	
   

  	
  590,625

  	
   

  	
  590,625

  	
   

  	
  590,625

  	
   

  
	
  Front Guider

  	
   

  	
  590,625

  	
   

  	
  590,625

  	
   

  	
  590,625

  	
   

  	
  590,625

  	
   

  	
  590,625

  	
   

  	
  590,625

  	
   

  	
  590,625

  	
   

  	
  590,625

  	
   

  
	
  Front Driver

  	
   

  	
  590,625

  	
   

  	
  590,625

  	
   

  	
  590,625

  	
   

  	
  590,625

  	
   

  	
  590,625

  	
   

  	
  590,625

  	
   

  	
  590,625

  	
   

  	
  590,625

  	
   

  
	
  Front Leader

  	
   

  	
  590,625

  	
   

  	
  590,625

  	
   

  	
  590,625

  	
   

  	
  590,625

  	
   

  	
  590,625

  	
   

  	
  590,625

  	
   

  	
  590,625

  	
   

  	
  590,625

  	
   

  
	
  Front Breaker

  	
   

  	
  590,625

  	
   

  	
  590,625

  	
   

  	
  590,625

  	
   

  	
  590,625

  	
   

  	
  590,625

  	
   

  	
  590,625

  	
   

  	
  590,625

  	
   

  	
  590,625

  	
   

  
	
  Front Viewer

  	
   

  	
  552,778

  	
   

  	
  552,778

  	
   

  	
  552,778

  	
   

  	
  552,778

  	
   

  	
  552,778

  	
   

  	
  552,778

  	
   

  	
  552,778

  	
   

  	
  552,778

  	
   

  
	
  Front Striver

  	
   

  	
  552,778

  	
   

  	
  552,778

  	
   

  	
  552,778

  	
   

  	
  552,778

  	
   

  	
  552,778

  	
   

  	
  552,778

  	
   

  	
  552,778

  	
   

  	
  552,778

  	
   

  
	
  Front Rider

  	
   

  	
  552,778

  	
   

  	
  552,778

  	
   

  	
  552,778

  	
   

  	
  552,778

  	
   

  	
  552,778

  	
   

  	
  552,778

  	
   

  	
  552,778

  	
   

  	
  552,778

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  23,427,692

  	
   

  	
  23,427,692

  	
   

  	
  23,427,692

  	
   

  	
  23,427,692

  	
   

  	
  23,427,692

  	
   

  	
  23,427,692

  	
   

  	
  23,427,692

  	
   

  	
  23,427,692

  	
   

  

 

142

 

	
   

  	
   

  	
  (Amounts
  in US$)

  	
   

  
	
  Collateral Vessel

  	
   

  	
  1

  	
   

  	
  2

  	
   

  	
  3

  	
   

  	
  4

  	
   

  	
  5

  	
   

  	
  6

  	
   

  	
  7

  	
   

  	
  8

  	
   

  
	
   

  	
   

  	
  (in $)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Suezmax

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Front Birch

  	
   

  	
  341,602

  	
   

  	
  341,602

  	
   

  	
  341,602

  	
   

  	
  341,602

  	
   

  	
  341,602

  	
   

  	
  341,602

  	
   

  	
  341,602

  	
   

  	
  341,602

  	
   

  
	
  Front Maple

  	
   

  	
  341,602

  	
   

  	
  341,602

  	
   

  	
  341,602

  	
   

  	
  341,602

  	
   

  	
  341,602

  	
   

  	
  341,602

  	
   

  	
  341,602

  	
   

  	
  341,602

  	
   

  
	
  Front Granite

  	
   

  	
  331,842

  	
   

  	
  331,842

  	
   

  	
  331,842

  	
   

  	
  331,842

  	
   

  	
  331,842

  	
   

  	
  331,842

  	
   

  	
  331,842

  	
   

  	
  331,842

  	
   

  
	
  Front Lillo

  	
   

  	
  331,842

  	
   

  	
  331,842

  	
   

  	
  331,842

  	
   

  	
  331,842

  	
   

  	
  331,842

  	
   

  	
  331,842

  	
   

  	
  331,842

  	
   

  	
  331,842

  	
   

  
	
  Front Emperor

  	
   

  	
  346,482

  	
   

  	
  346,482

  	
   

  	
  346,482

  	
   

  	
  346,482

  	
   

  	
  346,482

  	
   

  	
  346,482

  	
   

  	
  346,482

  	
   

  	
  346,482

  	
   

  
	
  Front Sunda

  	
   

  	
  346,482

  	
   

  	
  346,482

  	
   

  	
  346,482

  	
   

  	
  346,482

  	
   

  	
  346,482

  	
   

  	
  346,482

  	
   

  	
  346,482

  	
   

  	
  346,482

  	
   

  
	
  Front Comor

  	
   

  	
  366,002

  	
   

  	
  366,002

  	
   

  	
  366,002

  	
   

  	
  366,002

  	
   

  	
  366,002

  	
   

  	
  366,002

  	
   

  	
  366,002

  	
   

  	
  366,002

  	
   

  
	
  Front Spirit

  	
   

  	
  366,002

  	
   

  	
  366,002

  	
   

  	
  366,002

  	
   

  	
  366,002

  	
   

  	
  366,002

  	
   

  	
  366,002

  	
   

  	
  366,002

  	
   

  	
  366,002

  	
   

  
	
  Front Pride

  	
   

  	
  465,000

  	
   

  	
  465,000

  	
   

  	
  465,000

  	
   

  	
  465,000

  	
   

  	
  465,000

  	
   

  	
  465,000

  	
   

  	
  465,000

  	
   

  	
  465,000

  	
   

  
	
  Front Splendour

  	
   

  	
  462,500

  	
   

  	
  462,500

  	
   

  	
  462,500

  	
   

  	
  462,500

  	
   

  	
  462,500

  	
   

  	
  462,500

  	
   

  	
  462,500

  	
   

  	
  462,500

  	
   

  
	
  Front Glory

  	
   

  	
  462,500

  	
   

  	
  462,500

  	
   

  	
  462,500

  	
   

  	
  462,500

  	
   

  	
  462,500

  	
   

  	
  462,500

  	
   

  	
  462,500

  	
   

  	
  462,500

  	
   

  
	
  Front Ardenne

  	
   

  	
  450,000

  	
   

  	
  450,000

  	
   

  	
  450,000

  	
   

  	
  450,000

  	
   

  	
  450,000

  	
   

  	
  450,000

  	
   

  	
  450,000

  	
   

  	
  450,000

  	
   

  
	
  Front Fighter

  	
   

  	
  440,000

  	
   

  	
  440,000

  	
   

  	
  440,000

  	
   

  	
  440,000

  	
   

  	
  440,000

  	
   

  	
  440,000

  	
   

  	
  440,000

  	
   

  	
  440,000

  	
   

  
	
  Front Hunter

  	
   

  	
  440,000

  	
   

  	
  440,000

  	
   

  	
  440,000

  	
   

  	
  440,000

  	
   

  	
  440,000

  	
   

  	
  440,000

  	
   

  	
  440,000

  	
   

  	
  440,000

  	
   

  
	
  Front Mindanao

  	
   

  	
  440,000

  	
   

  	
  440,000

  	
   

  	
  440,000

  	
   

  	
  440,000

  	
   

  	
  440,000

  	
   

  	
  440,000

  	
   

  	
  440,000

  	
   

  	
  440,000

  	
   

  
	
  Front Brabant

  	
   

  	
  440,000

  	
   

  	
  440,000

  	
   

  	
  440,000

  	
   

  	
  440,000

  	
   

  	
  440,000

  	
   

  	
  440,000

  	
   

  	
  440,000

  	
   

  	
  440,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  VLCCs

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Front Vanadis

  	
   

  	
  488,979

  	
   

  	
  488,979

  	
   

  	
  488,979

  	
   

  	
  488,979

  	
   

  	
  488,979

  	
   

  	
  488,979

  	
   

  	
  488,979

  	
   

  	
  488,979

  	
   

  
	
  Front Sabang

  	
   

  	
  488,979

  	
   

  	
  488,979

  	
   

  	
  488,979

  	
   

  	
  488,979

  	
   

  	
  488,979

  	
   

  	
  488,979

  	
   

  	
  488,979

  	
   

  	
  488,979

  	
   

  
	
  Front Highness

  	
   

  	
  427,003

  	
   

  	
  427,003

  	
   

  	
  427,003

  	
   

  	
  427,003

  	
   

  	
  427,003

  	
   

  	
  427,003

  	
   

  	
  427,003

  	
   

  	
  427,003

  	
   

  
	
  Front Lady

  	
   

  	
  427,003

  	
   

  	
  427,003

  	
   

  	
  427,003

  	
   

  	
  427,003

  	
   

  	
  427,003

  	
   

  	
  427,003

  	
   

  	
  427,003

  	
   

  	
  427,003

  	
   

  
	
  Front Lord

  	
   

  	
  427,003

  	
   

  	
  427,003

  	
   

  	
  427,003

  	
   

  	
  427,003

  	
   

  	
  427,003

  	
   

  	
  427,003

  	
   

  	
  427,003

  	
   

  	
  427,003

  	
   

  
	
  Front Duke

  	
   

  	
  448,963

  	
   

  	
  448,963

  	
   

  	
  448,963

  	
   

  	
  448,963

  	
   

  	
  448,963

  	
   

  	
  448,963

  	
   

  	
  448,963

  	
   

  	
  448,963

  	
   

  
	
  Front Ace

  	
   

  	
  463,603

  	
   

  	
  463,603

  	
   

  	
  463,603

  	
   

  	
  463,603

  	
   

  	
  463,603

  	
   

  	
  463,603

  	
   

  	
  463,603

  	
   

  	
  463,603

  	
   

  
	
  Front Duchess

  	
   

  	
  463,603

  	
   

  	
  463,603

  	
   

  	
  463,603

  	
   

  	
  463,603

  	
   

  	
  463,603

  	
   

  	
  463,603

  	
   

  	
  463,603

  	
   

  	
  463,603

  	
   

  
	
  Edinburgh

  	
   

  	
  490,443

  	
   

  	
  490,443

  	
   

  	
  490,443

  	
   

  	
  490,443

  	
   

  	
  490,443

  	
   

  	
  490,443

  	
   

  	
  490,443

  	
   

  	
  490,443

  	
   

  
	
  Navix Astral

  	
   

  	
  519,723

  	
   

  	
  519,723

  	
   

  	
  519,723

  	
   

  	
  519,723

  	
   

  	
  519,723

  	
   

  	
  519,723

  	
   

  	
  519,723

  	
   

  	
  519,723

  	
   

  
	
  New Vista

  	
   

  	
  628,333

  	
   

  	
  628,333

  	
   

  	
  628,333

  	
   

  	
  628,333

  	
   

  	
  628,333

  	
   

  	
  628,333

  	
   

  	
  628,333

  	
   

  	
  628,333

  	
   

  
	
  New Vanguard

  	
   

  	
  628,333

  	
   

  	
  628,333

  	
   

  	
  628,333

  	
   

  	
  628,333

  	
   

  	
  628,333

  	
   

  	
  628,333

  	
   

  	
  628,333

  	
   

  	
  628,333

  	
   

  
	
  Front Commerce

  	
   

  	
  615,625

  	
   

  	
  615,625

  	
   

  	
  615,625

  	
   

  	
  615,625

  	
   

  	
  615,625

  	
   

  	
  615,625

  	
   

  	
  615,625

  	
   

  	
  615,625

  	
   

  
	
  Front Comanche

  	
   

  	
  615,625

  	
   

  	
  615,625

  	
   

  	
  615,625

  	
   

  	
  615,625

  	
   

  	
  615,625

  	
   

  	
  615,625

  	
   

  	
  615,625

  	
   

  	
  615,625

  	
   

  
	
  Opalia

  	
   

  	
  615,625

  	
   

  	
  615,625

  	
   

  	
  615,625

  	
   

  	
  615,625

  	
   

  	
  615,625

  	
   

  	
  615,625

  	
   

  	
  615,625

  	
   

  	
  615,625

  	
   

  

 

143

 

	
   

  	
   

  	
  (Amounts
  in US$)

  	
   

  
	
  Collateral Vessel

  	
   

  	
  1

  	
   

  	
  2

  	
   

  	
  3

  	
   

  	
  4

  	
   

  	
  5

  	
   

  	
  6

  	
   

  	
  7

  	
   

  	
  8

  	
   

  
	
   

  	
   

  	
  (in $)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  New Circassia

  	
   

  	
  615,625

  	
   

  	
  615,625

  	
   

  	
  615,625

  	
   

  	
  615,625

  	
   

  	
  615,625

  	
   

  	
  615,625

  	
   

  	
  615,625

  	
   

  	
  615,625

  	
   

  
	
  Oscilla

  	
   

  	
  601,471

  	
   

  	
  601,471

  	
   

  	
  601,471

  	
   

  	
  601,471

  	
   

  	
  601,471

  	
   

  	
  601,471

  	
   

  	
  601,471

  	
   

  	
  601,471

  	
   

  
	
  Ariake

  	
   

  	
  590,278

  	
   

  	
  590,278

  	
   

  	
  590,278

  	
   

  	
  590,278

  	
   

  	
  590,278

  	
   

  	
  590,278

  	
   

  	
  590,278

  	
   

  	
  590,278

  	
   

  
	
  Front Stratus

  	
   

  	
  577,632

  	
   

  	
  577,632

  	
   

  	
  577,632

  	
   

  	
  577,632

  	
   

  	
  577,632

  	
   

  	
  577,632

  	
   

  	
  577,632

  	
   

  	
  577,632

  	
   

  
	
  Front Page

  	
   

  	
  577,632

  	
   

  	
  577,632

  	
   

  	
  577,632

  	
   

  	
  577,632

  	
   

  	
  577,632

  	
   

  	
  577,632

  	
   

  	
  577,632

  	
   

  	
  577,632

  	
   

  
	
  Front Serenade

  	
   

  	
  577,632

  	
   

  	
  577,632

  	
   

  	
  577,632

  	
   

  	
  577,632

  	
   

  	
  577,632

  	
   

  	
  577,632

  	
   

  	
  577,632

  	
   

  	
  577,632

  	
   

  
	
  Front Falcon

  	
   

  	
  577,632

  	
   

  	
  577,632

  	
   

  	
  577,632

  	
   

  	
  577,632

  	
   

  	
  577,632

  	
   

  	
  577,632

  	
   

  	
  577,632

  	
   

  	
  577,632

  	
   

  
	
  Hakata

  	
   

  	
  577,632

  	
   

  	
  577,632

  	
   

  	
  577,632

  	
   

  	
  577,632

  	
   

  	
  577,632

  	
   

  	
  577,632

  	
   

  	
  577,632

  	
   

  	
  577,632

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  OBOs

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Front Climber

  	
   

  	
  590,625

  	
   

  	
  590,625

  	
   

  	
  590,625

  	
   

  	
  590,625

  	
   

  	
  590,625

  	
   

  	
  590,625

  	
   

  	
  590,625

  	
   

  	
  590,625

  	
   

  
	
  Front Guider

  	
   

  	
  590,625

  	
   

  	
  590,625

  	
   

  	
  590,625

  	
   

  	
  590,625

  	
   

  	
  590,625

  	
   

  	
  590,625

  	
   

  	
  590,625

  	
   

  	
  590,625

  	
   

  
	
  Front Driver

  	
   

  	
  590,625

  	
   

  	
  590,625

  	
   

  	
  590,625

  	
   

  	
  590,625

  	
   

  	
  590,625

  	
   

  	
  590,625

  	
   

  	
  590,625

  	
   

  	
  590,625

  	
   

  
	
  Front Leader

  	
   

  	
  590,625

  	
   

  	
  590,625

  	
   

  	
  590,625

  	
   

  	
  590,625

  	
   

  	
  590,625

  	
   

  	
  590,625

  	
   

  	
  590,625

  	
   

  	
  590,625

  	
   

  
	
  Front Breaker

  	
   

  	
  590,625

  	
   

  	
  590,625

  	
   

  	
  590,625

  	
   

  	
  590,625

  	
   

  	
  590,625

  	
   

  	
  590,625

  	
   

  	
  590,625

  	
   

  	
  590,625

  	
   

  
	
  Front Viewer

  	
   

  	
  552,778

  	
   

  	
  552,778

  	
   

  	
  552,778

  	
   

  	
  552,778

  	
   

  	
  552,778

  	
   

  	
  552,778

  	
   

  	
  552,778

  	
   

  	
  552,778

  	
   

  
	
  Front Striver

  	
   

  	
  552,778

  	
   

  	
  552,778

  	
   

  	
  552,778

  	
   

  	
  552,778

  	
   

  	
  552,778

  	
   

  	
  552,778

  	
   

  	
  552,778

  	
   

  	
  552,778

  	
   

  
	
  Front Rider

  	
   

  	
  552,778

  	
   

  	
  552,778

  	
   

  	
  552,778

  	
   

  	
  552,778

  	
   

  	
  552,778

  	
   

  	
  552,778

  	
   

  	
  552,778

  	
   

  	
  552,778

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  23,427,692

  	
   

  	
  23,427,692

  	
   

  	
  23,427,692

  	
   

  	
  23,427,692

  	
   

  	
  23,427,692

  	
   

  	
  23,427,692

  	
   

  	
  23,427,692

  	
   

  	
  23,427,692

  	
   

  

 

144

 

	
   

  	
   

  	
  (Amounts
  in US$)

  	
   

  
	
  Collateral Vessel

  	
   

  	
  1

  	
   

  	
  2

  	
   

  	
  3

  	
   

  	
  4

  	
   

  	
  5

  	
   

  	
  6

  	
   

  	
  7

  	
   

  	
  8

  	
   

  
	
   

  	
   

  	
  (in $)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Suezmax

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Front Birch

  	
   

  	
  341,602

  	
   

  	
  341,602

  	
   

  	
  341,602

  	
   

  	
  341,602

  	
   

  	
  341,602

  	
   

  	
  341,602

  	
   

  	
  341,602

  	
   

  	
  341,606

  	
   

  
	
  Front Maple

  	
   

  	
  341,602

  	
   

  	
  341,602

  	
   

  	
  341,602

  	
   

  	
  341,602

  	
   

  	
  341,602

  	
   

  	
  341,602

  	
   

  	
  341,602

  	
   

  	
  341,606

  	
   

  
	
  Front Granite

  	
   

  	
  331,842

  	
   

  	
  331,842

  	
   

  	
  331,842

  	
   

  	
  331,842

  	
   

  	
  331,842

  	
   

  	
  331,842

  	
   

  	
  331,842

  	
   

  	
  331,845

  	
   

  
	
  Front Lillo

  	
   

  	
  331,842

  	
   

  	
  331,842

  	
   

  	
  331,842

  	
   

  	
  331,842

  	
   

  	
  331,842

  	
   

  	
  331,842

  	
   

  	
  331,842

  	
   

  	
  331,845

  	
   

  
	
  Front Emperor

  	
   

  	
  346,482

  	
   

  	
  346,482

  	
   

  	
  346,482

  	
   

  	
  346,482

  	
   

  	
  346,482

  	
   

  	
  346,482

  	
   

  	
  346,482

  	
   

  	
  346,487

  	
   

  
	
  Front Sunda

  	
   

  	
  346,482

  	
   

  	
  346,482

  	
   

  	
  346,482

  	
   

  	
  346,482

  	
   

  	
  346,482

  	
   

  	
  346,482

  	
   

  	
  346,482

  	
   

  	
  346,487

  	
   

  
	
  Front Comor

  	
   

  	
  366,002

  	
   

  	
  366,002

  	
   

  	
  366,002

  	
   

  	
  366,002

  	
   

  	
  366,002

  	
   

  	
  366,002

  	
   

  	
  366,002

  	
   

  	
  366,010

  	
   

  
	
  Front Spirit

  	
   

  	
  366,002

  	
   

  	
  366,002

  	
   

  	
  366,002

  	
   

  	
  366,002

  	
   

  	
  366,002

  	
   

  	
  366,002

  	
   

  	
  366,002

  	
   

  	
  366,010

  	
   

  
	
  Front Pride

  	
   

  	
  465,000

  	
   

  	
  465,000

  	
   

  	
  465,000

  	
   

  	
  465,000

  	
   

  	
  465,000

  	
   

  	
  465,000

  	
   

  	
  465,000

  	
   

  	
  7,905,000

  	
   

  
	
  Front Splendour

  	
   

  	
  462,500

  	
   

  	
  462,500

  	
   

  	
  462,500

  	
   

  	
  462,500

  	
   

  	
  462,500

  	
   

  	
  462,500

  	
   

  	
  462,500

  	
   

  	
  11,562,500

  	
   

  
	
  Front Glory

  	
   

  	
  462,500

  	
   

  	
  462,500

  	
   

  	
  462,500

  	
   

  	
  462,500

  	
   

  	
  462,500

  	
   

  	
  462,500

  	
   

  	
  462,500

  	
   

  	
  11,562,500

  	
   

  
	
  Front Ardenne

  	
   

  	
  450,000

  	
   

  	
  450,000

  	
   

  	
  450,000

  	
   

  	
  450,000

  	
   

  	
  450,000

  	
   

  	
  450,000

  	
   

  	
  450,000

  	
   

  	
  14,850,000

  	
   

  
	
  Front Fighter

  	
   

  	
  440,000

  	
   

  	
  440,000

  	
   

  	
  440,000

  	
   

  	
  440,000

  	
   

  	
  440,000

  	
   

  	
  440,000

  	
   

  	
  440,000

  	
   

  	
  16,280,000

  	
   

  
	
  Front Hunter

  	
   

  	
  440,000

  	
   

  	
  440,000

  	
   

  	
  440,000

  	
   

  	
  440,000

  	
   

  	
  440,000

  	
   

  	
  440,000

  	
   

  	
  440,000

  	
   

  	
  16,280,000

  	
   

  
	
  Front Mindanao

  	
   

  	
  440,000

  	
   

  	
  440,000

  	
   

  	
  440,000

  	
   

  	
  440,000

  	
   

  	
  440,000

  	
   

  	
  440,000

  	
   

  	
  440,000

  	
   

  	
  16,280,000

  	
   

  
	
  Front Brabant

  	
   

  	
  440,000

  	
   

  	
  440,000

  	
   

  	
  440,000

  	
   

  	
  440,000

  	
   

  	
  440,000

  	
   

  	
  440,000

  	
   

  	
  440,000

  	
   

  	
  16,280,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  VLCCs

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Front Vanadis

  	
   

  	
  488,979

  	
   

  	
  488,979

  	
   

  	
  488,979

  	
   

  	
  488,982

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Front Sabang

  	
   

  	
  488,979

  	
   

  	
  488,979

  	
   

  	
  488,979

  	
   

  	
  488,982

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Front Highness

  	
   

  	
  427,003

  	
   

  	
  427,003

  	
   

  	
  427,003

  	
   

  	
  427,003

  	
   

  	
  427,003

  	
   

  	
  427,003

  	
   

  	
  427,003

  	
   

  	
  426,998

  	
   

  
	
  Front Lady

  	
   

  	
  427,003

  	
   

  	
  427,003

  	
   

  	
  427,003

  	
   

  	
  427,003

  	
   

  	
  427,003

  	
   

  	
  427,003

  	
   

  	
  427,003

  	
   

  	
  426,998

  	
   

  
	
  Front Lord

  	
   

  	
  427,003

  	
   

  	
  427,003

  	
   

  	
  427,003

  	
   

  	
  427,003

  	
   

  	
  427,003

  	
   

  	
  427,003

  	
   

  	
  427,003

  	
   

  	
  426,998

  	
   

  
	
  Front Duke

  	
   

  	
  448,963

  	
   

  	
  448,963

  	
   

  	
  448,963

  	
   

  	
  448,963

  	
   

  	
  448,963

  	
   

  	
  448,963

  	
   

  	
  448,963

  	
   

  	
  448,960

  	
   

  
	
  Front Ace

  	
   

  	
  463,603

  	
   

  	
  463,603

  	
   

  	
  463,603

  	
   

  	
  463,603

  	
   

  	
  463,603

  	
   

  	
  463,603

  	
   

  	
  463,603

  	
   

  	
  463,603

  	
   

  
	
  Front Duchess

  	
   

  	
  463,603

  	
   

  	
  463,603

  	
   

  	
  463,603

  	
   

  	
  463,603

  	
   

  	
  463,603

  	
   

  	
  463,603

  	
   

  	
  463,603

  	
   

  	
  463,603

  	
   

  
	
  Edinburgh

  	
   

  	
  490,443

  	
   

  	
  490,443

  	
   

  	
  490,443

  	
   

  	
  490,443

  	
   

  	
  490,443

  	
   

  	
  490,443

  	
   

  	
  490,443

  	
   

  	
  490,447

  	
   

  
	
  Navix Astral

  	
   

  	
  519,723

  	
   

  	
  519,723

  	
   

  	
  519,723

  	
   

  	
  519,723

  	
   

  	
  519,723

  	
   

  	
  519,723

  	
   

  	
  519,723

  	
   

  	
  519,731

  	
   

  
	
  New Vista

  	
   

  	
  628,333

  	
   

  	
  628,333

  	
   

  	
  628,333

  	
   

  	
  628,333

  	
   

  	
  628,333

  	
   

  	
  628,333

  	
   

  	
  628,333

  	
   

  	
  23,248,341

  	
   

  

 

145

 

	
   

  	
   

  	
  (Amounts
  in US$)

  	
   

  
	
  Collateral Vessel

  	
   

  	
  1

  	
   

  	
  2

  	
   

  	
  3

  	
   

  	
  4

  	
   

  	
  5

  	
   

  	
  6

  	
   

  	
  7

  	
   

  	
  8

  	
   

  
	
   

  	
   

  	
  (in $)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  New Vanguard

  	
   

  	
  628,333

  	
   

  	
  628,333

  	
   

  	
  628,333

  	
   

  	
  628,333

  	
   

  	
  628,333

  	
   

  	
  628,333

  	
   

  	
  628,333

  	
   

  	
  23,248,341

  	
   

  
	
  Front Commerce

  	
   

  	
  615,625

  	
   

  	
  615,625

  	
   

  	
  615,625

  	
   

  	
  615,625

  	
   

  	
  615,625

  	
   

  	
  615,625

  	
   

  	
  615,625

  	
   

  	
  25,240,625

  	
   

  
	
  Front Comanche

  	
   

  	
  615,625

  	
   

  	
  615,625

  	
   

  	
  615,625

  	
   

  	
  615,625

  	
   

  	
  615,625

  	
   

  	
  615,625

  	
   

  	
  615,625

  	
   

  	
  25,240,625

  	
   

  
	
  Opalia

  	
   

  	
  615,625

  	
   

  	
  615,625

  	
   

  	
  615,625

  	
   

  	
  615,625

  	
   

  	
  615,625

  	
   

  	
  615,625

  	
   

  	
  615,625

  	
   

  	
  25,240,625

  	
   

  
	
  New Circassia

  	
   

  	
  615,625

  	
   

  	
  615,625

  	
   

  	
  615,625

  	
   

  	
  615,625

  	
   

  	
  615,625

  	
   

  	
  615,625

  	
   

  	
  615,625

  	
   

  	
  25,240,625

  	
   

  
	
  Oscilla

  	
   

  	
  601,471

  	
   

  	
  601,471

  	
   

  	
  601,471

  	
   

  	
  601,471

  	
   

  	
  601,471

  	
   

  	
  601,471

  	
   

  	
  601,471

  	
   

  	
  27,066,167

  	
   

  
	
  Ariake

  	
   

  	
  590,278

  	
   

  	
  590,278

  	
   

  	
  590,278

  	
   

  	
  590,278

  	
   

  	
  590,278

  	
   

  	
  590,278

  	
   

  	
  590,278

  	
   

  	
  28,923,606

  	
   

  
	
  Front Stratus

  	
   

  	
  577,632

  	
   

  	
  577,632

  	
   

  	
  577,632

  	
   

  	
  577,632

  	
   

  	
  577,632

  	
   

  	
  577,632

  	
   

  	
  577,632

  	
   

  	
  30,614,464

  	
   

  
	
  Front Page

  	
   

  	
  577,632

  	
   

  	
  577,632

  	
   

  	
  577,632

  	
   

  	
  577,632

  	
   

  	
  577,632

  	
   

  	
  577,632

  	
   

  	
  577,632

  	
   

  	
  30,614,464

  	
   

  
	
  Front Serenade

  	
   

  	
  577,632

  	
   

  	
  577,632

  	
   

  	
  577,632

  	
   

  	
  577,632

  	
   

  	
  577,632

  	
   

  	
  577,632

  	
   

  	
  577,632

  	
   

  	
  30,614,464

  	
   

  
	
  Front Falcon

  	
   

  	
  577,632

  	
   

  	
  577,632

  	
   

  	
  577,632

  	
   

  	
  577,632

  	
   

  	
  577,632

  	
   

  	
  577,632

  	
   

  	
  577,632

  	
   

  	
  30,614,464

  	
   

  
	
  Hakata

  	
   

  	
  577,632

  	
   

  	
  577,632

  	
   

  	
  577,632

  	
   

  	
  577,632

  	
   

  	
  577,632

  	
   

  	
  577,632

  	
   

  	
  577,632

  	
   

  	
  30,614,464

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  OBOs

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Front Climber

  	
   

  	
  590,625

  	
   

  	
  590,625

  	
   

  	
  590,625

  	
   

  	
  590,625

  	
   

  	
  590,625

  	
   

  	
  590,625

  	
   

  	
  590,625

  	
   

  	
  5,315,625

  	
   

  
	
  Front Guider

  	
   

  	
  590,625

  	
   

  	
  590,625

  	
   

  	
  590,625

  	
   

  	
  590,625

  	
   

  	
  590,625

  	
   

  	
  590,625

  	
   

  	
  590,625

  	
   

  	
  5,315,625

  	
   

  
	
  Front Driver

  	
   

  	
  590,625

  	
   

  	
  590,625

  	
   

  	
  590,625

  	
   

  	
  590,625

  	
   

  	
  590,625

  	
   

  	
  590,625

  	
   

  	
  590,625

  	
   

  	
  5,315,625

  	
   

  
	
  Front Leader

  	
   

  	
  590,625

  	
   

  	
  590,625

  	
   

  	
  590,625

  	
   

  	
  590,625

  	
   

  	
  590,625

  	
   

  	
  590,625

  	
   

  	
  590,625

  	
   

  	
  5,315,625

  	
   

  
	
  Front Breaker

  	
   

  	
  590,625

  	
   

  	
  590,625

  	
   

  	
  590,625

  	
   

  	
  590,625

  	
   

  	
  590,625

  	
   

  	
  590,625

  	
   

  	
  590,625

  	
   

  	
  5,315,625

  	
   

  
	
  Front Viewer

  	
   

  	
  552,778

  	
   

  	
  552,778

  	
   

  	
  552,778

  	
   

  	
  552,778

  	
   

  	
  552,778

  	
   

  	
  552,778

  	
   

  	
  552,778

  	
   

  	
  7,186,106

  	
   

  
	
  Front Striver

  	
   

  	
  552,778

  	
   

  	
  552,778

  	
   

  	
  552,778

  	
   

  	
  552,778

  	
   

  	
  552,778

  	
   

  	
  552,778

  	
   

  	
  552,778

  	
   

  	
  7,186,106

  	
   

  
	
  Front Rider

  	
   

  	
  552,778

  	
   

  	
  552,778

  	
   

  	
  552,778

  	
   

  	
  552,778

  	
   

  	
  552,778

  	
   

  	
  552,778

  	
   

  	
  552,778

  	
   

  	
  7,186,106

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  23,427,692

  	
   

  	
  23,427,692

  	
   

  	
  23,427,692

  	
   

  	
  23,427,698

  	
   

  	
  22,449,734

  	
   

  	
  22,449,734

  	
   

  	
  22,449,734

  	
   

  	
  522,096,952

  	
   

  

 

146

 

SIGNATORIES

 

	
  THE BORROWER

  
	
   

  
	
  SHIP FINANCE INTERNATIONAL LIMITED

  
	
   

  
	
  Signed by

  	
  )

  
	
  duly
  authorised pursuant to a)

  	
  )

  
	
  power of
  attorney dated

  	
  )

  
	
  on

  	
  )

  
	
  behalf of
  Ship Finance International

  	
  )

  
	
  Limited

  	
  )

  
	
   

  	
   

  
	
   

  	
   

  
	
  THE BOOKRUNNERS

  
	
   

  
	
  CITIGROUP GLOBAL MARKETS LIMITED

  
	
   

  
	
  By:

  
	
   

  
	
   

  
	
  Address:

  	
  Citigroup
  Global Markets Limited

  
	
   

  	
  33 Canada Square

  
	
   

  	
  London

  
	
   

  	
  E14 5LB

  
	
   

  
	
  Fax:  +44 (0) 20 7986 8278

  
	
   

  
	
  Attention:  Pareejat Singhal

  
	
   

  
	
  Telephone:  +44 (0) 20 7986 7569

  
	
   

  
	
  E-mail:  pareejat.singhal@citigroup.com

  
			

 

147

 

	
  THE MANDATED LEAD ARRANGERS

  
	
   

  
	
  CITIGROUP GLOBAL MARKETS LIMITED

  
	
   

  
	
  By:

  
	
   

  
	
   

  
	
  Address:

  	
  Citigroup
  Global Markets Limited

  
	
   

  	
  33 Canada Square

  
	
   

  	
  London

  
	
   

  	
  E14 5LB

  
	
   

  
	
  Fax:  +44 (0) 20 7986 8278

  
	
   

  
	
  Attention:  Pareejat Singhal

  
	
   

  
	
  Telephone:  +44 (0) 20 7986 7569

  
	
   

  
	
  E-mail:  pareejat.singhal@citigroup.com

  
	
   

  
	
   

  
	
  NORDEA BANK NORGE ASA

  
	
   

  
	
  By:

  
	
   

  
	
   

  
	
  Address:  Middelthuns gate 17, PO Box 1166 Sentrum,
  0107 Oslo, Norway

  
	
   

  
	
  Fax:  +47 22 48 66 68

  
	
   

  
	
  Attention:  Linda Christin Hoff

  
	
   

  
	
  Telephone:  +47 22 
  48 63 72 (+47 22 48 50 00)

  
	
   

  
	
  E-mail:
  linda.christin.hoff@nordea.com

  

 

148

 

	
  FORTIS BANK
  (NEDERLAND) N.V.

  
	
   

  
	
  By:

  
	
   

  
	
   

  
	
  Address:

  	
  Haaton VII’s
  gt 10,

  
	
   

  	
  N0161 Oslo

  
	
   

  	
   

  
	
  Fax: +47 23 11 49 40

  
	
   

  
	
  Attention:
  Francis Birkeland

  
	
   

  
	
  Telephone:
  +47 23 11 49 50

  
	
   

  
	
   

  
	
  CRÉDIT
  AGRICOLE INDOSUEZ

  
	
   

  
	
  By:

  
	
   

  
	
   

  
	
  Address:  9 Quai Du President Paul Doumer, 92920
  Paris La Defense Cedex, France

  
	
   

  
	
  Fax:  +33 141 89 1934

  
	
   

  
	
  Attention:  Loan Administration Dept – Sylvie
  Godet-Couery

  
	
   

  
	
  Telephone:
  +33 141 89 1249

  
	
   

  
	
  Email:  sylvie.godetcouery@ca-indosuez.com

  

 

149

 

	
  SKANDINAVISKA
  ENSKILDA BANKEN AB (PUBL.)

  
	
   

  
	
  By:

  
	
   

  
	
   

  
	
  Address:  RB 8 FCA

  
	
   

  
	
  Fax:  +46 8 611 0384

  
	
   

  
	
  Attention:  Niclas Lundqvist

  
	
   

  
	
  Telephone:  +46 8 763 8648

  
	
   

  
	
  Email:  niclas.lundqvist@seb.se

  
	
   

  
	
   

  
	
  DNB NOR BANK
  ASA

  
	
   

  
	
  By:

  
	
   

  
	
   

  
	
  Address:  0021 Oslo, Norway

  
	
   

  
	
  Fax:  +47 22 48 2894

  
	
   

  
	
  Attention:  Solveig Nuland Knoff

  
	
   

  
	
  Telephone:  +47 22 94 9663

  
	
   

  
	
  Email:  solveig.knoff@dnbnor.no

  

 

150

 

	
  HSH NORDBANK
  AG

  
	
   

  
	
  By:

  
	
   

  
	
   

  
	
  Address:  Gerhart-Hauptmann-Platz 50, 20095 Hamburg,
  Germany

  
	
   

  
	
  Fax:  +49 40 3333 34269

  
	
   

  
	
  Attention:  Irena Franke

  
	
   

  
	
  Telephone:
  +49 40 3333 12041

  
	
   

  
	
  Email:  irena.franke@hsh-nordbank.com

  
	
   

  
	
   

  
	
  SCOTIABANK
  EUROPE PLC

  
	
   

  
	
  By:

  
	
   

  
	
   

  
	
  Address:  Scotia House, 33 Finsbury Square, London,
  EC2A 1BB

  
	
   

  
	
  Fax:  00 44 0 207 454 9019

  
	
   

  
	
  Attention:  Lee Bowden/Diann Thomas

  
	
   

  
	
  Telephone:  00 44 (0) 207 826 5635/5631

  
	
   

  
	
  Email: 
  lee_bowden@scotiacapital.com/diann.thomas@scotiacapital.com

  

 

151

 

	
  SWEDBANK
  (FÖRENINGSSPARBANKEN AB (PUBL))

  
	
   

  
	
  By:

  
	
   

  
	
   

  
	
  Address:  Swedbank Shipping E7, SE-10534 Stockholm

  
	
   

  
	
  Fax:  +46 8 7007980

  
	
   

  
	
  Attention:  Nina Kytta/Richard Lonnqvist

  
	
   

  
	
  Telephone:  +46 8 5859 1785/+46 8 5859 1405

  
	
   

  
	
  Email:  nina.kytta@swedbank.com/richard.lonnqvist@swedbank.com

  
	
   

  
	
   

  
	
  THE GOVERNOR
  AND COMPANY OF THE BANK OF SCOTLAND

  
	
   

  
	
  By:

  
	
   

  
	
   

  
	
  Address:  Bank of Scotland, Corporate Banking,
  Marine Finance, 11 Earl Grey Street, Edinburgh, EH3 9BN.

  
	
   

  
	
  Fax:  +44 131 659 0387

  
	
   

  
	
  Attention:  John Lowe

  
	
   

  
	
  Telephone:  +44 131 659 0320

  
	
   

  
	
  Email:  john_lowe@bankofscotland.co.uk

  

 

152

 

	
  ING BANK
  N.V. (NORWAY)

  
	
   

  
	
  By:

  
	
   

  
	
   

  
	
  Address:  ING Bank N.V. PO Box 13, loc.code DP
  02.10.87, 3000 DA Rotterdam, The Netherlands

  
	
   

  
	
  Fax:  +31 10 444 6791

  
	
   

  
	
  Attention:  Miss Ingrid van der Hoek

  
	
   

  
	
  Telephone:  +31 10 444 6843

  
	
   

  
	
  Email:  Ingrid.van.der.Hoek@mail.ing.nl

  
	
   

  
	
   

  
	
  DEUTSCHE
  BANK AG IN HAMBURG

  
	
   

  
	
  By:

  
	
   

  
	
   

  
	
  By:

  
	
   

  
	
   

  
	
  Address:  Brandstwiete 1, D- 20457 Hamburg, Germany

  
	
   

  
	
  Fax:  +49 40 3701 4649

  
	
   

  
	
  Attention:  Carola-Marea Rotch

  
	
   

  
	
  Telephone:  +49 40 3701 4334

  
	
   

  
	
  Email:  carola-marea.rotch@db.com

  

 

153

 

	
  SCHIFFSHYPOTHEKENBANK
  ZU LÜBECK AG

  
	
   

  
	
  By:

  
	
   

  
	
   

  
	
  By:

  
	
   

  
	
   

  
	
  Address:  Brandstwiete 1, D- 20457 Hamburg, Germany

  
	
   

  
	
  Fax:  +49 40 3701 4649

  
	
   

  
	
  Attention:  Caola-Marea Rotch

  
	
   

  
	
  Telephone:  +49 40 3701 4334

  
	
   

  
	
  Email:  carika-marea.rotch@db.com

  

 

154

 

	
  THE ADMINISTRATIVE AGENT

  
	
   

  
	
  NORDEA BANK NORGE ASA

  
	
   

  
	
  By:

  
	
   

  
	
   

  
	
  Address:  Middelthuns gate 17, PO Box 1166 Sentrum,
  0107 Oslo, Norway

  
	
   

  
	
  Fax:  +47 22 48 66 68

  
	
   

  
	
  Attention:  Linda Christin Hoff

  
	
   

  
	
  Telephone:  +47 22 
  48 63 72 (+47 22 48 50 00)

  
	
   

  
	
  E-mail: linda.christin.hoff@nordea.com

  
	
   

  
	
   

  
	
  THE SECURITY TRUSTEE

  
	
   

  
	
  NORDEA BANK NORGE ASA

  
	
   

  
	
  By:

  
	
   

  
	
   

  
	
  Address:  Middelthuns gate 17, PO Box 1166 Sentrum,
  0107 Oslo, Norway

  
	
   

  
	
  Fax:  +47 22 48 66 68

  
	
   

  
	
  Attention:  Linda Christin Hoff

  
	
   

  
	
  Telephone:  +47 22 
  48 63 72 (+47 22 48 50 00)

  
	
   

  
	
  E-mail:
  linda.christin.hoff @nordea.com

  

 

155

 

	
  THE ARRANGERS

  
	
   

  
	
  DANISH SHIP
  FINANCE (DANMARKS SKIBSKREDITFOND)

  
	
   

  
	
  By:

  
	
   

  
	
   

  
	
  Address:
  Danish Ship Finance, Sankt Annae Plads 3, 1250 Copenhagen K, Denmark

  
	
   

  
	
  Fax:  +45 33 33 96 66

  
	
   

  
	
  Attention:  Loan Administration

  
	
   

  
	
  Telephone:  +45 33 33 93 33

  
	
   

  
	
  Email:
  Loanadmin@shipfinance.dk

  
	
   

  
	
   

  
	
  DEUTSCHE
  SCHIFFSBANK AKTIENGESELLSCHAFT

  
	
   

  
	
  By:

  
	
   

  
	
   

  
	
  Address:  Domshof 17, D-28195 Bremen

  
	
   

  
	
  Fax:  +49 421 3235 39

  
	
   

  
	
  Attention:  Mrs Tanja Laverer

  
	
   

  
	
  Telephone:  +49 421 3609 290

  
	
   

  
	
  Email:  tanja.laverer@schiffsbank.com

  

 

156

 

	
  NIB CAPITAL
  BANK N.V.

  
	
   

  
	
  By:

  
	
   

  
	
   

  
	
  Address:  PO Box 380

  
	
   

  
	
  Fax:  +31 70 342 5366

  
	
   

  
	
  Attention:  Ron Jonk

  
	
   

  
	
  Telephone:  +31 70 342 5024

  
	
   

  
	
  Email:  maurice.wymans@nibcapital.com/ron.jonk@nibcapital.com

  
	
   

  
	
   

  
	
  VEREINS-UND
  WESTBANK AG

  
	
   

  
	
  By:

  
	
   

  
	
   

  
	
  Address:  Alter Wall 22, D-20457, Hamburg

  
	
   

  
	
  Fax:  +49 40 3692 3060

  
	
   

  
	
  Attention:  Ms Dorte Ziebarth

  
	
   

  
	
  Telephone:  +49 40 3692 2663

  
	
   

  
	
  Email:  dorte.ziebarth@vuw.de

  

 

157

 

	
  THE ORIGINAL GUARANTORS

  
	
   

  
	
  MADEIRA
  INTERNATIONAL CORP.

  
	
   

  
	
  By:

  
	
   

  
	
   

  
	
   

  
	
  LANGKAWI
  SHIPPING LTD.

  
	
   

  
	
  By:

  
	
   

  
	
   

  
	
   

  
	
  SIBU
  SHIPPING LTD.

  
	
   

  
	
  By:

  
	
   

  
	
   

  
	
   

  
	
  GRANITE
  SHIPPING LTD.

  
	
   

  
	
  By:

  
	
   

  
	
   

  
	
   

  
	
  PUERTO
  REINOSA SHIPPING CO. S.A.

  
	
   

  
	
  By:

  
	
   

  
	
   

  
	
   

  
	
  FRONT TUJUH
  PTE LTD.

  
	
   

  
	
  By:

  
	
   

  
	
   

  

 

158

 

	
  SOUTHWEST
  TANKERS INC.

  
	
   

  
	
  By:

  
	
   

  
	
   

  
	
   

  
	
  WEST TANKERS
  INC.

  
	
   

  
	
  By:

  
	
   

  
	
   

  
	
   

  
	
  FOURWAYS
  MARINE LIMITED

  
	
   

  
	
  By:

  
	
   

  
	
   

  
	
   

  
	
  FRONT PRIDE
  SHIPPING INC.

  
	
   

  
	
  By:

  
	
   

  
	
   

  
	
   

  
	
  FRONT
  SPLENDOUR SHIPPING INC.

  
	
   

  
	
  By:

  
	
   

  
	
   

  
	
   

  
	
  FRONT GLORY
  SHIPPING INC.

  
	
   

  
	
  By:

  
	
   

  
	
   

  

 

159

 

	
  FRONT
  ARDENNE INC.

  
	
   

  
	
  By:

  
	
   

  
	
   

  
	
   

  
	
  RAKIS
  MARITIME S.A.

  
	
   

  
	
  By:

  
	
   

  
	
   

  
	
   

  
	
  PATRIO
  SHIPPING LTD.

  
	
   

  
	
  By:

  
	
   

  
	
   

  
	
   

  
	
  BOLZANO PTE.
  LTD.

  
	
   

  
	
  By:

  
	
   

  
	
   

  
	
   

  
	
  FRONT
  BRABANT INC.

  
	
   

  
	
  By:

  
	
   

  
	
   

  
	
   

  
	
  CIREBON
  SHIPPING PTE. LTD.

  
	
   

  
	
  By:

  
	
   

  
	
   

  
	
   

  

 

160

 

	
  FOX MARITIME
  PTE. LTD.

  
	
   

  
	
  By:

  
	
   

  
	
   

  
	
   

  
	
  FRONT EMPAT
  PTE. LTD.

  
	
   

  
	
  By:

  
	
   

  
	
   

  
	
   

  
	
  FRONT LIMA
  PTE. LTD.

  
	
   

  
	
  By:

  
	
   

  
	
   

  
	
   

  
	
  FRONT ENAM
  PTE. LTD.

  
	
   

  
	
  By:

  
	
   

  
	
   

  
	
   

  
	
  FRONT TIGA
  PTE. LTD.

  
	
   

  
	
  By:

  
	
   

  
	
   

  
	
   

  
	
  SEA ACE
  CORP.

  
	
   

  
	
  By:

  
	
   

  
	
   

  
	
   

  

 

161

 

	
  FRONT DUA
  PTE. LTD.

  
	
   

  
	
  By:

  
	
   

  
	
   

  
	
   

  
	
  EDINBURGH
  NAVIGATION S.A.

  
	
   

  
	
  By:

  
	
   

  
	
   

  
	
   

  
	
  GOLDEN
  BAYSHORE SHIPPING CORPORATION

  
	
   

  
	
  By:

  
	
   

  
	
   

  
	
   

  
	
  GOLDEN SOUND
  CORP.

  
	
   

  
	
  By:

  
	
   

  
	
   

  
	
   

  
	
  GOLDEN
  SEAWAY CORP.

  
	
   

  
	
  By:

  
	
   

  
	
   

  
	
   

  
	
  GOLDEN FJORD
  CORP.

  
	
   

  
	
  By:

  
	
   

  
	
   

  
	
   

  

 

162

 

	
  GOLDEN
  ESTUARY CORP.

  
	
   

  
	
  By:

  
	
   

  
	
   

  
	
   

  
	
  GOLDEN
  CURRENT LIMITED

  
	
   

  
	
  By:

  
	
   

  
	
  Its duly
  authorised attorney

  
	
   

  
	
   

  
	
  GOLDEN TIDE
  CORP.

  
	
   

  
	
  By:

  
	
   

  
	
   

  
	
   

  
	
  OSCILLA
  SHIPPING LIMITED

  
	
   

  
	
  By:

  
	
   

  
	
  Its duly
  authorised attorney

  
	
   

  
	
   

  
	
  ARIAKE
  TRANSPORT CORP.

  
	
   

  
	
  By:

  
	
   

  
	
   

  
	
   

  
	
  FRONT
  STRATUS INC.

  
	
   

  
	
  By:

  
	
   

  
	
   

  
	
   

  

 

163

 

	
  FRONT SAGA
  INC.

  
	
   

  
	
  By:

  
	
   

  
	
   

  
	
   

  
	
  FRONT
  SERENADE INC.

  
	
   

  
	
  By:

  
	
   

  
	
   

  
	
   

  
	
  FRONT FALCON
  CORP.

  
	
   

  
	
  By:

  
	
   

  
	
   

  
	
   

  
	
  HITACHI HULL
  4983 LTD.

  
	
   

  
	
  By:

  
	
   

  
	
   

  
	
   

  
	
  FRONT LAPAN
  PTE. LTD.

  
	
   

  
	
  By:

  
	
   

  
	
   

  
	
   

  
	
  TRANSCORP
  PTE. LTD.

  
	
   

  
	
  By:

  
	
   

  
	
   

  

 

164

 

	
  BONFIELD
  SHIPPING LIMITED

  
	
   

  
	
  By:

  
	
   

  
	
   

  
	
   

  
	
  FRONT
  SEMBILAN PTE. LTD.

  
	
   

  
	
  By:

  
	
   

  
	
   

  
	
   

  
	
  KATONG
  INVESTMENTS LIMITED

  
	
   

  
	
  By:

  
	
   

  
	
   

  
	
   

  
	
  ASPINALL
  PTE. LTD.

  
	
   

  
	
  By:

  
	
   

  
	
   

  
	
   

  
	
  RETTIE PTE.
  LTD.

  
	
   

  
	
  By:

  
	
   

  
	
   

  
	
   

  
	
  BLIZANA PTE.
  LTD.

  
	
   

  
	
  By:

  
	
   

  
	
   

  

 

165

 

	
  THE LENDERS

  
	
   

  
	
  CRÉDIT
  AGRICOLE INDOSUEZ

  
	
   

  
	
  By:

  
	
   

  
	
   

  
	
  FORTIS BANK
  (NEDERLAND) N.V.

  
	
   

  
	
  By:

  
	
   

  
	
   

  
	
  SKANDINAVISKA
  ENSKILDA BANKEN AB (PUBL.)

  
	
   

  
	
  By:

  
	
   

  
	
   

  
	
  NORDEA BANK
  NORGE ASA

  
	
   

  
	
  By:

  
	
   

  
	
   

  
	
  CITIBANK,
  N.A.

  
	
   

  
	
  By:

  
	
   

  
	
   

  
	
  DNB NOR BANK
  ASA

  
	
   

  
	
  By:

  
	
   

  
	
   

  
	
  HSH NORDBANK
  AG

  
	
   

  
	
  By:

  
	
   

  
	
   

  
	
  SCOTIABANK
  EUROPE PLC

  
	
   

  
	
  By:

  
	
   

  

 

166

 

	
  SWEDBANK
  (FÖRENINGSSPARBANKEN AB (PUBL))

  
	
   

  
	
  By:

  
	
   

  
	
   

  
	
  THE GOVERNOR
  AND COMPANY OF THE BANK OF SCOTLAND

  
	
   

  
	
  By:

  
	
   

  
	
   

  
	
  ING BANK
  N.V. (NORWAY)

  
	
   

  
	
  By:

  
	
   

  
	
   

  
	
  DEUTSCHE
  BANK AG IN HAMBURG

  
	
   

  
	
  By:

  
	
   

  
	
   

  
	
  By:

  
	
   

  
	
  SCHIFFSHYPOTHEKENBANK
  ZU LÜBECK AG

  
	
   

  
	
  By:

  
	
   

  
	
   

  
	
  By:

  
	
   

  
	
   

  
	
  DANISH SHIP
  FINANCE (DANMARKS SKIBSKREDITFOND)

  
	
   

  
	
  By:

  
	
   

  
	
   

  
	
  DEUTSCHE
  SCHIFFSBANK AKTIENGESELLSCHAFT

  
	
   

  
	
  By:

  
	
   

  

 

167

 

	
  NIB CAPITAL
  BANK N.V.

  
	
   

  
	
  By:

  
	
   

  
	
   

  
	
  VEREINS-UND
  WESTBANK AG

  
	
   

  
	
  By:

  

 

168

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00067-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00067-of-00352.parquet"}]]