Document:

WORKING
      CAPITAL FACILITY AGREEMENT

                	
                  EHLERMANN

                
	 
      	
                  RINDFLEISCH

                
	
                  DATED
      6-12, 2010

                	
                  GADOW

                
	 
      	
                  RECHTSANWALTE

                
	 
      	
                  PARTNERSCHAFT

                
	
                  12
      A.H.T.S Vessels

                	 
      
	
                  built
      by Fincantieri Cantieri Navali S.p.A.

                	
                  BALLINDAMM
      26, 20095 HAMBURG

                
	 
      	 
      
	 
      	
                  TELEFON
      +49 40 37 48 14 – 0

                
	 
      	
                  TELEFAX
      +49 40 37 48 14 – 30

                
	 
      	
                  INTERNET
      WWW.ERG-LEGAL.COM

                

        

      

    

    
      

    

    
      NORDDEUTSCHE
LANDESBANK GIROZENTRALE

    

    
      as
Lender

    

    
      

    

    
      and

    

    
      

    

    
      THE
TWELVE LIMITED PARTNERSHIPS

    

    
      AS
MORE CLOSELY DESCRIBED HEREIN

    

    
      as
jointly and severally liable Borrowers

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    THIS
WORKING CAPITAL FACILITY AGREEMENT (THE "AGREEMENT") IS MADE THIS 6th DAY OF
DECEMBER, 2010 between

    

    
      	
              (1)

            	
              NORDDEUTSCHE
      LANDESBANK GIROZENTRALE, a banking institution organized and existing
      under the laws of the Federal Republic of Germany, having its registered
      offices at Friedrichswall 10, 30159 Hannover, Germany, (sometimes
      "NORD/LB" or the "Lender", as the case may be),
  and

            

    

    

    on the
one part,

    

    and

    

    
      	
              (2)

            	
              ATL
      OFFSHORE GMBH & CO. MS "JUIST" KG, (the "Borrower
  1")

            

    

    

    
      	
              (3)

            	
              ATL
      OFFSHORE GMBH & CO. MS "NORDERNEY" KG, (the "Borrower
    2")

            

    

    

    
      	
              (4)

            	
              ATL
      OFFSHORE GMBH & CO. "ISLE OF BALTRUM" KG, (the "Borrower
      3")

            

    

    

    
      	
              (5)

            	
              ATL
      OFFSHORE GMBH & CO. "ISLE OF LANGEOOG" KG, (the "Borrower
      4")

            

    

    

    
      	
              (6)

            	
              ATL
      OFFSHORE GMBH & CO. "ISLE OF AMRUM" KG, (the "Borrower
    5")

            

    

    

    
      	
              (7)

            	
              ATL
      OFFSHORE GMBH & CO. "ISLE OF SYLT" KG, (the "Borrower
    6")

            

    

    

    
      	
              (8)

            	
              ATL
      OFFSHORE GMBH & CO. "ISLE OF WANGEROOGE" KG, (the "Borrower
      7")

            

    

    

    
      	
              (9)

            	
              ATL
      OFFSHORE GMBH & CO. "ISLE OF NEUWERK" KG, (the "Borrower
      8")

            

    

    

    
      	
              (10)

            	
              ATL
      OFFSHORE GMBH & CO. "ISLE OF USEDOM" KG, (the "Borrower
      9")

            

    

    

    
      	
              (11)

            	
              ATL
      OFFSHORE GMBH & CO. "ISLE OF FEHMARN" KG, (the "Borrower
      10")

            

    

    

    
      	
              (12)

            	
              ATL
      OFFSHORE GMBH & CO. "ISLE OF MEMMERT" KG, (the "Borrower
      11")

            

    

    

    
      	
              (13)

            	
              ATL
      OFFSHORE GMBH & CO. "ISLE OF MELLUM" KG, (the "Borrower
      12")

            

    

    

    each of
them a limited partnership incorporated and existing under the laws of the
Federal Republic of Germany having its registered office at Neue Str. 24, 26789
Leer, Germany (collectively the "Borrowers", and each one of them a "Borrower"),
as jointly and severally liable borrowers on the other part.

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    

    PREAMBLE

    

    
      	
              I.

            	
              Each
      of the Borrowers is the owner of one (1) A.H.T.S. newbuilding type Moss
      424, 16,000 bhp constructed by FINCANTIERI CANTIERI NAVALI ITALIANI S.P.A.
      of Via Cipro, 11, 16129 Genoa, Italy (the "Builder"), bearing the
      Builder's hull nos. 6160, 6161, 6162, 6163, 6168, 6169, 6171, 6172, 6173,
      6174, 6175 and 6176.

            

    

     

    
      	
              II.

            	
              Pursuant
      to the terms and conditions of a loan agreement dated 19th
      December, 2008 (as amended by an addendum no. 1 dated 17th
      September, 2010 and as from time to time further amended, supplemented or
      varied the "Existing Loan Agreement"), made between the Lender as lender
      and the Borrowers as jointly and severally liable borrowers, the Lender
      has agreed to grant to the Borrowers loans in the aggregate maximum amount
      of Euros four hundred twenty million five hundred seventy thousand (EUR
      420,570,000.00) (the "Loan") (i) for the part-financing of the
      construction price of twelve A.H.T.S vessels referred to above and further
      described herein and built or to be built by the Builder, (ii) for the
      issuing of certain payment guarantees to the Builder and (iii) to enable
      the Borrowers to postpone the repayment of part of the
    Loan.

            

    

    

    
      	
              III.

            	
              Upon
      request of the Borrowers and due to the Borrowers facing liquidity
      shortfalls, the Lender is ready under the terms and conditions of this
      Agreement, to grant to the Borrowers as jointly and severally liable
      borrowers the facility as more closely described herein for the purposes
      of increasing the Borrowers' working
capital.

            

    

    

    NOW
THEREFORE the parties hereto agree as follows:

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    CONTENTS

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  
                                                    
                                                      
                                                        
                                                          
                                                            
                                                              
                                                                
                                                                  
                                                                    
                                                                      
                                                                        
                                                                          
                                                                            
                                                                              
                                                                                
                                                                                  
                                                                                    
                                                                                      
                                                                                        
                                                                                          	
                                                                                                  1

                                                                                                	 
      	
                                                                                                  DEFINITIONS

                                                                                                	 
      	
                                                                                                  4

                                                                                                
	 	 	 	 	 
	
                                                                                                  2

                                                                                                	 
      	
                                                                                                  PURPOSE
      OF THE FACILITY

                                                                                                	 
      	
                                                                                                  10

                                                                                                
	 	 	 	 	 
	
                                                                                                  3

                                                                                                	 
      	
                                                                                                  DRAWDOWN
      OF THE TRANCHES

                                                                                                	 
      	
                                                                                                  10

                                                                                                
	 	 	 	 	 
	
                                                                                                  4

                                                                                                	 
      	
                                                                                                  BORROWERS'
      LIABILITY

                                                                                                	 
      	
                                                                                                  10

                                                                                                
	 	 	 	 	 
	
                                                                                                  5

                                                                                                	 
      	
                                                                                                  AVAILABILITY

                                                                                                	 
      	
                                                                                                  11

                                                                                                
	 	 	 	 	 
	
                                                                                                  6

                                                                                                	 
      	
                                                                                                  FEES
      AND COMMISSIONS

                                                                                                	 
      	
                                                                                                  11

                                                                                                
	 	 	 	 	 
	
                                                                                                  7

                                                                                                	 
      	
                                                                                                  INTEREST

                                                                                                	 
      	
                                                                                                  12

                                                                                                
	 	 	 	 	 
	
                                                                                                  8

                                                                                                	 
      	
                                                                                                  REPAYMENT

                                                                                                	 
      	
                                                                                                  12

                                                                                                
	 	 	 	 	 
	
                                                                                                  9

                                                                                                	 
      	
                                                                                                  VOLUNTARY
      AND MANDATORY PREPAYMENT

                                                                                                	 
      	
                                                                                                  13

                                                                                                
	 	 	 	 	 
	
                                                                                                  10

                                                                                                	 
      	
                                                                                                  PAYMENTS

                                                                                                	 
      	
                                                                                                  14

                                                                                                
	 	 	 	 	 
	
                                                                                                  11

                                                                                                	 
      	
                                                                                                  SUBSTITUTE
      RATE AND SUBSTITUTE BASIS

                                                                                                	 
      	
                                                                                                  15

                                                                                                
	 	 	 	 	 
	
                                                                                                  12

                                                                                                	 
      	
                                                                                                  SECURITY

                                                                                                	 
      	
                                                                                                  17

                                                                                                
	 	 	 	 	 
	
                                                                                                  13

                                                                                                	 
      	
                                                                                                  INSURANCES

                                                                                                	 
      	
                                                                                                  17

                                                                                                
	 	 	 	 	 
	
                                                                                                  14

                                                                                                	 
      	
                                                                                                  ENVIRONMENTAL
      MATTERS

                                                                                                	 
      	
                                                                                                  20

                                                                                                
	 	 	 	 	 
	
                                                                                                  15

                                                                                                	 
      	
                                                                                                  CHANGE
      OF CIRCUMSTANCES

                                                                                                	 
      	
                                                                                                  21

                                                                                                
	 	 	 	 	 
	
                                                                                                  16

                                                                                                	 
      	
                                                                                                  BASEL
      II

                                                                                                	 
      	
                                                                                                  23

                                                                                                
	 	 	 	 	 
	
                                                                                                  17

                                                                                                	 
      	
                                                                                                  REPRESENTATIONS
      AND WARRANTIES

                                                                                                	 
      	
                                                                                                  23

                                                                                                
	 	 	 	 	 
	
                                                                                                  18

                                                                                                	 
      	
                                                                                                  ASSET
      PROTECTION

                                                                                                	 
      	
                                                                                                  26

                                                                                                
	 	 	 	 	 
	
                                                                                                  19

                                                                                                	 
      	
                                                                                                  UNDERTAKINGS

                                                                                                	 
      	
                                                                                                  26

                                                                                                
	 	 	 	 	 
	
                                                                                                  20

                                                                                                	 
      	
                                                                                                  BAREBOAT
      REGISTRATION

                                                                                                	 
      	
                                                                                                  32

                                                                                                
	 	 	 	 	 
	
                                                                                                  21

                                                                                                	 
      	
                                                                                                  ACCOUNTS

                                                                                                	 
      	
                                                                                                  32

                                                                                                
	 	 	 	 	 
	
                                                                                                  22

                                                                                                	 
      	
                                                                                                  EVENTS
      OF DEFAULT

                                                                                                	 
      	
                                                                                                  33

                                                                                                
	 	 	 	 	 
	
                                                                                                  23

                                                                                                	 
      	
                                                                                                  ASSIGNMENT,
      TRANSFER AND SYNDICATION

                                                                                                	 
      	
                                                                                                  35

                                                                                                
	 	 	 	 	 
	
                                                                                                  24

                                                                                                	 
      	
                                                                                                  APPLICABLE
      LAW, JURISDICTION

                                                                                                	 
      	
                                                                                                  36

                                                                                                
	 	 	 	 	 
	
                                                                                                  25

                                                                                                	 
      	
                                                                                                  JUDGEMENT
      CURRENCY

                                                                                                	 
      	
                                                                                                  36

                                                                                                
	 	 	 	 	 
	
                                                                                                  26

                                                                                                	 
      	
                                                                                                  WAIVERS

                                                                                                	 
      	
                                                                                                  36

                                                                                                
	 	 	 	 	 
	
                                                                                                  27

                                                                                                	 
      	
                                                                                                  INVALIDITY

                                                                                                	 
      	
                                                                                                  37

                                                                                                
	 	 	 	 	 
	
                                                                                                  28

                                                                                                	 
      	
                                                                                                  SURVIVAL

                                                                                                	 
      	
                                                                                                  37

                                                                                                
	 	 	 	 	 
	
                                                                                                  29

                                                                                                	 
      	
                                                                                                  EFFECTUATION

                                                                                                	 
      	
                                                                                                  37

                                                                                                
	 	 	 	 	 
	
                                                                                                  30

                                                                                                	 
      	
                                                                                                  LANGUAGE

                                                                                                	 
      	
                                                                                                  37

                                                                                                
	 	 	 	 	 
	
                                                                                                  31

                                                                                                	 
      	
                                                                                                  COSTS
      AND EXPENSES

                                                                                                	 
      	
                                                                                                  37

                                                                                                
	 	 	 	 	 
	
                                                                                                  32

                                                                                                	 
      	
                                                                                                  NOTICES
      AND TIME

                                                                                                	 
      	
                                                                                                  38

                                                                                                
	 	 	 	 	 
	
                                                                                                  33

                                                                                                	 
      	
                                                                                                  GENERAL
      CONDITIONS

                                                                                                	 
      	
                                                                                                  39

                                                                                                
	 	 	 	 	 
	
                                                                                                  34

                                                                                                	 
      	
                                                                                                  EXHIBITS

                                                                                                	 
      	
                                                                                                  39

                                                                                                
	 	 	 	 	 
	
                                                                                                  35

                                                                                                	 
      	
                                                                                                  COUNTERPARTS

                                                                                                	 
      	
                                                                                                  39

                                                                                                
	 	 	 	 	 
	
                                                                                                  35

                                                                                                	 
      	
                                                                                                  DECLARATION
      ON MONEY LAUNDERING

                                                                                                	 
      	
                                                                                                  39

                                                                                                
	 	 	 	 	 
	
                                                                                                  SCHEDULES
      AND EXHIBITS

                                                                                                	
                                                                                                    

                                                                                                	
                                                                                                  42

                                                                                                

                                                                                        

                                                                                      

                                                                                    

                                                                                  

                                                                                

                                                                              

                                                                            

                                                                          

                                                                        

                                                                      

                                                                    

                                                                  

                                                                

                                                              

                                                            

                                                          

                                                        

                                                      

                                                    

                                                  

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    
      
        	
                1

              	
                DEFINITIONS

              

      

    

    

    
      
        	
                1.1

              	
                The
      terms used in this Agreement shall be defined as
  follows:

              

      

    

    

    
      	
               
      

            	
              Acknowledgement
      and

            

    

    
      	
               
      

            	
              Submission

            	
              The
      abstract acknowledgement of debt, including the deed of granting of
      hypothec and the submission to immediate enforcement by the Borrowers,
      dated 19th
      February, 2009 made by the Borrowers and the General Partner in favour of
      the Lender and evidenced in the notarial deed of even date under the
      register of deeds 89/2009 of the notary public Mr. Jan de
      Vries

            

    

    

    
      	
               
      

            	
              Assured(s)

            	
              Any
      person or party other than the Borrowers which is from time to time shown
      in any insurance policy, insurance slip, cover note, certificate of entry
      or other insurance document whatsoever as an assured, co-assured or as a
      party that in whatever capacity may at any time have a right or claim in
      relation to the insurances of any of the
Vessels

            

    

    

    
      	
               
      

            	
              Banking
      Day

            	
              A
      day on which dealings in Euros are carried out in the relevant Interbank
      Market and on which banks are open for business in Frankfurt, Hannover,
      London and New York

            

    

    

    
      	
               
      

            	
              Bareboat
      Charterer

            	
              The
      bareboat charterer of any of the Vessels, being in each single case a
      fully owned and controlled subsidiary of the Relevant
    Borrower

            

    

    

    
      	
               
      

            	
              Borrower
      (1) - (12)

            	
              The
      limited partnerships as set out in Schedule 1 attached
    hereto

            

    

    

    
      	
               
      

            	
              Borrowers

            	
              Collectively
      Borrower (1) - (12) and in the singular form any of
  them

            

    

    

    
      	
               
      

            	
              Builder

            	
              FINCANTIERI
      CANTIERI NAVALI ITALIANI S.P.A. of Genoa,
Italy

            

    

    

    
      	
            	
              Building
      Contract (1) - (12)

            	
              The
      building contracts between the Builder and the General Partner, as set out
      in Schedule 1 attached hereto

            

    

    

    
      	
               
      

            	
              Building
      Contracts

            	
              Collectively
      the Building Contract (1) - (12) and in the singular form any of
      them

            

    

    

    
      	
               
      

            	
              Charter

            	
              A
      time charter contract concluded between any of the Borrowers as owner and
      the Charterer as charterer, providing (i) for a duration of not less than
      twelve (12) Months or an equivalent substitute as more closely described
      in Clause 19.2.1.2 and (ii) for a daily charter hire satisfactory to the
      Lender, and furthermore being concluded on terms and conditions
      satisfactory to the Lender

            

    

    

    
      	
               
      

            	
              Charterer

            	
              Any
      well reputed charterer satisfactory to the
  Lender

            

    

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    

    
      	
               
      

            	
              Classification
      Society

            	
              American
      Bureau of Shipping or any other first class classification society being a
      member to IACS and being accepted by the
Lender

            

    

    

    
      	
               
      

            	
              Commitment

            	
              The
      commitment of the Lender to grant the
Facility

            

    

    

    
      Commitment

    

    
      	
               
      

            	
              Termination
      Date

            	
              30th
      September, 2012 or any earlier date on which the Commitment
      expires

            

    

    

    
      	
               
      

            	
              Deeds
      of Assignment

            	
              The
      deeds of assignment made or to be made, as the case may be, between the
      General Partner, the Builder and the Borrowers, pursuant to the terms of
      which the General Partner has transferred the Building Contracts to and in
      favour of the Borrowers

            

    

    

    
      	
               
      

            	
              Default
      Rate

            	
              The
      rate of interest payable for overdue payments as stipulated in Clause
      10.4

            

    

    

    
      	
               
      

            	
              Drawdown

            	
              The
      advance of any Tranche by the Lender to the Borrowers
      hereunder

            

    

    

    
      	
               
      

            	
              Drawdown
      Date

            	
              The
      date upon which any Drawdown is made
hereunder

            

    

    

    
      	
               
      

            	
              Earnings
      Accounts

            	
              The
      accounts opened and held with the Lender in the name of the Relevant
      Borrowers to which the Relevant Vessel's Earnings shall be paid during the
      Security Period

            

    

    

    
      	
               
      

            	
              Earnings

            	
              In
      relation to each of the Vessels, all moneys whatsoever due or to become
      due or for the account of the Borrowers at any time until the Outstanding
      Indebtedness has been repaid in full to Lender arising out of the use of
      or operation of the Relevant Vessel including (but not limited to) all
      freight, hire and passage moneys resulting from the contracts, requisition
      compensation remuneration for salvage, towage services, demurrage and
      detention moneys and damages for breach (or payments for variation or
      termination) of the Charter and any other charter party or other contract
      for the employment of the Relevant Vessel, or any claims against an
      employment pool for payment of the relevant pool participation, and all
      sums recoverable under the insurances in respect of the loss of income out
      of any employment of the Relevant Vessel and includes, if and whenever the
      Relevant Vessel is employed on terms whereby any or all such moneys as
      aforesaid are pooled or shared with any other person or entity, that
      proportion of the net receipts of the relevant pooling or sharing
      arrangement which is attributable to the Relevant
  Vessel

            

    

    

    
      	
               
      

            	
              Equity
      Provider 1

            	
              SURESH
      CAPITAL MARITIME PARTNERS GERMANY GMBH, Leer,
  Germany

            

    

    

    
      	
               
      

            	
              Equity
      Provider 2

            	
              Together
      Reederei Hartmann and the Manager and the Pool Manager or any of them or
      an affiliated company of Reederei Hartmann accepted by the
      Lender

            

    

    

    
      	
               
      

            	
              Equity
      Provider 3

            	
              SURESH
      CAPITAL MARITIME PARTNERS I-B GERMANY GMBH, Leer,
  Germany

            

    

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    

    
      	
               
      

            	
              EUR

            	
              Euro
      or such other currency as shall be at the relevant time the legal tender
      for the payment of private and public debts in the states participating in
      the European Monetary Union

            

    

    

    
      	
               
      

            	
              EURIBOR

            	
              The
      Interbank Offered Rate for EUR in Frankfurt, i.e. the rate per annum
      determined by the Lender (rounded up to the nearest sixteenth (1/16) of
      one percent) at which deposits in EUR are offered on a Quotation Date at
      or about 11.00 hours a.m. (Frankfurt time) in the European interbank
      market in sums equal to and for periods of time similar to the Interest
      Period agreed upon for the Facility to be
  funded,

            

    

    

    (a) as
published in Reuters Monitor Money Service on page “EURIBOR01” (or another page
replacing EURIBOR01), or

    

    (b) in
case no such rate as mentioned under (a) is published, the rate at which the
Lender, in accordance with its normal practice, is offered such deposits by
first class banks in the European interbank market

    

    
      	
               
      

            	
              Event
      of Default

            	
              Any
      event listed in Clause 22

            

    

    

    
      	
            	
              Existing
      Loan Agreement

            	
              The
      loan agreement dated 19th
      December, 2008 (as amended by an addendum no. 1 dated 17th
      September, 2010 and as from time to time further amended, supplemented or
      varied) made between the Lender as lender and the Borrowers as jointly and
      severally liable borrowers for the granting of loans in the aggregate
      maximum amount of Euros four hundred twenty million five hundred seventy
      thousand (EUR 420,570,000.00) (i) for the part-financing of the
      construction price of the Vessels, (ii) for the issuing of certain payment
      guarantees to the Builder and (iii) to enable the Borrowers to postpone
      the repayment of part of the loan

            

    

    

    
      	
               
      

            	
              Fair
      Market Value

            	
              The
      fair market value of the Relevant Vessel as determined in accordance with
      Clause 18.1 and 18.2

            

    

    

    
      	
               
      

            	
              Facility

            	
              The
      working capital facility of up to Euros ten million (EUR
      10,000,000.00)

            

    

    

    
      	
               
      

            	
              Final
      Maturity Date

            	
              30th
      December, 2012

            

    

    

    
      	
               
      

            	
              Financial
      Statements

            	
              The
      annual audited financial statements including the annual reports, balance
      sheets and profit and loss statements including cash flow statements,
      presenting the relevant company's financial condition, audited by
      chartered accountants acceptable to the Lender in accordance with
      generally accepted international accounting standards
      or  accounting standards according to the German Commercial Code
      (Handelsgesetzbuch),
      consistently applied

            

    

    

    
      	
               
      

            	
              Fixed
      Funding Costs

            	
              The
      Lender’s costs of funding the Relevant Tranche or any portion thereof in
      excess of EURIBOR, to be determined as more closely described in Clause
      7.3

            

    

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    

    
      	
               
      

            	
              General
      Conditions

            	
              NORD/LB’s
      General Business Conditions in their German Version ("Allgemeine
      Geschäftsbedingungen") and its General Loan Conditions ("Allgemeine
      Darlehensbedingungen"), together with English translations thereof,
      in the form attached hereto as Exhibit
5

            

    

    

    
      	
               
      

            	
              General
      Partner

            	
              ATL
      OFFSHORE GMBH of Leer, Germany

            

    

    

    
      	
               
      

            	
              Hypothec

            	
              The
      ship hypothec over the Vessels in the form of a fleet hypothec ("Gesamtschiffshypothek")
      under the laws of the Federal Republic of Germany registered over the
      Vessels in the Lender's favour securing the Acknowledgement and
      Submission

            

    

    

    
      	
               
      

            	
              Illicit
      Origin

            	
              Any
      origin which is illicit or fraudulent, including without limitation, drug
      trafficking, corruption, organised criminal activities, terrorism, money
      laundering or fraud

            

    

    

    
      	
               
      

            	
              Insurances

            	
              The
      insurances to be taken out by the Relevant Borrowers for the
      Vessels

            

    

    

    
      	
               
      

            	
              Insurance
      Value

            	
              The
      full market value of a Vessel as determined pursuant to Clause 18.1,
      however, not less than one hundred and twenty (120) percent of the
      aggregate of (i) the total amount outstanding under the relevant tranche
      in relation to the Relevant Vessel under the Existing Loan Agreement, and
      (ii) Euro one Million (EUR 1,000,000.00), increased by the nominal value
      of any other lien or encumbrance over the Relevant Vessel having priority
      over the Lender's rights under the
Hypothec

            

    

    

    
      	
               
      

            	
              Interest
      Payment

            	
              The
      amount payable for interest at an Interest Payment
  Date

            

    

    

    
      	
               
      

            	
              Interest
      Payment Date

            	
              The
      last day of an Interest Period and the days coinciding with each Reduction
      Date falling into such Interest Period, as more closely described in
      Clause 7.7

            

    

    

    
      	
               
      

            	
              Interest
      Period

            	
              Periods
      of three (3) Months or any such other period as agreed by the Lender, the
      first such Interest Period commencing on the Relevant Drawdown Date of the
      Relevant Tranche and any further Interest Period on the expiry of any
      immediately preceding relevant Interest Period in respect of such Tranche
      and all Interest Periods running on the Final Maturity Date shall
      terminate on the Final Maturity
Date

            

    

    

    
      	
               
      

            	
              Interest
      Rate

            	
              The
      annual rate of interest which is conclusively certified by the Lender to
      be the aggregate of the EURIBOR, the Fixed Funding Costs and the Margin,
      as further stipulated in Clause 7

            

    

    

    
      	
               
      

            	
              ISM
      Code

            	
              The
      International Management Code for the Safe Operation of Ships and for
      Pollution Prevention adopted by the International Maritime
      Organisation

            

    

    

    
      	
               
      

            	
              Facility
      Amount

            	
              The
      aggregate maximum facility amount of Euros ten million (EUR
      10,000,000.00)

            

    

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    

    
      	
               
      

            	
              Loss
      of Hire

            	
              The
      insurance of deprived income (charter hire, earnings, freight, profits,
      passage money) as a consequence of an insured peril under the hull &
      machinery or war risks insurance subject to ABS 1/10/83 Wording -
      Including War, the Norwegian Marine Insurance Plan of 1996 - Chapter 16,
      or other equivalent conditions as any of the aforesaid is updated and/or
      amended from time to time

            

    

    

    
      	
               
      

            	
              Manager

            	
              HARTMANN
      OFFSHORE GMBH & CO. KG, Leer, Germany, or any other first class,
      internationally well reputed manager accepted by the
  Lender

            

    

    

    
      	
               
      

            	
              Margin

            	
              The
      margin of four point five (4.5) per cent per annum, and upon new margins
      having been assessed and accepted as provided in Clause 16, such new
      margin

            

    

    

    
      	
               
      

            	
              Material
      Adverse Effect

            	
              An
      effect being materially harmful on the Borrowers' ability to repay the
      Facility

            

    

    

    
      	
               
      

            	
              Month(s)

            	
              Period
      calculated from any specified day to and including the day numerically
      corresponding to such specified day (or, if such specified day is the last
      day or if there shall be no day numerically corresponding to such
      specified day, the last day) in the relevant subsequent calendar
      month

            

    

    

    
      	
               
      

            	
              New
      Interest Date

            	
              The
      first day of an Interest Period

            

    

    

    
      	
               
      

            	
              NORD/LB

            	
              NORDDEUTSCHE
      LANDESBANK GIROZENTRALE, a banking institution organized and existing
      under the laws of the Federal Republic of Germany, having its registered
      offices at Friedrichswall 10, 30159 Hannover,
  Germany

            

    

    

    
      	
               
      

            	
              Obligor(s)

            	
              Collectively
      the Borrowers, Reederei Hartmann and the Manager, and in the singular form
      any one of them, as the context may
require

            

    

    

    
      	
            	
              Outstanding
      Indebtedness

            	
              The
      aggregate of all amounts that may from time to time become payable by the
      Borrowers to the Lender and all other obligations of the Borrowers
      pursuant to the terms of this Agreement and the Security
      Documents

            

    

    

    
      	
               
      

            	
              Pool
      Agreement

            	
              The
      pool agreement made or to be made, as the case may be, between the
      Borrowers and the Pool Manager on terms and conditions acceptable to the
      Lender

            

    

    

    
      	
               
      

            	
              Pool
      Manager

            	
              United
      Offshore Support GmbH & Co. KG, Leer, Germany or any other pool
      manager of first class reputation being acceptable to the
      Lender

            

    

    

    
      	
               
      

            	
              Prohibited
      Payment

            	
              (a)
      any offer, gift, payment, promise to pay, commission, fee, loan or other
      consideration which would constitute bribery or an improper gift or
      payment under, or a breach of, any law of any Relevant Jurisdiction;
      or

            

    

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    

    (b) any
offer, gift, payment, promise to pay, commission, fee, loan or other
consideration which would or might constitute bribery within the OECD Convention
on Combating Bribery of Foreign Public Officials in International Business
Transactions of 17 December 1997

    

    
      	
               
      

            	
              Quotation
      Date

            	
              The
      date two (2) Banking Days prior to the Relevant Drawdown Date or to the
      beginning of any Interest Period

            

    

    

    
      	
               
      

            	
              Reduction
      Date

            	
              The
      31st
      March, 2012, the 30th
      June, 2012, and the 30th
      September, 2012 on which the Facility shall be reduced as set forth in
      Clause 3.3

            

    

    

    
      	
               
      

            	
              Reederei
      Hartmann

            	
              REEDEREI
      HARTMANN GMBH & CO. KG of Leer,
Germany

            

    

    

    
      	
               
      

            	
              Relevant
      Borrower

            	
              Any
      of the Borrowers, as the context may
require

            

    

    

    
      	
            	
              Relevant
      Building Contract

            	
              Any
      of the Building Contracts, as the context may
  require

            

    

    

    
      	
            	
              Relevant
      Earnings Account

            	
              Any
      of the Earnings Accounts, as the context may
  require

            

    

    

    
      	
            	
              Relevant
      Fair Market Value

            	
              The
      Fair Market Value of any of the Vessels, as the context may
      require

            

    

    

    
      	
               
      

            	
              Relevant
      Obligor

            	
              Any
      of the Obligors, as the context may
require

            

    

    

    
      	
               
      

            	
              Relevant
      Vessel

            	
              Any
      of the Vessels, as the context may
require

            

    

    

    
      Relevant
Vessel's

    

    
      	
               
      

            	
              Facility
      Ratio

            	
              In
      respect of any Vessel on any date the amount determined in accordance with
      the following formula:

            

    

    

    
      	
               
      

            	
              Relevant Fair Market
      Value * 100

            

    

    
      	
               
      

            	
                      
      Aggregate Fleet Value

            

    

    

    
      	
               
      

            	
              where:
      'Aggregate Fleet Value' being the aggregate of the Fair Market Values of
      all Vessels

            

    

    

    
      	
               
      

            	
              Security
      Documents

            	
              The
      documents to be executed pursuant to Clause 12 together with any other
      document from time to time executed as security for the Facility or any
      part thereof

            

    

    

    
      	
               
      

            	
              Security
      Period

            	
              The
      period commencing on the first Drawdown Date and ending on the day on
      which all obligations of the Borrowers arising pursuant to the terms of
      this Agreement and the Security Documents have been paid and performed in
      full

            

    

    

    
      	
               
      

            	
              Ships
      Registry

            	
              The
      register of sea-going vessels held with the lower court (Amtsgericht) of Emden,
      Germany

            

    

    

    
      	
               
      

            	
              Taxes

            	
              Any
      tax, levies, duties, charges, fees, deductions and withholdings levied or
      imposed by any government or other taxing authority whatsoever other than
      taxes on the income of the
Lender

            

    

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    

    
      	
               
      

            	
              Total
      Loss

            	
              The
      actual or constructive or compromised or arranged or agreed total loss of
      any of the Vessels and the requisition for title or other compulsory
      acquisition of any of the Vessels other than requisition for hire; and the
      capture, seizure, arrest, restraint, detainment, detention or confiscation
      of any of the Vessels by any government or by a person acting or
      purporting to act on behalf of any government which is not released or
      discharged within ninety (90) days

            

    

    

    
      	
               
      

            	
              Tranches

            	
              Any
      portion of the Facility drawn by the Borrowers of not less than Euro two
      million five hundred thousand (EUR 2,500,000.00) and in the singular any
      of them

            

    

    

    
      	
               
      

            	
              Transfer
      Certificate

            	
              The
      transfer certificate substantially in the form attached hereto as Exhibit
      4

            

    

    

    
      	
               
      

            	
              Vessels

            	
              Together
      the Vessels (1) - (12), and in the singular form any one of
      them.

            

    

    

    
      	
              1.2

            	
              Clause
      headings are inserted for convenience only and shall not affect the
      construction of this Agreement and unless otherwise specified, all
      references to "Clauses" are to clauses of this
  Agreement.

            

    

    

    
      	
              1.3

            	
              Unless
      the context otherwise requires, words denoting the singular number shall
      include the plural and vice versa.

            

    

    

    
      	
              1.4

            	
              References
      to persons include corporate bodies and unincorporated
    bodies.

            

    

    

    
      	
              1.5

            	
              References
      to assets include property, rights and assets of every
      description.

            

    

    

    
      	
              1.6

            	
              References
      to any document are to be construed as references to such document as
      amended or supplemented from time to
time.

            

    

    

    
      	
              1.7

            	
              References
      to any enactment include re-enactments, amendments and extensions
      thereof.

            

    

    

    
      
        	
                2

              	
                PURPOSE
      OF THE FACILITY

              

      

    

    

    The
Facility shall exclusively be used by the Borrowers to strengthen their working
capital.

    

    
      
        	
                3

              	
                DRAWDOWN
      OF THE TRANCHES

              

      

    

    

    
      
        	
                3.1

              	
                Availability.
      Upon satisfaction of the conditions set out in Clause 5, the Lender shall
      make available to the Borrowers the Facility up to the maximum amount of
      the Facility during the period from the date hereof up to and including
      the Commitment Termination Date and at the times and in the manner herein
      set forth.

              

      

    

    

    
      
        	
                3.2

              	
                The
      Facility shall be drawn in one (1) amount or in multiple portions in
      Tranches, provided, however, that each Tranche shall be not less than Euro
      two million five hundred thousand (EUR
  2,500,000.00).

              

      

    

    

    
      
        	
                3.3

              	
                The
      maximum amount of the Facility is automatically reduced on each Reduction
      Date by Euro one million two hundred fifty thousand (EUR
      1,250,000.00).

              

      

    

    

    
      
        	
                3.4

              	
                The
      Lender shall make available, and the Borrowers shall repay, the Facility
      in Euros.

              

      

    

    

    
      
        	
                4

              	
                BORROWERS'
      LIABILITY

              

      

    

    

    Joint and several
Liability. The Borrowers shall be jointly and severally liable (gesamtschuldnerisch) for any
and all amounts that may from time to time be owed actually or contingently to
the Lender pursuant to or in connection with this Agreement and the Security
Documents.

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    

    
      
        	
                5

              	
                AVAILABILITY

              

      

    

    

    
      
        	
                5.1

              	
                Availability of
      Tranches. Any of the Tranches shall be made available in accordance
      with Clauses 2, 3 and 4 and upon the Borrowers’ compliance with the terms
      and conditions as set out in this Clause
5.

              

      

    

    

    
      
        	
                5.2

              	
                Drawdown
      Notice. Not less than (3) Banking Days prior to any Drawdown of any
      of Tranches, the Borrowers shall execute and deliver to the Lender a
      drawdown notice in the form of Exhibit 1 attached
  hereto.

              

      

    

    

    
      
        	
                5.3

              	
                Conditions
      Precedent. It is a condition precedent to any Drawdown that prior
      to or at least simultaneously with the relevant
  Drawdown

              

      

    

    

    
      	
              5.3.1

            	
              the
      representation and warranties contained in Clause 17 shall be true
      and correct;

            

    

    

    
      	
              5.3.2

            	
              none
      of the circumstances specified in Clause 11 is
      subsisting;

            

    

    

    
      	
              5.3.3

            	
              no
      Event of Default has occurred and is continuing under this Agreement and
      under the Existing Loan Agreement;

            

    

    

    
      	
              5.3.4

            	
              the
      following conditions shall be met to the satisfaction of the
      Lender:

            

    

    

    
      	
              5.3.4.1

            	
              the
      Lender has received payment of the fees and expenses specified in
      Clause 6 to the extent due and
payable;

            

    

    

    
      	
              5.3.4.2

            	
              the
      Lender has received the documents and evidence as more closely stipulated
      in the list of conditions precedent attached hereto as
      Schedule 2.

            

    

    

    
      
        	
                6

              	
                FEES
      AND COMMISSIONS

              

      

    

    

    
      
        	
                6.1

              	
                Arrangement
      Fee. A non-recurring arrangement fee of two point five (2.5)
      percent of the maximum amount of the Facility due and payable on the
      earlier of (i) the first Drawdown of any Tranche hereunder or (ii) 30th
      December, 2010.

              

      

    

    

    
      
        	
                6.2

              	
                Commitment Fee.
      The Borrowers shall pay to the Lender a commitment fee of one (1) percent
      p.a. calculated on the undrawn amount of the Facility and calculated on
      the actual number of days elapsed in a year on a 360-day basis and for the
      last time on the earlier of (i) the Commitment Termination Date or (ii)
      the date on which the Commitment ceases for any other
    reason.

              

      

    

    

    The
commitment fee shall be due and payable quarter-annually from the date of this
Agreement in arrears, for the first time on 30th
December 2010.

    

    
      
        	
                6.3

              	
                Prepayment Fee.
      The Borrowers shall pay to the Lender a prepayment fee of (i) Euro sixty
      thousand (EUR 60,000.00) for a prepayment of the Facility in full on or
      before 30th
      June, 2011, (ii) Euro forty thousand (EUR 40,000.00) for a prepayment of
      the Facility in full between 1st
      July, 2011 and 31st
      December, 2011, and (iii) Euro twenty thousand (EUR 20,000.00) for a
      prepayment of the Facility in full between 1st
      January, 2012 and 30th
      June, 2012. In case of a partial prepayment of the Facility, the
      prepayment fee shall be reduced by the ratio of (i) the part of the
      Facility to be prepaid to (ii) the total outstanding
    Facility.

              

      

    

    

    The prepayment fee shall be
due and payable on or before the date of the relevant
prepayment.

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    

    
      
        	
                7

              	
                INTEREST

              

      

    

    

    
      	
              7.1

            	
              Obligation to pay
      Interest. The Borrowers hereby undertake to pay to the Lender from
      the day the first Drawdown is made interest on the principal amount of the
      Facility outstanding from time to time and on any accrued and unpaid
      interest (both before and after judgement) (provided such interest on
      accrued and unpaid interest is allowed under applicable law) on the
      Facility at any time outstanding.

            

    

    

    
      
        	
                7.2

              	
                Interest Rates.
      The Borrowers shall pay to the Lender interest on the Tranches outstanding
      at the Interest Rate.

              

      

    

    

    
      
        	
                7.3

              	
                Fixed Funding Costs.
      The amount of the Fixed Funding Costs will be notified by the
      Lender to the Borrowers latest within two (2) Banking Days prior to the
      drawdown of any Tranche under this Agreement. Following the Lender’s
      notification, the Borrowers shall advise the Lender in writing latest on
      the relevant Drawdown Date whether they agree to the amount of the Fixed
      Funding Costs. The Fixed Funding Costs shall be binding on the parties
      until the Final Maturity Date. If the Borrowers notify the Lender that
      they do not agree to the amount of the Fixed Funding Costs, or do not
      notify the Lender within the time limit referred to above, this Agreement
      shall be deemed terminated as of receipt by the Lender of the Borrowers'
      notice or the expiry of the aforesaid time limit, as the case may be, and
      the Borrowers shall forthwith repay any Outstanding Indebtedness, if any,
      on the last of the then prevailing Interest
  Period.

              

      

    

    

    
      	
              7.4

            	
              Notice of Interest
      Rates by Lender. As soon as practicable the Lender shall give the
      Borrowers notice of the Interest Rates being applicable from time to
      time.

            

    

    

    
      	
              7.5

            	
              Method of
      Calculating. Interest on the Relevant Tranche shall be calculated
      on the basis of the actual number of days elapsed and a three hundred
      sixty (360) days year.

            

    

    

    
      	
              7.6

            	
              Payment
      Intervals. Interest shall always be due and payable in arrears on
      the Interest Payment Date, provided, however,
  that

            

    

    

    
      	
              7.6.1

            	
              if
      an Interest Period would otherwise end on a day which is not a Banking
      Day, that Interest Period shall be extended to the next succeeding day
      which is a Banking Day, unless the result of such extension would be to
      carry such Interest Period over into another calendar Month, in which
      event such Interest Period shall end on the preceding Banking
      Day;

            

    

    

    
      	
              7.6.2

            	
              any
      Interest Period which would otherwise extend beyond the Final Maturity
      Date shall be of such duration that it shall end on that
    date.

            

    

    

    
      	
              7.7

            	
              Whenever
      pursuant to the provisions of Clause 8 hereof the Borrowers become
      obligated to repay a Tranche in full or in part on a Reduction Date, the
      Borrowers shall in respect of such Tranche be deemed to have nominated an
      Interest Period of such duration so as to ensure that the same shall
      expire on the due date for repayment by the Borrowers of such
      Tranche.

            

    

    

    
      	
              7.8

            	
              Duration of Interest
      Periods. Any Interest Period shall be of a duration of three (3)
      Months.

            

    

    

    
      	
              7.9

            	
              Synchronization of
      Interest Periods. The Lender shall have the right to synchronize
      Interest Periods and the Borrowers shall fully co-operate with the Lender
      to this effect.

            

    

    

    
      
        	
                8

              	
                REPAYMENT

              

      

    

    

    
      
        	
                8.1

              	
                The
      Borrowers shall repay the Facility to the Lender latest on the Final
      Maturity Date.

              

      

    

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    

    
      
        	
                8.2

              	
                The
      Borrowers shall repay those amounts on each Reduction Date so that the
      maximum amount of the Facility is in line with the provisions of Clause
      3.3, each repayment to be accompanied by a notice by the Borrower stating
      which Tranches are being repaid in whole or in
  part.

              

      

    

    

    
      
        	
                9

              	
                VOLUNTARY
      AND MANDATORY PREPAYMENT

              

      

    

    

    
      
        	
                9.1

              	
                Prepayment. The
      Borrowers may prepay any of the Tranches in whole or in whole multiples of
      Euros two hundred fifty thousand (EUR 250,000.00). Any such prepayment
      shall only be permitted provided the Lender shall have received not less
      than ten (10) Banking Days prior to the proposed date of the prepayment
      irrevocable written notice of the amount to be prepaid and of the Tranche
      to which such prepayment shall be
applied.

              

      

    

    

    
      
        	
                9.2

              	
                Re-Borrowing.
      The Borrowers may re-draw any sum prepaid, provided the condition
      precedent for such new Drawdown are fulfilled in accordance with Clause
      5.3. and all other terms and conditions set forth herein are complied
      with.

              

      

    

    

    
      
        	
                9.3

              	
                Prepayment
      Notice. Any notice of prepayment given by the Borrowers shall be
      irrevocable and the Borrowers shall be bound to prepay in accordance with
      such notice, such notice to specify which Tranche is to be prepaid in
      whole or in part

              

      

    

    

    
      
        	
                9.4

              	
                Mandatory Prepayment
      in case of sale or Total Loss or private equity placement. If any
      of the Vessels is sold or declared a Total Loss the Borrowers shall
      provide the Lender with an evaluation of the Fair Market Values of all
      Vessels, such evaluation being not older than three (3) Months and being
      prepared by a broker or expert accepted by the Lender, unless the Lender
      has evaluated the Vessels' Fair Market Value and such evaluation is not
      older than three (3) Months.

              

      

    

    

    
      	
              9.4.1

            	
              In
      case of a sale or Total Loss of any of the Vessels the Borrowers shall
      make a mandatory prepayment in accordance with this
  Clause.

            

    

    

    
      	
              9.4.1.1

            	
              In
      case of the sale or Total Loss of a Vessel the Borrowers shall prepay an
      amount equalling the Relevant Vessel's Facility Ratio of the Facility
      Amount.

            

    

    

    
      	
              9.4.1.2

            	
              In
      case of a Total Loss the prepayment shall be made upon receipt of the
      insurance proceeds in respect of the Total Loss, however not later than
      forty five (45) days after the occurrence of the Total Loss, unless either
      an Event of Default has occurred or the loans to fair market values ratio
      requirements as set out in clause 18.2 of the Existing Loan Agreement are
      not met in which case the prepayment shall be made within thirty (30) days
      after the Total Loss has been declared or upon receipt of the insurance
      proceeds in respect of the Total Loss, whichever is the
      earlier.

            

    

    

    
      	
              9.4.1.3

            	
              In
      case of a sale of a Vessel the prepayment shall be made on or before the
      delivery of the Relevant Vessel to the
  purchasers.

            

    

    

    
      	
              9.4.2

            	
              In
      case that in addition to the amount of Euro eighteen million one hundred
      forty thousand (EUR 18,140,000.00) to be provided to the Borrowers in the
      aggregate in form of equity capital or shareholder loans and in addition
      to any short term loans (with a term of 364 days or less) provided to the
      Borrowers for the sole purpose of covering any liquidity shortfall, (i) an
      increase of the equity of any of the Borrowers by way of capital
      contribution, debt-to-equity swap, private or public placement or
      otherwise occurs or (ii) one or more shareholder loans are provided to the
      Borrowers or (iii) any other form of liquidity supply is provided to the
      Borrowers, the Borrowers shall prepay an amount equalling such additional
      received equity, shareholder loan or other liquidity supply, as the case
      may be, on the date such equity, shareholder loans, or liquidity supply,
      as the case may be, is received by the
  Borrowers.

            

    

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

    

    Any
payments pursuant to this Clause 9.4 shall only be due and payable hereunder
upon full payment of (i) in case of a sale or Total Loss, the amounts due and
payable under the Existing Loan Agreement in connection with such sale or Total
Loss, and (ii) the ongoing guarantee fee pursuant to clause 10.9.9 of the
Existing Loan Agreement, in accordance with the terms and conditions of the
Existing Loan Agreement.

    

    Any
mandatory prepayments pursuant to this Clause 9.4 shall reduce the maximum
amount of the Facility irrespective of and in addition to any reduction pursuant
to Clause 3.3.

    

    
      	
              9.5

            	
              Breakage Costs.
      In case the Lender receives an obligatory or voluntary prepayment for any
      reason whatsoever on a day other than the last day of the then current
      Interest Period relating to such amount, the Borrowers shall pay to the
      Lender on request the amount required to compensate the Lender in full for
      any loss, premium or penalty incurred by them in respect of the
      liquidation or re-employment of funds borrowed for the purpose of
      maintaining the amount prepaid.

            

    

    

    
      
        	
                10

              	
                PAYMENTS

              

      

    

    

    
      	
              10.1

            	
              Payment to the
      Borrowers. The Borrowers shall specify to the Lender at least three
      (3) Banking Days prior to each date on which a payment is to be made to
      the Borrowers hereunder the account to which such payment shall be
      made.

            

    

    

    
      	
              10.2

            	
              Payments by the
      Borrowers. All payments to be made by the Borrowers under this
      Agreement or any of the Exhibits shall be made in freely transferable and
      convertible funds in the relevant currency in which the relevant Tranche
      is denominated by that time not later than 11.00 a.m. Hannover time on the
      date upon which the relevant payment is due to the Lender to the account
      the Lender nominates by written notice to the
  Borrowers.

            

    

    

    
      	
              10.3

            	
              Payments on non
      Banking Days. In the event that the date on which a payment is due
      to be made hereunder is not a Banking Day, such date of payment shall be
      the next following Banking Day unless it would thereby fall in a new
      calendar Month in which event it shall be the immediately preceding
      Banking Day unless the Borrowers and the Lender shall agree
      otherwise.

            

    

    

    
      	
              10.4

            	
              Default
      Interest. In the event that any payment to be made hereunder by the
      Borrowers to the Lender is not received on the due date therefore,
      interest will be charged by the Lender from the due date until the date
      that payment is received at a rate which is equal to the aggregate
      of

            

    

    

    
      	
              10.4.1

            	
              One-week
      EURIBOR applying on the due date for payment and on each succeeding
      Banking Day until payment in full of the amount due is received by the
      Lender, provided that if the Lender determines that such default may be
      reasonably expected to continue unremedied for a period exceeding one (1)
      week then the Lender may require by notice to the Borrowers that the
      funding cost shall be determined by reference to the EURIBOR for periods
      of such duration (not exceeding three (3) Months) as the Lender may
      designate,

            

    

    

    
      	
              10.4.2

            	
              the
      Margin,

            

    

    

    
      	
              10.4.3

            	
              the
      Fixed Funding Cost, and

            

    

    

    
      	
              10.4.4

            	
              a
      default funding charge of two (2) per cent per
  annum.

            

    

    

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    Interest
charged under this sub-clause shall be payable on demand and unless so paid
shall be added to the defaulted amount at the end of each Month following the
due date for payment of such amount. Nothing herein shall limit the right of the
Lender to claim from the Borrowers further compensation for damages suffered
(Schadenersatz) as a
result of the Borrowers having failed to pay any amount in respect of interest
payable by them under this Agreement or any of the Security Documents on the due
date for such payment. However, the Borrowers shall retain the right to prove
that the damages suffered by the Lender were less or that the Lender have not
suffered any damage.

    

    
      	
              10.5

            	
              No Set-Off by
      Borrowers. All payments to be made by the Borrowers hereunder shall
      be made without set-off or
counterclaim.

            

    

    

    
      	
              10.6

            	
              Clear of Taxes.
      All payments to be made by the Borrowers hereunder shall be made free and
      clear of and without deduction for or on account of any present or future
      Taxes of any nature now or hereafter imposed unless the Borrowers are
      compelled by law to make payment subject to any such Taxes. In that event
      the Borrowers shall (i) pay to the Lender such additional amounts as may
      be necessary to ensure that the Lender receive a net amount equal to that
      which it would have received had such payment not been made subject to any
      Taxes, and (ii) deliver to the Lender within ten (10) days of any
      request by it an official receipt in respect of the payment of any Taxes
      so deducted.

            

    

    

    
      	
              10.7

            	
              Compensation of
      Lender. If any amount of principal is, for any reason whatsoever
      prepaid on a day other than the last day of the then current Interest
      Period relating to such amount the Borrowers shall pay to the Lender on
      request such amount as may be necessary to compensate the Lender for any
      loss or premium or penalty incurred by them in respect of the liquidation
      or re-employment of funds borrowed for the purpose of maintaining the
      amount prepaid.

            

    

    

    
      	
              10.8

            	
              Interest Calculation
      Method. Interest and any other payments under this Clause of an
      annual nature shall accrue from day to day and be calculated on the basis
      of the actual number of days elapsed and a year of three hundred sixty
      (360) days.

            

    

    

    
      	
              10.9

            	
              Priority of Payments,
      Waterfall. All moneys (unless otherwise stipulated by this
      Agreement) received by the Lender under this Agreement shall be applied in
      the following order:

            

    

    

    
      	
              10.9.1

            	
              in
      satisfaction of all costs and expenses of the Lender then accrued
      hereunder and unpaid,

            

    

    

    
      	
              10.9.2

            	
              in
      satisfaction of any accrued interest then due on the
    Facility;

            

    

    

    
      	
              10.9.3

            	
              in
      satisfaction of any principal of the Facility then
      outstanding;

            

    

    

    
      	
              10.9.4

            	
              the
      balance (if any) will be released to the
  Borrowers.

            

    

    

    
      	
              10.10

            	
              Pro rata
      Application. If several of the claims mentioned above have the same
      ranking, the monies received shall be applied pro
  rata.

            

    

    

    
      
        	
                11

              	
                SUBSTITUTE
      RATE AND SUBSTITUTE BASIS

              

      

    

    

    
      	
              11.1

            	
              Change in
      Circumstances. If at any time prior to the commencement of any
      Interest Period the Lender shall have determined (which determination
      shall save in case of manifest error be conclusive and binding on the
      Borrowers) that:

            

    

    

    
      	
              11.1.1

            	
              by
      reason of circumstances affecting the Interbank Markets adequate and fair
      means do not exist for ascertaining the interbank rate applicable to the
      Facility or any part thereof during such Interest Period,
    or

            

    

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    
      	
              11.1.2

            	
              deposits
      in an amount or amounts required for the Facility or the relevant part
      thereof for the duration of such Interest Period are not available to the
      Lender in the Interbank Markets in sufficient amounts in the ordinary
      course of business, or

            

    

    

    
      	
              11.1.3

            	
              the
      cost of the Lender for funding the Facility or any part thereof in the
      Interbank Markets would be higher than the aggregate of EURIBOR, and
      twenty five (25) percent of the Margin for the relevant Interest
      Period,

            

    

    

    the
Lender in each case shall as soon as practicable give notice of such
determination to the Borrowers and the provisions of the following paragraphs
shall apply.

    

    
      	
              11.2

            	
              Substitute
      Rate. In case no means exist for ascertaining the interbank rate as
      per Clause 11.1.1, the Lender, during a period of ten (10) Banking Days
      from the date of any such notice given pursuant to Clause 11.1, shall
      certify to the Borrowers (a) an alternative method of fixing the rate of
      interest (the "Substitute Rate") which shall reflect (i) the cost to the
      Lender of funding the Facility or any part thereof from the Interbank
      Markets or other sources, as the case may be, and (ii) the Margin, and (b)
      the cost of establishing alternative Interest Periods, if applicable. In
      establishing the Substitute Rate the Lender shall have regard to
      reasonable wishes of the Borrowers and shall use to the extent it is
      reasonably possible its best efforts to reduce its costs of funding the
      Facility.

            

    

    

    The
Borrowers shall notify the Lender in writing within five (5) Banking Days of the
receipt of such certificate from the Lender whether or not they accept such
Substitute Rate. If the Borrowers so accept in writing, or do not notify the
Lender whether or not they accept as aforesaid, such Substitute Rate shall apply
in accordance with its terms. In case the Borrowers notify the Lender in writing
that they do not accept such Substitute Rate, then the Borrowers and the Lender
shall enter into negotiations (for a period of not more than thirty days) with a
view to agreeing on the Substitute Rate for determining the rate of interest.
Should the Borrowers and the Lender not agree on the Substitute Rate, then the
Borrowers shall prepay to the Lender the Facility or any part thereof to which
this Article applies on the next Interest Payment Date in the currency the
Facility or any part thereof was funded together with interest thereon at the
Interest Rate applicable to the immediately preceding Interest
Period.

    

    
      	
              11.3

            	
              Review of
      Circumstances (Substitute Rate). As long as the Substitute Rate
      applies, the Lender, in consultation with the Borrowers, shall in
      sufficient time prior to the end of any Interest Period review whether the
      circumstances are such that a interbank rate may again be
      determined.

            

    

    

    
      	
              11.4

            	
              Substitute
      Basis. In case deposits in EUR are not available to the Lender as
      per Clause 11.1.2 above, the Lender, during a period of ten (10) Banking
      Days from the date of any such notice pursuant to Clause 11.1, shall
      certify to the Borrowers an alternative basis (the "Substitute Basis") for
      maintaining the Facility or any part thereof. Such Substitute Basis may
      include an alternative method of fixing the rate of interest (which shall
      reflect the cost to the Lender of funding the Facility or any part thereof
      from other sources plus the Margin), alternative currencies for the
      Facility or any part thereof, and in establishing such Substitute Basis
      the Lender shall have regard to the reasonable wishes of the Borrowers and
      shall use to the extent it is reasonably possible their best efforts to
      reduce its costs of funding the
Facility.

            

    

    

    The
Borrowers shall notify the Lender in writing within five (5) Banking Days of
receipt of such certificate from the Lender whether or not they accept such
Substitute Basis. In case the Borrowers so accept, such Substitute Basis shall
apply in accordance with its terms. In case the Borrowers do not accept or do
not notify whether or not they accept as aforesaid, then the Borrowers and the
Lender shall enter into negotiations (for a period of not more than thirty days)
with a view to agreeing on the Substitute Basis. Should the Borrowers and the
Lender not agree on the Substitute Basis, then the Borrowers shall prepay to the
Lender the Facility or any part thereof to which this Clause applies on the next
Interest Payment Date together with interest thereon at the Interest Rate
applicable to the immediately preceding Interest Period.

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

     

    
      	
              11.5

            	
              Review of
      Circumstances (Substitute Basis). As long as the Facility or any
      part thereof is maintained on the Substitute Basis, the Lender, in
      consultation between the Lender with the Borrowers, shall in sufficient
      time prior to the end of any Interest Period review whether the
      circumstances are such that the Facility or the respective part thereof
      may be funded again in the London Interbank
  Market.

            

    

    

    
      	
              11.6

            	
              Necessary Amendments
      to Security Documents. If a Substitute Rate or a Substitute Basis
      comes into effect or if the interbank rate as per Clause 11.1.1 or the
      Interbank Market again governs the Facility or any part thereof, both
      pursuant to the terms of this Clause, the Borrowers agree to execute,
      deliver, record and endorse at their own expense amendments to the
      Security Documents reflecting the same and such other documents as the
      Lender shall reasonably request in order to maintain the validity of any
      of the Security Documents.

            

    

    

    
      
        	
                12

              	
                SECURITY

              

      

    

    

    The
Outstanding Indebtedness shall be secured in accordance with this
Clause.

    

    
      	
              12.1

            	
              General Rules
      applicable to this Clause and the Security mentioned herein. It is
      hereby expressly agreed that

            

    

    

    
      	
              12.1.1

            	
              the
      collateral listed herein shall serve as security for the Outstanding
      Indebtedness,

            

    

    

    
      	
              12.1.2

            	
              whenever
      reference is made in this Clause to an assignment of rights, this shall
      include, unless otherwise expressly stipulated, the execution of the
      notices related to such assignment and the Lender's right to make use of
      such notices and to notify the debtor about the assignment at any
      time.

            

    

    

    
      
        	
                12.2

              	
                The
      Facility shall be secured by:

              

      

    

    

    
      	
              12.2.1

            	
              the
      Acknowledgement and Submission and the
Hypothec;

            

    

    

    
      	
              12.2.2

            	
              an
      amendment agreement amending the security purpose of certain security
      documents granted under and in connection with the Existing Loan
      Agreement, namely of the Vessels' Insurances and Earnings and of pledges
      of earnings accounts in favour of the
Lender;

            

    

    

    provided,
however, that all moneys received by the Lender under the Security Documents set
forth in Clause 12.2.1 and Clause 12.2.2 shall be applied in the following order
of priority

    

    
      	
               
      

            	
              (i)

            	
              firstly
      on the indebtedness outstanding under the Existing Loan Agreement other
      than in relation to the indebtedness outstanding under the credit facility
      entitled 'Credit Facility' of the Existing Loan Agreement
    and

            

    

    

    
      	
               
      

            	
              (ii)

            	
              secondly
      on the indebtedness outstanding under the credit facility entitled 'Credit
      Facility' of the Existing Loan
Agreement,

            

    

    

    
      	  	
              (iii)

            	
              thirdly
      on the Outstanding Indebtedness
hereunder.

            

    

    

    
      
        	
                13

              	
                INSURANCES

              

      

    

    

    
      
        	
                13.1

              	
                Insurance
      Conditions. The Borrowers (without prejudice to the terms of the
      assignments of insurances referred to in Clause 12) hereby agree that all
      the Insurances regarding the Vessels shall be taken out by first class
      international underwriters of recognized standing and assigned to the
      Lender and further agree:

              

      

    

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

     

    
      	
              13.1.1

            	
              to
      insure and keep insured the Vessels against fire, marine and other risks
      (including Excess Risks) and War Risks in United States Dollar or such
      other currency as may be approved in writing by the Lender at the
      Borrowers’ own expense in the full Insurance Value but in no event for
      less than one hundred and twenty (120) percent of the aggregate of (i) the
      total amount outstanding under the relevant tranche in relation to the
      Relevant Vessel under the Existing Loan Agreement, and (ii) Euro one
      Million (EUR 1,000,000.00);

            

    

    

    
      	
              13.1.2

            	
              to
      enter the relevant Vessel in the name of the Relevant Borrower for its
      full value and tonnage in a protection and indemnity association approved
      by the Lender against all protection and indemnity risks with highest
      available limit of liability (except for the case of oil pollution which
      shall be covered to the highest limit for the type of the Vessel accepted
      by first class protection and indemnity
  associations);

            

    

    

    
      	
              13.1.3

            	
              to
      effect war risk insurance (hull and P&I), including cover in respect
      of vandalism, sabotage and malicious mischief as well as the London
      Blocking and Trapping Addendum, the war P&I cover having a separate
      limit for the same amounts insured under the war hull cover, and such
      additional Insurances and at such terms and such conditions as shall in
      the reasonable opinion of the Lender be necessary or
      advisable;

            

    

    

    
      	
              13.1.4

            	
              Loss
      of Hire to be taken out for a period of 14/180/180 days or another period
      approved by the Lender subject to ABS 1/10/83 Wording - including war,
      NMIP 1996 - Chapter 16, or equivalent conditions. Loss of Hire war can be
      taken out under separate basic war risks insurance; the Loss of Hire
      insurance shall contain an automatic renewal
  clause;

            

    

    

    
      	
              13.1.5

            	
              to
      effect the Insurances upon such terms as shall from time to time be
      approved in writing by the Lender and through such brokers (the "Approved
      Brokers") and with such insurance companies, underwriters, war risks and
      protection and indemnity associations as shall from time to time be
      approved in writing by the Lender;

            

    

    

    
      	
              13.1.6

            	
              to
      procure that a Loss Payable Clause in the form attached as exhibit 12 of
      the Existing Loan Agreement and being attached to the assignment of
      Insurances as per exhibits 7 and 8 of the Existing Loan Agreement are
      included in all policies relative to the Insurances referred to in this
      Clause;

            

    

    

    
      	
              13.1.7

            	
              to
      renew the Insurances at least fourteen (14) days before the relevant
      policies or contracts expire and to procure that the Approved Brokers
      shall promptly confirm in writing to the Lender as and when each such
      renewal is effected;

            

    

    

    
      	
              13.1.8

            	
              punctually
      to pay all premiums, calls contributions or other sums payable in respect
      of the Insurances and to produce to the Lender all relevant receipts when
      so required by the Lender;

            

    

    

    
      	
              13.1.9

            	
              to
      arrange for the execution of such guarantees as may from time to time be
      required by any protection and indemnity or War Risks
      association;

            

    

    

    
      	
              13.1.10

            	
              to
      procure that the interest of the Lender shall be duly endorsed upon all
      slips, cover notes, policies, certificates of entry or other instruments
      of insurance issued or to be issued in connection with the Insurances
      aforesaid and to procure that the said slips, cover notes, policies,
      certificates of entry or other instruments of insurance issued or to be
      issued shall provide for fourteen (14) days prior written notice to be
      given to the Lender by the Approved Brokers in the event of cancellation
      of Insurances;

            

    

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

     

    
      	
              13.1.11

            	
              to
      procure that all such instruments of insurance as are referred to in
      Clause 13.1.10 hereinabove shall be deposited with the Lender or with the
      Approved Brokers and that such brokers shall provide the Lender with
      certified copies thereof and a letter or letters of undertaking in the
      form of exhibit 13 of the Existing Loan Agreement or in another form
      acceptable to the Lender;

            

    

    

    
      	
              13.1.12

            	
              to
      procure that the protection and indemnity and/or war risks association
      wherein the Vessels are entered shall provide the Lender with a copy of
      the Certificate of Entry and a letter or letters of undertaking in such
      form as may be required by the Lender and in the case of the protection
      and indemnity association such letter of undertaking shall be in the form
      of exhibit 14 of the Existing Loan Agreement or in another form acceptable
      to the Lender;

            

    

    

    
      	
              13.1.13

            	
              to
      promptly provide the Lender with full information regarding any casualty
      or other accident or damage to any of the Vessels involving an amount in
      excess of the lesser of (i) five (5) percent of the amount insured and
      (ii) Euros one million (EUR 1,000,000.00), or in consequence whereof any
      of the Vessels has become or may become a Total
  Loss;

            

    

    

    
      	
              13.1.14

            	
              not
      to do any act nor voluntarily suffer nor permit any act to be done whereby
      any Insurance shall or may be suspended or avoided and not to suffer nor
      permit any of the Vessels to engage in any voyage nor to carry any cargo
      not permitted under the Insurances in effect without first covering the
      relevant Vessel to the amount herein provided for with insurance
      satisfactory to the Lender for such voyage or the carriage of such cargo
      and (without limitation to the generality of the foregoing) in particular
      not to permit any of the Vessels to enter or trade to any zone which is
      declared a war zone by any Government or by the relevant Vessel's War
      Risks Insurers unless the Borrowers have effected at their expense such
      special insurance as the Lender may require and the Lender has received
      sufficient evidence from the underwriters of the existence of such
      insurance cover;

            

    

    

    
      	
              13.1.15

            	
              to
      apply all amounts available in respect of the Insurances as are paid to
      the Borrowers to the repair of the damage and the reparation of the loss
      in respect of which the said amounts shall have been received or to the
      reimbursement of the Borrowers or operators for monies expended by it/them
      for repair of the damage or loss;

            

    

    

    
      	
              13.1.16

            	
              that
      according to general principles of insurance law the Lender shall be
      entitled to inform the Approved Broker through which the Insurances
      referred to in Clause 13.1 are effected about facts and/or
      circumstances which could be material for the decision to accept the risk
      of such Insurances and for the rate of
premium;

            

    

    

    
      	
              13.1.17

            	
              ensure
      that, if any of the Vessels shall be insured under any form of fleet
      cover, there shall (unless otherwise agreed by the Lender) be contained in
      such letters of undertaking, inter alia,
      undertakings that the brokers, underwriters, association or club (as the
      case may be) will not set off claims relating to the relevant Vessel
      against premiums, calls or contributions in respect of any other vessel or
      other insurance, and that the insurance cover of the relevant Vessel will
      not be cancelled by reason of non-payment of premiums, calls or
      contributions relating to any other vessel or other insurance; failing
      receipt of such undertaking, the Borrowers will instruct the brokers,
      underwriters, association or club concerned to issue a separate policy or
      certificate of entry for the Relevant Vessel in the sole name of the
      Relevant Borrower or its brokers as agents for the Relevant
      Borrower.

            

    

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

     

    
      
        	
                13.2

              	
                MII/MAP. The
      Lender shall be entitled to take out in its own
  name

              

      

    

    

    
      	
              13.2.1

            	
              a
      Mortgagee's Interest insurance covering an amount at least equal to one
      hundred twenty percent (120%) of the aggregate maximum amount of the
      Facility and the loans granted under the Existing Loan Agreement being
      outstanding at that time, and

            

    

    

    
      	
              13.2.2

            	
              an
      Additional Perils (Oil Pollution) insurance covering an amount at least
      equal to one hundred twenty percent (120%) of the aggregate maximum amount
      of the Facility and the loans granted under the Existing Loan Agreement
      being outstanding at that time.

            

    

    

    
      	
               
      

            	
              Any
      cost arising from such insurances as mentioned in Sub-Clauses 13.2.1 and
      13.2.2 shall be conclusively notified by the Lender to the Borrowers and
      shall be borne by the Borrowers.

            

    

    

    
      
        	
                13.3

              	
                US Waters.
      Should the Vessels or any of them be operated by any of the Borrowers, any
      operator or charterer within US territory waters (200 miles zone) or
      should it be intended to enter any US harbour then the Borrowers shall
      inform the Lender accordingly and are obliged to insure such Vessel
      against all risks as the Lender deems necessary by first class
      underwriters (e.g. maximum available additional oil pollution cover in
      excess of the oil pollution cover provided by the P&I Club, drug
      seizure etc.).

              

      

    

    

    
      
        	
                14

              	
                ENVIRONMENTAL
      MATTERS

              

      

    

    

    
      
        	
                14.1

              	
                Definitions. In
      this Clause

              

      

    

    

    
      	
              14.1.1

            	
              "Environmental
      Approval" means any approval, licence, permit, exemption or authorisation
      required under any applicable Environmental Law;
  and

            

    

    

    
      	
              14.1.2

            	
              "Environmental
      Claim" means:

            

    

    

    
      	
              14.1.2.1

            	
              any
      claim by any governmental, juridical or regulatory authority which arises
      out of an Environmental Incident or an alleged Environmental Incident or
      which relates to any Environmental Law;
and

            

    

    

    
      	
              14.1.2.2

            	
              any
      claim by any other person which relates to an Environmental Incident or to
      an alleged Environmental Incident; whereby "claim" means a claim for
      damages, compensation or any other payment of any kind; an order or
      direction to take certain action or to desist from or suspend certain
      action, and any form of enforcement or regulatory action, including the
      arrest or attachment of any asset;
and

            

    

    

    
      	
              14.1.3

            	
              "Environmental
      Incident" means:

            

    

    

    
      	
              14.1.3.1

            	
              any
      release or potential release of Environmentally Sensitive Material from
      any of the Vessels; and

            

    

    

    
      	
              14.1.3.2

            	
              any
      incident in which Environmentally Sensitive Material is released or
      threatened to be released from any of the Vessels and which involves a
      collision between any of the Vessels and another vessel or some incident
      of navigation or operation, in either case, in connection with which that
      Vessel is actually or potentially liable to be arrested and/or that Vessel
      or any of the Borrowers and/or any operator or the Manager is at fault or
      allegedly at fault or otherwise liable to any legal or administrative
      action; and

            

    

    

    
      	
              14.1.3.3

            	
              any
      other incident in which Environmentally Sensitive Material is released or
      threatened to be released otherwise than from any of the Vessels and in
      connection with which any of the Vessels is actually or potentially liable
      to be arrested and/or where any of the Borrowers and/or any operator or
      the Manager of that Vessel is at fault or allegedly at fault or otherwise
      liable to any legal or administrative action;
  and

            

    

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

     

    
      	
              14.1.4

            	
              "Environmental
      Law" means any law relating to pollution or protection of the environment,
      to the carriage of Environmentally Sensitive Material or to actual or
      threatened releases of Environmentally Sensitive Material;
    and

            

    

    

    
      	
              14.1.5

            	
              "Environmentally
      Sensitive Material" means oil, oil products and any other substance
      (including any gas) which is (or is capable of being or becoming)
      polluting, toxic or hazardous, except for those materials for whose
      transport the vessels are dedicated and used for in the ordinary course of
      their business.

            

    

    

    
      
        	
                14.2

              	
                Borrowers’
      Undertakings. The Borrowers
will:

              

      

    

    

    
      	
              14.2.1

            	
              comply
      with all applicable Environmental Laws and will maintain in force and
      promptly obtain or renew all Environmental Approvals required to operate
      its business as from time to time conducted or reasonably anticipated to
      be conducted;

            

    

    

    
      	
              14.2.2

            	
              notify
      the Lender forthwith in writing
upon:

            

    

    

    
      	
              14.2.2.1

            	
              any
      Environmental Claim being made against them and/or any operator or the
      Manager for the time being of any of the Vessels, or otherwise in
      connection with any of the Vessels;
and

            

    

    

    
      	
              14.2.2.2

            	
              any
      Environmental Incident occurring;

            

    

    

    
      	
              14.2.3

            	
              keep
      the Lender advised in writing on such regular basis and in such detail(s)
      as the Lender shall require, of their response to any Environmental Claim
      made in connection with any of the Vessels or Environmental
      Incident;

            

    

    

    
      	
              14.2.4

            	
              to
      indemnify the Lender against any losses and/or costs and/or taxes of
      whatsoever nature they might incur deriving from an Environmental Claim or
      an Environmental Incident.

            

    

    

    
      
        	
                15

              	
                CHANGE
      OF CIRCUMSTANCES

              

      

    

    

    
      
        	
                15.1

              	
                Compensation of
      Lender. If

              

      

    

    

    
      	
              15.1.1

            	
              any
      law, regulation, treaty or official directive (whether or not having the
      force of law) or the interpretation thereof by any authority charged with
      the administration thereof:

            

    

    

    
      	
              15.1.1.1

            	
              subjects
      the Lender to any Taxes with respect to payments of principal or of
      interest on the Facility or any other amount payable hereunder (other than
      Tax assessed, levied or collected on the overall net income of the
      Lender); or

            

    

    

    
      	
              15.1.1.2

            	
              changes
      the basis of taxation of payments to the Lender of principal or of
      interest on the Facility or of any other amount payable hereunder (other
      than a change in the basis of taxation on the overall net income of the
      Lender); or

            

    

    

    
      	
              15.1.1.3

            	
              imposes,
      modifies or deems applicable any reserve and/or special deposit
      requirements against or in respect of assets or liabilities of, or
      deposits with or for the account of, or loans or credits extended by any
      office of the Lender; or

            

    

    

    
      	
              15.1.1.4

            	
              imposes
      on the Lender any other condition affecting this Agreement, other than
      interest, the Commitment or the Facility or its funding;
  or

            

    

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

     

    
      	
              15.1.1.5

            	
              the
      Lender complies with any request, law, regulation or directive from any
      competent fiscal or monetary authority (whether or not having the force of
      law);

            

    

    

    
      	
              15.1.2

            	
              and
      as a result of any of the foregoing either directly or
      indirectly

            

    

    

    
      	
              15.1.2.1

            	
              the
      costs to the Lender of making, funding or maintaining the Facility or of
      maintaining the Commitment are increased;
or

            

    

    

    
      	
              15.1.2.2

            	
              the
      amount of principal or any other amount payable to the Lender hereunder is
      reduced, other than interest; or

            

    

    

    
      	
              15.1.2.3

            	
              the
      Lender makes any payment or foregoes any interest or other return on or
      calculated by reference to the gross amount of any sum receivable by it
      from the Borrowers hereunder;

            

    

    

    then and
in each case upon demand from time to time the Borrowers shall pay to the Lender
such amount as shall compensate the Lender for such increased costs, reduction,
payment or foregone interest or other return. If the Lender is entitled to make
a claim pursuant to this Clause, the Lender shall notify the Borrowers of the
event by reason of which it is so entitled. The Lender shall submit to the
Borrowers a letter setting out details of the event giving rise to such
compensation, the amount thereof and the manner in which it has been calculated,
in the absence of manifest error such letter shall be conclusive.

    

    In such a
case the Borrowers may prepay the Facility in accordance with Clause 9 together
with all interest accrued thereon and all fees and other amounts (including
amounts payable referred to above) owing to the Lender hereunder, but without
penalty.

    

    
      
        	
                15.2

              	
                Tax. If any
      amount payable by the Borrowers hereunder whether in respect of principal,
      interest or otherwise is or becomes subject at any time to taxation in the
      Federal Republic of Germany or any other country, except for taxes on the
      overall income of the Lender, the Borrowers will indemnify the Lender of
      such amount in respect of such tax liability so that the Lender receives
      or retains a net sum equal to the amount it would have received or
      retained had there been no such tax liability but if the Lender shall be
      or become entitled to any tax credit or relief in respect of any such tax
      liability or deduction and if the Lender in its sole determination
      actually receives a benefit from such tax credit or relief in its relevant
      country of domicile, incorporation or residence, the Lender shall, subject
      to any laws or regulations applicable thereto, pay to the Borrowers after
      such benefit is effectively received by the Lender such amount (which
      shall be conclusively certified by the Lender) as shall ensure that the
      net amount actually retained by that recipient is equal to the amount
      which would have been retained if there had been no such liability or
      deduction. In addition the Borrowers shall indemnify the Lender of any sum
      payable by the Borrowers under this Agreement against any liability for
      taxes in the Federal Republic of Germany or any other country, imposed on
      the Lender by virtue of the negotiation, preparation or execution of this
      Agreement, and/or the Security Documents the performance of any duty or
      discharge of any liability hereunder and/or under the Security Documents
      or the receipt of any payment hereunder and/or under the Security
      Documents.

              

      

    

    

    
      
        	
                15.3

              	
                Change of Law.
      Notwithstanding anything to the contrary herein contained, if any change
      in law, regulation or treaty or in the interpretation or application
      thereof by any authority charged with the administration thereof shall
      make it unlawful for the Lender to make, fund or maintain the Facility,
      the Lender may by written notice of the Lender to the Borrowers declare
      that the Lender's obligations hereunder shall be terminated forthwith
      whereupon the Borrowers will prepay forthwith (or if permitted by law on
      the next following Interest Payment Date) the Facility together with all
      interest accrued thereon and all fees and other amounts payable to the
      Lender hereunder, provided, however, that no penalty shall be payable. The
      Lender's obligations and liabilities hereunder and its Commitment shall be
      cancelled on the giving of such Lender's notice. In any such event, but
      without prejudice to the aforesaid liability of the Borrowers to prepay
      the Facility the Borrowers and the Lender shall negotiate in good faith
      with a view to agreeing terms for making the Facility available from
      another jurisdiction, or funding the Facility from alternative sources, or
      otherwise restructuring the Facility on a basis which is
      lawful.

              

      

    

    

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

    
       

      
        	
                16

              	
                BASEL
      II

              

      

    

    

    If the
Lender's basis of calculation of the Facility under applicable Basel II or Basel
III regulations or any subsequent Basel accord or any amendment or modification
thereto or any other rule, law or regulation with a similar effect changes due
to a change in any of the Obligors' general financial position and/or rating,
the Lender may reassess the Margins in order to adopt the Margins to the new
calculation basis and thus determine new margins (the “New Margins”), provided,
however, that such adoption shall take effect not earlier than the Margin Day.
The Lender shall notify the Borrowers about the New Margins in writing. The New
Margins shall apply from the day the next Interest Period commences however not
earlier than one (1) Month after the Borrowers having received the Lender’s
notice to this effect.

    

    Upon
receipt of the Lender’s notice of New Margins representing an increase towards
the then current Margins the Borrowers may prepay the Facility on the last
Interest Payment Date immediately preceding the date on which the New Margin
shall commence, provided that the Lender has received not less than fourteen
(14) Business Days prior to such last Interest Payment Date the Borrowers’
written notice to this effect.

    

    The
Borrowers may make such prepayment without paying the Lender any penalty but, as
provided in Clause 9.6, the Borrowers shall reimburse the Lender on demand for
any breakage cost, proven out-of-pocket expenses and legal fees the Lender incur
due to such prepayment.

    

    
      
        	
                17

              	
                REPRESENTATIONS
      AND WARRANTIES

              

      

    

    

    Borrowers Representation and
Warranties. The Borrowers hereby represent and warrant to and for the
benefit of the Lender that, as on the date hereof and on each Drawdown Date and
on each Interest Payment Date and on each Repayment Date:

    

    
      
        	
                17.1

              	
                the
      Borrowers are limited partnerships duly organized and validly existing
      under the laws of the Federal Republic of
  Germany;

              

      

    

    

    
      
        	
                17.2

              	
                the
      Borrowers have the perpetual corporate existence and power to enter into
      this Agreement and each of the documents to which they are a party and to
      borrow and perform their obligations hereunder and thereunder and have
      taken all necessary corporate or other actions required to authorize the
      execution, delivery and performance of this Agreement and those of the
      documents to which they are a
party;

              

      

    

    

    
      
        	
                17.3

              	
                the
      execution, delivery and performance of this Agreement and each of the
      documents to which any of the Borrowers is a party will not violate or
      exceed the powers granted to it by, or any provisions of (a) any law or
      regulation in any jurisdiction to which it is subject, (b) any order or
      decree of any governmental agency or court of or in any jurisdiction to
      which it is subject, (c) the constitutional documents, or (d) any
      mortgage, deed, contract or agreement to which it is a party or which is
      binding upon it or any of its
assets;

              

      

    

    

    
      
        	
                17.4

              	
                no
      approval or consent from any governmental and quasi-governmental
      authorities is necessary under applicable law for the execution and
      delivery of this Agreement and any document and instrument delivered or to
      be delivered pursuant hereto and the mortgaging of the Vessels to the
      Lender;

              

      

    

     

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

     

    
      
        	
                17.5

              	
                there
      are no actions, suits or proceedings pending or threatened against or
      affecting any of the Borrowers, its property at law or before any
      governmental authority which may affect the Borrowers’ solvency or ability
      to pay their debts or their ability to own the Vessels or affect a
      substantial part of any of the Borrowers’ property and none of the
      Borrowers is in default with respect to any order, writ, injunction, claim
      or demand of any court or any governmental
  authority;

              

      

    

    

    
      
        	
                17.6

              	
                this
      Agreement, the consummation of the transactions herein contemplated and
      the fulfilment of the terms hereof and the compliance by the Borrowers
      with all of the terms and conditions of this Agreement and all documents
      and instruments referred to herein and/or delivered pursuant hereto will
      not result in any breach by them of the terms, conditions or provisions
      of, or constitute a default under any indenture, bank loan or credit
      agreement or instrument to which any of the Borrowers is bound and will
      not result in the creation of any lien, charge or encumbrance (other than
      the Hypothec) upon any of the Borrower’s property or
    assets;

              

      

    

    

    
      
        	
                17.7

              	
                there
      are no material facts or circumstances which have not been disclosed to
      the Lender in writing which, if disclosed, might reasonably be expected to
      adversely affect the decision of a person considering whether to provide
      finance to the Borrowers;

              

      

    

    

    
      
        	
                17.8

              	
                in
      relation to the borrowing by the Borrowers of the Facility, the
      performance and discharge of their obligations and liabilities hereunder
      and/or under the Security Documents to which any of the Borrowers is a
      party, the Borrowers are acting for their 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, as from
      time to time amended);

              

      

    

    

    
      
        	
                17.9

              	
                this
      Agreement and each of the Security Documents constitute, or will
      constitute, when executed and delivered, and, in case of the Hypothec,
      when registered in the Ships Registry, legal, valid and binding
      obligations of the Borrowers, enforceable against them in accordance with
      their respective terms, subject to laws of bankruptcy, insolvency,
      liquidation or other laws affecting generally creditors’
      rights;

              

      

    

    

    
      	
              17.10

            	
              the
      Borrowers have not failed to pay any material sum when due or to perform
      any material monetary obligation under the provisions of any agreement to
      which any of them is a party or by which any of them may be bound and no
      event has occurred and is continuing which entitles, or which with the
      giving of notice, lapse of time or other condition would entitle, the
      other party or parties to any such agreement to declare such indebtedness
      to be due and payable by the Borrowers or any of
  them;

            

    

    

    
      	
              17.11

            	
              the
      Borrowers are not in default in the performance of any material
      non-monetary obligation under the provisions of this Agreement or any
      other agreement to which any of them is a party or by which any of them
      may be bound and no event has occurred and is continuing which entitles,
      or which with the giving of notice, lapse of time or other condition would
      entitle, the other party or parties to terminate any such agreement;
      and

            

    

    

    
      	
              17.12

            	
              save
      as provided by applicable laws of bankruptcy, insolvency, liquidation or
      similar laws of general application, the obligations of the Borrowers
      under this Agreement rank and will rank at least pari passu in priority
      of payment, security and in all other respects with all non-preferred
      indebtedness of the Borrowers except with respect to maritime liens which
      according to applicable law rank prior to the Hypothec,
  and

            

    

    

    
      	
              17.13

            	
              the
      Borrowers have not incurred any financial indebtedness other than
      financial indebtedness disclosed to the Lender in writing,
    and

            

    

    

    
      	
              17.14

            	
              each
      of the Relevant Borrower's sole business is the owning and operation of
      the Relevant Vessel and other than the Relevant Vessel it does not own
      other substantial assets, and

            

    

     

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

    

     

    
      	
              17.15

            	
              the
      financial information provided pursuant to Clause 19 hereof is complete,
      accurate and not misleading in all material respects,
  and

            

    

    

    
      	
              17.16

            	
              the
      Equity Provider 2 shall be and remain a limited partner (Kommanditist) of each
      of the Borrowers, such Equity Provider 2  holding at least
      twenty five (25) percent of each of the Borrower's share capital,
      and

            

    

    

    
      	
              17.17

            	
              Dr.
      Niels Hartmann is the sole shareholder of (i) NH Beteiligungen
      Geschäftsführungs-GmbH of Leer, Germany, being the sole general partner of
      NH Beteiligungen GmbH & Co. KG of Leer, Germany and (ii) NH
      Beteiligungen GmbH & Co. KG of Leer, Germany, being the sole
      shareholder of the General Partner,
and

            

    

    

    
      	
              17.18

            	
              to
      the best of their knowledge, no Prohibited Payment has been made or
      provided, directly or indirectly, by (or on behalf of) any of it, any of
      their subsidiaries, their officers, directors or any other person acting
      on their behalf to, or for the benefit of, any authority (or any official,
      officer, director, agent or key employee of, or other person with
      management responsibilities in, any authority) in connection with this
      Agreement or any Security Document,
and

            

    

    

    
      	
              17.19

            	
              none
      of the sources of funds to be used by the Borrowers in connection with any
      payments to be made by the Borrowers or any of them under the Agreement or
      any Security Document or its business are of Illicit Origin,
      and

            

    

    

    
      	
              17.20

            	
              the
      Facility will not be used to finance equipment or sectors under embargo
      decisions of the United Nations, the World Bank, the European Union or
      Italy; and

            

    

    

    
      	
              17.21

            	
              in
      relation to the borrowing of the Facility by the Borrowers, the
      performance and discharge of their obligations and liabilities hereunder
      and/or under the Security Documents and/or the opening of any account with
      the Lender, each of the Borrowers 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 the term is defined in
      Article 1 of the Directive (91/308/EEC) of the Council of the European
      Union). Should during the Security Period the Borrowers be acting of the
      account of a third party, they will promptly furnish the Lender with names
      and addresses of the respective economic beneficiaries;
  and

            

    

    

    
      	
              17.22

            	
              Reederei
      Hartmann is a company or corporation duly organized and validly existing
      and in good standing under the laws of its incorporation;
    and

            

    

    

    
      	
              17.23

            	
              according
      to the Borrowers’ records and best knowledge there are no actions, suits
      or proceedings pending or threatened against or affecting Reederei
      Hartmann, its property at law or before any governmental authority which
      may affect Reederei Hartmann's solvency or ability to pay its debts or
      affect a substantial part of Reederei Hartmann's and according to the
      Borrowers’ records and best knowledge Reederei Hartmann is not in default
      with respect to any order, writ, injunction, claim or demand of any court
      or any governmental authority; and

            

    

    

    
      	
              17.24

            	
              there
      are no material facts or circumstances which have not been disclosed to
      the Lender in writing which, if disclosed, might reasonably be expected to
      adversely affect the decision of a person considering whether to provide
      finance to Reederei Hartmann.

            

    

     

    
      
        
        

      

      
        25

        
          

        

      

      
        
        

      

    

     

    
      
        	
                18

              	
                ASSET
      PROTECTION

              

      

    

    

    
      
        	
                18.1

              	
                Evaluation. The
      Borrowers covenant and undertake with the Lender that they will from time
      to time annually upon request by the Lender, in any event not more than
      twice per year, cause the Fair Market Value of the Vessels to be valued in
      United States Dollars, Euros or British Pounds, such Fair Market Value
      being the arithmetic average of the valuations provided by one (1)
      internationally well reputed ship sale and purchase broker approved by the
      Lender, each such valuation to be made, unless the Lender requests
      otherwise, without physical inspection and on the basis of an arms-length
      transaction between willing buyer and willing seller without taking into
      account any charter party of the Vessels in force at the time of any such
      valuation and such broker being instructed to deliver to the Lender the
      aforesaid valuation in writing. All costs arising in connection with the
      obtaining of these valuations (including, but not limited to, the fees of
      the relevant broker and surveyor) shall be borne by the
      Borrowers.

              

      

    

    

    
      
        	
                18.2

              	
                Shortfall. If
      the aggregate of the Fair Market Values assessed in accordance with Clause
      18.1 at any time after the delivery of any or all Vessels shall be less
      than one hundred twenty (120) percent of the then outstanding aggregate
      balance of the long term tranches entitled 'Tranches LT' and the credit
      facility tranches entitled 'Tranches CF' in the Existing Loan Agreement
      and the Facility, then and in such case within a period of thirty (30)
      days following receipt by the Borrowers of written notice from the Lender
      notifying the Borrowers of such shortfall and specifying the amount
      thereof (which amount shall in the absence of manifest error be conclusive
      and binding upon the Borrowers) either furnish the Lender with such
      additional security as shall be acceptable to the Lender in its sole
      discretion for the purpose of remedying such deficiency in security or
      prepay to the Lender (together with interest accrued thereon and any costs
      arising through such prepayment being made otherwise than at the end of an
      Interest Period) such part of the Facility as shall be necessary to ensure
      compliance with the provisions of this Clause. Any additional security
      required as a result of the operation of this Clause is separate from and
      additional to any other security provided or to be provided under the
      other provisions of this Agreement and the Security
    Documents.

              

      

    

    

    
      
        	
                18.3

              	
                In
      addition to Clauses 18.1 and 18.2, the Borrowers undertake to the Lender
      that if the ratio of the average Fair Market Values of the Vessels 10, 11
      and 12 to the then outstanding aggregate balance of the long term tranches
      entitled 'Tranches LT 1 - 12' and the credit facility tranches entitled
      'Tranches CF 1 - 12' in the Existing Loan Agreement and the Facility is
      less than the ratio of the average Fair Market Values of the Vessels 1 - 9
      to the then outstanding aggregate balance of the long term tranches titled
      'Tranches LT 1 - 12' and the credit facility tranches entitled 'Tranches
      CF 1 - 12' in the Existing Loan Agreement and the Facility, it being
      understood that the Fair Market Values to be assessed in each case in
      accordance with Clause 18.1, then and in such case within a period of
      thirty (30) days following receipt by the Borrowers of written notice from
      the Lender notifying the Borrowers of such shortfall and specifying the
      amount thereof (which amount shall in the absence of manifest error be
      conclusive and binding upon the Borrowers) to either furnish the Lender
      with such additional security as shall be acceptable to the Lender in its
      sole discretion for the purpose of remedying such deficiency in security
      or to prepay to the Lender (together with interest accrued thereon and any
      costs arising through such prepayment being made otherwise than at the end
      of an Interest Period) such part of the Facility as shall be necessary to
      ensure that the above described ratios are equal. Unless and until the
      Facility have been prepaid or the additional security has been granted as
      described above, no dividend payments by any of the Borrowers to any of
      their shareholders shall be permitted. Any additional security required as
      a result of the operation of this clause is separate from and additional
      to any other security provided or to be provided under the other
      provisions of this Agreement and the Security
  Documents.

              

      

    

    

    
      
        	
                19

              	
                UNDERTAKINGS

              

      

    

    

    
      
        	
                19.1

              	
                Financial
      Covenants

              

      

    

    

    
      	
              19.1.1

            	
              Each
      of the Borrowers undertakes to the Lender that during the Security Period
      it will

            

    

    

    
      	
              19.1.1.1

            	
              maintain
      the Relevant Earnings Account with the
Lender;

            

    

     

    
      
        
        

      

      
        26

        
          

        

      

      
        
        

      

    

     

    
      	
              19.1.1.2

            	
              have
      all Earnings of the Relevant Vessel paid into the Relevant Earnings
      Account.

            

    

    

    
      	
              19.1.2

            	
              The
      Borrowers undertake to the Lender that during the Security Period they
      will:

            

    

    

    
      	
              19.1.2.1

            	
              not
      without the Lender's prior written consent assume, guarantee or endorse or
      otherwise become or remain liable in connection with any obligation of any
      person, firm, company or other
entity;

            

    

    

    
      	
              19.1.2.2

            	
              not
      without the Lender's prior written consent authorize or accept any capital
      commitments exceeding Euros one million (EUR 1,000,000.00), in the single
      or in the aggregate, per Borrower other than those referred to and allowed
      in accordance with Clause 19.1.2.3;

            

    

    

    
      	
              19.1.2.3

            	
              not
      enter into any shareholder loans and/or inter company borrowings other
      than for the purpose of covering liquidity shortfalls due to different
      employment situations of the Vessels provided, however that any such
      shareholder loans and/or inter company borrowings shall be (a) fully
      subordinated to the Borrowers' obligations hereunder, under the Existing
      Loan Agreement and under the security documents granted pursuant to the
      Existing Loan Agreement, (b) on terms and conditions acceptable to the
      Lender, (c) not amended, varied, changed or supplemented without the prior
      written consent of the Lender and (d) not terminated and/or accelerated
      for any reason whatsoever without the prior written consent of the Lender
      ;

            

    

    

    
      	
              19.1.2.4

            	
              not
      create or permit to subsist any collateral over any of its assets with the
      exception of (i) suppliers' collateral as common in trade or industry,
      such as reservation of title or subsequent assignment by way of security,
      and (ii) banking collateral as required by banks' general business
      conditions, and (iii) the collateral created by the Security Documents and
      by the security documents granted pursuant to the Existing Loan Agreement;
      provided, however, that in case of the exceptions described in (i) and
      (ii) above the Borrowers shall secure that the Lender participate before
      or at the same time and in the same rank in this collateral or providing
      the Lender with equal collateral (pari
      passu),

            

    

    

    
      	
              19.1.2.5

            	
              not
      pay dividends, reduce any of its share capital or make other distributions
      of a revenue or capital nature or payments of principal or interest on
      debt to any officer, director, shareholder, employee or customer of any of
      the Borrowers, unless and until the Outstanding Indebtedness has been
      repaid in full to the satisfaction of the Lender and either (i) the
      Commitment Termination Date has occurred or (ii) the Borrowers have waived
      their rights for re-borrowing under Clause
9.2.

            

    

    

    
      
        	
                19.2

              	
                Covenants related to
      the Vessels

              

      

    

    

    
      	
              19.2.1

            	
              The
      Borrowers undertake to the Lender that during the Security Period they
      will

            

    

    

    
      	
              19.2.1.1

            	
              have
      the Vessels registered in the Ships Registry and fly the German flag or
      any other flag acceptable to the
Lender;

            

    

    

    
      	
              19.2.1.2

            	
              procure
      that at least two (2) of the first four (4) Vessels be employed under a
      time charter of a minimum duration of twelve (12) Months (or equivalent
      substitute satisfactory to the Lender, such as a cash deposit to be opened
      and maintained by the Borrowers with the Lender and to be pledged to the
      Lender, with an amount to cover operating expenses and financing cost
      under this Agreement for twelve (12) months), at a charter hire in a
      sufficient amount to cover operating expenses and financing costs under
      this Agreement and furthermore on terms and conditions acceptable to the
      Lender;

            

    

     

    
      
        
        

      

      
        27

        
          

        

      

      
        
        

      

    

     

    
      	
              19.2.1.3

            	
              present
      a pool concept for the Vessels' employment to the full satisfaction of the
      Lender;

            

    

    

    
      	
              19.2.1.4

            	
              cause
      at least four (4) of the Vessels after the delivery of the last Vessel to
      be employed under the Charters or any other contract of employment on
      terms and conditions acceptable to the Lender (or equivalent substitute,
      as described in clause 19.2.1.2 above), provided that this covenant shall
      only be applicable until 31st
      December, 2014 in case the Borrowers have made all payments due hereunder
      from time to time and under any Security Documents and no Event of Default
      has occurred;

            

    

    

    
      	
              19.2.1.5

            	
              cause
      the Vessels to be managed by the
Manager;

            

    

    

    
      	
              19.2.1.6

            	
              ensure
      that the Vessels are insured in accordance with the requirements of this
      Agreement and at all times comply with all terms and conditions of such
      Insurances;

            

    

    

    
      	
              19.2.1.7

            	
              maintain
      the Vessels with, or procure that the Vessels maintain the following
      class:

            

    

    

    ABS: +A1
(E), Offshore Support Vessel AH, +AMS, *ACCU, Oil Recovery Capability Class 1,
DPS-1, FiFi-II, TCM, UWILD,

    

    and
furthermore to be classed in the highest class for vessels of its kind with the
Classification Society or with such other classification society as shall
previously have been agreed to in writing by the Lender without any overdue
recommendations or qualifications;

    

    
      	
              19.2.1.8

            	
              without
      prejudice to the aforesaid,

            

    

    

    
      	
              19.2.1.8.1.

            	
              maintain
      the Vessels or procure that the Vessels be maintained in accordance with
      the highest standards of ship maintenance and operation for vessels of its
      kind;

            

    

    

    
      	
              19.2.1.8.2.

            	
              ensure
      that the Lender and/or its agents are permitted to inspect the Vessel at
      all reasonable times, whereby the costs of one (1) inspection per year per
      Vessel shall be at the Borrowers' cost, unless a Vessel has been repaired
      in a shipyard or there has occurred and is continuing an Event of Default:
      in these cases also the costs of further inspections shall be borne by the
      Borrowers;

            

    

    

    
      	
              19.2.1.8.3.

            	
              promptly
      effect or cause to be effected at its expense all repairs and replacements
      as and when the Lender or the Classification Society may from time to time
      require the same;

            

    

    

    
      	
              19.2.1.8.4.

            	
              not
      to remove material parts or material equipment from any of the Vessels
      unless replaced with equipment of the same or higher value and not to make
      material alterations, which would affect any of the Vessels'
      class.

            

    

     

    
      
        
        

      

      
        28

        
          

        

      

      
        
        

      

    

     

    
      	
              19.2.1.9

            	
              comply
      with all applicable national and international laws, rules, regulations
      and orders of any governmental entity or administrative agency including,
      without limitation, constitutional provisions, statutes, decrees,
      treaties, laws, conventions and regulations having the force of law,
      applicable to the Borrowers or any of its businesses, properties or assets
      or the Vessels, including, but not limited to, the ISPS
    Code;

            

    

    

    
      	
              19.2.1.10

            	
              obtain
      promptly at any time or from time to time (as the case may be) and will at
      any time comply with the terms of and do all that is necessary to maintain
      in full force and effect all registrations, licences, consents, approvals,
      authorizations and/or declarations required under any applicable law or
      regulation of any applicable jurisdiction to enable the Borrowers to
      lawfully enter into and perform its obligations hereunder and under the
      Security Documents to which they are a party and to ensure the legality,
      validity, enforceability or admissibility in evidence in all applicable
      jurisdictions of this Agreement and the Security Documents and furnish the
      Lender with a copies of the documents obtained in complying with this
      Clause;

            

    

    

    
      	
              19.2.1.11

            	
              if
      an Event of Default has occurred and the Lender has accelerated the
      Facility, direct or cause to direct any of the Vessels or all of them to
      any destination or port as the Lender may
  request;

            

    

    

    
      	
              19.2.1.12

            	
              if
      (i) an increase of the equity of any of the Borrowers by way of capital
      contribution, debt-to-equity swap, private or public placement or
      otherwise or (ii) the granting of one or more shareholder loans to the
      Borrowers or (iii) the granting of any other form of liquidity supply in
      an amount of at least Euro six million two hundred fifty thousand (EUR
      6,250,000.00) can not be achieved latest until 31st
      December, 2011, shall use their best efforts to sell a minimum of two
      Vessels until 30th
      December, 2011 to a third party on an arm's length basis and apply the
      entire sale proceeds (after deduction of reasonable costs for the
      operation of the Relevant Vessels accrued until the Sale thereof and of
      reasonable costs accrued in connection with the sale of the Relevant
      Vessels and evidenced in writing to the Lender) firstly on the payment of
      the ongoing guarantee fee pursuant to clause 10.9.9 of the Existing Loan
      Agreement and secondly in repayment of the outstanding indebtedness then
      being due and payable in accordance with clause 9.4 of the Existing Loan
      Agreement or otherwise under the Existing Loan Agreement and thirdly in
      repayment of the Outstanding Indebtedness hereunder in part or in
      full;

            

    

    

    
      	
              19.2.1.13

            	
              enter
      into an addendum to the Existing Loan Agreement latest until 31st
      December, 2010 in form and substance satisfactory to the Lender to the
      effect that (a) clauses 18.2 of the Existing Loan Agreement is amended to
      the effect that the Facility is taken into account when calculating the
      outstanding loan amount and (b) - after the Outstanding Indebtedness has
      been repaid in full to the satisfaction of the Lender and either (i) the
      Commitment Termination Date has occurred or (ii) the Borrowers have waived
      their rights for re-borrowing hereunder under Clause 9.2 - the Borrowers
      shall make additional prepayments of twenty (20) percent of their annual
      earnings after tax (equalling the annual turnover less operating expenses
      of the Vessels less debt service under the Existing Loan Agreement less
      ten (10) percent dividend payout in relation to the paid-in share-capital
      and less any taxes to be paid by the Relevant Borrowers) until the
      utilized credit facility tranches entitled 'Tranches CF' under the
      Existing Loan Agreement have been repaid in
  full.

            

    

    

    
      	
              19.2.2

            	
              The
      Borrowers furthermore undertake to the Lender that during the Security
      Period to comply or to procure that the Manager will comply within the
      requisite applicable time limits for vessels of same type, size, age and
      flag of the Vessels with the International Management Code for Safe
      Operation of Ships and for Pollution Prevention (as the same may be
      amended from time to time, the "ISM Code") adopted by the International
      Maritime Organisation or any replacement of the ISM Code and in
      particular, without prejudice to the generality of the foregoing, as and
      when required to do so by the ISM Code and at all times
      thereafter,

            

    

     

    
      
        
        

      

      
        29

        
          

        

      

      
        
        

      

    

     

    
      	
              19.2.2.1

            	
              to
      hold or to procure that the Manager holds, a valid Document of Compliance
      (being a document issued to a vessel operator as evidence of its
      compliance with the requirements of the ISM Code) duly issued to the
      Borrowers or the Manager (as the case may be) pursuant to the ISM Code and
      a valid Safety Management Certificate (being a document issued to a vessel
      as evidence that the vessel operator and its shipboard management operate
      in accordance with an approved structured and documented system enabling
      the personnel of that vessel operator to implement effectively the safety
      and environmental protection policy of that vessel operator) duly issued
      to the Vessels pursuant to the ISM
Code,

            

    

    

    
      	
              19.2.2.2

            	
              upon
      the Lender’s request, to provide the Lender with copies of any such
      Document of Compliance and Safety Management Certificate as soon as the
      same are issued and after every renewal,
and

            

    

    

    
      	
              19.2.2.3

            	
              to
      keep or to procure that there is kept, on board of each Vessel a copy of
      any such Document of Compliance and the original of any such Safety
      Management Certificate.

            

    

    

    
      	
              19.2.3

            	
              The
      Borrowers undertake to the Lender that during the Security Period they
      will not

            

    

    

    
      	
              19.2.3.1

            	
              without
      the Lender's prior written consent cancel, change, amend or modify any
      Charter;

            

    

    

    
      	
              19.2.3.2

            	
              enter
      into any bareboat charter contract regarding any of the Vessels other than
      those referred to in Clause 20;

            

    

    

    
      	
              19.2.3.3

            	
              create,
      incur or allow to exist over any of the Vessels any further hypothec,
      mortgage, charge, lien or pledge other than (a) the Hypothec,
      (b) liens for Taxes not delinquent or being contested in good faith,
      (c)  liens for current crew's wages and salvage, (d) liens covered by
      valid policies of insurance held by the Lender and meeting the
      requirements of Clause 13, and (e) liens not covered by insurance,
      incurred in the ordinary course of business and not more than thirty (30)
      days past due;

            

    

    

    
      	
              19.2.3.4

            	
              without
      the Lender's prior written consent permit any change of register, flag,
      Classification Society, ownership or management of any of the
      Vessels;

            

    

    

    
      	
              19.2.3.5

            	
              own,
      charter or manage any vessel other than the
  Vessels;

            

    

    

    
      	
              19.2.3.6

            	
              permit
      any of the Vessels to be operated in any way contrary to applicable
      law;

            

    

    

    
      	
              19.2.3.7

            	
              permit
      any of the Vessels to carry nuclear fuels or radioactive products or
      waste;

            

    

    

    
      	
              19.2.3.8

            	
              permit
      any of the Vessels to carry toxic
waste;

            

    

    

    
      	
              19.2.3.9

            	
              permit
      any of the Vessels to carry arms or
ammunition.

            

    

     

    
      
        
        

      

      
        30

        
          

        

      

      
        
        

      

    

     

    
      
        	
                19.3

              	
                Reporting
      Covenants

              

      

    

    

    The
Borrowers undertake to the Lender that during the Security Period they
will

    

    
      	
              19.3.1

            	
              deliver
      to the Lender copies of the Borrowers’ Financial Statements, not later
      than 30th
      April of each year, for the first time until 30th
      April, 2011 for the business year 2010, and such other information
      (including financial information) as the Lender may from time to time
      reasonably require;

            

    

    

    
      	
              19.3.2

            	
              deliver
      to the Lender copies of the Borrowers’ unaudited semi annual financial
      results and cash flow projections, not later than ninety (90) days after
      the end of each half-year, for the first time until 30th
      September, 2011;

            

    

    

    
      	
              19.3.3

            	
              deliver
      to the Lender copies of the Financial Statements of Hartmann Offshore GmbH
      & Co. KG of Leer, Germany, on a consolidated basis, not later than
      30th
      September of each year, for the first time until 30th
      September, 2011 for the business year 2010, and such other information
      (including financial information) as the Lender may from time to time
      reasonably require regarding Hartmann Offshore GmbH & Co. KG of Leer,
      Germany;

            

    

    

    
      	
              19.3.4

            	
              deliver
      to the Lender upon the Lender’s request, class certificates for hull and
      machinery and the Lender shall be permitted access to all reports, files
      and records of the Classification
Society;

            

    

    

    
      	
              19.3.5

            	
              deliver
      to the Lender upon the Lender’s request, information as to the employment
      of the Vessels, such as charter contracts, operating expenses
      etc;

            

    

    

    
      	
              19.3.6

            	
              deliver
      to the Lender any information on changes of the terms and conditions of
      the Building Contracts;

            

    

    

    
      	
              19.3.7

            	
              deliver
      to the Lender such financial information on the Borrowers and the Manager
      and such further information on the Vessels as the Lender may from time to
      time require;

            

    

    

    
      	
              19.3.8

            	
              promptly
      inform the Lender of any occurrence of which they become aware which in
      their reasonable opinion might adversely affect their ability to perform
      their obligations hereunder or under any Security Document to which they
      are a party or constitute an Event of
Default;

            

    

    

    
      	
              19.3.9

            	
              promptly
      inform the Lender of any damage to or alteration of any of the Vessels
      exceeding the value of an amount in excess of the lesser of (i) five (5)
      percent of the amount for which the relevant Vessel is insured or (ii)
      Euros one million (EUR
1,000,000.00);

            

    

    

    
      	
              19.3.10

            	
              deliver
      to the Lender any information regarding each inter company loan and
      shareholder loan to which a Borrower is a party (i) promptly after
      conclusion of the relevant loan agreement and (ii) not later than ninety
      (90) days after the end of each half-year, for the first time on 31st
      March, 2011;

            

    

    

    
      	
              19.3.11

            	
              according
      to the Germany money laundering act (GWG) provide to the
      Lender any information required by law (§ 1 subpara 6 of the German Money
      Laundering Act (GWG)) regarding the
      beneficial owner(s). The Borrowers further undertake to promptly and
      voluntarily inform the Lender about any change of the beneficial owner(s)
      occurring during the Security Period (§ 4 subpara 6 of the German Money
      Laundering Act (GWG)) and to provide
      the Lender upon request with all documents and information necessary for
      the determination and verification of the information provided by the
      Borrowers.

            

    

     

    
      
        
        

      

      
        31

        
          

        

      

      
        
        

      

    

     

    
      
        	
                19.4

              	
                Covenants regarding
      Corporate Structure

              

      

    

    

    The
Borrowers further undertake to the Lender that during the Security Period they
will not without the prior written consent of the Lender:

    

    
      	
              19.4.1

            	
              allow
      any change in any of the Borrowers’ corporate or shareholder structure to
      the effect that Equity Provider 2 holds less than twenty five (25) percent
      in advance or to the effect that any of the Borrowers ceases to be a
      limited partnership;

            

    

    

    
      	
              19.4.2

            	
              allow
      any change of the General Partner or any change in the General Partner's
      corporate or shareholder structure without (i) promptly informing the
      Lender in detail prior to any such proposed change in writing and (ii)
      agreeing with the Lender any amendments to this Agreement in respect of
      e.g. margin, term, security or any other
terms;

            

    

    

    
      	
              19.4.3

            	
              change
      the nature of any of the Borrowers’ business or commence any business
      other than the ownership and operation of the
  Vessels;

            

    

    

    
      	
              19.4.4

            	
              consolidate
      with or merge into any other corporation or merge any other corporation
      into any of the Borrowers.

            

    

    

    
      
        	
                20

              	
                BAREBOAT
      REGISTRATION

              

      

    

    

    
      
        	
                20.1

              	
                Approval to Bareboat
      Registration. At the Borrowers' request the Lender is ready to
      consent to the Vessels being temporarily registered in the name of a
      Bareboat Charterer as a chartered bareboat in a ships registry under a
      flag acceptable to the Lender
provided

              

      

    

    

    
      	
              20.1.1

            	
              the
      relevant Bareboat Charterer is a wholly owned and controlled subsidiary of
      the Relevant Borrower,

            

    

    

    
      	
              20.1.2

            	
              all
      necessary or advisable approvals, consents, permits, certificates of
      registry, etc. have been granted by the German and the relevant
      authorities of the flag state and have been produced to the Lender in
      original or certified true and complete copy and the following documents
      have been produced to the Lender:

            

    

    

    
      	
              20.1.2.1

            	
              evidence
      in writing that the relevant Bareboat Charterer is a wholly owned and
      controlled subsidiary of the Relevant
Borrower,

            

    

    

    
      	
              20.1.2.2

            	
              with
      respect to each Vessel to be registered under the flag accepted by the
      Lender the documentation set out in Exhibit 11 attached
      hereto.

            

    

    

    
      
        	
                20.2

              	
                Lender's
      Reservation. The Lender reserves the right to grant its consent
      under additional conditions and to revoke such consent whenever it deems
      necessary or advisable.

              

      

    

    

    
      
        	
                21

              	
                ACCOUNTS

              

      

    

    

    
      
        	
                21.1

              	
                Earnings
      Accounts. The Borrowers shall establish and maintain in their
      relevant names throughout the Security Period the Earnings Accounts with
      the Lender.

              

      

    

    

    
      
        	
                21.2

              	
                Costs of
      Operations. The Relevant Borrower shall be entitled to debit its
      Earnings Account with the Vessel's current costs of operation always
      provided that such debits are either covered by the credit balance on the
      relevant Earnings Account or are within the credit line of such relevant
      Earnings Account.

              

      

    

     

    
      
        
        

      

      
        32

        
          

        

      

      
        
        

      

    

     

    
      
        	
                21.3

              	
                Lender's
      Authorisation. The Borrowers hereby instruct and authorize the
      Lender, and the Lender is entitled to make use of this instruction upon
      its sole discretion, to debit the Earnings Account with the Tranches
      outstanding on the Final Maturity Date, the Interest Payments, and the
      payments of any cost or expenses to be borne by the Borrowers pursuant to
      this Agreement on their respective due
dates

              

      

    

    

    
      
        	
                21.4

              	
                Interest.
      Interest (at the rate applicable from time to time for the period the
      relevant deposit has been made) accruing on the Earnings Accounts shall be
      for the Borrowers' credit.

              

      

    

    

    
      
        	
                21.5

              	
                Keeping
      Accounts. The Lender shall maintain and keep accounts showing all
      sums due to the Lender from the Borrowers and the amounts in such accounts
      and in the books of the Lender shall be conclusive, save for manifest
      error.

              

      

    

    

    
      
        	
                22

              	
                EVENTS
      OF DEFAULT

              

      

    

    

    Single Events of
Default. Without prejudice to no. 26 paragraph 2 of the Lender's general
business conditions (Allgemeine
Geschäftsbedingungen), in case:

    

    
      
        	
                22.1

              	
                any
      of the Borrowers fails to pay when due any instalment of principal or
      interest or other sum payable hereunder or under or pursuant to any of the
      Security Documents or other document relating to this Agreement;
      or

              

      

    

    

    
      
        	
                22.2

              	
                any
      of the Borrowers defaults in the performance or observance of any other
      obligation or term contained herein, in any of the Security Documents or
      other document relating to this Agreement;
or

              

      

    

    

    
      
        	
                22.3

              	
                this
      Agreement or any of the Security Documents ceases in whole or in part to
      be valid, binding and enforceable;
or

              

      

    

    

    
      
        	
                22.4

              	
                any
      representation, warranty or undertaking made in this Agreement or in any
      certificate, statement or other document delivered in connection with the
      execution and delivery hereof shall prove to have been incorrect,
      inaccurate or misleading in any material respect;
  or

              

      

    

    

    
      
        	
                22.5

              	
                there
      is any material adverse change in the financial situation of any of the
      Obligors and such occurrence in the opinion of the Lender makes it
      unlikely that the Obligors will be able to perform their obligations
      hereunder and/or under the Security Documents in the manner provided
      herein and /or therein; or

              

      

    

    

    
      
        	
                22.6

              	
                any
      of the Borrowers ceases or threatens to cease to carry on its business or
      disposes or threatens to dispose of any substantial part of its assets or
      the same are seized or appropriated for any reason;
  or

              

      

    

    

    
      
        	
                22.7

              	
                any
      of the Obligors (other than the Manager) becomes insolvent or bankrupt or
      becomes unable to pay its debts as they mature or makes any composition
      with or assignment for the benefit of its creditors or applies for or
      consents to or sustains the appointment of a trustee or receiver in
      respect of its assets or a substantial part thereof or ceases or threatens
      to cease to carry on business;
or

              

      

    

    

    
      
        	
                22.8

              	
                any
      consent required for the performance by any of the Borrowers of its
      obligations hereunder or under any Security Document is revoked or is
      otherwise modified in a manner unacceptable to the Lender;
    or

              

      

    

    

    
      
        	
                22.9

              	
                the
      Facility or any portion thereof has not been utilized for its intended
      purpose; or

              

      

    

    

    
      	
              22.10

            	
              pursuant
      to a legal opinion given to the Lender by any of its counsels the validity
      and/or enforceability of this Agreement and or any Security Document may
      be subject to material doubt and if the Borrowers fail to comply within
      fourteen (14) days from receipt of the Lender’s written demand to remedy
      such material doubt to the Lender's satisfaction;
  or

            

    

     

    
      
        
        

      

      
        33

        
          

        

      

      
        
        

      

    

     

    
      	
              22.11

            	
              any
      of the Borrowers is in default under the Existing Loan Agreement and/or
      any other agreement with the Lender, or under any financing agreement to
      which the Borrowers, or any of them, is/are a party in which the Lender is
      participating on the lender’s side;
or

            

    

    

    
      	
              22.12

            	
              any
      of the Borrowers is in default under any other financial agreement and the
      lender thereunder has cancelled such agreement and demanded early
      repayment; or

            

    

    

    
      	
              22.13

            	
              any
      of the Vessels is not delivered to the Relevant Borrower in due time in
      accordance with the terms of the Relevant Building
    Contract;

            

    

    

    
      	
              22.14

            	
              any
      Charter, the Pool Agreement is terminated, rescinded, invalid or
      unenforceable;

            

    

    

    
      	
              22.15

            	
              the
      performance by any of the Borrowers of its obligations under this
      Agreement or any of the Security Documents becomes
  illegal;

            

    

    

    
      	
              22.16

            	
              the
      General Partner changes its corporate and/or shareholder structure as
      described in Clause 17.17 without the Lender’s prior written
      consent;

            

    

    

    
      	
              22.17

            	
              the
      Equity Provider 1 ceases to be a limited partner (Kommanditist) of each
      of the Borrowers (except for Borrower 10, Borrower 11, and Borrower 12)
      holding at least seventy five (75) percent of each of the Borrowers
      (except for Borrower 10, Borrower 11 and Borrower 12) share capital,
      unless (i) the Equity Provider 1 transfers its shares in the Borrowers to
      any entity
      referred to in the definition of the term Equity Provider 2 or an
      affiliated company thereof accepted by the Lender or (ii) the Equity
      Provider 1 transfers its shares in the Borrowers to another third party
      accepted by the Lender and a mandatory prepayment is made in accordance
      with clause 9.4.2 hereof;

            

    

    

    
      	
              22.18

            	
              the
      Equity Provider 2 ceases to hold at least twenty five (25) percent of each
      of the Borrowers or if any of the Borrowers ceases to be a limited
      partnership;

            

    

    

    
      	
              22.19

            	
              the
      Equity Provider 3 ceases to be a limited partner (Kommanditist) of each
      of the Borrowers 10,11 and 12 holding at least seventy five (75) percent
      of each of the Borrower's 10, 11 and 12 share
  capital;

            

    

    

    then, and
in any such event and at any time thereafter, if any such event shall be
continuing, the Lender shall be entitled:

    

    
      	
               
      

            	
              (i)

            	
              by
      written notice from the Lender to the Borrowers to declare the Facility
      immediately due and payable, whereupon the same shall become so payable in
      accordance together with interest accrued thereon and all other amounts
      payable hereunder and under the Security Documents;
  and/or

            

    

    

    
      	
               
      

            	
              (ii)

            	
              by
      written notice from the Lender to the Borrowers to declare that the
      Commitment be cancelled, whereupon the same shall be cancelled and all
      amounts payable hereunder shall become immediately due and
      payable,

            

    

    

    provided,
however, that in case of an event as set out in this Clause resulting from a
breach of obligations arising from this Agreement, the Lender shall be entitled
to the rights set out in Subclause 22.1 (i) and Subclause 22.1 (ii) only after
expiry, without result, of a reasonable period fixed for corrective action by
the Borrowers or after a warning to the Borrowers has proved unsuccessful,
unless this proviso can be dispensed due to the specific features of the
particular case pursuant to Section 323 (2) and (3) of the German Civil Code
(BGB), in particular, if the Borrowers definitely refuse performance or fail to
render performance on a contractually fixed date or within a specified
time-period.

     

    
      
        
        

      

      
        34

        
          

        

      

      
        
        

      

    

     

    
      
        	
                23

              	
                ASSIGNMENT,
      TRANSFER AND SYNDICATION

              

      

    

    

    
      
        	
                23.1

              	
                Assignment by
      Borrowers. The Borrowers shall not without the Lender’s prior
      written consent assign all or part of their rights or transfer all or part
      of their obligations hereunder to any third
  party.

              

      

    

    

    
      
        	
                23.2

              	
                Assignment by Lender
      to Branches. The Lender is entitled to assign, transfer (by way of
      Vertragsübernahme)
      pledge, and/or sub-participate its rights and obligations and the credit
      risk hereunder and under the Security Documents, in part or in full to any
      branch, wholly owned subsidiary or affiliate of such
    Lender.

              

      

    

    

    
      
        	
                23.3

              	
                Syndication.
      The Lender is entitled to assign, transfer (by way of Vertragsübernahme)
      pledge, and/or sub-participate their rights and obligations and the credit
      risk hereunder and under the Security Documents, in part or in full to any
      Lender or to any other third party (the "Syndicate Members" or, in case of
      an assignment and transfer (by way of Vertragsübernahme) the
      "New Lender"), provided, however, (i) the Lender remains the Borrowers’
      sole co-ordinator and contact-person hereunder and (ii) the Borrowers have
      given their prior written consent, such consent not to be unreasonably
      withheld.

              

      

    

    

    
      
        	
                23.4

              	
                Syndication
      Procedure. The procedure for the assignment and transfer (by way of
      Vertragsübernahme)
      shall be as described below.

              

      

    

    

    
      	
              23.4.1

            	
              In
      this Clause "Transfer Date" in a Transfer Certificate has the following
      meaning:

            

    

    

    
      	
              23.4.1.1

            	
              the
      Transfer Date which is specified in detail in the Transfer Certificate,
      or, if later,

            

    

    

    
      	
              23.4.1.2

            	
              the
      date on which the Lender signs the Transfer
  Certificate.

            

    

    

    
      	
              23.4.2

            	
              A
      transfer is effected if:

            

    

    

    
      	
              23.4.2.1

            	
              the
      transferring Lender and the New Lender furnish the Lender with a duly
      signed Transfer Certificate;

            

    

    

    
      	
              23.4.2.2

            	
              the
      Lender signs the Transfer Certificate;
and

            

    

    

    
      	
              23.4.2.3

            	
              the
      New Lender has acceded to the Agency and Security Pooling
      Agreement.

            

    

    

    
      	
              23.4.3

            	
              Each
      party, including, but not limited to, the Borrowers, hereby grants the
      Lender an irrevocable power of attorney for the acceptance of the Transfer
      Certificate in its name and subject to release from the restrictions
      imposed by § 181 of the German Civil
Code.

            

    

    

    
      	
              23.4.4

            	
              On
      the Transfer Date:

            

    

    

    
      	
              23.4.4.1

            	
              The
      New Lender assumes the rights and obligations of the transferring Lender,
      which, pursuant to the Transfer Certificate are the subject of the
      transfer; and

            

    

    

    
      	
              23.4.4.2

            	
              the
      transferring Lender is released from its relevant
  duties.

            

    

     

    
      
        
        

      

      
        35

        
          

        

      

      
        
        

      

    

     

    
      
        	
                23.5

              	
                Disclosure. The
      Lender shall be entitled to disclose to any potential Syndicate Member,
      New Lender as well as – where relevant – to rating agencies, trustees, and
      accountants, such financial and other information regarding the Borrowers,
      the Facility, the collateral, the financial circumstances and other
      information, as the Lender may deem reasonably necessary or appropriate in
      connection with the (potential) syndication, the assessment of the risk
      and the ongoing monitoring of the loan by any (potential) Syndicate Member
      or New Lender. Insofar the Lender shall be released from any obligation of
      secrecy and from banking confidentiality. Where Syndicate Members, New
      Lenders, rating agencies, trustees and accountants are not already by law
      subject to rules of confidentiality, the Lender shall require such
      Syndicate Members, New Lenders, rating agencies, trustees and accountants
      to sign a confidentiality agreement. The Lender shall be entitled to
      release deal tables containing standard information for marketing
      purposes. Furthermore, the Lender shall be entitled to inform each New
      Lender or Syndicate Member of any events or information of which they
      become aware affecting any of the Facility or the Security Documents. The
      Lender shall be released from any obligation of secrecy and from banking
      confidentiality in this respect as
well.

              

      

    

    

    
      
        	
                23.6

              	
                Borrowers'
      Cooperation. The Borrowers herewith irrevocably agree to the
      above-mentioned measures. To the extent the cooperation of the Borrowers
      shall be required in the course of syndication, the Borrowers will take
      all necessary steps, provided that this shall not result in any additional
      costs to them. The Borrowers undertake to and procure that each of third
      party sureties will, upon request of the Lender, participate and assist in
      a transfer of the security created by the Security
    Documents.

              

      

    

    

    
      
        	
                23.7

              	
                Binding
      Documents. The Security Documents shall be binding upon, and shall
      inure to the benefit of, the Lender and its relevant successors and
      assigns and their respective successors (in each case whether by merger,
      amalgamation, consolidation, take over or otherwise, and each such case a
      “Succession”), and each party hereby agrees that from the completion of
      the Succession the Agreement and the Security Documents shall be read and
      construed as if all references to the Lender were references to the
      relevant successor. For the avoidance of doubt, the relevant successor
      shall not be a transferee or assignee for the purpose of the Security
      Documents but shall be (or shall be treated as) the same legal entity as
      the Lender (or the relevant preceding successor, as the case may
      be).

              

      

    

    

    
      
        	
                24

              	
                APPLICABLE
      LAW, JURISDICTION

              

      

    

    

    The terms
and conditions set out in this Agreement shall unless otherwise specifically
provided be governed by and construed in accordance with the laws of the Federal
Republic of Germany and by the Borrowers’ acceptance hereof the Borrowers submit
to the jurisdiction of the courts in Hannover, Federal Republic of
Germany.

    

    Nothing
in this Clause shall affect the right of the Lender to serve process in any
manner permitted by law or limit the right of the enders to proceed against the
Borrowers or any of them in any other jurisdiction.

    

    
      
        	
                25

              	
                JUDGEMENT
      CURRENCY

              

      

    

    

    If in
obtaining judgement in any court it becomes necessary or advisable for the
Lender to convert any amount owed pursuant hereto into another currency then
such conversion shall be deemed to be made at the rate of exchange prevailing
the day before the Lender's action is brought into court with prime banks in the
country of such court. If in such case due to alterations of the exchange rate
the amount finally received by the Lender or any of them shall be insufficient
to cover the amount owed in Euros then the Borrowers shall pay to the Lender the
amount required to compensate for such loss.

    

    
      
        	
                26

              	
                WAIVERS

              

      

    

    

    Time is
of the essence of this Agreement. No failure or delay on the part of the Lender
to exercise any power or right under this Agreement shall operate as a waiver
thereof or of any other power or right. The remedies provided herein are
cumulative and are not exclusive of any remedies provided by law.

     

    
      
        
        

      

      
        36

        
          

        

      

      
        
        

      

    

     

    
      
        	
                27

              	
                INVALIDITY

              

      

    

    

    In the
event that this Agreement or any provision hereof or any of the documents or
instruments which may from time to time be delivered hereunder or any provision
thereof shall be deemed invalid by present or future law of any nation or by
decision of any court this shall not affect the validity of this Agreement, such
documents and instruments as a whole and in such case the parties hereto shall
execute and deliver such other and further agreements and/or documents and/or
instruments and such things as the Lender in its reasonable discretion, may deem
to be necessary to carry out the original intent of the parties to this
Agreement.

    

    
      
        	
                28

              	
                SURVIVAL

              

      

    

    

    All of
the covenants, representations and warranties made herein or in any of the
documents or instruments delivered pursuant hereto shall survive the making of
the Facility and shall be binding upon the Borrowers until all obligations of
the Borrowers arising pursuant to the terms of this Agreement and/or such
documents or instruments delivered pursuant hereto have been paid and performed
in full.

    

    
      
        	
                29

              	
                EFFECTUATION

              

      

    

    

    The
Borrowers undertake to take all such steps and actions that are within their
power in order to execute and deliver all such further documents and instruments
as may be necessary in the sole discretion of the Lender to effectuate the
intent of this Agreement.

    

    The
Lender reserves the right to obtain legal opinions from its counsel in any
relevant country as to the validity and enforceability of this Agreement and all
documents and instruments delivered pursuant thereto and the Borrowers agree and
undertake to take all such steps and actions including but not limited to any
alterations thereto as may be deemed necessary by such opinion or
opinions.

    

    
      
        	
                30

              	
                LANGUAGE

              

      

    

    

    Any
document to be delivered by the Borrowers to the Lender pursuant to this
Agreement shall be in German or English or accompanied by a German or an English
translation. The Lender may request the Borrowers to have any such translation
certified by an authorized translator.

    

    
      
        	
                31

              	
                COSTS AND
      EXPENSES

              

      

    

    

    
      
        	
                31.1

              	
                Costs and
      Expenses. Unless otherwise stipulated herein, all costs and
      expenses and claims for damages of the Lender which occur during the legal
      relations between these parties on the one side and the Borrowers on the
      other side and which are in relation to the Facility shall be borne by the
      Borrowers whether or not any Drawdown ultimately takes place and all costs
      and expenses and claims for damages incurred in the maintenance of the
      security created by this Agreement and the Security Documents or the
      actual or attempted enforcement at any time of the rights of the Lender
      hereunder and thereunder shall be borne by the Borrowers. This refers
      especially to expenses for maintenance, safeguarding and insurance of the
      Vessels or for upkeep and security of the Hypothec, costs for lifting a
      seizure of the Vessels, costs incident to guarding and custody of the
      Vessels, costs for every evaluation requested by the Lender with regard to
      value and condition of the Vessels in case of an Event of Default of the
      Borrowers and the fees for outside attorneys or other persons commissioned
      by the Lender. This also includes expenses incurred by the Lender in
      connection with the drafting, preparation, execution, carrying out,
      enforcement or attempted enforcement of this Agreement and/or the Security
      Documents as well as costs for translations and for legal
      opinions.

              

      

    

    

    All such
costs and expenses have to be paid when due and payable according to the
respective invoice, which will be notified by the Lender to the Borrowers. All
amounts so disbursed or expended by the Lender shall be subject to (a) the
Default Rate from the day five (5) Banking Days after the Lender has requested
refunding or repayment thereof from the Borrowers until the time of refunding or
repayment or (b) the Default Rate from the day of disbursement until the time of
refunding or repayment thereof, if the Lender has given notice of default
hereunder.

     

    
      
        
        

      

      
        37

        
          

        

      

      
        
        

      

    

     

    
      
        	
                31.2

              	
                Taxes. The
      Borrowers shall bear all Taxes which are levied in Germany and other
      countries on the capital, the repayment rates, the interest and other
      payments, today or in future related to the Facility except for Taxes
      charged in the Federal Republic of Germany on the income of the Lender.
      This provision concerns all Taxes and dues of any kind, whether they have
      direct or indirect, personal or real character (as e.g. income tax,
      capital tax, trade tax and turnover tax), whether these Taxes be levied on
      the total income or the aggregate property of the Lender as mortgagee or
      on the extraordinary income or property or on any portion of the income
      and property or for reason of any legal or real events. This Agreement
      must be understood in its broadest sense as to entitle the Lender (who fix
      the rate of interest without regard to any Taxes in Germany or other
      countries and who has entered into this Agreement on the basis - inter alia - of
      receiving payments in full and free of any such Taxes) to pass on the
      Taxes. The Taxes will be charged to, and promptly paid by the Borrowers
      also if for reason of any legal or authoritative regulations they are to
      be collected from the Lender.

              

      

    

    

    Such
Taxes collected from the Lender and must be reimbursed by the Borrowers
immediately when the Borrowers are informed to this effect by the Lender. Any
failure of the Borrowers as a result of the foregoing to remit to the Lender
full payments required hereunder shall not waive default for non-payments as
defined under Clause 22 of this Agreement.

    

    
      
        	
                32

              	
                NOTICES
      AND TIME

              

      

    

    

    
      
        	
                32.1

              	
                Addresses. Any
      notice or other communication to be given pursuant hereto shall be by
      letter or registered letter or telefax and
  addressed

              

      

    

    

    -  if
to the Borrowers, to

    

    the
Borrowers

    c/o
HARTMANN OFFSHORE GMBH & CO. KG

    Neue
Straße 24

    26789
Leer

    Germany

    Fax:      +49-491-9995020

    

    -  if
to the Lender, to:

    

    NORDDEUTSCHE
LANDESBANK GIROZENTRALE

    Shipping
and Aircraft Finance Department

    Friedrichswall
10

    30159
Hannover

    Federal
Republic of Germany

    Fax:      +49-511-3614785,

    

    
      	
               
      

            	
              or
      to such other address as either party may notify to the other in
      writing.

            

    

    

    
      
        	
                32.2

              	
                Form of
      Communicating. Communications sent by telefax shall be effective
      when sent and if sent by letter shall be effective on receipt. Any
      communication by telefax from a party to the relevant other party/ies
      shall be confirmed by letter if so requested by the relevant party and the
      relevant party may (in its absolute discretion) refuse to act on any such
      communication pending receipt of such
letter.

              

      

    

    

    
      
        	
                32.3

              	
                Receipt. A
      notice or other communication received on a day which is not a Banking Day
      or after business hours in the place of receipt on a Banking Day shall be
      deemed to be served on the next following Banking Day in such
      place.

              

      

    

     

    
      
        
        

      

      
        38

        
          

        

      

      
        
        

      

    

     

    
      
        	
                32.4

              	
                Authorisation.
      Each Borrower irrevocably authorises each of the other Borrowers and the
      Manager (the "Representative") to act on its behalf as its agent in
      relation to this Agreement and the Security Documents and irrevocably
      authorises:

              

      

    

    

    
      	
              32.4.1

            	
              the
      Representative 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 and to make
      any agreement capable of being made by it on its behalf under this
      Agreement and the Security Documents;
and

            

    

    

    
      	
              32.4.2

            	
              each
      Lender to make any communication or deliver any document to be made or
      delivered to such Borrower pursuant to this Agreement and/or the Security
      Documents to the Representative on its behalf in accordance with this
      Clause,

            

    

    

    and in
each such case, irrespective if such Representative has given express or implied
statement to act as representative on behalf of such Borrower, such Borrower
will be bound thereby as though such Borrower had itself supplied such
information, given such notice and instructions or made such agreement or, as
the case may be, as if such communication or document had been made or delivered
to it in accordance with this Clause.

    

    
      
        	
                33

              	
                GENERAL
      CONDITIONS

              

      

    

    

    
      
        	
                33.1

              	
                Part of this
      Agreement. The General Conditions are deemed to be part of this
      Agreement. By signing this Agreement, the Borrowers acknowledge that they
      received a copy of the General Conditions and agree that they shall be
      part of this Agreement.

              

      

    

    

    
      
        	
                33.2

              	
                Language. The
      German wording of the General Conditions is binding in all respects and in
      the case of any conflict or divergence between the English translation and
      the German wording in any respect whatsoever, the German wording shall
      prevail and govern this
Agreement.

              

      

    

    

    
      
        	
                33.3

              	
                Conflict. In
      case of conflict between this Agreement and the General Conditions the
      terms and conditions of this Agreement shall prevail over those of the
      General Conditions.

              

      

    

    

    
      
        	
                34

              	
                EXHIBITS

              

      

    

    

    The
Exhibits to this Agreement form an integral part of this Agreement and their
terms shall accordingly be deemed to have been set out herein in
full.

    

    
      
        	
                35

              	
                COUNTERPARTS

              

      

    

    

    This
Agreement may be executed in several counterparts and by each party hereto on a
separate counterpart, each of which shall be deemed to be an original and all of
which when taken together shall constitute one and the same
instrument.

    

    
      
        	
                36

              	
                DECLARATION
      ON MONEY LAUNDERING

              

      

    

    

    Declaration
according to German Money Laundering Act (Geldwäschegesetz)

    

    The
Borrowers hereby confirms to the Lender by ticking the box or initial that in
respect of the Facility it is acting for its own account:

    

    for                           ©           own
account

    

    for                           £           account
of third party

    

    
      
        
        

      

      
        39

        
          

        

      

      
        
        

      

    

    

    (Remainder of page left blank
intentionally)

    IN WITNESS WHEREOF the parties
hereto have caused this Agreement to be signed by their duly authorized
attorneys the day and year first above written.

    
      

      
        
          
            
              
                	
                        THE
      LENDER:

                      	 
      	 
      	 
	 
      	 
      	 
      	 
	
                        SIGNED
      by

                      	
                        )

                      	 
      	 
	
                        Regina
      Schulz and

                      	
                        )

                      	 
      	 
	
                        Inga
      Boysen

                      	
                        )

                      	 
      	 
	
                        for
      and on behalf of

                      	
                        )

                      	 
      	 
	
                        NORDDEUTSCHE
      LANDESBANK

                      	
                        )

                      	 
      	 
	
                        GIROZENTRALE

                      	
                        )

                      	
                        /s/ Regina Schulz /s/ Inga
      Boysen

                      	 
	 
      	 
      	 
      	 
	
                        THE
      BORROWERS

                      	 
      	 
      	 
	 
      	 
      	 
      	 
	
                        SIGNED
      by

                      	
                        )

                      	 
      	 
	
                        Niels
      Roggemann

                      	
                        )

                      	 
      	 
	
                        for
      and on behalf of

                      	
                        )

                      	
                        /s/ Niels Roggemann

                      	 

              

            

          

        

      

      

      ATL
OFFSHORE GMBH & CO. MS "JUIST" KG

      

      ATL
OFFSHORE GMBH & CO. MS "NORDERNEY" KG

      

      ATL
OFFSHORE GMBH & CO. "ISLE OF BALTRUM" KG

      

      ATL
OFFSHORE GMBH & CO. "ISLE OF LANGEOOG" KG

      

      ATL
OFFSHORE GMBH & CO. "ISLE OF AMRUM" KG

      

      ATL
OFFSHORE GMBH & CO. "ISLE OF SYLT" KG

      

      ATL
OFFSHORE GMBH & CO. "ISLE OF WANGEROOGE" KG

      

      ATL
OFFSHORE GMBH & CO. "ISLE OF NEUWERK" KG

      

      ATL
OFFSHORE GMBH & CO. "ISLE OF USEDOM" KG

      

      ATL
OFFSHORE GMBH & CO. "ISLE OF FEHMARN" KG

      

      ATL
OFFSHORE GMBH & CO. "ISLE OF MEMMERT" KG

      

      ATL
OFFSHORE GMBH & CO. "ISLE OF MELLUM" KG

      
        
           

        

        
          40

          
            

          

        

        
           

        

      

      ACKNOWLEDGED
BY:

      

      
        
          
            
              
                	
                        THE MANAGER

                      	 
      	 
      	 
	 
      	 
      	 
      	 
	
                        Signed
      by

                      	
                        )

                      	 
      	 
	
                        NIELS
      ROGGEMANN

                      	
                        )

                      	 
      	 
	
                        HARTMANN
      OFFSHORE GMBH

                      	
                        )

                      	
                        /s/ Niels Roggemann

                      	 

              

            

             

            
              
                
                

              

              
                41

                
                  

                

              

              
                
                

              

            

             

            
              
                
                  
                    
                      
                        
                          
                            
                              
                                	
                                        SCHEDULES
      AND EXHIBITS

                                      
	 
      	 	 
      
	 
      	 	 
      
	
                                        Schedule
      1

                                      	 	
                                        List
      of Borrowers, Building Contracts and Vessels

                                      
	 
      	 	 
      
	
                                        Schedule
      2

                                      	 	
                                        List
      of Conditions Precedent

                                      
	 
      	 	 
      
	 
      	 	 
      
	
                                        Exhibit
      1

                                      	 	
                                        Form
      of Drawdown Notice

                                      
	 
      	 	 
      
	
                                        Exhibit
      2

                                      	 	
                                        Form
      of Bareboat Documentation

                                      
	 
      	 	 
      
	
                                        Exhibit
      3

                                      	 	
                                        Form
      of Transfer Certificate

                                      
	 
      	 	 
      
	
                                        Exhibit
      4

                                      	 	
                                        General
      Conditions of
NORD/LB

                                      

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    
      
        
        

      

      
        42Exhibit
10.1

    

    SEVENTEENTH
AMENDMENT TO LOAN AND SECURITY AGREEMENT

    DATED
OCTOBER 22, 2001

    

    This Seventeenth Amendment to Loan and
Security Agreement (the “Seventeenth Amendment”) is made as of this 29th day of
October, 2010 by and between SeaChange International, Inc., a Delaware
corporation with its principal place of business at 50 Nagog Park, Acton,
Massachusetts 01720 (the “Borrower”) and RBS Citizens, National Association,
successor by merger with Citizens Bank of Massachusetts, a national banking
association with offices at 28 State Street, Boston, Massachusetts (the
“Lender”) in consideration of the mutual covenants contained herein and the
benefits to be derived herefrom.  Unless otherwise specified, all
capitalized terms shall have the same meaning herein as set forth in the
Agreement (as defined below).

    

    WITNESSETH:

    

    WHEREAS, on October 22, 2001, the
Borrower and the Lender entered into a loan arrangement (the “Loan Arrangement”)
as evidenced by, amongst other documents and instruments, a certain Loan and
Security Agreement as amended from time to time (as may be further amended from
time to time, the “Agreement”) by and between the Borrower and the Lender
pursuant to which the Lender agreed to provide certain financial accommodations
to or for the benefit of the Borrower; and

    

    WHEREAS, the Borrower has requested
that the Lender amend certain terms and conditions of the Agreement all as set
forth herein, and

    

    WHEREAS,
the Lender has agreed to so amend the Agreement provided the Borrower and the
Lender entered into this Seventeenth Amendment; and

    

    NOW, THEREFORE, for good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties hereto agree as follows:

    

    
      	
               
      

            	
              1.

            	
              Section
      5(a) of the Agreement is hereby amended by deleting the phrase “the lesser
      of (i) the Borrowing Base (as defined below, or
  (ii)”.

            

    

    

    
      	
               
      

            	
              2.

            	
              Sections
      5(c), (f), 12(e) (i) through and including (iii) of the Agreement are
      hereby deleted in their entirety.

            

    

    

    
      	
               
      

            	
              3.

            	
              Section
      5(d) of the Agreement is hereby amended by deleting “Fifteen Million
      ($15,000,000.00) Dollars” and replacing it with “Twenty Million
      ($20,000,000.00) Dollars”.

            

    

    

    
      	
               
      

            	
              4.

            	
              Section
      5(g) of the Agreement is hereby amended by deleting “Two Million
      ($2,000,000.00) Dollars” from the definition of Letter of Credit Limit and
      replacing it with “Five Million ($5,000,000.00) Dollars.  The amount
      available under the Letter of Credit Limit shall be reduced by the
      Business Card Limit.  As used herein “Business Card Limit” shall mean
      the aggregate maximum credit limit on all business credit cards issued by
      the Lender to or on behalf of the
Borrower.

            

    

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    

    
      	
               
      

            	
              5.

            	
              Section
      5(h)(i) of the Agreement is hereby amended by deleting all of the
      references to “Borrowing Base” and replacing it with “Credit
      Limit”.

            

    

    

    
      	
               
      

            	
              6.

            	
              Section
      5(k) of the Agreement is hereby amended by deleting “one quarter of one
      percent (.25%) per annum” and replacing it with “three eighths of one
      percent (.375%) per annum”.

            

    

    

    
      	
               
      

            	
              7.

            	
              Section
      6 of the Agreement is hereby deleted in its
  entirety.

            

    

    

    
      	
               
      

            	
              8.

            	
              Section
      13(z) of the Agreement is hereby deleted and replaced with the
      following:

            

    

    

    “(z)           The
Borrower shall cause all material domestic subsidiaries to guaranty the
Obligations of the Borrower to the Bank in the form of Exhibit Guaranty
annexed hereto.  Borrower shall pledge 65% of its interest in all material
foreign subsidiaries in the form of Exhibit Pledge
Agreement annexed hereto.  All guaranties and pledges shall be
accompanied by such due diligence as requested by the Lender.  As used
herein a “material subsidiary” shall be a direct or indirect subsidiary of the
Borrower that owns fifteen percent (15%) or more of the total assets (exclusive
of goodwill and client contracts) of the Borrower at the most recent quarter end
or contributes at least fifteen percent (15%) of the total sales of the Borrower
for the trailing twelve (12) month period at most recent quarter end.  A
foreign subsidiary shall be any direct or indirect subsidiary of the Borrower
that is not incorporated or organized under the laws of the United States of
America, any state thereof or the District of Columbia.  The Borrower shall
notify the Bank in writing upon a subsidiary becoming a material subsidiary and
shall include in its quarterly compliance certificate a list of all subsidiaries
with a designation of which subsidiary is a material subsidiary.”

    

    
      	
               
      

            	
              9.

            	
              The
      Agreement is hereby supplemented by adding the following Section as
      Section 14 (b):

            

    

    

    “(Fixed Charge
Coverage) permit, for the twelve-month period ending on the last day of
any fiscal quarter, the ratio of cash flow to fixed charges to be less than 1.2
to 1 until January 31, 2011 and 1.5 to 1 thereafter, tested
quarterly.”

    

    
      	
               
      

            	
              10.

            	
              The
      definition of “fixed charges” after Section 14(o) of the Agreement is
      hereby deleted and replaced with the
following:

            

    

    

    “fixed
charges” shall mean interest, plus CMLTD, plus operating lease expense, plus all
earnout payments and commencing after January 31, 2011, all deferred purchase
payments from acquisitions.”

    

    
      	
               
      

            	
              11.

            	
              Section
      19(a) of the Agreement is hereby amended by deleting “October 31, 2010 and
      replacing it with ‘October 31,
2012”.

            

    

    

    
      	
               
      

            	
              12.

            	
              The
      Compliance Certificate annexed to the Agreement as Exhibit 2 is hereby
      deleted and replaced by the attached Exhibit
2.

            

    

    

    
      	
               
      

            	
              13.

            	
              The
      Borrower hereby agrees that the liabilities, obligations and indemnity of
      the Borrower under the Agreement shall be secured by any and all
      collateral now or hereafter granted to the Lender by the
      Borrower.

            

    

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    

    
      	
               
      

            	
              14.

            	
              The
      Borrower and each guarantor signing below hereby acknowledge and agree
      that the Borrower has no offsets, defenses or counterclaims against the
      Lender with respect to the Loan Arrangement or otherwise, and to the
      extent that the Borrower or guarantor has any such offsets, defenses or
      counterclaims against the Lender, then the Borrower and
      each guarantor hereby affirmatively WAIVES and RENOUNCES any such offsets,
      defenses or counterclaims.

            

    

    

    
      	
               
      

            	
              15.

            	
              This
      Seventeenth Amendment and all other documents executed in connection
      herewith incorporate all discussions and negotiations between the Borrower
      and the Lender either expressed or implied, concerning the matters
      contained herein and in such other instruments, any statute, custom or use
      to the contrary notwithstanding.  No such discussions or negotiations
      shall limit, modify or otherwise effect the provisions
      hereof.  The modification amendment, or waiver of any provision
      of this Seventeenth Amendment, the Agreement or any provision under any
      other agreement or document entered into between the Borrower and the
      Lender shall not be effective unless executed in writing by the party to
      be charged with such modification, amendment or waiver, and if such party
      be the Lender, then by a duly authorized officer
  thereof.

            

    

    

    
      	
               
      

            	
              16.

            	
              Except
      as specifically modified herein, the Agreement shall remain in full force
      and effect as originally written, and the Borrower hereby ratifies and
      confirms all terms and conditions contained in the
    Agreement.

            

    

    

    
      	
               
      

            	
              17.

            	
              This
      Seventeenth Amendment shall be construed in accordance with and governed
      by the laws of the Commonwealth of Massachusetts and shall take effect as
      a sealed instrument.

            

    

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    IN
WITNESS WHEREOF, the parties hereof have set their hands and seals as of the
date first written above.

    

    
      
        
          	 
      	
                  SEACHANGE
      INTERNATIONAL, INC.

                
	 
      	 
      	 
      
	 
      	
                  By: /s/ Kevin Bisson

                
	 
      	
                  Name:
      Kevin Bisson

                
	 
      	
                  Title:
      Senior V.P. and CFO

                
	 
      	 
      	 
      
	 
      	
                  RBS
      CITIZENS, NATIONAL ASSOCIATION

                
	 
      	 
      
	 
      	
                  By:
      /s/ William M. Clossey

                
	 
      	
                  Name:
      William M. Clossey

                
	 
      	
                  Title:
      Vice President

                

        

      

    

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    The undersigned guarantor hereby
consents to the foregoing Seventeenth Amendment and acknowledge that its
guaranty remains in full force and effect and that the guarantor remains
obligated thereunder.

    

    
      
        
          
            
              	 
      	
                      SEACHANGE
      HOLDINGS INC.

                    	 
	 
      	 
      	 
	 
      	
                      By: /s/ Kevin Bisson

                    	 
	 
      	
                      Name:
      Kevin Bisson

                    	 
	 
      	
                      Title:
      Senior V.P. and CFO

                    	 

            

          

        

      

    
 

    
      
         

      

      
        5

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