Document:

ex4-10.htm

    Exhibit
4.10

     

     

     

    Date  19
March 2008

    

    

    

    

    CAPITAL
PRODUCT PARTNERS L.P.

    as
Borrower

    

    - and
-

    

    THE
BANKS AND FINANCIAL INSTITUTIONS

    listed
in Schedule 1

    as
Lenders

    

    - and
-

    

    HSH
NORDBANK AG

    as Swap
Bank

    

    - and
-

    

    HSH
NORDBANK AG

    as
Bookrunner

    

    - and
-

    

    HSH
NORDBANK AG

    as
Mandated Lead Arranger,

    Facility
Agent and Security Trustee

    

    - and
-

    

    DnB
NOR BANK ASA

    as
Co-Arranger

    

    

    

    

    __________________________________

    

    LOAN
AGREEMENT

    __________________________________

    

    relating
to revolving credit and term loan facilities not

    exceeding
US$350,000,000 in aggregate to initially

    part-finance
the acquisition cost of four tanker vessels and

    further
part-finance the acquisition cost of certain additional vessels

    

    

    

    

    WATSON,
FARLEY & WILLIAMS

    Piraeus

    

    
      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

    

    

    INDEX

     

    

    
      	Clause 	 	Page 
	
              1

            	
              INTERPRETATION

            	
              2

            
	
              2

            	
              FACILITY

            	
              19

            
	
              3

            	
              POSITION OF THE LENDERS, THE SWAP BANK AND THE
      MAJORITY LENDERS

            	
              20

            
	
              4

            	
              DRAWDOWN

            	
              21

            
	
              5

            	
              INTEREST

            	
              23

            
	
              6

            	
              INTEREST PERIODS

            	
              25

            
	
              7

            	
              DEFAULT INTEREST

            	
              25

            
	
              8

            	
              CONVERSION TO TERM
      LOAN;  REPAYMENT AND PREPAYMENT

            	
              27

            
	
              9

            	
              CONDITIONS PRECEDENT

            	
              29

            
	
              10

            	
              REPRESENTATIONS AND
      WARRANTIES

            	
              30

            
	
              11

            	
              GENERAL UNDERTAKINGS

            	
              32

            
	
              12

            	
              CORPORATE UNDERTAKINGS

            	
              35

            
	
              13

            	
              INSURANCE

            	
              37

            
	
              14

            	
              SHIP COVENANTS

            	
              43

            
	
              15

            	
              SECURITY COVER

            	
              46

            
	
              16

            	
              PAYMENTS AND
CALCULATIONS

            	
              48

            
	
              17

            	
              APPLICATION OF RECEIPTS

            	
              50

            
	
              18

            	
              APPLICATION OF EARNINGS

            	
              51

            
	
              19

            	
              EVENTS OF DEFAULT

            	
              52

            
	
              20

            	
              FEES AND EXPENSES

            	
              56

            
	
              21

            	
              INDEMNITIES

            	
              57

            
	
              22

            	
              NO SET-OFF OR TAX
    DEDUCTION

            	
              59

            
	
              23

            	
              ILLEGALITY, ETC

            	
              60

            
	
              24

            	
              INCREASED COSTS

            	
              60

            
	
              25

            	
              SET-OFF

            	
              61

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    
      	
              26

            	
              TRANSFERS AND CHANGES IN LENDING
      OFFICES

            	
              62

            
	
              27

            	
              VARIATIONS AND WAIVERS

            	
              65

            
	
              28

            	
              NOTICES

            	
              66

            
	
              29

            	
              SUPPLEMENTAL

            	
              68

            
	
              30

            	
              LAW AND JURISDICTION

            	
              68

            
	
              SCHEDULE 1  LENDERS AND
      COMMITMENTS

            	
              70

            
	
              SCHEDULE 2  DRAWDOWN NOTICE

            	
              71

            
	
              SCHEDULE 3  CONDITION PRECEDENT
      DOCUMENTS

            	
              72

            
	
              SCHEDULE 4  TRANSFER
    CERTIFICATE

            	
              77

            
	
              SCHEDULE 5  DESIGNATION NOTICE

            	
              81

            
	
              SCHEDULE 6  FORM OF COMPLIANCE
      CERTIFICATE

            	
              82

            

    

    

    

    

    

    

    
      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

    

    

    THIS LOAN AGREEMENT is made on
19 March 2008

    

    BETWEEN:

    

    
      	
              (1)

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

            

    

     

    
      	
              (2)

            	
              THE BANKS AND FINANCIAL
      INSTITUTIONS  listed in Schedule 1, as Lenders.

            

    

     

    
      	
              (3)

            	
              HSH NORDBANK AG as Swap
    Bank.

            

    

     

    
      	
              (4)

            	
              HSH NORDBANK AG as
    Bookrunner.

            

    

     

    
      	
              (5)

            	
              HSH NORDBANK AG as Mandated Lead Arranger,
      Facility Agent and Security
Trustee.

            

    

     

    
      	
              (6)

            	
              DnB NOR BANK ASA, London
      as
      Co-Arranger.

            

    

     

    WHEREAS

    

    
      	
              (A)

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

            

    

     

    
      	
               
      

            	
              (i)

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

            

    

     

    
      	
               
      

            	
              (ii)

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

            

    

     

    
      	
               
      

            	
              (iii)

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

            

    

     

    Subject
to the terms and conditions of this Agreement all amounts outstanding under the
revolving credit facility on the Termination Date shall on that date be
converted into a term loan facility which shall be repaid over a period of 5
years (or, through the operation of Clause 4.9, 2 years) in accordance with the
terms of this Agreement.

     

    
      	
              (B)

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

            

    

     

    
      	
              (C)

            	
              The
      Swap Bank has agreed to enter into interest rate swap transactions with
      the Borrower from time to time to hedge the Borrower’s exposure under this
      Agreement to interest rate
fluctuations.

            

    

     

    
      	
              (D)

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

            

    

     

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          Index

        

      

    

    

    IT IS AGREED as
follows:

    

    
      	
              1

            	
              INTERPRETATION

            

    

     

    
      	
              1.1

            	
              Definitions.  Subject
      to Clause 1.5, in this Agreement:

            

    

     

    “Accounting
Information”  means the annual audited consolidated accounts to
be provided by the Borrower to the Facility Agent in accordance with Clause
11.6(a)(i) of this Agreement or the quarterly unaudited management accounts of
the Borrower to be provided by the Borrower to the Facility Agent in accordance
with Clause 11.6(b)(i) of this Agreement (as the context may
require);

    

    “Additional
Advance”  means each Advance which is to be used in refinancing
or financing on delivery part of the purchase price of an Additional Ship or in
financing or refinancing part of the cost of acquiring the issued share capital
of an Additional Ship Owner and which is to be made available in accordance with
and pursuant to Clauses 2.1 and 4.2(c);

    

    “Additional
Ship”  means any ship which is, or is to be, purchased by an
Additional Ship Owner, each of which (unless all of the Lenders acting in their
absolute discretion agree otherwise) must satisfy all the Additional Ship
Requirements;

    

    “Additional Ship
MOA”  means, in relation to an Additional Ship, a memorandum of
agreement or a shipbuilding contract to be made between the Additional Ship
Seller of that Additional Ship and the Additional Ship Owner which is the buyer
thereof on terms and conditions acceptable to the Lenders and, in the plural,
mean all of them;

    

    “Additional Ship
Owner”  means a company which is or will be a direct or
indirect wholly-owned subsidiary of the Borrower incorporated in a jurisdiction
acceptable to the Lenders (in their absolute discretion) which shall be the
owner of an Additional Ship and, in the plural, means all of them;

     

    “Additional Ship
Requirements”  means, in relation to any Ship which is, or is
to be, purchased by an Additional Ship Owner, a ship which satisfies the
following requirements:

    

    
      	
               
      

            	
              (a)

            	
              it
      is a tanker built in or after 2002;

            

    

     

    
      	
               
      

            	
              (b)

            	
              it
      maintains the highest class with an Approved Classification Society free
      of any overdue recommendations and
conditions;

            

    

     

    
      	
               
      

            	
              (c)

            	
              it
      is to be registered on an Approved
Flag;

            

    

     

    “Additional Ship
Seller”  means, in relation to an Additional Ship, the seller
of such Additional Ship and, in the plural, means all of them;

     

    “Adrian”  means
Adrian Shipholding Inc., a corporation incorporated and existing under the laws
of the Republic of Marshall Islands and having its registered office at Trust
Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall
Islands;

    

    “Advance”  means the
principal amount of each borrowing by the Borrower under this
Agreement;

    

    “Affected
Lender”  has the meaning given in Clause 5.5;

    

    “Agency and Trust
Agreement”  means the agency and trust agreement executed or to
be executed between the Borrower, the Lenders, the Swap Bank and the Security
Trustee in such form as the Lenders may approve or require;

     

     

    
      
        
        

      

      
        2

        
          

        

      

      
        Index

      

    

     

     

    “ALKIVIADIS”  means
the 2006-built medium range product tanker of approximately 37,000 deadweight
tons registered in the ownership of Adrian under the Marshall Islands flag with
the name “ALKIVIADIS”;

    

    “AMORE MIO II”  means
the 2001-built Suezmax tanker of approximately 160,000 deadweight tons
registered in the ownership of Baymont under the Liberian flag with the name
“AMORE MIO II”;

    

    “Approved
Broker”  means each of H. Clarksons & Company Limited, RS
Platou, Galbraith’s Limited, E.A. Gibson Shipbrokers and Barry Rogliano Salles
and in the plural means all of them;

    

    “Approved Classification
Society”  means any of the following:

    

    
      	
               
      

            	
              (a)

            	
              American
      Bureau of Shipping;

            

    

     

    
      	
               
      

            	
              (b)

            	
              Bureau
      Veritas;

            

    

     

    
      	
               
      

            	
              (c)

            	
              Det
      Norske Veritas;

            

    

     

    
      	
               
      

            	
              (d)

            	
              Germanischer
      Lloyd;

            

    

     

    
      	
               
      

            	
              (e)

            	
              Korean
      Register of Shipping;

            

    

     

    
      	
               
      

            	
              (f)

            	
              Lloyd’s
      Register of Shipping;

            

    

     

    
      	
               
      

            	
              (g)

            	
              Nippon
      Kaiji Kyokai;

            

    

     

    
      	
               
      

            	
              (h)

            	
              Registro
      Italiano Navale; and

            

    

     

    in the
case of “ARISTOFANIS” only, China Classification Society;

    

    “Approved
Flag”  means the Liberian or Marshall Islands or Bahamas or
Greek or Malta flag or such flag as the Facility Agent may, with the
authorisation of all the Lenders, approve as the flag on which a Ship shall be
registered, such approval not to be unreasonably withheld;

    

    “Approved Flag
State”  means any country in which the Facility Agent may with
the authorisation of all the Lenders, approve that a Ship be registered, such
approval not to be unreasonably withheld;

    

    “Approved
Manager”  means, in relation to a Ship, Capital Ship Management
Corp., a company incorporated in Panama having its registered office at Hong
Kong Bank Building, 6th floor,
Samuel Lewis Avenue, Panama, Republic of Panama, or any other company which the
Lenders may approve (such approval not to be unreasonably withheld) from time to
time as the commercial, technical and/or operational manager of that
Ship;

    

    “Approved Manager’s
Undertaking”  means, in relation to each Ship, a letter of
undertaking executed or to be executed by the Approved Manager in favour of the
Security Trustee in the terms required by the Security Trustee agreeing certain
matters in relation to the Approved Manager serving as the manager of the Ship
and subordinating the rights of the Approved Manager against such Ship and the
Owner thereof to the rights of the Creditor Parties under the Finance Documents,
in such form as the Security Trustee, with the authorisation of the Majority
Lenders, may reasonably approve or require and in the plural means all of
them;

     

     

    
      
        
        

      

      
        3

        
          

        

      

      
        Index

      

    

    
 

    “ARISTIDIS”  means
the 2006-built medium range product tanker of approximately 37,000 deadweight
tons registered in the ownership of Atlantas under the Marshall Islands flag
with the name “ARISTIDIS”;

    

    “ARISTOFANIS”  means
the 2005-built chemical tanker of approximately 12,000 deadweight tons
registered in the ownership of Forbes under the Liberian flag with the name
“ARISTOFANIS”;

    

    “Atlantas”  means
Atlantas Shipping Company, a corporation incorporated and
existing  under the law of the Republic of the Marshall Islands and
having its registered office at Trust Company Complex, Ajeltake Road, Ajeltake
Island, Majuro, Marshall Islands;

    

    “Availability
Period”  means the period commencing on the date of this
Agreement and ending on:

    

    
      	
               
      

            	
              (a)

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

            

    

     

    
      	
               
      

            	
              (b)

            	
              if
      earlier, the date on which the Total Commitments are cancelled or
      terminated;

            

    

     

    “Balloon
Instalment”  has the meaning given to that term in Clause
8.2(b);

    

    “Bareboat Charter Security
Agreement”  means, in relation to any Ship which is subject to
a bareboat charter (other than any bareboat charter to which BP is a party)
(which charter may be entered into by the relevant Owner in accordance with
Clause 14.17), an agreement or agreements whereby the Security Trustee receives
an assignment of the rights of the relevant Owner under the bareboat charter and
certain undertakings from that Owner and the relevant charterer and, if so
agreed by the Security Trustee (acting with the authorisation of the Lenders),
agrees to give certain undertakings to that charterer, in each case, in such
form as the Majority Lenders may reasonably approve or require and, in the
plural, means all of them;

    

    “Baymont” means Baymont
Enterprises Incorporated, a corporation incorporated and exising under the laws
of the Liberia and having its registered office at 80 Broad Street, Monrovia,
Liberia

    

    “Borrower”  means
Capital Product Partners L.P., a limited partnership formed under the laws of
the Republic of the Marshall Islands and having its registered office at Trust
Company House, Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro,
the Marshall Islands;

    

    “BP”  means BP
Shipping Limited, a company incorporated in England whose registered office is
at Chartsey Road, Sunbury Upon Thames, Middlesex TW16 7BP, United
Kingdom;

    

    “Business Day”  means
a day on which banks are open in London, Hamburg, Athens and Piraeus and in
respect of a day on which a payment is required to be made under a Finance
Document, also in New York City;

    

    “Charterparty”  means
any bareboat charterparty or any time charterparty in respect of a Ship of a
duration (or capable of being or exceeding a duration) of 11 months or more,
made on terms and with a charterer acceptable in all respects to the Lenders,
such acceptance not to be unreasonably withheld;

     

     

    
      
        
        

      

      
        4

        
          

        

      

      
        Index

      

    

    
 

    “Charterparty
Assignment”  means, in relation to:

    

    
      	
               
      

            	
              (a)

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

            

    

     

    
      	
               
      

            	
              (b)

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

            

    

     

    in each
case, in such form as the Lenders may approve or require and, in the plural,
means all of them;

    

    “Closing Date”  means
a Business Day falling no later than 30 March 2008;

    

    “Co-Arranger”  means
DnB NOR Bank ASA, London, acting through its office at 20 St Dunstan’s Hill,
London EC3R 8HY, England;

    

    “Commitment”  means,
in relation to a Lender, the amount set opposite its name in Schedule 1, or, as
the case may require, the amount specified in the relevant Transfer Certificate,
as that amount may be reduced, cancelled or terminated in accordance with this
Agreement (and “Total
Commitments” means the aggregate of the Commitments of all the
Lenders);

    

    “Compliance
Certificate”  means a certificate in the form set out in
Schedule 6 (or in any other form which the Facility Agent, acting with the
authorisation of all the Lenders, approves or requires);

    

    “Confirmation”  and
“Early Termination
Date”, in relation to any continuing Designated Transaction, have the
meanings given in the Master Agreement;

    

    “Contractual
Currency”  has the meaning given in Clause 21.5;

    

    “Contribution”  means,
in relation to a Lender, the part of the Loan which is owing to that
Lender;

    

    “Creditor
Party”  means the Facility Agent, the Security Trustee, the
Mandated Lead Arranger, the Swap Bank or any Lender, whether as at the date of
this Agreement or at any later time;

    

    “Deed of Covenant” means, in
relation to a Ship registered or to be registered under Bahamas or Malta flag, a
deed of covenant collateral to the Mortgage of that Ship creating charges over
the Ship, executed or to be executed by the Owner of that Ship in favour of the
Security Trustee, in such form as the Lenders may approve or require, and in the
plural means all of them;

    

    “Designated Transaction” means
a Transaction which fulfils the following requirements:

     

    
      	
               
      

            	
              (a)

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

            

    

     

    
      	
               
      

            	
              (b)

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

            

    

     

     

    
      
        
        

      

      
        5

        
          

        

      

      
        Index

      

    

     

     

    
      	
               
      

            	
              (c)

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

            

    

     

    “Distribution Declaration Date”
means, in respect of each quarterly period during each Financial Year, a date
(being a Business Day) falling no later than 60 days after the end of the
relevant preceding financial quarter;

     

    “Dollars” and “$”  means the lawful
currency for the time being of the United States of America;

    

    “Drawdown
Date”  means, in relation to an Advance, the date requested by
the Borrower for the Advance to be made, or (as the context requires) the date
on which the Advance is actually made;

    

    “Drawdown
Notice”  means a notice in the form set out in Schedule 2 (or
in any other form which the Facility Agent, acting with the authorisation of all
the Lenders, approves or reasonably requires);

    

    “Earnings”  means, in
relation to a Ship, all moneys whatsoever which are now, or later become,
payable (actually or contingently) to the Owner owning the Ship or the Security
Trustee and which arise out of the use or operation of the Ship, including (but
not limited to):

    

    
      	
               
      

            	
              (a)

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

            

    

     

    
      	
               
      

            	
              (b)

            	
              all
      moneys which are at any time payable under Insurances in respect of loss
      of earnings; and

            

    

     

    
      	
               
      

            	
              (c)

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

            

    

     

    “Earnings
Account”  means, with respect to an Owner, an account in the
name of that Owner with the Facility Agent in Hamburg which is designated by the
Facility Agent in writing as the Earnings Account with respect to that Owner for
the purposes of this Agreement and in the plural means all of them;

    

    “Earnings Account
Pledge”  means, in relation to an Earnings Account, a deed of
pledge of that Earnings Account, in such form as the Lender may approve or
require, and in the plural means all of them;

    

    “EBITDA”  means, in
respect of the relevant period, the aggregate amount of consolidated or combined
pre-tax profits of the Group before extraordinary or exceptional items,
depreciation, interest, repayment of principal in respect of any loan, rentals
under finance leases and similar charges payable;

    

    “Environmental
Claim”  means:

    

    
      	
               
      

            	
              (a)

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

            

    

     

     

    
      
        
        

      

      
        6

        
          

        

      

      
        Index

      

    

     

     

    
      	
               
      

            	
              (b)

            	
              any
      claim by any other person which relates to an Environmental Incident or to
      an alleged Environmental Incident,

            

    

     

    and
“claim” means a claim
for damages, compensation, fines, penalties or any other payment of any kind
whether or not similar to the foregoing; an order or direction to take, or not
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;

    

    “Environmental
Incident”  means:

    

    
      	
               
      

            	
              (a)

            	
              any
      release of Environmentally Sensitive Material from a Ship;
    or

            

    

     

    
      	
               
      

            	
              (b)

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

            

    

     

    
      	
               
      

            	
              (c)

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

            

    

     

    “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;

    

    “Environmentally Sensitive
Material”  means oil, oil products and any other substance
(including any chemical, gas or other hazardous or noxious substance) which is
(or is capable of being or becoming) polluting, toxic or hazardous;

    

    “Event of
Default”  means any of the events or circumstances described in
Clause 19.1;

    

    “Existing
Charter”  means, in relation to:

    

    
      	
               
      

            	
              (a)

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

            

    

     

    
      	
               
      

            	
              (b)

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

            

    

     

    “Existing
Owners”  means each of:

    

    (a)           Adrian
Shipholding Inc. (“Adrian”);

     

    (b)           Atlantas
Shipping Company (“Atlantas”);

     

    (c)           Baymont
Enterprises Incorporated (“Baymont”); and

     

    (d)           Forbes
Maritime Co. (“Forbes”),

     

    each a
corporation incorporated under the laws of the Republic of the Marshall Islands
whose registered office is at Trust Company House, Trust Company Complex,
Ajeltake Road, Ajeltake Island, Majuro, the Marshall Islands or, in the case of
Baymont, under the laws of
Liberia, whose registered office is at 80 Broad Street, Monrovia, and, in the
singular, means one of them;

     

     

    
      
        
        

      

      
        7

        
          

        

      

      
        Index

      

    

    
 

    “Existing
Ships”  means, together, “AMORE MIO II”, “ARISTOFANIS”,
“ARISTIDIS” and “ALKIVIADIS” and in the singular means any of them;

    

    “Fee Letter” means a letter
issued or to be issued by the Borrower to the Facility Agent in which the
Borrower agrees to pay certain fees to the Facility Agent in connection with
this Agreement;

     

    “Finance
Documents”  means:

    

    
      	
               
      

            	
              (a)

            	
              this
      Agreement;

            

    

     

    
      	
               
      

            	
              (b)

            	
              the
      Master Agreement;

            

    

     

    
      	
               
      

            	
              (c)

            	
              the
      Agency and Trust Agreement;

            

    

     

    
      	
               
      

            	
              (d)

            	
              the
      Guarantees;

            

    

     

    
      	
               
      

            	
              (e)

            	
              the
      Master Agreement Assignment;

            

    

     

    
      	
               
      

            	
              (f)

            	
              the
      General Assignments;

            

    

     

    
      	
               
      

            	
              (g)

            	
              the
      Mortgages;

            

    

     

    
      	
               
      

            	
              (h)

            	
              the
      Deeds of Covenant;

            

    

     

    
      	
               
      

            	
              (i)

            	
              the
      Earnings Account Pledges;

            

    

     

    
      	
               
      

            	
              (j)

            	
              the
      Retention Account Pledge;

            

    

     

    
      	
               
      

            	
              (k)

            	
              the
      Swap Account Pledge;

            

    

     

    
      	
               
      

            	
              (l)

            	
              the
      Management Agreement Assignments;

            

    

     

    
      	
               
      

            	
              (m)

            	
              any
      Charterparty Assignments;

            

    

     

    
      	
               
      

            	
              (n)

            	
              any
      Bareboat Charter Security
Agreements;

            

    

     

    
      	
               
      

            	
              (o)

            	
              the
      Approved Manager’s Undertakings;
and

            

    

     

    
      	
               
      

            	
              (p)

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

            

    

     

    “Final Maturity
Date”  means 30 March 2018;

    

    “Financial
Indebtedness”  means, in relation to a person (the “debtor”),  a
liability of the debtor:

    

    
      	
               
      

            	
              (a)

            	
              for
      principal, interest or any other sum payable in respect of any moneys
      borrowed or raised by the debtor;

            

    

     

    
      	
               
      

            	
              (b)

            	
              under
      any loan stock, bond, note or other security issued by the
      debtor;

            

    

     

     

    
      
        
        

      

      
        8

        
          

        

      

      
        Index

      

    

     

    
      	
               
      

            	
              (c)

            	
              under
      any acceptance credit, guarantee or letter of credit facility made
      available to the debtor;

            

    

     

    
      	
               
      

            	
              (d)

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

            

    

     

    
      	
               
      

            	
              (e)

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

            

    

     

    
      	
               
      

            	
              (f)

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

            

    

     

    “Fleet
Vessels”  means all of the vessels (including, but not limited
to, the Ships) from time to time wholly owned by members of the Group (each a
“Fleet
Vessel”);

    

    “Forbes” means Forbes Maritime
Co., a corporation incorporated and existing under the laws of the Republic of
the Marshaall Islands and having its registered office at Trust Company Complex,
Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands.

    

    “General
Assignment”  means, in relation to a Ship, a general assignment
of the Earnings, the Insurances and any Requisition Compensation, in such form
as the Lenders may approve or require and in the plural means all of
them;

    

    “Group”  means the
Borrower and its subsidiaries (whether direct or indirect and including, but not
limited to, each Owner) from time to time during the Security
Period  and “member
of the Group” shall be construed accordingly;

    

    “Guarantee”  means,
in relation to an Owner, the guarantee to be given by that Owner in favour of
the Security Trustee, guaranteeing the obligations of the Borrower under this
Agreement and the other Finance Documents, in such form as the Lenders may
approve or require and in the plural means all of them;

    

    “Initial Borrowing
Date”  means the first Drawdown Date under this
Agreement;

    

    “Insurances”  means,
in relation to a Ship:

    

    
      	
               
      

            	
              (a)

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

            

    

     

    
      	
               
      

            	
              (b)

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

            

    

     

    “Interest
Period”  means a period determined in accordance with Clause
6;

    

    “ISM Code”  means, in
relation to its application to each Owner, its Ship and its
operation:

    

    
      	
               
      

            	
              (a)

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

            

    

     

     

    
      
        
        

      

      
        9

        
          

        

      

      
        Index

      

    

     

     

    
      	
               
      

            	
              (b)

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

            

    

     

    as the
same may be amended, supplemented or replaced from time to time;

    

    “ISM Code
Documentation”  includes:

    

    
      	
               
      

            	
              (a)

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

            

    

     

    
      	
               
      

            	
              (b)

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

            

    

     

    
      	
               
      

            	
              (c)

            	
              any
      other documents which are prepared or which are otherwise relevant to
      establish and maintain the Ships’ or the Owners’ compliance with the ISM
      Code which the Facility Agent may
require;

            

    

     

    “ISM SMS”  means the
safety management system for each Ship which is required to be developed,
implemented and maintained under the ISM Code;

    

    “ISPS Code”  means
the International Ship and Port Facility Security Code constituted pursuant to
resolution A.924 (22) of the International Maritime Organisation (“IMO”) adopted by a Diplomatic
conference of the IMO on Maritime Security on 13 December 2002 and now set out
in Chapter XI-2 of the Safety of Life at Sea Convention (SOLAS) 1974 (as
amended) to take effect on 1 July 2004;

     

    “ISSC”  means a valid
and current International Ship Security Certificate issued under the ISPS
Code;

     

    “Lender”  means,
subject to Clause 26.6:

    

    
      	
               
      

            	
              (a)

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

            

    

     

    
      	
               
      

            	
              (b)

            	
              the
      holder for the time being of a Transfer
  Certificate;

            

    

     

    “LIBOR”  means, for
an Interest Period:

     

    
      	
               
      

            	
              (a)

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

            

    

     

    
      	
               
      

            	
              (b)

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

            

    

     

     

    
      
        
        

      

      
        10

        
          

        

      

      
        Index

      

    

     

    “Liquid
Assets”  means, at any relevant time hereunder, the aggregate
of:

    

    
      	
               
      

            	
              (a)

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

            

    

     

    
      	
               
      

            	
              (b)

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

            

    

     

    
      	
               
      

            	
              (c)

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

            

    

     

    in each
case owned by the Borrower or any other member of the Group where:

    

    
      	
               
      

            	
              (i)

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

            

    

     

    
      	
               
      

            	
              (ii)

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

            

    

     

    “Loan”  means the
principal amount of the Advances for the time being outstanding under this
Agreement;

    

    “Major
Casualty”  means, in relation to a Ship, any casualty to the
Ship in respect of which the claim or the aggregate of the claims against all
insurers, before adjustment for any relevant franchise or deductible, exceeds
$750,000 or the equivalent in any other currency;

    

    “Majority
Lenders”  means:

    

    
      	
               
      

            	
              (a)

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

            

    

     

    
      	
               
      

            	
              (b)

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

            

    

     

    “Management
Agreement”  means, in relation to each Ship, an agreement made
or to be made between (i) the Owner of that Ship and (ii) the Approved Manager
in respect of the commercial and technical management of the Ship to be in form
and substance in all respects reasonably acceptable to the Lenders and, in the
plural, means both of them;

     

    “Management Agreement
Assignment”  means, in relation to each Management Agreement,
the first priority assignment of the rights and interests of the relevant Owner
under
that Management Agreement in such form as the Lenders may approve or require
and, in the plural, means all of them;

     

     

    
      
        
        

      

      
        11

        
          

        

      

      
        Index

      

    

     

    “Mandated Lead
Arranger”  means HSH Nordbank AG, acting through its office at
Gerhart-Hauptmann-Platz 50, 20095 Hamburg, Germany;

    

    “Mandatory Cost
Rate”  means, in relation to the Loan, the cost calculated as a
percentage rate per annum incurred by a Lender as a result of compliance with
any applicable regulatory or central bank requirements, including any reserve
costs imposed by the European Central Bank or the European System of Central
Banks;

    

    “Margin”  means,
subject to Clause 5.14, 1.10 per cent. per annum;

    

    “Market
Value”  means, in respect of each Ship and each Fleet Vessel,
the market value thereof determined from time to time in accordance with Clause
15.4;

    

    “Master Agreement” means a
master agreement (on the 1992 or, as the case may be, 2002 ISDA (Multicurrency -
Crossborder) form) made between the Borrower and the Swap Bank and includes all
Designated Transactions from time to time entered into and Confirmations from
time to time exchanged under the master agreement;

    

    “Master Agreement Assignment”
means the assignment of the Master Agreement in such form as the Lenders may
approve or require;

     

    “Mortgage”  means, in
relation to a Ship, the first preferred or, as the case may be, priority ship
mortgage on the Ship under the relevant Approved Flag executed by the Owner of
that Ship in favour of the Security Trustee, in such form as the Lenders may
approve or require;

    

    “Negotiation
Period”  has the meaning given in Clause 5.8;

    

    “Net Interest
Expenses”  means, in respect of the relevant
period:

    

    
      	
               
      

            	
              (a)

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

            

    

     

    
      	
               
      

            	
              (b)

            	
              the
      aggregate of all interest received by any member of the Group arising from
      any Liquid Assets and any net amounts received by any member of the Group
      under interest rate hedge
agreements;

            

    

     

    “Notifying
Lender”  has the meaning given in Clause 23.1 or Clause 24.1 as
the context requires;

    

    “Owner”  means:

    

    
      	
               
      

            	
              (a)

            	
              in
      relation to each Existing Ship, the Existing Owner thereof;
      and

            

    

     

    
      	
               
      

            	
              (b)

            	
              in
      relation to each Additional Ship, the Additional Ship Owner
      thereof;

            

    

     

    “Partnership
Agreement”  means the first amended and restated agreement of
limited partnership in respect of the Borrower made between Capital GP L.L.C., a
Marshall Islands limited liability company, as general partner, and Capital
Maritime and Trading Corp., a Marshall Islands corporation, as organisational
limited partner;

    

    “Payment
Currency”  has the meaning given in Clause 21.5;

    

    “Permitted Security
Interests”  means:

    

    
      	
               
      

            	
              (a)

            	
              Security
      Interests created by the Finance
Documents;

            

    

     

     

    
      
        
        

      

      
        12

        
          

        

      

      
        Index

      

    

     

    
      	
               
      

            	
              (b)

            	
              liens
      for unpaid crew’s wages in accordance with usual maritime
      practice;

            

    

     

    
      	
               
      

            	
              (c)

            	
              liens
      for salvage;

            

    

     

    
      	
               
      

            	
              (d)

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

            

    

     

    
      	
               
      

            	
              (e)

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

            

    

     

    
      	
               
      

            	
              (f)

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

            

    

     

    
      	
               
      

            	
              (g)

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

            

    

     

    “Pertinent Jurisdiction”, in
relation to a company, means:

    

    
      	
               
      

            	
              (a)

            	
              England
      and Wales;

            

    

     

    
      	
               
      

            	
              (b)

            	
              the
      country under the laws of which the company is incorporated or
      formed;

            

    

     

    
      	
               
      

            	
              (c)

            	
              a
      country in which the company’s central management and control is or has
      recently been exercised;

            

    

     

    
      	
               
      

            	
              (d)

            	
              a
      country in which the overall net income of the company is subject to
      corporation tax, income tax or any similar
tax;

            

    

     

    
      	
               
      

            	
              (e)

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

            

    

     

    
      	
               
      

            	
              (f)

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

            

    

     

    “Potential Event of
Default”  means an event or circumstance which, with the giving
of any notice, the lapse of time, a determination of the Majority Lenders and/or
the satisfaction of any other condition, would constitute an Event of
Default;

    

    “Quotation Date” means, in
relation to any Interest Period (or any other period for which an interest rate
is to be determined under any provision of a Finance Document), the day on which
quotations would ordinarily be given by leading banks in the London Interbank
Market
for deposits in the currency in relation to which such rate is to be determined
for delivery on the first day of that Interest Period or other
period;

     

    “Relevant Distribution Declaration
Date”  has the meaning given in Clause 8.2(a);

     

     

    
      
        
        

      

      
        13

        
          

        

      

      
        Index

      

    

     

    “Relevant
Person”  has the meaning given in Clause 19.9;

    

    “Repayment
Date”  means a date on which a repayment is required to be made
under Clause 8;

    

    “Repayment
Instalment”  has the meaning given to that item in Clause
8.2(b);

    

    “Requisition
Compensation”  includes all compensation or other moneys
payable by reason of any act or event such as is referred to in paragraph (b) of
the definition of “Total Loss”;

    

    “Retention Account” means an
account in the name of the Borrower with the Facility Agent in Hamburg
designated “Capital Product Partners L.P. - Retention Account” which is
designated by the Facility Agent in writing as the Retention Account for the
purposes of this Agreement and to which transfers are only to be made in the
circumstances referred to in Clause 8.2(a);

     

    “Retention Account Pledge”
means a pledge agreement creating security in favour of the Security Trustee in
respect of the Retention Account in such form as the Lenders may approve or
require;

     

    “Revolving
Facility”  means the aggregate principal amount of up to
$350,000,000 which may be drawn by the Borrower in accordance with the terms and
conditions of this Agreement or, as the context may require, the aggregate
principal amount of the Advances outstanding under this Agreement at any time
prior to the conversion of the Revolving Facility into the Term Loan pursuant to
Clause 8.1;

     

    “Secured
Liabilities”  means all liabilities which the Borrower, the
Security Parties or any of them have, at the date of this Agreement or at any
later time or times, under or by virtue of the Finance Documents or any judgment
relating to the Finance Documents; and for this purpose, there shall be
disregarded any total or partial discharge of these liabilities, or variation of
their terms, which is effected by, or in connection with, any bankruptcy,
liquidation, arrangement or other procedure under the insolvency laws of any
country;

    

    “Security Cover
Ratio”  means the ratio which is determined at any time by
comparing the aggregate Market Value of the Ships subject to a Mortgage at the
relevant time against the Loan;

    

    “Security
Interest”  means:

    

    
      	
               
      

            	
              (a)

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

            

    

     

    
      	
               
      

            	
              (b)

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

            

    

     

    
      	
               
      

            	
              (c)

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

            

    

     

    “Security
Party”  means each of the Owners and any other person (except a
Creditor Party and any charterer of any Ship) who, as a surety or mortgagor, as
a party to any subordination or priorities arrangement, or in any similar
capacity, executes a document falling within the final paragraph of the
definition of “Finance Documents”;

     

     

    
      
        
        

      

      
        14

        
          

        

      

      
        Index

      

    

    
 

    “Security
Period”  means the period commencing on the date of this
Agreement and ending on the date on which the Facility Agent notifies the
Borrower, the Security Parties and the Lenders that:

    

    
      	
               
      

            	
              (a)

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

            

    

     

    
      	
               
      

            	
              (b)

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

            

    

     

    
      	
               
      

            	
              (c)

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

            

    

     

    
      	
               
      

            	
              (d)

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

            

    

     

    “Security
Trustee”  means HSH Nordbank AG or any successor of it
appointed under clause 5 of the Agency and Trust Agreement;

    

    “Shell”  means Shell
International Trading & Shipping Ltd., acting through its office in London
or any wholly owned subsidiary of Royal Dutch Shell plc.;

    

    “Ships”  means,
together, the Existing Ships and the Additional Ships, and in the singular means
any of them;

    

    “Swap Account”  means
an account in the name of the Borrower with the Facility Agent in Hamburg
designated “Capital Product Partners L.P. - Swap Account”, which is designated
by the Facility Agent as the Swap Account for the purposes of this
Agreement;

    

    “Swap Account
Pledge”  means a pledge agreement creating security in favour
of the Security Trustee in respect of the Swap Account in such form as the
Lenders may approve or require;

    

    “Swap Bank”  means
HSH Nordbank AG acting through its office at Martensdamm 6, D-24103 Kiel,
Germany;

    

    “Swap Exposure” means, as at
any relevant date, the amount certified by the Swap Bank to the Facility Agent
to be the aggregate net amount in Dollars which would be payable by the Borrower
to the Swap Bank under (and calculated in accordance with) section 6(e)
(Payments on Early Termination) of the Master Agreement if an Early Termination
Date had occurred on the relevant date in relation to all continuing Designated
Transactions entered into between the Borrower and the Swap Bank;

    

    “Term Loan”  means,
on the Termination Date, the aggregate principal amount of all the Advances
(following the conversion of the Revolving Facility to the Term Loan pursuant
to Clause
8.1) and, at all times thereafter, the Loan for the time being outstanding under
this Agreement;

     

    
      “Termination
Date”  means 30 March 2013 (as such date may be extended
pursuant to Clause 4.9);

      

    

    
      
        
        

      

      
        15

        
          

        

      

      
        Index

      

    

     

    “Total Indebtedness”  means
the aggregate Financial Indebtedness of the Group as stated in the most recent
Accounting Information;

    

    “Total Loss”  means,
in relation to a Ship:

     

    
      	
               
      

            	
              (a)

            	
              actual,
      constructive, compromised, agreed or arranged total loss of the
      Ship;

            

    

     

    
      	
               
      

            	
              (b)

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

            

    

     

    
      	
               
      

            	
              (c)

            	
              any
      condemnation of the Ship by any tribunal or by any person or person
      claiming to be a tribunal;

            

    

     

    
      	
               
      

            	
              (d)

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

            

    

     

    “Total Loss
Date”  means, in relation to a Ship:

    

    
      	
               
      

            	
              (a)

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

            

    

     

    
      	
               
      

            	
              (b)

            	
              in
      the case of a constructive, compromised, agreed or arranged total loss of
      the Ship, the earliest of:

            

    

     

    
      	
               
      

            	
              (i)

            	
              the
      date on which a notice of abandonment is given to the insurers;
      and

            

    

     

    
      	
               
      

            	
              (ii)

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

            

    

     

    
      	
               
      

            	
              (c)

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

            

    

     

    “Tranche A”  means an
amount of up to $57,500,000 to be made available by the Lenders to the Borrower
in up to two Advances pursuant to the terms of this Agreement and which shall be
on-lent by the Borrower to the Owners of the Tranche A Ships to assist such
Owners in refinancing up to 50 per cent. of the aggregate Market Value of the
Tranche A Ships or, as the context may require, the aggregate principal amount
thereof outstanding at the relevant time under this Agreement;

    

    “Tranche A
Ships”  means, together, “AMORE MIO II” and “ARISTOFANIS” and
in the singular means either of them;

    

    “Tranche B”  means an
amount of up to $52,500,000 to be made available by the Lenders to the Borrower
in up to two Advances pursuant to the terms of this Agreement and which
shall be
on-lent by the Borrower to the Owners of the Tranche B Ships to assist such
Owners in refinancing up to 50 per cent. of the aggregate Market Value of the
Tranche B Ships or, as the context may require, the aggregate principal amount
thereof outstanding at the relevant time under this Agreement;

     

     

    
      
        
        

      

      
        16

        
          

        

      

      
        Index

      

    

    
 

    “Tranche B
Ships”  means, together, “ARISTIDIS” and “ALKIVIADIS”, and in
the singular means either of them;

    

    “Tranche C”  means an
amount of up to $240,000,000 to be made available by the Lenders to the Borrower
in multiple Advances (which shall not exceed the number of Additional Ships at
any relevant time subject to a Mortgage) pursuant to the terms of this Agreement
and which shall be on-lent by the Borrower to the Owners of the Additional Ships
to assist such Owners in financing up to 50 per cent. of the aggregate Market
Value of the Additional Ships or in part-financing the acquisition of shares in
an Additional Ship Owner or, as the context may require, the aggregate principal
amount thereof outstanding at the relevant time under this
Agreement;

    

    “Tranches”  mean
together,  Tranche A, Tranche B and Tranche C, and in the singular
means any of them;

    

    “Transaction”  has
the meaning given in the Master Agreement;

    

    “Transfer
Certificate”  has the meaning given in Clause
26.2;

    

    “Trust Property” has the
meaning given in clause 3.1 of the Agency and Trust Agreement; and

    

    “US GAAP”  means
generally accepted accounting principles as from time to time in effect in the
United States of America.

    

    
      	
              1.2

            	
              Construction of certain
      terms.  In this
Agreement:

            

    

     

    “approved”  means,
for the purposes of Clause 13, approved in writing by the Facility
Agent;

    

    “asset” includes every kind of
property, asset, interest or right, including any present, future or contingent
right to any revenues or other payment;

    

    “company” includes any
partnership, joint venture and unincorporated association;

    

    “consent” includes an
authorisation, consent, approval, resolution, licence, exemption, filing,
registration, notarisation and legalisation;

    

    “contingent liability” means a
liability which is not certain to arise and/or the amount of which remains
unascertained;

    

    “document” includes a deed;
also a letter, fax or telex;

    

    “excess
risks”  means, in relation to a Ship, the proportion of claims
for general average, salvage and salvage charges not recoverable under the hull
and machinery policies in respect of the Ship in consequence of her insured
value being less than the value at which the Ship is assessed for the purpose of
such claims;

    

    “expense” means any kind of
cost, charge or expense (including all legal costs, charges and expenses) and
any applicable value added or other tax;

    

    “law” includes any form of
delegated legislation, any order or decree, any treaty or international
convention and any regulation or resolution of the Council of the European
Union, the European Commission, the United Nations or its Security
Council;

    

    “legal or administrative
action” means any legal proceeding or arbitration and any administrative
or regulatory action or investigation;

     

     

    
      
        
        

      

      
        17

        
          

        

      

      
        Index

      

    

    
 

    “liability” includes every kind
of debt or liability (present or future, certain or contingent), whether
incurred as principal or surety or otherwise;

    

    “months”  shall be
construed in accordance with Clause 1.3;

    

    “obligatory
insurances”  means, in relation to a Ship, all insurances
effected, or which the Borrower owning the Ship is obliged to effect, under
Clause 13 below or any other provision of this Agreement or another Finance
Document;

    

    “parent company”  has
the meaning given in Clause 1.4;

    

    “person”  includes
any company; any state, political sub-division of a state and local or municipal
authority; and any international organisation;

    

    “policy”, in relation to any
insurance, includes a slip, cover note, certificate of entry or other document
evidencing the contract of insurance or its terms;

    

    “protection and indemnity
risks”  means the usual risks covered by a protection and
indemnity association managed in London, including pollution risks and the
proportion (if any) of any sums payable to any other person or persons in case
of collision which are not recoverable under the hull and machinery policies by
reason of the incorporation therein of clause 1 of the Institute Time Clauses
(Hulls)(1/10/83) or clause 8 of the Institute Time Clauses (Hulls) (1/11/1995)
or the Institute Amended Running Down Clause (1/10/71) or any equivalent
provision;

    

    “regulation” includes any
regulation, rule, official directive, request or guideline (either having the
force of law or compliance with which is reasonable in the ordinary course of
business of the party concerned) of any governmental, intergovernmental or
supranational body, agency, department or regulatory, self-regulatory or other
authority or organisation;

    

    “subsidiary”  has the
meaning given in Clause 1.4;

    

    “successor” includes any person
who is entitled (by assignment, novation, merger or otherwise) to any other
person’s rights under this Agreement or any other Finance Document (or any
interest in those rights) or who, as administrator, liquidator or otherwise, is
entitled to exercise those rights; and in particular references to a successor
include a person to whom those rights (or any interest in those rights) are
transferred or pass as a result of a merger, division, reconstruction or other
reorganisation of it or any other person;

    

    “tax”  includes any
present or future tax, duty, impost, levy or charge of any kind which is imposed
by any state, any political sub-division of a state or any local or municipal
authority (including any such imposed in connection with exchange controls), and
any connected penalty, interest or fine; and

    

    “war risks”  means
the risks according to Institute War and Strike Clauses (Hull Time) (1/10/83) or
(1/11/95), or equivalent conditions, including, but not limited to risk of
mines, blocking and trapping, missing vessel, confiscation and all risks
excluded from the standard form of English or other marine policy.

    

    
      	
              1.3

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

            

    

     

    
      	
              (a)

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

            

    

     

     

    
      
        
        

      

      
        18

        
          

        

      

      
        Index

      

    

     

    
      	
              (b)

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

            

    

     

    and
“month” and “monthly” shall be construed
accordingly.

    

    
      	
              1.4

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

            

    

     

    
      	
              (a)

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

            

    

     

    
      	
              (b)

            	
              P
      has direct or indirect control over a majority of the voting rights
      attached to the issued shares of S;
or

            

    

     

    
      	
              (c)

            	
              P
      has the direct or indirect power to appoint or remove a majority of the
      directors of S,

            

    

     

               and
any company of which S is a subsidiary is a parent company of S.

    

    
      	
              1.5

            	
              General
      Interpretation.

            

    

     

    
      	
              (a)

            	
              In
      this Agreement:

            

    

     

    
      	
               
      

            	
              (i)

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

            

    

     

    
      	
               
      

            	
              (ii)

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

            

    

     

    
      	
               
      

            	
              (iii)

            	
              words
      denoting the singular number shall include the plural and vice
      versa.

            

    

     

    
      	
              (b)

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

            

    

     

    
      	
              (c)

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

            

    

     

    
      	
              (d)

            	
              The
      clause headings shall not affect the interpretation of this
      Agreement.

            

    

     

    
      	
              2

            	
              FACILITY

            

    

     

    
      	
              2.1

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

            

    

     

    
      	
              (a)

            	
              Tranche
      A shall be in an amount not exceeding
  $57,500,000;

            

    

     

    
      	
              (b)

            	
              Tranche
      B shall be in an amount not exceeding
  $52,500,000;

            

    

     

    
      	
              (c)

            	
              Tranche
      C shall be in an amount not exceeding $240,000,000;
  and

            

    

     

     

    
      
        
        

      

      
        19

        
          

        

      

      
        Index

      

    

     

    
      	
              (d)

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

            

    

     

    
      	
              2.2

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

            

    

     

    
      	
              3

            	
              POSITION OF THE LENDERS, THE SWAP BANK AND THE
      MAJORITY LENDERS

            

    

     

    
      	
              3.1

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

            

    

     

    
      	
              (a)

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

            

    

     

    
      	
              (b)

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

            

    

     

    without
joining the Facility Agent, the Security Trustee, any other Lender or the Swap
Bank as additional parties in the proceedings.

     

    
      	
              3.2

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

            

    

     

    
      	
              (a)

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

            

    

     

    
      	
              (b)

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

            

    

     

    
      	
              3.3

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

            

    

     

    
      	
              (a)

            	
              the
      obligations of the other Lenders being increased;
  nor

            

    

     

    
      	
              (b)

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

            

    

     

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

            

    

    

    
      	
              3.4

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

            

    

     

    
      	
              (a)

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

            

    

     

    
      	
              (b)

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

            

    

     

     

    
      
        
        

      

      
        20

        
          

        

      

      
        Index

      

    

     

    
      	
              (c)

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

            

    

     

    
      	
              3.5

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

            

    

     

    
      	
              (a)

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

            

    

     

    
      	
              (b)

            	
              shall
      not be entitled to require any evidence that such an instruction or
      authorisation has been given.

            

    

     

    
      	
              3.6

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

            

    

     

    
      	
              4

            	
              DRAWDOWN

            

    

     

    
      	
              4.1

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

            

    

     

    
      	
              4.2

            	
              Availability.  The
      conditions referred to in Clause 4.1 are
that:

            

    

     

    
      	
              (a)

            	
              a
      Drawdown Date has to be a Business Day during the Availability
      Period;

            

    

     

    
      	
              (b)

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

            

    

     

    
      	
              (c)

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

            

    

     

    
      	
               
      

            	
              (i)

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

            

    

     

    
      	
               
      

            	
              (ii)

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

            

    

     

    
      	
               
      

            	
              (iii)

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

            

    

     

     

    
      
        
        

      

      
        21

        
          

        

      

      
        Index

      

    

     

    
      	
              (d)

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

            

    

     

    
      	
              4.3

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

            

    

     

    
      	
              4.4

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

            

    

     

    
      	
              (a)

            	
              the
      amount of the Advance and the Drawdown
Date;

            

    

     

    
      	
              (b)

            	
              the
      amount of that Lender’s participation in the Advance;
  and

            

    

     

    
      	
              (c)

            	
              the
      duration of the first Interest
Period.

            

    

     

    
      	
              4.5

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

            

    

     

    
      	
              4.6

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

            

    

     

    
      	
              4.7

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

            

    

     

    
      	
              (a)

            	
              to
      such account which the Borrower specifies in the Drawdown Notice;
      and

            

    

     

    
      	
              (b)

            	
              in
      the like funds as the Facility Agent received the payments from the
      Lenders.

            

    

     

    
      	
              4.8

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

            

    

     

    
      	
              4.9

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

            

    

     

     

    
      
        
        

      

      
        22

        
          

        

      

      
        Index

      

    

     

    
      	
              5

            	
              INTEREST

            

    

     

    
      	
              5.1

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

            

    

     

    
      	
              5.2

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

            

    

     

    
      	
              (a)

            	
              the
      applicable Margin; and

            

    

     

    
      	
              (b)

            	
              LIBOR
      for that Interest Period.

            

    

     

    
      	
              5.3

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

            

    

     

    
      	
              5.4

            	
              Notification of Interest
      Periods and rates of normal interest.  The Facility Agent
      shall notify the Borrower and each Lender
of:

            

    

     

    
      	
              (a)

            	
              each
      rate of interest; and

            

    

     

    
      	
              (b)

            	
              the
      duration of each Interest Period,

            

    

     

    as soon
as reasonably practicable after each is determined.

    

    
      	
              5.5

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

            

    

     

    
      	
              (a)

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

            

    

     

    
      	
              (b)

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

            

    

     

    
      	
              (c)

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

            

    

     

    
      	
              5.6

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

            

    

     

    
      	
              5.7

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

            

    

     

    
      	
              (a)

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

            

    

     

     

    
      
        
        

      

      
        23

        
          

        

      

      
        Index

      

    

     

    
      	
              (b)

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

            

    

     

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

            

    

    

    
      	
              5.8

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

            

    

     

    
      	
              5.9

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

            

    

     

    
      	
              5.10

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

            

    

     

    
      	
              5.11

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

            

    

     

    
      	
              5.12

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

            

    

     

    
      	
              (a)

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

            

    

     

    
      	
              (b)

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

            

    

     

    
      	
              5.13

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

            

    

     

    
      	
              5.14

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

            

    

     

     

    
      
        
        

      

      
        24

        
          

        

      

      
        Index

      

    

     

    
      	
              (a)

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

            

    

     

    
      	
              (b)

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

            

    

     

    
      	
              6

            	
              INTEREST
PERIODS

            

    

     

    
      	
              6.1

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

            

    

     

    
      	
              6.2

            	
              Duration of normal Interest
      Periods.  Subject to Clauses 6.3 and 6.4, each Interest
      Period in respect of each Advance shall
be:

            

    

     

    
      	
              (a)

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

            

    

     

    
      	
              (b)

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

            

    

     

    
      	
              (c)

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

            

    

     

    
      	
              (d)

            	
              such
      other period as the Borrower may request from the Facility Agent, which
      may be agreed by the Facility Agent

            

    

     

    Provided that no more than 6
Interest Periods in aggregate of 1-month’s duration may be current at any
time.

    

    
      	
              6.3

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

            

    

     

    
      	
              6.4

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

            

    

     

    
      	
              7

            	
              DEFAULT
INTEREST

            

    

     

    
      	
              7.1

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

            

    

     

     

    
      
        
        

      

      
        25

        
          

        

      

      
        Index

      

    

     

    
      	
              (a)

            	
              the
      date on which the Finance Documents provide that such amount is due for
      payment; or

            

    

     

    
      	
              (b)

            	
              if
      a Finance Document provides that such amount is payable on demand, the
      date on which the demand is served;
or

            

    

     

    
      	
              (c)

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

            

    

     

    
      	
              7.2

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

            

    

     

    
      	
              (a)

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

            

    

     

    
      	
              (b)

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

            

    

     

    
      	
              7.3

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

            

    

     

    
      	
              (a)

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

            

    

     

    
      	
              (b)

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

            

    

     

    
      	
               
      

            	
              (i)

            	
              LIBOR;
      or

            

    

     

    
      	
               
      

            	
              (ii)

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

            

    

     

    
      	
              7.4

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

            

    

     

    
      	
              7.5

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

            

    

     

    
      	
              7.6

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

            

    

     

    
      	
              7.7

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

            

    

     

     

    
      
        
        

      

      
        26

        
          

        

      

      
        Index

      

    

     

    
      	
              8

            	
              CONVERSION TO TERM LOAN;  REPAYMENT
      AND PREPAYMENT

            

    

     

    
      	
              8.1

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

            

    

     

    
      	
              8.2

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

            

    

     

    
      	
              (a)

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

            

    

     

    
      	
              (b)

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

            

    

     

    
      	
              8.3

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

            

    

     

    
      	
              8.4

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

            

    

     

    
      	
              8.5

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

            

    

     

    
      	
              8.6

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

            

    

     

    
      	
              8.7

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

            

    

     

    
      	
              (a)

            	
              a
      partial prepayment shall be $1,000,000 or a multiple of
      $1,000,000;

            

    

     

     

    
      
        
        

      

      
        27

        
          

        

      

      
        Index

      

    

     

    
      	
              (b)

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

            

    

     

    
      	
              (c)

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

            

    

     

    
      	
              8.8

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

            

    

     

    
      	
              8.9

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

            

    

     

    
      	
              8.10

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

            

    

     

    
      	
              (a)

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

            

    

     

    
      	
              (b)

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

            

    

     

    In this
Clause 8.10, “Relevant
Amount”  means an amount which, after giving credit for the
amount of the prepayment made pursuant to this Clause 8.10, results in the
Security Cover Ratio being equal to the higher of (i) the Security Cover Ratio
maintained immediately prior to the prepayment made pursuant to this Clause 8.10
and (ii) the Security Cover Ratio referred to in Clause 15.1.

    

    
      	
              8.11

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

            

    

     

    
      	
              8.12

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

            

    

     

    
      	
              8.13

            	
              Reborrowing.

            

    

     

    
      	
              (a)

            	
              No
      amount of the Term Loan prepaid may be
  reborrowed.

            

    

     

    
      	
              (b)

            	
              Subject
      to the terms of this Agreement, any amount of the Revolving Facility
      repaid or prepaid may be
reborrowed.

            

    

     

    
      	
              8.14

            	
              Unwinding of Designated
      Transactions.  On or prior to any repayment or prepayment
      of the Loan under this Clause 8 or any other provision of this Agreement,
      the Borrower shall wholly or partially reverse, offset, unwind or
      otherwise terminate one or more of the continuing Designated Transactions
      to the extent necessary to ensure that the notional principal
      amount of the continuing Designated Transactions thereafter remaining does
      not and will not in the future (taking into account the scheduled
      amortisation) exceed the amount of the Loan as reducing from time to time
      thereafter pursuant to Clause
8.2.

            

    

     

     

    
      
        
        

      

      
        28

        
          

        

      

      
        Index

      

    

     

    
      	
              8.15

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

            

    

     

    
      	
              9

            	
              CONDITIONS
  PRECEDENT

            

    

     

    
      	
              9.1

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

            

    

     

    
      	
              (a)

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

            

    

     

    
      	
              (b)

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

            

    

     

    
      	
              (c)

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

            

    

     

    
      	
              (d)

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

            

    

     

    
      	
              (e)

            	
              that
      both at the date of each Drawdown Notice and at each Drawdown
      Date:

            

    

     

    
      	
               
      

            	
              (i)

            	
              no
      Event of Default or Potential Event of Default has occurred and is
      continuing or would result from the borrowing of the relevant Advance;
      and

            

    

     

    
      	
               
      

            	
              (ii)

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

            

    

     

    
      	
               
      

            	
              (iii)

            	
              none
      of the circumstances contemplated by Clause 5.5 has occurred and is
      continuing;

            

    

     

    
      	
               
      

            	
              (iv)

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

            

    

     

    
      	
               
      

            	
              (v)

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

            

    

     

    
      	
               
      

            	
              (vi)

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

            

    

     

     

    
      
        
        

      

      
        29

        
          

        

      

      
        Index

      

    

     

    
      	
              (f)

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

            

    

     

    
      	
              (g)

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

            

    

     

    
      	
              9.2

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

            

    

     

    
      	
              10

            	
              REPRESENTATIONS AND
      WARRANTIES

            

    

     

    
      	
              10.1

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

            

    

     

    
      	
              10.2

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

            

    

     

    
      	
              10.3

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

            

    

     

    
      	
              10.4

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

            

    

     

    
      	
              (a)

            	
              to
      own and register the Existing Ship owned by it under the relevant Approved
      Flag;

            

    

     

    
      	
              (b)

            	
              to
      enter into, and perform its obligations under, the Existing Charter to
      which it is a party;

            

    

     

    
      	
              (c)

            	
              to
      execute the Finance Documents to which the Borrower is a party;
      and

            

    

     

    
      	
              (d)

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

            

    

     

    
      	
              10.5

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

            

    

     

    
      	
              10.6

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

            

    

     

    
      	
              (a)

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

            

    

     

    
      	
              (b)

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

            

    

     

    subject
to any relevant insolvency laws affecting creditors’ rights
generally.

     

     

    
      
        
        

      

      
        30

        
          

        

      

      
        Index

      

    

    
 

    
      	
              10.7

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

            

    

     

    
      	
              (a)

            	
              the
      Borrower will have the right to create all the Security Interests which
      that Finance Document purports to create;
and

            

    

     

    
      	
              (b)

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

            

    

     

    
      	
              10.8

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

            

    

     

    
      	
              (a)

            	
              any
      law or regulation; or

            

    

     

    
      	
              (b)

            	
              the
      constitutional documents of the Borrower;
or

            

    

     

    
      	
              (c)

            	
              any
      contractual or other obligation or restriction which is binding on the
      Borrower or any of its assets.

            

    

     

    
      	
              10.9

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

            

    

     

    
      	
              10.10

            	
              No
      default.  No Event of Default has occurred and is
      continuing.

            

    

     

    
      	
              10.11

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

            

    

     

    
      	
              10.12

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

            

    

     

    
      	
              10.13

            	
              Validity
      and completeness of Existing
Charters.

            

    

     

    
      	
              (a)

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

            

    

     

    
      	
              (b)

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

            

    

     

    
      	
            	
              10.14

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

            

    

     

    
      	
            	
              10.15

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

            

    

     

    
      	
            	
              10.16

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

            

    

     

     

    
      
        
        

      

      
        31

        
          

        

      

      
        Index

      

    

     

    
      	
            	
              10.17

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

            

    

     

    
      	
              11

            	
              GENERAL
  UNDERTAKINGS

            

    

     

    
      	
              11.1

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

            

    

     

    
      	
              11.2

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

            

    

     

    
      	
              (a)

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

            

    

     

    
      	
              (b)

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

            

    

     

    
      	
              (c)

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

            

    

     

    
      	
              11.3

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

            

    

     

    
      	
              (a)

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

            

    

     

    
      	
              (b)

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

            

    

     

    
      	
              11.4

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

            

    

     

    
      	
              11.5

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

            

    

     

     

    
      
        
        

      

      
        32

        
          

        

      

      
        Index

      

    

     

    
      	
              11.6

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

            

    

     

    
      	
              (a)

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

            

    

     

    
      	
              (b)

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

            

    

     

    
      	
               
      

            	
              (i)

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

            

    

     

    
      	
               
      

            	
              (ii)

            	
              the
      management accounts of each Owner for that 3-month period certified as to
      their correctness by an officer of the
Borrower;

            

    

     

    
      	
              (c)

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

            

    

     

    
      	
              11.7

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

            

    

     

    
      	
              (a)

            	
              be
      prepared in accordance with all applicable laws and US GAAP consistently
      applied;

            

    

     

    
      	
              (b)

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

            

    

     

    
      	
              (c)

            	
              fully
      disclose or provide for all significant liabilities of the relevant person
      and its subsidiaries.

            

    

     

    
      	
              11.8

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

            

    

     

    
      	
              11.9

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

            

    

     

    
      	
              (a)

            	
              for
      the Borrower to perform its obligations under any
      Finance  Document to which it is
  party;

            

    

     

    
      	
              (b)

            	
              for
      the validity or enforceability of any Finance Document to which it is
      party; and

            

    

     

    
      	
              (c)

            	
              for
      each Owner to continue to own and operate the Ship owned by
      it,

            

    

     

    and the
Borrower will comply (or procure compliance as the case may be) with the terms
of all such consents.

    

    
      	
            	
              11.10

            	
              Maintenance of Security
      Interests.  The Borrower
will:

            

    

     

    
      	
              (a)

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

            

    

     

    
      	
              (b)

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

            

    

     

     

    
      
        
        

      

      
        33

        
          

        

      

      
        Index

      

    

     

    
      	
            	
              11.11

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

            

    

     

    
      	
            	
              11.12

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

            

    

     

    
      	
              (a)

            	
              agree
      to any amendment or supplement to, or waive or fail to enforce, the Master
      Agreement or any of its provisions;
or

            

    

     

    
      	
              (b)

            	
              enter
      into any Transaction pursuant to the Master Agreement except Designated
      Transactions.

            

    

     

    
      	
            	
              11.13

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

            

    

     

    
      	
            	
              11.14

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

            

    

     

    
      	
            	
              11.15

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

            

    

     

    
      	
              (a)

            	
              states
      that no Event of Default has occurred;
or

            

    

     

    
      	
              (b)

            	
              states
      that no Event of Default has occurred, except for a specified event or
      matter, of which all material details are
given,

            

    

     

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

            

    

    

    
      	
            	
              11.16

            	
              Notification of
      default.  The Borrower will notify the Facility Agent as
      soon as the Borrower becomes aware
of:

            

    

     

    
      	
              (a)

            	
              the
      occurrence of an Event of Default;
or

            

    

     

    
      	
              (b)

            	
              any
      matter which indicates that an Event of Default may have
      occurred,

            

    

     

    
      and will
thereafter keep the Facility Agent fully up-to-date with all
developments.

    

     

    
      	
            	
              11.17

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

            

    

     

    
      	
              (a)

            	
              to
      the Borrower, the Ships, their Insurances, their Earnings or the Owners;
      or

            

    

     

    
      	
              (b)

            	
              to
      any other matter relevant to, or to any provision of, a Finance
      Document,

            

    

     

     

    
      
        
        

      

      
        34

        
          

        

      

      
        Index

      

    

     

    which may
be requested by the Facility Agent, the Security Trustee or any Lender at any
time.

    

    
      	
            	
              11.18

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

            

    

     

    
      	
            	
              11.19

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

            

    

     

    
      	
            	
              11.20

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

            

    

     

    
      	
            	
              11.21

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

            

    

     

    
      	
              12

            	
              CORPORATE
  UNDERTAKINGS

            

    

     

    
      	
              12.1

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

            

    

     

    
      	
              12.2

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

            

    

     

    
      	
              12.3

            	
              Negative
      undertakings.  The Borrower will
  not:

            

    

     

    
      	
              (a)

            	
              change
      the nature of its business; or

            

    

     

    
      	
              (b)

            	
              pay
      any dividend or make any other form of distribution or effect any form of
      redemption, purchase or return of share capital Provided that the
      Borrower may make a distribution
if:

            

    

     

    
      	
               
      

            	
              (i)

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

            

    

     

    
      	
               
      

            	
              (ii)

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

            

    

     

     

    
      
        
        

      

      
        35

        
          

        

      

      
        Index

      

    

     

    
      	
              (c)

            	
              provide
      any form of credit or financial assistance
to:

            

    

     

    
      	
               
      

            	
              (i)

            	
              a
      person who is directly or indirectly interested in the Borrower’s share or
      loan capital; or

            

    

     

    
      	
               
      

            	
              (ii)

            	
              any
      company in or with which such a person is directly or indirectly
      interested or connected,

            

    

     

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

            

    

    

    
      	
              (d)

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

            

    

     

    
      	
              (e)

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

            

    

     

    
      	
              12.4

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

            

    

     

    
      	
              (a)

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

            

    

     

    
      	
              (b)

            	
              take
      or enforce any Security Interest for any such amount;
  or

            

    

     

    
      	
              (c)

            	
              claim
      to set-off any such amount against any amount payable by the Borrower to
      any Owner.

            

    

     

    
      	
              12.5

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

            

    

     

    
      	
              (a)

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

            

    

     

    
      	
              (b)

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

            

    

     

    
      	
              (c)

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

            

    

     

    
      	
              12.6

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

            

    

     

     

    
      
        
        

      

      
        36

        
          

        

      

      
        Index

      

    

     

    
      	
              12.7

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

            

    

     

    
      	
              12.8

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

            

    

     

    
      	
              (a)

            	
              syndicate
      or issue or attempt to syndicate or issue;
or

            

    

     

    
      	
              (b)

            	
              announce
      or authorise the announcement of the syndication or issuance of;
      or

            

    

     

    
      	
              (c)

            	
              engage
      in discussions concerning the syndication or issuance
  of,

            

    

     

    any
Financial Indebtedness with any banks or financial institutions in the
commercial banking market Provided that this shall not
restrict the Borrower from incurring any further Financial Indebtedness to banks
or financial institutions (other than the Lenders) subject to the Facility Agent
having been given the opportunity to match the terms and conditions of any
financing offered to the Borrower.

    

    
      	
              13

            	
              INSURANCE

            

    

     

    
      	
              13.1

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

            

    

     

    
      	
              13.2

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

            

    

     

    
      	
              (a)

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

            

    

     

    
      	
              (b)

            	
              war
      risks; and

            

    

     

    
      	
              (c)

            	
              protection
      and indemnity risks in excess of the limit of cover for oil pollution
      liability risks included within the protection and indemnity risks;
      and

            

    

     

    
      	
              (d)

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

            

    

     

    
      	
              13.3

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

            

    

     

    
      	
              (a)

            	
              in
      Dollars;

            

    

     

    
      	
              (b)

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

            

    

     

     

    
      
        
        

      

      
        37

        
          

        

      

      
        Index

      

    

     

    
      	
              (c)

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

            

    

     

    
      	
              (d)

            	
              in
      relation to protection and indemnity risks in respect of the full value
      and tonnage of the Ship owned by that
Owner;

            

    

     

    
      	
              (e)

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

            

    

     

    
      	
              (f)

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

            

    

     

    
      	
              13.4

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

            

    

     

    
      	
              (a)

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

            

    

     

    
      	
              (b)

            	
              name
      the Security Trustee as sole loss payee with such directions for payment
      as the Security Trustee may
specify;

            

    

     

    
      	
              (c)

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

            

    

     

    
      	
              (d)

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

            

    

     

    
      	
              (e)

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

            

    

     

    
      	
              (f)

            	
              provide
      that the Security Trustee may make proof of loss if the Owners fail to do
      so;  and

            

    

     

    
      	
              (g)

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

            

    

     

     

    
      
        
        

      

      
        38

        
          

        

      

      
        Index

      

    

     

    
      	
              13.5

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

            

    

     

    
      	
              (a)

            	
              at
      least 21 days before the expiry of any obligatory
    insurance:

            

    

     

    
      	
               
      

            	
              (i)

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

            

    

     

    
      	
               
      

            	
              (ii)

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

            

    

     

    
      	
              (b)

            	
              at
      least 14 days before the expiry of any obligatory insurance, renew the
      insurance; and

            

    

     

    
      	
              (c)

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

            

    

     

    
      	
              13.6

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

            

    

     

    
      	
              (a)

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

            

    

     

    
      	
              (b)

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

            

    

     

    
      	
              (c)

            	
              they
      will advise the Security Trustee immediately of any material change to the
      terms of the obligatory insurances;

            

    

     

    
      	
              (d)

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

            

    

     

    
      	
              (e)

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

            

    

     

    
      	
              13.7

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

            

    

     

    
      	
              (a)

            	
              a
      certified copy of the certificate of entry for that Ship;
    and

            

    

     

     

    
      
        
        

      

      
        39

        
          

        

      

      
        Index

      

    

     

    
      	
              (b)

            	
              a
      letter or letters of undertaking in such form as may be required by the
      Majority Lenders; and

            

    

     

    
      	
              (c)

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

            

    

     

    
      	
              (d)

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

            

    

     

    
      	
              13.8

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

            

    

     

    
      	
              13.9

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

            

    

     

    
      	
            	
              13.10

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

            

    

     

    
      	
            	
              13.11

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

            

    

     

    
      	
            	
              13.12

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

            

    

     

    
      	
              (a)

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

            

    

     

    
      	
              (b)

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

            

    

     

    
      	
              (c)

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

            

    

     

    
      	
              (d)

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

            

    

     

     

    
      
        
        

      

      
        40

        
          

        

      

      
        Index

      

    

     

    
      	
            	
              13.13

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

            

    

     

    
      	
            	
              13.14

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

            

    

     

    
      	
            	
              13.15

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

            

    

     

    
      	
              (a)

            	
              the
      approved brokers; and

            

    

     

    
      	
              (b)

            	
              the
      approved protection and indemnity and/or war risks associations;
      and

            

    

     

    
      	
              (c)

            	
              the
      approved insurance companies and/or underwriters, which relate directly or
      indirectly to:

            

    

     

    
      	
               
      

            	
              (i)

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

            

    

     

    
      	
               
      

            	
              (ii)

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

            

    

     

    
      	
            	
              13.16

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

            

    

     

    
      	
              (a)

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

            

    

     

    
      	
              (b)

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

            

    

    

    
      	
            	
              13.17

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

            

    

     

    
      	
              (a)

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

            

    

     

     

    
      
        
        

      

      
        41

        
          

        

      

      
        Index

      

    

     

    
      	
               
      

            	
              (i)

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

            

    

     

    
      	
               
      

            	
              (ii)

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

            

    

     

    
      	
               
      

            	
              (iii)

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

            

    

     

    
      	
              (b)

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

            

    

     

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

            

    

    

    
      	
            	
              13.18

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

            

    

     

    
      	
            	
              13.19

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

            

    

     

    
      	
            	
              13.20

            	
              Compliance with mortgagee’s
      instructions.  The Security Trustee shall be entitled
      (without prejudice to or limitation of any other rights which it may have
      or acquire under any Finance Document) to require a Ship to remain at any
      safe port or to proceed to and remain at any safe port designated by the
      Security Trustee until the relevant Owner implements any amendments to the
      terms of the obligatory insurances and any operational changes required as
      a result of a notice served under Clause
13.19.

            

    

     

     

    
      
        
        

      

      
        42

        
          

        

      

      
        Index

      

    

     

    
      	
              14

            	
              SHIP
COVENANTS

            

    

     

    
      	
              14.1

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

            

    

     

    
      	
              14.2

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

            

    

     

    
      	
              14.3

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

            

    

     

    
      	
              (a)

            	
              consistent
      with first-class ship ownership and management
  practice;

            

    

     

    
      	
              (b)

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

            

    

     

    
      	
              (c)

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

            

    

     

    
      	
              14.4

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

            

    

     

    
      	
              14.5

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

            

    

     

    
      	
              14.6

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

            

    

     

    
      	
              14.7

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

            

    

     

     

    
      
        
        

      

      
        43

        
          

        

      

      
        Index

      

    

     

    
      	
              14.8

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

            

    

     

    
      	
              14.9

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

            

    

     

    
      	
              (a)

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

            

    

     

    
      	
              (b)

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

            

    

     

    
      	
              (c)

            	
              all
      other outgoings whatsoever in respect of the Ship owned by it, the
      Earnings or the Insurances,

            

    

     

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

            

    

    

    
      	
            	
              14.10

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

            

    

     

    
      	
              (a)

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

            

    

     

    
      	
              (b)

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

            

    

     

    
      	
              (c)

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

            

    

     

    
      	
            	
              14.11

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

            

    

     

    
      	
              (a)

            	
              the
      Ship owned by it, her employment, position and
  engagements;

            

    

     

    
      	
              (b)

            	
              the
      Earnings and payments and amounts due to the master and crew of the Ship
      owned by it;

            

    

     

     

    
      
        
        

      

      
        44

        
          

        

      

      
        Index

      

    

     

    
      	
              (c)

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

            

    

     

    
      	
              (d)

            	
              any
      towages and salvages; and

            

    

     

    
      	
              (e)

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

            

    

    

    
      	
            	
              14.12

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

            

    

     

    
      	
              (a)

            	
              any
      casualty which is or is likely to be or to become a Major
      Casualty;

            

    

     

    
      	
              (b)

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

            

    

     

    
      	
              (c)

            	
              any
      requirement or recommendation made by any insurer or classification
      society or by any competent authority which is not immediately complied
      with;

            

    

     

    
      	
              (d)

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

            

    

     

    
      	
              (e)

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

            

    

     

    
      	
              (f)

            	
              any
      Environmental Claim made against that Owner or in connection with the Ship
      owned by it, or any Environmental
Incident;

            

    

     

    
      	
              (g)

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

            

    

     

    
      	
              (h)

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

            

    

     

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

            

    

    

    
      	
            	
              14.13

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

            

    

     

    
      	
              (a)

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

            

    

     

    
      	
              (b)

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

            

    

     

    
      	
              (c)

            	
              appoint
      a manager of the Ship owned by it other than the Approved
      Manager;

            

    

     

    
      	
              (d)

            	
              de-activate
      or lay up the Ship owned by it; or

            

    

     

     

    
      
        
        

      

      
        45

        
          

        

      

      
        Index

      

    

     

    
      	
              (e)

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

            

    

     

    
      	
            	
              14.14

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

            

    

     

    
      	
            	
              14.15

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

            

    

     

    
      	
              (a)

            	
              enter
      into any agreement or arrangement for the sharing of any
      Earnings;

            

    

     

    
      	
              (b)

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

            

    

     

    
      	
              (c)

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

            

    

     

    
      	
            	
              14.16

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

            

    

     

    
      	
            	
              14.17

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

            

    

     

    
      	
              (a)

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

            

    

     

    
      	
              (b)

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

            

    

     

    
      	
              15

            	
              SECURITY
COVER

            

    

     

    
      	
              15.1

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

            

    

     

    
      	
              (a)

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

            

    

     

     

    
      
        
        

      

      
        46

        
          

        

      

      
        Index

      

    

     

    
      	
              (b)

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

            

    

     

    
      	
              15.2

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

            

    

     

    
      	
              15.3

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

            

    

     

    
      	
              15.4

            	
              Valuation of
      Ships.  The market value of a Ship at any date is that
      shown by the average of two valuations
prepared:

            

    

     

    
      	
              (a)

            	
              as
      at a date not more than 14 days
previously;

            

    

     

    
      	
              (b)

            	
              by
      2 Approved Brokers, one appointed by the Borrower and the other by the
      Facility Agent;

            

    

     

    
      	
              (c)

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

            

    

     

    
      	
              (d)

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

            

    

     

    
      	
              (e)

            	
              after
      deducting the estimated amount of the usual and reasonable expenses which
      would be incurred in connection with the
sale,

            

    

     

    Provided  that if
the difference between the 2 valuations obtained at any one time pursuant to
this Clause 15.4 is greater than 15 per cent. a valuation shall be commissioned
from a third Approved Broker appointed by the Facility Agent.  Such
valuation shall be conducted in accordance with this Clause 15.4 and the Market
Value of the Ship in such circumstances shall be the average of the initial 2
valuations and the valuation provided by the third Approved Broker.

    

    
      	
              15.5

            	
              Value of additional
      security.  The net realisable value of any additional
      security which is provided under Clause 15.1 and which consists of a
      Security Interest over a vessel shall be that shown by a valuation
      complying with the requirements of Clause
15.4.

            

    

     

    
      	
              15.6

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

            

    

     

    
      	
              15.7

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

            

    

     

     

    
      
        
        

      

      
        47

        
          

        

      

      
        Index

      

    

     

    
      	
              15.8

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

            

    

     

    
      	
              15.9

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

            

    

     

    
      	
              16

            	
              PAYMENTS AND
  CALCULATIONS

            

    

     

    
      	
              16.1

            	
              Currency and method of
      payments.  All payments to be
  made:

            

    

     

    
      	
              (a)

            	
              by
      the Lenders to the Facility Agent;
or

            

    

     

    
      	
              (b)

            	
              by
      the Borrower to the Facility Agent, the Security Trustee or any
      Lender,

            

    

     

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

            

    

    

    
      	
               
      

            	
              (i)

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

            

    

     

    
      	
               
      

            	
              (ii)

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

            

    

     

    
      	
               
      

            	
              (iii)

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

            

    

     

    
      	
               
      

            	
              (iv)

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

            

    

     

    
      	
              16.2

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

            

    

     

    
      	
              (a)

            	
              the
      due date shall be extended to the next succeeding Business Day;
      or

            

    

     

    
      	
              (b)

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

            

    

     

    
      	 	
              and
      interest shall be payable during any extension under paragraph (a) at the
      rate payable on the original due
date.

            

    

    

    
      	
              16.3

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

            

    

     

     

    
      
        
        

      

      
        48

        
          

        

      

      
        Index

      

    

     

    
      	
              16.4

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

            

    

     

    
      	
              (a)

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

            

    

     

    
      	
              (b)

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

            

    

     

    
      	
              16.5

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

            

    

     

    
      	
              16.6

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

            

    

     

    
      	
              16.7

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

            

    

     

    
      	
              (a)

            	
              refund
      the sum in full to the Facility Agent;
and

            

    

     

    
      	
              (b)

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

            

    

     

    
      	
              16.8

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

            

    

     

    
      	
              16.9

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

            

    

     

    
      	
            	
              16.10

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

            

    

     

    
      	
            	
              16.11

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

            

    

     

     

    
      
        
        

      

      
        49

        
          

        

      

      
        Index

      

    

     

    
      	
              17

            	
              APPLICATION OF
  RECEIPTS

            

    

     

    
      	
              17.1

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

            

    

     

    
      	
              (a)

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

            

    

     

    
      	
               
      

            	
              (i)

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

            

    

     

    
      	
               
      

            	
              (ii)

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

            

    

     

    
      	
               
      

            	
              (iii)

            	
              thirdly,
      in or towards satisfaction of the
Loan;

            

    

     

    
      	
              (b)

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

            

    

     

    
      	
               
      

            	
              (i)

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

            

    

     

    
      	
               
      

            	
              (ii)

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

            

    

     

    
      	
               
      

            	
              (iii)

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

            

    

     

    
      	
              (c)

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

            

    

     

    
      	
              (d)

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

            

    

     

     

    
      
        
        

      

      
        50

        
          

        

      

      
        Index

      

    

     

    
      	
              (e)

            	
              FIFTHLY:
      any surplus shall be paid to the Borrower or to any other person appearing
      to be entitled to it.

            

    

     

    
      	
              17.2

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

            

    

     

    
      	
              17.3

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

            

    

     

    
      	
              17.4

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

            

    

     

    
      	
              18

            	
              APPLICATION OF
  EARNINGS

            

    

     

    
      	
              18.1

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

            

    

     

    
      	
              18.2

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

            

    

     

    
      	
              18.3

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

            

    

     

    
      	
              (a)

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

            

    

     

    
      	
              (b)

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

            

    

     

    
      	
              (c)

            	
              in
      or towards making any transfers to the Retention Account in accordance
      with Clause 18.2; and

            

    

     

     

    
      
        
        

      

      
        51

        
          

        

      

      
        Index

      

    

     

    
      	
              (d)

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

            

    

     

    
      	
              18.4

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

            

    

     

    
      	
              18.5

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

            

    

     

    
      	
              18.6

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

            

    

     

    
      	
              18.7

            	
              Location of
      accounts.  The Borrower shall
  promptly:

            

    

     

    
      	
              (a)

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

            

    

     

    
      	
              (b)

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

            

    

     

    
      	
              19

            	
              EVENTS OF
DEFAULT

            

    

     

    
      	
              19.1

            	
              Events of
      Default.  An Event of Default occurs
  if:

            

    

     

    
      	
              (a)

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

            

    

     

    
      	
              (b)

            	
              any
      breach occurs of Clause 9.2, 11.2, 11.3, 12.2, 12.3, 12.5, 13.2, 13.3,
      15.1 or 18.1; or

            

    

     

    
      	
              (c)

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

            

    

     

    
      	
              (d)

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

            

    

     

    
      	
              (e)

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

            

    

     

     

    
      
        
        

      

      
        52

        
          

        

      

      
        Index

      

    

     

    
      	
              (f)

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

            

    

     

    
      	
               
      

            	
              (i)

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

            

    

     

    
      	
               
      

            	
              (ii)

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

            

    

     

    
      	
               
      

            	
              (iii)

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

            

    

     

    
      	
               
      

            	
              (iv)

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

            

    

     

    
      	
               
      

            	
              (v)

            	
              any
      Security Interest securing any Financial Indebtedness of a Relevant Person
      becomes enforceable; or

            

    

     

    
      	
              (g)

            	
              any
      of the following occurs in relation to a Relevant
  Person:

            

    

     

    
      	
               
      

            	
              (i)

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

            

    

     

    
      	
               
      

            	
              (ii)

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

            

    

     

    
      	
               
      

            	
              (iii)

            	
              any
      administrative or other receiver is appointed over any asset of a Relevant
      Person; or

            

    

     

    
      	
               
      

            	
              (iv)

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

            

    

     

    
      	
               
      

            	
              (v)

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

            

    

     

     

    
      
        
        

      

      
        53

        
          

        

      

      
        Index

      

    

     

    
      	
               
      

            	
              (vi)

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

            

    

     

    
      	
               
      

            	
              (vii)

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

            

    

     

    
      	
            	
              (viii)

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

            

    

     

    
      	
              (h)

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

            

    

     

    
      	
              (i)

            	
              it
      becomes unlawful in any Pertinent Jurisdiction or
    impossible:

            

    

     

    
      	
               
      

            	
              (i)

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

            

    

     

    
      	
               
      

            	
              (ii)

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

            

    

     

    
      	
              (j)

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

            

    

     

    
      	
              (k)

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

            

    

     

    
      	
              (l)

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

            

    

     

    
      	
              (m)

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

            

    

     

    
      	
              (n)

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

            

    

     

    
      	
              (o)

            	
              the
      security constituted by a Finance Document is in any way imperilled or in
      jeopardy; or

            

    

     

     

    
      
        
        

      

      
        54

        
          

        

      

      
        Index

      

    

     

    
      	
              (p)

            	
              any
      other event occurs or any other circumstances arise or develop including,
      without limitation:

            

    

     

    
      	
               
      

            	
              (i)

            	
              a
      material adverse change in the financial position, state of affairs or
      prospects of the Borrower or the Owners;
or

            

    

     

    
      	
               
      

            	
              (ii)

            	
              any
      accident or other event involving a Ship or another vessel owned,
      chartered or operated by a Relevant
Person,

            

    

     

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

            

    

    

    
      	
              19.2

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

            

    

     

    
      	
              (a)

            	
              the
      Facility Agent may, and if so instructed by the Majority Lenders, the
      Facility Agent shall:

            

    

     

    
      	
               
      

            	
              (i)

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

            

    

     

    
      	
               
      

            	
              (ii)

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

            

    

     

    
      	
               
      

            	
              (iii)

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

            

    

     

    
      	
              (b)

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

            

    

     

    
      	
              19.3

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

            

    

     

    
      	
              19.4

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

            

    

     

    
      	
              19.5

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

            

    

     

    
      	
              19.6

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

            

    

     

     

    
      
        
        

      

      
        55

        
          

        

      

      
        Index

      

    

     

    
      	
              19.7

            	
              Lender’s rights
      unimpaired.  Nothing in this Clause shall be taken to
      impair or restrict the exercise of any right given to individual Lenders
      under a Finance Document or the general law; and, in particular, this
      Clause is without prejudice to Clause
3.1.

            

    

     

    
      	
              19.8

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

            

    

     

    
      	
              (a)

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

            

    

     

    
      	
              (b)

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

            

    

     

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

            

    

    

    
      	
              19.9

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

            

    

     

    
      	
            	
              19.10

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

            

    

     

    
      	
              20

            	
              FEES AND
EXPENSES

            

    

     

    
      	
              20.1

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

            

    

     

    
      	
              (a)

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

            

    

     

    
      	
              (b)

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

            

    

     

    
      	
              20.2

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

            

    

     

    
      	
              20.3

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

            

    

     

     

    
      
        
        

      

      
        56

        
          

        

      

      
        Index

      

    

     

    
      	
              (a)

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

            

    

     

    
      	
              (b)

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

            

    

     

    
      	
              (c)

            	
              the
      valuation of any security provided or offered under Clause 15 or any other
      matter relating to such security;

            

    

     

    
      	
              (d)

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

            

    

     

    
      	
              (e)

            	
              any
      step taken by any Lender concerned with a view to the protection, exercise
      or enforcement of any right or Security Interest created by a Finance
      Document or for any similar
purpose.

            

    

     

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

            

    

    

    
      	
              20.4

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

            

    

     

    
      	
              20.5

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

            

    

     

    
      	
              21

            	
              INDEMNITIES

            

    

     

    
      	
              21.1

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

            

    

     

    
      	
              (a)

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

            

    

     

    
      	
              (b)

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

            

    

     

    
      	
              (c)

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

            

    

     

    
      	
              (d)

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

            

    

     

     

    
      
        
        

      

      
        57

        
          

        

      

      
        Index

      

    

    
 

    
      	
              21.2

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

            

    

     

    
      	
              (a)

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

            

    

     

    
      	
              (b)

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

            

    

     

    
      	
              21.3

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

            

    

     

    
      	
              (a)

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

            

    

     

    
      	
              (b)

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

            

    

     

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

            

    

    

    
      	
              21.4

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

            

    

     

    
      	
              (a)

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

            

    

     

    
      	
              (b)

            	
              any
      liability items which arise, or are asserted, under or in connection with
      any law relating to safety at sea, pollution or the protection of the
      environment, the ISM Code or the ISPS
Code.

            

    

     

    
      	
              21.5

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

            

    

     

     

    
      
        
        

      

      
        58

        
          

        

      

      
        Index

      

    

     

    
      	
              (a)

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

            

    

     

    
      	
              (b)

            	
              obtaining
      an order or judgment from any court or other tribunal;
  or

            

    

     

    
      	
              (c)

            	
              enforcing
      any such order or judgment,

            

    

     

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

            

    

    

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

            

    

    

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

            

    

    

    
      	
              21.6

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

            

    

     

    
      	
              21.7

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

            

    

     

    
      	
              22

            	
              NO SET-OFF OR TAX
  DEDUCTION

            

    

     

    
      	
              22.1

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

            

    

     

    
      	
              (a)

            	
              without
      any form of set-off, cross-claim or condition;
  and

            

    

     

    
      	
              (b)

            	
              free
      and clear of any tax deduction except a tax deduction which the Borrower
      is required by law to make.

            

    

     

    
      	
              22.2

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

            

    

     

    
      	
              (a)

            	
              the
      Borrower shall notify the Facility Agent as soon as it becomes aware of
      the requirement;

            

    

     

    
      	
              (b)

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

            

    

     

    
      	
              (c)

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

            

    

     

    
      	
              22.3

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

            

    

     

     

    
      
        
        

      

      
        59

        
          

        

      

      
        Index

      

    

     

    
      	
              22.4

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

            

    

     

    
      	
              23

            	
              ILLEGALITY, ETC

            

    

     

    
      	
              23.1

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

            

    

     

    
      	
              (a)

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

            

    

     

    
      	
              (b)

            	
              contrary
      to, or inconsistent with, any
regulation,

            

    

     

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

            

    

    

    
      	
              23.2

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

            

    

     

    
      	
              23.3

            	
              Prepayment; termination of
      Commitment.  On the Facility Agent notifying the Borrower
      under Clause 23.2, the Notifying Lender’s Commitment shall terminate; and
      thereupon or, if later, on the date specified in the Notifying Lender’s
      notice under Clause 23.1 as the date on which the notified event would
      become effective the Borrower shall prepay the Notifying Lender’s
      Contribution in accordance with Clause
8.

            

    

     

    
      	
              24

            	
              INCREASED
COSTS

            

    

     

    
      	
              24.1

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

            

    

     

    
      	
              (a)

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

            

    

     

    
      	
              (b)

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

            

    

     

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

            

    

    

    
      	
               
      

            	
              (i)

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

            

    

     

     

    
      
        
        

      

      
        60

        
          

        

      

      
        Index

      

    

     

    
      	
               
      

            	
              (ii)

            	
              a
      reduction in the amount of any payment to the Notifying Lender under this
      Agreement or in the effective return which such a payment represents to
      the Notifying Lender or on its
capital;

            

    

     

    
      	
               
      

            	
              (iii)

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

            

    

     

    
      	
               
      

            	
              (iv)

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

            

    

     

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

            

    

    

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

            

    

    

    
      	
              24.2

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

            

    

     

    
      	
              24.3

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

            

    

     

    
      	
              24.4

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

            

    

     

    
      	
              24.5

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

            

    

     

    
      	
              (a)

            	
              on
      the date on which the Facility Agent serves that notice, the Commitment of
      the Notifying Lender shall be cancelled;
and

            

    

     

    
      	
              (b)

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

            

    

     

    
      	
              24.6

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

            

    

     

    
      	
              25

            	
              SET-OFF

            

    

     

    
      	
              25.1

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

            

    

     

    
      	
              (a)

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

            

    

     

     

    
      
        
        

      

      
        61

        
          

        

      

      
        Index

      

    

     

    
      	
              (b)

            	
              for
      that purpose:

            

    

     

    
      	
               
      

            	
              (i)

            	
              break,
      or alter the maturity of, all or any part of a deposit of the
      Borrower;

            

    

     

    
      	
               
      

            	
              (ii)

            	
              convert
      or translate all or any part of a deposit or other credit balance into
      Dollars; and

            

    

     

    
      	
               
      

            	
              (iii)

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

            

    

     

    
      	
              25.2

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

            

    

     

    
      	
              25.3

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

            

    

     

    
      	
              26

            	
              TRANSFERS AND CHANGES IN LENDING
      OFFICES

            

    

     

    
      	
              26.1

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

            

    

     

    
      	
              (a)

            	
              transfer
      any of its rights or obligations under any Finance Document;
      or

            

    

     

    
      	
              (b)

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

            

    

     

    
      	
              26.2

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

            

    

     

    
      	
              (a)

            	
              its
      rights in respect of all or part of its Contribution;
  or

            

    

     

    
      	
              (b)

            	
              its
      obligations in respect of all or part of its Commitment;
  or

            

    

     

    
      	
              (c)

            	
              a
      combination of (a) and (b),

            

    

     

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

            

    

    

    However
any rights and obligations of the Transferor Lender in its capacity as Facility
Agent or Security Trustee will have to be dealt with separately in accordance
with the Agency and Trust Agreement.

     

    A
transfer pursuant to this Clause 26.2 shall:

    

    
      	
               
      

            	
              (i)

            	
              require
      the prior written consent of the Facility Agent (except in the case of a
      transfer to a subsidiary of a
Lender);

            

    

     

     

    
      
        
        

      

      
        62

        
          

        

      

      
        Index

      

    

     

    
      	
               
      

            	
              (ii)

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

            

    

     

    
      	
               
      

            	
              (iii)

            	
              be
      effected without the consent of, but with notice to, the Borrower and
      without any cost to the Borrower:

            

    

     

    
      	
               
      

            	
              (A)

            	
              following
      the occurrence of an Event of
Default;

            

    

     

    
      	
               
      

            	
              (B)

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

            

    

     

    
      	
               
      

            	
              (iv)

            	
              require
      the consent of the Borrower (such consent not to be unreasonably withheld
      or delayed) in all other
circumstances.

            

    

     

    

    
      	
              26.3

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

            

    

     

    
      	
              (a)

            	
              sign
      the Transfer Certificate on behalf of itself the Borrower, the Security
      Parties, the Security Trustee and each of the other
    Lenders;

            

    

     

    
      	
              (b)

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

            

    

     

    
      	
              (c)

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

            

    

     

    
      	
              26.4

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

            

    

     

    
      	
              26.5

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

            

    

     

    
      	
              26.6

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

            

    

     

    
      	
              26.7

            	
              Effect of Transfer
      Certificate.  A Transfer Certificate takes effect in
      accordance with English law as
follows:

            

    

     

    
      	
              (a)

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

            

    

     

     

    
      
        
        

      

      
        63

        
          

        

      

      
        Index

      

    

     

    
      	
              (b)

            	
              the
      Transferor Lender’s Commitment is discharged to the extent specified in
      the Transfer Certificate;

            

    

     

    
      	
              (c)

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

            

    

     

    
      	
              (d)

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

            

    

     

    
      	
              (e)

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

            

    

     

    
      	
              (f)

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

            

    

     

    
      	
              (g)

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

            

    

     

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

            

    

    

    
      	
              26.8

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

            

    

     

    
      	
              26.9

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

            

    

     

    
      	
            	
              26.10

            	
              Authorisation of Facility Agent
      to sign Transfer Certificates.  The Borrower, the
      Security Trustee and each Lender irrevocably authorise the Facility Agent
      to sign Transfer Certificates on its
behalf.

            

    

     

    
      	
            	
              26.11

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

            

    

     

     

    
      
        
        

      

      
        64

        
          

        

      

      
        Index

      

    

     

    
      	
            	
              26.12

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

            

    

     

    
      	
            	
              26.13

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

            

    

     

    
      	
            	
              26.14

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

            

    

     

    
      	
              (a)

            	
              the
      date on which the Facility Agent receives the notice;
  and

            

    

     

    
      	
              (b)

            	
              the
      date, if any, specified in the notice as the date on which the change will
      come into effect.

            

    

     

    
      	
            	
              26.15

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

            

    

     

    
      	
              27

            	
              VARIATIONS AND
  WAIVERS

            

    

     

    
      	
              27.1

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

            

    

     

    
      	
              27.2

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

            

    

     

    
      	
              (a)

            	
              a
      change in the Margin or in the definition of
  LIBOR;

            

    

     

    
      	
              (b)

            	
              a
      change to the date for, the amount of, any payment of principal, interest,
      fees, or other sum payable under this
Agreement;

            

    

     

    
      	
              (c)

            	
              a
      change to any Lender’s Commitment;

            

    

     

     

    
      
        
        

      

      
        65

        
          

        

      

      
        Index

      

    

     

    
      	
              (d)

            	
              an
      extension of the Availability
Period;

            

    

     

    
      	
              (e)

            	
              a
      change to the definition of “Majority Lenders” or “Finance
      Documents”;

            

    

     

    
      	
              (f)

            	
              a
      change to the preamble or to Clause 2, 3, 4, 5.1, 17, 18 or
      30;

            

    

     

    
      	
              (g)

            	
              a
      change to this Clause 27;

            

    

     

    
      	
              (h)

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

            

    

     

    
      	
              (i)

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

            

    

     

    
      	
              27.3

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

            

    

     

    
      	
              (a)

            	
              a
      provision of this Agreement or another Finance Document;
  or

            

    

     

    
      	
              (b)

            	
              an
      Event of Default; or

            

    

     

    
      	
              (c)

            	
              a
      breach by the Borrower or a Security Party of an obligation under a
      Finance Document or the general law;
or

            

    

     

    
      	
              (d)

            	
              any
      right or remedy conferred by any Finance Document or by the general
      law,

            

    

     

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

            

    

    

    
      	
              28

            	
              NOTICES

            

    

     

    
      	
              28.1

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

            

    

     

    
      	
              28.2

            	
              Addresses for
      communications.  A notice shall be
  sent:

            

    

     

    
      	
              (a)

            	
              to
      the Borrower:

            	
              c/o
      Capital Ship Management Corp.

            
	 
      	 
      	
              3
      Iassonos Street

            
	 
      	 
      	
              185
      37 - Piraeus

            
	 
      	 
      	
              Greece

            
	 
      	 
      	 
      
	 
      	 
      	
              Fax
      No: +30 210 4285 679

            
	 
      	 
      	
              for
      the attention of: the Chief Financial Officer

            
	 
      	 
      	 
      
	
              (b)

            	
              to
      a Lender:

            	
              at
      the address below its name in Schedule 1 or (as the case may require) in
      the relevant Transfer Certificate.

            
	 	 	 

    

     

     

    
      
        
        

      

      
        66

        
          

        

      

      
        Index

      

    

     

    
      	
              (c)

            	
              to
      the Swap Bank:

            	
              Zinsderivateabwicklung
      OE 3652

            
	 
      	 
      	
              Gerhart-Hauptmann-Platz
      50

            
	 
      	 
      	
              20095
      Hamburg

            
	 
      	 
      	
              Germany

            
	 
      	 
      	
              Fax
      No: +49 40 3333 34086

            
	 
      	 
      	 
      
	
              (d)

            	
              to
      the Facility Agent

            	
              HSH
      Nordbank AG

            
	 
      	
              and
      Security Trustee:

            	
              Shipping,
      Greek clients

            
	 
      	 
      	
              Gerhart-Hamptmann-Platz
      50

            
	 
      	 
      	
              D-20095
      Hamburg

            
	 
      	 
      	
              Germany

            
	 
      	 
      	
              Fax
      No: +49 40 3333 34118

            

    

    

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

            

    

    

    
      	
              28.3

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

            

    

     

    
      	
              (a)

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

            

    

     

    
      	
              (b)

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

            

    

     

    
      	
              28.4

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

            

    

     

    
      	
              (a)

            	
              on
      a day which is not a business day in the place of receipt;
    or

            

    

     

    
      	
              (b)

            	
              on
      such a business day, but after 5 p.m. local
  time,

            

    

     

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

            

    

    

    
      	
              28.5

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

            

    

     

    
      	
              28.6

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

            

    

     

    
      	
              (a)

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

            

    

     

    
      	
              (b)

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

            

    

     

    
      	
              28.7

            	
              English
      language.  Any notice under or in connection with a
      Finance Document shall be in
English.

            

    

     

    
      	
              28.8

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

            

    

     

     

    
      
        
        

      

      
        67

        
          

        

      

      
        Index

      

    

     

    
      	
              29

            	
              SUPPLEMENTAL

            

    

     

    
      	
              29.1

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

            

    

     

    
      	
              (a)

            	
              cumulative;

            

    

     

    
      	
              (b)

            	
              may
      be exercised as often as appears expedient;
and

            

    

     

    
      	
              (c)

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

            

    

     

    
      	
              29.2

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

            

    

     

    
      	
              29.3

            	
              Third party
      rights.  A person who is not a party to this Agreement
      has no right under the Contracts (Rights of Third Parties) Act 1999 to
      enforce or to enjoy the benefit of any term of this
    Agreement.

            

    

     

    
      	
              29.4

            	
              Counterparts.  A
      Finance Document may be executed in any number of
      counterparts.

            

    

     

    
      	
              30

            	
              LAW AND
JURISDICTION

            

    

     

    
      	
              30.1

            	
              English
      law.  This Agreement shall be governed by, and construed
      in accordance with, English law.

            

    

     

    
      	
              30.2

            	
              Exclusive English
      jurisdiction.  Subject to Clause 30.3, the courts of
      England shall have exclusive jurisdiction to settle any disputes which may
      arise out of or in connection with this
  Agreement.

            

    

     

    
      	
              30.3

            	
              Choice of forum for the
      exclusive benefit of the Creditor Parties.  Clause 30.2
      is for the exclusive benefit of the Creditor Parties, each of which
      reserves the right:

            

    

     

    
      	
              (a)

            	
              to
      commence proceedings in relation to any matter which arises out of or in
      connection with this Agreement in the courts of any country other than
      England and which have or claim jurisdiction to that matter;
      and

            

    

     

    
      	
              (b)

            	
              to
      commence such proceedings in the courts of any such country or countries
      concurrently with or in addition to proceedings in England or without
      commencing proceedings in England.

            

    

     

    No
Borrower shall commence any proceedings in any country other than England in
relation to a matter which arises out of or in connection with this
Agreement.

    

    
      	
              30.4

            	
              Process
      agent.  The Borrower irrevocably appoints Curzon Maritime
      Ltd. at its office for the time being, presently at 30/33 Minories Street,
      St. Clare House, London EC3N 1DJ, England, to act as its agent to receive
      and accept on its behalf any process or other document relating to any
      proceedings in the English courts which are connected with this
      Agreement.

            

    

     

    
      	
              30.5

            	
              Creditor Party rights
      unaffected.  Nothing in this Clause 30 shall exclude or
      limit any right which any Creditor Party may have (whether under the law
      of any country, an international convention or otherwise) with regard to
      the bringing of proceedings, the service of process, the recognition or
      enforcement of a judgment or any similar or related matter in any
      jurisdiction.

            

    

     

     

    
      
        
        

      

      
        68

        
          

        

      

      
        Index

      

    

     

    
      	
              30.6

            	
              Meaning of
      “proceedings”.  In this Clause 30, “proceedings” means
      proceedings of any kind, including an application for a provisional or
      protective measure.

            

    

     

    

    AS WITNESS the hands of the
duly authorised officers or attorneys of the parties the day and year first
before written.

    

    

    
      
        
          
          

        

        
          69

          
            

          

        

        
          Index

        

      

    

    

    SCHEDULE 1

     

    LENDERS
AND COMMITMENTS

    
 

    
      	
              Lender

            	
              Lending
      Office

            	
              Commitment

              ($)

            	
              Percentage
      of

              Total
      Commitments

              (%)

            
	
               

              HSH
      Nordbank AG

               

            	
               

              Gerhart-Hauptmann-Platz
      50

              20095
      Hamburg

              Germany

               

              Fax
      No: +(49) 40 33 33 34118

               

            	
               

              90,000,000

               

            	
               

              25.7

            
	
               

              DnB
      NOR Bank ASA

               

            	
               

              20
      St. Dunstan’s Hill

              London
      EC3R 8HY

              England

               

              Fax
      No: 0044 207 626 5356

               

            	
               

              75,000,000

               

            	
               

              21.5

            
	
               

              Alpha
      Bank A.E.

            	
               

              Akti
      Miaouli
      89

              185
      38 Piraeus

              Greece

               

              Fax
      No: +30 210 429 0348

               

            	
               

              60,000,000

            	
               

              17.1

               

            
	
               

              National
      Bank of Greece S.A.

               

            	
               

              Bouboulinas
      2 &

              Akti
      Miaouli

              185
      35 Piraeus

               

              Fax
      No: +30 210 414 4120

               

            	
               

              60,000,000

               

            	
               

              17.1

            
	
               

              Piraeus
      Bank A.E.

            	
               

              47-49
      Akti Miaouli

              185
      36 Piraeus

               

              Fax
      No: +30 210 429 2601

            	
               

              65,000,000

            	
               

              18.6

            

    

     

     

    

    

    
      
        
          
          

        

        
          70

          
            

          

        

        
          Index

        

      

    

    

    SCHEDULE 2

     

    DRAWDOWN
NOTICE

     

    

    

    
      	
              To:

            	
              HSH
      Norbank AG

            
	 
      	
              Gerhart-Hauptmann-Platz
      50

            
	 
      	
              20095
      Hamburg

            
	 
      	
              Germany

            

    

    

     

    
      	Attention: Loans
      Administration 	
               2008

            

    

     

    
 

    DRAWDOWN
NOTICE

    

    
      	
              1

            	
              We
      refer to the loan agreement (the “Loan Agreement”) dated
      19 March 2008 and made between us, as Borrower, the Lenders referred to
      therein, HSH Nordbank AG as Swap Bank, you as Bookrunner, Facility Agent,
      Mandated Lead Arranger, Security Trustee and DnB NOR Bank ASA, London as
      Co-Arranger in connection with revolving credit and term loan facilities
      of up to US$350,000,000 in aggregate.  Terms defined in the Loan
      Agreement have their defined meanings when used in this Drawdown
      Notice.

            

    

     

    
      	
              2

            	
              We
      request to borrow an Advance under Tranche [    ] as
      follows:

            

    

     

    
      	
              (a)

            	
              Amount:
      US$[        ];

            

    

     

    
      	
              (b)

            	
              Drawdown
      Date:  [        ];

            

    

     

    
      	
              (c)

            	
              Duration
      of the first Interest Period shall be
      [        ]
  months;

            

    

     

    
      	
              (d)

            	
              Payment
      instructions : account of
      [            ]
      and numbered
      [            ]
      with
      [            ]
      of
      [            ].

            

    

     

    
      	
              3

            	
              We
      represent and warrant that:

            

    

     

    
      	
              (a)

            	
              the
      representations and warranties in Clause 10 of the Loan Agreement would
      remain true and not misleading if repeated on the date of this notice with
      reference to the circumstances now existing;
and

            

    

     

    
      	
              (b)

            	
              no
      Event of Default or Potential Event of Default has occurred or will result
      from the borrowing of the Loan.

            

    

     

    
      	
              4

            	
              This
      notice cannot be revoked without the prior consent of the Majority
      Lenders.

            

    

     

    
      	
              5

            	
              [We
      authorise you to deduct any facility fees referred to in Clause 20.1 from
      the amount of the Advance].

            

    

     

    

    

    

    ________________________________

    

    Attorney-in-Fact

    for and
on behalf of

    
      CAPITAL
PRODUCT PARTNERS L.P.

       

    

    

    
      
        
          
          

        

        
          71

          
            

          

        

        
          Index

        

      

    

    

    SCHEDULE 3

     

    CONDITION
PRECEDENT DOCUMENTS

     

    PART
A

    

    The
following are the documents referred to in Clause 9.1(b) required before the
Drawdown Date of the first Advance of Tranche A.

    

    
      	
              1

            	
              A
      duly executed original of each of:

            

    

     

    
      	
              (a)

            	
              this
      Agreement;

            

    

     

    
      	
              (b)

            	
              the
      Agency and Trust Deed;

            

    

     

    
      	
              (c)

            	
              the
      Master Agreement;

            

    

     

    
      	
              (d)

            	
              the
      Master Agreement Assignment;

            

    

     

    
      	
              (e)

            	
              the
      Fee Letter;

            

    

     

    
      	
              (f)

            	
              the
      Guarantees to be entered into by the Existing
  Owners;

            

    

     

    
      	
              (g)

            	
              the
      Retention Account Pledge; and

            

    

     

    
      	
              (h)

            	
              the
      Swap Account Pledge.

            

    

     

    
      	
              2

            	
              Copies
      of the certificate of limited partnership (in the case of the Borrower),
      the certificate of incorporation (in the case of each Existing Owner) and
      the constitutional documents of the Borrower and each Existing
      Owner.

            

    

     

    
      	
              3

            	
              Copies
      of resolutions of the directors of the Borrower and the directors and
      shareholders of each Existing Owner authorising the execution of each of
      the Finance Documents to which the Borrower or that Owner is a party and,
      in the case of the Borrower, authorising named officers to give the
      Drawdown Notices and other notices under this
  Agreement.

            

    

     

    
      	
              4

            	
              The
      original of any power of attorney under which any Finance Document is
      executed on behalf of the Borrower or an Existing
  Owner.

            

    

     

    
      	
              5

            	
              Copies
      of all consents which the Borrower or any Existing Owner requires to enter
      into, or make any payment under, any Finance
  Document.

            

    

     

    
      	
              6

            	
              The
      originals of any mandates or other documents required in connection with
      the opening or operation of each Earnings Account relative to an Existing
      Ship and the Retention Account and the Swap
  Account.

            

    

     

    
      	
              7

            	
              Evidence
      satisfactory to the Facility Agent that each Existing Owner is a direct or
      indirect wholly-owned subsidiary of the
  Borrower.

            

    

     

    
      	
              8

            	
              Copies
      of all the Management Agreements of the Existing
  Ships.

            

    

     

    
      	
              9

            	
              Copies
      of all the Existing Charters duly executed by the parties
      thereto.

            

    

     

    
      	
              10

            	
              A
      copy of the Partnership Agreement duly executed by the parties
      thereto.

            

    

     

    
      	
              11

            	
              All
      documentation required by each Creditor Party in relation to the Borrower
      and any Security Party pursuant to that Creditor Party’s “know your
      customer” requirements.

            

    

     

    

    
      
        
          
          

        

        
          72

          
            

          

        

        
          Index

        

      

    

    

    
      	
              12

            	
              Documentary
      evidence that the agent for service of process named in Clause 30 has
      accepted its appointment.

            

    

     

    
      	
              13

            	
              Favourable
      legal opinions from lawyers appointed by the Facility Agent on such
      matters concerning the laws of the Marshall Islands, Liberia and such
      other relevant jurisdictions as the Facility Agent may
      requires.

            

    

     

    
      	
              14

            	
              If
      the Facility Agent so requires, in respect of any of the documents
      referred to above, a certified English translation prepared by a
      translator approved by the Facility
Agent.

            

    

     

    

    

    PART
B

    

    The
following are the documents referred to in Clause 9.1(c) required before the
Drawdown Date of each Advance under Tranche A and Tranche B.

    

    In Part B
of Schedule 3, the following definitions shall have the following
meanings:

    

    “Relevant Owner” means the
Owner of the Relevant Ship; and

    

    “Relevant Ship” means, in
relation to each Advance under Tranche A and Tranche B, the Tranche A Ship and
Tranche B Ship which is to act as security for such Advance.

    

    
      	
              1

            	
              Copies
      of resolutions of the shareholders and directors of the Relevant Owner and
      the Borrower authorising the execution of each of the Finance Documents to
      which such Owner is a party and, in the case of the Borrower, approving
      the borrowing of the relevant Advance and authorising named directors or
      attorneys to give the Drawdown Notices and other notices under this
      Agreement.

            

    

     

    
      	
              2

            	
              The
      original of any power of attorney under which any Finance Document is
      executed on behalf of the Relevant
Owner.

            

    

     

    
      	
              3

            	
              Copies
      of all consents which the Relevant Owner or the Borrower requires to enter
      into, or make any payment under, any Finance
  Document.

            

    

     

    
      	
              4

            	
              A
      duly executed original of the Guarantee of the Relevant Owner and of the
      Mortgage (and, if applicable, the Deed of Covenant) and the General
      Assignment relative to the Relevant Ship, the Earnings Account Pledge, the
      Management Agreement Assignment and of each document to be delivered
      pursuant to each such Finance
Document.

            

    

     

    
      	
              5

            	
              If
      applicable, a duly executed original of the Charterparty Assignment in
      respect of the Existing Charter (in the case of each Tranche A Ship) of
      the Relevant Ship and of each document to be delivered pursuant to each
      such Finance Document.

            

    

     

    
      	
              6

            	
              Evidence
      satisfactory to the Facility Agent that the Relevant Owner is a direct or
      indirect wholly-owned subsidiary of the
  Borrower.

            

    

     

    
      	
              7

            	
              The
      originals of any documents required in connection with the opening of the
      Earnings Account in respect of the Relevant
  Ship.

            

    

     

    
      	
              8

            	
              Documentary
      evidence that:

            

    

     

    
      	
              (a)

            	
              the
      Relevant Ship is registered in the ownership of the Relevant Owner under
      an Approved Flag;

            

    

     

    

    
      
        
          
          

        

        
          73

          
            

          

        

        
          Index

        

      

    

    

    
      	
              (b)

            	
              the
      Relevant Ship is in the absolute and unencumbered ownership of the
      Relevant Owner save as contemplated by the Finance
    Documents;

            

    

     

    
      	
              (c)

            	
              the
      Relevant Ship maintains the highest available class with an Approved
      Classification Society as the Facility Agent may approve free of all
      overdue recommendations and conditions of such classification
      society;

            

    

     

    
      	
              (d)

            	
              the
      Mortgage relating to the Relevant Ship has been duly registered or
      recorded against the Relevant Ship as a valid first preferred ship
      mortgage in accordance with the laws of the relevant Approved Flag State;
      and

            

    

     

    
      	
              (e)

            	
              the
      Relevant Ship is insured in accordance with the provisions of this
      Agreement and all requirements therein in respect of insurances have been
      complied with.

            

    

     

    
      	
              9

            	
              A
      copy of the Management Agreement and a duly executed original of the
      Approved Manager’s Undertaking in relation to the Relevant
      Ship.

            

    

     

    
      	
              10

            	
              Copies
      of:

            

    

     

    
      	
              (a)

            	
              the
      document of compliance (DOC) and safety management  certificate
      (SMC) referred to in paragraph (a) of the definition of the ISM Code
      Documentation in respect of the Relevant Ship and the Approved Manager
      certified as true and in effect by the Relevant Owner;
  and

            

    

     

    
      	
              (b)

            	
              the
      ISPS Code Documentation in respect of the Relevant Ship and the Relevant
      Owner certified as true and in effect by the Relevant
    Owner.

            

    

     

    
      	
              11

            	
              Two
      valuations (at the cost of the Borrowers) of the Relevant Ship, addressed
      to the Facility Agent, stated to be for the purposes of this Agreement and
      dated not earlier than 4 weeks before the Drawdown Date relative to the
      relevant Advance, each from an Approved Broker (such valuations to be made
      in accordance with Clause 15.4).

            

    

     

    
      	
              12

            	
              A
      survey report in respect of the Relevant Ship prepared (at the cost of the
      Borrower) by an independent marine surveyor appointed by the Facility
      Agent dated no later than 20 days prior to the Drawdown Date of the
      relevant Advance in form, scope and substance satisfactory to the Facility
      Agent and its technical advisers.

            

    

     

    
      	
              13

            	
              At
      the cost of the Borrower, a favourable opinion from an independent
      insurance consultant acceptable to the Lenders on such matters relating to
      the insurances for the Relevant Ship as the Facility Agent may
      require.

            

    

     

    
      	
              14

            	
              Favourable
      legal opinions from lawyers appointed by the Lender on such matters
      concerning the laws of the Approved Flag State in which the Relevant Ship
      is registered and such other relevant jurisdictions as the Facility Agent
      may require.

            

    

     

    
      	
              15

            	
              If
      the Facility Agent so requires, in respect of any of the documents
      referred to above, a certified English translation prepared by a
      translator approved by the Facility
Agent.

            

    

     

    PART
C

    

    The
following are the documents referred to in Clause 9.1(d) required before the
Drawdown Date of each Advance under Tranche C.

    

    In Part C
of Schedule 3, the following definitions shall have the following
meanings:

    

    “Relevant Owner” means the
owner of the Relevant Ship; and

    

    

    
      
        
          
          

        

        
          74

          
            

          

        

        
          Index

        

      

    

    

    “Relevant Ship” means, in
relation to each Advance under Tranche C, the Additional Ship which is to act as
security for such Advance.

    

    
      	
              1

            	
              Copies
      of resolutions of the shareholders and directors of each Relevant Owner
      and the Borrower authorising the execution of each of the Finance
      Documents to which such Owner is a party and, in the case of the Borrower,
      approving the borrowing of the relevant Advance and authorising named
      directors or attorneys to give the Drawdown Notices and other notices
      under this Agreement.

            

    

     

    
      	
              2

            	
              The
      original of any power of attorney under which any Finance Document is
      executed on behalf of the Relevant
Owner.

            

    

     

    
      	
              3

            	
              Copies
      of all consents which each Relevant Owner or the Borrower requires to
      enter into, or make any payment under, any Finance
    Document.

            

    

     

    
      	
              4

            	
              A
      duly executed original of the Guarantee of the Relevant Owner and of the
      Mortgage and the General Assignment relative to the Relevant Ship, the
      Owner’s Earnings Account Pledge and of each document to be delivered
      pursuant to each such Finance
Document.

            

    

     

    
      	
              5

            	
              If
      applicable, a duly executed original of the Charterparty Assignment or the
      Bareboat Charter Security Agreement in respect of the Relevant Ship and of
      each document to be delivered pursuant to each such Finance
      Document.

            

    

     

    
      	
              6

            	
              Evidence
      satisfactory to the Facility Agent that the Relevant Owner is a direct or
      indirect wholly-owned subsidiary of the
  Borrower.

            

    

     

    
      	
              7

            	
              The
      originals of any documents required in connection with the opening of the
      Earnings Account in respect of the Relevant
  Ship.

            

    

     

    
      	
              8

            	
              Documentary
      evidence that:

            

    

     

    
      	
              (a)

            	
              the
      Relevant Ship is registered in the ownership of the Relevant Owner under
      an Approved Flag;

            

    

     

    
      	
              (b)

            	
              the
      Relevant Ship is in the absolute and unencumbered ownership of the
      Relevant Owner save as contemplated by the Finance
    Documents;

            

    

     

    
      	
              (c)

            	
              the
      Relevant Ship maintains the highest available class with an Approved
      Classification Society as the Facility Agent may approve free of all
      overdue recommendations and conditions of such classification
      society;

            

    

     

    
      	
              (d)

            	
              the
      Mortgage relating to the Relevant Ship has been duly registered or
      recorded against the Relevant Ship as a valid first preferred ship
      mortgage in accordance with the laws of the relevant Approved Flag State;
      and

            

    

     

    
      	
              (e)

            	
              the
      Relevant Ship is insured in accordance with the provisions of this
      Agreement and all requirements therein in respect of insurances have been
      complied with.

            

    

     

    
      	
              9

            	
              A
      copy of the Management Agreement and a duly executed original of the
      Approved Manager’s Undertaking in relation to the Relevant
      Ship.

            

    

     

    
      	
              10

            	
              Copies
      of:

            

    

     

    
      	
              (a)

            	
              the
      document of compliance (DOC) and safety management  certificate
      (SMC) referred to in paragraph (a) of the definition of the ISM Code
      Documentation in respect of the Relevant Ship and the Approved Manager
      certified as true and in effect by the Relevant Owner;
  and

            

    

     

     

    
      
        
        

      

      
        75

        
          

        

      

      
        Index

      

    

     

    
      	
              (b)

            	
              the
      ISPS Code Documentation in respect of the Relevant Ship and the Relevant
      Owner certified as true and in effect by the Relevant
    Owner.

            

    

     

    
      	
              11

            	
              Two
      valuations (at the cost of the Borrowers) of the Relevant Ship, addressed
      to the Facility Agent, stated to be for the purposes of this Agreement and
      dated not earlier than 4 weeks before the Drawdown Date relative to the
      relevant Advance, each from an Approved Broker (such valuations to be made
      in accordance with Clause 15.4).

            

    

     

    
      	
              12

            	
              A
      survey report in respect of the Relevant Ship prepared (at the cost of the
      Borrower) by an independent marine surveyor appointed by the Facility
      Agent dated no later than 20 days prior to the Drawdown Date of the
      relevant Advance in form, scope and substance satisfactory to the Facility
      Agent and its technical advisers.

            

    

     

    
      	
              13

            	
              At
      the cost of the Borrower, a favourable opinion from an independent
      insurance consultant acceptable to the Lenders on such matters relating to
      the insurances for each Relevant Ship as the Facility Agent may
      require.

            

    

     

    
      	
              14

            	
              Favourable
      legal opinions from lawyers appointed by the Lender on such matters
      concerning the laws of the Approved Flag State in which the Relevant Ship
      is registered and such other relevant jurisdictions as the Facility Agent
      may require.

            

    

     

    
      	
              15

            	
              If
      the Facility Agent so requires, in respect of any of the documents
      referred to above, a certified English translation prepared by a
      translator approved by the Facility
Agent.

            

    

     

    Every
copy document delivered under this Schedule shall be certified as a true and up
to date copy by a director or the secretary (or equivalent officer) of the
Borrower.

     

    

    
      
        
          
          

        

        
          76

          
            

          

        

        
          Index

        

      

    

    

    SCHEDULE 4

     

    TRANSFER
CERTIFICATE

     

    

    

    The
Transferor and the Transferee accept exclusive responsibility for ensuring that
this Certificate and the transaction to which it relates comply with all legal
and regulatory requirements applicable to them respectively.

    

    

    
      	
              To:

            	
              HSH NORDBANK AG for
      itself and for and on behalf of the Borrower, each Security Party, the
      Security Trustee and each Lender, as defined in the Loan Agreement
      referred to below.

            

    

    

    [          ]
200[ ]

    

    
      	
              1

            	
              This
      Certificate relates to a Loan Agreement (the “Loan Agreement”) dated
      19 March 2008 and made between (1) Capital Product Partners L.P. (the
      “Borrower”), (2)
      the banks and financial institutions named therein, (3) HSH Nordbank AG as
      Swap Bank (4) HSH Nordbank AG as Bookrunner, Facility Agent, Mandated Lead
      Arranger and Security Trustee and (5) DnB NOR Bank ASA as Co-Arranger and,
      for revolving credit and term loan facilities of up to US$350,000,000 in
      aggregate.

            

    

     

    
      	
              2

            	
              In
      this Certificate:

            

    

     

    
      	 	
              “the Relevant Parties”
      means the Facility Agent, the Borrower, [each Security Party], the
      Security Trustee, and each Lender;

            

    

    

    
      	 	
              “the Transferor” means
      [full name] of [lending office];

            

    

    

    
      	 	
              “the Transferee” means
      [full name] of [lending office].

            

    

    

    
      	 	
              Terms
      defined in the Loan Agreement shall, unless the contrary intention
      appears, have the same meanings when used in this
    Certificate.

            

    

    

    
      	
              3

            	
              The
      effective date of this Certificate is .........200[ ]  Provided that this
      Certificate shall not come into effect unless it is signed by the Facility
      Agent on or before that date.

            

    

     

    
      	
              4

            	
              The
      Transferor assigns to the Transferee absolutely all rights and interests
      (present, future or contingent) which the Transferor has as Lender under
      or by virtue of the Loan Agreement and every other Finance Document in
      relation to [      ] per cent. of the
      Contribution outstanding to the Transferor (or its predecessors in title)
      which is set out below:

            

    

     

    
      	 	
              Contribution

            	
              Amount
      transferred

            
	 	 
      	 
      
	 	 
      	 
      
	 	 
      	 
      

    

    

    
      	
              5

            	
              By
      virtue of this Transfer Certificate and Clause 26 of the Loan Agreement,
      the Transferor is discharged [entirely from its Commitment which amounts
      to $[      ]] [from
      [      ] per cent. of its Commitment, which
      percentage represents $[      ]] and the
      Transferee acquires a Commitment of
      $[      ].

            

    

     

    

    
      
        
          
          

        

        
          77

          
            

          

        

        
          Index

        

      

    

    

    
      	
              6

            	
              The
      Transferee undertakes with the Transferor and each of the Relevant Parties
      that the Transferee will observe and perform all the obligations under the
      Finance Documents which Clause 26 of the Loan Agreement provides will
      become binding on it upon this Certificate taking
  effect.

            

    

     

    
      	
              7

            	
              The
      Facility Agent, at the request of the Transferee (which request is hereby
      made) accepts, for the Facility Agent itself and for and on behalf of
      every other Relevant Party, this Certificate as a Transfer Certificate
      taking effect in accordance with Clause 26 of the Loan
      Agreement.

            

    

     

    
      	
              8

            	
              The
      Transferor:

            

    

     

    
      	
              (a)

            	
              warrants
      to the Transferee and each Relevant
Party:

            

    

     

    
      	
               
      

            	
              (i)

            	
              that
      the Transferor has full capacity to enter into this transaction and has
      taken all corporate action and obtained all consents which are in
      connection with this transaction;
and

            

    

     

    
      	
               
      

            	
              (ii)

            	
              that
      this Certificate is valid and binding as regards the
      Transferor;

            

    

     

    
      	
              (b)

            	
              warrants
      to the Transferee that the Transferor is absolutely entitled, free of
      encumbrances, to all the rights and interests covered by the assignment in
      paragraph 4 above;

            

    

     

    
      	
              (c)

            	
              undertakes
      with the Transferee that the Transferor will, at its own expense, execute
      any documents which the Transferee reasonably requests for perfecting in
      any relevant jurisdiction the Transferee’s title under this Certificate or
      for a similar purpose.

            

    

     

    
      	
              9

            	
              The
      Transferee:

            

    

     

    
      	
              (a)

            	
              confirms
      that it has received a copy of the Loan Agreement and each other Finance
      Document;

            

    

     

    
      	
              (b)

            	
              agrees
      that it will have no rights of recourse on any ground against either the
      Transferor, the Facility Agent, the Security Trustee, any Lender in the
      event that:

            

    

     

    
      	
               
      

            	
              (i)

            	
              the
      Finance Documents prove to be invalid or
  ineffective,

            

    

     

    
      	
               
      

            	
              (ii)

            	
              the
      Borrower or any Security Party fails to observe or perform its
      obligations, or to discharge its liabilities, under the Finance
      Documents;

            

    

     

    
      	
               
      

            	
              (iii)

            	
              it
      proves impossible to realise any asset covered by a Security Interest
      created by a Finance Document, or the proceeds of such assets are
      insufficient to discharge the liabilities of the Borrower or Security
      Party under the Finance Documents;

            

    

     

    
      	
              (c)

            	
              agrees
      that it will have no rights of recourse on any ground against the Facility
      Agent, the Security Trustee or any Lender in the event that this
      Certificate proves to be invalid or
ineffective;

            

    

     

    
      	
              (d)

            	
              warrants
      to the Transferor and each Relevant Party (i) that it has full capacity to
      enter into this transaction and has taken all corporate action and
      obtained all official consents which it needs to take or obtain in
      connection with this transaction; and (ii) that this Certificate is valid
      and binding as regards the Transferee;
and

            

    

     

    
      	
              (e)

            	
              confirms
      the accuracy of the administrative details set out below regarding the
      Transferee.

            

    

     

    

    
      
        
          
          

        

        
          78

          
            

          

        

        
          Index

        

      

    

    

    
      	
              10

            	
              The
      Transferor and the Transferee each undertake with the Facility Agent and
      the Security Trustee severally, on demand, fully to indemnify the Facility
      Agent and/or the Security Trustee in respect of any claim, proceeding,
      liability or expense (including all legal expenses) which they or either
      of them may incur in connection with this Certificate or any matter
      arising out of it, except such as are shown to have been mainly and
      directly caused by the gross and culpable negligence or dishonesty of the
      Facility Agent’s or the Security Trustee’s own officers or
      employees.

            

    

     

    
      	
              11

            	
              The
      Transferee shall repay to the Transferor on demand so much of any sum paid
      by the Transferor under paragraph 10 above as exceeds one-half of the
      amount demanded by the Facility Agent or the Security Trustee in respect
      of a claim, proceeding, liability or expense which was not reasonably
      foreseeable at the date of this Certificate; but nothing in this paragraph
      shall affect the liability of each of the Transferor and the Transferee to
      the Facility Agent or the Security Trustee for the full amount demanded by
      it.

            

    

     

    

    

    
      	
              [Name
      of Transferor]

            	
              [Name
      of Transferee]

            
	 
      	 
      
	
              By:

            	
              By:

            
	 
      	 
      
	
              Date:

            	
              Date:

            

    

    

    

    

    

    Facility
Agent

    

    Signed
for itself and for and on behalf of itself

    as
Facility Agent and for every other Relevant Party

    

    HSH
Nordbank AG

    

    By:

    

    Date:

    

    

    

    
      
        
          
          

        

        
          79

          
            

          

        

        
          Index

        

      

    

    

    Administrative
Details of Transferee

    

    

    Name of
Transferee:

    

    Lending
Office:

    

    Contact
Person

    (Loan
Administration Department):

    

    Telephone:

    

    Telex:

    

    Fax:

    

    Contact
Person

    (Credit
Administration Department):

    

    Telephone:

    

    Telex:

    

    Fax:

    

    Account
for payments:

    

    

    

    

    
      	
              Note:

            	
              This
      Transfer Certificate alone may not be sufficient to transfer a
      proportionate share of the Transferor’s interest in the security
      constituted by the Finance Documents in the Transferor’s or Transferee’s
      jurisdiction.  It is the responsibility of each Lender to
      ascertain whether any other documents are required for this
      purpose.

            

    

    
    

    

    

    
      
        
          
          

        

        
          80

          
            

          

        

        
          Index

        

      

    

    

    SCHEDULE 5

     

    DESIGNATION
NOTICE

     

    

    

    

    To:     HSH
Norbank AG

               Gerhart-Hauptmann-Platz
50

               20095
Hamburg

               Germany

    

    

    

     [●]

    

    Dear
Sirs

    

    Loan
Agreement dated 19 March 2008 made between (inter alia) (i) ourselves as
Borrower, (ii) the Lenders, (iii) yourselves as Swap Bank, Bookrunner, Mandated
Lead Arranger, Facility Agent and Security Trustee and (iv) DnB NOR Bank ASA as
Co-Arranger in respect of revolving credit and term loan facilities of up to
US$350,000,000 in aggregate (the “Loan Agreement”)

    

    We refer
to:

    

    
      	
              1

            	
              the
      Loan Agreement;

            

    

     

    
      	
              2

            	
              the
      Master Agreement dated [●] March 2008 made between ourselves and HSH
      Nordbank AG; and

            

    

     

    
      	
              3

            	
              a
      Confirmation delivered pursuant to the said Master Agreement dated [●]
      March 2008 and addressed by HSH Nordbank AG to
  us.

            

    

     

    In
accordance with the terms of the Loan Agreement, we hereby give you notice of
the said Confirmation and hereby confirm that the Transaction evidenced by it
will be designated as a “Designated Transaction” for the purposes of the Loan
Agreement and the Finance Documents.

    

    Yours
faithfully,

     

    
      

      

      

      
        	 
      
	 
      
	
                for
      and on behalf of

              
	
                CAPITAL
      PRODUCT PARTNERS L.P.

              

      

       

    

    
 

    
      
        
          
          

        

        
          81

          
            

          

        

        
          Index

        

      

    

    

    SCHEDULE 6

     

    FORM
OF COMPLIANCE CERTIFICATE

     

    

    

    

    To:         
HSH NORDBANK AG

    Gerhart-Hauptmann-Platz
50

    20095
Hamburg

    Germany

    

    From:      Capital
Product Partners L.P.

    

    

    

    

    

    

    

    Dated: 
[●]

    Dear
Sirs

    USD
350,000,000 Loan Agreement

    dated 19 March 2008 (the
“Agreement”)

    

    
      	
              1

            	
              We
      refer to the Agreement. This is a Compliance Certificate and attached
      hereto are the calculations which will provide evidence of compliance.
      Terms defined in the Agreement have the same meaning when used in this
      Compliance Certificate unless given a different meaning in this Compliance
      Certificate.

            

    

     

    
      	
              2

            	
              We
      refer to clauses 12.5 and 15.1 of the Agreement and hereby certify
      that:

            

    

     

    (a)           Leverage Ratio

    Requirement:  Leverage
Ratio of not more than 72.50%.

    Satisfied [YES] :
[NO]

    

    (b)           Minimum Liquidity

    Requirement:  maintain
on a consolidated basis liquidity in a minimum amount determined in accordance
with Clause 12.5(c) of the Agreement.

    Satisfied
[YES] : [NO]

    

    (c)           Interest Coverage

    Requirement:  maintain
a ratio of EBITDA to Net Interest Expenses on a trailing 4-quarter basis of not
less than 2.00 to 1.00.

    Satisfied
[YES] : [NO]

    

    (d)           Collateral
Maintenance

    Requirement:  Market
Value of the Ships subject to a Mortgage is not less than 125% of the
Loan.

    Satisfied
[YES] : [NO]

    

    

    
      
        
          
          

        

        
          82

          
            

          

        

        
          Index

        

      

    

    

    
      	
              3

            	
              We
      confirm that no Event of Default is continuing and that no Event of
      Default would occur out of the distribution or dividend [made][to be
      made].*

            

    

     

    

    

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

            
	 	
              Chief
      Financial Officer

            
	 	 
      
	 	 
      

    

     

    
 

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

    for and
on behalf of

    [name of auditors of the
Company]**

     

    

     

    

     

    

     

    

     

    _____________________

    
      	
              *

            	
              If
      this statement cannot be made, the certificate should identify any Event
      of Default that is continuing and the steps, if any, being taken to remedy
      it.

            

    

    
      	
              **

            	
              Only
      applicable if the Compliance Certificate accompanies the audited financial
      statements and is to be signed by the auditors.  To be agreed
      with the Company’s auditors prior to signing the
  Agreement.

            

    

    

    

    
      
        
          
          

        

        
          83

          
            

          

        

        
          Index

        

      

    

    

    EXECUTION
PAGES

    

    

    
      	
              BORROWER

            	 
      	 
      
	 
      	 
      	 
      
	
              SIGNED
by

            	
              )

            	 
      
	
              for
      and on behalf of

            	
              )

            	 
      
	
              CAPITAL
      PRODUCT

            	
              )

            	 
      
	
              PARTNERS
      L.P.

            	
              )

            	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	
              LENDERS

            	 
      	 
      
	 
      	 
      	 
      
	
              SIGNED
by

            	
              )

            	 
      
	
              for
      and on behalf of

            	
              )

            	 
      
	
              HSH
      NORDBANK AG

            	
              )

            	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	
              SIGNED
by

            	
              )

            	 
      
	
              for
      and on behalf of

            	
              )

            	 
      
	
              DNB
      NOR BANK ASA

            	
              )

            	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	
              SIGNED
by

            	
              )

            	 
      
	
              for
      and on behalf of

            	
              )

            	 
      
	
              ALPHA
      BANK A.E.

            	
              )

            	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	
              SIGNED
by

            	
              )

            	 
      
	
              for
      and on behalf of

            	
              )

            	 
      
	
              NATIONAL
      BANK OF

            	
              )

            	 
      
	
              GREECE
      S.A.

            	
              )

            	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	
              SIGNED
by

            	
              )

            	 
      
	
              for
      and on behalf of

            	
              )

            	 
      
	
              PIRAEUS
      BANK A.E.

            	
              )

            	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	
              SWAP
      BANK

            	 
      	 
      
	 
      	 
      	 
      
	
              SIGNED
by

            	
              )

            	 
      
	
              for
      and on behalf of

            	
              )

            	 
      
	
              HSH
      NORDBANK AG

            	
              )

            	 
      
	 
      	 
      	 
      

    

     

     

    
      
        
        

      

      
        84

        
          

        

      

      
        Index

      

    

     

     

    
      	
              BOOKRUNNER

            	 
      	 
      
	 
      	 
      	 
      
	
              SIGNED
by

            	
              )

            	 
      
	
              for
      and on behalf of

            	
              )

            	 
      
	
              HSH
      NORDBANK AG

            	
              )

            	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	
              MANDATED
      LEAD ARRANGER

            	 
      	 
      
	 
      	 
      	 
      
	
              SIGNED
by

            	
              )

            	 
      
	
              for
      and on behalf of

            	
              )

            	 
      
	
              HSH
      NORDBANK AG

            	
              )

            	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	
              FACILITY
      AGENT

            	 
      	 
      
	 
      	 
      	 
      
	
              SIGNED
by

            	
              )

            	 
      
	
              for
      and on behalf of

            	
              )

            	 
      
	
              HSH
      NORDBANK AG

            	
              )

            	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	
              SECURITY
      TRUSTEE

            	 
      	 
      
	 
      	 
      	 
      
	
              SIGNED
by

            	
              )

            	 
      
	
              for
      and on behalf of

            	
              )

            	 
      
	
              HSH
      NORDBANK AG

            	
              )

            	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	
              CO-ARRANGER

            	 
      	 
      
	 
      	 
      	 
      
	
              SIGNED
by

            	
              )

            	 
      
	
              for
      and on behalf of

            	
              )

            	 
      
	
              DNB
      NOR BANK ASA

            	
              )

            	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	
              Witness
      to all the above

            	
              )

            	 
      
	
              Signatures:

            	
              )

            	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	
              Name:

            	 
      	 
      
	 
      	 
      	 
      
	
              Address:

            	 
      	 
      

    

    

    
85ex4-11.htm

    Exhibit
4.11

     

    EXECUTION
COPY

    
 

    
      
        
          

        

      

       

       

       

       

       

      
        SHARE
PURCHASE AGREEMENT

         

         

         

        Dated 24
September, 2007

         

         

         

        between

         

         

         

        CAPITAL
MARITIME & TRADING CORP.

         

         

         

        and

         

         

         

        CAPITAL
PRODUCT PARTNERS L.P.

         

         

         

         

         

         

          
            

          

        

      

      

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      TABLE OF CONTENTS

       

      Page

      

      
        	
                ARTICLE I

                 

                Interpretation

              
	 	 	 
	
                SECTION 1.01

              	
                Definitions

              	
                1

              
	 
      	 
      	 
      
	
                ARTICLE II

                 

                Purchase and Sale of Shares;
  Closing

              
	 
      	 
      	 
      
	
                SECTION 2.01

              	
                Purchase and Sale of Shares

              	
                3

              
	
                SECTION 2.02

              	
                Closing

              	
                3

              
	
                SECTION 2.03

              	
                Place of Closing

              	
                4

              
	
                SECTION 2.04

              	
                Purchase Price for Shares

              	
                4

              
	
                SECTION 2.05

              	
                Payment of the Purchase Price

              	
                4

              
	 
      	 
      	 
      
	
                ARTICLE III

                 

                Representations and Warranties of the
      Buyer

              
	 
      	 
      	 
      
	
                SECTION 3.01

              	
                Organization and Limited Partnership
      Authority

              	
                4

              
	
                SECTION 3.02

              	
                Agreement Not in Breach of Other
      Instruments

              	
                4

              
	
                SECTION 3.03

              	
                No Legal Bar

              	
                4

              
	 
      	 
      	 
      
	 
      	
                ARTICLE IV

                 

                Representations and Warranties of the
      Seller

              	 
      
	 
      	 
      	 
      
	
                SECTION 4.01

              	
                Organization and Corporate
    Authority

              	
                5

              
	
                SECTION 4.02

              	
                Agreement Not in Breach

              	
                5

              
	
                SECTION 4.03

              	
                No Legal Bar

              	
                5

              
	
                SECTION 4.04

              	
                Good and Marketable Title to
    Shares

              	
                5

              
	
                SECTION 4.05

              	
                Right to Enter Agreement

              	
                5

              
	 
      	 
      	 
      
	 	
                ARTICLE V

                 

                Representations and Warranties of  the Seller
      Regarding the Vessel Owning Subsidiary

              	 
	 	 	 
	
                SECTION 5.01 

              	
                Organization Good Standing and
      Authority 

              	
                6

              
	
                SECTION 5.02 

              	
                Capitalization 

              	
                6

              
	
                SECTION 5.03 

              	
                
                  Organizational Documents

                

              	
                6

              
	
                SECTION 5.04 

              	
                Agreement Not in Breach 

              	
                6

              
	
                SECTION 5.05 

              	
                Litigation

              	
                6

              
	
                SECTION 5.06 

              	
                Indebtedness to and from Officers,
      etc 

              	
                7

              
	
                SECTION 5.07 

              	
                Personnel 

              	
                7

              
	
                SECTION 5.08 

              	
                Contracts and Agreements 

              	
                7

              
	
                SECTION 5.09

              	
                Compliance with Law 

              	
                7

              
	
                SECTION 5.10 

              	
                No Undisclosed Liabilities

              	
                8

              

      

       

       

       

      
        
          
          

        

        
          i

          
            

          

        

        
          
          

        

      

       

       

      
        	 
      	 
      	 
      
	
                SECTION 5.11

              	
                Disclosure of Information

              	
                8

              
	
                SECTION 5.12

              	
                Payment of Taxes

              	
                8

              
	
                SECTION 5.13

              	
                Permits

              	
                8

              
	
                SECTION 5.14

              	
                No Material Adverse Change in
      Business

              	
                9

              
	 
      	 
      	 
      
	
                ARTICLE VI

                 

                Representations and Warranties of the Seller regarding
      the Vessel

              
	
                 

              
	
                SECTION 6.01

              	
                Title to Vessel

              	
                9

              
	
                SECTION 6.02

              	
                No Encumbrances

              	
                9

              
	
                SECTION 6.03

              	
                Condition

              	
                9

              
	 
      	 
      	 
      
	
                ARTICLE VII

                 

                Amendments and Waivers

              
	
                 

              
	
                SECTION 7.01

              	
                Amendments and Waivers

              	
                9

              
	 
      	 
      	 
      
	
                ARTICLE VIII

                 

                Indemnification

              
	
                 

              
	
                SECTION 8.01

              	
                Indemnity by the Seller

              	
                10

              
	
                SECTION 8.02

              	
                Indemnity by the Buyer

              	
                10

              
	 
      	 
      	 
      
	
                ARTICLE IX

                 

                Miscellaneous

              
	 
      	 
      	 
      
	
                SECTION 9.01

              	
                Governing Law

              	
                10

              
	
                SECTION 9.02

              	
                Counterparts

              	
                11

              
	
                SECTION 9.03

              	
                Complete Agreement

              	
                11

              
	
                SECTION 9.04

              	
                Interpretation

              	
                11

              
	
                SECTION 9.05

              	
                Severability

              	
                11

              
	
                SECTION 9.06

              	
                Third Party Rights

              	
                11

              
	
                SECTION 9.07

              	
                Notices

              	
                11

              
	
                SECTION 9.08

              	
                Representations and Warranties to
      Survive

              	
                12

              

      

    

     

    
      

      
        
          
             

          

          
            ii 

            
              

            

          

          
             

            Table of Contents

          

        

      

      SHARE PURCHASE AGREEMENT (the “Agreement”), dated as
of September 24, 2007, by and between CAPITAL MARITIME & TRADING CORP.
(the “Seller”),
a corporation organized under the laws of the Republic of the Marshall Islands,
and CAPITAL PRODUCT PARTNERS L.P. (the “Buyer”), a limited
partnership organized under the laws of the Republic of the Marshall Islands and
recently formed by the Seller.

       

      RECITAL

       

      WHEREAS, the Buyer wishes to purchase
from the Seller, and the Seller wishes to sell to the Buyer, the five hundred
(500) shares of common stock (the “Shares”) representing
all of the issued and outstanding shares of common stock of Ross Shipmanagement
Co.,  a corporation organized under the laws of the Republic of the
Marshall Islands (the “Vessel Owning
Subsidiary”).

       

      WHEREAS, the Vessel Owning Subsidiary
is the registered owner of the Liberian flagged motor tanker “Attikos” (the
“Vessel”).

       

      WHEREAS, the Vessel is subject to a
time charter  party agreement (type SHELLTIME 4) dated May 31, 2007
and entered into between the Vessel Owning Subsidiary and Trafigura Beheer BV,
Amsterdam (the “Charterer”) for a
period of  26  to 28 months from July 12, 2007, the date on
which the  Vessel was delivered to the Charterer (the “Charter”).

       

      WHEREAS, contemporaneously with the
execution of this Agreement, the Buyer and Capital Ship Management Corp. (“CSM”) will execute an
amendment to the Management Agreement dated as of April 3, 2007 and entered into
between the Buyer and CSM (the “Amendment to the Management
Agreement”).

       

      NOW, THEREFORE, the parties hereto
agree as follows:

       

      ARTICLE I

       

      Interpretation

       

                
SECTION 1.01  Definitions.  In
this Agreement, unless the context requires otherwise or unless otherwise
specifically provided herein, the following terms shall have the respective
meanings set out below and grammatical variations of such terms shall have
corresponding meanings:

       

      “Agreement” means this
Agreement, including its recitals and schedules, as amended, supplemented,
restated or otherwise modified from time to time;

       

      “Applicable Law” in
respect of any Person, property, transaction or event, means all laws, statutes,
ordinances, regulations, municipal by-laws, treaties, judgments

       

      
        
           

        

        
           
1

          
            

          

        

        
           

          Table of Contents

        

      

      and
decrees applicable to that Person, property, transaction or event and, whether
or not having the force of law, all applicable official directives, rules,
consents, approvals, authorizations, guidelines, orders, codes of practice and
policies of any Governmental Authority having or purporting to have authority
over that Person, property, transaction or event and all general principles of
common law and equity;

       

       “Business Day” means
any day other than a Saturday, Sunday or any statutory holiday on which banks in
London, Greece and New York are required to close;

       

       “Buyer” has the
meaning given to it in the preamble;

       

       “Buyer Indemnitees”
has the meaning given to it in Section 10.01;

       

       “Charter” has the
meaning given to it in the recitals;

       

       “Charterer” has the
meaning given to it in the recitals;

       

       “Closing” has the
meaning given to it in Section 2.02;

       

       “Closing Date” has the
meaning given to it in Section 2.02;

       

       “Contracts” has the
meaning given to it in Section 5.08;

       

       “Credit Facility”
means the US$370 million credit facility agreement dated March 22, 2007 between
the Buyer and HSH Nordbank AG;

       

       “Daily Charter Rate”
means, with respect to the Vessel, the daily charter rate provided in the
Charter in the amount of US Dollars 13,850;

       

      “Encumbrance” means
any mortgage, lien, charge, assignment, adverse claim, hypothecation,
restriction, option, covenant, condition or encumbrance, whether fixed or
floating, on, or any security interest in, any property whether real, personal
or mixed, tangible or intangible, any pledge or hypothecation of any property,
any deposit arrangement, priority, conditional sale agreement, other title
retention agreement or equipment trust, capital lease or other security
arrangements of any kind;

       

      “Governmental
Authority” means any domestic or foreign government, including federal,
provincial, state, municipal, county or regional government or governmental or
regulatory authority, domestic or foreign, and includes any department,
commission, bureau, board, administrative agency or regulatory body of any of
the foregoing and any multinational or supranational organization;

       

      “Losses” means, with
respect to any matter, all losses, claims, damages, liabilities, deficiencies,
costs, expenses (including all costs of investigation, legal and other
professional fees and disbursements, interest, penalties and amounts paid in
settlement) or diminution of value, whether or not involving a claim from a
third party, however specifically excluding consequential, special and indirect
losses, loss of profit and loss of opportunity;

       

      
        
           

        

        
          2 

          
            

          

        

        
           

          Table of Contents

        

      

      “Notice” means any
notice, citation, directive, order, claim, litigation, investigation,
proceeding, judgment, letter or other communication, written or oral, actual or
threatened, from any Person;

       

      “Parties” means all
parties to this Agreement and “Party” means any one
of them;

       

      “Person” means an
individual, entity or association, including any legal personal representative,
corporation, body corporate, firm, partnership, trust, trustee, syndicate, joint
venture, unincorporated organization or Governmental Authority;

       

      “Permits” has the
meaning given to it in Section 5.13;

       

      “Purchase Price” has
the meaning given to it in Section 2.03;

       

      “Seller” has the
meaning given to it in the preamble;

       

      “Seller Indemnities”
has the meaning given to it in Section 10.02;

       

      “Shares” has the
meaning given to it in the recitals;

       

      “Taxes” means all
income, franchise, business, property, sales, use, goods and services or value
added, withholding, excise, alternate minimum capital, transfer, excise,
customs, anti-dumping, stumpage, countervail, net worth, stamp, registration,
franchise, payroll, employment, health, education, business, school, property,
local improvement, development, education development and occupation taxes,
surtaxes, duties, levies, imposts, rates, fees, assessments, dues and charges
and other taxes required to be reported upon or paid to any domestic or foreign
jurisdiction and all interest and penalties thereon;

       

      “Vessel” has the
meaning given to it in the recitals; and

       

      “Vessel Owning
Subsidiary” has the meaning given to it in the recitals.

       

      
        ARTICLE II

         

        Purchase
and Sale of Shares; Closing

      

       

                
 SECTION 2.01  Purchase and Sale of
Shares.  The Seller agrees to sell and transfer to the Buyer,
and the Buyer agrees to purchase from the Seller for the Purchase Price and in
accordance with and subject to the terms and conditions set forth in this
Agreement, the Shares.

       

               
  SECTION 2.02  Closing.  On
the terms of this Agreement, the sale and transfer of the Shares and payment of
the Purchase Price shall take place on the date hereof (the “Closing
Date”).  The sale and transfer of the Shares is hereinafter
referred to as “Closing.”

       

      
        
           

        

        
          3 

          
            

          

        

        
           

          Table of Contents

        

      

            
     SECTION
2.03  Place of
Closing.  The Closing shall take place at the premises of
Capital Ship Management Corp. at 3 Iassonos street, Piraeus,
Greece.

       

      SECTION 2.04  Purchase Price for
Shares.  On the Closing Date, the Buyer shall pay to the Seller
(to such account as the Seller shall nominate) the amount of US Dollars
23,000,000 for the Shares (the “Purchase
Price”).

       

              
   SECTION 2.05  Payment of the Purchase
Price.  The Purchase Price will be paid by the Buyer to the
Seller of the Shares by wire transfer of immediately available funds to an
account designated in writing by the Seller.

       

      ARTICLE
III

       

      Representations
and Warranties of the Buyer

       

      The Buyer represents and warrants to
the Seller that as of the date hereof:

       

               
  SECTION 3.01  Organization and Limited
Partnership Authority.  The Buyer is duly formed, validly
existing and in good standing under the laws of the Republic of the Marshall
Islands, and has all requisite limited partnership power and authority to enter
into this Agreement and to consummate the transactions contemplated hereby. This
Agreement has been duly executed and delivered by the Buyer, has been
effectively authorized by all necessary action, limited partnership or
otherwise, and constitutes legal, valid and binding obligations of the Buyer. No
meeting has been convened or resolution proposed or petition presented and no
order has been made to wind up the Buyer.

       

               
  SECTION 3.02  Agreement Not in Breach of
Other Instruments.  The execution and delivery of this
Agreement, the consummation of the transactions contemplated hereby and the
fulfillment of the terms hereof will not result in a breach of any of the terms
or provisions of, or constitute a default under, or conflict with, any agreement
or other instrument to which the Buyer is a party or by which it is bound, the
Certificate of Formation and the Partnership Agreement, any judgment, decree,
order or award of any court, governmental body or arbitrator by which the Buyer
is bound, or any law, rule or regulation applicable to the Buyer which
would have a material effect on the transactions contemplated
hereby.

       

               
  SECTION 3.03  No Legal
Bar.  The Buyer is not prohibited by any order, writ,
injunction or decree of any body of competent jurisdiction from consummating the
transactions contemplated by this Agreement and no such action or proceeding is
pending or, to the best of its knowledge and belief, threatened against the
Buyer which questions the validity of this Agreement, any of the transactions
contemplated hereby or any action which has been taken by any of the parties in
connection herewith or in connection with any of the transactions contemplated
hereby.

       

      
        
           

        

        
          4 

          
            

          

        

        
           

          Table of Contents

        

      

      ARTICLE
IV

       

      Representations
and Warranties of the Seller

       

      The Seller represents and warrants to
the Buyer that as of the date hereof:

       

           
      SECTION
4.01  Organization and Corporate
Authority.  The Seller is duly incorporated, validly existing
and in good standing under the laws of the Republic of the Marshall Islands, and
has all requisite corporate power and authority to enter into this Agreement and
to consummate the transactions contemplated hereby.  This Agreement
has been duly executed and delivered by the Seller, has been effectively
authorized by all necessary action, corporate or otherwise, and constitutes
legal, valid and binding obligations of the Seller. No meeting has been convened
or resolution proposed or petition presented and no order has been made to wind
up the Seller.

       

           
      SECTION
4.02  Agreement Not in
Breach.  The execution and delivery of this Agreement, the
consummation of the transactions contemplated hereby and the fulfillment of the
terms hereof will not result in a breach of any of the terms or provisions of,
or constitute a default under, or conflict with, any agreement or other
instrument to which the Seller is a party or by which it is bound, the Articles
of Incorporation and Bylaws of the Seller, any judgment, decree, order or award
of any court, governmental body or arbitrator by which the Seller is bound, or
any law, rule or regulation applicable to the Seller.

       

            
     SECTION
4.03  No
Legal Bar.  The Seller is not prohibited by any order, writ,
injunction or decree of any body of competent jurisdiction from consummating the
transactions contemplated by this Agreement and no such action or proceeding is
pending or, to the best of its knowledge and belief, threatened against the
Seller which questions the validity of this Agreement, any of the transactions
contemplated hereby or any action which has been taken by any of the parties in
connection herewith or in connection with any of the transactions contemplated
hereby.

       

          
       SECTION
4.04  Good and Marketable Title to
Shares.  The Seller is the owner (of record and beneficially)
of all of the Shares and has good and marketable title to the Shares, free and
clear of any and all Encumbrances.

       

           
      SECTION
4.05  Right to Enter
Agreement.  The Seller has the full right, power and authority
to enter into this Agreement and to transfer, convey and sell to the Buyer as of
the date hereof the Shares and upon consummation of the purchase contemplated
hereby, the Buyer will acquire from the Seller good and marketable title to the
Shares, free and clear of all covenants, conditions, restrictions, voting trust
arrangements, liens, charges, encumbrances, options and adverse claims or rights
whatsoever.

       

      
        
           

        

        
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          Table of Contents

        

      

      ARTICLE V

       

      Representations
and Warranties of

      the
Seller Regarding the Vessel Owning Subsidiary

       

      The Seller represents and warrants to
the Buyer that as of the date hereof:

       

             
    SECTION 5.01  Organization Good Standing
and Authority.  The Vessel Owning Subsidiary is a corporation
duly incorporated, validly existing and in good standing under the laws of the
Republic of the Marshall Islands.  The Vessel Owning Subsidiaries has
full corporate power and authority to carry on its business as it is now, and
has since its incorporation been, conducted, and is entitled to own, lease or
operate the properties and assets it now owns, leases or operates and to enter
into legal and binding contracts.  No meeting has been convened or
resolution proposed or petition presented and no order has been made to wind up
the Vessel Owning Subsidiary.

       

            
     SECTION
5.02  Capitalization.  The
Shares consist of the 500 shares of common stock without par value and have been
duly authorized and validly issued and are fully paid and non-assessable, and
constitute the total issued and outstanding capital stock of the Vessel Owning
Subsidiary.  There are not outstanding (i) any options, warrants
or other rights to purchase from the Vessel Owning Subsidiary any capital stock
of the Vessel Owning Subsidiary, (ii) any securities convertible into or
exchangeable for shares of such capital stock or (iii) any other
commitments of any kind for the issuance of additional shares of capital stock
or options, warrants or other securities of the Vessel Owning
Subsidiary.

       

            
     SECTION
5.03  Organizational
Documents.  The Seller has supplied to the Buyer true and
correct copies of the organizational documents of the Vessel Owning Subsidiary,
as in effect as of the date hereof (the “Organizational
Documents”).

       

          
       SECTION
5.04  Agreement Not in
Breach.  Neither the execution and delivery of this Agreement
nor the consummation of the transactions contemplated hereby will violate, or
result in a breach of, any of the terms and provisions of, or constitute a
default under, or conflict with, or give any other party thereto a right to
terminate any agreement or other instrument to which the Vessel Owning
Subsidiary is a party or by which it is bound including, without limitation, any
of the Organizational Documents, or any judgment, decree, order or award of any
court, governmental body or arbitrator applicable to the Vessel Owning
Subsidiary.

       

           
      SECTION
5.05  Litigation.

       

      (a).           There
is no action, suit or proceeding to which the Vessel Owning Subsidiary is a
party (either as a plaintiff or defendant) pending before any court or
governmental agency, authority or body or arbitrator; there is no action, suit
or proceeding threatened against the Vessel Owning Subsidiary; and, to the best
knowledge of the Seller, there is no basis for any such action, suit or
proceeding;

       

      
        
           

        

        
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          Table of Contents

        

      

      (b).           The
Vessel Owning Subsidiary has not been permanently or temporarily enjoined by any
order, judgment or decree of any court or any governmental agency, authority or
body from engaging in or continuing any conduct or practice in connection with
the business, assets, or properties of the Vessel Owning Subsidiary;
and

       

      (c).           There
is not in existence any order, judgment or decree of any court or other tribunal
or other agency enjoining or requiring the Vessel Owning Subsidiary to take any
action of any kind with respect to its business, assets or
properties.

       

              
   SECTION 5.06  Indebtedness to and from
Officers, etc.  The Vessel Owning Subsidiary will not be
indebted, directly or indirectly, to any person who is an officer, director,
stockholder or employee of any of the Seller or any spouse, child, or other
relative or any affiliate of any such person, nor shall any such officer,
director, stockholder, employee, relative or affiliate be indebted to the Vessel
Owning Subsidiary.

       

             
    SECTION 5.07  Personnel.  The
Vessel Owning Subsidiary has no employees.

       

                  SECTION
5.08  Contracts
and Agreements.  Other than the Charter and the Amendment to
the Management Agreement (together, the “Contracts”), there
are no material contracts or agreements, written or oral, to which the Vessel
Owning Subsidiary is a party or by which any of its assets are
bound.

       

      (a).           Each
of the Contracts is a valid and binding agreement of the Vessel Owning
Subsidiary, and to the best knowledge of the Seller, of all other parties
thereto;

       

      (b).           The
Vessel Owning Subsidiary has fulfilled all material obligations required
pursuant to its Contracts to have been performed by it prior to the date hereof
and has not waived any material rights thereunder; and

       

      (c).           There
has not occurred any material default under any of the Contracts, or to the best
knowledge of the Seller, on the part of any other party thereto nor has any
event occurred which with the giving of notice or the lapse of time, or both,
would constitute any material default on the part of the Vessel Owning
Subsidiary under any of the Contracts nor, to the best knowledge of the Seller,
has any event occurred which with the giving of notice or the lapse of time, or
both, would constitute any material default on the part of any other party to
any of the Contracts.

       

              
   SECTION 5.09  Compliance with
Law.  The conduct of business by the Vessel Owning Subsidiary
does not and the execution and delivery of this Agreement and the consummation
of the transactions contemplated hereby will not violate any laws, statutes,
ordinances, rules, regulations, decrees, orders, permits or other similar items
in force (including, but not limited to, any of the foregoing relating to
employment discrimination, environmental protection or conservation) of any
country, province, state or other governing body, the enforcement of which would
materially and adversely affect the business, assets, condition (financial or
otherwise) or prospects of the Vessel Owning Subsidiary taken as a whole, nor
has  the Vessel Owning Subsidiary received any notice of any such
violation.

       

      
        
           

        

        
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    SECTION 5.10  No Undisclosed
Liabilities.  The Vessel Owning Subsidiary (or the Vessel owned
by it) has no  liabilities or obligations of any nature, whether
absolute, accrued, contingent or otherwise, and whether due or to become due
(including, without limitation, any liability for Taxes and interest, penalties
and other charges payable with respect to any such liability or obligation).
Notwithstanding the foregoing, the Parties acknowledge and agree that there may
be obligations under the Contracts that are not due and payable as of the date
hereof and that will be the responsibility of the Seller pursuant to Section
8.01(c) of this Agreement.

       

      SECTION 5.11   Disclosure of
Information.  The Seller has disclosed to the Buyer all
material information on, and about, the Vessel Owning Subsidiary and the Vessel
and all such information is true, accurate and not misleading in any material
respect. Nothing has been withheld from the material provided to the Buyer which
would render such information untrue or misleading.

       

            
     SECTION
5.12  Payment of
Taxes.  The Vessel Owning Subsidiary has filed all foreign,
federal, state and local income and franchise tax returns required to be filed,
which returns are correct and complete in all material respects, and has timely
paid all taxes due from it, and the Vessel is in good standing with respect to
the payment of past and current Taxes, fees and other amounts payable under the
laws of the jurisdiction where it is registered as would affect its registry
with the ship registry of such jurisdiction.

       

              
   SECTION 5.13  Permits.  The
Vessel Owning Subsidiary has such permits, consents, licenses, franchises,
concessions, certificates and authorizations (“Permits”) of, and has
all declarations and filings with, and is qualified and in good standing in each
jurisdiction of, all federal, provincial, state, local or foreign Governmental
Authorities and other Persons, as are necessary to own or lease its properties
and to conduct its business in the manner that is standard and customary for a
business of its nature other than such Permits the absence of which,
individually or in the aggregate, has not and could not reasonably be expected
to materially or adversely affect the Vessel Owning Subsidiary.  The
Vessel Owning Subsidiary has fulfilled and performed all its obligations with
respect to such Permits which are or will be due to have been fulfilled and
performed by such date and no event has occurred that would prevent the Permits
from being renewed or reissued or that allows, or after notice or lapse of time
would allow, revocation or termination thereof or results or would result in any
impairment of the rights of the holder of any such Permit, except for such
non-renewals, non-issues, revocations, terminations and impairments that would
not, individually or in the aggregate, materially or adversely affect the Vessel
Owning Subsidiary, and none of such Permits contains any restriction that is
materially burdensome to the Vessel Owning Subsidiary.

       

      
        
           

        

        
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  SECTION 5.14  No Material Adverse Change
in Business.  Since July 12, 2007, there has been no material
adverse change in the condition, financial or otherwise, or in the earnings,
properties, business affairs or business prospects of the Vessel Owning
Subsidiary, whether or not arising in the ordinary course of business, that
would have or could reasonably be expected to have a material adverse effect on
the condition, financial or otherwise, or in the earnings, business affairs or
business prospects of the Vessel Owning Subsidiary.

       

      ARTICLE
VI

       

      Representations
and Warranties of

      the
Seller regarding the Vessel

       

      The Seller represents and warrants to
the Buyer that as of the date hereof:

       

           
      SECTION
6.01  Title to
Vessel.  The Vessel Owning Subsidiary is the owner
(beneficially and of record) of the Vessel and has good and marketable title to
the Vessel.

       

              
   SECTION 6.02  No
Encumbrances.  The Vessel Owning Subsidiary and the Vessel are
free of all Encumbrances other than the Encumbrances arising under the Charter
or the Credit Facility.

       

              
   SECTION 6.03  Condition.  The
Vessel is (i) adequate and suitable for use by the Vessel Owning Subsidiary in
the manner that is standard and customary for a vessel of its type, ordinary
wear and tear excepted; (ii) seaworthy in all material respects for hull and
machinery insurance warranty purposes and in good running order and repair;
(iii) insured against all risks, and in amounts, consistent with common industry
practices; (iv) in compliance with maritime laws and regulations; and (v) in
compliance in all material respects with the requirements of its class and
classification society; and all class certificates of the Vessel are clean and
valid and free of recommendations affecting class; and the Buyer acknowledges
and agrees that, subject only to the representations and warranties in this
Agreement, it is acquiring the Vessel on an “as is, where is”
basis.

       

      ARTICLE
VII

       

      Amendments
and Waivers

       

            
     SECTION
7.01  Amendments and
Waivers.  This Agreement may not be amended except by an
instrument in writing signed on behalf of each parties hereto.  By an
instrument in writing the Buyer, on the one hand, or the Seller, on the other
hand, may waive compliance by the other with any term or provision of this
Agreement that such other party was or is obligated to comply with or
perform.

       

      
        
           

        

        
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      ARTICLE
VIII

       

      Indemnification

       

           
      SECTION
8.01  Indemnity by the
Seller.  The Seller shall be liable for, and shall indemnify
the Buyer and each of its subsidiaries and each of their directors, employees,
agents and representatives (the “Buyer Indemnitees”)
against and hold them harmless from, any Losses, suffered or incurred by such
Buyer Indemnitee:

       

                     
(a).          
by reason of, arising out of or otherwise in respect of any inaccuracy in, or
breach of, any representation or warranty (without giving effect to any
supplement to the schedules or qualifications as to materiality or dollar amount
or other similar qualifications), or a failure to perform or observe any
covenant, agreement or obligation of, the Seller in or under this Agreement or
in or under any document, instrument or agreement delivered pursuant to this
Agreement by the Seller;

       

             
(b).           any
fees, expenses or other payments incurred or owed by the Seller or the Vessel
Owning Subsidiary to any brokers, financial advisors or comparable other persons
retained or employed by it in connection with the transactions contemplated by
this Agreement; or

       

         
(c).           by
reason of, arising out of or otherwise in respect of obligations, liabilities,
expenses, cost and claims relating to, arising from or otherwise attributable to
the assets owned by the Vessel Owning Subsidiary or the assets, operations, and
obligations of the Vessel Owning Subsidiary or the businesses thereof, in each
case, to the extent relating to, arising from, or otherwise attributable to
facts, circumstances or events occurring prior to the Closing Date.

       

           
      SECTION
8.02  Indemnity by the
Buyer.  The Buyer shall indemnify the Seller and its
subsidiaries other than any Buyer Indemnitees and each of their respective
officers, directors, employees, agents and representatives (the “Seller Indemnitees”)
against and hold them harmless from, any Losses, suffered or incurred by such
Seller Indemnitee by reason of, arising out of or otherwise in respect of any
inaccuracy in, or breach of, any representation or warranty (without giving
effect to any supplement to the schedules occurring after the date hereof or
qualifications as to materiality or dollar amount or other similar
qualifications), or a failure to perform or observe any covenant, agreement or
obligation of, the Buyer in or under this Agreement or in or under any document,
instrument or agreement delivered pursuant to this Agreement by the
Buyer.

       

      ARTICLE
IX

       

      Miscellaneous

       

         
        SECTION
9.01  Governing
Law.  This Agreement shall be governed by, and construed in
accordance with, the laws of the State of New York applicable to contracts made
and to be performed wholly within such jurisdiction without giving effect to
conflict of law principles thereof other than Section 5-1401 of the New York
General Obligations Law, except to the extent that it is mandatory that the law
of some other jurisdiction, wherein the Vessels are located, shall
apply.

       

      
        
           

        

        
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                 SECTION 9.02  Counterparts.  This
Agreement may be executed simultaneously in one or more counterparts, each of
which shall be deemed an original, but all of which shall constitute but one and
the same instrument.

       

                 SECTION 9.03  Complete
Agreement.  This Agreement and Schedules hereto contain the
entire agreement between the parties hereto with respect to the transactions
contemplated herein and, except as provided herein, supersede all previous oral
and written and all contemporaneous oral negotiations, commitments, writings and
understandings.

       

                 SECTION 9.04  Interpretation.  The
headings contained in this Agreement are for reference purposes only and shall
not affect in any way the meaning or interpretation of this
Agreement.

       

                 SECTION 9.05  Severability.  If
any of the provisions of this Agreement are held by any court of competent
jurisdiction to contravene, or to be invalid under, the laws of any governmental
body having jurisdiction over the subject matter hereof, such contravention or
invalidity shall not invalidate the entire Agreement.  Instead, this
Agreement shall be construed as if it did not contain the particular provision
or provisions held to be invalid, and an equitable adjustment shall be made and
necessary provision added so as to give effect, as nearly as possible, to the
intention of the Parties as expressed in this Agreement at the time of execution
of this Agreement.

       

                 SECTION 9.06  Third Party
Rights.  Except to the extent provided in Article X, a Person
who is not a party to this Agreement has no right to enforce or to enjoy the
benefit of any term of this Agreement.

       

                 SECTION 9.07  Notices.  Any
notice, claim or demand in connection with this Agreement shall be delivered to
the parties at the following addresses (or at such other address or facsimile
number for a party as may be designated by notice by such party to the other
party):

       

      (a).           if
to Capital Maritime & Trading Corp., as follows:

       

      c/o
Capital Ship Management Corp., 3 Iassonos Street, Piraeus, Greece

      Attention:     Evangelos
M. Marinakis

      Facsimile:     +30
210 428 4286

       

      (b).           if
to Capital Product Partners L.P., as follows:

       

      c/o
Capital Ship Management Corp., 3 Iassonos Street, Piraeus, Greece

      Attention:     Ioannis
E. Lazaridis

      Facsimile:     +30
210 428 4285

       

      
        
           

        

        
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      and any
such notice shall be deemed to have been received (i) on the next working
day in the place to which it is sent, if sent by facsimile or (ii) forty
eight (48) hours from the time of dispatch, if sent by courier.

       

                 SECTION 9.08  Representations and
Warranties to Survive.  All representations and warranties of
the Buyer and Seller contained in this Agreement shall survive the Closing and
shall remain operative and in full force and effect after the Closing,
regardless of (a) any investigation made by or on behalf of any Party or its
affiliates, any Person controlling any Party, its officers or directors, and (b)
delivery of and payment for the Shares.

       

      

      

      
        
           

        

        
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      IN WITNESS WHEREOF, each of the parties
hereto has caused this Agreement to be signed as of the date first above
written.

       

      
        
          	 	
                  CAPITAL
      MARITIME & TRADING CORP.

                	 
	 	 	 	 
	
                   

                	
                  By:
      

                	 	 
	 	Name: 
      Evangelos M. Marinakis	 
	 	Title:   
      President and Chief Executive Officer	 
	 	 	 	 

        

      

       

      
        
          
            	 	
                    
                      CAPITAL
      PRODUCT PARTNERS L.P.

                      
                        By:
      Capital GP L.L.C., its general partner

                      

                    

                  	 
	 	 	 	 
	
                     

                  	
                    By:
      

                  	 	 
	 	Name: 
      Ioannis E. Lazaridis	 
	 	
                    Title:   
      Chief Executive Officer and Chief 

                                
      Financial
      Officer of Capital GP, L.L.C.

                  	 
	 	 	 	 

          

        

         

      

       

       

       

       

       

       

       

      13

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