Document:

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         THIS FIRST PREFERRED MORTGAGE is made and given this 30th day of
September, 1997 by Harriet Ltd., a company organized and existing under the
laws of the Cayman Islands, having its registered office in Grand Cayman,
Cayman Islands, British West Indies, and qualified as a foreign maritime
entity under the laws of the Republic of Liberia (the "Owner"), as mortgagor,
in favor of CHRISTIANIA BANK OG KREDITKASSE ASA, a banking corporation
organized and existing under the laws of the Kingdom of Norway, acting
through its main office in Oslo, Norway, in its capacity as security trustee,
(the "Mortgagee"), as mortgagee.

                            W H E R E A S : -

         A.  The Owner is the sole owner of the whole of the vessel HARRIET
(ex NAUSICAA) (the "Vessel"), Official No. 10845, of 78,596 gross registered
tons and 43,083 net registered tons, built in Sakaide, Japan in 1989 and
registered and documented in the name of the Owner under the laws and flag of
the Republic of Liberia at the Port of Monrovia.

         B.  Pursuant to a loan facility agreement dated September 30, 1997
(the "Senior Facility Agreement"), made by and among, INTER ALIOS, the Owner,
as borrower, and the Banks (as defined therein), (the "Senior Lenders"), as
senior lenders, and Christiania Bank og Kreditkasse ASA, as agent and
security trustee for the Senior Lenders (in its capacity as agent, the
"Agent" and in its capacity as security trustee ("Security Trustee"), a copy
of which is attached hereto as Exhibit A, the Senior Lenders, in accordance
with the terms of the Senior Facility Agreement, made available to the Owner
a loan facility in the principal amount of U.S. $24,400.00 (the "Senior
Loan"), the Senior Loan to be repaid by the Owner in twenty consecutive
quarterly installments, commencing December 30, 1997, with a final
installment due on September 30, 2002, each of the first through the fourth
of such quarterly installments to be in the principal amount of U.S.
$700,000, each of the fifth through the eighth of such quarterly installments
to be in the principal amount of U.S. $800,000, each of the ninth through the
nineteenth of such quarterly installments to be in the principal amount of
U.S. $900,000 and a final such quarterly installment to be in the principal
amount of U.S. $8,500,000.

         C.  Pursuant to the terms of the Senior Facility Agreement the
Senior Loan shall bear interest at the rate

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per annum equal to the aggregate of (i) LIBOR (as defined in the Senior
Facility Agreement) and (ii) one and one-eighth percent (1 1/8%) (the "Senior
Interest") payable as provided therein; default interest thereon shall be
payable by the Owner at the rate per annum of one percent (1%) above the
Senior Interest Rate (the "Senior Default Rate").

         D.  Pursuant to an ISDA master agreement dated September 26, 1997
(the "CBK ISDA Master Agreement"), the form of which is attached hereto as
Exhibit B, between the Owner and Christiania Bank og Kreditkasse ASA (in such
capacity, the "CBK Swap Counterparty"), as swap counterparty, the CBK Swap
Counterparty agreed to make available to the Owner an interest rate swap
facility.

         E.  The CBK ISDA Master Agreement provides that one of the
conditions upon which the CBK Swap Counterparty will make the swap facility
available to the Owner is that the Owner shall mortgage the Vessel to the
Mortgagee to secure the repayment of the Owner's obligations under the
CBK ISDA Master Agreement and the payment of interest thereon and of all
other sums of money from time to time owing to the CBK Swap Counterparty
under the CBK ISDA Master Agreement up to the amount of U.S. $575,000.

         F.  In accordance with a confirmation letter dated September 30,
1997 (the "CBK Senior Confirmation Letter"), a copy of which is attached
hereto as Exhibit C, made by and between the Owner and the CBK Swap
Counterparty, the CBK Swap Counterparty agreed to make available to the Owner
an interest rate swap in respect of its interest in the Senior Loan under
which the CBK Swap Counterparty has a maximum potential exposure of U.S.
$425,000 (the "CBK Senior Contingent Sum") upon the terms and conditions
contained therein.

         G.  Pursuant to an ISDA master agreement dated September 30, 1997
(the "SE Banken ISDA Master Agreement"), the form of which is attached hereto
as Exhibit D, between the Owner and Skandinaviska Enskitda Banken AB (publ)
(the "SE Banken Swap Counterparty"), a swap counterparty, the SE Banken Swap
Counterparty agreed to make available to the Owner an interest rate swap
facility.

         H.  The SE Banken ISDA Master Agreement provides that one of the
conditions upon which the SE Banken Swap Counterparty will make the swap
facility available to the Owner is that the Owner shall mortgage the Vessel
to the

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Mortgagee to secure the repayment of the Owner's obligations under the SE
Banken ISDA Master Agreement and the payment of interest thereon and of all
other sums of money from time to time owing to the SE Banken Swap
Counterparty under the SE Banken ISDA Master Agreement up to the amount of
U.S. $425,000.

         I.  In accordance with a confirmation letter dated September 30,
1997 (the "SE Banken Senior Confirmation Letter"), a copy of which is
attached hereto as Exhibit E, made by and between the Owner and the SE Banken
Swap Counterparty, the SE Banken Swap Counterparty agreed to make available
to the Owner an interest rate swap in respect of its interest in the Senior
Loan under which the SE Banken Swap Counterparty has a maximum potential
exposure of U.S. $425,000 (the "SE Banken Senior Contingent Sum" and,
together with the CBK Senior Contingent Sum, the "Senior Contingent Sums")
upon the terms and conditions contained therein.

         J.  Pursuant to a loan facility agreement dated September 30, 1997
(the "Junior Facility Agreement" and, together with the Senior Facility
Agreement, the "Facility Agreements"), made by and among, INTER ALIOS, the
Owner, as borrower, and Christiania Bank og Kreditkasse ASA (in such
capacity, the "Junior Lender" and together with any subsequent transferees,
the "Junior Lenders"; the Junior Lender, the Senior Lenders, the CBK Swap
Counterparty and the SE Banken Swap Counterparty are hereinafter referred to
as the "Creditors")), as initial junior lender, a copy of which is attached
hereto as Exhibit B, the Junior Lender, in accordance with the terms of the
Junior Facility Agreement made available to the Owner a loan facility in the
principal amount of U.S. $3,000,000 (the "Junior Loan"), the Junior Loan to
be repaid by the Owner on September 30, 2002 in one installment to be in the
amount necessary to repay the Junior Loan in full.

         K.  Pursuant to the terms of the Junior Facility Agreement, the
Junior Loan shall bear interest at the rate per annum equal to the aggregate
of (i) LIBOR (as defined in the Junior Facility Agreement) and (ii) three
percent (3%) (the "Junior Interest Rate"); default interest thereon shall be
payable by the Owner at the rate per annum of one percent (1%) above the
Junior Interest Rate (the "Junior Default Rate" and, together with the Senior
Default Rate, the "Default Rates").

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         L.  In accordance with a confirmation letter dated September 30,
1997 (the "Junior Confirmation Letter", and together with the Junior ISDA
Master Agreement, the Senior ISDA Master Agreement, the CBK Senior
Confirmation Letter and the SE Banken Senior Confirmation Letter, the "Swap
Agreements"), a copy of which is attached hereto as Exhibit G, made by and
between the Owner and the CBK Swap Counterparty, the CBK Swap Counterparty
agreed to make available to the Owner an interest rate swap in respect of the
Junior Loan under which the CBK Swap Counterparty has a maximum potential
exposure of One Hundred Fifty Thousand United States Dollars (U.S. $150,000)
(the "Junior Contingent Sum") upon the terms and conditions contained therein.

         M.  Pursuant to a trust deed dated September 30, 1997 (the "Trust
Deed") made by and among, INTER ALIOS, the Owner, as borrower, the Creditors,
the Agent and the Security Trustee, the Security Trustee agreed, INTER ALIA,
to receive hold, administer and enforce this Mortgage on behalf of the
Creditors.

         N.  The Owner, in order to secure the repayment of the Outstanding
Indebtedness (as that term is defined in sub-clause 1.1 hereof) and to secure
the performance and observance of and compliance with all the covenants,
terms and conditions in the Facility Agreements, the Swap Agreements and this
Mortgage contained, expressed or implied to be performed, observed and
complied with by and on the part of the Owner, has duly authorized the
execution and delivery of this First Preferred Mortgage under and pursuant to
Chapter 3 of Title 22 of the Liberian Code of Laws of 1956, as amended.

NOW, THEREFORE, THIS MORTGAGE WITNESSETH.

1.  DEFINITIONS

    In this Mortgage, unless the context otherwise requires:

    1.1    "Outstanding Indebtedness" means the Senior Loan, the Junior Loan,
           the Senior Contingent Sums, the Junior Contingent Sum, interest
           thereon and all other sums of money owing to the Creditors by the
           Owner from time to time under or in connection with the Facility
           Agreements, the Swap Agreements and this Mortgage;

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    1.2    "the Vessel" means the whole of the vessel described in Recital
           (A) hereof and includes all her engines, machinery, boats,
           boilers, masts, rigging, anchors, chains, cables, apparel, tackle,
           outfit, spare gear, fuel, consumable or other stores, belongings,
           freights and appurtenances whether on board or ashore, whether now
           owned or hereafter acquired, and all additions, improvements and
           replacements hereafter made in or to the said Vessel, or any part
           thereof, except the Vessel, do not become the property of the
           Owner and except that it is not intended that this Mortgage shall
           include property other than the Vessel and it shall not include
           property other than the Vessel as that term is used in subdivision
           2 of Section 106 of Chapter 3 of Title 22 of the Liberian Code of
           Laws of 1956, as amended; and

2.  SECURITY

    In consideration of the premises and of other good and valuable
    consideration, the receipt and adequacy whereof are hereby acknowledged,
    and in order to secure the payment of the Outstanding Indebtedness in the
    specific manner set forth in this Mortgage, the Swap Agreements and the
    Facility Agreements, the Owner has granted, conveyed and mortgaged and
    does by these presents grant, convey and mortgage to and in favor of the
    Mortgagee, its successors and assigns, the whole of the Vessel TO HAVE
    AND TO HOLD the same unto the Mortgagee, its successors and assigns,
    forever, upon the terms set forth in this Mortgage for the enforcement of
    the payment of the Outstanding Indebtedness and to secure the performance
    and observance of and compliance with the covenants, terms and conditions
    in this Mortgage, the Swap Agreements and the Facility Agreements
    contained, PROVIDED, HOWEVER, and the terms of this Mortgage are such
    that, this Mortgage shall be discharged, canceled and have no further
    effect when there shall be no further amounts payable to the Creditors in
    respect of the Outstanding Indebtedness and the Owner shall have complied
    with all of the covenants, terms and conditions in this Mortgage, the
    Swap Agreements and the Facility Agreements contained.

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3.  DECLARATION OF INDEBTEDNESS

    The Owner hereby covenants and agrees to pay the Outstanding Indebtedness
    to the Mortgagee and/or the Creditors or their successors and assigns.

4.  CONTINUING SECURITY

    It is declared and agreed that the security created by this Mortgage
    shall be held by the Mortgagee as a continuing security for the payment of
    the Outstanding Indebtedness and that the security so created shall not
    be satisfied by any intermediate payment or satisfaction of any part of
    the amount hereby secured.

5.  INSURANCE AND MAINTENANCE OF THE VESSEL

    The Owner covenants and agrees, unless the Mortgagee has given its prior
    written consent to the contrary:

    (i)    to insure and keep the Vessel insured or procure that the Vessel
           is kept insured at no expense to the Mortgagee or the Creditors at
           all times and for as long as the Vessel is subject to this
           Mortgage, against such risks, including, but not limited to, Hull
           and Machinery, Hull Interest, Loss of Hire, Freight Interest,
           Protection & Indemnity (including satisfactory (in the sole
           opinion of the Mortgagee) cover for pollution liability) and War
           Risk insurances, in such amounts, on such terms and with such
           insurers as the Mortgagee may reasonably require, and to register
           and maintain the registration of the Mortgagee's interest in all
           insurance policies with such insurers;

    (ii)   to ensure that the insurance value of the Vessel covers the actual
           risks to which the Vessel is from time to time exposed, but not
           less than (i) with respect to Hull & Machinery insurance at least
           eighty percent (80%) of the Fair Market Value of the Vessel and
           (ii) except with respect to P&I and Loss of Hire insurance, the
           higher of the Fair Market Value and one hundred twenty percent
           (120%) of the then outstanding amount of the Outstanding
           Indebtedness upon such terms and with such deductibles as shall
           from time to time be approved by the Mortgagee;

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    (iii)  to deliver an annual certificate to the Mortgagee from the
           insurance broker(s) through whom the insurances relevant to the
           Vessel have been placed evidencing that the insurances referred to
           in sub-clause (i) above have been taken out in respect of the
           Vessel and that such insurances are in full force and effect;

     (iv)  at the request of the Mortgagee, to obtain (at the Owner's
           expense) Mortgagee Interest Insurance and, if so requested by the
           Mortgagee, Extended Mortgagee Interest - Additional Perils
           (Pollution Cover) Insurance relevant to the Vessel in the form and
           substance satisfactory to the Mortgagee;

      (v)  to reimburse the Mortgagee, from time to time, for all costs and
           expenses incurred by the Mortgagee in its procurement of a
           Mortgagee's Interest Policy in respect of its interest in the
           Vessel (including Additional Perils (Pollution) coverage);

     (vi)  to keep and to cause to be kept the Vessel in a good and efficient
           state of repair so that the Vessel is classed and maintained in
           the highest class with American Bureau of Shipping or another
           classification society acceptable to the Mortgagee, and to comply
           with the provisions of all laws, regulations and requirements
           (statutory or otherwise) from time to time applicable to
           vessels registered under the flag of the Republic of Liberia,
           and at all times to maintain the approval of the Vessel
           by all oil company majors, and to procure that all repairs to or
           replacements of any damaged, worn or lost parts or equipment be
           effected in such manner (both as regards workmanship and quality
           of materials) as not to diminish the value of the Vessel and to
           permit the Mortgagee, at the cost of the Mortgagee, by surveyors
           or other persons appointed by it in its behalf to board the Vessel
           at all reasonable times for the purpose of inspecting her
           condition or for the purpose of satisfying itself in regard to
           proposed or executed repairs and to afford all proper facilities
           for such inspections, provided that such inspections will cause no
           undue delay to the Vessel;

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    (vii)  not to employ the Vessel or suffer her employment in any trade or
           business which is forbidden by the laws of the Republic of Liberia
           or is otherwise illicit or in carrying illicit or prohibited goods
           or in any manner whatsoever which may render her liable to
           condemnation in a Prize Court or to destruction, seizure or
           confiscation of the Vessel and, in the event of hostilities in any
           part of the world (whether war be declared or not), not to employ
           the Vessel or suffer her employment in carrying any contraband
           goods or to enter or trade to any zone which is declared a war
           zone by any government or by the Vessel's War Risks insurers,
           unless necessary extra War Risks insurance cover has been obtained
           for the Vessel;

   (viii)  not to change the registration of the Vessel from the laws and
           flag of the Republic of Liberia without the prior written consent
           of the Mortgagee;

     (ix)  to maintain its qualification in good standing as a foreign
           maritime entity in the Republic of Liberia;

      (x)  not to sell, agree to sell, abandon or otherwise dispose of the
           Vessel or any interest therein or to suffer the disposition of any
           thereof;

     (xi)  to pay to the Mortgagee and/or the Creditors on demand, all moneys
           (including reasonable fees of counsel) whatsoever which the
           Mortgagee and/or the Creditors shall or may expend, be put to or
           become liable for, in or about the protection, maintenance or
           enforcement of the security created by this Mortgage or in or
           about the exercise by the Mortgagee and/or the Creditors of any of
           the powers vested in it hereunder or under the Facility Agreements
           and the Swap Agreements and to pay interest thereon at the Default
           Rates from the date such demand for payment is made;

    (xii)  To immediately notify the Mortgagee of:

           (a)  any accident to the Vessel involving repairs the cost whereof
                will or is likely to exceed

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                the sum of U.S. $500,000 (or the equivalent in any other
                currency);

           (b)  any occurrence in consequence whereof the Vessel has become
                or is likely to become a total loss;

           (c)  any arrest of the Vessel or the exercise or purported
                exercise of any lien on the Vessel or the earnings of the
                Vessel;

           (d)  any requisition for title or other compulsory acquisition of
                the Vessel otherwise than by requisition for hire; and

           (e)  any capture, seizure, arrest, detention or confiscation of
                the Vessel by any government or by persons acting or
                purporting to act on behalf of any governments;

           (f)  any material interruption in the operation of the Vessel,
                including, but not limited to an Off-Hire period of five days
                or more, and the financial implications of such interruption;

   (xiii)  not bring the Vessel in any yard for repairs (other than for the
           purpose of ordinary drydockings at regular intervals), the costs
           of which might exceed U.S. $500,000 (or the equivalent thereof in
           any other currency), in addition to normal drydocking expenses, or
           permit any major change or structural alteration to be made to the
           Vessel.

    (xiv)  not to create, incur or permit to be placed or imposed or
           continued upon the Vessel any lien whatsoever other than for
           Master's and crew's wages, salvage compensation and disbursements
           arising by operation of law and the lien of this Mortgage;

     (xv)  to comply with all declaration and reporting requirements imposed
           by the Protection and Indemnity Club or insurers including,
           without limitation, the quarterly declarations required by the
           U.S. Oil Pollution Clause 20/2/91, and to insure payment of all
           premiums required to

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           maintain in force the maximum U.S. Oil Pollution Cover;

    (xvi)  not in any material way change, amend, negotiate, cancel or
           terminate the Charter or the Management Agreement without the
           prior written consent of the Mortgagee;

   (xvii)  to permit a valuation of the Vessel pursuant to the terms of
           Clause 14.1 of each of the Facility Agreements; and

  (xviii)  to place or to cause to be placed and at all times and places to
           retain or to cause to be retained a properly certified copy of
           this Mortgage on board the Vessel with her papers and cause this
           Mortgage to be exhibited to any and all persons having business
           with the Vessel which might give rise to any lien thereon; other
           than liens permitted under the preceding Clause 5(xiv) hereof, and
           to any representative of the Mortgagee on demand; and to place and
           keep or to cause to be placed and kept prominently displayed in
           the chart room and in the Master's cabin of the Vessel a framed
           printed notice in plain type in English of such size that the
           paragraph of reading matter shall cover a space not less than six
           (6) inches wide by nine (9) inches high, reading as follows:

           "NOTICE OF MORTGAGE

           This Vessel is covered by a First Preferred Mortgage to
           Christiania Bank og Kreditkasse ASA, as security trustee, under
           the authority of Title 22 of the Liberian Code of Laws of 1956, as
           amended. Under the terms of the said First Preferred Mortgage,
           neither the Owner nor any charterer not the Master nor any officer
           or agent of this Vessel nor any other person has any right, power
           or authority to create, incur or permit to be imposed upon this
           Vessel any lien whatsoever other than for crew's wages or salvage."

6.  AUTHORITY OF THE MORTGAGEE

    Without prejudice to any other rights of the Mortgagee hereunder:

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      (i)  in the event that the provisions of Clause 5(i) hereof or any of
           them shall not be complied with, the Mortgagee shall be at liberty
           to effect and thereafter to replace, maintain and renew all such
           insurances relating to the Vessel as in its sole discretion it may
           think fit;

     (ii)  in the event that the provisions of Clause 5(vi) hereof shall not
           be complied with, the Mortgagee shall be at liberty to arrange for
           the carrying out of such repairs and/or surveys as it deems
           expedient or necessary; and

    (iii)  any and all expenses incurred by the Mortgagee (including
           reasonable fees of counsel) in respect of its performance under
           the foregoing sub-clauses (i) and (ii) shall be paid by the Owner
           on demand, with interest thereon at the Senior Default Rate from
           the date when such expenses were paid by the Mortgagee.

7.  EVENTS OF DEFAULT

      (A)  Each of the following events shall constitute an Event of Default:

      (i)  an Event of Default (as defined in the Senior Facility Agreement)
           stipulated in Clause 16 of the Senior Facility Agreement shall
           occur and be continuing;

     (ii)  an Event of Default (as defined in the Junior Facility Agreement)
           stipulated in Clause 16 of the Junior Facility Agreement shall
           occur and be continuing;

    (iii)  failure to pay when due the Outstanding Indebtedness or any
           portion thereof; and

     (iv)  a default by the Owner in the due and punctual observance of any
           of the covenants in this Mortgage and such default if capable of
           remedy is not remedied within ten (10) business days after notice
           from the Mortgagee to the Owner requesting action to remedy such
           default. The remedy period of ten (10) business days shall not
           apply to the Owner's obligations according to Clause 5(i), (ii),
           (iv) and (xv) hereof.

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      (B)  If any Event of Default shall happen, the Mortgagee, shall be
           entitled:

      (i)  to demand payment by written notice to the Owner of the
           Outstanding Indebtedness, whereupon such payment by the Owner to
           the Mortgagee and/or the Creditors shall be immediately due and
           payable, anything contained in the Facility Agreements, the Swap
           Agreements or this Mortgage to the contrary notwithstanding and
           without prejudice to any other rights and remedies of the
           Mortgagee or the Creditors under the Facility Agreements, the Swap
           Agreements or this Mortgage;

     (ii)  to exercise all the rights and remedies in foreclosure and
           otherwise given to mortgagees by any applicable law, including
           those under the provisions of Chapter 3 of Title 22 of the
           Liberian Code of Laws of 1956, as amended;

    (iii)  to take possession of the Vessel, wherever the same may be,
           without prior demand and without legal process (when permissible
           under applicable law);

     (iv)  to require that all policies, contracts, and other records in
           respect to the insurances relating to the Vessel (including
           details of and correspondence concerning outstanding claims) be
           forthwith delivered to such adjusters, brokers or other insurers
           as the Mortgagee may nominate;

      (v)  to collect, recover, compromise and give a good discharge for all
           claims then outstanding or thereafter arising under the insurances
           relating to the Vessel or any of them and to take over or
           institute (if necessary using the name of the Owner) all such
           proceedings in connection therewith as the Mortgagee in its
           absolute discretion thinks fit and to permit the brokers through
           whom collection or recovery is effected to charge the usual
           brokerage therefor;

     (vi)  to discharge, compound, release or compromise claims against the
           Owner in respect of the Vessel which have given or may give rise
           to any charge or

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           lien on the Vessel or which are or may be enforceable by
           proceedings against the Vessel;

    (vii)  to take appropriate judicial proceedings for the foreclosure of
           this Mortgage and/or for the enforcement of the Mortgagee's and
           Creditors' rights under the Facility Agreements, the Swap
           Agreements, this Mortgage or otherwise; and to recover judgment
           for any amount due by the Owner under this Mortgage; and

   (viii)  to sell the Vessel or any interest therein with or without the
           benefit of any charterparty by public auction at home or abroad,
           or by private sale upon at least ten (10) business days prior
           written notice to the Owner and upon such terms as the Mortgagee
           in its absolute discretion may determine, with power to postpone
           any such sale and in the absence of negligence or willful neglect
           without being answerable for any loss occasioned by such sale or
           resulting from postponement thereof.

8.  APPLICATION OF PROCEEDS

    The proceeds of any sale made either under the power of sale hereby
    granted to the Mortgagee or under a judgment or decree in any judicial
    proceedings for the foreclosure of this Mortgage or for the enforcement
    of any remedy granted to the Mortgage or for the enforcement of any
    remedy granted to the Mortgagee hereunder, or any net earnings arising
    from the management, charter or other use of the Vessel by the Mortgagee
    under any of the powers herein contained or by law provided, or the
    proceeds of any and all insurances relating to the Vessel and any claims
    for damages on account of the Vessel or the Owner of any nature
    whatsoever or any requisition compensation, shall be applied as follows:

    FIRST: To the payment of all costs and expenses (together with interest
    thereon at the Senior Default Rate) of the Mortgagee and the Creditors
    including the reasonable compensation of their agents and attorneys, by
    reason of any sale, retaking, management or operation of the Vessel and
    all other sums payable to the Mortgagee and the Creditors hereunder by
    reason of any expenses or liabilities incurred or advances made by them
    for the protection, maintenance and enforcement of the security or of any
    of their rights hereunder or

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    in the pursuit of any remedy hereby conferred; and at the option of the
    Mortgagee and/or the Creditors to the payment of all taxes, assessments
    or liens claiming priority over the lien of this Mortgage;

    SECOND: To the payment in full of the Outstanding Indebtedness if then
    due and payable; and

    THIRD: Any surplus thereafter remaining, to the Owner or the Owner's
    successors in interest and assigns or to whomsoever may be entitled
    thereto.

    In the event that the proceeds are insufficient to pay the amounts
    specified in paragraphs "First" and "Second" above, the Mortgagee and/or
    the Creditors shall be entitled to collect the balance from the Owner or
    any other person liable therefor.

9.  DELEGATION

    The Mortgagee and the Creditors shall be entitled at any time and as
    often as may be expedient to delegate all or any of the powers and
    discretions vested in them by this Mortgage (including the power vested
    in the Mortgagee by virtue of Clause 10 hereof) in such manner and upon
    such terms and to such persons as the Mortgagee and the Creditors in
    their absolute discretion may think fit.

10. POWER OF ATTORNEY

    The Owner hereby irrevocably appoints the Mortgagee as its
    attorney-in-fact to do in its name or in the name of the Owner all acts
    which the Owner, or its successors or assigns, could do in relation to
    the Vessel, including without limitation, to execute and deliver charters
    and a bill of sale with respect to the Vessel.

    PROVIDED, HOWEVER, that such power shall not be exercisable by or on
    behalf of the Mortgagee unless and until any Event of Default stipulated
    in Clause 7(A) hereof shall occur.

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11. RECORDATION

    For the purpose of recoding this First Preferred Mortgage as required by
    Chapter 3 of Title 22 of the Liberian Code of Laws of 1956, as amended,
    the total amount is U.S. $28,400,000, of which U.S. $24,400,000
    represents the Senior Loan, of which U.S. $3,000,000 represents the
    Junior Loan, of which U.S. $850,000 represents the Senior Contingent
    Sums, of which U.S. $150,000 represents the Junior Contingent Sum, and
    interest and performance of mortgage covenants. The date of maturity with
    respect to the Senior Loan is September 30, 2002 the date of maturity
    with respect to the Junior Loan is September 30, 2002 and the date of
    maturity with respect to each of the Senior Contingent Sums and the
    Junior Contingent Sum is on demand. The discharge amount is the same as
    the total amount. For property other than the Vessel if any should be
    determined to be covered by this Mortgage, the discharge amount is 0.01%
    of the total amount.

12. NOTICES

    Notices and other communications required or permitted by this Mortgage
    shall, until further notice in writing of a change therein, be in writing
    delivered personally or mailed (airmailed, if international) by
    registered or certified mail, with proof of delivery requested, telexed
    or telefaxed as follows:

    If to the Owner:         Harriet Ltd.
                             c/o General Maritime III Corporation
                             730 Fifth Avenue
                             New York, N.Y.  10019

                             Attn: Peter C. Georgiopoulos, Director
                             Telefax No.: +(212) 698-9628

    If to the Mortgagee:     Christiania Bank of Kreditkasse ASA
                             P.O. Box 1166 Sentrum
                             0107 Oslo 1,
                             Norway

                             Attn: Shipping/Offshore/Aviation
                             Telefax No.: +011-47-22-48-66-68

                                 15

<PAGE>

    Every notice or demand shall, except so far as otherwise expressly
    provided by this Mortgage, be deemed to have been received, in the case
    of letter, on the date of delivery to the recipient thereof, and in the
    case of a telefax transmission, on the date and at the time of dispatch
    thereof (provided that if the date of dispatch is not a business day in
    the locality of the party to whom such notice or demand is sent it shall
    be deemed to have been received on the next following business day in
    such locality).

          IN WITNESS WHEREOF, the Owner has executed this Mortgage by its
    duly authorized representative on the day and year first above written.

                                   Signed, sealed and delivered as a Deed by
                                   Harriet Ltd.

                                   By:  /s/ John P. Tavlarios
                                      ----------------------------------------
                                      Name:   John P. Tavlarios
                                      Title:  Attorney-in-Fact

                                    16<PAGE>

                                 AMENDMENT NO. 1

                            Dated: September 29, 2000

                                       TO

                            FIRST PREFERRED MORTGAGE

                            Dated: September 30, 1997

                                  HARRIET LTD.

                                                the Owner

                                       and

                      CHRISTIANIA BANK OG KREDITKASSE ASA,

                                                Mortgagee

                                    "HARRIET"

<PAGE>

                  THIS FIRST PREFERRED MORTGAGE AMENDMENT NO. 1, dated September
29, 2000, between HARRIET LTD., a company organized and existing under the laws
of the Cayman Islands, having its registered office in Grand Cayman, Cayman
Islands, British West Indies, and qualified as a foreign maritime entity under
the laws of the Republic of Liberia (the "Owner"), and CHRISTIANIA BANK OG
KREDITKASSE ASA, a banking corporation organized and existing under the laws of
the Kingdom of Norway, as security trustee (herein, in such capacity, called the
"Mortgagee") under a trust deed, dated September 30, 1997, among the Owner, the
Mortgagee, the Senior Agent, the Junior Agent, the CBK Senior Swap Counterparty,
the CBK Junior Swap Counterparty, the Senior Lenders, the Junior Lenders and the
SE Banken Senior Swap Counterparty (as such terms are hereinafter defined).

                              W I T N E S S E T H:

                  WHEREAS, the Owner has heretofore executed and delivered to
the Mortgagee a First Preferred Mortgage (the "Mortgage"), dated September 30,
1997, covering the whole of the vessel named HARRIET (the "Vessel"), Official
No. 10845, documented in the name of the Owner under the laws of the Republic of
Liberia, having its home port at Monrovia, Liberia, of 78,596 gross tons and
43,083 net tons or thereabouts;

<PAGE>

                  WHEREAS, the Mortgage was duly filed for record in the Office
of the Deputy Commissioner or Maritime Affairs of the Republic of Liberia at New
York, New York in Book PM 49, page 876 at 11:01 A.M.
E.D.S.T. on September 30, 1997;

                  WHEREAS, the Mortgage was given to secure the payment and
performance by the Owner of its obligations under (i) a Senior Facility
Agreement (the "Senior Facility Agreement"), dated September 30, 1997, among the
Owner, as borrower, the financial institutions set forth in the Fourth Schedule
thereto (collectively, the "Senior Lenders"), as lenders, Christiania Bank og
Kreditkasse ASA, as agent (in such capacity, the "Senior Agent") for the Senior
Lenders, and the Mortgagee, as security trustee, pursuant to which the Senior
Lenders have heretofore severally loaned to the Owner U.S.$24,400,000 (the
"Senior Loan"), of which original principal amount there remains outstanding on
the date hereof U.S.$15,700,000, (ii) an ISDA Master Agreement, dated September
26, 1997, between the Owner and Christiania Bank og Kreditkasse ASA (in such
capacity, the "CBK Senior Swap Counterparty"), and Confirmation Letter, dated
September 26, 1997 (said ISDA Master Agreement and Confirmation Letter being
herein collectively called the "CBK Senior Swap Agreement"), pursuant to which
the CBK Senior Swap Counterparty has made available to the Owner an interest
rate swap facility to enable the Owner to fix the interest rate on a portion of
its

                                       2
<PAGE>

indebtedness under the Senior Facility Agreement, (iii) an ISDA Master
Agreement, dated September 26, 1997, between the Owner and Skandinaviska
Enskilda Banken AB (publ) (in such capacity, the "SE Banken Senior Swap
Counterparty"), and Confirmation Letter, dated September 29, 1997 (said ISDA
Master Agreement and Confirmation Letter being herein collectively called the
"SE Banken Senior Swap Agreement"), pursuant to which the SE Banken Senior Swap
Counterparty has made available to the Owner an interest rate swap facility to
enable the Owner to fix the interest rate on a further portion of its
indebtedness under the Senior Facility Agreement, (iv) a Junior Facility
Agreement (the "Junior Facility Agreement"), dated September 30, 1997, among the
Owner, as borrower, the financial institutions as are a party thereto
(collectively, the "Junior Lenders"), as lenders, Christiania Bank og
Kreditkasse ASA, as agent (in such capacity, the "Junior Agent") for the Junior
Lenders, and the Mortgagee, as security trustee, pursuant to which the Junior
Lenders have heretofore severally loaned to the Owner U.S.$3,000,000 (the
"Junior Loan"), all of which original principal amount remains outstanding on
the date hereof, and (v) an ISDA Master Agreement, dated September 26, 1997,
between the Owner and Christiania Bank og Kreditkasse ASA (in such capacity, the
"Junior Swap Counterparty"), and Confirmation Letter, dated September 26, 1997
(said ISDA Master Agreement and Confirmation

                                       3
<PAGE>

Letter being herein collectively called the "Junior Swap Agreement") (the CBK
Senior Swap Agreement, the SE Banken Senior Swap Agreement and the Junior Swap
Agreement being herein collectively called the "Swap Agreements"), pursuant to
which the Junior Swap Counterparty has made available to the Owner an interest
rate swap facility to enable the Owner to fix the interest rate on its
indebtedness under the Junior Facility Agreement;

                  WHEREAS, pursuant to an Amendment Agreement (the "Junior
Facility Amendment Agreement") (the Senior Facility Agreement and the Junior
Facility Agreement, as amended by the Junior Facility Amendment Agreement, being
herein called the "Facility Agreements"), dated September , 2000, among the
Owner, the Mortgagee, the Junior Lenders and the Junior Agent (a copy of the
form of which, with Schedules, is annexed hereto as Exhibit 1), to the Junior
Facility Agreement, Christiania Bank og Kreditkasse ASA has loaned to the Owner
an additional U.S. $600,000, thereby increasing the Junior Loan to U.S.
$3,600,000, such additional loan to bear interest as provided in the Junior
Facility Amendment Agreement and to be repayable in full on or before September
30, 2002;

                  WHEREAS, the Owner and the Mortgagee desire to amend the
Mortgage to have the Vessel stand as security under the Mortgage, as amended by
this Amendment, for the payment and

                                       4
<PAGE>

performance by the Owner of its obligations under the Senior Facility Agreement,
under the CBK Senior Swap Agreement, under the SE Banken Senior Swap Agreement,
under the Junior Loan Agreement, as amended by the Junior Facility Amendment
Agreement, and under the Junior Swap Agreement.

                  NOW, THEREFORE, in consideration of the premises and of other
good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Owner and the Mortgagee hereby agree as follows:

                  SECTION 1. In order to secure the payment of the Outstanding
Indebtedness (as such term is defined in Section 2 hereof) in the specific
manner set forth in the Mortgage, as hereby amended, in the Swap Agreements and
in the Facility Agreements, the Owner has granted, conveyed and mortgaged and
does by these presents grant, convey and mortgage to and in favor of the
Mortgagee, its successors and assigns, the whole of the Vessel, TO HAVE AND TO
HOLD the same unto the Mortgagee, its successors and assigns, forever upon the
terms set forth in the Mortgage, as hereby amended, for the enforcement of the
payment of the Outstanding Indebtedness and to secure the performance and
observance of and compliance with the covenants, terms and conditions in the
Mortgage, as hereby amended, in the Swap Agreements and in the Facility
Agreements, contained, PROVIDED, HOWEVER, and the terms of the Mortgage, as
hereby amended, are

                                       5
<PAGE>

such that, the Mortgage, as hereby amended, shall be discharged, cancelled and
have no further effect when there shall be no further amounts payable to the
Senior Lenders, the Senior Agent, the Junior Lenders, the Junior Agent, the
Mortgagee, the CBK Senior Swap Counterparty, the SE Banken Senior Swap
Counterparty and the Junior Swap Counterparty in respect of the Outstanding
Indebtedness and the Owner shall have complied with all of the covenants, terms
and conditions in the Mortgage, as hereby amended, in the Swap Agreements and in
the Facility Agreements contained.

                  SECTION 2. The term "Facility Agreements", as used in the
Mortgage, as amended hereby, shall be deemed to mean the Senior Facility
Agreement and the Junior Facility Agreement, as amended by the Junior Facility
Amendment Agreement. The term "Outstanding Indebtedness" as used hereinabove and
in the Mortgage, as amended hereby, shall be deemed to mean the Senior Loan, the
Junior Loan (as increased to $3,600,000 pursuant to the terms of the Junior
Facility Amendment Agreement), the Senior Contingent Sums (as such term is
defined in the Mortgage), the Junior Contingent Sum (as such term is defined in
the Mortgage), interest thereon and all other sums of money owing to the Senior
Lenders, the Senior Agent, the Junior Lenders, the Junior Agent, the Mortgagee,
the CBK Senior Swap Counterparty, the SE Banken Senior Swap Counterparty and/or
the

                                       6
<PAGE>

Junior Swap Counterparty by the Owner from time to time under or in connection
with the Facility Agreements, the Swap Agreements and the Mortgage, as hereby
amended.

                  SECTION 3. This Amendment shall be recorded in the office of
the Deputy Commissioner of Maritime Affairs of the Republic of Liberia in New
York, New York, at the expense of the Owner, and the Owner will cause to be
placed on board the Vessel a duly certified copy of this Amendment.

                  SECTION 5. This Amendment amends mortgage covenants and
decreases the total amount secured by the Mortgage to U.S. $20,300,000, together
with interest thereon and performance of mortgage covenants. The maturity date
for the additional U.S. $600,000 loan is September 30, 2002, the maturity dates
set forth in Clause 10 of the Mortgage for the balance of the indebtedness
secured hereby remain the same and the discharge amount remains the same as the
total amount.

                  SECTION 6. All other terms and provisions of the Mortgage
shall remain unchanged and all of the terms and provisions of the Mortgage, as
amended by this Amendment, shall be deemed incorporated herein with the same
effect as though set forth at length in this Amendment.

                  IN WITNESS WHEREOF, the parties hereto have caused this
Amendment to be executed and delivered by their respective

                                       7
<PAGE>

duly authorized officers or attorneys-in-fact on the date first above written.

                                Signed, sealed and delivered as as
                                a Deed by HARRIET LTD.

                                By:________________________

                                     Name:
                                     Title:

                                CHRISTIANIA BANK OG KREDITKASSE ASA

                                By:_________________________________

                                     Name:
                                     Title:

                                       8
<PAGE>

                                 ACKNOWLEDGEMENT

STATE OF NEW YORK          )
                           : ss:
COUNTY OF NEW YORK         )

                  On the 29th day of September, in the year 2000, before me, the
undersigned, a Notary Public in and for said State, personally appeared        ,
personally known to me or proved to me on the basis of satisfactory evidence to
be the individual whose name is subscribed to the within instrument and
acknowledged to me that he executed the same in his capacity, and that by his
signature on the instrument, the individual, or the person upon behalf of which
the individual acted, executed the instrument.

                                                 --------------------------
                                                       Notary Public

                                       9
<PAGE>

                                 ACKNOWLEDGEMENT

STATE OF NEW YORK          )
                           : ss:
COUNTY OF NEW YORK         )

                  On the 29th day of September, in the year 2000, before me, the
undersigned, a Notary Public in and for said State, personally appeared        ,
personally known to me or proved to me on the basis of satisfactory evidence to
be the individual whose name is subscribed to the within instrument and
acknowledged to me that he executed the same in his capacity, and that by his
signature on the instrument, the individual, or the person upon behalf of which
the individual acted, executed the instrument.

                                                 --------------------------
                                                        Notary Public

                                       10

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