Document:

EXHIBIT
      10.7

    
 

    Private
      & Confidential

     

    LOAN
      AGREEMENT

    for
      a Multicurrency Loan of up to

    TWENTY
      EIGHT MILLION DOLLARS ($28,000,000)

    to

    MARATHASSA
      SHIPPING CORPORATION

     

    provided
      by

    The
      Royal Bank of Scotland plc

     

    

     

    
      
        
        

      

      
      

      

        

      

    
    
      
      

    

    Contents

     

    
      
        
          	
                  Clause

                	 	
                  Page

                
	 	 	 
	
                  1

                	
                  Purpose
                    and definitions

                	
                  1

                
	 	 	 
	
                  2

                	
                  The
                    Commitment and the Loan

                	
                  11

                
	 	 	 
	
                  3

                	
                  Interest
                    and Interest Periods

                	
                  12

                
	 	 	 
	
                  4

                	
                  Currencies

                	
                  14

                
	 	 	 
	
                  5

                	
                  Repayment
                    and prepayment

                	
                  17

                
	 	 	 
	
                  6

                	
                  Commitment
                    commission, fees and expenses

                	
                  21

                
	 	 	 
	
                  7

                	
                  Payments
                    and taxes; accounts and calculations

                	
                  22

                
	 	 	 
	
                  8

                	
                  Representations
                    and warranties

                	
                  23

                
	 	 	 
	
                  9

                	
                  Undertakings

                	
                  28

                
	 	 	 
	
                  10

                	
                  Conditions

                	
                  34

                
	 	 	 
	
                  11

                	
                  Events
                    of Default

                	
                  35

                
	 	 	 
	
                  12

                	
                  Indemnities

                	
                  39

                
	 	 	 
	
                  13

                	
                  Unlawfulness
                    and increased costs

                	
                  41

                
	 	 	 
	
                  14

                	
                  Security
                    and set-off

                	
                  42

                
	 	 	 
	
                  15

                	
                  Accounts

                	
                  43

                
	 	 	 
	
                  16

                	
                  Assignment,
                    transfer and lending office

                	
                  44

                
	 	 	 
	
                  17

                	
                  Notices
                    and other matters

                	
                  46

                
	 	 	 
	
                  18

                	
                  Governing
                    law and jurisdiction

                	
                  47

                

        

      

    

     

    
      
        
          	
                  Schedule
                    1 Form of Drawdown Notice

                	
                  48

                
	 	 
	
                  Schedule
                    2 Documents and evidence required as conditions precedent

                	
                  50

                
	 	 
	
                  Schedule
                    3 Calculation of Additional Cost

                	
                  55

                
	 	 
	
                  Schedule
                    4 Form of Interest Period Letter

                	
                  58

                
	 	 
	
                  Schedule
                    5 Form of Mortgage

                	
                  59

                
	 	 
	
                  Schedule
                    6 Form of Deed of Covenant

                	
                  65

                
	 	 
	
                  Schedule
                    7 Form of General Assignment

                	
                  66

                
	 	 
	
                  Schedule
                    8 Form of Manager’s Undertaking

                	
                  67

                
	 	 
	
                  Schedule
                    9 Form of Master Swap Agreement

                	
                  68

                
	 	 
	
                  Schedule
                    10 Form of Master Agreement Security Deed

                	
                  69

                

        

      

    

     

    
      
        
        

      

      
      

      

        

      

    
    
      
      

    

    THIS
      AGREEMENT
      is dated
      16 February 2005 and made BETWEEN:

     

    
      	
            	(1)	
              MARATHASSA
                SHIPPING CORPORATION
                as
                Borrower, and

            

    

     

    
      	
            	(2)	
              THE
                ROYAL BANK OF SCOTLAND plc
                as
                Bank.

            

    

     

    IT
      IS AGREED
      as
      follows:

     

    
      
        
          
            	
                  	1	
                    Purpose
                      and
                      definitions

                  

          

        

      

    

     

    
      	
            	1.1	
              Purpose

            

    

     

    This
      Agreement sets out the terms and conditions upon and subject to which the Bank
      agrees to make available to the Borrower a loan of up to Twenty eight million
      Dollars ($28,000,000), or the equivalent in Optional Currencies, to be used
      for
      the purpose of refinancing part of the purchase price of the Ship paid by the
      Borrower and to provide the Borrower with working capital.

     

    
      	
            	1.2	
              Definitions

            

    

     

    In
      this
      Agreement, unless the context otherwise requires:

     

    “Additional
      Cost”
means
      in relation to any period a percentage calculated for such period at an annual
      rate determined by the application of the formula set out in
      schedule 3;

     

    “Assignee”
has
      the
      meaning ascribed thereto in clause 16.3;

     

    “Bank”
means
      The Royal Bank of Scotland plc whose registered office is at 36 St. Andrew
      Square, Edinburgh EH2, 2YB, Scotland, acting for the purposes of this Agreement
      through its branch at The Shipping Business Centre, 5-10 Great Tower Street,
      London, EC3P 3HX, England (or of such other address as may last have been
      notified to the Borrower pursuant to clause 16.6) and includes its successors
      in
      title and Assignees and Transferees;

     

    “Banking
      Day”
means
      a
      day (other than Saturday or Sunday) and:

     

    
      	 	
              (a)

            	
              for
                interest rate fixing purposes:

            

    

     

    
      	 	
              (i)

            	
              in
                relation to a rate fixing in respect of euro, a day on which the
                Trans-European Automated Real-Time Gross Settlement Express Transfer
                system (TARGET) is operating; and

            

    

     

    
      	 	
              (ii)

            	
              in
                relation to a rate fixing in respect of any Optional Currency or
                Dollars,
                a day on which banks are open for business in the principal financial
                centre in, respectively, the jurisdiction of the relevant Optional
                Currency or New York City; and

            

    

     

    
      
        
        

      

      
      

      

        

      

    
    
      
      

    

     

    
      	 	
              (b)

            	
              for
                all other purposes (including, but not limited to, payments and receiving
                notices):

            

    

     

    
      	 	
              (i)

            	
              on
                which banks are open for business in London;
                and

            

    

     

    
      	 	
              (ii)

            	
              in
                relation to payments in euros, a day on which banks are open for
                business
                in such other principal financial centre or centres of relevant
                Participating Member States as the Bank may nominate;
                and

            

    

     

    
      	 	
              (iii)

            	
              in
                relation to payments in any Optional Currency or Dollars, a day on
                which
                banks are open for business in the principal financial centre in,
                respectively, the jurisdiction of the relevant Optional Currency
                or New
                York City;

            

    

     

    “Borrowed
      Money”
means
      Indebtedness in respect of (i) money borrowed or raised and debit balances
      at
      banks, (ii) any bond, note, loan stock, debenture or similar debt instrument,
      (iii) acceptance or documentary credit facilities, (iv) receivables sold or
      discounted (otherwise than on a non-recourse basis), (v) deferred payments
      for
      assets or services acquired, (vi) finance leases and hire purchase contracts,
      (vii) swaps, forward exchange contracts, futures and other derivatives, (viii)
      any other transaction (including without limitation forward sale or purchase
      agreements) having the commercial effect of a borrowing or raising of money
      or
      of any of (ii) to (vii) above and (ix) guarantees in respect of Indebtedness
      of
      any person falling within any of (i) to (viii) above;

     

    “Borrower”
means
      Marathassa Shipping Corporation of 80 Broad Street, Monrovia, Republic of
      Liberia and includes its successors in title;

     

    “Borrower’s
      Security Documents”
means,
      at any relevant time, such of the Security Documents as shall have been executed
      by the Borrower at such time;

     

    “Canadian
      Dollars”
and
      “C$”
means
      the lawful currency for the time being of Canada;

     

    “Cash
      Collateral Account”
means
      an interest bearing Dollar account of the Borrower to be opened by the Borrower
      with the Bank and includes any other account designated in writing by the Bank
      to be a Cash Collateral Account for the purposes of this Agreement;

     

    “Classification”
means
      the classification “+100A1 Bulk Carrier Strengthened for Heavy Cargoes, Hold
      Nos. 2,4 and 6 May Be Empty, ESP, ShipRight (SDA,FDA,CM), ESN, LI, IWS +LMC,UMS
      with descriptive note ‘Pt.Higher Tensile Steel’ and “SCM” with the
      Classification Society or such other classification as the Bank shall, at the
      request of the Borrower, have agreed in writing shall be treated as the
      Classification for the purposes of the Security Documents;

     

    “Classification
      Society”
means
      Lloyds Register or such other classification society which the Bank shall,
      at
      the request of the Borrower, have agreed in writing shall be treated as the
      Classification Society for the purposes of the Security Documents;

     

    
      
        
        

      

      2

      

        

      

    
    
      
      

    

     

    “Code”
means
      the International Management Code for the Safe Operation of Ships and for
      Pollution Prevention constituted pursuant to Resolution A. 741 (18) of the
      International Maritime Organisation and incorporated into the Safety of Life
      at
      Sea Convention and includes any amendments or extensions thereto and any
      regulation issued pursuant thereto;

     

    “Commitment”
means
      the amount which the Bank has agreed to lend to the Borrower under clause 2.1
      as
      reduced by any relevant term of this Agreement;

     

    “Compulsory
      Acquisition”
means
      requisition for title or other compulsory acquisition, requisition,
      appropriation, expropriation, deprivation, forfeiture or confiscation for any
      reason of the Ship by any Government Entity or other competent authority,
      whether de jure or de facto, but shall exclude requisition for use or hire
      not
      involving requisition of title;

     

    “Credit
      Support Document”
has
      the
      meaning given to that expression in section 14 of the Master Swap Agreement
      and
      as set out in paragraph (f) of Part 4 of the Schedule to the Master Swap
      Agreement;

     

    “Credit
      Support Provider”
means
      any person defined as such in the Master Swap Agreement pursuant to section
      14
      of the Master Swap Agreement;

     

    “Deed
      of Covenant”
means
      the deed of covenant collateral to the Mortgage executed or (as the context
      may
      require) to be executed by the Borrower in favour of the Bank in substantially
      the form set out in schedule 6 or in such other form as the Bank may in its
      absolute discretion require;

     

    “Default”
means
      any Event of Default or any event or circumstance which with the giving of
      notice or lapse of time or the satisfaction of any other condition (or any
      combination thereof) would constitute an Event of Default;

     

    “DOC”
means
      the document of compliance issued to an Operator in accordance with rule 13
      of
      the Code;

     

    “Dollar
      Amount”
means
      (a) in relation to a Tranche to be drawn down in Dollars or, as the case may
      be,
      in relation to the Loan if it is to be wholly drawn down in Dollars, the amount
      in Dollars so drawn down (b) in relation to a Tranche to be drawn down in an
      Optional Currency or, as the case may be, in relation to the Loan if it is
      to be
      wholly drawn down in an Optional Currency, the amount in Dollars specified
      in
      the Drawdown Notice which would be required to purchase the principal amount
      of
      that Tranche or, as the case may be, the Loan as determined in accordance with
      clause 4.3 and (c) in relation to clause 5.1 where the Loan has been converted
      in whole or in part into one or more Optional Currencies pursuant to clause
      4.4,
      the amount in Dollars which would have been outstanding had the Loan been
      originally drawn down in, and remained outstanding at all times in, Dollars,
      as
      reduced by any repayment or prepayment under this Agreement;

     

    “Dollars”
and
      “$”
mean
      the lawful currency of the United States of America and in respect of all
      payments to be made under any of the Security Documents mean funds 

     

    
      
        
        

      

      3

      

        

      

    
    
      
      

    

     

    which
      are
      for same day settlement in the New York Clearing House Interbank Payments System
      (or such other U.S. dollar funds as may at the relevant time be customary for
      the settlement of international banking transactions denominated in U.S.
      dollars);

     

    “Drawdown
      Date”
means
      the date, being a Banking Day falling not later than the Termination Date,
      on
      which the Loan is, or is to be, drawn down;

     

    “Drawdown
      Notice”
means
      a
      notice substantially in the terms of schedule 1;

     

    “Encumbrance”
means
      any mortgage, charge (whether fixed or floating), pledge, lien, hypothecation,
      assignment, trust arrangement or security interest or other encumbrance of
      any
      kind securing any obligation of any person or any type of preferential
      arrangement (including without limitation title transfer and/or retention
      arrangements having a similar effect);

     

    “Environmental
      Affiliate”
means
      any agent or employee of the Borrower or any person having a contractual
      relationship with the Borrower in connection with the Ship or its operation
      or
      the carriage of cargo and/or passengers thereon and/or the provision of goods
      and/or services on or from the Ship;

     

    “Environmental
      Approval”
means
      any consent, authorisation, licence or approval of any governmental or public
      body or authorities or courts applicable to the Ship or its operation or the
      carriage of cargo and/or passengers thereon and/or the provision of goods and/or
      services on or from the Ship required under any Environmental Law;

     

    “Environmental
      Claim”
means
      any and all enforcement, clean-up, removal or other governmental or regulatory
      actions or orders instituted or completed pursuant to any Environmental Law
      or
      any Environmental Approval together with claims made by any third party relating
      to damage, contribution, loss or injury, resulting from any actual or threatened
      emission, spill, release or discharge of a Pollutant from the Ship;

     

    “Environmental
      Laws”
means
      all national, international and state laws, rules, regulations, treaties and
      conventions applicable to the Ship pertaining to the pollution or protection
      of
      human health or the environment including, without limitation, the carriage
      of
      Pollutants and actual or threatened emissions, spills, releases or discharges
      of
      Pollutants;

     

    “Equivalent
      Amount”
means,
      as at any date, the equivalent in one currency of an amount in another currency
      as converted at the rate determined by the Bank to be the spot rate of exchange
      ruling on the London Foreign Exchange Market for the purchase of the former
      currency with the latter currency at or about 11:00 a.m. on the second Banking
      Day before such date;

     

    “EURIBOR”
shall
      mean in relation to any amount in euros and any period the offered rate for
      deposits for such amount and for such period which is:

     

    
      	 	
              (a)

            	
              the
                rate of interest for such period which appears on page 248 of the
                Dow
                Jones Telerate screen (or such other page on the Dow Jones Telerate
                screen
                as may 

            

    

     

    
      
        
        

      

      4

      

        

      

    
    
      
      

    

     

    customarily
      be used from time to time to display EURIBOR rates) at or about 11:00 a.m.
      (Brussels time) on the Quotation Date for such period; or

     

    
      	 	
              (b)

            	
              if
                the relevant rate of EURIBOR cannot be determined in accordance with
                paragraph (a) above, the rate (rounded upwards if necessary to the
                nearest
                one sixteenth of one per cent) the Bank offers for deposits in an
                amount
                approximately equal to the amount in relation to which EURIBOR is
                to be
                determined for a period equivalent to such period to prime banks
                in the
                London Interbank Market at or about 11:00 a.m. (London time) on the
                Quotation Date for such period;

            

    

     

    “euro”
and
      “euros”
and
      “€”
mean
      the single currency of Participating Member States introduced in accordance
      with
      the provisions of Article 109(1)4 of the Treaty and in respect of all payments
      to be made under this Agreement in euro means immediately available, freely
      transferable funds;

     

    “Event
      of Default”
means
      any of the events or circumstances described in clause 11.1;

     

    “Flag
      State”
means
      the Republic of Cyprus or such other state or territory designated in writing
      by
      the Bank, at the request of the Borrower, as being the “Flag State” of the Ship
      for the purposes of the Security Documents;

     

    “Funding
      Cost”
means
      (i) in respect of the Loan or, as the case may be, any Tranche to be advanced
      or
      outstanding in euros, EURIBOR or (ii) in respect of the Loan or, as the case
      may
      be, any Tranche to be advanced or outstanding in Dollars or an Optional Currency
      (other than euros), LIBOR;

     

    “General
      Assignment”
means
      the assignment collateral to the Mortgage and Deed of Covenant executed or
      (as
      the context may require) to be executed by the Borrower in favour of the Bank
      in
      substantially the form set out in schedule 7 or in such form as the Bank may
      in
      its absolute discretion require;

     

    “Government
      Entity”
means
      and includes (whether having a distinct legal personality or not) any national
      or local government authority, board, commission, department, division, organ,
      instrumentality, court or agency and any association, organisation or
      institution of which any of the foregoing is a member or to whose jurisdiction
      any of the foregoing is subject or in whose activities any of the foregoing
      is a
      participant;

     

    “Indebtedness”
means
      any obligation for the payment or repayment of money, whether as principal
      or as
      surety and whether present or future, actual or contingent;

     

    “Interest
      Payment Date”
means
      the last day of an Interest Period;

     

    “Interest
      Period”
means
      each period for the calculation of interest in respect of the Loan ascertained
      in accordance with clauses 3.2 and 3.3;

     

    “Interest
      Period Letter”
means
      the letter addressed by the Borrower to the Bank, such letter to be
      substantially in the form set out in schedule 4;

     

    
      
        
        

      

      5

      

        

      

    
    
      
      

    

     

    “ISPS
      Code”
means
      the International Ship and Port Facility Security Code constituted pursuant
      to
      resolution A.924(22) of the International Maritime Organisation now set out
      in
      Chapter XI-2 of the International Convention for the Safety of Life at Sea
      (SOLAS) 1974 (as amended) and the mandatory ISPS Code as adopted by a Diplomatic
      Conference of the International Maritime Organisation on Maritime Security
      in
      December 2002 and includes any amendments or extensions to it and any regulation
      issued pursuant to it;

     

    “ISSC”
means,
      in relation to the Ship, an International Ship Security Certificate issued
      in
      respect of the Ship pursuant to the ISPS Code;

     

    “Japanese
      Yen”
and
“¥”
      mean the lawful currency for the time being of Japan;

     

    “LIBOR”
means,
      in relation to a particular period, the rate for deposits of the relevant
      currency for a period equivalent to such period at or about 11:00 a.m. (London
      time) on the Quotation Date for such period as displayed on Telerate page 3750
      or, as the context may require, page 3740 (British Bankers’ Association Interest
      Settlement Rates) (or such other page as may replace such page 3750 or, as
      the
      context may require, page 3740 on such system or on any other system of the
      information vendor for the time being designated by the British Bankers’
Association to calculate the BBA Interest Settlement Rate (as defined in the
      British Bankers’ Association’s Recommended Terms and Conditions (“BBAIRS” terms)
      applicable at the time)), provided that if on such date no such rate is so
      displayed, LIBOR for such period shall be the rate (rounded upward if necessary
      to five decimal places) quoted by the Bank as the Bank’s offered rate for
      deposits of the relevant currency in an amount approximately equal to the amount
      in relation to which LIBOR is to be determined for a period equivalent to such
      period to prime banks in the London Interbank Market at or about 11:00 a.m.
      (London time) on the Quotation Date for such period;

     

    “Loan”
means
      the principal amount borrowed by the Borrower on the Drawdown Date or (as the
      context may require) the principal amount owing to the Bank under this Agreement
      at any relevant time;

     

    “Manager”
means
      Safety Management Overseas S.A. of Edificio Torre Universal, Piso 12 Avenida
      Federico Boyd, P.O. Box 8807, Panama Republic of Panama, or any other person
      appointed by the Borrower, with the prior written consent of the Bank, as the
      manager of the Ship and includes its successors in title;

     

    “Management
      Agreement”
means
      the agreement entered or (as the context may require) to be entered into (in
      a
      form and substance acceptable to the Bank in its sole discretion) between the
      Borrower and the Manager providing (inter alia) for the Manager to manage the
      Ship;

     

    “Manager’s
      Undertaking”
means
      an undertaking and assignment executed or (as the context may require) to be
      executed by the Manager in favour of the Bank as a condition precedent to the
      approval of the Management Agreement, such undertaking to be in substantially
      the form set out in schedule 8 or in such form as the Bank may in its absolute
      discretion require;

     

    
      
        
        

      

      6

      

        

      

    
    
      
      

    

     

    “Margin”
means
      zero point eighty per cent (0.80%) per annum;

     

    “Master
      Agreement Security Deed”
means
      the deed executed or (as the context may require) to be executed by the Borrower
      in favour of the Bank in the form set out in schedule 10;

     

    “Master
      Swap Agreement”
means
      the agreement made between the Bank and the Borrower dated as of 16 February
      2005 comprising an ISDA Master Agreement and the Schedule thereto in the form
      or
      substantially in the form set out in schedule 9, and the Confirmations (as
      defined therein) supplemental thereto;

     

    “month”
means
      a
      period beginning in one calendar month and ending in the next calendar month
      on
      the day numerically corresponding to the day of the calendar month on which
      it
      started, provided that (i) if the period started on the last Banking Day in
      a
      calendar month or if there is no such numerically corresponding day, it shall
      end on the last Banking Day in such next calendar month and (ii) if such
      numerically corresponding day is not a Banking Day, the period shall end on
      the
      next following Banking Day in the same calendar month but if there is no such
      Banking Day it shall end on the preceding Banking Day and “months” and “monthly”
shall be construed accordingly;

     

    “Mortgage”
means
      the first priority statutory mortgage of the Ship executed or (as the context
      may require) to be executed by the Borrower in favour of the Bank in
      substantially the form set out in schedule 5 or in such form as the Bank may
      in
      its absolute discretion require;

     

    “Operator”
means
      any person who is from time to time during the Security Period (as defined
      in
      the Mortgage) concerned in the operation of the Ship and falls within the
      definition of “Company”
set
      out
      in rule 1.1.2 of the Code;

     

    “Optional
      Currency”
means
      Swiss Francs, Japanese Yen, Canadian Dollars, euros or Sterling so long as
      each
      such currency is freely transferable, freely convertible into Dollars and dealt
      in on the London Interbank Market and, in respect of all payments to be made
      under any of the Security Documents in an Optional Currency, means immediately
      available freely transferable cleared funds in that Optional
      Currency;

     

    “Participating
      Member State”
means
      a
      member state of the European Union that has adopted a single currency in
      accordance with the Treaty;

     

    “Permitted
      Encumbrance”
means
      any Encumbrance in favour of the Bank created pursuant to the Security Documents
      and Permitted Liens;

     

    “Permitted
      Liens”
means
      any lien on the Ship for master’s, officer’s or crew’s wages outstanding in the
      ordinary course of trading, any lien for salvage and any ship repairer’s or
      outfitter’s possessory lien for a sum not (except with the prior written consent
      of the Bank) exceeding the Casualty Amount (as defined in the Deed of
      Covenant);

     

    “Pollutant”
means
      and includes pollutants, contaminants, toxic substances, oil as defined in
      the
      United States Oil Pollution Act of 1990 and all hazardous substances as defined
      in 

    

    
      
        
        

      

      7

      

        

      

    
    
      
      

    

     

    the
      United States Comprehensive Environmental Response, Compensation and Liability
      Act 1980;

     

    “Quotation
      Date”
means,
      in relation to any period for which the relevant Funding Cost is to be
      determined, the date which is two Banking Days prior to the first day of the
      relevant period;

     

    “Registry”
means
      the Department of Merchant Shipping, Limassol, Cyprus or, as the case may be,
      the offices of the Cyprus Consulate in Piraeus;

     

    “Regulatory
      Agency”
means
      the Government Entity or other organisation in the Flag State which has been
      designated by the government of the Flag State to implement and/or administer
      and/or enforce the provisions of the Code;

     

    “Related
      Company”
of
      a
      person means any Subsidiary of such person, any company or other entity of
      which
      such person is a Subsidiary and any Subsidiary of any such company or
      entity;

     

    “Relevant
      Jurisdiction”
means
      any jurisdiction in which or where any Security Party is incorporated, resident,
      domiciled, has a permanent establishment, carries on, or has a place of business
      or is otherwise effectively connected;

     

    “Repayment
      Dates”
means,
      subject to clause 7.3, each of the dates falling at six (6) monthly intervals
      after the Drawdown Date up to and including the date falling one hundred and
      forty four (144) months after the Drawdown Date;

     

    “Requisition
      Compensation”
means
      all sums of money or other compensation from time to time payable during the
      Security Period by reason of the Compulsory Acquisition of the
      Ship;

     

    “Safety
      Account”
means
      an interest bearing Dollar account of the Manager opened with the Bank
      designated SAMAOV-USDA and includes any other account designated in writing
      by
      the Bank to be a Safety Account for the purposes of this Agreement;

     

    “Security
      Documents”
means
      this Agreement, the Mortgage, the Deed of Covenant, the General Assignment,
      the
      Manager’s Undertaking, the Master Swap Agreement and the Master Agreement
      Security Deed and any other documents as may have been or shall from time to
      time after the date of this Agreement be executed to guarantee and/or secure
      all
      or any part of the Loan, interest thereon and other moneys from time to time
      owing by the Borrower pursuant to this Agreement and/or the Master Swap
      Agreement (whether or not any such document also secures moneys from time to
      time owing pursuant to any other document or agreement);

     

    “Security
      Party”
means
      the Borrower, the Manager or any other person who may at any time be a party
      to
      any of the Security Documents (other than the Bank);

     

    “Security
      Requirement”
means
      the amount in Dollars (as certified by the Bank whose certificate shall, in
      the
      absence of manifest error, be conclusive and binding on the 

     

    
      
        
        

      

      8

      

        

      

    
    
      
      

    

     

    Borrower
      and the Bank) which shall be (a) from the Drawdown Date until the date falling
      thirty six (36) months thereafter, one hundred and twenty five per cent (125%)
      of, and (b) from the date falling thirty six (36) months after the Drawdown
      Date
      and thereafter, one hundred and twenty per cent (120%) of, in each case of
      the
      amount which is the sum of (i) the Loan (or the Equivalent Amount in Dollars
      when the Loan is denominated in an Optional Currency) and (ii) the cost (if
      any)
      (as certified by the Bank whose certificate shall, in the absence of manifest
      error, be conclusive and binding on the Borrower and the Bank) of terminating
      any Transaction entered into pursuant to the Master Swap Agreement;

     

    “Security
      Value”
means
      the amount in Dollars (as certified by the Bank whose certificate shall, in
      the
      absence of manifest error, be conclusive and binding on the Borrower and the
      Bank) which, at any relevant time, is the aggregate of (i) the market value
      of
      the Ship as most recently determined in accordance with clause 9.2.2 (ii) the
      market value of any additional security for the time being actually provided
      to
      the Bank pursuant to clause 9.2 and (iii) the amount (if any) at the relevant
      time standing to the credit of the Cash Collateral Account;

     

    “Ship”
means
      m.v. Maritsa
      registered in the name of the Borrower under the laws and flag of the Flag
      State
      with IMO number 9279783;

     

    “SMC”
means
      a
      safety management certificate issued in respect of a Ship in accordance with
      rule 13 of the Code;

     

    “Sterling”
and
      “₤”
mean
      the lawful currency for the time being of the United Kingdom;

     

    “Subsidiary”
of
      a
      person means any company or entity directly or indirectly controlled by such
      person, and for this purpose “control” means either the ownership of more than
      50 per cent of the voting share capital (or equivalent rights of ownership)
      of
      such company or entity or the power to direct its policies and management,
      whether by contract or otherwise;

     

    “Swiss
      Francs”
or
      “CHF”
means
      the lawful currency for the time being of Switzerland;

     

    “Taxes”
      includes all present and future taxes, levies, imposts, duties, fees or charges
      of whatever nature together with interest thereon and penalties in respect
      thereof and “Taxation”
shall
      be construed accordingly;

     

    “Termination
      Date”
means
      30 April 2005 or such later date as the Bank may in its absolute discretion
      agree in writing;

     

    “Total
      Loss”
      means:

     

    
      	 	
              (a)

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

            

    

     

    
      	 	
              (b)

            	
              the
                Compulsory Acquisition of the Ship;
                or

            

    

     

    
      
        
        

      

      9

      

        

      

    
    
      
      

    

     

    
      	 	
              (c)

            	
              the
                hijacking, theft, condemnation, capture, seizure, arrest, detention
                or
                confiscation of the Ship (other than where the same amounts to the
                Compulsory Acquisition of the Ship) by any Government Entity, or
                by
                persons acting or purporting to act on behalf of any Government Entity,
                unless the Ship be released and restored to the Borrower from such
                hijacking, theft, condemnation, capture, seizure, arrest, detention
                or
                confiscation within thirty (30) days after the occurrence
                thereof;

            

    

     

    “Tranche”
means
      each separate portion of the Loan for the purposes of calculation of interest
      or, where the Loan is not divided into separate portions for such purpose,
      means
      the Loan;

     

    “Transaction”
means
      a
      Transaction as defined in the introductory paragraph of the Master Swap
      Agreement;

     

    “Transferee”
has
      the
      meaning ascribed thereto in clause 16.4; and

     

    “Treaty”
means
      the Treaty establishing the European Economic Community, being the Treaty of
      Rome of 25 March 1957 as amended by the Single European Act 1986 and Maastricht
      Treaty (which was signed on 7 February 1992 and came into force on 1 November
      1993) as amended, varied or supplemented from time to time.

     

    
      	
            	1.3	
              Headings

            

    

     

    Clause
      headings and the table of contents are inserted for convenience of reference
      only and shall be ignored in the interpretation of this Agreement.

     

    
      	
            	1.4	
              Construction
                of certain terms

            

    

     

    In
      this
      Agreement, unless the context otherwise requires:

     

    
      	
              1.4.1

            	
              references
                to clauses and schedules are to be construed as references to clauses
                of,
                and schedules to, this Agreement and references to this Agreement
                include
                its schedules;

            

    

     

    
      	
              1.4.2

            	
              references
                to (or to any specified provision of) this Agreement or any other
                document
                shall be construed as references to this Agreement, that provision
                or that
                document as in force for the time being and as amended in accordance
                with
                terms thereof, or, as the case may be, with the agreement of the
                relevant
                parties;

            

    

     

    
      	
              1.4.3

            	
              references
                to a “regulation” include any present or future regulation, rule,
                directive, requirement, request or guideline (whether or not having
                the
                force of law) of any agency, authority, central bank or government
                department or any self-regulatory or other national or supra-national
                authority;

            

    

     

    
      	
              1.4.4

            	
              words
                importing the plural shall include the singular and vice
                versa;

            

    

     

    
      	
              1.4.5

            	
              references
                to a time of day are to London
                time;

            

    

     

    
      
        
        

      

      10

      

        

      

    
    
      
      

    

     

    
      	
              1.4.6

            	
              references
                to a person shall be construed as references to an individual, firm,
                company, corporation, unincorporated body of persons or any Government
                Entity;

            

    

     

    
      	
              1.4.7

            	
              references
                to a “guarantee” include references to an indemnity or other assurance
                against financial loss including, without limitation, an obligation
                to
                purchase assets or services as a consequence of a default by any
                other
                person to pay any Indebtedness and “guaranteed” shall be construed
                accordingly; and

            

    

     

    
      	
              1.4.8

            	
              references
                to any enactment shall be deemed to include references to such enactment
                as re-enacted, amended or extended.

            

    

     

    
      	 	
              2

            	
              The
                Commitment and the Loan

            

    

     

    
      	
            	2.1	
              Agreement
                to lend

            

    

     

    The
      Bank,
      relying upon each of the representations and warranties in clause 8, agrees
      to
      lend to the Borrower upon and subject to the terms of this Agreement the lesser
      of:

     

    
      	 	
              (a)

            	
              Twenty
                eight million Dollars ($28,000,000),
                or

            

    

     

    
      	 	
              (b)

            	
              Seventy
                per cent (70%) of the market value of the Ship as determined pursuant
                to
                the valuation delivered to the Bank under schedule 2 Part 1 paragraph
                9,
                

            

    

     

    or
      the
      equivalent in Optional Currencies calculated in accordance with clause 4, which
      sum may be advanced in one advance but in up to two Tranches of different
      currencies.

     

    
      	
            	2.2	
              Drawdown

            

    

     

    Subject
      to the terms and conditions of this Agreement, the Loan shall be advanced in
      full in one amount (in up to two Tranches) on the Drawdown Date following
      receipt by the Bank from the Borrower of a Drawdown Notice not later than 10
      a.m. on the second Banking Day before the proposed Drawdown Date. A Drawdown
      Notice shall be effective on actual receipt by the Bank and, once given, shall,
      subject as provided in clause 3.6.1, be irrevocable.

     

    
      	
            	2.3	
              Amount

            

    

     

    The
      principal amount specified in the Drawdown Notice for borrowing on the Drawdown
      Date shall, subject to the terms and conditions of this Agreement, not exceed
      the lesser of:

     

    
      	 	
              (a)

            	
              Twenty
                eight million Dollars ($28,000,000),
                or

            

    

     

    
      	 	
              (b)

            	
              Seventy
                per cent (70%) of the market value of the Ship as determined pursuant
                to
                the valuation delivered to the Bank under schedule 2 Part 1 paragraph
                9,

            

    

     

    or
      the
      equivalent in Optional Currencies, calculated in accordance with clause 4,
      which
      sum may be advanced in up to two Tranches of different currencies in accordance
      with 

     

    
      
        
        

      

      11

      

        

      

    
    
      
      

    

     

    clause
      4
      provided that no Tranche has a Dollar Amount of less than $1,000,000 on the
      Drawdown Date as a result. Each Tranche shall be denominated in one currency
      only.

     

    
      	
            	2.4	
              Availability

            

    

     

    Upon
      receipt of a Drawdown Notice complying with the terms of this Agreement the
      Bank
      shall, subject to the provisions of clause 10, on the Drawdown Date make the
      Loan available to the Borrower in accordance with clause 7.2;

     

    
      	
            	2.5	
              Termination
                of Commitment

            

    

     

    If
      the
      Loan is not drawn down by the Termination Date, the Commitment shall thereupon
      be automatically cancelled.

     

    
      	
            	2.6	
              Application
                of Proceeds

            

    

     

    Without
      prejudice to the Borrower’s obligations under clause 9.1.3, the Bank shall have
      no responsibility for the application of proceeds of the Loan by the
      Borrower.

     

    
      	 	
              3

            	
              Interest
                and Interest Periods

            

    

     

    
      	
            	3.1	
              Normal
                interest rate

            

    

     

    Subject
      to paragraph (i) of Part 5 of the Schedule to the Master Swap Agreement, the
      Borrower shall pay interest on each Tranche in the currency in which such
      Tranche is outstanding in respect of each Interest Period relating thereto
      on
      each Interest Payment Date (or, in the case of Interest Periods of more than
      six
      (6) months, by instalments, the first six (6) months from the commencement
      of
      the Interest Period and the subsequent instalments at intervals of six (6)
      months or, if shorter, the period from the date of the preceding instalment
      until the Interest Payment Date relative to such Interest Period) at the rate
      per annum determined by the Bank to be the aggregate of (a) the Margin (b)
      the
      Additional Cost and (c) the Funding Cost for such Interest Period.

     

    
      	
            	3.2	
              Selection
                of Interest Periods

            

    

     

    Subject
      to paragraph (i) of Part 5 of the Schedule to the Master Swap Agreement the
      Borrower may by notice received by the Bank not later than 10 a.m. on the fifth
      Banking Day before the beginning of each Interest Period in relation to each
      Tranche specify whether such Interest Period shall have a duration (subject
      to
      availability which shall be determined solely by the Bank) of one (1), two
      (2),
      three (3), six (6) or twelve (12) months or such other period as the Borrower
      may select and the Bank may, in its absolute discretion, agree.

     

    
      	
            	3.3	
              Determination
                of Interest Periods

            

    

     

    Subject
      to paragraph (i) of Part 5 of the Schedule to the Master Swap Agreement every
      Interest Period shall be of the duration specified by the Borrower pursuant
      to
      clause 3.2 but so that:

     

    
      
        
        

      

      12

      

        

      

    
    
      
      

    

     

    
      	
              3.3.1

            	
              the
                first Interest Period in respect of the Loan or any Tranches into
                which it
                may be divided on the Drawdown Date shall commence on the Drawdown
                Date
                and each subsequent Interest Period in respect of any Tranche shall
                commence on the last day of the previous Interest Period in respect
                of
                such Tranche;

            

    

     

    
      	
              3.3.2

            	
              Interest
                Periods in respect of different Tranches shall end on the same
                day,

            

    

     

    
      	
              3.3.3

            	
              if
                any Interest Period would otherwise overrun a Repayment Date, then,
                in the
                case of the last Repayment Date, such Interest Period shall end on
                such
                Repayment Date, and in the case of any other Repayment Date or Repayment
                Dates the Loan shall be divided into parts so that there is one part
                in
                the amount of the repayment instalment due on each Repayment Date
                falling
                during that Interest Period and having an Interest Period ending
                on the
                relevant Repayment Date and another part in the amount of the balance
                of
                the Loan having an Interest Period ascertained in accordance with
                clause
                3.2 and the other provisions of this clause 3.3 and the expression
                “Interest Period in respect of the Loan” when used in clause 4 and
                elsewhere in this Agreement refers to the Interest Period in respect
                of
                the balance of the Loan; and

            

    

     

    
      	
              3.3.4

            	
              if
                the Borrower fails to specify the duration of an Interest Period
                in
                accordance with the provisions of clause 3.2 and this clause 3.3
                such
                Interest Period shall have a duration of six (6) months or such other
                period as shall comply with this clause
                3.3.

            

    

     

    
      	
            	3.4	
              Default
                interest

            

    

     

    If
      the
      Borrower fails to pay any sum (including, without limitation, any sum payable
      pursuant to this clause 3.4) on its due date for payment under any of the
      Security Documents, the Borrower shall pay interest on such sum on demand from
      the due date up to the date of actual payment (as well after as before judgment)
      at a rate determined by the Bank pursuant to this clause 3.4. The period
      beginning on such due date and ending on such date of payment shall be divided
      into successive periods of not more than three (3) months as selected by the
      Bank each of which (other than the first, which shall commence on such due
      date)
      shall commence on the last day of the preceding such period. The rate of
      interest applicable to each such period shall be the aggregate (as determined
      by
      the Bank) of (a) one per cent (1%) per annum, (b) the Margin, (c) the Additional
      Cost and (d) the Funding Cost for such period. Such interest shall be due and
      payable on the last day of each such period as determined by the Bank and each
      such day shall, for the purposes of this Agreement, be treated as an Interest
      Payment Date, provided that if such unpaid sum is an amount of principal which
      became due and payable, by reason of a declaration by the Bank under clause
      11.2.2 or a prepayment pursuant to clauses 5.2, 5.3, 9.2 or 13.1, on a date
      other than an Interest Payment Date relating thereto, the first such period
      selected by the Bank shall be of a duration equal to the period between the
      due
      date of such principal sum and such Interest Payment Date and interest shall
      be
      payable on such principal sum during such period at a rate of one per cent
      (1%)
      above the rate applicable thereto immediately before it shall have become so
      due
      and payable. If, for the reasons specified in clause 3.6.1, the Bank is unable
      to determine a rate in accordance with the foregoing provisions of this clause
      3.4, interest on any sum not paid on its due date for payment shall be
      calculated at a rate determined by 

     

    
      
        
        

      

      13

      

        

      

    
    
      
      

    

     

    the
      Bank
      to be one per cent (1%) per annum above the aggregate of the Margin and the
      cost
      of funds (including Additional Cost ) to the Bank.

     

    
      	3.5	
              Notification
                of Interest Periods and interest
                rate

            

    

     

    The
      Bank
      shall notify the Borrower promptly of the duration of each Interest Period
      and
      of each rate of interest determined by it under this clause 3.

     

    
      	3.6	
              Market
                disruption;
                non-availability

            

    

     

    
      	
              3.6.1

            	
              If
                and whenever, at any time prior to the commencement of any Interest
                Period, the Bank shall have determined (which determination shall,
                in the
                absence of manifest error, be
                conclusive):

            

    

     

    
      	 	
              (a)

            	
              that
                adequate and fair means do not exist for ascertaining LIBOR or, as
                the
                case may be, EURIBOR during such Interest Period;
                or

            

    

     

    
      	 	
              (b)

            	
              that
                deposits in Dollars are not available to the Bank in the London Interbank
                Market in the ordinary course of business in sufficient amounts to
                fund
                the Loan for such Interest Period;

            

    

     

    the
      Bank
      shall forthwith give notice (a “Determination
      Notice”)
      thereof to the Borrower. A Determination Notice shall contain particulars of
      the
      relevant circumstances giving rise to its issue. After the giving of any
      Determination Notice the undrawn amount of the Commitment shall not be borrowed
      until notice to the contrary is given to the Borrower by the Bank.

     

    
      	
              3.6.2

            	
              During
                the period of ten (10) days after any Determination Notice has been
                given
                by the Bank under clause 3.6.1, the Bank shall certify an alternative
                basis (the “Substitute
                Basis”)
                for maintaining the Loan. The Substitute Basis may (without limitation)
                include alternative interest periods, alternative currencies or
                alternative rates of interest but shall include a margin above the
                cost of
                funds including Additional Cost, if any, to the Bank equivalent to
                the
                Margin. Each Substitute Basis so certified shall be binding upon
                the
                Borrower and shall take effect in accordance with its terms from
                the date
                specified in the Determination Notice until such time as the Bank
                notifies
                the Borrower that none of the circumstances specified in clause 3.6.1
                continues to exist whereupon the normal interest rate fixing provisions
                of
                this Agreement shall apply.

            

    

     

    
      	 	
              4

            	
              Currencies

            

    

     

    
      	
            	4.1	
              Selection
                of currencies

            

    

     

    Subject
      to clause 4.2, if the Borrower so requests in the Drawdown Notice or, in any
      case other than drawdown of the Loan, by notice received by the Bank not later
      than 10 a.m. on the fifth Banking Day before the beginning of an Interest Period
      in respect of the Loan or, as the case may be, Tranche, the Loan, or part
      thereof may be drawn down in an Optional Currency or, on the first day of such
      Interest Period, the Loan or as the case may

     

    
      
        
        

      

      14

      

        

      

    
    
      
      

    

     

    be
      such
      Tranche may be converted into an, or another, Optional Currency or Dollars
      but,
      if no such request is received by the Bank, such Tranche will be drawn down
      in
      Dollars or, as the case may be, will remain outstanding in the currency in
      which
      it was outstanding during its immediately preceding Interest
      Period.

     

    
      	
            	4.2	
              Limit
                on currencies;
                non-availability

            

    

     

    
      	
              4.2.1

            	
              A
                Tranche may not be drawn down in, converted into or remain outstanding
                in
                an Optional Currency if:

            

    

     

    
      	 	
              (a)

            	
              in
                consequence thereof there would be more than two (2) Tranches;
                or

            

    

     

    
      	 	
              (b)

            	
              the
                Bank notifies the Borrower not later than 3 p.m. on the fourth Banking
                Day
                before the date on which such Tranche is to be drawn down or the
                beginning
                of the relevant Interest Period that deposits of such Optional Currency
                are not readily available to the Bank in an amount comparable with
                such
                Tranche; or

            

    

     

    
      	 	
              (c)

            	
              the
                Bank determines (which determination shall be conclusive) at any
                time
                prior to 10 a.m. (local time in the place of payment) on the first
                day of
                the relevant Interest Period that by reason of any change in currency
                availability, currency exchange rates or exchange controls it is
                or will
                be impracticable for such Tranche to be drawn down in, converted
                into or
                remain outstanding in that Optional Currency;
                or

            

    

     

    
      	 	
              (d)

            	
              a
                Default has occurred and is continuing;
                or

            

    

     

    
      	 	
              (e)

            	
              a
                Transaction is outstanding under the Master Swap Agreement,
                

            

    

     

    accordingly,
      in any such event the relevant Tranche shall be drawn down in, remain
      outstanding in or be converted into Dollars.

     

    
      	
              4.2.2

            	
              The
                Borrower shall not be allowed to convert the Loan or any Tranche
                on more
                than four (4) occasions in any twelve month period. The first twelve-month
                period shall commence on the Drawdown Date and each subsequent
                twelve-month period shall commence on the expiry of the previous
                such
                period.

            

    

     

    
      	
            	4.3	
              Currency
                amounts on drawdown

            

    

     

    
      	
              4.3.1

            	
              Drawdown
                in Optional Currency

            

    

     

    If
      a
      Tranche is to be drawn down in an Optional Currency, the Bank shall, subject
      to
      clauses 10.1 and 10.2, advance to the Borrower on drawdown of such Tranche
      the
      Equivalent Amount of such Optional Currency (as determined by the Bank) which
      can be purchased with the Dollar Amount of such Tranche as at the Drawdown
      Date.

     

    
      	
              4.3.2

            	
              Drawdown
                in Dollars

            

    

     

    
      
        
        

      

      15

      

        

      

    
    
      
      

    

     

    If
      a
      Tranche is to be drawn down in Dollars, the Bank shall, subject to clauses
      10.1
      and 10.2, advance to the Borrower on drawdown of such Tranche, the Dollar Amount
      of such Tranche.

     

    
      	
            	4.4	
              Currency
                amount on conversion

            

    

     

    Subject
      to clause 4.2 in the event the Borrower requests the Bank (in accordance with
      clause 4.1) to convert a Tranche into an, or another, Optional Currency (the
      “new
      currency”)
      or
      from an Optional Currency into Dollars, the amount into which such Tranche
      is to
      be converted shall be the Equivalent Amount in the new currency of the currency
      in which such Tranche was outstanding immediately prior to conversion (after
      taking into account any repayment or prepayment due on the date of
      conversion).

     

    
      	
            	4.5	
              Notional
                obligations

            

    

     

    The
      obligation of the Bank to convert the Loan or, as the case may be, a Tranche
      in
      accordance with clause 4.4 is notional only, and the same shall be deemed to
      be
      satisfied by the Bank making appropriate adjustments in the principal amount
      of
      the Loan in the account referred to in clause 7.7.

     

    
      	
            	4.6	
              Currency
                Correction

            

    

     

    Where
      at
      any time the Loan is outstanding in one or more Optional Currencies and/or
      Dollars and the Bank by notice given to the Borrower pursuant to clause 17
      (a
“Currency
      Correction Notice”)
      certifies to the Borrower (which Currency Correction Notice shall in the absence
      of manifest error be conclusive and binding on the Borrower) that the Equivalent
      Amount in Dollars of the Loan then outstanding (less any amount standing to
      the
      credit of the Cash Collateral Account) exceeds by ten per cent (10%) or more
      (the “excess
      amount”),
      the
      Dollar Amount on the date of such Currency Correction Notice, the Borrower
      shall, within five (5) Banking Days from the date of such Currency Correction
      Notice, pay to the Cash Collateral Account such amount in Dollars as shall
      be
      necessary to ensure that the minimum balance standing to the credit of the
      Cash
      Collateral Account is equal to the excess amount.

     

    
      	
            	4.7	
              Release
                of moneys in Cash Collateral
                Account

            

    

     

    Subject
      to clause 9.2.7, if at any time following a payment to the Cash Collateral
      Account in accordance with clause 4.6, the Equivalent Amount in Dollars of
      the
      Loan outstanding no longer exceeds one hundred and ten per cent (110%) of the
      Dollar Amount, the Bank shall release to the Borrower the sums deposited in
      the
      Cash Collateral Account in accordance with clause 4.6 from the Cash Collateral
      Account. The Borrower shall not be entitled to make any withdrawals from the
      Cash Collateral Account other than pursuant to this clause 4.7 and clause
      15.2.

     

    
      	
            	4.8	
              Incidental
                costs and expenses

            

    

     

    All
      costs
      and expenses incidental to any currency conversion pursuant to this clause
      4
      shall be borne by the Borrower.

     

    
      
        
        

      

      16

      

        

      

    
    
      
      

    

     

    
      	 	
              5

            	
              Repayment
                and prepayment

            

    

     

    
      	
            	5.1	
              Repayment

            

    

     

    
      	
              5.1.1

            	
              Subject
                to the terms of this Agreement, the Borrower shall repay the Loan
                by
                twenty four consecutive instalments, one such instalment to be repaid
                on
                each of the Repayment Dates. Subject to the provisions of this Agreement,
                the amount of each of the first six (6) instalments shall be Nine
                hundred
                fifty five thousand Dollars ($955,000) or the equivalent amount in
                an
                Optional Currency calculated in accordance with clause 5.7 and the
                amount
                of each of the seventh to the twenty-third instalment inclusive shall
                be
                Eight hundred and fifteen thousand Dollars ($815,000) or the equivalent
                amount in an Optional Currency calculated in accordance with clause
                5.7
                and the amount of the last instalment shall be Eight million four
                hundred
                and fifteen thousand Dollars ($8,415,000) or the equivalent amount
                in an
                Optional Currency calculated in accordance with clause 5.7. If the
                Commitment is not drawn in full, the amount of each instalment shall
                be
                reduced proportionately.

            

    

     

    
      	
              5.1.2

            	
              The
                Borrower shall, during the period commencing twelve (12) months after
                the
                Drawdown Date and ending one hundred and eight (108) months after
                the
                Drawdown Date, have the option (subject to paragraph (e) below) at
                any
                time to defer the payment of up to two repayment instalments payable
                pursuant to clause 5.1.1 (other than the final instalment) in whole
                (subject to paragraph (f) below);

            

    

     

    
      	 	
              (a)

            	
              such
                option shall be exercisable by a written notice to the Bank from
                the
                Borrower which specifies the instalment to be deferred and which
                is
                received by the Bank at least one (1) month before the Repayment
                Date upon
                which the relevant instalment falls
                due;

            

    

     

    
      	 	
              (b)

            	
              each
                such notice shall be irrevocable once
                given;

            

    

     

    
      	 	
              (c)

            	
              upon
                each occasion that an instalment is deferred pursuant to this proviso,
                the
                amount of each of the remaining instalments shall be increased pro
                rata by
                the amount of the relevant instalment
                deferred;

            

    

     

    
      	 	
              (d)

            	
              upon
                each occasion that an instalment is deferred pursuant to this clause
                5.1.2, the Borrower shall pay to the Bank a flat fee of one per cent
                (1%)
                of the amount deferred within 15 days from the date the notice to
                defer is
                given, pursuant to paragraph (a)
                above;

            

    

     

    
      	 	
              (e)

            	
              such
                option may only be exercised if (i) the written notice to the Bank
                has
                been received within the time period specified in paragraph (a) above
                and
                (ii) at the time the relevant notice is received by the Bank no Default
                has occurred; and

            

    

     

    
      	 	
              (f)

            	
              in
                the event that all the deferred instalments, are subsequently repaid
                or
                prepaid by the Borrower pursuant to clause 5.2, the Borrower shall
                have
                the right on each occasion to defer up to two further repayment
                instalments on the same basis as provided in this clause
                5.1.2.

            

    

     

    
      
        
        

      

      17

      

        

      

    
    
      
      

    

     

    
      	
            	5.2	
              Voluntary
                prepayment

            

    

     

    The
      Borrower may prepay a Tranche in whole or part (being Eight hundred and fifteen
      thousand Dollars ($815,000) or any larger sum which is an integral multiple
      of
      Eight hundred fifteen thousand Dollars ($815,000) or, in each case, the
      equivalent in the relevant Optional Currency) calculated in accordance with
      clauses 5.7:

     

    
      	
              5.2.1

            	
              without
                premium or penalty, on any Interest Payment Date relating to the
                part of
                the Loan being prepaid together with any amounts payable under clause
                12
                and accrued interest to the date of prepayment and any other sums
                then
                payable under this Agreement and/or the Master Swap Agreement and/or
                the
                other Security Documents or any of them in respect of the Loan;
                and

            

    

     

    
      	
              5.2.2

            	
              at
                any other time upon payment to the Bank of accrued interest to the
                date of
                prepayment and such sum as the Bank in its absolute discretion shall
                determine to be the loss (excluding loss of Margin on the amount
                prepaid
                to the end of the then current Interest Period), cost and expense
                incurred
                by the Bank as a result of the prepayment not being made on an Interest
                Payment Date for any part of the Loan being prepaid and any other
                sums
                then payable under this Agreement and/or the Master Swap Agreement
                and/or
                the other Security Documents or any of
                them.

            

    

     

    
      	
            	5.3	
              Master
                Swap Agreement, Repayments and
                Prepayments

            

    

     

    
      	
              5.3.1

            	
              Notwithstanding
                any provision of the Master Swap Agreement to the contrary, in the
                case of
                a prepayment of all or part of the Loan (including, without limit,
                upon a
                Total Loss in accordance with clause 5.4 and under clause 9.2) then
                subject to clause 5.3.2 the Bank shall be entitled but not obliged
                (and,
                where relevant, may do without the consent of the Borrower, where
                it would
                otherwise be required whether under the Master Swap Agreement or
                otherwise) to amend, re-book, supplement, cancel, close out, net
                out,
                terminate, liquidate, transfer or assign all or any part of the rights,
                benefits and obligations created by any Transaction and/or the Master
                Swap
                Agreement and/or to obtain or re-establish any hedge or related trading
                position in any manner and with any person the Bank in its absolute
                discretion may determine and both the Bank’s and the Borrower’s continuing
                obligations under any Transaction and/or Master Swap Agreement shall,
                unless agreed otherwise by the Bank, be calculated so far as the
                Bank
                considers it practicable by reference to the amended repayment schedule
                for the Loan taking into account the fact that less than the full
                amount
                of the Loan remains outstanding.

            

    

     

    
      	
              5.3.2

            	
              If
                less than the full amount of the Loan remains outstanding, following
                a
                prepayment under this Agreement and the Bank in its absolute discretion
                agrees, following a written request of the Borrower, that the Borrower
                may
                be permitted to maintain all or part of a Transaction in an amount
                not
                wholly matched with or linked to all or part of the Loan, the Borrower
                shall within ten (10) days of being notified by the Bank of such
                requirement, provide the Bank with, or procure the provision to the
                Bank
                of, such additional security as shall in the opinion of the Bank
                be
                adequate to secure the performance of such Transaction, which additional
                security shall take such form, be 

            

    

     

    
      
        
        

      

      18

      

        

      

    
    
      
      

    

     

    constituted
      by such documentation and be entered into between such parties, as the Bank
      in
      its absolute discretion may approve or require, and each document comprising
      such additional security shall constitute a Credit Support
      Document.

     

    
      	
              5.3.3

            	
              The
                Borrower shall on the first written demand of the Bank indemnify
                the Bank
                in respect of all losses, costs and expenses (including, but not
                limited
                to, legal costs and expenses) incurred or sustained by the Bank as
                a
                consequence of or in relation to the effecting of any matter or
                Transactions referred to in this clause
                5.3.

            

    

     

    
      	
              5.3.4

            	
              Notwithstanding
                any provision of the Master Swap Agreement to the contrary, if for
                any
                reason a Transaction has been entered into but the Loan is not drawn
                down
                under this Agreement then, subject to clause 5.3.5 the Bank shall
                be
                entitled but not obliged (and, where relevant, may do so without
                the
                consent of the Borrower where it would otherwise be required whether
                under
                the Master Swap Agreement or otherwise) to amend, re-book, supplement,
                cancel, close out, net out, terminate, liquidate, transfer or assign
                all
                or any part of the rights, benefits and obligations created by such
                Transaction and/or the Master Swap Agreement and/or to obtain or
                re-establish any hedge or related trading position in any manner
                and with
                any person the Bank in its absolute discretion may
                determine.

            

    

     

    
      	
              5.3.5

            	
              If
                a Transaction has been entered into but the Loan is not drawn down
                under
                this Agreement and the Bank in its absolute discretion agrees, following
                a
                written request of the Borrower, that the Borrower may be permitted
                to
                maintain all or part of a Transaction, the Borrower shall within
                ten (10)
                days of being notified by the Bank of such requirement, provide the
                Bank
                with, or procure the provision to the Bank of, such additional security
                as
                shall in the opinion of the Bank be adequate to secure the performance
                of
                such Transaction, which additional security shall take such form,
                be
                constituted by such documentation and be entered into between such
                parties, as the Bank in its absolute discretion may approve or require,
                and each document comprising such additional security shall constitute
                a
                Credit Support Document for the purposes of the Master Swap Agreement
                and/or otherwise.

            

    

     

    
      	
              5.3.6

            	
              Without
                prejudice to or limitation of the obligations of the Borrower under
                clause
                5.3.3, in the event that the Bank exercises any of its rights under
                clauses 5.3.1, 5.3.2, 5.3.3 or 5.3.4 and such exercise results in
                all or
                part of a Transaction being terminated such Transaction or the part
                thereof terminated (which shall for the purposes hereof be treated
                as a
                separate Transaction) in each case shall be treated under the Master
                Swap
                Agreement in the same manner as if it were a Terminated Transaction
                (as
                defined in Section 14 of the Master Swap Agreement) pursuant to an
                Event
                of Default (as so defined in that Section 14) by the Borrower and,
                accordingly, the Bank shall be permitted to recover from the Borrower
                a
                payment for early termination calculated in accordance with the provisions
                of section 6(e)(i) of the Master Swap Agreement in respect of such
                Transaction.

            

    

     

    
      	
            	5.4	
              Prepayment
                on Total Loss

            

    

     

    
      
        
        

      

      19

      

        

      

    
    
      
      

    

     

    On
      the
      Ship becoming a Total Loss or suffering damage or being involved in an incident
      which in the opinion of the Bank may result in the Ship being subsequently
      determined to be a Total Loss, the obligation of the Bank to advance the Loan
      shall immediately cease and the Commitment shall be reduced to zero. On the
      date
      ninety (90) days after that on which the Ship became a Total Loss or, if
      earlier, on the date upon which the insurance proceeds in respect of such Total
      Loss are or Requisition Compensation is received by the Borrower (or the Bank
      pursuant to the Security Documents), the Borrower shall prepay the Loan. For
      the
      purpose of this Agreement, a Total Loss shall be deemed to have
      occurred:

     

    
      	
              5.4.1

            	
              in
                the case of an actual total loss of the Ship on the actual date and
                at the
                time the Ship was lost or, if such date is not known, on the date
                on which
                the Ship was last reported;

            

    

     

    
      	
              5.4.2

            	
              in
                the case of a constructive total loss of the Ship, upon the date
                and at
                the time notice of abandonment of the Ship is given to the insurers
                of the
                Ship for the time being (provided a claim for total loss is admitted
                by
                such insurers) or, if such insurers do not forthwith admit such a
                claim,
                at the date and at the time at which either a total loss is subsequently
                admitted by the insurers or a total loss is subsequently adjudged
                by a
                competent court of law or arbitration tribunal to have
                occurred;

            

    

     

    
      	
              5.4.3

            	
              in
                the case of a compromised or arranged total loss, on the date upon
                which a
                binding agreement as to such compromised or arranged total loss has
                been
                entered into by the insurers of the
                Ship;

            

    

     

    
      	
              5.4.4

            	
              in
                the case of Compulsory Acquisition, on the date upon which the relevant
                requisition of title or other compulsory acquisition occurs;
                and

            

    

     

    
      	
              5.4.5

            	
              in
                the case of hijacking, theft, condemnation, capture, seizure, arrest,
                detention or confiscation of the Ship (other than where the same
                amounts
                to Compulsory Acquisition of the Ship) by any Government Entity,
                or by
                persons purporting to act on behalf of any Government Entity, which
                deprives the Borrower of the use of the Ship for more than thirty
                (30)
                days, upon the expiry of the period of thirty (30) days after the
                date
                upon which the relevant hijacking, theft, condemnation, capture,
                seizure,
                arrest, detention or confiscation
                occurred.

            

    

     

    
      	
            	5.5	
              Amounts
                payable on prepayment

            

    

     

    Any
      prepayment of all or part of the Loan under this Agreement shall be made
      together with (a) accrued interest on the amount to be prepaid to the date
      of
      such prepayment, (b) any additional amount payable under clause 7.6 or 13.2
      and
      (c) all others sums payable by the Borrower to the Bank under this Agreement
      or
      any of the other Security Documents including, without limitation, any amounts
      payable under clause 12.

     

    
      	
            	5.6	
              Notice
                of prepayment; reduction of repayment
                instalments

            

    

     

    No
      prepayment may be effected under clause 5.2 unless the Borrower shall have
      given
      the Bank at least ten (10) Banking Days notice of its intention to make such
      prepayment. 

     

    
      
        
        

      

      20

      

        

      

    
    
      
      

    

     

    Every
      notice of prepayment shall be effective only on actual receipt by the Bank,
      shall be irrevocable, shall specify the amount to be prepaid and shall oblige
      the Borrower to make such prepayment on the date specified. No amount prepaid
      may be reborrowed and any amount prepaid pursuant to clause 5.2 or clause 9.2.1
      shall be applied in reducing the repayment instalments under clause 5.1 in
      direct order of their due dates for payment. The Borrower may not prepay the
      Loan or any part thereof save as expressly provided in this
      Agreement.

     

    
      	
            	5.7	
              Currency
                amounts repayable

            

    

     

    Each
      repayment or prepayment of any Tranche and/or the Loan under this Agreement
      shall be made in the currency in which such Tranche and/or the Loan was
      outstanding immediately prior to such repayment or prepayment and shall be
      in an
      amount equal to the Equivalent Amount in such currency.

     

    
      	 	
              6

            	
              Commitment
                commission, fees and
                expenses

            

    

     

    
      	
            	6.1	
              Fees

            

    

     

    
      	
              6.1.1

            	
              The
                Borrower shall pay to the Bank a total fee of One hundred and twenty
                seven
                thousand Dollars ($127,000) (comprising of an arrangement fee of
                Sixty
                seven thousand two hundred Dollars ($67,200) and a commitment fee
                of Fifty
                nine thousand eight hundred Dollars ($59,800)), of which total fee
                the
                Borrower has paid to the Bank Twenty thousand eight hundred and thirty
                three Dollars ($20,833) on 21 October 2003, Ten thousand nine hundred
                and
                seventeen Dollars ($10,917) on 8 March 2004, Thirty one thousand
                seven
                hundred fifty dollars ($31,750) on 31 April 2004 and Thirty one thousand
                seven hundred fifty dollars ($31,750) on 5 August
                2004.

            

    

     

    
      	
              6.1.2

            	
              The
                Borrower will pay the balance of the total fee being Thirty one thousand
                seven hundred fifty Dollars ($31,750) on the earlier of (i) 30 April
                2005
                and (ii) the Drawdown Date;

            

    

     

    
      	
              6.1.3

            	
              The
                fee referred to in clause 6.1.1 shall be payable in full by the Borrower
                to the Bank, and shall not be repayable, whether or not any part
                of the
                Commitment is ever advanced.

            

    

     

    
      	
            	6.2	
              Expenses

            

    

     

    The
      Borrower shall pay to the Bank on a full indemnity basis on demand all expenses
      (including legal, printing and out-of-pocket expenses) incurred by the
      Bank:

     

    
      	
              6.2.1

            	
              in
                connection with the negotiation, preparation, execution and, where
                relevant, registration of the Security Documents and of any amendment
                or
                extension of or the granting of any waiver or consent under, any
                of the
                Security Documents and/or the Master Swap Agreement;
                and

            

    

     

    
      
        
        

      

      21

      

        

      

    
    
      
      

    

     

    
      	
              6.2.2

            	
              in
                contemplation of, or otherwise in connection with, the enforcement
                of, or
                preservation of any rights under, any of the Security Documents and/or
                the
                Master Swap Agreement, or otherwise in respect of the moneys owing
                under
                any of the Security Documents and/or the Master Swap Agreement (including,
                for the avoidance of doubt, expenses incurred in connection with
                the Bank
                obtaining any further insurance opinion(s) in respect of the Insurances
                for the Ship as may be required by the Bank during the Security Period),
                together with interest at the rate referred to in clause 3.4 from
                the date
                on which such expenses were incurred to the date of payment (as well
                after
                as before judgment).

            

    

     

    
      	
            	6.3	
              Value
                Added Tax

            

    

     

    All
      fees
      and expenses payable pursuant to this clause 6 shall be paid together with
      value
      added tax or any similar tax (if any) properly chargeable thereon. Any value
      added tax chargeable in respect of any services supplied by the Bank under
      this
      Agreement shall, on delivery of the value added tax invoice, be paid in addition
      to any sum agreed to be paid hereunder.

     

    
      	
            	6.4	
              Stamp
                and other duties

            

    

     

    The
      Borrower shall pay all stamp, documentary, registration or other like duties
      or
      taxes (including any duties or taxes payable by the Bank) imposed on or in
      connection with any of the Management Agreement, the Security Documents and/or
      the Master Swap Agreement or the Loan and shall indemnify the Bank against
      any
      liability arising by reason of any delay or omission by the Borrower to pay
      such
      duties or taxes.

     

    
      	 	
              7

            	
              Payments
                and taxes; accounts and
                calculations

            

    

     

    
      	
            	7.1	
              No
                set-off or counterclaim

            

    

     

    Subject
      to paragraph (i) of Part 5 of the Schedule to the Master Swap Agreement, all
      payments to be made by the Borrower under any of the Security Documents shall
      be
      made in full, without any set-off or counterclaim whatsoever and, subject as
      provided in clause 7.6, free and clear of any deductions or withholdings, in
      Dollars or the relevant Optional Currency on the due date (for value on the
      day
      on which payment is due) to such account at such bank in such place as the
      Bank
      may from time to time specify for this purpose.

     

    
      	
            	7.2	
              Payment
                by the Bank

            

    

     

    All
      sums
      to be advanced on the Drawdown Date by the Bank to the Borrower under this
      Agreement shall be remitted in Dollars or the relevant Optional Currency to
      the
      account of the Borrower specified in the Drawdown Notice.

     

    
      	
            	7.3	
              Non-Banking
                Days

            

    

     

    When
      any
      payment under any of the Security Documents would otherwise be due on a day
      which is not a Banking Day, the due date for payment shall be extended to the
      next 

     

    
      
        
        

      

      22

      

        

      

    
    
      
      

    

     

    following
      Banking Day unless such Banking Day falls in the next calendar month in which
      case payment shall be made on the immediately preceding Banking
      Day.

     

    
      	
            	7.4	
              Calculations

            

    

     

    All
      payments of interest in respect of the Loan and/or a Tranche shall be made
      in
      the currency in which the Loan and/or such Tranche is outstanding at the
      relevant time. All interest and other payments of an annual nature under any
      of
      the Security Documents shall accrue from day to day and be calculated on the
      basis of actual days elapsed and a 360 day year except for any part of the
      Loan
      denominated in Sterling, where a 365 day year shall apply.

     

    
       

      
        	
              	7.5	
                
                  Certificates
                    conclusive

                

              

      

       

      Any
        certificate or determination of the Bank as to any rate of interest or any
        other
        amount pursuant to and for the purposes of any of the Security Documents
        shall,
        in the absence of manifest error, be conclusive and binding on the
        Borrower.

       

      
        	
              	7.6	
                Grossing-up
                  for Taxes

              

      

       

      If
        at any
        time the Borrower is required to make any deduction or withholding in respect
        of
        Taxes from any payment due under any of the Security Documents, the sum due
        from
        the Borrower in respect of such payment shall be increased to the extent
        necessary to ensure that, after the making of such deduction or withholding,
        the
        Bank receives on the due date for such payment (and retains, free from any
        liability in respect of such deduction or withholding), a net sum equal to
        the
        sum which it would have received had no such deduction or withholding been
        required to be made and the Borrower shall indemnify the Bank against any
        losses
        or costs incurred by it by reason of any failure of the Borrower to make
        any
        such deduction or withholding or by reason of any increased payment not being
        made on the due date for such payment. The Borrower shall promptly deliver
        to
        the Bank any receipts, certificates or other proof evidencing the amounts
        (if
        any) paid or payable in respect of any deduction or withholding as
        aforesaid.

       

      
        	
              	7.7	
                Loan
                  account

              

      

       

      The
        Bank
        shall maintain, in accordance with its usual practice, an account (which
        shall
        be the “Account Current” referred to in the Mortgage) evidencing the amounts
        from time to time lent by, owing to and paid to it under the Security Documents.
        Such account shall, in the absence of manifest error, be conclusive as to
        the
        amount from time to time owing by the Borrower under the Security
        Documents.

       

      
        	 	
                8

              	
                Representations
                  and warranties

              

      

       

      
        	
              	8.1	
                Continuing
                  representations and
                  warranties

              

      

       

      The
        Borrower represents and warrants to the Bank that:

       

      
        	
                8.1.1

              	
                Due
                  incorporation

              

      

       

      
        
          
          

        

        23

        
  

          

        

      

      
        
        

      

    
     

    the
      Borrower and each of the other Security Parties are duly incorporated and
      validly existing in good standing under the laws of their respective countries
      of incorporation as companies having limited liability and have power to carry
      on their respective businesses as they are now being conducted and to own their
      respective property and other assets;

     

    
      	
              8.1.2

            	
              Corporate
                power

            

    

     

    the
      Borrower has power to execute, deliver and perform its obligations under the
      Management Agreement and the Borrower’s Security Documents and to borrow the
      Commitment and each of the other Security Parties has power to execute and
      deliver and perform its obligations under the Security Documents to which it
      is
      or is to be a party; all necessary corporate, shareholder and other action
      has
      been taken to authorise the execution, delivery and performance of the same
      and
      no limitation on the powers of the Borrower to borrow will be exceeded as a
      result of borrowing the Loan;

     

    
      	
              8.1.3

            	
              Binding
                obligations

            

    

     

    the
      Security Documents constitute or will, when executed, constitute valid and
      legally binding obligations of the relevant Security Parties enforceable in
      accordance with their respective terms;

     

    
      	
              8.1.4

            	
              No
                conflict with other obligations

            

    

     

    the
      execution and delivery of, the performance of its obligations under, and
      compliance with the provisions of, the Management Agreement and the Security
      Documents by the relevant Security Parties will not (i) contravene any existing
      applicable law, statute, rule or regulation or any judgment, decree or permit
      to
      which the Borrower or any other Security Party is subject, (ii) conflict with,
      or result in any breach of any of the terms of, or constitute a default under,
      any agreement or other instrument to which the Borrower or any other Security
      Party is a party or is subject or by which it or any of its property is bound,
      (iii) contravene or conflict with any provision of the constitutional documents
      of the Borrower or any other Security Party or (iv) result in the creation
      or
      imposition of or oblige the Borrower or any of its Related Companies or any
      other Security Party to create any Encumbrance (other than a Permitted
      Encumbrance) on any of the undertakings, assets, rights or revenues of the
      Borrower or its Related Companies or any other Security Party;

     

    
      	
              8.1.5

            	
              No
                litigation

            

    

     

    no
      litigation, arbitration or administrative proceeding is taking place, pending
      or, to the knowledge of the officers of the Borrower, threatened against the
      Borrower or any of its Related Companies or any other Security Party which
      could
      have a material adverse effect on the business, assets or financial condition
      of
      the Borrower or any of its Related Companies or any other Security
      Party;

     

    
      	
              8.1.6

            	
              No
                filings required

            

    

     

    
      
        
        

      

      24

      

        

      

    
    
      
      

    

     

    save
      for
      the registration of the Mortgage and the Deed of Covenant in the Ships Registry
      of the Republic of Cyprus it is not necessary to ensure the legality, validity,
      enforceability or admissibility in evidence of the Management Agreement or
      any
      of the Security Documents that they or any other instrument be notarised, filed,
      recorded, registered or enrolled in any court, public office or elsewhere in
      any
      Relevant Jurisdiction or that any stamp, registration or similar tax or charge
      be paid in any Relevant Jurisdiction on or in relation to the Management
      Agreement and the Security Documents and each of the Management Agreement and
      the Security Documents is in proper form for its enforcement in the courts
      of
      each Relevant Jurisdiction;

     

    
      	
              8.1.7

            	
              Choice
                of law

            

    

     

    the
      choice of English law to govern the Management Agreement and the Security
      Documents (other than the Mortgage and the Deed of Covenant) and the choice
      of
      Cypriot law to govern the Mortgage and the Deed of Covenant and the submissions
      by the Security Parties to the non-exclusive jurisdiction of the English courts
      are valid and binding;

     

    
      	
              8.1.8

            	
              No
                immunity

            

    

     

    neither
      the Borrower nor any other Security Party nor any of their respective assets
      is
      entitled to immunity on the grounds of sovereignty or otherwise from any legal
      action or proceeding (which shall include, without limitation, suit, attachment
      prior to judgement, execution or other enforcement);

     

    
      	
              8.1.9

            	
              Consents
                obtained

            

    

     

    every
      consent, authorisation, licence or approval of, or registration with or
      declaration to, governmental or public bodies or authorities or courts required
      by any Security Party to authorise, or required by any Security Party in
      connection with, the execution, delivery, validity, enforceability or
      admissibility in evidence of the Management Agreement and each of the Security
      Documents or the performance by each Security Party of its obligations under
      the
      Security Documents has been obtained or made and is in full force and effect
      and
      there has been no default in the observance of any of the conditions or
      restrictions (if any) imposed in, or in connection with, any of the
      same.

     

    
      	
            	8.2	
              Initial
                representations and
                warranties

            

    

     

    The
      Borrower further represents and warrants to the Bank that:

     

    
      	
              8.2.1

            	
              Pari
                passu

            

    

     

    the
      obligations of the Borrower under this Agreement and the Master Swap Agreement
      are direct, general and unconditional obligations of the Borrower and rank
      at
      least pari passu with all other present and future unsecured and unsubordinated
      Indebtedness of the Borrower;

     

    
      
        
        

      

      25

      

        

      

    
    
      
      

    

     

    
      	
              8.2.2

            	
              No
                default under other Indebtedness

            

    

     

    neither
      the Borrower nor any of its Related Companies nor any other Security Party
      is
      (nor would with the giving of notice or lapse of time or the satisfaction of
      any
      other condition or combination thereof be) in breach of or in default under
      the
      Master Swap Agreement or any agreement relating to Indebtedness to which it
      is a
      party or by which it may be bound;

     

    
      	
              8.2.3

            	
              Information

            

    

     

    the
      information, exhibits and reports furnished by any Security Party to the Bank
      in
      connection with the negotiation and preparation of the Security Documents are
      true and accurate in all material respects and not misleading, do not omit
      material facts and all reasonable enquiries have been made to verify the facts
      and statements contained therein; there are no other facts the omission of
      which
      would make any fact or statement therein misleading;

     

    
      	
              8.2.4

            	
              No
                withholding Taxes

            

    

     

    no
      Taxes
      are imposed by withholding or otherwise on any payment to be made by any
      Security Party under the Management Agreement or the Security Documents or
      are
      imposed on or by virtue of the execution or delivery by the Security Parties
      of
      the Management Agreement or the Security Documents or any other document or
      instrument to be executed or delivered under any of the Security
      Documents;

     

    
      	
              8.2.5

            	
              No
                Default

            

    

     

    no
      Default has occurred and is continuing;

     

    
      	
              8.2.6

            	
              the
                Ship

            

    

     

    the
      Ship
      will on the Drawdown Date be:

     

    
      	 	
              (a)

            	
              in
                the absolute ownership of the Borrower who will on and after the
                Drawdown
                Date be the sole, legal and beneficial owner of the
                Ship;

            

    

     

    
      	 	
              (b)

            	
              registered
                in the name of the Borrower through the Registry as a ship under
                the laws
                and flag of the Flag State;

            

    

     

    
      	 	
              (c)

            	
              operationally
                seaworthy and in every way fit for service;
                and

            

    

     

    
      	 	
              (d)

            	
              classed
                with the Classification free of all requirements and recommendations
                of
                the Classification Society;

            

    

     

    
      	
              8.2.7

            	
              Ship’s
                employment

            

    

     

    the
      Ship
      will not on or before the Drawdown Date be subject to any charter or contract
      or
      to any agreement to enter into any charter or contract which, if entered

     

    
      
        
        

      

      26

      

        

      

    
    
      
      

    

     

    into
      after the date of the Deed of Covenant would have required the consent of the
      Bank and on or before the Drawdown Date there will not be any agreement or
      arrangement whereby the Earnings (as defined in the General Assignment) may
      be
      shared with any other person;

     

    
      	
              8.2.8

            	
              Freedom
                from Encumbrances

            

    

     

    neither
      the Ship, nor her Earnings, Insurances or Requisition Compensation (each as
      defined in the General Assignment) nor the Cash Collateral Account nor any
      other
      properties or rights which are, or are to be, the subject of any of the Security
      Documents nor any part thereof will be, on the Drawdown Date, subject to any
      Encumbrance;

     

    
      	
              8.2.9

            	
              Compliance
                with Environmental Laws and
                Approvals

            

    

     

    except
      as
      may already have been disclosed by the Borrower in writing to, and acknowledged
      in writing by, the Bank:

     

    
      	 	
              (a)

            	
              the
                Borrower and to the best of the Borrower’s knowledge and belief (having
                made due enquiry) its Environmental Affiliates have complied with
                the
                provisions of all Environmental
                Laws;

            

    

     

    
      	 	
              (b)

            	
              the
                Borrower and to the best of the Borrower’s knowledge and belief (having
                made due enquiry) its Environmental Affiliates have obtained all
                Environmental Approvals and are in compliance with all such Environmental
                Approvals; and

            

    

     

    
      	 	
              (c)

            	
              neither
                the Borrower nor to the best of the Borrower’s knowledge and belief
                (having made due enquiry) any of its Environmental Affiliates has
                received
                notice of any Environmental Claim that the Borrower or any such
                Environmental Affiliate is not in compliance with any Environmental
                Law or
                any Environmental Approval;

            

    

     

    
      	
              8.2.10

            	
              No
                Environmental Claims

            

    

     

    except
      as
      may already have been disclosed by the Borrower in writing to, and acknowledged
      in writing by, the Bank, there is no Environmental Claim pending or, to the
      best
      of the Borrower’s knowledge and belief, threatened against the Borrower or the
      Ship or to the best of the Borrower’s knowledge and belief (having made due
      enquiry) any of its Environmental Affiliates; and

     

    
      	
              8.2.11

            	
              No
                potential Environmental Claims

            

    

     

    except
      as
      may already have been disclosed by the Borrower in writing to, and acknowledged
      in writing by, the Bank, there has been no emission, spill, release or discharge
      of a Pollutant from the Ship which could give rise to an Environmental
      Claim;

     

    
      
        
        

      

      27

      

        

      

    
    
      
      

    

     

    
      	
              8.2.12

            	
              No
                material adverse change

            

    

     

    there
      has
      been no material adverse change in the financial position of the Borrower from
      that described by the Borrower to the Bank in the negotiation of this
      Agreement;

     

    
      
        
          	8.2.13	
                  ISPS
                    Code

                

        

      

    

     

    As
      of the
      date of this Agreement, the Borrower shall have a valid and current ISSC in
      respect of the Ship and the Ship shall be in compliance with the ISPS Code;
      and

     

    
      
        
          	8.2.14	
                  Copies
                    true and complete

                

        

      

    

     

    the
      copy
      of the Management Agreement delivered or to be delivered to the Bank pursuant
      to
      clause 10.1, is or will when delivered be, a true and complete copy of such
      document; such document will when delivered constitute valid and binding
      obligations of the parties thereto enforceable in accordance with its terms
      and
      there will have been no amendments or variations thereof or defaults
      thereunder.

     

    
      	
            	8.3	
              Repetition
                of representations and
                warranties

            

    

     

    On
      and as
      of the Drawdown Date and (except in relation to the representations and
      warranties in clause 8.2) on each Interest Payment Date the Borrower shall
      be
      deemed to repeat the representations and warranties in clauses 8.1 and 8.2
      as if
      made with reference to the facts and circumstances existing on such
      day.

     

    
      	 	
              9

            	
              Undertakings

            

    

     

    
      	
            	9.1	
              General

            

    

     

    The
      Borrower undertakes with the Bank that, from the date of this Agreement and
      so
      long as any moneys are owing under any of the Security Documents and/or the
      Master Swap Agreement and while all or any part of the Commitment remains
      outstanding, it will:

     

    
      	
              9.1.1

            	
              Notice
                of Default

            

    

     

    promptly
      inform the Bank of any occurrence of which it becomes aware which might
      adversely affect the ability of any Security Party to perform its obligations
      under any of the Security Documents and, without limiting the generality of
      the
      foregoing, will inform the Bank of any Default forthwith upon becoming aware
      thereof and will from time to time, if so requested by the Bank, confirm to
      the
      Bank in writing that, save as otherwise stated in such confirmation, no Default
      has occurred and is continuing;

     

    
      	
              9.1.2

            	
              Consents
                and licences

            

    

     

    without
      prejudice to clauses 8.1 and 10 obtain or cause to be obtained, maintain in
      full
      force and effect and comply in all material respects with the conditions and
      restrictions (if any) imposed in, or in connection with, every consent,
      authorisation, licence or approval of governmental or public bodies or
      authorities or courts and do,

     

    
      
        
        

      

      28

      

        

      

    
    
      
      

    

     

    or
      cause
      to be done, all other acts and things which may from time to time be necessary
      or desirable under applicable law for the continued due performance of all
      the
      obligations of the Security Parties under each of the Security
      Documents;

     

    
      	
              9.1.3

            	
              Use
                of proceeds

            

    

     

    use
      the
      Loan exclusively for the purpose specified in clause 1.1;

     

    
      	
              9.1.4

            	
              Pari
                passu

            

    

     

    ensure
      that its obligations under this Agreement and the Master Swap Agreement shall,
      without prejudice to the provisions of clause 10.2, at all times rank at least
      pari passu with all its other present and future unsecured and unsubordinated
      Indebtedness with the exception of any obligations which are mandatorily
      preferred by law and not by contract;

     

    
      	
              9.1.5

            	
              Financial
                statements

            

    

     

    provide
      the Bank at the end of each calendar year with unaudited management accounts
      for
      the Ship showing the income and expenditure of the Ship for such calendar year,
      the first such management accounts to be provided at the end of the calendar
      year 2005;

     

    
      	
              9.1.6

            	
              Delivery
                of reports

            

    

     

    deliver
      to the Bank as many copies as the Bank may reasonably require of every report,
      circular, notice or like document issued by the Borrower or the Manager to
      their
      respective shareholders or creditors generally;

     

    
      	
              9.1.7

            	
              Provision
                of further information

            

    

     

    provide
      the Bank with such financial and other information concerning the Borrower
      and
      its affairs as the Bank may from time to time reasonably require;

     

    
      	
              9.1.8

            	
              Obligations
                under Security Documents

            

    

     

    duly
      and
      punctually perform each of the obligations expressed to be assumed by it under
      the Borrower’s Security Documents;

     

    
      	
              9.1.9

            	
              Compliance
                with Code

            

    

     

    procure
      that the Manager and/or any Operator complies with and ensures that the Ship
      complies with the requirements of the Code, including (but not limited to)
      the
      maintenance and renewal of valid certificates pursuant thereto throughout the
      Security Period (as defined in the Deed of Covenant);

     

    
      	
              9.1.10

            	
              Withdrawal
                of DOC and SMC

            

    

     

    
      
        
        

      

      29

      

        

      

    
    
      
      

    

     

    procure
      that the Manager and/or any Operator will, immediately inform the Bank if there
      is any threatened or actual withdrawal of the Manager’s or Operator’s DOC or the
      SMC in respect of the Ship; and

     

    
      	
              9.1.11

            	
              Issuance
                of DOC and SMC

            

    

     

    procure
      that the Manager and/or any Operator will, promptly inform the Bank upon the
      issuance to the Manager or any Operator of a DOC and to the Ship of an SMC
      or
      the receipt by the Manager or any Operator of notification that its application
      for the same has been refused.

     

    
      	
            	9.2	
              Security
                value maintenance

            

    

     

    
      	
              9.2.1

            	
              Security
                shortfall

            

    

     

    If
      at any
      time the Security Value shall be less than the Security Requirement, the Bank
      may give notice to the Borrower requiring that such deficiency be remedied
      and
      then the Borrower shall (unless the Ship has become a Total Loss)
      either:

     

    
      	 	
              (a)

            	
              prepay
                within a period of fifteen (15) days of the date of receipt by the
                Borrower of the Bank’s said notice such sum in Dollars as will result in
                the Security Requirement after such prepayment (taking into account
                any
                other repayment of the Loan made between the date of the notice and
                the
                date of such prepayment) being equal to the Security Value;
                or

            

    

     

    
      	 	
              (b)

            	
              within
                fifteen (15) days of the date of receipt by the Borrower of the Bank’s
                said notice constitute to the satisfaction of the Bank such further
                security for the Loan as shall be acceptable to the Bank having a
                value
                for security purposes (as determined by the Bank in its absolute
                discretion) at the date upon which such further security shall be
                constituted which, when added to the Security Value, shall not be
                less
                than the Security Requirement as at such date;
                or

            

    

     

    
      	 	
              (c)

            	
              within
                fifteen (15) days of the date of receipt by the Borrower of the Bank’s
                said notice, pay such additional amount to the credit of the Cash
                Collateral Account as will result in the Security Value after such
                payment
                being not less than the Security Requirement as at the date of such
                payment.

            

    

     

    Clause
      5.4 shall apply to prepayments under clause 9.2.1(a).

     

    
      	
              9.2.2

            	
              Valuation
                of Ship

            

    

     

    The
      Ship
      shall at the discretion of the Bank from time to time, for the purposes of
      this
      clause 9.2, be valued in Dollars up to two times per calendar year (such
      valuations to be at the cost of the Borrower) by an independent firm of
      shipbrokers appointed by the Bank in its sole discretion (each such valuation
      to
      be made without, unless required by the Bank, physical inspection and on the
      basis of a sale for prompt delivery for cash at arms length on normal commercial
      terms as between a willing 

     

    
      
        
        

      

      30

      

        

      

    
    
      
      

    

     

    buyer
      and
      a willing seller without taking into account the benefit of any charterparty
      or
      other engagement concerning the Ship). Such valuation shall constitute the
      value
      of the Ship for the purposes of this clause 9.2. The Bank may require further
      valuations of the Ship at any time on the same terms as above, save that the
      costs of such additional valuations shall be for the account of the Bank, unless
      an Event of Default has occurred and is continuing.

     

    The
      value
      of the Ship determined in accordance with the provisions of this clause 9.2
      shall be binding upon the parties hereto until such time as any further such
      valuations shall be obtained.

     

    
      	
              9.2.3

            	
              Information

            

    

     

    The
      Borrower undertakes to the Bank to supply to the Bank and to any such
      shipbrokers such information concerning the Ship and its condition as such
      shipbrokers may reasonably require for the purpose of making any such
      valuation.

     

    
      	
              9.2.4

            	
              Costs

            

    

     

    All
      costs
      in connection with the Bank obtaining any valuation either of any additional
      security for the purposes of ascertaining the Security Value at any time or
      necessitated by the Borrower electing to constitute additional security pursuant
      to clause 9.2.1(b) shall be borne by the Borrower.

     

    
      	
              9.2.5

            	
              Valuation
                of additional security

            

    

     

    For
      the
      purpose of this clause 9.2, the market value of any additional security provided
      or to be provided to the Bank shall be determined by the Bank in its absolute
      discretion without any necessity for the Bank assigning any reason
      thereto.

     

    
      	
              9.2.6

            	
              Documents
                and evidence

            

    

     

    In
      connection with any additional security provided in accordance with this clause
      9.2, the Bank shall be entitled to receive such evidence and documents of the
      kind referred to in schedule 2 as may in the Bank’s opinion be appropriate and
      such favourable legal opinions as the Bank shall in its absolute discretion
      require.

     

    
      	
              9.2.7

            	
              Security
                release

            

    

     

    If
      the
      Security Value shall at any time during the three year period starting from
      the
      date of this Agreement exceed one hundred and four per cent (104%) of the
      Security Requirement during that period or, at any time thereafter exceed one
      hundred and four point seventeen per cent (104.17%) of the Security Requirement
      during that period, and the Borrower shall previously have provided further
      security to the Bank pursuant to clause 9.2.1(b) or 9.2.1(c) the Bank shall,
      as
      soon as reasonably practicable after receiving a written request from the
      Borrower to do so, release any such further security specified by the Borrower
      provided that the Bank is satisfied 

     

    
      
        
        

      

      31

      

        

      

    
    
      
      

    

     

    that,
      immediately following such release, the Security Value will be equal to or
      in
      excess of the Security Requirement.

     

    
      	
              9.2.8

            	
              ISPS
                Code compliance

            

    

     

    and
      will
      procure that the Manager or any Operator will, with effect on and from the
      date
      of this Agreement:

     

    
      	 	
              (a)

            	
              maintain
                at all times a valid and current ISSC in respect of the
                Ship;

            

    

     

    
      	 	
              (b)

            	
              immediately
                notify the Bank in writing of any actual or threatened withdrawal,
                suspension, cancellation or modification of the ISSC in respect of
                the
                Ship; and

            

    

     

    
      	 	
              (c)

            	
              procure
                that the Ship will comply at all times with the ISPS
                Code;

            

    

     

    
      	
            	9.3	
              Negative
                undertakings

            

    

     

    The
      Borrower undertakes with the Bank that, from the date of this Agreement and
      so
      long as any moneys are owing under the Security Documents and while all or
      any
      part of the Commitment remains outstanding, it will not, without the prior
      written consent of the Bank:

     

    
      	
              9.3.1

            	
              Negative
                pledge

            

    

     

    permit
      any Encumbrance (other than a Permitted Encumbrance) to subsist, arise or be
      created or extended over all or any part of its present or future undertakings,
      assets, rights or revenues (including, but not limited to the Borrower’s rights
      against the Bank under any Transaction and/or the Master Swap Agreement or
      all
      or part of the Borrower’s interest in any amounts payable to the Borrower by the
      Bank under such Transaction and/or the Master Swap Agreement) to secure or
      prefer any present or future Indebtedness or other liability or obligation
      of
      the Borrower or any other person;

     

    
      	
              9.3.2

            	
              No
                merger

            

    

     

    merge
      or
      consolidate with any other person;

     

    
      	
              9.3.3

            	
              Disposals

            

    

     

    sell,
      transfer, abandon, lend or otherwise dispose of or cease to exercise direct
      control over any part (being either alone or when aggregated with all other
      disposals falling to be taken into account pursuant to this clause 9.3.3
      material in the opinion of the Bank in relation to the undertakings, assets,
      rights and revenues of the Borrower) of its present or future undertaking,
      assets, rights or revenues (otherwise than by transfers, sales or disposals
      for
      full consideration in the ordinary course of trading) whether by one or a series
      of transactions related or not;

     

    
      
        
        

      

      32

      

        

      

    
    
      
      

    

     

    
      	
              9.3.4

            	
              Other
                business

            

    

     

    undertake
      any business other than the ownership and operation of the Ship and the
      chartering of the Ship to third parties;

     

    
      	
              9.3.5

            	
              Acquisitions

            

    

     

    acquire
      any further assets other than the Ship and rights arising under contracts
      entered into by or on behalf of the Borrower in the ordinary course of its
      business of owning, operating and chartering the Ship;

     

    
      	
              9.3.6

            	
              Other
                obligations

            

    

     

    incur
      any
      obligations except for obligations arising under the Management Agreement or
      the
      Security Documents or contracts entered into in the ordinary course of its
      business of owning, operating and chartering the Ship;

     

    
      	
              9.3.7

            	
              No
                borrowing

            

    

     

    incur
      any
      Borrowed Money except for Borrowed Money pursuant to the Security
      Documents;

     

    
      	
              9.3.8

            	
              Repayment
                of borrowings

            

    

     

    repay
      the
      principal of, or pay interest on or any other sum in connection with any of
      its
      Borrowed Money except for Borrowed Money pursuant to the Security
      Documents;

     

    
      	
              9.3.9

            	
              Guarantees

            

    

     

    issue
      any
      guarantees or indemnities or otherwise become directly or contingently liable
      for the obligations of any person, firm, or corporation except pursuant to
      the
      Security Documents and except for guarantees or indemnities from time to time
      required in the ordinary course by any protection and indemnity or war risks
      association with which the Ship is entered, guarantees required to procure
      the
      release of such Ship from any arrest, detention, attachment or levy or
      guarantees or undertakings required for the salvage of the Ship;

     

    
      	
              9.3.10

            	
              Loans

            

    

     

    make
      any
      loans or grant any credit (save for normal trade credit in the ordinary course
      of business) to any person or agree to do so;

     

    
      	
              9.3.11

            	
              Sureties

            

    

     

    permit
      any Indebtedness of the Borrower to any person (other than the Bank) to be
      guaranteed by any person (save for guarantees or indemnities from time to time
      required in the ordinary course by any protection and indemnity or war
      risks

     

    
      
        
        

      

      33

      

        

      

    
    
      
      

    

    association
      with which the Ship is entered, guarantees required to procure the release
      of
      the Ship from any arrest, detention, attachment or levy or guarantees or
      undertakings required for the salvage of the Ship);

     

    
      	
              9.3.12

            	
              Share
                capital and distribution

            

    

     

    purchase
      or otherwise acquire for value any shares of its capital or distribute any
      of
      its present or future assets, undertakings, rights or revenues to any of its
      shareholders provided however, that notwithstanding the provisions of this
      clause 9.3.12 the Borrower shall have the right to declare or pay cash dividends
      unless an Event of Default has occurred and is continuing;

     

    
      	
              9.3.13

            	
              Change
                of Ownership

            

    

     

    permit
      any change in the legal ownership of the shares in the Borrower from that
      existing at the date of this Agreement; or

     

    
      	
              9.3.14

            	
              Subsidiaries

            

    

     

    form
      or
      acquire any Subsidiaries;

     

    
      	
              9.3.15

            	
              Manager

            

    

     

    appoint
      any manager of the Ship other than the Manager without the prior written consent
      of the Bank;

     

    
      	
            	9.4	
              Cash
                Collateral Account
                Undertaking

            

    

     

    Upon
      the
      request of the Bank, the Borrower undertakes to immediately open the Cash
      Collateral Account and, at its expense, execute such documentation as may be
      required by the Bank in order to charge the Cash Collateral Account and all
      monies from time to time standing to the credit of the Cash Collateral Account
      including any interest from time to time accrued and accruing thereon (whether
      or not credited thereto) to the Bank as security for the Borrower’s obligations
      under the Security Documents.

     

    
      	 	
              10

            	
              Conditions

            

    

     

    
      	
            	10.1	
              Documents
                and evidence

            

    

     

    The
      obligation of the Bank to make the Commitment available shall be subject to
      the
      condition that:

     

    
      	
              10.1.1

            	
              the
                Bank, or its duly authorised representative, shall have received,
                not
                later than two (2) Banking Days before the day on which the Drawdown
                Notice for the Loan is given, the documents and evidence specified
                in Part
                1 of schedule 2 in form and substance satisfactory to the Bank;
                and

            

    

     

    
      
        
        

      

      34

      

        

      

    
    
      
      

    

     

    
      	
              10.1.2

            	
              the
                Bank, or its duly authorised representative, shall have received,
                on or
                prior to the Drawdown Date, the documents and evidence specified
                in Part 2
                of schedule 2 in form and substance satisfactory to the
                Bank.

            

    

     

    
      	
            	10.2	
              General
                conditions precedent

            

    

     

    The
      obligation of the Bank to make the Loan shall be subject to the further
      condition that, at the time of the giving of the Drawdown Notice , and at the
      time of the making of the Loan:

     

    
      	
              10.2.1

            	
              the
                representations and warranties contained in clauses 8.1 and 8.2 are
                true
                and correct on and as of each such time as if each was made with
                respect
                to the facts and circumstances existing at such time;
                and

            

    

     

    
      	
              10.2.2

            	
              no
                Default shall have occurred and be continuing or would result from
                the
                making of the Loan.

            

    

     

    
      	
            	10.3	
              Waiver
                of conditions precedent

            

    

     

    The
      conditions specified in this clause 10 are inserted solely for the benefit
      of
      the Bank and may be waived by the Bank in whole or in part and with or without
      conditions.

     

    
      	
            	10.4	
              Further
                conditions precedent

            

    

     

    Not
      later
      than five (5) Banking Days prior to the Drawdown Date and not later than five
      (5) Banking Days prior to each Interest Payment Date, the Bank may request
      and
      the Borrower shall, not later than two (2) Banking Days prior to such date,
      deliver to the Bank on such request further favourable certificates and/or
      opinions as to any or all of the matters which are the subject of clauses 8,
      9,
      10 and 11;

     

    
      	 	
              11

            	
              Events
                of Default

            

    

     

    
      	
            	11.1	
              Events

            

    

     

    There
      shall be an Event of Default if:

     

    
      	
              11.1.1

            	
              Non-payment:
                any Security Party fails to pay any sum payable by it under any of
                the
                Security Documents at the time, in the currency and in the manner
                stipulated in the Security Documents (and so that, for this purpose,
                sums
                payable on demand shall be treated as having been paid at the stipulated
                time if paid within three (3) Banking Days of demand);
                or

            

    

     

    
      	
              11.1.2

            	
              Master
                Swap Agreement:
                (i) an Event of Default or Potential Event of Default (in each case
                as
                defined in the Master Swap Agreement) has occurred and is continuing
                under
                the Master Swap Agreement or (ii) an Early Termination Date (as defined
                in
                the Master Swap Agreement) has occurred or been or become capable
                of being
                effectively designated under the Master Swap Agreement or (iii) a
                person
                entitled to do so gives notice of an Early Termination Date under
                section
                6(b)(iv) of the Master 

            

    

     

    
      
        
        

      

      35

      

        

      

    
    
      
      

    

     

    Swap
      Agreement or (iv) the Master Swap Agreement is terminated, cancelled, suspended,
      rescinded or revoked or otherwise ceases to remain in full force and effect
      for
      any reason; or

     

    
      	
              11.1.3

            	
              Breach
                of Insurance and certain other obligations:
                the Borrower fails to obtain and/or maintain the Insurances (as defined
                in, and in accordance with the requirements of, the Security Documents)
                or
                if any insurer in respect of such Insurances cancels the Insurances
                or
                disclaims liability by reason, in either case, of mis-statement in
                any
                proposal for the Insurances or for any other failure or default on
                the
                part of the Borrower or any other person or the Borrower commits
                any
                breach of or omits to observe any of the obligations or undertakings
                expressed to be assumed by it under clauses 9.2, 9.3 or 9.4;
                or

            

    

     

    
      	
              11.1.4

            	
              Breach
                of other obligations:
                any Security Party commits any breach of or omits to observe any
                of its
                obligations or undertakings expressed to be assumed by it under any
                of the
                Security Documents (other than those referred to in clauses 11.1.1,
                11.1.2
                and 11.1.3 above) and, in respect of any such breach or omission
                which in
                the opinion of the Bank is capable of remedy, such action as the
                Bank may
                require shall not have been taken within fourteen (14) days of the
                Bank
                notifying the relevant Security Party of such default and of such
                required
                action; or

            

    

     

    
      	
              11.1.5

            	
              Misrepresentation:
                any representation or warranty made or deemed to be made or repeated
                by or
                in respect of any Security Party in or pursuant to any of the Security
                Documents or in any notice, certificate or statement referred to
                in or
                delivered under any of the Security Documents is or proves to have
                been
                incorrect or misleading in any material respect;
                or

            

    

     

    
      	
              11.1.6

            	
              Cross-default:
                any Indebtedness of the Borrower is not paid when due or any Indebtedness
                of the Borrower becomes (whether by declaration or automatically
                in
                accordance with the relevant agreement or instrument constituting
                the
                same) due and payable prior to the date when it would otherwise have
                become due (unless as a result of the exercise by the Borrower of
                a
                voluntary right of prepayment), or any creditor of the Borrower becomes
                entitled to declare any such Indebtedness due and payable or any
                facility
                or commitment available to the Borrower relating to Indebtedness
                is
                withdrawn, suspended or cancelled by reason of any default (however
                described) of the person concerned unless the Borrower shall have
                satisfied the Bank that such withdrawal, suspension or cancellation
                will
                not affect or prejudice in any way the Borrower’s ability to pay its debts
                as they fall due and fund its commitments, or any guarantee given
                by any
                Security Party in respect of Indebtedness is not honoured when due
                and
                called upon; or

            

    

     

    
      	
              11.1.7

            	
              Legal
                process:
                any judgment or order made against the Borrower is not stayed or
                complied
                with within seven (7) days or a creditor attaches or takes possession
                of,
                or a distress, execution, sequestration or other process is levied
                or
                enforced upon or sued out against, any of the undertakings, assets,
                rights
                or revenues of the Borrower and is not discharged within seven (7)
                days;
                or

            

    

     

    
      
        
        

      

      36

      

        

      

    
    
      
      

    

     

    
      	
              11.1.8

            	
              Insolvency:
                the Borrower is unable or admits inability to pay its debts as they
                fall
                due, suspends making payments on any of its debts or announces an
                intention to do so, becomes insolvent, has assets the value of which
                is
                less than the value of its liabilities (taking into account contingent
                and
                prospective liabilities) or suffers the declaration of a moratorium
                in
                respect of any of its Indebtedness;
                or

            

    

     

    
      	
              11.1.9

            	
              Reduction
                or loss of capital:
                a
                meeting is convened by the Borrower for the purpose of passing any
                resolution to purchase, reduce or redeem any of its share capital;
                or

            

    

     

    
      	
              11.1.10

            	
              Winding
                up:
                any corporate action, legal proceedings or other procedure or step
                is
                taken for the purpose of winding up or an order is made or resolution
                passed for the winding up of the Borrower or a notice is issued convening
                a meeting for the purpose of passing any such resolution;
                or

            

    

     

    
      	
              11.1.11

            	
              Administration:
                any petition is presented, notice is given or other step is taken
                for the
                purpose of the appointment of an administrator of the Borrower or
                the Bank
                believes that any such petition or other step is imminent or an
                administration order is made in relation to the Borrower;
                or

            

    

     

    
      	
              11.1.12

            	
              Appointment
                of receivers and managers:
                any administrative or other receiver is appointed of the Borrower
                or any
                part of its assets and/or undertaking or any other steps are taken
                to
                enforce any Encumbrance over all or any part of the assets of the
                Borrower; or

            

    

     

    
      	
              11.1.13

            	
              Compositions:
                any steps are taken, or negotiations commenced, by the Borrower or
                by any
                of its creditors with a view to the general readjustment or rescheduling
                of all or part of its indebtedness or to proposing any kind of
                composition, compromise or arrangement involving such company and
                any of
                its creditors; or

            

    

     

    
      	
              11.1.14

            	
              Analogous
                proceedings:
                there occurs, in relation to the Borrower in any country or territory
                in
                which it carries on business or to the jurisdiction of whose courts
                any
                part of its assets is subject, any event which, in the reasonable
                opinion
                of the Bank, appears in that country or territory to correspond with,
                or
                have an effect equivalent or similar to, any of those mentioned in
                clauses
                11.1.6 to 11.1.12 (inclusive) or any Security Party otherwise becomes
                subject, in any such country or territory, to the operation of any
                law
                relating to insolvency, bankruptcy or liquidation;
                or

            

    

     

    
      	
              11.1.15

            	
              Cessation
                of business:
                the Borrower suspends or ceases or threatens to suspend or cease
                to carry
                on its business; or

            

    

     

    
      	
              11.1.16

            	
              Seizure:
                all or a material part of the undertaking, assets, rights or revenues
                of,
                or shares or other ownership interests in the Borrower are seized,
                nationalised, expropriated or compulsorily acquired by or under the
                authority of any government; or

            

    

     

    
      	
              11.1.17

            	
              Invalidity:
                any of the Security Documents shall at any time and for any reason
                become
                invalid or unenforceable or otherwise cease to remain in full force
                and
                effect, or if the validity or enforceability of any of the Security
                Documents shall at any time 

            

    

     

    
      
        
        

      

      37

      

        

      

    
    
      
      

    

     

    and
      for
      any reason be contested by any Security Party which is a party thereto, or
      if
      any such Security Party shall deny that it has any, or any further, liability
      thereunder; or

     

    
      	
              11.1.18

            	
              Unlawfulness:
                it becomes impossible or unlawful at any time for any Security Party,
                to
                fulfil any of the covenants and obligations expressed to be assumed
                by it
                in any of the Security Documents or for the Bank to exercise the
                rights or
                any of them vested in it under any of the Security Documents or otherwise;
                or

            

    

     

    
      	
              11.1.19

            	
              Repudiation:
                any Security Party repudiates any of the Security Documents or does
                or
                causes or permits to be done any act or thing evidencing an intention
                to
                repudiate any of the Security Documents;
                or

            

    

     

    
      	
              11.1.20

            	
              Encumbrances
                enforceable:
                any Encumbrance (other than Permitted Liens) in respect of any of
                the
                property (or part thereof) which is the subject of any of the Security
                Documents becomes enforceable; or

            

    

     

    
      	
              11.1.21

            	
              Material
                adverse change:
                there occurs, in the opinion of the Bank, a material adverse change
                in the
                financial condition of the Borrower by reference to the financial
                position
                of the Borrower as described by the Borrower to the Bank in the
                negotiation of this Agreement; or

            

    

     

    
      	
              11.1.22

            	
              Arrest:
                the Ship is arrested, confiscated, seized, taken in execution, impounded,
                forfeited, detained in exercise or purported exercise of any possessory
                lien or other claim or otherwise taken from the possession of the
                Borrower
                and the Borrower shall fail to procure the release of the Ship within
                a
                period of fourteen (14) days thereafter;
                or

            

    

     

    
      	
              11.1.23

            	
              Registration:
                the registration of the Ship under the laws and flag of the Flag
                State is
                cancelled or terminated without the prior written consent of the
                Bank;
                or

            

    

     

    
      	
              11.1.24

            	
              Unrest:
                the Flag State becomes involved in hostilities or civil war or there
                is a
                seizure of power in the Flag State by unconstitutional means if,
                in any
                such case, such event could in the opinion of the Bank reasonably
                be
                expected to have a material adverse effect on the security constituted
                by
                any of the Security Documents; or

            

    

     

    
      	
              11.1.25

            	
              Environment:
                the Borrower and/or any of its Environmental Affiliates fails to
                comply
                with any Environmental Law or any Environmental Approval or the Ship
                is
                involved in any incident which gives rise or may give rise to an
                Environmental Claim if, in any such case, such non-compliance or
                incident
                or the consequences thereof could, in the opinion of the Bank, reasonably
                be expected to have a material adverse effect on the business, assets,
                operations, property or financial condition of the Borrower or any
                other
                Security Party or on the security constituted by any of the Security
                Documents; or

            

    

     

    
      	
              11.1.26

            	
              P&I:
                the Borrower or any other person fails or omits to comply with any
                requirements of the protection and indemnity association or other
                insurer
                with which the Ship is entered for insurance or insured against protection
                and indemnity risks 

            

    

     

    
      
        
        

      

      38

      

        

      

    
    
      
      

    

     

    (including
      oil pollution risks) to the effect that any cover (including, without
      limitation, any cover in respect of liability for Environmental Claims arising
      in jurisdictions where the Ship operates or trades) is or may be liable to
      cancellation, qualification or exclusion at any time; or

     

    
      	
              11.1.27

            	
              Ownership:
                there is any change in the legal ownership of the shares in the Borrower
                from that existing at the date of this Agreement;
                or

            

    

     

    
      	
              11.1.28

            	
              Material
                events:
                any other event occurs or circumstance arises which, in the opinion
                of the
                Bank, is likely materially and adversely to affect either (i) the
                ability
                of any Security Party to perform all or any of its obligations under
                or
                otherwise to comply with the terms of any of the Security Documents
                or the
                Master Swap Agreement or (ii) the security created by any of the
                Security
                Documents;

            

    

     

    
      	
            	11.2	
              Acceleration

            

    

     

    The
      Bank
      may, without prejudice to any other rights of the Bank, at any time after the
      happening of an Event of Default so long as the same is continuing by notice
      to
      the Borrower declare that:

     

    
      	
              11.2.1

            	
              the
                obligation of the Bank to make the Commitment available shall be
                terminated, whereupon the Commitment shall be reduced to zero forthwith;
                and/or

            

    

     

    
      	
              11.2.2

            	
              the
                Loan and all interest and commitment commission accrued and all other
                sums
                payable under the Security Documents have become due and payable,
                whereupon the same shall, immediately or in accordance with the terms
                of
                such notice, become due and
                payable.

            

    

     

    
      	
            	11.3	
              Demand
                basis

            

    

     

    If,
      pursuant to clause 11.2.2, the Bank declares the Loan to be due and payable
      on
      demand, the Bank may by written notice to the Borrower (a) call for repayment
      of
      the Loan on such date as may be specified whereupon the Loan shall become due
      and payable on the date so specified together with all interest accrued and
      all
      other sums payable under this Agreement or (b) withdraw such declaration with
      effect from the date specified in such notice.

     

    
      	 	
              12

            	
              Indemnities

            

    

     

    
      	
            	12.1	
              Miscellaneous
                indemnities

            

    

     

    The
      Borrower shall on demand indemnify the Bank, without prejudice to any of the
      Bank’s other rights under any of the Security Documents, against any loss
      (excluding loss of Margin) or expense which the Bank shall certify as sustained
      or incurred by it as a consequence of:

     

    
      	
              12.1.1

            	
              any
                default in payment by the Borrower of any sum under any of the Security
                Documents when due;

            

    

     

    
      
        
        

      

      39

      

        

      

    
    
      
      

    

     

    
      	
              12.1.2

            	
              the
                occurrence of any other Event of
                Default;

            

    

     

    
      	
              12.1.3

            	
              any
                prepayment of the Loan or part thereof being made under clause 5.2,
                5.3,
                9.2.1 or 13.1, or any other repayment of the Loan or part thereof
                being
                made otherwise than on an Interest Payment Date relating to the part
                of
                the Loan prepaid or repaid; or

            

    

     

    
      	
              12.1.4

            	
              the
                Loan not being made for any reason (excluding any default by the
                Bank)
                after the Drawdown Notice has been
                given,

            

    

     

    including,
      in any such case, but not limited to, any loss or expense sustained or incurred
      in maintaining or funding the Loan or any part thereof or in liquidating or
      re-employing deposits from third parties acquired to effect or maintain the
      Loan
      or any part thereof.

     

    
      	
            	12.2	
              Currency
                indemnity

            

    

     

    If
      any
      sum due from the Borrower under any of the Security Documents or any order
      or
      judgment given or made in relation thereto has to be converted from the currency
      (the “first
      currency”)
      in
      which the same is payable under the relevant Security Document or under such
      order or judgment into another currency (the “second
      currency”)
      for
      the purpose of (a) making or filing a claim or proof against the Borrower,
      (b)
      obtaining an order or judgment in any court or other tribunal or (c) enforcing
      any order or judgment given or made in relation to any of the Security
      Documents, the Borrower shall indemnify and hold harmless the Bank from and
      against any loss suffered as a result of any difference between (i) the rate
      of
      exchange used for such purpose to convert the sum in question from the first
      currency into the second currency and (ii) the rate or rates of exchange at
      which the Bank may in the ordinary course of business purchase the first
      currency with the second currency upon receipt of a sum paid to it in
      satisfaction, in whole or in part, of any such order, judgment, claim or proof.
      Any amount due from the Borrower under this clause 12.2 shall be due as a
      separate debt and shall not be affected by judgment being obtained for any
      other
      sums due under or in respect of any of the Security Documents and the term
“rate
      of exchange” includes any premium and costs of exchange payable in connection
      with the purchase of the first currency with the second currency.

     

    
      	
            	12.3	
              Environmental
                indemnity

            

    

     

    The
      Borrower shall indemnify the Bank on demand and hold the Bank harmless from
      and
      against all costs, expenses, payments, charges, losses, demands, liabilities,
      actions, proceedings (whether civil or criminal), penalties, fines, damages,
      judgements, orders, sanctions or other outgoings of whatever nature which may
      be
      suffered, incurred or paid by, or made or asserted against the Bank at any
      time,
      whether before or after the repayment in full of principal and interest under
      this Agreement, relating to, or arising directly or indirectly in any manner
      or
      for any cause or reason whatsoever out of an Environmental Claim made or
      asserted against the Bank if such Environmental Claim would not have been,
      or
      been capable of being, made or asserted against the Bank if it had not entered
      into any of the Security Documents and/or exercised any of its rights, powers
      and discretions thereby conferred and/or performed any of its obligations

    
       

      
        
          
          

        

        40

        
  

          

        

      

      
        
        

      

    
     

    thereunder
      and/or been involved in any of the transactions contemplated by the Security
      Documents.

     

    
      	 	
              13

            	
              Unlawfulness
                and increased costs

            

    

     

    
      	
            	13.1	
              Unlawfulness

            

    

     

    If
      it is
      or becomes contrary to any law or regulation for the Bank to advance the Loan
      or
      to, maintain the Commitment or fund the Loan the Bank shall promptly give notice
      to the Borrower whereupon (a) the Commitment shall be reduced to zero and (b)
      the Borrower shall be obliged to prepay the Loan either (i) forthwith or (ii)
      on
      a future specified date not being earlier than the latest date permitted by
      the
      relevant law or regulation together with interest accrued to the date of
      prepayment and all other sums payable by the Borrower under this Agreement
      and/or the Master Swap Agreement;

     

    
      	
            	13.2	
              Increased
                costs

            

    

     

    If
      the
      result of any change in, or in the interpretation or application of, or the
      introduction of, any law or any regulation, request or requirement (whether
      or
      not having the force of law, but, if not having the force of law, with which
      the
      Bank or, as the case may be, its holding company habitually complies), including
      (without limitation) those relating to Taxation, capital adequacy, liquidity,
      reserve assets, cash ratio deposits and special deposits, is to:

     

    
      	
              13.2.1

            	
              subject
                the Bank to Taxes or change the basis of Taxation of the Bank with
                respect
                to any payment under any of the Security Documents (other than Taxes
                or
                Taxation on the overall net income, profits or gains of the Bank
                imposed
                in the jurisdiction in which its principal or lending office under
                this
                Agreement is located); and/or

            

    

     

    
      	
              13.2.2

            	
              increase
                the cost to, or impose an additional cost on, the Bank or its holding
                company in making or keeping the Commitment available or maintaining
                or
                funding all or part of the Loan;
                and/or

            

    

     

    
      	
              13.2.3

            	
              reduce
                the amount payable or the effective return to the Bank under any
                of the
                Security Documents; and/or

            

    

     

    
      	
              13.2.4

            	
              reduce
                the Bank’s or its holding company’s rate of return on its overall capital
                by reason of a change in the manner in which it is required to allocate
                capital resources to the Bank’s obligations under any of the Security
                Documents; and/or

            

    

     

    
      	
              13.2.5

            	
              require
                the Bank or its holding company to make a payment or forego a return
                on or
                calculated by reference to any amount received or receivable by the
                Bank
                under any of the Security Documents;
                and/or

            

    

     

    
      	
              13.2.6

            	
              require
                the Bank or its holding company to incur or sustain a loss (including
                a
                loss of future potential profits) by reason of being obliged to deduct
                all
                or part of the Commitment or the Loan from its capital for regulatory
                purposes,

            

    

     

    
      
        
        

      

      41

      

        

      

    
    
      
      

    

     

    then
      and
      in each such case (subject to clause 12.3);

     

    
      	 	
              (a)

            	
              the
                Bank shall notify the Borrower in writing of such event promptly
                upon its
                becoming aware of the same; and

            

    

     

    
      	 	
              (b)

            	
              the
                Borrower shall on demand pay to the Bank the amount which the Bank
                specifies (in a certificate setting forth the basis of the computation
                of
                such amount but not including any matters which the Bank or its holding
                company regards as confidential) is required to compensate the Bank
                and/or
                (as the case may be) its holding company for such liability to Taxes,
                cost, reduction, payment, foregone return or
                loss.

            

    

     

    For
      the
      purposes of this clause 13.2 “holding
      company”
means
      the company or entity (if any) within the consolidated supervision of which
      the
      Bank is included.

     

    
      	
            	13.3	
              Exception

            

    

     

    Nothing
      in clause 13.2 shall entitle the Bank to receive any amount in respect of
      compensation for any such liability to Taxes, increased or additional cost,
      reduction, payment, foregone return or loss (a) to the extent that the same
      is
      taken into account in calculating the Additional Cost or (b) to the extent
      that
      the same is the subject of an additional payment under clause 7.6.

     

    
      	 	
              14

            	
              Security
                and set-off

            

    

     

    
      	
            	14.1	
              Application
                of moneys

            

    

     

    All
      moneys received by the Bank under or pursuant to any of the Security Documents
      and expressed to be applicable in accordance with the provisions of this clause
      14.1 shall be applied by the Bank in the following manner:

     

    
      	
              14.1.1

            	
              first
                in or towards payment of all unpaid fees and expenses which may be
                owing
                to the Bank under any of the Security Documents and/or the Master
                Swap
                Agreement;

            

    

     

    
      	
              14.1.2

            	
              secondly
                in or towards payment of any arrears of interest owing in respect
                of the
                Loan or any part thereof;

            

    

     

    
      	
              14.1.3

            	
              thirdly
                in or towards repayment of the Loan (whether the same is due and
                payable
                or not);

            

    

     

    
      	
              14.1.4

            	
              fourthly
                in or towards payment to the Bank for any loss suffered by reason
                of any
                such payment in respect of principal not being effected on an Interest
                Payment Date relating to the part of the Loan
                repaid;

            

    

     

    
      	
              14.1.5

            	
              fifthly,
                in or towards payment to the Bank of any sum owing to the Bank under
                the
                Master Swap Agreement;

            

    

     

    
      
        
        

      

      42

      

        

      

    
    
      
      

    

     

    
      	
              14.1.6

            	
              sixthly
                in or towards payment to the Bank of any other sums owing to it under
                any
                of the other Security Documents;
                and

            

    

     

    
      	
              14.1.7

            	
              seventhly
                the surplus (if any) shall be paid to the Borrower or to whomsoever
                else
                may be entitled to receive such
                surplus.

            

    

     

    
      	
            	14.2	
              Set-off

            

    

     

    
      	
              14.2.1

            	
              The
                Borrower authorises the Bank (without prejudice to any of the Bank’s
                rights at law, in equity or otherwise), at any time and without notice
                to
                the Borrower, to apply any credit balance to which the Borrower is
                then
                entitled standing upon any account of the Borrower with any branch
                of the
                Bank in or towards satisfaction of any sum due and payable from the
                Borrower to the Bank under any of the Security Documents. For this
                purpose, the Bank is authorised to purchase with the moneys standing
                to
                the credit of such account such other currencies as may be necessary
                to
                effect such application. The Bank shall not be obliged to exercise
                any
                right given to it by this clause 14.2. The Bank shall notify the
                Borrower
                forthwith upon the exercise or purported exercise of any right of
                set-off
                giving full details in relation
                thereto.

            

    

     

    
      	
              14.2.2

            	
              Without
                prejudice to its rights hereunder and/or under the Master Swap Agreement,
                the Bank may at the same time as, or at any time after, any Default
                under
                this Agreement or the Borrower’s default under the Master Swap Agreement,
                set-off any amount due now or in the future from the Borrower to
                the Bank
                under this Agreement against any amount due from the Bank to the
                Borrower
                under the Master Swap Agreement and apply the first amount in discharging
                the second amount. The effect of any set-off under this clause 14.2.2
                shall be effective to extinguish or, as the case may require, reduce
                the
                liabilities of the Bank under the Master Swap
                Agreement.

            

    

     

    
      	
            	14.3	
              Further
                assurance

            

    

     

    The
      Borrower undertakes that the Security Documents shall both at the date of
      execution and delivery thereof and so long as any moneys are owing under any
      of
      the Security Documents be valid and binding obligations of the respective
      parties thereto and rights of the Bank enforceable in accordance with their
      respective terms and that it will, at its expense, execute, sign, perfect and
      do, and will procure the execution, signing, perfecting and doing by each of
      the
      other Security Parties of, any and every such further assurance, document,
      act
      or thing as in the reasonable opinion of the Bank may be necessary or desirable
      for perfecting the security contemplated or constituted by the Security
      Documents.

     

    
      	
            	14.4	
              Conflicts

            

    

     

    In
      the
      event of any conflict between this Agreement and any of the other Borrower’s
      Security Documents, the provisions of this Agreement shall prevail.

     

    
      	 	
              15

            	
              Accounts

            

    

     

    
      	
            	15.1	
              General

            

    

    
       

      
        
          
          

        

        43

        
  

          

        

      

      
        
        

      

    
     

    The
      Borrower undertakes with the Bank that it will procure that all moneys payable
      to the Borrower in respect of the Earnings (as defined in the General
      Assignment) of the Ship shall, unless and until the Bank directs to the contrary
      pursuant to clause 2.1.1 of the General Assignment, be paid to the Safety
      Account.

     

    
      	
            	15.2	
              Cash
                Collateral Account:
                withdrawals

            

    

     

    Unless
      the Bank otherwise agrees in writing, the Borrower shall not be entitled to
      withdraw any moneys from the Cash Collateral Account at any time from the date
      of this Agreement and so long as any moneys are owing under the Security
      Documents save that, unless and until a Default shall occur and the Bank shall
      direct to the contrary, the Borrower may request that moneys are released from
      the Cash Collateral Account in accordance with clause 4.7 or clause
      9.2.7.

     

    
      	
            	15.3	
              Application
                of accounts

            

    

     

    At
      any
      time after the occurrence of an Event of Default, the Bank may, without notice
      to the Borrower, apply all moneys then standing to the credit of the Cash
      Collateral Account (together with interest from time to time accruing or accrued
      thereon) in or towards satisfaction of any sums due to the Bank under the
      Security Documents in the manner specified in clause 14.1.

     

    
      	
            	15.4	
              Charging
                of Cash Collateral Account

            

    

     

    The
      Borrower, with full title guarantee hereby charges and agrees to charge by
      way
      of first fixed charge and releases and agrees to release to the Bank as a
      continuing security for the payment of the Outstanding Indebtedness (as this
      term is defined in the Deed of Covenant) the Cash Collateral Account and all
      monies from time to time standing to the credit of the Cash Collateral Account
      including any interest from time to time accrued and accruing thereon (whether
      or not credited thereto) and the Borrower shall not be entitled to withdraw
      any
      such monies from the Cash Collateral Account otherwise than in accordance with
      this clause 15 until such time as the said Outstanding Indebtedness has been
      conclusively certified by the Bank to have been repaid in full.

     

    
      	 	
              16

            	
              Assignment,
                transfer and lending
                office

            

    

     

    
      	
            	16.1	
              Benefit
                and burden

            

    

     

    This
      Agreement shall be binding upon, and enure for the benefit of, the Bank and
      the
      Borrower and their respective successors.

     

    
      	
            	16.2	
              No
                assignment by Borrower

            

    

     

    The
      Borrower may not assign or transfer any of its rights or obligations under
      this
      Agreement.

     

    
      	
            	16.3	
              Assignment
                by Bank

            

    

     

    
      
        
        

      

      44

      

        

      

    
    
      
      

    

    The
      Bank
      may assign all or any part of its rights under this Agreement and/or the Master
      Swap Agreement or under any of the other Security Documents to any other bank
      or
      financial institution (an “Assignee”) with the prior written consent of the
      Borrower (such consent not to be unreasonably withheld and the request for
      which
      shall be promptly responded to), unless the Assignee shall be a Subsidiary
      or
      the holding company of the Bank (in which case no such consent shall be
      required, the Borrower consenting to any such assignment by its execution of
      this Agreement).

     

    
      	
            	16.4	
              Transfer

            

    

     

    The
      Bank
      may transfer all or any part of its rights, benefits and/or obligations under
      this Agreement and/or the Master Swap Agreement and/or any of the other Security
      Documents to any one or more banks or other financial institutions (a
“Transferee”):

     

    
      	
              16.4.1

            	
              with
                the prior written consent of the Borrower (such consent not to be
                unreasonably withheld and the request for which shall be promptly
                responded to), unless the Transferee shall be a Subsidiary or the
                holding
                company of the Bank (in which case no such consent shall be required,
                the
                Borrower consenting to any such transfer by its execution of this
                Agreement); and

            

    

     

    
      	
              16.4.2

            	
              if
                the Transferee, by delivery of such undertaking as the Bank may approve,
                becomes bound by the terms of this Agreement and agrees to perform
                all or,
                as the case may be, part of the Bank’s obligations under this
                Agreement.

            

    

     

    
      	
            	16.5	
              Documenting
                assignments and transfers

            

    

     

    If
      the
      Bank assigns all or any part of its rights or transfers all or any part of
      its
      rights, benefits and/or obligations as provided in clause 16.3 or 16.4 the
      Borrower undertakes, immediately on being requested to do so by the Bank and
      at
      the cost of the Bank, to enter into, and procure that the other Security Parties
      shall enter into, such documents as may be necessary or desirable to transfer
      to
      the Assignee or Transferee all or the relevant part of the Bank’s interest in
      the Security Documents and all relevant references in this Agreement to the
      Bank
      shall thereafter be construed as a reference to the Bank and/or its Assignee
      or
      Transferee (as the case may be) to the extent of their respective
      interests.

     

    
      	
            	16.6	
              Lending
                office

            

    

     

    The
      Bank
      shall lend through its office at the address specified above or through any
      other office of the Bank selected from time to time by it through which the
      Bank
      wishes to lend for the purposes of this Agreement. If the office through which
      the Bank is lending is changed pursuant to this clause 16.6, the Bank shall
      notify the Borrower promptly of such change.

     

    
      	
            	16.7	
              Disclosure
                of information

            

    

     

    The
      Bank
      may disclose to a prospective assignee, transferee or to any other person who
      may propose entering into contractual relations with the Bank in relation to
      this Agreement such information about the Borrower as the Bank shall consider
      appropriate.

    
       

      
        
          
          

        

        45

        
  

          

        

      

      
        
        

      

    
     

    
      	 	
              17

            	
              Notices
                and other matters

            

    

     

    
      	
            	17.1	
              Notices

            

    

     

    Every
      notice, request, demand or other communication under this Agreement or (unless
      otherwise provided therein) under any of the other Security Documents
      shall:

     

    
      	
              17.1.1

            	
              be
                in writing delivered personally or by first-class prepaid letter
                (airmail
                if available) or facsimile transmission or other means of
                telecommunication in permanent written
                form;

            

    

     

    
      	
              17.1.2

            	
              be
                deemed to have been received, subject as otherwise provided in the
                relevant Security Document, in the case of a letter, when delivered
                personally or three (3) days after it has been put in to the post
                and, in
                the case of a facsimile transmission or other means of telecommunication
                in permanent written form, at the time of despatch (provided that
                if the
                date of despatch is not a business day in the country of the addressee
                or
                if the time of despatch is after the close of business in the country
                of
                the addressee it shall be deemed to have been received at the opening
                of
                business on the next such business day);
                and

            

    

     

    
      	
              17.1.3

            	
              be
                sent:

            

    

     

    
      	 	
              (a)

            	
              to
                the Borrower at:

            

    

     

    32
      Karamanli Avenue

    166
      05
      Voula

    Greece

    

    Fax
      no: +30 210 895 6900

    Attention: George
      Papadopoulos

    

    
      	 	
              (b)

            	
              to
                the Bank at:

            

    

     

    The
      Shipping Business Centre

    5-10
      Great Tower Street

    London,
      EC3P 3HX

    England

    

    Fax
      No: +44 207 283 7538

    Attention: Shipping
      Business Centre

    

    or
      to
      such other address and/or numbers as is notified by one party to the other
      party
      under this Agreement.

     

    
      	
            	17.2	
              No
                implied waivers, remedies
                cumulative

            

    

     

    No
      failure or delay on the part of the Bank to exercise any power, right or remedy
      under any of the Security Documents shall operate as a waiver thereof, nor
      shall
      any single or 

     

    
      
        
        

      

      46

      

        

      

    
    
      
      

    

    partial
      exercise by the Bank of any power, right or remedy preclude any other or further
      exercise thereof or the exercise of any other power, right or remedy. The
      remedies provided in the Security Documents are cumulative and are not exclusive
      of any remedies provided by law.

     

    
      	
            	17.3	
              English
                language

            

    

     

    All
      certificates, instruments and other documents to be delivered under or supplied
      in connection with any of the Security Documents shall be in the English
      language or shall be accompanied by a certified English translation upon which
      the Bank shall be entitled to rely.

     

    
      	 	
              18

            	
              Governing
                law and jurisdiction

            

    

     

    
      	
            	18.1	
              Law

            

    

     

    This
      Agreement is governed by and shall be construed in accordance with English
      law.

     

    
      	
            	18.2	
              Submission
                to jurisdiction

            

    

     

    The
      Borrower agrees, for the benefit of the Bank, that any legal action or
      proceedings arising out of or in connection with this Agreement against the
      Borrower or any of its assets may be brought in the English courts. The Borrower
      irrevocably and unconditionally submits to the jurisdiction of such courts
      and
      irrevocably designates, appoints and empowers Cheeswrights at present of 10
      Philpot Lane, London EC3M 8BR, England to receive for it and on its behalf,
      service of process issued out of the English courts in any such legal action
      or
      proceedings. The submission to such jurisdiction shall not (and shall not be
      construed so as to) limit the right of the Bank to take proceedings against
      the
      Borrower in the courts of any other competent jurisdiction nor shall the taking
      of proceedings in any one or more jurisdictions preclude the taking of
      proceedings in any other jurisdiction, whether concurrently or not. The parties
      further agree that only the Courts of England and not those of any other State
      shall have jurisdiction to determine any claim which the Borrower may have
      against the Bank arising out of or in connection with this
      Agreement.

     

    
      	
            	18.3	
              Contracts
                (Rights of Third Parties) Act
                1999

            

    

     

    No
      term
      of this Agreement is enforceable under the Contracts (Rights of Third Parties)
      Act 1999 by a person who is not a party to this Agreement.

     

    IN
      WITNESS
      whereof
      the parties to this Agreement have caused this Agreement to be duly executed
      on
      the date first above written.

    
       

      
        
          
          

        

        47

        
  

          

        

      

      
        
        

      

      Schedule
        1

       

      Form
        of Drawdown Notice

       

      (referred
        to in clause 2.2)

       

      [Date]

       

      
        	
                To:

              	
                The
                  Royal Bank of Scotland plc 

                Shipping
                  Business Centre 

                5-10
                  Great Tower Street 

                London
                  EC3P 3H  

                England

              

      

       

      Twenty
        eight million Dollar ($28,000,000) Loan

      Loan
        Agreement dated
        [                 ]
        2005

       

      We
        refer
        to the above Loan Agreement and hereby give you notice that we wish to draw
        down
        the Loan, namely Twenty eight million Dollars ($28,000,000) on [ ] [and select
        a
        first Interest Period in respect thereof of • months] [the first Interest Period
        in respect thereof to expire on {date}]. The
        funds
        should be credited to [name
        and number of account] with
        [details
        of bank in [New York] [principal financial centre for relevant Optional
        Currency] [in
        the
        following Tranches].

      

        
          	
                  Dollar
                    Amount

                   

                	
                  Currency
                    in which Tranche 

                  is
                    to be outstanding

                	
                  Interest
                    Period

                   

                	
                  Please
                    credit the funds to:

                   

                
	 	 	 	
                  The
                    Safety Account

                   

                

        

      

       

      We
        confirm that:

       

      
        	
                (a)

              	
                no
                  event or circumstance has occurred and is continuing which constitutes
                  a
                  Default;

              

      

       

      
        	
                (b)

              	
                the
                  representations and warranties contained in clauses 8.1 and 8.2
                  of the
                  Loan Agreement are true and correct at the date hereof as if made
                  with
                  respect to the facts and circumstances existing at such
                  date;

              

      

       

      
        	
                (c)

              	
                the
                  borrowing to be effected by the drawdown of the Loan will be within
                  our
                  corporate powers, has been validly authorised by appropriate corporate
                  action and will not cause any limit on our borrowings (whether
                  imposed by
                  statute, regulation, agreement or otherwise) to be exceeded;
                  and

              

      

       

      
        	
                (d)

              	
                there
                  has been no material adverse change in our financial position from
                  that
                  described by us to the Bank in the negotiation of the Loan
                  Agreement.

              

      

       

      
        
          
          

        

        48

        
  

          

        

      
      
        
        

      

    
     

    Words
      and
      expressions defined in the Loan Agreement shall have the same meanings where
      used herein.

     

    
      	 
	
              For
                and on behalf of

            
	
              MARATHASSA
                SHIPPING CORPORATION

            

    

     

    
      
        
        

      

      49

      

        

      

    
    
      
      

    

     

    Schedule
      2

     

    Documents
      and evidence required as conditions precedent

     

    (referred
      to in clause 10.1)

     

    Part
      1

     

    
      	1	
              Ship
                conditions

            

    

     

    evidence
      that the Ship:

     

    
      	1.1	
              Registration
                and Encumbrances

            

    

     

    is
      registered in the name of the Borrower through the Registry under the laws
      and
      flag of the Flag State and that the Ship and its Earnings, Insurances and
      Requisition Compensation (as defined in the General Assignment) are free of
      Encumbrances;

     

    
      	1.2	
              Classification

            

    

     

    maintains
      the Classification free of all requirements and recommendations of the
      Classification Society; and

     

    
      	1.3	
              Insurance

            

    

     

    is
      insured in accordance with the provisions of the Security Documents and all
      requirements of the Security Documents in respect of such insurance have been
      complied with (including without limitation, confirmation from the protection
      and indemnity association or other insurer with which the Ship is, or is to
      be,
      entered for insurance or insured against protection and indemnity risks
      (including oil pollution risks) that any necessary declarations required by
      the
      association or insurer for the removal of any oil pollution exclusion have
      been
      made and that any such exclusion does not apply to the Ship);

     

    
      	2	
              Constitutional
                documents

            

    

     

    Photostat
      copies, certified by an officer of each Security Party as true, complete and
      up
      to date copies of all documents which contain or establish or relate to the
      constitution of that Security Party;

     

    
      	3	
              Corporate
                authorisations

            

    

     

    copies
      of
      resolutions of the directors of the Borrower and of the directors and
      shareholders of each other Security Party approving such of the Security
      Documents to which such Security Party is, or is to be, party and authorising
      the signature, delivery and performance of such Security Party’s obligations
      thereunder, certified (in a certificate 

     

    
      
        
        

      

      50

      

        

      

    
    
      
      

    

     

    dated
      no
      earlier than five (5) Banking Days prior to the date of this Agreement) by
      an
      officer of such Security Party as:

     

    
      	 	
              (i)

            	
              being
                true and correct;

            

    

     

    
      	 	
              (ii)

            	
              being
                duly passed at meetings of the directors of such Security Party and
                of the
                shareholders of such Security Party each duly convened and
                held;

            

    

     

    
      	 	
              (iii)

            	
              not
                having been amended, modified or revoked;
                and

            

    

     

    
      	 	
              (iv)

            	
              being
                in full force and effect

            

    

     

    together
      with originals or certified copies of any powers of attorney issued by any
      Security Party pursuant to such resolutions;

     

    
      	4	
              Specimen
                signatures

            

    

     

    copies
      of
      the signatures of the persons who have been authorised on behalf of each
      Security Party to sign such of the Security Documents to which such Security
      Party is, or is to be, party and to give notices and communications, including
      notices of drawing, under or in connection with the Security Documents,
      certified (in a certificate dated no earlier than five (5) Banking Days prior
      to
      the date of this Agreement) by an officer of such Security Party as being the
      true signatures of such persons;

     

    
      	5	
              Certificate
                of incumbency

            

    

     

    a
      list of
      directors and officers of each Security Party specifying the names and positions
      of such persons, certified (in a certificate dated no earlier than five (5)
      Banking Days prior to the date of this Agreement) by an officer of such Security
      Party to be true, complete and up to date;

     

    
      	6	
              Borrower’s
                consents and approvals

            

    

     

    a
      certificate (dated no earlier than five (5) Banking Days prior to the date
      of
      this Agreement) from an officer of the Borrower that no consents,
      authorisations, licences or approvals are necessary for the Borrower to
      authorise or are required by the Borrower in connection with the borrowing
      by
      the Borrower of the Loan pursuant to this Agreement or the execution, delivery
      and performance of the Borrower’s Security Documents;

     

    
      	7	
              Other
                consents and approvals

            

    

     

    a
      certificate (dated no earlier than five (5) Banking Days prior to the date
      of
      this Agreement) from an officer of each Security Party (other than the Borrower)
      that no consents, authorisations, licences or approvals are necessary for such
      Security Party to guarantee and/or grant security for the borrowing by the
      Borrower of the Commitment pursuant to this Agreement and execute, deliver
      and
      perform the Security Documents insofar as such Security Party is a party
      thereto;

    
       

      
        
          
          

        

        51

        
  

          

        

      

      
        
        

      

    
     

    
      	8	
              Certified
                Management Agreement

            

    

     

    a
      copy,
      certified (in a certificate dated no earlier than five (5) Banking Days prior
      to
      the date of the Drawdown Notice) as a true and complete copy by an officer
      of
      the Manager of the Management Agreement;

     

    
      	9	
              Valuation

            

    

     

    a
      valuation (dated not more than five (5) days prior to the date of the Drawdown
      Notice) of the Ship demonstrating that the market value of the Ship, determined
      in accordance with clause 9.2.2, is acceptable to the Bank;

     

    
      	10	
              Insurance
                opinion

            

    

     

    an
      opinion from Messrs BankAssure Insurance Services Limited insurance consultants
      to the Bank, on the insurances effected or to be effected in respect of the
      Ship
      upon and following the Drawdown Date.

    
       

      
        
          
          

        

        52

        
  

          

        

      

      
        
        

      

    
     

    Part
      2

     

    
      	1	
              Security
                Documents, letters and other
                documents

            

    

     

    the
      Mortgage, the Deed of Covenant, the General Assignment, the Manager’s
      Undertaking, the Interest Period Letter, the Master Swap Agreement and the
      Master Agreement Security Deed all duly executed;

     

    
      	2	
              Mortgage
                registration

            

    

     

    evidence
      that the Mortgage has been registered against the Ship through the Registry
      under the laws and flag of the Flag State;

     

    
      	3	
              Notices
                of assignment

            

    

     

    copies
      of
      duly executed notices of assignment required by the terms of the Security
      Documents and in the forms prescribed by the Security Documents;

     

    
      	4	
              Cyprus
                opinion

            

    

     

    an
      opinion of Chrysses Demetriades & Co, special legal advisers to the Bank on
      matters of Cyprus Law;

     

    
      	5	
              Liberian
                legal opinion

            

    

     

    an
      opinion of Seward & Kissel, special legal advisers to the Bank on matters of
      Liberian Law;

     

    
      	6	
              Further
                opinions

            

    

     

    any
      such
      further opinion as may be required by the Bank;

     

    
      	7	
              Borrower’s
                process agent

            

    

     

    a
      letter
      from the Borrower’s agent for receipt of service of proceedings referred to in
      clause 18.2 accepting its appointment under the said clause and under each
      of
      the other Security Documents in which it is or is to be appointed as the
      Borrower’s agent;

     

    
      	8	
              Manager’s
                process agent

            

    

     

    a
      letter
      from the Manager’s agent for receipt of service of proceedings referred to in
      clause 6(b) of the Manager’s Undertaking accepting its appointment under the
      said clause;

    
       

      
        
          
          

        

        53

        
  

          

        

      

      
        
        

      

    
     

    
      	9	
              Registration
                forms

            

    

     

    such
      statutory forms duly signed by the Borrower and the other Security Parties
      as
      may be required by the Bank to perfect the security contemplated by the Security
      Documents;

     

    
      	10	
              Manager’s
                confirmation

            

    

     

    the
      Manager has confirmed in writing that the representations and warranties set
      out
      in clauses 8.2.9, 8.2.10 and 8.2 11 are true and correct;

     

    
      	11	
              Application
                for DOC and SMC

            

    

     

    a
      certified copy of the DOC and evidence satisfactory to the Bank that the
      Operator has applied to the relevant Regulatory Agency for an SMC for the Ship
      to be issued pursuant to the Code within any time limit required or recommended
      by such Regulatory Agency;

     

    
      	12	
              ISPS
                Code

            

    

     

    evidence
      satisfactory to the Bank that the Ship is subject to a ship security plan that
      complies with the ISPS Code and a copy of the ISSC for the Ship;

     

    
      	13	
              Mortgagee’s
                Interest Insurance Premia

            

    

     

    evidence
      that the Borrower has paid $42,000 in full and final settlement of any premia
      paid by the Bank for effecting Mortgagee’s Interest Insurance
      cover;

     

    
      	14	
              Builder’s
                Certificate

            

    

     

    a
      certified copy of the builder’s certificate issued by Tsuneishi Corporation in
      relation to the Ship;

     

    
      	15	
              Fee

            

    

     

    evidence
      that the total fee of One hundred and twenty seven thousand Dollars ($127,000
      )
      due under clause 6.1.1 has been paid in full, and

     

    
      	16	
              Due
                Diligence

            

    

     

    evidence
      that all information required in order for the Bank to complete its due
      diligence formalities required in connection with this Agreement has been
      provided and is satisfactory to the Bank in all respects.

    
       

      
        
          
          

        

        54

        
  

          

        

      

      
        
        

      

    
     

    Schedule
      3

     

    Calculation
      of Additional Cost

     

    
      	
              1

            	
              The
                Additional Cost is an addition to the interest rate to compensate
                the Bank
                for the cost of compliance with (a) the requirements of the Bank
                of
                England and/or the Financial Services Authority (or, in either case,
                any
                other authority which replaces all or any of its functions) or (b)
                the
                requirements of the European Central
                Bank.

            

    

     

    
      	
              2

            	
              On,
                or as soon as possible after, the first day of each Interest Period,
                the
                Bank shall calculate, as a percentage rate, its Additional Cost in
                accordance with the following paragraphs. The Additional Cost will
                be
                expressed as a percentage rate per annum and will be rounded up to
                four
                decimal places.

            

    

     

    
      	
              3

            	
              The
                Additional Cost when the Bank lends from an office in any member
                state of
                the European Union that has adopted or adopts the Euro as its lawful
                currency in accordance with legislation of the European Union relating
                to
                Economic and Monetary Union will be the percentage (expressed as
                a per
                annum rate) which is its reasonable determination of the cost of
                complying
                with the minimum reserve requirements of the European Central Bank
                in
                respect of loans made from that
                office.

            

    

     

    
      	
              4

            	
              The
                Additional Cost for the Bank lending from an office in the United
                Kingdom
                will be calculated as follows:

            

    

     

    
      	
            	(a)	
              in
                relation to a sterling Loan:

            

    

     

    AB
      +
      C(B - D) + Ex
      0.01      
      per
      cent
      per annum

            
      100 - (A + C) 

     

    
      	
            	(b)	
              in
                relation to a Loan in any currency other than
                sterling:

            

    

     

    Ex0.01    
      per cent. per annum

      300

     

    Where:

     

    
      	 	
              A

            	
              is
                the percentage of Eligible Liabilities (assuming these to be in excess
                of
                any stated minimum) which that Lender is from time to time required
                to
                maintain as an interest free cash ratio deposit with the Bank of
                England
                to comply with cash ratio
                requirements.

            

    

     

    
      	 	
              B

            	
              is
                the percentage rate of interest (excluding the Margin and the Additional
                Cost and, if any part of the Loan has not been paid on its due date,
                the
                additional rate of interest specified in clause 3.4 payable for the
                relevant Interest Period on the
                Loan.

            

    

     

    
      
        
        

      

      55

      

        

      

    
    
      
      

    

     

    
      	 	
              C

            	
              is
                the percentage (if any) of Eligible Liabilities which that Lender
                is
                required from time to time to maintain as interest bearing Special
                Deposits with the Bank of England.

            

    

     

    
      	 	
              D

            	
              is
                the percentage rate per annum payable by the Bank of England to the
                Agent
                on interest bearing Special
                Deposits.

            

    

     

    
      	 	
              E

            	
              is
                designed to compensate the Bank for amounts payable under the Fees
                Rules
                and is calculated by the Bank as being the most recent rate of charge
                payable by it to the Financial Services Authority under the Fees
                Rules in
                respect of the relevant financial year of the Financial Services
                Authority
                (calculated for this purpose by the Bank as being the average of
                the Fee
                Tariffs applicable to the Bank for that financial year) and expressed
                in
                pounds per £1,000,000 of the Tariff Base of the
                Bank.

            

    

     

    
      	
              5

            	
              For
                the purposes of this schedule:

            

    

     

    
      	 	
              (a)

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

            

    

     

    
      	 	
              (b)

            	
              “Fees
                Rules”
                means the rules on periodic fees contained in the Supervision manual
                of
                the Financial Services Authority’s Handbook of rules and guidance or such
                other law or regulation as may be in force from time to time in respect
                of
                the payment of fees for the acceptance of
                deposits;

            

    

     

    
      	 	
              (c)

            	
              “Fee
                Tariffs”
                means the fee tariffs specified in the Fees Rules under the activity
                group
                A.1 Deposit acceptors (ignoring any minimum fee or zero rated fee
                required
                pursuant to the Fees Rules but taking into account any applicable
                discount
                rate);

            

    

     

    
      	 	
              (d)

            	
              “Tariff
                Base”
                has the meaning given to it in, and will be calculated in accordance
                with,
                the Fees Rules; and

            

    

     

    
      	 	
              (e)

            	
              “pounds”
                and “£”
                means the lawful currency of the United
                Kingdom.

            

    

     

    
      	
              6

            	
              In
                application of the above formulae, A, B, C and D will be included
                in the
                formulae as figures and not as percentages (i.e. 5 per cent. will
                be
                included in the formula as 5 and not a 0.05). A negative result obtained
                by subtracting D from B shall be taken as zero. The resulting figures
                shall be rounded to four decimal
                places.

            

    

     

    
      	
              7

            	
              Any
                determination by the Bank in accordance with this schedule in relation
                to
                a formula, the Additional Cost or any amount payable to it shall,
                in the
                absence of manifest error, be conclusive and binding on the
                Borrower.

            

    

     

    
      	
              8

            	
              The
                Bank may from time to time, after consultation with the Borrowers,
                determine and notify the Borrowers of any amendments which need to
                be made
                to this schedule to comply with any change in law, regulation or
                any
                requirements from time to time 

            

    

     

    
      
        
        

      

      56

      

        

      

    
    
      
      

    

    imposed
      by the Bank of England, the Financial Services Authority or the European Central
      Bank (or, in any case, any other authority which replaces all or any of its
      functions) and any such determination shall, in the absence of manifest error,
      be conclusive and binding on the Borrowers.

    
       

      
        
          
          

        

        57

        
  

          

        

      

      
        
        

      

    

    Schedule
      4

     

    Form
      of Interest Period Letter

     

    The
      Royal
      Bank of Scotland plc

    Shipping
      Business Centre

    5-10
      Great Tower Street

    London,
      EC3P 3HX

    England

    2005

    

    Dear
      Sirs

     

    Loan
      Agreement dated
                    
2005 between Marathassa Shipping Corporation (the “Borrower”) and The Royal Bank
      of Scotland plc (the “Bank”)

     

    We
      hereby
      confirm that any one of the following individuals is authorised to give verbal
      and/or written instructions to the Bank on behalf of the Borrower in respect
      of
      selection of any Interest Period pursuant to clause 3.2 of the Loan
      Agreement:

     

    Yours
      faithfully

     

    
      	 
	
              For
                and on behalf of

            
	
              MARATHASSA
                SHIPPING CORPORATION

            

    

     

    
      
        
        

      

      58

      

        

      

    
    
      
      

    

     

    Schedule
      5

     

    Form
      of Mortgage

    
       

      
        
          
          

        

        59

        
  

          

        

      

      
        
        

      

    
     

    REPUBLIC
      OF CYPRUS

     

    The
      Merchant Shipping (Registration of Ships, Sales and Mortgages) Law, 1963, (as
      amended).

     

    FIRST
      STATUTORY MORTGAGE (TO SECURE ACCOUNT CURRENT)

    (BODY
      CORPORATE)

    
      

        
          	
                  I.M.O.
                    No.

                  CALL
                    SIGN

                	 	
                  Name
                    of Ship

                	 	
                  Year
                    of Registry or Date of
Provisional

                  Registry/Port
                    of Registry

                
	 	 	 	 	 
	
                  9279783

                  P3ZN9

                	 	
                  Maritsa

                	 	
                  2004,
                    Limassol, Cyprus

                

        

      

    

     

    
      
        	
                Whether
                  a Sailing,

                Steam
                  or Motor Ship

              	
                Horse
                  Power of Engines,
if
                  any

              
	
                Motor
                  Ship

              	
                8,550
                  kw

              

      

    

     

    
      Metres

      

        
          	
                  Length
                    (Article 2(8))

                	
                  217.81

                
	
                  Breadth
                    (Regulation 2(3))

                	
                  32.26

                
	
                  Moulded
                    depth amidships to Upper Deck (Regulation 2(2))

                	
                  19.30

                

        

      

       

      
        Number
          of Tons

        

          
            	
                    Gross: 
40,002

                  	
                    Net: 
26,101

                  

          

        

      

    

     

    
      and
        as
        described in more detail in the Certificate of the Surveyor and the Register
        Book.

    

     

    
      
        
        

      

      60

      

        

      

    
    
      
      

    

     

    WHEREAS
      there is
      an Account Current between MARATHASSA
      SHIPPING CORPORATION
      whose
      registered office is at 80 Broad Street, Monrovia, Liberia, (hereinafter
      sometimes called the “Mortgagor”)
      and
THE
      ROYAL BANK OF SCOTLAND plc,
      whose
      registered office is at 36 St. Andrew Square, Edinburgh EH2 2YB, Scotland,
      acting for the purposes of this Deed through its branch at The Shipping Business
      Centre, 5-10 Great Tower Street, London EC3P 3HX, England (hereinafter sometimes
      called the “Mortgagee”
which
      expression shall include its successors and assignees), regulated by a Loan
      Agreement (hereinafter, as the same may from time to time be amended, varied
      or
      supplemented called the “Loan
      Agreement”)
      dated
                      
2005 made between the Mortgagor and the Mortgagee, an ISDA Master Agreement
      (together with the Schedule thereto) dated
                      
2005 made between the Mortgagor and the Mortgagee (the said ISDA Master
      Agreement and Schedule thereto, as the same may from time to time be amended,
      varied or supplemented and all Confirmations (as therein defined from time
      to
      time exchanged under the said ISDA Master Agreement hereinafter together
      referred to as the “Master
      Swap Agreement”)
      and a
      Deed of Covenant bearing even date herewith made between the Mortgagor and
      the
      Mortgagee supplemental to this Mortgage (hereinafter, as the same may from
      time
      to time be amended, varied or supplemented called the “Deed
      of Covenant”)
      and
      WHEREAS pursuant to the Loan Agreement the Mortgagor has agreed to execute
      this
      Mortgage in favour of the Mortgagee for the purposes of securing payment by
      the
      Mortgagor to the Mortgagee of all sums for the time being owing by the Mortgagor
      under the Loan Agreement, the Master Swap Agreement and the Deed of Covenant
      (as
      each of the same may from time to time hereafter be amended, varied or
      supplemented) in the manner and the times set forth therein and WHEREAS the
      amount of principal and interest due at any given time and the manner and time
      for payment can be ascertained by reference to the Loan Agreement, the Master
      Swap Agreement and the Deed of Covenant (each as so amended, varied or
      supplemented) and/or to the books of account or other accounting records of
      the
      Mortgagee.

     

    NOW
      we
      the said MARATHASSA SHIPPING CORPORATION in consideration of the premises for
      ourselves and our successors, covenant with the said THE
      ROYAL BANK OF SCOTLAND plc
      and its
      successors and assigns to pay to him, them or it the sums for the time being
      due
      to the Mortgagee whether by way of principal or interest or otherwise at the
      times and in the manner aforesaid.

     

    AND
      for
      the purpose of better securing to the said THE
      ROYAL BANK OF SCOTLAND plc
      and its
      successors and assigns the payment of such sums as last aforesaid, we the
      Mortgagor do hereby mortgage to the said THE
      ROYAL BANK OF SCOTLAND plc
      all one
      hundred one hundredth (100/100th) shares, of which we are the Owner in the
      Ship
      above particularly described and in her boats and appurtenances.

     

    Lastly,
      we the Mortgagor for ourselves and our successors covenant with the Mortgagee
      and its successors and assigns that we have power to mortgage in the manner
      aforesaid the above mentioned shares, and that the same are free from
      encumbrances.

     

    
      
        
        

      

      61

      

        

      

    
    
      
      

    

     

    IN
      WITNESS WHEREOF
      this
      Mortgage has been duly executed the day of Two Thousand
      and Five.

     

    
      
        	
                SIGNED,
                  SEALED AND DELIVERED 

              	
                
                  )

                

              
	as
                a DEED by	
                )

              
	
                by

              	
                )

              
	
                as
                  the duly authorised attorney-in-fact

              	
                )

              
	
                of

              	
                )

              
	
                 

              	
                ) 

              
	
                MARATHASSA
                  SHIPPING CORPORATION

              	
                )

              
	
                pursuant
                  to a Power of Attorney

              	
                )

              
	
                dated
                                                
                  2005

              	
                )

              
	
                in
                  the presence of:

              	
                )

              
	 	 

      

    

    _______________________

     

    MEMORANDUM
      OF RECORDING THE MORTGAGE

    BY
      THE REGISTRAR OF CYPRUS SHIPS

     

    Mortgage
      “                ”
entered in the Register on the day
      of at
      hours pursuant to Section 31(3) of the Merchant Shipping (Registration of Ships,
      Sales and Mortgages) Law, 1963

    (as
      amended).

     

    _______________________   
  
(Seal)

    Registrar
      of Cyprus Ships

    
       

      
        
          
          

        

        62

        
  

          

        

      

      
        
        

      

    
     

    INSTRUMENT
      OF TRANSFER OF MORTGAGE

     

    WE,  the
      within-mentioned in consideration of this day paid to us by of hereby transfer
      to him / them the benefit of the within-written security.

     

    IN
      WITNESS WHEREOF
      we have
      hereunto executed this Instrument of Transfer this     day
      of

     

    
      
        	
                SIGNED,
                  SEALED AND DELIVERED

              	
                )

              
	
                by

              	
                )

              
	
                as
                  the duly authorised Attorney of

              	
                )

              
	 	
                )

              
	
                pursuant
                  to a Power of Attorney

              	
                )

              
	
                dated

              	
                )

              
	
                in
                  the presence of:

              	
                )

              

      

    

     

    
      
        	 
	
                Name:

                Title:
                  

                Seat:
                  

                of
                  Consular Officer/Notary Public/Certifying
                  Officer

              

      

    

     

    MEMORANDUM
      OF RECORDING

    OF
      TRANSFER OF MORTGAGE BY REGISTRAR OF CYPRUS SHIPS

     

    Transfer
      of Mortgage “        ” entered in the
      Register on the day of 200  at hours pursuant to Section 37 of the Merchant
      Shipping (Registration
      of Ships, Sales and Mortgages) Law, 1963, (as amended).

     

    
      	 	
              (Seal)

            
	Registrar of Cyprus
              Ships

    

     

    
      
        
        

      

      63

      

        

      

    
    
      
      

    

    MEMORANDUM
      OF DISCHARGE OF MORTGAGE

     

    RECEIVED
      all sums
      due / the sum of ______________________________________________ in
      discharge of the within-written security.

     

    IN
      WITNESS WHEREOF
      we have
      hereunto executed this Memorandum this ______ day
      of
      _______

     

    

      
        	
                THE
                  COMMON SEAL OF

              	
                )

              
	
              	
                )

              
	
                was
                  hereunto affixed

              	
                )

              
	
                in
                  the presence of:-

              	
                )

              

      

    

     

    
      

    

     

    
      
        

      

    

     

    or

    

      
        	
                SIGNED,
                  SEALED AND DELIVERED

              	
                )

              
	
                by

              	
                )

              
	
                and

              	
                )

              
	
                as
                  the duly authorised Attorney/

              	
                )                 ______________

              
	
                Signatories
                  of

              	
                )

              
	
                pursuant
                  to a Power of Attorney/

              	
                )

              
	
                Instruments
                  of Procuration dated

              	
                )                 ______________

              
	
                in

              	
                )

              
	
                the
                  presence of:-

              	
                )

              

      

    

    
       

      
        
          	 
	
                  Name:

                  Title:
                    

                  Seat:
                    

                  of
                    Consular Officer/Notary Public/Certifying
                    Officer

                

        

      

    

     

    Signature(s)
      and description of witnesses / sealing officers, i.e., Director, Secretary
      etc.
      (as the case may be).

     

    
      
        
        

      

      64

      

        

      

    
    
      
      

    

    Schedule
      6

     

    Form
      of Deed of Covenant

     

    
      
        
        

      

      65

      

        

      

    
    
      
      

    

    Private
      & Confidential

     

    Dated                    
      2005

     

    MARATHASSA
      SHIPPING CORPORATION (1)

     

    and

     

    THE
      ROYAL BANK OF SCOTLAND plc (2)

     
      
        

      

    

    MORTGAGE
      AND DEED OF COVENANT

     

    relating
      to m.v. Maritsa

    
      

    

     

    

     

    
      
        
        

      

      66

      

        

      

    
    
      
      

    

    Contents

     

    
      
        	
                Clause

              	
                Page

              
	 	 
	
                1

              	
                Definitions

              	
                1

              
	 	 	 
	
                2

              	
                Representations
                  and warranties

              	
                6

              
	 	 	 
	
                3

              	
                Mortgage
                  of the Ship

              	
                7

              
	 	 	 
	
                4

              	
                Covenant
                  to pay

              	
                7

              
	 	 	 
	
                5

              	
                Continuing
                  security and other matters

              	
                7

              
	 	 	 
	
                6

              	
                Covenants

              	
                8

              
	 	 	 
	
                7

              	
                Powers
                  of Mortgagee to protect security and remedy defaults

              	
                18

              
	 	 	 
	
                8

              	
                Powers
                  of Mortgagee on Event of Default

              	
                18

              
	 	 	 
	
                9

              	
                Application
                  of moneys

              	
                21

              
	 	 	 
	
                10

              	
                Remedies
                  cumulative and other provisions

              	
                21

              
	 	 	 
	
                11

              	
                Costs
                  and indemnity

              	
                22

              
	 	 	 
	
                12

              	
                Attorney

              	
                22

              
	 	 	 
	
                13

              	
                Further
                  assurance

              	
                23

              
	 	 	 
	
                14

              	
                Notices

              	
                23

              
	 	 	 
	
                15

              	
                Counterparts

              	
                24

              
	 	 	 
	
                16

              	
                Severability
                  of provisions

              	
                24

              
	 	 	 
	
                17

              	
                Law,
                  jurisdiction and language

              	
                24

              

      

    

     

     

    
      
        
        

      

      67

      

        

      

    
    
      
      

    

     

    THIS
      DEED OF COVENANT
      is
      dated 2005
      and
      made BETWEEN:

     

    
      	
              (1)

            	
              MARATHASSA
                SHIPPING CORPORATION
                whose registered office is at 80 Broad Street, Monrovia, Republic
                of
                Liberia (the “Owner”);
                and

            

    

     

    
      	
              (2)

            	
              THE
                ROYAL BANK OF SCOTLAND plc
                whose registered office is at 36 St. Andrew Square, Edinburgh EH2
                2YB,
                Scotland, acting for the purposes of this Deed through its branch
                at The
                Shipping Business Centre, 5-10 Great Tower Street, London, EC3P 3HX,
                England (the “Mortgagee”).

            

    

     

    WHEREAS:

     

    
      	
              (A)

            	
              the
                Owner is the sole, absolute and unencumbered, legal and beneficial
                owner
                of one- hundred one hundredth (100/100th) shares in the Ship described
                in
                clause 1.2;

            

    

     

    
      	(B)	
              by
                a Loan Agreement dated  2005 and made between (1) the Owner (therein
                referred to as the “Borrower”) and (2) the Mortgagee
                (therein referred to as the “Bank”), the Mortgagee agreed
                (inter alia) to advance by way of a multicurrency loan to the Owner,
                upon
                the terms and conditions therein contained, a sum of up to Twenty
                eight
                million Dollars ($28,000,000) or the Equivalent Amount in an Optional
                Currency or Optional Currencies;

            

    

     

    
      	(C)	
              by
                a Master Swap Agreement dated  2005 and made between (1) the Owner
                and (2) the Mortgagee, the Mortgagee agreed the terms and conditions
                upon
                which it would enter into an interest rate swap transaction or
                transactions with the Owner in respect of the Loan (whether in whole
                or in
                part as the case may be from time to
                time);

            

    

     

    
      	
              (D)

            	
              the
                Owner has executed in favour of the Mortgagee a statutory mortgage
                of even
                date herewith in account current form constituting a first priority
                Cyprus
                mortgage of one hundred one hundredth (100/100th) shares in the said
                Ship;
                and

            

    

     

    
      	
              (E)

            	
              this
                Deed is supplemental to the Loan Agreement, the Master Swap Agreement
                and
                the Mortgage and to the security thereby created and is the Deed
                of
                Covenant referred to in the Loan Agreement but shall nonetheless
                continue
                in full force and effect notwithstanding any discharge of the
                Mortgage.

            

    

     

    NOW
      THIS DEED WITNESSES AND IT IS HEREBY AGREED
      as
      follows:

     

    
      	
              1

            	
              Definitions

            

    

     

    
      	1.1	
              Defined
                expressions

            

    

     

    Words
      and
      expressions defined in the Loan Agreement shall, unless the context otherwise
      requires or unless otherwise defined herein, have the same meanings when used
      in
      this Deed.

     

    
      	1.2	
              Definitions

            

    

     

    
      
        
        

      

      
      

      

        

      

    
    
      
      

    

     

    In
      this
      Deed, unless the context otherwise requires:

     

    “Approved
      Brokers”
means
      such firm of insurance brokers, appointed by the Owner, as may from time to
      time
      be approved in writing by the Mortgagee for the purposes of this
      Deed;

     

    “Casualty
      Amount”
means
      Five hundred thousand Dollars ($500,000) (or the equivalent in any other
      currency);

     

    “Collateral
      Instruments”
means
      notes, bills of exchange, certificates of deposit and other negotiable and
      non-negotiable instruments, guarantees, indemnities and other assurances against
      financial loss and any other documents or instruments which contain or evidence
      an obligation (with or without security) to pay, discharge or be responsible
      directly or indirectly for, any indebtedness or liabilities of the Owner or
      any
      other person liable and includes any documents or instruments creating or
      evidencing a mortgage, charge (whether fixed or floating), pledge, lien,
      hypothecation, assignment, trust arrangement or security interest of any
      kind;

     

    “Cyprus”
means
      the Republic of Cyprus;

     

    “Earnings”
means
      all moneys whatsoever from time to time due or payable to the Owner during
      the
      Security Period arising out of the use or operation of the Ship including (but
      without limiting the generality of the foregoing) all freight, hire and passage
      moneys, income arising under pooling arrangements, compensation payable to
      the
      Owner 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;

     

    “Event
      of Default”
means
      any failure by the Owner or any other party to the Loan Agreement and the other
      Security Documents (other than the Mortgagee) to perform, observe, comply with
      or discharge any of the covenants, terms, conditions or obligations on their
      part to be performed, observed, complied with or discharged pursuant to the
      Loan
      Agreement and the other Security Documents or any of them in the manner, within
      the time (including the applicable grace period, if any) and otherwise in
      accordance with the terms and conditions of the Loan Agreement and the other
      Security Documents and includes, without limitation to the generality of the
      foregoing, any of the events set out in clause 11 of the Loan
      Agreement;

     

    “Expenses”
means
      the aggregate at any relevant time (to the extent that the same have not been
      received or recovered by the Mortgagee or any Receiver) of:

     

    
      	 	
              (a)

            	
              all
                losses, liabilities, costs, charges, expenses, damages and outgoings
                of
                whatever nature (including, without limitation, Taxes, repair costs,
                registration fees and insurance premiums) suffered, incurred or paid
                by
                the Mortgagee or any Receiver in connection with the exercise of
                the
                powers referred to in or granted by this Deed or otherwise payable
                by the
                Owner in accordance with clause 11;
                and

            

    

     

    
      
        
        

      

      
      

      

        

      

    
    
      
      

    

     

    
      	 	
              (b)

            	
              interest
                on all such losses, liabilities, costs, charges, expenses, damages
                and
                outgoings from the date on which the same were suffered, incurred
                or paid
                by the Mortgagee or any Receiver until the date of receipt or recovery
                thereof (whether before or after judgment) at a rate per annum calculated
                in accordance with clause 3.4 of the Loan Agreement (as conclusively
                certified by the Mortgagee or such Receiver, as the case may
                be);

            

    

     

    “Insurances”
means
      all policies and contracts of insurance (which expression includes all entries
      of the Ship in a protection and indemnity or war risks association) which are
      from time to time during the Security Period in place or taken out or entered
      into by or for the benefit of the Owner (whether in the sole name of the Owner
      or in the joint names of the Owner and the Mortgagee or otherwise) in respect
      of
      the Ship and her Earnings or otherwise howsoever in connection with the Ship
      and
      all benefits thereof (including claims of whatsoever nature and return of
      premiums);

     

    “Loan”
means
      the principal amount advanced by the Mortgagee to the Owner pursuant to the
      Loan
      Agreement or, as the context may require, the amount thereof at any time
      outstanding;

     

    “Loan
      Agreement”
means
      the agreement dated
               ,
      2005 mentioned in recital (B) hereto;

     

    “Loss
      Payable Clauses”
means
      the provisions regulating the manner of payment of sums receivable under the
      Insurances which are to be incorporated in the relevant insurance documents,
      such Loss Payable Clauses to be in the forms set out in schedule 1 to the
      General Assignment, or in such other forms as may from time to time be agreed
      in
      writing by the Mortgagee;

     

    “Master
      Swap Agreement”
means
      the agreement made between the Mortgagee and the Owner dated 2005 mentioned
      in
      recital (C) hereto, comprising an ISDA Master Agreement and the Schedule thereto
      in the form or substantially in the form set out in schedule 9 to the Loan
      Agreement, together with any Confirmations (as defined therein) supplemental
      thereto;

     

    “Master
      Swap Agreement Liabilities”
means
      at any relevant time all liabilities actual or contingent, present or future,
      of
      the Owner to the Mortgagee under the Master Swap Agreement;

     

    “Mortgage”
means
      the statutory mortgage mentioned in recital (D);

     

    “Mortgaged
      Property”
      means:

     

    
      	 	
              (a)

            	
              the
                Ship;

            

    

     

    
      	 	
              (b)

            	
              the
                Insurances;

            

    

     

    
      	 	
              (c)

            	
              the
                Earnings; and

            

    

     

    
      
        
        

      

      
      

      

        

      

    
    
      
      

    

     

    
      	 	
              (d)

            	
              any
                Requisition Compensation;

            

    

     

    “Mortgagee” includes
      the successors in title and assignees of the Mortgagee;

     

    “Notice
      of Assignment of Insurances” means
      a
      notice of assignment in the form set out in schedule 2 to the General
      Assignment, or in such other form as may from time to time be required or agreed
      in writing by the Mortgagee;

     

    “Outstanding
      Indebtedness” means
      the
      aggregate of the Loan, and interest accrued and accruing thereon, the Expenses,
      the Master Swap Agreement Liabilities and all other sums of money from time
      to
      time owing by the Owner to the Mortgagee, whether actually or contingently,
      under the Security Documents or any of them;

     

    “Owner” includes
      the successors in title of the Owner;

     

    “Port
      of Registry” means
      the
      Port of Limassol or such other port of registry approved in writing by the
      Mortgagee which the Ship is, or is to be registered on, or at any relevant
      time
      hereafter;

     

    “Receiver” means
      any
      receiver and/or manager appointed pursuant to clause 8.2;

     

    “Requisition
      Compensation” means
      all
      sums of money or other compensation from time to time payable during the
      Security Period by reason of the Compulsory Acquisition of the
      Ship;

     

    “Security
      Documents” means
      the
      Loan Agreement, this Deed, the Mortgage, the General Assignment, the Manager’s
      Undertaking, the Master Swap Agreement and the Master Agreement Security Deed
      and any other such document as is defined in the Loan Agreement as a Security
      Document or as may have been or may hereafter be executed to guarantee and/or
      secure all or any part of the Loan, interest thereon and other moneys from
      time
      to time owing by the Owner pursuant to the Loan Agreement and/or the Master
      Swap
      Agreement (whether or not such document also secures moneys from time to time
      owing pursuant to any other document or agreement);

     

    “Security
      Period” means
      the
      period commencing on the date hereof and terminating upon discharge of the
      security created by the Security Documents by payment of all moneys payable
      thereunder;

     

    “Ship” means
      the
      vessel Maritsa registered
      at the Port of Limassol under IMO Number 9279783 and includes any share or
      interest therein and her engines, machinery, boats, tackle, outfit, equipment,
      spare gear, fuel, consumable or other stores, belongings and appurtenances
      whether on board or ashore and whether now owned or hereafter acquired and
      also
      any and all additions, improvements and replacements hereafter made in or to
      such vessel or any part thereof or in or to her equipment and appurtenances
      aforesaid;

     

    “Total
      Loss”
      means:

     

    
      	 	
              (a)

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

            

    

     

    
      
        
        

      

      
      

      

        

      

    
    
      
      

    

     

    
      	 	
              (b)

            	
              the
                Compulsory Acquisition of the Ship;
                or

            

    

     

    
      	 	
              (c)

            	
              the
                hijacking, theft, condemnation, capture, seizure, arrest, detention
                or
                confiscation of the Ship (other than where the same amounts to the
                Compulsory Acquisition of the Ship) by any Government Entity, or
                by
                persons acting or purporting to act on behalf of any Government Entity,
                unless the Ship be released and restored to the Owner from such hijacking,
                theft, condemnation, capture, seizure, arrest, detention or confiscation
                within thirty (30) days after the occurrence thereof;
                and

            

    

     

    “United
      Kingdom”
means
      Great Britain, Northern Ireland, the Channel Islands and the Isle of
      Man.

     

    
      	1.3	
              Insurance
                terms

            

    

     

    In
      clause
      6.1.1:

     

    
      	 	
              1.3.1

            	
              “excess
                risks”
                means the proportion (if any) of claims for general average, salvage
                and
                salvage charges and under the ordinary collision clause not recoverable
                in
                consequence of the value at which the Ship is assessed for the purpose
                of
                such claims exceeding her insured
                value;

            

    

     

    
      	 	
              1.3.2

            	
              “protection
                and indemnity risks”
                means the usual risks (including oil pollution and freight, demurrage
                and
                defence cover) covered by a United Kingdom protection and indemnity
                association or a protection and indemnity association which is managed
                in
                London (including, without limitation, 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 8 of the Institute Time Clauses (Hulls)
                (1/11/95) or the Institute Amended Running Down Clause (1/11/95)
                or any
                equivalent provision); and

            

    

     

    
      	 	
              1.3.3

            	
              “war
                risks”
                includes those risks covered by the standard form of English marine
                policy
                with Institute War and Strikes Clauses (Time) (1/10/83) attached
                or
                similar cover.

            

    

     

    
      	1.4	
              Construction
                of Mortgage terms

            

    

     

    In
      the
      Mortgage:

     

    
      	 	
              1.4.1

            	
              references
                to “interest” shall be construed as references to interest covenanted to
                be paid in accordance with clause 4.1.2 and any interest specified
                in
                paragraph (b) of the definition of “Expenses” in clause
                1.2;

            

    

     

    
      	 	
              1.4.2

            	
              references
                to “principal” shall be construed as references to all moneys (other than
                interest) for the time being comprised in the Outstanding
                Indebtedness;

            

    

     

    
      	 	
              1.4.3

            	
              the
                expression “all sums for the time being owing to the Mortgagee” means the
                whole of the Outstanding Indebtedness;
                and

            

    

     

    
      
        
        

      

      
      

      

        

      

    
    
      
      

    

     

    
      	 	
              1.4.4

            	
              the
                expression “Account Current” means an account or accounts which shall be
                kept by the Owner with the Mortgagee and from which the Mortgagee
                may
                (without giving notice or making any demand) debit any part of the
                Outstanding Indebtedness.

            

    

     

    
      	1.5	
              Headings

            

    

     

    Clause
      headings and the table of contents are inserted for convenience of reference
      only and shall be ignored in the interpretation of this Deed.

     

    
      	1.6	
              Construction
                of certain terms

            

    

     

    In
      this
      Deed, unless the context otherwise requires:

     

    
      	 	
              1.6.1

            	
              references
                to clauses and schedules are to be construed as references to clauses
                of,
                and schedules to, this Deed and references to this Deed include its
                schedules;

            

    

     

    
      	 	
              1.6.2

            	
              references
                to (or to any specified provision of) this Deed or any other document
                shall be construed as references to this Deed, that provision or
                that
                document as in force for the time being and as amended in accordance
                with
                the terms thereof, or, as the case may be, with the agreement of
                the
                relevant parties;

            

    

     

    
      	 	
              1.6.3

            	
              words
                importing the plural shall include the singular and vice
                versa;

            

    

     

    
      	 	
              1.6.4

            	
              references
                to a person shall be construed as references to an individual, firm,
                company, corporation, unincorporated body of persons or any Government
                Entity;

            

    

     

    
      	 	
              1.6.5

            	
              references
                to a “guarantee”
                shall include references to an indemnity or other assurance against
                financial loss including, without limitation, an obligation to purchase
                assets or services as a consequence of a default by any other person
                to
                pay any Indebtedness and “guaranteed”
                shall be construed accordingly; and

            

    

     

    
      	 	
              1.6.6

            	
              references
                to statutory provisions shall be construed as references to those
                provisions as replaced or amended or re-enacted from time to
                time.

            

    

     

    
      	1.7	
              Conflict
                with Loan Agreement

            

    

     

    This
      Deed
      shall be read together with the Loan Agreement but in case of any conflict
      between the two instruments, the provisions of the Loan Agreement shall
      prevail.

     

    
      	
              2

            	
              Representations
                and warranties

            

    

     

    
      	2.1	
              The
                Owner hereby represents and warrants to the Mortgagee
                that:

            

    

     

    
      	
            	
              2.1.1

            	
              it
                is the sole, absolute, legal and beneficial owner of the
                Ship;

            

    

     

    
      	 	
              2.1.2

            	
              the
                Ship is not subject to any charter which, if entered into after the
                date
                of this Deed, would have required the consent of the Mortgagee under
                clause 6.1.15, and there is no existing or intended agreement or
                arrangement whereby the Earnings may be

            

    

     

    
      
        
        

      

      
      

      

        

      

    
    
      
      

    

     

    shared
      with any person other than the Mortgagee as provided in the General
      Assignment;

     

    
      	 	
              2.1.3

            	
              neither
                the Mortgaged Property nor any part thereof is subject to any Encumbrance
                save as constituted by the Mortgage and this Deed and the General
                Assignment or otherwise permitted by the terms of this Deed;
                and

            

    

     

    
      	 	
              2.1.4

            	
              it
                has power and is entitled to register the Ship under the laws and
                flag of
                Cyprus.

            

    

     

    
      	
              3

            	
              Mortgage
                of the Ship

            

    

     

    By
      way of
      security for payment of the Outstanding Indebtedness the Owner as beneficial
      owner hereby mortgages and charges to and in favour of the Mortgagee all its
      rights, title and interest present and future in and to the Ship.

     

    
      	
              4

            	
              Covenant
                to pay

            

    

     

    
      
        	4.1	
                In
                  consideration of the advance by the Mortgagee to the Owner on or
                  before
                  the date hereof of the total principal sum of Twenty eight million
                  Dollars
                  ($28,000,000) or the Equivalent Amount in an Optional Currency
                  or Optional
                  Currencies (receipt of which sum the Owner hereby acknowledges)
                  in
                  accordance with the provisions of the Loan Agreement, the Owner
                  hereby
                  covenants with the Mortgagee:

              

      

    

     

    
      	
            	
              4.1.1

            	
              to
                repay the Loan by the instalments and on the dates referred to and
                otherwise in the manner and upon the terms set out in the Loan
                Agreement;

            

    

     

    
      	
            	
              4.1.2

            	
              to
                pay interest on the Loan, and on any overdue interest or other moneys
                payable under the Loan Agreement, at the rate or rates from time
                to time
                applicable thereto in the manner and upon the terms set out in the
                Loan
                Agreement;

            

    

     

    
      	 	
              4.1.3

            	
              to
                pay all other moneys payable by the Owner under the Security Documents
                or
                any of them at the times and in the manner therein specified;
                and

            

    

     

    
      	 	
              4.1.4

            	
              to
                pay and discharge to the Mortgagee the Master Swap Agreement Liabilities
                on their due date.

            

    

     

    
      	
              5

            	
              Continuing
                security and other matters

            

    

     

    
      	5.1	
              Continuing
                Security

            

    

     

    The
      security created by the Mortgage and this Deed shall:

     

    
      	 	
              5.1.1

            	
              be
                held by the Mortgagee as a continuing security for the payment of
                the
                Outstanding Indebtedness and the performance and observance of and
                compliance by the Owner with all of the covenants, terms and conditions
                contained in the Security Documents to which the Owner is or is to
                be a
                party, express or implied and the security so created shall not be
                satisfied by any intermediate payment or satisfaction of any part
                of the
                amount hereby and thereby secured (or by any settlement of accounts
                between 

            

    

     

    
      
        
        

      

      
      

      

        

      

    
    
      
      

    

     

    the
      Owner
      or any other person who may be liable to the Mortgagee in respect of the
      Outstanding Indebtedness or any part thereof and the Mortgagee);

     

    
      	 	
              5.1.2

            	
              be
                in addition to, and shall not in any way prejudice or affect, and
                may be
                enforced by the Mortgagee without prior recourse to, the security
                created
                by any other of the Security Documents or by any present or future
                Collateral Instruments, right or remedy held by or available to the
                Mortgagee or any right or remedy of the Mortgagee thereunder;
                and

            

    

     

    
      	 	
              5.1.3

            	
              not
                be in any way prejudiced or affected by the existence of any of the
                other
                Security Documents or any such Collateral Instrument, rights or remedies
                or by the same becoming wholly or in part void, voidable or unenforceable
                on any ground whatsoever or by the Mortgagee dealing with, exchanging,
                varying or failing to perfect or enforce any of the same, or giving
                time
                for payment or performance or indulgence or compounding with any
                other
                person liable.

            

    

     

    
      	5.2	
              Rights
                additional

            

    

     

    All
      the
      rights, remedies and powers vested in the Mortgagee hereunder shall be in
      addition to and not a limitation of any and every other right, power or remedy
      vested in the Mortgagee under the Loan Agreement, this Deed, the other Security
      Documents or any Collateral Instrument or at law and all the powers so vested
      in
      the Mortgagee may be exercised from time to time and as often as the Mortgagee
      may deem expedient.

     

    
      	5.3	
              No
                enquiry

            

    

     

    Neither
      the Mortgagee nor any Receiver shall be obliged to make any enquiry as to the
      nature or sufficiency of any payment received by it under the Mortgage and/or
      this Deed or to make any claim or take any action to collect any moneys hereby
      assigned or to enforce any rights or benefits hereby assigned to the Mortgagee
      or to which the Mortgagee may at any time be entitled under the Mortgage and/or
      this Deed.

     

    
      	5.4	
              Obligations
                of Owner and Mortgagee

            

    

     

    The
      Owner
      shall remain liable to perform all the obligations assumed by it in relation
      to
      the Mortgaged Property and the Mortgagee shall be under no obligation of any
      kind whatsoever in respect thereof or be under any liability whatsoever in
      the
      event of any failure by the Owner to perform its obligations in respect
      thereof.

     

    
      	5.5	
              Discharge
                of Mortgage

            

    

     

    Notwithstanding
      that this Deed is expressed to be supplemental to the Mortgage it shall continue
      in full force and effect after any discharge of the Mortgage.

     

    
      	
              6

            	
              Covenants

            

    

     

    
      	6.1	
              The
                Owner hereby covenants with the Mortgagee and undertakes throughout
                the
                Security Period:

            

    

     

    
      
        
        

      

      
      

      

        

      

    
    
      
      

    

     

    
      	 	
              6.1.1

            	
              Insurance

            

    

     

    
      	 	
              (a)

            	
              Insured
                risks, amounts and terms

            

    

     

    to
      insure
      and keep the Ship insured free of cost and expense to the Mortgagee and in
      the
      sole name of the Owner or, if so required by the Mortgagee, in the joint names
      of the Owner and the Mortgagee (but without liability on the part of the
      Mortgagee for premiums or calls):

     

    
      	 	
              (i)

            	
              against
                fire and usual marine risks (including excess risks) and war risks,
                on an
                agreed value basis, in such amounts (but not in any event less than
                whichever shall be the greater of the market value of the Ship for
                the
                time being and One hundred and ten per cent (110%) of the aggregate
                of the
                Loan and the Master Swap Agreement Liabilities) and upon such terms
                as
                shall from time to time be approved in writing by the Mortgagee;
                and

            

    

     

    
      	 	
              (ii)

            	
              against
                protection and indemnity risks (including pollution risks for the
                highest
                amount in respect of which cover is or may become available for ships
                of
                the same type, size, age and flag as the Ship and a freight, demurrage
                and
                defence cover) for the full value and tonnage of the Ship (as approved
                in
                writing by the Mortgagee) and upon such terms as shall from time
                to time
                be approved in writing by the Mortgagee;
                and

            

    

     

    
      	 	
              (iii)

            	
              in
                respect of such other matters of whatsoever nature and howsoever
                arising
                in respect of which insurance would be maintained by a prudent owner
                of
                the Ship;

            

    

     

    and
      to
      pay to the Mortgagee the cost (as conclusively certified by the Mortgagee)
      of
      any mortgagee’s interest insurance (including mortgagee’s interest insurance -
      additional perils (pollution) coverage) which the Mortgagee may from time to
      time effect in respect of the Ship upon such terms and in such amounts (not
      exceeding One hundred and ten per cent (110%) of the aggregate of the Loan
      and
      the Master Swap Agreement Liabilities) as it shall deem desirable provided
      however that such cost shall not exceed $42,000 (“Mll premia”) for the duration
      of the Security Period and shall be payable to the Mortgagee on the Drawdown
      Date or, at the option of the Owner, which option shall be declared on or before
      the Drawdown Date, at a rate of 0.02% of the amount of the Loan per annum
      payable annually to the Mortgagee on each anniversary of the Drawdown Date
      during the Security Period. In the event of a prepayment in full of the
      outstanding amount of the Loan by the Owner, the Mortgagee agrees to refund
      to
      the Owner such proportion of the Mll premia as the amount and remaining period
      of the Loan immediately prior to such prepayment bears to the original amount
      and period of the Loan on the Drawdown Date. Such amount to be calculated by
      the
      Bank and to be binding on the Owner.

     

    
      
        
        

      

      
      

      

        

      

    
    
      
      

    

     

    
      	 	
              (b)

            	
              Approved
                brokers, insurers and associations

            

    

     

    to
      effect
      the insurances aforesaid in such currency as the Mortgagee may approve and
      through the Approved Brokers and with such insurance companies and/or
      underwriters as shall from time to time be approved in writing by the Mortgagee;
      provided however that the insurances against war risks and protection and
      indemnity risks may be effected by the entry of the Ship with such war risks
      and
      protection and indemnity associations as shall from time to time be approved
      in
      writing by the Mortgagee;

     

    
      	 	
              (c)

            	
              Fleet
                liens, set-off and cancellation

            

    

     

    if
      any of
      the insurances referred to in clause 6.1.1(a) form part of a fleet cover, to
      procure that the Approved Brokers shall undertake to the Mortgagee that they
      shall neither set-off against any claims in respect of the Ship any premiums
      due
      in respect of other vessels under such fleet cover or any premiums due for
      other
      insurances, nor cancel the insurance for reason of non-payment of premiums
      for
      other vessels under such fleet cover or of premiums for such other insurances,
      and shall undertake to issue a separate policy in respect of the Ship if and
      when so requested by the Mortgagee;

     

    
      	 	
              (d)

            	
              Payment
                of premiums and calls

            

    

     

    punctually
      to pay all premiums, calls, contributions or other sums payable in respect
      of
      all such insurances and to produce all relevant receipts or other evidence
      of
      payment when so required by the Mortgagee;

     

    
      	 	
              (e)

            	
              Renewal

            

    

     

    at
      least
      fourteen (14) days before the relevant policies, contracts or entries expire,
      to
      notify the Mortgagee of the names of the brokers and/or the war risks and
      protection and indemnity associations proposed to be employed by the Owner
      or
      any other party for the purposes of the renewal of such insurances and of the
      amounts in which such insurances are proposed to be renewed and the risks to
      be
      covered and, subject to compliance with any requirements of the Mortgagee
      pursuant to this clause 6.1.1, to procure that appropriate instructions for
      the
      renewal of such insurances on the terms so specified are given to the Approved
      Brokers and/or to the approved war risks and protection and indemnity
      associations at least ten (10) days before the relevant policies, contracts
      or
      entries expire, and that the Approved Brokers and/or the approved war risks
      and
      protection and indemnity associations will at least seven (7) days before such
      expiry (or within such shorter period as the Mortgagee may from time to time
      agree) confirm in writing to the Mortgagee as and when such renewals have been
      effected in accordance with the instructions so given;

     

    
      	 	
              (f)

            	
              Guarantees

            

    

     

    
      
        
        

      

      
      

      

        

      

    
    
      
      

    

     

    to
      arrange for the execution and delivery of such guarantees or indemnities as
      may
      from time to time be required by any protection and indemnity or war risks
      association;

     

    
      	 	
              (g)

            	
              Hull
                policy documents, notices, loss payable clauses and brokers’
                undertakings

            

    

     

    to
      deposit with the Approved Brokers (or procure the deposit of) all slips, cover
      notes, policies, certificates of entry or other instruments of insurance from
      time to time issued in connection with such of the insurances referred to in
      clause 6.1.1(a) as are effected through the Approved Brokers and procure that
      the interest of the Mortgagee shall be endorsed thereon by incorporation of
      the
      relevant Loss Payable Clause and, where the Insurances have been assigned to
      the
      Mortgagee, by means of a Notice of Assignment of Insurances (signed by the
      Owner
      and by any other assured who shall have assigned its interest in the Insurances
      to the Mortgagee) and that the Mortgagee shall be furnished with pro forma
      copies thereof and a letter or letters of undertaking from the Approved Brokers
      in such form as shall from time to time be required by the
      Mortgagee;

     

    
      	 	
              (h)

            	
              Associations’
                loss payable clauses, undertakings and
                certificates

            

    

     

    to
      procure that any protection and indemnity and/or war risks associations in
      which
      the Ship is for the time being entered shall endorse the relevant Loss Payable
      Clause on the relevant certificate of entry or policy and shall furnish the
      Mortgagee with a copy of such certificate of entry or policy and a letter or
      letters of undertaking in such form as shall from time to time be required
      by
      the Mortgagee;

     

    
      	 	
              (i)

            	
              Extent
                of cover and exclusions

            

    

     

    to
      take
      all necessary action and comply with all requirements which may from time to
      time be applicable to the Insurances (including, without limitation, the making
      of all requisite declarations within any prescribed time limits and the payment
      of any additional premiums or calls) so as to ensure that the Insurances are
      not
      made subject to any exclusions or qualifications to which the Mortgagee has
      not
      given its prior written consent and are otherwise maintained on terms and
      conditions from time to time approved in writing by the Mortgagee;

     

    
      	 	
              (j)

            	
              Correspondence
                with brokers and associations

            

    

     

    to
      provide to the Mortgagee, at the time of each such communication, copies of
      all
      written communications between the Owner and the Approved Brokers and approved
      war risks and protection and indemnity associations which relate to compliance
      with requirements from time to time applicable to the Insurances including,
      without limitation, all requisite declarations and payments of additional
      premiums or calls referred to in clause 6.1.1 (i);

    
       

      
        
          
          

        

        
        

        
  

          

        

      

      
        
        

      

    
     

    
      	 	
              (k)

            	
              Independent
                report

            

    

     

    if
      so
      requested by the Mortgagee, but at the cost of the Owner, to furnish the
      Mortgagee from time to time with a detailed report signed by an independent
      firm
      of marine insurance brokers appointed by the Mortgagee dealing with the
      insurances maintained on the Ship and stating the opinion of such firm as to
      the
      adequacy thereof;

     

    
      	 	
              (l)

            	
              Collection
                of claims

            

    

     

    to
      do all
      things necessary and provide all documents, evidence and information to enable
      the Mortgagee to collect or recover any moneys which shall at any time become
      due in respect of the Insurances;

     

    
      	 	
              (m)

            	
              Employment
                of Ship

            

    

     

    not
      to
      employ the Ship or suffer the Ship to be employed otherwise than in conformity
      with the terms of the Insurances (including any warranties express or implied
      therein) without first obtaining the consent of the insurers to such employment
      and complying with such requirements as to extra premium or otherwise as the
      insurers may prescribe;

     

    
      	 	
              (n)

            	
              Application
                of recoveries

            

    

     

    to
      apply
      all sums receivable under the Insurances which are paid to the Owner in
      accordance with the Loss Payable Clauses in repairing all damage and/or in
      discharging the liability in respect of which such sums shall have been
      received;

     

    
      	 	
              (o)

            	
              Assignment
                of Insurances

            

    

     

    forthwith
      upon being requested so to do by the Mortgagee to assign to the Mortgagee (in
      such form as it may require) the Insurances and all benefits
      thereof;

     

    
      	 	
              6.1.2

            	
              Ship’s
                name and registration

            

    

     

    not
      to
      change the name of the Ship and to keep the Ship registered as a Cyprus Ship
      at
      the Port of Limassol and not do or suffer to be done anything, or omit to do
      anything the doing or omission of which could or might result in such
      registration being forfeited or imperilled or which could or might result in
      the
      Ship being required to be registered otherwise than as a Cyprus ship at the
      Port
      of Limassol and not to register the Ship or permit its registration under any
      other flag or at any other port without the prior written consent of the
      Mortgagee;

     

    
      	 	
              6.1.3

            	
              Repair

            

    

     

    
      
        
        

      

      
      

      

        

      

    
    
      
      

    

     

    to
      keep
      the Ship in a good and efficient state of repair and procure that all repairs
      to
      or replacement of any damaged, worn or lost parts or equipment are effected
      in
      such manner (both as regards workmanship and quality of materials) as not to
      diminish the value of the Ship;

     

    
      	 	
              6.1.4

            	
              Modification;
                removal of parts; equipment owned by third
                parties

            

    

     

    not
      without the prior written consent of the Mortgagee to, or suffer any other
      person to:

     

    
      	 	
              (a)

            	
              make
                any modification to the Ship in consequence of which her structure,
                type
                or performance characteristics could or might be materially altered
                or her
                value materially reduced; or

            

    

     

    
      	 	
              (b)

            	
              remove
                any material part of the Ship or any equipment the value of which
                is such
                that its removal from the Ship would materially reduce the value
                of the
                Ship without replacing the same with equivalent parts or equipment
                which
                are owned by the Owner free from Encumbrances;
                or

            

    

     

    
      	 	
              (c)

            	
              install
                on the Ship any equipment owned by a third party which cannot be
                removed
                without causing damage to the structure or fabric of the
                Ship;

            

    

     

    
      	 	
              6.1.5

            	
              Maintenance
                of class; compliance with
                regulations

            

    

     

    to
      maintain the Classification as the class of the Ship and to comply with and
      ensure that the Ship at all times complies with the provisions of the Cyprus
      Merchant Shipping Laws and all regulations and requirements (statutory or
      otherwise) from time to time applicable to vessels registered at the Port of
      Limassol or otherwise applicable to the Ship;

     

    
      	 	
              6.1.6

            	
              Surveys

            

    

     

    to
      submit
      the Ship to continuous surveys and such periodical or other surveys as may
      be
      required for classification purposes and to supply to the Mortgagee copies
      of
      all survey reports issued in respect thereof;

     

    
      	 	
              6.1.7

            	
              Inspection

            

    

     

    to
      ensure
      that the Mortgagee, by surveyors or other persons appointed by it for such
      purpose, may board the Ship at all reasonable times for the purpose of
      inspecting her and to afford all proper facilities for such inspections and
      for
      this purpose to give the Mortgagee reasonable advance notice of any intended
      drydocking of the Ship (whether for the purpose of classification, survey or
      otherwise);

     

    
      	 	
              6.1.8

            	
              Prevention
                of and release from arrest

            

    

     

    promptly
      to pay and discharge all debts, damages, liabilities and outgoings whatsoever
      which have given or may give rise to maritime, statutory or possessory

     

    
      
        
        

      

      
      

      

        

      

    
    
      
      

    

     

    liens
      on,
      or claims enforceable against, the Ship, her Earnings or Insurances or any
      part
      thereof and, in the event of a writ or libel being filed against the Ship,
      her
      Earnings or Insurances or any part thereof, or of any of the same being
      arrested, attached or levied upon pursuant to legal process or purported legal
      process or in the event of detention of the Ship in exercise or purported
      exercise of any such lien or claim as aforesaid, to procure the release of
      the
      Ship, her Earnings and Insurances from such arrest, detention attachment or
      levy
      or, as the case may be, the discharge of the writ or libel forthwith upon
      receiving notice thereof by providing bail or procuring the provision of
      security or otherwise as the circumstances may require;

     

    
      	 	
              6.1.9

            	
              Employment

            

    

     

    not
      to
      employ the Ship or permit her employment in any manner, trade or business which
      is forbidden by international law, or which is unlawful or illicit under the
      law
      of any relevant jurisdiction, 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, confiscation, penalty or sanctions and,
      in
      the event of hostilities in any part of the world (whether war be declared
      or
      not), not to employ the Ship or permit her employment in carrying any contraband
      goods, or enter or trade to or to continue to trade in any zone which has been
      declared a war zone by any Government Entity or by the Ship’s war risks insurers
      unless the prior written consent of the Mortgagee is obtained and such special
      insurance cover as the Mortgagee may require shall have been effected by the
      Owner and at its expense;

     

    
      	 	
              6.1.10

            	
              Information

            

    

     

    promptly
      to furnish the Mortgagee with all such information as it may from time to time
      require regarding the Ship, her employment, position and engagements,
      particulars of all towages and salvages, and copies of all charters and other
      contracts for her employment, or otherwise howsoever concerning
      her;

     

    
      	 	
              6.1.11

            	
              Notification
                of certain events

            

    

     

    to
      notify
      the Mortgagee forthwith by fax thereafter confirmed by letter of:

     

    
      	 	
              (a)

            	
              any
                damage to the Ship requiring repairs the cost of which will or might
                exceed the Casualty Amount;

            

    

     

    
      	 	
              (b)

            	
              any
                occurrence in consequence of which the Ship has or may become a Total
                Loss;

            

    

     

    
      	 	
              (c)

            	
              any
                requisition of the Ship for hire;

            

    

     

    
      	 	
              (d)

            	
              any
                requirement or recommendation made by any insurer or the Classification
                Society or by any competent authority which is not, or cannot be,
                complied
                with in accordance with its terms;

            

    

     

    
      
        
        

      

      
      

      

        

      

    
    
      
      

    

     

    
      	 	
              (e)

            	
              any
                arrest or detention of the Ship or any exercise or purported exercise
                of a
                lien or other claim on the Ship or the Earnings or Insurances or
                any part
                thereof;

            

    

     

    
      	 	
              (f)

            	
              any
                petition or notice of meeting to consider any resolution to wind
                up the
                Owner (or any event analogous thereto under the laws of the place
                of its
                incorporation);

            

    

     

    
      	 	
              (g)

            	
              the
                occurrence of any Default; or

            

    

     

    
      	 	
              (h)

            	
              the
                occurrence of any Environmental Claim against the Owner or the Ship
                or any
                incident, event or circumstances which may give rise to any such
                Environmental Claim;

            

    

     

    
      	 	
              6.1.12

            	
              Payment
                of outgoings and evidence of
                payments

            

    

     

    promptly
      to pay all tolls, dues and other outgoings whatsoever in respect of the Ship
      and
      her Earnings and Insurances and to keep proper books of account in respect
      of
      the Ship and her Earnings and, as and when the Mortgagee may so require, to
      make
      such books available for inspection on behalf of the Mortgagee, and to furnish
      satisfactory evidence that the wages and allotments and the insurance and
      pension contributions of the Master and crew are being promptly and regularly
      paid and that all deductions from crew’s wages in respect of any applicable tax
      liability are being properly accounted for and that the Master has no claim
      for
      disbursements other than those incurred by him in the ordinary course of trading
      on the voyage then in progress;

     

    
      	 	
              6.1.13

            	
              Encumbrances

            

    

     

    not
      without the prior written consent of the Mortgagee (and then only subject to
      such conditions as the Mortgagee may impose) to create or purport or agree
      to
      create or permit to arise or subsist any Encumbrance (other than Permitted
      Liens) over or in respect of the Ship, any share or interest therein or in
      any
      other part of the Mortgaged Property otherwise than to or in favour of the
      Mortgagee;

     

    
      	 	
              6.1.14

            	
              Sale
                or other disposal

            

    

     

    not
      without the prior written consent of the Mortgagee (and then only subject to
      such conditions as the Mortgagee may impose) to sell, agree to sell, transfer,
      abandon or otherwise dispose of the Ship or any share or interest
      therein;

     

    
      	 	
              6.1.15

            	
              Chartering

            

    

     

    not
      without the prior written consent of the Mortgagee (which the Mortgagee shall
      have full liberty to withhold) and, if such consent is given, only subject
      to
      such conditions as the Mortgagee may impose, to let the Ship:

     

    
      	 	
              (a)

            	
              on
                demise charter for any period;

            

    

     

    
      
        
        

      

      
      

      

        

      

    
    
      
      

    

     

    
      	 	
              (b)

            	
              by
                any time or consecutive voyage charter for a term which exceeds or
                which
                by virtue of any optional extensions therein contained may exceed
                thirteen
                (13) months’ duration;

            

    

     

    
      	 	
              (c)

            	
              on
                terms whereby more than two (2) months’ hire (or the equivalent) is
                payable in advance;

            

    

     

    
      	 	
              (d)

            	
              below
                the market rate prevailing at the time when the Ship is fixed or
                other
                than on arms’ length terms;

            

    

     

    
      	 	
              6.1.16

            	
              Sharing
                of Earnings

            

    

     

    not
      without the prior written consent of the Mortgagee (and then only subject to
      such conditions as the Mortgagee may impose) to enter into any agreement or
      arrangement whereby the Earnings may be shared with any other
      person;

     

    
      	 	
              6.1.17

            	
              Payment
                of Earnings

            

    

     

    to
      procure that the Earnings are paid to the Mortgagee at all times if and when
      the
      same shall be or shall have become so payable in accordance with the Security
      Documents after the Mortgagee shall have directed pursuant to clause 2.1 of
      the
      General Assignment that the same shall be no longer receivable by the Owner
      and
      that any Earnings which are so payable and which are in the hands of the Owner’s
      brokers or agents are duly accounted for and paid over to the Mortgagee
      forthwith on demand;

     

    
      	 	
              6.1.18

            	
              Repairers’
                liens

            

    

     

    not
      without the prior written consent of the Mortgagee to put the Ship into the
      possession of any person for the purpose of work being done upon her in an
      amount exceeding or likely to exceed the Casualty Amount unless such person
      shall first have given to the Mortgagee in terms satisfactory to it, a written
      undertaking not to exercise any lien on the Ship or the Earnings for the cost
      of
      such work or otherwise;

     

    
      	 	
              6.1.19

            	
              Manager

            

    

     

    not
      without the prior written consent of the Mortgagee to appoint a manager of
      the
      Ship other than the Manager, or terminate or amend the terms of the Management
      Agreement;

     

    
      	 	
              6.1.20

            	
              Registration
                of Mortgage

            

    

     

    to
      cause
      the Mortgage to be duly registered and otherwise to comply with and satisfy
      all
      the requirements and formalities established by the laws of Cyprus and to
      perfect the Mortgage and this Deed as a valid and enforceable first priority
      statutory mortgage upon the Ship and to furnish to the Mortgagee from time
      to
      time such proof as the Mortgagee may reasonably request in order to satisfy
      themselves that the Owner has complied with the provisions of this clause
      6.1.20;

     

    
      
        
        

      

      
      

      

        

      

    
    
      
      

    

     

    
      	 	
              6.1.21

            	
              Notice
                of Mortgage

            

    

     

    to
      place
      and at all times and places to retain a properly certified copy of the Mortgage
      and this Deed (which shall form part of the Ship’s documents) on board the Ship
      with her papers and cause such certified copy of the Mortgage and this Deed
      to
      be exhibited to any and all persons having business with the Ship which might
      create or imply any commitment or encumbrance whatsoever on or in respect of
      the
      Ship (other than a lien for crew’s wages and salvage) and to any representative
      of the Mortgagee and to place and keep prominently displayed in the navigation
      room and in the Master’s cabin of the Ship a framed printed notice in plain type
      reading as follows:

     

    “NOTICE
      OF MORTGAGE”

     

    This
      Ship
      is subject to a first priority mortgage and deed of covenant in favour of The
      Royal Bank of Scotland plc of The Shipping Business Centre, 5-10 Great Tower
      Street, London EC3P 3HX, England. Under the said mortgage and deed of covenant,
      neither the Owner nor any charterer nor the Master of this Ship has any right,
      power or authority to create, incur or permit to be imposed upon this Ship
      any
      commitments or encumbrances whatsoever other than for crew’s wages and salvage”

     

    and
      in
      terms of the said notice it is hereby agreed that save and subject as otherwise
      herein provided, neither the Owner nor any charterer nor the Master of the
      Ship
      nor any other person has any right, power or authority to create, incur or
      permit to be imposed upon the Ship any lien whatsoever other than for crew’s
      wages and salvage;

     

    
      	 	
              6.1.22

            	
              Conveyance
                on default

            

    

     

    where
      the
      Ship is (or is to be) sold in exercise of any power contained In this Deed
      or
      otherwise conferred on the Mortgagee, to execute, forthwith upon request by
      the
      Mortgagee, such form of conveyance of the Ship as the Mortgagee may
      require;

     

    
      	 	
              6.1.23

            	
              Anti-drug
                abuse

            

    

     

    without
      prejudice to clause 6.1.9, to take all necessary and proper precautions to
      prevent any infringements of the Anti-Drug Abuse Act of 1986 of the United
      States of America or any similar legislation applicable to the Ship in any
      jurisdiction in or to which the Ship shall be employed or located or trade
      or
      which may otherwise be applicable to the Ship and/or the Owner and, if the
      Mortgagee shall so require, to enter into a “Carrier Initiative Agreement” with
      the United States Customs Service and to procure that the same agreement (or
      any
      similar agreement hereafter introduced by any Government Entity of the United
      States of America) is maintained in full force and effect and performed by
      the
      Owner;

     

    
      	 	
              6.1.24

            	
              Compliance
                with Environmental Laws

            

    

     

    to
      comply
      with, and procure that all Environmental Affiliates of the Owner comply with,
      all Environmental Laws including, without limitation, requirements relating
      to

    
       

      
        
          
          

        

        
        

        
  

          

        

      

      
        
        

      

    
     

    manning
      and establishment of financial responsibility and to obtain and comply with,
      and
      procure that all Environmental Affiliates of the Owner obtain and comply with,
      all Environmental Approvals.

     

    
      	
              7

            	
              Powers
                of Mortgagee to protect security and remedy
                defaults

            

    

     

    
      	7.1	
              Protective
                action

            

    

     

    The
      Mortgagee shall, without prejudice to its other rights, powers and remedies
      under any of the Security Documents, be entitled (but not bound) at any time,
      and as often as may be necessary, to take any such action as it may in its
      discretion think fit for the purpose of protecting or maintaining the security
      created by this Deed and the other Security Documents, and all Expenses
      attributable thereto shall be payable by the Owner on demand.

     

    
      	7.2	
              Remedy
                of defaults

            

    

     

    Without
      prejudice to the generality of the provisions of clause 7.1:

     

    
      	 	
              7.2.1

            	
              if
                the Owner fails to comply with any of the provisions of clause 6.1.1
                the
                Mortgagee shall be entitled (but not bound) to effect and thereafter
                to
                maintain all such insurances upon the Ship as in its discretion it
                may
                think fit in order to procure the compliance with such provisions
                or
                alternatively, to require the Ship (at the Owner’s risk) to remain in, or
                to proceed to and remain in a port designated by the Mortgagee until
                such
                provisions are fully complied with;

            

    

     

    
      	 	
              7.2.2

            	
              if
                the Owner fails to comply with any of the provisions of clauses 6.1.3,
                6.1.5 or 6.1.6, the Mortgagee shall be entitled (but not bound) to
                arrange
                for the carrying out of such repairs, changes or surveys as it may
                deem
                expedient or necessary in order to procure the compliance with such
                provisions; and

            

    

     

    
      	 	
              7.2.3

            	
              if
                the Owner fails to comply with any of the provisions of clause 6.1.8
                the
                Mortgagee shall be entitled (but not bound) to pay and discharge
                all such
                debts, damages, liabilities and outgoings as are therein mentioned
                and/or
                to take any such measures as it may deem expedient or necessary for
                the
                purpose of securing the release of the Ship in order to procure the
                compliance with such provisions

            

    

     

    and
      the
      Expenses attributable to the exercise by the Mortgagee of any such powers shall
      be payable by the Owner to the Mortgagee on demand.

     

    
      	
              8

            	
              Powers
                of Mortgagee on Event of
                Default

            

    

     

    
      	8.1	
              Powers

            

    

     

    Upon
      the
      happening of any Event of Default, the Mortgagee shall become forthwith entitled
      by notice given to the Owner in accordance with the provisions of clause 11.2
      of
      the Loan Agreement to declare the Outstanding Indebtedness to be due and payable
      immediately or in accordance with such notice and to terminate the Master Swap
      

    
       

      
        
          
          

        

        
        

        
  

          

        

      

      
        
        

      

    
     

    Agreement,
      whereupon the Outstanding Indebtedness shall become so due and payable and
      (whether or not the Mortgagee shall have given any such notice) the Mortgagee
      shall become forthwith entitled, as and when it may see fit, to put into force
      and exercise in relation to the Mortgaged Property or any part thereof all
      or
      any of the rights, powers and remedies possessed by it as mortgagee of the
      Mortgaged Property (whether at law, by virtue of the Mortgage and this Deed
      or
      otherwise) and in particular (without limiting the generality of the
      foregoing):

     

    
      	 	
              8.1.1

            	
              to
                take possession of the Ship;

            

    

     

    
      	 	
              8.1.2

            	
              to
                require that all policies, contracts, certificates of entry and other
                records relating to the Insurances (including details of and
                correspondence concerning outstanding claims) be delivered forthwith
                to
                such adjusters and/or brokers and/or other insurers as the Mortgagee
                may
                nominate;

            

    

     

    
      	 	
              8.1.3

            	
              to
                collect, recover, compromise and give a good discharge for, all claims
                then outstanding or thereafter arising under the Insurances or any
                of them
                or in respect of any other part of the Mortgaged Property, 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, in the case of the Insurances, to permit
                the
                brokers through whom collection or recovery is effected to charge
                the
                usual brokerage therefor;

            

    

     

    
      	 	
              8.1.4

            	
              to
                discharge, compound, release or compromise claims in respect of the
                Ship
                or any other part of the Mortgaged Property which have given or may
                give
                rise to any charge or lien or other claim on the Ship or any other
                part of
                the Mortgaged Property or which are or may be enforceable by proceedings
                against the Ship or any other part of the Mortgaged
                Property;

            

    

     

    
      	 	
              8.1.5

            	
              to
                sell the Ship or any share or interest therein with or without prior
                notice to the Owner, and with or without the benefit of any charterparty,
                and free from any claim by the Owner (whether in admiralty, in equity,
                at
                law or by statute) by public auction or private contract, at such
                place
                and upon such terms as the Mortgagee in its absolute discretion may
                determine, with power to postpone any such sale, or otherwise to
                sell the
                Ship pursuant to the Mortgagee’s statutory power of sale under section 35
                of the Merchant Shipping (Registration of Ships Sales and Mortgages)
                Law
                of 1963 (as amended) and without being answerable for any loss occasioned
                by such sale or resulting from postponement thereof and with power,
                where
                the Mortgagee purchases the Ship, to make payment of the sale price
                by
                making an equivalent reduction in the amount of the Outstanding
                Indebtedness in the manner referred to in clause
                9.1;

            

    

     

    
      	 	
              8.1.6

            	
              to
                manage, insure, maintain and repair the Ship, and to employ, sail
                or lay
                up the Ship in such manner and for such period as the Mortgagee,
                in its
                absolute discretion, deems expedient accounting only for net profits
                arising from any such employment;
                and

            

    

     

    
      
        
        

      

      
      

      

        

      

    
    
      
      

    

     

    
      	 	
              8.1.7

            	
              to
                recover from the Owner on demand all Expenses incurred or paid by
                the
                Mortgagee in connection with the exercise of the powers (or any of
                them)
                referred to in this clause 8.1.

            

    

     

    
      
        	8.2	
                Receiver

              

      

    

     

    
      	 	
              8.2.1

            	
              Appointment

            

    

     

    At
      any
      time after the Outstanding Indebtedness shall have become due and payable in
      accordance with a notice given by the Mortgagee to the Owner pursuant to clause
      11.2 of the Loan Agreement, the Mortgagee shall be entitled (but not bound)
      by
      writing executed as a deed or under the hand of any Director or officer of
      the
      Mortgagee to appoint any person or persons to be a receiver and/or manager
      of
      the Mortgaged Property or any part thereof (with power to authorise any joint
      receiver and/or manager to exercise any power independently of any other joint
      receiver and/or manager) and may from time to time fix his remuneration, and
      may
      remove any receiver and/or manager so appointed and appoint another in his
      place. Any receiver and/or manager so appointed shall be the agent of the Owner
      and the Owner shall be solely responsible for his acts or defaults and for
      his
      remuneration, and such receiver and/or manager so appointed shall have all
      powers conferred by the United Kingdom Law of Property Act 1925 without the
      restrictions contained in sections 93 and 103 of that Act and, in addition,
      power on behalf of and at the cost of the Owner (notwithstanding any liquidation
      of the Owner) to do or omit to do anything which the Owner could do or omit
      to
      do in relation to the Mortgaged Property or any part thereof and in particular
      (but without prejudice to the generality of the foregoing) any such receiver
      and/or manager may exercise all the powers and discretions conferred on the
      Mortgagee by the Mortgage and this Deed.

     

    
      	 	
              8.2.2

            	
              Remuneration

            

    

     

    Any
      Receiver shall be entitled to remuneration appropriate to the work and
      responsibilities involved, upon the basis of charging from time to time adopted
      by the Receiver in accordance with the current practice of his firm, without
      being limited to the maximum rate specified in section 109(6) of the United
      Kingdom Law of Property Act 1925.

     

    
      	 	
              8.2.3

            	
              Liability
                of mortgagee in possession

            

    

     

    Neither
      the Mortgagee nor any Receiver shall be liable as mortgagee in possession in
      respect of all or any of the Mortgaged Property to account or be liable for
      any
      loss upon realisation or for any neglect or default of any nature whatsoever
      in
      connection therewith for which a mortgagee in possession may be liable as
      such.

     

    
      	8.3	
              Dealings
                with Mortgagee or Receiver

            

    

     

    Upon
      any
      sale of the Ship or any share or interest therein by the Mortgagee pursuant
      to
      clause 8.1.5 or pursuant to clause 12.1, or by any Receiver, the purchaser
      shall
      not be bound to see or enquire whether the Mortgagee’s power of sale has arisen
      in the manner 

    
       

      
        
          
          

        

        
        

        
  

          

        

      

      
        
        

      

    
     

    provided
      in this Deed and the sale shall be deemed to be within the power of the
      Mortgagee (or the Receiver, as the case may be) and the receipt of the Mortgagee
      (or the Receiver, as the case may be) for the purchase money shall effectively
      discharge the purchaser who shall not be concerned with the manner of
      application of the proceeds of sale or be in any way answerable therefor and
      the
      sale shall operate to divest the Owner of all rights, title and interest of
      any
      nature whatsoever in the Ship and to bar any such interest of the Owner and
      all
      persons claiming through or under the Owner.

     

    
      	
              9

            	
              Application
                of moneys

            

    

     

    
      	9.1	
              Application

            

    

     

    All
      moneys received by the Mortgagee or any Receiver in respect of sale of the
      Ship
      or any share or interest therein or in respect of the employment of the Ship
      pursuant to the provisions of clause 8.1.6 shall be held by it upon trust in
      the
      first place to pay or make good the Expenses and the balance shall be applied
      in
      the manner specified in clause 14.1 of the Loan Agreement.

     

    
      	9.2	
              Shortfalls

            

    

     

    In
      the
      event that the balance referred to in clause 9.1 is insufficient to pay in
      full
      the whole of the Outstanding Indebtedness, the Mortgagee or the Receiver, as
      the
      case may be, shall be entitled to collect the shortfall from the Owner or any
      other person liable for the time being therefor.

     

    
      	
              10

            	
              Remedies
                cumulative and other
                provisions

            

    

     

    
      	10.1	
              No
                implied waivers; remedies
                cumulative

            

    

     

    No
      failure or delay on the part of the Mortgagee to exercise any right, power
      or
      remedy vested in it under any of the Security Documents shall operate as a
      waiver thereof, nor shall any single or partial exercise by the Mortgagee of
      any
      right, power or remedy nor the discontinuance, abandonment or adverse
      determination of any proceedings taken by the Mortgagee to enforce any right,
      power or remedy preclude any other or further exercise thereof or proceedings
      to
      enforce the same or the exercise of any other right, power or remedy nor shall
      the giving by the Mortgagee of any consent to any act which by the terms of
      this
      Deed requires such consent prejudice the right of the Mortgagee to withhold
      or
      give consent to the doing of any other similar act. The remedies provided in
      the
      Security Documents are cumulative and are not exclusive of any remedies provided
      by law.

     

    
      	10.2	
              Delegation

            

    

     

    The
      Mortgagee 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 it by the Mortgage
      and this Deed (including the power vested in it by virtue of clause 12) or
      any
      of the other Security Documents in such manner, upon such terms, and to such
      persons as the Mortgagee in its absolute discretion may think fit.

    
       

      
        
          
          

        

        
        

        
  

          

        

      

      
        
        

      

    
     

    
      	10.3	
              Incidental
                powers

            

    

     

    The
      Mortgagee shall be entitled to do all acts and things incidental or conducive
      to
      the exercise of any of the rights, powers or remedies possessed by it as
      mortgagee of the Ship (whether at law, under the Mortgage and/or this Deed
      or
      otherwise) and in particular (but without prejudice to the generality of the
      foregoing), upon becoming entitled to exercise any of its powers under clause
      8.1, the Mortgagee shall be entitled to discharge any cargo on board the Ship
      (whether the same shall belong to the Owner or any other person) and to enter
      into such other arrangements in respect of the Ship, her Insurances, management,
      maintenance, repair, classification and employment in all respects as if the
      Mortgagee was the owner of the Ship, but without being responsible for any
      loss
      incurred as a result of the Mortgagee doing or omitting to do any such acts
      or
      things as aforesaid.

     

    
      	
              11

            	
              Costs
                and indemnity

            

    

     

    
      	11.1	
              Costs

            

    

     

    The
      Owner
      shall pay to the Mortgagee on demand on a full indemnity basis all expenses
      or
      liabilities of whatsoever nature (including legal fees, fees of insurance
      advisers, printing, out-of-pocket expenses, stamp duties, registration fees
      and
      other duties or charges) together with any value added tax or similar tax
      payable in respect thereof, incurred by the Mortgagee in connection with the
      enforcement of, or preservation of any rights under, the Mortgage, this Deed
      or
      the Master Swap Agreement or otherwise in respect of the Outstanding
      Indebtedness and the security therefor or in connection with the preparation,
      completion, execution or registration of the Mortgage, this Deed or the Master
      Swap Agreement.

     

    
      	11.2	
              Mortgagee’s
                and Receiver’s indemnity

            

    

     

    The
      Owner
      hereby agrees and undertakes to indemnify the Mortgagee and any Receiver against
      all losses, actions, claims, expenses, demands, obligations and liabilities
      whatever and whenever arising which may now or hereafter be incurred by the
      Mortgagee or any such Receiver, or by any manager, agent, officer or employee
      for whose liability, act or omission it or he may be answerable, in respect
      of,
      in relation to, or in connection with anything done or omitted in the exercise
      or purported exercise of the powers contained in the Mortgage, this Deed or
      the
      Master Swap Agreement or otherwise in connection therewith and herewith or
      with
      any part of the Mortgaged Property or otherwise howsoever in relation to, or
      in
      connection with, any of the matters dealt with in the Mortgage, this Deed or
      the
      Master Swap Agreement.

     

    
      	
              12

            	
              Attorney

            

    

     

    
      	12.1	
              Power

            

    

     

    By
      way of
      security, the Owner hereby irrevocably appoints the Mortgagee and any Receiver,
      jointly and also severally, to be its attorney generally for and in the name
      and
      on behalf of the Owner, and as the act and deed or otherwise of the Owner to
      execute, 

     

    
      
        
        

      

      
      

      

        

      

    
    
      
      

    

     

    seal
      and
      deliver and otherwise perfect and do all such deeds, assurances, agreements,
      instruments, acts and things which may be required for the full exercise of
      all
      or any of the rights, powers or remedies conferred by the Mortgage, this Deed,
      the Loan Agreement or any of the other Security Documents, or which may be
      deemed proper in or in connection with all or any of the purposes aforesaid
      (including, without prejudice to the generality of the foregoing, the execution
      and delivery of a bill of sale of the Ship). The power hereby conferred shall
      be
      a general power of attorney under the United Kingdom Powers of Attorney Act
      1971, and the Owner ratifies and confirms, and agrees to ratify and confirm,
      any
      deed, assurance, agreement, instrument, act or thing which the Mortgagee or
      any
      Receiver may execute or do pursuant thereto. Provided always that such power
      shall not be exercisable by or on behalf of the Mortgagee or any Receiver until
      the happening of an Event of Default.

     

    
      	12.2	
              Exercise
                of power

            

    

     

    The
      exercise of such power by or on behalf of the Mortgagee or any Receiver shall
      not put any person dealing with the Mortgagee or the Receiver upon any enquiry
      as to whether any Event of Default has happened, nor shall such person be in
      any
      way affected by notice that no such Event of Default has happened, and the
      exercise by the Mortgagee or the Receiver of such power shall be conclusive
      evidence of the Mortgagee’s or such Receiver’s right to exercise the
      same.

     

    
      	12.3	
              Filings

            

    

     

    The
      Owner
      hereby irrevocably appoints the Mortgagee and any Receiver jointly and also
      severally to be its attorney in its name and on its behalf and as its act and
      deed or otherwise of it, to agree the form of and to execute and do all deeds,
      instruments, acts and things in order to file, record, register or enrol the
      Mortgage and/or this Deed in any court, public office or elsewhere which the
      Mortgagee or the Receiver may in its or his discretion consider necessary or
      advisable, now or in the future, to ensure the legality, validity,
      enforceability or admissibility in evidence thereof and any other assurance,
      document, act or thing required to be executed by the Owner pursuant to clause
      13.

     

    
      	
              13

            	
              Further
                assurance

            

    

     

    The
      Owner
      hereby further undertakes at its own expense from time to time to execute,
      sign,
      perfect, do and (if required) register every such further assurance, document,
      act or thing as in the opinion of the Mortgagee may be necessary or desirable
      for the purpose of more effectually mortgaging and charging the Mortgaged
      Property or perfecting the security constituted or intended to be constituted
      by
      the Mortgage and this Deed.

     

    
      	
              14

            	
              Notices

            

    

     

    The
      provisions of clause 17.1 of the Loan Agreement shall apply mutatis mutandis
      in
      respect of any certificate, notice, demand or other communication given or
      made
      under this Deed.

     

    
      
        
        

      

      
      

      

        

      

    
    
      
      

    

     

    
      	
              15

            	
              Counterparts

            

    

     

    This
      Deed
      may be entered into in the form of two counterparts, each executed by one of
      the
      parties, and, provided both the parties shall so execute this Deed, each of
      the
      executed counterparts, when duly exchanged or delivered, shall be deemed to
      be
      an original but, taken together, they shall constitute one
      instrument.

     

    
      	
              16

            	
              Severability
                of provisions

            

    

     

    Each
      of
      the provisions in this Deed are severable and distinct from the others, and
      if
      at any time one or more such provisions is or becomes invalid, illegal or
      enforceable, the validity, legality and enforceability of the remaining
      provisions of this Deed shall not in any way be affected or impaired
      thereby.

     

    
      	
              17

            	
              Law,
                jurisdiction and language

            

    

     

    
      	17.1	
              Law

            

    

     

    This
      Deed
      is governed by, and shall be construed in accordance with, the laws of Cyprus.
      

     

    
      	17.2	
              Submission
                to jurisdiction

            

    

     

    For
      the
      benefit of the Mortgagee, the parties hereto irrevocably agree that any legal
      action or proceedings in connection with the Mortgage and/or this Deed may
      be
      brought in the English courts, or in the Courts of Cyprus or in the courts
      of
      any other country chosen by the Mortgagee, each of which shall have jurisdiction
      to settle any disputes arising out of or in connection with the Mortgage and/or
      this Deed. The Owner irrevocably and unconditionally submits to the jurisdiction
      of the English courts, the Courts of Cyprus and the courts of any country chosen
      by the Mortgagee and irrevocably designates, appoints and empowers Cheeswrights
      at present of 10 Philpot Lane, London EC3M 8BR, England to receive, for it
      and
      on its behalf, service of process issued out of the English courts in any legal
      action or proceedings arising out of or in connection with the Mortgage and/or
      this Deed. The submission to such jurisdiction shall not (and shall not be
      construed so as to) limit the right of the Mortgagee to take proceedings against
      the Owner in any other court of competent jurisdiction nor shall the taking
      of
      proceedings in any one or more jurisdictions preclude the taking of proceedings
      in any other jurisdiction, whether concurrently or not. The parties further
      agree that only the courts of England and not those of any other State shall
      have jurisdiction to determine any claim which the Owner may have against the
      Mortgagee arising out of or in connection with the Mortgage and/or this
      Deed.

     

    IN
      WITNESS
      whereof
      this Deed has been duly executed as a deed the day and year first above
      written 

    
    

     

    
      
        
        

      

      
      

      

        

      

    
    
      
      

    

     

    
      
        	
                SIGNED,
                  SEALED and DELIVERED as a DEED

              	
                )

              	 
	
                by

              	
                )

              	 
	
                for
                  and on behalf of 

              	
                )

              	 
	 	
                )

              	 
	
                MARATHASSA
                  SHIPPING CORPORATION

              	
                )

              	 
	
                pursuant
                  to a power of attorney

              	
                )

              	 
	
                dated
                                 
                  2005

              	
                )

              	_____________________	
              
	
                in
                  the presence of:

              	
                )

              	
                Attorney-in-Fact

              
	 	 	 
	_____________________	
              	 	 
	
                Witness

              	 	 
	
                Name:

              	 	 
	
                Address:

              	 	 
	
                Occupation:

              	 	 
	 	 	 
	
                SIGNED,
                  SEALED and DELIVERED

              	
                )

              	 
	
                as
                  a DEED

              	
                )

              	 
	
                by

              	
                )

              	 
	
                for
                  and on behalf of 

              	
                )

              	 
	
                THE
                  ROYAL BANK OF SCOTLAND plc

              	
                )

              	_____________________
	
                pursuant
                  to a power of attorney

              	
                )

              	
                Attorney-in-Fact

              
	
                dated
                  

              	
                )

              	 
	
                in
                  the presence of:

              	
                )

              	 

      

    

     

    
      
        	 
	
                Witness

              
	
                Name:

              
	
                Address:

              
	
                Occupation:

              

      

    

     

    
      
        
        

      

      
      

      

        

      

    
    
      
      

    

     

    Schedule
      7

     

    Form
      of General Assignment

    
       

      
        
          
          

        

        
        

        
  

          

        

      

      
        
        

      

    
     

    Private
      & Confidential

     

    Dated                
      2005

     

    
      
        	 	
                MARATHASSA SHIPPING CORPORATION

              	 	(1)
	 	 	 	 
	 	
                and

              	 	 
	 	 	 	 
	 	
                THE
                  ROYAL BANK OF SCOTLAND plc

              	 	(2)

      

    

     

    
      
        

      

    

    GENERAL
      ASSIGNMENT

     

    relating
      to m.v. Maritsa 

    
      

    

     

    

     

    
      
        
        

      

      
      

      

        

      

    
    
      
      

    

     

    Contents

     

    
      	
              Clause

            	
              Page

            
	 	 	 
	
              1

            	
              Definitions

            	
              1

            
	 	 	 
	
              2

            	
              Assignment
                and application of funds

            	
              5

            
	 	 	 
	
              3

            	
              Continuing
                security and other matters

            	
              7

            
	 	 	 
	
              4

            	
              Powers
                of Mortgagee to protect security and remedy defaults

            	
              9

            
	 	 	 
	
              5

            	
              Powers
                of Mortgagee on Event of Default

            	
              9

            
	 	 	 
	
              6

            	
              Attorney

            	
              10

            
	 	 	 
	
              7

            	
              Further
                assurance

            	
              11

            
	 	 	 
	
              8

            	
              Costs
                and indemnities 

            	
              11

            
	 	 	 
	
              9

            	
              Remedies
                cumulative and other provisions

            	
              11

            
	 	 	 
	
              10

            	
              Notices

            	
              12

            
	 	 	 
	
              11

            	
              Counterparts

            	
              12

            
	 	 	 
	
              12

            	
              Law
                and jurisdiction 

            	
              12

            
	 	 	 
	Schedule
              1 Forms of Loss Payable Clauses	
              14

            
	 	 	 
	Schedule
              2 Form of Notice of Assignment of Insurances	
              15

            

    

     

    
      
        
        

      

      
      

      

        

      

    
    
      
      

    

     

    THIS
      DEED OF ASSIGNMENT
      is dated
               
2005 and made BETWEEN:

     

    
      	
              (1)

            	
              MARATHASSA
                SHIPPING CORPORATION
                a
                company incorporated in Liberia whose registered office is at 80
                Broad
                Street, Monrovia, Republic of Liberia (the “Owner”);
                and

            

    

     

    
      	
              (2)

            	
              THE
                ROYAL BANK OF SCOTLAND plc
                a
                company incorporated in Scotland whose registered office is at 36
                St.
                Andrew Square, Edinburgh EH2 2YB, Scotland, acting for the purposes
                of
                this Deed through its branch at The Shipping Business Centre, 5-10
                Great
                Tower Street, London, EC3P 3HX, England (the “Mortgagee”).

            

    

     

    WHEREAS:

     

    
      	
              (A)

            	
              by
                an Agreement (the “Loan
                Agreement”)
                dated
                               
                2005 and made between the Owner (1) (therein referred to as the
                “Borrower”)
                and the Mortgagee (2) (therein referred to as the “Bank”)
                the Mortgagee agreed (inter alia) to advance by way of a multicurrency
                loan to the Owner, upon the terms and conditions therein contained
                the sum
                of up to Twenty eight million Dollars ($28,000,000) or the Equivalent
                Amount in an Optional Currency or Optional Currencies (the “Loan”);

            

    

     

    
      	
              (B)

            	
              by
                a Master Swap Agreement dated
                               
                2005 and made between (1) the Owner and (2) the Mortgagee, the Mortgagee
                agreed the terms and conditions upon which it would enter into an
                interest
                rate swap transaction or transactions with the Owner in respect of
                the
                Loan (whether in whole or in part as the case may be from time to
                time);

            

    

     

    
      	
              (C)

            	
              pursuant
                to the Loan Agreement there has been or will be executed by the Owner
                in
                favour of the Mortgagee a first priority Cyprus statutory ship mortgage
                in
                account current form and deed of covenant collateral thereto (together
                the
                “Mortgage”)
                on the vessel Maritsa
                documented
                in the name of the Owner under the laws and flag of the Republic
                of Cyprus
                under IMO Number 9279783 (the “Ship”)
                and the Mortgage of even date herewith has been or will be registered
                in
                the Registry of Cyprus Ships as security for the payment by the Owner
                of
                the Outstanding Indebtedness (as that expression is defined in the
                Mortgage); and

            

    

     

    
      	
              (D)

            	
              this
                Deed is supplemental to the Loan Agreement, the Master Swap Agreement
                and
                the Mortgage and to the security thereby created and is the General
                Assignment referred to in the Loan Agreement but shall nonetheless
                continue in full force and effect notwithstanding any discharge of
                the
                Mortgage.

            

    

     

    NOW
      THIS DEED WITNESSETH AND IT IS HEREBY AGREED
      as
      follows:

     

    
      	
              1

            	
              Definitions

            

    

     

    
      
        	1.1	
                Defined
                  expressions

              

      

    

     

    Words
      and
      expressions defined In the Loan Agreement or in the Mortgage shall, unless
      otherwise defined in this Deed, or the context otherwise requires, have the
      same
      meanings when used in this Deed.

     

    
      
        
        

      

      
      

      

        

      

    
    
      
      

    

     

    
      
        	1.2	
                Definitions

              

      

    

     

    In
      this
      Deed, unless the context otherwise requires:

     

    “Approved
      Brokers”
means
      such firm of insurance brokers, appointed by the Owner, as may from time to
      time
      be approved in writing by the Mortgagee for the purposes of this
      Deed;

     

    “Assigned
      Property”
      means:

     

    
      	 	
              (a)

            	
              the
                Earnings;

            

    

     

    
      	 	
              (b)

            	
              the
                Insurances; and 

            

    

     

    
      	 	
              (c)

            	
              any
                Requisition Compensation;

            

    

     

    “Casualty
      Amount”
means
      Five hundred thousand Dollars ($500,000) (or the equivalent in any other
      currency);

     

    “Collateral
      Instruments”
means
      notes, bills of exchange, certificates of deposit and other negotiable and
      non-negotiable instruments, guarantees, indemnities and other assurances against
      financial loss and any other documents or instruments which contain or evidence
      an obligation (with or without security) to pay, discharge or be responsible
      directly or indirectly for, any indebtedness or liabilities of the Owner or
      any
      other person liable and includes any documents or instruments creating or
      evidencing a mortgage, charge (whether fixed or floating), pledge, lien,
      hypothecation, assignment, trust arrangement or security interest of any
      kind;

     

    “Default”
means
      any Event of Default or any event or circumstance which with the giving of
      notice or lapse of time or the satisfaction of any other condition (or any
      combination thereof) would constitute an Event of Default;

     

    “Earnings”
means
      all moneys whatsoever from time to time due or payable to the Owner during
      the
      Security Period arising out of the use or operation of the Ship including (but
      without limiting the generality of the foregoing) all freight, hire and passage
      moneys, income arising under pooling arrangements, compensation payable to
      the
      Owner in 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) or any charterparty or other contract
      for
      the employment of the Ship;

     

    “Expenses”
means
      the aggregate at any relevant time (to the extent that the same have not been
      received or recovered by the Mortgagee) of:

     

    
      	 	
              (a)

            	
              all
                losses, liabilities, costs, charges, expenses, damages and outgoings
                of
                whatever nature (including without limitation Taxes, repair costs,
                registration fees and insurance premiums) suffered, incurred or paid
                by
                the Mortgagee in connection with the exercise of the powers referred
                to in
                or granted by the Loan Agreement, the Mortgage, this Deed or any
                other of
                the Security Documents or otherwise

            

    

     

    
      
        
        

      

      
      

      

        

      

    
    
      
      

    

     

    payable
      by the Owner in accordance with clause 11 of the Mortgage or clause 8;
      and

     

    
      	 	
              (b)

            	
              interest
                on all such losses, liabilities, costs, charges, expenses, damages
                and
                outgoings from the date on which the same were suffered, incurred
                or paid
                by the Mortgagee until the date of receipt or recovery thereof (whether
                before or after judgment) at a rate per annum calculated in accordance
                with clause 3.4 of the Loan Agreement (as conclusively certified
                by the
                Mortgagee);

            

    

     

    “Insurances”
means
      all policies and contracts of insurance (which expression includes all entries
      of the Ship in a protection and indemnity or war risks association) which are
      from time to time during the Security Period in place or taken out or entered
      into by or for the benefit of the Owner (whether in the sole name of the Owner,
      or in the joint names of the Owner and the Mortgagee or otherwise) in respect
      of
      the Ship and her Earnings or otherwise howsoever in connection with the Ship
      and
      all benefits thereof (including claims of whatsoever nature and return of
      premiums);

     

    “Loss
      Payable Clauses”
means
      the provisions regulating the manner of payment of sums receivable under the
      Insurances which are to be incorporated in the relevant insurance documents,
      such provisions to be in the forms set out in schedule 1, or in such other
      forms
      as may from time to time be required or agreed in writing by the
      Mortgagee;

     

    “Master
      Swap Agreement”
means
      the agreement made between the Mortgagee and the Owner dated
              2005
      mentioned in recital (C) hereto, comprising an ISDA Master Agreement and the
      Schedule thereto in the form or substantially in the form set out in schedule
      9
      to the Loan Agreement, together with any Confirmations (as defined therein)
      supplemental thereto;

     

    “Master
      Swap Agreement Liabilities”
means
      at any relevant time all liabilities actual or contingent, present or future,
      of
      the Owner to the Mortgagee under the Master Swap Agreement;

     

    “Mortgagee”
      includes the successors in title and assignees of the Mortgagee;

     

    “Notice
      of Assignment of Insurances”
means
      a
      notice of assignment in the form set out in schedule 2, or in such other form
      as
      may from time to time be required or agreed in writing by the
      Mortgagee;

     

    “Outstanding
      Indebtedness”
means
      the aggregate of the Loan and interest accrued and accruing thereon, the
      Expenses, the Master Swap Agreement Liabilities and all other sums of money
      from
      time to time owing by the Owner to the Mortgagee, whether actually or
      contingently, under the Security Documents or any of them;

     

    “Requisition
      Compensation”
means
      all moneys or other compensation from time to time payable during the Security
      Period by reason of the Compulsory Acquisition of the Ship;

     

    
      
        
        

      

      
      

      

        

      

    
    
      
      

    

     

    “Security
      Documents”
means
      the Loan Agreement, the Mortgage, the Deed of Covenant, the Manager’s
      Undertaking, the Master Swap Agreement, the Master Agreement Security Deed
      and
      this Deed and any other such document as may have been or may hereafter be
      executed to guarantee and/or secure all or any part of the Loan, interest
      thereon and other moneys from time to time owing by the Owner pursuant to the
      Loan Agreement and/or the Master Swap Agreement (whether or not such document
      also secures moneys from time to time owing pursuant to any other document
      or
      agreement; and

     

    “Security
      Period”
means
      the period commencing on the date hereof and terminating upon discharge of
      the
      security created by the Security Documents by payment of all moneys payable
      thereunder.

     

    
      	1.3	
              Headings

            

    

     

    Clause
      headings and the table of contents are inserted for convenience of reference
      only and shall be ignored in the interpretation of this Deed.

     

    
      	1.4	
              Construction
                of certain terms

            

    

     

    In
      this
      Deed, unless the context otherwise requires:

     

    
      	 	
              1.4.1

            	
              references
                to clauses and schedules are to be construed as references to clauses
                of
                and schedules to this Deed and references to this Deed include its
                schedules;

            

    

     

    
      	 	
              1.4.2

            	
              references
                to (or to any specified provision of) this Deed or any other document
                shall be construed as references to this Deed, that provision or
                that
                document as in force for the time being and as amended in accordance
                with
                the terms thereof, or, as the case may be, with the agreement of
                the
                relevant parties;

            

    

     

    
      	 	
              1.4.3

            	
              words
                importing the plural shall include the singular and vice
                versa;

            

    

     

    
      	 	
              1.4.4

            	
              references
                to a person shall be construed as references to an individual, firm,
                company, corporation, unincorporated body of persons or any Government
                Entity;

            

    

     

    
      	 	
              1.4.5

            	
              references
                to a “guarantee”
                include references to an indemnity or other assurance against financial
                loss including, without limitation, an obligation to purchase assets
                or
                services as a consequence of a default by any other person to pay
                any
                Indebtedness and “guaranteed”
                shall be construed accordingly; and

            

    

     

    
      	 	
              1.4.6

            	
              references
                to statutory provisions shall be construed as references to those
                provisions as replaced or amended or re-enacted from time to
                time.

            

    

     

    
      
        
        

      

      
      

      

        

      

    
    
      
      

    

     

    
      	1.5	
              Conflict
                with Loan Agreement

            

    

     

    This
      Deed
      shall be read together with the Loan Agreement but in case of any conflict
      between the two instruments, the provisions of the Loan Agreement shall
      prevail.

     

    
      	
              2

            	
              Assignment
                and application of funds

            

    

     

    
      	2.1	
              Assignment

            

    

     

    By
      way of
      security for payment of the Outstanding Indebtedness the Owner with full title
      guarantee hereby assigns and agrees to assign to the Mortgagee absolutely all
      its rights title and interest in and to the Assigned Property and all its
      benefits and interests present and future therein. Provided however
      that:

     

    
      	 	
              2.1.1

            	
              Earnings

            

    

     

    the
      Earnings shall be payable to the Safety Account until such time as a Default
      shall occur and the Mortgagee shall direct to the contrary whereupon the Owner
      shall forthwith, and the Mortgagee may at any time thereafter, instruct the
      persons from whom the Earnings are then payable to pay the same to the Mortgagee
      or as it may direct and any Earnings then in the hands of the Owner’s brokers or
      other agents shall be deemed to have been received by them for the use and
      on
      behalf of the Mortgagee;

     

    
      	 	
              2.1.2

            	
              Insurances

            

    

     

    unless
      and until a Default shall occur (whereupon all insurance recoveries, other
      than
      any moneys payable under any loss of earnings insurance, shall be receivable
      by
      the Mortgagee and applied in accordance with clause 2.3 or clause 2.6 (as the
      case may be)):

     

    
      	 	
              (a)

            	
              any
                moneys payable under the Insurances, other than any moneys payable
                under
                any loss of earnings insurance, shall be payable in accordance with
                the
                terms of the relevant Loss Payable Clause and the Mortgagee will
                not in
                the meantime give any notification to the contrary to the insurers
                as
                contemplated by the Loss Payable
                Clauses;

            

    

     

    
      	 	
              (b)

            	
              any
                insurance moneys received by the Mortgagee in respect of any major
                casualty (as specified in the relevant Loss Payable Clause) shall,
                unless
                prior to receipt or whilst such moneys are in the hands of the Mortgagee
                there shall have occurred a Default (whereupon such insurance monies
                shall
                be applied in accordance with clause 2.3 or clause 2.6 (as the case
                may
                be)), be paid over to the Owner upon the Owner furnishing evidence
                satisfactory to the Mortgagee that all loss and damage resulting
                from such
                casualty has been properly made good and repaired, and that all repair
                accounts and other liabilities whatsoever in connection with the
                casualty
                have been fully paid and discharged by the Owner, provided however
                that
                the insurers with whom the fire and usual marine risks insurances
                are
                effected may, in the case of a major casualty,
                and

            

    

     

    
      
        
        

      

      
      

      

        

      

    
    
      
      

    

     

     with
      the previous consent in writing of the Mortgagee, make payment on account of
      repairs in the course of being effected; and

     

    
      	 	
              (c)

            	
              any
                moneys payable under any loss of earnings insurance shall be payable
                in
                accordance with the terms of the relevant Loss Payable Clause and
                shall be
                subject to such provisions of this clause 2 as shall apply to Earnings
                and
                the Mortgagee will not give any notification to the insurers as
                contemplated in such Loss Payable Clause unless and until the Mortgagee
                shall have become entitled under clause 2.1.1 to direct that the
                Earnings
                be paid to the Mortgagee.

            

    

     

    
      	2.2	
              Notice

            

    

     

    The
      Owner
      hereby covenants and undertakes with the Mortgagee that it will from time to
      time upon the written request of the Mortgagee give written notice (in such
      form
      as the Mortgagee shall reasonably require) of the assignment herein contained
      to
      the persons from whom any part of the Assigned Property is or may be due and
      that it will procure that the interest of the Mortgagee in the Insurances shall
      be endorsed on the instruments of insurance from time to time issued in
      connection with such of the Insurances as are placed with the Approved Brokers
      by means of a Notice of Assignment of Insurances (signed by the Owner and by
      any
      other assured who shall have assigned its interest in the insurances to the
      Mortgagee).

     

    
      	2.3	
              Application

            

    

     

    All
      moneys received by the Mortgagee in respect of:

     

    
      	 	
              2.3.1

            	
              recovery
                under the Insurances (other than under any loss of earnings insurance
                and
                any such sum or sums as may have been received by the Mortgagee in
                accordance with the relevant Loss Payable Clause in respect of a
                major
                casualty as therein defined and paid over to the Owner as provided
                in
                clause 2.1.2(b) or which fall to be otherwise applied under clause
                2.6);
                and

            

    

     

    
      	 	
              2.3.2

            	
              Requisition
                Compensation

            

    

     

    shall
      be
      held by it upon trust in the first place to pay or make good the Expenses and
      the balance shall be applied in the manner specified in clause 14.1 of the
      Loan
      Agreement.

     

    
      	2.4	
              Shortfalls

            

    

     

    In
      the
      event that the balance referred to in clause 2.3 is insufficient to pay in
      full
      the whole of the Outstanding Indebtedness, the Mortgagee shall be entitled
      to
      collect the shortfall from the Owner or any other person liable for the time
      being therefor.

     

    
      	2.5	
              Application
                of Earnings received by
                Mortgagee

            

    

     

    Any
      moneys received by the Mortgagee in respect of the Earnings shall:

     

    
      
        
        

      

      
      

      

        

      

    
    
      
      

    

     

    
      	 	
              2.5.1

            	
              if
                received by the Mortgagee, or in the hands of the Mortgagee, prior
                to the
                occurrence of an Event of Default be retained by the Mortgagee and
                shall
                be paid over by the Mortgagee to the Owner at such times, in such
                amounts
                and for such purposes and/or shall be applied by the Mortgagee in
                or
                towards satisfaction of any sums from time to time accruing due and
                payable by the Owner under the Security Documents or any of them
                or by
                virtue of payment demanded thereunder, in each case as the Mortgagee
                may
                in its absolute discretion
                determine;

            

    

     

    
      	 	
              2.5.2

            	
              if
                received by the Mortgagee, or in the hands of the Mortgagee, after
                the
                occurrence of an Event of Default, be applied by the Mortgagee in
                the
                manner specified in clause 2.3 and/or clause 2.5.1, as the Mortgagee
                may
                in its absolute discretion
                determine.

            

    

     

    
      	2.6	
              Application
                of Insurances received by
                Mortgagee

            

    

     

    Subject
      to clause 2.3, any moneys received by the Mortgagee in respect of the Insurances
      (other than in respect of recovery under any loss of earnings insurance or
      in
      respect of a Total Loss) shall:

     

    
      	 	
              2.6.1

            	
              if
                received by the Mortgagee, or in the hands of the Mortgagee, after
                the
                occurrence of a Default but prior to the occurrence of an Event of
                Default, be retained by the Mortgagee and shall be paid over by the
                Mortgagee to the Owner at such times, in such amounts and for such
                purposes and/or shall be applied by the Mortgagee in or towards
                satisfaction of any sums from time to time accruing due and payable
                by the
                Owner under the Security Documents or any of them or by virtue of
                payment
                demanded thereunder, in each case as the Mortgagee may in its absolute
                discretion determine;

            

    

     

    
      	 	
              2.6.2

            	
              if
                received by the Mortgagee, or in the hands of the Mortgagee, after
                the
                occurrence of an Event of Default, be applied by the Mortgagee in
                the
                manner specified in clause 2.3 and/or clause 2.6.1, as the Mortgagee
                may
                in its absolute discretion
                determine.

            

    

     

    
      	2.7	
              Use
                of Owner’s name

            

    

     

    The
      Owner
      covenants and undertakes with the Mortgagee to do or permit to be done each
      and
      every act or thing which the Mortgagee may from time to time require to be
      done
      for the purpose of enforcing the Mortgagee’s rights under this Deed and to allow
      its name to be used as and when required by the Mortgagee for that
      purpose.

     

    
      	2.8	
              Reassignment

            

    

     

    Upon
      payment and discharge in full to the satisfaction of the Mortgagee of the
      Outstanding Indebtedness and the Master Swap Agreement Liabilities, the
      Mortgagee shall, at the request and cost of the Owner, re-assign the Earnings,
      the Insurances and any Requisition Compensation to the Owner or as it may
      direct.

     

    
      	
              3

            	
              Continuing
                security and other matters

            

    

     

    
      	3.1	
              Continuing
                security

            

    

     

    
      
        
        

      

      
      

      

        

      

    
    
      
      

    

     

    The
      security created by this Deed shall:

     

    
      	 	
              3.1.1

            	
              be
                held by the Mortgagee as a continuing security for the payment of
                the
                Outstanding Indebtedness and the performance and observance of and
                compliance with all of the covenants, terms and conditions contained
                in
                the Security Documents, express or implied, and that the security
                so
                created shall not be satisfied by any intermediate payment or satisfaction
                of any part of the amount hereby and thereby secured (or by any settlement
                of accounts between the Owner or any other person who may be liable
                to the
                Mortgagee in respect of the Outstanding Indebtedness or any part
                thereof
                and the Mortgagee);

            

    

     

    
      	 	
              3.1.2

            	
              be
                in addition to, and shall not in any way prejudice or affect, and
                may be
                enforced by the Mortgagee without prior recourse to, the security
                created
                by any other of the Security Documents or by any present or future
                Collateral Instruments, right or remedy held by or available to the
                Mortgagee or any right or remedy of the Mortgagee thereunder;
                and

            

    

     

    
      	 	
              3.1.3

            	
              not
                be in any way prejudiced or affected by the existence of any of the
                other
                Security Documents or any such Collateral Instrument, rights or remedies
                or by the same becoming wholly or in part void, voidable or unenforceable
                on any ground whatsoever or by the Mortgagee dealing with, exchanging,
                varying or failing to perfect or enforce any of the same, or giving
                time
                for payment or performance or indulgence or compounding with any
                other
                person liable.

            

    

     

    
      	3.2	
              Rights
                additional

            

    

     

    All
      the
      rights, powers and remedies vested in the Mortgagee hereunder shall be in
      addition to and not a limitation of any and every other right, power or remedy
      vested in the Mortgagee under the Loan Agreement, this Deed, the other Security
      Documents or any Collateral Instrument or at law and all the rights, powers
      and
      remedies so vested in the Mortgagee may be exercised from time to time and
      as
      often as the Mortgagee may deem expedient.

     

    
      	3.3	
              No
                enquiry

            

    

     

    The
      Mortgagee shall not be obliged to make any enquiry as to the nature or
      sufficiency of any payment received by it under the Mortgage and/or this Deed
      or
      to make any claim or take any action to collect any moneys hereby assigned
      or to
      enforce any rights or benefits hereby assigned to the Mortgagee or to which
      the
      Mortgagee may at any time be entitled under the Mortgage and/or this
      Deed.

     

    
      	3.4	
              Obligations
                of Owner and Mortgagee

            

    

     

    The
      Owner
      shall remain liable to perform all the obligations assumed by it in relation
      to
      the Assigned Property and the Mortgagee shall be under no obligation of any
      kind
      whatsoever in respect thereof or be under any liability whatsoever in the event
      of any failure by the Owner to perform it obligations in respect
      thereof.

     

    
      
        
        

      

      
      

      

        

      

    
    
      
      

    

     

    
      	3.5	
              Discharge
                of Mortgage

            

    

     

    Notwithstanding
      that this Deed is expressed to be supplemental to the Mortgage it shall continue
      in full force and effect after any discharge of the Mortgage.

     

    
      	
              4

            	
              Powers
                of Mortgagee to protect security and remedy
                defaults

            

    

     

    
      	4.1	
              Protective
                action

            

    

     

    The
      Mortgagee shall, without prejudice to its other rights, powers and remedies
      under any of the Security Documents, be entitled (but not bound) at any time,
      and as often as may be necessary, to take any such action as it may in its
      discretion think fit for the purpose of protecting or maintaining the security
      created by this Deed and the other Security Documents, and all Expenses
      attributable thereto shall be payable by the Owner on demand.

     

    
      	4.2	
              Remedy
                of defaults

            

    

     

    Without
      prejudice to the generality of the provisions of clause 4.1, if the Owner fails
      to comply with the provisions of clause 6.1.1(a) of the Deed of Covenant, the
      Mortgagee shall become forthwith entitled (but not bound) to effect and
      thereafter to maintain all such insurances upon the Ship as in its discretion
      it
      may think fit in order to procure the compliance with such provisions or
      alternatively, to require the Ship (at the Owner’s risk) to remain in, or to
      proceed to and remain in, a port designated by the Mortgagee until such
      provisions are fully complied with and the Expenses attributable to the exercise
      by the Mortgagee of any such powers shall be payable by the Owner on
      demand.

     

    
      	
              5

            	
              Powers
                of Mortgagee on Event of
                Default

            

    

     

    
      	5.1	
              Powers

            

    

     

    At
      any
      time after the occurrence of an Event of Default the Mortgagee shall forthwith
      become entitled (but not bound) as and when it may see fit, to exercise in
      relation to the Assigned Property or any part thereof all or any of the rights,
      powers and remedies possessed by it as assignee and/or chargee of the Assigned
      property (whether at law, by virtue of this deed or otherwise) and in particular
      (without limiting the generality of the foregoing):

     

    
      	 	
              5.1.1

            	
              to
                require that all policies, contracts, certificates of entry and other
                records relating to the Insurances (including details of and
                correspondence concerning outstanding claims) be delivered forthwith
                to
                such adjusters and/or brokers and/or other insurers as the Mortgagee
                may
                nominate;

            

    

     

    
      	 	
              5.1.2

            	
              to
                collect, recover, compromise and give a good discharge for, all claims
                then outstanding or thereafter arising under the Insurances or any
                of them
                or in respect of the Earnings or Requisition Compensation or any
                part
                thereof, 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, in the

            

    

     

    
      
        
        

      

      
      

      

        

      

    
    
      
      

    

     

    case
      of the Insurances, to permit any brokers through
      whom collection or recovery is effected to charge the usual brokerage
      therefor;

     

    
      	 	
              5.1.3

            	
              to
                discharge, compound, release or compromise claims in respect of the
                Earnings, Insurances or Requisition Compensation or any part thereof
                which
                have given or may give rise to any charge or lien or other claim
                on the
                Earnings, Insurances or Requisition Compensation or any part thereof
                or
                which are or may be enforceable by proceedings against the Earnings,
                Insurances or Requisition Compensation or any part thereof;
                and

            

    

     

    
      	 	
              5.1.4

            	
              to
                recover from the Owner on demand all Expenses incurred or paid by
                the
                Mortgagee in connection with the exercise of the powers (or any of
                them)
                referred to in this clause 5.1.

            

    

     

    
      	
              6

            	
              Attorney

            

    

     

    
      	6.1	
              Appointment

            

    

     

    By
      way of
      security, the Owner hereby irrevocably appoints the Mortgagee to be its attorney
      generally for and in the name and on behalf of the Owner, and as the act and
      deed or otherwise of the Owner to execute, seal and deliver and otherwise
      perfect and do all such deeds, assurances, agreements, instruments, acts and
      things which may be required for the full exercise of all or any of the rights,
      powers or remedies conferred hereby or which may be deemed proper in or in
      connection with all or any of the purposes aforesaid. The power hereby conferred
      shall be a general power of attorney under the Powers of Attorney Act 1971,
      and
      the Owner ratifies and confirms, and agrees to ratify and confirm, any deed,
      assurance, agreement, Instrument, act or thing which the Mortgagee may execute
      or do pursuant thereto. Provided always that such power shall not be exercisable
      by or on behalf of the Mortgagee until the happening of any Event of
      Default.

     

    
      	6.2	
              Exercise
                of power

            

    

     

    The
      exercise of such power by or on behalf of the Mortgagee shall not put any person
      dealing with the Mortgagee upon any enquiry as to whether any Event of Default
      has happened, nor shall such person be in any way affected by notice that no
      such Event of Default has happened, and the exercise by the Mortgagee of such
      power shall be conclusive evidence of the Mortgagee’s right to exercise the
      same.

     

    
      	6.3	
              Filings

            

    

     

    The
      Owner
      hereby irrevocably appoints the Mortgagee to be its attorney in its name and
      on
      its behalf and as its act and deed or otherwise of it to agree the form of
      and
      to execute and do all deeds, instruments, acts and things in order to file,
      record, register or enrol this Deed in any court, public office or elsewhere
      which the Mortgagee may in its discretion consider necessary or advisable,
      now
      or in the future, to ensure the legality, validity, enforceability or
      admissibility in evidence thereof.

     

    
      
        
        

      

      
      

      

        

      

    
    
      
      

    

     

    
      	
              7

            	
              Further
                assurance

            

    

     

    
      	7.1	
              The
                Owner hereby further undertakes at its own expense from time to time
                to
                execute, sign, perfect, do and (if required) register every such
                further
                assurance, document, act or thing as in the opinion of the Mortgagee
                may
                be necessary or desirable for the purpose of more effectually mortgaging
                and charging the Assigned Property or perfecting the security constituted
                or intended to be constituted by this
                Deed.

            

    

     

    
      	
              8

            	
              Costs
                and indemnities

            

    

     

    
      	8.1	
              Costs

            

    

     

    The
      Owners shall pay to the Mortgagee on demand on a full indemnity basis all
      expenses or liabilities of whatever nature (including legal fees, fees of
      insurance advisers, printing, out-of-pocket expenses, stamp duties, registration
      fees and other duties or charges) together with any value added tax or similar
      tax payable in respect thereof, incurred by the Mortgagee in connection with
      the
      exercise or enforcement of, or preservation of any rights under, this Deed
      or
      otherwise in respect of the Outstanding Indebtedness, the Master Swap Agreement
      Liabilities and the security therefor, or in connection with the preparation,
      completion, execution or registration of this Deed.

     

    
      	8.2	
              Mortgagee’s
                indemnity

            

    

     

    The
      Owner
      hereby agrees and undertakes to indemnify the Mortgagee against all losses,
      actions, claims, expenses, demands, obligations and liabilities whatever and
      whenever arising which may now or hereafter be incurred by the Mortgagee or
      by
      any manager, agent, officer or employee for whose liability, act or omission
      the
      Mortgagee may be answerable in respect of, in relation to, or in connection
      with
      anything done or omitted in the exercise or purported exercise of the powers
      contained in this Deed or otherwise in connection with such powers or with
      this
      Deed or with the Ship, its Earnings, Requisition Compensation and Insurances
      or
      otherwise howsoever in relation to, or in connection with, any of the matters
      dealt with in this Deed.

     

    
      	
              9

            	
              Remedies
                cumulative and other
                provisions

            

    

     

    
      	9.1	
              No
                implied waivers; remedies
                cumulative

            

    

     

    No
      failure or delay on the part of the Mortgagee to exercise any right, power
      or
      remedy vested in it under this Deed shall operate as a waiver thereof, nor
      shall
      any single or partial exercise by the Mortgagee of any right, power or remedy
      nor the discontinuance, abandonment or adverse determination of any proceedings
      taken by the Mortgagee to enforce any right, power or remedy preclude any other
      or further exercise thereof or proceedings to enforce the same or the exercise
      of any other right, power or remedy, nor shall the giving by the Mortgagee
      of
      any consent to any act which by the terms of this Deed requires such consent
      prejudice the right of the Mortgagee to give or withhold consent to the doing
      of
      any other similar act. The remedies provided in this Deed are cumulative and
      are
      not exclusive of any remedies provided by law.

     

    
      
        
        

      

      
      

      

        

      

    
    
      
      

    

     

    
      	9.2	
              Delegation

            

    

     

    The
      Mortgagee 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 it by this Deed
      in
      such manner, upon such terms, and to such persons as the Mortgagee in its
      absolute discretion may think fit.

     

    
      	9.3	
              Incidental
                powers

            

    

     

    The
      Mortgagee shall be entitled to do all acts and things incidental or conducive
      to
      the exercise of any of the rights, powers or remedies possessed by it as
      mortgagee of the Ship (whether at law, under this Deed or otherwise) and in
      particular (but without prejudice to the generality of the foregoing) upon
      becoming entitled to exercise any of its powers under clause 8.1 of the
      Mortgage, the Mortgagee shall be entitled to discharge any cargo on board the
      Ship (whether the same shall belong to the Owner or any other person) and to
      enter into such other arrangements respecting the Ship, the Insurances,
      management, maintenance, repair, classification and employment in all respects
      as if the Mortgagee was the owner of the Ship, but without being responsible
      for
      any loss incurred as a result of the Mortgagee doing or omitting to do any
      such
      acts or things as aforesaid.

     

    
      	
              10

            	
              Notices

            

    

     

    
      	10.1	
              The
                provisions of clause 17.1 of the Loan Agreement shall apply mutatis
                mutandis in respect of any certificate, notice, demand or other
                communication given or made under this
                Deed.

            

    

     

    
      	
              11

            	
              Counterparts

            

    

     

    
      	11.1	
              This
                Deed may be entered into in the form of two counterparts, each executed
                by
                one of the parties, and, provided both the parties shall so execute
                this
                Deed, each of the executed counterparts, when duly exchanged or delivered,
                shall be deemed to be an original but, taken together, they shall
                constitute one instrument.

            

    

     

    
      	
              12

            	
              Law
                and jurisdiction

            

    

     

    
      	12.1	
              Law

            

    

     

    This
      Deed
      is governed by, and shall be construed in accordance with, English
      law.

     

    
      	12.2	
              Submission
                to jurisdiction

            

    

     

    For
      the
      benefit of the Mortgagee, the parties hereto irrevocably agree that any legal
      action or proceedings in connection with this Deed may be brought in the English
      courts, or in the courts of any other country chosen by the Mortgagee, each
      of
      which shall have jurisdiction to settle any disputes arising out of or in
      connection with this Deed. The Owner irrevocably and unconditionally submits
      to
      the jurisdiction of the English courts and the courts of any country chosen
      by
      the Mortgagee and irrevocably designates, appoints and empowers Cheeswrights
      at
      present of 10 Philpot Lane, London EC3M 8BR, England to receive, for it and
      on
      its behalf, service of process issued out of the English 

     

    
      
        
        

      

      
      

      

        

      

    
    
      
      

    

     

    courts
      in any legal action or proceedings arising out
      of or in connection with this Deed. The submission to such jurisdiction shall
      not (and shall not be construed so as to) limit the right of the Mortgagee
      to
      take proceedings against the Owner in any other court of competent jurisdiction
      nor shall the taking of proceedings in any one or more jurisdictions preclude
      the taking of proceedings in any other jurisdiction, whether concurrently or
      not.

     

    The
      parties further agree that only the courts of England and not those of any
      other
      State shall have jurisdiction to determine any claim which the Owner may have
      against the Mortgagee arising out of or in connection with this
      Deed.

     

    
      	12.3	
              Contracts
                (Rights of Third Parties) Act
                1999

            

    

     

    Not
      terms
      of this Deed is enforceable under the Contracts (Right of Third Parties) Act
      1999 by a person who is not party to this Deed.

     

    IN
      WITNESS
      whereof
      this Deed has been duly executed as a deed the day and year first above
      written.

     

    
      
        
        

      

      
      

      

        

      

    
    
      
      

    

    Schedule
      1

    Forms
      of Loss Payable Clauses

     

    
      	1	
              Hull
                and machinery (marine and war
                risks)

            

    

     

    By
      a Deed
      of Assignment dated
               2005
MARATHASSA
      SHIPPING CORPORATION
      (the
“Owner”)
      has
      assigned to THE
      ROYAL BANK OF SCOTLAND plc
      (the
“Mortgagee”)
      all
      the Owner’s rights, title and interest in and to all policies and contracts of
      insurance from time to time taken out or entered into by or for the benefit
      of
      the Owner in respect of m.v. Maritsa and accordingly:

     

    
      	 	
              (a)

            	
              all
                claims hereunder in respect of an actual or constructive or compromised
                or
                arranged total loss, and all claims in respect of a major casualty
                (that
                is to say any casualty the claim in respect of which exceeds $500,000
                (or
                the equivalent in any other currency) inclusive of any deductible)
                shall
                be paid in full to the Mortgagee or to its order;
                and

            

    

     

    
      	 	
              (b)

            	
              all
                other claims hereunder shall be paid in full to the Owner or to its
                order,
                unless and until the Mortgagee shall have notified the insurers hereunder
                to the contrary, whereupon all such claims shall be paid to the Mortgagee
                or to its order.

            

    

     

    
      	2	
              Protection
                and indemnity risks

            

    

     

    Payment
      of any recovery which MARATHASSA
      SHIPPING CORPORATION
      of 80
      Broad Street, Monrovia, Republic of Liberia (the “Owner”)
      is
      entitled to make out of the funds of the Association in respect of any
      liability, costs or expenses incurred by the Owner, shall be made to the Owner
      or to its order, unless and until the Association receives notice to the
      contrary from THE
      ROYAL BANK OF SCOTLAND plc
      of The
      Shipping Business Centre, 5-10 Great Tower Street, London, EC3P 3HX (the
“Mortgagee”)
      in
      which event all recoveries shall thereafter be paid to the Mortgagee or their
      order; provided always that no liability whatsoever shall attach to the
      Association, its Managers or their agents for failure to comply with the latter
      obligation until the expiry of two clear business days from the receipt of
      such
      notice.

     

    
      	3	
              Loss
                of earnings

            

    

     

    By
      a
      General Assignment dated
               2005
MARATHASSA
      SHIPPING CORPORATION of
      80
      Broad Street, Monrovia, Republic of Liberia (the “Owner”)
      has
      assigned to THE
      ROYAL BANK OF SCOTLAND plc
      of The
      Shipping Business Centre, 5-10 Great Tower Street, London, EC3P 3HX (the
“Mortgagee”)
      its
      rights, title and interest in and to all policies and contracts of insurance
      from time to time taken out or entered into by or for the benefit of the Owner
      in respect of m.v. Maritsa and her earnings and accordingly all claims hereunder
      shall be paid in full to the Safety Account designated [SAMAOV-USDA] unless
      and
      until the Mortgagee shall have notified the insurers hereunder to the contrary,
      whereupon all such claims shall be paid to the Mortgagee or its
      order.

     

    
      
        
        

      

      
      

      

        

      

    
    
      
      

    

    Schedule
      2

    Form
      of Notice of Assignment of Insurances

     

    (For
      attachment by way of endorsement to the Policy)

     

    MARATHASSA
      SHIPPING CORPORATION
      of 80
      Broad Street, Monrovia, Republic of Liberia the Owner of the m.v. Maritsa HEREBY
      GIVES NOTICE that by a Deed of Assignment dated
               
2005 and entered into by us with THE
      ROYAL BANK OF SCOTLAND plc
      of The
      Shipping Business Centre, 5-10 Great Tower Street, London, EC3P 3HX there has
      been assigned by us to THE
      ROYAL BANK OF SCOTLAND plc
      as
      mortgagees of the said vessel all insurances in respect thereof, including
      the
      insurances constituted by the Policy whereon this notice is
      endorsed.

    
       

      
        

      

    

    Signed

    For
      and
      on behalf of

    MARATHASSA
      SHIPPING CORPORATION

     

    Dated
      ____________________2005

     

    
      
        
        

      

      
      

      

        

      

    
    
      
      

    

    

      
        	
                SIGNED,
                  SEALED and DELIVERED

              	
                )

              	 
	
                as
                  a DEED

              	
                )

              	 
	
                by

              	
                )

              	 
	
                for
                  and on behalf of

              	
                )

              	 
	
                MARATHASSA
                  SHIPPING CORPORATION

              	
                )

              	__________________ 
	
                pursuant
                  to a power of attorney

              	
                )

              	
                Attorney-in-Fact

              
	
                dated
                                 
                  2005

              	
                )

              	 
	
                in
                  the presence of:

              	
                )

              	 
	 	 	 
	__________________ 	 	 
	
                Witness

              	 	 
	
                Name:

              	 	 
	
                Address:

              	 	 
	
                Occupation:

              	 	 
	 	 	 
	
                SIGNED,
                  SEALED and DELIVERED

              	
                )

              	 
	
                as
                  a DEED

              	
                )

              	 
	
                by

              	
                )

              	 
	
                for
                  and on behalf of 

              	
                )

              	 
	
                THE
                  ROYAL BANK OF SCOTLAND plc

              	
                )

              	 
	
                pursuant
                  to a power of attorney

              	
                )

              	__________________
	
                dated
                  

              	
                )

              	
                Attorney-in-Fact

              
	
                in
                  the presence of:

              	
                )

              	 

      

    

     

    
      
        	 
	
                Witness

              
	
                Name:

              
	
                Address:

              
	
                Occupation:

              

      

    

     

    
      
        
        

      

      
      

      

        

      

    
    
      
      

    

    Schedule
      8

    Form
      of Manager’s Undertaking

     

    
      
        
        

      

      
      

      

        

      

    
    
      
      

    

    Private
      & Confidential

     

    Manager’s
      Undertaking

     

    
      	
              To:

            	
              The
                Royal Bank of Scotland plc

              The
                Shipping Business Centre

              5-10
                Great Tower Street

              London
                EC3P 3HX

              England

            

    

     

    
      	
              From:

            	
              Safety
                Management Overseas S.A.

              Edificio
                Torre Universal

              Piso
                12 Avenida Federico Boyd

              P.O.
                Box 8807 Panama

              Republic
                of Panama

            

    

     

    2005

     

    Dear
      Sirs

     

    Multicurrency
      loan of up to $28,000,000 to Marathassa Shipping
      Corporation

     

    
      	1	
              Loan
                Agreement

            

    

     

    We
      understand that under a Loan Agreement (the “Loan
      Agreement”)
      dated
               
2005 between (1) yourselves The Royal Bank of Scotland plc (the “Bank”
which
      expression includes the Bank’s successors and assigns) and (2) Marathassa
      Shipping Corporation (the “Borrower”)
      the
      Bank has agreed to make a multicurrency loan of up to $28,000,000 (the
“Loan”)
      to the
      Borrower and that it is a condition to the Bank’s agreement to make the Loan to
      the Borrower that we, Safety Management Overseas S.A. (the “Manager”)
      enter
      into this letter in favour of the Bank.

     

    
      	2	
              Confirmation
                of appointment

            

    

     

    We
      hereby
      confirm that we have been appointed as the manager of m.v. Maritsa
      (the
      “Ship”)
      registered under Cyprus flag at the Port of Limassol pursuant to a Management
      Agreement (the “Management
      Agreement”)
      dated
      30 December 2004 made between ourselves and the Borrower and that we have
      accepted out appointment thereunder in accordance with the terms and conditions
      thereof.

     

    
      	3	
              Representation
                and warranty

            

    

     

    We
      hereby
      represent and warrant that the copy of the Management Agreement set out in
      Appendix 1 to this letter is a true and complete copy of the Management
      Agreement, that the Management Agreement constitutes valid and binding
      obligations of the Manager enforceable in accordance with its terms and that
      there have been no amendments or variations thereto or defaults thereunder
      by
      the Manager or, to the best of the Manager’s knowledge and belief, the
      Borrower.

     

    
      
        
        

      

      
      

      

        

      

    
    
      
      

    

     

    
      	4	
              Undertakings

            

    

     

    The
      Manager undertakes with the Bank that:

     

    
      	 	
              (a)

            	
              the
                Manager will not agree or purport to agree to any amendment or variation
                of the Management Agreement without the prior written consent of
                the
                Bank;

            

    

     

    
      	 	
              (b)

            	
              the
                Manager will not, without the prior written consent of the Bank,
                take any
                action or institute any proceedings or make or assert any claim on
                or in
                respect of the Ship or its policies and contracts of insurance (which
                expression includes all entries of the Ship in a protection and indemnity
                or war risks association) which are from time to time during the
                Security
                Period (as such term is defined in the General Assignment dated
                               
                2005 (the “General
                Assignment”)
                executed by the Borrower in favour of the Bank in relation to the
                Ship’s
                Earnings (as such term is defined below), Insurances and Requisition
                Compensation (as such term is defined in the General Assignment))
                in place
                or taken out or entered into by or for the benefit of the Borrower
                (whether in the sole name of the Borrower or in the joint names of
                the
                Borrower and the Bank or otherwise) in respect of the Ship and her
                Earnings (as such term is defined below) or otherwise howsoever in
                connection with the Ship and all benefits thereof (including claims
                of
                whatsoever nature and return of premiums) (together the “Insurances”)
                or all moneys whatsoever from time to time due or payable to the
                Borrower
                during the Security Period (as such term is defined in the General
                Assignment) arising out of the use or operation of the Ship including
                (but
                without limiting the generality of the foregoing) all freight, hire
                and
                passage moneys, income arising under pooling arrangements, compensation
                payable to the Borrower 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
                (the
                “Earnings”)
                or any other property or other assets of the Borrower which the Bank
                has
                previously advised the Manager are subject to any encumbrance or
                right of
                set-off in favour of the Bank by virtue of any of the security documents
                executed in favour of the Bank pursuant to the Loan
                Agreement;

            

    

     

    
      	 	
              (c)

            	
              the
                Manager does hereby subordinate any claim that it may have against
                the
                Borrower or otherwise in respect of the Ship and its Earnings, Insurances
                and Requisition Compensation (as such term is defined in the General
                Assignment) to the claims of the Bank under the Loan Agreement and
                the
                other Security Documents (as such term is defined in the General
                Assignment) and undertakes to exercise no right to which it may be
                entitled in respect of the Borrower and/or the Ship and/or its Earnings
                and/or Insurances and/or Requisition Compensation (as such term is
                defined
                in the General Assignment) in competition with the
                Bank;

            

    

     

    
      	 	
              (d)

            	
              the
                Manager will discontinue any such action or proceedings or claim
                which may
                have been taken, instituted or made or asserted, promptly upon notice
                from
                the Bank to do so;

            

    

     

    
      
        
        

      

      
      

      

        

      

    
    
      
      

    

     

    
      	 	
              (e)

            	
              the
                Manager will promptly notify the Bank if at any time the amount owed
                by
                the Borrower to the Manager pursuant to the Management Agreement
                (whether
                in respect of the Manager’s remuneration or disbursements or otherwise)
                exceeds US$100,000 or the equivalent in other currencies;
                and

            

    

     

    
      	 	
              (f)

            	
              the
                Manager will provide the Bank with such information concerning the
                Ship as
                the Bank may from time to time reasonably
                require.

            

    

     

    
      	5	
              Insurance
                assignment

            

    

     

    
      	 	
              (a)

            	
              By
                way of security for the aggregate of the Loan and interest accrued
                and
                accruing thereon, the Expenses (as such term is defined in the General
                Assignment) the Master Swap Agreement Liabilities (as such term is
                defined
                in the General Assignment) and all other sums of money from time
                to time
                owing by the Borrower to the Bank, whether actually or contingently,
                under
                the Security Documents (as such term is defined in the General Assignment)
                the Master Agreement Liabilities (as such term is defined in the
                General
                Assignment) or any of them to which the Borrower is or is to be a
                party
                (the “Outstanding
                Indebtedness”)
                the Manager with full title guarantee hereby irrevocably and
                unconditionally assigns and agrees to assign to the Bank all of the
                Manager’s rights, title and interest in and to and the benefit of the
                Insurances.

            

    

     

    
      	 	
              (b)

            	
              The
                Manager hereby undertakes to procure that a duly completed notice
                in the
                form set out in Appendix 2 to this letter is given to all insurers
                of the
                Ship and to procure that such notice is promptly endorsed on all
                policies
                and entries in respect of the Insurances and agrees promptly to authorise
                and/or instruct any broker, insurer or association with or through
                whom
                Insurances may be effected to endorse on any policy or entry or otherwise
                to give effect to such loss payable clause as may be stipulated by
                the
                Bank.

            

    

     

    
      	 	
              (c)

            	
              The
                Bank shall, at the Manager’s cost, re-assign to the Manager all the
                Manager’s right, title and interest in the Insurances upon the Outstanding
                Indebtedness being discharged in full to the satisfaction of the
                Bank.

            

    

     

    
      	 	
              (d)

            	
              Any
                moneys in respect of the Insurances which would (but for the assignment
                contained in clause 5(a) above) be payable to the Manager shall be
                applied
                in accordance with clauses 2.1.2, 2.3, 2.5 and 2.6 (as the case may
                be) of
                the General Assignment.

            

    

     

    
      	6	
              Law
                and jurisdiction

            

    

     

    
      	 	
              (a)

            	
              The
                agreement constituted by this letter shall be governed by and construed
                in
                accordance with English law.

            

    

     

    
      	 	
              (b)

            	
              The
                Manager agrees, for the benefit of the Bank, that any legal action
                or
                proceedings arising out of or in connection with this letter against
                the
                Manager or any of its assets may be brought in the English courts.
                The
                Manager irrevocably and unconditionally submits to the jurisdiction
                of
                such courts and whoever 

            

    

     

    
      
        
        

      

      
      

      

        

      

    
    
      
      

    

     

    
      irrevocably
        designates, appoints and empowers Cheeswrights at present of 10 Philpot Lane,
        London EC3M 8BR, England, receive for it and on its behalf, service of process
        issued out of the English courts in any such legal action or proceedings.
        The
        submission to such jurisdiction shall not (and shall not be construed so
        as to)
        limit the rights of the Bank to take any proceedings against the Manager
        in the
        courts of any other competent jurisdiction nor shall the taking of proceedings
        in any one or more jurisdictions preclude the taking of proceedings in any
        other
        jurisdiction, whether concurrently or not.

    

     

    
      	 	
              (c)

            	
              No
                term of this Letter is enforceable under the Contracts (Rights of
                Third
                Parties) Act 1999 by a person who is not a party to this
                letter.

            

    

     

    

      
        	
                Yours
                  faithfully

              
	 
	 
	
                For
                  and on behalf of

              
	
                Safety
                  Management Overseas
                  S.A.

              

      

    

     

    
      
        
        

      

      
      

      

        

      

    
    
      
      

    

    Appendix
      1

    Copy
      of the Management Agreement

     

    
      
        
        

      

      
      

      

        

      

    
    
      
      

    

    Appendix
      2

    Notice
      of Assignment

     

    We,
      SAFETY
      MANAGEMENT OVERSEAS S.A.,
      the
      managers of m.v. Maritsa,
      HEREBY
      GIVE NOTICE that by a first assignment dated
                      2005
      and entered into by us with THE
      ROYAL BANK OF SCOTLAND plc
      there
      has been assigned by us to the said The Royal Bank of Scotland plc as first
      assignees all of our right, title and interest in and to the insurances in
      respect of the said Ship including the insurances constituted by the Policy
      whereon this notice is endorsed.

    

      
        	 
	
                SIGNED

              
	
                For
                  and on behalf of 

              
	
                Safety
                  Management Overseas
                  S.A.

              

      

    

     

    Dated:                    2005

     

    
      
        
        

      

      
      

      

        

      

    
    
      
      

    

     

    Schedule
      9

    Form
      of Master Swap Agreement

     

    
      
        
        

      

      
      

      

        

      

    
    
      
      

    

     

    (Multicurrency-Cross
      Border)

     

    ISDA®

    International
      Swaps & Derivatives Association, Inc.

     

    MASTER
      AGREEMENT

     

    dated
      as
      of           
2005

     

    Marathassa
      Shipping Corporation and The Royal Bank of Scotland plc

     

    have
      entered and/or anticipate entering into one or more transactions (each a
“Transaction”) that are or will be governed by this Master Agreement, which
      includes the schedule (the “Schedule”), and the documents and other confirming
      evidence (each a “Confirmation”) exchanged between the parties confirming those
      Transactions.

     

    Accordingly,
      the parties agree as follows:-

     

    
      	1.	
              Interpretation

            

    

     

    (a) Definitions.
      The
      terms
      defined in Section 14 and in the Schedule will have the meanings therein
      specified for the purpose of this Master Agreement.

     

    (b) Inconsistency.
      In
      the
      event of any inconsistency between the provisions of the Schedule and the other
      provisions of this Master Agreement, the Schedule will prevail. In the event
      of
      any inconsistency between the provisions of any Confirmation and this Master
      Agreement (including the Schedule), such Confirmation will prevail for the
      purpose of the relevant Transaction.

     

    (c) Single
      Agreement. All
      Transactions are entered into in reliance on the fact that this Master Agreement
      and all Confirmations form a single agreement between the parties (collectively
      referred to as this “Agreement”), and the parties would not otherwise enter into
      any Transactions.

     

    
      	2.	
              Obligations

            

    

     

    (a) General
      Conditions.

     

    (i) Each
      party will make each payment or delivery specified in each Confirmation to
      be
      made by it, subject to the other provisions of this Agreement.

     

    (ii) Payments
      under this Agreement will be made on the due date for value on that date in
      the
      place of the account specified in the relevant Confirmation or otherwise
      pursuant to this Agreement, in freely transferable funds and in the manner
      customary for payments in the required currency. Where settlement is by delivery
      (that is, other than by payment), such delivery will be made for receipt on
      the
      due date in the manner customary for the relevant obligation unless otherwise
      specified in the relevant Confirmation or elsewhere in this
      Agreement.

     

    
      
        
        

      

      
      

      

        

      

    
    
      
      

    

     

    (iii) Each
      obligation of each party under Section 2(a)(i) is subject to (1) the condition
      precedent that no Event of Default or Potential Event of Default with respect
      to
      the other party has occurred and is continuing, (2) the condition precedent
      that
      no Early Termination Date in respect of the relevant Transaction has occurred
      or
      been effectively designated and (3) each other applicable condition precedent
      specified in this Agreement.

     

    (b)
      Change
      of Account. Either
      party may change its account for receiving a payment or delivery by giving
      notice to the other party at least five Local Business Days prior to the
      scheduled date for the payment or delivery to which such change applies unless
      such other party gives timely notice of a reasonable objection to such
      change.

     

    (c)
      Netting.
      If
      on any
      date amounts would otherwise be payable:-

     

    
      	
            	(i)	
              in
                the same currency; and

            

    

     

    
      	
            	(ii)	
              in
                respect of the same Transaction,

            

    

     

    by
      each
      party to the other, then, on such date, each party’s obligation to make payment
      of any such amount will be automatically satisfied and discharged and, if the
      aggregate amount that would otherwise have been payable by one party exceeds
      the
      aggregate amount that would otherwise have been payable by the other party,
      replaced by an obligation upon the party by whom the larger aggregate amount
      would have been payable to pay to the other party the excess of the larger
      aggregate amount over the smaller aggregate amount.

     

    The
      parties may elect in respect of two or more Transactions that a net amount
      will
      be determined in respect of all amounts payable on the same date in the same
      currency in respect of such Transactions, regardless of whether such amounts
      are
      payable in respect of the same Transaction. The election may be made in the
      Schedule or a Confirmation by specifying that subparagraph (ii) above will
      not
      apply to the Transactions identified as being subject to the election, together
      with the starting date (in which case subparagraph (ii) above will not, or
      will
      cease to, apply to such Transactions from such date). This election may be
      made
      separately for different groups of Transactions and will apply separately to
      each pairing of Offices through which the parties make and receive payments
      or
      deliveries.

     

    (d)
      Deduction
      or Withholding for Tax.

     

    (i) Gross-Up.
      All
      payments under this Agreement will be made without any deduction or withholding
      for or on account of any Tax unless such deduction or withholding is required
      by
      any applicable law, as modified by the practice of any relevant governmental
      revenue authority, then in effect. If a party is so required to deduct or
      withhold, then that party (“X”) will:-

     

    (1) promptly
      notify the other party (“Y”) of such requirement;

     

    (2) pay
      to
      the relevant authorities the full amount required to be deducted or withheld
      (including the full amount required to be deducted or withheld from any
      additional amount paid by X to Y under this Section 2(d)) promptly upon the
      

     

    
      
        
        

      

      
      

      

        

      

    
    
      
      

    

     

    earlier
      of determining that such deduction or withholding is required or receiving
      notice that such amount has been assessed against Y;

     

    (3) promptly
      forward to Y an official receipt (or a certified copy), or other documentation
      reasonably acceptable to Y, evidencing such payment to such authorities;
      and

     

    (4) if
      such
      Tax is an Indemnifiable Tax, pay to Y, in addition to the payment to which
      Y is
      otherwise entitled under this Agreement, such additional amount as is necessary
      to ensure that the net amount actually received by Y (free and clear of
      Indemnifiable Taxes, whether assessed against X or Y) will equal the full amount
      Y would have received had no such deduction or withholding been required.
      However, X will not be required to pay any additional amount to Y to the extent
      that it would not be required to be paid but for:-

     

    (A) the
      failure by Y to comply with or perform any agreement contained in Section
      4(a)(i), 4(a)(iii) or 4(d); or

     

    (B) the
      failure of a representation made by Y pursuant to Section 3(f) to be accurate
      and true unless such failure would not have occurred but for (I) any action
      taken by a taxing authority, or brought in a court of competent jurisdiction,
      on
      or after the date on which a Transaction is entered into (regardless of whether
      such action is taken or brought with respect to a party to this Agreement)
      or
      (II) a Change in Tax Law.

     

    (ii) Liability.
      If
      -

     

    (1) X
      is
      required by any applicable law, as modified by the practice of any relevant
      governmental revenue authority, to make any deduction or withholding in respect
      of which X would not be required to pay an additional amount to Y under Section
      2(d)(i)(4);

     

    (2) X
      does
      not so deduct or withhold; and 

     

    (3) a
      liability resulting from such Tax is assessed directly against X,

     

    then,
      except to the extent Y has satisfied or then satisfies the liability resulting
      from such Tax, Y will promptly pay to X the amount of such liability (including
      any related liability for interest, but including any related liability
      for or
      penalties only if Y has failed to comply with or perform any agreement contained
      in Section 4(a)(i), 4(a)(iii) or 4(d)).

     

    (e) Default
      Interest; Other Amounts.
      Prior
      to
      the occurrence or effective designation of an Early Termination Date in respect
      of the relevant Transaction, a party that defaults in the performance of any
      payment obligation will, to the extent permitted by law and subject to Section
      6(c), be required to pay interest (before as well as after judgment) on the
      overdue amount to the other party on demand in the same currency as such overdue
      amount, for the period from (and including) the original due date for payment
      to
      (but excluding) the date of actual payment, at the Default Rate. Such interest
      will be calculated on the basis of daily compounding and the 

     

    
      
        
        

      

      
      

      

        

      

    
    
      
      

    

     

    actual
      number of days elapsed. If, prior to the occurrence or effective designation
      of
      an Early Termination Date in respect of the relevant Transaction, a party
      defaults in the performance of any obligation required to be settled by
      delivery, it will compensate the other party on demand if and to the extent
      provided for in the relevant Confirmation or elsewhere in this
      Agreement.

     

    
      	3.	
              Representations

            

    

     

    Each
      party represents to the other party (which representations will be deemed to
      be
      repeated by each party on each date on which a Transaction is entered into
      and,
      in the case of the representations in Section 3(f), at all times until the
      termination of this Agreement) that:-

     

    (a) Basic
      Representations.

     

    (i) Status.
      It
      is
      duly organised and validly existing under the laws of the jurisdiction of its
      organisation or incorporation and, if relevant under such laws, in good
      standing;

     

    (ii) Powers.
      It
      has
      the power to execute this Agreement and any other documentation relating to
      this
      Agreement to which it is a party, to deliver this Agreement and any other
      documentation relating to this Agreement that it is required by this Agreement
      to deliver and to perform its obligations under this Agreement and any
      obligations it has under any Credit Support Document to which it is a party
      and
      has taken all necessary action to authorise such execution, delivery and
      performance;

     

    (iii) No
      Violation or Conflict.
      Such
      execution, delivery and performance do not violate or conflict with any law
      applicable to it, any provision of its constitutional documents, any order
      or
      judgment of any court or other agency of government applicable to it or any
      of
      its assets or any contractual restriction binding on or affecting it or any
      of
      its assets;

     

    (iv) Consents.
      All
      governmental and other consents that are required to have been obtained by
      it
      with respect to this Agreement or any Credit Support Document to which it is
      a
      party have been obtained and are in full force and effect and all conditions
      of
      any such consents have been complied with; and

     

    (v) Obligations
      Binding.
      Its
      obligations under this Agreement and any Credit Support Document to which it
      is
      a party constitute its legal, valid and binding obligations, enforceable in
      accordance with their respective terms (subject to applicable bankruptcy,
      reorganisation, insolvency, moratorium or similar laws affecting creditors’
rights generally and subject, as to enforceability, to equitable principles
      of
      general application (regardless of whether enforcement is sought in a proceeding
      in equity or at law)).

     

    (b) Absence
      of Certain Events.
      No
      Event
      of Default or Potential Event of Default or, to its knowledge, Termination
      Event
      with respect to it has occurred and is continuing and no such event or
      circumstance would occur as a result of its entering into or performing its
      obligations under this Agreement or any Credit Support Document to which it
      is a
      party.

     

    (c) Absence
      of Litigation.
      There
      is
      not pending or, to its knowledge, threatened against it or any of its Affiliates
      any action, suit or proceeding at law or in equity or before any court,

     

    
      
        
        

      

      
      

      

        

      

    
    
      
      

    

     

    tribunal,
      governmental body, agency or official or any arbitrator that is likely to affect
      the legality, validity or enforceability against it of this Agreement or any
      Credit Support Document to which it is a party or its ability to perform its
      obligations under this Agreement or such Credit Support Document.

     

    (d) Accuracy
      of Specified Information.
      All
      applicable information that is furnished in writing by or on behalf of it to
      the
      other party and is identified for the purpose of this Section 3(d) in the
      Schedule is, as of the date of the information, true, accurate and complete
      in
      every material respect.

     

    (e) Payer
      Tax Representation.
      Each
      representation specified in the Schedule as being made by it for the purpose
      of
      this Section 3(e) is accurate and true.

     

    (f) Payee
      Tax Representations.
      Each
      representation specified in the Schedule as being made by it for the purpose
      of
      this Section 3(f) is accurate and true.

     

    
      	4.	
              Agreements

            

    

     

    Each
      party agrees with the other that, so long as either party has or may have any
      obligation under this Agreement or under any Credit Support Document to which
      it
      is a party:-

     

    (a) Furnish
      Specified Information.
      It
      will
      deliver to the other party or, in certain cases under subparagraph (iii) below,
      to such government or taxing authority as the other party reasonably
      directs:-

     

    (i) any
      forms, documents or certificates relating to taxation specified in the Schedule
      or any Confirmation;

     

    (ii) any
      other
      documents specified in the Schedule or any Confirmation; and

     

    (iii) upon
      reasonable demand by such other party, any form or document that may be required
      or reasonably requested in writing in order to allow such other party or its
      Credit Support Provider to make a payment under this Agreement or any applicable
      Credit Support Document without any deduction or withholding for or on account
      of any Tax or with such deduction or withholding at a reduced rate (so long
      as
      the completion, execution or submission of such form or document would not
      materially prejudice the legal or commercial position of the party in receipt
      of
      such demand), with any such form or document to be accurate and completed in
      a
      manner reasonably satisfactory to such other party and to be executed and to
      be
      delivered with any reasonably required certification,

     

    in
      each
      case by the date specified in the Schedule or such Confirmation or, if none
      is
      specified, as soon as reasonably practicable.

     

    (b) Maintain
      Authorisations.
      It
      will
      use all reasonable efforts to maintain in full force and effect all consents
      of
      any governmental or other authority that are required to be obtained by it
      with
      respect to this Agreement or any Credit Support Document to which it is a party
      and will use all reasonable efforts to obtain any that may become necessary
      in
      the future.

     

    
      
        
        

      

      
      

      

        

      

    
    
      
      

    

     

    (c) Comply
      with Laws.
      It
      will
      comply in all material respects with all applicable laws and orders to which
      it
      may be subject if failure so to comply would materially impair its ability
      to
      perform its obligations under this Agreement or any Credit Support Document
      to
      which it is a party.

     

    (d) Tax
      Agreement. It
      will
      give notice of any failure of a representation made by it under Section 3(f)
      to
      be accurate and true promptly upon learning of such failure.

     

    (e) Payment
      of Stamp Tax.
      Subject
      to Section 11, it will pay any Stamp Tax levied or imposed upon it or in respect
      of its execution or performance of this Agreement by a jurisdiction in which
      it
      is incorporated, organised, managed and controlled, or considered to have its
      seat, or in which a branch or office through which it is acting for the purpose
      of this Agreement is located (“Stamp Tax Jurisdiction”) and will indemnify the
      other party against any Stamp Tax levied or imposed upon the other party or
      in
      respect of the other party’s execution or performance of this Agreement by any
      such Stamp Tax Jurisdiction which is not also a Stamp Tax Jurisdiction with
      respect to the other party.

     

    
      	5.	
              Events
                of Default and Termination
                Events

            

    

     

    (a) Events
      of Default.
      The
      occurrence at any time with respect to a party or, if applicable, any Credit
      Support Provider of such party or any Specified Entity of such party of any
      of
      the following events constitutes an event of default (an “Event of Default”)
      with respect to such party:-

     

    (i) Failure
      to Pay or Deliver.
      Failure
      by the party to make, when due, any payment under this Agreement or delivery
      under Section 2(a)(i) or 2(e) required to be made by it if such failure is
      not
      remedied on or before the third Local Business Day after notice of such failure
      is given to the party;

     

    (ii) Breach
      of Agreement.
      Failure
      by the party to comply with or perform any agreement or obligation (other than
      an obligation to make any payment under this Agreement or delivery under Section
      2(a)(i) or 2(e) or to give notice of a Termination Event or any agreement or
      obligation under Section 4(a)(i), 4(a)(iii) or 4(d)) to be complied with or
      performed by the party in accordance with this Agreement if such failure is
      not
      remedied on or before the thirtieth day after notice of such failure is given
      to
      the party;

     

    (iii) Credit
      Support Default.

     

    (1) Failure
      by the party or any Credit Support Provider of such party to comply with or
      perform any agreement or obligation to be complied with or performed by it
      in
      accordance with any Credit Support Document if such failure is continuing after
      any applicable grace period has elapsed;

     

    (2) the
      expiration or termination of such Credit Support Document or the failing or
      ceasing of such Credit Support Document to be in full force and effect for
      the
      purpose of this Agreement (in either case other than in accordance with its
      terms) prior to the satisfaction of all obligations of such party under each
      

     

    
      
        
        

      

      
      

      

        

      

    
    
      
      

    

     

    Transaction
      to which such Credit Support Document relates without the written consent of
      the
      other party; or

     

    (3) the
      party
      or such Credit Support Provider disaffirms, disclaims, repudiates or rejects,
      in
      whole or in part, or challenges the validity of, such Credit Support
      Document;

     

    (iv) Misrepresentation.
      A
      representation (other than a representation under Section 3(e) or (f)) made
      or
      repeated or deemed to have been made or repeated by the party or any Credit
      Support Provider of such party in this Agreement or any Credit Support Document
      proves to have been incorrect or misleading in any material respect when made
      or
      repeated or deemed to have been made or repeated;

     

    (v) Default
      under Specified Transaction.
      The
      party, any Credit Support Provider of such party or any applicable Specified
      Entity of such party (1) defaults under a Specified Transaction and, after
      giving effect to any applicable notice requirement or grace period, there occurs
      a liquidation of an acceleration of obligations under, or an early termination
      of, that Specified Transaction, (2) defaults, after giving effect to any
      applicable notice requirement or grace period, in making any payment or delivery
      due on the last payment, delivery or exchange date of, or any payment on early
      termination of, a Specified Transaction (or such default continues for at least
      three Local Business Days if there is no applicable notice requirement or grace
      period) or (3) disaffirms, disclaims, repudiates or rejects, in whole or in
      part, a Specified Transaction (or such action is taken by any person or entity
      appointed or empowered to operate it or act on its behalf);

     

    (vi) Cross
      Default.
      If
“Cross
      Default” is specified in the Schedule as applying to the party, the occurrence
      or existence of (1) a default, event of default or other similar condition
      or
      event (however described) in respect of such party, any Credit Support Provider
      of such party or any applicable Specified Entity of such party under one or
      more
      agreements or instruments relating to Specified Indebtedness of any of them
      (individually or collectively) in an aggregate amount of not less than the
      applicable Threshold Amount (as specified in the Schedule) which has resulted
      in
      such Specified Indebtedness becoming, or becoming capable at such time of being
      declared, due and payable under such agreements or instruments, before it would
      otherwise have been due and payable or (2) a default by such party, such Credit
      Support Provider or such Specified Entity (individually or collectively) in
      making one or more payments on the due date thereof in an aggregate amount
      of
      not less than the applicable Threshold Amount under such agreements or
      instruments (after giving effect to any applicable notice requirement or grace
      period);

     

    (vii) Bankruptcy.
      The
      party, any Credit Support Provider of such party or any applicable Specified
      Entity of such party:-

     

    (1)
      is
      dissolved (other than pursuant to a consolidation, amalgamation or
      merger);

     

    (2)
      becomes insolvent or is unable to pay its debts or fails or admits in writing
      its inability generally to pay its debts as they become due; (3) makes a general
      assignment, arrangement or composition with or for the benefit of its creditors;
      

     

    
      
        
        

      

      
      

      

        

      

    
    
      
      

    

     

    (4)
      institutes or has instituted against it a proceeding seeking a judgment of
      insolvency or bankruptcy or any other relief under any bankruptcy or insolvency
      law or other similar law affecting creditors’ rights, or a petition is presented
      for its winding-up or liquidation, and, in the case of any such proceeding
      or
      petition instituted or presented against it, such proceeding or petition (A)
      results in a judgment of insolvency or bankruptcy or the entry of an order
      for
      relief or the making of an order for its winding-up or liquidation or (B) is
      not
      dismissed, discharged, stayed or restrained in each case within 30 days of
      the
      institution or presentation thereof; (5) has a resolution passed for its
      winding-up, official management or liquidation (other than pursuant to a
      consolidation, amalgamation or merger); (6) seeks or becomes subject to the
      appointment of an administrator, provisional liquidator, conservator, receiver,
      trustee, custodian or other similar official for it or for all or substantially
      all its assets; (7) has a secured party take possession of all or substantially
      all its assets or has a distress, execution, attachment, sequestration or other
      legal process levied, enforced or sued on or against all or substantially all
      its assets and such secured party maintains possession, or any such process
      is
      not dismissed, discharged, stayed or restrained, in each case within 30 days
      thereafter; (8) causes or is subject to any event with respect to it which,
      under the applicable laws of any jurisdiction, has an analogous effect to any
      of
      the events specified in clauses (1) to (7) (inclusive); or (9) takes any action
      in furtherance of, or indicating its consent to, approval of, or acquiescence
      in, any of the foregoing acts; or

     

    (viii) Merger
      Without Assumption.
      The
      party
      or any Credit Support Provider of such party consolidates or amalgamates with,
      or merges with or into, or transfers all or substantially all its assets to,
      another entity and, at the time of such consolidation, amalgamation, merger
      or
      transfer:-

     

    (1) the
      resulting, surviving or transferee entity fails to assume all the obligations
      of
      such party or such Credit Support Provider under this Agreement or any Credit
      Support Document to which it or its predecessor was a party by operation of
      law
      or pursuant to an agreement reasonably satisfactory to the other party to this
      Agreement; or

     

    (2) the
      benefits of any Credit Support Document fail to extend (without the consent
      of
      the other party) to the performance by such resulting, surviving or transferee
      entity of its obligations under this Agreement.

     

    (b) Termination
      Events.
      The
      occurrence at any time with respect to a party or, if applicable, any Credit
      Support Provider of such party or any Specified Entity of such party of any
      event specified below constitutes an Illegality if the event is specified in
      (i)
      below, a Tax Event if the event is specified in (ii) below or a Tax Event Upon
      Merger if the event is specified in (iii) below, and, if specified to be
      applicable, a Credit Event. Upon Merger if the event is specified pursuant
      to
      (iv) below or an Additional Termination Event if the event is specified pursuant
      to (v) below:-

     

    
      
        
        

      

      
      

      

        

      

    
    
      
      

    

     

    (i) Illegality.
      Due
      to
      the adoption of, or any change in, any applicable law after the date on which
      a
      Transaction is entered into, or due to the promulgation of, or any change in,
      the interpretation by any court, tribunal or regulatory authority with competent
      jurisdiction of any applicable law after such date, it becomes unlawful (other
      than as a result of a breach by the party of Section 4(b)) for such party (which
      will be the Affected Party):-

     

    (1) to
      perform any absolute or contingent obligation to make a payment or delivery
      or
      to receive a payment or delivery in respect of such Transaction or to comply
      with any other material provision of this Agreement relating to such
      Transaction; or

     

    (2) to
      perform, or for any Credit Support Provider of such party to perform, any
      contingent or other obligation which the party (or such Credit Support Provider)
      has under any Credit Support Document relating to such Transaction;

     

    (ii) Tax
      Event.
      Due
      to
      (x) any action taken by a taxing authority, or brought in a court of competent
      jurisdiction, on or after the date on which a Transaction is entered into
      (regardless of whether such action is taken or brought with respect to a party
      to this Agreement) or (y) a Change in Tax Law, the party (which will be the
      Affected Party) will, or there is a substantial likelihood that it will, on
      the
      next succeeding Scheduled Payment Date (1) be required to pay to the other
      party
      an additional amount in respect of an Indemnifiable Tax under Section 2(d)(i)(4)
      (except in respect of interest under Section 2(e), 6(d)(ii) or 6(e)) or (2)
      receive a payment from which an amount is required to be deducted or withheld
      for or on account of a Tax (except in respect of interest under Section 2(e),
      6(d)(ii) or 6(e)) and no additional amount is required to be paid in respect
      of
      such Tax under Section 2(d)(i)(4) (other than by reason of Section 2(d)(i)(4)(A)
      or (B));

     

    (iii) Tax
      Event Upon Merger.
      The
      party
      (the “Burdened Party”) on the next succeeding Scheduled Payment Date will either
      (1) be required to pay an additional amount in respect of an Indemnifiable
      Tax
      under Section 2(d)(i)(4) (except in respect of interest under Section 2(e),
      6(d)(ii) or 6(e)) or (2) receive a payment from which an amount has been
      deducted or withheld for or on account of any Indemnifiable Tax in respect
      of
      which the other party is not required to pay an additional amount (other than
      by
      reason of Section 2(d)(i)(4)(A) or (B)), in either case as a result of a party
      consolidating or amalgamating with, or merging with or into, or transferring
      all
      or substantially all its assets to, another entity (which will be the Affected
      Party) where such action does not constitute an event described in Section
      5(a)(viii);

     

    (iv) Credit
      Event Upon Merger.
      If
      “Credit Event Upon Merger” is specified in the Schedule as applying to the
      party, such party (“X”), any Credit Support Provider of X or any applicable
      Specified Entity of X consolidates or amalgamates with, or merges with or into,
      or transfers all or substantially all its assets to, another entity and such
      action does not constitute an event described in Section 5(a)(viii) but the
      creditworthiness of the resulting, surviving or transferee entity is materially
      weaker than that of X, such Credit Support Provider or such Specified Entity,
      as
      the case may be, immediately prior to such 

     

    
      
        
        

      

      
      

      

        

      

    
    
      
      

    

     

    action
      (and, in such event, X or its successor or transferee, as appropriate, will
      be
      the Affected Party); or 

     

    (v) Additional
      Termination Event.
      If
      any
“Additional Termination Event” is specified in the Schedule or any Confirmation
      as applying, the occurrence of such event (and, in such event, the Affected
      Party or Affected Parties shall be as specified for such Additional Termination
      Event in the Schedule or such Confirmation).

     

    (c) Event
      of Default and Illegality.
      If
      an
      event or circumstance which would otherwise constitute or give rise to an Event
      of Default also constitutes an Illegality, it will be treated as an Illegality
      and will not constitute an Event of Default.

     

    
      	6.	
              Early
                Termination

            

    

     

    (a) Right
      to Terminate Following Event of Default.
      If
      at any
      time an Event of Default with respect to a party (the “Defaulting Party”) has
      occurred and is then continuing, the other party (the “Non-defaulting Party”)
      may, by not more than 20 days notice to the Defaulting Party specifying the
      relevant Event of Default, designate a day not earlier than the day such notice
      is effective as an Early Termination Date in respect of all outstanding
      Transactions. If, however, “Automatic Early Termination” is specified in the
      Schedule as applying to a party, then an Early Termination Date in respect
      of
      all outstanding Transactions will occur immediately upon the occurrence with
      respect to such party of an Event of Default specified in Section 5(a)(vii)(1),
      (3), (5), (6) or, to the extent analogous thereto, (8), and as of the time
      immediately preceding the institution of the relevant proceeding or the
      presentation of the relevant petition upon the occurrence with respect to such
      party of an Event of Default specified in Section 5(a)(vii)(4) or, to the extent
      analogous thereto, (8).

     

    (b) Right
      to Terminate Following Termination Event.

     

    (i) Notice.
      If
      a
      Termination Event occurs, an Affected Party will, promptly upon becoming aware
      of it, notify the other party, specifying the nature of that Termination Event
      and each Affected Transaction and will also give such other information about
      that Termination Event as the other party may reasonably require.

     

    (ii) Transfer
      to Avoid Termination Event.
      If
      either
      an Illegality under Section 5(b)(i)(1) or a Tax Event occurs and there is only
      one Affected Party, or if a Tax Event Upon Merger occurs and the Burdened Party
      is the Affected Party, the Affected Party will, as a condition to its right
      to
      designate an Early Termination Date under Section 6(b)(iv), use all reasonable
      efforts (which will not require such party to incur a loss, excluding
      immaterial, incidental expenses) to transfer within 20 days after it gives
      notice under Section 6(b)(i) all its rights and obligations under this Agreement
      in respect of the Affected Transactions to another of its Offices or Affiliates
      so that such Termination Event ceases to exist.

     

    If
      the
      Affected Party is not able to make such a transfer it will give notice to the
      other party to that effect within such 20 day period, whereupon the other party
      may effect such a transfer within 30 days after the notice is given under
      Section 6(b)(i).

     

    
      
        
        

      

      
      

      

        

      

    
    
      
      

    

     

    Any
      such
      transfer by a party under this Section 6(b)(ii) will be subject to and
      conditional upon the prior written consent of the other party, which consent
      will not be withheld if such other party’s policies in effect at such time would
      permit it to enter into transactions with the transferee on the terms
      proposed.

     

    (iii) Two
      Affected Parties.
      If
      an
      Illegality under Section 5(b)(i)(1) or a Tax Event occurs and there are two
      Affected Parties, each party will use all reasonable efforts to reach agreement
      within 30 days after notice thereof is given under Section 6(b)(i) on action
      to
      avoid that Termination Event.

     

    (iv) Right
      to Terminate.
      If:-

     

    (1) a
      transfer under Section 6(b)(ii) or an agreement under Section 6(b)(iii), as
      the
      case may be, has not been effected with respect to all Affected Transactions
      within 30 days after an Affected Party gives notice under Section 6(b)(i);
      or

     

    (2) an
      Illegality under Section 5(b)(i)(2), a Credit Event Upon Merger or an Additional
      Termination Event occurs, or a Tax Event Upon Merger occurs and the Burdened
      Party is not the Affected Party,

     

    either
      party in the case of an Illegality, the Burdened Party in the case of a Tax
      Event Upon Merger, any Affected Party in the case of a Tax Event or an
      Additional Termination Event if there is more than one Affected Party, or the
      party which is not the Affected Party in the case of a Credit Event Upon Merger
      or an Additional Termination Event if there is only one Affected Party may,
      by
      not more than 20 days notice to the other party and provided that the relevant
      Termination Event is then continuing, designate a day not earlier than the
      day
      such notice is effective as an Early Termination Date in respect of all Affected
      Transactions.

     

    (c) Effect
      of Designation.

     

    (i) If
      notice
      designating an Early Termination Date is given under Section 6(a) or (b), the
      Early Termination Date will occur on the date so designated, whether or not
      the
      relevant Event of Default or Termination Event is then continuing.

     

    (ii) Upon
      the
      occurrence or effective designation of an Early Termination Date, no further
      payments or deliveries under Section 2(a)(i) or 2(e) in respect of the
      Terminated Transactions will be required to be made, but without prejudice
      to
      the other provisions of this Agreement. The amount, if any, payable in respect
      of an Early Termination Date shall be determined pursuant to Section
      6(e).

     

    (d) Calculations.

     

    (i) Statement.
      On
      or as
      soon as reasonably practicable following the occurrence of an Early Termination
      Date, each party will make the calculations on its part, if any, contemplated
      by
      Section 6(e) and will provide to the other party a statement (1) showing, in
      reasonable detail, such calculations (including all relevant quotations and
      specifying any amount payable under Section 6(e)) and (2) giving details of
      the
      relevant account to 

     

    
      
        
        

      

      
      

      

        

      

    
    
      
      

    

     

    which
      any
      amount payable to it is to be paid. In the absence of written confirmation
      from
      the source of a quotation obtained in determining a Market Quotation, the
      records of the party obtaining such quotation will be conclusive evidence of
      the
      existence and accuracy of such quotation.

     

    (ii) Payment
      Date.
      An
      amount
      calculated as being due in respect of any Early Termination Date under Section
      6(e) will be payable on the day that notice of the amount payable is effective
      (in the case of an Early Termination Date which is designated or occurs as
      a
      result of an Event of Default and on the day which is two Local Business Days
      after the day on which notice of the amount payable is effective (in the case
      of
      an Early Termination Date which is designated as a result of a Termination
      Event). Such amount will be paid together with (to the extent permitted under
      applicable law) interest thereon (before as well as after judgment) in the
      Termination Currency, from (and including) the relevant Early Termination Date
      to (but excluding) the date such amount is paid, at the Applicable Rate. Such
      interest will be calculated on the basis of daily compounding and the actual
      number of days elapsed.

     

    (e) Payments
      on Early Termination.
      If
      an
      Early Termination Date occurs, the following provisions shall apply based on
      the
      parties’ election in the Schedule of a payment measure, either “Market
      Quotation” or “Loss”, and a payment method, either the “First Method” or the
“Second Method”. If the parties fail to designate a payment measure or payment
      method in the Schedule, it will be deemed that “Market Quotation” or the “Second
      Method”, as the case may be, shall apply. The amount, if any, payable in respect
      of an Early Termination Date and determined pursuant to this Section will be
      subject to any Set-off.

     

    (i) Events
      of Default.
      If
      the
      Early Termination Date results from an Event of Default:-

     

    (1) First
      Method and Market Quotation.
      If
      the
      First Method and Market Quotation apply, the Defaulting Party will pay to the
      Non-defaulting Party the excess, if a positive number, of (A) the sum of the
      Settlement Amount (determined by the Non-defaulting Party) in respect of the
      Terminated Transactions and the Termination Currency Equivalent of the Unpaid
      Amounts owing to the Non-defaulting Party over (B) the Termination Currency
      Equivalent of the Unpaid Amounts owing to the Defaulting Party.

     

    (2) First
      Method and Loss.
      If
      the
      First Method and Loss apply, the Defaulting Party will pay to the Non-defaulting
      Party, if a positive number, the Non-defaulting Party’s Loss in respect of this
      Agreement.

     

    (3) Second
      Method and Market Quotation.
      If the
      Second Method and Market Quotation apply, an amount will be payable equal to
      (A)
      the sum of the Settlement Amount (determined by the Non-defaulting Party) in
      respect of the Terminated Transactions and the Termination Currency Equivalent
      of the Unpaid Amounts owing to the Non-defaulting Party less (B) the Termination
      Currency Equivalent of the Unpaid Amounts owing to the Defaulting Party. If
      that
      amount is a positive number, the Defaulting Party will pay it to the
      Non-defaulting Party; 

     

    
      
        
        

      

      
      

      

        

      

    
    
      
      

    

     

    if
      it is
      a negative number, the Non-defaulting Party will pay the absolute value of
      that
      amount to the Defaulting Party.

     

    (4) Second
      Method and Loss.
      If
      the
      Second Method and Loss apply, an amount will be payable equal to the
      Non-defaulting Party’s Loss in respect of this Agreement. If that amount is a
      positive number, the Defaulting Party will pay it to the Non-defaulting Party;
      if it is a negative number, the Non-defaulting Party will pay the absolute
      value
      of that amount to the Defaulting Party.

     

    (ii) Termination
      Events.
      If
      the
      Early Termination Date results from a Termination Event:-

     

    (1) One
      Affected Party.
      If
      there
      is one Affected Party, the amount payable will be determined in accordance
      with
      Section 6(e)(i)(3), if Market Quotation applies, or Section 6(e)(i)(4), if
      Loss
      applies, except that, in either case, references to the Defaulting Party and
      to
      the Non-defaulting Party will be deemed to be references to the Affected Party
      and the party which is not the Affected Party, respectively, and, if Loss
      applies and fewer than all the Transactions are being terminated, Loss shall
      be
      calculated in respect of all Terminated Transactions.

     

    (2) Two
      Affected Parties.
      If
      there
      are two Affected Parties:-

     

    (A) if
      Market
      Quotation applies, each party will determine a Settlement Amount in respect
      of
      the Terminated Transactions, and an amount will be payable equal to (I) the
      sum
      of (a) one-half of the difference between the Settlement Amount of the party
      with the higher Settlement Amount (“X”) and the Settlement Amount of the party
      with the lower Settlement Amount (“Y”) and (b) the Termination Currency
      Equivalent of the Unpaid Amounts owing to X less (II) the Termination Currency
      Equivalent of the Unpaid Amounts owing to Y; and

     

    (B) if
      Loss
      applies, each party will determine its Loss in respect of this Agreement (or,
      if
      fewer than all the Transactions are being terminated, in respect of all
      Terminated Transactions) and an amount will be payable equal to one-half of
      the
      difference between the Loss of the party with the higher Loss (“X”) and the Loss
      of the party with the lower Loss (“Y”).

     

    If
      the
      amount payable is a positive number, Y will pay it to X; if it is a negative
      number, X will pay the absolute value of that amount to Y.

     

    (iii) Adjustment
      for Bankruptcy.
      In
      circumstances where an Early Termination Date occurs because “Automatic Early
      Termination” applies in respect of a party, the amount determined under this
      Section 6(e) will be subject to such adjustments as are appropriate and
      permitted by law to reflect any payments or deliveries made by one party to
      the
      other under this Agreement (and retained by such other party) during the period
      from the relevant Early Termination Date to the date for payment determined
      under Section 6(d)(ii).

     

    
      
        
        

      

      
      

      

        

      

    
    
      
      

    

     

    (iv) Pre-Estimate.
      The
      parties agree that if Market Quotation applies an amount recoverable under
      this
      Section 6(e) is a reasonable pre-estimate of loss and not a penalty. Such amount
      is payable for the loss of bargain and the loss of protection against future
      risks and except as otherwise provided in this Agreement neither party will
      be
      entitled to recover any additional damages as a consequence of such
      losses.

     

    
      	7.	
              Transfer

            

    

     

    Subject
      to Section 6(b)(ii), neither this Agreement nor any interest or obligation
      in or
      under this Agreement may be transferred (whether by way of security or
      otherwise) by either party without the prior written consent of the other party,
      except that:-

     

    (a) a
      party
      may make such a transfer of this Agreement pursuant to a consolidation or
      amalgamation with, or merger with or into, or transfer of all or substantially
      all its assets to, another entity (but without prejudice to any other right
      or
      remedy under this Agreement); and

     

    (b) a
      party
      may make such a transfer of all or any part of its interest in any amount
      payable to it from a Defaulting Party under Section 6(e).

     

    Any
      purported transfer that is not in compliance with this Section will be
      void.

     

    
      	8.	
              Contractual
                Currency

            

    

     

    (a) Payment
      in the Contractual Currency.
      Each
      payment under this Agreement will be made in the relevant currency specified
      in
      this Agreement for that payment (the “Contractual Currency”). To the extent
      permitted by applicable law, any obligation to make payments under this
      Agreement in the Contractual Currency will not be discharged or satisfied by
      any
      tender in any currency other than the Contractual Currency, except to the extent
      such tender results in the actual receipt by the party to which payment is
      owed,
      acting in a reasonable manner and in good faith in converting the currency
      so
      tendered into the Contractual Currency, of the full amount in the Contractual
      Currency of all amounts payable in respect of this Agreement. If for any reason
      the amount in the Contractual Currency so received falls short of the amount
      in
      the Contractual Currency payable in respect of this Agreement, the party
      required to make the payment will, to the extent permitted by applicable law,
      immediately pay such additional amount in the Contractual Currency as may be
      necessary to compensate for the shortfall. If for any reason the amount in
      the
      Contractual Currency so received exceeds the amount in the Contractual Currency
      payable in respect of this Agreement, the party receiving the payment will
      refund promptly the amount of such excess.

     

    (b) Judgments.
      To
      the
      extent permitted by applicable law, if any judgment or order expressed in a
      currency other than the Contractual Currency is rendered (i) for the payment
      of
      any amount owing in respect of this Agreement, (ii) for the payment of any
      amount relating to any early termination in respect of this Agreement or (iii)
      in respect of a judgment or order of another court for the payment of any amount
      described in (i) or (ii) above, the party seeking recovery, after recovery
      in
      full of the aggregate amount to which such party is entitled pursuant to the
      judgment or order, will be entitled to receive immediately from the other party
      the amount of any shortfall of the Contractual Currency received by such party
      as a consequence of sums paid in such other currency and will refund promptly
      to
      the other party any excess of the 

     

    
      
        
        

      

      
      

      

        

      

    
    
      
      

    

     

    Contractual
      Currency received by such party as a consequence of sums paid in such other
      currency if such shortfall or such excess arises or results from any variation
      between the rate of exchange at which the Contractual Currency is converted
      into
      the currency of the judgment or order for the purposes of such judgment or
      order
      and the rate of exchange at which such party is able, acting in a reasonable
      manner and in good faith in converting the currency received into the
      Contractual Currency, to purchase the Contractual Currency with the amount
      of
      the currency of the judgment or order actually received by such party. The
      term
“rate of exchange” includes, without limitation, any premiums and costs of
      exchange payable in connection with the purchase of or conversion into the
      Contractual Currency.

     

    (c) Separate
      Indemnities.
      To
      the
      extent permitted by applicable law, these indemnities constitute separate and
      independent obligations from the other obligations in this Agreement, will
      be
      enforceable as separate and independent causes of action, will apply
      notwithstanding any indulgence granted by the party to which any payment is
      owed
      and will not be affected by judgment being obtained or claim or proof being
      made
      for any other sums payable in respect of this Agreement.

     

    (d) Evidence
      of Loss.
      For
      the
      purpose of this Section 8, it will be sufficient for a party to demonstrate
      that
      it would have suffered a loss had an actual exchange or purchase been
      made.

     

    
      	9.	
              Miscellaneous

            

    

     

    (a) Entire
      Agreement.
      This
      Agreement constitutes the entire agreement and understanding of the parties
      with
      respect to its subject matter and supersedes all oral communication and prior
      writings with respect thereto.

     

    (b) Amendments.
      No
      amendment, modification or waiver in respect of this Agreement will be effective
      unless in writing (including a writing evidenced by a facsimile transmission)
      and executed by each of the parties or confirmed by an exchange of telexes
      or
      electronic messages on an electronic messaging system.

     

    (c) Survival
      of Obligations.
      Without
      prejudice to Sections 2(a)(iii) and 6(c)(ii), the obligations of the parties
      under this Agreement will survive the termination of any
      Transaction.

     

    (d) Remedies
      Cumulative.
      Except
      as
      provided in this Agreenleiit, the rights, powers, remedies and privileges
      provided in this Agreement are cumulative and not exclusive of any rights,
      powers, remedies and privileges provided by law.

     

    (e) Counterparts
      and Confirmations.

     

    (i) This
      Agreement (and each amendment, modification and waiver in respect of it) may
      be
      executed and delivered in counterparts (including by facsimile transmission),
      each of which will be deemed an original.

     

    (ii) The
      parties intend that they are legally bound by the terms of each Transaction
      from
      the moment they agree to those terms (whether orally or otherwise). A
      Confirmation shall be entered into as soon as practicable and may be executed
      and delivered in counterparts (including by facsimile transmission) or be
      created by an exchange of

     

    
      
        
        

      

      
      

      

        

      

    
    
      
      

    

     

    telexes
      or by an exchange of electronic messages on an electronic messaging system,
      which in each case will be sufficient for all purposes to evidence a binding
      supplement to this Agreement. The parties will specify therein or through
      another effective means that any such counterpart, telex or electronic message
      constitutes a Confirmation.

     

    (f) No
      Waiver of Rights.
      A
      failure
      or delay in exercising any right, power or privilege in respect of this
      Agreement will not be presumed to operate as a waiver, and a single or partial
      exercise of any right, power or privilege will not be presumed to preclude
      any
      subsequent or further exercise, of that right, power or privilege or the
      exercise of any other right, power or privilege.

     

    (g) Headings.
      The
      headings used in this Agreement are for convenience of reference only and are
      not to affect the construction of or to be taken into consideration in
      interpreting this Agreement.

     

    
      	10.	
              Offices;
                Multibranch Parties

            

    

     

    (a) If
      Section 10(a) is specified in the Schedule as applying, each party that enters
      into a Transaction through an Office other than its head or home office
      represents to the other party that, notwithstanding the place of booking office
      or jurisdiction of incorporation or organisation of such party, the obligations
      of such party are the same as if it had entered into the Transaction through
      its
      head or home office. This representation will be deemed to be repeated by such
      party on each date on which a Transaction is entered into.

     

    (b) Neither
      party may change the Office through which it makes and receives payments or
      deliveries for the purpose of a Transaction without the prior written consent
      of
      the other party.

     

    (c) If
      a
      party is specified as a Multibranch Party in the Schedule, such Multibranch
      Party may make and receive payments or deliveries under any Transaction through
      any Office listed in the Schedule, and the Office through which it makes and
      receives payments or deliveries with respect to a Transaction will be specified
      in the relevant Confirmation.

     

    
      	11.	
              Expenses

            

    

     

    A
      Defaulting Party will, on demand, indemnify and hold harmless the other party
      for and against all reasonable out-of-pocket expenses, including legal fees
      and
      Stamp Tax, incurred by such other party by reason of the enforcement and
      protection of its rights under this Agreement or any Credit Support Document
      to
      which the Defaulting Party is a party or by reason of the early termination
      of
      any Transaction, including, but not limited to, costs of
      collection.

     

    
      	12.	
              Notices

            

    

     

    (a) Effectiveness.
      Any
      notice or other communication in respect of this Agreement may be given in
      any
      manner set forth below (except that a notice or other communication under
      Section 5 or 6 may not be given by facsimile transmission or electronic
      messaging system) to the address or number or in accordance with the electronic
      messaging system details provided (see the Schedule) and will be deemed
      effective as indicated:-

     

    
      
        
        

      

      
      

      

        

      

    
    
      
      

    

     

    (i) if
      in
      writing and delivered in person or by courier, on the date it is
      delivered;

     

    (ii) if
      sent
      by telex, on the date the recipient’s answerback is received;

     

    (iii) if
      sent
      by facsimile transmission, on the date that transmission is received by a
      responsible employee of the recipient in legible form (it being agreed that
      the
      burden of proving receipt will be on the sender and will not be met by a
      transmission report generated by the sender’s facsimile machine);

     

    (iv) if
      sent
      by certified or registered mail (airmail, if overseas) or the equivalent (return
      receipt requested), on the date that mail is delivered or its delivery is
      attempted; or

     

    (v) if
      sent
      by electronic messaging system, on the date that electronic message is received,
      unless the date of that delivery (or attempted delivery) or that receipt, as
      applicable, is not a Local Business Day or that communication is delivered
      (or
      attempted) or received, as applicable, after the close of business on a Local
      Business Day, in which case that communication shall be deemed given and
      effective on the first following day that is a Local Business Day.

     

    (b) Change
      of Addresses.
      Either
      party may by notice to the other change the address, telex or facsimile number
      or electronic messaging system details at which notices or other communications
      are to be given to it.

     

    
      	13.	
              Governing
                Law and Jurisdiction

            

    

     

    (a) Governing
      Law.
      This
      Agreement will be governed by and construed in accordance with the law specified
      in the Schedule.

     

    (b) Jurisdiction.
      With
      respect to any suit, action or proceedings relating to this Agreement
      (“Proceedings”), each party irrevocably:-

     

    (i) submits
      to the jurisdiction of the English courts, if this Agreement is expressed to
      be
      governed by English law, or to the non-exclusive jurisdiction of the courts
      of
      the State of New York and the United States District Court located in the
      Borough of Manhattan in New York City, if this Agreement is expressed to be
      governed by the laws of the State of New York; and

     

    (ii) waives
      any objection which it may have at any time to the laying of venue of any
      Proceedings brought in any such court, waives any claim that such Proceedings
      have been brought in an inconvenient forum and further waives the right to
      object, with respect to such Proceedings, that such court does not have any
      jurisdiction over such party.

     

    Nothing
      in this Agreement precludes either party from bringing Proceedings in any other
      jurisdiction (outside, if this Agreement is expressed to be governed by English
      law, the Contracting States, as defined in Section 1(3) of the Civil
      Jurisdiction and Judgments Act 1982 or any modification, extension or
      re-enactment thereof for the time being in force) nor will the bringing of
      Proceedings in any one or more jurisdictions preclude the bringing of
      Proceedings in any other jurisdiction.

     

    
      
        
        

      

      
      

      

        

      

    
    
      
      

    

     

    (c) Service
      of Process.
      Each
      party irrevocably appoints the Process Agent (if any) specified opposite its
      name in the Schedule to receive,
      for
      it
      and on its behalf, service of process in any Proceedings. If for any reason
      any
      party’s Process Agent is unable to act as such, such party will promptly notify
      the other party and within 30 days appoint a substitute process agent acceptable
      to the other party. The parties irrevocably consent to service of process given
      in the manner provided for notices in Section 12. Nothing in this Agreement
      will
      affect the right of either party to serve process in any other manner permitted
      by law.

     

    (d) Waiver
      of Immunities.
      Each
      party irrevocably waives, to the fullest extent permitted by applicable law,
      with respect to itself and its revenues and assets (irrespective of their use
      or
      intended use), all immunity on the grounds of sovereignty or other similar
      grounds from (i) suit, (ii) jurisdiction of any court, (iii) relief by way
      of
      injunction, order for specific performance or for recovery of property, (iv)
      attachment of its assets (whether before or after judgment) and (v) execution
      or
      enforcement of any judgment to which it or its revenues or assets might
      otherwise be entitled in any Proceedings in the courts of any jurisdiction
      and
      irrevocably agrees, to the extent permitted by applicable law, that it will
      not
      claim any such immunity in any Proceedings.

     

    
      	14.	
              Definitions

            

    

     

    As
      used
      in this Agreement:-

     

    “Additional
      Termination Event” has
      the
      meaning specified in Section 5(b). 

     

    “Affected
      Party” has
      the
      meaning specified in Section 5(b).

     

    “Affected
      Transactions”
      means
      (a) with respect to any Termination Event consisting of an Illegality, Tax
      Event
      or Tax Event Upon Merger, all Transactions affected by the occurrence of such
      Termination Event and (b) with respect to any other Termination Event, all
      Transactions.

     

    “Affiliate”
      means,
      subject to the Schedule, in relation to any person, any entity controlled,
      directly or indirectly, by the person, any entity that controls, directly or
      indirectly, the person or any entity directly or indirectly under common control
      with the person. For this purpose, “control” of any entity or person means
      ownership of a majority of the voting power of the entity or
      person.

     

    “Applicable
      Rate”
      means:-

     

    (a) in
      respect of obligations payable or deliverable (or which would have been but
      for
      Section 2(a)(iii)) by a Defaulting Party, the Default Rate;

     

    (b) in
      respect of an obligation to pay an amount under Section 6(e) of either party
      from and after the date (determined in accordance with Section 6(d)(ii)) on
      which that amount is payable, the Default Rate;

     

    (c) in
      respect of all other obligations payable or deliverable (or which would have
      been but for Section 2(a)(iii)) by a Non-defaulting Party, the Non-default
      Rate;
      and

     

    (d) in
      all
      other cases, the Termination Rate.

     

    
      
        
        

      

      
      

      

        

      

    
    
      
      

    

     

    “Burdened
      Party” has
      the
      meaning specified in Section 5(b).

     

    “Change
      In Tax Law” means
      the
      enactment, promulgation, execution or ratification of, or any change in or
      amendment to, any law (or in the application or official interpretation of
      any
      law) that occurs on or after the date on which the relevant Transaction is
      entered into.

     

    “consent” includes
      a consent, approval, action, authorisation, exemption, notice, filing,
      registration or exchange control consent.

     

    “Credit
      Event Upon Merger” has
      the
      meaning specified in Section 5(b).

     

    “Credit
      Support Document” means
      any
      agreement or instrument that is specified as such in this
      Agreement.

     

    “Credit
      Support Provider” has
      the
      meaning specified in the Schedule.

     

    “Default
      Rate” means
      a
      rate per annum equal to the cost (without proof or evidence of any actual cost)
      to the relevant payee (as certified by it) if it were to fund or of funding
      the
      relevant amount plus 1% per annum.

     

    “Defaulting
      Party”
      has the
      meaning specified in Section 6(a).

     

    “Early
      Termination Date” means
      the
      date determined in accordance with Section 6(a) or 6(b)(iv). 

     

    “Event
      of Default” has
      the
      meaning specified in Section 5(a) and, if applicable, in the
      Schedule.

     

    “Illegality”
      has
      the
      meaning specified in Section 5(b).

     

    “lndemnifiable
      Tax”
      means
      any Tax other than a Tax that would not be imposed in respect of a payment
      under
      this Agreement but for a present or former connection between the jurisdiction
      of the government or taxation authority imposing such Tax and the recipient
      of
      such payment or a person related to such recipient (including, without
      limitation, a connection arising from such recipient or related person being
      or
      having been a citizen or resident of such jurisdiction, or being or having
      been
      organised, present or engaged in a trade or business in such jurisdiction,
      or
      having or having had a permanent establishment or fixed place of business in
      such jurisdiction, but excluding a connection arising solely from such recipient
      or related person having executed, delivered, performed its obligations or
      received a payment under, or enforced, this Agreement or a Credit Support
      Document).

     

    “law”
      includes
      any treaty, law, rule or regulation (as modified, in the case of tax matters,
      by
      the practice of any relevant governmental revenue authority) and “lawful” and
“unlawful” will be construed accordingly.

     

    “Local
      Business Day” means,
      subject to the Schedule, a day on which commercial banks are open for business
      (including dealings in foreign exchange and foreign currency deposits) (a)
      in
      relation to any obligation under Section 2(a)(i), in the place(s) specified
      in
      the relevant Confirmation or, if not so specified, as otherwise agreed by the
      parties in writing or determined 

     

    
      
        
        

      

      
      

      

        

      

    
    
      
      

    

     

    pursuant
      to provisions contained, or incorporated by reference, in this Agreement, (b)
      in
      relation to any other payment, in the place where the relevant account is
      located and, if different, in the principal financial centre, if any, of the
      currency of such payment, (c) in relation to any notice or other communication,
      including notice contemplated under Section 5(a)(i), in the city specified
      in
      the address for notice provided by the recipient and, in the case of a notice
      contemplated by Section 2(b), in the place where the relevant new account is
      to
      be located and (d) in relation to Section 5(a)(v)(2), in the relevant locations
      for performance with respect to such Specified Transaction.

     

    “Loss”
      means,
      with respect to this Agreement or one or more Terminated Transactions, as the
      case may be, and a party, the Termination Currency Equivalent of an amount
      that
      party reasonably determines in good faith to be its total losses and costs
      (or
      gain, in which case expressed as a negative number) in connection with this
      Agreement or that Terminated Transaction or group of Terminated Transactions,
      as
      the case may be, including any loss of bargain, cost of funding or, at the
      election of such party but without duplication, loss or cost incurred as a
      result of its terminating, liquidating, obtaining or re-establishing any hedge
      or related trading position (or any gain resulting from any of them). Loss
      includes losses and costs (or gains) in respect of any payment or delivery
      required to have been made (assuming satisfaction of each applicable condition
      precedent) on or before the relevant Early Termination Date and not made,
      except, so as to avoid duplication, if Section 6(e)(i)(1) or (3) or
      6(e)(ii)(2)(A) applies. Loss does not include a party’s legal fees and
      out-of-pocket expenses referred to under Section 11. A party will determine
      its
      Loss as of the relevant Early Termination Date, or, if that is not reasonably
      practicable, as of the earliest date thereafter as is reasonably practicable.
      A
      party may (but need not) determine its Loss by reference to quotations of
      relevant rates or prices from one or more leading dealers in the relevant
      markets.

     

    “Market
      Quotation” means,
      with respect to one or more Terminated Transactions and a party making the
      determination, an amount determined on the basis of quotations from Reference
      Market-makers. Each quotation will be for an amount, if any, that would be
      paid
      to such party (expressed as a negative number) or by such party (expressed
      as a
      positive number) in consideration of an agreement between such party (taking
      into account any existing Credit Support Document with respect to the
      obligations of such party) and the quoting Reference Market-maker to enter
      into
      a transaction (the “Replacement Transaction”) that would have the effect of
      preserving for such party the economic equivalent of any payment or delivery
      (whether the underlying obligation was absolute or contingent and assuming
      the
      satisfaction of each applicable condition precedent by the parties under Section
      2(a)(i) in respect of such Terminated Transaction or group of Terminated
      Transactions that would, but for the occurrence of the relevant Early
      Termination Date, have been required after that date. For this purpose, Unpaid
      Amounts in respect of the Terminated Transaction or group of Terminated
      Transactions are to be excluded but, without limitation, any payment or delivery
      that would, but for the relevant Early Termination Date, have been required
      (assuming satisfaction of each applicable condition precedent after that Early
      Termination Date is to be included. The Replacement Transaction would be subject
      to such documentation as such party and the Reference Market-maker may, in
      good
      faith, agree. The party making the determination (or its agent) will request
      each Reference Market-maker to provide its quotation to the extent reasonably
      practicable as of the same day and time (without regard to different time zones)
      on or as soon as reasonably practicable after the relevant Early Termination
      Date. The day and time as of which those quotations are to be 

     

    
      
        
        

      

      
      

      

        

      

    
    
      
      

    

     

    obtained
      will be selected in good faith by the party obliged to make a determination
      under Section 6(e), and, if each party is so obliged, after consultation with
      the other. If more than three quotations are provided, the Market Quotation
      will
      be the arithmetic mean of the quotations, without regard to the quotations
      having the highest and lowest values. If exactly three such quotations are
      provided, the Market Quotation will be the quotation remaining after
      disregarding the highest and lowest quotations. For this purpose, if more than
      one quotation has the same highest value or lowest value, then one of such
      quotations shall be disregarded. If fewer than three quotations are provided,
      it
      will be deemed that the Market Quotation in respect of such Terminated
      Transaction or group of Terminated Transactions cannot be
      determined.

     

    “Non-default
      Rate” means
      a
      rate per annum equal to the cost (without proof or evidence of any actual cost)
      to the Non-defaulting Party (as certified by it) if it were to fund the relevant
      amount.

     

    “Non-defaulting
      Party” has
      the
      meaning specified in Section 6(a).

     

    “Office”
      means
      a
      branch or office of a party, which may be such party’s head or home
      office.

     

    “Potential
      Event of Default” means
      any
      event which, with the giving of notice or the lapse of time or both, would
      constitute an Event of Default.

     

    “Reference
      Market-makers” means
      four leading dealers in the relevant market selected by the party determining
      a
      Market Quotation in good faith (a) from among dealers of the highest credit
      standing which satisfy all the criteria that such party applies generally at
      the
      time in deciding whether to offer or to make an extension of credit and (b)
      to
      the extent practicable, from among such dealers having an office in the same
      city.

     

    “Relevant
      Jurisdiction” means,
      with respect to a party, the jurisdictions (a) in which the party is
      incorporated, organised, managed and controlled or considered to have its seat,
      (b) where an Office through which the party is acting for purposes of this
      Agreement is located, (c) in which the party executes this Agreement and (d)
      in
      relation to any payment, from or through which such payment is
      made.

     

    “Scheduled
      Payment Date” means
      a
      date on which a payment or delivery is to be made under Section 2(a)(i) with
      respect to a Transaction.

     

    “Set-off” means
      set-off, offset, combination of accounts, right of retention or withholding
      or
      similar right or requirement to which the payer of an amount under Section
      6 is
      entitled or subject (whether arising under this Agreement, another contract,
      applicable law or otherwise) that is exercised by, or imposed on, such
      payer.

     

    “Settlement
      Amount” means,
      with respect to a party and any Early Termination Date, the sum
      of:-

     

    (a) the
      Termination Currency Equivalent of the Market Quotations (whether positive
      or
      negative) for each Terminated Transaction or group of Terminated Transactions
      for which a Market Quotation is determined; and

     

    
      
        
        

      

      
      

      

        

      

    
    
      
      

    

     

    (b) such
      party’s Loss (whether positive or negative and without reference to any Unpaid
      Amounts) for each Terminated Transaction or group of Terminated Transactions
      for
      which a Market Quotation cannot be determined or would not (in the reasonable
      belief of the party making the determination) produce a commercially reasonable
      result.

     

    “Specified
      Entity” has
      the
      meaning specified in the Schedule.

     

    “Specified
      Indebtedness” means,
      subject to the Schedule, any obligation (whether present or future, contingent
      or otherwise, as principal or surety or otherwise) in respect of borrowed
      money.

     

    “Specified
      Transaction” means,
      subject to the Schedule, (a) any transaction (including an agreement with
      respect thereto) now existing or hereafter entered into between one party to
      this Agreement (or any Credit Support Provider of such party or any applicable
      Specified Entity of such party) and the other party to this Agreement (or any
      Credit Support Provider of such other party or any applicable Specified Entity
      of such other party) which is a rate swap transaction, basis swap, forward
      rate
      transaction, commodity swap, commodity option, equity or equity index swap,
      equity or equity index option, bond option, interest rate option, foreign
      exchange transaction, cap transaction, floor transaction, collar transaction,
      currency swap transaction, cross-currency rate swap transaction, currency option
      or any other similar transaction (including any option with respect to any
      of
      these transactions), (b) any combination of these transactions and (c) any
      other
      transaction identified as a Specified Transaction in this Agreement or the
      relevant confirmation.

     

    “Stamp
      Tax” means
      any
      stamp, registration, documentation or similar tax.

     

    “Tax”
      means any
      present or future tax, levy, impost, duty, charge, assessment or fee of any
      nature (including interest, penalties and additions thereto) that is imposed
      by
      any government or other taxing authority in respect of any payment under this
      Agreement other than a stamp, registration, documentation or similar
      tax.

     

    “Tax
      Event” has
      the
      meaning specified in Section 5(b).

     

    “Tax
      Event Upon Merger” has
      the
      meaning specified in Section 5(b).

     

    “Terminated
      Transactions” means
      with respect to any Early Termination Date (a) if resulting from a Termination
      Event, all Affected Transactions and (b) if resulting from an Event of Default,
      all Transactions (in either case) in effect immediately before the effectiveness
      of the notice designating that Early Termination Date (or, if “Automatic Early
      Termination” applies, immediately before that Early Termination
      Date).

     

    “Termination
      Currency”
      has
      the
      meaning specified in the Schedule.

     

    “Termination
      Currency Equivalent” means,
      in
      respect of any amount denominated in the Termination Currency, such Termination
      Currency amount and, in respect of any amount denominated in a currency other
      than the Termination Currency (the “Other Currency”), the amount in the
      Termination Currency determined by the party making the relevant determination
      as being required to purchase such amount of such Other Currency as at the
      relevant Early 

     

    
      
        
        

      

      
      

      

        

      

    
    
      
      

    

     

    Termination
      Date, or, if the relevant Market Quotation or Loss (as the case may be), is
      determined as of a later date, that later date, with the Termination Currency
      at
      the rate equal to the spot exchange rate of the foreign exchange agent (selected
      as provided below) for the purchase of such Other Currency with the Termination
      Currency at or about 11:00 a.m. (in the city in which such foreign exchange
      agent is located) on such date as would be customary for the determination
      of
      such a rate for the purchase of such Other Currency for value on the relevant
      Early Termination Date or that later date. The foreign exchange agent will,
      if
      only one party is obliged to make a determination under Section 6(e), be
      selected in good faith by that party and otherwise will be agreed by the
      parties.

     

    “Termination
      Event” means
      an
      Illegality, a Tax Event or a Tax Event Upon Merger or, if specified to be
      applicable, a Credit Event Upon Merger or an Additional Termination
      Event.

     

    “Termination
      Rate” means
      a rate
      per
      annum equal to the arithmetic mean of the cost (without proof or evidence of
      any
      actual cost) to each party (as certified by such party) if it were to fund
      or of
      funding such amounts.

     

    “Unpaid
      Amounts” owing
      to
      any party means, with respect to an Early Termination Date, the aggregate of
      (a)
      in respect of all Terminated Transactions, the amounts that became payable
      (or
      that would have become payable but for Section 2(a)(iii)) to such party under
      Section 2(a)(i) on or prior to such Early Termination Date and which remain
      unpaid as at such Early Termination Date and (b) in respect of each Terminated
      Transaction, for each obligation under Section 2(a)(i) which was (or would
      have
      been but for Section 2(a)(iii)) required to be settled by delivery to such
      party
      on or prior to such Early Termination Date and which has not been so settled
      as
      at such Early Termination Date, an amount equal to the fair market value of
      that
      which was (or would have been) required to be delivered as of the originally
      scheduled date for delivery, in each case together with (to the extent permitted
      under applicable law) interest, in the currency of such amounts, from (and
      including) the date such amounts or obligations were or would have been required
      to have been paid or performed to (but excluding) such Early Termination Date,
      at the Applicable Rate. Such amounts of interest will be calculated on the
      basis
      of daily compounding and the actual number of days elapsed. The fair market
      value of any obligation referred to in clause (b) above shall be reasonably
      determined by the party obliged to make the determination under Section 6(e)
      or,
      if each party is so obliged, it shall be the average of the Termination Currency
      Equivalents of the fair market values reasonably determined by both
      parties.

     

    IN
      WITNESS WHEREOF the
      parties have executed this document on the respective dates specified below
      with
      effect from the date specified on the first page of this document.

     

    
      	
              Marathassa
                Shipping Corporation

            	
              The
                Royal Bank of Scotland plc

            
	
              (Name
                of Party)

            	
              (Name
                of Party)

            
	
              By: 

            	 	 	
              By: 

            	 
	
               Name:

               Title:

               Date:

            	
               Name:

               Title:

               Date:

            

    

     

    
      
        
        

      

      
      

      

        

      

    
    
      
      

    

     

    THIS
      IS AN IMPORTANT DOCUMENT: YOU SHOULD TAKE INDEPENDENT
LEGAL
      ADVICE BEFORE SIGNING AND SIGN ONLY IF YOU WANT TO BE
LEGALLY
      BOUND BY THE TERMS OF THE DOCUMENT

     

    SCHEDULE

     

    to
      the

     

    Master
      Agreement

     

    dated
      as
      of                                 2005
      between

    

    The
      Royal Bank of Scotland plc (“Party
      A”)

    and

    Marathassa
      Shipping Corporation (“Party
      B”)

     

    Part
      1

     

    Termination
      Provisions

     

    
      	(a)	
              “Specified
                Entity” means
                in relation to Party A for the purpose
                of:-

            

    

     

    
      	Section
              5(a)(v), (vi) and (vii)	) Not
              applicable
	Section
              5(b)(iv),	) 

    

     

    and
      in
      relation to Party B for the purpose of:-

     

    
      
        	Section
                5(a)(v),	)
	Section
                5(a)(vi),	) Any
                Affiliate of Party B
	Section
                5(a)(vii),	)
	Section
                5(b)(iv),	)

      

    

     

    
      	
              (b)

            	
              “Specified
                Transaction” will
                have the meaning specified in Section 14 of this
                Agreement.

            

    

     

    
      	
              (c)

            	
              The
                “Cross
                Default” provisions
                of Section 5(a)(vi) will not apply to Party
                A.

            

    

    will
      apply to Party B.

     

    If
      such
      provisions apply:-

     

    “Specified
      Indebtedness” will
      have
      the meaning specified in Section 14.

     

    “Threshold
      Amount” means,
      in
      relation to Party B, zero (0).

     

    
      	
              (d)

            	
              The
                “Credit
                Event Upon Merger” provisions
                of Section 5(b)(iv) will apply to Party A and will apply to Party
                B.

            

    

     

    
      
        
        

      

      1

      

        

      

    
    
      
      

    

     

    
      	
              (e)

            	
              The
                “Automatic
                Early Termination” provision
                of Section 6(a) will not apply to Party A and will not apply to Party
                B.

            

    

     

    
      	
              (f)

            	
              Payments
                on Early Termination. For
                the purpose of Section 6(e) of this
                Agreement:-

            

    

     

    
      	
            	(i)	
              Market
                Quotation will apply.

            

    

    
      	
            	(ii)	
              The
                Second Method will apply.

            

    

     

    
      	
              (g)

            	
              “Termination
                Currency” means
                such currency of any Transaction as may be selected by the party
                which is
                not the Defaulting Party or the Affected Party, as the case may be,
                if
                such currency is freely available and convertible or, if there are
                two
                Affected Parties such currency as may be agreed between the parties
                if
                such currency is freely available and, otherwise, United States
                Dollars.

            

    

     

    
      	
              (h)

            	
              Additional
                Termination Event
                will apply.

            

    

     

    The
      following events shall constitute Additional Termination Events in relation
      to
      Party B only:-

     

    (a) “Any
      circumstances arise which, in the opinion of Party A, give reasonable grounds
      for belief that Party B or any Credit Support Provider of Party B may not,
      or
      may be unable to, perform its respective obligations under this Agreement or
      the
      Credit Support Document.”

     

    (b) “Party
      B
      or any Credit Support Provider of Party B fails to give adequate assurances
      of
      its ability to perform its respective obligations under this Agreement or any
      Credit Support Document on or before the third Business Day after a written
      request to do so has been given to Party B by Party A.”

     

    For
      the
      purpose of the foregoing Additional Termination Events, Party B shall be the
      Affected Party.

     

    Part
      2

     

    Tax
      Representations

     

    
      	
              (a)

            	
              Payer
                Representations.
                For
                the purpose of Section 3(e) of this Agreement, Party A and Party
                B will
                both make the following representation:-

            

    

     

    It
      is not
      required by any applicable law, as modified by the practice of any relevant
      governmental revenue authority, of any Relevant Jurisdiction to make any
      deduction or withholding for or on account of any Tax from any payment (other
      than interest under Section 2(e), 6(d)(ii) or 6(e) of this Agreement) to be
      made
      by it to the other party under this Agreement.

     

    In
      making
      this representation, it may rely on:-

     

    
      
        
        

      

      2

      

        

      

    
    
      
      

    

     

    
      	 	
              (i)

            	
              the
                accuracy of any representations made by the other party pursuant
                to
                Section 3(f) of this Agreement;

            

    

     

    
      	 	
              (ii)

            	
              the
                satisfaction of the agreement contained in Section 4(a)(i) or 4(a)(iii)
                of
                this Agreement and the accuracy and effectiveness of any document
                provided
                by the other party pursuant to Section 4(a)(i) or 4(a)(iii) of this
                Agreement; and

            

    

     

    
      	 	
              (iii)

            	
              the
                satisfaction of the agreement of the other party contained in Section
                4(d)
                of this Agreement;

            

    

     

    provided
      that
      it
      shall not be a breach of this representation where reliance is placed on clause
      (ii) and the other party does not deliver a form or document under Section
      4(a)(iii) by reason of material prejudice to its legal or commercial
      position.

     

    
      	
              (b)

            	
              Payee
                Representations.
                For
                the purpose of Section 3(f) of this
                Agreement:-

            

    

     

    Party
      A
      and Party B make no representation.

     

    Part
      3

     

    Agreement
      to Deliver Documents

     

    For
      the
      purpose of Sections 4(a)(i) and (ii) of this Agreement, each party agrees to
      deliver the following documents, as applicable:-

     

    
      	
              (a)

            	
              Tax
                forms, documents or certificates to be delivered:- Not
                applicable

            

    

     

    
      	
              (b)

            	
              Other
                documents to be delivered where relevant
                are:-

            

    

     

    
      	
              Party
                required
to deliver
document

            	 	
              Form/Document/
Certificate

            	 	
              Date
                by which
to
                be delivered

            	 	
              Covered
                by
Section 3(d)
Representation

            
	 	 	 	 	 	 	 
	
              Party
                A /
Party
                B

               

            	 	
              Such
                evidence of the due authorisation of the person(s) signing this
                Agreement and each Confirmation on its behalf as either Party may
                reasonably request

               

            	 	
              Date
                of execution
of
                this Agreement

               

            	 	
              Yes

               

            
	
              Party
                B

               

            	 	
              A
                copy of the Memorandum and Articles of Association and Certificate
                of
                Incorporation (or other constitutive documents) of Party B

            	 	
              Date
                of execution

              of
                this Agreement

               

            	 	
              Yes

               

            

    

     

    
      
        
        

      

      3

      

        

      

    
    
      
      

    

    

    
      	
              Party
                B

               

            	 	
              A
                copy of the resolution of the board of directors of this Agreement
                of
                Party B approving this Agreement and the Transactions contemplated
                hereby
                and authorising a specified person or persons to execute this Agreement
                and any Confirmation on behalf of Party B

               

            	 	
              Date
                of execution

              of
                this Agreement

               

            	 	
              Yes

               

            
	
              Party
                B

               

            	 	
              Copies
                of such statutory and/or regulatory consents, of this Agreement approvals
                and authorisations as may be necessary for Party B to enter into
                this
                Agreement and the Transactions contemplated hereby

               

            	 	
              Date
                of execution

              of
                this Agreement

               

            	 	
              Yes

               

            
	
              Party
                B

            	 	
              Confirmation
                in form and substance satisfactory to of this Agreement Party A that
                all
                conditions precedent relating to the Loan Facility (as defined in
                Section
                14 pursuant to Part 5(e) of the Schedule to this Agreement) have
                been met
                in full (as set out in clause 9 of the Loan Facility)

               

            	 	
              Date
                of execution

              of
                this Agreement

               

            	 	
              Yes

               

            
	
              Party
                B

            	 	
              The
                Credit Support Documents referred to of this Agreement in Part 4(f)
                of the
                Schedule to this Agreement duly executed by the parties
                thereto

               

            	 	
              Date
                of execution

              of
                this Agreement

               

            	 	
              Yes

               

            
	
              Party
                B

            	 	
              Legal
                opinion(s) in form and substance satisfactory of this Agreement to
                Party A
                from solicitor(s)/law firm(s) approved by Party A

            	 	
              Date
                of execution

              of
                this Agreement

               

            	 	
              Yes

               

            

    

     

    
      
        
        

      

      4

      

        

      

    
    
      
      

    

     

    
      	
              Party
                B

            	 	
              A
                copy of the written acceptance by Party B’s Process Agent (as defined in
                Part 4(b) of the Schedule to this Agreement) of its appointment to
                receive
                for Party B and on its behalf service of process in any Proceedings
                under
                this Agreement

               

            	 	
              Date
                of execution

              of
                this Agreement

               

            	 	
              Yes

               

            
	
              Party
                B

            	 	
              The
                annual financial statements of Party B

               

            	 	
              Upon
                demand in respect of those which became publicly available prior
                to the
                date of this Agreement and, in respect of those statements, which
                are not
                publicly available as at the date hereof, as soon as possible and,
                in any
                event, within 120 days of the end of Party B’s financial year (or as soon
                as practicable after becoming publicly available)

               

            	 	
              Yes

               

            
	
              Party
                B

            	 	
              A
                copy of the Memorandum and Articles of Association and Certificate
                of
                Incorporation (or other constitutive documents) of each Credit Support
                Provider of Party B

               

            	 	
              Date
                of execution

              of
                this Agreement

               

            	 	
              Yes

               

            
	
              Party
                B

            	 	
              A
                copy of the resolution of the board of directors of this Agreement
                of each
                Credit Support Provider of Party B approving the Credit Support
                Document(s) and authorising a specified person or persons to execute
                the
                Credit Support Document(s) on its behalf 

            	 	
              Date
                of execution

              of
                this Agreement

               

            	 	
              Yes

               

            

    

     

    
      
        
        

      

      5

      

        

      

    
    
      
      

    

     

    
      	
              Party
                B

            	 	
              Copies
                of such statutory and/or regulatory consents, of this Agreement approvals
                and authorisations as may be necessary for each Credit Support Provider
                of
                Party B to execute the Credit Support Document(s)

               

            	 	
              Date
                of execution

              of
                this Agreement

               

            	 	
              Yes

               

            
	
              Party
                B

            	 	
              The
                annual financial statements (where produced) of each Credit Support
                Provider of Party B

               

            	 	
              Upon
                demand in respect of those which became publicly available prior
                to the
                date of this Agreement and, in respect of those statements, which
                are not
                publicly available as at the date hereof, as soon as possible and,
                in any
                event, within 120 days of the end of each Credit Support Provider
                of Party
                B’s financial year (or as soon as practicable after becoming publicly
                available)

            	 	
              Yes

               

            

    

    

    Any
      copy
      documents required to be delivered by Party B and/or its Credit Support Provider
      shall be certified by a competent senior official of Party B or the respective
      Credit Support Provider of Party B, as the case may be, as being correct,
      complete and in full force and effect as at a date no earlier than the date
      of
      this Agreement.

     

    Part
      4

     

    Miscellaneous

     

    
      	(a)	
              Addresses
                for Notices.
                For
                the purpose of Section 12(a) of this
                Agreement:-

            

    

     

    Notices
      or communications to Party A (other than for section 5 or 6 Notices) to be
      sent
      to the address listed in the Confirmation provided by Party A or if prior to
      this Confirmation being received to:-

     

    
      
        
        

      

      6

      

        

      

    
    
      
      

    

     

    
      	
              Address:

            	
              c/o
                RBS Financial Markets 

              280
                Bishopsgate

              London
                EC2M 4RB

              United
                Kingdom

            
	 	 
	
              Attention:
                

              Fax:

              Telephone:

            	
              Swaps
                Administration

              +44
                207 085 5050

              +44
                207 087 5000

            

    

    

    Address
      for notices or communications to Party A for Section 5 or 6:

     

    
      	
              Address:

            	
              c/o
                RBS Financial Markets

            
	 	
              135 Bishopsgate, London, EC2M 3UR

            
	 	 
	
              Attention:

            	
              Head
                of Legal, Financial Markets

            
	
              Telephone
                No:

            	
              +44
                207 085 8411

            

    

    

    Address
      for notices or communications to Party B:-

     

    Marathassa
      Shipping Corporation

    

    
      	
              Address:

            	
              32
                Karamanli Avenue

            
	 	
              16605
                Voula

            
	 	
              Athens,
                Greece

            
	 	 
	
              Attention:

            	
              George
                Papadopoulos

            
	
              Facsimile
                No.:

            	
              0030
                210 895 6900

            

    

     

    
      	(b)	
              Process
                Agent. For
                the purpose of Section 13(c) of this
                Agreement:-

            

    

     

    Party
      A
      does not appoint a Process Agent.

    Party
      B
      appoints as its Process Agent: Cheeswrights, 10 Philpot Lane, London EC3M 8BR,
      England.

     

    
      	(c)	
              Offices.
                The
                provisions of Section 10(a) will not apply to this
                Agreement.

            

    

     

    
      	(d)	
              Multibranch
                Party. For
                the purpose of Section 10(c) of this
                Agreement:-

            

    

     

    Neither
      Party A nor Party B is a Multibranch Party.

     

    
      	
              (e)

            	
              Calculation
                Agent The
                Calculation Agent is Party A unless otherwise specified in a Confirmation
                in relation to the relevant
                Transaction.

            

    

     

    
      	
              (f)

            	
              Credit
                Support Document. Details
                of any Credit Support Document(s):-

            

    

     

    
      
        
        

      

      7

      

        

      

    
    
      
      

    

     

    Party
      B’s
      obligations to Party A under this Agreement and all Transactions contemplated
      hereby are secured by the Security Documents (as such term is defined in the
      Loan Facility) each of which shall be deemed to be Credit Support Documents
      for
      the purpose of this Agreement (and for the avoidance of doubt “Credit Support
      Document” in relation to Party B shall also include any other documents executed
      in accordance with clauses 5.3.2 and 5.3.5 of the Loan Facility).

     

    
      	
              (g)

            	
              Credit
                Support Provider. Credit
                Support Provider does not apply in relation to Party
                A.

            

    

     

    Credit
      Support Provider(s) means, in relation to Party B, each party (other than Party
      A) that executes and/or has obligations under the Security Documents (including
      without limit the Manager) (as such terms are defined in the Loan Facility)
      and
      also means any person that provides the other documents executed in accordance
      with clauses 5.3.2 and 5.3.5 of the Loan Facility.

     

    
      	
              (h)

            	
              Governing
                Law.
                This
                Agreement will be governed by and construed in accordance with English
                law.

            

    

     

    
      	
              (i)

            	
              Netting
                of Payments.
                Subparagraph
                (ii) of Section 2(c) of this Agreement will apply to all Transactions
                with
                effect from the date of this Agreement, except as mutually agreed
                by Party
                A and Party B and detailed in the relevant Confirmation(s) evidencing
                a
                Transaction or group(s) of Transactions, as the case may
                be.

            

    

     

    
      	
              (j)

            	
              “Affiliate” will
                have the meaning specified in Section 14 of this
                Agreement.

            

    

     

    Part
      5

     

    Other
      Provisions

     

    
      	
              (a)

            	
              Representations.
                Section
                3(a) of this Agreement is hereby amended by, firstly, the deletion
                of the
                word “and” at the end of subsection (iv); secondly, the substitution of a
                semi-colon for the full-stop at the end of subsection (v); and, thirdly,
                the addition of the following
                subsections:-

            

    

     

    
      	 	
              “(vi)

            	
              Capacity.
                It
                is acting as principal (and not as agent or any other capacity, fiduciary
                or otherwise) and

            

    

     

    
      	 	
              (vii)

            	
              Physical
                Delivery. In
                respect of any physically-settled Transactions, it will, at the time
                of
                delivery, be the legal and beneficial owner, free of liens and
                encumbrances, of any securities or commodities, which it delivers
                to the
                other party.”

            

    

     

    
      	
              (b)

            	
              Relationship
                Between Parties. Each
                party will be deemed to represent to the other party on the date
                on which
                it enters into a Transaction that (absent a written agreement between
                the
                parties that expressly imposes affirmative obligations to the contrary
                for
                that Transaction):-

            

    

     

    
      
        
        

      

      8

      

        

      

    
    
      
      

    

     

    
      	 	
              (i)

            	
              Non-Reliance.
                It
                is acting for its own account, and it has made its own independent
                decisions to enter into that Transaction and as to whether that
                Transaction is appropriate or proper for it based upon its own judgement
                and upon advice from such advisors as it has deemed necessary. It
                is not
                relying on any communication (written or oral) of the other party
                as
                investment advice or as a recommendation to enter into that Transaction;
                it being understood that information and explanations related to
                the terms
                and conditions of a Transaction shall not be considered investment
                advice
                or a recommendation to enter into that Transaction. No communication
                (written or oral) received from the other party shall be deemed to
                be an
                assurance or guarantee as to the expected results of that
                Transaction.

            

    

     

    
      	 	
              (ii)

            	
              Assessment
                and Understanding.
                It
                is capable of assessing the merits of and understanding (on its own
                behalf
                or through independent professional advice), and understands and
                accepts,
                the terms, conditions and risks of that Transaction. It is also capable
                of
                assuming, and assumes, the risks of that
                Transaction.

            

    

     

    
      	 	
              (iii)

            	
              Status
                of Parties.
                The
                other party is not acting as a fiduciary for or an adviser to it
                in
                respect of that Transaction.

            

    

     

    
      	(c)	
              Set-off.
                The
                following provision is incorporated as Section 6(f) of this
                Agreement:

            

    

     

    
      	 	
              “6(f)

            	
              Any
                amount (the “Early Termination Amount”) payable to one party (the Payee)
                by the other party (the Payer) under Section 6(e), in circumstances
                where
                there is a Defaulting Party or one Affected Party, will, at the option
                of
                the party (“X”) other than the Defaulting Party or the Affected Party (and
                without prior notice to the Defaulting Party or the Affected Party),
                be
                reduced by its set-off against any amount(s) (the “Other Agreement
                Amount”) payable (whether at such time or in the future or upon the
                occurrence of a contingency) by the Payee to the Payer (irrespective
                of
                the currency, place of payment or booking office of the obligation)
                under
                any other agreement(s) between the Payee and the Payer or instrument(s)
                or
                undertaking(s) issued or executed by one party to, or in favour of,
                the
                other party (and the Other Agreement Amount will be discharged promptly
                and in all respects to the extent it is so set-off). X will give
                notice to
                the other party of any set-off effected under this Section
                6(f).

            

    

     

    For
      this
      purpose, either the Early Termination Amount or the Other Agreement Amount
      (or
      the relevant portion of such amounts) may be converted by X into the currency
      in
      which the other is denominated at the rate of exchange at which such party
      would
      be able, acting in a reasonable manner and in good faith, to purchase the
      relevant amount of such currency.

     

    If
      an
      obligation is unascertained, X may in good faith estimate that obligation and
      set-off in respect of the estimate, subject to the relevant party accounting
      to
      the other when the obligation is ascertained.

     

    
      
        
        

      

      9

      

        

      

    
    
      
      

    

     

    Nothing
      herein shall be effective to create a charge or other security interest. In
      addition, the right of set-off detailed herein shall be without prejudice,
      and
      in addition, to any right of set-off, combination of accounts, lien or other
      right to which any party is, at any time, otherwise entitled (whether by
      operation of law, contract or otherwise).”

     

    
      	
              (d)

            	
              Recording
                of Conversations.
                Each
                party to this Agreement acknowledges and agrees to the tape recording
                of
                conversations between the parties to this Agreement whether by one
                or
                other or both the parties.

            

    

     

    
      	
              (e)

            	
              Loan
                Facility.
                Section
                14 of this Agreement is hereby amended by the incorporation of the
                following Definition:-

            

    

     

    ““Loan
      Facility” means
      the
      loan facility of Twenty eight million Dollars ($28,000,000) made available
      to
      Party B (as borrower) by Party A (as lender) evidenced by a loan agreement
      dated            2005.”

     

    All
      terms
      and expressions incorporated into this Agreement, which are defined in the
      Loan
      Facility, shall have the same meaning, mutatis mutandis, when used in this
      Agreement.

     

    
      	
              (f)

            	
              Security.
                Party
                B irrevocably and unconditionally undertakes and confirms to Party
                A that
                the obligations to Party A by Party B pursuant to this Agreement
                shall be
                secured by the Security Documents as defined in the Loan
                Facility.

            

    

     

    
      	
              (g)

            	
              Additional
                Representations.
                Without
                prejudice to Part 5(a) of the Schedule to this Agreement, in addition
                to
                the Representations made by each party pursuant to Section 3 of this
                Agreement, Party B also makes to Party A the representations and
                warranties set out in clause 8 of the Loan Facility, which clause
                shall be
                incorporated, mutatis mutandis, into this Agreement as if set out
                in this
                Agreement in full and which representations and warranties will be
                deemed
                to be repeated by Party B on each Effective Date and each Scheduled
                Payment Date in respect of a
                Transaction.

            

    

     

    
      	
              (h)

            	
              Default
                under Loan Facility.
                In
                addition to the Events of Default set out in Section 5(a) of this
                Agreement, in relation to Party B only, the occurrence or existence
                of any
                of the events or circumstances included as an “Event of Default” in clause
                11 of the Loan Facility (whether or not the Loan Facility at the
                time of
                any such occurrence or existence is still in force and effect or
                has been
                terminated or amended or the indebtedness owed by Party B to Party
                A under
                the Loan Facility has been repaid in full) shall constitute an Event
                of
                Default under this Agreement and Party B shall be the Defaulting
                Party,
                such that the provisions of the aforementioned clause 11 of the Loan
                Facility shall be incorporated, mutatis mutandis, into this Agreement
                as
                if set out in this Agreement in
                full.

            

    

     

    For
      the
      avoidance of doubt, if an “Event of Default” as defined in the Loan Facility
      occurs which would not (but for the provisions of the preceding paragraph of
      this paragraph (h)) otherwise be an Event of Default (as defined in this
      Agreement) under any corresponding sub-section of Section 5(a) of this
      Agreement, it shall nevertheless be an 

     

    
      
        
        

      

      10

      

        

      

    
    
      
      

    

     

    Event
      of
      Default for the purposes of this Agreement by virtue of the preceding paragraph
      of this paragraph (h).

     

    Furthermore,
      all of the covenants, agreements, obligations and undertakings of Party B in
      the
      Loan Facility (the “Undertakings”), including (without limitation) those set out
      in clauses 8 and 9 of the Loan Facility, shall be deemed to form part of this
      Agreement as if set out in full in this Agreement so that:-

     

    
      	 	
              (i)

            	
              during
                such time as any indebtedness owed by Party B to Party A under the
                Loan
                Facility remains outstanding, Party B undertakes with Party A to
                comply
                with the Undertakings (subject to all grace periods, conditions,
                provisions for consents and/or waivers in respect of the Undertakings
                provided for in the Loan Facility);
                and

            

    

     

    
      	 	
              (ii)

            	
              at
                any time after all such indebtedness under the Loan Facility has
                been
                repaid or prepaid in full, the Undertakings shall, mutatis mutandis,
                take
                effect as Undertakings of Party B directly in favour of Party A pursuant
                to this Agreement.

            

    

     

    For
      this
      purpose, all terms and expressions in the Undertakings, which are defined in
      the
      Loan Facility, shall have the same meanings, mutatis mutandis, when incorporated
      into this Agreement. The incorporation of the Undertakings and other provisions
      of the Loan Facility into this Agreement, as aforesaid, shall remain effective
      notwithstanding that the Loan Facility shall be terminated or, for any reason,
      shall cease to have effect or shall be amended or that all indebtedness under
      the Loan Facility has been repaid or prepaid in full.

     

    
      	
              (i)

            	
              Interest
                Periods under the Loan Facility.
                In the event that the parties enter into a Transaction for the specific
                purpose of hedging (either in whole or in part) Party B’s indebtedness to
                Party A under the Loan Facility, it is hereby agreed that interest
                periods
                under the Loan Facility shall be of the same duration as Calculation
                Periods in respect of the relevant Transaction, such that interest
                payment
                dates under the Loan Facility shall coincide in all respects with
                Payment
                Dates in respect of that Transaction. For this purpose, both parties
                agree
                that payments due to or from each other pursuant to the relevant
                Transaction may (if Party A so determines at its sole discretion)
                be set
                off against payments due to or from each other pursuant to the Loan
                Facility.

            

    

     

    Furthermore,
      whilst it is the intention of both parties that floating interest payments
      in
      respect of a Transaction payable by Party A to Party B, as aforementioned,
      shall
      always match (so far as reasonably possible) the interest rate payments (less
      the applicable margin) due under the whole or a particular part of the Loan
      Facility by Party B to Party A, it is accepted and agreed by Party B that the
      conventions and practices in the London Swap Market may be different to those
      in
      the London Interbank Market and, in this connection, Party A shall only be
      liable to pay the floating rate established in respect of a Transaction
      notwithstanding that it may not equate exactly to the interest rate (less the
      applicable margin) payable by Party B under the Loan Facility and Party B shall
      remain liable for meeting its interest payment obligations in accordance with
      the terms of the Loan Facility.

     

    
      
        
        

      

      11

      

        

      

    
    
      
      

    

     

    Any
      specified provisions relating to the determination of interest rates in the
      light of the foregoing paragraph shall be detailed in the Confirmation
      evidencing a particular Transaction.

     

    
      	
              (j)

            	
              Party
                A and Party B agree that, in certain circumstances referred to in
                the Loan
                Facility including, without limit, clause 5.3, the obligations of
                Party A
                and Party B under this Agreement shall be recalculated in accordance
                with
                the provisions thereof.

            

    

     

    
      	
              (k)

            	
              2000
                ISDA Definitions.
                The
                2000 Definitions published by ISDA (the “Definitions”) are incorporated by
                reference herein.

            

    

     

    Any
      terms
      used and not otherwise defined herein which are contained in the Definitions
      shall have the meaning set forth therein.

     

    
      	
              (l)

            	
              Contracts
                (Rights of Third Parties) Act 1999.
                No term of this Agreement is enforceable by a person who is not a
                party to
                it.

            

    

     

    
      
        
        

      

      12

      

        

      

    
    
      
      

    

    Schedule
      10

     

    Form
      of Master Agreement Security Deed

     

    
      
        
        

      

      13

      

        

      

    
    
      
      

    

     

    Private
      & Confidential

     

     

    
          Dated                            2005  

    

     

    
      
        	 	
                MARATHASSA SHIPPING CORPORATION

              	 	
                (1)

              
	 	 	 	 
	 	
                and

              	 	 
	 	 	 	 
	 	
                THE
                  ROYAL BANK OF SCOTLAND plc

              	 	(2)

      

    

    
    

    
      

    

     

    MASTER
      AGREEMENT SECURITY DEED

     

    
      
 

    

     

    
      
        
        

      

      1

      

        

      

    
    
      
      

    

     

    Contents

     

    
      	
              Clause

            	
              Page

            
	 	 	 
	
              1

            	
              Definitions

            	
              1

            
	 	 	 
	
              2

            	
              Restrictions

            	
              3

            
	 	 	 
	
              3

            	
              First
                fixed charge

            	
              3

            
	 	 	 
	
              4

            	
              Further
                documentation etc

            	
              3

            
	 	 	 
	
              5

            	
              Representations

            	
              4

            
	 	 	 
	
              6

            	
              Notices

            	
              5

            
	 	 	 
	
              7

            	
              Supplemental

            	
              5

            
	 	 	 
	
              8

            	
              Law
                and jurisdiction

            	
              5

            

    

     

    
      
        
        

      

      2

      

        

      

    
    
      
      

    

    
THIS
      SECURITY DEED
      is made
      on the day
      of  2005
      BETWEEN:

     

    
      	
              (1)

            	
              MARATHASSA
                SHIPPING CORPORATION,
                a
                company incorporated in the Republic of Liberia having its registered
                office at 80 Broad Street, Monrovia, Liberia (the “Owner”);
                and

            

    

     

    
      	
              (2)

            	
              THE
                ROYAL BANK OF SCOTLAND plc,
                a
                company incorporated in Scotland whose registered office is at 36
                St.
                Andrew Square, Edinburgh EH2 2YB, Scotland, acting for the purposes
                of
                this Deed through its branch at The Shipping Business Centre, 5-10
                Great
                Tower Street, London, EC3P 3HX, England (the “Lender”).

            

    

     

    WHEREAS

     

    
      	
              (A)

            	
              By
                a loan agreement
                dated                    ,
                2005 and made between (i) the Owner as borrower and (ii) the Lender
                as
                lender (the “Loan
                Agreement”),
                the Lender agreed to make available to the Owner upon the terms and
                conditions therein described a multicurrency loan of up to Twenty
                eight
                million Dollars ($28,000,000) or the Equivalent Amount in an Optional
                Currency or Optional Currencies;

            

    

     

    
      	(B)	
              The
                Owner has entered into or may enter into one or more Transactions
                (as such
                term is defined in the 1992 ISDA Master Agreement dated ,
                2005 between the Owner and the Lender (the “Master
                Agreement”))
                as evidenced by one or more Confirmations (as such term is defined
                in the
                Master Agreement) which are governed by the Master Agreement;
                and

            

    

     

    
      	
              (C)

            	
              It
                is a condition precedent to the Lender advancing the loan under the
                Loan
                Agreement that the Owner as security for, inter alia, its obligations
                under the Loan Agreement shall execute this
                Deed.

            

    

     

    NOW
      THIS DEED WITNESSETH AND IT IS HEREBY AGREED as follows:

     

    
      	1	
              Definitions

            

    

     

    
      	
              1.1

            	
              In
                this Deed, unless the context otherwise requires, the following
                expressions shall have the following
                meanings:

            

    

     

    “Expenses”
      means
      the aggregate at any relevant time (to the extent that the same have not been
      received or recovered by the Lender) of:

     

    
      	 	
              (a)

            	
              all
                losses, liabilities, costs, charges, expenses, damages and outgoings
                of
                whatever nature suffered, incurred or paid by the Lender in connection
                with the exercise of the powers referred to in or granted by the
                Loan
                Agreement, the Master Swap Agreement, this Deed or any of the other
                Security Documents or otherwise payable by the Owner;
                and

            

    

     

    
      	 	
              (b)

            	
              interest
                on all such losses, liabilities, costs, charges, expenses, damages
                and
                outgoings from the date on which the same were suffered, incurred
                or paid
                by the Lender until the date of receipt or recovery thereof (whether
                before or after 

            

    

     

    
      
        
        

      

      1

      

        

      

    
    
      
      

    

     

    judgment)
      at a rate per annum calculated in accordance with clause 3.4 of the Loan
      Agreement (as conclusively certified by the Lender);

     

    “Loan”
      means
      the sum of up to Twenty eight million Dollars ($28,000,000) or the Equivalent
      Amount in an Optional Currency or Optional Currencies first referred to in
      Recital (A) hereto advanced or to be advanced (as the context may require)
      or
      the principal amount of such sum outstanding at any relevant time;

     

    “Loan
      Agreement”
      means
      the loan agreement referred to in Recital (A) hereto as the same may from time
      to time hereafter be supplemented and/or amended;

     

    “Master
      Swap Agreement”
      means
      the Master Agreement (including all Transactions thereunder) referred to in
      Recital (B) hereto as the same may from time to time hereafter be supplemented
      and/or amended;

     

    “Master
      Swap Liabilities”
means,
      at any relevant time, all liabilities actual or contingent, present or future
      of
      the Owner to the Lender under the Master Swap Agreement;

     

    “Outstanding
      Indebtedness”
      means
      the aggregate of the Loan and interest accrued and accruing thereon, the Master
      Swap Liabilities, the Expenses and all other sums of money from time to time
      owing by the Owner to the Lender whether actually or contingently, under the
      Loan Agreement, the Master Swap Agreement, the other Security Documents or
      any
      of them;

     

    “Security
      Documents”
      means
      any such document as is defined in the Loan Agreement as a Security Document
      (including this Deed and, where the context so admits, the Loan Agreement
      itself) or as may from time to time be executed by any person as security for
      or
      as a guarantee of the Outstanding Indebtedness or any part thereof as the same
      may hereafter be supplemented and/or amended (whether or not any such documents
      also secures moneys from time to time owing pursuant to any other document
      or
      agreement), and references to the “Security
      Documents”
shall
      mean all or any of them as the context so requires;

     

    “Security
      Interest”
      means a
      mortgage, charge (whether fixed or floating) pledge, lien, hypothecation,
      encumbrance, assignment, trust arrangement, title retention or other distress,
      execution, attachment, arrangement or process of any kind having the effect
      of
      conferring security;

     

    “Security
      Period”
      means
      the period commencing on the date of this Deed and terminating upon discharge
      of
      the security created by the Security Documents by payment of all moneys payable
      thereunder; and

     

    “Secured
      Property”
      means
      all rights, title, interest and benefits whatsoever of the Owner under or in
      connection with the Master Swap Agreement including, without limitation, all
      moneys payable by the Lender to the Owner thereunder (including without
      limitation any payment pursuant to termination provisions thereunder) and all
      claims for damages in respect of any breach by the Lender of the Master Swap
      Agreement.

     

    
      
        
        

      

      2

      

        

      

    
    
      
      

    

     

    
      	
              1.2

            	
              For
                the purposes of this Deed an amount shall be deemed to be outstanding
                and
                to be due and payable to the Lender if the Lender is then entitled
                to
                demand payment of that amount, notwithstanding that it has not yet
                served
                a demand.

            

    

     

    
      	
              1.3

            	
              Clause
                1.1 (Purpose) and clause 1.2 (Definitions) of the Loan Agreement
                shall
                apply with any necessary modifications for the purposes of this
                Deed.

            

    

     

    
      	2	
              Restrictions

            

    

     

    During
      the Security Period the Owner shall not without the prior written consent of
      the
      Lender, assign or attempt to assign any right (present, future or contingent)
      relating to the Secured Property and the Owner irrevocably and unconditionally
      confirms to the Lender that no right (present, future or contingent) relating
      to
      the Secured Property shall be capable of being assigned to, or exercised by,
      a
      person other than the Owner without the Lender’s prior written
      consent.

     

    
      	
              2.1

            	
              In
                this clause references to assignment includes the creation, or permitting
                to arise, of any form of beneficial interest or Security Interest
                and
                every other kind of disposition.

            

    

     

    
      	
              2.2

            	
              An
                act or transaction which is contrary to, or inconsistent with, this
                clause
                shall be void as regards the
                Lender.

            

    

     

    
      	3	
              First
                fixed charge

            

    

     

    
      	
              3.1

            	
              The
                Owner with full title guarantee, hereby charges and agrees to charge
                and
                releases and agrees to release to the Lender as a continuing security
                for
                payment of the Outstanding Indebtedness, by way of first fixed charge,
                the
                Secured Property.

            

    

     

    
      	
              3.2

            	
              Upon
                the occurrence of a Default the charge shall become enforceable and
                the
                Lender shall be entitled then or at any later time or times to appropriate
                all or any part of the Secured Property in or towards discharge of
                the
                then Outstanding Indebtedness or any part thereof, and may do so
                notwithstanding that any maturity date attached to any part or parts
                of
                the Secured Property may not yet have
                arrived.

            

    

     

    
      	
              3.3

            	
              A
                certificate signed by a director or other senior officer of the Lender
                and
                which states that on a specified date and (if the certificate also
                states
                this) at a specified time the Lender exercised its rights under this
                clause to appropriate a specified amount of Secured Property in the
                discharge of a specified amount of the Outstanding Indebtedness shall
                be
                conclusive evidence that:

            

    

     

    
      	3.3.1	
              the
                Lender’s liabilities in respect of the specified amount of Secured
                Property; and

            

    

     

    
      	3.3.2	
              the
                specified amount of Outstanding Indebtedness,

            

    

     

    were
      extinguished and discharged on the specified date and, if so stated, at the
      specified time.

     

    
      	
              4

            	
              Further
                documentation etc.

            

    

     

    
      
        
        

      

      3

      

        

      

    
    
      
      

    

     

    
      	
              4.1

            	
              The
                Owner shall execute forthwith any document which the Lender may specify
                for the purpose of:

            

    

     

    
      	4.1.1	
              supplementing
                the rights which this Deed confers on the Lender in relation to the
                Secured Property; or

            

    

     

    
      	4.1.2	
              creating
                a mortgage of the Secured Property to replace or supplement the charge
                created in clause 3 above; or

            

    

     

    
      	4.1.3	
              registering
                or otherwise perfecting this Deed or any mortgage created under clause
                4.1.2 above; or

            

    

     

    
      	4.1.4	
              ensuring
                or confirming the validity of anything done or to be done under this
                Deed.

            

    

     

    
      	
              4.2

            	
              Any
                such document shall be in the terms specified by the Lender and,
                in the
                case of a mortgage of the Secured Property, those terms may include
                a
                provision entitling the Lender, on or after a Default, to appropriate,
                or
                otherwise deal with, the Secured Property for the purpose of discharging
                the Outstanding Indebtedness.

            

    

     

    
      	
              4.3

            	
              The
                Owner shall also forthwith do any act and execute any document (including
                a document which amends or replaces this Deed) which the Lender specifies
                for the purpose of enabling or assisting the Lender to comply, in
                relation
                to the Secured Property and/or the Outstanding Indebtedness, with
                any
                requirement (legally binding or not) applicable to the Lender and,
                in
                particular, the requirements of any banking supervisory authority
                with
                regard to netting of cash
                collateral.

            

    

     

    
      	
              4.4

            	
              For
                the purpose of securing performance of the Owner’s obligations under
                clauses 4.1 to 4.3, the Owner irrevocably appoints the Lender as
                its
                attorney, on its behalf and in its name or otherwise to sign or execute
                any document which, in the opinion of the Lender, the Owner is obliged,
                or
                could be required, to sign or execute under any of the said clauses,
                which
                the Lender considers necessary or convenient for or in connection
                with any
                exercise or intended exercise of any rights which the Lender has
                under
                this Deed or any other purpose connected with this
                Deed.

            

    

     

    
      	
              4.5

            	
              The
                Lender may appoint any person or persons as its substitute under
                that
                power of attorney referred to in clause 4.4 and may also delegate
                that
                power of attorney to any person or
                persons.

            

    

     

    
      	
              5

            	
              Representations

            

    

     

    
      	
              5.1

            	
              The
                Owner represents and warrants to the Lender as
                follows:

            

    

     

    
      	5.1.1	
              the
                Owner is the sole legal and beneficial owner of the Secured Property
                and
                has good marketable title to it;

            

    

     

    
      	5.1.2	
              no
                third party has or will have any interest, right or claim of any
                kind in
                relation to any of the Secured
                Property;

            

    

     

    
      
        
        

      

      4

      

        

      

    
    
      
      

    

     

    
      	5.1.3	
              the
                Owner has the corporate power, and has taken all necessary corporate
                action to authorise the execution of this Deed, the Loan Agreement
                and the
                Master Swap Agreement; and

            

    

     

    
      	5.1.4	
              nothing
                in this Deed will or might result in the Owner contravening any law
                or
                regulation which is now in force or which has been published but
                not yet
                brought into force or any contractual or other obligation which the
                Owner
                now has to a third party.

            

    

     

    
      	
              6

            	
              Notices

            

    

     

    
      	
              6.1

            	
              Clause
                17 (Notices and other matters) of the Loan Agreement will apply to
                this
                Deed mutatis mutandis as if references to the Loan Agreement were
                references to this Deed.

            

    

     

    
      	7	
              Supplemental

            

    

     

    
      	
              7.1

            	
              This
                Deed, including the charge created by clause 3, shall remain in force
                as a
                continuing security until the Security Period has
                ended.

            

    

     

    
      	
              7.2

            	
              The
                rights of the Lender under this Deed will not be discharged or prejudiced
                by:

            

    

     

    
      	7.2.1	
              any
                kind of amendment or supplement to the other Security
                Documents;

            

    

     

    
      	7.2.2	
              any
                arrangement or concession, including a rescheduling, which the Lender
                may
                make in relation to any of the Loan Agreement, the Master Swap Agreement
                and the other Security Documents, or any action by the Lender and/or
                the
                Owner and/or any other party thereto which is contrary to the terms
                of the
                Loan Agreement, the Master Swap Agreement and the other Security
                Documents;

            

    

     

    
      	7.2.3	
              any
                release or discharge, whether granted by the Lender or effected by
                the
                operation of any law, of all or any of the obligations of the Owner
                and/or
                any other party thereto under any of the Loan Agreement, the Master
                Swap
                Agreement and the other Security
                Documents;

            

    

     

    
      	7.2.4	
              any
                change in the ownership and/or control of the Owner and/or any other
                party
                thereto and/or merger, demerger or reorganisation involving the Owner
                and/or any other party thereto;

            

    

     

    
      	7.2.5	
              any
                event or matter which is similar to, or connected with, any of the
                foregoing;

            

    

     

    and
      the
      rights of the Lender under this Deed do not depend on the Loan Agreement, the
      Master Swap Agreement or any of the Security Documents being or remaining
      valid.

     

    
      	
              7.3

            	
              Nothing
                in this Deed excludes or restricts any right of counterclaim, set-off,
                right to net payments, or any other right or remedy which the Lender
                would
                have had other than under the general law, the Loan Agreement, the
                Master
                Swap Agreement and the other Security
                Documents.

            

    

     

    
      	8	
              Law
                and jurisdiction

            

    

     

    
      
        
        

      

      5

      

        

      

    
    
      
      

    

     

    
      	
              8.1

            	
              Law

            

    

     

    This
      Agreement is governed by and shall be construed in accordance with English
      law.

     

    
      	
              8.2

            	
              Submission
                to jurisdiction

            

    

     

    For
      the
      benefit of the Lender, the parties hereto irrevocably agree that any legal
      action or proceedings in connection with this Deed may be brought in the English
      courts, or in the courts of any other country chosen by the Lender, each of
      which shall have jurisdiction to settle any disputes arising out of or in
      connection with this Deed. The Owner irrevocably and unconditionally submits
      to
      the jurisdiction of the English courts and the courts of any country chosen
      by
      the Lender and irrevocably designates, appoints and empowers Cheeswrights at
      present of 10 Philpot Lane, London EC3M 8BR, England to receive, for it and
      on
      its behalf, service of process issued out of the English courts in any such
      legal action or proceedings arising out of or in connection with this Deed.
      The
      submission to such jurisdiction shall not (and shall not be construed so as
      to)
      limit the right of the Lender to take proceedings against the Owner in any
      other
      court of competent jurisdiction nor shall the taking of proceedings in any
      one
      or more jurisdictions preclude the taking of proceedings in any other
      jurisdiction, whether concurrently or not.

     

    The
      parties further agree that only the Courts of England and not those of any
      other
      State shall have jurisdiction to determine any claim which the Owner may have
      against the Lender arising out of or in connection with this Deed.

     

    
      	
              8.3

            	
              Contracts
                (Rights of Third Parties) Act
                1999

            

    

     

    No
      term
      of this Agreement is enforceable under the Contracts (Rights of Third Parties)
      Act 1999 by a person who is not a party to this Agreement.

     

    IN
      WITNESS whereof
      the Owner has caused this Deed to be duly executed the day and year first above
      written.

     

    
      
        
        

      

      6

      

        

      

    
    
      
      

    

    
    

     

    
      	SIGNED
              SEALED and DELIVERED	)
	by	)
	the
              duly authorised attorney of	)
	MARATHASSA
              SHIPPING CORPORATION	)
	for
              it and on its behalf	)
	pursuant
              to a Power of Attorney	)
	dated
                               2005	 
	in
              the presence of:	)
	 	 
	 	 
	ACCEPTED	)
	by	)
	the
              duly authorised attorney of	)
	THE
              ROYAL BANK OF SCOTLAND plc	)
	for
              it and on its behalf	)
	pursuant
              to a Power of Attorney	)
	dated	)
	in
              the presence of:	)

    

     

    
      
        
        

      

      7

      

        

      

    
    
      
      

    

    
    

     

    
      	SIGNED
by
              GEORGE PAPADOPOULOS
for and on behalf of
MARATHASSA SHIPPING
              CORPORATION
pursuant to a Power of Attorney
dated 14 February
              2005	)
)
)
)
)
)	
	 	 	 
	
              SIGNED
by KATERINA
                DAMIANIDOU
for
                and on behalf of
THE
                ROYAL BANK OF SCOTLAND plc 
pursuant
                to a Power of Attorney
dated
                22 June 2004

            	)
)
)
)
)
)	 

    

     

    
      
        
        

      

        1EXHIBIT
      10.8

    

    
      	 	
              

            
	
              19
                April 2006

            	 
	 	
              Global
                Banking & Markets

              Shipping
                Business Centre

              5-10
                Great Tower Street

              London
                EC3P 3HX

               

            
	
              Marathassa
                Shipping Corporation

              80
                Broad Street,

              Monrovia,
                Republic of Liberia

            	
              Telephone:
                +44 (0)20 7833 2121

              Facsimile:
                +44 (0)20 7615 0116

               

              www.rbsmarkets.com

            

    

     

    Dear
      Sirs

    

    Multicurrency
      Loan of US$28,000,000 to Marathassa Shipping Corporation

    

    
      	
              1

            	
              We
                refer to the loan agreement dated 16 February 2005 (the “Loan
                Agreement”)
                made between (1) Marathassa Shipping Corporation as borrower (the
                “Borrower”)
                and (2) The Royal Bank of Scotland plc as lender (the “Bank”),
                pursuant to which the Bank agreed (inter
                alia)
                to advance (and has advanced) by way of loan to the Borrower the
                sum of
                Twenty eight million Dollars
                ($28,000,000).

            

    

     

    
      	
              2

            	
              Words
                and expressions defined in the Loan Agreement shall, unless the context
                otherwise requires, have the same meaning where used in this
                Letter.

            

    

     

    
      	
              3

            	
              The
                Borrower has requested and, subject to paragraph 7 of this Letter,
                the
                Bank hereby agrees, that the Loan Agreement shall be hereby amended
                with
                effect on and from 20 February 2006, by deleting the definition of
                “Margin”
                in clause 1.2 and by inserting in its place the following new definition
                of “Margin”.

            

    

     

    “Margin”
means
      zero point six seven five per cent (0.675%) per annum; ”.

     

    
      	
              4

            	
              Save
                as amended by this Letter, the provisions of the Loan Agreement shall
                continue in full force and effect and the Loan Agreement and this
                Letter
                shall be read and construed as one
                instrument.

            

    

     

    
      	
              5

            	
              Each
                of the other Security Documents and the obligations of the Security
                Parties thereunder shall remain and continue in full force and effect
                notwithstanding the amendments to the Loan Agreement contained in
                this
                Letter.

            

    

     

    
      	
              6

            	
              References
                to “the
                Agreement”
                or “the
                Loan Agreement”
                in any of the Security Documents shall henceforth be references to
                the
                Loan Agreement as amended by this Letter and as from time to time
                hereafter amended and shall also be deemed to include this Letter
                and the
                obligations of the Security Parties
                hereunder.

            

    

     

    
      	
              7

            	
              Please
                confirm your agreement and the other Security Parties’ agreement to the
                above by signing, dating and returning the enclosed duplicate of
                this
                Letter to the Bank on or before 28 April 2006. On receipt by the
                Bank of
                the duly executed duplicate of this letter by the Security Parties
                not
                later than such date, the consent of the Bank referred to in paragraph
                3
                above shall become immediately effective with effect on and from
                20
                February 2006.

            

    

     

    
      
        	
                 

              	
                The
                  Royal Bank of Scotland plc

                Registered
                  in Scotland No 90312

                Registered
                  Office 36 St Andrew Square

                Edinburgh
                  EH2 2YB

                 

                Authorised
                  and regulated by the

                Financial
                  Services Authority

              

      

       

      
        
           

        

           

          

          

        

        
           

        

      

    
     

    
      
        	
                8

              	
                This
                  Letter is governed by, and shall be construed in accordance with,
                  the laws
                  of England.

              

      

       

    

    
      	
              Yours
                faithfully

               

               

            
	
              Authorised
                Signatories

              For
                and on behalf of

              THE
                ROYAL BANK OF SCOTLAND plc

            

    

     

     

    We
      hereby
      acknowledge and agree to the foregoing and to the amendment to the Loan
      Agreement effected thereby.

     

    
      	 
	
              Attorney-in-fact

              For
                and on behalf of

              MARATHASSA
                SHIPPING CORPORATION

            

    

     

    

    
      	 
	
              Authorised
                Signatories

              For
                and on behalf of

              SAFETY
                MANAGEMENT OVERSEAS S.A.

              (as
                Manager)

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00142-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00142-of-00352.parquet"}]]