Document:

FIRST AMENDMENT TO SPACE CHARTER
                               MV "CROWN DYNASTY"

         THIS FIRST AMENDMENT TO SPACE CHARTER (the "First Amendment") is made
this 19th day of November, 1999 by and between CROWN CRUISES LIMITED, a Bermuda
corporation ("Owners"), as disponent owners of the Panamanian flag vessel MV
CROWN DYNASTY (the "Vessel") and ATKINSON AND MULLEN, INC., a Pennsylvania
corporation doing business as "APPLE VACATIONS" ("Space Charterers").

         A.       On July 12, 1999, Owners and Space Charterers entered in a
                  space charter (the "Space Charter") with respect to the
                  Vessel.

         B.       Owners and Space Charterers wish to modify and clarify certain
                  provisions of the Space Charter in this First Amendment.

         In furtherance of the foregoing, the parties hereby amend the Space
Charter as follows:

         1.       SPACE CHARTER HIRE.

Section 6(a) is hereby amended by adding a new subsection (vii) as follows:

Charter Hire shall be payable to Owners bi-weekly in advance.

         2.       SECURITY FOR SPACE CHARTERERS' AND OWNERS' OBLIGATIONS.

Section 6(b) is hereby amended by adding a new subsection (iii) as follows:

         The parties acknowledge that the SC Letter of Credit and the Owners'
Letter of Credit are required to be issued in the face amount of * each pursuant
to Section 6 of the Space Charter. Notwithstanding this requirement, the parties
have agreed that they will each initially obtain their respective letters of
credit in the face amount of *. Each of Owners and Space Charterers reserve the
right to require that such letter of credit be increased to the full amount of *
at any time during the time such letter of credit is required to be in effect
under the terms of the Space Charter. Neither party shall waive its right to
require that the other party obtain such letter of credit in such increased
amount by virtue of its agreement to accept a letter of credit in the face
amount of * at this time.

         3.       ESCROW.

Sections 6(d) and 6(e) are hereby deleted in their entirety.

------------------
*        Market text omitted pursuant to an application for an order for
         confidential treatment by Commodore Holding Limited.

<PAGE>

         4.       RATIFICATION.

         Except as specifically amended herein, all of the terms of the Space
Charter shall remain in full force and effect.

         5.       COUNTERPARTS.

         This First Amendment may be signed in counterparts.

         IN WITNESS WHEREOF, the parties have executed this First Amendment with
effect as of the date first set forth above.

                                            CROWN CRUISES LIMITED

                                            By: /s/ Alan Pritzker
                                               ---------------------------------
                                                Chief Financial Officer

                                            ATKINSON AND MULLEN, INC.,
                                            DOING BUSINESS AS APPLE VACATIONS

                                            By: ILLEGIBLE
                                               ---------------------------------
                                                Assistant Secretary

                                       2EXHIBIT 10.2

                                 MERITA BANK PLC
                       CHRISTIANIA BANK OG KREDITKASSE ASA
                     SKANDINAVISKA ENSKILDA BANKEN AB (PUBL)
                                  (as lenders)

                                     - and -

                                 MERITA BANK PLC
                                   (as agent)

                                     - and -

                          CROWN CRUISES OF PANAMA, INC.
                                  (as borrower)

                                     - and -

                                 MERITA BANK PLC
                                  (as trustee)

                         ------------------------------
                                 LOAN AGREEMENT
                       RE USD45,000,000 REVOLVING FACILITY
                         ------------------------------

                           Sinclair Roche & Temperley
                                   Royex House
                              5 Aldermanbury Square
                                 London EC2V 7LE
                               Tel: 0171 452 4000
                               Fax: 0171 452 4001
                                 Ref: GFS/242921

<PAGE>

                               INDEX OF CONTENTS

CLAUSE       SUBJECT                                                        PAGE
------       -------                                                        ----

1.  Purpose and Definitions..................................................1

2.  The Lenders' Commitment..................................................9

3.  Availability............................................................10

4.  Interest................................................................11

5.  Repayment...............................................................13

6.  Compulsory Prepayment...................................................13

7.  Commitment, Arrangement and Agency Fees.................................14

8.  Indemnity...............................................................15

9.  Payments................................................................18

10. Application of Moneys...................................................19

11. Default.................................................................22

12. Security................................................................25

13. Representations and Warranties..........................................26

14. Covenants...............................................................28

15. Set-off and Sharing of Payments.........................................33

16. Assignment and Participation............................................34

17. Miscellaneous...........................................................36

18. Notices.................................................................36

19. Proper Law and Jurisdiction.............................................37

Schedule A : Conditions Precedent...........................................38

Schedule B : Financial Ratios...............................................42

<PAGE>

Signature Pages.............................................................43

Appendix I : Form of Utilization Notice.....................................45

Appendix II : Form of Compliance Certificate................................46

<PAGE>

THIS AGREEMENT is made the 24th day of January, 2000
BETWEEN:-

(1)      THE LENDERS (as hereinafter defined);

(2)      THE AGENT (as hereinafter defined);

(3)      THE BORROWER (as hereinafter defined); and

(4)      THE TRUSTEE (as hereinafter defined).

IT IS HEREBY AGREED as follows:-

1.       PURPOSE AND DEFINITIONS

1.1      This agreement contains the terms and conditions upon which the
         Lenders, with the Agent acting as their agent, will make available to
         the Borrower a secured revolving loan facility of up to but not
         exceeding forty five million United States Dollars (USD45,000,000) at
         any one time.

1.2      In this agreement the following words and expressions shall have the
         following meanings:-

         "AGENT"
         means Merita Bank Plc, a company incorporated under the laws of Finland
         acting through its London branch having its principal place of business
         at 19 Thomas More Street, London E1W 1YF in its capacity as agent for
         the Lenders pursuant to the Deed of Agency and Trust;

         "BORROWED MONEY"
         means Indebtedness incurred in respect of (i) money borrowed or raised,
         (ii) any bond, note, loan stock, debenture or similar instrument, (iii)
         acceptance or documentary credit facilities, (iv) deferred payments for
         assets or services acquired other than for provisions, bunkers, spare
         parts or services acquired in the ordinary course of, and incidental
         to, the operation of the Vessel, (v) rental payments under and any
         amounts payable on termination of leases (whether in respect of ships,
         land, machinery,

<PAGE>

                                      - 2 -

         equipment or otherwise) entered into primarily as a method of raising
         finance or of financing the acquisition of the asset leased, (vi)
         guarantees, bonds, stand-by letters of credit or other instruments
         issued in connection with the performance of contracts and (vii)
         guarantees or other assurances against financial loss in respect of
         Indebtedness of any person, firm or company falling within any of (i)
         to (vi) above;

         "BORROWER"
         means Crown Cruises of Panama, Inc., a company incorporated under the
         laws of Panama with its registered office at c/o Galindo Arias & Lopez,
         Scotia Plaza No. 18, Avenida Federico Boyd & Calle No. 51, Piso 9, 10 &
         11, Panama, Republic of Panama;

         "BRIDGE LOAN FACILITY"
         means the loan of six million seven hundred and twenty thousand United
         States Dollars (USD6,720,000) made available by the Lenders to the
         Borrower under the Bridge Loan Facility Agreement;

         "BRIDGE LOAN FACILITY AGREEMENT"
         means the agreement of even date herewith made between the parties
         hereto in respect of the Bridge Loan Facility;

         "BRIDGE LOAN SECURITIES"
         means the securities provided or to be provided to the Agent pursuant
         to the Bridge Loan Facility Agreement as security for the Bridge Loan
         Facility;

         "BUSINESS DAY"
         means any day on which banks and foreign exchange markets in Helsinki,
         Oslo, London and New York are open for the transaction of business of
         the nature contemplated in this agreement;

         "CHARTER"
         means the space charter in respect of the Vessel made or to be made
         between the Borrower as owner and the Charterer as charterer;

<PAGE>

                                      - 3 -
         "CHARTERER"

         means Crown Cruises Limited, a company incorporated under the laws of
         Bermuda with its registered office at c/o Francis & Forest, Corner
         House, 20 Parliament Street, Hamilton HM12, Bermuda;

         "CONTRIBUTIONS"
         means the proportions of the Loan (and, where the context so requires,
         any relevant part thereof) set out opposite the names of the Lenders on
         the signature pages of this agreement and "Contribution" means any one
         of them;

         "DEED OF AGENCY AND TRUST"
         means the deed of even date herewith made between the Agent, the
         Trustee and the Lenders whereby the Agent is appointed agent for the
         Lenders in respect of this agreement and the Trustee declares a trust
         in respect of the other Security Documents;

         "DRAWDOWN DATE"
         means the date on which the relevant Drawing is advanced pursuant to
         clause 3 hereof;

         "DRAWING"
         means any one amount advanced or to be advanced in accordance with a
         notice in respect thereof given pursuant to clause 3.1(C) hereof and
         "Drawings" means more than one of them;

         "EARNINGS ACCOUNT"
         means the account in the name of the Borrower at the Agent's New York
         office at 437 Madison Avenue, New York, N.Y. 10022;

         "EARNINGS ASSIGNMENT"
         means the assignment executed pursuant to clause 12.1(C) hereof;

         "ENCUMBRANCE"
         means any mortgage, charge, pledge, lien, assignment, hypothecation,
         title retention, preferential right or trust arrangement and any other
         security agreement or arrangement;

         "ESL"
         means EFF-Shipping Limited, a company incorporated under the laws of
         the Cayman Islands with its registered office at the offices of Huntlaw
         Corporate Services Ltd.,

<PAGE>

                                      - 4 -

         The Huntlaw Building, P.O. Box 1350, George Town, Grand Cayman, Cayman
         Islands;

         "EVENT OF DEFAULT"
         means any of the events or circumstances specified in clause 11.1
         hereof;

         "GAAP"
         means accounting principles generally accepted in the United States of
         America and consistently applied;

         "GUARANTOR"
         means Commodore Holdings Limited, a company incorporated under the laws
         of Bermuda with its registered office at c/o Francis & Forest, Corner
         House, 20 Parliament Street, Hamilton HM12, Bermuda;

         "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;

         "INSURANCE ASSIGNMENT"
         means the assignment executed pursuant to clause 12.1(B) hereof;

         "INTEREST PERIOD"
         means any period determined in accordance with the provisions of clause
         4.1 hereof for the calculation of interest on the Loan or any relevant
         part thereof;

         "LENDERS"
         means the banks and financial institutions whose names and lending
         offices appear under and who have signed under the heading "The
         Lenders" on the signature pages of this agreement and "Lender" means
         any one of them;

         "LOAN"
         means up to but not exceeding the Maximum Sum or, where the context so
         requires, the aggregate amount of any Drawing(s) from time to time
         unrepaid and outstanding;

<PAGE>

                                      - 5 -

         "MANAGEMENT AGREEMENT"
         means the agreement for the management of the Vessel made or to be made
         between the Borrower and the Manager;

         "MANAGER"
         means New Commodore Cruise Lines Limited, a company incorporated under
         the laws of Bermuda with its registered office at c/o Francis & Forest,
         Corner House, 20 Parliament Street, Hamilton HM12, Bermuda;

         "MARGIN"
         means one and three quarters per cent (1.75%) per annum;

         "MAXIMUM SUM"
         means the lesser from time to time of:-

         (i)      forty five million United States Dollars (USD45,000,000) which
                  sum shall be automatically reduced by the following amounts on
                  the following dates:-

           REDUCTION                                   DATE

               USD              on the final day of each of the seventh to
             416,667            the twenty fourth months inclusive after
                                the first Drawdown Date

               USD              on the final day of each of the twenty
             312,500            fifth to the seventy second months
                                inclusive after the first Drawdown Date

               USD              on the Termination Date
           22,499,994

                  and which sum may be further reduced (in inverse order to the
                  above reductions) by the Borrower pursuant to clause 3.1(H)
                  hereof;

         (ii)     sixty five per cent (65%) of the market value of the Vessel
                  (assessed in accordance with clause 11.1(L) hereof) plus the
                  value of any additional security provided to (and still held
                  by) the Lender pursuant to clause 11.1(L) hereof; and

<PAGE>

                                      - 6 -

         (iii)    (from and after a Total Loss or sale of the Vessel) zero
                  United States Dollars (USD0.00);

         "MOA"
         means the agreement for the sale and purchase of the Vessel made or to
         be made between the Seller and the Borrower;

         "MORTGAGE"
         means the first Panamanian naval mortgage over the Vessel executed
         pursuant to clause 12.1(A) hereof;

         "PERMITTED LIENS"
         means liens for current crews' wages and salvage and liens incurred in
         the ordinary course of trading the Vessel up to an aggregate amount at
         any time not exceeding five per cent (5%) of the charter-free sale
         value of the Vessel (such market value to be conclusively determined as
         the average of the latest three (3) valuations obtained by the Agent as
         provided in clause 8.2 hereof);

         "REFERENCE BANKS"
         means the Lenders;

         "SECURITY DOCUMENTS"
         means the Deed of Agency and Trust and the documents executed pursuant
         to clause 12.1 hereof and any other document or documents from time to
         time providing and/or evidencing and/or constituting security in
         respect of the Loan;

         "SECURITY PARTIES"
         means the Borrower, the Guarantor and the Manager and any other party
         to any of the Security Documents from time to time (other than the
         Seller, ESL, the Lenders, the Agent and the Trustee) and "Security
         Party" means any one of them;

         "SELLER"
         means Crown Dynasty Inc., a company incorporated under the laws of
         Panama with its registered office at Vallarino, Vallarino & Garcia -
         Maritano, 20th Floor, Banco Continental Building, Calle 50 y Aquilino
         De La Guardia, Panama City, Panama;

<PAGE>

                                      - 7 -
         "SELLER'S CREDIT"

         means the seller's credit in the sum of twenty four million four
         hundred and eighty thousand United States Dollars (USD24,480,000)
         procured by the Seller for the Borrower from ESL pursuant to the MOA
         and made available to the Borrower by ESL under the Seller's Credit
         Agreement;

         "SELLER'S CREDIT AGREEMENT"
         means the agreement made or to be made between ESL and the Borrower in
         respect of the Seller's Credit;

         "SELLER'S CREDIT SECURITIES"
         means the securities provided or to be provided to ESL pursuant to the
         Seller's Credit Agreement as security for the Seller's Credit;

         "SUB-CHARTER"
         means the space sub-charter of the Vessel made or to be made between
         the Charterer as disponent owner and the Sub-Charterer as charterer on
         back to back terms with the Charter;

         "SUB-CHARTERER"
         means Atkinson and Mullen, Inc. doing business as Apple Vacations, a
         company incorporated under the laws of Pennsylvania with its registered
         office at 7 Campus Boulevard, Newtown Square, Pennsylvania 19073,
         U.S.A.;

         "SUBJECT DOCUMENTS"
         means this agreement, the Security Documents, the MOA, the Charter, the
         Sub-Charter, the Management Agreement, the Bridge Loan Facility
         Agreement, the Bridge Loan Securities, the Seller's Credit Agreement,
         the Seller's Credit Securities and any and all documents executed
         pursuant to any one or more of these documents;

         "TERMINATION DATE"
         means the earlier of the date falling seventy two (72) months after the
         first Drawdown Date and the date (if any) when the loan facility made
         available hereunder is cancelled in accordance with the provisions of
         this agreement;

<PAGE>

                                      - 8 -
         "TOTAL LOSS"

         means:-

         (i)      actual or constructive or compromised or agreed or arranged
                  total loss of the Vessel; or

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

         (iii)    capture, seizure, arrest, detention or confiscation of the
                  Vessel by any government or by persons acting or purporting to
                  act on behalf of any government unless the Vessel is released
                  and restored to the Borrower from such capture, seizure,
                  arrest or detention within thirty (30) days after the
                  occurrence thereof;

         "TRUSTEE"
         means Merita Bank Plc, a company incorporated under the laws of Finland
         acting through its London branch having its principal place of business
         at 19 Thomas More Street, London E1W 1YF in its capacity as trustee
         pursuant to the Deed of Agency and Trust;

         "UNITED STATES DOLLARS" and "USD"
         mean the lawful currency of the United States of America; and

         "VESSEL"
         means the motor vessel named "Crown Dynasty" now registered under
         Panamanian flag in the ownership of the Seller which is to remain
         registered under Panamanian flag in the ownership of the Borrower
         pursuant to the MOA.

1.3      References to any document shall be construed to mean that document as
         amended and/or varied and/or supplemented from time to time with the
         agreement of the relevant parties and (where such consent is required
         by the terms of this agreement or the relevant document) with the
         consent of the Agent and/or the Lenders and/or the Trustee.

1.4      Clause headings are inserted for convenience of reference only and
         shall be ignored in

<PAGE>

                                      - 9 -

         the interpretation of this agreement.

2.       THE LENDERS' COMMITMENT

2.1      In reliance upon the representations and warranties contained in clause
         13 hereof and in the Security Documents and subject to the terms and
         conditions of this agreement the Lenders will make the Loan available
         to the Borrower for the purpose of financing (in part) the purchase of
         the Vessel by the Borrower pursuant to the MOA.

2.2      Each of the Lenders shall advance its Contribution to each Drawing.

2.3      The liability of each of the Lenders hereunder is several and none of
         the Lenders shall be responsible for any failure by any other Lender to
         meet its obligations hereunder nor shall any such failure relieve the
         Borrower or any other Lender of all or any of its respective
         obligations hereunder. If any Lender shall fail to advance its
         Contribution in circumstances where the Agent has already advanced the
         Loan or any relevant part thereof to the Borrower then the Borrower
         shall forthwith upon the demand of the Agent repay to the Agent an
         amount equal to any such Contribution together with any interest
         accrued thereon. The Agent shall not be obliged to advance the Loan or
         any part thereof to the Borrower other than such Contribution(s) as the
         Agent has received from the Lenders.

3.       AVAILABILITY

3.1      On and as from the date hereof the Borrower shall be entitled to draw
         upon the Loan provided always that:-

         (A)      all items specified in schedule A hereto have been received by
                  the Agent and are in form and substance satisfactory to the
                  Agent;

         (B)      no Event of Default and no event which with the giving of
                  notice and/or lapse of time would constitute an Event of
                  Default has occurred;

         (C)      the Agent has received a written notice from the Borrower in
                  the form set out in appendix I hereto indicating the
                  Borrower's intention to draw upon the Loan not less than four
                  (4) Business Days prior to the date of relevant Drawing (in
                  the case of the first Drawing) and not less than three (3)
                  Business Days prior to the date of relevant Drawing (in the
                  case of each subsequent Drawing);

<PAGE>

                                     - 10 -

         (D)      the first Drawing shall be used for the purchase described in
                  clause 2.1 hereof;

         (E)      no Drawing shall amount to less than one million United States
                  Dollars (USD1,000,000) and no Drawing shall increase the Loan
                  to a sum in excess of the Maximum Sum;

         (F)      no Drawing shall be made if another Drawing remains unrepaid
                  and outstanding unless the full amount of the new Drawing is
                  to be applied immediately in or towards repayment of that
                  other Drawing;

         (G)      to the extent that the outstanding amount of the Loan is
                  reduced by virtue of a repayment or prepayment made by the
                  Borrower to the Agent to a level below the Maximum Sum the
                  Borrower shall again be entitled to make Drawings subject
                  always to the other provisions of this clause 3.1;

         (H)      the Borrower shall be entitled in whole or in part to cancel
                  the loan facility made available under this agreement with
                  effect from the final day of the then current
                  Interest Period by giving the Lender not less than five (5)
                  days written notice to that effect, provided that any part
                  cancellation shall be in an amount of not less than one
                  million United States Dollars (USD1,000,000) and shall take
                  effect as a reduction in the Maximum Sum in accordance with
                  subclause (i) of the definition thereof but in inverse order
                  to the reductions provided in that subclause; and

         (I)      the first Drawing must be made no later than 31 January 2000
                  and no Drawing shall be made after the Termination Date.

3.2      The Lenders may in their absolute discretion allow any Drawing to be
         made notwithstanding that the Agent has not received all the items
         specified in schedule A hereto and in this event the Borrower hereby
         covenants to procure the delivery of all the missing items to the Agent
         within thirty (30) days after the Drawdown Date of the relevant
         Drawing.

<PAGE>

                                     - 11 -
4.       INTEREST

4.1      The Borrower shall pay interest on the Loan from the first Drawdown
         Date for each successive Interest Period which shall, subject to
         clauses 4.3 and 6.2 hereof, be one (1) month provided always that:-

         (A)      if the relevant funds are not available to the Lenders for any
                  Interest Period the Agent shall be entitled to determine
                  conclusively the length of that Interest Period;

         (B)      if an Interest Period will expire after the due date for
                  repayment of any Drawing remaining unrepaid and outstanding
                  that Interest Period shall be shortened to expire on that due
                  date; and

         (C)      if an Interest Period would otherwise expire on a day which is
                  not a Business Day that Interest Period shall be extended to
                  expire on the next succeeding Business Day unless that next
                  succeeding Business Day falls within a fresh month in which
                  event that Interest Period shall be shortened to expire on the
                  immediately preceding Business Day.

4.2      Subject to clauses 4.3 and 6.2 hereof the Borrower shall pay interest
         on the Loan or any relevant part thereof for each Interest Period at
         the rate certified conclusively (save for manifest error) by the Agent
         to be the aggregate of the Margin and the rate per cent per annum for
         that Interest Period quoted by Telerate Screen 3750 (rounded up to the
         nearest one sixteenth of one per cent)(or, if the Telerate system is
         not working, by Reuters Page ISDA (rounded up to the nearest one
         sixteenth of one per cent) or, if neither the Telerate system nor the
         Reuters system is working, the average rate per cent per annum (rounded
         up to the nearest one sixteenth of one per cent) at which deposits of
         amounts of United States Dollars equivalent to or comparable with the
         Loan or relevant part thereof are offered to the Reference Banks (or
         two of them if one is unable to quote a rate) for that Interest Period
         in the London Inter-bank Market at or about 11.00 a.m. (London time)
         two (2) Business Days (in London only) prior to the commencement of
         that Interest Period. Such interest shall accrue and be payable on the
         actual number of days elapsed, shall be calculated on the basis of a
         year of three hundred and sixty (360) days and shall be paid on the
         final day of that Interest Period and (if that Interest Period is
         longer than one (1) month) at one (1) monthly intervals.

4.3      In the event of default by the Borrower in the payment of any sum
         whatsoever due

<PAGE>

                                     - 12 -

         under this agreement (including interest) the Borrower shall pay
         interest on that sum from the due date until payment (after as well as
         before judgement) at a rate certified conclusively (save for manifest
         error) by the Agent to be three and a half per cent (3.5 %) per annum
         over the average cost to the Lenders (rounded up to the nearest one
         sixteenth of one per cent) of funding their respective Contributions to
         that sum for such periods as the Agent in its absolute discretion may
         think fit on the Business Day succeeding that on which it became aware
         of the default and for so long as that sum remains unpaid that rate
         shall be re-calculated on the same basis. Such interest shall accrue
         and be payable on each day elapsing, shall be calculated on the basis
         of a year of three hundred and sixty (360) days and shall be paid on
         the demand of the Agent. In default of payment such interest shall be
         compounded.

4.4      The Agent shall as soon as reasonably practicable notify the Borrower
         of each rate of interest payable on the Loan or any relevant part
         thereof under this clause 4.

5.       REPAYMENT

5.1      Subject to clauses 6 and 11.1 hereof the Borrower shall repay each
         Drawing one (1) month after the Drawdown Date in respect thereof.

6.       COMPULSORY PREPAYMENT

6.1      If for any reason whatsoever beyond the control of any one or more of
         the Lenders it shall become unlawful or impossible for such one or more
         of the Lenders to maintain or give effect to all or part of its or
         their obligations as contemplated by this agreement and evidence
         substantiating that unlawfulness or impossibility has been produced by
         such one or more of the Lenders to the Agent then:-

         (A)      the obligation of such one or more of the Lenders to advance
                  funds under clause 2.2 hereof and to participate in the Loan
                  or the relevant part thereof shall cease;

         (B)      the Borrower shall forthwith upon the demand of the Agent
                  repay to the Agent for the benefit of such one or more of the
                  Lenders the amount of its or their Contribution(s) to the Loan
                  or the relevant part thereof together with interest
<PAGE>

                                     - 13 -

                  accrued thereon and any sums due to such one or more of the
                  Lenders by virtue of that repayment under clause 8.5 hereof;
                  and

         (C)      the Maximum Sum shall be reduced by the amount of the
                  Contribution(s) of such one or more of the Lenders to the
                  Loan.

6.2      If the Agent shall:-

         (A)      determine in good faith that by reason of circumstances
                  affecting the London Inter-Bank Market generally adequate and
                  reasonable means do not exist for ascertaining the rate of
                  interest payable on the Loan or any relevant part thereof for
                  any Interest Period in accordance with clause 4.2 hereof; or

         (B)      receive notice from any one or more of the Lenders that it
                  would not be practicable or possible for such one or more of
                  the Lenders to fund or continue to fund its or their
                  Contribution(s) to the Loan or any relevant part thereof in
                  the London Inter-Bank Market,

         then the Agent shall inform the Borrower in writing to that effect and
         unless the Lenders and the Borrower shall agree acceptable alterations
         to the terms of this agreement (on the basis of an alternative source
         of funds available to the relevant Lenders) then:-

                  (i)      the obligation of the relevant Lenders to advance
                           funds under clause 2.2 hereof and to participate in
                           the Loan or the relevant part thereof shall cease;

                  (ii)     the Agent shall give notice to the Borrower
                           terminating the participation of the relevant Lenders
                           in the Loan or the relevant part thereof whereafter
                           the amount of its or their Contribution(s) to the
                           Loan or the relevant part thereof together with
                           interest accrued thereon shall become repayable by
                           the Borrower within thirty (30) days thereafter; and

                  (iii)    the Maximum Sum shall be reduced by the amount of the
                           Contribution(s) of the relevant Lenders to the Loan.

<PAGE>

                                     - 14 -

7.       COMMITMENT, ARRANGEMENT AND AGENCY FEES

7.1      The Borrower shall pay to the Agent for the benefit of the Lenders a
         commitment fee of zero point seven five per cent (0.75%) per annum on
         the undrawn amount of the Maximum Sum from the date hereof to the
         Termination Date. Such commitment fee shall accrue and be payable on
         each day elapsing and shall be paid at one (1) monthly intervals after
         the date hereof.

7.2      The Borrower shall pay to the Agent for the benefit of the Lenders on
         the date hereof an arrangement fee of four hundred and fifty thousand
         United States Dollars (USD450,000), which fee the Borrower hereby
         accepts has been fully earned on the date hereof.

7.3      The Borrower shall pay to the Agent for the benefit of the Agent an
         agency fee of five thousand United States Dollars (USD5,000) per annum.
         Such agency fee shall accrue and be payable on each day elapsing after
         the first Drawdown Date and shall be paid in advance on the first
         Drawdown Date and at twelve (12) monthly intervals thereafter.

8.       INDEMNITY

8.1      If any change in law or regulation or in the interpretation thereof or
         if compliance by any one or more of the Lenders with any direction
         request or requirement (whether or not having the force of law) of any
         central bank or other authority shall:-

         (A)      subject any one or more of the Lenders to any tax with respect
                  to the Loan or any part thereof (other than tax on overall net
                  income);

         (B)      change the basis of taxation to any one or more of the Lenders
                  of payments of principal or interest or any other payment due
                  or to become due hereunder;

         (C)      impose or modify any reserve, liquidity or capital adequacy
                  requirements or require the making of any special deposits
                  affecting any one or more of the Lenders; or

         (D)      impose on any one or more of the Lenders any other condition
                  affecting the Loan or any part thereof whether or not any
                  Drawing has been advanced

<PAGE>

                                     - 15 -

         and the result is either to increase the cost to any one or more of the
         Lenders of making or maintaining or committing to make its or their
         Contribution(s) to the Loan or any part thereof or to reduce the amount
         of any payment received by any one or more of the Lenders hereunder or
         to reduce the rate of return which any one or more of the Lenders would
         have been able to obtain on its or their overall capital but for
         entering into and/or performing this agreement and evidence
         substantiating the situation has been produced by such one or more of
         the Lenders to the Agent then:-

                  (i)      the Agent shall use its best efforts promptly to
                           notify the Borrower in writing of the situation;

                  (ii)     the Borrower shall pay to the Agent forthwith upon
                           the demand of the Agent such amount as will
                           compensate such one or more of the Lenders for such
                           additional cost or such reduction and a certificate
                           of the additional amount or amounts so required
                           submitted by the Agent to the Borrower shall save for
                           manifest error be conclusive evidence thereof; and

                  (iii)    any such demand may be made by the Agent at any time
                           before or after repayment of the Loan.

8.2      All legal fees and other reasonable costs and expenses whatsoever
         (including without limitation the costs of obtaining, not more than
         twice in each period of twelve (12) months after the date hereof,
         valuations of the Vessel from three (3) independent shipbrokers
         acceptable to the Agent) incurred by the Agent and/or the Trustee
         and/or any one or more of the Lenders in connection with any one or
         more of this agreement, the Security Documents and any other documents
         executed pursuant hereto or thereto shall be paid by the Borrower
         forthwith upon demand by the Agent on a full indemnity basis whether or
         not any Drawing is advanced.

8.3      The Borrower shall pay forthwith upon demand by the Agent all stamp,
         registration and other duties (including any such duties payable by the
         Agent and/or the Trustee and/or any one or more of the Lenders) imposed
         by any authority in respect of any one or more of this agreement, the
         Security Documents and any other documents executed pursuant hereto or
         thereto or otherwise in connection with the Loan.

8.4      Without prejudice to the rights of the Agent and/or the Trustee and/or
         the Lenders

<PAGE>

                                     - 16 -

         under or pursuant to clause 11 hereof the Borrower shall indemnify the
         Agent and/or the Trustee and/or any one or more of the Lenders fully
         forthwith upon demand by the Agent for any and all losses damages
         and/or expenses whatsoever incurred by the Agent and/or the Trustee
         and/or such one or more of the Lenders:-

         (A)      as a result of any Drawing not being advanced for any reason
                  whatsoever in accordance with a notice given pursuant to
                  clause 3.1(C) hereof (provided that no Lender whose default
                  has caused that Drawing not to be advanced may claim any
                  indemnity under this clause 8.4(A));

         (B)      as a result of an Event of Default;

         (C)      in perfecting, protecting the value of or enforcing any of its
                  or their rights or securities under any one or more of this
                  agreement, the Security Documents and any other documents
                  executed pursuant hereto or thereto or in attempting so to do;
                  or

         (D)      as a result of any payment hereunder, whether pursuant to a
                  judgment or otherwise, being made, obtained or enforced in a
                  currency other than United States Dollars.

8.5      In the event that the whole or part of any Drawing is repaid or prepaid
         otherwise than on the final day of an Interest Period in respect
         thereof the Borrower shall (A) indemnify any one or more of the Lenders
         fully forthwith upon demand by the Agent for any and all losses damages
         and/or expenses incurred by such one or more of the Lenders in
         liquidating or reemploying fixed deposits acquired from third parties
         to maintain its or their Contribution(s) to that Drawing or the
         relevant part thereof (as the case may be) until the expiry of the then
         current Interest Period in respect thereof and (B) pay to any one or
         more of the Lenders forthwith on demand any sums due to such one or
         more of the Lenders as a result of that repayment or prepayment under
         clause 8.6 hereof.

8.6      The Borrower shall indemnify any one or more of the Lenders fully
         forthwith upon demand by the Agent for all losses, premiums, penalties,
         costs and expenses whatsoever incurred by such one or more of the
         Lenders in connection howsoever with any interest rate "swap", "cap" or
         other transaction entered into or to be entered

<PAGE>

                                     - 17 -

         into or arranged by such one or more of the Lenders at the request or
         on behalf of the Borrower at any time and from time to time with any
         counterparty a direct or indirect commercial purpose of which is to
         limit or offset the exposure of the Borrower to future increases of
         floating interest rates in connection howsoever with this agreement.

8.7      The indemnities contained in this clause 8 shall apply irrespective of
         any indulgence granted to the Borrower or any other party from time to
         time and shall continue in full force and effect notwithstanding any
         payment in favour of the Agent and/or the Trustee and/or any one or
         more of the Lenders and any amount due from the Borrower under this
         clause 8 will be due as a separate debt and shall not be affected by
         judgment being obtained for any other sums due under any one or more of
         this agreement, the Security Documents and any other documents executed
         pursuant hereto or thereto.

9.       PAYMENTS

9.1      All payments by the Borrower hereunder shall be made to the Agent's
         account with such bank or banks as the Agent shall nominate from time
         to time.

9.2      Subject to the sub-clauses of this clause 9.2 all payments by the
         Borrower hereunder shall be made in full without set-off or
         counterclaim and free and clear of and without deduction or withholding
         for or on account of any tax of any jurisdiction.

         (A)      If the Borrower is required by law to make any deduction or
                  withholding from any payment hereunder for or on account of
                  tax, it shall do so and 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 Agent receives and each relevant party
                  retains (free of any liability in respect of any such
                  deduction or withholding) a net sum equal to the sum it would
                  have received and retained had no deduction or withholding
                  been required to be made.

         (B)      If at any time the Borrower is required by law to make any
                  deduction or withholding from any sum payable by it hereunder
                  (or if thereafter there is any change in the rates at which or
                  the manner in which such deductions or withholdings are
                  calculated) the Borrower shall promptly and fully notify the
                  Agent accordingly.

<PAGE>

                                     - 18 -

         (C)      If the Borrower makes any payment hereunder in respect of
                  which it is required by law to make any deduction or
                  withholding it shall pay the full amount to be deducted or
                  withheld to the relevant taxation or other authority within
                  the time allowed for such payment under applicable law and
                  shall deliver to the Agent within thirty (30) days after it
                  has made such payment to the applicable authority the
                  appropriate receipt or certificate issued by such authority or
                  the Borrower as the case may be evidencing the payment to such
                  authority of all amounts so required to be deducted or
                  withheld from such payment.

9.3      If any sum becomes due for payment hereunder on a day which is not a
         Business Day the due date for payment shall be extended to the next
         succeeding Business Day unless that next succeeding Business Day falls
         within a fresh month in which event the due date for payment shall be
         brought forward to the immediately preceding Business Day. Any interest
         payable shall be adjusted accordingly.

9.4      All payments hereunder shall be made in United States Dollars not later
         than 11.00 a.m. (New York time) on the due dates therefor in such funds
         as may be customary for the same day settlement of international
         banking transactions in United States Dollars in New York City provided
         that payments in respect of costs and expenses shall be made in the
         currencies in which the same are incurred.

9.5      The Agent shall open and maintain on its books a control account in the
         name of the Borrower showing the advance of each Drawing and the
         computation and payment of interest and all other sums due hereunder.
         The Borrower's obligations to repay each Drawing and to pay interest
         thereon and to pay all other sums due hereunder shall be evidenced by
         the entries from time to time made in the control account opened and
         maintained under this clause 9.5 which entries will be conclusive and
         binding in the absence of manifest error.

10.      APPLICATION OF MONEYS

10.1     All moneys assigned to the Agent and/or the Trustee and/or the Lenders
         under the Earnings Assignment shall be paid to the Earnings Account.

<PAGE>

                                     - 19 -

10.2     Subject to clause 10.4 hereof all moneys paid to the Earnings Account
         shall be applied by the Agent as follows:-

         (A)      first in payment of any and all sums whatsoever due and
                  payable to the Agent and/or the Trustee and/or any one or more
                  of the Lenders hereunder (such sums to be paid in such order
                  as the Agent may in its sole discretion elect);

         (B)      second in retention in the Earnings Account of amounts
                  equivalent in aggregate to the amount of interest next falling
                  due to be paid hereunder;

         (C)      third in payment of the costs (if any) incurred by the
                  Borrower in the normal day to day business of operating the
                  Vessel;

         (D)      fourth in accordance with the relevant provisions of the
                  Bridge Loan Facility Agreement; and

         (E)      fifth in retention of any credit balance in the Earnings
                  Account

         Provided That:-

                  (i)     sums retained in the Earnings Account pursuant to
                          clauses 10.2(B) and (E) hereof shall be held on
                          deposit at rates of interest normally paid by the
                          Agent to customers for deposits of like amount and
                          maturity and any interest accruing thereon shall be
                          credited to the Earnings Account at monthly intervals;

                  (ii)    sums retained in the Earnings Account pursuant to
                          clause 10.2(B) hereof shall be applied by the Agent in
                          or towards payment of interest due hereunder on the
                          due dates for payment thereof; and

                  (iii)   nothing herein contained shall be deemed to affect the
                          absolute obligation of the Borrower to pay interest on
                          and to repay each Drawing as provided in clauses 4 and
                          5 hereof.

10.3     Subject to clause 10.4 hereof all moneys payable to the Agent and/or
         the Trustee and/or the Lenders under the Insurance Assignment and any
         other moneys payable to the Agent and/or the Trustee and/or the Lenders
         by any one or more of the Security Parties under any one or more of
         this agreement, the Security Documents and any

<PAGE>

                                     - 20 -

         other documents executed pursuant hereto or thereto the application of
         which is not specifically provided for by another clause hereof shall
         be paid to the Agent's account with such bank or banks as the Agent may
         nominate from time to time and shall be applied by the Agent as
         follows:-

         (A)      all moneys received from a Total Loss or sale of the Vessel
                  shall be applied as follows:-

                  (i)      first in accordance with clause 10.2(A) hereof;

                  (ii)     second in repayment of the Loan, in payment of
                           accrued interest thereon and in payment of any sums
                           due to any one or more of the Lenders by virtue of
                           that repayment under clause 8.5 hereof;

                  (iii)    third in accordance with the relevant provisions of
                           the Bridge Loan Facility Agreement; and

                  (iv)     fourth in payment of any credit balance to the
                           Borrower or to whomsoever may be entitled thereto;
                           and

(B)      all moneys not covered by clause 10.3(A) hereof shall be applied as
         follows:-

                  (i)     first in accordance with clause 10.2(A) hereof;

                  (ii)    second (in respect only of moneys received by virtue
                          of the Insurance Assignment) in reimbursement to the
                          Borrower for such of the costs (if any) incurred by
                          the Borrower in effecting the repair of the damage in
                          respect of which those moneys are received as the
                          Agent shall approve (such approval not to be
                          unreasonably withheld) and in payment to the Earnings
                          Account of all moneys received in respect of loss of
                          hire insurances (if any);

                  (iii)   third in repayment of the Loan, in payment of accrued
                          interest thereon and in payment of any sums due to any
                          one or more of the Lenders by virtue of that repayment
                          under clause 8.5 hereof;

<PAGE>

                                     - 21 -

                  (iv)     fourth in accordance with the relevant provisions of
                           the Bridge Loan Facility Agreement; and

                  (v)      fifth in payment of any credit balance to the
                           Borrower or to whomsoever may be entitled thereto.

10.4     From and after the giving of notice by the Agent to the Borrower
         pursuant to clause 11.1 hereof all moneys whatsoever received or
         recovered by the Agent or the Trustee or any one or more of the Lenders
         from any one or more of the Security Parties under any one or more of
         this agreement, the Security Documents and any other documents executed
         pursuant hereto or thereto or from any other party under any one or
         more of the Mortgage, the Earnings Assignment and the Insurance
         Assignment and all moneys from time to time standing to the credit of
         the Earnings Account shall be paid to the Agent's account with such
         bank or banks as the Agent may nominate from time to time and shall be
         applied by the Agent as follows:-

         (A)      first in accordance with clause 10.2(A) hereof, subject to any
                  right the Agent or the Trustee or any one or more of the
                  Lenders may have to delay any such application in order to
                  maximise its or their claim;

         (B)      second in accordance with the relevant provisions of the
                  Bridge Loan Facility Agreement; and

         (C)      third in payment of any credit balance to the Borrower or to
                  whomsoever may be entitled thereto.

11.      DEFAULT

11.1     The Agent may by notice in writing to the Borrower declare the loan
         facility made available hereunder to be cancelled and the Loan to be
         immediately repayable with accrued interest thereon (plus any sums due
         to any one or more of the Lenders by virtue of that repayment under
         clause 8.5 hereof) and any security held by the Agent or the Trustee or
         any one or more of the Lenders shall become immediately enforceable if
         any of the following events occurs:-

<PAGE>

                                     - 22 -

         (A)      failure by the Borrower to pay promptly on the due date
                  therefor any sum whatsoever due for payment by it under this
                  agreement;

         (B)      any one or more of the Security Parties and ESL making default
                  in the observance or performance of any other obligation
                  covenant or undertaking contained in any one or more of this
                  agreement, the Security Documents and any other documents
                  executed pursuant hereto or thereto and (if the same is in the
                  opinion of the Agent capable of remedy) the continuation of
                  that default unremedied for a period of fifteen (15) days;

         (C)      any of the representations and warranties made or deemed to
                  have been made in any one or more of this agreement, the
                  Security Documents and any other documents executed pursuant
                  hereto or thereto being inaccurate or misleading when made or
                  becoming inaccurate or misleading at any time hereafter were
                  the same to be repeated in relation to the facts subsisting at
                  that time (whether or not any such repetition actually
                  occurs);

         (D)      any event of default occurring under any one or more of the
                  Security Documents;

         (E)      the fulfilment of any one or more of the obligations covenants
                  and undertakings contained in any one or more of this
                  agreement, the Security Documents and any other documents
                  executed pursuant hereto or thereto or the exercise of any of
                  the rights vested in the Agent and/or the Trustee and/or any
                  one or more of the Lenders hereunder or thereunder becoming
                  either unlawful under any applicable law or unauthorised by
                  any authority having jurisdiction or otherwise impossible;

         (F)      a bona fide petition being presented or an order being made or
                  an effective resolution being passed for the commencement of
                  any proceedings for the liquidation winding-up or
                  re-organisation of any one or more of the Security Parties
                  except for the purpose of and followed by an amalgamation or
                  reconstruction the terms of which shall have been previously
                  approved in writing by the Agent;

         (G)      a distress or execution being levied or enforced upon or sued
                  out against any part of the assets of any one or more of the
                  Security Parties which in the Agent's opinion would have a
                  material adverse effect on any one or more of
<PAGE>

                                     - 23 -

                  the Security Parties and not being satisfied removed or
                  discharged within fourteen (14) days;

         (H)      the holder of any Encumbrance taking possession of or a
                  liquidator, administrator, receiver, administrative receiver,
                  trustee or similar officer being appointed in respect of the
                  whole or a substantial part of the assets of any one or more
                  of the Security Parties;

         (I)      any one or more of the Security Parties being unable or
                  admitting its inability to pay its or their lawful debts as
                  they mature or convening a meeting of or preparing to enter
                  into any arrangement or composition with or making a general
                  assignment for the benefit of its or their creditors or being
                  adjudicated bankrupt or insolvent;

         (J)      any other Borrowed Money of any one or more of the Security
                  Parties becoming due or becoming capable of being declared due
                  prior to its stated date of maturity by reason of default on
                  the part of any one or more of the Security Parties;

         (K)      any one or more of the Security Parties ceasing to carry on or
                  suspending or threatening to cease to carry on or to suspend
                  its or their business or a substantial part of the assets or
                  business of any one or more of the Security Parties being
                  seized confiscated or expropriated;

         (L)      the market value of the Vessel (such market value to be
                  conclusively determined as the average of the latest three (3)
                  valuations obtained by the Agent as provided in clause 8.2
                  hereof) at any time falling below one hundred and fifty five
                  per cent (155%) of the amount of the Loan then outstanding and
                  the Borrower failing either to prepay the relevant part of the
                  Loan or to provide additional security acceptable to the Agent
                  within fourteen (14) days after receiving written notice from
                  the Agent to that effect;

         (M)      a Total Loss occurring and either (i) the Agent not being
                  satisfied at any time in its absolute discretion that the
                  Total Loss is adequately covered by insurance and that the
                  relevant insurance proceeds will be paid to the Agent or

<PAGE>

                                     - 24 -

                  (ii) any insurance claim in respect thereof being rejected by
                  the underwriters at any time or (iii) the Agent failing to
                  receive the insurance proceeds in respect thereof within one
                  hundred and eighty (180) days thereafter;

         (N)      any one or more of the Subject Documents being repudiated or
                  terminated without the prior written consent of the Agent;

         (O)      a material adverse change occurring in the business, assets or
                  financial condition of any one or more of the Security Parties
                  which may reasonably be considered to affect its or their
                  ability to comply with all or any of its or their respective
                  obligations under any one or more of the Subject Documents; or

         (P)      an event of default occurring under the Bridge Loan Facility
                  Agreement or the Seller's Credit Agreement.

12.      SECURITY

12.1     As security for the Loan, interest thereon and all other sums due and
         to become due hereunder the Borrower shall provide the Agent with the
         following documents in form and substance satisfactory to the Agent
         which documents shall be executed in favour of the Trustee and be held
         by the Trustee on trust for the Agent, the Trustee and the Lenders and
         their respective successors, assignees and transferees on the terms of
         the Deed of Agency and Trust:-

         (A)      duly registered first Panamanian naval mortgage over the
                  Vessel duly executed by the Borrower;

         (B)      first priority assignment duly executed by the Borrower of all
                  insurances whatsoever in respect of the Vessel and loss of its
                  earnings and all compensation in respect of the requisition
                  for title or other compulsory acquisition of the Vessel (with
                  the exception of requisition hire);

         (C)      first priority assignment duly executed by the Borrower of the
                  benefit of all earnings whatsoever of the Vessel (including
                  requisition hire);

         (D)      guarantee and indemnity duly executed by the Guarantor;

         (E)      first priority charge over all the authorised and issued
                  shares in the Borrower

<PAGE>

                                     - 25 -

                  duly executed by the Guarantor;

         (F)      tripartite agreement duly executed by (i) the Agent, the
                  Trustee and the Lenders, (ii) Neptun Maritime Oyj and ESL and
                  (iii) the Borrower and the Guarantor coordinating the
                  interests of ESL under the Seller's Credit Agreement and the
                  Seller's Credit Securities with those of the Agent and/or the
                  Trustee and/or the Lenders under this agreement and the other
                  Security Documents; and

         (G)      letter of subordination duly executed by the Manager
                  subordinating its interests under the Management Agreement to
                  those of the Agent and/or the Trustee and/or the Lenders under
                  this agreement.

13.      REPRESENTATIONS AND WARRANTIES

13.1     The Borrower hereby represents and warrants that:-

         (A)      each of the Security Parties is a duly incorporated company
                  validly existing and in good standing under the laws of its
                  country of incorporation and all the shares in the Borrower
                  are beneficially owned by the Guarantor;

         (B)      each of the Security Parties has full power and authority to
                  execute deliver and perform such of the Subject Documents to
                  which it is a party;

         (C)      each of the Security Parties has taken all necessary corporate
                  or other action required to authorise the execution delivery
                  and performance of such of the Subject Documents to which it
                  is a party;

         (D)      all consents licences approvals or authorisations whatsoever
                  required to make the Subject Documents legal valid enforceable
                  and admissible in evidence have been obtained and are in full
                  force and effect;

         (E)      from and after execution and delivery thereof each of the
                  Subject Documents will constitute legal valid and binding
                  obligations of the parties thereto (other than the Agent, the
                  Trustee and the Lenders) enforceable in accordance with

<PAGE>

                                     - 26 -

                  its terms and will not contravene any applicable law or
                  regulation or any contractual constitutional or other
                  restriction binding on any of the parties thereto (other than
                  the Agent, the Trustee and the Lenders);

         (F)      as at the date hereof no material litigation or administrative
                  proceedings of or before any board of arbitration, Court or
                  Governmental authority or agency is pending or (to the
                  Borrower's knowledge) threatened the result of which would or
                  might be to have a material adverse effect on the business
                  assets or financial condition of any one or more of the
                  Security Parties;

         (G)      the copies of any of the Subject Documents delivered or to be
                  delivered to the Agent hereunder constitute the full agreement
                  between the parties thereto with respect to the subject matter
                  thereof and none of the parties thereto is in default
                  thereunder;

         (H)      all historic financial information and other documentation
                  submitted to the Agent by or on behalf of the Borrower in
                  connection herewith is accurate and correct in all material
                  respects and not misleading;

         (I)      the claims of the Agent and/or the Trustee and/or the Lenders
                  against the Borrower under this agreement will rank at least
                  pari passu with the claims of all unsecured creditors of the
                  Borrower other than claims of such creditors to the extent
                  that they are statutorily preferred;

         (J)      each Security Party and its business and assets (including,
                  without limitation, all computer systems, all systems and
                  equipment containing embedded microchips (including leased
                  systems and equipment) and any other systems, equipment or
                  parts of the business or assets whatsoever of that Security
                  Party whose proper functioning or operation is capable of
                  being affected by the incorrect processing, storing,
                  calculation or recognition of dates, together with all
                  software and data in connection with any of the foregoing)
                  shall at all times comply with the requirements of Year 2000
                  Conformity as defined in "A DEFINITION OF YEAR 2000 CONFORMITY
                  REQUIREMENTS" issued by the British Standards Institution (BSI
                  DISC PD2000-1:1998) or such later reviewed, revised or amended
                  version thereof as may be published by the British Standards
                  Institution from time to time (in which case the later version
                  shall be the relevant one for the purposes of this clause);
                  and

<PAGE>

                                     - 27 -

         (K)      no Event of Default has occurred or is continuing and no event
                  which with the giving of notice and/or lapse of time would
                  constitute an Event of Default has occurred or is continuing.

14.      COVENANTS

14.1     The Borrower hereby covenants that from the date hereof until the
         Borrower has no remaining obligations, actual or contingent, under this
         agreement:-

         (A)      the Borrower will file all requisite tax returns and will pay
                  all tax as shown to be due and payable on such returns or any
                  of the assessments made against it (other than those being
                  contested in good faith);

         (B)      the Borrower will carry on and conduct its business in a
                  proper and efficient manner and will duly pay all outgoings as
                  and when they fall due and in particular without limiting the
                  generality of the foregoing will duly observe and perform all
                  the terms and conditions of any contract of employment of the
                  Vessel to be observed and performed by it;

         (C)      the Borrower will prepare or cause to be prepared, in
                  accordance with GAAP, annual audited accounts for the Borrower
                  and unaudited quarterly accounts for the Borrower; the
                  Borrower will furnish the Agent with copies of the audited
                  annual accounts no later than ninety five (95) days after the
                  end of each financial year and copies of the unaudited
                  quarterly accounts no later than fifty (50) days after the end
                  of each financial quarter; the audited annual accounts shall
                  include profit and loss accounts and balance sheets certified
                  and audited by an accountant acceptable to the Agent which
                  shall include Grant Thornton L.L.P.;

         (D)      the Borrower will provide the Agent in a form acceptable to
                  the Agent no later than ten (10) days after the end of each
                  month monthly management information (including traffic
                  statistics, cash flows, booking reports and outstanding trade
                  debt) in respect of the Borrower;

         (E)      the Borrower shall procure that the Earnings Account is opened
                  and

<PAGE>

                                     - 28 -

                  maintained at the bank specified in the definition thereof in
                  clause 1.2 hereof and shall not keep any accounts with any
                  bank other than the Agent unless otherwise agreed specifically
                  with the Agent;

         (F)      the Borrower shall promptly furnish to the Agent all such
                  accounts and financial information concerning any one or more
                  of the Security Parties and the Vessel as the Agent may from
                  time to time reasonably require including without limiting the
                  generality of the foregoing cash flow analyses, budgets and
                  details of the operating costs of the Vessel;

         (G)      the Vessel, its earnings and the interests of the Agent and/or
                  the Trustee and/or the Lenders as mortgagees of the Vessel
                  shall be insured with such underwriters insurance offices and
                  clubs for such amounts for such risks in such form and upon
                  such conditions as are satisfactory to the Agent from time to
                  time provided that the amount of each of the marine and war
                  risks insurances shall not in any event be less than the
                  greater from time to time of (i) the market value of the
                  Vessel and (ii) one hundred and twenty per cent (120%) of the
                  aggregate amount of the Loan, the Bridge Loan Facility and the
                  Seller's Credit then outstanding;

         (H)      the Borrower will not without the prior written consent of the
                  Agent:-

                  (i)      create or allow to subsist any Encumbrance over any
                           of its assets or any part thereof save for Permitted
                           Liens and those created by any of the Security
                           Documents;

                  (ii)     incur any liability in respect of Borrowed Money
                           except for unsecured Borrowed Money subordinated to
                           the Loan hereunder;

                  (iii)    make loans or advances to others (except for loans or
                           advances made in the ordinary course of business in
                           connection with the chartering and/or operation
                           and/or repair of the Vessel);

                  (iv)     except in connection with the chartering and/or
                           operation and/or repair of the Vessel incur any other
                           liability to a third party which in the opinion of
                           the Agent is of a substantial nature;

                  (v)      consolidate with any other company or merge into any
                           company;

<PAGE>

                                     - 29 -

                  (vi)     engage in any business other than the ownership
                           operation chartering and management of the Vessel;

                  (vii)    guarantee endorse or otherwise become or remain
                           liable in respect of the obligations of any person
                           firm or corporation;

                  (viii)   pay any dividends or other distributions or issue any
                           new shares or transfer any shares;

                  (ix)     sell or otherwise dispose of the Vessel or any share
                           therein or any other asset (the Agent's consent not
                           to be unreasonably withheld);

                  (x)      make or allow any alteration to or waiver of the
                           terms of any one or more of the Subject Documents;

                  (xi)     appoint any manager of the Vessel other than the
                           Manager;

                  (xii)    change the class, flag or employment of the Vessel as
                           a passenger cruise ship; or

                  (xiii)   make any acquisitions or investments other than the
                           regular dry-docking and maintenance of the Vessel
                           (the Agent's consent not to be unreasonably
                           withheld);

         (I)      the Borrower will procure that the amount standing to the
                  credit of the Earnings Account shall not at any time fall
                  below two million United States Dollars (USD2,000,000);

         (J)      for so long as any sums remain actually or contingently
                  outstanding under or pursuant to this agreement or any of the
                  Security Documents the Borrower shall not repay the Seller's
                  Credit more quickly than by fifty eight (58) monthly
                  instalments commencing fifteen (15) months after the first
                  Drawdown Date, the first amounting to six hundred and twelve
                  thousand United States Dollars (USD612,000), the second to the
                  fifty seventh each amounting to two hundred and four thousand
                  United States Dollars (USD204,000) and the final

<PAGE>

                                     - 30 -

                  instalment amounting to the balance of the Seller's Credit;

         (K)      from and after the occurrence of an Event of Default the
                  Borrower shall not, after receiving written notice from the
                  Agent to that effect, make any payment of principal or
                  interest in respect of the Seller's Credit for so long as that
                  Event of Default is continuing;

         (L)      the Borrower shall procure that its Debt Service Coverage
                  Ratio (calculated as set out below, with the first such
                  calculation being made twelve (12) months after the first
                  Drawdown Date and the subsequent calculations being made at
                  three (3) monthly intervals thereafter) shall not be less than
                  the ratio specified in item 1 in schedule B hereto (for the
                  period of twelve (12) months after the first Drawdown Date)
                  and the ratio specified in item 2 in schedule B hereto (for
                  any period thereafter) and for this purpose the Debt Service
                  Coverage Ratio shall be calculated in accordance with the
                  following formula:-

                                     EBITDA

                               -------------------

                               Financial Expenses

                  where

                  "EBITDA" means, for the previous period of twelve (12) months,
                  the aggregate of:

                  (i)     Net Income (but excluding gains and losses from the
                          sale of assets or reserves relating thereto and items
                          classified as extraordinary or non-recurring) from the
                          Borrower's operations for such period and for this
                          purpose Net Income means the consolidated net income
                          of the Borrower as determined in accordance with GAAP;
                          and

                  (ii)    the aggregate amounts deducted in determining Net
                          Income for such period in respect of depreciation,
                          amortisation, taxes, deferred income and interest
                          expense of the Borrower; and

<PAGE>

                                     - 31 -

                  "Financial Expenses" means, for the previous period of twelve
                  (12) months, the sum of:

                  (i)     the aggregate principal payable or paid during such
                          period on any Borrowed Money of the Borrower (other
                          than the scheduled principal repayment in respect of
                          the Bridge Loan Facility and principal repayments
                          under this agreement to the extent that they were
                          redrawn during the same period);

                  (ii)    aggregate interest expense (including, without
                          limitation, capitalised interest accrued during such
                          period) of the Borrower for such period; and

                  (iii)   all rent and any capital lease obligations or
                          operating lease obligations by which the Borrower is
                          bound which are payable or paid during such period as
                          calculated in accordance with GAAP and derived from
                          the then latest accounts of the Borrower;

         (M)      not later than six (6) months prior to the due date for full
                  repayment of the Bridge Loan Facility the Borrower shall
                  demonstrate to the Lenders' satisfaction that sufficient cash
                  or committed facilities are available to enable the Borrower
                  to repay the Bridge Loan Facility in full on the due date
                  therefor;

         (N)      the Borrower shall provide the Agent with compliance
                  certificates in relation to the relevant financial covenants
                  contained in this agreement in the form set out in appendix II
                  hereto on or before the first Drawdown Date and at three (3)
                  monthly intervals after the first Drawdown Date and, for the
                  avoidance of doubt, the covenant in clause 14.1(L) hereof
                  shall not be deemed to be a 'relevant financial covenant' for
                  the purposes of this clause 14.1(N) until the date falling
                  twelve (12) months after the first Drawdown Date;

         (O)      the Borrower will promptly inform the Agent if any Event of
                  Default or any event which with the giving of notice and/or
                  lapse of time would constitute an Event of Default occurs or
                  if any event occurs which may materially adversely affect its
                  ability to perform any of its obligations under any one or
                  more of this agreement, the Security Documents and any other
                  documents executed pursuant hereto or thereto; and

<PAGE>

                                     - 32 -

         (P)      the Borrower will from time to time at the request of the
                  Agent execute and deliver to the Agent or procure the
                  execution and delivery to the Agent of all such documents as
                  the Agent shall deem desirable in its absolute discretion for
                  giving full effect to this agreement and for perfecting,
                  protecting the value of or enforcing any rights or securities
                  granted to the Agent and/or the Trustee and/or the Lenders
                  under any one or more of this agreement, the Security
                  Documents and any other documents executed pursuant hereto or
                  thereto.

15.      SET-OFF AND SHARING OF PAYMENTS

15.1     The Agent, the Trustee and each of the Lenders are hereby authorised to
         combine any and all accounts held by the Borrower with any of them at
         any of their respective offices and to apply (without any prior notice)
         any credit balance to which the Borrower is then beneficially entitled
         on any such account (whether or not that credit balance is then due to
         the Borrower) in or towards satisfaction of any sums then due and
         payable by the Borrower hereunder. For that purpose the Agent, the
         Trustee and each of the Lenders are hereby authorised to use all or
         part of that credit balance to buy such other currency or currencies as
         may be required to enable any of them to effect that application. The
         Agent, the Trustee and the Lenders shall not be obliged to exercise any
         of their rights under this clause, which shall be without prejudice and
         in addition to any right of set off, combination of accounts, lien or
         other rights to which any of them at any time otherwise is entitled
         (whether by operation of law, contract or otherwise).

15.2     If pursuant to clause 15.1 hereof or otherwise any Lender shall at any
         time receive appropriate or otherwise obtain from any one or more of
         the Security Parties any payment on account of principal interest or
         other sums due from the Borrower hereunder (which are not due solely to
         that Lender under the terms of this agreement) in a greater proportion
         than its Contribution then that Lender shall remit via the Agent to
         such of the other Lenders as have received a smaller proportion of that
         payment than their Contributions such sums as shall ensure that each
         Lender receives a proportion of that payment corresponding to its
         Contribution and each such remittance shall be treated for the purposes
         of this agreement as having been made to the receiving Lender by the
         Borrower instead of the Lender by whom such remittance was made
         Provided Always That if at any time thereafter that payment is required
         by a

<PAGE>

                                     - 33 -

         court of competent jurisdiction to be returned to the Borrower or any
         third party each of the Lenders shall return the relevant percentage
         thereof.

16.      ASSIGNMENT AND PARTICIPATION

16.1     This agreement shall be binding upon and inure to the benefit of the
         Agent, the Trustee, the Lenders and each of them and the Borrower and
         their respective successors and assigns.

16.2     The Borrower may not assign its rights or obligations hereunder without
         the prior written consent of the Agent.

16.3     Each of the Lenders may at any time with the prior written consent of
         the Agent and the Borrower (such consents not to be unreasonably
         withheld and no such consent to be required at all from the Borrower if
         an Event of Default has occurred and is subsisting) assign transfer or
         grant participations in all or part of its Contribution to the Loan or
         any part thereof and its rights and obligations hereunder to any other
         bank or financial institution and for this purpose:-

         (A)      no such consents shall be required from the Agent or the
                  Borrower if the other bank or financial institution is either
                  another of the Lenders or a subsidiary company, holding
                  company or sister company of the relevant Lender;

         (B)      the Agent, the Trustee and the relevant Lender shall be at
                  liberty to disclose on a confidential basis to any such
                  assignee transferee or grantee (or to any potential such
                  assignee transferee or grantee) all such information
                  concerning any one or more of the Security Parties, the Vessel
                  and the Subject Documents as the Agent, the Trustee and the
                  relevant Lender may deem appropriate; and

         (C)      the Borrower shall upon demand by the Agent and at the expense
                  of the relevant Lender execute and deliver to the Agent all
                  such documents and do all such acts and things as the Agent
                  may deem necessary or desirable in its absolute discretion for
                  giving full effect to any such assignment transfer or
                  participation.

16.4     The Agent and/or the Trustee may at any time signify its or their
         intention to resign by giving written notice to the Borrower and the
         Lenders provided that such resignation shall not take effect until a
         successor Agent and/or Trustee (as the case may be) has

<PAGE>

                                     - 34 -

         been appointed and has accepted that appointment. After the giving of
         such notice, a successor Agent and/or Trustee shall be appointed in
         accordance with the relevant provisions of the Deed of Agency and Trust
         and the Lenders shall procure that the successor Agent and/or Trustee
         shall give to the Borrower written notice of its acceptance of
         appointment. Upon its appointment as Agent and/or Trustee, such
         successor Agent and/or Trustee shall succeed to and become vested with
         all the rights powers and privileges and duties of the retiring Agent
         and/or Trustee, and the retiring Agent and/or Trustee shall be
         discharged from its duties and obligations under this agreement.

17.      MISCELLANEOUS

17.1     Time shall be of the essence of this agreement but no failure or delay
         on the part of the Agent or the Trustee or any one or more of the
         Lenders to exercise any power or right hereunder shall operate as a
         waiver of such power or right nor shall any single or partial exercise
         of any power or right hereunder preclude any other or further exercise
         thereof or the exercise of any other power or right hereunder. The
         powers and rights provided to the Agent or the Trustee or any one or
         more of the Lenders in this agreement are cumulative and shall not
         exclude any powers or rights provided to the Agent or the Trustee or
         any one or more of the Lenders by law.

17.2     In the event of any of the provisions contained in any one or more of
         this agreement, the Security Documents and any other documents executed
         pursuant hereto or thereto being invalid, illegal or unenforceable in
         any respect under any law, the validity, legality and enforceability of
         the remaining provisions herein or therein contained shall not in any
         way be affected or impaired thereby.

17.3     Neither the Agent nor the Trustee nor any of the Lenders shall be
         liable for any failure to meet its obligations hereunder resulting from
         any cause whatsoever beyond its control.

18.      NOTICES

18.1     Any notice or other correspondence in connection herewith required to
         be sent or given by the Borrower to the Agent or the Trustee or any one
         or more of the Lenders

<PAGE>

                                     - 35 -

         shall be sent to the Agent in the English language at 19 Thomas More
         Street, London E1W 1YF (telex no. 290562 facsimile no. +44 171 709
         7001) or to such other address or addresses as may from time to time be
         notified by the Agent to the Borrower for such purpose.

18.2     Any notice or other correspondence in connection herewith required to
         be sent or given by the Agent or the Trustee or any one or more of the
         Lenders to the Borrower shall be sent to the Borrower in the English
         language at c/o Commodore Holdings Limited, 4000 Hollywood Boulevard,
         Suite 385-S, Hollywood, Fl 33021, U.S.A., Attention: Chief Financial
         Officer (facsimile no. +954 921 2147) with copies to Kathleen L
         Deutsch, P.A., Broad and Cassel, Miami Center - Suite 3000, 201 S.
         Biscayne Boulevard, Miami, Fl 33131, U.S.A. (facsimile no. +305 373
         9443) or to such other address or addresses as the Borrower may from
         time to time notify to the Agent in writing and shall be deemed to have
         been validly given and received on the date of dispatch if sent by
         telex and five (5) days after having been posted if sent by prepaid
         first class or airmail post.

19.      PROPER LAW AND JURISDICTION

19.1     This agreement shall be governed by and construed in accordance with
         the Laws of England and for the exclusive benefit of the Agent, the
         Trustee and the Lenders the Borrower hereby irrevocably submits to the
         jurisdiction of the High Courts of Justice in England. Such submission
         shall not limit the right of the Agent, the Trustee and the Lenders to
         commence any proceedings relating to this agreement (in addition or
         alternatively) in any other jurisdiction which the Agent deems fit. The
         Borrower hereby irrevocably authorises and appoints Consult Marine of
         58 London Fruit Exchange, Brushfield Street, London E1 6EP as its agent
         in England for the acceptance of service of legal proceedings on it
         hereunder.

<PAGE>

                                     - 36 -

IN WITNESS whereof the parties hereto have executed this agreement the day and
year first above written.

THE LENDERS

MERITA BANK PLC *

Lending Office:-
         19 Thomas More Street
         London E1W 1YF

By: /s/ Kirsten Kaarre Jensen
   -------------------------------------

CHRISTIANIA BANK OG KREDITKASSE ASA *

Lending Office:-
         Middelthunsgate 17
         0368 Oslo
         Norway

By: /s/ Ulv E. Aasland
   -------------------------------------

SKANDINAVISKA ENSKILDA BANKEN AB (PUBL) *

Lending Office:-
         2 Cannon Street
         London EC4M 6XX

By: /s/ Jonathan Pratt
   -------------------------------------

THE AGENT

MERITA BANK PLC

By: /s/ Kirsten Kaarre Jensen
   -------------------------------------

<PAGE>

                                     - 37 -

THE BORROWER

CROWN CRUISES OF PANAMA, INC.

By: /s/ Jeffrey I. Binder
   -------------------------------------

THE TRUSTEE

MERITA BANK PLC

By: /s/ Kirsten Kaarre Jensen
   -------------------------------------

All in the presence of:-

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