Document:

d864185_ex4-7.htm

    Exhibit 4.7

      

      

      

      

      

      Date 19 April 2007

      

      

      

      

      

      

      DRYSHIPS
INC.

      as
Borrower

      

      

      -
and -

      

      

      THE
BANKS AND FINANCIAL INSTITUTIONS

      listed
in Schedule 1

      as
Lenders

      

      

      -
and -

      

      

      HSH
NORDBANK AG

      as
Agent and as Security Trustee

      

      

      

      

      

      

      

      
        

        LOANLOAN AGREEMENT

        

      

      relating
to a bridge loan facility of up to (initially) 
US$150,000,000 to part
finance the acquisition of up to 
six  bulk carriers

      

      

      

      
        
          
            WATSON,
FARLEY & WILLIAMS

            Piraeus

            

          

           

        

        
           

          
            

          

        

        
           

        

      

      INDEX

      Clause                                                                                                                            Page

       

      

        
          	
                  1

                	
                  INTERPRETATION 

                	
                  1

                

        

        
          	
                  2

                	
                  FACILITY 

                	
                  16

                

        

        
          	
                  3

                	
                  POSITION
      OF THE LENDERS AND THE MAJORITY LENDERS 

                	
                  17

                

        

        
          	
                  4

                	
                  DRAWDOWN 

                	
                  18

                

        

        
          	
                  5

                	
                  INTEREST 

                	
                  19

                

        

        
          	
                  6

                	
                  INTEREST
      PERIODS 

                	
                  21

                

        

        
          	
                  7

                	
                  DEFAULT
      INTEREST 

                	
                  22

                

        

        
          	
                  8

                	
                  REPAYMENT
      AND PREPAYMENT 

                	
                  23

                

        

        
          	
                  9

                	
                  CONDITIONS
      PRECEDENT 

                	
                  24

                

        

        
          	
                  10

                	
                  REPRESENTATIONS
      AND WARRANTIES 

                	
                  24

                

        

        
          	
                  11

                	
                  GENERAL
      UNDERTAKINGS 

                	
                  26

                

        

        
          	
                  12

                	
                  CORPORATE
      UNDERTAKINGS 

                	
                  29

                

        

        
          	
                  13

                	
                  INSURANCE 

                	
                  30

                

        

        
          	
                  14

                	
                  SHIP
      COVENANTS 

                	
                  35

                

        

        
          	
                  15

                	
                  VALUATIONS 

                	
                  39

                

        

        
          	
                  16

                	
                  PAYMENTS
      AND CALCULATIONS 

                	
                  40

                

        

        
          	
                  17

                	
                  APPLICATION
      OF RECEIPTS 

                	
                  42

                

        

        
          	
                  18

                	
                  APPLICATION
      OF EARNINGS 

                	
                  43

                

        

        
          	
                  19

                	
                  EVENTS
      OF DEFAULT 

                	
                  43

                

        

        
          	
                  20

                	
                  FEES
      AND EXPENSES 

                	
                  47

                

        

        
          	
                  21

                	
                  INDEMNITIES 

                	
                  48

                

        

        
          	
                  22

                	
                  NO
      SET-OFF OR TAX DEDUCTION 

                	
                  50

                

        

        
          	
                  23

                	
                  ILLEGALITY,
      ETC 

                	
                  51

                

        

        
          	
                  24

                	
                  INCREASED
      COSTS 

                	
                  52

                

        

        
          	
                  25

                	
                  SET
      OFF 

                	
                  53

                

        

        
          	
                  26

                	
                  TRANSFERS
      AND CHANGES IN LENDING OFFICE 

                	
                  54

                

        

        
          	
                  27

                	
                  VARIATIONS
      AND WAIVERS 

                	
                  57

                

        

        
          	
                  28

                	
                  NOTICES 

                	
                  58

                

        

        
          	
                  29

                	
                  SUPPLEMENTAL 

                	
                  59

                

        

        
          	
                  30

                	
                  LAW
      AND JURISDICTION 

                	
                  60

                

        

         

        
          
            	
                    SCHEDULE 1  LENDERS AND
      COMMITMENTS 

                  	
                     62

                  
	 	 
	SCHEDULE 2  DRAWDOWN NOTICE 	
                     63

                  
	 	 
	SCHEDULE 3  CONDITION PRECEDENT
      DOCUMENTS 	
                     64

                  
	 	 
	SCHEDULE 4  TRANSFER CERTIFICATE 	
                     67

                  
	 	 
	SCHEDULE 5  MANDATORY COST FORMULA 	
                     71

                  
	 	 
	EXECUTION PAGE 	
                     74

                  

          

           

        

         

        
          
             

          

          
             

            
              

            

          

          
             

          

        

      THIS AGREEMENT is made on 19
April 2007

      

      BETWEEN

      

      
        	
                (1)  

              	
                DRYSHIPS INC. a
      corporation incorporated in the Marshall Islands whose registered office
      is at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, The
      Marshall Islands MH 96960 as Borrower;

              

      

       

      
        	
                (2)  

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

              

      

       

      
        	
                (3)  

              	
                HSH NORDBANK AG acting
      through its office at Gerhart-Hauptmann-Platz 50, D-20095, Hamburg,
      Germany, as Agent;
      and

              

      

       

      
        	
                (4)  

              	
                HSH NORDBANK AG acting
      through its office at Gerhart-Hauptmann-Platz 50, D-20095, Hamburg,
      Germany, as Security Trustee.

              

      

       

      

      BACKGROUND

      

      The
Lenders have agreed to make available to the Borrower a bridge loan facility of
(initially) up to $150,000,000 as this amount may be increased to up to
$181,000,000 subject to the terms and on the conditions set out in Clause 2.1
(to be made available in up to six advances) for the purpose of refinancing or
financing (as the case may be) part of the purchase price of the following
vessels:

       

      
        	
                (a)  

              	
                 “PRIMERA”
      by Kronos Owning Company Limited;

              

      

       

      
        	
                (b)  

              	
                “OINOUSSIAN
      LEGEND” (tbr “MENORCA”) by Atlas Owning Company
  Limited;

              

      

       

      
        	
                (c)  

              	
                “RESTLESS”
      (tbr “MARBELLA”) by Dione Owning Company
  Limited;

              

      

       

      
        	
                (d)  

              	
                “SPRING
      BRAVE” (tbr “BRISBANE”) by Trojan Maritime
Co.;

              

      

       

      
        	
                (e)  

              	
                “SONGA
      HUA” (tbr “BARGARA”) by Selene Owning Company Limited;
  and

              

      

       

      
        	
                (f)  

              	
                “SONGA
      HUI” (tbr “CAPITOLA”) by Tethys Owning Company
  Limited,

              

      

       

      each
being an indirect wholly-owned subsidiary of the Borrower, in each case pursuant
to the relevant MOA.

      

      IT IS AGREED as
follows:

      

      
        	
                1  

              	
                INTERPRETATION

              

      

       

      
        	
                1.1  

              	
                Definitions.  Subject
      to Clause 1.5, in this Agreement:

              

      

       

      “Account Pledge” means, in
relation to each Earnings Account, a deed creating security in respect of that
Earnings Accounts in such form as the Lenders may approve or
require;

       

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

       

      
        	
                 
      

              	
                “Affected Lender” has the
      meaning given in Clause 5.6;

              

      

       

      

        
          
             

          

          
             

            
              

            

          

          
             

          

        

        “Agency and Trust
Deed”  means the agency and trust deed executed or to be
executed between the Borrower, the Lenders, the Agent and the Security Trustee
in such form as the Lenders may approve or require;

        

        
          	
                   
      

                	
                  “Agent”  means
      HSH Nordbank AG and any of its successors including, without limitation,
      any successor appointed under clause 5 of the Agency and Trust
      Deed;

                

        

        

        “Approved
Broker”  means each of Braemar Seascope Shipbrokers Ltd., H.
Clarkson & Company Limited, Barry Rogliano Salles S.A., R.S. Platou
Shipbrokers A.S., Galbraith’s Limited, ACM Shipping Ltd, P.F. Bassoe AS, Arrow
Sale & Purchase (UK) Ltd., Simpson Spence & Young, Fearnley AS and
Maersk Shipbrokers;

        

        
          	
                   
      

                	
                  “Approved
      Flag”  means the Maltese flag, the Cyprus flag, the
      Bahamas flag, the Panamanian flag, the Liberian flag, the Marshall Islands
      flag or such other flag as the Agent may, acting upon the instructions of
      all the Lenders, approve as the flag on which a Ship shall be
      registered;

                

        

        

        
          	
                   
      

                	
                  “Approved Flag
      State”  means Malta, Cyprus, Bahamas, Panama, Liberia,
      the Marshall Islands or any other country in which the Agent may, acting
      upon the instructions of all the Lenders, approve that a Ship be
      registered;

                

        

        

        “Approved Manager” means, in
relation to a Ship, Cardiff Marine Inc., a corporation incorporated in the
Republic of Liberia and maintaining a ship management office at Omega Building,
80 Kifissias Avenue, Maroussi 151 25, Greece, or any other company which the
Agent may, with the authorisation of the Majority Lenders, approve from time to
time as the technical and/or commercial agent of a Ship;

         

        “Atlas”  means Atlas
Owning Company Limited, a corporation incorporated and existing under the laws
of the Republic of the Marshall Islands and having its registered office at
Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands
MH96960;

         

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

         

        
          	
                   
      

                	
                  (a)

                	
                  26
      May 2007 (or such later date as Agent may, with the authorisation of all
      the Lenders, agree with the Borrower);
or

                

        

         

        
          	
                   
      

                	
                  (b)

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

                

        

         

        “BARGARA”  means the
2002-built bulk carrier of 74,816 deadweight tons currently registered in the
ownership of the relevant Seller under Marshall Islands flag with the name
“SONGA HUA” which is to be acquired by Selene pursuant to the relevant MOA and
registered in the ownership of Selene under Maltese flag with the name
“BARGARA”;

         

        “Borrower” means Dryships Inc.,
a corporation incorporated and existing under the laws of the Marshall Islands
and having its registered office at Trust Company Complex, Ajeltake Road,
Ajeltake Island, Majuro, Marshall Islands MH96960;

         

        “BRISBANE”  means the
1995-built bulk carrier of 151,066 deadweight tons currently registered in the
ownership of the relevant Seller under Panamanian flag with the
name

         

        
          
            
               

            

             

          

          
             

            
              

            

          

          
             

          

        

        “SPRING
BRAVE” which is to be acquired by Trojan pursuant to the relevant MOA and
registered in the ownership of Trojan under Maltese flag with the name
“BRISBANE”;

         

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

         

        “CAPITOLA”  means the
2001-built bulk carrier of 74,832 deadweight tons currently registered in the
ownership of the relevant Seller under Marshall Islands flag with the name
“SONGA HUI” which is to be acquired by Tethys pursuant to the relevant MOA and
registered in the ownership of Tethys under Maltese flag with the name
“CAPITOLA”;

         

        “Closing
Date”  means the earlier to
occur of:

         

        (a)    the
date of the signing of this Agreement; and

         

        (b)    19
April 2007,

         

        or
such later date as the Lenders may agree with the Borrower;

        

        
          	
                   
      

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

                

        

        

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

         

        
          	
                   
      

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

                

        

         

        
          	
                   
      

                	
                  “Creditor
      Party”  means the Agent, the Security Trustee or any
      Lender, whether as at the date of this Agreement or at any later
      time;

                

        

        

        “Deed of Covenant” means, in
relation to a Ship, the deed of covenant collateral to the Mortgage on such Ship
creating a first charge over such Ship, in such form as the Lenders may approve
or require and, in the plural, means all of them;

         

        “Dione”  means Dione
Owning Company Limited, a corporation incorporated and existing under the laws
of the Republic of the Marshall Islands and having its registered office at
Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands
MH96960;

         

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

         

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

         

        “Drawdown Notice” means a
notice in the form set out in Schedule 2 (or in any other form which the Agent
approves or reasonably requires);

         

        
          
            
                                                                              

            

             

          

          
             

            
              

            

          

          
             

          

        

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

         

        
          	
                   
      

                	
                  (a)

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

                

        

         

        
          	
                   
      

                	
                  (b)

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

                

        

         

        
          	
                   
      

                	
                  (c)

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

                

        

         

        “Earnings
Account”  means:

         

        
          	
                   
      

                	
                  (a)

                	
                  in
      the case of “PRIMERA” an account in the name of Kronos with the Agent
      designated “Kronos Owning Company Limited - Earnings
    Account”;

                

        

         

        
          	
                   
      

                	
                  (b)

                	
                  in
      the case of “MENORCA”, an account in the name of Atlas with the Agent
      designated “Atlas Owning Company Limited - Earnings
    Account”;

                

        

         

        
          	
                   
      

                	
                  (c)

                	
                  in
      the case of “MARBELLA”, an account in the name of Dione with the Agent
      designated “Dione Owning Company Limited - Earnings
    Account”;

                

        

         

        
          	
                   
      

                	
                  (d)

                	
                  in
      the case of “BRISBANE”, an account in the name of Trojan with the Agent
      designated “Trojan Maritime Co. - Earnings
  Account”;

                

        

         

        
          	
                   
      

                	
                  (e)

                	
                  in
      the case of “BARGARA”, an account in the name of Selene with the Agent
      designated “Selene Owning Company Limited - Earnings
    Account”;

                

        

         

        
          	
                   
      

                	
                  (f)

                	
                  in
      the case of “CAPITOLA”, an account in the name of Tethys with the Agent
      designated “Tethys Owning Company Limited - Earnings
    Account”;

                

        

         

        or
any other account (with that or another office of the Agent) which is designated
by the Agent as an Earnings Account for the purpose of this Agreement, and in
the plural means all of them;

         

        “Environmental Claim”
means:

         

        
          	
                   
      

                	
                  (a)

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

                

        

         

        
          	
                   
      

                	
                  (b)

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

                

        

         

        and
“claim” means a claim
for damages, compensation, fines, penalties or any other payment of any kind,
whether or not similar to the foregoing; an order or direction to take, or not
to take, certain action or to desist from or suspend certain action; and any
form of enforcement or regulatory action, including the arrest or attachment of
any asset;

         

        
          
            
                                                                              

            

             

          

          
             

            
              

            

          

          
             

          

        

        “Environmental Incident”
means:

         

        

        
          	
                   
      

                	
                  (a)

                	
                  any
      release of Environmentally Sensitive Material from a Ship;
    or

                

        

         

        
          	
                   
      

                	
                  (b)

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

                

        

         

        
          	
                   
      

                	
                  (c)

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

                

        

         

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

         

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

         

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

         

        “Existing Loan
Agreements”  means together:

         

        
          	
                   
      

                	
                  (a)

                	
                  a
      loan agreement dated 31 March 2006 (as amended and supplemented by a
      supplemental agreement dated 15 May 2006 and as further amended and
      supplemented by a supplemental agreement dated 29 November 2006 and as the
      same may be further amended and supplemented from time to time) made
      between (inter alia) (i) the Borrower, (ii) certain banks and financial
      institutions referred to therein as lenders and (iii) HSH Nordbank AG as
      agent and security trustee in respect of a term loan and short-term credit
      facilities of (originally) up to $555,861,000 in aggregate (the “Existing Senior Loan
      Agreement”); and

                

        

         

        
          	
                   
      

                	
                  (b)

                	
                  a
      loan agreement dated 31 March 2006 (as amended and supplemented by a
      supplemental agreement dated 15 May 2006 and as further amended and
      supplemented by a supplemental agreement dated 29 November 2006 and as the
      same may be further amended and supplemented from time to
      time)  made between (inter alia) (i) the Borrower, (ii) certain
      banks and financial institutions referred to therein as lenders and (iii)
      HSH Nordbank AG as agent and security trustee in respect of a term loan
      and short-term credit facilities of (originally) up to $112,587,000 in
      aggregate (the “Existing
      Junior Loan Agreement”);

                

        

         

        “Finance
Documents”  means:

         

        
          	
                   
      

                	
                  (a)

                	
                  this
      Agreement;

                

        

         

        
          
            
                                                                              

            

             

          

          
             

            
              

            

          

          
             

          

        

        
          	
                   
      

                	
                  (b)

                	
                  the
      Agency and Trust Deed;

                

        

         

        
          	
                   
      

                	
                  (c)

                	
                  the
      Guarantees;

                

        

         

        
          	
                   
      

                	
                  (d)

                	
                  the
      Mortgages;

                

        

         

        
          	
                   
      

                	
                  (e)

                	
                  the
      Deeds of Covenant;

                

        

         

        
          	
                   
      

                	
                  (f)

                	
                  the
      General Assignments;

                

        

         

        
          	
                   
      

                	
                  (g)

                	
                  the
      Account Pledges;

                

        

         

        
          	
                   
      

                	
                  (h)

                	
                  the
      Management Agreement Assignments;

                

        

         

        
          	
                   
      

                	
                  (i)

                	
                  the
      Manager’s Undertaking; and

                

        

         

        
          	
                   
      

                	
                  (j)

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

                

        

         

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

         

        
          	
                   
      

                	
                  (a)

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

                

        

         

        
          	
                   
      

                	
                  (b)

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

                

        

         

        
          	
                   
      

                	
                  (c)

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

                

        

         

        
          	
                   
      

                	
                  (d)

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

                

        

         

        
          	
                   
      

                	
                  (e)

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

                

        

         

        
          	
                   
      

                	
                  (f)

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

                

        

         

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

         

        “Group” means, together, the
Borrower, each Owner and all their respective subsidiaries and any other
companies in the same beneficial ownership as the Borrower and/or each
Owner;

         

        
          
            
                                                                               

            

             

          

          
             

            
              

            

          

          
             

          

        

        “Guarantee”  means a
guarantee of the Borrower’s obligations under this Agreement executed or to be
executed by each Owner in favour of the Security Trustee in such form as the
Lenders shall approve or require and, in the plural, means all of
them;

         

        
          	
                   
      

                	
                  “IACS”  means
      the International Association of Classification
  Societies;

                

        

        

        “Insurances” means, in relation
to a Ship:

         

        
          	
                   
      

                	
                  (a)

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

                

        

         

        
          	
                   
      

                	
                  (b)

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

                

        

         

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

         

        
          	
                   
      

                	
                  “ISM Code”
      means:

                

        

        

        
          	
                   
      

                	
                  (a)

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

                

        

         

        
          	
                   
      

                	
                  (b)

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

                

        

         

        
          	
                   
      

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

                

        

        

        
          	
                   
      

                	
                  “ISM Code Documentation”
      includes, in relation to each Ship:

                

        

        

        
          	
                   
      

                	
                  (a)

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

                

        

         

        
          	
                   
      

                	
                  (b)

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

                

        

         

        
          	
                   
      

                	
                  (c)

                	
                  any
      other documents which are prepared or which are otherwise relevant to
      establish and maintain the Ship’s or the compliance of its Owner with the
      ISM Code which the Agent may
require;

                

        

         

        
          	
                   
      

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

                

        

        
          
            
                                                                  

            

             

          

          
             

            
              

            

          

          
             

          

        

         

        

        
          	 	“ISPS
      Code”  means the International Ship and Port Facility
      Security Code constituted pursuant to resolution A.924(22)
      of the International Maritime Organisation (“IMO”) now set out in
      Chapter XI-2 of the Safety of Life at Sea Convention (SOLAS) 1974 (as
      amended) and the mandatory ISPS Code as adopted by a Diplomatic Conference
      of the IMO on Maritime Security in December 2002 and includes any
      amendments or extensions to it and any regulation issued pursuant to it
      but shall only apply insofar as it is applicable law in the relevant
      Ship’s flag state and any jurisdiction on which such Ship is
      operated; 

        

         

        
          	
                   
      

                	
                  “ISPS Code
      Documentation”  includes:

                

        

        

        
          	
                   
      

                	
                  (a)

                	
                  the
      International Ship Security Certificate issued pursuant to the ISPS Code
      in relation to each Ship within the period specified in the ISPS Code;
      and

                

        

         

        
          	
                   
      

                	
                  (b)

                	
                  all
      other documents and data which are relevant to the ISPS Code and its
      implementation and verification which the Agent may
    require;

                

        

         

        “Kronos”  means
Kronos Owning Company Limited, a corporation incorporated and existing under the
laws of the Republic of the Marshall Islands and having its registered office at
Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands
MH96960;

         

        
          	
                   
      

                	
                  “Lender”  means,
      subject to Clause 26.6:

                

        

        

        
          	
                   
      

                	
                  (a)

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

                

        

         

        
          	
                   
      

                	
                  (b)

                	
                  the
      holder for the time being of a Transfer
  Certificate;

                

        

         

        
          	
                   
      

                	
                  “LIBOR”  means,
      for an Interest Period:

                

        

        

        
          	
                   
      

                	
                  (a)

                	
                  the
      rate per annum equal to the offered quotation for deposits in Dollars for
      a period equal to, or as near as possible equal to, the relevant Interest
      Period which appears on REUTERS BBA Page LIBOR 01 at or about 11.00 a.m.
      (London time) on the second Business Day prior to the commencement of that
      Interest Period (and, for the purposes of this Agreement, “REUTERS BBA Page LIBOR
      01” means the display designated as “REUTERS BBA Page LIBOR 01” on
      the Reuters Money News Service or such other page as may replace REUTERS
      BBA Page LIBOR 01 on that service for the purpose of displaying rates
      comparable to that rate or on such other service as may be nominated by
      the British Bankers’ Association for the purpose of displaying British
      Bankers’ Association Interest Settlement Rates for Dollars);
      or

                

        

         

        
          	
                   
      

                	
                  (b)

                	
                  if
      no rate is quoted on REUTERS BBA Page LIBOR 01, the rate per annum
      determined by the Agent to be the arithmetic mean of the rates per annum
      notified to the Agent by each Reference Bank to be the rate per annum at
      which deposits in Dollars are offered to that Reference Bank by leading
      banks in the London Interbank Market at or about 11.00 a.m. (London time)
      on the second Business Day prior to the commencement of that Interest
      Period for a period equal to that Interest Period and for delivery on the
      first Business Day of it;

                

        

         

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

        
          
            
                                        

            

             

          

          
             

            
              

            

          

          
             

          

        

        

        “Major Casualty” means, in
relation to a Ship, any casualty to such Ship in respect of which the claim or
the aggregate of the claims against all insurers, before adjustment for any
relevant franchise or deductible, exceeds $500,000 or the equivalent in any
other currency;

         

        “Majority
Lenders”  means Lenders whose Commitments total at least 60 per
cent. of the Total Commitments;

         

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

        

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

         

        “Manager’s
Undertaking”  means, in relation to a Ship, an undertaking to
be issued by the Approved Manager in respect of such Ship in favour of the
Security Trustee, in such form as the Lenders may approve or
require;

         

        “Mandatory Cost” means the percentage
rate per annum calculated by the Agent in accordance with Schedule
5;

         

        “MARBELLA”  means the
2000-built bulk carrier of 72,451 deadweight tons currently registered in the
ownership of the Seller thereof under Panamanian flag with the name “RESTLESS”
which is to be acquired by Dione pursuant to the relevant MOA and registered in
the ownership of Dione under Maltese flag with the name “MARBELLA”;

         

        “Margin”  means 2.00
per cent. per annum;

        

        “Market Value”  means
the market value of a Ship at any date determined in accordance with Clause
15.1;

         

        “MENORCA”  means the
1997-built bulk carrier of 71,685 deadweight tons currently registered in the
ownership of the Seller thereof under Greek flag with the name “OINOUSSIAN
LEGEND” which is to be acquired by Atlas pursuant to the relevant MOA and
registered in the ownership of Atlas under Maltese flag with the name
“MENORCA”;

         

        “MOA” means:

         

        
          	
                   
      

                	
                  (a)

                	
                  in
      relation to “PRIMERA”, the memorandum of agreement dated 15 December 2006
      entered into between E.K. Line S.A. of Panama and Kronos in respect of the
      sale of “PRIMERA” for a price of
$38,000,000;

                

        

         

        
          	
                   
      

                	
                  (b)

                	
                  in
      relation to “MENORCA”, the memorandum of agreement dated 18 January 2007
      as amended and supplemented by an addendum no. 1 dated 26 February 2007
      and as further amended and supplemented by an addendum no. 2 dated
      27  February 2007 entered into between the relevant Seller and
      Atlas in respect of the sale of “MENORCA” for a price of
      $41,000,000;

                

        

         

        
          	
                   
      

                	
                  (c)

                	
                  in
      relation to “MARBELLA”, the memorandum of agreement dated 27 February 2007
      as amended and supplemented by an addendum no. 1 dated 5 March 2007 entered
      into between the relevant Seller and Dione in respect of the sale of
      “MARBELLA” for a price of
$46,000,000;

                

        

         

        
          
            
                                                               

            

             

          

          
             

            
              

            

          

          
             

          

        

         

         

        
          	
                   
      

                	
                  (d)

                	
                  in
      relation to “BRISBANE”, the memorandum of agreement dated 10 January 2007
      entered into between the relevant Seller and Trojan in respect of the sale
      of “BRISBANE” for a price of
$60,000,000;

                

        

         

        
          	
                   
      

                	
                  (e)

                	
                  in
      relation to “BARGARA”, the memorandum of agreement dated 11 April 2007 as
      amended and supplemented by an addendum no. 1 dated 12 April 2007 entered
      into between the relevant Seller and Selene in respect of the sale of
      “BARGARA” for a price of
$49,000,000;

                

        

         

        
          	
                   
      

                	
                  (f)

                	
                  in
      relation to “CAPITOLA”, the memorandum of agreement dated 11 April 2007 as
      amended and supplemented by an addendum no. 1 dated 12 April 2007 entered
      into between the relevant Seller and Tethys in respect of the sale of
      “CAPITOLA” for a price of
$49,000,000;

                

        

         

        “Mortgage” means, in relation
to a Ship, the first priority or, as the case may be, preferred mortgage on such
Ship under the relevant Approved Flag, each in such form as the Lenders may
approve or require and, in the plural, means all of them;

         

        “Negotiation Period” has the
meaning given in Clause 5.9;

         

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

         

        “Owner”  means, in
relation to:

         

        
          	
                   
      

                	
                  (a)

                	
                  “PRIMERA”,
      Kronos;

                

        

         

        
          	
                   
      

                	
                  (c)

                	
                  “MENORCA”,
      Atlas;

                

        

         

        
          	
                   
      

                	
                  (d)

                	
                  “MARBELLA”,
      Dione;

                

        

         

        
          	
                   
      

                	
                  (e)

                	
                  “BRISBANE”,
      Trojan;

                

        

         

        
          	
                   
      

                	
                  (f)

                	
                  “BARGARA”,
      Selene; and

                

        

         

        
          	
                   
      

                	
                  (g)

                	
                  “CAPITOLA”,
      Tethys;

                

        

         

        and,
in the plural, means all of them;

        

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

         

        “Permitted Security Interests”
means:

         

        
          	
                   
      

                	
                  (a)

                	
                  Security
      Interests created by the Finance
Documents;

                

        

         

        
          	
                   
      

                	
                  (b)

                	
                  Security
      Interests created pursuant to, or in connection with, the Existing Loan
      Agreements;

                

        

         

        
          	
                   
      

                	
                  (c)

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

                

        

         

        
          	
                   
      

                	
                  (d)

                	
                  liens
      for salvage;

                

        

         

        
          
            
            

             

          

          
             

            
              

            

          

          
             

          

        

        
          	
                   
      

                	
                  (e)

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

                

        

         

        
          	
                   
      

                	
                  (f)

                	
                  liens
      for master’s disbursements incurred in the ordinary course of trading and
      any other lien arising by operation of law or otherwise in the ordinary
      course of the operation, repair or maintenance of a Ship, provided such
      liens do not secure amounts more than 30 days overdue (unless the
      overdue amount is being contested by the relevant Owner in good faith by
      appropriate steps) and subject, in the case of liens for repair or
      maintenance, to Clause 14.13(h);

                

        

         

        
          	
                   
      

                	
                  (g)

                	
                  any
      Security Interest created in favour of a plaintiff or defendant in any
      proceedings or arbitration as security for costs and expenses where the
      relevant Owner is actively prosecuting or defending such proceedings or
      arbitration in good faith; and

                

        

         

        
          	
                   
      

                	
                  (h)

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

                

        

         

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

         

        
          	
                   
      

                	
                  (a)

                	
                  England
      and Wales;

                

        

         

        
          	
                   
      

                	
                  (b)

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

                

        

         

        
          	
                   
      

                	
                  (c)

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

                

        

         

        
          	
                   
      

                	
                  (d)

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

                

        

         

        
          	
                   
      

                	
                  (e)

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

                

        

         

        
          	
                   
      

                	
                  (f)

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

                

        

         

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

         

        “PRIMERA”  means the
1998-built bulk carrier of 72,495 deadweight tons registered permanently in the
ownership of Kronos under Maltese flag with the name “PRIMERA”;

         

        “Reference
Banks”  means, subject to Clause 26.16, the Lenders and any of
their respective successors and in the singular means any of them;

         

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

         

        
          
            
            

             

          

          
             

            
              

            

          

          
             

          

        

        “Repayment Date” means 30 May
2007;

         

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

         

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

         

        “Security Interest”
means:

         

        
          	
                   
      

                	
                  (a)

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

                

        

         

        
          	
                   
      

                	
                  (b)

                	
                  the
      security rights of a plaintiff under an action in rem;
    and

                

        

         

        
          	
                   
      

                	
                  (c)

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

                

        

         

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

         

        
          	
                   
      

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

                

        

        

        
          	
                   
      

                	
                  (a)

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

                

        

         

        
          	
                   
      

                	
                  (b)

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

                

        

         

        
          	
                   
      

                	
                  (c)

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

                

        

         

        
          	
                   
      

                	
                  (d)

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

                

        

         

        
          
            
            

             

          

          
             

            
              

            

          

          
             

          

        

        
          	
                   
      

                	
                  “Selene”  means
      Selene Owning Company Limited, a corporation incorporated and existing
      under the laws of the Republic of the Marshall Islands and having its
      registered office at Trust Company Complex, Ajeltake Road, Ajeltake
      Island, Majuro, Marshall Islands
MH96960;

                

        

         

        “Seller” means, in relation
to:

        

        
          	
                   
      

                	
                  (a)

                	
                  “MENORCA”,
      Legend Shipping Corporation, a corporation incorporated in Liberia whose
      registered office is at 80 Broad Street, Monrovia,
  Liberia;

                

        

         

        
          	
                   
      

                	
                  (b)

                	
                  “MARBELLA”,
      Freya Marine S.A., a corporation incorporated in Liberia whose registered
      office is at 80 Broad Street, Monrovia,
Liberia;

                

        

         

        
          	
                   
      

                	
                  (c)

                	
                  “BRISBANE”,
      Primavera Montana S.A., a company incorporated in Panama whose registered
      office is at 53rd Street, Urbanizacion Obarrio, Torre Swiss Bank, 8th
      Floor, Panama City, Panama; and

                

        

         

        
          	
                   
      

                	
                  (d)

                	
                  “BARGARA”
      and “CAPITOLA”, Songa Shipping Pte, Ltd, a company incorporated in
      Singapore whose registered office is at 63 Market Street, #09-03,
      Singapore;

                

        

         

        
          	
                   
      

                	
                  “Security
      Trustee”  means HSH Nordbank AG and any of its successors
      including, without limitation, any successor appointed under clause 5 of
      the Agency and Trust Deed;

                

        

         

        “Ship” means each of “PRIMERA”,
“MENORCA”, “MARBELLA”, “BRISBANE”, “BARGARA” and “CAPITOLA”, and in the plural
means all of them;

         

        “Tethys”  means
Tethys Owning Company Limited, a corporation incorporated and existing under the
laws of the Republic of the Marshall Islands and having its registered office at
Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands
MH96960;

         

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

         

        
          	
                   
      

                	
                  (a)

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

                

        

         

        
          	
                   
      

                	
                  (b)

                	
                  any
      expropriation, confiscation, requisition or acquisition of such Ship,
      whether for full consideration, a consideration less than its proper
      value, a nominal consideration or without any consideration, which is
      effected by any government or official authority or by any person or
      persons claiming to be or to represent a government or official authority
      (excluding a requisition for hire for a fixed period not exceeding 1 year
      without any right to an extension) unless it is within 1 month redelivered
      to the full control of the relevant Owner;
and

                

        

         

        
          	
                   
      

                	
                  (c)

                	
                  any
      arrest, capture, seizure or detention of such Ship (including any
      hijacking or theft) unless it is within 30 days redelivered to the full
      control of the relevant Owner;

                

        

         

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

         

        
          	
                   
      

                	
                  (a)

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

                

        

         

        
          
            
            

             

          

          
             

            
              

            

          

          
             

          

        

        
          	
                   
      

                	
                  (b)

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

                

        

         

        
          	
                   
      

                	
                  (i)

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

                

        

         

        
          	
                   
      

                	
                  (ii)

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

                

        

         

        
          	
                   
      

                	
                  (c)

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

                

        

         

        
          	
                   
      

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

                

        

        

        
          	
                   
      

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

                

        

        

        “Trojan”  means
Trojan Maritime Co., a corporation incorporated and existing under the laws of
the Republic of the Marshall Islands and having its registered office at Trust
Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands
MH96960.

         

        
          	
                  1.2

                	
                  Construction of certain
      terms.  In this
Agreement:

                

        

         

        “approved” means, for the
purposes of Clause 133, approved in writing by the Agent;

         

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

         

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

         

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

         

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

         

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

         

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

         

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

         

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

         

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

         

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

         

        
          
            
            

             

          

          
             

            
              

            

          

          
             

          

        

        “months” shall be construed in
accordance with Clause 0;

         

        “obligatory insurances” means,
in relation to a Ship, all insurances effected, or which the Borrower owning the
Ship is obliged to effect, under Clause 133 or any other provision of this
Agreement or another Finance Document;

         

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

         

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

         

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

         

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

         

        “regulation” includes any
regulation, rule, official directive, request or guideline whether or not having
the force of law of any governmental, intergovernmental or supranational body,
agency, department or regulatory, self-regulatory or other authority or
organisation;

         

        “subsidiary” has the meaning
given in Clause 1.4;

         

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

         

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

         

        
          	
                  1.3

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

                

        

         

        
          	
                  (a)

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

                

        

         

        
          	
                  (b)

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

                

        

         

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

         

        
          	
                  1.4

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

                

        

         

        
          
            
            

             

          

          
             

            
              

            

          

          
             

          

        

        
          	
                  (a)

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

                

        

         

        
          	
                  (b)

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

                

        

         

        
          	
                  (c)

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

                

        

         

        
          	
                  (d)

                	
                  P
      otherwise has the direct or indirect power to ensure that the affairs of S
      are conducted in accordance with the wishes of
  P,

                

        

         

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

         

        
          	
                  1.5

                	
                  General
      Interpretation.  In this
  Agreement:

                

        

         

        
          	
                  (a)

                	
                  references
      in Clause 1.1 to a Finance Document or any other document being in a
      particular form include references to that form with any modifications to
      that form which the Agent (with the authorisation of the Majority Lenders
      in the case of substantial modifications) approves or reasonably
      requires;

                

        

         

        
          	
                  (b)

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

                

        

         

        
          	
                  (c)

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

                

        

         

        
          	
                  (d)

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

                

        

         

        
          	
                  (e)

                	
                  Clauses
      1.1 to 1.4 apply unless the contrary intention
  appears.

                

        

         

        
          	
                  1.6

                	
                  Headings.  In
      interpreting a Finance Document or any provision of a Finance Document,
      all clause, sub-clause and other headings in that and any other Finance
      Document shall be entirely
disregarded.

                

        

         

        
          	
                  2

                	
                  FACILITY

                

        

         

        
          	
                  2.1

                	
                  Amount of
      facility.  Subject to the other provisions of this
      Agreement, the Lenders shall make available to the Borrower in up to six
      Advances a bridge facility of an amount of up to $150,000,000 in aggregate
      Provided that such
      facility may be increased to an amount of up to $181,000,000 in aggregate
      at any time after the Closing Date in the sole and absolute discretion of
      all the Lenders and subject to all the Lenders obtaining credit approval
      prior to any such increase.

                

        

         

        
          	
                  2.2

                	
                  Lenders' participations in
      Loan.  Subject to the other provisions of this Agreement,
      each Lender shall participate in each Advance in the proportion which, as
      at the relevant Drawdown Date, its Commitment bears to the Total
      Commitments.

                

        

         

        
          	
                  2.3

                	
                  Purpose of Advances. The
      Borrower undertakes with each Creditor Party to use each Advance only for
      the purpose stated in Clause 4.2.

                

        

         

        
          
            
            

             

          

          
             

            
              

            

          

          
             

          

        

        
          	
                  3

                	
                  POSITION
      OF THE LENDERS AND THE MAJORITY
LENDERS

                

        

         

        
          	
                  3.1

                	
                  Interests of Lenders
      several.  The rights of the Lenders under this Agreement
      are several; accordingly each Lender shall be entitled to sue for any
      amount which has become due and payable by the Borrower to it under this
      Agreement without joining the Agent, the Security Trustee or any other
      Lender as additional parties in the
proceedings.

                

        

         

        
          	
                  3.2

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

                

        

         

        
          	
                  (a)

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

                

        

         

        
          	
                  (b)

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

                

        

         

        
          	
                  3.3

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

                

        

         

        
          	
                  (a)

                	
                  the
      obligations of the other Lenders being increased;
  nor

                

        

         

        
          	
                  (b)

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

                

        

         

        
          	
                   
      

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

                

        

        

        
          	
                  3.4

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

                

        

         

        
          	
                  (a)

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

                

        

         

        
          	
                  (b)

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

                

        

         

        
          	
                  (c)

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

                

        

         

        
          	
                  3.5

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

                

        

         

        
          	
                  (a)

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

                

        

         

        
          	
                  (b)

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

                

        

         

        
          	
                  3.6

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

                

        

         

        
          
            
            

             

          

          
             

            
              

            

          

          
             

          

        

        
          	
                  4

                	
                  DRAWDOWN

                

        

         

        
          	
                  4.1

                	
                  Request for
      Advance.  Subject to the following conditions, the
      Borrower may request an Advance to be made by ensuring that the Agent
      receives a completed Drawdown Notice for that Advance not later than 11.00
      a.m. (Hamburg time) 1 Business Day prior to the intended Drawdown Date for
      that Advance.

                

        

         

        
          	
                  4.2

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

                

        

         

        
          	
                  (a)

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

                

        

         

        
          	
                  (b)

                	
                  each
      Advance shall be on-lent by the Borrower to the relevant Owner and shall
      be used for the purpose of part-financing the purchase price of the Ship
      to be acquired by that Owner;

                

        

         

        
          	
                  (c)

                	
                  the
      Advance in respect of “PRIMERA” shall be in an amount not exceeding 65 per
      cent. of the lesser of (i) the Market Value of “PRIMERA” (determined in
      accordance with the valuation referred to in paragraph 5 of Schedule 3,
      Part B) and (ii) the purchase price of “PRIMERA” pursuant to the MOA
      relative thereto;

                

        

         

        
          	
                  (d)

                	
                  the
      Advance in respect of “MENORCA” shall be in an amount not exceeding 70 per
      cent. of the lesser of (i) the Market Value of “MENORCA” (determined in
      accordance with the valuation referred to in paragraph 5 of Schedule 3,
      Part B) and (ii) the purchase price of “MENORCA” pursuant to the MOA
      relative thereto;

                

        

         

        
          	
                  (e)

                	
                  the
      Advance in respect of “MARBELLA” shall be in an amount not exceeding 70
      per cent. of the lesser of (i) the Market Value of “MARBELLA” (determined
      in accordance with the valuation referred to in paragraph 5 of Schedule 3,
      Part B) and (ii) the purchase price of “MARBELLA” pursuant to the MOA
      relative thereto;

                

        

         

        
          	
                  (f)

                	
                  the
      Advance in respect of “BRISBANE” shall be in an amount not exceeding 70
      per cent. of the lesser of (i) the Market Value of “BRISBANE” (determined
      in accordance with the valuation referred to in paragraph 5 of Schedule 3,
      Part B) and (ii) the purchase price of “BRISBANE” pursuant to the MOA
      relative thereto;

                

        

         

        
          	
                  (g)

                	
                  the
      Advance in respect of “BARGARA” shall be in an amount not exceeding 70 per
      cent. of the lesser of (i) the Market Value of “BARGARA” (determined in
      accordance with the valuation referred to in paragraph 5 of Schedule 3,
      Part B) and (ii) the purchase price of “BARGARA” pursuant to the MOA
      relative thereto;

                

        

         

        
          	
                  (h)

                	
                  the
      Advance in respect of “CAPITOLA” shall be in an amount not exceeding 65
      per cent. of the lesser of (i) the Market Value of “CAPITOLA” (determined
      in accordance with the valuation referred to in paragraph 5 of Schedule 3,
      Part B) and (ii) the purchase price of “CAPITOLA” pursuant to the MOA
      relative thereto; and

                

        

         

        
          	
                  (i)

                	
                  the
      aggregate principal amount of the Advances shall not exceed $150,000,000
      on or prior to the Closing Date (as such aggregate amount may be increased
      to $181,000,000 after the Closing Date on the terms and subject to the
      conditions set out in Clause 2.1).

                

        

         

        
          
            
            

             

          

          
             

            
              

            

          

          
             

          

        

        
          	
                  4.3

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

                

        

         

        
          	
                  (a)

                	
                  the
      amount of the Advance and the Drawdown
Date;

                

        

         

        
          	
                  (b)

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

                

        

         

        
          	
                  (c)

                	
                  the
      duration of the first Interest Period applicable to that
      Advance.

                

        

         

        
          	
                  4.4

                	
                  Drawdown Notice
      irrevocable.  A Drawdown Notice must be signed by an
      officer of the Borrower; and once served, a Drawdown Notice cannot be
      revoked without the prior consent of the Agent, acting on the authority of
      the Majority Lenders.

                

        

         

        
          	
                  4.5

                	
                  Lenders to make available
      Contributions.  Subject to the provisions of this
      Agreement, each Lender shall, on and with value on each Drawdown Date,
      make available to the Agent for the account of the Borrower the amount due
      from that Lender on that Drawdown Date under Clause
  2.2.

                

        

         

        
          	
                  4.6

                	
                  Disbursement of
      Advance.  Subject to the provisions of this Agreement,
      the Agent shall on each Drawdown Date pay to the Borrower the amounts
      which the Agent receives from the Lenders under Clause 4.5; and that
      payment to the Borrower shall be
made:

                

        

         

        
          	
                  (a)

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

                

        

         

        
          	
                  (b)

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

                

        

         

        
          	
                  4.7

                	
                  Disbursement of Advance to
      third party.   The payment by the Agent under Clause
      4.6 to a third party specified in the relevant Drawdown Notice shall
      constitute the making of the Advance and the Borrower shall thereupon
      become indebted, as principal and direct obligor, to each Lender in an
      amount equal to that Lender's
Contribution.

                

        

         

        
          	
                  5

                	
                  INTEREST

                

        

         

        
          	
                  5.1

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

                

        

         

        
          	
                  5.2

                	
                  Normal rate of
      interest.  Subject to the terms of this Agreement, the
      rate of interest applicable to each Advance (or any part thereof) for each
      Interest Period relating thereto shall be the aggregate of (i) the Margin,
      (ii) the Mandatory Cost (if any) and (iii) LIBOR for that Interest
      Period.

                

        

         

        
          	
                  5.3

                	
                  Payment of accrued
      interest.  In the case of an Interest Period longer than
      1 month, accrued interest shall be paid every 1 month during that Interest
      Period and on the last day of that Interest
  Period.

                

        

         

        
          	
                  5.4

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

                

        

         

        
          	
                  (a)

                	
                  each
      rate of interest; and

                

        

         

        
          	
                  (b)

                	
                  the
      duration of each Interest Period;

                

        

         

        
          
            
                                                                          

            

             

          

          
             

            
              

            

          

          
             

          

        

        
          	
                   
      

                	
                  as
      soon as reasonably practicable after each is
  determined.

                

        

         

        

        
          	
                  5.5

                	
                  Obligation of Reference Banks
      to quote.  Each Reference Bank shall use all reasonable
      efforts to supply the quotation required of it for the purposes of fixing
      a rate of interest under this
Agreement.

                

        

         

        
          	
                  5.6

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

                

        

         

        
          	
                  (a)

                	
                  no
      rate is quoted on Reuters BBA Page LIBOR 01 and neither Reference Bank,
      before 1.00 p.m. (Hamburg time) on the second Business Day before the
      commencement of an Interest Period, provides a quotation to the Agent in
      order to fix LIBOR; or

                

        

         

        
          	
                  (b)

                	
                  at
      least one Business Day before the start of an Interest Period, Lenders
      having Contributions together amounting to more than 50 per cent. of the
      Loan (or, if an Advance has not been made, Commitments amounting to more
      than 50 per cent. of the Total Commitments) notify the Agent that LIBOR
      fixed by the Agent would not accurately reflect the cost to those Lenders
      of funding their respective Contributions (or any part of them) during the
      Interest Period in the London Interbank Dollar Market at or about 11.00
      a.m. (London time) on the second Business Day before the commencement of
      the Interest Period; or

                

        

         

        
          	
                  (c)

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

                

        

         

        
          	
                  5.7

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

                

        

         

        
          	
                  5.8

                	
                  Suspension of
      drawdown.  If the Agent's notice under Clause 5.7 is
      served before an Advance is made:

                

        

         

        
          	
                  (a)

                	
                  in
      a case falling within paragraphs (a) or (b) of Clause 5.6, the Lenders'
      obligations to make the Advance;

                

        

         

        
          	
                  (b)

                	
                  in
      a case falling within paragraph (c) of Clause 5.6, the Affected Lender's
      obligation to participate in the
Advance;

                

        

         

        
          	
                   
      

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

                

        

        

        
          	
                  5.9

                	
                  Negotiation of alternative rate
      of interest.  If the Agent’s notice under Clause 5.7 is
      served after an Advance is made, the Borrower, the Agent and the Lenders
      or (as the case may be) the Affected Lender shall use reasonable
      endeavours to agree, within the 30 days after the date on which the Agent
      serves its notice under Clause 5.7 (the “Negotiation Period”), an
      alternative interest rate or (as the case may be) an alternative basis for
      the Lenders or (as the case may be) the Affected Lender to fund or
      continue to fund their or its Contribution to the relevant Advance or
      Advances during the Interest Period
concerned.

                

        

         

        
          
            
            

             

          

          
             

            
              

            

          

          
             

          

        

        
          	
                  5.10

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

                

        

         

        
          	
                  5.11

                	
                  Alternative rate of interest in
      absence of agreement.  If an alternative interest rate or
      alternative basis is not agreed within the Negotiation Period, and the
      relevant  circumstances are continuing at the end of the
      Negotiation Period, then the Agent shall, with the agreement of each
      Lender or (as the case may be) the Affected Lender, set an interest period
      and interest rate representing the cost of funding of the Lenders or (as
      the case may be) the Affected Lender in Dollars or in any available
      currency of their or its Contribution to the relevant Advance or Advances
      plus the Mandatory Cost (if any) and the Margin; and the procedure
      provided for by this Clause 5.11 shall be repeated if the relevant
      circumstances are continuing at the end of the interest period so set by
      the Agent.

                

        

         

        
          	
                  5.12

                	
                  Notice of
      prepayment.  If the Borrower does not agree with an
      interest rate set by the Agent under Clause 5.11, the Borrower may give
      the Agent not less than 15 Business Days' notice of its intention to
      prepay the relevant Advance or Advances at the end of the interest period
      set by the Agent.

                

        

         

        
          	
                  5.13

                	
                  Prepayment; termination of
      Commitments.  A notice under Clause 5.12 shall be
      irrevocable; the Agent shall promptly notify the Lenders or (as the case
      may require) the Affected Lender of the Borrower’s notice of intended
      prepayment; and:

                

        

         

        
          	
                  (a)

                	
                  on
      the date on which the Agent serves that notice, the Total Commitments or
      (as the case may require) the Commitment of the Affected Lender shall be
      cancelled; and

                

        

         

        
          	
                  (b)

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

                

        

         

        
          	
                  5.14

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

                

        

         

        
          	
                  6

                	
                  INTEREST
      PERIODS

                

        

         

        
          	
                  6.1

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

                

        

         

        
          	
                  6.2

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

                

        

         

        
          	
                  (a)

                	
                  1
      month; or

                

        

         

        
          	
                  (b)

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

                

        

         

        
          	
                  (c)

                	
                  such
      other period as the Agent may, with the Majority Lenders' authority, agree
      with the Borrower.

                

        

         

        
          
            
                                                          

            

             

          

          
             

            
              

            

          

          
             

          

        

        
          	
                  6.3

                	
                  Duration of Interest Period for
      repayment instalment.  The final Interest Period shall
      end on the Repayment Date.

                

        

         

        
          	
                  6.4

                	
                  Non-availability of matching
      deposits for Interest Period selected.  If, after the
      Borrower has selected and the Lenders have agreed an Interest Period
      longer than 1 month, the Agent notifies the Borrower by 11.00 a.m. (London
      time) on the second Business Day before the commencement of the Interest
      Period that it is not satisfied that deposits in Dollars for a period
      equal to the Interest Period will be available to it in the London
      Interbank Market when the Interest Period commences, the Interest Period
      shall be of 1 month.

                

        

         

        
          	
                  7

                	
                  DEFAULT
      INTEREST

                

        

         

        
          	
                  7.1

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

                

        

         

        
          	
                  (a)

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

                

        

         

        
          	
                  (b)

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

                

        

         

        
          	
                  (c)

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

                

        

         

        
          	
                  7.2

                	
                  Default rate of
      interest.  Interest shall accrue on an overdue amount
      from (and including) the relevant date until the date of actual payment
      (as well after as before judgment) at the rate per annum determined by the
      Agent to be 2.0 per cent. above:

                

        

         

        
          	
                  (a)

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

                

        

         

        
          	
                  (b)

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

                

        

         

        
          	
                  7.3

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

                

        

         

        
          	
                  (a)

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

                

        

         

        
          	
                  (b)

                	
                  the
      aggregate of the Mandatory Cost (if any) and the Margin plus, in respect
      of successive periods of any duration (including at call) up to 3 months
      which the Agent may select from time to
time:

                

        

         

        
          	
                   
      

                	
                  (i)

                	
                  LIBOR;
      or

                

        

         

        
          	
                   
      

                	
                  (ii)

                	
                  if
      the Agent (after consultation with the Reference Banks) determines that
      Dollar deposits for any such period are not being made available to any
      Reference Bank by leading banks in the London Interbank Market in the
      ordinary course of business, a rate from time to time determined by the
      Agent by reference to the cost of funds to the Reference Banks from such
      other sources as the Agent (after consultation with the Reference Banks)
      may from time to time determine.

                

        

         

        
          
            
            

             

          

          
             

            
              

            

          

          
             

          

        

         

         

        
          	7.4 	
                  Notification of interest
      periods and default rates.  The Agent shall promptly
      notify the Lenders and the Borrower of each interest rate determined by
      the Agent under Clause 7.3 and of each period selected by the Agent for
      the purposes of paragraph (b) of that Clause; but this shall not be taken
      to imply that the Borrower is liable to pay such interest only with effect
      from the date of the Agent's
notification. 

                

        

         

        
          	
                  7.5

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

                

        

         

        
          	
                  7.6

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

                

        

         

        
          	
                  8

                	
                  REPAYMENT
      AND PREPAYMENT

                

        

         

        
          	
                  8.1

                	
                  Repayment.  The
      Borrower shall repay the Loan in a single instalment on the Repayment
      Date.

                

        

         

        
          	
                  8.2

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

                

        

         

        
          	
                  8.3

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

                

        

         

        
          	
                  8.4

                	
                  Conditions for voluntary
      prepayment.  The conditions referred to in Clause 8.3 are
      that:

                

        

         

        
          	
                  (a)

                	
                  a
      partial prepayment shall be in an amount of $1,000,000 or an integral
      multiple thereof;

                

        

         

        
          	
                  (b)

                	
                  the
      Agent has received from the Borrower at least 15 days' prior written
      notice specifying the amount to be prepaid and the date on which the
      prepayment is to be made; and

                

        

         

        
          	
                  (c)

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

                

        

         

        
          	
                  8.5

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

                

        

         

        
          	
                  8.6

                	
                  Notification of notice of
      prepayment.  The Agent shall notify the Lenders promptly
      upon receiving a prepayment notice, and shall provide any Lender which so
      requests with a copy of any document delivered by the Borrower under
      Clause 8.4(c).

                

        

         

        
          	
                  8.7

                	
                  Mandatory
      prepayment.  The Borrower shall be obliged to prepay the
      Relevant Amount of the Loan and/or the Relevant Amount of the Total
      Commitments shall be cancelled:

                

        

         

        
          	
                  (a)

                	
                  if
      a Ship is sold, on or before the date on which the sale is completed by
      delivery of the Ship to the buyer;
or

                

        

         

        
          
            
            

             

          

          
             

            
              

            

          

          
             

          

        

        
          	
                  (b)

                	
                  if
      a Ship becomes a Total Loss, on the earlier of the date falling 120 days
      after the relevant Total Loss Date and the date of receipt by the Security
      Trustee of the proceeds of insurance relating to such Total
      Loss.

                

        

         

        In
this Clause 8.7, “Relevant
Amount”  means 100 per cent. of the Advance related to the Ship
which has been sold or has suffered a Total Loss.

         

        
          	
                  8.8

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

                

        

         

        
          	
                  8.9

                	
                  Application of partial
      prepayment.  Each partial prepayment shall be applied in
      reduction of the Loan.

                

        

         

        
          	
                  8.10

                	
                  No
      reborrowing.  No amount prepaid may be
      reborrowed.

                

        

         

        
          	
                  9

                	
                  CONDITIONS
      PRECEDENT

                

        

         

        
          	
                  9.1

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

                

        

         

        
          	
                  (a)

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

                

        

         

        
          	
                  (b)

                	
                  that,
      on each Drawdown Date but prior to the making of the relevant Advance, the
      Agent receives the documents described in Part B of Schedule 3 in form and
      substance satisfactory to it and its
lawyers;

                

        

         

        
          	
                  (c)

                	
                  that
      before the service of the first Drawdown Notice the Agent receives the
      arrangement fee referred to in Clause 20.1 and has received payment of the
      expenses referred to in Clause
20.2;

                

        

         

        
          	
                  (d)

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

                

        

         

        
          	
                   
      

                	
                  (i)

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

                

        

         

        
          	
                   
      

                	
                  (ii)

                	
                  the
      representations and warranties in Clause 10.1 and those of the Borrower or
      any Security Party which are set out in the other Finance Documents would
      be true and not misleading if repeated on each of those dates with
      reference to the circumstances then existing;
  and

                

        

         

        
          	
                   
      

                	
                  (iii)

                	
                  none
      of the circumstances contemplated by Clause 5.6 has occurred and is
      continuing; and

                

        

         

        
          	
                  (e)

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

                

        

         

        
          	
                  9.2

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

                

        

         

        
          
            
            

             

          

          
             

            
              

            

          

          
             

          

        

         

         

        
          	
                  10

                	
                  REPRESENTATIONS
      AND WARRANTIES

                

        

         

        
          	
                  10.1

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

                

        

         

        
          	
                  10.2

                	
                  Status.  The
      Borrower is duly incorporated and validly existing and in good standing
      under the laws of the Marshall
Islands.

                

        

         

        
          	
                  10.3

                	
                  Share capital and
      ownership.  The Borrower has an authorised share capital
      divided into 75,000,000 registered shares of $0.01 each, 35,490,097 of
      which shares have been issued, each fully
paid.

                

        

         

        
          	
                  10.4

                	
                  Corporate
      power.  The Borrower has the corporate capacity, and has
      taken all corporate action and obtained all consents necessary for
      it:

                

        

         

        
          	
                  (a)

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

                

        

         

        
          	
                  (b)

                	
                  to
      borrow under this Agreement and to make all the payments contemplated by,
      and to comply with, those Finance Documents to which it is a
      party.

                

        

         

        
          	
                  10.5

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

                

        

         

        
          	
                  10.6

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

                

        

         

        
          	
                  (a)

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

                

        

         

        
          	
                  (b)

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

                

        

         

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

         

        
          	
                  10.7

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

                

        

         

        
          	
                  (a)

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

                

        

         

        
          	
                  (b)

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

                

        

         

        
          	
                  10.8

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

                

        

         

        
          	
                  (a)

                	
                  any
      law or regulation; or

                

        

         

        
          
            
            

             

          

          
             

            
              

            

          

          
             

          

        

        
          	
                  (b)

                	
                  the
      constitutional documents of the Borrower;
or

                

        

         

        
          	
                  (c)

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

                

        

         

        
          	
                  10.9

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

                

        

         

        
          	
                  10.10

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

                

        

         

        
          	
                  10.11

                	
                  No
      litigation.  No legal or administrative action involving
      the Borrower has been commenced or taken or, to the Borrower's knowledge,
      is likely to be commenced or taken which can be considered material in the
      context of this Agreement or any other Finance
  Document.

                

        

         

        
          	
                  10.12

                	
                  Information.  All
      information which has been provided in writing by or on behalf of the
      Borrower or any Security Party to any Creditor Party in connection with
      any Finance Document satisfied the requirements of Clause
      11.5.

                

        

         

        
          	
                  10.13

                	
                  Validity and completeness of
      MOAs. Each MOA constitutes valid, binding and enforceable
      obligations of the relevant Seller and the relevant Owner in accordance
      with its terms; and:

                

        

         

        
          	
                  (a)

                	
                  the
      copy of each MOA delivered to the Agent before the date of this Agreement
      is a true and complete copy thereof;
and

                

        

         

        
          	
                  (b)

                	
                  no
      amendments or additions to any MOA have been agreed nor has any Owner or
      any Seller waived any of their respective rights under any
      MOA.

                

        

         

        
          	
                  10.14

                	
                  No rebates
      etc.  There is no agreement or understanding to allow or
      pay any rebate, premium, commission, discount or other benefit or payment
      (howsoever described) to any Owner, any Seller or a third party in
      connection with the purchase by an Owner of the Ship to be purchased by it
      other than as disclosed to the Agent in writing on or prior to the date of
      this Agreement.

                

        

         

        
          	
                  10.15

                	
                  Compliance with certain
      undertakings.  At the date of this Agreement, the
      Borrower is in compliance with Clauses 11.2, 11.4, 11.7 and
      11.12.

                

        

         

        
          	
                  10.16

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

                

        

         

        
          	
                  10.17

                	
                  ISM Code and ISPS Code
      compliance.  The Borrower will procure that the Owners
      and the Approved Manager obtain all necessary ISM Code Documentation and
      ISPS Code Documentation in connection with the Ships and comply with the
      ISM Code and the ISPS Code.

                

        

         

        
          	
                  10.18

                	
                  No money
      laundering.  Without prejudice to the generality of
      Clause 2.2, in relation to the borrowing by the Borrower of the Loan, the
      performance and discharge of its obligations and liabilities under the
      Finance Documents, and the transactions and other arrangements effected or
      contemplated by the Finance Documents to which the Borrower is a party,
      the Borrower confirms that it is acting for its own account and that the
      foregoing
      will not involve or lead to contravention of any law, official requirement
      or other regulatory measure or procedure implemented to combat “money
      laundering” (as defined in Article 1 of the Directive (91/308/EEC) of the
      Council of the European
Communities).

                

        

         

        
          
            
            

             

          

          
             

            
              

            

          

          
             

          

        

         

         

        
          	
                  11

                	
                  GENERAL
      UNDERTAKINGS

                

        

         

        
          	
                  11.1

                	
                  General.  The
      Borrower undertakes with each Creditor Party to comply with the following
      provisions of this Clause 11 at all times during the Security Period
      except as the Agent may, with the authority of the Majority Lenders,
      otherwise permit.

                

        

         

        
          	
                  11.2

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

                

        

         

        
          	
                  (a)

                	
                  own
      (directly or indirectly) the entire beneficial interest in each Owner free
      from all Security Interests and other interests and rights of every kind,
      except for those created by the Finance
  Documents;

                

        

         

        
          	
                  (b)

                	
                  not
      create or permit to arise any Security Interest (except for Permitted
      Security Interests) over any other asset, present or future;
      and

                

        

         

        
          	
                  (c)

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

                

        

         

        
          	
                  11.3

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

                

        

         

        
          	
                  (a)

                	
                  all
      or a substantial part of its assets, whether by one transaction or a
      number of transactions, whether related or not;
  or

                

        

         

        
          	
                  (b)

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

                

        

         

        
          	
                  11.4

                	
                  Restriction on other
      liabilities or obligations to be incurred.  The Borrower
      will not incur, and will procure that none of the Owners will, incur, any
      liability or obligation except liabilities and
  obligations:

                

        

         

        
          	
                  (a)

                	
                  under
      the Finance Documents and the Existing Loan Agreements;
  and

                

        

         

        
          	
                  (b)

                	
                  (in
      the case of each Owner) incurred in the normal course of its business of
      operating its Ship.

                

        

         

        
          	
                  11.5

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

                

        

         

        
          	
                  11.6

                	
                  Shareholder and creditor
      notices.  The Borrower will send the Agent, at the same
      time as they are despatched, copies of all communications which are
      despatched to the Borrower's shareholders or creditors or any class of
      them.

                

        

         

        
          	
                  11.7

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

                

        

         

        
          	
                  (a)

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

                

        

         

        
          
            
            

             

          

          
             

            
              

            

          

          
             

          

        

        
          	
                  (b)

                	
                  for
      the validity or enforceability of any Finance
  Document;

                

        

         

        
          	
                  (c)

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

                

        

         

        and
the Borrower will comply with the terms of all such consents.

         

        
          	
                  11.8

                	
                  Maintenance of Security
      Interests.  The Borrower
will:

                

        

         

        
          	
                  (a)

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

                

        

         

        
          	
                  (b)

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

                

        

         

        
          	
                  11.9

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

                

        

         

        
          	
                  11.10

                	
                  No amendment to
      MOA.  The Borrower will procure that no Owner will agree
      to any amendment or supplement to, or waive or fail to enforce, the MOA to
      which that Owner is a party or any of its
  provisions.

                

        

         

        
          	
                  11.11

                	
                  Principal place of
      business.  The Borrower will maintain its place of
      business, and keep its corporate documents and records, at the address
      stated in Clause 28.2(a); and the Borrower will not establish, or do
      anything as a result of which it would be deemed to have a place of
      business in any country other than the Marshall Islands, Malta and
      Greece.

                

        

         

        
          	
                  11.12

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

                

        

         

        
          	
                  (a)

                	
                  states
      that no Event of Default or Potential Event of Default has occurred;
      or

                

        

         

        
          	
                  (b)

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

                

        

         

        
          	
                  11.13

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

                

        

         

        
          	
                  (a)

                	
                  the
      occurrence of an Event of Default or a Potential Event of Default;
      or

                

        

         

        
          	
                  (b)

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

                

        

         

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

         

        
          
            
            

             

          

          
             

            
              

            

          

          
             

          

        

                              

         

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

        

         

        
          	
                  (a)

                	
                  to
      the Borrower, any Owner, any Ship, the Earnings or the Insurances of any
      Ship; or

                

        

         

        
          	
                  (b)

                	
                  to
      any other matter relevant to, or to any provision of, a Finance Document,
      which may be requested by the Agent, the Security Trustee or any Lender at
      any time.

                

        

         

        
          	
                  11.15

                	
                  Ownership.  The
      Borrower shall ensure that (a) it shall remain the direct or indirect
      owner of the whole of the issued share capital of each Owner and (b) there
      shall be no change in the legal and beneficial ownership of the shares in
      each Owner.

                

        

         

        
          	
                  11.16

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

                

        

         

        
          	
                  11.17

                	
                  Know your
      customer.  The Borrower will provide to (or procure that
      there is sent to) the Agent such documents and evidence as any Creditor
      Party shall require in relation to the Borrower or any Security Party,
      based on applicable laws and regulations and each Creditor Party’s own
      internal guidelines relating to the verification of the identity and
      knowledge of its customers.

                

        

         

        
          	
                  12

                	
                  CORPORATE
      UNDERTAKINGS

                

        

         

        
          	
                  12.1

                	
                  General.  The
      Borrower also undertakes with each Creditor Party to comply with the
      following provisions of this Clause 12 at all times during the Security
      Period except as the Agent may, with the authority of the Majority
      Lenders, otherwise permit.

                

        

         

        
          	
                  12.2

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

                

        

         

        
          	
                  12.3

                	
                  Negative
      undertakings.  The Borrower will
  not:

                

        

         

        
          	
                  (a)

                	
                  change
      the nature of its business; or

                

        

         

        
          	
                  (b)

                	
                  declare
      or pay any dividend or effect any other form of distribution except as
      permitted pursuant to clause 12.3(b) of the Existing Senior Loan Agreement
      or as approved by the Majority Lenders (as that term is defined in the
      Existing Senior Loan Agreement) pursuant to the Existing Senior Loan
      Agreement;

                

        

         

        
          	
                  (c)

                	
                  effect
      any form of redemption, purchase or return of share
    capital;

                

        

         

        
          	
                  (d)

                	
                  provide
      any form of credit or financial assistance
to:

                

        

         

        
          	
                   
      

                	
                  (i)

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

                

        

         

        
          	
                   
      

                	
                  (ii)

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

                

        

         

        
          
            
            

             

          

          
             

            
              

            

          

          
             

          

        

        
          	
                   
      

                	
                  or
      enter into any transaction with or involving such a person or company on
      terms which are, in any respect, less favourable to the Borrower than
      those which it could obtain in a bargain made at arms'
      length  Provided that this shall
      not prevent or restrict the Borrower from on-lending the Loan to the
      Owners or granting credit or financial assistance to its wholly-owned
      direct or indirect subsidiaries;

                

        

         

        

        
          	
                  (e)

                	
                  issue,
      allot or grant any person a right to any shares in its capital or
      repurchase or reduce its issued share
capital;

                

        

         

        
          	
                  (f)

                	
                  acquire
      any shares or other securities other than US or UK Treasury bills and
      certificates of deposit issued by major North American or European banks,
      or enter into any transaction in a derivative other than Designated
      Transactions (as defined in the Existing Loan Agreements);
    or

                

        

         

        
          	
                  (g)

                	
                  enter
      into any form of amalgamation, merger or de-merger or any form of
      reconstruction or reorganisation.

                

        

         

        
          	
                  13

                	
                  INSURANCE

                

        

         

        
          	
                  13.1

                	
                  General.  The
      Borrower also undertakes with each Creditor Party to procure that each
      Owner will comply with the following provisions of this Clause 13 at all
      times during the Security Period except as the Agent may, with the
      authority of the Majority Lenders, otherwise
  permit.

                

        

         

        
          	
                  13.2

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

                

        

         

        
          	
                  (a)

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

                

        

         

        
          	
                  (b)

                	
                  war
      risks (including protection and indemnity war
  risks);

                

        

         

        
          	
                  (c)

                	
                  in
      the case of protection and indemnity war risks, in an amount equal to the
      amount for which the war risks under the hull policies are effected;
      and

                

        

         

        
          	
                  (d)

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

                

        

         

        
          	
                  13.3

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

                

        

         

        
          	
                  (a)

                	
                  in
      Dollars;

                

        

         

        
          	
                  (b)

                	
                  in
      the case of fire and usual marine risks and war risks, in an amount on an
      agreed value basis at least the greater of (i) an amount, which when
      aggregated with the insured value of the other Ships at the relevant time
      subject to a Mortgage, is equal to 120 per cent. of the Loan and (ii) the
      Market Value of the Ship owned by it;
and

                

        

         

        
          	
                  (c)

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

                

        

         

        
          
            
                                                                 

            

             

          

          
             

            
              

            

          

          
             

          

        

         

         

        
          	
                  (d)

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

                

        

         

        
          	
                  (e)

                	
                  on
      approved terms; and

                

        

         

        
          	
                  (f)

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

                

        

         

        
          	
                  13.4

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

                

        

         

        
          	
                  (a)

                	
                  (except
      in relation to risks referred to in Clauses 13.2(c) and (d)) name (or be
      amended to name) the Security Trustee as additional named assured for its
      rights and interests, warranted no operational interest and with full
      waiver of rights of subrogation against the Security Trustee, but without
      the Security Trustee thereby being liable to pay (but having the right to
      pay) premiums, calls or other assessments in respect of such
      insurance;

                

        

         

        
          	
                  (b)

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

                

        

         

        
          	
                  (c)

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

                

        

         

        
          	
                  (d)

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

                

        

         

        
          	
                  (e)

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

                

        

         

        
          	
                  (f)

                	
                  provide
      that the Security Trustee may make proof of loss if the relevant Owner
      fails to do so;  and

                

        

         

        
          	
                  (g)

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

                

        

         

        
          	
                  13.5

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

                

        

         

        
          
            
            

             

          

          
             

            
              

            

          

          
             

          

        

        
          	
                  (a)

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

                

        

         

        
          	
                   
      

                	
                  (i)

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

                

        

         

        
          	
                   
      

                	
                  (ii)

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

                

        

         

        
          	
                  (b)

                	
                  at
      least 14 days before the expiry of any obligatory insurance, renew the
      insurance in accordance with the Security Trustee’s approval pursuant to
      paragraph (a); and

                

        

         

        
          	
                  (c)

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

                

        

         

        
          	
                  13.6

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

                

        

         

        
          	
                  (a)

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

                

        

         

        
          	
                  (b)

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

                

        

         

        
          	
                  (c)

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

                

        

         

        
          	
                  (d)

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

                

        

         

        
          	
                  (e)

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

                

        

         

        
          	
                  13.7

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

                

        

         

        
          	
                  (a)

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

                

        

         

        
          
            
            

             

          

          
             

            
              

            

          

          
             

          

        

        
          	
                  (b)

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

                

        

         

        
          	
                  (c)

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

                

        

         

        
          	
                  (d)

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

                

        

         

        
          	
                  13.8

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

                

        

         

        
          	
                  13.9

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

                

        

         

        
          	
                  13.10

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

                

        

         

        
          	
                  13.11

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

                

        

         

        
          	
                  13.12

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

                

        

         

        
          	
                  (a)

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

                

        

         

        
          	
                  (b)

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

                

        

         

        
          	
                  (c)

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

                

        

         

        
          	
                  (d)

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

                

        

         

        
          
            
            

             

          

          
             

            
              

            

          

          
             

          

        

        
          	
                  13.13

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

                

        

         

        
          	
                  13.14

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

                

        

         

        
          	
                  13.15

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

                

        

         

        
          	
                  (a)

                	
                  the
      approved brokers; and

                

        

         

        
          	
                  (b)

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

                

        

         

        
          	
                  (c)

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

                

        

         

        
          	
                   
      

                	
                  (i)

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

                

        

         

        
          	
                   
      

                	
                  (ii)

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

                

        

         

        
          	
                  13.16

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

                

        

         

        
          	
                  (a)

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

                

        

         

        
          	
                  (b)

                	
                  effecting,
      maintaining or renewing any such insurances as are referred to in Clause
      13.17 below or dealing with or considering any matters relating to any
      such insurances

                

        

         

        
          	
                   
      

                	
                  and
      the Borrower shall, forthwith upon demand, indemnify the Security Trustee
      in respect of all fees and other expenses incurred by or for the account
      of the Security Trustee in connection with any such report as is referred
      to in paragraph (a) above.

                

        

        

        
          	
                  13.17

                	
                  Mortgagee's interest and
      additional peril insurances.  The Security Trustee shall
      be entitled from time to time to effect, maintain and renew all or any of
      the following insurances in such amounts, on such terms, through such
      insurers and generally in such manner as the Majority Lenders may from
      time to time consider appropriate:

                

        

         

        
          	
                  (a)

                	
                  a
      mortgagee's interest marine insurance in an amount equal to 120 per cent.
      of the Loan, providing for the indemnification of the Security Trustee for
      any losses under or in connection with any Finance Document which directly
      or indirectly result from loss of or damage
      to any Ship or a liability of any Ship or of any Owner, being a loss or
      damage which is prima facie covered by an obligatory insurance but in
      respect of which there is a non-payment (or reduced payment) by the
      underwriters by reason of, or on the basis of an allegation
      concerning:

                

        

         

        
          
            
            

             

          

          
             

            
              

            

          

          
             

          

        

         

         

        
          	
                   
      

                	
                  (i)

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

                

        

         

        
          	
                   
      

                	
                  (ii)

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

                

        

         

        
          	
                   
      

                	
                  (iii)

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

                

        

         

        
          	
                  (b)

                	
                  a
      mortgagee's interest additional perils policy in an amount not less than
      110 per cent. of the Loan, providing for the indemnification of the
      Security Trustee against, among other things, any possible losses or other
      consequences of any Environmental Claim, including the risk of
      expropriation, arrest or any form of detention of any Ship, the imposition
      of any Security Interest over any Ship and/or any other matter capable of
      being insured against under a mortgagee's interest additional perils
      policy whether or not similar to the
foregoing

                

        

         

        
          	
                   
      

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

                

        

        

        
          	
                  13.18

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

                

        

         

        
          	
                  13.19

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

                

        

         

        
          	
                  13.20

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

                

        

         

        
          
            
            

             

          

          
             

            
              

            

          

          
             

          

        

        
          	
                  14

                	
                  SHIP
      COVENANTS

                

        

         

        
          	
                  14.1

                	
                  General.  The
      Borrower also undertakes with each Creditor Party to procure that each
      Owner shall comply with the following provisions of this Clause 14 at all
      times during the Security Period except as the Agent, with the authority
      of the Majority Lenders, may otherwise
permit.

                

        

         

        
          	
                  14.2

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

                

        

         

        
          	
                  14.3

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

                

        

         

        
          	
                  (a)

                	
                  consistent
      with first-class ship ownership and management
  practice;

                

        

         

        
          	
                  (b)

                	
                  so
      as to maintain the highest class at Lloyd’s Register of Ships (or such
      other first-class classification society which is a member of IACS
      acceptable to the Agent) free of overdue recommendations and conditions of
      such classification society; and

                

        

         

        
          	
                  (c)

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

                

        

         

        
          	
                  14.4

                	
                  Classification society
      undertaking.  The Borrower shall procure that each Owner
      shall instruct the classification society referred to in Clause 14.3 (and
      procure that the classification society undertakes with the Security
      Trustee):

                

        

         

        
          	
                  (a)

                	
                  to
      send to the Security Trustee, following receipt of a written request from
      the Security Trustee, certified true copies of all original class records
      held by the classification society in relation to the Ship owned by that
      Owner;

                

        

         

        
          	
                  (b)

                	
                  to
      allow the Security Trustee (or its agents), at any time and from time to
      time, to inspect the original class and related records of that Owner and
      its Ship at the offices of the classification society and to take copies
      of them;

                

        

         

        
          	
                  (c)

                	
                  to
      notify the Security Trustee immediately in writing if the classification
      society:

                

        

         

        
          	
                   
      

                	
                  (i)

                	
                  receives
      notification from the Owner or any person that the Ship's classification
      society is to be
changed;  or

                

        

         

        
          	
                   
      

                	
                  (ii)

                	
                  becomes
      aware of any facts or matters which may result in or have resulted in a
      change, suspension, discontinuance, withdrawal or expiry of the Ship's
      class under the rules or terms and conditions of the Owner’s or the Ship's
      membership of the classification
society;

                

        

         

        
          	
                  (d)

                	
                  following
      receipt of a written request from the Security
  Trustee:

                

        

         

        
          	
                   
      

                	
                  (i)

                	
                  to
      confirm that the Owner is not in default of any of its contractual
      obligations or liabilities to the classification society and, without
      limiting the foregoing, that it has paid in full all fees or other charges
      due and payable to the classification
    society;  or

                

        

         

        
          
            
            

             

          

          
             

            
              

            

          

          
             

          

        

        
          	
                   
      

                	
                  (ii)

                	
                  if
      the Owner is in default of any of its contractual obligations or
      liabilities to the classification society, to specify to the Security
      Trustee in reasonable detail the facts and circumstances of such default,
      the consequences thereof, and any remedy period agreed or allowed by the
      classification society.

                

        

         

        
          	
                  14.5

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

                

        

         

        
          	
                  14.6

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

                

        

         

        
          	
                  14.7

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

                

        

         

        
          	
                  14.8

                	
                  Inspection.  The
      Borrower shall procure that each Owner shall (at the Borrower’s cost)
      permit the Security Trustee (by surveyors or other persons appointed by it
      for that purpose) to board the Ship owned by it at all reasonable times to
      inspect her condition or to satisfy themselves about proposed or executed
      repairs and shall afford all proper facilities for such
      inspections.

                

        

         

        
          	
                  14.9

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

                

        

         

        
          	
                  (a)

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

                

        

         

        
          	
                  (b)

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

                

        

         

        
          	
                  (c)

                	
                  all
      other outgoings whatsoever in respect of the Ship, her Earnings or her
      Insurances

                

        

         

        
          	
                   
      

                	
                  and,
      forthwith upon receiving notice of the arrest of the Ship, or of her
      detention in exercise or purported exercise of any lien or claim, the
      relevant Owner shall within 10 Business Days procure her release by
      providing bail or otherwise as the circumstances may
    require.

                

        

        

        
          	
                  14.10

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

                

        

         

        
          	
                  (a)

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

                

        

         

        
          
            
            

             

          

          
             

            
              

            

          

          
             

          

        

        
          	
                  (b)

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

                

        

         

        
          	
                  (c)

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

                

        

         

        
          	
                  14.11

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

                

        

         

        
          	
                  (a)

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

                

        

         

        
          	
                  (b)

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

                

        

         

        
          	
                  (c)

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

                

        

         

        
          	
                  (d)

                	
                  any
      towages and salvages;

                

        

         

        
          	
                  (e)

                	
                  its
      compliance or the compliance of the Ship with the ISM Code and the ISPS
      Code,

                

        

         

        
          	
                   
      

                	
                  and,
      upon the Security Trustee's request, provide copies of any current charter
      relating to the Ship and of any current charter guarantee, and copies of
      the ISM Code Documentation and the ISPS Code
  Documentation.

                

        

        

        
          	
                  14.12

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

                

        

         

        
          	
                  (a)

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

                

        

         

        
          	
                  (b)

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

                

        

         

        
          	
                  (c)

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

                

        

         

        
          	
                  (d)

                	
                  any
      arrest or detention of the Ship, any exercise or purported exercise of any
      lien on the Ship or her Earnings or any requisition of the Ship for
      hire;

                

        

         

        
          	
                  (e)

                	
                  any
      intended dry docking of the Ship;

                

        

         

        
          	
                  (f)

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

                

        

         

        
          	
                  (g)

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

                

        

         

        
          	
                  (h)

                	
                  any
      other matter, event or incident, actual or threatened, the effect of which
      will or could lead to the ISM Code or the ISPS Code not being complied
      with and
      the Borrower shall keep the Security Trustee advised in writing on a
      regular basis and in such detail as the Security Trustee shall require of
      the Owner’s, the Approved Manager’s  or any other person's
      response to any of those events or
  matters.

                

        

         

        
          
            
            

             

          

          
             

            
              

            

          

          
             

          

        

         

         

        

        
          	
                  14.13

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

                

        

         

        
          	
                  (a)

                	
                  let
      the Ship owned by it on demise charter for any
  period;

                

        

         

        
          	
                  (b)

                	
                  enter
      into any time or consecutive voyage charter in respect of the Ship for a
      term which exceeds, or which by virtue of any optional extensions may
      exceed, 11 months;

                

        

         

        
          	
                  (c)

                	
                  change
      the terms on which the Ship is employed or the identity of the person by
      whom the Ship is employed;

                

        

         

        
          	
                  (d)

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

                

        

         

        
          	
                  (e)

                	
                  charter
      the Ship otherwise than on bona fide arm's length terms at the time when
      the Ship is fixed;

                

        

         

        
          	
                  (f)

                	
                  appoint
      a manager of the Ship other than the Approved Manager or agree to any
      alteration to the terms of the Approved Manager’s
    appointment;

                

        

         

        
          	
                  (g)

                	
                  de-activate
      or lay up the Ship; or

                

        

         

        
          	
                  (h)

                	
                  put
      the Ship into the possession of any person for the purpose of work being
      done upon her in an amount exceeding or likely to exceed $500,000 (or the
      equivalent in any other currency) unless that person has first given to
      the Security Trustee and in terms satisfactory to it a written undertaking
      not to exercise any lien on the Ship or her Earnings for the cost of such
      work or otherwise.

                

        

         

        
          	
                  14.14

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

                

        

         

        
          	
                  14.15

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

                

        

         

        
          	
                  (a)

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

                

        

         

        
          	
                  (b)

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

                

        

         

        
          	
                  (c)

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

                

        

         

        
          
            
            

             

          

          
             

            
              

            

          

          
             

          

        

        
          	
                  15

                	
                  VALUATIONS
      

                

        

         

        
          	
                  15.1

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

                

        

         

        
          	
                  (a)

                	
                  as
      at a date not more than 14 days
previously;

                

        

         

        
          	
                  (b)

                	
                  by
      an Approved Broker appointed by the Agent with the valuations being
      addressed to the Agent;

                

        

         

        
          	
                  (c)

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

                

        

         

        
          	
                  (d)

                	
                  on
      the basis of a sale for prompt delivery for cash on normal arm's length
      commercial terms as between a willing seller and a willing
      buyer;

                

        

         

        
          	
                  (e)

                	
                  with
      or without charter or other contract of employment at the option of the
      Agent; and

                

        

         

        
          	
                  (f)

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

                

        

         

        Provided that if such two
valuations differ by more than 15 per cent. then the Agent will obtain a third
valuation from an Approved Broker to be prepared in accordance with paragraphs
(a) to (e) of this Clause 15.1 and the Market Value of a Ship will be the
arithmetic mean of such 3 valuations.

        

        
          	
                  15.2

                	
                  Valuations
      binding.  Any valuation under Clause 15.1 shall be
      binding and conclusive as regards the
Borrower.

                

        

         

        
          	
                  15.3

                	
                  Provision of
      information.  The Borrower shall promptly provide the
      Agent and any shipbroker or expert acting under Clause 15.1 with any
      information which the Agent or the shipbroker or expert may request for
      the purposes of the valuation; and, if the Borrower fails to provide the
      information by the date specified in the request, the valuation may be
      made on any basis and assumptions which the shipbroker or the Agent (or
      the expert appointed by it) considers
prudent.

                

        

         

        
          	
                  15.4

                	
                  Payment of valuation
      expenses.  Without prejudice to the generality of the
      Borrower’s obligations under Clauses 20.2, 20.3 and 21.3, the Borrower
      shall, on demand, pay the Agent the amount of the fees and expenses of any
      shipbroker or expert instructed by the Agent under this Clause and all
      legal and other expenses incurred by the Agent in connection with any
      matter arising out of this Clause.

                

        

         

        
          	
                  16

                	
                  PAYMENTS
      AND CALCULATIONS

                

        

         

        
          	
                  16.1

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

                

        

         

        
          	
                  (a)

                	
                  by
      the Lenders to the Agent; or

                

        

         

        
          	
                  (b)

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

                

        

         

        
          	
                   
      

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

                

        

        

        
          	
                   
      

                	
                  (i)

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

                

        

         

        
          
            
            

             

          

          
             

            
              

            

          

          
             

          

        

        
          	
                   
      

                	
                  (ii)

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

                

        

         

        
          	
                   
      

                	
                  (iii)

                	
                  to
      the account of the Agent at JPMorgan Chase Bank, New York (Account No
      001-1-331808 SWIFT Code: CHASUS 33 under reference “Dryships Inc. -
      US$150m bridge facility”), or to such other account with such other bank
      as the Agent may from time to time notify to the Borrower and the other
      Creditor Parties; and

                

        

         

        
          	
                   
      

                	
                  (iv)

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

                

        

         

        
          	
                  16.2

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

                

        

         

        
          	
                  (a)

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

                

        

         

        
          	
                  (b)

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

                

        

         

        
          	
                   
      

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

                

        

        

        
          	
                  16.3

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

                

        

         

        
          	
                  16.4

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

                

        

         

        
          	
                  (a)

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

                

        

         

        
          	
                  (b)

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

                

        

         

        
          	
                  16.5

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

                

        

         

        
          	
                  16.6

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

                

        

         

        
          
            
            

             

          

          
             

            
              

            

          

          
             

          

        

         

         

        
          	
                  16.7

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

                

        

         

        
          	
                  (a)

                	
                  refund
      the sum in full to the Agent; and

                

        

         

        
          	
                  (b)

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

                

        

         

        
          	
                  16.8

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

                

        

         

        
          	
                  16.9

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

                

        

         

        
          	
                  16.10

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

                

        

         

        
          	
                  16.11

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

                

        

         

        
          	
                  17

                	
                  APPLICATION
      OF RECEIPTS

                

        

         

        
          	
                  17.1

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

                

        

         

        
          	
                  (a)

                	
                  FIRST:
      in or towards satisfaction of any amounts then due and payable under the
      Finance Documents (or any of them) in such order of application and/or
      such proportions as the Agent may specify by notice to the Borrower and
      the Security Parties;

                

        

         

        
          	
                  (b)

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

                

        

         

        
          	
                  (c)

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

                

        

         

        
          
            
            

             

          

          
             

            
              

            

          

          
             

          

        

        
          	
                  17.2

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

                

        

         

        
          	
                  17.3

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

                

        

         

        
          	
                  17.4

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

                

        

         

        
          	
                  18

                	
                  APPLICATION
      OF EARNINGS

                

        

         

        
          	
                  18.1

                	
                  Payment of
      Earnings.  The Borrower undertakes with each Creditor
      Party to ensure that throughout the Security
  Period:

                

        

         

        
          	
                  (a)

                	
                  (subject
      only to provisions of the relevant General Assignment), all the Earnings
      of each Ship are paid to the Earnings Account for that Ship;
      and

                

        

         

        
          	
                  (b)

                	
                  transfers
      and withdrawals may only be made from any Earnings Account to pay the
      operating expenses of the relevant
Ship.

                

        

         

        
          	
                  18.2

                	
                  Location of
      accounts.  The Borrower shall
  promptly:

                

        

         

        
          	
                  (a)

                	
                  comply,
      and ensure that the Owners comply, with any requirement of the Agent as to
      the location or re-location of any Earnings
  Account;

                

        

         

        
          	
                  (b)

                	
                  execute,
      and ensure that the Owners execute, any documents which the Agent
      specifies to create or maintain in favour of the Security Trustee a
      Security Interest over (and/or rights of set-off, consolidation or other
      rights in relation to) the Earnings Accounts (or any of
    them).

                

        

         

        
          	
                  18.3

                	
                  Debits for expenses
      etc.  The Agent shall be entitled (but not obliged) from
      time to time to debit any Earnings Account without prior notice in order
      to discharge any amount due and payable to a Creditor Party under Clause
      20 or 21 or payment of which any Creditor Party has become entitled to
      demand under Clause 20 or 21.

                

        

         

        
          	
                  18.4

                	
                  Borrower’s obligations
      unaffected.  The provisions of this Clause 18 do not
      affect:

                

        

         

        
          	
                  (a)

                	
                  the
      liability of the Borrower to make payments of principal and interest on
      the due dates; or

                

        

         

        
          	
                  (b)

                	
                  any
      other liability or obligation of the Borrower or any Security Party under
      any Finance Document.

                

        

         

        
          	
                  19

                	
                  EVENTS
      OF DEFAULT

                

        

         

        
          	
                  19.1

                	
                  Events of
      Default.  An Event of Default occurs
  if:

                

        

         

        
          
            
            

             

          

          
             

            
              

            

          

          
             

          

        

        
          	
                  (a)

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

                

        

         

        
          	
                  (b)

                	
                  any
      breach occurs of Clause 9.2, 11.2, 11.3, 12.1, 12.3, 13.2 or 18.1;
      or

                

        

         

        
          	
                  (c)

                	
                  any
      breach by the Borrower or any Security Party occurs of any provision of a
      Finance Document (other than a breach covered by paragraph (a) or (b) if,
      in the opinion of the Majority Lenders, such default is capable of remedy,
      and such default continues unremedied 10 days after written notice from
      the Agent requesting action to remedy the same;
  or

                

        

         

        
          	
                  (d)

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

                

        

         

        
          	
                  (e)

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

                

        

         

        
          	
                  (f)

                	
                  any
      of the following occurs in relation to any Financial Indebtedness of a
      Relevant Person exceeding $1,000,000 (or the equivalent in any other
      currency) in aggregate:

                

        

         

        
          	
                   
      

                	
                  (i)

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

                

        

         

        
          	
                   
      

                	
                  (ii)

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

                

        

         

        
          	
                   
      

                	
                  (iii)

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

                

        

         

        
          	
                   
      

                	
                  (iv)

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

                

        

         

        
          	
                   
      

                	
                  (v)

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

                

        

         

        
          	
                  (g)

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

                

        

         

        
          	
                   
      

                	
                  (i)

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

                

        

         

        
          	
                   
      

                	
                  (ii)

                	
                  any
      assets of a Relevant Person are subject to any form of execution,
      attachment, arrest, sequestration or distress in respect of a sum of, or
      sums aggregating, $500,000 or more or the equivalent in another currency;
      or

                

        

         

        
          
            
            

             

          

          
             

            
              

            

          

          
             

          

        

        
          	
                   
      

                	
                  (iii)

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

                

        

         

        
          	
                   
      

                	
                  (iv)

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

                

        

         

        
          	
                   
      

                	
                  (v)

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

                

        

         

        
          	
                   
      

                	
                  (vi)

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

                

        

         

        
          	
                   
      

                	
                  (vii)

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

                

        

         

        
          	
                  (viii)
        

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

                

        

         

        
          	
                  (h)

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

                

        

         

        
          	
                  (i)

                	
                  it
      becomes unlawful in any Pertinent Jurisdiction or
    impossible:

                

        

         

        
          	
                   
      

                	
                  (i)

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

                

        

         

        
          	
                   
      

                	
                  (ii)

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

                

        

         

        
          	
                  (j)

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

                

        

         

        
          	
                  (k)

                	
                  it
      appears to the Majority Lenders that, without its prior written consent, a
      change has occurred or probably has occurred after the date of this
      Agreement in the ultimate beneficial
      ownership of any of the shares in any Owner or in the ultimate control of
      the voting rights attaching to any of those shares;
    or

                

        

         

        
          
            
            

             

          

          
             

            
              

            

          

          
             

          

        

         

         

        
          	
                  (l)

                	
                  without
      the prior written consent of all the Lenders (such consent not to be
      unreasonably withheld), George Economou ceases to be the Chief Executive
      Officer of the Borrower or George Economou (either directly and/or through
      companies beneficially owned by him and/or trusts or foundations of which
      he is a beneficiary) owns and controls less than 25 per cent. of the
      issued share capital of the
Borrower;

                

        

         

        
          	
                  (m)

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

                

        

         

        
          	
                  (n)

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

                

        

         

        
          	
                  (o)

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

                

        

         

        
          	
                   
      

                	
                  (i)

                	
                  a
      change in the financial position, state of affairs or prospects of the
      Borrower or any Owner; or

                

        

         

        
          	
                   
      

                	
                  (ii)

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

                

        

         

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

         

        
          	
                  (p)

                	
                  any
      breach occurs of Clause 19 of each of the Existing Senior Loan Agreement
      and the Existing Junior Loan
Agreement.

                

        

         

        
          	
                  19.2

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

                

        

         

        
          	
                  (a)

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

                

        

         

        
          	
                   
      

                	
                  (i)

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

                

        

         

        
          	
                   
      

                	
                  (ii)

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

                

        

         

        
          	
                   
      

                	
                  (iii)

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

                

        

         

        
          	
                  (b)

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

                

        

         

        
          
            
            

             

          

          
             

            
              

            

          

          
             

          

        

         

         

        
          	
                  19.3

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

                

        

         

        
          	
                  19.4

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

                

        

         

        
          	
                  19.5

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

                

        

         

        
          	
                  19.6

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

                

        

         

        
          	
                  19.7

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

                

        

         

        
          	
                  19.8

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

                

        

         

        
          	
                  (a)

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

                

        

         

        
          	
                  (b)

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

                

        

         

        
          	
                   
      

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

                

        

        

        
          	
                  19.9

                	
                  Relevant
      Persons.  In this Clause 19 a “Relevant Person” means
      the Borrower, a Security Party and any other member of the Group; but
      excluding any company which is dormant and the value of whose gross assets
      is $50,000 or less.

                

        

         

        
          	
                  19.10

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

                

        

         

        
          
            
            

             

          

          
             

            
              

            

          

          
             

          

        

        
          	
                  20

                	
                  FEES
      AND EXPENSES

                

        

         

        
          	
                  20.1

                	
                  Arrangement
      fee.  The Borrower shall pay to the Agent a
      non-refundable arrangement fee in an amount set out in a letter addressed
      by the Agent to the Borrower.

                

        

         

        
          	
                  20.2

                	
                  Costs of negotiation,
      preparation etc.  The Borrower shall pay to the Agent on
      its demand the amount of all reasonable expenses incurred by the Agent or
      the Security Trustee in connection with the negotiation, preparation,
      execution or registration of any Finance Document or any related document
      or with any transaction contemplated by a Finance Document or a related
      document (including, without limitation, any legal fees or
      expenses).

                

        

         

        
          	
                  20.3

                	
                  Costs of variations,
      amendments, enforcement etc.  The Borrower shall pay to
      the Agent, on the Agent's demand, the amount of all expenses (including,
      without limitation, any legal fees or expenses) incurred by a Lender in
      connection with:

                

        

         

        
          	
                  (a)

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

                

        

         

        
          	
                  (b)

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

                

        

         

        
          	
                  (c)

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

                

        

         

        
          	
                  (d)

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

                

        

         

        
          	
                  (e)

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

                

        

         

        
          	
                   
      

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

                

        

        

        
          	
                  20.4

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

                

        

         

        
          	
                  20.5

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

                

        

         

        
          	
                  21

                	
                  INDEMNITIES

                

        

         

         

         

        
          
            
            

             

          

          
             

            
              

            

          

          
             

          

        

        
          	
                  
                    21.1
 
      

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

                  

                

        

         

        
          	
                  (a)

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

                

        

         

        
          	
                  (b)

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

                

        

         

        
          	
                  (c)

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

                

        

         

        
          	
                  (d)

                	
                  the
      occurrence and/or continuance of an Event of Default or a Potential Event
      of Default and/or the acceleration of repayment of the Loan under Clause
      19;

                

        

         

        
          	
                   
      

                	
                  and
      in respect of any tax (other than tax on its overall net income) for which
      a Creditor Party is liable in connection with any amount paid or payable
      to that Creditor Party (whether for its own account or otherwise) under
      any Finance Document.

                

        

        

        
          	
                  21.2

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

                

        

         

        
          	
                  (a)

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

                

        

         

        
          	
                  (b)

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

                

        

         

        
          	
                  21.3

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

                

        

         

        
          	
                  (a)

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

                

        

         

        
          	
                  (b)

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

                

        

         

        
          
            
            

             

          

          
             

            
              

            

          

          
             

          

        

        
          	
                   
      

                	
                  other
      than liability items which are shown to have been caused by the gross
      negligence or the wilful misconduct of the relevant Creditor Party’s own
      officers or employees.

                

        

         

        

        
          	
                  21.4

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

                

        

         

        
          	
                  (a)

                	
                  any
      matter which would be covered by Clause 21.3 if any of the references in
      that Clause to a Lender were a reference to the Agent or (as the case may
      be) to the Security Trustee; and

                

        

         

        
          	
                  (b)

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

                

        

         

        
          	
                  21.5

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

                

        

         

        
          	
                  (a)

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

                

        

         

        
          	
                  (b)

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

                

        

         

        
          	
                  (c)

                	
                  enforcing
      any such order or judgment;

                

        

         

        
          	
                   
      

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

                

        

        

        
          	
                   
      

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

                

        

        

        
          	
                   
      

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

                

        

        

        
          	
                  21.6

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

                

        

         

        
          	
                  21.7

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

                

        

         

        
          
            
            

             

          

          
             

            
              

            

          

          
             

          

        

        
          	
                  22

                	
                  NO
      SET-OFF OR TAX DEDUCTION

                

        

         

        
          	
                  22.1

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

                

        

         

        
          	
                  (a)

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

                

        

         

        
          	
                  (b)

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

                

        

         

        
          	
                  22.2

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

                

        

         

        
          	
                  (a)

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

                

        

         

        
          	
                  (b)

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

                

        

         

        
          	
                  (c)

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

                

        

         

        
          	
                  22.3

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

                

        

         

        
          	
                  22.4

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

                

        

         

        
          	
                  23

                	
                  ILLEGALITY,
      ETC

                

        

         

        
          	
                  23.1

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

                

        

         

        
          	
                  (a)

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

                

        

         

        
          	
                  (b)

                	
                  contrary
      to, or inconsistent with, any
regulation,

                

        

         

        
          	
                   
      

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

                

        

        

        
          	
                  23.2

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

                

        

         

        
          	
                  23.3

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

                

        

         

        
          
            
            

             

          

          
             

            
              

            

          

          
             

          

        

        
          	
                  23.4

                	
                  Mitigation.  If
      circumstances arise which would result in a notification under
      Clause 23.1 then, without in any way limiting the rights of the
      Notifying Lender under Clause 23.3, the Notifying Lender shall use
      reasonable endeavours to transfer its obligations, liabilities and rights
      under this Agreement and the Finance Documents to another office or
      financial institution not affected by the circumstances but the Notifying
      Lender shall not be under any obligation to take any such action if, in
      its opinion, to do would or might:

                

        

         

        
          	
                  (a)

                	
                  have
      an adverse effect on its business, operations or financial condition;
      or

                

        

         

        
          	
                  (b)

                	
                  involve
      it in any activity which is unlawful or prohibited or any activity that is
      contrary to, or inconsistent with, any regulation;
  or

                

        

         

        
          	
                  (c)

                	
                  involve
      it in any expense (unless indemnified to its satisfaction) or tax
      disadvantage.

                

        

         

        
          	
                  24

                	
                  INCREASED
      COSTS

                

        

         

        
          	
                  24.1

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

                

        

         

        
          	
                  (a)

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

                

        

         

        
          	
                  (b)

                	
                  the
      effect of complying with any law or regulation (including any which
      relates to capital adequacy or liquidity controls or which affects the
      manner in which the Notifying Lender allocates capital resources to its
      obligations under this Agreement (including, without limitation, any laws
      or regulations which shall replace, amend and/or supplement those set out
      in the statement of the Basle Committee on Banking Regulations and
      Supervisory Practices dated July 1988 and entitled “International
      Convergence of Capital Management and Capital Structures”)) which is
      introduced, or altered, or the interpretation or application of which is
      altered, after the date of this
Agreement,

                

        

         

        
          	
                   
      

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

                

        

        

        
          	
                   
      

                	
                  (i)

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

                

        

         

        
          	
                   
      

                	
                  (ii)

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

                

        

         

        
          	
                   
      

                	
                  (iii)

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

                

        

         

        
          
            
            

             

          

          
             

            
              

            

          

          
             

          

        

        
          	
                   
      

                	
                  (iv)

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

                

        

         

        
          	
                   
      

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

                

        

        

        
          	
                   
      

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

                

        

        

        
          	
                  24.2

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

                

        

         

        
          	
                  24.3

                	
                  Payment of increased
      costs.  The Borrower shall pay to the Agent, at the end
      of any Interest Period during which the Agent makes demand, for the
      account of the Notifying Lender, the amounts which the Agent from time to
      time notifies the Borrower that the Notifying Lender has specified to be
      necessary to compensate the Notifying Lender for the increased
      cost.

                

        

         

        
          	
                  24.4

                	
                  Notice of
      prepayment.  If the Borrower is not willing to continue
      to compensate the Notifying Lender for the increased cost under Clause
      24.3, the Borrower may give the Agent not less than 14 days' notice of its
      intention to prepay the Notifying Lender's Contribution at the end of an
      Interest Period.

                

        

         

        
          	
                  24.5

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

                

        

         

        
          	
                  (a)

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

                

        

         

        
          	
                  (b)

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

                

        

         

        
          	
                  24.6

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

                

        

         

        
          	
                  25

                	
                  SET-OFF

                

        

         

        
          	
                  25.1

                	
                  Application of credit
      balances.  Each Creditor Party may without prior
      notice:

                

        

         

        
          	
                  (a)

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

                

        

         

        
          	
                  (b)

                	
                  for
      that purpose:

                

        

         

        
          	
                   
      

                	
                  (i)

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

                

        

         

        
          
            
            

             

          

          
             

            
              

            

          

          
             

          

        

        
          	
                   
      

                	
                  (ii)

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

                

        

         

        
          	
                   
      

                	
                  (iii)

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

                

        

         

        
          	
                  25.2

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

                

        

         

        
          	
                  25.3

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

                

        

         

        
          	
                  26

                	
                  TRANSFERS
      AND CHANGES IN LENDING OFFICE

                

        

         

        
          	
                  26.1

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

                

        

         

        
          	
                  (a)

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

                

        

         

        
          	
                  (b)

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

                

        

         

        
          	
                  26.2

                	
                  Transfer by a
      Lender.  Subject to Clause 26.5, a Lender (the “Transferor Lender”) may
      at any time, after consultation with the Borrower,
  cause:

                

        

         

        
          	
                  (a)

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

                

        

         

        
          	
                  (b)

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

                

        

         

        
          	
                  (c)

                	
                  a
      combination of (a) and (b)

                

        

         

        
          	
                   
      

                	
                  to
      be (in the case of its rights) transferred to, or (in the case of its
      obligations) assumed by, another bank or financial institution which is
      experienced in ship financing (a “Transferee Lender”) by
      delivering to the Agent a completed certificate in the form set out in
      Schedule 4 with any modifications approved or required by the Agent (a
      “Transfer
      Certificate”) executed by the Transferor Lender and the Transferee
      Lender.

                

        

        

        
          	
                   
      

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

                

        

        

        
          	
                  26.3

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

                

        

         

        
          	
                  (a)

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

                

        

         

        
          	
                  (b)

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

                

        

         

        
          
            
            

             

          

          
             

            
              

            

          

          
             

          

        

        
          	
                  (c)

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

                

        

         

        
          	
                  26.4

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

                

        

         

        
          	
                  26.5

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

                

        

         

        
          	
                  26.6

                	
                  Lender re-organisation; waiver
      of Transfer Certificate.  However, if a Lender enters
      into any merger, de-merger or other reorganisation as a result of which
      all its rights or obligations vest in another person (the “successor”), the
      successor shall automatically and without any further act being necessary
      become a Lender with the same Commitment and Contribution as were held by
      the predecessor Lender.

                

        

         

        
          	
                  26.7

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

                

        

         

        
          	
                  (a)

                	
                  to
      the extent specified in the Transfer Certificate, all rights and interests
      (present, future or contingent) which the Transferor Lender has under or
      by virtue of the Finance Documents are assigned to the Transferee Lender
      absolutely, free of any defects in the Transferor Lender's title and of
      any rights or equities which the Borrower or any Security Party had
      against the Transferor Lender;

                

        

         

        
          	
                  (b)

                	
                  the
      Transferor Lender's Commitment is discharged to the extent specified in
      the Transfer Certificate;

                

        

         

        
          	
                  (c)

                	
                  the
      Transferee Lender becomes a Lender with the Contribution previously held
      by the Transferor Lender (or the part thereof specified in the Transfer
      Certificate) and a Commitment of an amount specified in the Transfer
      Certificate;

                

        

         

        
          	
                  (d)

                	
                  the
      Transferee Lender becomes bound by all the provisions of the Finance
      Documents which are applicable to the Lenders generally, including those
      about pro-rata sharing and the exclusion of liability on the part of, and
      the indemnification of, the Agent and the Security Trustee and, to the
      extent that the Transferee Lender becomes bound by those provisions (other
      than those relating to exclusion of liability), the Transferor Lender
      ceases to be bound by them;

                

        

         

        
          	
                  (e)

                	
                  any
      part of the Loan which the Transferee Lender advances after the Transfer
      Certificate's effective date ranks in point of priority and security in
      the same way as it would have ranked had it been advanced by the
      transferor, assuming that any defects in the transferor's title and any
      rights or equities of the Borrower or any Security Party against the
      Transferor Lender had not existed;

                

        

         

        
          	
                  (f)

                	
                  the
      Transferee Lender becomes entitled to all the rights under the Finance
      Documents which are applicable to the Lenders generally, including but not
      limited to those relating to the Majority Lenders and those under Clause
      5.7 and Clause 20, and to the extent that the Transferee Lender becomes
      entitled to such rights, the Transferor Lender ceases to be entitled to
      them; and

                

        

         

        
          
            
            

             

          

          
             

            
              

            

          

          
             

          

        

        
          	
                  (g)

                	
                  in
      respect of any breach of a warranty, undertaking, condition or other
      provision of a Finance Document or any misrepesentation made in or in
      connection with a Finance Document, the Transferee Lender shall be
      entitled to recover damages by reference to the loss incurred by it as a
      result of the breach or misrepresentation, irrespective of whether the
      original Lender would have incurred a loss of that kind or
      amount.

                

        

         

        
          	
                   
      

                	
                  The
      rights and equities of the Borrower or any Security Party referred to
      above include, but are not limited to, any right of set off and any other
      kind of cross-claim.

                

        

        

        
          	
                  26.8

                	
                  Maintenance of register of
      Lenders.  During the Security Period the Agent shall
      maintain a register in which it shall record the name, Commitment,
      Contribution and administrative details (including the lending office)
      from time to time of each Lender holding a Transfer Certificate and the
      effective date (in accordance with Clause 26.4) of the Transfer
      Certificate; and the Agent shall make the register available for
      inspection by any Lender, the Security Trustee and the Borrower during
      normal banking hours, subject to receiving at least 5 Business Days prior
      notice.

                

        

         

        
          	
                  26.9

                	
                  Reliance on register of
      Lenders.  The entries on that register shall, in the
      absence of manifest error, be conclusive in determining the identities of
      the Lenders and the amounts of their Commitments and Contributions and the
      effective dates of Transfer Certificates and may be relied upon by the
      Agent and the other parties to the Finance Documents for all purposes
      relating to the Finance Documents.

                

        

         

        
          	
                  26.10

                	
                  Authorisation of Agent to sign
      Transfer Certificates.  The Borrower, the Security
      Trustee and each Lender irrevocably authorise the Agent to sign Transfer
      Certificates on its behalf.

                

        

         

        
          	
                  26.11

                	
                  Registration
      fee.  In respect of any Transfer Certificate, the Agent
      shall be entitled to recover a registration fee of $2,000 from the
      Transferor Lender or (at the Agent's option) the Transferee
      Lender.

                

        

         

        
          	
                  26.12

                	
                  Sub-participation; subrogation
      assignment.  A Lender may sub-participate all or any part
      of its rights and/or obligations under or in connection with the Finance
      Documents without the consent of, or any notice to, the Borrower, any
      Security Party, the Agent or the Security Trustee; and the Lenders may
      assign, in any manner and terms agreed by the Majority Lenders, the Agent
      and the Security Trustee, all or any part of those rights to an insurer or
      surety who has become subrogated to
them.

                

        

         

        
          	
                  26.13

                	
                  Disclosure of
      information.  A Lender may disclose to a potential
      Transferee Lender or sub-participant any information which the Lender has
      received in relation to the Borrower, any Security Party or their affairs
      under or in connection with any Finance Document, unless the information
      is clearly of a confidential
nature.

                

        

         

        
          	
                  26.14

                	
                  Change of lending
      office.  A Lender may change its lending office by giving
      notice to the Agent and the change shall become effective on the later
      of:

                

        

         

        
          	
                  (a)

                	
                  the
      date on which the Agent receives the notice;
and

                

        

         

        
          	
                  (b)

                	
                  the
      date, if any, specified in the notice as the date on which the change will
      come into effect.

                

        

         

        
          
            
            

             

          

          
             

            
              

            

          

          
             

          

        

        
          	
                  26.15

                	
                  Notification.  On
      receiving such a notice, the Agent shall notify the Borrower and the
      Security Trustee; and, until the Agent receives such a notice, it shall be
      entitled to assume that a Lender is acting through the lending office of
      which the Agent last had notice.

                

        

         

        
          	
                  26.16

                	
                  Replacement of Reference
      Bank.  If a Reference Bank ceases to be a Lender or is
      unable on a continuing basis to supply quotations for the purposes of
      Clause 5 above then, unless the Borrower, the Agent and the Majority
      Lenders otherwise agree, the Agent, acting on the instructions of the
      Majority Lenders, and after consulting the Borrower, shall appoint another
      bank (whether or not a Lender) to be a replacement Reference Bank; and,
      when that appointment comes into effect, the first-mentioned Reference
      Bank's appointment shall cease to be
effective.

                

        

         

        
          	
                  27

                	
                  VARIATIONS
      AND WAIVERS

                

        

         

        
          	
                  27.1

                	
                  Variations, waivers etc. by
      Majority Lenders.  Subject to Clause 27.2, a document
      shall be effective to vary, waive, suspend or limit any provision of a
      Finance Document, or any Creditor Party's rights or remedies under such a
      provision or the general law, only if the document is signed, or
      specifically agreed to by fax, by the Borrower, by the Agent on behalf of
      the Majority Lenders, by the Agent and the Security Trustee in their own
      rights, and, if the document relates to a Finance Document to which a
      Security Party is party, by that Security
Party.

                

        

         

        
          	
                  27.2

                	
                  Variations, waivers etc.
      requiring agreement of all Lenders.  However, as regards
      the following, Clause 27.1 applies as if the words “by the Agent on behalf
      of the Majority Lenders” were replaced by the words “by or on behalf of
      every Lender”:

                

        

         

        
          	
                  (a)

                	
                  a
      change in the Margin or in the definition of
  LIBOR;

                

        

         

        
          	
                  (b)

                	
                  a
      change to the date for, or the amount of, any payment of principal,
      interest, fees, or other sum payable under this
  Agreement;

                

        

         

        
          	
                  (c)

                	
                  a
      change to any Lender's Commitment;

                

        

         

        
          	
                  (d)

                	
                  an
      extension of the Availability
Period;

                

        

         

        
          	
                  (e)

                	
                  a
      change to the definition of “Majority Lenders” or “Finance
      Documents”;

                

        

         

        
          	
                  (f)

                	
                  a
      change to the preamble or to Clause 2, 3, 4, 5.1, 8.1, 8.2, 17, 18, 19 or
      30;

                

        

         

        
          	
                  (g)

                	
                  a
      change to this Clause 27;

                

        

         

        
          	
                  (h)

                	
                  any
      release of, or material variation to, a Security Interest, guarantee,
      indemnity or subordination arrangement set out in a Finance Document;
      and

                

        

         

        
          	
                  (i)

                	
                  any
      other change or matter as regards which this Agreement or another Finance
      Document expressly provides that each Lender's consent is
      required.

                

        

         

        
          	
                  27.3

                	
                  Exclusion of other or implied
      variations.  Except for a document which satisfies the
      requirements of Clauses 27.1 and 27.2, no document, and no act, course of
      conduct, failure or neglect to act, delay or acquiescence on the part of
      the Creditor Parties or any of them (or any person acting on behalf of any
      of them) shall result in the Creditor Parties or any of them (or any
      person acting on behalf of any of them) being taken to have varied,
      waived, suspended or limited, or being precluded (permanently or
      temporarily) from enforcing, relying on or
  exercising:

                

        

         

        
          
            
            

             

          

          
             

            
              

            

          

          
             

          

        

        
          	
                  (a)

                	
                  a
      provision of this Agreement or another Finance Document;
  or

                

        

         

        
          	
                  (b)

                	
                  an
      Event of Default; or

                

        

         

        
          	
                  (c)

                	
                  a
      breach by the Borrower or a Security Party of an obligation under a
      Finance Document or the general law;
or

                

        

         

        
          	
                  (d)

                	
                  any
      right or remedy conferred by any Finance Document or by the general
      law;

                

        

         

        
          	
                   
      

                	
                  and
      there shall not be implied into any Finance Document any term or condition
      requiring any such provision to be enforced, or such right or remedy to be
      exercised, within a certain or reasonable
time.

                

        

        

        
          	
                  28

                	
                  NOTICES

                

        

         

        
          	
                  28.1

                	
                  General.  Unless
      otherwise specifically provided, any notice under or in connection with
      any Finance Document shall be given by letter or fax; and references in
      the Finance Documents to written notices, notices in writing and notices
      signed by particular persons shall be construed
    accordingly.

                

        

         

        
          	
                  28.2

                	
                  Addresses for
      communications.  A notice shall be
  sent:

                

        

         

        (a)         to
the
Borrower:                     
Omega Building

        80 Kifissias Avenue

        151 25 Maroussi

        Athens

        Greece

        
          	
                   
      

                	
                  Fax
      No: +(30) 210 809 0575

                

        

        Attn: the Chief Financial
Officer

        

        
          	
                  
                    (b)        
      to
      a Lender:
  

                	
                   

                	
                   

                	
                  At
      the address opposite its name in Schedule 1 or (as the case may require)
      in the relevant Transfer
Certificate.

                

        

        

        (c)         to
the Agent
and                     
HSH Nordbank AG

        
          	
                   
      

                	
                  the
      Security Trustee:

                	
                   Gerhart-Hauptmann-Platz
      50

                

        

        
          	
                   
      

                	
                   D-20095
      Hamburg

                

        

        
          	
                   
      

                	
                   Germany

                

        

        Fax No: +(49) 40 33 33 34
118

        Attn: Shipping, Greek
Clients

        

        or
to such other address as the relevant party may notify the Agent or, if the
relevant party is the Agent or the Security Trustee, the Borrower, the Lenders
and the Security Parties.

        

        
          	
                  28.3

                	
                  Effective date of
      notices.  Subject to Clauses 28.4 and
    28.5:

                

        

         

        
          	
                  (a)

                	
                  a
      notice which is delivered personally shall be deemed to be served, and
      shall take effect, at the time when it is
  delivered;

                

        

         

        
          	
                  (b)

                	
                  a
      notice which is delivered by registered letter shall be deemed to be
      served, and shall take effect, 5 Business Days after being deposited in
      the post postage prepaid in an envelope addressed to it at the relevant
      address; and

                

        

         

        
          
            
            

             

          

          
             

            
              

            

          

          
             

          

        

        
          	
                  (c)

                	
                  a
      notice which is sent by fax shall be deemed to be served, and shall take
      effect, 2 hours after its transmission is
  completed.

                

        

         

        
          	
                  28.4

                	
                  Service outside business
      hours.  However, if under Clause 28.3 a notice would be
      deemed to be served:

                

        

         

        
          	
                  (a)

                	
                  on
      a day which is not a business day in the place of receipt;
    or

                

        

         

        
          	
                  (b)

                	
                  on
      such a business day, but after 5 p.m. local
  time;

                

        

         

        
          	
                   
      

                	
                  the
      notice shall (subject to Clause 28.5) be deemed to be served, and shall
      take effect, at 9 a.m. on the next day which is such a business
      day.

                

        

        

        
          	
                  28.5

                	
                  Illegible
      notices.  Clauses 28.3 and 28.4 do not apply if the
      recipient of a notice notifies the sender within one hour after the time
      at which the notice would otherwise be deemed to be served that the notice
      has been received in a form which is illegible in a material
      respect.

                

        

         

        
          	
                  28.6

                	
                  Valid
      notices.  A notice under or in connection with a Finance
      Document shall not be invalid by reason that its contents or the manner of
      serving it do not comply with the requirements of this Agreement or, where
      appropriate, any other Finance Document under which it is served
      if:

                

        

         

        
          	
                  (a)

                	
                  the
      failure to serve it in accordance with the requirements of this Agreement
      or other Finance Document, as the case may be, has not caused any party to
      suffer any significant loss or
  prejudice;  or

                

        

         

        
          	
                  (b)

                	
                  in
      the case of incorrect and/or incomplete contents, it should have been
      reasonably clear to the party on which the notice was served what the
      correct or missing particulars should have
been.

                

        

         

        
          	
                  28.7

                	
                  English
      language.  Any notice under or in connection with a
      Finance Document shall be in
English.

                

        

         

        
          	
                  28.8

                	
                  Meaning of
      “notice”.  In this Clause “notice” includes any
      demand, consent, authorisation, approval, instruction, waiver or other
      communication.

                

        

         

        
          	
                  28.9

                	
                  Electronic
      communication

                

        

         

        
          	
                  (a)

                	
                  Any
      communication to be made between the Agent or the Security Trustee and a
      Lender under or in connection with the Finance Documents may be made by
      electronic mail or other electronic means, if the Agent, the Security
      Trustee or the relevant Lender:

                

        

         

        
          	
                   
      

                	
                  (i)

                	
                  agree
      that, unless and until notified to the contrary, this is to be an accepted
      form of communication;

                

        

         

        
          	
                   
      

                	
                  (ii)

                	
                  notify
      each other in writing of their electronic mail address and/or any other
      information required to enable the sending and receipt of information by
      that means; and

                

        

         

        
          	
                   
      

                	
                  (iii)

                	
                  notify
      each other of any change to their address or any other such information
      supplied by them.

                

        

         

        
          	
                  (b)

                	
                  Any
      electronic communication made between the Agent or a Lender or the
      Security Trustee will be effective only when actually received in readable
      form and in the case of any
      electronic communication made by a Lender to the Agent or the Security
      Trustee only if it is addressed in such a manner as the Agent or Security
      Trustee shall specify for this
purpose.

                

        

         

        
          
            
            

             

          

          
             

            
              

            

          

          
             

          

        

         

         

        
          	
                  29

                	
                  SUPPLEMENTAL

                

        

         

        
          	
                  29.1

                	
                  Rights cumulative,
      non-exclusive.  The rights and remedies which the Finance
      Documents give to each Creditor Party
are:

                

        

         

        
          	
                  (a)

                	
                  cumulative;

                

        

         

        
          	
                  (b)

                	
                  may
      be exercised as often as appears expedient;
and

                

        

         

        
          	
                  (c)

                	
                  shall
      not, unless a Finance Document explicitly and specifically states so, be
      taken to exclude or limit any right or remedy conferred by any
      law.

                

        

         

        
          	
                  29.2

                	
                  Severability of
      provisions.  If any provision of a Finance Document is or
      subsequently becomes void, unenforceable or illegal, that shall not affect
      the validity, enforceability or legality of the other provisions of that
      Finance Document or of the provisions of any other Finance
      Document.

                

        

         

        
          	
                  29.3

                	
                  Counterparts.  A
      Finance Document may be executed in any number of
      counterparts.

                

        

         

        
          	
                  29.4

                	
                  Third party
      rights.  A person who is not a party to this Agreement
      has no right under the Contracts (Rights of Third Parties) Act 1999 to
      enforce or to enjoy the benefit of any term of this
    Agreement.

                

        

         

        
          	
                  30

                	
                  LAW
      AND JURISDICTION

                

        

         

        
          	
                  30.1

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

                

        

         

        
          	
                  30.2

                	
                  Exclusive English
      jurisdiction.  Subject to Clause 30.3, the courts of
      England shall have exclusive jurisdiction to settle any disputes which may
      arise out of or in connection with this
  Agreement.

                

        

         

        
          	
                  30.3

                	
                  Choice of forum for the
      exclusive benefit of the Creditor Parties.  Clause 30.2
      is for the exclusive benefit of the Creditor Parties, each of which
      reserves the right:

                

        

         

        
          	
                  (a)

                	
                  to
      commence proceedings in relation to any matter which arises out of or in
      connection with this Agreement in the courts of any country other than
      England and which have or claim jurisdiction to that matter;
      and

                

        

         

        
          	
                  (b)

                	
                  to
      commence such proceedings in the courts of any such country or countries
      concurrently with or in addition to proceedings in England or without
      commencing proceedings in England.

                

        

         

        
          	
                   
      

                	
                  The
      Borrower shall not commence any proceedings in any country other than
      England in relation to a matter which arises out of or in connection with
      this Agreement.

                

        

        

        
          	
                  30.4

                	
                  Process
      agent.  The Borrower irrevocably appoints Ince & Co.
      at their office for the time being, presently at International House, 1
      St. Katharine’s Way, London E1W 1UN, England, to act as its agent to
      receive and accept on its behalf any process or other document
      relating to any proceedings in the English courts which are connected with
      this Agreement.

                

        

         

        
          
            
            

             

          

          
             

            
              

            

          

          
             

          

        

         

         

        
          	
                  30.5

                	
                  Creditor Party rights
      unaffected.  Nothing in this Clause 30 shall exclude or
      limit any right which any Creditor Party may have (whether under the law
      of any country, an international convention or otherwise) with regard to
      the bringing of proceedings, the service of process, the recognition or
      enforcement of a judgment or any similar or related matter in any
      jurisdiction.

                

        

         

        
          	
                  30.6

                	
                  Meaning of
      “proceedings”.  In this Clause 30, “proceedings” means
      proceedings of any kind, including an application for a provisional or
      protective measure.

                

        

         

        THIS AGREEMENT has been
entered into on the date stated at the beginning of this Agreement.

        

        

        
          
            
            

             

          

          
             

            
              

            

          

          
             

          

        

        SCHEDULE
1

         

        

         

        LENDERS
AND COMMITMENTS

         

        

        

        
          	
                  Lender

                	
                  Lending
      Office

                	
                  Commitment

                  (US
      Dollars)

                
	 	 	 
	
                  HSH
      Nordbank AG

                	
                  Gerhart-Hauptmann-Platz
      50

                  D-20095
      Hamburg

                  Germany

                   

                	
                  [l]

                
	
                  The
      Governor and Company of the Bank of Scotland

                	
                  Pentland
      House

                  8
      Lochside Avenue

                  Edinburgh

                  EH12
      9DJ

                  Scotland

                   

                	
                  [l]

                

        

        

        
          
            
            

             

          

          
             

            
              

            

          

          
             

          

        

        SCHEDULE
2

         

        

         

        DRAWDOWN
NOTICE

         

        

        

        

        To:        HSH
Nordbank AG

        
          	
                   
      

                	
                  Gerhart-Hauptmann-Platz
      50

                

        

        
          	
                   
      

                	
                  D-20095
      Hamburg

                

        

        
          	
                   
      

                	
                  Germany

                

        

         

         

        
          	Attention:  Loans
      Administration                                                                                                 [      ]
  2007

        

                                                                                                                              

        

        DRAWDOWN
NOTICE

        

        
          	
                  1

                	
                  We
      refer to the loan agreement (the “Loan Agreement”) dated
      [              ]
      April 2007 and made between us, as Borrower, the Lenders referred to
      therein and yourselves as Agent and as Security Trustee, in connection
      with a bridge facility of up to (initially) US$150,000,000 as such amount
      may be increased on and subject to the terms and conditions referred to
      therein.  Terms defined in the Loan Agreement have their defined
      meanings when used in this Drawdown
Notice.

                

        

         

        
          	
                  2

                	
                  We
      request to borrow as follows:

                

        

         

        
          	
                  (a)

                	
                  an
      Advance of US$[l] which shall be
      used to part-finance the acquisition of “[l]”;

                

        

         

        
          	
                  (b)

                	
                  Drawdown
      Date:  [l]
      2007;

                

        

         

        
          	
                  (c)

                	
                  Duration
      of the first Interest Period:  [l]
      months;

                

        

         

        
          	
                  (d)

                	
                  Payment
      instructions :
      [                                                   ].

                

        

         

        
          	
                  3

                	
                  We
      represent and warrant that:

                

        

         

        
          	
                  (a)

                	
                  the
      representations and warranties in Clause 10 of the Loan Agreement
      would remain true and not misleading if repeated on the date of this
      notice with reference to the circumstances now
  existing;

                

        

         

        
          	
                  (b)

                	
                  no
      Event of Default or Potential Event of Default has occurred or will result
      from the borrowing of the Loan.

                

        

         

        
          	
                  4

                	
                  This
      notice cannot be revoked without the prior consent of all the Majority
      Lenders.

                

        

         

        

        

        

        .....................................

        

        for
and on behalf of

        DRYSHIPS
INC.

        

        
          
            
            

             

          

          
             

            
              

            

          

          
             

          

        

        SCHEDULE
3

         

        

         

        CONDITION
PRECEDENT DOCUMENTS

         

        

        Part
A

        

        The
following are the documents referred to in Clause 9.1(a).

        

        
          	
                  1

                	
                  A
      duly executed original of each Finance Document (and of each document
      required to be delivered by each Finance Document) other than those
      referred to in Part B.

                

        

         

        
          	
                  2

                	
                  Copies
      of the certificate of incorporation and constitutional documents of the
      Borrower and each Owner.

                

        

         

        
          	
                  3

                	
                  Originals
      of resolutions of the shareholders and directors of the Borrower and
      original resolutions of the directors of each Owner authorising the
      execution of each of the Finance Documents to which the Borrower or that
      Owner (as the case may be) is a party and, in the case of the Borrower,
      authorising named officers to give the Drawdown Notices and other notices
      under this Agreement and additionally, in the case of each Owner,
      ratifying the execution of the MOA (other than in relation to “PRIMERA”)
      to which that Owner is a party.

                

        

         

        
          	
                  4

                	
                  The
      original of any power of attorney under which any Finance Document is
      executed on behalf of the Borrower and each
  Owner.

                

        

         

        
          	
                  5

                	
                  Copies
      of all consents which the Borrower or any Security Party requires to enter
      into, or make any payment under, any Finance Document or the MOA to which
      it is a party.

                

        

         

        
          	
                  6

                	
                  The
      originals of any mandates or other documents required in connection with
      the opening or operation of each Earnings
  Account.

                

        

         

        
          	
                  7

                	
                  A
      copy of each MOA and of all documents signed or issued by each Owner
      (other than Kronos) or each Seller (or any of them) under or in connection
      with the MOAs.

                

        

         

        
          	
                  8

                	
                  Such
      documentary evidence as the Agent and its legal advisers may require in
      relation to the due authorisation and execution by each Seller of the MOA
      to which it is a party and of all documents to be executed by a Seller
      under the relevant MOA.

                

        

         

        
          	
                  9

                	
                  Documentary
      evidence that the agent for service of process named in Clause 30 has
      accepted its appointment.

                

        

         

        
          	
                  10

                	
                  Favourable
      legal opinions from lawyers appointed by the Agent on such matters
      concerning the laws of the Marshall Islands and such other relevant
      jurisdictions as the Agent may
require.

                

        

         

        
          	
                  11

                	
                  Evidence
      showing that the lenders in relation to the Existing Senior Loan Agreement
      and the Existing Junior Loan Agreement have consented to the execution of
      this Agreement.

                

        

         

        
          	
                  12

                	
                  If
      the Agent so requires, in respect of any of the documents referred to
      above, a certified English translation prepared by a translator approved
      by the Agent.

                

        

         

        

        
          
            
            

             

          

          
             

            
              

            

          

          
             

          

        

        

        PART
B

        

        The
following are the documents referred to in Clause 9.1(b).  “Relevant Ship” means, in
relation to an Advance, the Ship which is to be part-financed or refinanced (as
the case may be) by that Advance.

        

        
          	
                  1

                	
                  A
      duly executed original of the Mortgage, the Deed of Covenant, the General
      Assignment, the Account Pledge and the Management Agreement Assignment for
      the Relevant Ship (and of each document to be delivered under each of
      them).

                

        

         

        
          	
                  2

                	
                  Documentary
      evidence that:

                

        

         

        
          	
                  (a)

                	
                  the
      Relevant Ship (other than in relation to “PRIMERA”) has been
      unconditionally delivered to, and accepted by, the relevant Owner under
      the relevant MOA and the full purchase price payable under that MOA (in
      addition to the part financed by the relevant Advance) has been duly
      paid;

                

        

         

        
          	
                  (b)

                	
                  the
      Relevant Ship is permanently registered in the name of the relevant Owner
      under the Approved Flag;

                

        

         

        
          	
                  (c)

                	
                  the
      Relevant Ship is in the absolute and unencumbered ownership of the
      relevant Owner save as contemplated by the Finance
    Documents;

                

        

         

        
          	
                  (d)

                	
                  the
      Relevant Ship maintains the highest available class with Lloyd’s Register
      of Shipping (or such other first-class classification society which is a
      member of IACS as the Agent may approve) free of all overdue
      recommendations and conditions of such classification
    society;

                

        

         

        
          	
                  (e)

                	
                  the
      Mortgage relative to the Relevant Ship has been duly registered against
      the Relevant Ship as a valid first priority or, as the case may be,
      preferred ship mortgage in accordance with the laws of the relevant
      Approved Flag State; and

                

        

         

        
          	
                  (f)

                	
                  the
      Relevant Ship is insured in accordance with the provisions of this
      Agreement and all requirements therein in respect of insurances have been
      complied with.

                

        

         

        
          	
                  3

                	
                  A
      copy of the Management Agreement and a duly executed original of the
      Manager’s Undertaking in relation to the Relevant
  Ship.

                

        

         

        
          	
                  4

                	
                  Copies
      of:

                

        

         

        
          	
                  (a)

                	
                  the
      document of compliance (DOC) and safety management  certificate
      (SMC) referred to in paragraph (a) of the definition of the ISM Code
      Documentation in respect of the Relevant Ship and the applicable Approved
      Manager certified as true and in effect by the Owner of the Relevant Ship;
      and

                

        

         

        
          	
                  (b)

                	
                  the
      ISPS Code Documentation in respect of the Relevant Ship and the Owner
      thereof certified as true and in effect by the relevant
    Owner.

                

        

         

        
          	
                  5

                	
                  Two
      valuations (at the cost of the Borrower) of the Relevant Ship, addressed
      to the Agent, stated to be for the purpose of this Agreement and dated not
      earlier than 15 days before the relevant Drawdown Date, each from an
      Approved Broker.

                

        

         

        
          	
                  6

                	
                  Evidence
      satisfactory to the Agent that the Owner of the Relevant Ship is a direct
      or indirect wholly-owned subsidiary of the
  Borrower.

                

        

         

        
          
            
            

             

          

          
             

            
              

            

          

          
             

          

        

        
          	
                  7

                	
                  A
      favourable legal opinion from lawyers appointed by the Agent on such
      matters concerning the laws of the Marshall Islands and the Approved Flag
      State in which the Relevant Ship is registered and such other relevant
      jurisdictions as the Agent may
require.

                

        

         

        
          	
                  8

                	
                  A
      favourable opinion from an independent insurance consultant acceptable to
      the Agent on such matters relating to the insurances for the Relevant Ship
      as the Agent may require.

                

        

         

        
          	
                  9

                	
                  If
      the Agent so requires, in respect of any of the documents referred to
      above, a certified English translation prepared by a translator approved
      by the Agent.

                

        

         

        Every
other copy document delivered under this Schedule shall be certified as a true
and up to date copy by a director or the secretary (or equivalent officer) of
the Borrower or any other person acceptable to the Agent in its sole
discretion.

        
          
            
            

             

          

          
             

            
              

            

          

          
             

          

        

        SCHEDULE
4

         

        

         

        TRANSFER
CERTIFICATE

         

        

        

        

        

        The
Transferor and the Transferee accept exclusive responsibility for ensuring that
this Certificate and the transaction to which it relates comply with all legal
and regulatory requirements applicable to them respectively.

        

        

        
          	
                  To:

                	
                  HSH
      Nordbank AG for itself and for and on behalf of the Borrower, each
      Security Party, the Security Trustee and each Lender, as defined in the
      Loan Agreement referred to below.

                

        

        

        [                                  ]

        

        

        
          	
                  1

                	
                  This
      Certificate relates to a Loan Agreement (the “Loan Agreement”) dated
      [l] 2007 and
      made between (1) Dryships Inc. as borrower (the “Borrower”), (2) the
      banks and financial institutions named therein as Lenders and (3) HSH
      Nordbank AG as Agent and as Security Trustee in respect of a bridge
      facility of up to (initially) US$150,000,000 as such amount may be
      increased on and subject to the terms and conditions referred to
      therein.

                

        

         

        
          	
                  2

                	
                  In
      this Certificate:

                

        

         

        
          	
                   
      

                	
                  “the Relevant Parties”
      means the Agent, the Borrower, each Security Party, the Security Trustee
      and each Lender;

                

        

        

        
          	
                   
      

                	
                  “the Transferor” means
      [full name] of [lending office];

                

        

        

        
          	
                   
      

                	
                  “the Transferee” means
      [full name] of [lending office].

                

        

        

        
          	
                   
      

                	
                  Terms
      defined in the Loan Agreement shall, unless the contrary intention
      appears, have the same meanings when used in this
    Certificate.

                

        

        

        
          	
                  3

                	
                  The
      effective date of this Certificate is
      .........200    Provided that this
      Certificate shall not come into effect unless it is signed by the Agent on
      or before that date.

                

        

         

        
          	
                  4

                	
                  The
      Transferor assigns to the Transferee absolutely all rights and interests
      (present, future or contingent) which the Transferor has as Lender under
      or by virtue of the Loan Agreement and every other Finance Document in
      relation to [    ] per cent. of the Contribution
      outstanding to the Transferor (or its predecessors in title) which is set
      out below:

                

        

         

        
          	
                  Contribution

                	
                  Amount
      transferred

                
	 
      	 
      
	 
      	 
      
	 
      	 
      

        

        

         

        
          
            
            

             

          

          
             

            
              

            

          

          
             

          

        

                   

         

        
          	5 	By
      virtue of this Transfer Certificate and Clause 26 of the Loan Agreement,
      the Transferor is discharged [entirely from its Commitment which amounts
      to $[          ]] [from
      [    ] per cent. of its Commitment, which percentage
      represents
      $[          ]] and the
      Transferee acquires a Commitment of
      $[              ]. 

        

         

        
          	
                  6

                	
                  The
      Transferee undertakes with the Transferor and each of the Relevant Parties
      that the Transferee will observe and perform all the obligations under the
      Finance Documents which Clause 26 of the Loan Agreement provides will
      become binding on it upon this Certificate taking
  effect.

                

        

         

        
          	
                  7

                	
                  The
      Agent, at the request of the Transferee (which request is hereby made)
      accepts, for the Agent itself and for and on behalf of every other
      Relevant Party, this Certificate as a Transfer Certificate taking effect
      in accordance with Clause 26 of the Loan
  Agreement.

                

        

         

        
          	
                  8

                	
                  The
      Transferor:

                

        

         

        
          	
                  (a)

                	
                  warrants
      to the Transferee and each Relevant
Party:

                

        

         

        
          	
                   
      

                	
                  (i)

                	
                  that
      the Transferor has full capacity to enter into this transaction and has
      taken all corporate action and obtained all consents which are in
      connection with this transaction;
and

                

        

         

        
          	
                   
      

                	
                  (ii)

                	
                  that
      this Certificate is valid and binding as regards the
      Transferor;

                

        

         

        
          	
                  (b)

                	
                  warrants
      to the Transferee that the Transferor is absolutely entitled, free of
      encumbrances, to all the rights and interests covered by the assignment in
      paragraph 4 above;

                

        

         

        
          	
                  (c)

                	
                  undertakes
      with the Transferee that the Transferor will, at its own expense, execute
      any documents which the Transferee reasonably requests for perfecting in
      any relevant jurisdiction the Transferee's title under this Certificate or
      for a similar purpose.

                

        

         

        
          	
                  9

                	
                  The
      Transferee:

                

        

         

        
          	
                  (a)

                	
                  confirms
      that it has received a copy of the Loan Agreement and each other Finance
      Document;

                

        

         

        
          	
                  (b)

                	
                  agrees
      that it will have no rights of recourse on any ground against either the
      Transferor, the Agent, the Security Trustee or any Lender in the event
      that:

                

        

         

        
          	
                   
      

                	
                  (i)

                	
                  the
      Finance Documents prove to be invalid or
  ineffective,

                

        

         

        
          	
                   
      

                	
                  (ii)

                	
                  the
      Borrower or any Security Party fails to observe or perform its
      obligations, or to discharge its liabilities, under the Finance
      Documents;

                

        

         

        
          	
                   
      

                	
                  (iii)

                	
                  it
      proves impossible to realise any asset covered by a Security Interest
      created by a Finance Document, or the proceeds of such assets are
      insufficient to discharge the liabilities of the Borrower or any Security
      Party under the Finance Documents;

                

        

         

        
          	
                  (c)

                	
                  agrees
      that it will have no rights of recourse on any ground against the Agent,
      the Security Trustee or any Lender in the event that this Certificate
      proves to be invalid or
ineffective;

                

        

         

        
          	
                  (d)

                	
                  warrants
      to the Transferor and each Relevant Party (i) that it has full capacity to
      enter into this transaction and has taken all corporate action and
      obtained all official consents which it
      needs to take or obtain in connection with this transaction; and (ii) that
      this Certificate is valid and binding as regards the Transferee;
      and

                

        

         

        
          
            
            

             

          

          
             

            
              

            

          

          
             

          

        

         

         

        
          	
                  (e)

                	
                  confirms
      the accuracy of the administrative details set out below regarding the
      Transferee.

                

        

         

        
          	
                  10

                	
                  The
      Transferor and the Transferee each undertake with the Agent and the
      Security Trustee severally, on demand, fully to indemnify the Agent and/or
      the Security Trustee in respect of any claim, proceeding, liability or
      expense (including all legal expenses) which they or either of them may
      incur in connection with this Certificate or any matter arising out of it,
      except such as are shown to have been mainly and directly caused by the
      gross and culpable negligence or dishonesty of the Agent's or the Security
      Trustee's own officers or
employees.

                

        

         

        
          	
                  11

                	
                  The
      Transferee shall repay to the Transferor on demand so much of any sum paid
      by the Transferor under paragraph 10 above as exceeds one-half of the
      amount demanded by the Agent or the Security Trustee in respect of a
      claim, proceeding, liability or expense which was not reasonably
      foreseeable at the date of this Certificate; but nothing in this paragraph
      shall affect the liability of each of the Transferor and the Transferee to
      the Agent or the Security Trustee for the full amount demanded by
      it.

                

        

         

        

        

        
          	
                  [Name
      of Transferor]

                	
                  [Name
      of Transferee]

                

        

        

        By:                                                                                     By:

        

        Date:                                                                                  Date:

        

        

        

        

        Agent

        

        Signed
for itself and for and on behalf of itself

        as
Agent and for every other Relevant Party

        

        HSH
NORDBANK AG

        

        By:

        

        Date:

        

        
          
            
            

             

          

          
             

            
              

            

          

          
             

          

        

        

        Administrative
Details of Transferee

        

        

        Name
of Transferee:

        

        Lending
Office:

        

        Contact
Person

        (Loan
Administration Department):

        

        Telephone:

        

        Telex:

        

        Fax:

        

        Contact
Person

        (Credit
Administration Department):

        

        Telephone:

        

        Telex:

        

        Fax:

        

        Account
for payments:

        

        

        

        

        
          	
                  Note:

                	
                  This
      Transfer Certificate alone may not be sufficient to transfer a
      proportionate share of the Transferor's interest in the security
      constituted by the Finance Documents in the Transferor's or Transferee's
      jurisdiction.  It is the responsibility of each Lender to
      ascertain whether any other documents are required for this
      purpose.

                

        

        

        
          
            
            

             

          

          
             

            
              

            

          

          
             

          

        

        SCHEDULE
5

         

        MANDATORY
COST FORMULA

         

        
          	
                  1

                	
                  The
      Mandatory Cost is an addition to the interest rate to compensate Lenders
      for the cost of compliance with (a) the requirements of the Financial
      Services Authority (or any other authority which replaces all or any of
      its functions) or (b) the requirements of the European Central
      Bank.

                

        

         

        
          	
                  2

                	
                  On
      the first day of each Interest Period (or as soon as possible thereafter)
      the Agent shall calculate, as a percentage rate, a rate (the "Additional Cost Rate")
      for each Lender, in accordance with the paragraphs set out
      below.  The Mandatory Cost will be calculated by the Agent as a
      weighted average of the Lenders' Additional Cost Rates (weighted in
      proportion to the percentage participation of each Lender in the Loan) and
      will be expressed as a percentage rate per
  annum.

                

        

         

        
          	
                  3

                	
                  The
      Additional Cost Rate for any Lender lending from a lending office in a
      Participating Member State will be the percentage notified by that Lender
      to the Agent.  This percentage will be certified by that Lender
      in its notice to the Agent to be its reasonable determination of the cost
      (expressed as a percentage of that Lender’s participation in the Loan) of
      complying with the minimum reserve requirements of the European Central
      Bank in respect of loans made from that lending
  office.

                

        

         

        
          	
                  4

                	
                  The
      Additional Cost Rate for any Lender lending from a lending office in the
      United Kingdom will be calculated by the Agent as
  follows:

                

        

                                

           

        
        

         

                                                         

               Where:

         

        
          	
                   
      

                	
                  E

                	
                  is
      designed to compensate Lenders for amounts payable under the Fees Rules
      and is calculated by the Agent as being the average of the most recent
      rates of charge supplied by the Lenders to the Agent pursuant to paragraph
      6 below and expressed in pounds per
£1,000,000.

                

        

         

        

        
          	
                  5

                	
                  For
      the purposes of this Schedule:

                

        

         

        
          	
                  (a)

                	
                  “Special
      Deposits”  has the meaning given to it from time to time
      under or pursuant to the Bank of England Act 1998 or (as may be
      appropriate) by the Bank of
England;

                

        

         

        
          	
                  (b)

                	
                  “Fees
      Rules”  means the rules on periodic fees contained in the
      FSA Supervision Manual or such other law or regulation as may be in force
      from time to time in respect of the payment of fees for the acceptance of
      deposits;

                

        

         

        
          	
                  (c)

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

                

        

         

        
          
            
            

             

          

          
             

            
              

            

          

          
             

          

        

        
          	
                  (d)

                	
                  “Participating Member
      State”  means any member state of the European Union that
      adopts or has adopted the euro as its lawful currency in accordance with
      legislation of the European Union relating to European Monetary Union;
      and

                

        

         

        
          	
                  (e)

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

                

        

         

        
          	
                  6

                	
                  If
      requested by the Agent, each Lender lending from a lending office in the
      United Kingdom shall, as soon as practicable after publication by the
      Financial Services Authority, supply to the Agent, the rate of charge
      payable by that Lender to the Financial Services Authority pursuant to the
      Fees Rules in respect of the relevant financial year of the Financial
      Services Authority (calculated for this purpose by that Lender as being
      the average of the Fee Tariffs applicable to that Lender for that
      financial year) and expressed in pounds per £1,000,000 of the Tariff Base
      of that Lender.

                

        

         

        
          	
                  7

                	
                  Each
      Lender shall supply any information required by the Agent for the purpose
      of calculating its Additional Cost Rate.  In particular, but
      without limitation, each Lender shall supply the following information in
      writing on or prior to the date on which it becomes a
    Lender:

                

        

         

        
          	
                  (a)

                	
                  the
      jurisdiction of its lending office;
and

                

        

         

        
          	
                  (b)

                	
                  any
      other information that the Agent may reasonably require for such
      purpose.

                

        

         

        Each
Lender shall promptly notify the Agent in writing of any change to the
information provided by it pursuant to this paragraph.

        

        
          	
                  8

                	
                  The
      rates of charge of each Lender lending from a lending office in the United
      Kingdom for the purpose of calculating E shall be determined by the Agent
      based upon the information supplied to it pursuant to paragraph 6 above
      and on the assumption that, unless a Lender notifies the Agent to the
      contrary, each Lender's obligations in relation to cash ratio deposits and
      Special Deposits are the same as those of a typical bank from its
      jurisdiction of incorporation with a lending office in the same
      jurisdiction as its lending office.

                

        

         

        
          	
                  9

                	
                  The
      Agent shall have no liability to any person if such determination results
      in an Additional Cost Rate which over or under compensates any Lender and
      shall be entitled to assume that the information provided by any Lender
      pursuant to paragraphs 3, 6 and 7 above is true and correct in all
      respects.

                

        

         

        
          	
                  10

                	
                  The
      Agent shall distribute the additional amounts received as a result of the
      Mandatory Cost to the Lenders on the basis of the Additional Cost Rate for
      each Lender based on the information provided by each Lender pursuant to
      paragraphs 3, 6 and 7 above.

                

        

         

        
          	
                  11

                	
                  Any
      determination by the Agent pursuant to this Schedule in relation to a
      formula, the Mandatory Cost, an Additional Cost Rate or any amount payable
      to a Lender shall, in the absence of manifest error, be conclusive and
      binding on all parties.

                

        

         

        The
Agent may from time to time, after consultation with the Borrower and the
Lenders, determine and notify to all parties any amendments which are required
to be made to this Schedule in order to comply with  any change in
law, regulation or any requirements from time to time imposed by the Financial
Services Authority or the European Central Bank (or, in any case, any other
authority which replaces all or any of its functions) and any such determination
shall, in the absence of manifest error, be conclusive and binding on all
parties

        
          
            
            

             

          

          
             

            
              

            

          

          
             

          

        

         

        

        

        

        EXECUTION
PAGE

         

        

        

        

          
            	
                    BORROWER

                  	 
      
	 
      	 
      
	 
      	 
      
	
                    SIGNED
by

                  	
                    )

                  
	
                    for
      and on behalf of

                  	
                    )

                  
	
                    DRYSHIPS
      INC.

                  	
                    )

                  
	
                    in
      the presence of:

                  	
                    )

                  
	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	 
      
	
                    LENDERS

                  	 
      
	 
      	 
      
	
                    SIGNED
by

                  	
                    )

                  
	
                    for
      and on behalf of

                  	
                    )

                  
	
                    HSH
      NORDBANK AG

                  	
                    )

                  
	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	 
      
	
                    SIGNED
by

                  	
                    )

                  
	
                    for
      and on behalf of

                  	
                    )

                  
	
                    THE
      GOVERNOR AND COMPANY OF

                  	
                    )

                  
	
                    THE
      BANK OF SCOTLAND

                  	
                    )

                  
	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	 
      
	
                    AGENT

                  	 
      
	 
      	 
      
	
                    SIGNED
by

                  	
                    )

                  
	
                    for
      and on behalf of

                  	
                    )

                  
	
                    HSH
      NORDBANK AG

                  	
                    )

                  
	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	 
      
	
                    SECURITY
      TRUSTEE

                  	 
      
	 
      	 
      
	
                    SIGNED
by

                  	
                    )

                  
	
                    for
      and on behalf of

                  	
                    )

                  
	
                    HSH
      NORDBANK AG

                  	
                    )d864185_ex4-8.htm

    Exhibit 4.8

     

     

    Dated      May
2007

    

    DRYSHIPS
INC.

    as
Borrower

    

    - and
-

    

    

    THE
BANKS AND FINANCIAL INSTITUTIONS

    listed
in Schedule 1

    as
Lenders

    

    - and
-

    

    

    HSH
NORDBANK AG

    as Agent
and Security Trustee

    

    - and
-

    

    

    HSH
NORDBANK AG

    as Lead
Arranger and Lead Bookrunner

    

    - and
-

    

    

    THE
GOVERNOR AND COMPANY OF THE BANK OF SCOTLAND

    as Joint
Bookrunner

    

    -
and-

    

    

    HSH NORDBANK AG
and

    THE
GOVERNOR AND COMPANY

    OF
THE BANK OF SCOTLAND

    as Joint
Underwriters

    

    - and
-

    

    THE
BANKS AND FINANCIAL INSTITUTIONS

    listed
in Part B of Schedule 1

    as Swap
Banks

    

                                                                                                                           

     

    AMENDING
AND RESTATING AGREEMENT

                                                                                                                           

    

    relating
to a term loan and short-term credit facilities of up to
US$692,051,350.33

    in
aggregate to refinance certain existing indebtedness, to provide
working

    capital
and to finance part of the purchase price of certain additional
vessels

    

    

    
      
        
          WATSON,
FARLEY & WILLIAMS

          Piraeus

        

         

      

      
         

        
          

        

      

      
         

      

    

    INDEX

     

    
      
        	 Clause 	 	Page 
	 	 	 
	
                1

              	
                INTERPRETATION

              	
                2

              
	 	 	 
	
                2

              	
                AGREEMENT
      OF ALL PARTIES TO THE AMENDMENT OF THE LOAN AGREEMENT, MASTER AGREEMENTS
      AND EXISTING FINANCE DOCUMENTS

              	
                2

              
	 	 	 
	
                3

              	
                CONDITIONS
      PRECEDENT

              	
                3

              
	 	 	 
	
                4

              	
                REPRESENTATIONS
      AND WARRANTIES

              	
                3

              
	 	 	 
	
                5

              	
                AMENDMENT
      OF LOAN AGREEMENT, MASTER AGREEMENTS AND EXISTING FINANCE
      DOCUMENTS

              	
                4

              
	 	 	 
	
                6

              	
                FURTHER
      ASSURANCES

              	
                5

              
	 	 	 
	
                7

              	
                FEES
      AND EXPENSES

              	
                5

              
	 	 	 
	
                8

              	
                NOTICES

              	
                5

              
	 	 	 
	
                9

              	
                SUPPLEMENTAL

              	
                6

              
	 	 	 
	
                10

              	
                LAW
      AND JURISDICTION

              	
                6

              
	 
      	 
      	 
      
	
                SCHEDULE
      1

              	
                7

              
	 
      	 
      
	
                PART
      A

              	
                7

              
	 
      	 
      
	
                LENDERS
      AND COMMITMENTS

              	
                7

              
	 
      	 
      
	
                PART
      B

              	
                8

              
	 
      	 
      
	
                SWAP
      BANKS

              	
                8

              
	 
      	 
      
	
                EXECUTION
      PAGES

              	
                9

              
	 
      	 
      
	
                SECURITY
      PARTIES’ CONFIRMATION

              	
                12

              
	 
      	 
      
	
                APPENDIX
      FORM OF AMENDED AND RESTATED LOAN AGREEMENT MARKED TO INDICATE AMENDMENTS
      TO THE LOAN AGREEMENT

              	
                15

              

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    THIS AGREEMENT is made
on         May 2007

     

    BETWEEN

     

    
      	
              (1)  

            	
              DRYSHIPS INC. a
      corporation incorporated in the Marshall Islands whose registered office
      is at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, The
      Marshall Islands MH 96960 as Borrower;

            

    

     

    
      	
              (2)  

            	
              THE BANKS AND FINANCIAL
      INSTITUTIONS  listed in Part A of Schedule 1, as Lenders;

            

    

     

    
      	
              (3)  

            	
              HSH NORDBANK AG acting
      through its office at Gerhart-Hauptmann-Platz 50, D-20095, Hamburg,
      Germany, as Agent;

            

    

     

    
      	
              (4)  

            	
              HSH NORDBANK AG acting
      through its office at Gerhart-Hauptmann-Platz 50, D-20095, Hamburg,
      Germany, as Security Trustee;

            

    

     

    
      	
              (5)  

            	
              HSH NORDBANK AG acting
      through its office at Gerhart-Hauptmann-Platz 50, D-20092, Germany, as
      Lead Arranger and
      as Lead
      Bookrunner;

            

    

     

    
      	
              (6)  

            	
              THE GOVERNOR AND COMPANY OF THE
      BANK OF SCOTLAND acting through its office at Pentland House, 8
      Lochside Avenue, Edinburgh EH12 9DJ, Scotland, as Joint
      Bookrunner;

            

    

     

    
      	
              (7)  

            	
              HSH NORDBANK AG acting
      through its office at Gerhart-Hauptmann-Platz 50, D-20095, Hamburg,
      Germany and THE GOVERNOR
      AND COMPANY OF THE BANK OF SCOTLAND acting through its office at
      Pentland House, 8 Lochside Avenue, Edinburgh EH12 9DJ, Scotland, as Joint Underwriters;
      and

            

    

     

    
      	
              (8)  

            	
              THE BANKS AND FINANCIAL
      INSTITUTIONS  listed in Part B of Schedule 1, as Swap
    Banks.

            

    

     

    BACKGROUND

     

    
      	
              (A)  

            	
              By
      a loan agreement dated 31 March 2006 (as supplemented and amended by a
      supplemental letter dated 15 May 2006 and as further amended and
      supplemented by a supplemental agreement dated 29 November 2006, the
      “Loan
      Agreement”) and made between
      (i) the Borrower, (ii) the Lenders, (iii) the Agent, (iv) the Security
      Trustee, (v) the Lead Arranger, (vi) the Lead Bookrunner, (vii) the Joint
      Bookrunner, (vii) the Joint Underwriters and (ix) the Swap Banks, the
      Lenders agreed to make available to the Borrower both term loan and
      short-term credit facilities of up to US$555,860,680.62 in
      aggregate.

            

    

     

    
      	
              (B)  

            	
              The
      aggregate principal amount outstanding under the Loan Agreement as at the
      date of this Agreement is
US$476,188,110.

            

    

     

    
      	
              (C)  

            	
              By
      two ISDA master agreements (each on the 1992 ISDA Master Agreement
      (Multicurrency-crossborder) form) and each dated 31 March 2006 (the “Master Agreement”) made
      between the Borrower and a Swap Bank, the Borrower has entered into or
      will enter into certain Designated Transactions (as such term is defined
      in the said Loan Agreement) pursuant to separate Confirmations (as such
      term is defined in the said Loan
Agreement).

            

    

     

    
      	
              (D)  

            	
              Subject
      to the terms and conditions of this Agreement, the Lenders have
      agreed:

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              (i)  

            	
              to
      an increase in the Credit Facility of up to $152,040,000 in order to
      assist the Borrower in part-financing the purchase price of certain
      Additional Ships and certain Identified Ships;
  and

            

    

     

    
      	
              (ii)  

            	
              to
      grant an option to the Borrower allowing mandatory prepayment amounts of
      up to $165,600,000 (of which an amount of $63,823,240.33 represents the
      aggregate mandatory prepayment amounts made on or prior to the date of
      this Agreement) in aggregate (which amounts are due and payable upon the
      sale of any Existing Ship) to be
re-borrowed.

            

    

     

     

    IT IS AGREED as
follows:

     

    
      	
              1  

            	
              INTERPRETATION

            

    

     

    
      	
              1.1  

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

            

    

     

    
      	
              1.2  

            	
              Definitions.  In
      this Agreement, unless the contrary intention
  appears:

            

    

     

    “Amended and Restated Loan
Agreement”  means the Loan Agreement as amended and restated by
this Agreement in the form set out in the Appendix;

     

    “Effective
Date”  means the date on which the Agent notifies the Borrower
and the Creditor Parties that the conditions precedent in Clause 3 have been
fulfilled;

     

    “Existing Finance
Documents”  means the Finance Documents to which the Borrower
is a party which have been executed prior to the date hereof;

     

    “Loan
Agreement”  means the loan agreement dated 31 March 2006 (as
supplemented and amended by a supplemental letter dated 15 May 2006 and as
further amended and supplemented by a supplemental agreement dated 29 November
2006) referred to in Recital (A);

     

    “Mortgage
Amendment”  means, in relation to each Existing Ship which is
the subject of a Mortgage as at the date of this Agreement, the amendment to the
Mortgage relating to that Existing Ship, executed or to be executed by the
relevant Owner in favour of the Security Trustee in such form as the Lenders may
approve or require; and

     

    “Security Parties’
Confirmation”  means the confirmation set out at the end of
this Agreement executed or to be executed by the Security Parties.

     

    
      	
              1.3  

            	
              Application of construction and
      interpretation provisions of Loan Agreement.  Clauses
      1.2, 1.5 and 1.6 of the Loan Agreement apply, with any necessary
      modifications, to this Agreement.

            

    

     

    
      	
              2  

            	
              AGREEMENT
      OF ALL PARTIES TO THE AMENDMENT OF THE LOAN AGREEMENT, MASTER AGREEMENTS
      AND EXISTING FINANCE DOCUMENTS

            

    

     

    
      	
              2.1  

            	
              Agreement of the parties to
      this Agreement.  The parties to this Agreement agree,
      subject to and upon the terms and conditions of this Agreement, to the
      amendment of the Loan Agreement, the Master Agreements and the Existing
      Finance Documents to be made pursuant to Clauses 5.1, 5.2, 5.3 and
      5.4.

            

    

     

    
      	
              2.2  

            	
              Effective Date. The
      agreement of the parties to this Agreement contained in Clause 2.1 shall
      have effect on and from the Effective
Date.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              3  

            	
              CONDITIONS
      PRECEDENT

            

    

     

    
      	
              3.1  

            	
              General.  The
      agreement of the parties to this Agreement contained in Clause 2.1 is
      subject to the fulfilment of the conditions precedent in Clause
      3.2.

            

    

     

    
      	
              3.2  

            	
              Conditions
      precedent.  The conditions referred to in Clause 3.1 are
      that the Agent shall have received the following documents and evidence in
      all respects in form and substance satisfactory to the Agent and its
      lawyers on or before 15 April 2007 or such later date as the Joint
      Underwriters may agree with the
Borrower:

            

    

     

    
      	
              (a)  

            	
              in
      relation to the Borrower and each Owner of an Existing Ship, documents of
      the kind specified in paragraphs 2, 3, 4 and 5 of Part A of Schedule 5 of
      the Loan Agreement with appropriate modifications to refer to this
      Agreement, the Security Parties’ Confirmation and each Mortgage Amendment
      insofar as each is a party thereto;

            

    

     

    
      	
              (b)  

            	
              a
      duly executed original of this Agreement duly executed by the parties to
      it;

            

    

     

    
      	
              (c)  

            	
              evidence
      that an amount of not less than $5,000,000 is standing to the credit of
      the Debt Service Reserve Account;

            

    

     

    
      	
              (d)  

            	
              all
      documentation required by each Creditor Party in relation to the Borrower
      and any Security Party pursuant to that Creditor Party’s “know your
      customer” requirements;

            

    

     

    
      	
              (e)  

            	
              a
      compliance certificate (in the form set out in Schedule 8 of the Loan
      Agreement) demonstrating the compliance by the Borrower (or not, as the
      case may be) with the provisions of Clause 12.4 of the Loan Agreement
      (such compliance to be determined by reference to the audited annual
      consolidated accounts of the Group for the Financial Year ended 31
      December 2006) signed by the chief financial officer of the
      Borrower;

            

    

     

    
      	
              (f)  

            	
              documentary
      evidence that the agent for service of process named in Clause 30 of the
      Loan Agreement has accepted its appointment under this Agreement and the
      other Finance Documents;

            

    

     

    
      	
              (g)  

            	
              favourable
      legal opinions from lawyers appointed by the Agent on such matters
      concerning the laws of the Marshall Islands, Malta, England, Germany and
      such other relevant jurisdictions as the Agent may
  require;

            

    

     

    
      	
              (h)  

            	
              if
      the Agent so requires, in respect of any of the documents referred to
      above, a certified English translation prepared by a translator approved
      by the Agent;

            

    

     

    
      	
              (i)  

            	
              a
      duly executed original of each Mortgage
  Amendment;

            

    

     

    
      	
              (j)  

            	
              documentary
      evidence that each Mortgage Amendment has been duly registered against the
      relevant Existing Ship as a valid amendment to the Mortgage over that
      Existing Ship according to the laws of
Malta;

            

    

     

    
      	
              (k)  

            	
              a
      duly executed original of the Security Parties’
    Confirmation;

            

    

     

    
      	
              (l)  

            	
              any
      further opinions, consents, agreements and documents in connection with
      this Agreement and the Finance Documents which the Lender may request by
      notice to the Borrower prior to the Effective Date;
  and

            

    

     

    
      	
              (m)  

            	
              evidence
      that the Agent has received the fees payable under Clause
    7.1.

            

    

     

    
      	
              4  

            	
              REPRESENTATIONS
      AND WARRANTIES

            

    

     

    
      	
              4.1  

            	
              Repetition of Loan Agreement
      representations and warranties.  The Borrower represents
      and warrants to the Agent that the representations and warranties in
      Clause 10 of the Loan Agreement, as amended and restated by this Agreement
      and updated with appropriate modifications to refer to this Agreement and,
      where appropriate, each Mortgage Amendment, remain true and not misleading
      if repeated on the date of this Agreement with reference to the
      circumstances now existing.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              4.2  

            	
              Repetition of representations
      and warranties under Existing Finance Documents.  The
      Borrower represents and warrants to the Agent that the representations and
      warranties in the Existing Finance Documents to which it is a party, as
      amended and restated by this Agreement and updated with appropriate
      modifications to refer to this Agreement and, where appropriate, each
      Mortgage Amendment, remain true and not misleading if repeated on the date
      of this Agreement with reference to the circumstances now
      existing.

            

    

     

    
      	
              5  

            	
              AMENDMENT
      OF LOAN AGREEMENT, MASTER AGREEMENTS AND EXISTING FINANCE
      DOCUMENTS

            

    

     

    
      	
              5.1  

            	
              Amendments
      to Loan Agreement.

            

    

     

    
      	
              (a)  

            	
              With
      effect on and from the Effective Date the Loan Agreement shall be, and
      shall be deemed by this Agreement to be, amended and restated in the form
      of the Amended and Restated Loan
Agreement.

            

    

     

    
      	
              (b)  

            	
              As
      so amended and restated pursuant to (a) above, the Loan Agreement shall
      continue to be binding on each of the parties to it in accordance with its
      terms as so amended and restated save that for the avoidance of doubt
      Sumitomo Mitsui Banking Corporation shall not participate in any
      Identified Ship Advances to be made available after the date of this
      Agreement.

            

    

     

    
      	
              5.2  

            	
              Amendments to the agreed form
      of Finance Documents yet to be executed.  With effect on
      and from the Effective Date any agreed form Finance Documents shall be
      amended with such logical changes as are necessary to reflect the
      arrangements hereunder.

            

    

     

    
      	
              5.3  

            	
              Amendments to Master
      Agreements.  With effect on and from the Effective Date
      each Master Agreement shall be, and shall be deemed by this Agreement to
      be, amended so that the definition of, and references throughout to, the
      Loan Facility and the Credit Support Documents shall be construed as if
      the same referred to the Loan Agreement and those Credit Support Documents
      as amended and restated or supplemented by this Agreement and each
      Mortgage Amendment.

            

    

     

    
      	
              5.4  

            	
              Amendments to Existing Finance
      Documents.  With effect on and from the Effective Date
      each of the Existing Finance Documents (other than the Mortgage on each
      Existing Ship which shall be amended and supplemented by the relevant
      Mortgage Amendment) shall be, and shall be deemed by this Agreement to be,
      amended as follows:

            

    

     

    
      	
              (a)  

            	
              the
      definition of, and references throughout each of the Existing Finance
      Documents to, the Loan Agreement, the Master Agreements and any of the
      Existing Finance Documents shall be construed as if the same referred to
      the Loan Agreement, the Master Agreements and those Existing Finance
      Documents as amended and restated or supplemented by this
      Agreement;

            

    

     

    
      	
              (b)  

            	
              the
      definition of, and references throughout each of the Existing Finance
      Documents to, each Mortgage, shall be construed as if the same referred to
      each such Mortgage as amended and supplemented by the relevant Mortgage
      Amendment; and

            

    

     

    
      	
              (c)  

            	
              by
      construing references throughout each of the Existing Finance Documents to
      “this Agreement”, “this Deed”, “hereunder” and other
      like expressions as if the same referred to such Existing Finance
      Documents as amended and supplemented by this
  Agreement.

            

    

     

    
      	
              5.5  

            	
              The Master Agreements and the
      Existing Finance Documents to remain in full force and
      effect.  Each Master Agreement and the Existing Finance
      Documents shall remain in full force and effect, as amended
      by:

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    
      	
              (a)  

            	
              the
      amendments contained or referred to in Clause 5.3 and 5.4 and each Mortgage
      Amendment; and

            

    

     

    
      	
              (b)  

            	
              such
      further or consequential modifications as may be necessary to give full
      effect to the terms of this
Agreement.

            

    

     

    
      	
              6  

            	
              FURTHER
      ASSURANCES

            

    

     

    
      	
              6.1  

            	
              Borrower’s obligations to
      execute further documents etc.  The Borrower
      shall:

            

    

     

    
      	
              (a)  

            	
              execute
      and deliver to the Agent (or as it may direct) any assignment, mortgage,
      power of attorney, proxy or other document, governed by the law of England
      or such other country as the Agent may, in any particular case,
      specify;

            

    

     

    
      	
              (b)  

            	
              effect
      any registration or notarisation, give any notice or take any other
      step;

            

    

     

    which the
Agent may, by notice to the Borrower, specify for any of the purposes described
in Clause 6.2 or for any similar or related purpose.

     

    
      	
              6.2  

            	
              Purposes of further
      assurances.  Those purposes
  are:

            

    

     

    
      	
              (a)  

            	
              validly
      and effectively to create any Security Interest or right of any kind which
      the Agent intended should be created by or pursuant to the Loan Agreement
      or any other Finance Document, each as amended and restated or
      supplemented by this Agreement, or by the relevant Mortgage Amendment;
      and

            

    

     

    
      	
              (b)  

            	
              implementing
      the terms and provisions of this
Agreement.

            

    

     

    
      	
              6.3  

            	
              Terms of further
      assurances.  The Agent may specify the terms of any
      document to be executed by the Borrower under Clause 6.1, and those terms
      may include any covenants, powers and provisions which the Agent considers
      appropriate to protect its
interests.

            

    

     

    
      	
              7  

            	
              FEES
      AND EXPENSES

            

    

     

    
      	
              7.1  

            	
              Facility
      fees.  The Borrower shall pay to the Agent any fees
      previously agreed in writing between the Agent and the
      Borrower.

            

    

     

    
      	
              7.2  

            	
              Expenses.  The
      Borrower shall reimburse to the Agent on demand all costs, fees and
      expenses (including, but not limited to, legal fees and expenses) and
      taxes thereon incurred by the Agent or any other Creditor Party in
      connection with the negotiation, preparation and execution of this
      Agreement, each Mortgage Amendment and the Security Parties’
      Confirmation.

            

    

     

    
      	
              8  

            	
              NOTICES

            

    

     

    
      	
              8.1  

            	
              General.  The
      provisions of Clause 28 (Notices) of the Loan Agreement, as amended and
      restated by this Agreement, shall apply to this Agreement as if they were
      expressly incorporated in this Agreement with any necessary
      modifications.

            

    

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    
      	
              9  

            	
              SUPPLEMENTAL

            

    

     

    
      	
              9.1  

            	
              Counterparts.  This
      Agreement may be executed in any number of
  counterparts.

            

    

     

    
      	
              9.2  

            	
              Third party
      rights.  Other than a Creditor Party, no person who is
      not a party to this Agreement has any right under the Contracts (Rights of
      Third Parties) Act 1999 to enforce or to enjoy the benefit of any term of
      this Agreement.

            

    

     

    
      	
              10  

            	
              LAW
      AND JURISDICTION

            

    

     

    
      	
              10.1  

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

            

    

     

    
      	
              10.2  

            	
              Incorporation of the Loan
      Agreement provisions.  The provisions of clause 30 (Law
      and Jurisdiction) of the Loan Agreement, as amended and restated by this
      Agreement, shall apply to this Agreement as if they were expressly
      incorporated in this Agreement with any necessary
      modifications.

            

    

     

    

    THIS AGREEMENT has been duly
executed as a Deed on the date stated at the beginning of this
Agreement.

    
      
        
           

        

         

      

      
         

        
          

        

      

      
         

      

    

    SCHEDULE
1

     

     

    PART
A

     

     

    LENDERS
AND COMMITMENTS

     

    
      	
              Lender

            	
              Lending
      Office

            	 	
              Term
      Loan

              Commitment

              (US
      Dollars)

            	 	 	
              Re-borrowing
      Commitment (in addition to Term Loan Commitment) (US
    Dollars)

            	 	 	
              Credit
      Facility Commitment (US Dollars)

            	 	 	
              Total
      Participation

              (US
      Dollars)

            
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
              HSH
      Nordbank AG

            	
              Gerhart-Hauptmann-Platz
      50

              D-20095
      Hamburg

              Germany

            	 	 	149,273,641	 	 	 	22,127,767.03	 	 	 	52,712,862.59	 	 	 	
              224,114,270.62

            	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
              The
      Governor and Company of the Bank of Scotland

            	
              Pentland
      House

              8
      Lochside Avenue

              Edinburgh

              EH12
      9DJ

              Scotland

            	 	 	42,106,971	 	 	 	7,764,274.82	 	 	 	18,496,089.19	 	 	 	68,367,335.01	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
              Alliance
      & Leicester Commercial Finance plc

            	
              Carlton
      Park

              Narborough
      Leicester LE19 0AL

              England

            	 	 	36,166,032	 	 	 	4,847,314.07	 	 	 	11,547,292.61	 	 	 	52,560.638.68	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
              Bayerische
      Hypo-und 

              Vereinsbank
      AG

            	
              Alter
      Wall 22

              20457
      Hamburg

              Germany

            	 	 	49,728,293	 	 	 	6,665,056.85	 	 	 	15,877,527.33	 	 	 	72,270,877.18	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
              Commerzbank
      Aktiengesellschaft

            	
              Ness
      7-9

              D-20457
      Hamburg

              Germany

            	 	 	90,415,079	 	 	 	12,118,285.17	 	 	 	28,868,231.50	 	 	 	131,401,595.67	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
              Natixis

            	
              45
      rue Saint Dominique

              75007
      Paris

              France

            	 	 	31,645,277	 	 	 	4,241,399.81	 	 	 	10,103,881.03	 	 	 	45,990,557.84	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
              Sumitomo
      Mitsui Banking Corporation, Brussels Branch

            	
              Avenue
      des Arts 58

              Box
      18

              1000
      Brussels

              Belgium

            	 	 	31,645,277	 	 	 	0.00	 	 	 	0.00	 	 	 	31,645,277	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
              Dresdner
      Bank AG

            	
              Jungfernstieg
      22

              20349
      Hamburg

              Germany

            	 	 	45,207,539	 	 	 	6,059,142.58	 	 	 	14,434,115.75	 	 	 	65,700,797.33	 

    

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    PART
B

     

    SWAP
BANKS

     

    

    
      	
              HSH
      Nordbank AG

            	
              Martensdamm
      6

              D-24103
      Kiel

              Germany

               

            	 
      	 
      
	
              HBOS
      Treasury Services Plc

            	
              33
      Old Broad Street

              London
      EC2N 1HZ

              England

            	 
      	 
      

    

     

    
      
        
           

        

         

      

      
         

        
          

        

      

      
         

      

    

    

    EXECUTION
PAGES

     

    
      	
              BORROWER

            	 
      
	 
      	 
      
	
              SIGNED
by

            	
              )

            
	
              For
      and on behalf of

            	
              )

            
	
              DRYSHIPS
      INC.

            	
              )

            
	 
      	 
      
	 
      	 
      
	 
      	 
      
	
              LENDERS

            	 
      
	 
      	 
      
	
              SIGNED
by

            	
              )

            
	
              For
      and on behalf of

            	
              )

            
	
              HSH
      NORDBANK AG

            	
              )

            
	 
      	 
      
	 
      	 
      
	 
      	 
      
	
              SIGNED
by

            	
              )

            
	
              For
      and on behalf of

            	
              )

            
	
              THE
      GOVERNOR AND COMPANY OF

            	
              )

            
	
              THE
      BANK OF SCOTLAND

            	
              )

            
	 
      	 
      
	 
      	 
      
	 
      	 
      
	
              SIGNED
by

            	
              )

            
	
              For
      and on behalf of

            	
              )

            
	
              ALLIANCE
      & LEICESTER

            	
              )

            
	
              COMMERCIAL
      FINANCE PLC

            	
              )

            
	 
      	 
      
	 
      	 
      
	 
      	 
      
	
              SIGNED
by

            	
              )

            
	
              For
      and on behalf of

            	
              )

            
	
              BAYERISCHE
      HYPO-UND

            	
              )

            
	
              VEREINSBANK
      AG

            	
              )

            
	 
      	 
      
	 
      	 
      
	 
      	 
      
	
              SIGNED
by

            	
              )

            
	
              For
      and on behalf of

            	
              )

            
	
              COMMERZBANK

            	
              )

            
	
              AKTIENGESELLSCHAFT

            	
              )

            
	 
      	 
      
	 	 
	 	 

    

    
      	
              SIGNED
by

            	
              )

            
	
              For
      and on behalf of

            	
              )

            
	
              NATIXIS
      (formerly NAXTEXIS BANQUES

            	
              )

            
	
              POPULARIES)

            	
              )

            
	 
      	 
      
	 
      	 
      
	 
      	 
      
	
              SIGNED
by

            	
              )

            
	
              For
      and on behalf of

            	
              )

            
	
              DRESDNER
      BANK AG

            	
              )

            
	 
      	 
      
	 
      	 
      
	 
      	 
      
	
              SIGNED
by

            	
              )

            
	
              For
      and on behalf of

            	
              )

            
	
              SUMITOMO
      MITSUI BANKING

            	
              )

            
	
              CORPORATION

            	
              )

            
	 
      	 
      

    

    
      	
            	 
      
	 
      	 
      
	
              AGENT

            	 
      
	 
      	 
      
	
              SIGNED
by

            	
              )

            
	
              For
      and on behalf of

            	
              )

            
	
              HSH
      NORDBANK AG

            	
              )

            
	 
      	 
      

    

    
      	
            	 
      
	 
      	 
      
	
              SECURITY
      TRUSTEE

            	 
      
	 
      	 
      
	
              SIGNED
by

            	
              )

            
	
              For
      and on behalf of

            	
              )

            
	
              HSH
      NORDBANK AG

            	
              )

            
	 
      	 
      
	 
      	 
      
	 
      	 
      

    

    
      	
              LEAD
      ARRANGER/LEAD BOOKRUNNER

            	 
      
	 
      	 
      
	
              SIGNED
by

            	
              )

            
	
              For
      and on behalf of

            	
              )

            
	
              HSH
      NORDBANK AG

            	
              )

            
	 
      	 
      
	 
      	 
      
	 
      	 
      

    

    
       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

      
        	
                JOINT
      BOOKRUNNER

              	 
      
	 
      	 
      
	
                SIGNED
by

              	
                )

              
	
                For
      and on behalf of

              	
                )

              
	
                THE
      GOVERNOR AND COMPANY

              	
                )

              
	
                OF
      THE BANK OF SCOTLAND

              	
                )

              
	 
      	 
      
	 
      	 
      
	 
      	 
      
	
                JOINT
      UNDERWRITERS

              	 
      
	 
      	 
      
	
                SIGNED
by

              	
                )

              
	
                For
      and on behalf of

              	
                )

              
	
                HSH
      NORDBANK AG

              	
                )

              
	 
      	 
      
	 
      	 
      
	 
      	 
      
	
                SIGNED
by

              	
                )

              
	
                For
      and on behalf of

              	
                )

              
	
                THE
      GOVERNOR AND COMPANY OF

              	
                )

              
	
                THE
      BANK OF SCOTLAND

              	
                )

              
	 
      	 
      
	 
      	 
      
	 
      	 
      
	
                SWAP
      BANKS

              	 
      
	 
      	 
      
	
                SIGNED
by

              	
                )

              
	
                For
      and on behalf of

              	
                )

              
	
                HSH
      NORDBANK AG

              	
                )

              
	 
      	 
      
	 
      	 
      
	 
      	 
      
	
                SIGNED
by

              	
                )

              
	
                For
      and on behalf of

              	
                )

              
	
                HSH
      NORDBANK AG

              	
                )

              
	 
      	 
      
	 
      	 
      
	 
      	 
      
	
                SIGNED
by

              	
                )

              
	
                For
      and on behalf of

              	
                )

              
	
                HBOS
      TREASURY SERVICES PLC

              	
                )

              
	 
      	 
      
	 
      	 
      
	 
      	 
      
	
                Witness
      to all the

              	
                )

              
	
                above
      signatures

              	
                )

              
	 
      	 
      
	
                Name:

              	 
      
	
                Address:

              	 
      
	 
      	 
      
	 
      	 
      
	 
      	 
      

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

SECURITY
PARTIES’ CONFIRMATION

    

    

    COUNTERSIGNED  this
day      of May 2007 for and on behalf of the
below companies each of which, by its execution hereof, confirms and
acknowledges that it has read and understood the terms and conditions of this
Amendment and Restatement Agreement, that it agrees in all respects to the same
and that the Finance Documents to which it is a party shall remain in full force
and effect and shall continue to stand as security for the obligations of the
Borrower under the Loan Agreement.

    
 

    
      
        	 
      	 
      	 
      
	 
      	 
      	 
      
	
                for
      and on behalf of

              	 
      	
                for
      and on behalf of

              
	
                WEALTH
      MANAGEMENT INC.

              	 
      	
                CELINE
      SHIPPING COMPANY LIMITED

              
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	
                for
      and on behalf of

              	 
      	
                for
      and on behalf of

              
	
                HYDROGEN
      SHIPPING COMPANY LIMITED

              	 
      	
                TEMPO
      MARINE CO.

              
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	
                for
      and on behalf of

              	 
      	
                for
      and on behalf of

              
	
                ANNAPOLIS
      SHIPPING COMPANY LIMITED

              	 
      	
                LANCAT
      SHIPPING COMPANY LIMITED

              
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	
                for
      and on behalf of

              	 
      	
                for
      and on behalf of

              
	
                TOLAN
      SHIPPING COMPANY LIMITED

              	 
      	
                MALVINA
      SHIPPING COMPANY LIMITED

              
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	
                for
      and on behalf of

              	 
      	
                for
      and on behalf of

              
	
                ARLETA
      NAVIGATION COMPANY LIMITED

              	 
      	
                SELMA
      SHIPPING COMPANY LIMITED

              
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

      
        	 
      	 
      	 
      
	 
      	 
      	 
      
	
                for
      and on behalf of

              	 
      	
                for
      and on behalf of

              
	
                ROYERTON
      SHIPPING COMPANY LIMITED

              	 
      	
                SAMSARA
      SHIPPING COMPANY LIMITED

              
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	
                for
      and on behalf of

              	 
      	
                for
      and on behalf of

              
	
                LANSAT
      SHIPPING COMPANY LIMITED

              	 
      	
                FARAT
      SHIPPING COMPANY LIMITED

              
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	
                for
      and on behalf of

              	 
      	
                for
      and on behalf of

              
	
                MADRAS
      SHIPPING COMPANY LIMITED

              	 
      	
                IGUANA
      SHIPPING COMPANY LIMITED

              
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	
                for
      and on behalf of

              	 
      	
                for
      and on behalf of

              
	
                BORSARI
      SHIPPING COMPANY LIMITED

              	 
      	
                FELICIA
      NAVIGATION LIMITED

              
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	
                for
      and on behalf of

              	 
      	
                for
      and on behalf of

              
	
                ZATAC
      SHIPPING COMPANY LIMITED

              	 
      	
                ONIL
      SHIPPING COMPANY LIMITED

              
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	
                for
      and on behalf of

              	 
      	
                for
      and on behalf of

              
	
                FAGO
      SHIPPING COMPANY LIMITED

              	 
      	
                FABIANA
      NAVIGATION COMPANY LIMITED

              
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	
                for
      and on behalf of

              	 
      	
                for
      and on behalf of

              
	
                KARMEN
      SHIPPING COMPANY LIMITED

              	 
      	
                THELMA
      SHIPPING COMPANY LIMITED

              
	 
      	 
      	 
      
	 
      	 
      	 
      

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

      
        	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	
                for
      and on behalf of

              	 
      	
                for
      and on behalf of

              
	
                ARGO
      OWNING COMPANY LIMITED

              	 
      	
                MATERNAL
      OWNING COMPANY LIMITED

              
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	
                for
      and on behalf of

              	 
      	
                for
      and on behalf of

              
	
                PATERNAL
      OWNING COMPANY LIMITED

              	 
      	
                STAR
      RECORD OWNING LIMITED

              
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	
                for
      and on behalf of

              	 
      	 
      
	
                SEAVENTURE
      SHIPPING COMPANY LIMITED

              	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    APPENDIX

    

    FORM
OF AMENDED AND RESTATED LOAN AGREEMENT MARKED TO INDICATE AMENDMENTS TO THE LOAN
AGREEMENT

    

    

    

    Amendments
are indicated as follows:

     

    
      	
              1  

            	
              additions
      are indicated by underlined text;
and

            

    

     

    
      	
              2  

            	
              deletions
      are shown by the relevant text being struck
out.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00139-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00139-of-00352.parquet"}]]