Document:

Unassociated Document

    Exhibit
4.78

    28.045

     

    
 

     

    DATED 18 AUGUST
2008

    

    

    

    

    

    LICHTENSTEIN
SHIPPING COMPANY LIMITED

    (as
Borrower)

    

    -and
-

    

    ALPHA
BANK A.E.

    (as
Lender)

    

    

    ________________________

    

    US$39,000,000
SECURED

    LOAN
AGREEMENT

    Hull
No. S-1026

    ________________________

    

    

    STEPHENSON
HARWOOD

    One
St. Paul's Churchyard

    London
EC4M 8SH

    Tel:
020 7329 4422

    Fax:
020 7329 7100

    Ref:
28.045

    

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    CONTENTS

     

    Page

    

    
      
        
          
            
              
                
                  
                    
                      
                        	
                                1

                              	
                                Definitions
      and Interpretation

                              	
                                1

                              
	
                                2

                              	
                                The
      Loan and its Purpose

                              	
                                12

                              
	
                                3

                              	
                                Conditions
      of Utilisation

                              	
                                12

                              
	
                                4

                              	
                                Advance

                              	
                                15

                              
	
                                5

                              	
                                Repayment

                              	
                                15

                              
	
                                6

                              	
                                Prepayment

                              	
                                15

                              
	
                                7

                              	
                                Interest

                              	
                                16

                              
	
                                8

                              	
                                Indemnities

                              	
                                19

                              
	
                                9

                              	
                                Fees

                              	
                                23

                              
	
                                10

                              	
                                Security
      and Application of Moneys

                              	
                                23

                              
	
                                11

                              	
                                Representations

                              	
                                26

                              
	
                                12

                              	
                                Undertakings
      and Covenants

                              	
                                29

                              
	
                                13

                              	
                                Events
      of Default

                              	
                                36

                              
	
                                14

                              	
                                Assignment
      and Sub-Participation

                              	
                                41

                              
	
                                15

                              	
                                Set-Off

                              	
                                42

                              
	
                                16

                              	
                                Payments

                              	
                                42

                              
	
                                17

                              	
                                Notices

                              	
                                44

                              
	
                                18

                              	
                                Partial
      Invalidity

                              	
                                45

                              
	
                                19

                              	
                                Remedies
      and Waivers

                              	
                                45

                              
	
                                20

                              	
                                Miscellaneous

                              	
                                45

                              

                      

                    

                  

                

              

            

          

        

      

    

     

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    
      	
              21

            	
              Law
      and Jurisdiction

            	
              46

            
	 
      	 
      	 
      
	
              SCHEDULE
      1: Conditions Precedent and Subsequent

            	
              48

            
	 
      	
              Part
      I: Conditions precedent

            	
              48

            
	 
      	
              Part
      II: Conditions subsequent

            	
              52

            
	 
      	
              Part
      III: Delivery conditions precedent

            	
              53

            
	 
      	
              Part
      IV: Delivery conditions subsequent

            	
              56

            
	 
      	 
      	 
      
	
              SCHEDULE
      3: Form of Compliance Certificate

            	
              58

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    LOAN
AGREEMENT

     

    Dated:
18 August 2008

     

     

    BETWEEN:

     

    
      	
              (1)

            	
              LICHTENSTEIN SHIPPING COMPANY
      LIMITED, a company incorporated under the laws of the Republic of
      Liberia whose registered office is at 80, Broad Street Monrovia, Liberia
      (the "Borrower");
      and

            

    

     

    
      	
              (2)

            	
              ALPHA BANK A.E., acting
      through its office at 89 Akti Miaouli, GR 185 38 Piraeus, Greece (the
      "Lender").

            

    

     

    WHEREAS:

     

    
      	
              (A)

            	
              The
      Borrower has agreed to purchase the Vessel from the Builder on the terms
      of the Building Contract and intends to register the Vessel on delivery
      (scheduled to take place on or before February 2009) under the Approved
      Flag.

            

    

     

    
      	
              (B)

            	
              The
      Lender has agreed to advance to the Borrower 539,000,000 representing
      approximately eighty three per cent (83%) of the Contract Price of the
      Vessel to assist the Borrower to finance part of the Contract Price of the
      Vessel, and to re-finance certain existing indebtedness in respect of the
      Vessel in four Drawings.

            

    

     

    IT IS AGREED as
follows:

     

    
      	
              1

            	
              Definitions
      and Interpretation

            

    

     

    
      	
               
      

            	
              1.1

            	
              In
      this Agreement:

            

    

     

    "Accounting Information" means
the financial statements and information to be provided by the Borrower and the
Guarantor to the Lender in accordance with Clause 12.1.1.

     

    "Administration" has the
meaning given to it in paragraph 1.1.3 of the ISM Code.

     

    "Annex VI" means Annex VI
(Regulations for the Prevention of Air Pollution from Ships) to the
International Convention for the Prevention of Pollution from Ships 1973 (as
modified in 1978 and 1997).

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    "Approved Flag" means the flag
of Greece or Malta or Liberia or Panama or any other flag acceptable to the
Lender in its discretion.

     

    "Assignments" means the deed
or deeds of assignment of the Insurances, Earnings, and Requisition Compensation
from the Borrower referred to in Clause 10.1.4 (Security
Documents).

     

    "Availability Termination Date"
means 30 April 2009 or such later date as the Lender may in its
discretion agree.

     

    "Bareboat Charter" means the
bareboat charter dated 8 April 2008 on the terms and subject to the conditions
of which the Borrower will bareboat charter the Vessel to the Bareboat
Charterer, for a duration of ten (10) years at a minimum net daily rate of hire
of fourteen thousand five hundred and fifty Dollars ($14,550).

     

    "Bareboat Charterer" means
Daelim or any of its one hundred per cent (100%) owned subsidiaries which is
guaranteed by Daelim.

     

    "Break Costs" means all sums
payable by the Borrower from time to time under Clause 8.3 (Break Costs).

     

    "Builder" means SPP Plant
& Shipbuilding Co. Ltd., a company incorporated under the laws of the
Republic of South Korea with its registered office at 16-1 Block, 2nd Jin-Sa
Industrial Complex, Seon Jin-Ri, Young Hyeon-Myeon, Sa Cheon-City, Gyeong Sang
Nam-Do, Korea.

     

    "Building Contract" means the
contract dated 6 December 2006, as same has been amended and/or substituted from
time to time, on the terms and subject to the conditions of which the Builder
has agreed to construct the Vessel for, and deliver the Vessel to, the
Borrower.

     

    "Building Contract Assignment"
means the deed of assignment of the Building Contract and the Refund
Guarantee referred to in Clause 10.1.1 (Security
Documents).

     

    "Business Day" means a day
(other than a Saturday or Sunday) on which banks are open for general business
in New York, Athens, London and Piraeus.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    
      "Charter Rights", means all rights and benefits accruing to the
Borrower under or arising out of the Bareboat Charter and not forming part of
the Earnings.

    

     

    "Compliance Certificate" means
a certificate substantially in the form set out in Schedule 4 (Form of Compliance
Certificate).

     

    "Consolidated Indebtedness"
means, in respect of the relevant financial period, the aggregate amount
of Financial Indebtedness (including current maturities) due by the members of
the Group (other than any such Financial Indebtedness owing by any member of the
Group to another member of the Group) as shown in the relevant Accounting
Information.

     

    "Contract Price" means the
final price payable by the Borrower under the Building Contract for the Vessel
in the amount of forty seven million two hundred and thirty thousand Dollars
($47,230,000).

     

    

    "Currency of Account" means,
in relation to any payment to be made to the Lender under a Finance Document,
the currency in which that payment is required to be made by the teiIlls of that
Finance Document.

     

    "Daelim" means Daelim H&L
Co., Ltd a company incorporated under the laws of the Republic of South Korea
with its registered office at I 1 th Floor, The Korea Chamber Of Commerce &
Industry Building #45, 4-Ga, Namdaemun-Ro, Jung-Ku, Seoul, Korea
100-743.

     

    "Deed of Covenants" means the
deed of covenants referred to in Clause 10.1.3 (Security
Documents).

     

    "Deed of Release" means the
deed of to be executed by RBS in favour of the Borrower in form and substance
acceptable to the Lender.

     

    "Default" means an Event of
Default or any event or circumstance specified in Clause 13.1 (Events of Default) which
would (with the expiry of a grace period, the giving of notice, the making of
any determination under the Finance Documents or any combination of any of the
foregoing) be an Event of Default.

     

    "Delivery Date" means the date
of actual delivery of the Vessel to the Borrower by the Builder under the
Building Contract.

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    
       

      "DOC" means, in relation to
the ISM Company, a valid Document of Compliance issued for the ISM Company by
the Administration under paragraph 13.2 of the ISM Code.

       

    

    "Dollars" and "$" each means
available and freely transferable and convertible funds in lawful currency of
the United States of America.

     

    "Drawdown Date" means the date
on which the relevant Drawing is advanced under Clause 4 (Advance).

     

    "Drawdown Notice" means a
notice substantially in the form set out in Schedule 2 (Form of Drawdown
Notice).

     

    "Drawing" means any part of
the Loan advanced or to be advanced pursuant to a Drawdown Notice and "Drawings" means more than one
of them.

     

    "Earnings" means all hires,
freights, pool income and other sums payable to or for the account of the
Borrower in respect of the Vessel including (without limitation) all
remuneration for salvage and towage services, demurrage and detention moneys,
contributions in general average, compensation in respect of any requisition for
hire, and damages and other payments (whether awarded by any court or arbitral
tribunal or by agreement or otherwise) for breach, termination or variation of
any contract for the operation, employment or use of the Vessel.

     

    "Earnings Account" means a
bank account to be opened in the name of the Borrower with the Lender and
designated "Lichtenstein Shipping Company Limited -Earnings
Account".

     

    "Encumbrance" means a
mortgage, charge, assignment, pledge, lien, or other security interest securing
any obligation of any person or any other agreement or arrangement having a
similar effect.

     

    "Equity Portion" means that
amount of the Contract Price payable or paid by the Borrower to the Builder
pursuant to the Building Contract and not forming part of the Loan.

    

    "Event of Default" means any
of the events or circumstances set out in Clause 13.I (Events of
Default).

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    
       

      "Facility Period" means the
period beginning on the date of this Agreement and ending on the date when the
whole of the Indebtedness has been paid in full and the Security Parties have
ceased to be under any further actual or contingent liability to the Lender
under or in connection with the Finance Documents.

       

    

    "Finance Documents" means this
Agreement, the Security Documents and any other document designated as such by
the Lender and the Borrower and "Finance Document" means any
one of them.

     

    "Financial Indebtedness" means
any obligation for the payment or repayment of money, whether present or future,
actual or contingent, in respect of:

     

    
      	
               
      

            	
              (a)

            	
              moneys
      borrowed;

            

    

     

    
      	
               
      

            	
              (b)

            	
              any
      acceptance credit;

            

    

     

    
      	
               
      

            	
              (c)

            	
              any
      bond, note, debenture, loan stock or similar
  instrument;

            

    

     

    
      	
               
      

            	
              (d)

            	
              any
      finance or capital lease;

            

    

     

    
      	
               
      

            	
              (e)

            	
              receivables
      sold or discounted (other than on a non-recourse
  basis);

            

    

     

    
      	
               
      

            	
              (f)

            	
              deferred
      payments for assets or services;

            

    

     

    
      	
               
      

            	
              (g)

            	
              any
      derivative transaction protecting against or benefiting from fluctuations
      in any rate or price (and, when calculating the value of any derivative
      transaction, only the marked to market value shall be taken into
      account);

            

    

     

    
      
        	
                 
      

              	
                (h)

              	
                any
      amount raised under any other transaction (including any forward sale or
      purchase agreement) having the commercial effect of a
      borrowing;

              

         

        	 	(i)	any
      counter-indemnity obligation in respect of a guarantee, indemnity, bond,
      standby or documentary letter of credit or any other instrument issued by
      a bank or financial institution; and

         

        	 	(j)	the
      amount of any liability in respect of any guarantee or indemnity for any
      of the items referred to in paragraphs (a) to (i)
  above.

      

    

     

            "GAAP" means generally accepted
accounting principles in the United States of America.

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    "Group" means the Guarantor
and its Subsidiaries (whether direct or indirect and including, but not limited
to, the Borrower) from time to time during the Facility Period and "member of the Group" shall be
construed accordingly.

     

    "Guarantee" means the
guarantee and indemnity referred to in Clause 10.1.2 (Security
Documents).

     

    "Guarantor" means Top Ships
Inc. a company incorporated under the laws of the Marshall Islands, having its
registered office at the Trust Company Complex, Ajeltake Road, Ajeltake Islands,
Majuro, Marshall Islands MH96960 and/or (where the context permits) any other
person who shall at any time during the Facility Period give to the Lender a
guarantee and/or indemnity for the repayment of all or part of the
Indebtedness.

     

    "IAPPC" means a valid
international air pollution prevention certificate for the Vessel issued under
Annex VI.

     

    "Indebtedness" means the
aggregate from time to time of: the amount of the Loan outstanding; all accrued
and unpaid interest on the Loan; and all other sums of any nature (together with
all accrued and unpaid interest on any of those sums) payable to the Lender
under all or any of the Finance Documents.

     

    "Insurances" means all
policies and contracts of insurance (including all entries in protection and
indemnity or war risks associations) which are from time to time taken out or
entered into in respect of or in connection with the Vessel or her increased
value or the Earnings and (where the context permits) all benefits under such
contracts and policies, including all claims of any nature and returns of
premium.

     

    "Interest Payment Date" means
each date for the payment of interest in accordance with Clause 7.8 (Accrual and payment of
interest).

     

    "Interest Period" means each
period for the determination and payment of interest selected by the Borrower or
agreed or selected by the Lender pursuant to Clause 7 (Interest).

     

    "ISM Code" means the
International Management Code for the Safe Operation of Ships and for Pollution
Prevention.

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    "ISM Company" means, at any
given time, the company responsible for the Vessel's compliance with the ISM
Code under paragraph 1.1.2 of the ISM Code.

     

    "ISPS Code" means the
International Ship and Port Facility Security Code.

     

    "ISPS Company" means, at any
given time, the company responsible for the Vessel's compliance with the ISPS
Code.

     

    "ISSC" means a valid international ship
security certificate for the Vessel issued under the ISPS Code.

     

    "LIBOR" means:

     

    
      	
               
      

            	
              (a)

            	
              the
      applicable Screen Rate; or

            

    

     

    
      	
               
      

            	
              (b)

            	
              (if
      no Screen Rate is available for any Interest Period) the arithmetic mean
      of the rates (rounded upwards to the nearest whole multiple of
      one-sixteenth of one per centum) quoted to the Lender in the London
      interbank market,

            

    

     

    at 11.00
a.m. two (2) Business Days before the first day of the relevant Interest Period
for the offering of deposits in Dollars in an amount comparable to the Loan (or
any relevant part of the Loan) and for a period comparable to the relevant
Interest Period.

     

    "Loan" means the aggregate
amount advanced or to be advanced by the Lender to the Borrower under Clause 4
(Advance) or, where the
context permits, the amount advanced and for the time being
outstanding.

     

    "Loan Acknowledgement Declaration"
means a declaration in the form set-out in Schedule 4.

     

    "Management Agreement" means
the agreement(s) for the commercial and/or technical management of the Vessel
between the Borrower and the Managers.

     

    "Managers" means Top Tanker
Management Inc., a company organised and existing under the laws of the Republic
of Marshall Islands, having its registered office at Trust Company Complex,
Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands with an office in
Maroussi (1 Vas. Sofias and Meg. Alexandrou
Street) Attiki, Greece or such other commercial and/or technical managers of the
Vessel nominated by the Borrower as the Lender may approve.

    

    
      
        
           

        

        
          7

          
            

          

        

        
           

        

      

    

             "Margin"
means one point sixty five per cent (1.65%) per annum.

     

    "Market Value" means such the
market value of the Vessel, to be conclusively determined, at least once during
each calendar year or from time to time, as the Lender may reasonably request,
by an international, reputable, independent and first class firm of shipbrokers
appointed by the Lender and reporting to the Lender, at the expense of the
Borrower, on the basis of a charter-free sale for prompt delivery for cash at
arm's length on normal commercial terms as between a willing seller and a
willing buyer.

     

    "Maximum Loan Amount" means an
aggregate amount not exceeding thirty nine million Dollars
($39,000,000).

     

    "Minimum Equity" means, in
respect of the relevant financial period, "total assets", as shown in the
relevant Accounting Information, less the Consolidated
Indebtedness.

     

    "Minimum Liquidity" means, in
respect of the relevant financial period, "cash" and "cash equivalents", which
are free from any Encumbrances, as shown in the relevant Accounting
Information.

     

    "Minimum Adjusted Net Worth"
means, in respect of the relevant financial period, the Group's "total
assets" as shown in the relevant Accounting Information adjusted to "fair market
value" (on a consolidated basis) of the Group, as shown in the relevant
Accounting Information, excluding "current and long
term debt obligations" as shown in the relevant Accounting
Information.

     

    "Mortgage" means the preferred
or statutory mortgage referred to in Clause 10.1.3 (Security Documents) together
with the Deed of Covenants (if applicable).

     

    "Original Financial Statements"
means the audited financial statements of the Borrower and the Guarantor
for the financial year ended 31 December 2007.

     

    "RBS" means The Royal Bank of Scotland plc,
whose registered office is at 36 St. Andrew Square, Edinburgh EH2 2YB, Scotland
acting through its branch at the Shipping Business Centre, 5-10 Great Tower
Street, London EC3P 3HX, England

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    "RBS Agreement" means the loan
agreement dated 1st November 2005 as same has been amended from time to time,
entered into between RBS and the Borrower for the purposes of financing part of
the Contract Price.

     

    "RBS Security Documents" means
any documents which may at any time be executed by a Security Party as security
for the payment of all or any part of any indebtedness under the RBS
Agreement.

     

    "Refund Guarantees" means any
refund guarantee issued or to be issued by the Refund Guarantor in favour of the
Borrower pursuant to the Building Contract and "Refund Guarantee" means any
one of them.

     

    "Refund Guarantor" means Woori
Bank, Anjeong Industrial Complex Branch, of 1585-1 Hwang-ri Gwangdo-myeon
Tongyeong-si Kyeongsangnam-do 650-827, Korea.

    
"Relevant Documents" means the
Finance Documents, the Building Contract, the Refund Guarantee, the Bareboat
Charter, the Management Agreement and the Managers' confirmation specified in
Part I of Schedule 1 (Conditions
precedent).

     

    "Repayment Date" means the
date for payment of any Repayment Instalment in accordance with Clause 5.1 (Repayment of
Loan).

     

    "Repayment Instalment" means
any instalment of the Loan to be repaid by the Borrower under Clause 5.1 (Repayment of
Loan).

     

    "Requisition Compensation"
means all compensation or other money which may from time to time be
payable to the Borrower and/or the Bareboat Charterer as a result of the Vessel
being requisitioned for title or in any other way compulsorily acquired (other
than by way of requisition for hire).

     

    "Screen Rate" means in
relation to LIBOR, the British Bankers' Association Interest Settlement Rate for
the relevant currency (rounded upwards to the nearest whole multiple of
one-sixteenth of one per centum) and period displayed on the appropriate page of
the Reuters screen. If the agreed page is replaced or the service ceases to be
available, the Lender may specify another page or service displaying the
appropriate rate after consultation with the Borrower.

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    "Security Documents" means the
Building Contract Assignment, the Tripartite Deed, the Guarantee, the Mortgage
and the Deed of Covenants, the Assignments or (where the context permits) any
one or more of them and any other agreement or document which may at any time be
executed by any person as
security for the payment of all or any part of the Indebtedness and "Security Document" means any
one of them.

     

    "Security Parties" means the
Borrower, the Guarantor and any other person who may at any time during the
Facility Period be liable for, or provide security for, all or any part of the
Indebtedness, and "Security
Party" means any one of them.

     

    "SMC" means a valid safety management
certificate issued for the Vessel by or on behalf of the Administration under
paragraph 13.7 of the ISM Code.

     

    "SMS" means a safety management system for the
Vessel developed and implemented in accordance with the ISM Code.

     

    "Subsidiaries" means any
company or entity directly or indirectly controlled by such person, and for this
purpose "control" means either the ownership of more than fifty per cent (50%)
of the voting share capital (or equivalent rights of ownership) of such company
or entity or the power to direct its policies and management, whether by
contract or otherwise and "Subsidiary" means any one of
them.

     

    "Tax" means any tax, levy, impost, duty or other
charge or withholding of a similar nature (including any penalty or interest
payable in connection with any failure to pay or any delay in paying any of the
same).

     

    "Total Loss"
means:

     

    
      	
               
      

            	
              (a)

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

            

    

     

    
      	
               
      

            	
              (b)

            	
              the
      requisition for title or compulsory acquisition of the Vessel by any
      government or other competent authority (other than by way of requisition
      for hire); or

            

    

     

    
      	
               
      

            	
              (c)

            	
              the
      capture, seizure, arrest, detention or confiscation of the Vessel by any
      government or by persons acting or purporting to act on behalf of any
      government, unless the Vessel is released and returned to the possession
      of 

            

    

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    
       

      
        	
                 
      

              	
                 

              	
                the
      Borrower or the Bareboat Charterer within one month after the capture,
      seizure, arrest, detention or confiscation in
  question.

              

      

    

     

    "Tripartite Deed" means the
deed of assignment of Insurances, Earnings, Charter Rights and Requisition
Compensation in respect of the Charter referred to in Clause 10.1.5 (Security Documents).

     

    "Vessel" means the product
tanker of approximately 50,000 dwt and everything now or in the future belonging
to her on board and ashore, currently under construction by the Builder with the
Builder's hull number S1026 for the Borrower on the terms of the Building
Contract and, on delivery to the Borrower, intended to be registered under an
Approved Flag.

     

    
      	
               
      

            	
              1.2

            	
              In
      this Agreement:

            

    

     

    
      	
               
      

            	
              1.2.1

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

            

    

     

    
      	
               
      

            	
              1.2.2

            	
              words
      denoting persons include corporations, partnerships, associations of
      persons (whether incorporated or not) or governmental or
      quasi-governmental bodies or authorities and vice
  versa;

            

    

     

    
      	
               
      

            	
              1.2.3

            	
              references
      to Recitals, Clauses and Schedules are references to recitals, clauses and
      schedules to or of this Agreement;

            

    

     

    
      	
               
      

            	
              1.2.4

            	
              references
      to this Agreement include the Recitals and the
  Schedules;

            

    

     

    
      	
               
      

            	
              1.2.5

            	
              the
      headings and contents page(s) are for the purpose of reference only, have
      no legal or other significance, and shall be ignored in the interpretation
      of this Agreement;

            

    

     

    
      	
               
      

            	
              1.2.6

            	
              references
      to any document (including, without limitation, to all or any of the
      Relevant Documents) are, unless the context otherwise requires, references
      to that document as amended, supplemented, novated or replaced from time
      to time;

            

    

     

    
      	
               
      

            	
              1.2.7

            	
              references
      to statutes or provisions of statutes are references to those statutes, or
      those provisions, as from time to time amended, replaced or
      re-enacted;

            

    

     

    
      	
               
      

            	
              1.2.8

            	
              references
      to the Lender include its successors, transferees and assignees;
      and

            

    

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    
      	
               
      

            	
              1.2.9

            	
              a
      time of day (unless otherwise specified) is a reference to London
      time.

            

    

     

    
      	
               
      

            	
              1.3

            	
              Offer
    letter

            

    

     

    This
Agreement supersedes the terms and conditions contained in any correspondence
relating to the subject matter of this Agreement exchanged between the Lender
and the Borrower or their representatives prior to the date of this
Agreement.

     

    
      	
              2

            	
              The
      Loan and its Purpose

            

    

     

    
      	
               
      

            	
              2.1

            	
              Amount Subject to the
      terms of this Agreement, the Lender agrees to make available to the
      Borrower a term loan not exceeding the Maximum Loan Amount.

            

    

     

    
      	
               
      

            	
              2.2

            	
              Purpose The Borrower
      shall apply the Loan for the purposes referred to in Recital
      (B).

            

    

     

    
      	
               
      

            	
              2.3

            	
              Monitoring The Lender
      shall not be bound to monitor or verify the application of any amount
      borrowed under this Agreement.

            

    

     

    
      	
              3

            	
              Conditions
      of Utilisation

            

    

     

    
      	
               
      

            	
              3.1

            	
              Conditions precedent The
      Borrower is not entitled to have any Drawing advanced unless the Lender
      has received all of the documents and other evidence listed in Part I of
      Schedule 1 (Conditions
      precedent).

            

    

     

    
      	
               
      

            	
              3.2

            	
              Further conditions precedent
      The Lender will only be obliged to advance a Drawing if on the date
      of the Drawdown Notice and on the proposed Drawdown
  Date:

            

    

     

    
      	
               
      

            	
              3.2.1

            	
              no Default is continuing or would
      result from the advance of that Drawing; 

                and

              

            

    

     

    
      	
               
      

            	
              3.2.2

            	
              the
      representations made by the Borrower under Clause 11 (Representations) are
      true in all material respects.

            

    

     

    
      	
               
      

            	
              3.3

            	
              Drawing limit The Lender
      will only be obliged to advance a Drawing
if:

            

    

     

    
      	
               
      

            	
              3.3.1

            	
              that
      Drawing will not increase the Loan to a sum in excess of the Maximum Loan
      Amount;

            

    

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    
      	
               
      

            	
              3.3.2

            	
              the
      proposed Drawing is either applied towards re-financing any amount due
      under the RBS Agreement (in the case of the first Drawing to occur) or
      coincides with the due date for payment by the Borrower of
      an instalment of the Contract Price of the Vessel and that Drawing will be
      applied in payment of that instalment (as applicable);
      and

            

    

    
      
      

    

     

    
      	
               
      

            	
              3.3.3

            	
              that
      Drawing will be applied in or towards refinancing (in the case of the
      first and second instalment) or payment of one of the following
      instalments of the Contract Price of the Vessel under the Building
      Contract and shall amount to a maximum of the sum set out below opposite
      the relevant instalment under the column "Drawing" and the
      Borrower shall pay at least three (3) Business Days prior to the Drawdown
      Date of that Drawing (other than in the case of the first Drawing to
      occur) the Equity Portion in the sum set out below opposite the relevant
      instalment under the column "Equity
      Portion":

            

    

     

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      	
                                              Instalment

                                            	
                                              Drawing

                                            	
                                              Equity
      Portion

                                            	
                                              Total

                                            
	
                                              Refinancing
      offirst and second

                                              instalment
      (already financed by RBS)

                                               

                                              (upon
      execution of this agreement and delivery of the documents referred to in
      Clause 3.1)

                                               

                                            	
                                              $
      10,626,750

                                            	 
      	 
      
	
                                              third
      instalment (upon keel laying)

                                               

                                              (on
      or about 18 August 2008)

                                            	
                                              $7,084,500

                                            	
                                              $2,361,500

                                            	
                                              $9,446,000

                                            
	
                                              fourth
      instalment (upon launching)

                                               

                                              (on
      or about 5 November 2008)

                                               

                                            	
                                              $7,084,500

                                            	
                                              $2,361,500

                                            	
                                              $9,446,000

                                            
	
                                              fifth
      instalment

                                              (upon
      delivery)

                                               

                                              (on
      or about 17 

                                            	
                                              $14,204,250

                                            	
                                              -

                                            	
                                              $14,204,250

                                            

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

    
      
        
          
            
              	 	 	 	 
	
                      
                        February 2009)

                      

                    	
                    	
                    	
                       

                    

            

          

        

      

    

    
 

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    

    
      	
               
      

            	
              3.4

            	
              Conditions subsequent
      The Borrower undertakes to deliver or to cause to be delivered to
      the Lender on, or as soon as practicable after, the relevant Drawdown Date
      the additional documents and other evidence listed in Part II of Schedule
      I (Conditions
      subsequent).

            

    

     

    
      	
               
      

            	
              3.5

            	
              Delivery conditions precedent
      Whether or not a Drawing is advanced on the Delivery Date, the
      Borrower undertakes to deliver or to cause to be delivered to the Lender
      on the Delivery Date the additional documents and other evidence listed in
      Part III of Schedule I (Delivery conditions
      precedent).

            

    

     

    
      	
               
      

            	
              3.6

            	
              Delivery conditions subsequent
      Whether or not a Drawing is advanced on the Delivery Date, the
      Borrower undertakes to deliver or to cause to be delivered to the Lender
      on, or as soon as practicable after, the Delivery Date the additional
      documents and other evidence listed in Part IV of Schedule I (Delivery conditions
      subsequent).

            

    

     

    
      	
               
      

            	
              3.7

            	
              No Waiver If the Lender
      in its sole discretion agrees to advance a Drawing to the Borrower before
      all of the documents and evidence required by Clause 3.1 (Conditions precedent)
      and/or Clause 3.5 (Delivery conditions
      precedent) have been delivered to or to the order of the Lender,
      the Borrower undertakes to deliver all outstanding documents and evidence
      to or to the order of the Lender no later than thirty (30) days after the
      relevant Drawdown Date or such other date specified by the
      Lender.

            

    

     

    The
advance of a Drawing under this Clause 3.7 shall not be taken as a waiver of the
Lender's right to require production of all the documents and evidence required
by Clauses 3.1 (Conditions
precedent) and 3.5 (Delivery conditions precedent).

     

    
      	
               
      

            	
              3.8

            	
              Form and content All
      documents and evidence delivered to the Lender under this Clause 3
      shall:

            

    

     

    
      	
               
      

            	
              3.8.1

            	
              be
      in form and substance acceptable to the Lender;
  and

            

    

     

    
      	
               
      

            	
              3.8.2

            	
              if
      required by the Lender, be certified, notarised, legalised or attested in
      a manner acceptable to the Lender.

            

    

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    
      	
              4

            	
              Advance

            

    

     

    The
Borrower may request a Drawing to be advanced in one amount on any Business Day
prior to the Availability Termination Date by delivering to the Lender a duly
completed Drawdown Notice not more than ten (10) and not fewer than two (2)
Business Days before the proposed Drawdown Date.

     

    
      	
              5

            	
              Repayment

            

    

     

    
      	
               
      

            	
              5.1

            	
              Repayment of Loan The
      Borrower agrees to repay the Loan to the Lender by forty consecutive
      quarterly instalments, the first thirty-nine such repayment instalments
      (1st-39th), each in the sum of six hundred thousand Dollars ($600,000),
      and the fortieth and last such repayment instalment in the sum of fifteen
      million six hundred thousand Dollars ($15,600,000) (consisting of an
      instalment of six hundred thousand Dollars ($600,000) and a balloon
      payment of fifteen million Dollars ($15,000,000) (the "Balloon Payment")), the first instalment falling
      due on the date which is three calendar months after the earlier to occur
      of the Delivery Date and the Availability Termination Date and subsequent
      instalments falling due at consecutive intervals of three calendar months
      thereafter.

            

    

     

    
      	
               
      

            	
              5.2

            	
              Reduction of Repayment
      Instalments If the aggregate amount advanced to the
      Borrower is less than the Maximum Loan Amount, the amount of each
      Repayment Instalment shall be reduced pro rata to the amount actually
      advanced.

            

    

     

    
      	
               
      

            	
              5.3

            	
              Reborrowing The Borrower
      may not reborrow any part of the Loan which is repaid or
      prepaid.

            

    

     

    
      	
              6

            	
              Prepayment

            

    

     

    
      	
               
      

            	
              6.1

            	
              Illegality If it becomes
      unlawful in any jurisdiction for the Lender to perform any of its
      obligations as contemplated by this Agreement or to fund or maintain the
      Loan:

            

    

     

    
      	
               
      

            	
              6.1.1

            	
              the
      Lender shall promptly notify the Borrower of that event;
    and

            

    

     

    
      	
               
      

            	
              6.1.2

            	
              the
      Borrower shall repay the Loan (to the extent already advanced) on the last
      day of the current Interest Period or, if earlier, the date specified by
      the Lender in the notice delivered to the Borrower (being no earlier than
      the last day of any applicable grace period permitted by
    law).

            

    

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

    
      	
               
      

            	
              6.2

            	
              Voluntary prepayment of Loan
      The Borrower may prepay the whole or any part of the Loan (but, if
      in part, being an amount that reduces the Loan by a minimum amount of five
      hundred thousand Dollars ($500,000) or an integral multiple thereof)
      subject as follows:

            

    

     

    
      	
               
      

            	
              6.2.1

            	
              it
      gives the Lender not less than fifteen (15) Business Days' (or such
      shorter period as the Lender may agree) prior
  notice;

            

    

     

    
      	
               
      

            	
              6.2.2

            	
              no
      prepayment may be made until after the Availability Termination Date;
      and

            

    

     

    
      	
               
      

            	
              6.2.3

            	
              any
      prepayment under this Clause 6.2 shall satisfy the obligations under
      Clause 5.1 (Repayment of
      Loan) in inverse order of
  maturity.

            

    

     

    
      	
               
      

            	
              6.3

            	
              Mandatory prepayment on sale or
      Total Loss If the Vessel is sold by the Borrower or becomes a Total
      Loss, the Borrower shall, simultaneously with any such sale or within one
      hundred and fifty (150) days after any such Total Loss, prepay the whole
      of the Loan.

            

    

     

    
      	
               
      

            	
              6.4

            	
              Restrictions Any notice
      of prepayment given under this Clause 6 shall be irrevocable and, unless a
      contrary indication appears in this Agreement, shall specify the date or
      dates upon which the relevant prepayment is to be made and the amount of
      that prepayment.

            

    

     

    Any
prepayment under this Agreement shall be made together with accrued interest on
the amount prepaid and, subject to any Break Costs, without premium or
penalty.

     

    
      	
              7

            	
              Interest

            

    

     

    
      	
               
      

            	
              7.1

            	
              Interest Periods The
      period during which the Loan shall be outstanding under this Agreement
      shall be divided into consecutive Interest Periods of one, three or six
      months' duration or longer duration, as selected by the Borrower by
      written notice to the Lender not later than 11.00 a.m. on the second
      Business Day before the beginning of the Interest Period in question, or
      such other duration as may be agreed by the Lender and subject to market
      availability.

            

    

     

    
      	
               
      

            	
              7.2

            	
              Beginning and end of Interest
      Periods Each Interest Period shall start on the first Drawdown Date
      or (if a Drawing is already advanced) on the last day of the
    

            

    

     

    

    
      
        
           

        

        
          16

          
            

          

        

        
           

        

      

    

     

    
       

      
        	
                 
      

              	
                 

              	
                preceding Interest Period and end on the date which numerically
      corresponds to the first Drawdown Date or the last day of the preceding
      Interest Period in the relevant calendar month except that, if there is no
      numerically corresponding date in that calendar month, the Interest Period
      shall
      end on the last Business Day in that
      month.

              

      

    

     

    
      	
               
      

            	
              7.3

            	
              Second and subsequent Drawings
      If the second or any subsequent Drawing is made otherwise than on
      the first day of an Interest Period for the balance of the Loan,
      there shall be a separate initial Interest Period for that Drawing
      commencing on its Drawdown Date and expiring on the final date of the then
      current Interest Period for the balance of the
  Loan.

            

    

     

    
      	
               
      

            	
              7.4

            	
              Interest Periods to meet
      Repayment Dates If an Interest Period will expire after the next
      Repayment Date, there shall be a separate Interest Period for a part of
      the Loan equal to the Repayment Instalment due on that next Repayment Date
      and that separate Interest Period shall expire on that next Repayment
      Date.

            

    

     

    
      	
               
      

            	
              7.5

            	
              Non-Business Days If an
      Interest Period would otherwise end on a day which is not a Business Day,
      that Interest Period will instead end on the next Business Day in that
      calendar month (if there is one) or the preceding Business Day (if there
      is not).

            

    

     

    
      	
               
      

            	
              7.6

            	
              Interest rate During
      each Interest Period interest shall accrue on the Loan at the rate
      determined by the Lender to be the aggregate of (a) the Margin and (b)
      LIBOR .

            

    

     

    
      	
               
      

            	
              7.7

            	
              Failure
      to select Interest Period If the Borrower at any time fails to select or
      agree an Interest Period in accordance with Clause 7.1 (Interest Periods), the
      interest rate applicable shall be the rate determined by the Lender in
      accordance with Clause 7.6 (Interest rate) for an
      Interest Period of such duration (not exceeding three months) as the
      Lender may select.

            

    

     

    
      	
               
      

            	
              7.8

            	
              Accrual and payment of interest
      Interest shall accrue from day to day, shall be
      calculated on the basis of a 360 day year and the actual number of days
      elapsed (or, in any circumstance where market practice differs, in
      accordance with the prevailing market practice) and shall be paid by the
      Borrower to the Lender on the last day of each Interest Period and, if the
      Interest Period is longer than three months, on the dates falling at three
      monthly intervals after the first day of that Interest
      Period.

            

    

     

    
       

      
        	
                 
      

              	
                7.9

              	
                Default interest If the Borrower fails to pay any amount
      payable by it under a Finance Document on its due date, interest shall
      accrue on the overdue amount
from

              

      

    

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

    
      	
               
      

            	
               

            	
               the
      due date up to the date of actual payment (both before and after judgment)
      at a rate which is two per cent (2%) higher than the rate which would have
      been payable if the overdue amount had, during the period of non-payment,
      constituted the Loan in the currency of the overdue amount for successive
      Interest Periods, each selected by the Lender (acting reasonably). Any
      interest accruing under this Clause 7.9 shall be immediately payable by
      the Borrower on demand by the Lender. If unpaid, any such interest will be
      compounded with the overdue amount at the end of each Interest Period
      applicable to that overdue amount but will remain immediately due and
      payable.

            

    

     

    
      	
               
      

            	
              7.10

            	
              Changes in market circumstances
      If at any time the Lender determines (which determination shall be
      final and conclusive and binding on the Borrower) that in the London
      interbank market either adequate and fair means do not exist for
      determining the rate of interest on the Loan for any Interest Period or
      the cost to it of obtaining matching deposits for any Interest Period
      would be in excess of LIBOR:

            

    

     

    
      	
               
      

            	
              7.10.1

            	
              the
      Lender shall give notice to the Borrower of the occurrence of such event;
      and

            

    

     

    
      	
               
      

            	
              7.10.2

            	
              the
      rate of interest on the Loan for that Interest Period shall be the rate
      per annum which is the sum of:

            

    

     

    
      	
               
      

            	
              (a)

            	
              the
      Margin; and

            

    

     

    
      	
               
      

            	
              (b)

            	
              the
      rate which expresses as a percentage rate per annum the cost to the Lender
      of funding the Loan from whatever source it may reasonably
      select,

            

    

     

    PROVIDED
THAT if the resulting rate of interest is not acceptable to the
Borrower:

     

    
      	
               
      

            	
              7.10.3

            	
              the
      Lender will negotiate with the Borrower in good faith with a view to
      modifying this Agreement to provide a substitute basis for determining the
      rate of interest which is financially a substantial equivalent to the
      basis provided for in this
Agreement;

            

    

     

    
      	
               
      

            	
              7.10.4

            	
              any
      substitute basis agreed pursuant to Clause 7.10.3 shall be binding on the
      parties to this Agreement; and

            

    

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

    
      	
               
      

            	
              7.10.5

            	
              if,
      within thirty (30) days of the giving of the notice referred to in Clause
      7.10.1, the Borrower and the Lender fail to agree in writing on a
      substitute basis for determining the rate of interest, the Borrower will
      immediately prepay the Loan, together with any Break
  Costs.

            

    

     

    
      	
               
      

            	
              7.11

            	
              Determinations conclusive
      The Lender shall promptly notify the Borrower of the determination
      of a rate of interest under this Clause 7 and each such determination
      shall (save in the case of manifest error) be final and
      conclusive.

            

    

     

    
      	
              8

            	
              Indemnities

            

    

     

    
      
        	 	
                8.1

              	
                Transaction
      expenses The Borrower will, within
      fourteen (14) days of the Lender's written demand, pay the Lender the
      amount of all costs and expenses (including legal fees and Value Added Tax
      or any similar or replacement tax if applicable) incurred by the Lender in
      connection with:

              

      

    

     

    
      	
               
      

            	
              8.1.1

            	
              the
      negotiation, preparation, printing, execution and registration of the
      Finance Documents (whether or not any Finance Document is actually
      executed or registered and whether or not all or any part of the Loan is
      advanced);

            

    

     

    
      	
               
      

            	
              8.1.2

            	
              any
      amendment, addendum or supplement to any Finance Document (whether or not
      completed); and

            

    

     

    
      	
               
      

            	
              8.1.3

            	
              any
      other document which may at any time be required by the Lender to give
      effect to any Finance Document or which the Lender is entitled to call for
      or obtain under any Finance Document (including, without limitation, any
      valuation of the Vessel).

            

    

     

    
      	
               
      

            	
              8.2

            	
              Funding costs The
      Borrower shall indemnify the Lender on the Lender's written demand against
      all losses and costs incurred or sustained by the Lender if, for any
      reason, a Drawing is not advanced to the Borrower after the relevant
      Drawdown Notice has been given to the Lender, or is advanced on a date
      other than that requested in the Drawdown Notice (unless, in either case,
      as a result of any default by the
Lender).

            

    

     

    
      	
               
      

            	
              8.3

            	
              Break Costs The Borrower
      shall indemnify the Lender on the Lender's written demand against all
      costs, losses, premiums or penalties incurred by the Lender as a
      

            

    

     

    

    
      
        
           

        

        
          19

          
            

          

        

        
           

        

      

    

    

    
      	
               
      

            	
              result
      of its receiving any prepayment of all or any part of the Loan (whether
      pursuant to Clause 6 (Prepayment) or
      otherwise) on a day other than the last day of an Interest Period for the
      Loan or relevant part of the Loan, or any other payment under or in
      relation to the Finance Documents on a day other than the due date for
      payment of the sum in question, including (without limitation) any losses
      or costs incurred in liquidating or re-employing deposits from third
      parties acquired to effect or maintain all or any part of the Loan, and
      any liabilities, expenses or losses incurred by the Lender in terminating
      or reversing, or otherwise in connection with, any interest rate and/or
      currency swap, transaction or arrangement entered into by the Lender to
      hedge any exposure arising under this Agreement, or in terminating or
      reversing, or otherwise in connection with, any open position arising
      under this Agreement.

            

    

     

    
      	
               
      

            	
              8.4

            	
              Currency indemnity In
      the event of the Lender receiving or recovering any amount payable under a
      Finance Document in a currency other than the Currency of Account, and if
      the amount received or recovered is insufficient when converted into the
      Currency of Account at the date of receipt to satisfy in full the amount
      due, the Borrower shall, on the Lender's written demand, pay to the Lender
      such further amount in the Currency of Account as is sufficient to satisfy
      in full the amount due and that further amount shall be due to the Lender
      as a separate debt under this
Agreement.

            

    

     

    
      	
               
      

            	
              8.5

            	
              Increased costs (subject to
      Clause 8.6 (Exceptions
      to increased costs)) If, by reason of the
      introduction of any law, or any change in any law, or any change in the
      interpretation or administration of any law, or compliance with any
      request or requirement from any central bank or any fiscal, monetary or
      other authority occurring after the date of this Agreement (including the
      implementation or application of or compliance with the Basel II Accord or
      any other Basel II Regulation (whether such implementation, application or
                      
                compliance
      is by any central bank or any fiscal, monetary or other authority, the
      Lender or the holding company of the
  Lender)):

              

            

    

    
      
      

    

     

    
      	
               
      

            	
              8.5.1

            	
              the
      Lender (or the holding company of the Lender) shall be subject to any Tax
      with respect to payment of all or any part of the Indebtedness (other than
      Tax on overall net income); or

            

    

     

    
      	
               
      

            	
              8.5.2

            	
              the
      basis of Taxation of payments to the Lender in respect of all or any part
      of the Indebtedness shall be changed;
or

            

    

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

       

    

    
      	
               
      

            	
              8.5.3

            	
              any
      reserve requirements shall be imposed, modified or deemed applicable
      against assets held by or deposits in or for the account of or loans by
      any branch of the Lender; or

            

    

     

    
      	
               
      

            	
              8.5.4

            	
              the
      manner in which the Lender allocates capital resources to its obligations
      under this Agreement or any ratio (whether cash, capital adequacy,
      liquidity or otherwise) which the Lender is required or requested to
      maintain shall be affected; or

            

    

     

    
      	
               
      

            	
              8.5.5

            	
              there
      is imposed on the Lender (or on the holding company of the Lender) any
      other condition in relation to the Indebtedness or the Finance
      Documents;

            

    

     

    and the
result of any of the above shall be to increase the cost to the Lender (or to
the holding company of the Lender) of the Lender making or maintaining the Loan,
or to cause the Lender to suffer (in its opinion) a material reduction in the
rate of return on its overall capital below the level which it reasonably
anticipated at the date of this Agreement and which it would have been able to
achieve but for its entering into this Agreement and/or performing its
obligations under this Agreement, then, subject to Clause 8.6 (Exceptions to increased costs), the Lender
shall notify the Borrower and the Borrower shall from time to time pay to the
Lender the amount which shall compensate the Lender (or the holding company of
the Lender) for such additional cost or reduced return. A certificate signed by
an authorised signatory of the Lender setting out the amount of that payment and
the basis of its calculation shall be submitted to the Borrower and shall be
conclusive evidence of such amount save for manifest error or on any question of
law.

     

    For the
purposes of this Clause 8.5:

     

    "Basel II Accord" means the
"International Convergence of Capital Measurement and Capital Standards, a
Revised Framework" published by the Basel Committee on Banking Supervision in
June 2004 (or any amendments thereto) in the form existing on the date of this
Agreement;

     

    
      "Basel II Approach"
means, in relation to the Lender, either the Standardised Approach or the
relevant Internal Ratings Based Approach (each as defined in the Basel II
Accord) adopted by the Lender (or its holding company) for the purpose of
implementing or complying with the Basel II Accord;

       

    

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

    "Basel II Regulation" means
(a) any law or regulation implementing the Basel II Accord or (b) any Basel II
Approach adopted by the Lender; and

     

    "holding company" means, in
respect of the Lender, the company or entity (if any) within the consolidated
supervision of which the Lender is included.

     

    
      	
               
      

            	
              8.6

            	
              Exceptions to increased costs
      Clause 8.5 (Increased costs) does
      not apply to the extent any additional cost or reduced return referred to
      in that Clause is:

            

    

     

    
      	
               
      

            	
              8.6.1

            	
              compensated
      for by a payment made under Clause 8.10 (Taxes);
    or

            

    

     

    
      	
               
      

            	
              8.6.2

            	
              compensated
      for by a payment made under Clause 16.3 (Grossing-up);
      or

            

    

     

    
      	
               
      

            	
              8.6.3

            	
              attributable
      to the wilful breach by the Lender (or the holding company of the Lender)
      of any law or regulation.

            

    

     

    
      	
               
      

            	
              8.7

            	
              Events of Default The
      Borrower shall indemnify the Lender from time to time on the Lender's
      written demand against all losses, costs and liabilities incurred or
      sustained by the Lender as a consequence of any Event of
      Default.

            

    

     

    
      	
               
      

            	
              8.8

            	
              Enforcement costs The
      Borrower shall pay to the Lender on the Lender's written demand the amount
      of all costs and expenses (including legal fees) incurred by the Lender in
      connection with the enforcement of, or the preservation of any rights
      under, any Finance Document including (without limitation) any losses,
      costs and expenses which the Lender may from time to time sustain, incur
      or become liable for by reason of the Lender being mortgagee of the Vessel
      and/or a lender to the Borrower, or by reason of the Lender being deemed
      by any court or authority to be an operator or controller, or in any way
      concerned in the operation or control, of the
  Vessel.

            

    

     

    
      	
               
      

            	
              8.9

            	
              Other costs The Borrower
      shall pay to the Lender on the Lender's written demand the amount of all
      sums which the Lender may pay or become actually or contingently liable
      for on account of the Borrower in connection with the Vessel (whether
      alone or jointly or jointly and severally with any other person) including
      (without limitation) all sums which the Lender may pay or guarantees which
      it may give in respect of the Insurances, any expenses incurred by the
      Lender in connection with the maintenance or repair of the Vessel or in
      discharging any lien, bond or other claim relating in any way to the
      Vessel, and any sums which the Lender may pay or guarantees which it may
      give to procure the release of the Vessel from arrest or
      detention.

            

    

     

    

    
      
        
           

        

        
          22

          
            

          

        

        
           

        

      

    

    

    
      	
               
      

            	
               

            

    

     

    
      	
               
      

            	
              8.10

            	
              Taxes The Borrower shall
      pay all Taxes to which all or any part of the Indebtedness or any Finance
      Document may be at any time subject (other than Tax on the Lender's
      overall net income) and shall indemnify the Lender on the Lender's written
      demand against all liabilities, costs, claims and expenses resulting from
      any omission to pay or delay in paying any such
  Taxes.

            

    

     

    
      	
              9

            	
              Fees

            

    

     

    
      	
               
      

            	
              9.1

            	
              Commitment fee The
      Borrower shall pay to the Lender a fee computed at the rate of zero point
      forty per cent (0.40%) per annum on the undrawn amount of the Loan from
      time to time from 25 June 2008, until the earlier of the Drawdown Date in
      respect of the final Drawing and the Availability Termination Date. The
      accrued commitment fee is payable on the last day of each successive
      period of three months from 25 June 2008 and on the Availability
      Termination Date.

            

    

     

    
      	
               
      

            	
              9.2

            	
              Arrangement fee The
      Borrower shall pay to the Lender, on the date of this Agreement, an
      arrangement fee in the amount of two hundred and ninety two thousand five
      hundred Dollars ($292,500).

            

    

     

    
      	
              10

            	
              Security
      and Application of Moneys

            

    

     

    
      	
               
      

            	
              10.1

            	
              Security Documents As
      security for the payment of the Indebtedness, the Borrower shall execute
      and deliver to the Lender or cause to be executed and delivered to the
      Lender the following documents in such forms and containing such terms and
      conditions as the Lender shall
require:

            

    

     

    
      	
               
      

            	
              10.1.1

            	
              a
      first priority deed of assignment of the Building Contract and the Refund
      Guarantee;

            

    

     

    
      	
               
      

            	
              10.1.2

            	
              a
      guarantee and indemnity from the
Guarantor;

            

    

     

    
      	
               
      

            	
              10.1.3

            	
              a
      first preferred or statutory mortgage over the Vessel together with a
      collateral deed of covenants if
applicable;

            

    

     

    
      	
               
      

            	
              10.1.4

            	
              a
      first priority deed of assignment of the Insurances, Earnings and
      Requisition Compensation; and

            

    

     

    
      	
               
      

            	
              10.1.5

            	
              a
      first priority deed or deeds of assignment of the Insurances, Earnings,
      Bareboat Charter and Requisition Compensation of the Vessel from the
      

            

    

     

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

    
      
        	 	 	
                Borrower
      and the Bareboat Charterer, including (in the case of the Bareboat
      Charterer) an agreement whereby its interests under the Bareboat Charter
      are subordinated to the interests of the Lender under the Mortgage and an
      assignmentof any performance guarantee from Daelim (if the Bareboat
      Charterer is a one hundred per cent (100%) subsidiary of
      Daelim.

                 

              
	
                 
      

              	
                10.2

              	
                Earnings Account The
      Borrower shall maintain the Earnings Account with the Lender for the
      duration of the Facility Period free of Encumbrances and rights of set off
      other than those created by or under the Finance Documents. Interest shall
      accrue on a daily basis on any balance from time to time on the Earnings
      Account at a rate of interest determined by the Lender in its discretion
      as the rate of interest payable to its customers on deposits in the same
      currency and of similar amount and maturity, and shall be credited to the
      Earnings Account.

              

         

        	 	10.3	
                Earnings 
      The
      Borrower shall procure that all Earnings and any Requisition Compensation
      are credited to the Earnings
  Account.

              

      

    

     

    
      	
               
      

            	
              10.4

            	
              Application of Earnings
      Account  The Borrower shall procure that there is transferred
      from the Earnings Account to the
Lender:

            

    

     

    
      	
               
      

            	
              10.4.1

            	
              on
      each Repayment Date, the amount of the Repayment Instalment then due;
      and

            

    

     

    
      	
               
      

            	
              10.4.2

            	
              on
      each Interest Payment Date, the amount of interest then due,
    

            

    

     

    and the Borrower irrevocably authorises the Lender to make those
transfers.

     

    
      	
               
      

            	
              10.5

            	
              Borrower's obligations not
      affected If for any reason the amount standing to the credit of the
      Earnings Account is insufficient to pay any Repayment Instalment or to
      make any payment of interest when due, the Borrower's obligation to pay
      that Repayment Instalment or to make that payment of interest shall not be
      affected.

            

    

     

    
      	
               
      

            	
              10.6

            	
              Release of surplus Any
      amount remaining to the credit of the Earnings Account following the
      making of any transfer required by Clause 10.4 (Application of Earnings
      Account) shall (unless a Default shall have occurred and be
      continuing) be released to or to the order of the
  Borrower.

            

    

     

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

    

    
      	
               
      

            	
              10.7

            	
              Restriction on withdrawal
      During the Facility Period no sum may be withdrawn from the
      Earnings Account (except in accordance with this Clause 10.7) without the
      prior written consent of the
Lender.

            

    

     

    
      	
               
      

            	
              10.8

            	
              Relocation of Earnings Account
      At any time following the occurrence and during the continuation of
      a Default, the Lender may without the consent of the Borrower but after
      giving notice to the Borrower relocate the Earnings Account to any other
      branch of the Lender, without prejudice to the continued application of
      this Clause 10.8 and the rights of the Lender under the Finance
      Documents.

            

    

     

    
      
        	
                 
      

              	
                10.9

              	
                Application after acceleration
      From and after the giving of notice to the Borrower
      by the Lender under Clause 13.2 (Acceleration), the
      Borrower shall procure that all sums from time to time standing to the
      credit of the Earnings Account are immediately transferred to the Lender
      for application in accordance with Clause 10.10 (General application of
      moneys) and the Borrower irrevocably authorises the Lender to make
      those transfers.

              

         

        	 	10.10	General application of moneys
      The Borrower, subject to Clause 10.11 (Application of moneys on sale
      or Total Loss), irrevocably authorises the Lender to apply all sums
      which the Lender may
receive:

      

    

     

    
      	
               
      

            	
              10.10.1

            	
              pursuant
      to a sale or other disposition of the Vessel or any right, title or
      interest in the Vessel; or

            

    

     

    
      	
               
      

            	
              10.10.2

            	
              by
      way of payment of any sum in respect of the Insurances, Earnings, Charter
      Rights or Requisition Compensation;
or

            

    

     

    
      	
               
      

            	
              10.10.3

            	
              by
      way of transfer of any sum from the Earnings Account;
  or

            

    

     

    
      	
               
      

            	
              10.10.4

            	
              otherwise
      arising under or in connection with any Security Document,
  

            

    

     

    in or towards satisfaction, or by way of retention on account, of
the Indebtedness, in such manner as the Lender may determine.

     

    
      	 	10.11	
              Application of moneys on sale
      or Total Loss The Borrower irrevocably authorises the Lender to
      apply all sums which the Lender may receive pursuant to a sale by the
      Borrower of the Vessel or a Total Loss in or towards satisfaction of the
      prepayment due and payable by virtue of that sale or Total Loss under
      Clause 6.3 (Mandatory
      prepayment on sale or Total Loss), but the Borrower's obligation to
      make that  

            

       

    

    

    
      
        
           

        

        
          25

          
            

          

        

        
           

        

      

    

    
       

      
        	 	 	
                prepayment
      shall not be affected if those sums are insufficient to satisfy that
      obligation.

                 

              
	 	10.12	
                Additional security If
      at any time the aggregate of the Market Value of the Vessel and the value
      of any additional security (such value to be the face amount of the
      deposit (in the case of cash), determined conclusively by appropriate
      advisers appointed by the Lender (in the case of other charged assets),
      and determined by the Lender in its discretion (in all other cases)) for
      the time being provided to the Lender under this Clause 10.12 is less than
      one hundred and thirty per cent (130%) of the Loan the Borrower shall,
      within thirty (30) days of the Lender's request, at the Borrower's
      option:

              

      

      
         

        
          	
                   
      

                	
                  10.12.1

                	
                  pay
      to the Lender or to its nominee a cash deposit in the amount of the
      shortfall to be secured in favour of the Lender as additional security for
      the payment of the Indebtedness; or

                

        

        
           

          
            	
                     
      

                  	
                    10.12.2

                  	
                    give
      to the Lender other additional security in amount and form acceptable to
      the Lender in its discretion; or

                  

          

          
             

            
              	
                       
      

                    	
                      10.12.3

                    	
                      prepay
      the amount of the Indebtedness which will ensure that the aggregate of the
      market value of the Vessel (determined as stated above) and the value of
      any such additional security is not less than one hundred and thirty per
      cent (130%) of the Loan.

                    

            

             

          

        

      

    

    Clauses
5.3 (Reborrowing),
6.2.3 (Voluntary
prepayment of Loan) and 6.4 (Restrictions) shall apply,
mutatis mutandis, to
any prepayment made under this Clause 10.12 and the value of any additional
security provided shall be determined as stated above.

     

    
      	
              11

            	
              Representations

            

    

     

    
      	
               
      

            	
              11.1

            	
              Representations The
      Borrower makes the representations and warranties set out in this Clause
      11.1 to the Lender on the date of this
  Agreement.

            

    

     

    

    
      
        
           

        

        
          26

          
            

          

        

        
           

        

      

    

     

    
      
        	
                 
      

              	
                11.11.1

              	
                
                  Status Each Security
      Party (which is not an individual) is a corporation, duly incorporated and
      validly existing under the law of its jurisdiction of incorporation and
      has the power to own its assets and carry on its business as it is being
      conducted.

                

              

         

        
           

          
            	
                     
      

                  	
                    11.1.2

                  	
                    
                      Binding obligations The
      obligations expressed to be assumed by each Security Party and the
      Bareboat Charterer in each Finance Document to which it is a party are,
      legal, valid, binding and enforceable
  obligations.

                    

                  

          

          
             

          

        

        
           

          
            	
                     
      

                  	
                    11.1.3

                  	
                    
                      Non-conflict with other
      obligations The entry into and performance by each Security Party
      of, and the transactions contemplated by, the Finance Documents do not
      conflict with:

                    

                  

          

           

        

      

    

    
      	
               
      

            	
              (a)

            	
              any
      law or regulation applicable to that Security
  Party;

            

    

     

    
      	
               
      

            	
              (b)

            	
              the
      constitutional documents of that Security Party;
  or

            

    

     

    
      	
               
      

            	
              (c)

            	
              any
      document binding on that Security Party or any of its assets,
    

            

    

     

    and in borrowing the Loan, the
Borrower is acting for its own account.

     

    
      	
               
      

            	
              11.1.4

            	
              Power and authority Each
      Security Party has the power to enter into, perform and deliver, and has
      taken all necessary action to authorise its entry into, performance and
      delivery of, the Finance Documents to which it is a party and the
      transactions contemplated by those Finance
  Documents.

            

    

     

    
      	
               
      

            	
              11.1.5

            	
              Validity and admissibility in
      evidence All consents, licences, approvals, authorisations, filings
      and registrations required or desirable:

            

    

    
      
      

    

     

    
      	
               
      

            	
              (a)

            	
              to
      enable each Security Party lawfully to enter into, exercise its rights and
      comply with its obligations in the Finance Documents to which it is a
      party or to enable the Lender to enforce and exercise all its rights under
      the Finance Documents; and

            

    

     

    
      	
               
      

            	
              (b)

            	
              to
      make the Finance Documents to which any Security Party is a party
      admissible in evidence in its jurisdiction of incorporation,
    

            

    

     

    have been obtained or effected and are in full force and effect, with
the exception only of the registrations referred to in Parts II and IV of
Schedule 1 (Conditions
subsequent and Delivery conditions subsequent).

     

    
      	
               
      

            	
              11.1.6

            	
              Governing law and enforcement
      The choice of English law as the governing law of any Finance
      Document expressed to be governed by English law will be recognised and
      enforced in the jurisdiction of 

            

    

     

    
      
        
        

      

      
        27

        
          

        

      

      
        
        

      

       

      incorporation of each
relevant Security Party and/or the Bareboat Charterer, and any judgment obtained
in England in relation to any such Finance Document will be recognised and
enforced in the jurisdiction of incorporation of each relevant Security Party
and/or the Bareboat Charterer.

       

    

    
      	
               
      

            	
              11.1.7

            	
              Deduction of Tax No
      Security Party is required under the law of its jurisdiction of
      incorporation to make any deduction for or on account of Tax from any
      payment it may make under any Finance
Document.

            

    

     

    
      	
               
      

            	
              11.1.8

            	
              No filing or stamp taxes
      Under the law of jurisdiction of incorporation of each relevant
      Security Party it is not necessary that the Finance
      Documents be filed, recorded or enrolled with any court or other authority
      in that jurisdiction or that any stamp, registration or similar tax be
      paid on or in relation to the Finance Documents or the transactions
      contemplated by the Finance
Documents.

            

    

     

    
      	
               
      

            	
              11.1.9

            	
              No default No Event of
      Default is continuing or might reasonably be expected to result from the
      advance of any Drawing.

            

    

     

    
      	
               
      

            	
              11.1.10

            	
              No misleading information
      Any factual information provided by any Security Party to the
      Lender was true and accurate in all material respects as at the date it
      was provided.

            

    

     

    
      	
               
      

            	
              11.1.11

            	
              Pari passu ranking The
      payment obligations of each Security Party and the Bareboat Charterer
      under the Finance Documents to which it is a party rank at least pari
      passu with the claims of all its other unsecured and unsubordinated
      creditors, except for obligations mandatorily preferred by law applying to
      companies generally.

            

    

     

    
      	
               
      

            	
              11.1.12

            	
              No proceedings pending or
      threatened No litigation, arbitration or administrative proceedings
      of or before any court, arbitral body or agency have been started or (to
      the best of the Borrower's knowledge threatened) which, if adversely
      determined, might reasonably be expected to have a materially adverse
      effect on the business, assets, financial condition or credit worthiness
      of any Security Party.

            

    

     

    
      	
               
      

            	
              11.1.13

            	
              Disclosure of material facts
      The Borrower is not aware of any material facts or circumstances
      which have not been disclosed to the Lender
  and  

            

    

     

    

    
      
        
           

        

        
          28

          
            

          

        

        
           

        

      

    

     

    which might, if disclosed,
have adversely affected the decision
of a person considering whether or not to make loan facilities of the nature
contemplated by this Agreement available to the Borrower.

     

    
      	
               
      

            	
              11.1.14

            	
              No established place of
      business in the UK or US No Security Party has an established place
      of business in the United Kingdom or the United States of
      America.

            

    

     

    
      	
               
      

            	
              11.1.15

            	
              Completeness of Relevant
      Documents The copies of any Relevant Documents provided or to be
      provided by the Borrower to the Lender in accordance with Clause 3 (Conditions of Utilisation)
      are, or will be, true and accurate copies of the originals and
      represent, or will represent, the full agreement between the parties to
      those Relevant Documents in relation to the subject matter of those
      Relevant Documents and there are no commissions, rebates, premiums or
      other payments due or to become due in connection with the subject matter
      of those Relevant Documents other than in the ordinary course of business
      or as disclosed to, and approved in writing by, the
  Lender.

            

    

     

    
      	
               
      

            	
              11.2

            	
              Repetition Each
      representation and warranty in Clause 11.1 (Representations) is
      deemed to be repeated by the Borrower by reference to the facts and
      circumstances then existing on the date of each Drawdown Notice and the
      first day of each Interest Period.

            

    

     

    
      	
              12

            	
              Undertakings
      and Covenants

            

    

     

    The
undertakings and covenants in this Clause 12 remain in force for the duration of
the Facility Period.

     

    
      	
               
      

            	
              12.1

            	
              Information
      Undertakings

            

    

     

    
      	
               
      

            	
              12.1.1

            	
              Financial statements The
      Borrower shall supply and shall procure that the
      Guarantor supplies, to the Lender as soon as the same become available,
      but in any event within one hundred and eighty days (180) after the end of
      each of its financial years, its and the Guarantor's combined audited
      financial statements for that financial year, together with a Compliance
      Certificate, signed by one director of the Guarantor, setting out (in
      reasonable detail) computations as to compliance with Clause 12.2
      

            

    

     

    

    
      
        
           

        

        
          29

          
            

          

        

        
           

        

      

    

     

    (Financial covenants)
as at the date as at which those financial statements were drawn up.

     

    
      	
               
      

            	
              12.1.2

            	
              Requirements as to financial
      statements Each set of financial statements delivered
      by the Borrower under Clause 12.1.1 (Financial
      statements):

            

    

     

    
      	
               
      

            	
              (a)

            	
              shall
      be certified by a director of the Guarantor, as fairly representing its
      financial condition as at the date as at which those financial statements
      were drawn up; and

            

    

     

    
      	
               
      

            	
              (b)

            	
              shall
      be prepared using GAAP, accounting practices and financial reference
      periods consistent with those applied in the preparation of the Original
      Financial Statements unless, in relation to any set of financial
      statements, the Borrower notifies the Lender that there has been a change
      in GAAP, the accounting practices or reference periods and the Borrower's
      auditors deliver to the Lender:

            

    

     

    
      	
               
      

            	
              (i)

            	
              a
      description of any change necessary for those financial statements to
      reflect the GAAP, accounting practices and reference periods upon which
      the Original Financial Statements were prepared;
  and

            

    

     

    
      	
               
      

            	
              (ii)

            	
              sufficient
      information, in form and substance as may be reasonably required by the
      Lender, to enable the Lender to make an accurate comparison between the
      financial position indicated in those financial statements and that
      indicated in the Original Financial Statements.

               

            

    

    
      	
               
      

            	
              12.1.3

            	
              Information: miscellaneous
      The Borrower shall supply to the
Lender:

            

    

     

    
      	
               
      

            	
              (a)

            	
              all
      documents dispatched by the Borrower to its shareholders (or any class of
      them) or its creditors generally at the same time as they are
      dispatched;

            

    

     

    
      	
               
      

            	
              (b)

            	
              promptly
      upon becoming aware of them, details of any litigation, arbitration or
      administrative proceedings which are current, threatened or pending
      against any Security Party, and which might, if adversely determined, have
      a materially adverse effect on the 

            

    

     

    
      
        
        

      

      
        30

        
          

        

      

      
        
        

      

    

    
      
        	 	 	
                business,
      assets, financial condition or credit worthiness of that Security Party
      and/or the Bareboat Charterer; and

                 

              
	
                 
      

              	
                (c)

              	
                promptly,
      such further information regarding the financial condition, business and
      operations of any Security Party as the Lender may reasonably request
      including, without limitation, cash flow analyses and details of the
      operating costs of the Vessel.

              
	 	 	 

      

    

     

    
      	
               
      

            	
              12.1.4

            	
              Notification of
      default

            

    

     

    
      	
               
      

            	
              (a)

            	
              The
      Borrower shall notify the Lender of any Default (and the steps, if any,
      being taken to remedy it) promptly upon becoming aware of its
      occurrence.

            

    

     

    
      	
               
      

            	
              (b)

            	
              Promptly
      upon a request by the Lender, the Borrower shall supply to the Lender a
      certificate signed by two of its directors or senior officers on its
      behalf certifying that no Default is continuing (or if a Default is
      continuing, specifying the Default and the steps, if any, being taken to
      remedy it).

            

    

     

    
      	
               
      

            	
              12.1.5

            	
              "Know your customer"
      checks If:

            

    

     

    
      	
               
      

            	
              (a)

            	
              the
      introduction of or any change in (or in the interpretation, administration
      or application of) any law or regulation made after the date of this
      Agreement;

            

    

     

    
      	
               
      

            	
              (b)

            	
              any
      change in the status of the Borrower after the date of this Agreement;
      or

            

    

     

    
      	
               
      

            	
              (c)

            	
              a
      proposed assignment or transfer by the Lender of any of its rights and
      obligations under this Agreement,

            

    

     

    obliges
the Lender (or, in the case of (c) above, any prospective new Lender) to comply
with "know your customer" or similar identification procedures in circumstances
where the necessary information is not already available to it, the Borrower
shall promptly upon the request of the Lender supply, or procure the supply of,
such documentation and other evidence as is reasonably requested by the Lender
for itself (or, in the 

    

    
      
        
           

        

        
          31

          
            

          

        

        
           

        

      

    

     

    case of (c) above, on
behalf of any prospective new Lender) in order for the Lender (or, in the case
of (c) above, any prospective new Lender) to carry out and be satisfied it has
complied with all necessary "know your customer" or other similar checks under
all applicable laws and regulations pursuant to the transactions contemplated in
the Finance Documents.

     

    
      	
               
      

            	
              12.2

            	
              Financial
      covenants

            

    

     

    The
Borrower shall procure that the Guarantor shall at all times during the Facility
Period on a consolidated basis (assessed semi-annually and certified in
accordance with Clause 12.1.2 (a)) commencing from the date of this
Agreement:-

     

    
      	
               
      

            	
              12.2.1

            	
              maintain
      a Minimum Liquidity of not less than twenty five million Dollars
      ($25,000,000); and

            

    

     

    
      	
               
      

            	
              12.2.2

            	
              maintain
      a Minimum Adjusted Net Worth of not less than two hundred and fifty
      million Dollars ($250,000,000); and

            

    

     

    
      	
               
      

            	
              12.2.3

            	
              maintain
      Minimum Equity of not less than one hundred million Dollars
      ($100,000,000).

            

    

     

    
      	
               
      

            	
              12.3

            	
              General
      undertakings

            

    

     

    
      	
               
      

            	
              12.3.1

            	
              Authorisations The
      Borrower shall promptly:

            

    

     

    
      	
               
      

            	
              (a)

            	
              obtain,
      comply with and do all that is necessary to maintain in full force and
      effect; and

            

    

     

    
      	
               
      

            	
              (b)

            	
              supply
      certified copies to the Lender of,

            

    

     

    any
consent, licence, approval or authorisation required under any law or regulation
to enable each Security Party to perform its obligations under the Finance
Documents to which it is a party and to ensure the legality, validity,
enforceability or admissibility in evidence in the jurisdiction of incorporation
of each relevant Security Party of any Finance Document.

    
       

      
        	
                 
      

              	
                12.3.2

              	
                Compliance with laws The
      Borrower shall comply in all respects with all laws to which it may be
      subject, if failure so to comply would materially impair its ability to
      perform its obligations under the Finance
  Documents.

              

      

       

    

    
      
        
           

        

        
          32

          
            

          

        

        
           

        

      

    

     

    
      	
               
      

            	
              12.3.3

            	
              Conduct of business The
      Borrower shall carry on and conduct its business in a proper and efficient
      manner, file all requisite tax returns and pay all tax which becomes due
      and payable (except where contested in good
  faith).

            

    

     

    
      	
               
      

            	
              12.3.4

            	
              Evidence of good standing
      The Borrower will from time to time if requested by the Lender
      provide the Lender with evidence in form and substance satisfactory to the
      Lender that the Security Parties and all corporate shareholders of any
      Security Party remain in good
standing.

            

    

     

    
      	
               
      

            	
              12.3.5

            	
              Negative pledge and no
      disposals The Borrower shall not without the prior written consent
      of the Lender create nor permit to subsist any Encumbrance or other third
      party rights over any of its present or future assets or undertaking nor
      dispose of any those assets or of all or part of that
      undertaking.

            

    

     

    
      
        	
                 
      

              	
                12.3.6

              	
                Merger The Borrower shall not without the prior
      written consent of the Lender enter into any amalgamation, demerger,
      merger or corporate
  reconstruction.

              

      

    

     

    
      	
               
      

            	
              12.3.7

            	
              Change of business The
      Borrower shall not without the prior written consent of the Lender make
      any substantial change to the general nature
      of its business from that carried on at the date of this
      Agreement.

            

    

     

    
      
        	
                 
      

              	
                12.3.8

              	
                No other business The
      Borrower shall not without the prior written consent of the Lender engage
      in any business other than the ownership, operation, chartering and
      management of the Vessel.

              

      

       

      
        	
                 
      

              	
                12.3.9

              	
                No place of business in UK or
      US The Borrower shall not
      have an established place of business in the United Kingdom or the United
      States of America at any time during the Facility
  Period.

              

      

       

      
        	
                 
      

              	
                12.3.10

              	
                No borrowings The
      Borrower shall not without the prior written consent of the Lender borrow
      any money (except for the Loan and unsecured Financial Indebtedness
      subordinated to the Loan and arising in the Borrower's normal course of
      operating the Vessel) nor incur any obligations under
    leases.

              

      

       

    

    
      
        
           

        

        
          33

          
            

          

        

        
           

        

      

    

     

    
      	
               

               
      

            	
              12.3.11

            	
              No substantial liabilities
      Except in the ordinary course of business, the Borrower shall not
      without the prior written consent of the Lender incur any liability to any
      third party which is in the Lender's opinion of a substantial
      nature.

            

    

     

    
      	
               
      

            	
              12.3.12

            	
              No loans or other financial
      commitments The Borrower shall not without the prior written
      consent of the Lender make any loan nor enter into any guarantee or
      indemnity or otherwise voluntarily assume any actual or contingent
      liability in respect of any obligation of any other person except for
      loans made in the ordinary course of business in connection with the
      chartering, operation or repair of the
Vessel.

            

    

     

    
      	
               
      

            	
              12.3.13

            	
              No dividends The
      Borrower shall not without the prior written consent of the Lender pay any
      dividends or make any other  distributions
      to shareholders or issue any new shares, following the occurrence of a
      Default.

            

    

     

    
      	
               
      

            	
              12.3.14

            	
              Inspection of records
      The Borrower will permit the inspection of its financial records
      and accounts from time to time by the Lender or its
    nominee.

            

    

     

    
      	
               
      

            	
              12.3.15

            	
              No change in Relevant Documents
      The Borrower shall procure that, without the prior written consent
      of the Lender, there shall be no termination of, alteration to, or waiver
      of any term of, any of the Relevant Documents which are not Finance
      Documents.

            

    

     

    
      	
               
      

            	
              12.3.16

            	
              No change in ownership or
      control The Borrower shall not permit any change in its beneficial
      ownership and control from that advised to the Lender at the date of this
      Agreement without the prior written consent of the Lender, such consent
      not to be unreasonably withheld.

            

    

     

    
      	
               
      

            	
              12.4

            	
              Vessel
      undertakings

            

    

     

    
      	
               
      

            	
              12.4.1

            	
              No sale of Vessel The
      Borrower shall not sell or otherwise dispose of the Vessel or any shares
      in the Vessel nor agree to do so without the prior written consent of the
      Lender.

            

    

     

    
      	
               
      

            	
              12.4.2

            	
              No chartering after Event of
      Default Following the occurrence and during the continuation of an
      Event of Default the Borrower shall not without the
  

            

    

    

    
      
        
           

        

        
          34

          
            

          

        

        
           

        

      

    

    
       

      
        
          	 	 	
                  prior
      written consent of the Lender let the Vessel on charter or renew or extend
      any charter or other contract of employment of the Vessel (nor agree to do
      so).

                   

                
	
                   
      

                	
                  12.4.3

                	
                  No change in management
      The Borrower shall procure that, without the
      prior written consent of the Lender, such consent not to be unreasonably
      withheld, there shall be no termination of, alteration to, or waiver of
      any term of, the Management Agreement and the Borrower shall not without
      the prior written consent of the Lender permit the Managers to
      sub-contract or delegate the commercial or technical management of the
      Vessel to any third
party.

                

        

      

    

     

    
      	
               
      

            	
              12.4.4

            	
              Registration of Vessel
      The Borrower undertakes to register the Vessel and maintain the
      registration of the Vessel under an Approved Flag for the duration of the
      Facility Period unless the Lender agrees otherwise in
    writing.

            

    

     

    
      	
               
      

            	
              12.4.5

            	
              Evidence of current COFR
      The Borrower will, if and for so long as the Vessel trades in the
      United States of America and Exclusive Economic Zone (as defined in the
      United States Oil Pollution Act 1990), obtain, retain and provide the
      Lender with a copy of, a valid Certificate of Financial Responsibility for
      the Vessel under that Act and will comply strictly with the requirements
      of that Act.

            

    

     

    
      	
               
      

            	
              12.4.6

            	
              ISM Code compliance The
      Borrower will:

            

    

     

    
      	
               
      

            	
              (a)

            	
              procure
      that the Vessel remains for the duration of the Facility Period subject to
      a SMS;

            

    

     

    
      	
               
      

            	
              (b)

            	
              maintain
      a valid and current SMC for the Vessel throughout the Facility Period and
      provide a copy to the Lender;

            

    

     

    
      	
               
      

            	
              (c)

            	
              procure
      that the ISM Company maintains a valid and current DOC throughout the
      Facility Period and provide a copy to the Lender;
  and

            

    

    
      

      
        	
                 
      

              	
                (d)

              	
                immediately
      notify the Lender in writing of any actual or threatened withdrawal,
      suspension, cancellation or modification of the SMC of the Vessel or of
      the DOC of the ISM Company.

              

      

    

     

    
      
        	
                 
      

              	
                12.4.7

              	
                ISPS Code compliance The
      Borrower will:

              

      

    
      
        
           

        

        
          35

          
            

          

        

        
           

        

      

    

     

    
      	
               
      

            	
              (a)

            	
              for
      the duration of the Facility Period comply with the ISPS Code in relation
      to the Vessel and procure that the Vessel and the ISPS Company comply with
      the ISPS Code;

            

    

     

    
      	
               
      

            	
              (b)

            	
              maintain
      a valid and current ISSC for the Vessel throughout the Facility Period and
      provide a copy to the Lender; and

            

    

     

    
      	
               
      

            	
              (c)

            	
              immediately
      notify the Lender in writing of any actual or threatened withdrawal,
      suspension, cancellation or modification of the
  ISSC.

            

    

     

    
      	
               
      

            	
              12.4.8

            	
              Annex VI compliance The
      Borrower will:

            

    

     

    
      	
               
      

            	
              (a)

            	
              for
      the duration of the Facility Period comply with Annex VI in relation to
      the Vessel and procure that the Vessel's master and crew are familiar
      with, and that the Vessel complies with, Annex
  VI;

            

    

     

    
      	
               
      

            	
              (b)

            	
              maintain
      a valid and current IAPPC for the Vessel throughout the Facility Period
      and provide a copy to the Lender;
and

            

    

     

    
      	
               
      

            	
              (c)

            	
              immediately
      notify the Lender in writing of any actual or threatened withdrawal,
      suspension, cancellation or modification of the
  IAPPC.

            

    

     

    
      	
               
      

            	
              12.4.9

            	
              Bareboat Charter The
      Borrower (as owner) shall, by the date of this Agreement, enter into the
      Bareboat Charter, such Bareboat Charter to be in form and substance, and
      on terms and conditions, satisfactory to the Lender in all
      respects.

            

    

     

    
      	
              13

            	
              Events
      of Default

            

    

     

    
      	
               
      

            	
              13.1

            	
              Events of Default Each
      of the events or circumstances set out in this Clause 13.1 is
      an Event of Default.

            	
               

            

    

     

    
      	
               
      

            	
              13.1.1

            	
              Non-payment The Borrower
      does not pay on the due date any amount payable by it under a Finance
      Document at the place at and in the currency in which it is expressed to
      be payable.

            

    

     

    
      	
               
      

            	
              13.1.2

            	
              Other
      obligations.  A Security Party or any other person
      (except the Lender) does not comply with any provision of any of the
      Relevant 

            

    

     

    
      
        
        

      

      
        36

        
          

        

      

      
        
        

      

    

    Documents to which that Security Party or person is a party (other
than as referred to in Clause 13.1.1 (Non-payment)).

     

    No Event
of Default under this Clause 13.1.2 will occur if the failure to comply is
capable of remedy and is remedied within ten (10) Business Days of the Lender
giving notice to the Borrower or the Borrower becoming aware of the failure to
comply.

     

    
      	
               
      

            	
              13.1.3

            	
              Misrepresentation Any
      representation, warranty or statement made or deemed to be repeated by a
      Security Party in any Finance Document or any other document delivered by
      or on behalf of a Security Party under or in connection with any Finance
      Document is or proves to have been incorrect or misleading in any material
      respect when made or deemed to be
repeated.

            

    

    

    
      	
               
      

            	
              13.1.4

            	
              Cross default Any
      Financial Indebtedness of a Security
Party:

            

    

     

    
      	
               
      

            	
              (a)

            	
              is
      not paid when due or within any originally applicable grace period;
      or

            

    

     

    
      	
               
      

            	
              (b)

            	
              is
      declared to be, or otherwise becomes, due and payable before its specified
      maturity as a result of an event of default (however described);
      or

            

    

     

    
      	
               
      

            	
              (c)

            	
              is
      capable of being declared by a creditor to be due and payable before its
      specified maturity as a result of such an
event.

            

    

     

    
      	
               
      

            	
              13.1.5

            	
              Insolvency

            

    

     

    
      	
               
      

            	
              (a)

            	
              A
      Security Party is unable or admits inability to pay its debts as they fall
      due, suspends making payments on any of its debts or, by reason of actual
      or anticipated financial difficulties, commences negotiations with one or
      more of its creditors with a view to rescheduling any of its Financial
      Indebtedness.

            

    

     

    
      	
               
      

            	
              (b)

            	
              The
      value of the assets of a Security Party is less than its liabilities
      (taking into account contingent and prospective
    liabilities).

            

    

     

    
      	
               
      

            	
              (c)

            	
              A
      moratorium is declared in respect of any Financial Indebtedness of a
      Security Party.

            

    

    
      

      
        
          
             

          

          
            37

            
              

            

          

          
             

          

        

      

       

    

    
      	
               
      

            	
              13.1.6

            	
              Insolvency proceedings
      Any corporate action, legal proceedings or other procedure or step
      is taken for:

            

    

     

    
      	
               
      

            	
              (a)

            	
              the
      suspension of payments, a moratorium of any Financial Indebtedness,
      winding-up, dissolution, administration, bankruptcy or reorganisation (by
      way of voluntary arrangement, scheme of arrangement or otherwise) of a
      Security Party;

            

    

     

    
      	
               
      

            	
              (b)

            	
              a
      composition, compromise, assignment or arrangement with any creditor of a
      Security Party;

            

    

     

    
      	
               
      

            	
              (c)

            	
              the
      appointment of a liquidator, receiver, administrative receiver,
      administrator, compulsory manager, or trustee or other similar officer in
      respect of any Security Party or any of its assets;
  or

            

    

     

    
      	
               
      

            	
              (d)

            	
              enforcement
      of any Encumbrance over any assets of a Security
  Party,

            

    

     

    or any
analogous procedure or step is taken in any jurisdiction.

     

    
      	
               
      

            	
              13.1.7

            	
              Creditors' process Any
      expropriation, attachment, sequestration, distress or execution affects
      any asset or assets of a Security
Party.

            

    

     

    
      	
               
      

            	
              13.1.8

            	
              Change in ownership or control
      of the Borrower There is any change in the beneficial ownership or
      control of the Borrower from that advised to the Lender by the Borrower at
      the date of this Agreement.

            

    

     

    
      	
               
      

            	
              13.1.9

            	
              Repudiation A Security
      Party or any other person (except the Lender) repudiates any of the
      Relevant Documents to which that Security Party or person is a party or
      evidences an intention to do so.

            

    

     

    
      	
               
      

            	
              13.1.10

            	
              Impossibility or illegality
      Any event occurs which would, or would with the passage of time,
      render performance of any of the Relevant
      Documents by a Security Party or any other party to any such document
      impossible, unlawful or unenforceable by the Lender or a Security
      Party.

            

    

     

    
      
        	
                 
      

              	
                13.1.11

              	
                Conditions subsequent
      Any of the conditions referred to in Clause 3.4 (Conditions subsequent)
      is not satisfied within the time reasonably required by the
      Lender.

              

      

    
      
        
           

        

        
          38

          
            

          

        

        
           

        

      

    

     

    
      	
               
      

            	
              13.1.12

            	
              Revocation or modification of
      authorisation Any consent, licence, approval, authorisation,
      filing, registration or other requirement of any governmental, judicial or
      other public body or authority which is now, or which at any time during
      the Facility Period becomes, necessary to enable a Security Party or any
      other person (except the Lender) to comply with any of its obligations
      under any of the Relevant Documents is not obtained, is revoked,
      suspended, withdrawn or withheld, or is modified in a manner which the
      Lender considers is, or may be, prejudicial to the interests of the
      Lender, or ceases to remain in full force and
  effect.

            

    

     

    
      	
               
      

            	
              13.1.13

            	
              Curtailment of business
      A Security Party ceases, or threatens to cease, to carry on all or
      a substantial part of its business or, as a result of intervention by or
      under the authority of any government, the business of a Security Party is
      wholly or partially curtailed or suspended, or all or a substantial part
      of the assets or undertaking of a Security Party is seized, nationalised,
      expropriated or compulsorily
acquired.

            

    

     

    
      	
               
      

            	
              13.1.14

            	
              Reduction of capital A
      Security Party reduces its authorised or issued
      or subscribed capital.

            

    

     

    
      	
               
      

            	
              13.1.15

            	
              Loss of Vessel The
      Vessel suffers a Total Loss or is otherwise destroyed, abandoned,
      confiscated, forfeited or condemned as prize, or a similar event occurs in
      relation to any other vessel which may from time to time be mortgaged to
      the Lender as security for the payment of all or any part of the
      Indebtedness, except that a Total Loss, or event similar to a Total Loss
      in relation to any other vessel, shall not be an Event of Default
      if:

            

    

     

    
      	
               
      

            	
              (a)

            	
              the
      Vessel or other vessel is insured in accordance with the Security
      Documents; and

            

    

     

    
      	
               
      

            	
              (b)

            	
              no
      insurer has refused to meet or has disputed the claim for Total Loss and
      it is not apparent to the Lender in its discretion that any such refusal
      or dispute is likely to occur; and

            

    

     

    
      	
               
      

            	
              (c)

            	
              payment
      of all insurance proceeds in respect of the Total Loss is made in full to
      the Lender within one hundred and fifty (150) days of the occurrence of
      the casualty giving rise to the Total Loss in

            

    

     

    
      
        
        

      

      
        39

        
          

        

      

      
        
        

      

    

     

    question or such longer period as the Lender may in its discretion
agree.

     

    
      	
               
      

            	
              13.1.16

            	
              Challenge to registration
      The registration of the Vessel or the Mortgage is contested or
      becomes void or voidable or liable to cancellation or termination, or the
      validity or priority of the Mortgage is
  contested.

            

    

     

    
      	
               
      

            	
              13.1.17

            	
              War The country of
      registration of the Vessel becomes involved in war (whether or not
      declared) or civil war or is occupied by any
      other power and the Lender in its discretion considers that, as a result,
      the security conferred by any of the Security Documents is materially
      prejudiced.

            

    

     

    
      
        	
                 
      

              	
                13.1.18

              	
                Notice of termination The
      Guarantor gives notice to the Lender to determine its obligations under
      the Guarantee.

              

      

    

     

    
      	
               
      

            	
              13.1.19

            	
              The Builder Any of the
      events or circumstances specified in Clauses 13.1.5 (Insolvency), 13.1.6
      (Insolvency proceedings)
      and 13.1.7 (Creditors' process)
      occurs in relation to the Builder and/or to the Bareboat Charterer,
      and, in the opinion of the Lender, in the case of the Builder, the Vessel
      is unlikely to be delivered to the Borrower by the Builder under the
      Building Contract by/on 28 February 2009, or such other later date as may
      be agreed with the Builder (and subject to the Lender's consent, such
      consent not to be unreasonably withheld) in accordance with the terms of
      the Building Contract.

            

    

     

    
      	
               
      

            	
              13.1.20

            	
              Non-delivery of Vessel
      The Vessel is not delivered to the Borrower by the Builder under
      the Building Contract by/on 28 February 2009, or such other later date as
      may be agreed with the Builder (and subject to the Lender's consent, such
      consent not to be unreasonably withheld) in accordance with the terms of
      the Building Contract.

            

    

     

    
      	
               
      

            	
              13.1.21

            	
              Material adverse change
      Any event or series of events occurs which, in the opinion of the
      Lender, is likely to have a materially adverse effect on the business,
      assets, financial condition or credit worthiness of a Security
      Party.

            

    

    

    
      	
               
      

            	
              13.1.22

            	
              Bareboat Charter If the
      Bareboat Charter is terminated, cancelled or repudiated or is not in force
      at any time during the period of its duration or if the Bareboat Charterer
      defaults in the performance of any of its material obligations under or
      pursuant to the Bareboat Charter.

            

    

    
       

      
        
          
             

          

          
            40

            
              

            

          

          
             

          

        

      

    

     

    
      	
               
      

            	
              13.2

            	
              Acceleration If an Event
      of Default is continuing the Lender may by notice to the Borrower cancel
      any part of the Maximum Loan Amount not then advanced
  and:

            

    

     

    
      	
               
      

            	
              13.2.1

            	
              declare
      that the Loan, together with accrued interest, and all other amounts
      accrued or outstanding under the Finance Documents are immediately due and
      payable, whereupon they shall become immediately due and payable;
      and/or

               

            

    

    
      	
               
      

            	
              13.2.2

            	
              declare
      that the Loan is payable on demand, whereupon it shall immediately become
      payable on demand by the Lender.

            

    

     

    
      	
              14

            	
              Assignment
      and Sub-Participation

            

    

     

    
      	
               
      

            	
              14.1

            	
              Lender's rights The
      Lender may assign any of its rights under this Agreement or transfer by
      novation any of its rights and obligations under this Agreement to any
      other branch of the Lender or to any other bank or financial institution
      or (for the purpose of a securitisation of the Lender's rights or
      obligations under the Finance Documents or a similar transaction of
      broadly equivalent economic effect) to any special purpose vehicle, and
      may grant sub-participations in all or any part of the
    Loan.

            

    

     

    
      	
               
      

            	
              14.2

            	
              Borrower's co-operation
      The Borrower will co-operate fully with the Lender in connection
      with any assignment, transfer or sub-participation; will execute and
      procure the execution of such documents as the Lender may require in that
      connection;
      and irrevocably authorises the Lender to disclose to any proposed
      assignee, transferee or sub-participant (whether before or after any
      assignment, transfer or sub-participation and whether or not any
      assignment, transfer or sub-participation shall take place) all
      information relating to the Security Parties and the Bareboat Charterer,
      the Loan, the Relevant Documents and the Vessel which the Lender may in
      its discretion consider necessary or
  desirable.

            

    

     

    
      	
               
      

            	
              14.3

            	
              Rights of assignee or
      transferee Any assignee or transferee of the Lender shall (unless
      limited by the express terms of the assignment or novation) take the full
      benefit of every provision of the Finance Documents benefitting the
      Lender.

            

    

     

    
      
        
        

      

      
        41

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              14.4

            	
              No assignment or transfer by
      the Borrower The Borrower may not assign any of its rights or
      transfer any of its rights or obligations under the Finance
      Documents.

            

    

     

    
      	
               
      

            	
              14.5

            	
              Securitisation The
      Lender may disclose the size and term of the Loan and the name of each of
      the Security Parties to any investor or potential investor in a
      securitisation (or similar transaction of broadly equivalent economic
      effect) of the Lender's rights or obligations under the Finance
      Documents.

            

    

     

    
      	
              15

            	
              Set-Off

            

    

     

    The
Lender may set off any matured obligation due from the Borrower under any
Finance Document against any matured obligation owed by the Lender to the
Borrower, regardless of the place of payment, booking branch or currency of
either obligation. If the obligations are in different currencies, the Lender
may convert either obligation at a market rate of exchange in its usual course
of business for the purpose of the set-off.

     

    16           Payments

     

    
      	
               
      

            	
              16.1

            	
              Payments Each amount
      payable by the Borrower under a Finance Document shall be paid to such
      account at such bank as the Lender may from time to time direct to the
      Borrower in the Currency of Account and in such funds as are customary at
      the time for settlement of transactions in the relevant currency in the
      place of payment. Payment shall be deemed to have been received by the
      Lender on the date on which the Lender receives authenticated advice of
      receipt, unless that advice is received by the Lender on a day other than
      a Business Day or at a time of day (whether on a Business Day or not) when
      the Lender in its discretion considers that it is impossible or
      impracticable for the Lender to utilise the amount received for value that
      same day, in which event the payment in question shall be deemed to have
      been received by the Lender on the Business Day next following the date of
      receipt of advice by the Lender.

            

    

     

    
      	
               
      

            	
              16.2

            	
              No deductions or withholdings
      Each payment (whether of principal or interest or otherwise) to be
      made by the Borrower under a Finance Document shall, subject only to
      Clause 16.3 (Grossing-up), be made
      free and clear of and without deduction for or on account of any Taxes or
      other deductions, withholdings, restrictions, conditions or counterclaims
      of any nature.

            

    

     

    
      
        
        

      

      
        42

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              16.3

            	
              Grossing-up If at any
      time any law requires (or is interpreted to require) the Borrower to make
      any deduction or withholding from any payment, or to change the rate or
      manner in which any required deduction or withholding is made, the
      Borrower will promptly notify the Lender and, simultaneously with that
      payment, will pay to the Lender whatever additional amount (after taking
      into account any additional Taxes on, or deductions or withholdings from,
      or restrictions
      or conditions on, that additional amount) is necessary to ensure that,
      after the deduction or withholding, the Lender receives a net sum equal to
      the sum which the Lender would have received had no deduction or
      withholding been made.

            

    

     

    
      	
               
      

            	
              16.4

            	
              Evidence of deductions
      If at any time the Borrower is required by law to make any
      deduction or withholding from any payment to be made by it under a Finance
      Document, the Borrower will pay the amount required to be deducted or
      withheld to the relevant authority within the time allowed under the
      applicable law and will, no later than thirty (30) days after making that
      payment, deliver to the Lender an original receipt issued by the relevant
      authority, or other evidence acceptable to the Lender, evidencing the
      payment to that authority of all amounts required to be deducted or
      withheld.

            

    

     

    
      	
               
      

            	
              16.5

            	
              Adjustment of due dates
      If any payment or transfer of funds to be made under a Finance
      Document, other than a payment of interest on the Loan, shall be due on a
      day which is not a Business Day, that payment shall be made on the next
      succeeding Business Day (unless the next succeeding Business Day falls in
      the next calendar month in which event the payment shall be made on the
      next preceding Business Day). Any such variation of time shall be taken
      into account in computing any interest in respect of that
      payment.

            

    

     

    
      	
               
      

            	
              16.6

            	
              Control Account The Lender shall open and
      maintain on its books a control account in the name of the Borrower
      showing the advance of the Loan and the computation and payment of
      interest and all other sums due under this Agreement. The Borrower's
      obligations to repay the Loan and to pay interest and all other sums due
      under this Agreement, shall be evidenced by the entries from time to time
      made in the control account opened and maintained under this
      Clause 16.6 and those entries will, in the absence of manifest error, be
      conclusive and binding.

            

    

     

    
      
        
        

      

      
        43

        
          

        

      

      
        
        

      

    

     

    
      	
              17

            	
              Notices

            

    

     

    
      	
               
      

            	
              17.1

            	
              Communications in writing
      Any communication to be made under or in connection with this
      Agreement shall be made in writing and, unless otherwise stated, may be
      made by fax or letter.

            

    

     

    
      	
               
      

            	
              17.2

            	
              Addresses The address
      and fax number (and the department or officer, if any, for whose attention
      the communication is to be made) of each party to this Agreement for any
      communication or document to be made or delivered under or in connection
      with this Agreement are:

            

    

     

    
      	
               
      

            	
              17.2.1

            	
              in
      the case of the Borrower, c/o Top Ships Inc., 1 Vassilissis Sofias Str.
      & Meg. Alexandrou Str. 151 24 Marousi, Greece (fax no: +30 210 614
      1273) marked for the attention of Mr Stamatios Tsantanis;
    and

            

    

     

    
      	
               
      

            	
              17.2.2

            	
              in
      the case of the Lender, to the Lender at its address at the head of this
      Agreement (fax no: 210 429 0348 telex no: 212435) marked for the attention
      of Shipping Division branch 960);

            

    

     

    or any
substitute address, fax number, department or officer as either party may notify
to the other by not less than five (5) Business Days' notice.

     

    
      
        	
                 
      

              	
                17.3

              	
                Delivery Any
      communication or document made or delivered by one party to this Agreement
      to the other under or in connection this Agreement will only be
      effective:

              

      

    

     

    
      	
               
      

            	
              17.3.1

            	
              if
      by way of fax, when received in legible form;
or

            

    

     

    
      	
               
      

            	
              17.3.2

            	
              if
      by way of letter, when it has been left at the relevant address or five
      (5) Business Days after being deposited in the post postage prepaid in
      an
      envelope addressed to it at that
address;

            

    

     

    
      and, if a
particular department or officer is specified as part of its address details
provided under Clause 17.2 (Addresses), if addressed to
that department or officer.

       

      Any
communication or document to be made or delivered to the Lender will be
effective only when actually received by the Lender.

    
      
        
           

        

        
          44

          
            

          

        

        
           

        

      

    

     

    
      	
               
      

            	
              17.4

            	
              English language Any
      notice given under or in connection with this Agreement must be in
      English. All other documents provided under or in connection with this
      Agreement must be:

            

    

     

    
      	
               
      

            	
              17.4.1

            	
              in
      English; or

            

    

     

    
      	
               
      

            	
              17.4.2

            	
              if
      not in English, and if so required by the Lender, accompanied by a
      certified English translation and, in this case, the English translation
      will prevail unless the document is a constitutional, statutory or other
      official document.

            

    

     

    
      	
              18

            	
              Partial
      Invalidity

            

    

     

    If, at
any time, any provision of a Finance Document is or becomes illegal, invalid or
unenforceable in any respect under any law of any jurisdiction, neither the
legality, validity or enforceability of the remaining provisions nor the
legality, validity or enforceability of such provision under the law of any
other jurisdiction will in any way be affected or impaired.

     

    
      	
              19

            	
              Remedies
      and Waivers

            

    

     

    No
failure to exercise, nor any delay in exercising, on the part of the Lender, any
right or remedy under a Finance Document shall operate as a waiver, nor shall
any single or partial
exercise of any right or remedy prevent any further or other exercise or the
exercise of any other right or remedy. The rights and remedies provided in this
Agreement are cumulative and not exclusive of any rights or remedies provided by
law.

     

    
      	
              20

            	
              Miscellaneous

            

    

     

    
      	
               
      

            	
              20.1

            	
              No oral variations No
      variation or amendment of a Finance Document shall be valid unless in
      writing and signed on behalf of the
Lender.

            

    

     

    
      	
               
      

            	
              20.2

            	
              Further Assurance If any
      provision of a Finance Document shall be invalid or unenforceable in whole
      or in part by reason of any present or future law or any decision of any
      court, or if the documents at any time held by or on behalf of the Lender
      are considered by the Lender for any reason insufficient to carry out the
      terms of this Agreement, then from time to time the Borrower will
      promptly, on demand by the Lender, execute or procure the execution of
      such further documents as in the 

            

    

     

    
      
        
          
             

          

          
            45

            
              

            

          

          
             

          

        

      

    

     

    
      
        	 	 	
                opinion
      of the Lender are necessary to provide adequate security for the repayment
      of the Indebtedness.

                 

              
	
                 
      

              	
                20.3

              	
                Rescission of payments etc.
      Any discharge, release or reassignment by the Lender of any of the
      security constituted by, or any of the obligations of a Security Party
      contained in, a Finance Document shall be (and be deemed always to have
      been) void if any act (including, without limitation, any payment) as a
      result of which such discharge, release or reassignment was given or made
      is subsequently wholly or partially rescinded or avoided by operation of
      any law.

              

      

    

     

    
      	
               
      

            	
              20.4

            	
              Certificates Any
      certificate or statement signed by an authorised signatory of the Lender
      purporting to show the amount of the Indebtedness (or any part of the
      Indebtedness) or any other amount referred to in any Finance Document
      shall, save for manifest error or on any question of law, be conclusive
      evidence as against the Borrower of that
  amount.

            

    

     

    
      	
               
      

            	
              20.5

            	
              Counterparts This
      Agreement may be executed in any number of counterparts each of which
      shall be original but which shall together constitute the same
      instrument.

            

    

     

    
      	
               
      

            	
              20.6

            	
              Contracts (Rights of Third
      Parties) Act 1999 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 teiiii of this
  Agreement.

            

    

     

    
      	
              21

            	
              Law
      and Jurisdiction

            

    

     

    
      	
               
      

            	
              21.1

            	
              Governing law This
      Agreement shall in all respects be governed by and interpreted in
      accordance with English law.

            

    

     

    
      	
               
      

            	
              21.2

            	
              Jurisdiction For the
      exclusive benefit of the Lender, the parties to this Agreement irrevocably
      agree that the courts of England are to have jurisdiction to settle any
      disputes which may arise out of or in connection with this Agreement and
      that any proceedings may be brought in those
  courts.

            

    

     

    
      	
               
      

            	
              21.3

            	
              Alternative jurisdictions
      Nothing contained in this Clause 21 shall limit the right of the
      Lender to commence any proceedings against the Borrower in any other court
      of competent jurisdiction nor shall the commencement of any proceedings
      against the Borrower in one or more jurisdictions preclude the
      commencement of any proceedings in any other jurisdiction, whether
      concurrently or not.

            

    

     

    

    
      
        
           

        

        
          46

          
            

          

        

        
           

        

      

    

    
       

      
        	
                 
      

              	
                21.4

              	
                Waiver of objections The
      Borrower irrevocably waives any objection which it may now or in the
      future have to the laying of the venue of any proceedings in
      any court referred to in this Clause 21, and any claim that those
      proceedings have been brought in an inconvenient or inappropriate forum,
      and irrevocably agrees that a judgment in any proceedings commenced in any
      such court shall be conclusive and binding on it and may be enforced in
      the courts of any other
jurisdiction.

              

      

    

     

    
      	
               
      

            	
              21.5

            	
              Service of process
      Without prejudice to any other mode of service allowed under any
      relevant law, the Borrower:

            

    

     

    
      	
               
      

            	
              21.5.1

            	
              irrevocably
      appoints Top Tankers (UK) Limited of 8 Duke Street, W1U 3EW London, UK as
      its agent for service of process in relation to any proceedings before the
      English courts in connection with this Agreement;
  and

            

    

     

    
      	
               
      

            	
              21.5.2

            	
              agrees
      that failure by a process agent to notify the Borrower of the process will
      not invalidate the proceedings
concerned.

            

    

     

    

    
      
        
           

        

        
          47

          
            

          

        

        
           

        

      

    

     

    SCHEDULE
1: Conditions Precedent and Subsequent

     

     

    Part
I: Conditions precedent

     

     

    1             
Security Parties

     

    
      	
               
      

            	
              (a)

            	
              Constitutional Documents
      Copies of the constitutional documents of each Security Party and
      the Bareboat Charterer together with such other evidence as the Lender may
      reasonably require that each Security Party and the Bareboat Charterer is
      duly incorporated in its country of incorporation and remains in existence
      with power to enter into, and perform its obligations under, the Relevant
      Documents to which it is or is to become a
  party.

            

    

     

    
      	
               
      

            	
              (b)

            	
              Certificates of good standing
      A certificate of good standing in respect of each Security Party
      and the Bareboat Charterer (if such a certificate can be
      obtained).

            

    

     

    
      	
               
      

            	
              (c)

            	
              Board resolutions A copy
      of a resolution of the board of directors of each Security Party and the
      Bareboat Charterer (if applicable):

            

    

     

    
      	
               
      

            	
              (i)

            	
              approving
      the terms of, and the transactions contemplated by, the Relevant Documents
      to which it is a party and resolving that it execute those Relevant
      Documents; and

            

    

     

    
      	
               
      

            	
              (ii)

            	
              authorising
      a specified person or persons to execute those Relevant Documents (and all
      documents and notices to be signed and/or despatched under those
      documents) on its behalf.

            

    

     

    
      	
               
      

            	
              (d)

            	
              Shareholder resolutions
      A copy of a resolution signed by all the holders of the issued
      shares in each Security Party and the Bareboat Charterer (if applicable),
      approving the terms of, and the transactions contemplated by, the Relevant
      Documents to which that Security Party and the Bareboat Charterer (if
      applicable) is a party.

            

    

     

    
      	
               
      

            	
              (e)

            	
              Officer's certificates A
      certificate of a duly authorised officer of each Security Party and the
      Bareboat Charterer (if applicable) certifying that each copy document
      relating to it specified in this Part I of Schedule 1 is correct, complete
      and in full force and effect and setting out the names of the directors,
      officers and shareholders of that Security Party and the Bareboat
      Charterer (if applicable) and the proportion of shares held by each
      shareholder.

            

    

     

    
      
        
        

      

      
        48

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              (f)

            	
              Evidence of registration
      Where such registration is required or permitted under the laws of
      the relevant jurisdiction, evidence that the names of the directors,
      officers and shareholders of each Security Party and the Bareboat
      Charterer are duly registered in the companies registry or other registry
      in the country of incorporation of that Security
  Party.

            

    

     

    
      	
               
      

            	
              (g)

            	
              Powers of attorney The
      notarially attested and legalised power of attorney of each Security Party
      and the Bareboat Charterer (if applicable) under which any documents are
      to be executed or transactions undertaken by that Security Party and the
      Bareboat Charterer (if applicable).

            

    

     

    2            Security
and related documents

     

    
      	
               
      

            	
              (a)

            	
              Vessel documents
      Photocopies, certified as true, accurate and complete (and in form
      and substance acceptable to the Lender) by a director or the secretary or
      the legal advisers of the Borrower,
of:

            

    

     

    
      	
               
      

            	
              (i)

            	
              the
      Building Contract;

            

    

     

    
      	
               
      

            	
              (ii)

            	
              such
      documents as the Lender may reasonably require to evidence the nomination
      of the Borrower as purchaser of the Vessel pursuant to the Building
      Contract;

               

            

    

    
      	
               
      

            	
              (iii)

            	
              the
      Bareboat Charter;

            

    

     

    
      	
               
      

            	
              (iv)

            	
              if
      the Bareboat Charterer is not Daelim, but a 100% subsidiary of Daelim, the
      performance guarantee of Daelim;

            

    

     

    
      	
               
      

            	
              (v)

            	
              the
      Refund Guarantee; and

            

    

     

    
      	
               
      

            	
              (vi)

            	
              the
      notice or invoice issued by the Builder and countersigned by the Vessel's
      classification society evidencing the obligation of the Borrower to pay
      the relevant instalment to the Builder under the Building Contract on a
      date no later than the proposed Drawdown Date of the Drawing in
      question.

            

    

     

    
      	
               
      

            	
              (b)

            	
              Security Documents The
      Building Contract Assignment, the Guarantee, the Charter Assignment,
      together with all other documents required by any of them, including,
      without limitation, all notices of assignment and/or charge and evidence
      that those notices will be duly acknowledged by the
      recipients.

            

    

     

    
      
        
        

      

      
        49

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              (c)

            	
              No disputes The written
      confirmation of the Borrower that there is no dispute under any of the
      Relevant Documents as between the parties to any such
      document.

            

    

     

    
      	
               
      

            	
              (d)

            	
              Deed of Release The Deed
      of Release in form and substance acceptable to the
  Lender.

            

    

     

    3             
Legal opinions

     

    
      	
               
      

            	
              (a)

            	
              If
      a Security Party and the Bareboat Charterer is incorporated in a
      jurisdiction other than England and Wales or if any Finance Document is
      governed by the laws of a jurisdiction other than England and Wales, a
      legal opinion of the legal advisers to the Lender in each relevant
      jurisdiction, substantially in the form or forms provided to the Lender
      prior to signing this Agreement or confirmation satisfactory to the Lender
      that such an opinion will be given.

            

    

     

    4           
  Other documents and evidence

     

    
      	
               
      

            	
              (a)

            	
              Drawdown Notice A duly
      completed Drawdown Notice.

            

    

     

    
      	
               
      

            	
              (b)

            	
              Process agent Evidence
      that any process agent referred to in Clause 21.5 (Service of process)
      and any process agent appointed under any other Finance Document
      has accepted its appointment.

            

    

     

    
      	
               
      

            	
              (c)

            	
              Other authorisations A
      copy of any other consent, licence, approval, authorisation or other
      document, opinion or assurance which the Lender considers to be necessary
      or desirable (if it has notified the Borrower accordingly) in connection
      with the entry into and performance of the transactions contemplated by
      any of the Relevant Documents or for the validity and enforceability of
      any of the Relevant Documents.

            

    

     

    
      	
               
      

            	
              (d)

            	
              Financial statements
      Copies of the Original Financial
  Statements.

            

    

     

    
      	
               
      

            	
              (e)

            	
              Fees Evidence that the
      fees, costs and expenses then due from the Borrower under Clause 8 (Indemnities) and
      Clause 9 (Fees)
      have been paid or will be paid by the relevant Drawdown
      Date.

            

    

     

    
      	
               
      

            	
              (f)

            	
              "Know your customer" documents
      Such documentation and other evidence as is reasonably requested by
      the Lender in order for the Lender to comply with all
  

            

    

    
       

      
        
          
             

          

          
            50

            
              

            

          

          
             

          

        

      

    

     

    
      
        	 	 	
                necessary
      "know your customer" or similar identification procedures in relation to
      the transactions contemplated in the Finance Documents.

                 

              
	
                 
      

              	
                (g)

              	
                Equity Portion Evidence
      that the relevant Equity Portion of the instalment in question has been
      deposited by the Borrower in the Earnings Account at least three Business
      Days prior to the proposed Drawdown Date of the Drawing in
      question.

              

      

    

     

    
      
        
        

      

      
        51

        
          

        

      

      
        
        

      

    

     

    Part
II: Conditions subsequent

     

    
      	
              1

            	
              Acknowledgements of notices
      Acknowledgements of all notices of assignment and/or charge given
      pursuant to any Security Documents received by the Lender pursuant to Part
      I of this Schedule 1.

            

    

     

    
      	
              2

            	
              Legal opinions Such of
      the legal opinions specified in Part 1 of this Schedule I as have not
      already been provided to the
Lender.

            

    

     

    
      	
              3

            	
              Companies Act registrations
      Evidence that the prescribed particulars of any Security Documents
      received by the Lender pursuant to Part I of this Schedule 1 have been
      delivered to the Registrar of Companies of England and Wales within the
      statutory time limit.

            

    

     

    
      	
              4

            	
              Loan Acknowledgement
      Declaration The Loan Acknowledgement Declaration duly
      executed.

            

    

     

    

    
      
        
           

        

        
          52

          
            

          

        

        
           

        

      

    

     

    Part
Ill: Delivery conditions precedent

     

    
      	
              1

            	
              Officer's certificate A
      certificate signed by a duly authorised officer of each Security Party
      confirming that none of the documents and evidence delivered to the Lender
      pursuant to Clauses 3.1 (Conditions precedent)
      and 3.4 (Conditions subsequent)
      has been amended, modified or revoked in any way since its delivery
      to the Lender.

            

    

     

    2            Security
and related documents

     

    
      	
               
      

            	
              (a)

            	
              Vessel documents
      Photocopies, certified as true, accurate and complete by a director
      or the secretary of the Borrower,
of:

            

    

     

    
      	
               
      

            	
              (i)

            	
              the
      builder's certificate and/or bill of sale transferring title in the Vessel
      to the Borrower free of all encumbrances, maritime liens or other
      debts;

            

    

     

    
      	
               
      

            	
              (ii)

            	
              the
      protocol of delivery and acceptance evidencing the unconditional physical
      delivery of the Vessel by the Builder to the Borrower pursuant to the
      Building Contract;

            

    

     

    
      	
               
      

            	
              (iii)

            	
              the
      commercial invoice issued by the Builder in respect of the final contract
      price of the Vessel;

            

    

     

    
      	
               
      

            	
              (iv)

            	
              the
      declaration of warranty issued by the Builder to the Borrower pursuant to
      the Building Contract;

            

    

     

    
      	
               
      

            	
              (v)

            	
              any
      charterparty or other contract of employment of the Vessel which will be
      in force on the Delivery Date including, without limitation, the Bareboat
      Charter;

            

    

     

    
      	
               
      

            	
              (vi)

            	
              the
      Management Agreement;

            

    

     

    
      	
               
      

            	
              (vii)

            	
              the
      Vessel's current Safety Construction, Safety Equipment, Safety Radio, Oil
      Pollution Prevention and Load Line
Certificates;

            

    

     

    
      	
               
      

            	
              (viii)

            	
              the
      Vessel's current Certificate of Financial Responsibility issued pursuant
      to the United States Oil Pollution Act
1990;

            

    

     

    
      	
               
      

            	
              (ix)

            	
              the
      Vessel's current SMC;

               

            

    

    
      	
               
      

            	
              (x)

            	
              the
      ISM Company's current DOC;

            

    

     

    
      
        
        

      

      
        53

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              (xi)

            	
              the
      Vessel's current ISSC;

            

    

     

    
      	
               
      

            	
              (xii)

            	
              the
      Vessel's current IAPPC;

            

    

     

    
      	
               
      

            	
              (xiii)

            	
              the
      Vessel's current Tonnage
Certificate;

            

    

     

    
      	
               
      

            	
              (xiv)

            	
              the
      Borrower's current Carrier Initiative Agreement with the United States'
      Customs Service;

            

    

     

    in each
case together with all addenda, amendments or supplements.

     

    
      	
               
      

            	
              (b)

            	
              Evidence of Borrower's title
      Evidence that any prior registration of the Vessel in the ownership
      of the Builder and any Encumbrance registered against that ownership have
      been cancelled (or confirmation from the Builder that there was no such
      prior registration) and evidence that on the Delivery Date (i) the Vessel
      will be at least provisionally registered under the flag stated in Recital
      (A) in the ownership of the Borrower and (ii) the Mortgage will be capable
      of being registered against the Vessel with first
  priority.

            

    

     

    
      	
               
      

            	
              (c)

            	
              Evidence of insurance
      Evidence that the Vessel is insured in the manner required by the
      Security Documents and that letters of undertaking will be issued in the
      manner required by the Security Documents, together with (if required by
      the Lender) the written approval of the Insurances by an insurance adviser
      appointed by the Lender and at the expense of the
  Borrower.

            

    

     

    
      	
               
      

            	
              (d)

            	
              Confirmation of class An
      interim Certificate of Confirmation of Class for hull and machinery
      confirming that the Vessel is classed with the highest class applicable to
      vessels of her type with Lloyd's Register or such other classification
      society as may be acceptable to the Lender and at the expense of the
      Borrower.

            

    

     

    
      	
               
      

            	
              (e)

            	
              Survey report A report
      by a surveyor instructed by the Lender to inspect the Vessel confirming
      that the condition of the Vessel is in all respects acceptable to the
      Lender and at the expense of the
Borrower.

            

    

     

    
      
        	 	
                (f)
      

              	
                Valuation A valuation of
      the Vessel addressed to the Lender from an independent broker acceptable
      to the Lender, certifying the Market Value of the Vessel, assessed in such
      manner as the Lender may require in its discretion, acceptable to the
      Lender and at the expense of the Borrower, confirming that the Maximum
      Loan Amount is equal or less than seventy five per cent (75%) of the
      Market Value.

              

      

    

     

    
      
        
        

      

      
        54

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              (g)

            	
              Security Documents The
      Mortgage, the Assignments, together with all other documents required by
      any of them, including, without limitation, all notices of assignment
      and/or charge and evidence that those notices will be duly acknowledged by
      the recipients.

            

    

     

    
      	
               
      

            	
              (h)

            	
              Mandates Such duly
      signed forms of mandate, and/or other evidence of the opening of the
      Earnings Account, as the Lender may
require.

            

    

     

    
      	
               
      

            	
              (i)

            	
              Managers' confirmation
      The written confirmation of the Managers that, throughout the
      Facility Period unless otherwise agreed by the Lender, they will remain
      the commercial and technical managers of the Vessel and that they will
      not, without the prior written consent of the Lender, sub-contract or
      delegate the commercial or technical management of the Vessel to any third
      party and confirming in terms acceptable to the Lender that, following the
      occurrence of an Event of Default, all claims of the Managers against the
      Borrower shall be subordinated to the claims of the Lender under the
      Finance Documents.

            

    

     

    3            Legal
opinions

     

    
      	
               
      

            	
              (a)

            	
              If
      a Security Party is incorporated in a jurisdiction other than England and
      Wales or if any Finance Document is governed by the laws of a jurisdiction
      other than England and Wales, a legal opinion of the legal advisers to the
      Lender in each relevant jurisdiction, substantially in the form or forms
      provided to the Lender prior to signing this Agreement or confirmation
      satisfactory to the Lender that such an opinion will be
    given.

            

    

     

    4            Other
documents and evidence

     

    
      	
               
      

            	
              (a)

            	
              Process agent Evidence
      that any process agent appointed under any Finance Document has accepted
      its appointment.

            

    

     

    
      	
               
      

            	
              (b)

            	
              Other authorisations A
      copy of any other consent, licence, approval, authorisation or other
      document, opinion or assurance which the Lender considers to be necessary
      or desirable (if it has notified the Borrower accordingly) in connection
      with the entry into and performance of the transactions contemplated by
      any of the Relevant Documents or for the validity and enforceability of
      any of the Relevant Documents.

            

    

    

     

    

    
      
        
           

        

        
          55

          
            

          

        

        
           

        

      

    

     

    Part
IV: Delivery conditions subsequent

     

    
      	
              1

            	
              Evidence of Borrower's title
      Certificate of ownership and encumbrance (or equivalent) issued by
      the Registrar of Ships (or equivalent official) of the flag stated in
      Recital (A) confirming that (a) the Vessel is permanently registered under
      that flag in the ownership of the Borrower, (b) the Mortgage has been
      registered with first priority against the Vessel and (c) there are no
      further Encumbrances registered against the
  Vessel.

            

    

     

    
      	
              2

            	
              Letters of undertaking
      Letters of undertaking in respect of the Insurances as required by
      the Security Documents together with copies of the relevant policies or
      cover notes or entry certificates duly endorsed with the interest of the
      Lender.

            

    

     

    
      	
              3

            	
              Acknowledgements of notices
      Acknowledgements of all notices of assignment and/or charge given
      pursuant to any Security Documents received by the Lender pursuant to Part
      III of this Schedule 1.

            

    

     

    
      	
              4

            	
              Legal opinions Such of
      the legal opinions specified in Part III of this Schedule 1 as have not
      already been provided to the
Lender.

            

    

     

    
      	
              5

            	
              Companies Act registrations
      Evidence that the prescribed particulars of any Security Documents
      received by the Lender pursuant to Part III of this Schedule 1 have
      been delivered to the Registrar of Companies of England and Wales within
      the statutory time limit.

            

    

     

    
      	
              6

            	
              Master's receipt The
      master's receipt for the Mortgage.

            

    

     

    

     

    

    
      
        
           

        

        
          56

          
            

          

        

        
           

        

      

    

     

    SCHEDULE 2: Form of Drawdown
Notice

     

    To:            Alpha Bank A.E.

     

    From:   LICHTENSTEIN SHIPPING COMPANY
LIMITED

     

    [Date]

     

    Dear
Sirs

     

    Drawdown
Notice

     

    We refer
to the Loan Agreement
dated                  
2008 made between ourselves and yourselves (the "Agreement").

     

    Words and
phrases defined in the Agreement have the same meaning when used in this
Drawdown Notice.

     

    Pursuant
to Clause 4 of the Agreement, we irrevocably request that you advance to us a
Drawing in the sum of
[                                 ]
in respect of the Vessel
on                               
200 , which is a Business Day, by paying the amount of the Drawing in accordance
with the provisions of the Building Contract [in] [towards] payment of the
[   ] instalment of the Contract Price.

     

    We
warrant that the representations and warranties contained in Clause 11.1 of the
Agreement are true and correct at the date of this Drawdown Notice and will be
true and correct on  200 , that no Default has occurred and is continuing,
and that no Default will result from the advance of the Drawing requested in
this Drawdown Notice.

     

    [We
select the period of [      ] months as the first
Interest Period.]

     

    Yours
faithfully

     

     

    ____________________

    For and
on behalf of

     

    LICHTENSTEIN
SHIPPING COMPANY LIMITED

     

    

    
      
        
           

        

        
          57

          
            

          

        

        
           

        

      

    

    

    SCHEDULE
3: Form of Compliance Certificate

     

    To:            Alpha Bank A.E.

     

    From:
LICHTENSTEIN SHIPPING COMPANY
LIMITED

     

    Dated:

     

    Dear
Sirs

     

    LICHTENSTEIN
SHIPPING COMPANY LIMITED – $39,000,000 Loan Agreement dated
[         ] (the
"Agreement")

     

    We refer
to the Agreement. This is a Compliance Certificate. Terms defined in the
Agreement have the same meaning when used in this Compliance Certificate unless
given a different meaning in this Compliance Certificate.

     

    We
confirm that the Guarantor:-

     

    
      	
               
      

            	
              i)

            	
              maintains
      a Minimum Liquidity of not less than twenty five million Dollars
      ($25,000,000); and

            

    

     

    
      	
               
      

            	
              ii)

            	
              maintains
      a Minimum Adjusted Net Worth of not less than two hundred and fifty
      million Dollars ($250,000,000) ;
and

            

    

     

    
      	
               
      

            	
              iii)

            	
              maintains
      Minimum Equity of not less than one hundred million Dollars
      ($100,000,000).

            

    

     

    We
confirm that no Default is continuing.

     

     

     

     

    Signed:  
____________________

            Director

     

           
of

     

           
LICHTENSTEIN SHIPPING COMPANY LIMITED

    

    
      
        
           

        

        
          58

          
            

          

        

        
           

        

      

    

    

     

    \GI \ 139249.5  

    
      
        
           

        

        
          59

          
            

          

        

        
           

        

      

    

     

    SCHEDULE
4: Form of Loan Acknowledgement Declaration

     

    To:          Alpha Bank A.E.

           
89
Akti Miaouli Street  
        GR
185 38, Piraeus 
    Greece

     

    From:
LICHTENSTEIN SHIPPING COMPANY
LIMITED    2008

     

    Dear
Sirs,

     

    Loan
Acknowledgement Declaration

     

    We refer
to the Loan Agreement
dated                                  2008
made between ourselves and yourselves ("the Agreement").

     

    Words and
phrases defined in the Agreement have the same meaning when used in this Loan
Acknowledgement Declaration.

     

    We
irrevocably confirm to you that we have drawndown and received from you [part
of] the Loan in the amount of
[              
] Dollars ($[        ])
on            
2008.

     

    We
warrant that the representations and warranties contained in Clause 11.1 of the
Agreement are true and correct at the date of this Drawdown Notice and are true
and correct on the date of this Loan Acknowledgement Declaration; that no Event
of Default has occurred and is continuing, that (unless otherwise agreed by you
in writing that they may be waved) the conditions precedent to the availability
of the Loan referred to in Clause 3 of the Loan Agreement have been fulfilled
and that we expressly reconfirm all our obligations under the Loan
Agreement.

     

    This Loan
Acknowledgement Declaration is given in accordance with the provisions of the
Loan Agreement in four (4) originals.

     

    Yours
faithfully

     

     

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

     

    For and
on behalf of

     

    LICHTENSTEIN
SHIPPING COMPANY LIMITED

    

    
      
        
           

        

        
          60

          
            

          

        

        
           

        

      

    

     

    IN WITNESS of which the
parties to this Agreement have executed this Agreement the day and year first
before written.

     

     

    
      
        
          
            	
                    SIGNED  by Andreas
    Louka

                  	
                    )

                  	 
	
                    as
      duly authorized

                  	
                    )

                  	 
	
                    for
      and on behalf of 

                  	
                    )

                  	 /s/
      Andreas Louka
	
                    LICHTENSTEIN
      SHIPPING COMPANY LIMITED

                  	
                    )

                  	 
	
                    in
      the presence of: 

                  	
                    )

                  	 
	Constantinos
      Karachallos 	 	 

          

        

      

       

      
 

      
        
          
            	
                    SIGNED  by Konstantinos
      Sotiriou

                  	
                    )

                  	 
	                      
      Constantinos Flokos	) 	 
	
                    as
      duly authorized

                  	
                    )

                  	 /s/
       Konstantinos Sotiriou
	
                    for
      and on behalf of 

                  	
                    )

                  	 /s/
      Constantinos Flokos
	
                    ALPHA
      BANK A.E.

                  	
                    )

                  	 
	
                    in
      the presence of: 

                  	
                    )

                  	 
	Constantinos
      Karachallos 	 	 

          

          

        

      

    

    

    SK 23116 0005
1007450

    

    
      
        
           

        

        
          61d1007460_ex4-79.htm

    Exhibit
4.79

     

    DATED 23
FEBRUARY 2009

     

     

     

    LICHTENSTEIN
SHIPPING COMPANY LIMITED

    (as
borrower)

     

     

    and-

     

     

    TOP
SHIPS INC.

    (as
guarantor)

     

     

    -and-

     

     

    ALPHA
BANK A.E.

    (as
lender)

     

    

     

    
 

    
      	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	
               

              FIRST
      SUPPLEMENTAL AGREEMENT TO A SECURED 

              LOAN
      FACILITY AGREEMENT DATED 18 AUGUST 2008

               

            	 
      
	 
      	 
      	 
      

    

     

    STEPHENSON
HARWOOD

    One,
St. Paul's Churchyard

    London
EC4M 8SH

    Tel:
+44 (0)20 7329 4422

    Fax:
+44 (0)20 7329 7100

    Ref:
28.045

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    CONTENTS

    Page

    
      	
              1

            	
              Interpretation

               

            	
              3

            
	
              2

            	
              Conditions

               

            	
              4

            
	
              3

            	
              Representations
      and Warranties

               

            	
              5

            
	
              4

            	
              Amendments
      to Loan Agreement

               

            	
              6

            
	
              5

            	
              Confirmation
      and Undertaking

               

            	
              7

            
	
              6

            	
              Expenses

               

            	
              7

            
	
              7

            	
              Miscellaneous
      Provisions

               

            	
              8

            
	
              8

            	
              Notices,
      Law and Jurisdiction

               

            	
              8

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    SUPPLEMENTAL
AGREEMENT

     

    Dated:
23 February 2009

     

    BETWEEN:

     

    
      	
              (1)

            	
              LICHTENSTEIN SHIPPING COMPANY
      LIMITED, a company incorporated under the laws of the Republic of
      Liberia whose registered office is at 80, Broad Street Monrovia, Liberia
      (the "Borrower");
      and

            

    

     

    
      	
              (2)

            	
              TOP SHIPS INC., a
      company incorporated according to the law of the Marshall Islands whose
      registered office is at the Trust Company Complex, Ajeltake Road, Ajeltake
      Islands, Majuro, Marshall Islands MH96960 (the "Guarantor");
      and

            

    

     

    
      	
              (3)

            	
              ALPHA BANK A.E., acting
      through its office at 89 Akti Miaouli, GR 185 38 Piraeus, Greece (the
      "Lender").

            

    

     

    SUPPLEMENTAL
TO:-

     

    A secured
loan agreement dated 18 August 2008 (the "Loan Agreement") made between
the Borrower and the Lender, on the terms and subject to the conditions of which
the Lender agreed to advance to the Borrower an aggregate amount not exceeding
thirty nine million Dollars ($39,000,000) (the "Loan").

     

    WHEREAS:

     

    
      	
              (A)

            	
              DAELIM H&L CO., LTD., of 1lth Floor,
      The Korea Chamber Of Commerce & Industry Building #45, 4-Ga,
      Namdaemun-Ro, Jung-Ku. Seoul, Korea 100-743 (the "Original Bareboat Charterer") has ceased
      to exist with all the rights, interests, obligations and liabilities of
      the Original Bareboat Charterer having been assigned to and/or novated to
      and/or absorbed by (as appropriate) DAELLM
      CORPORATION, of 1OF KCCI Bldg, 45 4ga Namdaernunre, Jung gu Seoul,
      Korea (the "Replacement Bareboat
      Charterer"). The Replacement Bareboat Charterer has assumed all of
      the Original Bareboat Charterer's rights, obligations and liabilities
      under the Bareboat Charter pursuant to Addendum No.2 to the Bareboat
      Charter dated 21 November 2008 made between the Borrower, the Original
      Bareboat Charterer and the Replacement Bareboat
  Charterer.

            

    

     

    
      	
              (B)

            	
              The
      Borrower has requested the Lender to agree to the replacement of the
      Original Bareboat Charterer by the Replacement Bareboat Charterer in the
      Loan Agreement and the Tripartite Deed be cancelled and replaced by the
      New Tripartite Deed and all references to the Bareboat Charter and the
      Bareboat Charterer in the Loan Agreement and the Security Documents are
      amended as more particularly described in this Supplemental
      Agreement.

            

    

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    
       

      
        	
                (C)

              	
                The
      parties to this Supplemental Agreement have agreed to amend the Loan
      Agreement on the terms and subject to the conditions contained in this
      Supplemental Agreement.

              

      

       

    

    IT
IS AGREED THAT:

     

    1           Interpretation

     

    
      	
               
      

            	
              1.1

            	
              In
      this Supplemental Agreement:-

            

    

     

    "Additional Security Documents"
means this Supplemental Agreement, the New
Tripartite Deed and any other agreement or document which may at
any time be executed by any person as additional security for the payment of all
or any part of the Indebtedness.

     

    "Effective Date" means the
date on which the Lender confirms to the Borrower that all of the conditions
referred to in Clause 2.1 have been satisfied, which confirmation the Lender
shall be under no obligation to give if a Default shall have
occurred.

     

    "New Tripartite Deed" means
the deed of assignment of Insurances, Earnings, Charter Rights and Requisition
Compensation in respect of the Charter from the Borrower and the Replacement
Bareboat Charterer in form and substance satisfactory in all respect to the
Lender in its discretion.

     

    "Tripartite Deed" means the
deed of assignment of Insurances, Earnings, Charter Rights and Requisition
Compensation in respect of the Charter from the Borrower and the Original
Bareboat Charterer dated 20 August 2008.

     

    "Security Parties" means all
parties to this Supplemental Agreement other than the Lender.

     

    
      	
               
      

            	
              1.2

            	
              All
      words and expressions defined in the Loan Agreement shall have the same
      meaning when used in this Supplemental Agreement unless the context
      otherwise requires, and clause 1.2 of the Loan Agreement shall apply to
      the interpretation of this Supplemental Agreement as if it was set out in
      full.

            

    

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    2           Conditions

     

    
      	
               
      

            	
              2.1

            	
              As
      conditions for the agreement of the Lender to the request specified in
      Recital (B) above and for the effectiveness of Clause 4, the Borrower
      shall deliver or cause to be delivered to or to the order of the Lender
      the following documents and
evidence:

            

    

     

    
      	
               
      

            	
              2.1.1

            	
              a
      certificate from a duly authorised officer of each of the Security Parties
      confirming that none of the documents delivered to the Lender pursuant to
      Clause 3.1 of the Loan Agreement have been amended or modified in any way
      since the date of their delivery to the Lender, or copies, certified by a
      duly authorised officer of the Security Party in question as true,
      complete, accurate and neither amended nor revoked, of any which have been
      amended or modified;

            

    

     

    
      	
               
      

            	
              2.1.2

            	
              a
      copy, certified by a director or the secretary of the Security Party in
      question as true, complete and accurate and neither amended nor revoked,
      of a resolution of the directors and a resolution of the shareholders of
      each Security Party (together, where appropriate, with signed waivers of
      notice of any directors' or shareholders' meetings) approving, and
      authorising or ratifying the execution of, this Supplemental Agreement and
      any document to be executed by that Security Party pursuant to the
      Additional Security Documents; and

            

    

     

    
      	
               
      

            	
              2.1.3

            	
              a
      notarially attested and legalised power of attorney of each of the
      Security Parties under which the Additional Security Documents and any
      documents required pursuant to it are to be executed by that Security
      Party; and

            

    

     

    
      	
               
      

            	
              2.1.4

            	
              if
      a Security Party is incorporated in a jurisdiction other than England and
      Wales, a legal opinion of the legal advisers to the Lender in each
      relevant jurisdiction, substantially in the form or forms provided to the
      Lender prior to signing the Additional Security Documents or confirmation
      satisfactory to the Lender that such an opinion will be
    given;

            

    

     

    
      
        
           

        

        
          4

          
            

          

        

        
           

        

      

    

     

    
       

      
        	
                 
      

              	
                2.1.5

              	
                evidence
      in form and substance satisfactory to the Lender in its discretion of the
      merger between the Original Bareboat Charterer and the Replacement
      Bareboat Charterer; and

              

      

       

      
        
          	
                   
      

                	
                  2.1.6

                	
                  the
      Additional Security Documents, together with all notices and other
      documents required by any of them, duly
  executed;

                

        

      

    

    
      
        	 	 	 

      

    

    
      	
               
      

            	
              2.2

            	
              All
      documents and evidence delivered to the Lender pursuant to this Clause
      shall:

            

    

     

    
      	
               
      

            	
              2.2.1

            	
              be
      in form and substance acceptable to the
Lender;

            

    

     

    
      	
               
      

            	
              2.2.1

            	
              be
      accompanied, if required by the Lender, by translations into the English
      language, certified in a manner acceptable to the Lender;
    and

            

    

     

    
      	
               
      

            	
              2.2.3

            	
              if
      required by the Lender, be certified, notarised, legalised or attested in
      a manner acceptable to the Lender.

            

    

     

    3           Representations
and Warranties

     

    
      	
               
      

            	
              3.1

            	
              Each
      of the representations and warranties contained in clause 11 of the
      Loan Agreement shall be deemed repeated by the Borrower at the date of
      this Supplemental Agreement and at the Effective Date, by reference to the
      facts and circumstances then pertaining, as if references to the Finance
      Documents included this Supplemental
Agreement.

            

    

     

    
      	
               
      

            	
              3.2

            	
              Each
      Security Party further represents and warrants to the Lender
      that:

            

    

     

    
      	
               
      

            	
              3.2.1

            	
              it
      is a body corporate duly constituted and existing and (where applicable)
      in good standing under the law of its country of incorporation, in each
      case with the power to sue and be sued, to own its assets and to carry on
      its business, and all of its corporate shareholders are duly constituted
      and existing under the laws of their countries of incorporation with
      perpetual corporate existence and the power to sue and be sued, to own
      their assets and to carry on their
business;

            

    

     

    
      	
               
      

            	
              3.2.2

            	
              it
      has the power to enter into and perform this Supplemental Agreement, the
      documentation and the transactions contemplated hereby and has taken all
      necessary action to authorise the entry into and performance of this
      Supplemental Agreement and such documentation and
      transactions;

            

    

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    
       

      
        	
                 
      

              	
                3.2.3

              	
                this
      Supplemental Agreement constitutes legal, valid and binding obligations of
      that Security Party enforceable in accordance with its terms;
      and

              

      

       

      
        	
                 
      

              	
                3.2.4

              	
                the
      entry into and performance of this Supplemental Agreement and the
      documentation and transactions contemplated hereby do not and will not
      conflict with (i) any law or regulation or any official or judicial order,
      or (ii) the constitutional documents of that Security Party, or (iii) any
      agreement or document to which that Security Party is a party or which is
      binding on it or any of its assets, nor result in the creation or
      imposition of any encumbrance on any of its
  assets.

              

      

       

    

    4           Amendments
to Loan Agreement

     

    With
effect from the Effective Date:

     

    
      	
               
      

            	
              4.1

            	
              the
      definition of "Tripartite
      Deed" set forth in clause 1.1 of the Loan Agreement was deleted and
      replaced with the definition of ''New Tripartite Deed"
      contained in Clause 1.1 and it was moved
    accordingly;

            

    

     

    
      	
               
      

            	
              4.2

            	
              the
      definition of "Security
      Documents" set out in clause 1.1 of the Loan Agreement was amended
      to include the Additional Security Documents and exclude the Tripartite
      Deed.

            

    

     

    
      	
               
      

            	
              4.3

            	
              the
      definition of "Bareboat
      Charter" set out in clause 1.1 of the Loan Agreement was deleted
      and replaced as follows:

            

    

     

    ""Bareboat Charter" means the
bareboat charter dated 8 April 2008, as amended and supplemented by Addendum
No.I dated 20 August 2008 and as further amended and supplemented by Addendum
No.2 dated 21 November 2008, on the terms and subject to the conditions of which
the Borrower will bareboat charter the Vessel to the Bareboat Charterer, for a
duration of ten (10) years at a minimum net daily rate of hire of fourteen
thousand five hundred and fifty Dollars ($14,550).";

     

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    
       

      
        	
                 
      

              	
                4.4

              	
                the
      definition of "Bareboat
      Charterer" set out in clause 1.1 of the Loan Agreement was deleted
      and replaced as follows:

              

      

       

      ""Bareboat Charterer" means
Daelim Corporation of 10F KCCI Bldg, 45 4ga Namdaemanre, Jung gu Seoul,
Korea";

       

      
        	
                 
      

              	
                4.5

              	
                clause
      10.1.5 of the Loan Agreement was deleted and replaced as
      follows:-

              

      

       

      "10.1.5 a
first priority deed or deeds of assignment of the Insurances, Earnings, Bareboat
Charter and Requisition Compensation of the Vessel from the Borrower and the
Bareboat Charterer, including (in the case of the Bareboat Charterer) an
agreement whereby its interests under the Bareboat Charter are subordinated to
the interests of the Lender under the Mortgage." ; and

       

      
        	
                 
      

              	
                4.6

              	
                schedule
      1, Part I, 2, (a) (iv) was deleted and schedule 1, Part I, 2, (a) shall he
      renumbered accordingly.

              

      

       

      All other
terms and conditions of the Loan Agreement shall remain unaltered and in full
force and effect.

    

     

    5           Confirmation
and Undertaking

     

    
      	
               
      

            	
              5.1

            	
              Each
      of the Security Parties confirms that all of its respective obligations
      under or pursuant to each of the Security Documents to which it is a party
      remain in full force and effect, despite the amendments to the Loan
      Agreement made in this Supplemental Agreement, as if all references in any
      of the Security Documents to the Loan Agreement were references to the
      Loan Agreement as amended, supplemented and novated by this Supplemental
      Agreement.

            

    

     

    
      	
               
      

            	
              5.2

            	
              The
      definition of any term defined in any of the Security Documents shall, to
      the extent necessary, be modified to reflect the amendments to the Loan
      Agreement made in this Supplemental
Agreement.

            

    

     

    6           Expenses

     

    
      	
               
      

            	
              6.1

            	
              The
      Borrower undertakes to indemnify the Lender, within fourteen days of the
      Lender's written demand, in respect of all costs, charges and expenses
      (together with value added tax or any similar tax thereon and including
      without limitation the fees and expenses of legal advisers) incurred by
      the Lender in connection with the negotiation, preparation, printing,
      execution and registration of this Supplemental Agreement, and the
      completion of the transactions herein
  contemplated.

            

    

     

     

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              6.2

            	
              The
      Borrower undertakes to indemnify the Lender, within fourteen days of the
      Lender's written demand against all stamp. registration and similar taxes
      which may be payable in connection with the entry into, performance and
      enforcement of this Supplemental
Agreement.

            

    

     

    7           Miscellaneous
Provisions

     

    
      	
               
      

            	
              7.1

            	
              This
      Supplemental Agreement may be executed in any number of counterparts, each
      of which, when so executed, shall be deemed to be an original, but such
      counterparts shall together constitute one and the same
      instrument.

            

    

     

    
      	
               
      

            	
              7.2

            	
              With
      effect from the Effective Date, this Supplemental Agreement shall be
      construed with and shall constitute an instrument supplemental to the Loan
      Agreement. Save as otherwise provided herein and as hereby expressly
      varied and supplemented, the Loan Agreement shall remain valid and binding
      and in full force and effect after the Effective
  Date.

            

    

     

    8           Notices,
Law and jurisdiction

     

    The
provisions of clauses 17 and 21 of the Loan Agreement shall apply to this
Supplemental Agreement as if they were set out in full and as if references to
the Loan Agreement were references to this Supplemental Agreement and references
to the Borrower were references to the Security Parties.

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    IN WITNESS of which the
parties to this Supplemental Agreement have executed this Supplemental Agreement
as a deed the day and year first before written.

     

    
      	
              SIGNED and DELIVERED
    as

            	
              )

            	 
      
	
              A
      DEED
      by

            	
              )

            	 
      
	
              LICHTENSTEIN
      SHIPPING COMPANY

            	
              )

            	 
      
	
              LIMITED

            	
              )

            	 
      
	
              acting
      by

            	
              )

            	 
      
	
              Andreas
      Louka

            	
              )

            	
              /s/
      Andreas Louka

            
	
              its
      duly authorised attorney-in-fact

            	
              )

            	 
      
	
              in
      the presence of:

            	
              )

            	 
      
	
              Constantinos
      Karachallos

            	
              )

            	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	
              SIGNED and DELIVERED
    as

            	
              )

            	 
      
	
              A
      DEED
      by

            	
              )

            	 
      
	
              TOP
      SHIPS INC.

            	
              )

            	 
      
	
              acting
      by

            	
              )

            	 
      
	
              Andreas
      Louka

            	
              )

            	
              /s/
      Andreas Louka

            
	
              its
      duly authorised attorney-in-fact

            	
              )

            	 
      
	
              in
      the presence of:

            	
              )

            	 
      
	
              Constantinos
      Karachallos

            	
              )

            	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	
              SIGNED and DELIVERED
    as

            	
              )

            	 
      
	
              A
      DEED
      by

            	
              )

            	 
      
	
              ALPHA
      BANK A.E.

            	
              )

            	 
      
	
              acting
      by

            	
              )

            	 
      
	
              Gregorios
      N. Kondilis

            	
              )

            	
              /s/
      Gregorios N. Kondilis

            
	
              Constantinos
      V. Flokos

            	
              )

            	
              /s/
      Constantinos V. Flokos

            
	
              its
      duly authorised attorney-in-fact

            	
              )

            	 
      
	
              in
      the presence of:

            	
              )

            	 
      
	
              Constantinos
      Karachallos

            	
              )

            	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      

    

    

    

    SK 23116
0005 1007460

    
      
         

      

      
        9

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00160-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00160-of-00352.parquet"}]]