Document:

<PAGE>

                            SENIOR FACILITY AGREEMENT

                                     between

                            GENERAL MARITIME I, L.P.
                                   as borrower

                       CHRISTIANIA BANK OG KREDITKASSE ASA
                          as agent and security trustee

                                       and

                                    THE BANKS
                                   as lenders

                                 Clifford Chance
                                     London

<PAGE>

                                    CONTENTS
<TABLE>
<CAPTION>
Clause                                                                      Page

<S>                                                                         <C>
  1.     Interpretation ....................................................   1
  2.     The Facility ......................................................   8
  3.     Purpose ...........................................................   8
  4.     Conditions Precedent ..............................................   8
  5.     Nature of Banks' Rights and Obligations ...........................   8
  6.     Availability ......................................................   8
  7.     Interest Periods ..................................................   9
  8.     Interest ..........................................................  10
  9.     Repayment and Prepayment ..........................................  11
  10.    Taxes and Tax Receipts ............................................  12
  11.    Changes in Circumstances ..........................................  14
  12.    Representations ...................................................  16
  13.    Information Covenants .............................................  18
  14.    Financial Condition ...............................................  19
  15.    General Covenants .................................................  20
  16.    Events of Default .................................................  22
  17.    Default Interest and Indemnity ....................................  25
  18.    Currency of Account and Payment ...................................  26
  19.    Payments ..........................................................  27
  20.    Set-Off ...........................................................  27
  21.    Sharing ...........................................................  27
  22.    Fees ..............................................................  28
  23.    Costs and Expenses ................................................  29
  24.    The Agent and the Banks ...........................................  29
  25.    Benefit of Agreement ..............................................  34
  26.    Assignments and Transfers .........................................  34
  27.    Calculations and Evidence of Debt .................................  35
  28.    Remedies and Waivers ..............................................  36
  29.    Partial Invalidity ................................................  36
  30.    Notices ...........................................................  36
  31.    Law ...............................................................  37
  32.    Jurisdiction ......................................................  37

  The First Schedule
  Condition Precedent Documents ............................................  39
  The Second Schedule
  Notice of Drawdown .......................................................  43
  The Third Schedule
  Form of Transfer Certificate .............................................  44
  The Fourth Schedule
  The Banks ................................................................  46
</TABLE>

<PAGE>

THIS AGREEMENT is made on 15 May 1997

BETWEEN:

(1)  GENERAL MARITIME I, L.P. (the "BORROWER");

(2)  CHRISTIANIA BANK OG KREDITKASSE ASA (in its capacity as agent, the
     "AGENT");

(3)  CHRISTIANIA BANK OG KREDITKASSE ASA (in its capacity as the security
     trustee, the "SECURITY TRUSTEE"); and

(4)  THE BANKS (as defined below).

                                    RECITALS

A.   The Banks have agreed to grant to the Borrower, upon the terms and subject
     to the conditions herein set forth, a loan facility in the amount of up to
     $27,000,000.

B.   By a further Loan Agreement (the "JUNIOR FACILITY AGREEMENT") of even date
     herewith and made between the Borrower, the Agent, the Security Trustee and
     Christiania Bank og Kreditkasse ASA as Initial Bank, the Initial Bank has
     agreed to lend to the Borrower a further sum of up to $3,000,000 secured by
     second ranking security over the assets mortgaged or charged by the
     Borrower to the Security Trustee pursuant to the Financing Documents
     defined therein.

NOW IT IS HEREBY AGREED  as follows:

1.   INTERPRETATION

1.1  In this Agreement:

     "ADMINISTRATIVE GENERAL PARTNER" means General Maritime (Alta) Ltd., a
     company duly incorporated under the laws of Cayman Islands;

     "ADVANCE" means, save as otherwise provided herein, the advance made or to
     be made by the Banks hereunder;

     "ASSIGNMENT OF ACCOUNTS" means the assignment of the Guarantor accounts to
     be executed by the Guarantor pursuant to paragraph 3 of Part 2 of the First
     Schedule;

     "ASSIGNMENT OF EARNINGS AND INSURANCES" means an assignment of earnings and
     insurances to be entered into by the Guarantor in favour of the Security
     Trustee named therein pursuant to paragraph 2, Part 2 of the First
     Schedule;

     "BANKS" means the financial institutions named in the Fourth Schedule and
     any Transferees of such named financial institutions (and any subsequent
     Transferees) and "BANK" means each of the Banks;

<PAGE>

     "BASLE PAPER" means the paper entitled "International Convergence of
     Capital Measurement and Capital Standards" dated July 1988 and prepared by
     the Basle Committee on Banking Regulations and Supervision, as amended in
     November 1991;

     "CAPITAL ADEQUACY REQUIREMENT" means a request or requirement relating to
     the maintenance of capital, including one which makes any change to, or is
     based on any alteration in, the interpretation of the Basle Paper or which
     increases the amounts of capital required thereunder, other than a request
     or requirement made by way of implementation of the Basle Paper in the
     manner in which it is being implemented at the date hereof;

     "CAYMAN ISLANDS" means the Cayman Islands;

     "CHARTER" means the time charterparty dated 31 March 1997 (as from time to
     time amended or novated) pursuant to which the Guarantor has agreed to
     charter the Vessel to the Charterer for a period of at least 5 years from
     the Drawdown Date;

     "CHARTERER" means Mendala II Transport, Inc.;

     "CHARTER GUARANTEE" means the guarantee entered or to be entered into
     pursuant to paragraph 10 Part I of the First Schedule by the Charter
     Guarantor and the Guarantor whereby the Charter Guarantor guarantees the
     performance of the Charterer's obligations under the charter;

     "CHARTER GUARANTOR" means OMI Corp.;

     "DRAWDOWN DATE" means the date on which the Advance is made to the Borrower
     hereunder;

     "EARNINGS ACCOUNT" has the meaning ascribed to it in the Assignment of
     Earnings and Insurances;

     "EVENT OF DEFAULT" means any of those events specified in Clause 16.1
     (EVENTS OF DEFAULT);

     "FACILITY" means the dollar loan facility granted to the Borrower in this
     Agreement;

     "FACILITY AMOUNT" means an amount of up to US$27,000,000 to be advanced by
     the Banks to the Borrower;

     "FACILITY COMMITMENT" means in relation to a Bank, the amount set opposite
     its name in the Fourth Schedule;

     "FACILITY OFFICE" means in relation to a Bank, the Agent or the Security
     Trustee the office identified with the signature below (or in the case of a
     Transferee, at the end of the Transfer Certificate to which it is a party
     as Transferee) or such other office as it may from time to time select;

     "FAIR MARKET VALUE" means, in relation to the Vessel at any time, the sale
     value of the Vessel in dollars determined on the basis of a sale (for cash
     and prompt delivery) by a willing

<PAGE>

     seller to a willing buyer, free of charter and encumbrances and at arm's
     length on normal commercial terms;

     "FINAL REPAYMENT DATE" means the date which falls 60 months after the
     Drawdown Date;

     "FINANCING DOCUMENTS" means this Agreement, any Interest Rate Swap
     Agreement, the Trust Deed, the Mortgage, the Assignment of Earnings and
     Insurances, the Priority Agreement and the Assignment of Accounts, the
     Guarantee and any other document agreed between the Agent and the Borrower
     to be a Financing Document;

     "GENERAL PARTNERS" means the Managing General Partner and the
     Administrative General Partner;

     "GUARANTEE" means the guarantee to be entered into by the Guarantor in
     favour of the Security Trustee pursuant to paragraph 8, Part 2 of the First
     Schedule;

     "GUARANTOR" means Alta Ltd., a wholly-owned subsidiary of the Borrower in
     whom the ownership of the Vessel is vested;

     "INSTRUCTING GROUP" means a Bank or group of Banks to whom in aggregate
     more than fifty per cent of the Loan is (or, immediately prior to its
     repayment, was then) owed;

     "INTEREST RATE SWAP AGREEMENT" means any interest rate swap agreement to be
     entered into by the Borrower, any Banks and the Agent pursuant to which the
     Borrower will hedge all or part of its interest costs under this Agreement;

     "INTEREST PERIOD" means any of those periods mentioned in Clause 7.2
     (DURATION OF INTEREST PERIODS);

     "LIBERIA" means the Republic of Liberia;

     "LIBOR" means, in relation to any period for which an interest rate is to
     be determined hereunder, the rate per annum determined by the Agent to be
     equal to the LIBOR fixing on Telerate page 3740 for deposits in dollars for
     a period corresponding to that period at 11.00 a.m. on the Quotation Date
     for that period Provided that if there are no such rates so appearing on
     such page at such time it means the rate per annum determined by the Agent
     to be equal to the arithmetic mean (rounded upwards, if not already such a
     multiple to the nearest whole multiple of one-sixteenth of one per cent.)
     of the respective rates (as notified to the Agent) at which the Reference
     Banks were offering to prime banks in the London Interbank Market deposits
     in dollars for a period corresponding to such period at such time;

     "LOAN" means the aggregate principal amount for the time being outstanding
     hereunder;

     "MANAGEMENT AGREEMENT" means the agreement (as from time to time amended or
     novated) to be entered or entered into between the Guarantor and Universe
     Tankships (Delaware) LLC relating to the management of the Vessel pursuant
     to paragraph 12, Part 1, of the First Schedule;

<PAGE>

     "MANAGING GENERAL PARTNER" means General Maritime I Corporation, a
     corporation duly incorporated under the laws of the State of Delaware,
     U.S.A;

     "MARGIN" means one and one-eighth per cent. (1-1/8%) per annum;

     "MEMORANDUM OF AGREEMENT" means the agreement (as from time to time amended
     or novated) for the purchase and sale of the Vessel dated 31 March 1997 and
     made between the Guarantor and the Seller;

     "MORTGAGE" means a first preferred Liberian ship mortgage over the Vessel
     to be granted by the Guarantor to the Security Trustee pursuant to
     paragraph 1, Part 2 of the First Schedule;

     "NOTICE OF DRAWDOWN" means a notice in the form or substantially the form
     of that set out in the Second Schedule;

     "OBLIGORS" means each of the Borrower and the Guarantor;

     "PERMITTED LIENS" has the meaning ascribed to it in the Assignment of
     Earnings and Insurances;

     "PRIORITY AGREEMENT" means the agreement between the Agent, the Banks, the
     Borrower and the Guarantor and the Agent and the lenders under the Junior
     Facility Agreement regulating the priorities and the rights of enforcement
     of security between the Banks and the lenders under the Junior Facility
     Agreement;

     "QUOTATION DATE" in relation to any period for which an interest rate is to
     be determined hereunder means the day on which quotations would ordinarily
     be given by prime banks in the London Interbank Market for dollar deposits
     for delivery on the first day of that period Provided that if, for any such
     period, quotations would ordinarily be given on more than one date, the
     Quotation Date for that period shall be the last of those dates;

     "REFERENCE BANK" means the principal Oslo office of Christiania Bank og
     Kreditkasse ASA and such other banks as may from time to time be agreed
     between the Borrower and the Agent;

     "REPAYMENT DATES" means the days which fall 3, 6, 9, 12, 15, 18, 21, 24,
     27, 30, 33, 36, 39, 42, 45, 48, 51, 54, 57 and 60 months after the Drawdown
     Date;

     "RETENTION ACCOUNT" has the meaning ascribed to it in the Assignment of
     Earnings and Insurances;

     "SELLER" means Mendala II Transport, Inc.;

     "TERMINATION DATE" means the earlier of 31 May 1997 and the date on which
     the Facility Amount has been reduced to zero;

     "TRANSFER CERTIFICATE" means a certificate in the form set out in the Third
     Schedule (or such other form as may be agreed between the relevant Bank,
     the proposed Transferee, the Agent

<PAGE>

     and the Borrower pursuant to Clause 26.3 (ASSIGNMENTS AND TRANSFERS BY
     BANKS)) signed by a Bank and a Transferee whereby:

          (i)  such Bank seeks to procure the transfer to such Transferee of all
               or a part of such Bank's rights and obligations hereunder upon
               and subject to the terms and conditions set out in Clause 26.3
               (ASSIGNMENTS AND TRANSFERS BY BANKS); and

          (ii) such Transferee undertakes to perform the obligations it will
               assume as a result of delivery of such certificate to the
               Borrower as is contemplated in Clause 26.4 (TRANSFERS BY BANKS)

     "TRANSFER DATE" in relation to any Transfer Certificate means the date for
     the making of the transfer as specified in the schedule to such Transfer
     Certificate;

     "TRANSFEREE" means a bank or other financial institution to which a Bank
     seeks to transfer all or part of such Bank's rights and obligations
     hereunder;

     "TRUST DEED" means a security trust deed of the date hereof entered into
     between the Security Trustee, the Borrower, the Guarantor and the Banks
     pursuant to paragraph 4, Part 2 of the First Schedule;

     "VESSEL" means the vessel known as m/t "ALTA" more particularly described
     in the Mortgage.

1.2  Any reference in this Agreement to:

     the Agent, the Security Trustee, or the Banks shall be construed so as to
     include their respective successors, Transferees and permitted assigns in
     accordance with their respective interests;

     a "BUSINESS DAY" shall be construed as a reference to a day (other than a
     Saturday or Sunday) on which banks are generally open for business in
     London and New York City;

     a "CHARTER" shall be construed as a reference to any agreement (including
     the Charter) pursuant to which the Vessel is, or will be, employed;

     a "CLAUSE" shall, subject to any contrary indication, be construed as a
     reference to a clause hereof;

     an "ENCUMBRANCE" shall be construed as a reference to a mortgage, charge,
     pledge, lien or other encumbrance securing any obligation of any person or
     any other type of preferential arrangement (including, without limitation,
     title transfer and retention arrangements) having a similar effect;

     the "EQUIVALENT" in one currency (in this paragraph the "FIRST CURRENCY")
     of an amount denominated in another currency (in this paragraph the "SECOND
     CURRENCY") on any date shall, save as otherwise provided, be construed as a
     reference to the amount of the first

<PAGE>

     currency which could be purchased with that amount of the second currency
     at the spot rate of exchange quoted by the Agent at or about 11.00 a.m. on
     such date for the purchase of the first currency with the second currency
     for delivery on the second business day thereafter;

     a "GUARANTEE" includes any guarantee, indemnity or other obligation to pay,
     purchase, provide funds for the payment of or indemnify against the
     consequences of default in the payment of indebtedness of any other person
     and any encumbrance which secures the payment of any indebtedness of any
     other person;

     a "HOLDING COMPANY" of a company or corporation shall be construed as a
     reference to any company or corporation of which the first-mentioned
     company or corporation is a subsidiary;

     "INDEBTEDNESS" shall be construed so as to include any obligation (whether
     incurred as principal or as surety) for the payment or repayment of money,
     whether present or future, actual or contingent;

     a "MONTH" is a reference to a period starting on one day in a calendar
     month and ending on the numerically corresponding day in the next calendar
     month save that, where any such period would otherwise end on a day which
     is not a business day, it shall end on the next business day, unless that
     day falls in the calendar month succeeding that in which it would otherwise
     have ended, in which case it shall end on the preceding business day
     Provided that, if a period starts on the last business day in a calendar
     month or if there is no numerically corresponding day in the month in which
     that period ends, that period shall end on the last business day in that
     later month (and references to "MONTHS" shall be construed accordingly);

     a "PERSON" shall be construed as a reference to any person, firm, company,
     corporation, government, state or agency of a state or any association or
     partnership (whether or not having separate legal personality) of two or
     more of the foregoing;

     a "SCHEDULE" shall, subject to any contrary indication, be construed as a
     reference to a schedule hereto;

     a "SUBSIDIARY" of a company or corporation shall be construed as a
     reference to any company or corporation:

           (i) which is controlled, directly or indirectly, by the
               first-mentioned company or corporation;

          (ii) more than half the issued share capital of which is beneficially
               owned, directly or indirectly, by the first-mentioned company or
               corporation; or

         (iii) which is a subsidiary of another subsidiary of the
               first-mentioned company or corporation

     and, for these purposes, a company or corporation shall be treated as being
     controlled by another if that other company or corporation is able to
     direct its affairs and/or to control the composition of its board of
     directors or equivalent body;

<PAGE>

     "TAX" shall be construed so as to include any present or future tax, levy,
     impost, duty or other charge of a similar nature (including, without
     limitation, any penalty or interest payable in connection with any failure
     to pay or any delay in paying any of the same);

     "TOTAL LOSS" includes any actual, constructive, arranged, agreed or
     compromised total loss, any requisitioning for title and the capture,
     seizure, arrest, detention, or confiscation of the Vessel by any
     government, or by persons purporting to act on behalf of any government,
     unless the Vessel be released and restored to the Owner from such capture,
     seizure, detention or confiscation within one month after the date thereof;
     and

     the "WINDING-UP" or "DISSOLUTION" of a company or limited partnership shall
     be construed so as to include any equivalent or analogous proceedings under
     the law of the jurisdiction in which such company or limited partnership is
     incorporated or established or any jurisdiction in which such company or
     limited partnership carries on business.

1.3  "$" and "DOLLARS" denote lawful currency of the United States of America.

1.4  Save where the contrary is indicated, any reference in this Agreement to:

          (i)  this Agreement or any other agreement or document shall be
               construed as a reference to this Agreement or, as the case may
               be, such other agreement or document as the same may have been,
               or may from time to time be, amended, varied or supplemented;

         (ii)  a statute shall be construed as a reference to such statute as
               the same may have been, or may from time to time be, amended or
               re-enacted; and

        (iii)  a time of day shall be construed as a reference to London time.

1.5  Clause headings are for ease of reference only.

1.6  For the purposes of the Financing Documents, a total loss of the Vessel
     shall be deemed to have occurred:

          (i)  if it consists of an actual total loss, at noon Greenwich Mean
               Time on the actual date of loss or, if that is not known, on the
               date on which she was last heard of;

         (ii)  if it consists of a requisitioning for title, at noon Greenwich
               Mean Time on the date on which the same is expressed to take
               effect by the person making the same; and

        (iii)  if it consists of a constructive or compromised or arranged or
               agreed total loss, at noon Greenwich Mean Time on the date at
               which notice of her abandonment is given to her insurers for the
               time being or (if her insurers for the time being do not admit
               the claim for total loss) at the time on which a total loss is
               subsequently adjudged to have occurred by a competent court or
               arbitration tribunal or liability in respect thereof as a total
               loss is admitted by

<PAGE>

               underwriters.

2.   THE FACILITY

     The Banks hereby grant to the Borrower, upon the terms and subject to the
     conditions hereof, a loan facility in the maximum amount of $27,000,000.

3.   PURPOSE

     The purpose of the Facility is to provide the Borrower with funds so that
     the Borrower can assist the Guarantor in financing the purchase of the
     Vessel and, accordingly, the Borrower shall apply all of the amounts raised
     by it hereunder in or towards such purpose (but so that the Banks shall not
     be obliged to concern itself with the application of amounts borrowed by
     the Borrower hereunder).

4.   CONDITIONS PRECEDENT

     The Borrower shall not be entitled to give any Notice of Drawdown hereunder
     unless the Agent shall have confirmed to the Borrower by telex or letter
     that it has received five days prior to the proposed Drawdown Date each of
     the documents specified in Part 1 of the First Schedule and found the same
     to be satisfactory to it in form and substance.

5.   NATURE OF BANKS' RIGHTS AND OBLIGATIONS

5.1  OBLIGATIONS OF BANKS SEVERAL

     The obligations of each Bank hereunder are several.

5.2  FAILURE OF ANY BANK TO PERFORM OBLIGATIONS

     The failure by a Bank to perform its obligations hereunder shall not affect
     the obligations of the Borrower towards any other party hereto nor shall
     any other party be liable for the failure by such Bank to perform its
     obligations hereunder.

5.3  RIGHTS OF BANKS SEVERAL

     The rights of the Banks hereunder are also several. The amount at any time
     owing by the Borrower to any party under this Agreement shall be a separate
     and independent debt from any amount owing to any other party.

6.   AVAILABILITY

6.1  THE FACILITY

     The Facility shall be made by the Banks to the Borrower by way of a single
     Advance.

<PAGE>

6.2  DRAWDOWN CONDITIONS

     Save as otherwise provided herein, the Advance will be made by the Banks to
     the Borrower on the request of the Borrower if:

           (i) not more than ten nor less than two business days before the
               proposed date for the making of the Advance the Agent has
               received from the Borrower a Notice of Drawdown therefor, receipt
               of which shall oblige the Borrower to borrow the amount therein
               requested on the date therein stated upon the terms and subject
               to the conditions contained herein;

          (ii) the amount stated in the Notice of Drawdown shall not be more
               than the lesser of the amount of the Facility Amount and 68% of
               the purchase price of Vessel as set out in the Memorandum of
               Agreement;

         (iii) the Drawdown Date is a business day which is or precedes the
               Termination Date;

          (iv) on or before the Drawdown Date the Agent has received from the
               Borrower each of the documents specified in Part 2 of the First
               Schedule and found the same to be satisfactory to it in both form
               and substance;

           (v) the interest rate applicable to the Advance during its first
               Interest Period does not fall to be determined pursuant to the
               proviso to Clause 7.2 (DURATION OF INTEREST PERIODS); and

          (vi) (a) no event has occurred which is or may become (with the
                   passage of time, the giving of notice, the making of any
                   determination hereunder or any combination thereof) an Event
                   of Default; and

               (b) the representations set out in Clause 12 (REPRESENTATIONS)
                   are true on and as of the proposed date for the making of
                   such Advance

          or the Banks agree (notwithstanding any matter mentioned at (a) or (b)
          above) that the Advance should be made.

7.   INTEREST PERIODS

7.1  INTEREST PERIODS

     The period for which the Advance is outstanding shall be divided into
     successive periods each of which (other than the first) shall start on the
     last day of the preceding such period.

<PAGE>

7.2  DURATION OF INTEREST PERIODS

     The duration of each Interest Period relating to the Advance shall, save as
     otherwise provided herein, be one, three, six or twelve months, or any such
     other period as may be agreed from time to time between the Borrower and
     the Agent, in each case as the Borrower may select by not less than three
     business days' prior notice to the Agent Provided that:

          (i)  if the Borrower selects a duration of twelve months in relation
               to an Interest Period, then:

               (a)  the Borrower may, at the same time, notify the Agent of an
                    alternative selection of three or six months to apply if the
                    Borrower's selection becomes ineffective pursuant to (b)
                    below; and

               (b)  any Bank may, at any time before 9.00 a.m. on the second
                    business day preceding the first day of such Interest
                    Period, notify the Agent that it objects to the Borrower's
                    selection, whereupon such selection shall become ineffective
                    Provided that no such objection shall be given except for
                    reason of the non availability to such Bank of dollars for
                    twelve months interest periods in the London Inter-bank
                    Market;

          (ii) if the Borrower fails to give such notice of its selection in
               relation to an Interest Period, or if its selection becomes
               ineffective under (i)(b) above and the Borrower has failed to
               give the Agent any permitted alternative selection pursuant to
               (i)(a) above, then the duration of that Interest Period shall,
               subject to (iii) below, be three months;

         (iii) the Borrower may not select an Interest Period of one month more
               than three times during any calendar year; and

          (iv) any Interest Period which would otherwise end during the month
               preceding, or extend beyond, the Final Repayment Date shall be of
               such duration that it shall end on the Final Repayment Date.

7.3  If pursuant to Clause 7.2 the Borrower selects an Interest Period for an
     Advance which will extend beyond one or more Repayment Dates, then such
     Advance shall be divided into parts such that on such (or each such)
     Repayment Date there will be a part in an amount equal to the amount
     scheduled to be repaid on that Repayment Date, each such part to constitute
     an Advance and to have an Interest Period ending on that Repayment Date.

8.   INTEREST

8.1  PAYMENT OF INTEREST

     On the last day of each Interest Period (and, in the case of an Interest
     Period of a duration of twelve months, on the last day of the sixth of
     those months) the Borrower shall pay accrued

<PAGE>

     interest on the Advance to which such Interest Period relates.

8.2  CALCULATION OF INTEREST

     The rate of interest applicable to the Advance from time to time during an
     Interest Period relating thereto shall be the rate per annum which is the
     sum of the Margin and LIBOR for such Interest Period Provided that if LIBOR
     for an Interest Period falls to be determined in accordance with the
     proviso to the definition thereof but none of the Reference Banks was
     offering to prime banks in the London Interbank Market dollar deposits for
     the proposed duration of such Interest Period, the rate of interest
     applicable to the Advance to which such Interest Period relates from time
     to time during such Interest Period shall be the rate per annum which is
     the sum of the Margin and the rate per annum notified to the Agent by each
     Bank before the last day of such Interest Period to be that which expresses
     as a percentage rate per annum the cost to it of funding such Advance
     during such Interest Period from whatever sources it may select and the
     Agent shall notify the Borrower accordingly.

9.   REPAYMENT AND PREPAYMENT

9.1  REPAYMENT

     The Borrower shall repay the Loan in instalments by repaying on each
     Repayment Date an amount as set out below:

<TABLE>
<CAPTION>
         REPAYMENT DATE NO.                                      INSTALMENT PAYABLE IN $000

         <S>                                                     <C>
                   1                                                         700
                   2                                                         700
                   3                                                         700
                   4                                                         700
                   5                                                         800
                   6                                                         800
                   7                                                         800
                   8                                                         800
                   9                                                         900
                  10                                                         900
                  11                                                         900
                  12                                                         900
                  13                                                        1000
                  14                                                        1000
                  15                                                        1000
                  16                                                        1000
                  17                                                        1100
                  18                                                        1100
                  19                                                        1100
                  20                                                      10,100
</TABLE>

<PAGE>

9.2  PREPAYMENT

     The Borrower may, if it has given to the Agent not less than fifteen (15)
     business days' prior notice to that effect, prepay the whole or any part of
     the Advance (but if in part being an amount or integral multiple of
     $100,000) on the last day of an Interest Period relating thereto. Any
     prepayment made by the Borrower pursuant to this Clause shall satisfy the
     Borrower's remaining obligations under Clause 9.1 (REPAYMENT) in inverse
     order of maturity.

9.3  NOTICE OF PREPAYMENT

     Any notice of prepayment given by the Borrower pursuant to Clause 9.2
     (PREPAYMENT) shall be irrevocable and shall specify the date upon which
     such prepayment is to be made and the amount thereof and shall oblige the
     Borrower to make such prepayment on such date.

9.4  MANDATORY PREPAYMENT

     Subject to any amounts agreed between the Banks and either Obligor to be
     retained by such Obligor to meet any docking expenses, if either Obligor
     holds cash in its accounts (excluding any amounts credited to the Retention
     Account) on a Repayment Date which (after making the repayment and payment
     of interest due on such date) is in excess of $500,000 plus any amount that
     the Agent has agreed may be paid to any parties by way of distributions,
     any such excess amount shall be applied by such Obligor in making a
     prepayment of the Advance on the succeeding Repayment Date (in addition to
     any other amounts then falling due) together with any amounts which may
     fall due under Clause 17.4 (BROKEN PERIODS). Any such amount so prepaid
     will be applied against the Borrower's obligations under Clause 9.1
     (REPAYMENT) in inverse order of maturity.

9.5  PREPAYMENT FEE

     If the Borrower makes any prepayment pursuant to Clause 9.2 (PREPAYMENT)
     otherwise than out of its own resources generated by the operations of the
     Vessel, the Borrower shall be obliged, together with such prepayment, to
     pay a prepayment fee equal to one quarter of one per cent. (1/4%) of the
     amount so prepaid Provided that no such fee shall be payable if such
     prepayment was made either (i) pursuant to a refinancing of the Loan
     granted by Christiania Bank og Kreditkasse ASA or by a syndicate of banks
     of which Christiania Bank og Kreditkasse ASA is an agent or an underwriter
     or (ii) during the 12 months preceding the Final Repayment Date.

9.6  NO OTHER REPAYMENTS OR REBORROWING

     No amount repaid or prepaid hereunder may be reborrowed.

10.  TAXES AND TAX RECEIPTS

10.1 TAX GROSS-UP

     All payments to be made by the Borrower to any person under any of the
     Financing

<PAGE>

     Documents shall be made free and clear of and without deduction for or on
     account of tax unless the Borrower is required to make such a payment
     subject to the deduction or withholding of tax, in which case the sum
     payable by the Borrower in respect of which such deduction or withholding
     is required to be made shall be increased to the extent necessary to ensure
     that, after the making of such deduction or withholding, such person
     receives and retains (free from any liability in respect of any such
     deduction or withholding) a net sum equal to the sum which it would have
     received and so retained had no such deduction or withholding been made or
     required to be made.

10.2 TAX INDEMNITY

     Without prejudice to the provisions of Clause 10.1 (TAX GROSS-UP), if any
     person or the Agent on its behalf is required to make any payment on
     account of tax or otherwise (not being a tax imposed on the net income of
     the Facility Office by the jurisdiction in which it is incorporated or in
     which the Facility Office is located) on or in relation to any sum received
     or receivable by such person under any of the Financing Documents
     (including, without limitation, any sum received or receivable under this
     Clause 10) or any liability in respect of any such payment is asserted,
     imposed, levied or assessed against the such person, the Borrower shall,
     upon demand of the Agent, promptly indemnify the such person against such
     payment or liability, together with any interest, penalties and expenses
     payable or incurred in connection therewith Provided that if a Bank or the
     Agent or the Security Trustee considers that it is reasonable to do so and
     that it would not be otherwise prejudiced thereby, it will, prior to
     instructing the Agent to make a demand under this Clause 10.2, use
     reasonable endeavours to determine whether any such payment or liability
     was correctly or legally imposed or asserted.

10.3 CLAIMS BY A BANK

     If a Bank intends to make a claim pursuant to Clause 10.2 (TAX INDEMNITY)
     it shall notify the Agent of the event by reason of which it is entitled to
     do so whereupon the Agent shall notify the Borrower accordingly.

10.4 NOTIFICATION OF REQUIREMENT TO DEDUCT TAX

     If, at any time, the Borrower is required by law to make any deduction or
     withholding from any sum payable by it under any of the Financing Documents
     (or if thereafter there is any change in the rates at which or the manner
     in which such deductions or withholdings are calculated), the Borrower
     shall promptly notify the Agent, whereupon the Agent shall notify the Banks
     and the Security Trustee accordingly.

<PAGE>

10.5 EVIDENCE OF PAYMENT OF TAX

     If the Borrower makes any payment under any of the Financing Documents in
     respect of which it is required to make any deduction or withholding, it
     shall pay the full amount required to be deducted or withheld to the
     relevant taxation or other authority within the time allowed for such
     payment under applicable law and shall deliver to the Agent, within thirty
     days after it has received the same, an original receipt (or a certified
     copy thereof) issued by such authority evidencing the payment to such
     authority of all amounts so required to be deducted or withheld in respect
     of such payment.

11.  CHANGES IN CIRCUMSTANCES

11.1 INCREASED COSTS

     If, by reason of (a) any change in law or in its interpretation or
     administration and/or (b) compliance with any Capital Adequacy Requirement
     or any request from or requirement of any central bank or other fiscal,
     monetary or other authority:

           (i) a Bank or any holding company of such Bank incurs a cost as a
               result of such Bank having entered into and/or performing its
               obligations under this Agreement and/or assuming or maintaining a
               commitment under this Agreement and/or making its advance
               hereunder;

          (ii) a Bank or any holding company of such Bank is unable to obtain
               the rate of return on its overall capital which it would have
               been able to obtain but for such Bank having entered into and/or
               performing its obligations and/or assuming or maintaining a
               commitment under this Agreement;

         (iii) there is any increase in the cost to a Bank or any holding
               company of such Bank of funding or maintaining all or any of the
               advances comprised in a class of advances formed by or including
               the advance made or to be made by such Bank hereunder; or

          (iv) a Bank or any holding company of such Bank becomes liable to make
               any payment on account of tax or otherwise (not being a tax
               imposed on the net income of the Facility Office by the
               jurisdiction in which such Bank is incorporated or in which the
               Facility Office is located) on or calculated by reference to the
               amount of the Advance made or to be made hereunder and/or by
               reference to any sum received or receivable by such Bank
               hereunder,

     then the Borrower shall, from time to time on demand of the Agent, promptly
     pay to the Agent for the account of such Bank amounts sufficient to
     indemnify it (or,as the case may be, to enable it to indemnify its holding
     company) against, as the case may be, (1) such cost, (2) such reduction in
     such rate of return (or such proportion of such reduction as is, in the
     opinion of such Bank, attributable to its obligations hereunder), (3) such
     increased cost (or such proportion of such increased cost as is, in the
     opinion of such Bank, attributable to its

<PAGE>

     funding or maintaining its advance hereunder) or (4) such liability.

11.2 INCREASED COSTS CLAIMS

     If a Bank intends to make a claim pursuant to Clause 11.1 (INCREASED COSTS)
     it shall notify the Agent of the event by reason of which it is entitled to
     do so whereupon the Agent shall notify the Borrower accordingly.

11.3 ILLEGALITY

     If at any time it is unlawful for a Bank to make its portion of the Advance
     or to fund or allow to remain outstanding its portion of the Loan, then
     that Bank shall, promptly after becoming aware of such fact, deliver to the
     Agent who will deliver to the Borrower a certificate to that effect
     whereupon:

           (i) if no Advance has been made hereunder, the Bank shall not
               thereafter be obliged to make the Advance hereunder and its
               Facility Commitment shall be reduced to zero; and

          (ii) if the Advance has already been made hereunder, then, if the
               Agent on behalf of any relevant Bank so requires, the Borrower
               shall on such date as the Agent shall have specified repay such
               Bank's portion of the Loan in full together with accrued interest
               thereon.

11.4 MITIGATION

     (a) If circumstances arise which would (or would upon the giving of notice)
     result in:

           (i) the reduction of a Bank's portion of the Loan pursuant to Clause
               11.3 (ILLEGALITY);

          (ii) the prepayment of the Loan pursuant to Clause 11.3 (ILLEGALITY);

         (iii) an increase in the amount of any payment pursuant to Clause 10.1
               (TAX GROSS-UP); or

          (iv) a claim by a Bank for indemnification pursuant to Clause 10.2
               (TAX INDEMNITY) or a claim by a Bank for indemnification pursuant
               to Clause 11.1 (INCREASED COST),

               then, without in any way limiting, reducing or otherwise
               qualifying the obligations of the Borrower under any of the
               Clauses referred to above, such a Bank shall, in consultation
               with the Agent and the Borrower, take such reasonable steps as
               may be reasonably open to it to mitigate the effects of such
               circumstances, including by transferring its Facility Office
               to another jurisdiction or by assigning its rights hereunder
               to another financial institution approved by the Borrower
               Provided that such Bank shall have no obligation to transfer
               its Facility Office or assign its rights hereunder as
               aforesaid if it is of the opinion that to do so would or might
               have an

<PAGE>

                    adverse effect on its business, operations or financial
                    condition.

               (b)  If circumstances arise which would result in the Security
                    Trustee being entitled pursuant to Clause 4.5 of the Trust
                    Deed to exercise its rights to make deductions and
                    withholdings from payments made to the Agent hereunder, the
                    Security Trustee shall, in consultation with the Borrower,
                    take such reasonable steps as may be reasonably open to it
                    to mitigate the effects of such circumstances Provided that
                    the Security Trustee shall have no obligation to do so if it
                    is of the opinion that to do so would or might have an
                    adverse effect on its business operations or financial
                    condition. This sub-clause (b) shall not in any way limit,
                    reduce or otherwise qualify the obligations of the Borrower
                    set out in Clause 4.3 of the Trust Deed.

12.  REPRESENTATIONS

12.1 Subject to any reservations and/or qualifications as to matters of law
     which may be made in the legal opinions referred to in paragraphs 3, 4 and
     5 of Part 1 of the First Schedule, the Borrower represents that:

           (i) STATUS  It is a limited partnership and the Guarantor is a
               company both duly organised under the laws of the Cayman
               Islands and each of the General Partners is a corporation or
               company duly organised under the laws of the State of
               Delaware, USA or as the case may be, the Cayman Islands with
               power to enter into the Financing Documents on behalf of the
               Borrower and to exercise its rights and perform its
               obligations under such Financing Documents on behalf of the
               Borrower and the Borrower is duly qualified as a foreign
               maritime entity in Liberia with the power to register the
               Vessel in the office of the Deputy Commissioner of Maritime
               Affairs of the Republic of Liberia in New York;

          (ii) DUE AUTHORISATION  All corporate and other action required to
               authorise the execution by each Obligor of the Financing
               Documents to which it is a party and its performance of its
               obligations under such Financing Documents has been duly taken;

         (iii) NO DEDUCTIONS OR WITHHOLDING  Under the laws of the Cayman
               Islands and Liberia in force at the date hereof, no Obligor will
               be required to make any deduction or withholding from any payment
               it may make under any of the Financing Documents;

          (iv) CLAIMS PARI PASSU  Without prejudice to the security constituted
               by or pursuant to any Financing Documents to which it is a party
               under the laws of the Cayman Islands and Liberia in force at the
               date hereof, the claims of the Agent, the Bank and the Security
               Trustee against each Obligor under any Financing Documents will,
               to the extent that such claims exceed the realised value of the
               security therefor, rank at least PARI PASSU with the claims of
               all its other unsecured and non-subordinated creditors save those
               whose claims are preferred solely by any bankruptcy, insolvency
               or other similar laws of general application;

<PAGE>

           (v) NO IMMUNITY  In any proceedings taken in the Cayman Islands in
               relation to any of the Financing Documents to which it is a
               party, neither Obligor will be entitled to claim for itself or
               any of its assets immunity from suit, execution, attachment or
               other legal process;

          (vi) GOVERNING LAW AND JUDGMENTS  In any proceedings taken in the
               Cayman Islands in relation to any of the Financing Documents, the
               choice of English law as the governing law of those of such
               Financing Documents as are expressed to be governed by English
               law and any judgment obtained in England will be recognised and
               enforced;

         (vii) VALIDITY AND ADMISSIBILITY IN EVIDENCE  Other than the recording
               of the Mortgage at the office of the Deputy Commissioner of
               Maritime Affairs of the Republic of Liberia in New York and any
               required registration in the Cayman Islands, all acts, conditions
               and things required to be done, fulfilled and performed in order
               (a) to enable each Obligor lawfully to enter into, exercise its
               rights under and perform and comply with the obligations
               expressed to be assumed by it in the Financing Documents to which
               it is a party, (b) to ensure that the obligations expressed to be
               assumed by each Obligor in such Financing Documents are legal,
               valid and binding and (c) to make such Financing Documents
               admissible in evidence in the Cayman Islands have been done,
               fulfilled and performed;

        (viii) NO FILING OR STAMP TAXES  Under the laws of the Cayman Islands
               in force at the date hereof, it is not necessary that any of the
               Financing Documents be filed, recorded or enrolled with any court
               or other authority in its jurisdiction of incorporation or that
               any stamp, registration or similar tax be paid on or in relation
               to any such Financing Documents; and

          (ix) BINDING OBLIGATION  The obligations expressed to be assumed by
               each Obligor in the Financing Documents to which it is a party
               are legal and valid obligations binding on it in accordance with
               the terms of such Financing Documents.

12.2 The Borrower further represents in relation to each Obligor that:

           (i) NO WINDING-UP  Neither Obligor has taken any corporate action nor
               have any other steps been taken or legal proceedings been started
               or (to the best of its knowledge and belief) threatened against
               it or either of the General Partners for its winding-up,
               dissolution or reorganisation or for the appointment of a
               receiver, administrator, administrative receiver, trustee or
               similar officer of it or of any or all of its assets or revenues;

          (ii) NO MATERIAL DEFAULT  Neither Obligor nor either of the General
               Partners is in breach of or in default under any agreement to
               which it is a party or which is binding on it or any of its
               assets to an extent or in a manner which might have a material
               adverse effect on its business or financial condition;

<PAGE>

         (iii) NO MATERIAL PROCEEDINGS  No action or administrative proceeding
               of or before any court or agency which might have a material
               adverse effect on either Obligor's business or financial
               condition has been started or threatened;

          (iv) NO OTHER BUSINESS  Neither Obligor has incurred any liabilities
               or entered into any other commitments nor undertaken any
               business other than in connection with the purchase or
               operation of the Vessel;

           (v) NO UNDISCLOSED LIABILITIES  As at the date hereof neither Obligor
               has liabilities (contingent or otherwise) which have not been
               disclosed to the Agent nor any unrealised or anticipated losses
               arising from commitments entered into by it;

          (vi) FULL DISCLOSURE  Each of the Charter, the Charter Guarantee, the
               Memorandum of Agreement and the Management Agreement are in full
               force and effect and the Borrower has disclosed to the Agent all
               of the terms and conditions of each such agreement and there are
               no amendments or variations to any such document which have not
               been disclosed to the Agent;

         (vii) NO OBLIGATION TO CREATE SECURITY  The execution of the Financing
               Documents to which each Obligor is a party and its exercise of
               its rights and performance of its obligations thereunder will not
               result in the existence of nor oblige it to create any
               encumbrance over all or any of its present or future revenues or
               assets except pursuant to such Financing Documents;

        (viii) EXECUTION OF FINANCING DOCUMENTS  The execution of the Financing
               Documents to which each Obligor is a party and its exercise of
               its rights and performance of its obligations under such
               Financing Documents do not constitute and will not result in any
               breach of any agreement or treaty;

          (ix) ENCUMBRANCES  Save as permitted by Clause 15(ix), no encumbrance
               exists over all or any of the present or future revenues or
               assets of each Obligor;

           (x) OWNERSHIP OF THE BORROWER  The General Partners are the only
               general partners of the Borrower;

          (xi) OWNERSHIP OF THE GUARANTOR  The Guarantor is a wholly-owned
               subsidiary of the Borrower; and

         (xii) MANAGEMENT OF THE VESSEL  The Vessel will be managed by Universe
               Tankships (Delaware) LLC in accordance with the provisions of the
               Management Agreement.

<PAGE>

13.  INFORMATION COVENANTS

13.1 ANNUAL STATEMENTS

     The Borrower shall as soon as the same become available, but in any event
     within one hundred and eighty days after the end of each of their
     respective financial years, furnish to the Agent, the Obligors' and the
     Charter Guarantor's balance sheets as at the end of such financial year and
     the Obligors' and the Charter Guarantor's profit-and-loss accounts in
     respect of that financial year, in each case prepared in accordance with
     internationally accepted accounting principles consistently applied.

13.2 SEMI-ANNUAL STATEMENTS

     The Borrower shall as soon as the same become available, but in any event
     within 90 days after the end of each of its financial half years in each of
     their respective financial years, deliver to the Agent, the Obligors' and
     the Charter Guarantor's balance sheets as at the end of such accounting
     period and the Obligors' and the Charter Guarantor's profit-and-loss
     accounts in respect of that accounting period, together with the Obligors'
     cash flow reports for such period in each case prepared in accordance with
     internationally accepted accounting principles consistently applied.

13.3 NOTIFICATION OF EVENT OF DEFAULT

     The Borrower shall promptly inform the Agent of the occurrence of any event
     which is or may become (with the passage of time, the giving of notice, the
     making of any determination hereunder or any combination thereof) an Event
     of Default and, upon receipt of a written request to that effect from the
     Agent, promptly deliver to the Agent a written confirmation given by a duly
     authorised officer of the Borrower to the effect that, save as previously
     notified to the Agent or as notified in such confirmation, no such event
     has occurred.

13.4 NOTIFICATION OF OFF-HIRE

     The Borrower shall procure that the Guarantor promptly inform the Agent of
     any material interruption in the operation of the Vessel (which shall
     include situations where the Vessel is off-hire for a period of 5 days or
     more at any one time) and the financial implications of such interruption.

13.5 OTHER FINANCIAL INFORMATION

     The Borrower shall from time to time on the request of the Agent use its
     best endeavours to furnish the Agent with such other information about the
     Obligors' and the Charter Guarantor's business, assets and financial
     condition (including financial accounts and cash flow reports) as the Agent
     may reasonably request.

<PAGE>

14.  FINANCIAL CONDITION

14.1 FAIR MARKET VALUE OF VESSEL

     The Borrower shall ensure that at all times during the term of the Loan,
     the Fair Market Value of the Vessel as established by R.S. Platou and H
     Clarkson Limited or such other two (2) reputable brokers appointed by the
     Agent (after consultation with the Borrower) shall equal or exceed 140% of
     the Loan. If at any time such ratio is not met, the Borrower will forthwith
     on the demand of the Agent prepay such portion of the Loan as will ensure
     that such ratio is complied with. The Agent shall be entitled to request
     such estimates of the Fair Market Value at least twice per calendar year
     (or at any time after the occurrence of an Event of Default) and the
     Borrower shall promptly pay or reimburse to the Agent the cost of obtaining
     such valuations.

14.2 MINIMUM WORKING CAPITAL

     The Borrower shall maintain from time to time Working Capital (which shall
     mean Current Assets less Current Liabilities) which, when aggregated with
     the Working Capital of the Guarantor is at least $750,000.

14.3 NOTIFICATION OF FINANCIAL CONDITION The Borrower shall deliver to the Agent
     a certificate stating the Borrower's compliance with the covenants
     undertaken pursuant to this Clause 14 with each of the semi-annual
     financial statements delivered pursuant to Clause 13.2.

14.4 For the purposes of Clause 14.2:

     "CURRENT ASSETS" means all assets of the Borrower which, in accordance with
     internationally accepted accounting principles, would be classed as current
     assets; and

     "CURRENT LIABILITIES" means all obligations of the Borrower which, in
     accordance with internationally accepted accounting principles, would be
     considered as current liabilities, excluding all amounts of principal due
     under this Facility within one year from the date of calculation.

15.  GENERAL COVENANTS

     The Borrower:

          (i)  shall obtain, comply with the terms of and do all that is
               necessary to maintain in full force and effect all
               authorisations, approvals, licences and consents required in or
               by the laws and regulations of the Cayman Islands and Liberia and
               all other applicable jurisdictions to enable it lawfully to enter
               into and perform its obligations under the Financing Documents to
               which it is a party or to ensure the legality, validity,
               enforceability or admissibility in evidence the Cayman Islands
               and Liberia and all other applicable jurisdictions of the
               Financing Documents;

<PAGE>

          (ii) shall procure that no change of the classification or flag of the
               Vessel, management of the Vessel or the Charter shall occur
               without the prior written consent of the Agent;

         (iii) shall, in the event of total loss of the Vessel, procure that
               the Loan is repaid in full within 90 days of the Agent's written
               notice (whether as a result of the application of insurance
               proceeds by the Guarantor or otherwise);

          (iv) shall not, without the prior written consent of the Agent, (such
               consent not to be unreasonably withheld) permit any distributions
               of the Borrower's profits or assets or pay any dividends or other
               distributions to any of its partners, save for distributions to
               its partners for the payment of United States of America income
               taxes, if any, resulting from their investment in the Borrower
               but not in an amount greater than the taxes that would have been
               payable if the Borrower had been a United States of America tax
               resident corporation and provided further that any such
               distribution in respect of such tax liability may only be made
               with the prior written consent of the Agent;

          (v)  shall not make any loans, grant any credit (save in the ordinary
               course of business) or give any guarantee or indemnity to or for
               the benefit of any person or otherwise voluntarily assume any
               liability, whether actual or contingent, in respect of any
               obligations of any person;

          (vi) shall not, without prior written consent of the Agent, make any
               investments with the assets of the Borrower (otherwise than by
               placing its cash into bank accounts with the Agent) except for
               any investments required to maintain the classification status of
               the Vessel;

         (vii) shall not, without the prior written consent of the Instructing
               Group change its partnership agreement or permit any change to
               the shareholders of the General Partners or its partners;

        (viii) shall and shall ensure that the Guarantor maintains all its
               bank accounts with the Agent's branch in New York and shall
               ensure that the Guarantor shall only operate such accounts in
               accordance with Clause 11 of the Assignment of Earnings and
               Insurances;

          (ix) shall not, without the prior consent of the Agent, create or
               permit to subsist any encumbrance over all or any of its present
               or future revenues or assets other than the Permitted Liens and
               any encumbrance created pursuant to the Financing Documents and
               any second priority security over the Vessel and its earnings,
               insurances and bank accounts in favour of the Security Trustee on
               terms acceptable to the Agent to secure the Borrower's
               obligations under the Junior Facility Agreement;

           (x) shall manage its business and procure that the Vessel is managed
               in compliance with all applicable laws and regulations applicable
               thereto and shall promptly notify the Agent of any non-compliance
               other than of a minor

<PAGE>

               or technical nature.

          (xi) shall not engage in any other business other than the ownership
               of the Guarantor;

         (xii) shall procure that the Vessel is at all times fully approved by
               the major oil companies specified in the Management Agreement;
               and

        (xiii) shall upon notice and within the time frame set by the Agent
               enter into one or more Interest Rate Swap Agreement with any
               Banks and shall enter into such amendment or additions to the
               Financing Documents as the Agent may reasonably require to ensure
               that the Borrower's obligations under any such Interest Rate Swap
               Agreement are secured on the same security as is provided by the
               Financing Documents and with the same priority as is accorded to
               the Banks hereunder.

16.  EVENTS OF DEFAULT

16.1 If:

           (i) FAILURE TO PAY  The Obligors or as the case may be, the Charterer
               or the Charter Guarantor fails to pay any sum due from it under
               this Agreement or the Guarantee or as the case may be, under the
               Charter or Charter Guarantee at any time, in the currency and in
               the manner specified therein Provided that it shall not be an
               Event of Default if any sums due under the Charter or the Charter
               Guarantee is paid by the Charterer or as the case may be, the
               Charter Guarantor within 5 business days of the due date for
               payment as specified therein; or

          (ii) MISREPRESENTATION  Any representation or statement made by either
               Obligor in any Financing Document to which it is a party or in
               any notice or other document, certificate or statement delivered
               by it pursuant hereto or thereto or in connection herewith or
               therewith is or proves to have been incorrect or misleading in
               any material respect when made; or

         (iii) COVENANTS  The Borrower fails duly to perform the obligations
               expressed to be assumed by it in Clause 14 (FINANCIAL CONDITION)
               or 15 (GENERAL COVENANTS) or the Guarantor fails duly to perform
               the obligations expressed to be assumed by it Clause 5 of the
               Guarantee; or

          (iv) INSURANCE  The Guarantor fails to insure the Vessel in accordance
               with the requirements of the Assignment of Earnings and
               Insurances and/or the Mortgage; or

<PAGE>

           (v) OTHER OBLIGATION  Either Obligor fails duly to perform or comply
               with any other obligation expressed to be assumed by it in any
               Financing Document to which it is a party and such failure is not
               remedied within thirty days after the Agent has given notice to
               either Obligor requiring the same to be remedied; or

          (vi) CROSS DEFAULT  If (a) any indebtedness of either of the Obligors
               or any General Partner or the Charterer or the Charter Guarantor
               is not paid when due (or within any period of grace applicable
               thereto), (b) any indebtedness of either of the Obligors or any
               General Partner or the Charterer or the Charter Guarantor is
               declared to be or otherwise becomes due and payable prior to its
               specified maturity or (c) any creditor of either of the Obligors
               or any General Partner or the Charterer or the Charter Guarantor
               become entitled to declare any indebtedness of either of the
               Obligors or any General Partner or the Charterer or the Charter
               Guarantor due and payable prior to its specified maturity
               Provided that it shall not be an Event of Default if, with
               respect to any General Partners, the events specified in (a), (b)
               and (c) above are genuinely disputed by such General Partner in
               appropriate legal proceedings; or

         (vii) INSOLVENCY AND RESCHEDULING  Either Obligor or any General
               Partner or the Charterer or the Charter Guarantor is unable to
               pay its debts as they fall due, commences negotiations with any
               one or more of its creditors with a view to the general
               readjustment or rescheduling of its indebtedness or makes a
               general assignment for the benefit of or a composition with its
               creditors; or

        (viii) WINDING-UP  Otherwise than for the purposes of a reconstruction
               on terms previously approved by the Instructing Group, either
               Obligor or any General Partner or the Charterer or the Charter
               Guarantor takes any corporate action or other steps are taken or
               legal proceedings are started for its winding-up, dissolution or
               re-organisation or for the appointment of a receiver,
               administrator, administrative receiver, trustee or similar
               officer of it or of any or all of its revenues and assets; or

          (ix) REPUDIATION  Either Obligor or any General Partner or the
               Charterer or the Charter Guarantor repudiates any Financing
               Document or, as the case may be, the Charter or the Charter
               Guarantee or does or causes to be done any act or thing
               evidencing an intention to repudiate any such Financing Document
               of Charter or Charter Guarantee; or

<PAGE>

           (x) LEGALITY OF FINANCING DOCUMENTS  At any time any act,
               condition or thing required to be done, fulfilled or performed
               in order (a) to enable either Obligor lawfully to enter into,
               exercise its rights under and perform its obligations
               expressed to be assumed by it in the Financing Documents to
               which it is a party, (b) to ensure that the obligations
               expressed to be assumed by either Obligor in such Financing
               Documents are legal, valid and binding or (c) to make any such
               Financing Documents admissible in evidence in the Cayman
               Islands or Liberia is not done, fulfilled or performed; or

          (xi) COMPLIANCE WITH OBLIGATIONS  At any time it is or becomes
               unlawful for either Obligor to perform or comply with any or
               all of its obligations under any Financing Document to which
               it is a party or any of the obligations of either Obligor
               under such Financing Document are not or cease to be legal,
               valid and binding; or

         (xii) SEIZURE BY GOVERNMENT  By or under the authority of any
               government, (a) the management of either Obligor is wholly or
               partially displaced or the authority of either Obligor in the
               conduct of its business is wholly or partially curtailed or (b)
               the whole or any part (the market value of which is twenty per
               cent. or more of the market value of the whole) of its revenues
               or assets is seized, nationalised, expropriated or compulsorily
               acquired; or

        (xiii) MATERIAL ADVERSE CHANGE  There shall occur any event or
               circumstance which in the opinion of the Instructing Group may,
               or may be likely to, materially and adversely affect the ability
               of either Obligor or the Charter or the Charterer Guarantor to
               discharge its obligations under the Financing Documents to which
               it is a party or as the case may be, the Charter or the Charter
               Guarantee in the manner provided therein; or

         (xiv) VARIATION OR TERMINATION OF AGREEMENTS  Either of the Memorandum
               of Agreement or the Charter Guarantee is amended in any material
               manner without the prior written consent of the Agent or
               terminated otherwise than by reason of the due discharge of all
               obligations of each of the parties thereto or if any party
               thereto is in breach of any of its obligations thereunder; or

          (xv) MANAGEMENT AGREEMENT  If there is any material amendment to the
               Management Agreement or the Management Agreement is terminated or
               otherwise ceases to be effective without the Agent's prior
               written consent; or

         (xvi) JUNIOR FACILITY  Any event of default (howsoever described)
               occurs under the Junior Facility Agreement; or

        (xvii) PARTNERSHIP/OWNERSHIP STRUCTURE  If there is any change of any
               of the partners in the Borrower or to either General Partner or
               any of their respective shareholders or to the shareholding of
               the Guarantor without the prior written consent of the
               Instructing Group; or

<PAGE>

       (xviii) ANALOGOUS EVENT  If any event occurs to either Obligor, any
               General Partner the Charterer or the Charter Guarantor under the
               laws of any other jurisdiction which is analogous to any of the
               events or circumstances referred to in paragraphs (vii) or (viii)
               above provided that any such event shall not be an Event of
               Default if it occurs to the Charterer or the Charterer Guarantor
               after the termination of the Charter or the Charter Guarantee in
               accordance with the terms specified therein,

          then, and in any such case and at any time thereafter, the Agent shall
          if so instructed by the Instructing Group, by written notice to the
          Borrower:

          (a)  declare the Loan to be immediately due and payable (whereupon the
               same shall become so payable together with accrued interest
               thereon and any other sums then owed by the Borrower hereunder)
               or declare the Loan to be due and payable on demand of the Agent;
               and/or

          (b)  declare that the Facility Amount shall be cancelled, whereupon
               the same shall be cancelled and the amount thereof reduced to
               zero.

16.2 ADVANCE DUE ON DEMAND

     If, pursuant to Clause 16.1, the Agent declares the Loan to be due and
     payable on demand of the Agent, then, and at any time thereafter, the Agent
     may by written notice to the Borrower:

               (i)  call for repayment of the Loan on such date as it may
                    specify in such notice (whereupon the same shall become due
                    and payable on such date together with accrued interest
                    thereon and any other sums then owed by the Borrower
                    hereunder) or withdraw its declaration with effect from such
                    date as it may specify in such notice; and/or

               (ii) select as the duration of any Interest Period relating to an
                    Advance which begins whilst such declaration remains in
                    effect a period of six months or less.

17.  DEFAULT INTEREST AND INDEMNITY

17.1 DEFAULT INTEREST PERIODS

     If any sum due and payable by the Borrower hereunder is not paid on the due
     date therefor in accordance with the provisions of Clause 19 (PAYMENTS) or
     if any sum due and payable by the Borrower under any judgment of any court
     in connection with this Agreement is not paid on the date of such judgment,
     the period beginning on such due date or, as the case may be, the date of
     such judgment and ending on the date upon which the obligation of the
     Borrower to pay such sum (the balance thereof for the time being unpaid
     being herein referred to as an "UNPAID SUM") is discharged shall be divided
     into successive periods, each of which (other than the first) shall start
     on the last day of the preceding such period and the duration of each of
     which shall be selected by the Agent.

<PAGE>

17.2 DEFAULT INTEREST

     During each such period relating thereto as is mentioned in Clause 17.1
     (DEFAULT INTEREST PERIODS) an unpaid sum shall bear interest at the rate
     per annum which is the sum from time to time of one per cent., the Margin
     and LIBOR for that period Provided that:

          (i)  if, for any such period, LIBOR falls to be determined pursuant to
               the proviso to the definition thereof but none of the Reference
               Banks was offering dollar deposits for the period aforesaid, the
               rate of interest applicable to such unpaid sum shall be
               determined by reference to the cost to each Bank of obtaining
               such deposits from such sources as it may select as notified to
               the Agent; and

          (ii) if such unpaid sum is all or part of the Advance which became due
               and payable on a day other than the last day of an Interest
               Period relating thereto, the first such period applicable thereto
               shall be of a duration equal to the unexpired portion of that
               Interest Period and the rate of interest applicable thereto
               during such period shall be that which exceeds by one per cent.
               the rate which would have been applicable to it had it not so
               fallen due.

17.3 PAYMENT OF DEFAULT INTEREST

     Any interest which shall have accrued under Clause 17.2 (DEFAULT INTEREST)
     in respect of an unpaid sum shall be due and payable and shall be paid by
     the Borrower at the end of the period by reference to which it is
     calculated or on such other dates as the Agent may specify by written
     notice to the Borrower.

17.4 BROKEN PERIODS

     If any Bank receives or recovers all or any part of such Bank's share of
     the Advance otherwise than on the last day of an Interest Period relating
     to the Advance, the Borrower shall pay to the Agent on demand an amount
     equal to the amount (if any) by which (a) the additional interest which
     would have been payable on the amount so received or recovered had it been
     received or recovered on the last day of that Interest Period exceeds (b)
     the amount of interest which in the opinion of the Agent would have been
     payable to the Agent on the last day of that Interest Period in respect of
     a dollar deposit equal to the amount so received or recovered placed by it
     with a prime bank in London for a period starting on the third business day
     following the date of such receipt or recovery and ending on the last day
     of that Interest Period.

17.5 BORROWER'S INDEMNITY

     The Borrower undertakes:

          (i)  to indemnify each of the Agent, each Bank and the Security
               Trustee against any loss or expense, including legal fees on a
               full indemnity basis, which any of them may sustain or incur as a
               consequence of any default by the

<PAGE>

               Borrower in the performance of any of the obligations expressed
               to be assumed by it in any of the Financing Documents to which it
               is a party; and

          (ii) to indemnify each Bank against any loss it may suffer as a result
               of its funding its share of the Advance requested by the Borrower
               hereunder but not made by reason of the operation of any one or
               more of the provisions hereof.

17.6 Any unpaid sum shall (for the purposes of this Clause 17 and Clause 11.1
     (INCREASED COST) be treated as an advance and accordingly in this Clause 17
     and Clause 11.1 (INCREASED COST) the term "Advance" includes any unpaid sum
     and the term "Interest Period", in relation to an unpaid sum, includes each
     such period relating thereto as is mentioned in Clause 17.1 (DEFAULT
     INTEREST PERIODS).

18.  CURRENCY OF ACCOUNT AND PAYMENT

18.1 CURRENCY OF ACCOUNT

     The dollar is the currency of account and payment for each and every sum at
     any time due from the Borrower hereunder Provided that each payment in
     respect of costs and expenses shall be made in the currency in which the
     same were incurred.

18.2 CURRENCY INDEMNITY

     If any sum due from the Borrower under any Financing Document to which the
     Borrower is a party or any order or judgment given or made in relation
     hereto or thereto has to be converted from the currency (the "FIRST
     CURRENCY") in which the same is payable under such Financing Document or
     order or judgment into another currency (the "SECOND CURRENCY") for the
     purpose of (i) making or filing a claim or proof against the Borrower, (ii)
     obtaining an order or judgment in any court or other tribunal or (iii)
     enforcing any order or judgment given or made in relation to any Financing
     Document, the Borrower shall indemnify and hold harmless each of the
     persons to whom such sum is due from and against any loss suffered as a
     result of any discrepancy between (a) the rate of exchange used for such
     purpose to convert the sum in question from the first currency into the
     second currency and (b) the rate or rates of exchange at which such person
     may in the ordinary course of business purchase the first currency with the
     second currency upon receipt of a sum paid to it in satisfaction, in whole
     or in part, of any such order, judgment, claim or proof.

19.  PAYMENTS

19.1 PAYMENTS

     On each date on which this Agreement requires an amount to be paid by the
     Borrower or a Bank hereunder, the Borrower or, as the case may be, such
     Bank shall make the same available to the Agent by payment in dollars and
     in same day funds (or in such other funds as may for the time being be
     customary in New York City for the settlement in New York City of
     international banking transactions in dollars) to the account of the Agent
     in Oslo or such other account as the Agent may have specified for this
     purpose.

<PAGE>

19.2 NO SET-OFF

     All payments made by the Borrower hereunder shall be made free and clear of
     and without any deduction for or on account of any set-off or counterclaim.

20.  SET-OFF

     The Borrower authorises each Bank at any time following the occurrence of
     an Event of Default to apply any credit balance to which the Borrower is
     entitled on any account of the Borrower with such Bank in satisfaction of
     any sum due and payable from the Borrower to such Bank under this Agreement
     but unpaid; for this purpose, such Bank is authorised to purchase with the
     moneys standing to the credit of any such account such other currencies as
     may be necessary to effect such application.

21.  SHARING

21.1 REDISTRIBUTION OF PAYMENTS

     If at any time, the proportion which any Bank (a "RECOVERING BANK") has
     received or recovered (whether by payment, the exercise of a right of
     set-off or combination of accounts or otherwise) in respect of its portion
     of any payment (a "RELEVANT PAYMENT") to be made under this Agreement by
     the Borrower for account of such Recovering Bank and one or more other
     Banks is greater (the portion of such receipt or recovery giving rise to
     such excess proportion being herein called an "EXCESS AMOUNT") than the
     proportion thereof so received or recovered by the Bank or Banks so
     receiving or recovering the smallest proportion thereof, then:

          (i)  such Recovering Bank shall pay to the Agent an amount equal to
               such excess amount;

          (ii) there shall thereupon fall due from such Recovering Bank an
               amount equal to the amount paid out by such Recovering Bank
               pursuant to paragraph (i) above, the amount so due being, for the
               purposes hereof, treated as if it were an unpaid part of such
               Recovering Bank's portion of such relevant payment; and

         (iii) the Agent shall treat the amount received by it from such
               Recovering Bank pursuant to paragraph (i) above as if such amount
               had been received by it from the Borrower in respect of such
               relevant payment and shall pay the same to the persons entitled
               thereto (including such Recovering Bank) PRO RATA to their
               respective entitlements thereto.

21.2 REPAYABLE RECOVERIES

     If any sum (a "RELEVANT SUM") received or recovered by a Recovering Bank in
     respect of any amount owing to it by the Borrower becomes repayable and is
     repaid by such Recovering Bank, then:

<PAGE>

          (i)  each Bank which has received a share of such relevant sum by
               reason of the implementation of Clause 19.1 (PAYMENTS) shall,
               upon request of the Agent, pay to the Agent for account of such
               Recovering Bank an amount equal to its share of such relevant
               sum; and

          (ii) there shall thereupon fall due from the Borrower to each such
               Bank an amount equal to the amount paid out by it pursuant to
               paragraph (i) above, the amount so due being, for the purposes
               hereof, treated as if it were the sum payable to such Bank
               against which such Bank's share of such relevant sum was applied.

22.  FEES

22.1 ARRANGEMENT FEE

     The Borrower shall pay to the Agent for its account as a Bank hereunder an
     arrangement fee of the amount specified in the letter exchanged between the
     Agent and Maritime Equity Management Limited dated 1st April 1997 such fee
     to be payable at the Drawdown Date.

22.2 COMMITMENT FEE

     The Borrower shall pay to the Agent for its account as a Bank hereunder a
     commitment commission on the Facility Amount from day to day during the
     period beginning on 1 May 1997 and ending on the Drawdown Date, such
     commitment commission to be calculated at the rate of one-half of one per
     cent. per annum and payable quarterly in arrears up to the Drawdown Date
     and on the Drawdown Date.

22.3 AGENCY FEE

     The Borrower shall pay to the Agent a non-refundable agency fee of the
     amount specified in the letter exchanged between the Agent and Maritime
     Equity Management Limited dated 1st April 1997, such fee to be payable on
     the Drawdown Date and on each anniversary thereof.

23.  COSTS AND EXPENSES

23.1 TRANSACTION EXPENSES

     The Borrower shall, from time to time on demand of the Agent, reimburse the
     Agent for all costs and expenses including legal fees) incurred by it in
     connection with the negotiation, preparation and execution of the Financing
     Documents and the completion of the transactions herein contemplated.

23.2 PRESERVATION AND ENFORCEMENT OF RIGHTS

     The Borrower shall, from time to time on demand of the Agent, reimburse the
     Agent, the Banks and the Security Trustee for all costs and expenses
     (including legal fees) incurred in or in connection with the preservation
     and/or enforcement of any of the rights of the Agent, the Banks and the
     Security Trustee under the Financing Documents.

<PAGE>

23.3 STAMP TAXES

     The Borrower shall pay all stamp, registration and other taxes to which any
     Financing Document or any judgment given in connection with any Financing
     Document is or at any time may be subject and shall, from time to time on
     demand of the Agent, indemnify the Security Trustee and the Bank against
     any liabilities, costs, claims and expenses resulting from any failure to
     pay or any delay in paying any such tax.

23.4 BANKS' LIABILITIES FOR COSTS

     If the Borrower fails to perform any of its obligations under this Clause
     23, each Bank shall, in the proportion borne by its share of the Loan to
     the amount of the Loan for the time being indemnify the Agent against any
     loss incurred by it as a result of such failure and the Borrower shall
     forthwith reimburse each Bank for any payment made by it pursuant to this
     Clause 23.4.

24.  THE AGENT AND THE BANKS

24.1 APPOINTMENT OF THE AGENT

     Each Bank hereby appoints the Agent to act as its agent in connection with
     this Agreement and the other Financing Documents and authorises the Agent
     to exercise such rights, powers and discretions as are specifically
     delegated to the Agent by the terms hereof together with all such rights,
     powers and discretions as are reasonably incidental thereto.

24.2 AGENT'S DISCRETIONS

     The Agent may:

          (i)  assume that:

               (a)  any representation made by the Borrower in connection with
                    this Agreement and the other Financing Documents is true;

               (b)  no event which is or may become an Event of Default has
                    occurred; and

               (c)  the Borrower is not in breach of or default under its
                    obligations with this Agreement and the other Financing
                    Documents

               unless it has actual knowledge or actual notice to the contrary;

          (ii) assume that the Facility Office of each Bank is that identified
               with its signature (or, in the case of a Transferee, at the end
               of the Transfer Certificate to which it is a party as Transferee)
               below until it has received from such Bank a notice designating
               some other office of such Bank to replace its Facility Office and
               act upon any such notice until the same is

<PAGE>

               superseded by a further such notice;

         (iii) engage and pay for the advice or services of any lawyers,
               accountants, surveyors or other experts whose advice or services
               may to it seem necessary, expedient or desirable and rely upon
               any advice so obtained;

         (iv)  rely as to any matters of fact which might reasonably be expected
               to be within the knowledge of the Borrower upon a certificate
               signed by or on behalf of the Borrower;

         (v)   rely upon any communication or document believed by it to be
               genuine;

         (vi)  refrain from exercising any right, power or discretion vested in
               it as agent hereunder unless and until instructed by an
               Instructing Group as to whether or not such right, power or
               discretion is to be exercised and, if it is to be exercised, as
               to the manner in which it should be exercised; and

         (vii) refrain from acting in accordance with any instructions of an
               Instructing Group to begin any legal action or proceeding arising
               out of or in connection with this Agreement until it shall have
               received such security as it may require (whether by way of
               payment in advance or otherwise) for all costs, claims, expenses
               (including legal fees) and liabilities which it will or may
               expend or incur in complying with such instructions.

24.3     AGENT'S OBLIGATIONS

         The Agent shall:

         (i)   promptly inform each Bank of the contents of any notice or
               document received by it from the Borrower under this Agreement
               and the other Financing Documents;

         (ii)  promptly notify each Bank of the occurrence of any Event of
               Default or any default by the Borrower in the due performance of
               or compliance with its obligations under this Agreement and the
               other Financing Documents of which the Agent has actual knowledge
               or actual notice;

         (iii) save as otherwise provided herein, act as agent hereunder in
               accordance with any instructions given to it by an Instructing
               Group, which instructions shall be binding on all the Banks; and

         (iv)  if so instructed by an Instructing Group, refrain from exercising
               any right, power or discretion vested in it as agent hereunder.

24.4 EXCLUDED OBLIGATIONS

     Notwithstanding anything to the contrary expressed or implied herein, the
     Agent shall not:

<PAGE>

         (i)   be bound to enquire as to:

               (a)  whether or not any representation made by the Borrower in
                    connection with the Financing Documents is true;

               (b)  the occurrence or otherwise of any event which is or may
                    become an Event of Default;

               (c)  the performance by the Borrower of its obligations under any
                    of the Financing Documents; or

               (d)  any breach of or default by the Borrower of or under its
                    obligations under any of the Financing Documents;

         (ii)  be bound to account to each Bank for any sum or the profit
               element of any sum received by it for its own account;

         (iii) be bound to disclose to any other person any information
               relating to the Borrower if such disclosure would or might in its
               opinion constitute a breach of any law or regulations or be
               otherwise actionable at the suit of any person; or

         (iv)  be under any obligations other than those for which express
               provision is made herein.

24.5 INDEMNIFICATION

     Each Bank shall, from time to time on demand by the Agent, indemnify the
     Agent, in the proportion its share of the Loan bears to the amount of the
     Loan at the time of such demand or, if the Loan has then been repaid in
     full, against any and all costs, claims, losses, expenses (including legal
     fees) and liabilities together with any VAT thereon which the Agent may
     incur, otherwise than by reason of its own negligence or wilful misconduct,
     in acting in its capacity as agent hereunder.

24.6 EXCLUSION OF LIABILITIES

     The Agent does not accept any responsibility for the accuracy and/or
     completeness of information supplied by the Borrower in connection herewith
     or with any other Financing Document or for the legality, validity,
     effectiveness, adequacy or enforceability of this Agreement or any other
     Financing Document and the Agent shall not be under any liability as a
     result of taking or omitting to take any action in relation to this
     Agreement or any other Financing Document, save in the case of gross
     negligence or wilful misconduct.

24.7 NO ACTION

     Each Bank agrees that it will not assert or seek to assert against any
     director, officer or employee of the Agent any claim it might have against
     any of them in respect of the matters referred to in Clause 24.6 (EXCLUSION
     OF LIABILITIES).

<PAGE>

24.8 BUSINESS WITH THE BORROWER

     The Agent and each of the Banks may accept deposits from, lend money to and
     generally engage in any kind of banking or other business with the
     Borrower.

24.9 RESIGNATION

     The Agent may resign its appointment hereunder at any time without
     assigning any reason therefor by giving not less than thirty days' prior
     written notice to that effect to each of the other parties hereto Provided
     that no such resignation shall be effective until a successor for the Agent
     is appointed in accordance with the succeeding provisions of this Clause
     24.

24.10 SUCCESSOR AGENT

     If the Agent gives notice of its resignation pursuant to Clause 24.9 then
     any reputable and experienced bank or other financial institution may be
     appointed as a successor to the Agent by an Instructing Group with the
     Borrower's consent (such consent not to be unreasonably delayed or
     withheld) during the period of such notice but, if no such successor is so
     appointed, the Agent may appoint such a successor itself.

24.11 RIGHTS AND OBLIGATIONS

     If a successor to the Agent is appointed under the provisions of Clause
     24.10 (SUCCESSOR AGENT), then (i) the retiring Agent shall be discharged
     from any further obligation hereunder but shall remain entitled to the
     benefit of the provisions of this Clause 24 and (ii) its successor and each
     of the other parties hereto shall have the same rights and obligations
     amongst themselves as they would have had if such successor had been a
     party hereto.

24.12 OWN RESPONSIBILITY

     It is understood and agreed by each Bank that it has itself been, and will
     continue to be, solely responsible for making its own independent appraisal
     of and investigations into the financial condition, creditworthiness,
     condition, affairs, status and nature of the Borrower and, accordingly,
     each Bank warrants to the Agent that it has not relied and will not
     hereafter rely on the Agent:

          (i)  to check or enquire on its behalf into the adequacy, accuracy or
               completeness of any information provided by the Borrower in
               connection with the Financing Documents or the transactions
               therein contemplated (whether or not such information has been or
               is hereafter circulated to each Bank by the Agent); or

          (ii) to assess or keep under review on its behalf the financial
               condition, creditworthiness, condition, affairs, status or nature
               of the Borrower.

<PAGE>

24.13 AGENCY DIVISION SEPARATE

     In acting as agent hereunder for the Banks, the Agent shall be regarded as
     acting through its agency division which shall be treated as a separate
     entity from any other of its divisions or departments and, notwithstanding
     the foregoing provisions of this Clause 24, any information received by
     some other division or department of the Agent may be treated as
     confidential and shall not be regarded as having been given to the Agent's
     agency division.

24.14 CONFIDENTIAL INFORMATION

     Notwithstanding anything to the contrary expressed or implied herein and
     without prejudice to the provisions of Clause 24.13 (AGENCY DIVISION
     SEPARATE), the Agent shall not as between itself and the Banks be bound to
     disclose to any Bank or other person any information which is supplied by
     Borrower to the Agent in its capacity as agent hereunder for the Banks and
     which is identified by such member of the Group at the time it is so
     supplied as being confidential information Provided that the consent of the
     Borrower to such disclosure shall not be required in relation to any
     information which in the opinion of the Agent relates to an Event of
     Default or in respect of which the Banks have given a confidentiality
     undertaking in a form satisfactory to the Agent and the Borrower.

25.  BENEFIT OF AGREEMENT

     This Agreement shall be binding upon and enure to the benefit of each party
     hereto and its successors and permitted assigns.

26.  ASSIGNMENTS AND TRANSFERS

26.1 NO ASSIGNMENT AND TRANSFER BY THE BORROWER

     The Borrower shall not be entitled to assign or transfer all or any of its
     rights, benefits and obligations hereunder.

26.2 ASSIGNMENTS AND TRANSFERS BY BANKS

     Any Bank may at any time (and at its own cost) assign or transfer all or
     any of its rights and benefits hereunder.

26.3 ASSIGNMENTS BY BANKS

     If any Bank assigns all or any of its rights and benefits hereunder in
     accordance with Clause 26.2 (ASSIGNMENTS AND TRANSFERS BY BANKS), then,
     unless and until the assignee has agreed with the Agent and the Security
     Trustee that it shall be under the same obligations towards each of them as
     it would have been under if it had been an original party hereto as a Bank,
     the Agent and the Security Trustee shall not be obliged to recognise such
     assignee as having the rights against each of them which it would have had
     if it had been such a party hereto.

<PAGE>

26.4 TRANSFERS BY BANKS

     If a Bank wishes to transfer all or any of its rights, benefits and/or
     obligations hereunder as contemplated in Clause 26.2 (ASSIGNMENTS AND
     TRANSFERS BY BANKS), then such transfer may be effected by the delivery to
     the Agent and the Borrower of a duly completed and duly executed Transfer
     Certificate in which event, on the later of the Transfer Date specified in
     such Transfer Certificate and the fifth business day after (or such earlier
     business day endorsed by the Agent on such Transfer Certificate) the date
     of delivery of such Transfer Certificate to the Agent:

          (i)  to the extent that in such Transfer Certificate such Bank seeks
               to transfer its rights and obligations hereunder, the Borrower
               and such Bank shall be released from further obligations towards
               one another hereunder and their respective rights against one
               another shall be cancelled (such rights and obligations being
               referred to in this Clause 26.4 as "DISCHARGED RIGHTS AND
               OBLIGATIONS"); and

          (ii) the Borrower and the Transferee party thereto shall assume
               obligations towards one another and/or acquire rights against one
               another which differ from such discharged rights and obligations
               only insofar as the Borrower and such Transferee have assumed
               and/or acquired the same in place of the Borrower and such Bank;

26.5 TRANSFER FEES

     On the date upon which a transfer takes effect pursuant to this Clause 26,
     the Transferee in respect of such transfer shall pay to the Agent for its
     own account a transfer fee of $500.

26.6 Any assignment or transfer which is not contemplated by the express
     provisions of this Clause 26 may only be made by a Bank with the prior
     written consent of the Borrower and in such event, the provisions of
     Clauses 26.2 (ASSIGNMENTS AND TRANSFERS BY BANKS), 26.4 (TRANSFERS BY
     BANKS) and 26.5 (TRANSFER FEES) shall apply MUTATIS MUTANDIS thereto.

26.7 DISCLOSURE OF INFORMATION

     Any Bank may, with the prior written consent of the Borrower (such consent
     not to be unreasonably withheld or delayed), disclose to any actual or
     potential assignee or to any person who may otherwise enter into
     contractual relations with such Bank in relation to this Agreement such
     information about the Borrower as such Bank and the Borrower shall consider
     appropriate.

27.  CALCULATIONS AND EVIDENCE OF DEBT

27.1 BASIS OF ACCRUAL

     Interest and commitment commission shall accrue from day to day and shall
     be calculated on the basis of a year of 360 days and the actual number of
     days elapsed.

<PAGE>

27.2 EVIDENCE OF DEBT

     Each Bank shall maintain in accordance with its usual practice accounts
     evidencing the amounts from time to time lent by and owing to it hereunder;
     in any legal action or proceeding arising out of or in connection with this
     Agreement and other Financing Documents, the entries made in such accounts
     shall be conclusive evidence of the existence and amounts of the
     obligations of the Borrower therein recorded.

27.3 CONTROL ACCOUNTS

     The Agent shall maintain on its books a control account or accounts in
     which shall be recorded (i) the amount of the Advance made hereunder by the
     Initial Bank, (ii) the amount of all principal, interest and other sums due
     or to become due from the Borrower to each of the Banks under the Financing
     Documents and (iii) the amount of any sum received or recovered by the
     Agent under the Financing Documents and each Bank's share therein. To the
     extent that discrepancies exist between accounts maintained by each Bank
     pursuant to clause 27.2 (EVIDENCE OF DEBT) and control accounts maintained
     by the Agent under this Clause 27.3, the control accounts herein maintained
     shall prevail.

27.4 PRIMA FACIE EVIDENCE

     In any legal action or proceeding arising out of or in connection with this
     Agreement and/or any other Financing Document, the entries made in the
     accounts maintained pursuant to Clause 27.2 (EVIDENCE OF DEBT) or Clause
     27.3 (CONTROL ACCOUNTS) shall be PRIMA FACIE evidence of the existence and
     extent of the obligations of the Borrower therein recorded.

27.5 CHANGE OF CIRCUMSTANCE CERTIFICATES

     A certificate of the Bank as to (a) the amount by which a sum payable to it
     hereunder is to be increased under Clause 10.1 (TAX GROSS-UP) or (b) the
     amount for the time being required to indemnify it against any such cost or
     liability as is mentioned in Clause 10.2 (TAX INDEMNITY) or 11.1 (INCREASED
     COST) shall, in the absence of manifest error, be conclusive for the
     purposes of this Agreement and PRIMA FACIE evidence in any legal action or
     proceeding arising out of or in connection with this Agreement.

28.  REMEDIES AND WAIVERS

     No failure to exercise, nor any delay in exercising, on the part of the
     Agent, any Bank and the Security Trustee or any of them, any right or
     remedy hereunder shall operate as a waiver thereof, nor shall any single or
     partial exercise of any right or remedy prevent any further or other
     exercise thereof or the exercise of any other right or remedy. The rights
     and remedies herein provided are cumulative and not exclusive of any rights
     or remedies provided by law.

<PAGE>

29.  PARTIAL INVALIDITY

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

30.  NOTICES

30.1 COMMUNICATIONS IN WRITING

     Each communication to be made hereunder shall be made in writing but,
     unless otherwise stated, may be made by telex, facsimile or letter.

30.2 COMMUNICATIONS THROUGH THE AGENT

     Each communication between the Banks and the Borrower hereunder shall only
     be effected through the Agent.

30.3 DELIVERY

     Any communication or document to be made or delivered by one party to the
     other pursuant to this Agreement shall (unless the other party has by three
     days' written notice to the one specified another address or telex or
     facsimile number) be made or delivered to that other party at the address
     or telex or facsimile number identified with its signature below and shall
     be deemed to have been made or delivered when despatched and answerback
     received (in the case of any communication made by telex) or (in the case
     of any communication made by facsimile) when legibly received or (in the
     case of any communication made by letter) when left at that address or (as
     the case may be) ten days after being deposited in the post postage prepaid
     in an envelope addressed to it at that address Provided that:

          (i)  if any such communication or document would otherwise be deemed
               to have been received on a day which is not a business day it
               shall be deemed to have been received on the first business day
               thereafter; and

          (ii) any communication or document to be made or delivered by the
               Borrower to each Bank shall be effective only when legibly
               received by the Bank and then only if the same is expressly
               marked for the attention of the department or officer identified
               with such Bank's signature below (or such other department or
               officer as such Bank shall from time to time specify for this
               purpose).

30.4 ENGLISH LANGUAGE

     Each communication and document made or delivered by one party to another
     pursuant to this Agreement shall be in the English language or accompanied
     by a translation thereof into English certified (by an officer of the
     person making or delivering the same) as being a true and accurate
     translation thereof.

<PAGE>

31.  LAW

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

32.  JURISDICTION

32.1 ENGLISH COURTS

     Each of the parties hereto irrevocably agrees for the benefit of the Agent,
     the Bank and the Security Trustee that the courts of England shall have
     jurisdiction to hear and determine any suit, action or proceeding, and to
     settle any disputes, which may arise out of or in connection with this
     Agreement and, for such purposes, irrevocably submits to the jurisdiction
     of such courts.

32.2 APPROPRIATE FORUM

     The Borrower irrevocably waives any objection which it might now or
     hereafter have to the courts referred to in Clause 32.1 (ENGLISH COURTS)
     being nominated as the forum to hear and determine any suit, action or
     proceeding, and to settle any disputes, which may arise out of or in
     connection with this Agreement and agrees not to claim that any such court
     is not a convenient or appropriate forum.

32.3 SERVICE OF PROCESS

     The Borrower agrees that the process by which any suit, action or
     proceeding in England is begun may be served on it by being delivered to
     Clifford Chance Secretaries Limited at 200 Aldersgate Street, London, EC1A
     4JJ or other its registered office for the time being.

32.4 NON-EXCLUSIVE SUBMISSIONS

     The submission to the jurisdiction of the courts referred to in Clause 32.1
     (ENGLISH COURTS) shall not (and shall not be construed so as to) limit the
     right of the Agent, the Banks or the Security Trustee to take proceedings
     against the Borrower in any other court of competent jurisdiction nor shall
     the taking of proceedings in any one or more jurisdictions preclude the
     taking of proceedings in any other jurisdiction, whether concurrently or
     not.

AS WITNESS the hands of the duly authorised representatives of the parties
hereto the day and year first before written.

<PAGE>

                               THE FIRST SCHEDULE

                          CONDITION PRECEDENT DOCUMENTS

                                     PART 1

1.     In relation to the Borrower, the Managing General Partner, the Guarantor,
the Charterer and the Charter Guarantor (herein together referred to as the
"RELEVANT PARTIES"):

       (i)    a copy, certified a true copy by a duly authorised officer of the
              Managing General Partner of the Borrower of the Borrower's
              Certificate of Registration as Limited Partnership and its Limited
              Partnership Agreement;

       (ii)   a copy, certified a true copy by a duly authorised officer of the
              Relevant Party, of the constitutive documents of such Relevant
              Party;

       (iii)  a copy, certified a true copy by a duly authorised officer of the
              Managing General Partner of the Borrower, of a Board Resolution of
              the Managing General Partner on behalf of the Borrower approving
              the execution, delivery and performance of each of the Financing
              Documents to which it is a party and the terms and conditions
              thereof and authorising a named person or persons to sign each of
              such Financing Documents and any documents to be delivered by the
              Borrower pursuant hereto;

       (iv)   a copy, certified a true copy by a duly authorised officer of the
              Charterer, of a Board Resolution of the Charterer approving the
              execution, delivery and performance of the Charter and the terms
              and conditions thereof and authorising a named person or persons
              to sign the Charter;

       (v)    a certificate of a duly authorised officer of each Relevant Party
              setting out the names and signatures of the persons authorised to
              sign, on behalf of such Relevant Party, each of the Financing
              Documents to which it is a party and the Charter or the Charter
              Guarantee (to the extent it is a party thereto) and any documents
              to be delivered pursuant thereto; and

       (vi)   a copy, certified a true copy by a duly authorised officer of the
              Managing General Partner of the Borrower of each of the powers of
              attorney, if any, issued pursuant to the resolutions or other
              authority referred to in (iii) above.

       (vii)  a copy, certified a true copy by a duly authorised officer of the
              Charter Guarantor, of a Board Resolution of the Charter Guarantor
              approving the execution, delivery and performance of the Charter
              Guarantee and the terms and conditions thereof and authorising a
              named person or persons to sign the Charter Guarantee;

       (viii) a copy certified a true copy by a duly authorised officer of the
              Managing General Partner of the Borrower of the proforma opening
              balance sheet of the Borrower evidencing its capital structure
              including the amount of its

<PAGE>

              Working Capital;

       (ix)   a certificate of a duly authorised officer of the Managing General
              Partner of the Borrower setting out the partners (both general and
              limited) of the Borrower;

       (x)    a certificate of a duly authorised officer of the Managing General
              Partner setting out the shareholders of the Managing General
              Partner; and

       (xi)   a copy, certified a true copy by a duly authorised officer of the
              Guarantor, of a Board Resolution of the Guarantor approving the
              execution, delivery and performance of each of the Financing
              Documents to which it is a party and the terms and conditions
              thereof and authorising a named person or persons to sign each
              such Financing Document.

2.     A copy of the Cayman Islands Exempted Limited Partnership Law and of each
such other law, decree, consent, licence, approval, registration or declaration
as is, in the opinion of counsel to the Banks, necessary to render the Financing
Documents and the Charter legal, valid, binding and enforceable, to make them
admissible in evidence in the Cayman Islands and Liberia and to enable the
Borrower lawfully to perform their respective obligations under the Financing
Documents.

3.     An opinion of the Banks' counsel in relation to Liberian law in a form
satisfactory to the Banks.

4.     An opinion of the Banks' Cayman Islands Counsel in a form satisfactory to
the Banks.

5.     An opinion of the Charter Guarantor's internal counsel in a form
satisfactory to the Banks relating to the Charterer and the Charter Guarantor.

6.     An opinion of Clifford Chance in a form satisfactory to the Banks.

7.     Evidence that Clifford Chance Secretaries Limited has agreed to act as
the agent of the Borrower and the Guarantor for the service of process in
England.

8.     A copy, certified to be a true copy by a duly authorised officer of the
Managing General Partner of the Borrower of the Memorandum of Agreement
showing the purchase price of the Vessel to be $39,900,000.

9.     A copy, certified to be a true copy by a duly authorised officer of the
Managing General Partner of the Borrower of the Charter.

10.    A copy of the Charter Guarantee on terms and conditions acceptable to the
Banks.

11.    Valid up-to-date class certificates from a classification society
acceptable to the Agent and showing the Vessel to be in a class acceptable to
the Agent, without extension or recommendations.

12.    Details of the manager of the Vessel and a certified true copy of the
Management Agreement in a form acceptable to the Banks.

<PAGE>

13.    A Priority Agreement between the Borrower, the Banks and the Agent under
this Agreement and the Agent and the lenders under the Junior Facility
Agreement.

14.    A copy of the Bill of Sale relating to the Vessel and any other documents
required to be produced by the Borrower pursuant to the Memorandum of Agreement.

15.    Evidence of the discharge of any existing mortgages.

<PAGE>

                                     PART 2

Each of the following documents duly executed by the Borrower:

1.     A first preferred Liberian ship mortgage over the Vessel granted by the
Guarantor in favour of the Security Trustee in a form acceptable to the Banks.

2.     An assignment of earnings and insurances agreement entered into by the
Guarantor in favour of the Security Trustee to secure the Guarantor's
obligations under the Guarantee in a form acceptable to the Banks.

3.     An assignment of the Guarantor's bank accounts in a form acceptable to
the Banks.

4.     A security trust deed whereby the Security Trustee agrees to hold the
benefit of the security created by the mortgage and the assignment of earnings
and insurances and the assignment of accounts referred to in paragraphs 1, 2 and
3 above on trust for the Beneficiaries named therein in a form acceptable to the
Banks.

5.     All notices to be given under the assignments referred to in 2 and 3
above.

6.     The Protocol of Delivery and Acceptance of the Vessel duly signed by the
Borrower and the Seller.

7.     A guarantee whereby the Guarantor guarantees the performance of the
Borrower's obligation hereunder in a form acceptable to the Banks.

8.     Evidence that the Vessel has been accepted for service under the Charter
by the Charterer for at least 5 years on terms and conditions acceptable to the
Banks.

<PAGE>

                               THE SECOND SCHEDULE

                               NOTICE OF DRAWDOWN

From:    General Maritime I, L.P.

To:      Christiania Bank og Kreditkasse ASA as Agent

Dear Sirs,

1.     We refer to the agreement (the "FACILITY AGREEMENT") dated May 1997 and
made between ourselves as borrower, yourselves as agent and security trustee and
the Banks as defined therein. Terms defined in the Facility Agreement shall have
the same meaning in this notice.

2.     We hereby give you notice that, pursuant to the Facility Agreement and
on [date of proposed borrowing], we wish to borrow the amount of [        ]
United States Dollars (being an amount equal to the lesser of the amount of
the Facility Amount and 68 per cent. of the purchase price of the m/t "ALTA"
upon the terms and subject to the conditions contained therein.

3.     We would like the Advance to have a first Interest Period of:

         First Choice: _____________________________ months' duration.

         Second Choice:* __________________________ months' duration.

4.     We further confirm that, at the date hereof, the representations set out
in Clauses 12.1 and 12.2 of the Facility Agreement are true and that no event
which is or may become (with the passage of time, the giving of notice, the
making of any determination under the Facility Agreement or any combination
thereof) an Event of Default has occurred.

5.     The proceeds of this drawdown should be credited to Alta Ltd.'s account
with the Agent's New York branch.

                                Yours faithfully

                            ------------------------
                              for and on behalf of

                            GENERAL MARITIME I, L.P.

<PAGE>

                               THE THIRD SCHEDULE

                          FORM OF TRANSFER CERTIFICATE

To:      Christiania Bank og Kreditkasse ASA (as Agent) and
         General Maritime I, L.P.

                              TRANSFER CERTIFICATE

relating to the agreement (as from time to time amended, varied, novated or
supplemented, the "FACILITY AGREEMENT") dated [            ] whereby a
US$27,000,000 loan facility was made available to [            ] (the
"BORROWER") by the Banks as defined therein in connection with which
Christiania Bank og Kreditkasse ASA acted as Agent and Security Trustee.

1.     Terms defined in the Facility Agreement shall, subject to any contrary
indication, have the same meanings herein. The terms Bank, Transferee, Bank's
Participation and Amount Transferred are defined in the schedule hereto.

2.     The Bank confirms that the Bank's Participation is an accurate summary of
its participation in the Facility Agreement and requests the Transferee to
accept and procure the transfer to the Transferee of a percentage of the Bank's
Participation (equal to the percentage that the Amount Transferred is of the
aggregate of the component amounts (as set out in the Schedule hereto) of the
Bank's Participation) by counter-signing and delivering this Transfer
Certificate to the Agent at its address for the service of notices specified in
the Facility Agreement.

3.     The Transferee hereby requests the Agent to accept this Transfer
Certificate as being delivered to the Agent pursuant to and for the purposes of
Clause 26.2 of the Facility Agreement so as to take effect in accordance with
the terms thereof on the Transfer Date or on such later date as may be
determined in accordance with the terms thereof.

4.     The Transferee warrants that it has received a copy of the Facility
Agreement together with such other information as it has required in connection
with this transaction and that it has not relied and will not hereafter rely on
the Bank to check or enquire on its behalf into the legality, validity,
effectiveness, adequacy, accuracy or completeness of any such information and
further agrees that it has not relied and will not rely on the Bank to assess or
keep under review on its behalf the financial condition, creditworthiness,
condition, affairs, status or nature of the Borrower.

5.     The Transferee hereby undertakes with the Bank and each of the other
parties to the Facility Agreement that it will perform in accordance with their
terms all those obligations which by the terms of the Facility Agreement will be
assumed by it after delivery of this Transfer Certificate to the Agent and
satisfaction of the conditions (if any) subject to which this Transfer
Certificate is expressed to take effect.

6.     The Bank makes no representation or warranty and assumes no
responsibility with respect to the legality, validity, effectiveness, adequacy
or enforceability of the Facility Agreement or any document relating thereto and
assumes no responsibility for the financial condition of the Borrower or

<PAGE>

for the performance and observance by the Borrower of any of its obligations
under the Facility Agreement or any document relating thereto and any and all
such conditions and warranties, whether express or implied by law or otherwise,
are hereby excluded.

7.     The Bank hereby gives notice that nothing herein or in the Facility
Agreement (or any document relating thereto) shall oblige the Bank to (i) accept
a re-transfer from the Transferee of the whole or any part of its rights,
benefits and/or obligations under the Facility Agreement transferred pursuant
hereto or (ii) support any losses directly or indirectly sustained or incurred
by the Transferee for any reason whatsoever including, without limitation, the
non-performance by the Borrower or any other party to the Facility Agreement (or
any document relating thereto) of its obligations under any such document. The
Transferee hereby acknowledges the absence of any such obligations under any
such document. The Transferee hereby acknowledges the absence of any such
obligation as is referred to in (i) or (ii) above.

8.     This Transfer Certificate and the rights and obligations of the parties
hereunder shall be governed by and construed in accordance with English law.

                                    SCHEDULE

1.       Bank:

2.       Transferee:

3.       Transfer Date:

4.       Bank's Participation:

         Bank's portion of the Loan:

         Bank's Commitment:

5.       Amount Transferred:

[Transferor Bank]                           [Transferee Bank]

By:                                         By:

Date:                                       Date:

                                            Address:

<PAGE>

                               THE FOURTH SCHEDULE

                                    THE BANKS

<TABLE>
<CAPTION>
BANK                                                           COMMITMENT (% OF
                                                               FACILITY AMOUNT)

<S>                                                                  <C>
Christiania Bank og Kreditkasse ASA                                  50

Union Bank of Norway                                                 50
</TABLE>

<PAGE>

EXECUTION PAGES

THE BORROWER

GENERAL MARITIME I, L.P.
acting through its Managing General Partner

GENERAL MARITIME I CORPORATION

By:               Peter C Georgiopoulos, President

Address:          c/o General Maritime Corporation
                  730 Fifth Avenue (15th Floor)
                  New York
                  NY 10019
                  USA

Attention:        Peter Georgiopoulos

Tel:              212 698 9630

Fax:              212 698 9628

THE AGENT AND SECURITY TRUSTEE

CHRISTIANIA BANK OG KREDITKASSE ASA

By:               Justin F McCarthy III, Attorney-in-Fact

Address:          PO Box 1166
                  Sentrum
                  0107 Oslo
                  Norway

Attention:        Shipping Department

Tel:              47 22 48 50 00

Fax:              47 22 48 66 68

<PAGE>

THE BANKS

CHRISTIANIA BANK OG KREDITKASSE ASA

By:               Justin F McCarthy III, Attorney-in-Fact

Address:          PO Box 1166
                  Sentrum
                  0107 Oslo
                  Norway

Attention:        Shipping Department

Tel:              47 22 48 50 00

Fax:              47 22 48 66 68

UNION BANK OF NORWAY

By:               Brad L Berman, Attorney-in-Fact

Address:          Kirkegaten 18
                  PO Box 1172
                  Sentrum
                  0107 Oslo
                  Norway

Attention:        Head of Shipping Department

Tel:              47 22 31 93 31

Fax:              47 22 31 98 30<PAGE>

                                                                CONFORMED COPY

                            JUNIOR FACILITY AGREEMENT

                                     between

                            GENERAL MARITIME I, L.P.
                                   as borrower

                       CHRISTIANIA BANK OG KREDITKASSE ASA
                          as agent and security trustee

                                       and

                       CHRISTIANIA BANK OG KREDITKASSE ASA

                                    as lender

                                 Clifford Chance
                                     London

<PAGE>

                                    CONTENTS

<TABLE>
<CAPTION>
CLAUSE                                                                      PAGE

<S>                                                                         <C>
1.   Interpretation........................................................    1
2.   The Facility..........................................................    7
3.   Purpose...............................................................    7
4.   Conditions Precedent..................................................    8
5.   Nature of Banks' Rights and Obligations...............................    8
6.   Availability..........................................................    8
7.   Interest Periods......................................................    9
8.   Interest..............................................................   10
9.   Repayment and Prepayment..............................................   10
10.  Taxes and Tax Receipts................................................   11
11.  Changes in Circumstances..............................................   13
12.  Representations.......................................................   15
13.  Information Covenants.................................................   17
14.  Financial Condition...................................................   18
15.  General Covenants.....................................................   19
16.  Events of Default.....................................................   21
17.  Default Interest and Indemnity........................................   24
18.  Currency of Account and Payment.......................................   25
19.  Payments..............................................................   26
20.  Set-Off...............................................................   26
21.  Sharing...............................................................   26
22.  Fees..................................................................   27
23.  Costs and Expenses....................................................   28
24.  The Agent and the Banks...............................................   28
25.  Benefit of Agreement..................................................   33
26.  Assignments and Transfers.............................................   33
27.  Calculations and Evidence of Debt.....................................   34
28.  Remedies and Waivers..................................................   35
29.  Partial Invalidity....................................................   35
30.  Notices...............................................................   35
31.  Law...................................................................   36
32.  Jurisdiction..........................................................   36

The First Schedule
Condition Precedent Documents................................................ 38

The Second Schedule
Notice of Drawdown........................................................... 42

The Third Schedule
Form of Transfer Certificate................................................. 43
</TABLE>

<PAGE>

THIS AGREEMENT is made on 15 May 1997

BETWEEN:

(1)     GENERAL MARITIME I, L.P.  (the "BORROWER");

(2)     CHRISTIANIA BANK OG KREDITKASSE ASA (the "INITIAL BANK");

(3)     CHRISTIANIA BANK OG KREDITKASSE ASA (in its capacity as agent, the
        "AGENT"); and

(4)     CHRISTIANIA BANK OG KREDITKASSE ASA (in its capacity as the security
        trustee, the "SECURITY TRUSTEE").

                                    RECITALS

A.      The Initial Bank has agreed to grant to the Borrower, upon the terms and
        subject to the conditions herein set forth, a loan facility in the
        amount of up to $3,000,000.

B.      By a further Loan Agreement (the "SENIOR FACILITY AGREEMENT") of even
        date herewith and made between the Borrower, the Agent, the Security
        Trustee and [Union Bank of Norway and Christiania Bank og Kreditkasse
        ASA as Banks, the Banks have agreed to lend to the Borrower a further
        sum of up to $27,000,000 secured by first ranking security over the
        assets mortgaged or charged by the Borrower to the Security Trustee
        pursuant to the Financing Documents defined therein.

NOW IT IS HEREBY AGREED  as follows:

1.      INTERPRETATION

1.1     In this Agreement:

        "ADMINISTRATIVE GENERAL PARTNER" means General Maritime (Alta) Ltd., a
        company duly incorporated under the laws of Cayman Islands;

        "ADVANCE" means, save as otherwise provided herein, the advance made or
         to be made by the Initial Bank hereunder;

        "ASSIGNMENT OF EARNINGS AND INSURANCES" means an assignment of earnings
        and insurances to be entered into by the Guarantor in favour of the
        Security Trustee named therein pursuant to paragraph 2, Part 2 of the
        First Schedule;

        "ASSIGNMENT OF ACCOUNTS" means the assignment of the Guarantor's
        accounts to be executed by the Guarantor pursuant to paragraph 3 of Part
        2 of the First Schedule;

        "BANKS" means the Initial Bank and any Transferees of the Initial Bank
        (and any subsequent Transferees) and "BANK" means each of the Banks;

<PAGE>

        "BASLE PAPER" means the paper entitled "International Convergence of
        Capital Measurement and Capital Standards" dated July 1988 and prepared
        by the Basle Committee on Banking Regulations and Supervision, as
        amended in November 1991;

        "CAPITAL ADEQUACY REQUIREMENT" means a request or requirement relating
        to the maintenance of capital, including one which makes any change to,
        or is based on any alteration in, the interpretation of the Basle Paper
        or which increases the amounts of capital required thereunder, other
        than a request or requirement made by way of implementation of the Basle
        Paper in the manner in which it is being implemented at the date hereof;

        "CAYMAN ISLANDS" means the Cayman Islands;

        "CHARTER" means the time charterparty dated 31 March 1997 (as from time
        to time amended or novated) pursuant to which the Borrower has agreed to
        charter the Vessel to the Charterer for a period of at least 5 years
        from the Drawdown Date;

        "CHARTERER" means Mendala II Transport, Inc.

        "CHARTER GUARANTEE" means the guarantee entered or to be entered into,
        pursuant to paragraph 10 Part 1 of the First Schedule by the Charter
        Guarantor and the Guarantor whereby the Charter Guarantor guarantees the
        performance of the Charterer's obligations under the charter;

        "CHARTER GUARANTOR" means OMI Corp;

        "DRAWDOWN DATE" means the date on which the Advance is made to the
        Borrower hereunder;

        "EARNINGS ACCOUNT" has the meaning ascribed to it in the Assignment of
        Earnings and Insurances;

        "EVENT OF DEFAULT" means any of those events specified in Clause 16.1
        (EVENTS OF DEFAULT);

        "FACILITY" means the dollar loan facility granted to the Borrower in
        this Agreement;

        "FACILITY AMOUNT" means an amount of up to US$3,000,000 to be advanced
        by the Banks to the Borrower;

        "FACILITY OFFICE" means in relation to a Bank, the Agent or the Security
        Trustee the office identified with the signature below (or in the case
        of a Transferee, at the end of the Transfer Certificate to which it is a
        party as Transferee) or such other office as it may from time to time
        select;

        "FAIR MARKET VALUE" means, in relation to the Vessel at any time, the
        sale value of the Vessel in dollars determined on the basis of a sale
        (for cash and prompt delivery) by a willing seller to a willing buyer,
        free of charter and encumbrances and at arm's length on normal
        commercial terms;

<PAGE>

        "FINAL REPAYMENT DATE" means the date which falls 60 months after the
        Drawdown Date;

        "FINANCING DOCUMENTS" means this Agreement, any Interest Rate Swap
        Agreement, the Trust Deed, the Mortgage, the Assignment of Earnings and
        Insurances, the Priority Agreement and the Assignment of Accounts, the
        Guarantee and any other document agreed between the Agent and the
        Borrower to be a Financing Document;

        "GUARANTEE" means the guarantee to be entered into by the Guarantor in
        favour of the Security Trust pursuant to paragraph 8, Part 2 of the
        First Schedule;

        "GUARANTOR" means Alta Ltd., a wholly-owned subsidiary of the Borrower
        in whom the ownership of the Vessel is vested;

        "GENERAL PARTNERS" means the Managing General Partner and the
        Administrative General Partner;

        "INSTRUCTING GROUP" means a Bank or group of Banks to whom in aggregate
        more than fifty per cent of the Loan is (or, immediately prior to its
        repayment, was then) owed;

        "INTEREST RATE SWAP AGREEMENT" means any interest rate swap agreement to
        be entered into by the Borrower, any Bank and the Agent pursuant to
        which the Borrower will hedge all or part of its interest costs under
        this Agreement;

        "INTEREST PERIOD" means any of those periods mentioned in Clause 7.2
        (DURATION OF INTEREST PERIODS);

        "LIBERIA" means the Republic of Liberia;

        "LIBOR" means, in relation to any period for which an interest rate is
        to be determined hereunder, the rate per annum determined by the Agent
        to be equal to the LIBOR fixing on Telerate page 3740 for deposits in
        dollars for a period corresponding to that period at 11.00 a.m. on the
        Quotation Date for that period Provided that if there are no such rates
        so appearing on such page at such time it means the rate per annum
        determined by the Agent to be equal to the arithmetic mean (rounded
        upwards, if not already such a multiple to the nearest whole multiple of
        one-sixteenth of one per cent.) of the respective rates (as notified to
        the Agent) at which the Reference Banks were offering to prime banks in
        the London Interbank Market deposits in dollars for a period
        corresponding to such period at such time;

        "LOAN" means the aggregate principal amount for the time being
        outstanding hereunder;

        "MANAGEMENT AGREEMENT" means the agreement (as from time to time amended
        or novated) to be entered into between the Guarantor and Universe
        Tankships (Delaware) LLC relating to the management of the Vessel
        pursuant to paragraph 12, Part 1 of the First Schedule;

        "MANAGING GENERAL PARTNER" means General Maritime I Corporation, a
        corporation duly incorporated under the laws of the State of Delaware,
        U.S.A;

        "MARGIN" means three per cent. (3%) per annum;

<PAGE>

        "MEMORANDUM OF AGREEMENT" means the agreement (as from time to time
        amended or novated) for the purchase and sale of the Vessel dated 31
        March 1997 and made between the Guarantor and the Seller;

        "MORTGAGE" means a first preferred Liberian ship mortgage over the
        Vessel to be granted by the Guarantor to the Security Trustee pursuant
        to paragraph 1, Part 2 of the First Schedule;

        "NOTICE OF DRAWDOWN" means a notice in the form or substantially the
        form of that set out in the Second Schedule;

        "OBLIGORS" means each of the Borrower and the Guarantor;

        "PERMITTED LIENS" has the meaning ascribed to it in the Assignment of
        Earnings and Insurances;

        "PRIORITY AGREEMENT" means the agreement between the Agent, the Banks,
        the Borrower and the Guarantor and the Agent and the Lenders under the
        Senior Facility Agreement regulating the priorities and the rights of
        enforcement of security between the Banks and the lenders under the
        Junior Facility Agreement;

        "QUOTATION DATE" in relation to any period for which an interest rate is
        to be determined hereunder means the day on which quotations would
        ordinarily be given by prime banks in the London Interbank Market for
        dollar deposits for delivery on the first day of that period Provided
        that if, for any such period, quotations would ordinarily be given on
        more than one date, the Quotation Date for that period shall be the last
        of those dates;

        "REFERENCE BANK" means the principal Oslo office of the Initial Bank and
        following the completion of any Transfer Certificates, such other banks
        as may from time to time be agreed between the Borrower and the Agent;

        "SELLER" means Mendala II Transport, Inc.;

        "TERMINATION DATE" means the earlier of 31 May 1997 and the date on
        which the Facility Amount has been reduced to zero;

        "TRANSFER CERTIFICATE" means a certificate in the form set out in the
        Third Schedule (or such other form as may be agreed between the relevant
        Bank, the proposed Transferee, the Agent and the Borrower pursuant to
        Clause 26.3 (ASSIGNMENTS AND TRANSFERS BY BANKS)) signed by a Bank and a
        Transferee whereby:

                (i)     such Bank seeks to procure the transfer to such
                        Transferee of all or a part of such Bank's rights and
                        obligations hereunder upon and subject to the terms and
                        conditions set out in Clause 26.3 (ASSIGNMENTS AND
                        TRANSFERS BY BANKS); and

                (ii)    such Transferee undertakes to perform the obligations it
                        will assume as a result of delivery of such certificate
                        to the Borrower as is contemplated in

<PAGE>

                      Clause 26.4 (TRANSFERS BY BANKS)

        "TRANSFER DATE" in relation to any Transfer Certificate means the date
        for the making of the transfer as specified in the schedule to such
        Transfer Certificate;

        "TRANSFEREE" means a bank or other financial institution to which a Bank
        seeks to transfer all or part of such Bank's rights and obligations
        hereunder;

        "TRUST DEED" means a security trust deed of the date hereof entered into
        between the Security Trustee, the Borrower, the Guarantor and the
        Initial Bank pursuant to paragraph 4, Part 2 of the First Schedule;

        "VESSEL" means the vessel known as m/t "ALTA" more particularly
        described in the Mortgage.

1.2     Any reference in this Agreement to:

        the Agent, the Security Trustee, or the Banks shall be construed so as
        to include their respective successors, Transferees and permitted
        assigns in accordance with their respective interests;

        a "BUSINESS DAY" shall be construed as a reference to a day (other than
        a Saturday or Sunday) on which banks are generally open for business in
        London and New York City;

        a "CHARTER" shall be construed as a reference to any agreement
        (including the Charter) pursuant to which the Vessel is, or will be,
        employed;

        a "CLAUSE" shall, subject to any contrary indication, be construed as a
        reference to a clause hereof;

        an "ENCUMBRANCE" shall be construed as a reference to a mortgage,
        charge, pledge, lien or other encumbrance securing any obligation of any
        person or any other type of preferential arrangement (including, without
        limitation, title transfer and retention arrangements) having a similar
        effect;

        the "EQUIVALENT" in one currency (in this paragraph the "FIRST
        CURRENCY") of an amount denominated in another currency (in this
        paragraph the "SECOND CURRENCY") on any date shall, save as otherwise
        provided, be construed as a reference to the amount of the first
        currency which could be purchased with that amount of the second
        currency at the spot rate of exchange quoted by the Agent at or about
        11.00 a.m. on such date for the purchase of the first currency with the
        second currency for delivery on the second business day thereafter;

        a "GUARANTEE" includes any guarantee, indemnity or other obligation to
        pay, purchase, provide funds for the payment of or indemnify against the
        consequences of default in the payment of indebtedness of any other
        person and any encumbrance which secures the payment of any indebtedness
        of any other person;

        a "HOLDING COMPANY" of a company or corporation shall be construed as a
        reference to any

<PAGE>

        company or corporation of which the first-mentioned company or
        corporation is a subsidiary;

        "INDEBTEDNESS" shall be construed so as to include any obligation
        (whether incurred as principal or as surety) for the payment or
        repayment of money, whether present or future, actual or contingent;

        a "MONTH" is a reference to a period starting on one day in a calendar
        month and ending on the numerically corresponding day in the next
        calendar month save that, where any such period would otherwise end on a
        day which is not a business day, it shall end on the next business day,
        unless that day falls in the calendar month succeeding that in which it
        would otherwise have ended, in which case it shall end on the preceding
        business day Provided that, if a period starts on the last business day
        in a calendar month or if there is no numerically corresponding day in
        the month in which that period ends, that period shall end on the last
        business day in that later month (and references to "MONTHS" shall be
        construed accordingly);

        a "PERSON" shall be construed as a reference to any person, firm,
        company, corporation, government, state or agency of a state or any
        association or partnership (whether or not having separate legal
        personality) of two or more of the foregoing;

        a "SCHEDULE" shall, subject to any contrary indication, be construed as
        a reference to a schedule hereto;

        a "SUBSIDIARY" of a company or corporation shall be construed as a
        reference to any company or corporation:

                (i)     which is controlled, directly or indirectly, by the
                        first-mentioned company or corporation;

                (ii)    more than half the issued share capital of which is
                        beneficially owned, directly or indirectly, by the
                        first-mentioned company or corporation; or

                (iii)   which is a subsidiary of another subsidiary of the
                        first-mentioned company or corporation

        and, for these purposes, a company or corporation shall be treated as
        being controlled by another if that other company or corporation is able
        to direct its affairs and/or to control the composition of its board of
        directors or equivalent body;

        "TAX" shall be construed so as to include any present or future tax,
        levy, impost, duty or other charge of a similar nature (including,
        without limitation, any penalty or interest payable in connection with
        any failure to pay or any delay in paying any of the same);

        "TOTAL LOSS" includes any actual, constructive, arranged, agreed or
        compromised total loss, any requisitioning for title and the capture,
        seizure, arrest, detention, or confiscation of the Vessel by any
        government, or by persons purporting to act on behalf of any government,
        unless the Vessel be released and restored to the Owner from such
        capture, seizure, detention or confiscation within one month after the
        date thereof; and

<PAGE>

        the "WINDING-UP" or "DISSOLUTION" of a company or limited partnership
        shall be construed so as to include any equivalent or analogous
        proceedings under the law of the jurisdiction in which such company or
        limited partnership is incorporated or established or any jurisdiction
        in which such company or limited partnership carries on business.

1.3     "$" and "DOLLARS" denote lawful currency of the United States of
        America.

1.4     Save where the contrary is indicated, any reference in this Agreement
        to:

                (i)     this Agreement or any other agreement or document shall
                        be construed as a reference to this Agreement or, as the
                        case may be, such other agreement or document as the
                        same may have been, or may from time to time be,
                        amended, varied or supplemented;

                (ii)    a statute shall be construed as a reference to such
                        statute as the same may have been, or may from time to
                        time be, amended or re-enacted; and

                (iii)   a time of day shall be construed as a reference to
                        London time.

1.5     Clause headings are for ease of reference only.

1.6     For the purposes of the Financing Documents, a total loss of the Vessel
        shall be deemed to have occurred:

                (i)     if it consists of an actual total loss, at noon
                        Greenwich Mean Time on the actual date of loss or, if
                        that is not known, on the date on which she was last
                        heard of;

                (ii)    if it consists of a requisitioning for title, at noon
                        Greenwich Mean Time on the date on which the same is
                        expressed to take effect by the person making the same;
                        and

                (iii)   if it consists of a constructive or compromised or
                        arranged or agreed total loss, at noon Greenwich Mean
                        Time on the date at which notice of her abandonment is
                        given to her insurers for the time being or (if her
                        insurers for the time being do not admit the claim for
                        total loss) at the time on which a total loss is
                        subsequently adjudged to have occurred by a competent
                        court or arbitration tribunal or liability in respect
                        thereof as a total loss is admitted by underwriters.

2.      THE FACILITY

        The Initial Bank hereby grants to the Borrower, upon the terms and
        subject to the conditions hereof, a loan facility in the maximum amount
        of $3,000,000.

3.      PURPOSE

        The purpose of the Facility is to provide the Borrower with funds so
        that the Borrower can

<PAGE>

        assist the Guarantor in financing the purchase of the Vessel and,
        accordingly, the Borrower shall apply all of the amounts raised by it
        hereunder in or towards such purpose (but so that the Initial Bank shall
        not be obliged to concern itself with the application of amounts
        borrowed by the Borrower hereunder).

4.      CONDITIONS PRECEDENT

        The Borrower shall not be entitled to give any Notice of Drawdown
        hereunder unless the Agent shall have confirmed to the Borrower by telex
        or letter that it has received five days prior to the proposed Drawdown
        Date each of the documents specified in Part 1 of the First Schedule and
        found the same to be satisfactory to it in form and substance.

5.      NATURE OF BANKS' RIGHTS AND OBLIGATIONS

5.1     OBLIGATIONS OF BANKS SEVERAL

        The obligations of each Bank hereunder are several.

5.2     FAILURE OF ANY BANK TO PERFORM OBLIGATIONS

        The failure by a Bank to perform its obligations hereunder shall not
        affect the obligations of the Borrower towards any other party hereto
        nor shall any other party be liable for the failure by such Bank to
        perform its obligations hereunder.

5.3     RIGHTS OF BANKS SEVERAL

        The rights of the Banks hereunder are also several. The amount at any
        time owing by the Borrower to any party under this Agreement shall be a
        separate and independent debt from any amount owing to any other party.

6.      AVAILABILITY

6.1     THE FACILITY

        The Facility shall be made by the Banks to the Borrower by way of a
single Advance.

6.2     DRAWDOWN CONDITIONS

        Save as otherwise provided herein, the Advance will be made by the Banks
        to the Borrower on the request of the Borrower if:

                (i)     not more than ten nor less than two business days before
                        the proposed date for the making of the Advance the
                        Agent has received from the Borrower a Notice of
                        Drawdown therefor, receipt of which shall oblige the
                        Borrower to borrow the amount therein requested on the
                        date therein stated upon the terms and subject to the
                        conditions contained herein;

                (ii)    the amount stated in the Notice of Drawdown shall not be
                        more than the

<PAGE>

                        Facility Amount;

                (iii)   the aggregate sum of the amount stated in the Notice of
                        Drawdown and the amount drawndown or to be drawndown
                        under the Senior Facility Agreement shall not exceed 76%
                        of the Fair Market Value of the Vessel as determined in
                        accordance to Clause 14.1 (FAIR MARKET VALUE OF VESSEL);

                (iv)    the Drawdown Date is a business day which is or precedes
                        the Termination Date;

                (v)     on or before the Drawdown Date the Agent has received
                        from the Borrower each of the documents specified in
                        Part 2 of the First Schedule and found the same to be
                        satisfactory to it in both form and substance;

                (vi)    the interest rate applicable to the Advance during its
                        first Interest Period does not fall to be determined
                        pursuant to the proviso to Clause 7.2 (DURATION OF
                        INTEREST PERIODS); and

                (vii)   (a)     no event has occurred which is or may become
                                (with the passage of time, the giving of notice,
                                the making of any determination hereunder or any
                                combination thereof) an Event of Default; and

                        (b)     the representations set out in Clause 12
                                (REPRESENTATIONS) are true on and as of the
                                proposed date for the making of such Advance

                or the Banks agree (notwithstanding any matter mentioned at (a)
                or (b) above) that the Advance should be made.

7.      INTEREST PERIODS

7.1     INTEREST PERIODS

        The period for which the Advance is outstanding shall be divided into
        successive periods each of which (other than the first) shall start on
        the last day of the preceding such period.

7.2     DURATION OF INTEREST PERIODS

        The duration of each Interest Period relating to the Advance shall, save
        as otherwise provided herein, be one, three, six or twelve months, or
        any such other period as may be agreed from time to time between the
        Borrower and the Agent, in each case as the Borrower may select by not
        less than three business days' prior notice to the Agent Provided that:

                (i)     if the Borrower selects a duration of twelve months in
                        relation to an Interest Period, then:

                        (a)     the Borrower may, at the same time, notify the
                                Agent of an alternative selection of three or
                                six months to apply if the Borrower's selection
                                becomes ineffective pursuant to (b) below; and

<PAGE>

                        (b)     any Bank may, at any time before 9.00 a.m. on
                                the second business day preceding the first day
                                of such Interest Period, notify the Agent that
                                it objects to the Borrower's selection,
                                whereupon such selection shall become
                                ineffective Provided that no such objection
                                shall be given except for reason of the non
                                availability to such Bank of dollars for twelve
                                months interest periods in the London Inter-bank
                                Market;

                (ii)    if the Borrower fails to give such notice of its
                        selection in relation to an Interest Period, or if its
                        selection becomes ineffective under (i)(b) above and the
                        Borrower has failed to give the Agent any permitted
                        alternative selection pursuant to (i)(a) above, then the
                        duration of that Interest Period shall, subject to (iii)
                        below, be three months;

                (iii)   the Borrower may not select an Interest Period of one
                        month more than three times during any calendar year;
                        and

                (iv)    any Interest Period which would otherwise end during the
                        month preceding, or extend beyond, the Final Repayment
                        Date shall be of such duration that it shall end on the
                        Final Repayment Date.

8.      INTEREST

8.1     PAYMENT OF INTEREST

        On the last day of each Interest Period (and, in the case of an Interest
        Period of a duration of twelve months, on the last day of the sixth of
        those months) the Borrower shall pay accrued interest on the Advance to
        which such Interest Period relates.

8.2     CALCULATION OF INTEREST

        The rate of interest applicable to the Advance from time to time during
        an Interest Period relating thereto shall be the rate per annum which is
        the sum of the Margin and LIBOR for such Interest Period Provided that
        if LIBOR for an Interest Period falls to be determined in accordance
        with the proviso to the definition thereof but none of the Reference
        Banks was offering to prime banks in the London Interbank Market dollar
        deposits for the proposed duration of such Interest Period, the rate of
        interest applicable to the Advance to which such Interest Period relates
        from time to time during such Interest Period shall be the rate per
        annum which is the sum of the Margin and the rate per annum notified to
        the Agent by each Bank before the last day of such Interest Period to be
        that which expresses as a percentage rate per annum the cost to it of
        funding such Advance during such Interest Period from whatever sources
        it may select and the Agent shall notify the Borrower accordingly.

9.      REPAYMENT AND PREPAYMENT

9.1     REPAYMENT

<PAGE>

        The Borrower shall repay the Loan in full on the Final Repayment Date.

9.2     PREPAYMENT

        The Borrower may, if it has given to the Agent not less than fifteen
        (15) business days' prior notice to that effect, prepay the whole or any
        part of the Advance (but if in part being an amount or integral multiple
        of $100,000) on the last day of an Interest Period relating thereto.

9.3     NOTICE OF PREPAYMENT

        Any notice of prepayment given by the Borrower pursuant to Clause 9.2
        (PREPAYMENT) shall be irrevocable and shall specify the date upon which
        such prepayment is to be made and the amount thereof and shall oblige
        the Borrower to make such prepayment on such date.

9.4     PREPAYMENT FEE

        If the Borrower makes any prepayment pursuant to Clause 9.2 (PREPAYMENT)
        otherwise than out of its own resources generated by the operations of
        the Vessel, the Borrower shall be obliged, together with such
        prepayment, to pay a prepayment fee. The prepayment fee shall equal to:-

        (a)     for any prepayments made within 12 months of the Drawdown Date,
                7% of the amounts so prepaid;

        (b)     for any prepayments made in the period beginning 12 months and
                ending 24 months from Drawdown Date, 6.25% of the amounts so
                prepaid;

        (c)     for any prepayments made in the period beginning 24 months and
                ending 36 months from Drawdown Date, 4.5% of the amounts so
                prepaid;

        (d)     for any prepayments made in the period beginning 36 months and
                ending 48 months from Drawdown Date, 2.75% of the amounts so
                prepaid;

        (e)     for any prepayments made during the 12 months preceding the
                Final Repayment Date, 1% of the amounts so prepaid.

        Provided that no such fee shall be payable if such prepayment was made
        pursuant to a refinancing of the Loan granted by the Initial Bank or by
        a syndicate of banks of which the Initial Bank is an agent or an
        underwriter.

9.5     NO OTHER REPAYMENTS OR REBORROWING

        No amount repaid or prepaid hereunder may be reborrowed.

10.     TAXES AND TAX RECEIPTS

10.1    TAX GROSS-UP

<PAGE>

        All payments to be made by the Borrower to any person under any of the
        Financing Documents shall be made free and clear of and without
        deduction for or on account of tax unless the Borrower is required to
        make such a payment subject to the deduction or withholding of tax, in
        which case the sum payable by the Borrower in respect of which such
        deduction or withholding is required to be made shall be increased to
        the extent necessary to ensure that, after the making of such deduction
        or withholding, such person receives and retains (free from any
        liability in respect of any such deduction or withholding) a net sum
        equal to the sum which it would have received and so retained had no
        such deduction or withholding been made or required to be made.

10.2    TAX INDEMNITY

        Without prejudice to the provisions of Clause 10.1 (TAX GROSS-UP), if
        any person or the Agent on its behalf is required to make any payment on
        account of tax or otherwise (not being a tax imposed on the net income
        of the Facility Office by the jurisdiction in which it is incorporated
        or in which the Facility Office is located) on or in relation to any sum
        received or receivable by such person under any of the Financing
        Documents (including, without limitation, any sum received or receivable
        under this Clause 10) or any liability in respect of any such payment is
        asserted, imposed, levied or assessed against the such person, the
        Borrower shall, upon demand of the Agent, promptly indemnify the such
        person against such payment or liability, together with any interest,
        penalties and expenses payable or incurred in connection therewith
        Provided that if a Bank or the Agent or the Security Trustee considers
        that it is reasonable to do so and that it would not be otherwise
        prejudiced thereby, it will, prior to instructing the Agent to make a
        demand under this Clause 10.2, use reasonable endeavours to determine
        whether any such payment or liability was correctly or legally imposed
        or asserted.

10.3    CLAIMS BY A BANK

        If a Bank intends to make a claim pursuant to Clause 10.2 (TAX
        INDEMNITY) it shall notify the Agent of the event by reason of which it
        is entitled to do so whereupon the Agent shall notify the Borrower
        accordingly.

10.4    NOTIFICATION OF REQUIREMENT TO DEDUCT TAX

        If, at any time, the Borrower is required by law to make any deduction
        or withholding from any sum payable by it under any of the Financing
        Documents (or if thereafter there is any change in the rates at which or
        the manner in which such deductions or withholdings are calculated), the
        Borrower shall promptly notify the Agent, whereupon the Agent shall
        notify the Banks and the Security Trustee accordingly.

<PAGE>

10.5    EVIDENCE OF PAYMENT OF TAX

        If the Borrower makes any payment under any of the Financing Documents
        in respect of which it is required to make any deduction or withholding,
        it shall pay the full amount required to be deducted or withheld to the
        relevant taxation or other authority within the time allowed for such
        payment under applicable law and shall deliver to the Agent, within
        thirty days after it has received the same, an original receipt (or a
        certified copy thereof) issued by such authority evidencing the payment
        to such authority of all amounts so required to be deducted or withheld
        in respect of such payment.

11.     CHANGES IN CIRCUMSTANCES

11.1    INCREASED COSTS

        If, by reason of (a) any change in law or in its interpretation or
        administration and/or (b) compliance with any Capital Adequacy
        Requirement or any request from or requirement of any central bank or
        other fiscal, monetary or other authority:

                (i)     a Bank or any holding company of such Bank incurs a cost
                        as a result of such Bank having entered into and/or
                        performing its obligations under this Agreement and/or
                        assuming or maintaining a commitment under this
                        Agreement and/or making its advance hereunder;

                (ii)    a Bank or any holding company of such Bank is unable to
                        obtain the rate of return on its overall capital which
                        it would have been able to obtain but for such Bank
                        having entered into and/or performing its obligations
                        and/or assuming or maintaining a commitment under this
                        Agreement;

                (iii)   there is any increase in the cost to a Bank or any
                        holding company of such Bank of funding or maintaining
                        all or any of the advances comprised in a class of
                        advances formed by or including the advance made or to
                        be made by such Bank hereunder; or

                (iv)    a Bank or any holding company of such Bank becomes
                        liable to make any payment on account of tax or
                        otherwise (not being a tax imposed on the net income of
                        the Facility Office by the jurisdiction in which such
                        Bank is incorporated or in which the Facility Office is
                        located) on or calculated by reference to the amount of
                        the Advance made or to be made hereunder and/or by
                        reference to any sum received or receivable by such Bank
                        hereunder,

        then the Borrower shall, from time to time on demand of the Agent,
        promptly pay to the Agent for the account of such Bank amounts
        sufficient to indemnify it (or,as the case may be, to enable it to
        indemnify its holding company) against, as the case may be, (1) such
        cost, (2) such reduction in such rate of return (or such proportion of
        such reduction as is, in the opinion of such Bank, attributable to its
        obligations hereunder), (3) such increased cost (or such proportion of
        such increased cost as is, in the opinion of such Bank, attributable to
        its

<PAGE>

        funding or maintaining its advance hereunder) or (4) such liability.

11.2    INCREASED COSTS CLAIMS

        If a Bank intends to make a claim pursuant to Clause 11.1 (INCREASED
        COSTS) it shall notify the Agent of the event by reason of which it is
        entitled to do so whereupon the Agent shall notify the Borrower
        accordingly.

11.3    ILLEGALITY

        If at any time it is unlawful (i) for the Initial Bank to make the
        Advance or (ii) thereafter, any of the Banks to fund or allow to remain
        outstanding the Loan, then that Bank shall, promptly after becoming
        aware of such fact, deliver to the Agent who will deliver to the
        Borrower a certificate to that effect whereupon:

                (i)     if no Advance has been made hereunder, the Initial Bank
                        shall not thereafter be obliged to make the Advance
                        hereunder and the Facility Amount shall be reduced to
                        zero; and

                (ii)    if the Advance has already been made hereunder, then, if
                        the Agent on behalf of any relevant Bank so requires,
                        the Borrower shall on such date as the Agent shall have
                        specified repay such Bank's portion of the Loan in full
                        together with accrued interest thereon.

11.4    MITIGATION

        (a)     If circumstances arise which would (or would upon the giving of
                notice) result in:

                        (i)     the reduction of a Bank's portion of the Loan
                                pursuant to Clause 11.3 (ILLEGALITY);

                        (ii)    the prepayment of the Loan pursuant to Clause
                                11.3 (ILLEGALITY);

                        (iii)   an increase in the amount of any payment
                                pursuant to Clause 10.1 (TAX GROSS-UP); or

                        (iv)    a claim by a Bank for indemnification pursuant
                                to Clause 10.2 (TAX INDEMNITY) or a claim by a
                                Bank for indemnification pursuant to Clause 11.1
                                (INCREASED COST),

                then, without in any way limiting, reducing or otherwise
                qualifying the obligations of the Borrower under any of the
                Clauses referred to above, such a Bank shall, in consultation
                with the Agent and the Borrower, take such reasonable steps as
                may be reasonably open to it to mitigate the effects of such
                circumstances, including by transferring its Facility Office to
                another jurisdiction or by assigning its rights hereunder to
                another financial institution approved by the Borrower Provided
                that such Bank shall have no obligation to transfer its Facility
                Office or assign its rights hereunder as aforesaid if it is of
                the opinion that to do so would or might have an

<PAGE>

                adverse effect on its business, operations or financial
                condition.

        (b)     If circumstances arise which would result in the Security
                Trustee being entitled pursuant to Clause 4.5 of the Trust Deed
                to exercise its rights to make deductions and withholdings from
                payments made to the Agent hereunder, the Security Trustee
                shall, in consultation with the Borrower, take such reasonable
                steps as may be reasonably open to it to mitigate the effects of
                such circumstances Provided that the Security Trustee shall have
                no obligation to do so if it is of the opinion that to do so
                would or might have an adverse effect on its business operations
                or financial condition. This sub-clause (b) shall not in any way
                limit, reduce or otherwise qualify the obligations of the
                Borrower set out in Clause 4.3 of the Trust Deed.

12.     REPRESENTATIONS

12.1    Subject to any reservations and/or qualifications as to matters of law
        which may be made in the legal opinions referred to in paragraphs 3, 4
        and 5 of Part 1 of the First Schedule, the Borrower represents that:

                (i)     STATUS It is a limited partnership and the Guarantor is
                        a company both duly organised under the laws of the
                        Cayman Islands and each of the General Partners is a
                        corporation or company duly organised under the laws of
                        the State of Delaware, USA or as the case may be, the
                        Cayman Islands with power to enter into the Financing
                        Documents on behalf of the Borrower and to exercise its
                        rights and perform its obligations under such Financing
                        Documents on behalf of the Borrower and the Borrower is
                        duly qualified as a foreign maritime entity in Liberia
                        with the power to register the Vessel in the office of
                        the Deputy Commissioner of Maritime Affairs of the
                        Republic of Liberia in New York;

                (ii)    DUE AUTHORISATION All corporate and other action
                        required to authorise the execution by each Obligor of
                        the Financing Documents to which it is a party and its
                        performance of its obligations under such Financing
                        Documents has been duly taken;

                (iii)   NO DEDUCTIONS OR WITHHOLDING Under the laws of the
                        Cayman Islands and Liberia in force at the date hereof,
                        no Obligor will be required to make any deduction or
                        withholding from any payment it may make under any of
                        the Financing Documents;

                (iv)    CLAIMS PARI PASSU Without prejudice to the security
                        constituted by or pursuant to any Financing Documents to
                        which it is a party under the laws of the Cayman Islands
                        and Liberia in force at the date hereof, the claims of
                        the Agent, the Banks and the Security Trustee against
                        each Obligor under any Financing Documents will, to the
                        extent that such claims exceed the realised value of the
                        security therefor, rank at least PARI PASSU with the
                        claims of all its other unsecured and non-subordinated
                        creditors save those whose claims are preferred solely
                        by any bankruptcy, insolvency or other similar laws of
                        general application;

<PAGE>

                (v)     NO IMMUNITY In any proceedings taken in the Cayman
                        Islands in relation to any of the Financing Documents to
                        which it is a party, neither Obligor will be entitled to
                        claim for itself or any of its assets immunity from
                        suit, execution, attachment or other legal process;

                (vi)    GOVERNING LAW AND JUDGMENTS In any proceedings taken in
                        the Cayman Islands in relation to any of the Financing
                        Documents, the choice of English law as the governing
                        law of those of such Financing Documents as are
                        expressed to be governed by English law and any judgment
                        obtained in England will be recognised and enforced;

                (vii)   VALIDITY AND ADMISSIBILITY IN EVIDENCE Other than the
                        recording of the Mortgage at the office of the Deputy
                        Commissioner of Maritime Affairs of the Republic of
                        Liberia in New York and any required registration in the
                        Cayman Islands, all acts, conditions and things required
                        to be done, fulfilled and performed in order (a) to
                        enable each Obligor lawfully to enter into, exercise its
                        rights under and perform and comply with the obligations
                        expressed to be assumed by it in the Financing Documents
                        to which it is a party, (b) to ensure that the
                        obligations expressed to be assumed by each Obligor in
                        such Financing Documents are legal, valid and binding
                        and (c) to make such Financing Documents admissible in
                        evidence in the Cayman Islands have been done, fulfilled
                        and performed;

                (viii)  NO FILING OR STAMP TAXES Under the laws of the Cayman
                        Islands in force at the date hereof, it is not necessary
                        that any of the Financing Documents be filed, recorded
                        or enrolled with any court or other authority in its
                        jurisdiction of incorporation or that any stamp,
                        registration or similar tax be paid on or in relation to
                        any such Financing Documents; and

                (ix)    BINDING OBLIGATION The obligations expressed to be
                        assumed by each Obligor in the Financing Documents to
                        which it is a party are legal and valid obligations
                        binding on it in accordance with the terms of such
                        Financing Documents.

12.2    The Borrower further represents in relation to each Obligor that:

                (i)     NO WINDING-UP Neither Obligor has taken any corporate
                        action nor have any other steps been taken or legal
                        proceedings been started or (to the best of its
                        knowledge and belief) threatened against it or either of
                        the General Partners for its winding-up, dissolution or
                        reorganisation or for the appointment of a receiver,
                        administrator, administrative receiver, trustee or
                        similar officer of it or of any or all of its assets or
                        revenues;

                (ii)    NO MATERIAL DEFAULT Neither Obligor nor either of the
                        General Partners is in breach of or in default under any
                        agreement to which it is a party or which is binding on
                        it or any of its assets to an extent or in a manner
                        which might have a material adverse effect on its
                        business or financial condition;

<PAGE>

                (iii)   NO MATERIAL PROCEEDINGS No action or administrative
                        proceeding of or before any court or agency which might
                        have a material adverse effect on either Obligor's
                        business or financial condition has been started or
                        threatened;

                (iv)    NO OTHER BUSINESS Neither Obligor has incurred any
                        liabilities or entered into any other commitments nor
                        undertaken any business other than in connection with
                        the purchase or operation of the Vessel;

                (v)     NO UNDISCLOSED LIABILITIES As at the date hereof neither
                        Obligor has liabilities (contingent or otherwise) which
                        have not been disclosed to the Agent nor any unrealised
                        or anticipated losses arising from commitments entered
                        into by it;

                (vi)    FULL DISCLOSURE Each of the Charter, the Charter
                        Guarantee, the Memorandum of Agreement and the
                        Management Agreement are in full force and effect and
                        the Borrower has disclosed to the Agent all of the terms
                        and conditions of each such agreement and there are no
                        amendments or variations to any such document which have
                        not been disclosed to the Agent;

                (vii)   NO OBLIGATION TO CREATE SECURITY The execution of the
                        Financing Documents and its exercise of its rights and
                        performance of its obligations to which each Obligor is
                        a party thereunder will not result in the existence of
                        nor oblige it to create any encumbrance over all or any
                        of its present or future revenues or assets except
                        pursuant to such Financing Documents;

                (viii)  EXECUTION OF FINANCING DOCUMENTS The execution of the
                        Financing Documents and its exercise of its rights and
                        performance of its obligations under such Financing
                        Documents do not constitute and will not result in any
                        breach of any agreement or treaty;

                (ix)    ENCUMBRANCES Save as permitted by Clause 15(ix), no
                        encumbrance exists over all or any of the present or
                        future revenues or assets of each Obligor;

                (x)     OWNERSHIP OF THE BORROWER The General Partners are the
                        only general partners of the Borrower;

                (xi)    OWNERSHIP OF THE GUARANTOR The Guarantor is a
                        wholly-owned subsidiary of the Borrower; and

                (xii)   MANAGEMENT OF THE VESSEL The Vessel will be managed by
                        Universe Tankships (Delaware) LLC in accordance with the
                        provisions of the Management Agreement.

<PAGE>

13.     INFORMATION COVENANTS

13.1    ANNUAL STATEMENTS

        The Borrower shall as soon as the same become available, but in any
        event within one hundred and eighty days after the end of each of their
        respective financial years, furnish to the Agent, the Obligors' and the
        Charter Guarantor's balance sheets as at the end of such financial year
        and the Obligors' and the Charter Guarantor's profit-and-loss accounts
        in respect of that financial year, in each case prepared in accordance
        with internationally accepted accounting principles consistently
        applied.

13.2    SEMI-ANNUAL STATEMENTS

        The Borrower shall as soon as the same become available, but in any
        event within 90 days after the end of each of its financial half years
        in each of their respective financial years, deliver to the Agent, the
        Obligors' and the Charter Guarantor's balance sheets as at the end of
        such accounting period and the Obligors' and the Charter Guarantor's
        profit-and-loss accounts in respect of that accounting period, together
        with the Obligors' cash flow reports for such period in each case
        prepared in accordance with internationally accepted accounting
        principles consistently applied.

13.3    NOTIFICATION OF EVENT OF DEFAULT

        The Borrower shall promptly inform the Agent of the occurrence of any
        event which is or may become (with the passage of time, the giving of
        notice, the making of any determination hereunder or any combination
        thereof) an Event of Default and, upon receipt of a written request to
        that effect from the Agent, promptly deliver to the Agent a written
        confirmation given by a duly authorised officer of the Borrower to the
        effect that, save as previously notified to the Agent or as notified in
        such confirmation, no such event has occurred.

13.4    NOTIFICATION OF OFF-HIRE

        The Borrower shall procure that the Guarantor promptly inform the Agent
        of any material interruption in the operation of the Vessel (which shall
        include situations where the Vessel is off-hire for a period of 5 days
        or more at any one time) and the financial implications of such
        interruption.

13.5    OTHER FINANCIAL INFORMATION

        The Borrower shall from time to time on the request of the Agent use its
        best endeavours to furnish the Agent with such other information about
        the Obligors' and the Charter Guarantor's business, assets and financial
        condition (including financial accounts and cash flow reports) as the
        Agent may reasonably request.

14.     FINANCIAL CONDITION

14.1    FAIR MARKET VALUE OF VESSEL

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        The Borrower shall ensure that at all times during the term of the Loan,
        the Fair Market Value of the Vessel as established by R.S. Platou and H
        Clarkson Limited or such other two (2) reputable brokers appointed by
        the Agent (after consultation with the Borrower) shall equal or exceed
        140% of the Loan as defined in the Senior Facility Agreement. If at any
        time such ratio is not met, the Borrower will forthwith on the demand of
        the Agent prepay such portion of the Loan as will ensure that such ratio
        is complied with. The Agent shall be entitled to request such estimates
        of the Fair Market Value at least twice per calendar year (or at any
        time after the occurrence of an Event of Default) and the Borrower shall
        promptly pay or reimburse to the Agent the cost of obtaining such
        valuations.

14.2    MINIMUM WORKING CAPITAL

        The Borrower shall maintain from time to time Working Capital (which
        shall mean Current Assets less Current Liabilities) which, when
        aggregated with the Working Capital of the Guarantor, is at least
        $750,000.

14.3    NOTIFICATION OF FINANCIAL CONDITION The Borrower shall deliver to the
        Agent a certificate stating the Borrower's compliance with the covenants
        undertaken pursuant to this Clause 14 with each of the semi-annual
        financial statements delivered pursuant to Clause 13.2.

14.4    For the purposes of Clause 14.2:

        "CURRENT ASSETS" means all assets of the Borrower which, in accordance
        with internationally accepted accounting principles, would be classed as
        current assets; and

        "CURRENT LIABILITIES" means all obligations of the Borrower which, in
        accordance with internationally accepted accounting principles, would be
        considered as current liabilities, excluding all amounts of principal
        due under this Facility within one year from the date of calculation.

15.     GENERAL COVENANTS

        The Borrower:

                (i)     shall obtain, comply with the terms of and do all that
                        is necessary to maintain in full force and effect all
                        authorisations, approvals, licences and consents
                        required in or by the laws and regulations of the Cayman
                        Islands and Liberia and all other applicable
                        jurisdictions to enable it lawfully to enter into and
                        perform its obligations under the Financing Documents to
                        which it is a party or to ensure the legality, validity,
                        enforceability or admissibility in evidence the Cayman
                        Islands and Liberia and all other applicable
                        jurisdictions of the Financing Documents;

                (ii)    shall procure that no change of the classification or
                        flag of the Vessel, management of the Vessel or the
                        Charter shall occur without the prior written consent of
                        the Agent;

<PAGE>

                (iii)   shall, in the event of total loss of the Vessel, procure
                        that the Loan is repaid in full within 90 days of the
                        Agent's written notice (whether as a result of the
                        application of insurance proceeds by the Guarantor or
                        otherwise);

                (iv)    shall not, without the prior written consent of the
                        Agent, (such consent not to be unreasonably withheld)
                        permit any distributions of the Borrower's profits or
                        assets or pay any dividends or other distributions to
                        any of its partners save for distributions to its
                        partners for the payment of United States of America
                        income taxes, if any, resulting from their investment in
                        the Borrower but not in an amount greater than the taxes
                        that would have been payable if the Borrower had been a
                        United States of America tax resident corporation and
                        provided further that any such distribution in respect
                        of such tax liability may only be made with the prior
                        written consent of the Agent;

                (v)     shall not make any loans, grant any credit (save in the
                        ordinary course of business) or give any guarantee or
                        indemnity to or for the benefit of any person or
                        otherwise voluntarily assume any liability, whether
                        actual or contingent, in respect of any obligations of
                        any person;

                (vi)    shall not, without prior written consent of the Agent,
                        make any investments with the assets of the Borrower
                        (otherwise than by placing its cash into bank accounts
                        with the Agent) except for any investments required to
                        maintain the classification status of the Vessel;

                (vii)   shall not, without the prior written consent of the
                        Agent change its partnership agreement or permit any
                        change to the shareholders of the General Partners or
                        its partners;

                (viii)  shall and shall procure that the Guarantor maintains all
                        its bank accounts with the Agent's branch in New York
                        and shall ensure that the Guarantor shall only operate
                        such accounts in accordance with Clause 11 of the
                        Assignment of Earnings and Insurances;

                (ix)    shall not, without the prior consent of the Agent,
                        create or permit to subsist any encumbrance over all or
                        any of its present or future revenues or assets other
                        than the Permitted Liens and any encumbrance created
                        pursuant to the Financing Documents and the Financing
                        Documents referred to in the Senior Facility Agreement;

                (x)     shall manage its business and procure that the Vessel is
                        managed in compliance with all applicable laws and
                        regulations applicable thereto and shall promptly notify
                        the Agent of any non-compliance other than of a minor or
                        technical nature.

                (xi)    shall not engage in any other business other than the
                        ownership of the Guarantor;

                (xii)   shall ensure that the Vessel is at all times fully
                        approved by the major oil

<PAGE>

                        companies specified in the Management Agreement;

                (xiii)  shall upon notice and within the time frame set by the
                        Agent enter into one or more Interest Rate Swap
                        Agreement with any Banks and shall enter into such
                        amendment or additions to the Financing Documents as the
                        Agent may reasonably require to ensure that the
                        Borrower's obligations under any such Interest Rate Swap
                        Agreement are secured on the same security as is
                        provided by the Financing Documents and with the same
                        priority as is accorded to the Banks hereunder.

16.     EVENTS OF DEFAULT

16.1    If:

                (i)     FAILURE TO PAY The Obligors or as the case may be, the
                        Charterer or the Charter Guarantor fails to pay any sum
                        due from it under this Agreement or the Guarantee or as
                        the case may be, under the Charter or Charter Guarantee
                        at any time, in the currency and in the manner specified
                        therein Provided that it shall not be an Event of
                        Default if any sums due under the Charter or the Charter
                        Guarantee is paid by the Charterer or, as the case may
                        be, the Charter Guarantor within 5 business days of the
                        due date for payment specified therein; or

                (ii)    MISREPRESENTATION Any representation or statement made
                        by either Obligor in any Financing Document to which it
                        is a party or in any notice or other document,
                        certificate or statement delivered by it pursuant hereto
                        or thereto or in connection herewith or therewith is or
                        proves to have been incorrect or misleading in any
                        material respect when made; or

                (iii)   COVENANTS The Borrower fails duly to perform the
                        obligations expressed to be assumed by them in Clause 14
                        (FINANCIAL CONDITION) or 15 (GENERAL COVENANTS) or the
                        Guarantor fails duly to perform the obligations
                        expressed to be assumed by it in Clause 5 of the
                        Guarantee; or

                (iv)    INSURANCE The Guarantor fails to insure the Vessel in
                        accordance with the requirements of the Assignment of
                        Earnings and Insurances and/or the Mortgage; or

                (v)     OTHER OBLIGATION Either Obligor fails duly to perform or
                        comply with any other obligation expressed to be assumed
                        by it in any Financing Document to which it is a party
                        and such failure is not remedied within thirty days
                        after the Agent has given notice to either Obligor
                        requiring the same to be remedied; or

                (vi)    CROSS DEFAULT If (a) any indebtedness of either of the
                        Obligors or any General Partner or the Charterer or the
                        Charter Guarantor is not paid when due (or within any
                        period of grace applicable thereto), (b) any
                        indebtedness of the either of the Obligors or any
                        General Partner or the Charterer or the

<PAGE>

                        Charter Guarantor is declared to be or otherwise becomes
                        due and payable prior to its specified maturity or (c)
                        any creditor of either of the Obligors or any General
                        Partner or the Charterer or the Charter Guarantor become
                        entitled to declare any indebtedness of either of the
                        Obligors or any General Partner or the Charterer or the
                        Charter Guarantor due and payable prior to its specified
                        maturity Provided that it shall not be an Event of
                        Default if, with respect to any General Partners, the
                        events specified in (a), (b) and (c) above are genuinely
                        disputed by such General Partner in appropriate legal
                        proceedings; or

                (vii)   INSOLVENCY AND RESCHEDULING Either Obligor or any
                        General Partner or the Charterer or the Charter
                        Guarantor is unable to pay its debts as they fall due,
                        commences negotiations with any one or more of its
                        creditors with a view to the general readjustment or
                        rescheduling of its indebtedness or makes a general
                        assignment for the benefit of or a composition with its
                        creditors; or

                (viii)  WINDING-UP Otherwise than for the purposes of a
                        reconstruction on terms previously approved by the
                        Agent, either Obligor or any General Partner or the
                        Charterer or the Charter Guarantor takes any corporate
                        action or other steps are taken or legal proceedings are
                        started for its winding-up, dissolution or
                        re-organisation or for the appointment of a receiver,
                        administrator, administrative receiver, trustee or
                        similar officer of it or of any or all of its revenues
                        and assets; or

                (ix)    REPUDIATION Either Obligor or any General Partner or the
                        Charterer or the Charter Guarantor repudiates any
                        Financing Document or, as the case may be, the Charter
                        or the Charter Guarantee or does or causes to be done
                        any act or thing evidencing an intention to repudiate
                        any such Financing Document of Charter or Charter
                        Guarantee; or

                (x)     LEGALITY OF FINANCING DOCUMENTS At any time any act,
                        condition or thing required to be done, fulfilled or
                        performed in order (a) to enable either Obligor lawfully
                        to enter into, exercise its rights under and perform its
                        obligations expressed to be assumed by it in the
                        Financing Documents to which it is a party, (b) to
                        ensure that the obligations expressed to be assumed by
                        either Obligor in such Financing Documents are legal,
                        valid and binding or (c) to make any of such Financing
                        Documents admissible in evidence in the Cayman Islands
                        or Liberia is not done, fulfilled or performed; or

                (xi)    COMPLIANCE WITH OBLIGATIONS At any time it is or becomes
                        unlawful for either Obligor to perform or comply with
                        any or all of its obligations under any Financing
                        Document to which it is a party or any of the
                        obligations of either Obligor under such Financing
                        Document are not or cease to be legal, valid and
                        binding; or

<PAGE>

                (xii)   SEIZURE BY GOVERNMENT By or under the authority of any
                        government, (a) the management of either Obligor is
                        wholly or partially displaced or the authority of either
                        Obligor in the conduct of its business is wholly or
                        partially curtailed or (b) the whole or any part (the
                        market value of which is twenty per cent. or more of the
                        market value of the whole) of its revenues or assets is
                        seized, nationalised, expropriated or compulsorily
                        acquired; or

                (xiii)  MATERIAL ADVERSE CHANGE There shall occur any event or
                        circumstance which in the opinion of the Agent may, or
                        may be likely to, materially and adversely affect the
                        ability of either Obligor or the Charterer or the
                        Charter Guarantor to discharge its obligations under the
                        Financing Documents to which it is a party or as the
                        case may be, the Charter or the Charter Guarantee in the
                        manner provided therein; or

                (xiv)   VARIATION OR TERMINATION OF AGREEMENTS Either of the
                        Memorandum of Agreement or the Charter Guarantee is
                        amended in any material manner without the prior written
                        consent of the Agent or terminated otherwise than by
                        reason of the due discharge of all obligations of each
                        of the parties thereto or if any party thereto is in
                        breach of any of its obligations thereunder; or

                (xv)    MANAGEMENT AGREEMENT If there is any material amendment
                        to the Management Agreement or the Management Agreement
                        is terminated or otherwise ceases to be effective
                        without the Agent's prior written consent; or

                (xvi)   SENIOR FACILITY Any event of default (howsoever
                        described) occurs under the Senior Facility Agreement;
                        or

                (xvii)  PARTNERSHIP STRUCTURE If there is any change of any of
                        the partners in the Borrower or to either General
                        Partner or any of their respective shareholders or to
                        the shareholding of the Guarantor without the prior
                        written consent of the Agent; or

                (xviii) ANALOGOUS EVENT If any event occurs to either Obligor,
                        any General Partner the Charterer or the Charter
                        Guarantor under the laws of any other jurisdiction which
                        is analogous to any of the events or circumstances
                        referred to in paragraphs (vii) or (viii) above provided
                        that any such event shall not be an Event of Default if
                        it occurs to the Charterer or the Charterer Guarantor
                        after the termination of the Charter or the Charter
                        Guarantee in accordance with the terms specified
                        therein,

        then, and in any such case and at any time thereafter, the Agent shall
        if so instructed by the Instructing Group, by written notice to the
        Borrower:

        (a)     declare the Loan to be immediately due and payable (whereupon
                the same shall become so payable together with accrued interest
                thereon and any other sums then owed by the Borrower hereunder)
                or declare the Loan to be due and payable on demand of the
                Agent; and/or

<PAGE>

        (b)     declare that the Facility Amount shall be cancelled, whereupon
                the same shall be cancelled and the amount thereof reduced to
                zero.

16.2    ADVANCE DUE ON DEMAND

        If, pursuant to Clause 16.1, the Agent declares the Loan to be due and
        payable on demand of the Agent, then, and at any time thereafter, the
        Agent may by written notice to the Borrower:

                (i)     call for repayment of the Loan on such date as it may
                        specify in such notice (whereupon the same shall become
                        due and payable on such date together with accrued
                        interest thereon and any other sums then owed by the
                        Borrower hereunder) or withdraw its declaration with
                        effect from such date as it may specify in such notice;
                        and/or

                (ii)    select as the duration of any Interest Period relating
                        to an Advance which begins whilst such declaration
                        remains in effect a period of six months or less.

17.     DEFAULT INTEREST AND INDEMNITY

17.1    DEFAULT INTEREST PERIODS

        If any sum due and payable by the Borrower hereunder is not paid on the
        due date therefor in accordance with the provisions of Clause 19
        (PAYMENTS) or if any sum due and payable by the Borrower under any
        judgment of any court in connection with this Agreement is not paid on
        the date of such judgment, the period beginning on such due date or, as
        the case may be, the date of such judgment and ending on the date upon
        which the obligation of the Borrower to pay such sum (the balance
        thereof for the time being unpaid being herein referred to as an "UNPAID
        SUM") is discharged shall be divided into successive periods, each of
        which (other than the first) shall start on the last day of the
        preceding such period and the duration of each of which shall be
        selected by the Agent.

17.2    DEFAULT INTEREST

        During each such period relating thereto as is mentioned in Clause 17.1
        (DEFAULT INTEREST PERIODS) an unpaid sum shall bear interest at the rate
        per annum which is the sum from time to time of one per cent., the
        Margin and LIBOR for that period Provided that:

                (i)     if, for any such period, LIBOR falls to be determined
                        pursuant to the proviso to the definition thereof but
                        none of the Reference Banks was offering dollar deposits
                        for the period aforesaid, the rate of interest
                        applicable to such unpaid sum shall be determined by
                        reference to the cost to each Bank of obtaining such
                        deposits from such sources as it may select as notified
                        to the Agent; and

                (ii)    if such unpaid sum is all or part of the Advance which
                        became due and payable on a day other than the last day
                        of an Interest Period relating thereto,

<PAGE>

                        the first such period applicable thereto shall be of a
                        duration equal to the unexpired portion of that Interest
                        Period and the rate of interest applicable thereto
                        during such period shall be that which exceeds by one
                        per cent. the rate which would have been applicable to
                        it had it not so fallen due.

17.3    PAYMENT OF DEFAULT INTEREST

        Any interest which shall have accrued under Clause 17.2 (DEFAULT
        INTEREST) in respect of an unpaid sum shall be due and payable and shall
        be paid by the Borrower at the end of the period by reference to which
        it is calculated or on such other dates as the Agent may specify by
        written notice to the Borrower.

17.4    BROKEN PERIODS

        If any Bank receives or recovers all or any part of such Bank's share of
        the Advance otherwise than on the last day of an Interest Period
        relating to the Advance, the Borrower shall pay to the Agent on demand
        an amount equal to the amount (if any) by which (a) the additional
        interest which would have been payable on the amount so received or
        recovered had it been received or recovered on the last day of that
        Interest Period exceeds (b) the amount of interest which in the opinion
        of the Agent would have been payable to the Agent on the last day of
        that Interest Period in respect of a dollar deposit equal to the amount
        so received or recovered placed by it with a prime bank in London for a
        period starting on the third business day following the date of such
        receipt or recovery and ending on the last day of that Interest Period.

17.5    BORROWER'S INDEMNITY

        The Borrower undertakes:

                (i)     to indemnify each of the Agent, each Bank and the
                        Security Trustee against any loss or expense, including
                        legal fees on a full indemnity basis, which any of them
                        may sustain or incur as a consequence of any default by
                        the Borrower in the performance of any of the
                        obligations expressed to be assumed by it in any of the
                        Financing Documents to which it is a party; and

                (ii)    to indemnify each Bank against any loss it may suffer as
                        a result of its funding its share of the Advance
                        requested by the Borrower hereunder but not made by
                        reason of the operation of any one or more of the
                        provisions hereof.

17.6    Any unpaid sum shall (for the purposes of this Clause 17 and Clause 11.1
        (INCREASED COST) be treated as an advance and accordingly in this Clause
        17 and Clause 11.1 (INCREASED COST) the term "Advance" includes any
        unpaid sum and the term "Interest Period", in relation to an unpaid sum,
        includes each such period relating thereto as is mentioned in Clause
        17.1 (DEFAULT INTEREST PERIODS).

<PAGE>

18.     CURRENCY OF ACCOUNT AND PAYMENT

18.1    CURRENCY OF ACCOUNT

        The dollar is the currency of account and payment for each and every sum
        at any time due from the Borrower hereunder Provided that each payment
        in respect of costs and expenses shall be made in the currency in which
        the same were incurred.

18.2    CURRENCY INDEMNITY

        If any sum due from the Borrower under any Financing Document to which
        the Borrower is a party or any order or judgment given or made in
        relation hereto or thereto has to be converted from the currency (the
        "FIRST CURRENCY") in which the same is payable under such Financing
        Document or order or judgment into another currency (the "SECOND
        CURRENCY") for the purpose of (i) making or filing a claim or proof
        against the Borrower, (ii) obtaining an order or judgment in any court
        or other tribunal or (iii) enforcing any order or judgment given or made
        in relation to any Financing Document, the Borrower shall indemnify and
        hold harmless each of the persons to whom such sum is due from and
        against any loss suffered as a result of any discrepancy between (a) the
        rate of exchange used for such purpose to convert the sum in question
        from the first currency into the second currency and (b) the rate or
        rates of exchange at which such person may in the ordinary course of
        business purchase the first currency with the second currency upon
        receipt of a sum paid to it in satisfaction, in whole or in part, of any
        such order, judgment, claim or proof.

19.     PAYMENTS

19.1    PAYMENTS

        On each date on which this Agreement requires an amount to be paid by
        the Borrower or a Bank hereunder, the Borrower or, as the case may be,
        such Bank shall make the same available to the Agent by payment in
        dollars and in same day funds (or in such other funds as may for the
        time being be customary in New York City for the settlement in New York
        City of international banking transactions in dollars) to the account of
        the Agent in Oslo (or such other account as the Agent may have specified
        for this purpose).

19.2    NO SET-OFF

        All payments made by the Borrower hereunder shall be made free and clear
        of and without any deduction for or on account of any set-off or
        counterclaim.

<PAGE>

20.     SET-OFF

        The Borrower authorises each Bank at any time following the occurrence
        of an Event of Default to apply any credit balance to which the Borrower
        is entitled on any account of the Borrower with such Bank in
        satisfaction of any sum due and payable from the Borrower to such Bank
        under this Agreement but unpaid; for this purpose, such Bank is
        authorised to purchase with the moneys standing to the credit of any
        such account such other currencies as may be necessary to effect such
        application.

21.     SHARING

21.1    REDISTRIBUTION OF PAYMENTS

        If at any time, the proportion which any Bank (a "RECOVERING BANK") has
        received or recovered (whether by payment, the exercise of a right of
        set-off or combination of accounts or otherwise) in respect of its
        portion of any payment (a "RELEVANT PAYMENT") to be made under this
        Agreement by the Borrower for account of such Recovering Bank and one or
        more other Banks is greater (the portion of such receipt or recovery
        giving rise to such excess proportion being herein called an "EXCESS
        AMOUNT") than the proportion thereof so received or recovered by the
        Bank or Banks so receiving or recovering the smallest proportion
        thereof, then:

                (i)     such Recovering Bank shall pay to the Agent an amount
                        equal to such excess amount;

                (ii)    there shall thereupon fall due from such Recovering Bank
                        an amount equal to the amount paid out by such
                        Recovering Bank pursuant to paragraph (i) above, the
                        amount so due being, for the purposes hereof, treated as
                        if it were an unpaid part of such Recovering Bank's
                        portion of such relevant payment; and

                (iii)   the Agent shall treat the amount received by it from
                        such Recovering Bank pursuant to paragraph (i) above as
                        if such amount had been received by it from the Borrower
                        in respect of such relevant payment and shall pay the
                        same to the persons entitled thereto (including such
                        Recovering Bank) PRO RATA to their respective
                        entitlements thereto.

21.2    REPAYABLE RECOVERIES

        If any sum (a "RELEVANT SUM") received or recovered by a Recovering Bank
        in respect of any amount owing to it by the Borrower becomes repayable
        and is repaid by such Recovering Bank, then:

        (i)     each Bank which has received a share of such relevant sum by
                reason of the implementation of Clause 19.1 (PAYMENTS) shall,
                upon request of the Agent, pay to the Agent for account of such
                Recovering Bank an amount equal to its share of such relevant
                sum; and

<PAGE>

        (ii)    there shall thereupon fall due from the Borrower to each such
                Bank an amount equal to the amount paid out by it pursuant to
                paragraph (i) above, the amount so due being, for the purposes
                hereof, treated as if it were the sum payable to such Bank
                against which such Bank's share of such relevant sum was
                applied.

22.     FEES

22.1    ARRANGEMENT FEE

        The Borrower shall pay to the Agent for the account of the Initial Bank
        an arrangement fee of the amount specified in the letter exchanged
        between the Initial Bank and Maritime Equity Management Limited dated
        1st April 1997 such fee to be payable at the Drawdown Date.

22.2    COMMITMENT FEE

        The Borrower shall pay to the Agent for the account of the Initial Bank
        a commitment commission on the Facility Amount from day to day during
        the period beginning on 1 May 1997 and ending on the Drawdown Date, such
        commitment commission to be calculated at the rate of one per cent. per
        annum and payable quarterly in arrears up to the Drawdown Date and on
        the Drawdown Date.

22.3    AGENCY FEE

        The Borrower shall pay to the Agent a non-refundable agency fee of the
        amount specified in the letter exchanged between the Initial Bank and
        Maritime Equity Management Limited dated 1st April 1997, such fee to be
        payable on the Drawdown Date and on each anniversary thereof.

23.     COSTS AND EXPENSES

23.1    TRANSACTION EXPENSES

        The Borrower shall, from time to time on demand of the Agent, reimburse
        the Agent for all costs and expenses including legal fees) incurred by
        it in connection with the negotiation, preparation and execution of the
        Financing Documents and the completion of the transactions herein
        contemplated.

23.2    PRESERVATION AND ENFORCEMENT OF RIGHTS

        The Borrower shall, from time to time on demand of the Agent, reimburse
        the Agent, the Banks and the Security Trustee for all costs and expenses
        (including legal fees) incurred in or in connection with the
        preservation and/or enforcement of any of the rights of the Agent, the
        Banks and the Security Trustee under the Financing Documents.

<PAGE>

23.3    STAMP TAXES

        The Borrower shall pay all stamp, registration and other taxes to which
        any Financing Document or any judgment given in connection with any
        Financing Document is or at any time may be subject and shall, from time
        to time on demand of the Agent, indemnify the Security Trustee and the
        Bank against any liabilities, costs, claims and expenses resulting from
        any failure to pay or any delay in paying any such tax.

23.4    BANKS' LIABILITIES FOR COSTS

        If the Borrower fails to perform any of its obligations under this
        Clause 23, each Bank shall, in the proportion borne by its share of the
        Loan to the amount of the Loan for the time being indemnify the Agent
        against any loss incurred by it as a result of such failure and the
        Borrower shall forthwith reimburse each Bank for any payment made by it
        pursuant to this Clause 23.4.

24.     THE AGENT AND THE BANKS

24.1    APPOINTMENT OF THE AGENT

        Each Bank hereby appoints the Agent to act as its agent in connection
        with this Agreement and the other Financing Documents and authorises the
        Agent to exercise such rights, powers and discretions as are
        specifically delegated to the Agent by the terms hereof together with
        all such rights, powers and discretions as are reasonably incidental
        thereto.

24.2    AGENT'S DISCRETIONS

        The Agent may:

                (i)     assume that:

                        (a)     any representation made by the Borrower in
                                connection with this Agreement and the other
                                Financing Documents is true;

                        (b)     no event which is or may become an Event of
                                Default has occurred; and

                        (c)     the Borrower is not in breach of or default
                                under its obligations with this Agreement and
                                the other Financing Documents

                        unless it has actual knowledge or actual notice to the
                        contrary;

                (ii)    assume that the Facility Office of each Bank is that
                        identified with its signature (or, in the case of a
                        Transferee, at the end of the Transfer Certificate to
                        which it is a party as Transferee) below until it has
                        received from such Bank a notice designating some other
                        office of such Bank to replace its Facility Office and
                        act upon any such notice until the same is

<PAGE>

                        superseded by a further such notice;

                (iii)   engage and pay for the advice or services of any
                        lawyers, accountants, surveyors or other experts whose
                        advice or services may to it seem necessary, expedient
                        or desirable and rely upon any advice so obtained;

                (iv)    rely as to any matters of fact which might reasonably be
                        expected to be within the knowledge of the Borrower upon
                        a certificate signed by or on behalf of the Borrower;

                (v)     rely upon any communication or document believed by it
                        to be genuine;

                (vi)    refrain from exercising any right, power or discretion
                        vested in it as agent hereunder unless and until
                        instructed by an Instructing Group as to whether or not
                        such right, power or discretion is to be exercised and,
                        if it is to be exercised, as to the manner in which it
                        should be exercised; and

                (vii)   refrain from acting in accordance with any instructions
                        of an Instructing Group to begin any legal action or
                        proceeding arising out of or in connection with this
                        Agreement until it shall have received such security as
                        it may require (whether by way of payment in advance or
                        otherwise) for all costs, claims, expenses (including
                        legal fees) and liabilities which it will or may expend
                        or incur in complying with such instructions.

24.3    AGENT'S OBLIGATIONS

        The Agent shall:

                (i)     promptly inform each Bank of the contents of any notice
                        or document received by it from the Borrower under this
                        Agreement and the other Financing Documents;

                (ii)    promptly notify each Bank of the occurrence of any Event
                        of Default or any default by the Borrower in the due
                        performance of or compliance with its obligations under
                        this Agreement and the other Financing Documents of
                        which the Agent has actual knowledge or actual notice;

                (iii)   save as otherwise provided herein, act as agent
                        hereunder in accordance with any instructions given to
                        it by an Instructing Group, which instructions shall be
                        binding on all the Banks; and

                (iv)    if so instructed by an Instructing Group, refrain from
                        exercising any right, power or discretion vested in it
                        as agent hereunder.

24.4    EXCLUDED OBLIGATIONS

        Notwithstanding anything to the contrary expressed or implied herein,
        the Agent shall not:

<PAGE>

                (i)     be bound to enquire as to:

                        (a)     whether or not any representation made by the
                                Borrower in connection with the Financing
                                Documents is true;

                        (b)     the occurrence or otherwise of any event which
                                is or may become an Event of Default;

                        (c)     the performance by the Borrower of its
                                obligations under any of the Financing
                                Documents; or

                        (d)     any breach of or default by the Borrower of or
                                under its obligations under any of the Financing
                                Documents;

                (ii)    be bound to account to each Bank for any sum or the
                        profit element of any sum received by it for its own
                        account;

                (iii)   be bound to disclose to any other person any information
                        relating to the Borrower if such disclosure would or
                        might in its opinion constitute a breach of any law or
                        regulations or be otherwise actionable at the suit of
                        any person; or

                (iv)    be under any obligations other than those for which
                        express provision is made herein.

24.5    INDEMNIFICATION

        Each Bank shall, from time to time on demand by the Agent, indemnify the
        Agent, in the proportion its share of the Loan bears to the amount of
        the Loan at the time of such demand or, if the Loan has then been repaid
        in full, against any and all costs, claims, losses, expenses (including
        legal fees) and liabilities together with any VAT thereon which the
        Agent may incur, otherwise than by reason of its own negligence or
        wilful misconduct, in acting in its capacity as agent hereunder.

24.6    EXCLUSION OF LIABILITIES

        The Agent does not accept any responsibility for the accuracy and/or
        completeness of information supplied by the Borrower in connection
        herewith or with any other Financing Document or for the legality,
        validity, effectiveness, adequacy or enforceability of this Agreement or
        any other Financing Document and the Agent shall not be under any
        liability as a result of taking or omitting to take any action in
        relation to this Agreement or any other Financing Document, save in the
        case of gross negligence or wilful misconduct.

24.7    NO ACTION

        Each Bank agrees that it will not assert or seek to assert against any
        director, officer or employee of the Agent any claim it might have
        against any of them in respect of the matters referred to in Clause 24.6
        (EXCLUSION OF LIABILITIES).

<PAGE>

24.8    BUSINESS WITH THE BORROWER

        The Agent and each of the Banks may accept deposits from, lend money to
        and generally engage in any kind of banking or other business with the
        Borrower.

24.9    RESIGNATION

        The Agent may resign its appointment hereunder at any time without
        assigning any reason therefor by giving not less than thirty days' prior
        written notice to that effect to each of the other parties hereto
        Provided that no such resignation shall be effective until a successor
        for the Agent is appointed in accordance with the succeeding provisions
        of this Clause 24.

24.10   SUCCESSOR AGENT

        If the Agent gives notice of its resignation pursuant to Clause 24.9
        then any reputable and experienced bank or other financial institution
        may be appointed as a successor to the Agent by an Instructing Group
        with the Borrower's consent (such consent not to be unreasonably delayed
        or withheld) during the period of such notice but, if no such successor
        is so appointed, the Agent may appoint such a successor itself.

24.11   RIGHTS AND OBLIGATIONS

        If a successor to the Agent is appointed under the provisions of Clause
        24.10 (SUCCESSOR AGENT), then (i) the retiring Agent shall be discharged
        from any further obligation hereunder but shall remain entitled to the
        benefit of the provisions of this Clause 24 and (ii) its successor and
        each of the other parties hereto shall have the same rights and
        obligations amongst themselves as they would have had if such successor
        had been a party hereto.

24.12   OWN RESPONSIBILITY

        It is understood and agreed by each Bank that it has itself been, and
        will continue to be, solely responsible for making its own independent
        appraisal of and investigations into the financial condition,
        creditworthiness, condition, affairs, status and nature of the Borrower
        and, accordingly, each Bank warrants to the Agent that it has not relied
        and will not hereafter rely on the Agent:

                (i)     to check or enquire on its behalf into the adequacy,
                        accuracy or completeness of any information provided by
                        the Borrower in connection with the Financing Documents
                        or the transactions therein contemplated (whether or not
                        such information has been or is hereafter circulated to
                        each Bank by the Agent); or

                (ii)    to assess or keep under review on its behalf the
                        financial condition, creditworthiness, condition,
                        affairs, status or nature of the Borrower.

<PAGE>

24.13   AGENCY DIVISION SEPARATE

        In acting as agent hereunder for the Banks, the Agent shall be regarded
        as acting through its agency division which shall be treated as a
        separate entity from any other of its divisions or departments and,
        notwithstanding the foregoing provisions of this Clause 24, any
        information received by some other division or department of the Agent
        may be treated as confidential and shall not be regarded as having been
        given to the Agent's agency division.

24.14   CONFIDENTIAL INFORMATION

        Notwithstanding anything to the contrary expressed or implied herein and
        without prejudice to the provisions of Clause 24.13 (AGENCY DIVISION
        SEPARATE), the Agent shall not as between itself and the Banks be bound
        to disclose to any Bank or other person any information which is
        supplied by Borrower to the Agent in its capacity as agent hereunder for
        the Banks and which is identified by such member of the Group at the
        time it is so supplied as being confidential information Provided that
        the consent of the Borrower to such disclosure shall not be required in
        relation to any information which in the opinion of the Agent relates to
        an Event of Default or in respect of which the Banks have given a
        confidentiality undertaking in a form satisfactory to the Agent and the
        Borrower.

25.     BENEFIT OF AGREEMENT

        This Agreement shall be binding upon and enure to the benefit of each
        party hereto and its successors and permitted assigns.

26.     ASSIGNMENTS AND TRANSFERS

26.1    NO ASSIGNMENT AND TRANSFER BY THE BORROWER

        The Borrower shall not be entitled to assign or transfer all or any of
        its rights, benefits and obligations hereunder.

26.2    ASSIGNMENTS AND TRANSFERS BY BANKS

        Any Bank may at any time (and at its own cost) assign or transfer all or
        any of its rights and benefits hereunder.

26.3    ASSIGNMENTS BY BANKS

        If any Bank assigns all or any of its rights and benefits hereunder in
        accordance with Clause 26.2 (ASSIGNMENTS AND TRANSFERS BY BANKS), then,
        unless and until the assignee has agreed with the Agent and the Security
        Trustee that it shall be under the same obligations towards each of them
        as it would have been under if it had been an original party hereto as a
        Bank, the Agent and the Security Trustee shall not be obliged to
        recognise such assignee as having the rights against each of them which
        it would have had if it had been such a party hereto.

<PAGE>

26.4    TRANSFERS BY BANKS

        If a Bank wishes to transfer all or any of its rights, benefits and/or
        obligations hereunder as contemplated in Clause 26.2 (ASSIGNMENTS AND
        TRANSFERS BY BANKS), then such transfer may be effected by the delivery
        to the Agent and the Borrower of a duly completed and duly executed
        Transfer Certificate in which event, on the later of the Transfer Date
        specified in such Transfer Certificate and the fifth business day after
        (or such earlier business day endorsed by the Agent on such Transfer
        Certificate) the date of delivery of such Transfer Certificate to the
        Agent:

                (i)     to the extent that in such Transfer Certificate such
                        Bank seeks to transfer its rights and obligations
                        hereunder, the Borrower and such Bank shall be released
                        from further obligations towards one another hereunder
                        and their respective rights against one another shall be
                        cancelled (such rights and obligations being referred to
                        in this Clause 26.4 as "DISCHARGED RIGHTS AND
                        OBLIGATIONS"); and

                (ii)    the Borrower and the Transferee party thereto shall
                        assume obligations towards one another and/or acquire
                        rights against one another which differ from such
                        discharged rights and obligations only insofar as the
                        Borrower and such Transferee have assumed and/or
                        acquired the same in place of the Borrower and such
                        Bank;

26.5    TRANSFER FEES

        On the date upon which a transfer takes effect pursuant to this Clause
        26, the Transferee in respect of such transfer shall pay to the Agent
        for its own account a transfer fee of $500.

26.6    Any assignment or transfer which is not contemplated by the express
        provisions of this Clause 26 may only be made by a Bank with the prior
        written consent of the Borrower and in such event, the provisions of
        Clauses 26.2 (ASSIGNMENTS AND TRANSFERS BY BANKS), 26.4 (TRANSFERS BY
        BANKS) and 26.5 (TRANSFER FEES) shall apply MUTATIS MUTANDIS thereto.

26.7    DISCLOSURE OF INFORMATION

        Any Bank may, with the prior written consent of the Borrower (such
        consent not to be unreasonably withheld or delayed), disclose to any
        actual or potential assignee or to any person who may otherwise enter
        into contractual relations with such Bank in relation to this Agreement
        such information about the Borrower as such Bank and the Borrower shall
        consider appropriate.

27.     CALCULATIONS AND EVIDENCE OF DEBT

27.1    BASIS OF ACCRUAL

        Interest and commitment commission shall accrue from day to day and
        shall be calculated on the basis of a year of 360 days and the actual
        number of days elapsed.

<PAGE>

27.2    EVIDENCE OF DEBT

        Each Bank shall maintain in accordance with its usual practice accounts
        evidencing the amounts from time to time lent by and owing to it
        hereunder; in any legal action or proceeding arising out of or in
        connection with this Agreement and other Financing Documents, the
        entries made in such accounts shall be conclusive evidence of the
        existence and amounts of the obligations of the Borrower therein
        recorded.

27.3    CONTROL ACCOUNTS

        The Agent shall maintain on its books a control account or accounts in
        which shall be recorded (i) the amount of the Advance made hereunder by
        the Initial Bank, (ii) the amount of all principal, interest and other
        sums due or to become due from the Borrower to each of the Banks under
        the Financing Documents and (iii) the amount of any sum received or
        recovered by the Agent under the Financing Documents and each Bank's
        share therein. To the extent that discrepancies exist between accounts
        maintained by each Bank pursuant to clause 27.2 (EVIDENCE OF DEBT) and
        control accounts maintained by the Agent under this Clause 27.3, the
        control accounts herein maintained shall prevail.

27.4    PRIMA FACIE EVIDENCE

        In any legal action or proceeding arising out of or in connection with
        this Agreement and/or any other Financing Document, the entries made in
        the accounts maintained pursuant to Clause 27.2 (EVIDENCE OF DEBT) or
        Clause 27.3 (CONTROL ACCOUNTS) shall be PRIMA FACIE evidence of the
        existence and extent of the obligations of the Borrower therein
        recorded.

27.5    CHANGE OF CIRCUMSTANCE CERTIFICATES

        A certificate of the Bank as to (a) the amount by which a sum payable to
        it hereunder is to be increased under Clause 10.1 (TAX GROSS-UP) or (b)
        the amount for the time being required to indemnify it against any such
        cost or liability as is mentioned in Clause 10.2 (TAX INDEMNITY) or 11.1
        (INCREASED COST) shall, in the absence of manifest error, be conclusive
        for the purposes of this Agreement and PRIMA FACIE evidence in any legal
        action or proceeding arising out of or in connection with this
        Agreement.

28.     REMEDIES AND WAIVERS

        No failure to exercise, nor any delay in exercising, on the part of the
        Agent, any Bank and the Security Trustee or any of them, any right or
        remedy hereunder shall operate as a waiver thereof, nor shall any single
        or partial exercise of any right or remedy prevent any further or other
        exercise thereof or the exercise of any other right or remedy. The
        rights and remedies herein provided are cumulative and not exclusive of
        any rights or remedies provided by law.

<PAGE>

29.     PARTIAL INVALIDITY

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

30.     NOTICES

30.1    COMMUNICATIONS IN WRITING

        Each communication to be made hereunder shall be made in writing but,
        unless otherwise stated, may be made by telex, facsimile or letter.

30.2    COMMUNICATIONS THROUGH THE AGENT

        Each communication between the Banks and the Borrower hereunder shall
        only be effected through the Agent.

30.3    DELIVERY

        Any communication or document to be made or delivered by one party to
        the other pursuant to this Agreement shall (unless the other party has
        by three days' written notice to the one specified another address or
        telex or facsimile number) be made or delivered to that other party at
        the address or telex or facsimile number identified with its signature
        below and shall be deemed to have been made or delivered when despatched
        and answerback received (in the case of any communication made by telex)
        or (in the case of any communication made by facsimile) when legibly
        received or (in the case of any communication made by letter) when left
        at that address or (as the case may be) ten days after being deposited
        in the post postage prepaid in an envelope addressed to it at that
        address Provided that:

                (i)     if any such communication or document would otherwise be
                        deemed to have been received on a day which is not a
                        business day it shall be deemed to have been received on
                        the first business day thereafter; and

                (ii)    any communication or document to be made or delivered by
                        the Borrower to each Bank shall be effective only when
                        legibly received by the Bank and then only if the same
                        is expressly marked for the attention of the department
                        or officer identified with such Bank's signature below
                        (or such other department or officer as such Bank shall
                        from time to time specify for this purpose).

30.4    ENGLISH LANGUAGE

        Each communication and document made or delivered by one party to
        another pursuant to this Agreement shall be in the English language or
        accompanied by a translation thereof into English certified (by an
        officer of the person making or delivering the same) as being a true and
        accurate translation thereof.

<PAGE>

31.     LAW

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

32.     JURISDICTION

32.1    ENGLISH COURTS

        Each of the parties hereto irrevocably agrees for the benefit of the
        Agent, the Bank and the Security Trustee that the courts of England
        shall have jurisdiction to hear and determine any suit, action or
        proceeding, and to settle any disputes, which may arise out of or in
        connection with this Agreement and, for such purposes, irrevocably
        submits to the jurisdiction of such courts.

32.2    APPROPRIATE FORUM

        The Borrower irrevocably waives any objection which it might now or
        hereafter have to the courts referred to in Clause 32.1 (ENGLISH COURTS)
        being nominated as the forum to hear and determine any suit, action or
        proceeding, and to settle any disputes, which may arise out of or in
        connection with this Agreement and agrees not to claim that any such
        court is not a convenient or appropriate forum.

32.3    SERVICE OF PROCESS

        The Borrower agrees that the process by which any suit, action or
        proceeding in England is begun may be served on it by being delivered to
        Clifford Chance Secretaries Limited at 200 Aldersgate Street, London,
        EC1A 4JJ or other its registered office for the time being.

32.4    NON-EXCLUSIVE SUBMISSIONS

        The submission to the jurisdiction of the courts referred to in Clause
        32.1 (ENGLISH COURTS) shall not (and shall not be construed so as to)
        limit the right of the Agent, the Banks or the Security Trustee to take
        proceedings against the Borrower in any other court of competent
        jurisdiction nor shall the taking of proceedings in any one or more
        jurisdictions preclude the taking of proceedings in any other
        jurisdiction, whether concurrently or not.

AS WITNESS the hands of the duly authorised representatives of the parties
hereto the day and year first before written.

<PAGE>

                               THE FIRST SCHEDULE

                          CONDITION PRECEDENT DOCUMENTS

                                     PART 1

1.     In relation to the Borrower, the General Managing Partner, the Guarantor,
the Charterer and the Charter Guarantor (herein together referred to as the
"RELEVANT PARTIES"):

                (i)     a copy, certified a true copy by a duly authorised
                        officer of the Managing General Partner of the Borrower
                        of the Borrower's Certificate of Registration as a
                        Limited Partnership and its Limited Partnership
                        Agreement;

                (ii)    a copy, certified a true copy by a duly authorised
                        officer of the Relevant Party, of the constitutive
                        documents of such Relevant Party;

                (iii)   a copy, certified a true copy by a duly authorised
                        officer of the Managing General Partner of the Borrower,
                        of a Board Resolution of the Managing General Partner on
                        behalf of the Borrower approving the execution, delivery
                        and performance of each of the Financing Documents to
                        which it is a party and the terms and conditions thereof
                        and authorising a named person or persons to sign each
                        of such Financing Documents and any documents to be
                        delivered by the Borrower pursuant hereto;

                (iv)    a copy, certified a true copy by a duly authorised
                        officer of the Charterer, of a Board Resolution of the
                        Charterer approving the execution, delivery and
                        performance of the Charter and the terms and conditions
                        thereof and authorising a named person or persons to
                        sign the Charter;

                (v)     a certificate of a duly authorised officer of each
                        Relevant Party setting out the names and signatures of
                        the persons authorised to sign, on behalf of such
                        Relevant Party, each of the Financing Documents and the
                        Charter or the Charter Guarantee (to the extent it is a
                        party thereto) and any documents to be delivered
                        pursuant thereto; and

                (vi)    a copy, certified a true copy by a duly authorised
                        officer of the Managing General Partner of the Borrower
                        of each of the powers of attorney, if any, issued
                        pursuant to the resolutions or other authority referred
                        to in (iii) above.

                (vii)   a copy, certified a true copy by a duly authorised
                        officer of the Charter Guarantor, of a Board Resolution
                        of the Charter Guarantor approving the execution,
                        delivery and performance of the Charter Guarantee and
                        the terms and conditions thereof and authorising a named
                        person or persons to sign the Charter Guarantee;

                (viii)  a copy certified a true copy by a duly authorised
                        officer of the Managing General Partner of the Borrower
                        of the proforma opening balance sheet of the Borrower
                        evidencing its capital structure including the amount of
                        its

<PAGE>

                        Working Capital;

                (ix)    a certificate of a duly authorised officer of the
                        Managing General Partner of the Borrower setting out the
                        partners (both general and limited) of the Borrower;

                (x)     a copy, certified a true copy by a duly authorised
                        officer of the Guarantor, of a Board Resolution of the
                        Guarantor approving the execution, delivery and
                        performance of each of the Financing Documents to which
                        it is a party and the terms and conditions thereof and
                        authorising a named person or persons to sign each such
                        Financing Document.

                (xi)    a certificate of a duly authorised officer of the
                        Managing General Partner setting out the shareholders of
                        the Managing General Partner.

2.     A copy of the Cayman Islands Exempted Limited Partnership Law and of each
such other law, decree, consent, licence, approval, registration or declaration
as is, in the opinion of counsel to the Initial Bank, necessary to render the
Financing Documents and the Charter legal, valid, binding and enforceable, to
make them admissible in evidence in the Cayman Islands and Liberia and to enable
the Borrower lawfully to perform their respective obligations under the
Financing Documents.

3.     An opinion of the Initial Bank's counsel in relation to Liberian law in a
form satisfactory to the Initial Bank.

4.     An opinion of the Initial Bank's Cayman Islands Counsel in a form
satisfactory to the Initial Bank.

5.     An opinion of the Charter Guarantor's internal counsel in a form
satisfactory to the Initial Bank relating to the Charterer and the Charter
Guarantor.

6.     An opinion of Clifford Chance in a form satisfactory to the Initial Bank.

7.     Evidence that Clifford Chance Secretaries Limited has agreed to act as
the agent of the Borrower and the Guarantor for the service of process in
England.

8.     A copy, certified to be a true copy by a duly authorised officer of the
Managing General Partner of the Borrower of the Memorandum of Agreement showing
the purchase price of the Vessel to be $39,000,000;

9.     A copy, certified to be a true copy of a duly authorised officer of the
Managing General Partner of the Borrower, of the Charter.

10.    A copy of the Charter Guarantee on terms and conditions acceptable to the
Initial Bank.

11.    Valid up-to-date class certificates from a classification society
acceptable to the Agent and showing the Vessel to be in a class acceptable to
the Agent, without extension or recommendations.

12.    Details of the manager of the Vessel and a certified true copy of the
Management Agreement

<PAGE>

in a form acceptable to the Initial Bank.

13.    A Priority Agreement between the Borrower, the Initial Bank and the Agent
under this Agreement and the Agent and the lenders under the Senior Facility
Agreement.

14.    A copy of the Bill of Sale relating to the Vessel and any other documents
required to be produced by the Borrower pursuant to the Memorandum of Agreement.

15.    Evidence of discharge of any existing mortgage.

<PAGE>

                                     PART 2

Each of the following documents duly executed by the Borrower:

1.     A first preferred Liberian ship mortgage over the Vessel granted by the
Guarantor in favour of the Security Trustee in a form acceptable to the Initial
Bank.

2.     An assignment of earnings and insurances agreement entered into by the
Guarantor in favour of the Security Trustee to secure the Guarantor's
obligations under the Guarantee in a form acceptable to the Initial Bank.

3.     An assignment of the Guarantor's bank accounts in a form acceptable to
the Initial Bank.

4.     A security trust deed whereby the Security Trustee agrees to hold the
benefit of the security created by the mortgage and the assignment of earnings
and insurances and the assignment of Accounts referred to in paragraphs 1, 2 and
3 above on trust for the Beneficiaries named therein in a form acceptable to the
Initial Bank.

5.     All notices to be given under the assignments referred to in 2 and 3
above.

6.     The Protocol of Delivery and Acceptance of the Vessel duly signed by the
Borrower and the Seller.

7.     A guarantee whereby the Guarantor guarantees the performance of the
Borrower's obligation hereunder in a form acceptable to the Initial Bank.

8.     Evidence that the Vessel has been accepted for service under the Charter
by the Charterer for at least 5 years on terms and conditions acceptable to the
Initial Bank.

<PAGE>

                               THE SECOND SCHEDULE

                               NOTICE OF DRAWDOWN

From:   General Maritime I, L.P.

To:     Christiania Bank og Kreditkasse ASA as Agent

Dear Sirs,

1.     We refer to the agreement (the "JUNIOR FACILITY AGREEMENT") dated [  ]
and made between ourselves as borrower, yourselves as agent and security
trustee and yourselves as Initial Bank. Terms defined in the Junior Facility
Agreement shall have the same meaning in this notice.

2.     We hereby give you notice that, pursuant to the Facility Agreement and on
[date of proposed borrowing], we wish to borrow the amount of [  ] United States
Dollars (being an amount equal to the lesser of the amount of the Facility
Amount) upon the terms and subject to the conditions contained therein. We
hereby confirm that the aggregate sum of this proposed drawdown and the amount
drawndown (or to be drawndown) under the Senior Facility Agreement shall not
exceed 76% of the Fair Market Value of the Vessel.

3.     We would like the Advance to have a first Interest Period of:

        First Choice: _____________________________ months' duration.

        Second Choice:* __________________________ months' duration.

4.     We further confirm that, at the date hereof, the representations set out
in Clauses 12.1 and 12.2 of the Junior Facility Agreement are true and that no
event which is or may become (with the passage of time, the giving of notice,
the making of any determination under the Junior Facility Agreement or any
combination thereof) an Event of Default has occurred.

5.     The proceeds of this drawdown should be credited to Alta Ltd.'s account
with the Agent's New York branch.

                                Yours faithfully

                            -------------------------
                              for and on behalf of
                            GENERAL MARITIME I, L.P.

--------------------------------------------------------------------------------
*      Only if the first choice Interest Period is twelve months.

<PAGE>

                               THE THIRD SCHEDULE

                          FORM OF TRANSFER CERTIFICATE

To:     Christiania Bank og Kreditkasse ASA (as Agent) and
        General Maritime I, L.P.

                              TRANSFER CERTIFICATE

relating to the agreement (as from time to time amended, varied, novated or
supplemented, the "FACILITY AGREEMENT") dated [  ] whereby a US$3,000,000 loan
facility was made available to [  ] (the "BORROWER") by Christiania Bank og
Kreditkasse ASA in connection with which Christiania Bank og Kreditkasse ASA
acted as Agent and Security Trustee.

1.     Terms defined in the Facility Agreement shall, subject to any contrary
indication, have the same meanings herein. The terms Bank, Transferee, Bank's
Participation and Amount Transferred are defined in the schedule hereto.

2.     The Bank confirms that the Bank's Participation is an accurate summary of
its participation in the Facility Agreement and requests the Transferee to
accept and procure the transfer to the Transferee of a percentage of the Bank's
Participation (equal to the percentage that the Amount Transferred is of the
aggregate of the component amounts (as set out in the Schedule hereto) of the
Bank's Participation) by counter-signing and delivering this Transfer
Certificate to the Agent at its address for the service of notices specified in
the Facility Agreement.

3.     The Transferee hereby requests the Agent to accept this Transfer
Certificate as being delivered to the Agent pursuant to and for the purposes of
Clause 26.2 of the Facility Agreement so as to take effect in accordance with
the terms thereof on the Transfer Date or on such later date as may be
determined in accordance with the terms thereof.

4.     The Transferee warrants that it has received a copy of the Facility
Agreement together with such other information as it has required in connection
with this transaction and that it has not relied and will not hereafter rely on
the Bank to check or enquire on its behalf into the legality, validity,
effectiveness, adequacy, accuracy or completeness of any such information and
further agrees that it has not relied and will not rely on the Bank to assess or
keep under review on its behalf the financial condition, creditworthiness,
condition, affairs, status or nature of the Borrower.

5.     The Transferee hereby undertakes with the Bank and each of the other
parties to the Facility Agreement that it will perform in accordance with their
terms all those obligations which by the terms of the Facility Agreement will be
assumed by it after delivery of this Transfer Certificate to the Agent and
satisfaction of the conditions (if any) subject to which this Transfer
Certificate is expressed to take effect.

6.     The Bank makes no representation or warranty and assumes no
responsibility with respect to the legality, validity, effectiveness, adequacy
or enforceability of the Facility Agreement or any document relating thereto and
assumes no responsibility for the financial condition of the Borrower or

<PAGE>

for the performance and observance by the Borrower of any of its obligations
under the Facility Agreement or any document relating thereto and any and all
such conditions and warranties, whether express or implied by law or otherwise,
are hereby excluded.

7.     The Bank hereby gives notice that nothing herein or in the Facility
Agreement (or any document relating thereto) shall oblige the Bank to (i) accept
a re-transfer from the Transferee of the whole or any part of its rights,
benefits and/or obligations under the Facility Agreement transferred pursuant
hereto or (ii) support any losses directly or indirectly sustained or incurred
by the Transferee for any reason whatsoever including, without limitation, the
non-performance by the Borrower or any other party to the Facility Agreement (or
any document relating thereto) of its obligations under any such document. The
Transferee hereby acknowledges the absence of any such obligations under any
such document. The Transferee hereby acknowledges the absence of any such
obligation as is referred to in (i) or (ii) above.

8.     This Transfer Certificate and the rights and obligations of the parties
hereunder shall be governed by and construed in accordance with English law.

                                    SCHEDULE

1.      Bank:

2.      Transferee:

3.      Transfer Date:

4.      Bank's Participation:

        Bank's portion of the Loan:

        Bank's Commitment:

5.      Amount Transferred:

[Transferor Bank]                                     [Transferee Bank]

By:                                                   By:

Date:                                                 Date:

                                                      Address:

<PAGE>

EXECUTION PAGES

THE BORROWER

GENERAL MARITIME I, L.P.
acting by its General Managing Partner

GENERAL MARITIME I CORPORATION

By:            Peter C Georgiopoulos, President

Address:       c/o General Maritime Corporation
               730 Fifth Avenue (15th Floor)
               New York
               NY 10019
               USA

Attn:          Peter Georgiopoulos

Tel:           00 212 698 9630
Fax:           00 212 698 9628

THE INITIAL BANK

CHRISTIANIA BANK OG KREDITKASSE ASA

By:            Justin F McCarthy III, Attorney-in-Fact

Address:       PO Box 1166
               Sentrum
               0107 Oslo
               Norway

Attn:          Shipping Department

Tel:           00 47 2248 5000
Fax:           00 47 2248 6668

<PAGE>

THE AGENT AND SECURITY TRUSTEE

CHRISTIANIA BANK OG KREDITKASSE ASA

By:            Justin F McCarthy III, Attorney-in-Fact

Address:       PO Box 1166
               Sentrum
               0107 Oslo
               Norway

Attn:          Shipping Department

Tel:           00 47 2248 5000
Fax:           00 47 2248 6668

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