Document:

Exhibit 4.4

                               Date 31 March 2006

                                  DRYSHIPS INC.
                                   as Borrower

                                     - and -

                      THE BANKS AND FINANCIAL INSTITUTIONS
                         listed in Part A of Schedule 1
                                   as Lenders

                                     - and -

                                 HSH NORDBANK AG
                        as Agent and as Security Trustee

                                     - and -

                                 HSH NORDBANK AG
                      as Lead Arranger and Lead Bookrunner

                                     - and -

                            THE GOVERNOR AND COMPANY
                             OF THE BANK OF SCOTLAND
                               as Joint Bookrunner

                                     - and -

                               HSH NORDBANK AG and
                            THE GOVERNOR AND COMPANY
                             OF THE BANK OF SCOTLAND
                              as Joint Underwriters

                                     - and -

                      THE BANKS AND FINANCIAL INSTITUTIONS
                         listed in Part B of Schedule 1
                                  as Swap Banks

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

                                 LOAN AGREEMENT

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

relating to a term loan and short-term credit facilities of up to US$518,750,000
   in aggregate to refinance certain existing indebtedness, to provide working
capital and to finance part of the purchase price of certain additional vessels

                            WATSON FARLEY & WILLIAMS
                                     Piraeus
<PAGE>

                                     INDEX

Clause                                                                      Page

1     INTERPRETATION                                                           2

2     FACILITY                                                                24

3     POSITION OF THE LENDERS, THE SWAP BANKS
      AND THE MAJORITY LENDERS                                                25

4     DRAWDOWN                                                                26

5     INTEREST                                                                27

6     INTEREST PERIODS                                                        30

7     DEFAULT INTEREST                                                        30

8     REPAYMENT AND PREPAYMENT                                                32

9     CONDITIONS PRECEDENT                                                    35

10    REPRESENTATIONS AND WARRANTIES                                          36

11    GENERAL UNDERTAKINGS                                                    38

12    CORPORATE UNDERTAKINGS                                                  42

13    INSURANCE                                                               44

14    SHIP COVENANTS                                                          50

15    SECURITY COVER                                                          54

16    PAYMENTS AND CALCULATIONS                                               56

17    APPLICATION OF RECEIPTS                                                 58

18    APPLICATION OF EARNINGS                                                 59

19    EVENTS OF DEFAULT                                                       60

20    FEES AND EXPENSES                                                       65

21    INDEMNITIES                                                             66

22    NO SET-OFF OR TAX DEDUCTION                                             68

23    ILLEGALITY, ETC                                                         69

24    INCREASED COSTS                                                         70

25    SET-OFF                                                                 71

26    TRANSFERS AND CHANGES IN LENDING OFFICES                                72

27    VARIATIONS AND WAIVERS                                                  75

28    NOTICES                                                                 76

29    SUPPLEMENTAL                                                            78

30    LAW AND JURISDICTION                                                    78

SCHEDULE I PART A                                                             80

LENDERS AND COMMITMENTS                                                       80

PART B                                                                        80

SWAP BANKS                                                                    80

SCHEDULE 2 DETAILS OF SHIPS AND OWNERS                                        82

PART A DETAILS OF EXISTING SHIPS AND OWNERS                                   82

SCHEDULE 3 DRAWDOWN NOTICE                                                    90

SCHEDULE 4 REPAYMENT OF TERM LOAN                                             91

SCHEDULE 5 CONDITION PRECEDENT DOCUMENTS                                      92

SCHEDULE 6 TRANSFER CERTIFICATE                                               98

SCHEDULE 7 DESIGNATION NOTICE                                                102

SCHEDULE 8 FORM OF COMPLIANCE CERTIFICATE                                    103

SCHEDULE 9 MANDATORY COST FORMULA                                            104

EXECUTION PAGES                                                              106
<PAGE>

THIS LOAN AGREEMENT is made on 31 March 2006

BETWEEN:

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

(2)   THE BANKS AND FINANCIAL INSTITUTIONS listed in Part A of Schedule 1, as
      Lenders;

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

(4)   HSH NORDBANK AG acting through its office at Gerhart-Hauptmann-Platt 50,
      D-20095, Hamburg, Germany, as Security Trustee;

(5)   HSH NORDBANK AG acting through its office at Gerhart-Hauptmann-Platz 50,
      D-20092, Germany, as Lead Arranger and as Lead Bookrunner;

(6)   THE GOVERNOR AND COMPANY OF THE BANK OF SCOTLAND acting through its office
      at New Uberior House, 11 Earl Grey Street, Edinburgh, EH3 9BN, Scotland,
      as Joint Bookrunner;

(7)   HSH NORDBANK AG acting through its office at Gerhart-Hauptmann-Platz 50,
      D-20095, Hamburg, Germany and THE GOVERNOR AND COMPANY OF THE BANK OF
      SCOTLAND acting through its office at New Uberior House, 11 Earl Grey
      Street, Edinburgh, EH3 9BN, Scotland, as Joint Underwriters; and

(8)   THE BANKS AND FINANCIAL INSTITUTIONS listed in Part B of Schedule 1, as
      Swap Banks.

WHEREAS

(A)   The Lenders have agreed to make available to the Borrower term loan and
      short-term credit facilities of up to US$518,750,000 in aggregate as
      follows:

      (i)   as to an amount of up to the lesser of (a) US$460,000,000 and (b) 63
            percent of the aggregate Market Values of the Existing Ships and
            the Identified Ship to refinance certain existing indebtedness
            secured on the Existing Ships, to finance part of the purchase price
            of the Identified Ship and to provide the Borrower with working
            capital for its general corporate purposes; and

      (ii)  as to an amount of up to the lesser of (a) US$58,750,000 and (b) 63
            percent of the aggregate Market Values of the Additional Ships to
            finance part of the purchase price of the Additional Ships.

(B)   The Swap Banks have agreed to enter into interest rate swap transactions
      with the Borrower from time to time to hedge the Borrower's exposure under
      this Agreement to interest rate fluctuations.

(C)   The Lenders and the Swap Banks have agreed to share pari passu in the
      security to be granted to the Security Trustee pursuant to this Agreement.

IT IS AGREED as follows:

1     INTERPRETATION

1.2   Definitions. Subject to Clause 1.5, in this Agreement:

      "Additional Advance" means each Advance which is to be used in financing
      on delivery part of the purchase price of an Additional Ship and which is
      to be made available in accordance with and pursuant to Clauses 2.3 and
      4.2(f);

      "Additional Ship" means any ship which is, or is to be, purchased by an
      Additional Ship Owner, each of which (unless all of the Lenders acting in
      their absolute discretion agree otherwise) must satisfy all the Additional
      Ship Requirements;

      "Additional Ship Requirements" means, in relation to any ship which is, or
      is to be, purchased by an Additional Ship Owner, a ship which satisfies
      the following requirements:

      (a)   it has been approved by all of the Lenders acting in their absolute
            discretion;

      (b)   it is a Capesize, Panamax or Handymax bulk carrier;

      (c)   it is built in or after 1993;

      (d)   following its purchase by the relevant Additional Ship Owner, the
            average age of the Additional Ships at that time subject to a
            Mortgage shall not exceed 10 years;

      (e)   it maintains the highest class with a classification society which
            is acceptable to all of the Lenders free of any overdue
            recommendations and conditions;

      (f)   it is to be registered on an Approved Flag;

      (g)   at least 25 percent of the purchase price of the Additional Ship
            shall be contributed by the Additional Ship Owner either (i) by way
            of a shareholder's loan which is advanced to the Borrower and
            on-lent to the Additional Ship Owner or (ii) through the proceeds of
            a secondary offering of the share capital of the Borrower which are
            then advanced (either wholly or partially (as the case maybe)) to
            the Additional Ship Owner;

      "Additional Ship Earnings Account Pledge" means, in relation to each
      Earnings Account of an Additional Ship, a pledge agreement creating
      security in favour of the Creditor Parties in respect of that Earnings
      Account in such form as the Lenders may approve or require and, in the
      plural means all of them;

      "Additional Ship MOA" means, in relation to an Additional Ship, a
      memorandum of agreement or a shipbuilding contract to be made between the
      Additional Ship Seller of that Additional Ship and the Additional Ship
      Owner which is the buyer thereof on terms and conditions acceptable to the
      Lenders (such approval not to be unreasonably withheld if the Additional
      Ship satisfies all the Additional Ship Requirements) and, in the plural,
      means all of them;

      "Additional Ship Seller" means, in relation to an Additional Ship, the
      seller of such Additional Ship and, in the plural, means all of them;

      "Additional Ship Owner" means a company which is a direct or indirect
      wholly-owned subsidiary of the Borrower incorporated in a jurisdiction
      acceptable to the Lenders (in their absolute discretion) which shall be
      the owner of an Additional Ship and, in the plural, means all of them;

      "Adjusted Equity" means, as of any Compliance Date, the value of the
      stockholders' equity of the Group determined on a consolidated basis in
      accordance with GAAP and as shown in the consolidated balance sheets for
      the Group in the Applicable Accounts, adjusted by adding or subtracting
      (depending on whether the same is positive or negative) any difference
      between:

      (a)   the value of Total Assets determined on a consolidated basis in
            accordance with GAAP and as shown in such consolidated balance
            sheets; and

      (b)   the Market Value Adjusted Total Assets;

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

      "Affected Lender" has the meaning given in Clause 5.6;

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

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

      "Applicable Accounts" means, in relation to a Compliance Date or an
      accounting period, the consolidated balance sheets and related
      consolidated statements of stockholders' equity, income and cash flows of
      the Group set out in the annual financial statements or interim financial
      statements of the Group prepared as of the Compliance Date or, as the case
      may be, the last day of the accounting period in question (and which the
      Borrower is obliged to deliver to the Agent pursuant to Clause 11.6);

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

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

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

      "Approved Manager" means, in relation to:

      (a)   each Ship (other than the Identified Ship during the Hille
            Oldendorff Charter Period), Cardiff Marine Inc., a corporation
            incorporated in the Republic of Liberia and maintaining a ship
            management office at Omega Building, 80 Kifissias Avenue, Maroussi,
            151 25, Greece;

      (b)   the Identified Ship at all times during the Hille Oldendorff Charter
            Period, Egon Oldendorff, a company incorporated in Germany and
            maintaining a ship management office at Funfhausen 1, 23 552 Lubeck,
            Germany; and

      (c)   or any other company which the Agent may, with the authorisation of
            the Majority Lenders, approve from time to time as the technical
            and/or commercial agent of a Ship;

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

      (a)   in the case of:

            (i)   the Refinancing Advance, 5 April 2006;

            (ii)  the Identified Ship Advance, 15 April 2006;

            (iii) an Additional Advance (subject to Clause 4.8), the date
                  falling 364 days after the date of this Agreement (or, in
                  respect of any of the Advances referred to in this paragraph
                  (a) such later date as the Agent may, with the authorisation
                  of all the Lenders, agree with the Borrower); or

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

      "Balloon Instalment" means, in relation to:

      (a)   the Term Loan (subject to the proviso to Clause 8.1(a)(i)), an
            amount of $81,273,542.60; and

      (b)   an Additional Advance, the balloon instalment in respect of that
            Advance as specified in the repayment schedule for that Advance
            referred to in Clause 8.1(a)(ii) and calculated in accordance with
            Clause 8.1(b);

      "Bank Guarantee" means the guarantee of the obligations of the Borrower
      under the Master Agreement to be entered into between the Borrower and
      HBOSTS, executed or to be executed by BOS in favour of HBOSTS;

      "Bookrunner" means each of the Lead Bookrunner and the Joint Bookrunner
      and, in the plural, means both of them;

      "Borrower" means Dryships Inc., a corporation incorporated in the Marshall
      Islands and having its registered office at Trust Company Complex,
      Ajeltake Road, Ajeltake Island, Majuro, The Marshall Islands MH 96960;

      "Borrower's Accounts Pledge" means a pledge agreement creating security in
      favour of the Creditor Parties in respect of the Debt Service Reserve
      Account and the Retention Account in such form as the Lenders may approve
      or require;

      "BOS" means the Governor and Company of the Bank of Scotland, acting
      through its office at New Uberior House, 11 Earl Grey Street, Edinburgh
      EH3 9BN, Scotland;

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

      "Charterparty Assignment" means, in relation to each Ship, an assignment
      of the rights of the Owner of that Ship under any time charterparty or
      contract of afreightment in respect of such Ship of at least 11
      consecutive months in duration or under any bareboat charter and any
      guarantee of such charter or other contract of employment in respect of
      such Ship executed or to be executed by the relevant Owner in favour of
      the Security Trustee, in each case, in such form as the Lenders may
      approve or require and, in the plural, means all of them;

      "Commitment" means, in relation to a Lender, the aggregate of the Term
      Loan Commitment and the Credit Facility Commitment of that Lender;

      "Compliance Date" means 30 June and 31 December in each calendar year (or
      such other dates as of which the Borrower prepares the consolidated
      financial statements which it is required to deliver pursuant to Clause
      11.6);

      "Confirmation" and "Early Termination Date", in relation to any continuing
      Designated Transaction, have the meanings given in each Master Agreement;

      "Contractual Currency" has the meaning given in Clause 21.5;

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

      "Counter Indemnity" means the counter indemnity executed or to be executed
      by the Borrower in favour of BOS, indemnifying BOS in respect of any
      amounts it may be obliged to pay under the Bank Guarantee;

      "Credit Facility" means an amount of up to $58,750,000 (representing the
      maximum aggregate principal amount of the Additional Advances) or the
      aggregate principal amount of the Additional Advances for the time being
      outstanding under this Agreement;

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

      "Creditor Party" means the Agent, the Security Trustee, each Swap Bank or
      any Lender, whether as at the date of this Agreement or at any later time;

      "Debt Service Reserve Account" means an account in the name of the
      Borrower with the Agent in Hamburg designated "Dryships Inc. - Debt
      Service Reserve Account" or any other account (with that or another office
      of the Agent) which is designated by the Agent as the Debt Service Reserve
      Account for the purposes of this Agreement;

      "Deed of Covenant" means:

      (a)   in relation to each Existing Ship and the Identified Ship, a deed of
            covenant collateral to the Mortgage on that Ship; and

      (b)   in relation to each Additional Ship, if a deed of covenant is
            appropriate given the Mortgage on that Additional Ship, a deed of
            covenant collateral to the Mortgage on that Additional Ship,

      each in such form as the Lenders may approve or require and, in the plural
      means all of them;

      "Designated Transaction" means a Transaction which fulfils the following
      requirements:

      (a)   it is entered into by the Borrower pursuant to a Master Agreement
            with a Swap Bank which, at the time the Transaction is entered into,
            is also a Lender;

      (b)   its purpose is the hedging of the Borrower's exposure under this
            Agreement to fluctuations in LIBOR arising from the funding of the
            Loan (or any part thereof) for a period expiring no later than the
            final Repayment Date; and

      (c)   it is designated by the Borrower, by delivery by the Borrower to the
            Agent of a notice of designation in the form set out in Schedule 7,
            as a Designated Transaction for the purposes of the Finance
            Documents;

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

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

      "Drawdown Notice" means a notice in the form set out in Schedule 3 (or in
      any other form which the Agent approves or reasonably requires);

      "Earnings" means, in relations to each Ship, all moneys whatsoever which
      are now, or later become, payable (actually or contingently) to the Owner
      thereof or the Security Trustee and which arise out of the use or
      operation of that Ship, including (but not limited to):

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

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

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

      "Earnings Account" means, in relation to each Ship, an account in the name
      of the Owner of that Ship, with the Agent in Hamburg designated "[name of
      Ship] - Earnings Account", or any other account (with that or another
      office of the Agent) which is designated by the Agent as the Earnings
      Account for that Ship for the purposes of this Agreement and, in the
      plural means all of them;

      "EBITDA" means, for any accounting period, the consolidated net income of
      the Group for that accounting period:

      (a)   plus, to the extent deducted in computing consolidated net income of
            the Group for that accounting period, the sum, without duplication,
            of:

            (i)   all federal, state, local and foreign taxes and tax
                  distributions;

            (ii)  Net Interest Expenses; and

            (iii) depreciation, depletion, amortisation of intangibles and other
                  non-cash charges or non-cash losses (including non-cash
                  transaction expenses and the amortisation of debt discounts)
                  and any extraordinary losses not incurred in the ordinary
                  course of business;

      (b)   minus, to the extent added in computing consolidated net income of
            the Group for that accounting period, any non-cash income or
            non-cash gains and any extraordinary gains not incurred in the
            ordinary course of business;

      all determined on a consolidated basis in accordance with GAAP and as
      shown in the consolidated statements of income for the Group in the
      Applicable Accounts;

      "Environmental Claim" means:

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

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

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

      "Environmental Incident" means, in relation to each Ship:

      (a)   any release of Environmentally Sensitive Material from that Ship; or

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

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

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

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

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

      "Existing Indebtedness" means, at any relevant time, the aggregate
      Financial Indebtedness of the Borrower or its wholly-owned subsidiaries
      under the Existing Loan Agreements;

      "Existing Loan Agreements" means, together:

      (a)   the loan agreement dated 6 December 2004 made between (i) Annapolis
            Shipping Company Limited and certain other companies (each of which
            is an indirect wholly-owned subsidiary of the Borrower) as joint and
            several borrowers, (ii) the banks and financial institutions
            referred to therein as lenders and (iii) Commerzbank AG as agent and
            security trustee in respect of a loan facility of (originally)
            $185,000,000 (of which an amount of $136,667,000 is outstanding by
            way of principal on the date of this Agreement);

      (b)   the loan agreement dated 18 March 2005 made between (i) the
            Borrower, (ii) the banks and financial institutions referred to
            therein as lenders and (iii) Commerzbank AG as agent and security
            trustee in respect of a loan facility of (originally) $200,000,000
            (of which an amount of $163,378,000 is outstanding by way of
            principal on the date of this Agreement);

      (c)   the loan agreement dated 15 March 2005 made between (i) the indirect
            wholly-owned subsidiaries of the Borrower, Arleta Shipping Company
            Limited, Malvina Shipping Company Limited and Thelma Shipping
            Company Limited, as joint and several borrowers and (ii)
            Norddeutsche Landesbank Girozentrale as lender in respect of a loan
            facility of (originally) $120,645,000 (of which an amount of
            $108,662,000 is outstanding by way of principal on the date of this
            Agreement);

      (d)   the loan agreement dated 23 March 2005 made between (i) the indirect
            wholly-owned subsidiary of the Borrower, Selma Shipping Company
            Limited, as borrower and (ii) The Royal Bank of Scotland plc as
            lender in respect of a loan facility of (originally) $92,940,000 (of
            which an amount of $72,778,000 is outstanding by way of principal on
            the date of this Agreement); and

      (e)   the loan agreement dated 29 March 2005 made between (i) the indirect
            wholly-subsidiary of the Borrower, Iguana Shipping Company Limited,
            as borrower and (ii) Deutsche Schiffsbank Aktiengesellschaft as
            lender in respect of a loan facility of (originally) $19,000,000 of
            which an amount (of which an amount of $14,000,000 is outstanding by
            way or principal on the date of this Agreement),

      and, in the singular, means any of them;

      "Existing Ships" means, together, the Ships referred to in Schedule 2,
      Part A and, in the singular means any of them and when referred to by name
      means that Ship;

      "Existing Ships Earnings Accounts Pledge" means a pledge agreement
      creating security in favour of the Creditor Parties in respect of the
      Earnings Accounts of all the Existing Ships in such form as the Lenders
      may approve or require;

      "Final Maturity Date" means 31 May 2016;

      "Finance Documents" means:

      (a)   this Agreement;

      (b)   the Master Agreements;

      (c)   the Agency and Trust Deed;

      (d)   the Guarantees;

      (e)   the Wealth Guarantee;

      (f)   the Master Agreement Assignments;

      (g)   the Mortgages;

      (h)   the General Assignments;

      (i)   the Deeds of Covenant;

      (j)   the Borrower's Accounts Pledge;

      (k)   the Existing Ships Earnings Accounts Pledge; the

      (l)   Identified Ship Earnings Account Pledge;

      (m)   the Additional Ship Earnings Account Pledges;

      (n)   the Wealth Account Pledge;

      (o)   any Charterparty Assignment;

      (p)   the Hille Oldendorff Tripartite Agreement;

      (q)   the Management Agreement Assignments;

      (r)   the Manager's Undertakings;

      (s)   the Counter Indemnity; and

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

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

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

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

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

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

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

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

      "Financial Year" means in relation to the Group, each period of 1 year
      commencing on 1 January in respect of which its consolidated accounts are
      or ought to be prepared;

      "Fleet Vessels" means together all of the vessels (including, but not
      limited to, the Ships) from time to time owned by members of the Group;

      "GAAP" means generally accepted accounting principles as from time to time
      in effect in the United States of America;

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

      "Goodwill" means Goodwill Shipping Company Limited, a company incorporated
      in Malta having its registered office at 5/2 Merchants Street, Valletta,
      Malta;

      "Group" means the Borrower and its subsidiaries (whether direct or
      indirect and including, but not limited to, the Owners) from time to time
      during the Security Period and "member of the Group" shall be construed
      accordingly;

      "Guarantee" means a guarantee of the Borrower's obligations under (inter
      alia) this Agreement, the Master Agreements and the Junior Loan Agreement
      executed or to be executed by each Owner in favour of the Security Trustee
      in such form as the Lenders shall approve or require and, in the plural,
      means all of them;

      "HBOSTS" means HBOS Treasury Services plc of 33 Old Broad Street, London
      EC2N 1HZ, England and includes its successors in title, assignees and
      transferees;

      "Hedge Strategy Letter" means a letter issued or to be issued by no later
      than 30 April 2006 by the Borrower to the Agent setting out a strategy for
      hedging the Borrower's exposure under this Agreement to fluctuations of
      LIBOR arising from the funding at least 60 percent of the Loan for a
      consecutive period of at least 5 years during the Security Period;

      "Hille Oldendorff Charterparty" means a bareboat charterparty dated 29
      August 2005 in respect of "HILLE OLDENDORFF" made between Goodwill as
      original owner and Oldendorff Carriers GmbH & Co. KG ("Oldendorff') as
      original charterer (as the same has been novated to the Hille Oldendorff
      Charterer by an addendum no. 1 thereto dated 6 October 2005 and as the
      same shall be novated to Seaventure by an addendum no. 2 thereto to be
      made between Goodwill, Seaventure, the Hille Oldendorff Charter and the
      Hille Oldendorff Charter Guarantor);

      "Hille Oldendorff Charterer" means Catania Shipping Inc., a Liberian
      corporation whose registered office is at 80 Broad Street, Monrovia,
      Liberia;

      "Hille Oldendorff Charter Guarantee" means the guarantee by the Hille
      Oldendorff Charter Guarantor of the obligations of the Hille Oldendorff
      Charterer under the Hille Oldendorff Charterparty as evidenced in Addendum
      No. 1 thereto dated 6 October 2005;

      "Hille Oldendorff Charter Guarantor" means Oldendorff Carriers GmbH & Co.
      KG, a German company acting through its office at Willy-Brandt-Allee 6,
      23554 Lubeck, Germany;

      "Hille Oldendorff Charter Period" means the period commencing on the date
      of delivery of "HILLE OLDENDORFF" under the Hille Oldendorff Charterparty
      and ending on the date on which the Hille Oldendorff Charterparty expires
      by effluxion of time or (if earlier) on the date on which the Hille
      Oldendorff Charterparty is otherwise terminated or frustrated or "HILLE
      OLDENDORFF" is withdrawn from hire under the Hille Oldendorff
      Charterparty;

      "Hille Oldendorff MOA" means, a memorandum of agreement in respect of
      "HILLE OLDENDORFF" dated 24 March 2006 made between Goodwill as seller and
      Seaventure as buyer;

      "Hille Oldendorff Seller's Credit Agreement" means an agreement made or to
      be made between Seaventure and Goodwill whereby Goodwill shall agree to
      defer the payment of $3,250,000 of the purchase price payable by
      Seaventure pursuant to the Hille Oldendorff MOA with such deferred amount
      being payable, subject to Clause 11.22, in one amount no earlier than 9
      months after the Drawdown Date in respect of the Identified Ship Advance
      and no later than 12 months after the Drawdown Date in respect of the
      Identified Ship Advance, such agreement to be in a form acceptable to the
      Majority Lenders;

      "Hille Oldendorff Tripartite Agreement" means, in relation to "HILLE
      OLDENDORFF", an agreement made between the Hille Oldendorff Charterer,
      Seaventure and the Security Trustee in such form as the Lenders may
      approve or require;

      "IACS" means the International Association of Classification Societies;

      "Identified Ship" means "HILLE OLDENDORFF" being the Ship referred to in
      Schedule 2, Part B and when referred to by name means that Ship;

      "Identified Ship Advance" means an amount of up to the lesser of (a)
      $22,691,000 and (b) 63 percent of the Market Value of the Identified
      Ship (determined in accordance with the valuation referred to in paragraph
      10 of Schedule 5, Part C) which is to be made available in accordance with
      and pursuant to Clauses 2.3 and 4.2(d);

      "Identified Ship Earnings Account Pledge" means a pledge agreement
      creating security in favour of the Creditor Parties in respect of the
      Earnings Account of the Identified Ship in such form as the Lenders may
      approve or require;

      "Insurances" means, in relation to each Ship:

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

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

      "Interest Coverage Ratio" means, in relation to a Compliance Date or an
      accounting period, the ratio of (a) EBITDA for the most recent financial
      period of the Group ending on the Compliance Date to (b) the Net Interest
      Expenses for that financial period (calculated on a trailing 12-months
      basis);

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

      "ISM Code" means:

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

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

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

      "ISM Code Documentation" includes, in relation to each Ship:

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

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

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

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

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

      "ISPS Code Documentation" includes:

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

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

      "Junior Designated Transaction" has the meaning given to the term
      "Designated Transaction" in the Junior Loan Agreement;

      "Junior Lenders" means, subject to clause 26.6 of the Junior Loan
      Agreement:

      (a)   a bank or financial institution listed in schedule 1 to the Junior
            Loan Agreement and acting through its branch indicated in schedule 1
            to the Junior Loan Agreement (or through another branch notified to
            the Borrower under clause 26.14 of the Junior Loan Agreement) unless
            it has delivered a Junior Loan Transfer Certificate or Certificates
            covering the entire amounts of its Commitment (as such term is
            defined in the Junior Loan Agreement) and its Contribution (as such
            term is defined in the Junior Loan Agreement); and

      (b)   the holder for the time being of a Junior Loan Transfer Certificate;

      "Junior Loan" means the principal amount for the time being outstanding
      under the Junior Loan Agreement;

      "Junior Loan Agreement" means the Loan Agreement to be made between the
      Borrower as borrower, the Junior Lenders, the Agent, the Security Trustee
      and the Junior Swap Banks in respect of term loan and short-term credit
      facilities of up to $110,000,000 in aggregate;

      "Junior Loan Transfer Certificate" has the meaning given in clause 26.2 of
      the Junior Loan Agreement;

      "Junior Master Agreement" has the meaning given to the term "Master
      Agreement" in the Junior Loan Agreement;

      "Junior Swap Bank" has the meaning given to the terms "Swap Bank" in the
      Junior Loan Agreement;

      "Lender" means, subject to Clause 26.6:

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

      (b)   the holder for the time being of a Transfer Certificate;

      "LIBOR" means, for an Interest Period:

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

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

      (c)   in relation to any Interest Period of 12 months or more, the average
            of the actual costs to the Lenders of funding their participation in
            the Loan;

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

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

      "Majority Lenders" means Lenders whose Commitments total at least 60
      percent of the Total Commitments;

      "Manager's Undertaking" means, in relation to each Ship, a letter of
      undertaking executed or to be executed by the Approved Manager in favour
      of the Security Trustee in such form as the Lenders may approve or require
      agreeing certain matters in relation to the management of that Ship and
      subordinating the rights of the Approved Manager against the Ship and the
      Owner thereof to the rights of the Creditor Parties under the Finance
      Documents and, in the plural, means all of them;

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

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

      "Mandatory Cost" means the percentage rate per annum calculated by the
      Agent in accordance with Schedule 9;

      "Margin" means:

      (a)   at any time when the Security Cover Percentage is equal to, or less
            than, 67.5 percent, 1 percent per annum; and

      (b)   at all other times, 1.1 percent per annum;

      "Market Adjusted Equity Ratio" means, in relation to a Compliance Date,
      the ratio of (a) the Adjusted Equity for the most recent financial period
      of the Group ending on the Compliance Date to (b) the aggregate of (i)
      Total Interest Bearing Liabilities and (ii) Adjusted Equity for that
      financial period;

      "Market Value" means, in relation to each Ship and each Fleet Vessel, the
      market value thereof calculated in accordance with Clause 15.4;

      "Market Value Adjusted Net Worth" means Paid-Up Capital plus General
      Reserves plus Retained Earnings adjusted to reflect the difference between
      the book values of the Fleet Values and the Market Values of all Fleet
      Vessels at any relevant time;

      "Market Value Adjusted Total Assets" means, at any time, Total Assets
      adjusted to reflect the Market Value of all Fleet Vessels;

      "Master Agreement" means each master agreement (on the 1992 or, as the
      case may be, 2002 ISDA (Multicurrency - Crossborder) form) made between
      the Borrower and a Swap Bank and includes all Designated Transactions from
      time to time entered into and Confirmations from time to time exchanged
      under the master agreement and, in the plural, means both of them;

      "Master Agreement Assignment" means, in relation to each Master Agreement,
      the assignment of that Master Agreement in such form as the Lenders may
      approve or require and, in the plural, means both of them;

      "Mortgage" means:

      (a)   in relation to each Existing Ship and the Identified Ship, a first
            priority Maltese statutory mortgage on such Ship; and

      (b)   in relation to each Additional Ship, a first priority or preferred
            mortgage on such Ship under the relevant Approved Flag,

      each in such form as the Lenders may approve or require and, in plural,
      means all of them;

      "Negotiation Period" has the meaning given in Clause 5.9;

      "Net Income" means, in relation to each Financial Year of the Borrower,
      the aggregate income of the Group appearing in the Applicable Accounts for
      that Financial Year less the aggregate of:

      (a)   the amounts incurred by the Group during that Financial Year as
            expenses of its business;

      (b)   depreciation, amortisation and all interest in respect of all
            Financial Indebtedness of the Group paid by all members of the Group
            during that Financial Year;

      (c)   Net Interest Expenses;

      (d)   taxes; and

      (e)   other items charged to the Borrower's consolidated profit and loss
            account for the relevant Financial Year;

      "Net Interest Expenses" means, as of any Compliance Date, the aggregate of
      all interest, commitment and other fees, commissions, discounts and other
      costs, charges or expenses accruing due from all the members the Group
      during that accounting period less interest income received, determined on
      a consolidated basis in accordance with GAAP and as shown in the
      consolidated statements of income for the Group in the Applicable
      Accounts;

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

      "Owner" means in relation to:

      (a)   each Existing Ship, the corporation which is specified in Schedule
            2, Part A as the owner thereof, being a company incorporated in
            Malta having its registered office at 512 Merchants Street,
            Valletta, Malta;

      (b)   the Identified Ship, Seaventure; and

      (c)   an Additional Ship, the Additional Ship Owner of that Ship,

      (h)   each being a company which is a direct or indirect wholly-owned
            subsidiary of the Borrower and in the plural means all of them;

      "Paid-Up Capital", "General Reserves" and "Retained Earnings" have the
      meanings ascribed to them in the Applicable Accounts;

      "Payment Currency" has the meaning given in Clause 21.5;

      "Permitted Security Interests" means:

      (a)   Security Interests created by the Finance Documents;

      (b)   Security Interest created pursuant to, or in connection with, the
            Existing Loan Agreements;

      (c)   liens for unpaid crew's wages in accordance with usual maritime
            practice;

      (d)   liens for salvage;

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

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

      (g)   any Security Interest created in favour of a plaintiff or defendant
            in any action of the court or tribunal before whom such action is
            brought as security for costs and expenses where the relevant Owner
            is prosecuting or defending such action in good faith by appropriate
            steps; and

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

      "Pertinent Jurisdiction", in relation to a company, means:

      (a)   England and Wales;

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

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

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

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

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

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

      "Reference Banks" means, subject to Clause 26.16, together, HSH Nordbank
      AG and BOS and any of their respective successors and in the singular
      means any of them;

      "Refinancing Advance" means an amount of up to $437,309,000 which is to be
      used (a) in refinancing part of the Existing Indebtedness and (b) to
      provide the Borrower with working capital for its general corporate
      purposes and which is to be made available in accordance with and pursuant
      to Clauses 2.3 and 4.2(c);

      "Relevant Person" has the meaning given in Clause 19.9;

      "Repayment Date" means a date on which a repayment is required to be made
      under Clause 8;

      "Repayment Instalment" means, in relation to:

      (a)   the Term Loan, each of the 40 repayment instalments listed in
            Schedule 4; and

      (b)   an Additional Advance, each repayment instalment in respect of that
            Additional Advance specified in the repayment schedule for that
            Additional Advance referred to in Clause 8.1(a)(ii) and calculated
            in accordance with Clause 8.1(b);

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

      "Retention Account" means an account in the name of the Borrower with the
      Agent in Hamburg designated "Dryships Inc. - Retention Account", or any
      other account (with that or another office of the Agent) which is
      designated by the Agent as the Retention Account for the purposes of this
      Agreement;

      "Seaventure" means Seaventure Shipping Limited, a corporation incorporated
      in the Marshall Islands and having its registered office at Trust Company
      Complex, Ajeltake Road, Ajeltake Island, Majuro, The Marshall Islands MH
      96960;

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

      "Security Cover Percentage" means, at any relevant time, the Loan
      expressed as a percentage of the aggregate of the amounts referred to in
      paragraphs (a) and (b) of Clause 15.I;

      "Security Interest" means:

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

      (b)   the rights of the plaintiff under an action in rem in which the
            vessel concerned has been arrested or a writ has been issued or
            similar step taken; and

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

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

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

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

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

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

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

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

      "Ships" means, together, the Existing Ships, the Identified Ships and the
      Additional Ships and, in the singular, means any of them;

      "Swap Bank" means each of the banks listed in Part B of Schedule 1 acting
      through its branch or office indicated in Part B of Schedule 1 and any
      other Lender which enters into a Master Agreement with the Borrower for
      the purpose of entering into a Designated Transaction and, in the plural,
      means all of them;

      "Swap Exposure" means, as at any relevant date, the amount certified by
      the Swap Banks to the Agent to be the aggregate net amount in Dollars
      which would be payable by the Borrower to the Swap Banks under (and
      calculated in accordance with) section 6(e) (Payments on Early
      Termination) of each Master Agreement if an Early Termination Date had
      occurred on the relevant date in relation to all continuing Designated
      Transactions entered into between the Borrower and the Swap Banks;

      "Term Loan" means an amount of up to $460,000,000 (representing the
      maximum aggregate principal amount of the Refinancing Advance and the
      Identified Ship Advance) or the aggregate principal amount of the
      Refinancing Advance and the Identified Ship Advance for the time being
      outstanding under this Agreement;

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

      "Total Assets" means, as of any Compliance Date, the aggregate value of
      all trade debtors and the value of all stock (valued in accordance with
      GAAP) and all other investments and other tangible and intangible assets
      of the Group properly included in the Applicable Accounts as "fixed
      assets" in accordance with GAAP but excluding any assets held on trust;

      "Total Commitments" means the aggregate of the Total Term Loan Commitments
      and the Total Credit Facility Commitments;

      "Total Interest Bearing Liabilities" means, as of any Compliance Date, the
      consolidated total amount of the interest bearing Financial Indebtedness
      of the Group;

      "Total Liabilities" means, as of any Compliance Date, the aggregate
      Financial Indebtedness of the Group;

      "Total Loss" means in relation to each Ship:

      (a)   actual, constructive, compromised, agreed or arranged total loss of
            that Ship;

      (b)   any expropriation, confiscation, requisition or acquisition of the
            Ship, whether for full consideration, a consideration less than her
            proper value, a nominal consideration or without any consideration,
            which is effected by any government or official authority or by any
            person or persons claiming to be or to represent a government or
            official authority, excluding a requisition for hire for a fixed
            period not exceeding one year without any right to an extension;

      (c)   any condemnation of the Ship by any tribunal or by any person or
            person claiming to be a tribunal;

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

      "Total Loss Date" means:

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

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

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

            (ii)  the date of any compromise, arrangement or agreement made by
                  or on behalf of the relevant Owner, with the Ship's insurers
                  in which the insurers agree to treat the Ship as a total loss;
                  and

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

      "Transaction" has the meaning given in each Master Agreement;

      "Transfer Certificate" has the meaning given in Clause 26.2;

      "Trust Property" has the meaning given in clause 3.1 of the Agency and
      Trust Dee;

      "Wealth" means Wealth Management Inc., a corporation incorporated in the
      Marshall Islands and having its registered office at Trust Company
      Complex, Ajeltake Road, Ajeltake Island, Majuro, The Marshall Islands MH
      96960;

      "Wealth Account" means an account in the name of Wealth with the Agent in
      Hamburg designated "Wealth Management Inc. - Cash Management Account" or
      any other account (with that or another office of the Agent) which is
      designated by the Agent as the Wealth Account for the purposes of this
      Agreement;

      "Wealth Account Pledge" means a pledge agreement creating security in
      favour of the Creditor Parties in respect of the Wealth Account in such
      form as the Lenders may approve or require; and

      "Wealth Guarantee" means a guarantee of the Borrower's obligations under
      (inter alia) this Agreement, the Master Agreements and the Junior Loan
      Agreement executed or to be executed by Wealth in favour of the Security
      Trustee in such form as the Lenders shall approve or require and, in the
      plural, means all of them.

1.3   Construction of certain terms. In this Agreement:

      "approved" means, for the purposes of Clause 13, approved in writing by
      the Agent;

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

      "company" includes any partnership, joint venture and unincorporated
      association;

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

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

      "document" includes a deed; also a letter, fax or telex;

      "excess risks" means the proportion of claims for general average, salvage
      and salvage charges not recoverable under the hull and machinery policies
      in respect of any Ship in consequence of her insured value being less than
      the value at which that Ship is assessed for the purpose of such claims;

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

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

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

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

      "months" shall be construed in accordance with Clause 1.3;

      "obligatory insurances" means all insurances effected, or which the
      Borrower is obliged to effect, under Clause 13 below or any other
      provision of this Agreement or another Finance Document;

      "parent company" has the meaning given in Clause 1.4;

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

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

      "protection and indemnity risks" means the usual risks covered by a
      protection and indemnity association managed in London, including
      pollution risks and the proportion (if any) of any sums payable to any
      other person or persons in case of collision which are not recoverable
      under the hull and machinery policies by reason of the incorporation
      therein of clause 1 of the Institute Time Clauses (Hulls)(1/10/83) or
      clause 8 of the Institute Time Clauses (Hulls) (1/11/1995) or the
      Institute Amended Running Down Clause (1110171) or any equivalent
      provision;

      "regulation" includes any regulation, rule, official directive, request or
      guideline (either having the force of law or compliance with which is
      reasonable in the ordinary course of business of the party concerned) of
      any governmental, intergovernmental or supranational body, agency,
      department or regulatory, self-regulatory or other authority or
      organisation;

      "subsidiary" has the meaning given in Clause 1.4;

      "successor" includes any person who is entitled (by assignment, novation,
      merger or otherwise) to any other person's rights under this Agreement or
      any other Finance Document (or any interest in those rights) or who, as
      administrator, liquidator or otherwise, is entitled to exercise those
      rights; and in particular references to a successor include a person to
      whom those rights (or any interest in those rights) are transferred or
      pass as a result of a merger, division, reconstruction or other
      reorganisation of it or any other person;

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

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

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

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

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

      and "month" and "monthly" shall be construed accordingly.

1.5   Meaning of "subsidiary". A company (S) is a subsidiary of another company
      (P) if:

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

(b)   P has direct or indirect control over a majority of the voting rights
      attached to the issued shares of S; or

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

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

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

1.6   General Interpretation.

(a)   In this Agreement:

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

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

      (iii) words denoting the singular number shall include the plural and vice
            versa.

(b)   Clauses 1.1 to 1.4 and paragraph (a) of this Clause 1.5 apply unless the
      contrary intention appears.

(c)   References in Clause 1.1 to a document being in the form of a particular
      Appendix include references to that form with any modifications to that
      form which the Agent (with the authorisation of the Majority Lenders in
      the case of substantial modifications) approves or reasonably requires.

(d)   The clause headings shall not affect the interpretation of this Agreement.

2     FACILITY

2.1   Amount of facility. Subject to the other provisions of this Agreement, the
      Lenders shall make available to the Borrower term loan and credit
      facilities not exceeding $518,750,000 in aggregate at any time.

2.2   Lenders' participations in Loan. Subject to the other provisions of this
      Agreement, each Lender shall participate in:

(a)   each of the Refinancing Advance and the Identified Ship Advance in the
      proportion which, as at the relevant Drawdown Date, its Term Loan
      Commitment bears to the Total Term Loan Commitments; and

(b)   each Additional Advance in the proportion which, as at the relevant
      Drawdown Date, its Credit Facility Commitment bears to the Total Credit
      Facility Commitments.

2.3   Purpose of Loan. The Borrower undertakes with each Creditor Party to use
      each Advance only for the purpose stated in the preamble to this
      Agreement.

3     POSITION OF THE LENDERS, THE SWAP BANKS AND THE MAJORITY LENDERS

3.1   Interests of Lenders and Swap Bank several. The rights of the Lenders and
      the Swap Banks under this Agreement and each Master Agreement are several;
      accordingly:

(a)   each Lender shall be entitled to sue for any amount which has become due
      and payable by the Borrower to it under this Agreement; and

(b)   each Swap Bank shall be entitled to sue for any amount which has become
      due and payable by the Borrower to it under the Master Agreement to which
      that Swap Bank is a party,

      without joining the Agent, the Security Trustee, any other Lender or any
      Swap Bank as additional parties in the proceedings.

3.2   Proceedings by individual Lender or Swap Bank. However, without the prior
      consent of the Majority Lenders, no Lender and neither Swap Bank may bring
      proceedings in respect of:

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

(b)   any misrepresentation or breach of warranty by the Borrower or a Security
      Party in or connected with a Finance Document or a Master Agreement.

3.3   Obligations several. The obligations of the Lenders under this Agreement
      and of the Swap Banks under the Master Agreements are several; and a
      failure of a Lender to perform its obligations under this Agreement or of
      a Swap Bank to perform its obligations under the Master Agreement to which
      it is a party shall not result in:

(a)   the obligations of the other Lenders being increased; nor

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

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

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

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

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

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

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

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

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

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

4     DRAWDOWN

4.1   Request for Advance. Subject to the following conditions, the Borrower may
      request an Advance to be made by ensuring that the Agent receives a
      completed Drawdown Notice not later than 11.00 a.m. (Hamburg time) 3
      Business Days prior to the intended Drawdown Date.

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

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

(b)   (subject to paragraph (g) of this Clause 4.2) each Advance shall be made
      available in a single amount;

(c)   the Refinancing Advance shall not exceed lesser of (i) $437,309,000 and
      (ii) 63 percent of the aggregate Market Values of the Existing Ships (as
      determined in accordance with the valuations referred to in paragraph 12
      of Schedule 5, Part A) and shall be applied in refinancing part of the
      Existing Indebtedness and as to any balance to provide the Borrower with
      working capital for its general corporate purposes;

(d)   the Identified Ship Advance shall not exceed the lesser of (i) $22,691,000
      and (ii) 63 percent of the Market Value of "HILLE OLDENDORFF" (as
      determined by the valuation referred to in paragraph 9 of Schedule 5,
      Party B) and shall be applied in financing part of the purchase price of
      "HILLE OLDENDORFF" payable pursuant to the Hille Oldendorff MOA;

(e)   the Refinancing Advance and the Identified Ship Advance shall not in
      aggregate exceed 63 percent of the aggregate Market Values of the
      Existing Ships and the Identified Ship (determined in accordance with the
      valuations referred to respectively in paragraph 12 of Schedule 5, Part A
      (in the case of the Existing Ships) and paragraph 9 of Schedule 5, Part B
      (in the case of the Identified Ship));

(f)   (subject to Clause 2.4) each Additional Advance shall not exceed 63
      percent of the Market Value of the Additional Ship whose purchase price is
      to be part-financed by that Additional Advance (as determined in
      accordance with the valuations referred to in paragraph 10 of Schedule 5,
      Part C);

(g)   any amount undrawn in respect of an Advance may be borrowed at a later
      date subject to the satisfaction of the other conditions of this Clause
      4.2 save and except that the Agent (acting upon the instructions of the
      Majority Lenders) may rely on the valuations of the Ships previously
      provided to it pursuant to Clause 9.1 without seeking new valuations for
      the purpose of determining the Borrower's satisfaction of the conditions
      of this Clause 4.2 at the time of drawdown of any undrawn amount of an
      Advance; and

(h)   the aggregate of the Advances shall not exceed the Total Commitments.

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

(a)   the amount of the Advance and the Drawdown Date;

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

(c)   the duration of the first Interest Period applicable to that Advance.

4.4   Drawdown Notice irrevocable. A Drawdown Notice must be signed by a
      director or a duly authorised signatory of the Borrower; and once served,
      a Drawdown Notice cannot be revoked without the prior consent of the
      Agent, acting on the authority of the Majority Lenders.

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

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

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

(b)   in the like funds as the Agent received the payments from the Lenders.

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

4.8   Review of Availability Period for Credit Facility. The Lenders may, in
      their sole and absolute discretion (without any obligation to do so),
      agree to extend the original Availability Period which applies to the
      Credit Facility (being a period ending on the date falling 364 days after
      the date of this Agreement) if at the end of such period the Total Credit
      Facility Commitments have not been fully drawn. If all the Lenders agree
      to extend the applicable Availability Period in accordance with this
      Clause 4.8 the Agent shall send to the Borrower a notice in writing
      advising it of the period by which the Availability Period will be
      extended.

5     INTEREST

5.1   Payment of normal interest. Subject to the provisions of this Agreement,
      interest on each Advance and the Loan and each part thereof in respect of
      each Interest Period shall be paid by the Borrower on the last day of that
      Interest Period.
<PAGE>

5.2   Normal rate of interest. Subject to the provisions of this Agreement, the
      rate of interest on each Advance and the Loan and each part thereof in
      respect of an Interest Period shall, subject to Clause 6.4, be the
      aggregate of (i) the applicable Margin, (ii) the Mandatory Cost (if any)
      and (iii) LIBOR.

5.3   Payment of accrued interest. In the case of an Interest Period longer than
      3 months, accrued interest shall be paid every 3 months (or, in the case
      of Interest Periods of 12 months or longer, every 6 months) during that
      Interest Period and on the last day of that Interest Period.

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

(a)   each rate of interest; and

(b)   the duration of each Interest Period;

      as soon as reasonably practicable after each is determined.

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

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

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

(b)   at least one Business Day before the start of an Interest Period, Lenders
      having Contributions together amounting to more than 30 percent of the
      Loan (or, if an Advance has not been made, Commitments amounting to more
      than 30 percent of the Total Commitments) notify the Agent that LIBOR
      fixed by the Agent would not accurately reflect the cost to those Lenders
      of funding their respective Contributions (or any part of them) during the
      Interest Period in the London Interbank Dollar Market at or about 11.00
      a.m. (London time) on the second Business Day before the commencement of
      the Interest Period; or

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

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

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

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

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

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

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

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

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

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

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

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

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

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

5.15  Calculation of Security Cover Percentage. The Agent shall calculate the
      Security Cover Percentage on the first Drawdown Date, on 30 September 2006
      and every 6 months thereafter (each a "Margin Calculation Date") for the
      purposes of calculating the Margin and shall advise the Borrower and the
      Lenders in writing, within 10 Business Days of each Margin Calculation
      Date, of the Margin which will apply for the 6-month period commencing on
      the relevant Margin Calculation Date Provided that in respect of each
      Margin Calculation Date other than the first Margin Calculation Date, the
      Agent shall only be obliged to advise the Borrowers and the Lenders of the
      Margin which will apply for the 6-month period commencing on the relevant
      Margin Calculation Date if that Margin will be different to the Margin
      which applies immediately prior to the relevant Margin Calculation Date.

      For the purposes of calculating the Security Cover Percentage pursuant to
      this Clause 5.15, the Market Value of the Ships shall be determined no
      more than 15 days prior to the relevant Margin Calculation Date.

6     INTEREST PERIODS

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

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

(a)   1, 3, 6 or 12 months as notified by the Borrower to the Agent not later
      than 11.00 a.m. (Hamburg time) 3 Business Days before the commencement of
      the Interest Period Provided that there may be no more than 3 Interest
      Periods having a duration of 1 month in any calendar year; or

(b)   in the case of the first Interest Period applicable to the second and any
      subsequent Advance, a period ending on the last day of the then current
      Interest Period whereupon all of the Advances shall be consolidated and
      treated as a single Advance Provided that should the Agent, in its sole
      discretion, permit the Borrower to select more than one Interest Period at
      any time, then under no circumstances shall the Borrower be allowed to
      select more than 5 separate Interest Periods at any time;

(c)   3 months, if the Borrower fails to notify the Agent by the time specified
      in paragraph (a) above; or

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

6.3   Duration of Interest Periods for repayment instalments. In respect of an
      amount due to be repaid under Clause 8 on a particular Repayment Date, an
      Interest Period shall end on that Repayment Date.

6.4   Interest Periods longer than 12 months. If, after the Borrower has
      selected an Interest Period longer than I2 months, and the Lenders have,
      in their absolute discretion, agreed to such selection, then the rate of
      interest for that Interest Period shall be the aggregate of the applicable
      Margin, the Mandatory Cost and the Lenders' cost of funding the Loan (or
      the applicable part thereof) for such period, as agreed between the
      Lenders and notified to the Agent.

7     DEFAULT INTEREST

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

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

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

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

7.2   Default rate of interest. Interest shall accrue on an overdue amount from
      (and including) the relevant date until the date of actual payment (as
      well after as before judgment) at the rate per annum determined by the
      Agent to be 2 percent above:

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

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

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

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

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

      (i)   LIBOR; or

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

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

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

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

7.7   Application to Master Agreements. For the avoidance of doubt, this Clause
      7 does not apply to any amount payable under a Master Agreement in respect
      of any continuing Designated Transaction as to which section 2(e) (Default
      Interest; Other Amounts) of that Master Agreement shall apply.

8     REPAYMENT AND PREPAYMENT

8.1   Amount of Repayment Instalments.

(a)   The Borrower shall repay:

      (i)   the Term Loan by 40 consecutive three-monthly Repayment Instalments
            and a Balloon Instalment (payable together with the fortieth such
            instalment) in the amounts referred to in Schedule 4 Provided that
            if the amount of the Term Loan drawn down under this Agreement is
            less than $460,000,000, the Balloon Instalment shall be reduced by
            an amount equal to the undrawn amount of the Term Loan; and

      (ii)  each Additional Advance by the Repayment Instalments (calculated in
            accordance with Clause 8.1(b)) set out in a repayment schedule
            applicable to that Additional Advance to be provided to the Borrower
            by the Agent before the Drawdown Date relative to the relevant
            Additional Advance which shall provide for the repayment of that
            Advance over the Relevant Repayment Period by equal consecutive
            three-monthly Repayment Instalments (other than the first such
            Repayment Instalment which shall be paid on the first Repayment Date
            in respect of the Term Loan falling after the Drawdown Date of the
            relevant Additional Advance) and, if applicable, a Balloon
            Instalment (payable together with the last such Repayment
            Instalment).

            In this Clause 8.1 "Relevant Repayment Period" means in the case of
            an Additional Advance which has been used to part-finance the
            acquisition of an Additional Ship built:

            (A)   between 1993 and 1996, the lesser of (A) 84 months and (B) the
                  number of months between the Drawdown Date of the relevant
                  Additional Advance and the Final Maturity Date; and

            (B)   on or after 1997, the number of months between the Drawdown
                  Date of the relevant Additional Advance and the Final Maturity
                  Date; and

(b)   the Repayment Instalment for each Additional Advance shall be "D" and the
      Balloon Instalment for each Additional Advance shall be "G" where:

      "A" means the amount of the relevant Additional Advance;

      "B" means, in the case of an Additional Ship built:

      (i)   between 1993 and 1996, 7;

      (ii)  between 1997 and 2000, 11;

      (iii) between 2001 and 2003, 15; and

      (iv)  on or after 2004, 18;

      "C" means A divided by B;

      "D" means C divided by 4;

      "E" means the number of months in the Relevant Repayment Period (or if the
      number of months in the Relevant Repayment Period is not fully divisible
      by 3, the nearest number of months (rounded downwards) which is fully
      divisible by 3) divided by 12;

      "F" means the product of (i) D, (ii) 4 and (iii) E; and

      "G" means A minus F.

8.2   Repayment Dates. Repayment Instalments shall be paid as follows:

(a)   each Repayment Instalment in respect of the Term Loan shall be repaid on
      the Repayment Date applicable to that Repayment Instalment as outlined in
      Schedule 4;

(b)   the first Repayment Instalment in respect of each Additional Advance shall
      be repaid on the first Repayment Date in respect of the Term Loan falling
      after the Drawdown Date of that Additional Advance, each subsequent
      Repayment Instalment shall be paid at 3-monthly intervals thereafter and
      the last Repayment Instalment together with the relevant Balloon
      Instalment shall be paid on the date referred to in the repayment schedule
      to be provided by the Agent to the Borrower pursuant to Clause 8.1(b).

8.3   Consolidation of Additional Advances with Term Loan, On the Drawdown Date
      in respect of each Additional Advance (following the making of that
      Advance to the Borrower), the relevant Additional Advance shall be
      consolidated into the Term Loan and the Term Loan and the relevant
      Additional Advance shall thereafter be repaid on the same dates. The Agent
      shall following the consolidation of each Additional Advance with the Term
      Loan referred to in this Clause 8.3 send to all the Creditor Parties and
      the Borrower a schedule specifying the aggregate repayments of the
      consolidated Advances on each subsequent Repayment Date and this schedule
      shall thereafter be substituted for, and replace, the repayment schedule
      set out in Schedule 4 which shall cease to have effect.

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

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

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

(a)   the Borrower shall make a simultaneous prepayment of a proportion of the
      Junior Loan equal to the proportion of the Loan being prepaid hereunder at
      that time;

(b)   any partial prepayment to be applied against the Loan and the Junior Loan
      shall be $5,000,000 in aggregate or a higher multiple thereof;

(c)   the Agent has received from the Borrower at least 15 days' prior written
      notice specifying the amount to be prepaid and the date on which the
      prepayment is to be made (such date shall be the last day of an Interest
      Period); and

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

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

8.8   Notification of notice of prepayment. The Agent shall notify the Lenders
      promptly upon receiving a prepayment notice, and shall provide any Lender
      which so requests with a copy of any document delivered by the Borrower
      under Clause 8.6(d).

8.9   Mandatory prepayment. The Borrower shall be obliged to prepay the Relevant
      Amount of the Loan:

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

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

      In this Clause 8.9, "Relevant Amount" means 115 percent of the Relevant
      Proportion of the Loan and "Relevant Proportion" means the amount which
      results from multiplying (a) the Loan with (b) the Market Value of the
      relevant Ship immediately prior to its sale or Total Loss divided by the
      aggregate Market Values immediately prior to such sale or Total Loss of
      all of the Ships as are then subject to a Mortgage.

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

8.11  Application of partial prepayment. Any sum received by the Agent pursuant
      to Clauses 8.4 and 8.9 shall be applied in prepayment of the Term Loan,
      the Credit Facility and the Junior Loan pro rata by reference to the
      outstanding amount of each of the Term Loan, the Credit Facility and the
      Junior Loan as at the date of such prepayment, and the amount to be
      applied in prepayment of each of the Loan and the Junior Loan shall be
      applied to proportionately reduce the Balloon Instalment and the then
      outstanding Repayment Instalments.

8.12  Reborrowing. No amount prepaid in respect of the Loan may be reborrowed.

8.13  Unwinding of Designated Transactions. On or prior to any repayment or
      prepayment of the Loan under this Clause 8 or any other provision of this
      Agreement, the Borrower shall wholly or partially reverse, offset, unwind
      or otherwise terminate one or more of the continuing Designated
      Transactions to the extent necessary to ensure that the notional principal
      amount of the continuing Designated Transactions thereafter remaining does
      not and will not in the future (taking into account the scheduled
      amortisation) exceed the amount of the Loan as reducing from time to time
      thereafter pursuant to Clause 8.1.

8.14  Prepayment of Swap Benefit. If a Designated Transaction is terminated in
      circumstances where a Swap Bank would be obliged to pay an amount to the
      Borrower under the Master Agreement to which that Swap Bank is a party,
      the Borrower hereby agrees that such payment shall be applied in
      prepayment of the Loan and authorises the Swap Bank to pay such amount to
      the Agent for such purpose.

9     CONDITIONS PRECEDENT

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

(a)   that, on or before the Drawdown Date relative to the Refinancing Advance,
      the Agent receives the documents described in Part A of Schedule 5 in form
      and substance satisfactory to the Agent and its lawyers;

(b)   that, on or before the Drawdown Date relative to the Identified Ship
      Advance, the Agent receives the documents described in Part B of Schedule
      5 in form and substance satisfactory to the Agent and its lawyers;

(c)   that, on or before the Drawdown Date relative to each Additional Advance,
      the Agent receives the documents described in Part C of Schedule 5 in form
      and substance satisfactory to the Agent and its lawyers;

(d)   that, on or before the service of the first Drawdown Notice, the Agent
      receives all accrued commitment fee and all other fees referred to in
      Clause 20.1 which are payable at that time and has received payment of the
      expenses referred to in Clause 20.2;

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

      (i)   no Event of Default or Potential Event of Default has occurred and
            is continuing or would result from the borrowing of the Loan;

      (ii)  the representations and warranties in Clause 10 and those of the
            Borrower or any Security Party which are set out in the other
            Finance Documents would be true and not misleading if repeated on
            each of those dates with reference to the circumstances then
            existing; and

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

(f)   that at each Drawdown Date, the Borrower will draw down the advance of the
      Junior Loan which shall be used to finance or refinance the same Ship or
      Ships which are to be financed or refinanced by the Advance being drawn
      down on the relevant Drawdown Date under this Agreement;

(g)   that, if the ratio set out in Clause 15.1 were applied immediately
      following the making of the Advance, the Borrower would not be obliged to
      provide additional security or prepay part of the Loan under that Clause;

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

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

10    REPRESENTATIONS AND WARRANTIES

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

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

10.3  Share capital and ownership. The Borrower has an authorised share capital
      divided into 75,000,000 registered shares of $0.01 each, 30,350,000 of
      which shares have been issued each fully paid.

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

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

(b)   to borrow under this Agreement, to enter into Designated Transactions
      under each Master Agreement and to make all the payments contemplated by,
      and to comply with, those Finance Documents to which the Borrower is a
      party.

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

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

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

(b)   create legal, valid and binding Security Interests enforceable in
      accordance with their respective terms over all the assets to which they,
      by their terms, relate subject to any relevant insolvency laws affecting
      creditors' rights generally.

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

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

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

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

(a)   any law or regulation; or

(b)   the constitutional documents of the Borrower; or

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

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

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

10.11 Information. All information which has been provided in writing by or on
      behalf of the Borrower or any Security Party to any Creditor Party in
      connection with any Finance Document satisfied the requirements of Clause
      11.5; all audited and unaudited accounts which have been so provided
      satisfied the requirements of Clause 11.7; and there has been no material
      adverse change in the financial position or state of affairs of the
      Borrower from that disclosed in the latest of those accounts.

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

10.13 No rebates etc. There is no agreement or understanding to allow or pay any
      rebate, premium, commission, discount or other benefit or payment
      (howsoever described) to Seaventure, the Hille Oldendorff Charterer or a
      third party in connection with the purchase by Seaventure and the bareboat
      chartering of the Identified Ship, other than as disclosed to the Lenders
      in writing on or prior to the date of this Agreement.

10.14 Compliance with certain undertakings. At the date of this Agreement, the
      Borrower is in compliance with Clauses 11.2, 11.4, 11.9 and 11.13.

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

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

10.17 No money laundering. Without prejudice to the generality of Clause 2.3, in
      relation to the borrowing by the Borrower of the Loan, the performance and
      discharge of its obligations and liabilities under the Finance Documents,
      and the transactions and other arrangements effected or contemplated by
      the Finance Documents to which the Borrower is a party, the Borrower
      confirms that it is acting for its own account and that the foregoing will
      not involve or lead to contravention of any law, official requirement or
      other regulatory measure or procedure implemented to combat "money
      laundering" (as defined in Article 1 of the Directive (91/308/EEC) of the
      Council of the European Communities).

11    GENERAL UNDERTAKINGS

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

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

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

(b)   not create or permit to arise any Security Interest (except for Permitted
      Security Interests) over any other asset, present or future (including,
      but not limited to the Borrower's rights against a Swap Bank under a
      Master Agreement or a Junior Master Agreement or all or any part of the
      Borrower's interest in any amount payable to the Borrower by a Swap Bank
      under a Master Agreement or a Junior Master Agreement); and

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

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

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

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

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

(a)   under the Finance Documents, the Junior Loan Agreement and the Existing
      Loan Agreements to which each is a party;

(b)   under the Master Agreements and the Junior Master Agreement (but in such
      case, only in connection with Designated Transactions and Junior
      Designated Transactions); and

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

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

11.6  Provision of financial statements. The Borrower will send to the Agent:

(a)   as soon as possible, but in no event later than 150 days after the end of
      each Financial Year of the Borrower (commencing with the Financial Year
      ended 31 December 2005), the audited consolidated accounts of the Group
      for that Financial Year;

(b)   as soon as possible, but in no event later than 90 days after the end of
      each quarterly period in each Financial Year of the Borrower (commencing
      with the financial quarter ending on 31 March 2006), the unaudited
      consolidated accounts of the Group for that financial quarter and
      additionally, in the case of each of the second, third and fourth
      financial quarters, the unaudited consolidated accounts of the Group for
      the period 1 January up to the end of the relevant financial quarter
      certified in each case as to their correctness by the chief financial
      officer of the Borrower; and

(c)   together with the quarterly financial statements referred to in paragraph
      (b) above for each of the second and fourth financial quarters in each
      Financial Year of the Borrower, two valuations of each Fleet Vessel each
      prepared by an Approved Broker (at the cost of the Borrower) in accordance
      with Clause 15.4, which valuations shall be used in determining the
      security cover ratio in accordance with Clause 15.1, the Margin in
      accordance with Clause 5.15 and (subject to the final paragraph of Clause
      12.5) the financial covenants referred to in Clause 12.4.

11.7  Form of financial statements. All accounts (audited and unaudited)
      delivered under Clause 11.6 will:

(a)   be prepared in accordance with all applicable laws and GAAP;

(b)   give a true and fair view of the state of affairs of the Group at the date
      of those accounts and of its profit for the period to which those accounts
      relate; and

(c)   fully disclose or provide for all significant liabilities of the Group.

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

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

(a)   for the Borrower to perform its obligations under any Finance Document;

(b)   for the validity or enforceability of any Finance Document;

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

      and the Borrower will comply (or procure compliance) with the terms of all
      such consents.

11.10 Maintenance of Security Interests. The Borrower will:

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

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

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

11.12 No amendment to Master Agreements; Transactions. The Borrower will not:

(a)   agree to any amendment or supplement to, or waive or fail to enforce,
      either Master Agreement or any of its provisions; or

(b)   enter into any Transaction pursuant to a Master Agreement except
      Designated Transactions.

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

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

(a)   states that no Event of Default or Potential Event of Default has
      occurred; or

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

      The Agent may serve requests under this Clause 11.14 from time to time but
      only if asked to do so by a Lender or Lenders having Contributions
      exceeding 10 percent of the Loan or (if no Advance has been made)
      Commitments exceeding 10 percent of the Total Commitments; and this
      Clause 11.14 does not affect the Borrower's obligations under Clause
      11.I5.

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

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

(b)   any matter which indicates that an Event of Default or a Potential Event
      of Default may have occurred;

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

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

(a)   to the Borrower, any Owner, Wealth, any Ship, the Approved Manager or any
      other Security Party, the Insurances or the Earnings; or

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

11.17 Provision of copies and translation of documents. The Borrower will supply
      the Agent with a sufficient number of copies of the documents referred to
      above to provide 1 copy for each Creditor Party; and if the Agent so
      requires in respect of any of those documents, the Borrower will provide a
      certified English translation prepared by a translator approved by the
      Agent.

11.18 Hedging of interest rate risks. The Borrower shall deliver to the Agent by
      no later than 30 April 2006 the duly signed Hedge Strategy Letter (in a
      form and on terms acceptable to the Agent which letter shall be prepared
      in consultation with, and with the assistance of, the Agent), and shall
      from time to time, enter into such Designated Transactions with a Swap
      Bank in order to implement the hedging strategy outlined in the Hedge
      Strategy Letter whereby for a period of at least 5 years from the Drawdown
      Date of the relevant Advance it will hedge all or the major part of the
      interest rate risk under this Agreement and the Junior Loan Agreement (but
      in any event not less than 60 percent of the interest rate risk under
      this Agreement and the Junior Loan Agreement outstanding at any time
      during the aforesaid 5-year period).

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

11.20 Debt Service Reserve Account. The Borrower shall ensure that there is
      standing to the credit of the Debt Service Reserve Account at all times an
      amount of at least $5,000,000 and any balance on the Debt Service Reserve
      Account may only be used to discharge the Borrower's payment liabilities
      under this Agreement, the Junior Loan Agreement, the Master Agreements and
      the Junior Master Agreements.

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

11.22 Hille Oldendorff Seller's Credit. The Borrower shall ensure that any
      payment to be made by Seaventure to Goodwill under the Hille Oldendorff
      Seller's Credit Agreement may only be made (a) in accordance with the
      terms of that agreement and (b) if at the relevant time there is available
      to the Borrower and all the other members of the Group an aggregate amount
      of not less than $25,000,000 (including, without limitation, any amount
      standing to the credit of the Debt Service Reserve Account) in immediately
      freely available and unencumbered bank or cash balances.

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

12    CORPORATE UNDERTAKINGS

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

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

12.3  Negative undertakings. The Borrower will not:

(a)   change the nature of its business; or

(b)   declare or pay any dividend or effect any other form of distribution in
      excess of:

      (i)   in the Financial Year ending 31 December 2006, $18,000,000 in
            aggregate; and

      (ii)  in all subsequent Financial Years, 50 percent of its Net Income
            for the relevant Financial Year;

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

(d)   provide any form of credit or financial assistance to:

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

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

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

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

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

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

12.4  Financial Covenants. The Borrower shall ensure that:

(a)   the Market Adjusted Equity Ratio shall not be less than:

      (i)   in each of the Financial Years ending respectively 31 December 2006
            and 31 December 2007, 0.2:1;

      (ii)  in the Financial Year ending 31 December 2008, 0.25: 1; and

      (iii) in each subsequent Financial Year, 0.3:1;

(b)   the Interest Coverage Ratio shall not be less than 3:1;

(c)   the Market Value Adjusted Net Worth of the Group shall not be less than:

      (i)   in each of the Financial Years ending respectively 31 December 2006
            and 31 December 2007, $125,000,000;

      (ii)  in the Financial Year ending 31 December 2008, $180,000,000; and

      (iii) in each subsequent Financial Year, $225,000,000; and

(d)   at all times there is available to the Borrower and all the other members
      of the Group an aggregate amount of not less than $20,000,000 (including,
      without limitation, any amount standing to the credit of the Debt Service
      Reserve Account) in immediately freely available and unencumbered bank or
      cash balances, of which amount not less than $15,000,000 in aggregate
      shall be held in the Earnings Accounts and the Wealth Account.

12.5  Compliance Check. Compliance with the undertakings contained in Clause
      12.4 shall be determined in each Financial Year:

(a)   at the time the Agent receives the audited consolidated accounts of the
      Group and the unaudited consolidated accounts of the Group for the second
      financial quarter of the Group in each Financial Year (pursuant to Clauses
      11.6(a) and 11.6(b) respectively), by reference to the unaudited
      consolidated accounts in the case of the first 6-month period in each
      Financial Year of the Borrower and the audited consolidated accounts in
      the case of the second 6-month period in each Financial Year of the
      Borrower;

(b)   at any other time as the Agent may reasonably request by reference to such
      evidence as the Lenders may require to determine and calculate the
      financial covenants referred to in Clause 12.3.

      At the same time as it delivers the consolidated accounts referred to in
      this Clause 12.5, the Borrower shall deliver to the Agent a certificate in
      the form set out in Schedule 8 demonstrating its compliance (or not, as
      the case may be) with the provisions of Clause 12.4 signed by the chief
      financial officer of the Borrower.

      The Agent (acting with the authorisation of the Majority Lenders) reserves
      the right, when determining the compliance of the Borrower with the
      undertakings contained in Clause 12.4 on the basis of the annual
      consolidated accounts of the Group for each Financial Year, not to rely on
      the valuations of the Fleet Vessels submitted by the Borrower together
      with the unaudited consolidated accounts of the Group for the fourth
      financial quarter of the relevant Financial Year in accordance with Clause
      11.6(c) and instead to obtain (at the cost of the Borrower) two further
      valuations of each Fleet Vessel, each prepared by an Approved Broker in
      accordance with Clause 15.4.

12.6  Change in accounting expressions and policies. If, by reason of change in
      format or GAAP or other relevant accounting policies, the expressions
      appearing in any accounts and financial statements referred to in Clause
      11.6 alter from those in the accounts and financial statements for the
      Borrower for the year ended 31 December 2005, the relevant definitions
      contained in Clause 1.1 and the provisions of Clause 12.4 shall be deemed
      modified in such manner as the Agent, acting with the authorisation of the
      Majority Lenders, shall require to take account of such different
      expressions but otherwise to maintain in all respects the substance of
      those provisions.

12.7  Subordination of rights of Borrower. All rights which the Borrower at any
      time has (whether in respect of the Loan or any other transaction) against
      any Owner or its assets shall be fully subordinated to the rights of the
      Creditor Parties under the Finance Documents; and in particular, the
      Borrower shall not during the Security Period:

(a)   claim, or in a bankruptcy of any Owner or prove for any amount payable to
      the Borrower by an Owner, whether in respect of the Loan or any other
      transaction;

(b)   take or enforce any Security Interest for any such amount; or

(c)   claim to set-off any such amount against any amount payable by the
      Borrower to any Owner.

12.8  Free Syndication market. The Borrower (in order to ensure an orderly and
      effective syndication of the Loan) shall not, and shall ensure that no
      Owner, no member of the Group and no affiliate of the Borrower or any
      other member of the Group shall, until the finalisation of the syndication
      of the Loan (as determined by the Joint Underwriters):

(a)   syndicate or issue or attempt to syndicate or issue; or

(b)   announce or authorise the announcement of the syndication or issuance of;
      or

(c)   engage in discussions concerning the syndication or issuance of,

      any Financial Indebtedness with any banks or financial institutions in the
      commercial banking market Provided that this shall not restrict the
      Borrower from issuing commercial instruments or making any further equity
      offerings.

13    INSURANCE

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

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

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

(b)   war risks (including protection and indemnity war risks);

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

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

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

(a)   in Dollars;

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

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

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

(e)   on approved terms; and

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(a)   the approved brokers; and

(b)   the approved protection and indemnity and/or war risks associations; and

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

14    SHIP COVENANTS

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

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

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

(a)   consistent with first-class ship ownership and management practice;

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

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

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

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

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

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

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

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

(d)   following receipt of a written request from the Security Trustee:

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

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

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

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

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

14.8  Inspection. The Borrower shall procure that each Owner shall permit the
      Security Trustee (by surveyors or other persons appointed by it for that
      purpose) to board the Ship owned by it at all reasonable times to inspect
      her condition or to satisfy themselves about proposed or executed repairs
      and shall afford all proper facilities for such inspections Provided that
      so long as no Event of Default has occurred and is continuing at the
      relevant time and a Ship is found to be in a satisfactory condition (in
      the opinion of the Security Trustee) the Borrower shall be obliged to pay
      the fees and expenses of one inspection of that Ship in any calendar year.

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

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

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

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

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

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

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

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

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

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

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

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

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

(d)   any towages and salvages;

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

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

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

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

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

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

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

(e)   any intended dry docking of the Ship;

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

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

(h)   any other matter, event or incident, actual or threatened, the effect of
      which will or could lead to the ISM Code or the ISPS Code not being
      complied with

      and the Borrower shall keep the Security Trustee advised in writing on a
      regular basis and in such detail as the Security Trustee shall require of
      the Owner's, the Approved Manager's or any other person's response to any
      of those events or matters.

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

(a)   (other than pursuant to the Hille Oldendorff Charterparty in the case of
      the Identified Ship), let the Ship owned by it on demise charter for any
      period;

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

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

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

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

(f)   appoint a manager of the Ship other than the Approved Manager or agree to
      any alteration to the terms of the Approved Manager's appointment;

(g)   de-activate or lay up the Ship; or

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

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

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

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

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

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

14.16 Time Charter Assignment. If any Owner enters into any charter in respect
      of its Ship which is of 11 months or more in duration, or is capable of
      exceeding 11 months in duration that Owner shall, at the request of the
      Agent, execute, or, as the case may be, procure the execution in favour of
      the Security Trustee a Charterparty Assignment in respect of that charter,
      and shall deliver to the Agent such other documents equivalent to those
      referred to at paragraphs 3,4 and 5 of Schedule 5, Part A as the Agent may
      require.

15    SECURITY COVER

15.1  Provision of additional security cover; prepayment of Loan. The Borrower
      undertakes with each Creditor Party that if the Agent notifies the
      Borrower that:

(a)   the aggregate Market Values of the Ships; plus

(b)   the net realisable value of any additional security previously provided
      under this Clause 15;

      is below 133 percent of the Loan or 120 percent of the aggregate of
      the Loan and the Junior Loan, the Borrower will, within 14 days after the
      date on which the Agent's notice is served, either:

      (i)   provide, or ensure that a third party provides, additional security
            which, in the opinion of the Majority Lenders, has a net realisable
            value at least equal to the shortfall and which, if it consists of
            or includes a Security Interest, covers such asset or assets and is
            documented in such terms as the Agent may, with authorisation from
            the Majority Lenders, approve or require; or

      (ii)  prepay in accordance with Clause 8 such part (at least) of the Loan
            as will eliminate the shortfall.

15.2  Meaning of additional security. In Clause 15.1 "security" means a Security
      Interest over an asset or assets (including, without limitation a vessel
      (other than a Ship)) (whether securing the Borrower's liabilities under
      the Finance Documents or a guarantee in respect of those liabilities), or
      a guarantee, letter of credit, cash deposit or other security in respect
      of the Borrower's liabilities under the Finance Documents.

15.3  Requirement for additional documents. The Borrower shall not be deemed to
      have complied with Clause 15.1 (i) above until the Agent has received in
      connection with the additional security certified copies of documents of
      the kinds referred to in paragraphs 3, 4 and 5 of Schedule 5, Part A and
      such legal opinions in terms acceptable to the Majority Lenders from such
      lawyers as they may select.

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

(a)   as at a date not more than 15 days previously;

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

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

(d)   on the basis of a sale for prompt delivery for cash on normal arm's length
      commercial terms as between a willing seller and a willing buyer, free of
      any existing charter or other contract of employment; and

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

      Provided that if such two valuations differ by more than 15 percent then
      the Agent will obtain a third valuation from an Approved Broker to be
      prepared in accordance with paragraphs (a) to (e) of this Clause 15.4 and
      the Market Value of a Ship will be the arithmetic mean of such 3
      valuations.

15.5  Value of additional security. The net realisable value of any additional
      security which is provided under Clause 15.1 and which consists of a
      Security Interest over a vessel shall be that shown by a valuation
      complying with the requirements of Clause 15.4.

15.6  Valuations binding. Any valuation under Clause 15.1(i), 15.4 or 15.5 shall
      be binding and conclusive as regards the Borrower, as shall be any
      valuation which the Majority Lenders make of a security which does not
      consist of or include a Security Interest.

15.7  Provision of information. The Borrower shall promptly provide the Agent
      and any Approved Broker or expert acting under Clause 15.4 or 15.5 with
      any information which the Agent or the Approved Broker or expert may
      request for the purposes of the valuation; and, if the Borrower fails to
      provide the information by the date specified in the request, the
      valuation may be made on any basis and assumptions which the Approved
      Broker or the Majority Lenders (or the expert appointed by them) consider
      prudent.

15.8  Payment of valuation expenses. Without prejudice to the generality of the
      Borrower's obligations under Clauses 20.2, 20.3 and 21.3, the Borrower
      shall, on demand, pay the Agent the amount of the fees and expenses of any
      Approved Broker instructed by the Agent under this Clause Provided that
      until an Event of Default has occurred and is continuing the Borrower
      shall be liable to pay to the Agent the fees and expenses of up to two
      sets of valuations of each Ship on up to two (or, if the Agent exercises
      the right referred to in the final paragraph of Clause 12.5, three)
      occasions in any calendar year.

16    PAYMENTS AND CALCULATIONS

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

(a)   by the Lenders to the Agent; or

(a)   by the Borrower to the Agent, the Security Trustee or any Lender

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

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

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

      (iii) to the account of the Agent at JPMorgan Chase Bank, New York
            (Account No 001-1-331808 SWIFT Code: CHASUS 33 under reference
            "Dryships Inc. - US$628.75m facility"), or to such other account
            with such other bank as the Agent may from time to time notify to
            the Borrower and the other Creditor Parties; and

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

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

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

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

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

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

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

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

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

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

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

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

(a)   refund the sum in full to the Agent; and

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

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

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

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

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

17    APPLICATION OF RECEIPTS

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

(a)   FIRST: in or towards satisfaction of any amounts then due and payable
      under the Finance Documents and each Master Agreement in the following
      order and proportions:

      (i)   first, in or towards satisfaction pro rata of all amounts then due
            and payable to the Creditor Parties under the Finance Documents
            other than those amounts referred to at paragraphs (ii) and (iii)
            (including, but without limitation, all amounts payable by the
            Borrower under Clauses 20, 21 and 22 of this Agreement or by the
            Borrower or any Security Party under any corresponding or similar
            provision in any other Finance Document or in either Master
            Agreement);

      (ii)  secondly, in or towards satisfaction pro rata of any and all amounts
            of interest or default interest payable to the Creditor Parties
            under the Finance Documents and the Master Agreements (and, for this
            purpose, the expression "interest" shall include any net amount
            which the Borrower shall have become liable to pay or deliver under
            section 2(e) (Obligations) of either Master Agreement but shall have
            failed to pay or deliver to the relevant Swap Bank at the time of
            application or distribution under this Clause 17); and

      (iii) thirdly, in or towards satisfaction pro rata of the Loan and the
            Swap Exposure of each Swap Bank (in the case of the latter,
            calculated as at the actual Early Termination Date applying to each
            particular Designated Transaction, or if no such Early Termination
            Date shall have occurred, calculated as if an Early Termination Date
            occurred on the date of application or distribution hereunder);

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

(c)   THIRDLY: any surplus shall be paid to the Agent for application in
      accordance with Clause 17.1 of the Junior Loan Agreement or, if all sums
      due thereunder have been paid, to the Borrower or to any other person
      appearing to be entitled to it.

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

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

17.4  Appropriation rights overriden. This Clause 17 and any notice which the
      Agent gives under Clause 17.3 shall override any right of appropriation
      possessed, and any appropriation made, by the Borrower or any Security
      Party.

18    APPLICATION OF EARNINGS

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

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

(b)   all payments by a Swap Bank to a Borrower under a Designated Transaction
      are paid to the Retention Account.

18.2  Monthly retentions. The Borrower undertakes with each Creditor Party to
      ensure that, in each calendar month of the Security Period commencing on
      the date falling 1 month after the first Drawdown Date and on the same day
      in each subsequent month, there is transferred to the Retention Account
      out of the aggregate Earnings received in the Earnings Accounts during the
      preceding calendar month:

(a)   one-third (or, in the case of the period between the first Drawdown Date
      and the first Repayment Date, one-fifth) of the amount of the Repayment
      Instalment falling due under Clause 8 on the next Repayment Date; and

(b)   the relevant fraction of the aggregate amount of interest on (i) the Term
      Loan and (ii) the Credit Facility which is payable on the next due date
      for payment of interest for each of the Term Loan and the Credit Facility
      under this Agreement.

      The "relevant fraction", in respect of each Advance, is a fraction of
      which the numerator is 1 and the denominator the number of months
      comprised in the then current Interest Period applicable to such Advance
      (or, if the current Interest Period ends after the next date for payment
      of interest under this Agreement, the number of months from the later of
      the commencement of the current Interest Period or the last due date for
      payment of interest to the next date for payment of interest under this
      Agreement).

18.3  Shortfall in Earnings. If the aggregate Earnings received are insufficient
      in any month for the required amount to be transferred to the Retention
      Account under Clause 18.2, the Borrower shall make up the amount of the
      insufficiency on demand from the Agent; but, without thereby prejudicing
      the Agent's right to make such demand at any time, the Agent may, if so
      authorised by the Majority Lenders, permit the Borrower to make up all or
      part of the insufficiency by increasing the amount of any transfer under
      Clause 18.2 from the Earnings received in the next or subsequent months.

18.4  Application of retentions. Until an Event of Default occurs, the Agent
      shall on each Repayment Date and on each due date for the payment of
      interest under this Agreement distribute to the Lenders in accordance with
      Clause 16.4 so much of the then balance on the Retention Account as
      equals:

(a)   the Repayment Instalment due on that Repayment Date; and

(b)   the amount of interest payable on that interest payment date

      in discharge of the Borrower's liability for that Repayment Instalment or
      that interest.

18.5  Interest accrued on Retention Account. Any credit balance on the Retention
      Account shall bear interest at the rate from time to time offered by the
      Agent to its customers for Dollar deposits of similar amounts and for
      periods similar to those for which such balances appear to the Agent
      likely to remain on the Retention Account.

18.6  Release of accrued interest. Interest accruing under Clause 18.5 shall be
      released to the Borrower on each Repayment Date unless an Event of Default
      or a Potential Event of Default has occurred or the then credit balance on
      the Retention Account is less than what would have been the balance had
      the full amount required by Clause 18.2 (and Clause 18.3, if applicable)
      been transferred in that and each previous month.

18.7  Location of accounts. The Borrower shall promptly:

(a)   comply, and ensure that the Owners and Wealth comply, with any requirement
      of the Agent as to the location or re-location of any Earnings Account,
      the Debt Service Reserve Account, the Retention Account or the Wealth
      Account;

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

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

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

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

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

18.10 Wealth Account. The Owners may from time to time transfer credit balances
      on the Earnings Accounts to the Wealth Account subject to the Borrower
      being in compliance with its obligations under this Agreement (including,
      without limitation, Clause 18.2).

19    EVENTS OF DEFAULT

19.1  Events of Default. An Event of Default occurs if:

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

(b)   any breach occurs of Clause 9.2, 11.2, 11.3, 11.19, 11.20, 12.2, 12.3,
      12.4, 13.2, 15.1 or 18.1; or

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

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

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

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

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

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

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

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

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

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

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

      (ii)  any assets of a Relevant Person are subject to any form of
            execution, attachment, arrest, sequestration or distress in respect
            of a sum of, or sums aggregating, $100,000 or more or the equivalent
            in another currency; or

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

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

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

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

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

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

(h)   the Borrower or any Security Party ceases or suspends carrying on or
      changes the nature of its business or a part of its business which, in the
      opinion of the Majority Lenders, is material in the context of this
      Agreement; or

(i)   it becomes unlawful in any Pertinent Jurisdiction or impossible:

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

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

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

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

(l)   George Economou ceases to be the Chief Executive Officer of the Borrower
      or George Economou or members of his immediate family (either directly
      and/or through companies beneficially owned by the George Economou or
      members of his immediate family and/or trusts or foundations of which
      George Economou or members of his immediate family are beneficiaries) own
      and control less than 33.33 percent of the issued share capital of the
      Borrower;

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

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

(o)   a Master Agreement is terminated, cancelled, suspended, rescinded or
      revoked or otherwise ceases to remain in full force and effect for any
      reason except with the consent of the Agent, acting with the authorisation
      of the Majority Lenders; or

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

      (i)   a change in the financial position, state of affairs or prospects of
            any Security Party; or

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

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

(q)   there shall occur an Event of Default (howsoever therein described) under
      the Junior Loan Agreement.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

19.10 Position of Swap Banks. Neither the Agent nor the Security Trustee shall
      be obliged, in connection with any action taken or proposed to be taken
      under or pursuant to the foregoing provisions of this Clause 19, to have
      any regard to the requirements of the Swap Banks except to the extent that
      the Swap Banks are also Lenders.

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

20    FEES AND EXPENSES

20.1  Facility, drawdown and commitment fees. The Borrower shall pay to the
      Agent:

(a)   certain facility fees set out in the letter addressed by the Agent to the
      Borrower and dated the same date as this Agreement;

(b)   in relation to each Additional Advance, a drawdown fee of 0.075 percent
      of that Additional Advance, such fee to be payable on the Drawdown Date of
      the Additional Advance and to be distributed among the Lenders pro rata to
      their Credit Facility Commitments;

(c)   a commitment fee:

      (i)   in the case of the Term Loan, at the rate of 0.40 percent per
            annum on the undrawn amount of the Term Loan Commitments from (and
            including) 21 February 2006 up to and including the earlier of (A)
            the Drawdown Date in respect of the Identified Ship Advance and (B)
            the last day of the Availability Period for the Identified Ship
            Advance; and

      (ii)  in the case of the Credit Facility, at the rate of 0.25 percent
            per annum on the undrawn amount of the Credit Facility Commitments
            from (and including) 21 February 2006 up to and including the
            earlier of (A) the Drawdown Date on which the Credit Facility
            Commitments are fully drawn and (B) the last day of the Availability
            Period for the Additional Advances,

      such fee to be paid quarterly in arrears and on the last day of each such
      period referred to in sub-paragraphs (i) and (ii) above and, in the case
      of sub-paragraph (i) above, to be distributed among the Lenders pro rata
      to their Term Loan Commitments and, in the case of sub-paragraph (ii)
      above, to be distributed among the Lenders pro rata to their Credit
      Facility Commitments.

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

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

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

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

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

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

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

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

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

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

21    INDEMNITIES

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(b)   obtaining an order or judgment from any court or other tribunal; or

(c)   enforcing any such order or judgment;

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

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

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

21.6  Application to Master Agreements. For the avoidance of doubt, Clause 21.5
      does not apply in respect of sums due from the Borrower to a Swap Bank
      under or in connection with the Master Agreement to which that Swap Bank
      is a party as to which sums the provisions of section 8 (Contractual
      Currency) of that Master Agreement shall apply.

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

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

22    NO SET-OFF OR TAX DEDUCTION

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

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

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

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

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

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

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

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

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

22.5  Application to the Master Agreements. For the avoidance of doubt, Clause
      22 does not apply in respect of sums due from the Borrower to a Swap Bank
      under or in connection with the Master Agreement to which that Swap Bank
      is a party as to which sums the provisions of section 2(d) (Deduction or
      Withholding for Tax) of that Master Agreement shall apply.

23    ILLEGALITY, ETC

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

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

(b)   contrary to, or inconsistent with, any regulation,

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

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

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

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

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

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

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

24    INCREASED COSTS

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

25    SET-OFF

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

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

(b)   for that purpose:

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

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

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

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

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

26    TRANSFERS AND CHANGES IN LENDING OFFICES

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

(a)   transfer any of its rights or obligations under any Finance Document; or

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

26.2  Transfer by a Lender. Subject to Clause 26.5, a Lender (the "Transferor
      Lender") may at any time, after consultation with the Borrower, the Lead
      Bookrunner and the Joint Bookrunner, cause:

(a)   its rights in respect of all or part of its Contribution; or

(b)   its obligations in respect of all or part of its Commitment; or

(c)   a combination of (a) and (b)

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(a)   the date on which the Agent receives the notice; and

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

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

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

27    VARIATIONS AND WAIVERS

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

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

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

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

(c)   a change to any Lender's Commitment;

(d)   an extension of the Availability Period;

(e)   a change to the definition of "Majority Lenders" or "Finance Documents";

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

(g)   a change to this Clause 27;

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

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

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

(a)   a provision of this Agreement or another Finance Document; or

(b)   an Event of Default; or

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

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

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

28    NOTICES

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

28.2  Addresses for communications. A notice shall be sent:

(a)   to the Borrower:              Omega Building
                                    80 Kifissias Avenue
                                    151 25 Maroussi
                                    Athens
                                    Greece
                                    Fax No: +(30) 210 809 0575
                                    Attn: the Chief Financial Officer

(b)   to a Lender:                  At the address opposite its
                                    name in Part A of Schedule 1
                                    or (as the case may require)
                                    in the relevant Transfer
                                    Certificate,

(c)   to a Swap Bank:               At the address opposite its name
                                    in Part B of Schedule 1

(d)   to the Agent and the          HSH Nordbank
      AG Security Trustee:          Gerhart-Hauptmann-Platt 50
                                    D-20095 Hamburg
                                    Germany
                                    Fax No: +(49) 40 33 33 34 118
                                    Attn: Shipping, Greek Clients

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

28.9  Electronic communication

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

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

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

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

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

29    SUPPLEMENTAL

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

(a)   cumulative;

(b)   may be exercised as often as appears expedient; and

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

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

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

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

30    LAW AND JURISDICTION

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

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

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

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

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

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

30.4  Process agent. The Borrower irrevocably appoints Ince & Co. at their
      office for the time being, presently at International House, 1 St.
      Katharine's Way, London E1 W IUN, England, to act as its agent to receive
      and accept on its behalf any process or other document relating to any
      proceedings in the English courts which are connected with this Agreement.

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

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

AS WITNESS the hands of the duly authorised officers or attorneys of the parties
the day and year first before written.
<PAGE>

                                   SCHEDULE 1

                                     PART A

                             LENDERS AND COMMITMENTS

Lender                    Lending Office             Term Loan     Credit
                                                     Commitment    Facility
                                                     (US Dollars)  Commitment
                                                                   (US Dollars)

HSH Nordbank AG           Gerhart-Hauptmann-Platz    [   ]         [   ]
                          50 D-20095 Hamburg
                          Germany

The Governor and Company  11 Earl Grey Street        [   ]         [   ]
of the Bank of Scotland   Edinburgh EH3 9BN
                          Scotland

Alliance & Leicester      Carlton Park               [   ]         [   ]
Commercial Finance plc    Narborough
                          Leicester LE19 0AL
                          England

Bayerische Hypo-und       Alter Wall 22              [   ]         [   ]
Vereinsbank AG            20457 Hamburg
                          Germany

Commerzbank               Ness 7-9                   [   ]         [   ]
Aktiengesellschaft        D-20457 Hamburg
                          Germany

Natexis Banques           45 rue Saint Dominique     [   ]         [   ]
Populaires                75007 Paris
                          France

Sumitomo Mitsui Banking   Avenue des Arts 58         [   ]         [   ]
Corporation, Brussels     Box 18
Branch                    1000 Brussels
                          Belgium

                                     PART B

                                   SWAP BANKS

HSH Nordbank AG           Martensdarmm 6
                          D-24103 Kiel
                          Germany

HBOS Treasury             33 Old Broad Street
Services Plc              London EC2N 1 HZ
                          England

Commerzbank               Ness 7-9
Aktiengesellschaft        D-20457 Hamburg
                          Germany
<PAGE>

                                   SCHEDULE 2

                           DETAILS OF SHIPS AND OWNERS

                                     PART A

                      DETAILS OF EXISTING SHIPS AND OWNERS

1.    Name of Ship:                           "STRIGGLA"

      Flag:                                   Malta

      Official Number:                        5809

      Class Society and notation:             Nippon Kaiji Kyokai: NS* (Bulk
                                              Carrier, Strengthened for Heavy
                                              Cargoes, Nos. 2, 4 & 6 Holds may
                                              be empty) (ESP) MNS*

      Owner:                                  Helium Shipping Company Limited

2.    Name of Ship:                           "MOSTOLES"

      Flag:                                   Malta

      Official Number:                        5886

      Class Society and notation:             Det Norske Veritas: +1A1, Bulk
                                              Carrier, ESP, HC-E EO

      Owner:                                  Hydrogen Shipping Company Limited

3.    Name of Ship:                           "FLECHA"

      Flag:                                   Malta

      Official Number:                        6835

      Class Society and notation:             Bureau Veritas: I + HULL + MACH,
                                              Bulk Carrier ESP, Ore Carrier ESP,
                                              Unrestricted Navigation

      Owner:                                  Silicon Shipping Company Limited

4.    Name of Ship:                           "SHIBUMI"

      Flag:                                   Malta

      Official Number:                        7028

      Class Society and notation:             Bureau Veritas: I + HULL + MACH,
                                              Bulk Carrier ESP, Unrestricted
                                              Navigation, + AUT-UMS

      Owner:                                  Oxygen Shipping Company Limited

5.    Name of Ship:                           "LACERTA"

      Flag:                                   Malta

      Official Number:                        7121

      Class Society and notation:             Bureau Veritas: I + HULL + MACH,
                                              Bulk Carrier ESP Heavy Cargo,
                                              Nonhomload (Holds 2, 4, 6 may be
                                              empty), Unrestricted Navigation

      Owner:                                  Annapolis Shipping Company Limited

6.    Name of Ship:                           "PANORMOS"

      Flag:                                   Malta

      Official Number:                        8491

      Class Society and notation:             Nippon Kaiji Kyokai: NS* (Bulk
                                              Carrier, Strengthened for Heavy
                                              Cargoes, Nos. 2, 4 & 6 Holds may
                                              be empty) (ESP) MNS*

      Owner:                                  Blueberry Shipping Company Limited

7.    Name of Ship:                           "MATIRA"

      Flag:                                   Malta

      Official Number:                        8966

      Class Society and notation:             Nippon Kaiji Kyokai: NS* (Bulk
                                              Carrier, Strengthened for Heavy
                                              Cargoes, Nos. 2 & 4 Holds may be
                                              empty) (ESP) MNS*

      Owner:                                  Lancat Shipping Company Limited

8.    Name of Ship:                           "TONGA"

      Flag:                                   Malta

      Official Number:                        8251

      Class Society and notation:             ABS: +Al, Bulk Carrier, E, +AMS

      Owner:                                  Tolan Shipping Company Limited

9.    Name of Ship:                           "CORONADO"

      Flag:                                   Malta

      Official Number:                        8703

      Class Society and notation:             Bureau Veritas: I + HULL + MACH,
                                              Bulk Carrier ESP, Nonhomload
                                              (Holds 2-4-6 may be empty),
                                              Unrestricted Navigation,
                                              MON-SHAFT, + AUT UMS

      Owner:                                  Malvina Shipping Company Limited

10.   Name of Ship:                           "XANADU"

      Flag:                                   Malta

      Official Number:                        9479

      Class Society and notation:             Nippon Kaiji Kyokai: NS* (Bulk
                                              Carrier, Strengthened for Heavy
                                              Cargoes, Nos. 2, 4 & 6 Holds may
                                              be empty) (ESP) MNS*

      Owner:                                  Arleta Navigation Company Limited

11.   Name of Ship:                           "LA JOLLA"

      Flag:                                   Malta

      Official Number:                        9503

      Class Society and notation:             Nippon Kaiji Kyokai: NS* (Bulk
                                              Carrier, Strengthened for Heavy
                                              Cargoes, Nos. 2, 4 & 6 Holds may
                                              be empty) (ESP) MNS*

      Owner:                                  Selma Shipping Company Limited

12.   Name of Ship:                           "NETADOLA"

      Flag:                                   Malta

      Official Number:                        9537

      Class Society and notation:             Nippon Kaiji Kyokai: NS* (Bulk
                                              Carrier, Strengthened for Heavy
                                              Cargoes, Nos. 2, 4, 6 & 8 Holds
                                              may be empty) (ESP) MNS*

      Owner:                                  Royerton Shipping Company Limited

13.   Name of Ship:                           "OCEAN CRYSTAL"

      Flag:                                   Malta

      Official Number:                        9092

      Class Society and notation:             Nippon Kaiji Kyokai: NS* (Bulk
                                              Carrier, Strengthened for Heavy
                                              Cargoes, Nos. 2, 4 & 6 Holds may
                                              be empty) (ESP) MNS*

      Owner:                                  Samsara Shipping Company Limited

14.   Name of Ship:                           "PARAGON"

      Flag:                                   Malta

      Official Number:                        9093

      Class Society and notation:             Nippon Kaiji Kyokai: NS* (Bulk
                                              Carrier, Strengthened for Heavy
                                              Cargoes, Nos. 2, 4 & 6 Holds may
                                              be empty) (ESP) MNS*

      Owner:                                  Lansat Shipping Company Limited

15.   Name of Ship:                           "TORO"

      Flag:                                   Malta

      Official Number:                        9131

      Class Society and notation:             Lloyd's Register: +100A1, Bulk
                                              Carrier, Strengthened for heavy
                                              cargoes, Nos. 2, 4 & 6 holds may
                                              be empty, ESP, *IWS, ESN-Hold 1,
                                              +LMC, UMS

      Owner:                                  Farat Shipping Company Limited

16.   Name of Ship:                           "ALONA"

      Flag:                                   Malta

      Official Number:                        7706

      Class Society and notation:             Det Norske Veritas: +1A1, Bulk
                                              Carrier, ESP, HC-E EO DK(+) HA(+)
                                              IB(+), Holds (2, 4 or 3) may be
                                              empty

      Owner:                                  Madras Shipping Company Limited

17.   Name of Ship:                           "IGUANA"

      Flag:                                   Malta

      Official Number:                        9062

      Class Society and notation:             Nippon Kaiji Kyokai: NS* (Bulk
                                              Carrier, Strengthened for Heavy
                                              Cargoes, Nos. 2, 4 & 6 Holds may
                                              be empty) (ESP) MNS*

      Owner:                                  Iguana Shipping Company Limited

18.   Name of Ship:                           "CATALINA"

      Flag:                                   Malta

      Official Number:                        9544

      Class Society and notation:             ABS: +A1, Bulk Carrier, E, +AMS,
                                              +ACCU, SH, HCS, SHCM

      Owner:                                  Borsari Shipping Company Limited

19.   Name of Ship:                           "BELMONTE"

      Flag:                                   Malta

      Official Number:                        9560

      Class Society and notation:             Germanischer Lloyd: Hull: +100A5,
                                              ESP IW C 1 D 11, Bulk Carrier -
                                              Machinery: +MC AUT

      Owner:                                  Onil Shipping Company Limited

20.   Name of Ship:                           "WAIKIKI"

      Flag:                                   Malta

      Official Number:                        4936

      Class Society and notation:             Bureau Veritas: I + HULL + MACH,
                                              Bulk Carrier ESP, Nonhomload
                                              (Holds 2-4-6 may be empty)
                                              Heavycargo, Unrestricted
                                              Navigation, + AUTUMS; MON-SHAFT;
                                              INWATERSURVEY; GRABLOADING

      Owner:                                  Zatac Shipping Company Limited

21.   Name of Ship:                           "ALAMEDA"

      Flag:                                   Malta

      Official Number:                        9549

      Class Society and notation:             Lloyd's Register: +100A1, Bulk
                                              Carrier, Strengthened for heavy
                                              cargoes, Nos. 2, 4, 6 & 8 holds
                                              may be empty, ESP, *IWS, LI, ESN,
                                              ShipRight (SDA, FDA, CM), +LMC,
                                              UMS

      Owner:                                  Fabiana Navigation Company Limited

22.   Name of Ship:                           "LANIKAI"

      Flag:                                   Malta

      Official Number:                        9480

      Class Society and notation:             Det Norske Veritas: +1A1, Bulk
                                              Carrier, ESP, HC-E EO

      Owner:                                  Fago Shipping Company Limited

23.   Name of Ship:                           "LINDA OLDENDORFF"

      Flag:                                   Malta

      Official Number:                        9489

      Class Society and notation:             Lloyd's Register: 100A1, Bulk
                                              Carrier, Strengthened for heavy
                                              cargoes, Nos. 2, 4, 6 or No. 4
                                              holds may be empty, ESP, LI,
                                              ESN-Hold 1, LMC, UMS

      Owner:                                  Felicia Navigation Company Limited

24.   Name of Ship:                           "DAYTONA"

      Flag:                                   Malta

      Official Number:                        6534

      Class Society and notation:             Bureau Veritas: I + HULL + MACH,
                                              Bulk Carrier ESP -heavycargo,
                                              -nonhomload, Unrestricted
                                              Navigation, + AUT-UMS

      Owner:                                  Platan Shipping Company Limited

25.   Name of Ship:                           "SONOMA"

      Flag:                                   Malta

      Official Number:                        9576

      Class Society and notation:             China Classification Society: *CSA
                                              Bulk Carrier, CCSS, Strengthened
                                              for Heavy Cargoes Holds, Nos. 2, 4
                                              & 6 may be empty, Hold No.4 may be
                                              Ballast Hold, ESP, Loading
                                              Computer S.I.G - *CSM AUT-O, CMS

      Owner:                                  Karmen Shipping Company Limited

26.   Name of Ship:                           "MANASOTA"

      Flag:                                   Malta

      Official Number:                        9546

      Class Society and notation:             Det Norske Veritas: +1A1, Bulk
                                              Carrier, ESP ES (S) HC-E, Grain-U
                                              EO LCS -SI IB (+), Holds (2, 4, 6,
                                              8) may be empty, Nauticus
                                              (Newbuilding)

      Owner:                                  Thelma Shipping Company Limited

27.   Name of Ship:                           "CONRAD OLDENDORFF"

      Flag:                                   Malta

      Official Number:                        9744

      Class Society and notation:             Nippon Kaiji Kyokai: NS* (Bulk
                                              Carrier, Strengthened for Heavy
                                              Cargoes, Nos. 2, 4 & 6 Holds may
                                              be empty) (ESP) MNS*

      Owner:                                  Celine Shipping Company Limited

<PAGE>

                                     PART B

                      DETAILS OF IDENTIFIED SHIP AND OWNER

28.   Name of Ship:                           "HILLE OLDENDORFF"

      Flag:                                   Malta/Liberian Bareboat Charter
                                              Registry

      Official Number:                        9833 (Malta)

      Class Society and notation:             Nippon Kaiji Kyokai: NS* (Bulk
                                              Carrier, Strengthened for Heavy
                                              Cargoes, Nos. 2 & 4 Holds may be
                                              empty) (ESP) MNS*

      Owner:                                  Seaventure Shipping Limited

      Bareboat Charterer:                     Catania Shipping Inc.

      Charter Date:                           29 August 2005 (as supplemented
                                              and amended)
<PAGE>

                                   SCHEDULE 3

                                 DRAWDOWN NOTICE

To:   HSH Nordbank AG
      Gerhart-Hauptmann-Platz 50
      D-20095 Hamburg
      Germany

Attention: Loans Administration                                  [________] 2006

                                 DRAWDOWN NOTICE

1     We refer to the loan agreement (the "Loan Agreement") dated 31 March 2006
      and made between ourselves as Borrower, the Lenders referred to therein,
      yourselves as Agent and as Security Trustee, yourselves as Lead Arranger
      and Lead Bookrunner, The Governor and Company of the Bank of Scotland as
      Joint Bookrunner, yourselves and The Governor and Company of the Bank of
      Scotland as Joint Underwriters and the Swap Banks referred to therein in
      connection with term loan and credit facilities of up to US$518,750,000 in
      aggregate. Terms defined in the Loan Agreement have their defined meanings
      when used in this Drawdown Notice.

2     We request to borrow an Advance under the [Term Loan] [Credit Facility] as
      follows:

(a)   Amount of [Advance]: $[________];

(b)   Drawdown Date: [________];

(c)   Duration of the first Interest Period shall be [________] months;

(d)   Payment instructions : account of [________________] and numbered
      [________] with [________] of [________].

3     We represent and warrant that:

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

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

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

5     [We authorise you to deduct all accrued commitment fee and the drawdown
      fee applicable to the Advance referred to in Clause 20.1 from the amount
      of the Advance].

                               [Name of Signatory]

                            ________________________
                                Attorney-in-Fact
                              for and on behalf of
                                  DRYSHIPS INC.
<PAGE>

                                   SCHEDULE 4

                             REPAYMENT OF TERM LOAN

--------------------------------------------------------------------------------
                                        Amount of            Maximum Outstanding
                                        Repayment            Amount of Term Loan
                Repayment Date          Instalment ($)       following repayment
--------------------------------------------------------------------------------

1               31 August 2006          14,852,017.94        445,147,982.06
2               30 November 2006        14,852,017.94        430,295,964.13
3               28 February 2007        12,789,237.67        417,506,726.46
4               31 May 2007             12,789,237.67        404,717,488.79
5               31 August 2007          10,107,623.32        394,609,865.47
6               30 November 2007        10,107,623.32        384,502,242.15
7               29 February 2008        10,107,623.32        374,394,618.83
8               31 May 2008             10,107,623.32        364,286,995.52
9               31 August 2008          10,107,623.32        354,179,372.20
10              30 November 2008        10,107,623.32        344,071,748.88
11              28 February 2009        10,107,623.32        333,964,125.56
12              31 May 2009             10,107,623.32        323,856,502.24
13              31 August 2009           8,663,677.13        315,192,825.11
14              30 November 2009         8,663,677.13        306,529,147.98
15              28 February 2010         8,663,677.13        297,865,470.85
16              31 May 2010              8,663,677.13        289,201,793.72
17              31 August 2010           8,663,677.13        280,538,116.59
18              30 November 2010         8,663,677.13        271,874,439.46
19              28 February 2011         8,663,677.13        263,210,762.33
20              31 May 2011              8,663,677.13        254,547,085.20
21              31 August 2011           8,663,677.13        245,883,408.07
22              30 November 2011         8,663,677.13        237,219,730.94
23              29 February 2012         8,663,677.13        228,556,053.81
24              31 May 2012              8,663,677.13        219,892,376.68
25              31 August 2012           8,663,677.13        211,228,699.55
26              30 November 2012         8,663,677.13        202,565,022.42
27              28 February 2013         8,663,677.13        193,901,345.29
28              31 May 2013              8,663,677.13        185,237,668.16
29              31 August 2013           8,663,677.13        176,573,991.03
30              30 November 2013         8,663,677.13        167,910,313.90
31              28 February 2014         8,663,677.I3        159,246,636.77
32              31 May 2014              8,663,677.13        150,582,959.64
33              31 August 2014           8,663,677.13        141,919,282.51
34              30 November 2014         8,663,677.13        133,255,605.38
35              28 February 2015         8,663,677.13        124,591,928.25
36              31 May 2015              8,663,677.13        115,928,251.12
37              31 August 2015           8,663,677.13        107,264,573.99
38              30 November 2015         8,663,677.13         98,600,896.86
39              29 February 2016         8,663,677.13         89,937,219.73
40              31 May 2016              8,663,677.13         81,273,542.60
--------------------------------------------------------------------------------
Balloon
Instalment      31 May 2016             81,273,542.60                0
--------------------------------------------------------------------------------
<PAGE>

                                   SCHEDULE 5

                          CONDITION PRECEDENT DOCUMENTS

                                     PART A

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

1     A duly executed original of each of:

(a)   this Agreement;

(b)   the Agency and Trust Deed;

(c)   the Master Agreements;

(d)   the Master Agreement Assignments;

(e)   the Guarantees;

(f)   the Wealth Guarantee;

(g)   the Mortgages, the Deeds of Covenant and the General Assignments relative
      to the Existing Ships;

(h)   the Borrower's Accounts Pledge;

(i)   the Existing Ships Earnings Account Pledge;

(j)   the Wealth Account Pledge;

(k)   the Junior Loan Agreement; and

(l)   the Management Agreement Assignments relative to the Existing Ships.

2     Copies of the certificate of incorporation and constitutional documents of
      the Borrower and each Owner of an Existing Ship, the Owner of the
      Identified Ship and Wealth.

3     Copies of resolutions of the directors of the Borrower and the directors
      and shareholders of each Owner of an Existing Ship, the Owner of the
      Identified Ship and Wealth authorising the execution of each of the
      Finance Documents to which the Borrower, that Owner or Wealth is a party
      and, in the case of (a) the Borrower, authorising named officers to give
      the Drawdown Notices and other notices under this Agreement and (b)
      Seaventure, ratifying the execution of the Hille Oldendorff Charterparty
      and the Hille Oldendorff MOA.

4     The original of any power of attorney under which any Finance Document is
      executed on behalf of the Borrower, an Owner of an Existing Ship, the
      Owner of the Identified Ship or Wealth.

5     Copies of all consents which the Borrower, any Owner of an Existing Ship,
      the Owner of the Identified Ship or Wealth requires to enter into, or make
      any payment under, any Finance Document.

6     The originals of any mandates or other documents required in connection
      with the opening or operation of the Debt Service Reserve Account, each
      Earnings Account, the Retention Account and the Wealth Account.

7     Evidence that an amount of not less than $5,000,000 is standing to the
      credit of the Debt Service Reserve Account.

8     Evidence satisfactory to the Agent that each Owner of an Existing Ship,
      the Owner of the Identified Ship and Wealth is a direct or indirect
      wholly-owned subsidiary of the Borrower.

9     Documentary evidence that:

(a)   each Existing Ship is definitively and permanently registered in the name
      of its Owner under the Maltese flag;

(b)   each Existing Ship is in the absolute and unencumbered ownership of its
      Owner save as contemplated by the Finance Documents to which that Owner is
      a party;

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

(d)   each Mortgage relative to an Existing Ship has been duly registered
      against that Existing Ship as a valid first priority statutory mortgage in
      accordance with the laws of Malta; and

(e)   each Existing Ship is insured in accordance with the provisions of this
      Agreement and all requirements therein in respect of such insurances have
      been complied with.

10    A copy of the Management Agreement and a duly executed original of the
      Manager's Undertaking in relation to each Existing Ship.

11    Copies of:

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

(b)   the ISPS Code Documentation in respect of each Existing Ship and the Owner
      thereof certified as true and in effect by that Owner.

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

13    All documentation required by each Creditor Party in relation to the
      Borrower and any Security Party pursuant to that Creditor Party's "know
      your customer" requirements.

14    A compliance certificate (in the form set out in Schedule 8) demonstrating
      the compliance by the Borrower (or not, as the case may be) with the
      provisions of Clause 12.4 (such compliance to be determined by reference
      to the audited annual consolidated accounts of the Group for the Financial
      Year ended 31 December 2005) signed by the chief financial officer of the
      Borrower.

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

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

17    A favourable opinion from an independent insurance consultant acceptable
      to the Agent on such matters relating to the insurances of the Existing
      Ships as the Agent may require.

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

                                     PART B

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

1     A copy of (a) the Hille Oldendorff MOA and (b) the Hille Oldendorff
      Seller's Credit Agreement and of all documents signed or issued by the
      parties thereto under or in connection with the Hille Oldendorff MOA and
      the Hille Oldendorff Seller's Credit Agreement.

2     Such documentary evidence as the Lender and its legal advisers may require
      in relation to the due authorisation and execution by Goodwill of the
      Hille Oldendorff MOA and of all documents to be executed by Goodwill under
      the Hille Oldendorff MOA, and by the Hille Oldendorff Charterer of the
      Hille Oldendorff Charterparty and of all documents to be executed by the
      Hille Oldendorff Charterer thereunder.

3     A copy of each of the Hille Oldendorff Charterparty and the Hille
      Oldendorff Charter Guarantee and of all documents signed or issued by
      Seaventure, Goodwill or the Hille Oldendorff Charterer (or any of them)
      under or in connection with the Hille Oldendorff Charterparty and the
      Hille Oldendorff Charter Guarantee.

4     Copies of the constitutional documents of the Hille Oldendorff Charterer,
      together with copies of resolutions of the directors of the Hille
      Oldendorff Charterer authorising the execution of the Hille Oldendorff
      Tripartite Agreement and ratifying its entry into the Hille Oldendorff
      Charterparty.

5     A duly executed original of:

(a)   the Mortgage, the Deed of Covenant and the General Assignment relating to
      the Identified Ship (and of each document to be delivered under each of
      them);

(b)   the Hille Oldendorff Tripartite Agreement (and of each document to be
      delivered under the Tripartite Agreement);

(c)   the Identified Ship Earnings Account Pledge; and

(d)   the Management Agreement Assignment relating to the Identified Ship.

6     Documentary evidence that:

(a)   the Identified Ship has been unconditionally delivered by Goodwill to and
      accepted by, Seaventure under the Hille Oldendorff MOA and the full
      purchase price payable under that MOA (in addition to the part to be
      financed by the Identified Ship Advance) has been duly paid, together with
      a copy of the bill of sale and the other documents delivered by Goodwill
      thereunder;

(b)   the Identified Ship is definitively and permanently registered in the name
      of Seaventure under Maltese flag at the port of Valletta;

(c)   the Ship is in the absolute and unencumbered ownership of Seaventure, save
      as contemplated by the Finance Documents relative to the Identified Ship;

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

(e)   the Mortgage relating to the Identified Ship has been duly registered
      against that Ship as a valid first priority Maltese statutory ship
      mortgage in accordance with the laws of Malta and has been noted on the
      Liberian Bareboat Charter Registry;

(f)   the Identified Ship is insured in accordance with the provisions of this
      Agreement and all requirements therein in respect of insurances have been
      complied with; and

(g)   the Identified Ship has been delivered and accepted by the Hille
      Oldendorff Charterer for service under the Hille Oldendorff Charterparty
      without qualifications and has been registered in the name of the Hille
      Oldendorff Charterer under the Liberian Bareboat Charter Registry.

7     A copy of the Management Agreement and a duly executed original of the
      Manager's Undertaking in relation to the Identified Ship.

8     Copies of:

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

(b)   the ISPS Code Documentation in respect of the Identified Ship and
      Seaventure certified as true and in effect by Seaventure.

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

10    Favourable legal opinions from lawyers appointed by the Agent on such
      matters concerning the laws of Malta, Liberia and such other relevant
      jurisdictions as the Agent may require.

11    A favourable opinion from an independent insurance consultant acceptable
      to the Agent on such matters relating to the insurances of the Identified
      Ships as the Agent may require.
<PAGE>

                                     PART C

The following are the documents referred to in Clause 9.1(c). "Relevant Ship"
means, in relation to an Additional Advance, the Additional Ship which is to be
part-financed by that Advance.

1     Copies of resolutions of the directors of the relevant Additional Ship
      Owner authorising the execution of each of the Finance Documents in
      relation to the Relevant Ship and ratifying the execution of the
      Additional Ship MOA in relation to that Relevant Ship.

2     The original of any power of attorney under which any Finance Document in
      relation to the Relevant Ship is executed on behalf of the relevant
      Additional Ship Owner.

3     The originals of any mandates or other documents required in connection
      with the opening or operation of the Earnings Account for the Relevant
      Ship.

4     A copy of the Additional Ship MOA for the Relevant Ship and all documents
      signed or issued by the parties thereto (or any of them) under or in
      connection with it.

5     Such documentary evidence as the Agent and its legal advisers may require
      in relation to the due authorisation and execution of the Additional Ship
      MOA in relation to the Relevant Ship and all documents to be executed by
      the parties thereto under that Additional Ship MOA.

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

7     Documentary evidence that:

(a)   the Relevant Ship has been unconditionally delivered to, and accepted by,
      the relevant Additional Ship Owner under the relevant Additional Ship MOA
      and the full purchase price payable under that Additional Ship MOA (in
      addition to the part financed by the relevant Advance) has been duly paid;

(b)   the Relevant Ship is definitively and permanently registered in the name
      of the relevant Additional Ship Owner under an Approved Flag;

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

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

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

(f)   the Relevant Ship is insured in accordance with the provisions of this
      Agreement and all requirements therein in respect of insurances have been
      complied with.
<PAGE>

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

9     Copies of:

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

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

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

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

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

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

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

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

                                   SCHEDULE 6

                              TRANSFER CERTIFICATE

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

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

                                                                     [_________]

1     This Certificate relates to a Loan Agreement (the "Loan Agreement") dated
      31 March 2006 and made between (1) Dryships Inc. as borrower (the
      "Borrower"), (2) the banks and financial institutions named therein as
      Lenders, (3) HSH Nordbank AG as Agent and as Security Trustee, (4) HSH
      Nordbank AG as Lead Arranger and Lead Bookrunner, (5) The Governor and
      Company of the Bank of Scotland as Joint Bookrunner, (6) HSH Nordbank AG
      and The Governor and Company of the Bank of Scotland as Joint Underwriters
      and (7) HSH Nordbank AG and HBOS Treasury Services plc as Swap Banks, in
      respect of term loan and short-term credit facilities of up to
      US$518,750,000 in aggregate.

2     In this Certificate:

      "the Relevant Parties" means the Agent, the Borrower, each Security Party,
      the Security Trustee, each Swap Bank and each Lender;

      "the Transferor" means [full name] of [lending office];

      "the Transferee" means [full name] of [lending office].

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

3     The effective date of this Certificate is 2006 Provided that this
      Certificate shall not come into effect unless it is signed by the Agent on
      or before that date.

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

      Contribution                            Amount transferred

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

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

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

8     The Transferor:

(a)   warrants to the Transferee and each Relevant Party:

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

      (ii)  that this Certificate is valid and binding as regards the
            Transferor;

(b)   warrants to the Transferee that the Transferor is absolutely entitled,
      free of encumbrances, to all the rights and interests covered by the
      assignment in paragraph 4 above;

(c)   undertakes with the Transferee that the Transferor will, at its own
      expense, execute any documents which the Transferee reasonably requests
      for perfecting in any relevant jurisdiction the Transferee's title under
      this Certificate or for a similar purpose.

9     The Transferee:

(d)   confirms that it has received a copy of the Loan Agreement and each other
      Finance Document;

(e)   agrees that it will have no rights of recourse on any ground against
      either the Transferor, the Agent, the Security Trustee, any Swap Bank or
      any Lender in the event that:

      (i)   the Finance Documents prove to be invalid or ineffective,

      (ii)  the Borrower or any Security Party fails to observe or perform its
            obligations, or to discharge its liabilities, under the Finance
            Documents;

      (iii) it proves impossible to realise any asset covered by a Security
            Interest created by a Finance Document, or the proceeds of such
            assets are insufficient to discharge the liabilities of the Borrower
            or any Security Party under the Finance Documents;

(f)   agrees that it will have no rights of recourse on any ground against the
      Agent, the Security Trustee, any Swap Bank or any Lender in the event that
      this Certificate proves to be invalid or ineffective;

(g)   warrants to the Transferor and each Relevant Party (i) that it has fu11
      capacity to enter into this transaction and has taken all corporate action
      and obtained all official consents which it needs to take or obtain in
      connection with this transaction; and (ii) that this Certificate is valid
      and binding as regards the Transferee; and

(h)   confirms the accuracy of the administrative details set out below
      regarding the Transferee.

10    The Transferor and the Transferee each undertake with the Agent and the
      Security Trustee severally, on demand, fully to indemnify the Agent and/or
      the Security Trustee in respect of any claim, proceeding, liability or
      expense (including all legal expenses) which they or either of them may
      incur in connection with this Certificate or any matter arising out of it,
      except such as are shown to have been mainly and directly caused by the
      gross and culpable negligence or dishonesty of the Agent's or the Security
      Trustee's own officers or employees.

11    The Transferee shall repay to the Transferor on demand so much of any sum
      paid by the Transferor under paragraph 10 above as exceeds one-half of the
      amount demanded by the Agent or the Security Trustee in respect of a
      claim, proceeding, liability or expense which was not reasonably
      foreseeable at the date of this Certificate; but nothing in this paragraph
      shall affect the liability of each of the Transferor and the Transferee to
      the Agent or the Security Trustee for the full amount demanded by it.

[Name of Transferor]                    [Name of Transferee]

By:                                     By:

Date:                                   Date:

Agent

Signed for itself and for and on
behalf of itself as Agent and for
every other Relevant Party

HSH NORDBANK AG

By:

Date:
<PAGE>

                      Administrative Details of Transferee

Name of Transferee:

Lending Office:

Contact Person
(Loan Administration Department):

Telephone:

Telex:

Fax:

Contact Person
(Credit Administration Department):

Telephone:

Telex:

Fax:

Account for payments:

Note: This Transfer Certificate alone may not be sufficient to transfer a
      proportionate share of the Transferor's interest in the security
      constituted by the Finance Documents in the Transferor's or Transferee's
      jurisdiction. It is the responsibility of each Lender to ascertain whether
      any other documents are required for this purpose.
<PAGE>

                                   SCHEDULE 7

                               DESIGNATION NOTICE

To:   HSH Nordbank AG
      Gerhart-Hauptmann-Platz 50
      D-20095 Hamburg
      Germany

                                                                             [o]

Dear Sirs

Loan Agreement dated 31 March 2006 made between (inter alia) (i) ourselves as
Borrower, (ii) the Lenders, (iii) yourselves as Agent and Security Trustee and
(iv) yourselves and The Governor and Company of the Bank of Scotland as swap
banks in respect of term loan and short-term credit facilities of up to
US$518,750,000 in aggregate (the "Loan Agreement")

We refer to:

1     the Loan Agreement;

2     the Master Agreement dated [o] made between ourselves and [o]; and

3     a Confirmation delivered pursuant to the said Master Agreement dated [o]
      and addressed by [o] to us.

In accordance with the terms of the Loan Agreement, we hereby give you notice of
the said Confirmation and hereby confirm that the Transaction evidenced by it
will be designated as a "Designated Transaction" for the purposes of the Loan
Agreement and the Finance Documents.

Yours faithfully,

_______________________________

for and on behalf of
DRYSHIPS INC.
<PAGE>

                                   SCHEDULE 8

                         FORM OF COMPLIANCE CERTIFICATE

To:   HSH Nordbank AG
      Gerhart-Hauptmann-Platz 50
      D-20095 Hamburg
      Germany

                                                                  [o]200[o]

Dear Sirs,

We refer to a loan agreement dated 31 March 2006 (the "Loan Agreement") made
between (amongst others) yourselves and ourselves in relation to term loan and
short-term credit facilities of up to $518,750,000 in aggregate.

Words and expressions defined in the Loan Agreement shall have the same meaning
when used in this compliance certificate.

We enclose with this certificate a copy of the [audited]/[unaudited]
consolidated accounts for the Group for the [Financial Year] [3-month period]
ended [o]. The accounts (i) have been prepared in accordance with all applicable
laws and GAAP all consistently applied, (ii) give a true and fair view of the
state of affairs of the Group at the date of the accounts and of its profit for
the period to which the accounts relate and (iii) fully disclose or provide for
all significant liabilities of the Group.

We also enclose copies of the valuations of all the Fleet Vessels which were
used in calculating the Market Value Adjusted Total Assets of the Group as at
[o].

The Borrower represents that no Event of Default or Potential Event of Default
has occurred as at the date of this certificate [except for the following matter
or event [set out all material details of matter or event]]. In addition as of
[o], the Borrower confirms compliance with the financial covenants set out in
Clause 12.4 of the Loan Agreement for the 6 months ending as of the date to
which the enclosed accounts are prepared.

We now certify that, as at [o]:

(a)   the Market Adjusted Equity Ratio is [o]:[o];

(b)   the Interest Coverage Ratio of the Group is [o]:[o];

(c)   the Market Value Adjusted Net Worth of the Group is $[o]; and

(d)   the aggregate freely available and unencumbered bank or cash balances of
      the Group are $[o] in aggregate of which $[o] in aggregate is standing to
      the credit of the Earnings Accounts and the Wealth Account.

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

___________________________
[o]
Chief Financial Officer of
Dryships Inc.
<PAGE>

                        SCHEDULE 9 MANDATORY COST FORMULA

1     The Mandatory Cost is an addition to the interest rate to compensate
      Lenders for the cost of compliance with (a) the requirements of the
      Financial Services Authority (or any other authority which replaces all or
      any of its functions) or (b) the requirements of the European Central
      Bank.

2     On the first day of each Interest Period (or as soon as possible
      thereafter) the Agent shall calculate, as a percentage rate, a rate (the
      "Additional Cost Rate") for each Lender, in accordance with the paragraphs
      set out below, The Mandatory Cost will be calculated by the Agent as a
      weighted average of the Lenders' Additional Cost Rates (weighted in
      proportion to the percentage participation of each Lender in the Loan) and
      will be expressed as a percentage rate per annum.

3     The Additional Cost Rate for any Lender lending from a lending office in a
      Participating Member State will be the percentage notified by that Lender
      to the Agent. This percentage will be certified by that Lender in its
      notice to the Agent to be its reasonable determination of the cost
      (expressed as a percentage of that Lender's participation in the Loan) of
      complying with the minimum reserve requirements of the European Central
      Bank in respect of loans made from that lending office.

4     The Additional Cost Rate for any Lender lending from a lending office in
      the United Kingdom will be calculated by the Agent as follows:

                    Ex 0.01
                    ------- percent per annum
                      300

      Where:

      E     is designed to compensate Lenders for amounts payable under the Fees
            Rules and is calculated by the Agent as being the average of the
            most recent rates of charge supplied by the Lenders to the Agent
            pursuant to paragraph 6 below and expressed in pounds per
            (pound)1,000,000.

5     For the purposes of this Schedule:

(a)   "Special Deposits" has the meaning given to it from time to time under or
      pursuant to the Bank of England Act 1998 or (as may be appropriate) by the
      Bank of England;

(b)   "Fees Rules" means the rules on periodic fees contained in the FSA
      Supervision Manual or such other law or regulation as may be in force from
      time to time in respect of the payment of fees for the acceptance of
      deposits;

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

(d)   "Participating Member State" means any member state of the European Union
      that adopts or has adopted the euro as its lawful currency in accordance
      with legislation of the European Union relating to European Monetary
      Union; and

(e)   "Tariff Base" has the meaning given to it in, and will be calculated in
      accordance with, the Fees Rules.

6     If requested by the Agent, each Lender lending from a lending office in
      the United Kingdom shall, as soon as practicable after publication by the
      Financial Services Authority, supply to the Agent, the rate of charge
      payable by that Lender to the Financial Services Authority pursuant to the
      Fees Rules in respect of the relevant financial year of the Financial
      Services Authority (calculated for this purpose by that Lender as being
      the average of the Fee Tariffs applicable to that Lender for that
      financial year) and expressed in pounds per (pound) 1,000,000 of the
      Tariff Base of that Lender.

7     Each Lender shall supply any information required by the Agent for the
      purpose of calculating its Additional Cost Rate. In particular, but
      without limitation, each Lender shall supply the following information in
      writing on or prior to the date on which it becomes a Lender:

(a)   the jurisdiction of its lending office; and

(b)   any other information that the Agent may reasonably require for such
      purpose.

      Each Lender shall promptly notify the Agent in writing of any change to
      the information provided by it pursuant to this paragraph.

8     The rates of charge of each Lender lending from a lending office in the
      United Kingdom for the purpose of calculating shall be determined by the
      Agent based upon the information supplied to it pursuant to paragraph 6
      above and on the assumption that, unless a Lender notifies the Agent to
      the contrary, each Lender's obligations in relation to cash ratio deposits
      and Special Deposits are the same as those of a typical bank from its
      jurisdiction of incorporation with a lending office in the same
      jurisdiction as its lending office.

9     The Agent shall have no liability to any person if such determination
      results in an Additional Cost Rate which over or under compensates any
      Lender and shall be entitled to assume that the information provided by
      any Lender pursuant to paragraphs 3, 6 and 7 above is true and correct in
      all respects.

10    The Agent shall distribute the additional amounts received as a result of
      the Mandatory Cost to the Lenders on the basis of the Additional Cost Rate
      for each Lender based on the information provided by each Lender pursuant
      to paragraphs 3, 6 and 7 above.

11    Any determination by the Agent pursuant to this Schedule in relation to a
      formula, the Mandatory Cost, an Additional Cost Rate or any amount payable
      to a Lender shall, in the absence of manifest error, be conclusive and
      binding on all parties.

The Agent may from time to time, after consultation with the Borrower and the
Lenders, determine and notify to all parties any amendments which are required
to be made to this Schedule in order to comply with any change in law,
regulation or any requirements from time to time imposed by the Financial
Services Authority or the European Central Bank (or, in any case, any other
authority which replaces all or any of its functions) and any such determination
shall, in the absence of manifest error, be conclusive and binding on all
parties.
<PAGE>

                                 EXECUTION PAGES

BORROWER

SIGNED by EUGENIA PAPAPONTIROO )        /s/ EUGENIA PAPAPONTIROO
for and on behalf of           )
DRYSHIPS INC.                  )

LENDERS

SIGNED by GEORGE PALEOURASSAS  )        /s/ GEORGE PALEOURASSAS
for and on behalf of           )
HSH NORDBANK AG                )

SIGNED by GEORGE PALEOURASSAS  )        /s/ GEORGE PALEOURASSAS
for and on behalf of           )
THE GOVERNOR AND COMPANY OF    )
THE BANK OF SCOTLAND           )

SIGNED by GEORGE PALEOURASSAS  )        /s/ GEORGE PALEOURASSAS
for and on behalf of           )
ALLIANCE & LEICESTER           )
COMMERCIAL FINANCE PLC         )

SIGNED by GEORGE PALEOURASSAS  )        /s/ GEORGE PALEOURASSAS
for and on behalf of           )
BAYERISCHE HYPO-UND            )
VEREINSBANK AG                 )

SIGNED by GEORGE PALEOURASSAS  )        /s/ GEORGE PALEOURASSAS
for and on behalf of           )
COMMERZBANK                    )
AKTIENGESELLSCHAFT             )

SIGNED by GEORGE PALEOURASSAS  )        /s/ GEORGE PALEOURASSAS
for and on behalf of           )
NAXTEXIS BANQUES POPULAIRES    )

SIGNED by GEORGE PALEOURASSAS  )        /s/ GEORGE PALEOURASSAS
for and on behalf of           )
SUMITOMO MITSUI BANKING        )
CORPORATION                    )

AGENT

SIGNED by GEORGE PALEOURASSAS  )        /s/ GEORGE PALEOURASSAS
for and on behalf of           )
HSH NORDBANK AG                )

SECURITY TRUSTEE

SIGNED by GEORGE PALEOURASSAS  )        /s/ GEORGE PALEOURASSAS
for and on behalf of           )
HSH NORDBANK AG                )

LEAD ARRANGER/LEAD BOOKRUNNER

SIGNED by GEORGE PALEOURASSAS  )        /s/ GEORGE PALEOURASSAS
for and on behalf of           )
HSH NORDBANK AG                )

JOINT BOOKRUNNNER

SIGNED by GEORGE PALEOURASSAS  )        /s/ GEORGE PALEOURASSAS
for and on behalf of           )
THE GOVERNOR AND COMPANY       )
OF THE BANK OF SCOTLAND        )

JOINT UNDERWRITERS

SIGNED by GEORGE PALEOURASSAS  )        /s/ GEORGE PALEOURASSAS
for and on behalf of           )
HSH NORDBANK AG                )

SIGNED by GEORGE PALEOURASSAS  )        /s/ GEORGE PALEOURASSAS
for and on behalf of           )
THE GOVERNOR AND COMPANY OF    )
THE BANK OF SCOTLAND           )

SWAP BANKS

SIGNED by GEORGE PALEOURASSAS  )        /s/ GEORGE PALEOURASSAS
for and on behalf of           )
HSH NORDBANK AG                )

SIGNED by GEORGE PALEOURASSAS  )        /s/ GEORGE PALEOURASSAS
for and on behalf of           )
HBOS TREASURY SERVICES PLC     )

SIGNED by GEORGE PALEOURASSAS  )        /s/ GEORGE PALEOURASSAS
for and on behalf of           )
COMMERZBANK                    )
AKTIENGESELLSCHAFT             )

Witness to all the             )
above signatures               )

Name:     ERICA LACOMBE
Address:  WATSON, FARLEY & WILLIAMS
          2, DEFTERAS MERARCHIAS
          PIRAEUS 185 36 - GREECEExhibit 4.5

                               Date 31 March 2006

                                  DRYSHIPS INC.
                                   as Borrower

                                     - and -

                      THE BANKS AND FINANCIAL INSTITUTIONS
                         listed in Part A of Schedule 1
                                   as Lenders

                                     - and -

                                 HSH NORDBANK AG
                        as Agent and as Security Trustee

                                     - and -

                                 HSH NORDBANK AG
                      as Lead Arranger and Lead Bookrunner

                                     - and -

                            THE GOVERNOR AND COMPANY
                             OF THE BANK OF SCOTLAND
                               as Joint Bookrunner

                                     - and -

                      THE BANKS AND FINANCIAL INSTITUTIONS
                         listed in Part B of Schedule 1
                                  as Swap Banks

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

                                 LOAN AGREEMENT

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

          relating to a term loan and short-term credit facilities of
         up to US$110,000,000 in aggregate to refinance certain existing
         indebtedness, to provide working capital and to finance part of
                the purchase price of certain additional vessels

                            WATSON FARLEY & WILLIAMS
                                     Piraeus

<PAGE>

                                      INDEX

Clause                                                                      Page
1    INTERPRETATION                                                           2
2    FACILITY                                                                25
3    POSITION OF THE LENDERS, THE SWAP BANKS AND THE MAJORITY LENDERS        25
4    DRAWDOWN                                                                26
5    INTEREST                                                                28
6    INTEREST PERIODS                                                        30
7    DEFAULT INTEREST                                                        31
8    REPAYMENT AND PREPAYMENT                                                32
9    CONDITIONS PRECEDENT                                                    35
10   REPRESENTATIONS AND WARRANTIES                                          36
11   GENERAL UNDERTAKINGS                                                    38
12   CORPORATE UNDERTAKINGS                                                  42
13   INSURANCE                                                               44
14   SHIP COVENANTS                                                          50
15   SECURITY COVER                                                          55
16   PAYMENTS AND CALCULATIONS                                               56
17   APPLICATION OF RECEIPTS                                                 58
18   APPLICATION OF EARNINGS                                                 59
19   EVENTS OF DEFAULT                                                       61
20   FEES AND EXPENSES                                                       65
21   INDEMNITIES                                                             67
22   NO SET-OFF OR TAX DEDUCTION                                             69
23   ILLEGALITY, ETC                                                         70
24   INCREASED COSTS                                                         70
25   SET-OFF                                                                 72
26   TRANSFERS AND CHANGES IN LENDING OFFICES                                72
27   VARIATIONS AND WAIVERS                                                  75
28   NOTICES                                                                 76
29   SUPPLEMENTAL                                                            78
30   LAW AND JURISDICTION                                                    79

SCHEDULE 1 PART A                                                            80
LENDERS AND COMMITMENTS                                                      80
PART B                                                                       80
SWAP BANKS                                                                   80
SCHEDULE 2 DETAILS OF SHIPS AND OWNERS                                       81
PART A DETAILS OF EXISTING SHIPS AND OWNERS                                  81
SCHEDULE 3 DRAWDOWN NOTICE                                                   81
SCHEDULE 4 REPAYMENT OF TERM LOAN                                            90
SCHEDULE 5 CONDITION PRECEDENT DOCUMENTS                                     91
SCHEDULE 6 TRANSFER CERTIFICATE                                              97
SCHEDULE 7 DESIGNATION NOTICE                                               101
SCHEDULE 8 FORM OF COMPLIANCE CERTIFICATE                                   102
SCHEDULE 9 MANDATORY COST FORMULA                                           103
EXECUTION PAGES                                                             105

<PAGE>

THIS LOAN AGREEMENT is made on 31 March 2006

BETWEEN:

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

(2)  THE BANKS AND  FINANCIAL  INSTITUTIONS  listed in Part A of  Schedule I, as
     Lenders;

(3)  HSH NORDBANK AG acting  through its office at  Gerhart-Hauptmann-Platt  50,
     D-20095, Hamburg, Germany, as Agent;

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

(5)  HSH NORDBANK AG acting  through its office at  Gerhart-Hauptmann-Platt  50,
     D-20092, Germany, as Lead Arranger and as Lead Bookrunner;

(6)  THE GOVERNOR AND COMPANY OF THE BANK OF SCOTLAND  acting through its office
     at New Uberior House, 11 Earl Grey Street, Edinburgh, EH3 9BN, Scotland, as
     Joint Bookrunner; and

(7)  THE BANKS AND  FINANCIAL  INSTITUTIONS  listed in Part B of  Schedule I, as
     Swap Banks.

WHEREAS

(A)  The Lenders have agreed to make  available  to the  Borrower  term loan and
     short-term  credit  facilities  of up to  US$110,000,000  in  aggregate  as
     follows:

     (i)  as to an amount of up to the  lesser of (a)  US$97,500,000  and (b) 13
          percent of the aggregate Market Values of the Existing Ships and the
          Identified Ship to refinance certain existing  indebtedness secured on
          the  Existing  Ships,  to finance  part of the  purchase  price of the
          Identified  Ship and to provide the Borrower with working  capital for
          its general corporate purposes; and

     (ii) as to an amount of up to the  lesser of (a)  US$12,500,000  and (b) 12
          percent of the aggregate  Market Values of the  Additional  Ships to
          finance part of the purchase price of the Additional Ships.

(B)  The Swap Banks have agreed to enter into  interest  rate swap  transactions
     with the Borrower from time to time to hedge the Borrower's  exposure under
     this Agreement to interest rate fluctuations.

(C)  The  Lenders  and the Swap  Banks  have  agreed to share  pari passu in the
     security to be granted to the Security Trustee pursuant to this Agreement.

(D)  Certain banks and financial  institutions  (including the Lenders) (who are
     hereinafter  defined as the  "Senior  Lenders")  have  entered  into a loan
     agreement with the Borrower having the same date as this Agreement  whereby
     they  have  agreed  to make  available  term  loan  and  short-term  credit
     facilities of up to US$518,750,000 in aggregate as follows:

     (i)  as to an amount of up to the lesser of (a)  US$460,000,000  and (b) 63
          percent of the aggregate Market Values of the Existing Ships and the
          Identified Ship to refinance certain existing  indebtedness secured on
          the  Existing  Ships,  to finance  part of the  purchase  price of the
          Identified  Ship and to provide the Borrower with working  capital for
          its general corporate purposes; and

     (ii) as to an amount of up to the  lesser of (a)  US$58,750,000  and (b) 63
          percent of the aggregate  Market Values of the  Additional  Ships to
          finance part of the purchase price of the Additional Ships.

(E)  The Senior  Lenders and the Lenders have agreed that the Lenders will share
     in the  security  to be granted to the  Security  Trustee  pursuant  to the
     Senior Loan  Agreement  (as  hereinafter  defined) and this  Agreement on a
     subordinated basis.

IT IS AGREED as follows:

1    INTERPRETATION

1.2  Definitions. Subject to Clause 1.5; in this Agreement:

     "Additional Advance" means each Advance which is to be used in financing on
     delivery part of the purchase  price of an Additional  Ship and which is to
     be made  available  in  accordance  with and  pursuant  to Clauses  2.3 and
     4.2(f);

     "Additional  Ship"  means any ship which is, or is to be,  purchased  by an
     Additional  Ship Owner,  each of which (unless all of the Lenders acting in
     their absolute  discretion agree otherwise) must satisfy all the Additional
     Ship Requirements;

     "Additional Ship Requirements"  means, in relation to any ship which is, or
     is to be, purchased by an Additional Ship Owner, a ship which satisfies the
     following requirements:

     (a)  it has been  approved by all of the Lenders  acting in their  absolute
          discretion;

     (b)  it is a Capesize, Panamax or Handymax bulk carrier;

     (c)  it is built in or after 1993;

     (d)  following  its purchase by the  relevant  Additional  Ship Owner,  the
          average age of the Additional Ships at that time subject to a Mortgage
          shall not exceed 10 years;

     (e)  it maintains the highest class with a classification  society which is
          acceptable  to all of the Lenders free of any overdue  recommendations
          and conditions;

     (f)  it is to be registered on an Approved Flag;

     (g)  at least 25 percent  of the purchase  price of the  Additional  Ship
          shall be contributed by the Additional Ship Owner either (i) by way of
          a shareholder's  loan which is advanced to the Borrower and on-lent to
          the Additional  Ship Owner or (ii) through the proceeds of a secondary
          offering of the share capital of the Borrower  which are then advanced
          (either  wholly or partially  (as the case may be)) to the  Additional
          Ship Owner;

     "Additional  Ship  Earnings  Account  Pledge"  means,  in  relation to each
     Earnings  Account  of an  Additional  Ship,  a  pledge  agreement  creating
     security  in favour of the  Creditor  Parties in  respect of that  Earnings
     Account in such form as the  Lenders  may  approve or require  and,  in the
     plural means all of them;

     "Additional  Ship  MOA"  means,  in  relation  to  an  Additional  Ship,  a
     memorandum of agreement or a  shipbuilding  contract to be made between the
     Additional  Ship Seller of that  Additional  Ship and the  Additional  Ship
     Owner which is the buyer thereof on terms and conditions  acceptable to the
     Lenders (such  approval not to be  unreasonably  withheld if the Additional
     Ship satisfies all the Additional  Ship  Requirements)  and, in the plural,
     means all of them;

     "Additional  Ship Seller"  means,  in relation to an Additional  Ship,  the
     seller of such Additional Ship and, in the plural, means all of them;

     "Additional  Ship  Owner"  means a company  which is a direct  or  indirect
     wholly-owned  subsidiary  of the Borrower  incorporated  in a  jurisdiction
     acceptable to the Lenders (in their absolute discretion) which shall be the
     owner of an Additional Ship and, in the plural, means all of them;

     "Adjusted  Equity"  means,  as of any  Compliance  Date,  the  value of the
     stockholders'  equity of the Group  determined on a  consolidated  basis in
     accordance  with GAAP and as shown in the  consolidated  balance sheets for
     the Group in the  Applicable  Accounts,  adjusted by adding or  subtracting
     (depending  on whether  the same is positive or  negative)  any  difference
     between:

     (a)  the  value of  Total  Assets  determined  on a  consolidated  basis in
          accordance with GAAP and as shown in such consolidated balance sheets;
          and

     (b)  the Market Value Adjusted Total Assets;

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

     "Affected Lender" has the meaning given in Clause 5.6;

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

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

     "Applicable  Accounts"  means,  in  relation  to a  Compliance  Date  or an
     accounting period, the consolidated balance sheets and related consolidated
     statements of stockholders'  equity, income and cash flows of the Group set
     out in the annual financial  statements or interim financial  statements of
     the Group  prepared as of the  Compliance  Date or, as the case may be, the
     last day of the  accounting  period in question  (and which the Borrower is
     obliged to deliver to the Agent pursuant to Clause 11.6);

     "Approved  Broker"  means each of Braemar  Seascape  Shipbrokers  Ltd.,  H.
     Clarkson  & Company  Limited,  Barry  Rogliano  Salles  S.A.,  R.S.  Platou
     Shipbrokers A.S., P.F. Bassoe AS, Arrow Sale & Purchase (UK) Ltd.,  Simpson
     Spence & Young, Feamley AS and Maersk Shipbrokers;

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

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

     "Approved Manager" means, in relation to:

     (a)  each Ship (other than the Identified Ship during the Hille  Oldendorff
          Charter  Period),  Cardiff Marine Inc., a corporation  incorporated in
          the Republic of Liberia and  maintaining a ship  management  office at
          Omega Building, 80 Kifissias Avenue, Maroussi, 151 25, Greece;

     (b)  the Identified Ship at all times during the Hille  Oldendorff  Charter
          Period,  Egon  Oldendorff,  a  company  incorporated  in  Germany  and
          maintaining a ship  management  office at Funfhausen 1, 23 552 Lubeck,
          Germany; and

     (c)  or any other company which the Agent may,  with the  authorisation  of
          the  Majority  Lenders,  approve  from  time to time as the  technical
          and/or commercial agent of a Ship;

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

     (a)  in the case of:

          (i)  the Refinancing Advance, 5 April 2006;

          (ii) the Identified Ship Advance, 15 April 2006;

          (iii) an Additional  Advance (subject to Clause 4.8), the date falling
               364 days after the date of this  Agreement (or, in respect of any
               of the Advances referred to in this paragraph (a) such later date
               as the Agent  may,  with the  authorisation  of all the  Lenders,
               agree with the Borrower); or

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

     "Balloon Instalment" means, in relation to:

     (a)  the Term Loan (subject to the proviso to Clause 8.1(a)(i)),  an amount
          of $17,226,457.40; and

     (b)  an  Additional  Advance,  the  balloon  instalment  in respect of that
          Advance  as  specified  in the  repayment  schedule  for that  Advance
          referred to in Clause  8.1(a)(ii)  and  calculated in accordance  with
          Clause 8.1(b);

     "Bank  Guarantee"  means the guarantee of the  obligations  of the Borrower
     under the Master  Agreement  to be entered  into  between the  Borrower and
     HBOSTS, executed or to be executed by BOS in favour of HBOSTS;

     "Bookrunner"  means each of the Lead  Bookrunner  and the Joint  Bookrunner
     and, in the plural, means both of them;

     "Borrower" means Dryships Inc., a corporation  incorporated in the Marshall
     Islands and having its registered office at Trust Company Complex, Ajeltake
     Road, Ajeltake Island, Majuro, The Marshall Islands MH 96960;

     "Borrower's  Accounts Pledge" means a pledge agreement creating security in
     favour of the  Creditor  Parties  in respect  of the Debt  Service  Reserve
     Account and the  Retention  Account in such form as the Lenders may approve
     or require;

     "BOS"  means the  Governor  and  Company  of the Bank of  Scotland,  acting
     through its office at New Uberior House, 11 Earl Grey Street, Edinburgh EH3
     9BN, Scotland;

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

     "Charterparty Assignment" means, in relation to each Ship, an assignment of
     the  rights  of the  Owner of that  Ship  under  any time  charterparty  or
     contract  of  affreightment  in  respect  of  such  Ship  of  at  least  11
     consecutive  months in  duration  or under  any  bareboat  charter  and any
     guarantee of such  charter or other  contract of  employment  in respect of
     such Ship executed or to be executed by the relevant Owner in favour of the
     Security Trustee,  in each case, in such form as the Lenders may approve or
     require and, in the plural, means all of them;

     "Commitment" means, in relation to a Lender, the aggregate of the Term Loan
     Commitment and the Credit Facility Commitment of that Lender;

     "Compliance  Date" means 30 June and 31 December in each  calendar year (or
     such  other  dates as of  which  the  Borrower  prepares  the  consolidated
     financial  statements  which it is required  to deliver  pursuant to Clause
     11.6);

     "Confirmation"  and "Early Termination Date", in relation to any continuing
     Designated Transaction, have the meanings given in each Master Agreement;

     "Contractual Currency" has the meaning given in Clause 21.5;

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

     "Counter  Indemnity" means the counter indemnity executed or to be executed
     by the  Borrower  in  favour of BOS,  indemnifying  BOS in  respect  of any
     amounts it may be obliged to pay under the Bank Guarantee;

     "Credit  Facility" means an amount of up to $12,500,000  (representing  the
     maximum  aggregate  principal  amount of the  Additional  Advances)  or the
     aggregate  principal  amount of the Additional  Advances for the time being
     outstanding under this Agreement;

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

     "Creditor Party" means the Agent, the Security  Trustee,  each Swap Bank or
     any Lender, whether as at the date of this Agreement or at any later time;

     "Debt Service Reserve Account" means an account in the name of the Borrower
     with the Agent in Hamburg designated  "Dryships Inc. - Debt Service Reserve
     Account" or any other  account  (with that or another  office of the Agent)
     which is  designated by the Agent as the Debt Service  Reserve  Account for
     the purposes of this Agreement;

     "Deed of Covenant" means:

     (a)  in relation to each Existing Ship and the  Identified  Ship, a deed of
          covenant collateral to the Mortgage on that Ship; and

     (b)  in  relation  to  each  Additional  Ship,  if a deed  of  covenant  is
          appropriate  given the  Mortgage on that  Additional  Ship,  a deed of
          covenant collateral to the Mortgage on that Additional Ship,

     each in such form as the Lenders may approve or require  and, in the plural
     means all of them;

     "Designated  Transaction"  means a Transaction  which fulfils the following
     requirements:

     (a)  it is entered into by the Borrower pursuant to a Master Agreement with
          a Swap Bank which,  at the time the  Transaction  is entered  into, is
          also a Lender;

     (b)  its  purpose is the  hedging  of the  Borrower's  exposure  under this
          Agreement  to  fluctuations  in LIBOR  arising from the funding of the
          Loan (or any part  thereof)  for a period  expiring  no later than the
          final Repayment Date; and

     (c)  it is designated  by the Borrower,  by delivery by the Borrower to the
          Agent of a notice of designation in the form set out in Schedule 7, as
          a Designated Transaction for the purposes of the Finance Documents;

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

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

     "Drawdown  Notice"  means a notice in the form set out in Schedule 3 (or in
     any other form which the Agent approves or reasonably requires);

     "Earnings"  means, in relations to each Ship, all moneys  whatsoever  which
     are now, or later become,  payable  (actually or contingently) to the Owner
     thereof or the Security Trustee and which arise out of the use or operation
     of that Ship, including (but not limited to):

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

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

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

     "Earnings  Account" means, in relation to each Ship, an account in the name
     of the Owner of that Ship, with the Agent in Hamburg  designated  "[name of
     Ship] -  Earnings  Account",  or any other  account  (with  that or another
     office of the  Agent)  which is  designated  by the  Agent as the  Earnings
     Account for that Ship for the purposes of this Agreement and, in the plural
     means all of them;

     "EBITDA" means, for any accounting  period,  the consolidated net income of
     the Group for that accounting period:

     (a)  plus, to the extent deducted in computing  consolidated  net income of
          the Group for that accounting  period,  the sum, without  duplication,
          of:

          (i)  all   federal,   state,   local   and   foreign   taxes  and  tax
               distributions;

          (ii) Net Interest Expenses; and

          (iii) depreciation,  depletion,  amortisation of intangibles and other
               non-cash   charges  or  non-cash   losses   (including   non-cash
               transaction  expenses and the amortisation of debt discounts) and
               any  extraordinary  losses not incurred in the ordinary course of
               business;

     (b)  minus, to the extent added in computing consolidated net income of the
          Group for that  accounting  period,  any  non-cash  income or non-cash
          gains and any extraordinary  gains not incurred in the ordinary course
          of business;

     all determined on a consolidated basis in accordance with GAAP and as shown
     in the  consolidated  statements of income for the Group in the  Applicable
     Accounts;

     "Environmental Claim" means:

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

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

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

     "Environmental Incident" means, in relation to each Ship:

     (a)  any release of Environmentally Sensitive Material from that Ship; or

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

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

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

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

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

     "Existing   Indebtedness"  means,  at  any  relevant  time,  the  aggregate
     Financial  Indebtedness  of the Borrower or its  wholly-owned  subsidiaries
     under the Existing Loan Agreements;

     "Existing Loan Agreements" means, together:

     (a)  the loan  agreement  dated 6 December  2004 made between (i) Annapolis
          Shipping Company Limited and certain other companies (each of which is
          an indirect  wholly-owned  subsidiary  of the  Borrower)  as joint and
          several borrowers,  (ii) the banks and financial institutions referred
          to therein as lenders and (iii)  Commerzbank  AG as agent and security
          trustee in respect of a loan facility of (originally) $185,000,000 (of
          which an amount of  $136,667,000 is outstanding by way of principal on
          the date of this Agreement);

     (b)  the loan agreement  dated 18 March 2005 made between (i) the Borrower,
          (ii) the banks and  financial  institutions  referred  to  therein  as
          lenders  and (iii)  Commerzbank  AG as agent and  security  trustee in
          respect of a loan facility of (originally)  $200,000,000  (of which an
          amount of  $163,378,000 is outstanding by way of principal on the date
          of this Agreement);

     (c)  the loan  agreement  dated 15 March 2005 made between (i) the indirect
          wholly-owned  subsidiaries of the Borrower,  Arleta  Shipping  Company
          Limited,  Malvina Shipping Company Limited and Thelma Shipping Company
          Limited,   as  joint  and  several  borrowers  and  (ii)  Norddeutsche
          Landesbank  Girozentrale  as lender in respect of a loan  facility  of
          (originally)  $120,645,000  (of  which an amount  of  $108,662,000  is
          outstanding by way of principal on the date of this Agreement);

     (d)  the loan  agreement  dated 23 March 2005 made between (i) the indirect
          wholly-owned  subsidiary  of  the  Borrower,  Selma  Shipping  Company
          Limited, as borrower and (ii) The Royal Bank of Scotland plc as lender
          in respect of a loan facility of (originally) $92,940,000 (of which an
          amount of  $72,778,000  is outstanding by way of principal on the date
          of this Agreement); and

     (e)  the loan  agreement  dated 29 March 2005 made between (i) the indirect
          wholly-subsidiary of the Borrower, Iguana Shipping Company Limited, as
          borrower and (ii) Deutsche Schiffsbank Aktiengesellschaft as lender in
          respect of a loan facility of  (originally)  $19,000,000  (of which an
          amount of  $14,000,000  is outstanding by way or principal on the date
          of this Agreement),

     and, in the singular, means any of them;

     "Existing Ships" means, together, the Ships referred to in Schedule 2, Part
     A and, in the singular means any of them and when referred to by name means
     that Ship;

     "Existing Ships Earnings Accounts Pledge" means a pledge agreement creating
     security  in favour of the  Creditor  Parties in  respect  of the  Earnings
     Accounts of all the Existing  Ships in such form as the Lenders may approve
     or require;

     "Final Maturity Date" means 31 May 2016;

     "Finance Documents" means:

     (a)  this Agreement;

     (b)  the Master Agreements;

     (c)  the Agency and Trust Deed;

     (d)  the Guarantees;

     (e)  the Wealth Guarantee;

     (f)  the Master Agreement Assignments;

     (g)  the Mortgages;

     (h)  the General Assignments;

     (i)  the Deeds of Covenant;

     (j)  the Borrower's Accounts Pledge;

     (k)  the Existing Ships Earnings Accounts Pledge;

     (l)  the Identified Ship Earnings Account Pledge;

     (m)  the Additional Ship Earnings Account Pledges;

     (n)  the Wealth Account Pledge;

     (o)  any Charterparty Assignment;

     (p)  the Hille Oldendorff Tripartite Agreement;

     (q)  the Management Agreement Assignments;

     (r)  the Manager's Undertakings;

     (s)  the Counter Indemnity; and

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

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

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

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

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

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

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

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

     "Financial  Year"  means in  relation  to the Group,  each period of I year
     commencing on 1 January in respect of which its  consolidated  accounts are
     or ought to be prepared;

     "Fleet  Vessels"  means  together  all of the vessels  (including,  but not
     limited to, the Ships) from time to time owned by members of the Group;

     "GAAP" means generally accepted accounting  principles as from time to time
     in effect in the United States of America;

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

     "Goodwill" means Goodwill Shipping Company Limited, a company  incorporated
     in Malta having its registered  office at 512 Merchants  Street,  Valletta,
     Malta;

     "Group" means the Borrower and its subsidiaries (whether direct or indirect
     and including, but not limited to, the Owners) from time to time during the
     Security Period and "member of the Group" shall be construed accordingly;

     "Guarantee"  means a guarantee of the Borrower's  obligations  under (inter
     alia) this Agreement,  the Master  Agreements and the Senior Loan Agreement
     executed or to be executed by each Owner in favour of the Security  Trustee
     in such form as the Lenders  shall  approve or require  and, in the plural,
     means all of them;

     "HBOSTS"  means HBOS Treasury  Services plc of 33 Old Broad Street,  London
     EC2N 1HZ,  England and  includes its  successors  in title,  assignees  and
     transferees;

     "Hedge  Strategy  Letter" means a letter issued or to be issued by no later
     than 30 April 2006 by the Borrower to the Agent  setting out a strategy for
     hedging the Borrower's  exposure under this  Agreement to  fluctuations  of
     LIBOR  arising  from the  funding  at least 60 percent  of the Loan for a
     consecutive period of at least 5 years during the Security Period;

     "Hille  Oldendorff  Charterparty"  means a bareboat  charterparty  dated 29
     August  2005 in respect of "HILLE  OLDENDORFF"  made  between  Goodwill  as
     original  owner and  Oldendorff  Carriers GmbH & Co. KG  ("Oldendorff")  as
     original  charterer  (as the same has been novated to the Hille  Oldendorff
     Charterer by an addendum no. 1 thereto dated 6 October 2005 and as the same
     shall be  novated to  Seaventure  by an  addendum  no. 2 thereto to be made
     between Goodwill,  Seaventure, the Hille Oldendorff Charterer and the Hille
     Oldendorff Charter Guarantor);

     "Hille  Oldendorff  Charterer"  means  Catania  Shipping  Inc.,  a Liberian
     corporation  whose  registered  office  is at 80  Broad  Street,  Monrovia,
     Liberia;

     "Hille  Oldendorff  Charter  Guarantee"  means the  guarantee  by the Hille
     OIdendorff  Charter  Guarantor of the  obligations of the Hille  Oldendorff
     Charterer under the Hille Oldendorff  Charterparty as evidenced in Addendum
     No. 1 thereto dated 6 October 2005;

     "Hille Oldendorff Charter  Guarantor" means Oldendorff  Carriers GmbH & Co.
     KG, a German  company acting  through its office at  Willy-Brandt-Allee  6,
     23554 Lubeck, Germany;

     "Hille  Oldendorff  Charter Period" means the period commencing on the date
     of delivery of "HILLE  OLDENDORFF" under the Hille OIdendorff  Charterparty
     and ending on the date on which the Hille Oldendorff  Charterparty  expires
     by  effluxion  of time or (if  earlier)  on the  date on  which  the  Hille
     Oldendorff  Charterparty  is otherwise  terminated  or frustrated or "HILLE
     OLDENDORFF" is withdrawn from hire under the Hille Oldendorff Charterparty;

     "Hille  Oldendorff  MOA" means,  a  memorandum  of  agreement in respect of
     "HILLE  OLDENDORFF" dated 24 March 2006 made between Goodwill as seller and
     Seaventure as buyer;

     "Hille Oldendorff  Seller's Credit Agreement" means an agreement made or to
     be made between  Seaventure  and Goodwill  whereby  Goodwill shall agree to
     defer the payment of $3,250,000 of the purchase price payable by Seaventure
     pursuant  to the Hille  Oldendorff  MOA with  such  deferred  amount  being
     payable,  subject to Clause  11.22,  in one amount no earlier than 9 months
     after the Drawdown  Date in respect of the  Identified  Ship Advance and no
     later than 12 months after the Drawdown  Date in respect of the  Identified
     Ship  Advance,  such  agreement to be in a form  acceptable to the Majority
     Lenders;

     "Hille  Oldendorff  Tripartite  Agreement"  means,  in  relation  to "HILLE
     OLDENDORFF",  an  agreement  made between the Hille  Oldendorff  Charterer,
     Seaventure and the Security Trustee in such form as the Lenders may approve
     or require;

     "IACS" means the International Association of Classification Societies;

     "Identified  Ship" means "HILLE  OLDENDORFF"  being the Ship referred to in
     Schedule 2, Part B and when referred to by name means that Ship;

     "Identified  Ship  Advance"  means an  amount  of up to the  lesser  of (a)
     $4,809,000  and (b) 13.5 percent  of the Market  Value of the  Identified
     Ship (determined in accordance with the valuation  referred to in paragraph
     10 of Schedule 5, Part C) which is to be made available in accordance  with
     and pursuant to Clauses 2.3 and 4.2(d);

     "Identified Ship Earnings Account Pledge" means a pledge agreement creating
     security  in favour of the  Creditor  Parties in  respect  of the  Earnings
     Account of the  Identified  Ship in such form as the Lenders may approve or
     require;

     "Insurances" means, in relation to each Ship:

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

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

     "Interest  Coverage  Ratio" means,  in relation to a Compliance  Date or an
     accounting  period,  the ration of (a) EBITDA for the most recent financial
     period of the Group ending on the  Compliance  Date to (b) the Net Interest
     Expenses for that  financial  period  (calculated  on a trailing  12-months
     basis);

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

     "ISM Code" means:

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

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

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

     "ISM Code Documentation" includes, in relation to each Ship:

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

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

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

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

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

     "ISPS Code Documentation" includes:

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

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

     "Lender" means, subject to Clause 26.6:

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

     (b)  the holder for the time being of a Transfer Certificate;

     "LIBOR" means, for an Interest Period:

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

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

     (c)  in relation to any Interest  Period of 12 months or more,  the average
          of the actual costs to the Lenders of funding their  participation  in
          the Loan;

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

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

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

     "Manager's  Undertaking"  means,  in  relation  to each  Ship,  a letter of
     undertaking executed or to be executed by the Approved Manager in favour of
     the  Security  Trustee in such form as the  Lenders  may approve or require
     agreeing  certain  matters in relation to the  management  of that Ship and
     subordinating  the rights of the Approved  Manager against the Ship and the
     Owner  thereof  to the rights of the  Creditor  Parties  under the  Finance
     Documents and, in the plural, means all of them;

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

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

     "Mandatory  Cost" means the  percentage  rate per annum  calculated  by the
     Agent in accordance with Schedule 9;

     "Margin" means:

     (a)  at any time when the Security  Cover  Percentage  is equal to, or less
          than, 77.5 percent, 2.43 percent per annum; and

     (b)  at all other times, 2.53 percent per annum;

     "Market Adjusted Equity Ratio" means, in relation to a Compliance Date, the
     ratio of (a) the Adjusted  Equity for the most recent  financial  period of
     the Group ending on the  Compliance  Date to (b) the aggregate of (i) Total
     Interest  Bearing  Liabilities  and (ii) Adjusted Equity for that financial
     period;

     "Market Value" means,  in relation to each Ship and each Fleet Vessel,  the
     market value thereof calculated in accordance with Clause 15.4;

     "Market  Value  Adjusted  Net Worth"  means  Paid-Up  Capital  plus General
     Reserves plus Retained Earnings adjusted to reflect the difference  between
     the book  values of the Fleet  Values  and the  Market  Values of all Fleet
     Vessels at any relevant time;

     "Market Value  Adjusted  Total  Assets"  means,  at any time,  Total Assets
     adjusted to reflect the Market Value of all Fleet Vessels;

     "Master Agreement" means each master agreement (on the 1992 or, as the case
     may be, 2002 ISDA  (Multicurrency  -  Crossborder)  form) made  between the
     Borrower and a Swap Bank and includes all Designated Transactions from time
     to time entered into and  Confirmations  from time to time exchanged  under
     the master agreement and, in the plural, means both of them;

     "Master Agreement  Assignment" means, in relation to each Master Agreement,
     the  assignment  of that Master  Agreement  in such form as the Lenders may
     approve or require and, in the plural, means both of them;

     "Mortgage" means:

     (a)  in relation to each  Existing  Ship and the  Identified  Ship, a first
          priority Maltese statutory mortgage on such Ship; and

     (b)  in relation to each  Additional  Ship,  a first  priority or preferred
          mortgage on such Ship under the relevant Approved Flag,

     each in such form as the  Lenders  may  approve or require  and, in plural,
     means all of them;

     "Negotiation Period" has the meaning given in Clause 5.9;

     "Net Income" means, in relation to each Financial Year of the Borrower, the
     aggregate income of the Group appearing in the Applicable Accounts for that
     Financial Year less the aggregate of:

     (a)  the  amounts  incurred  by the Group  during  that  Financial  Year as
          expenses of its business;

     (b)  depreciation,   amortisation  and  all  interest  in  respect  of  all
          Financial  Indebtedness  of the Group paid by all members of the Group
          during that Financial Year;

     (c)  Net Interest Expenses;

     (d)  taxes; and

     (e)  other items  charged to the  Borrower's  consolidated  profit and loss
          account for the relevant Financial Year;

     "Net Interest  Expenses" means, as of any Compliance Date, the aggregate of
     all interest,  commitment and other fees, commissions,  discounts and other
     costs,  charges or  expenses  accruing  due from all the  members the Group
     during that accounting period less interest income received,  determined on
     a  consolidated  basis  in  accordance  with  GAAP  and  as  shown  in  the
     consolidated statements of income for the Group in the Applicable Accounts;

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

         "Owner" means in relation to:

     (a)  each Existing Ship, the corporation  which is specified in Schedule 2,
          Part A as the owner  thereof,  being a company  incorporated  in Malta
          having its registered office at 512 Merchants Street, Valletta, Malta;

     (b)  the Identified Ship, Seaventure; and

     (c)  an Additional Ship, the Additional Ship Owner of that Ship,

     (h)  each  being a  company  which is a  direct  or  indirect  wholly-owned
          subsidiary of the Borrower and in the plural means all of them;

     "Paid-Up  Capital",  "General  Reserves" and "Retained  Earnings"  have the
     meanings ascribed to them in the Applicable Accounts;

     "Payment Currency" has the meaning given in Clause 21.5;

     "Permitted Security Interests" means:

     (a)  Security Interests created by the Finance Documents;

     (b)  Security  Interest  created  pursuant to, or in connection  with,  the
          Existing Loan Agreements;

     (c)  liens for  unpaid  crew's  wages in  accordance  with  usual  maritime
          practice;

     (d)  liens for salvage;

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

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

     (g)  any Security Interest created in favour of a plaintiff or defendant in
          any action of the court or tribunal before whom such action is brought
          as  security  for  costs and  expenses  where  the  relevant  Owner is
          prosecuting  or  defending  such  action in good faith by  appropriate
          steps; and

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

     "Pertinent Jurisdiction", in relation to a company, means:

     (a)  England and Wales;

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

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

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

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

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

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

     "Reference Banks" means, subject to Clause 26.16, together, HSH Nordbank AG
     and BOS and any of their  respective  successors  and in the singular means
     any of them;

     "Refinancing  Advance" means an amount of up to $92,691,000  which is to be
     used  (a) in  refinancing  part  of the  Existing  Indebtedness  and (b) to
     provide  the  Borrower  with  working  capital  for its  general  corporate
     purposes and which is to be made available in accordance  with and pursuant
     to Clauses 2.3 and 4.2(c);

     "Relevant Person" has the meaning given in Clause 19.9;

     "Repayment  Date" means a date on which a repayment  is required to be made
     under Clause 8;

     "Repayment Instalment" means, in relation to:

     (a)  the Term Loan, each of the 40 repayment instalments listed in Schedule
          4; and

     (b)  an Additional  Advance,  each repayment  instalment in respect of that
          Additional  Advance  specified  in the  repayment  schedule  for  that
          Additional  Advance referred to in Clause 8.1(a)(ii) and calculated in
          accordance with Clause 8.1(b);

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

     "Retention  Account"  means an account in the name of the Borrower with the
     Agent in Hamburg  designated  "Dryships Inc. - Retention  Account",  or any
     other  account  (with  that  or  another  office  of the  Agent)  which  is
     designated by the Agent as the  Retention  Account for the purposes of this
     Agreement;

     "Seaventure" means Seaventure Shipping Limited, a corporation  incorporated
     in the Marshall  Islands and having its registered  office at Trust Company
     Complex,  Ajeltake Road,  Ajeltake Island,  Majuro, The Marshall Islands MH
     96960;

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

     "Security Cover Percentage" means, at any relevant time, the Loan expressed
     as a percentage of the  aggregate of the amounts  referred to in paragraphs
     (a) and (b) of Clause 15.1;

     "Security Interest" means:

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

     (b)  the rights of the plaintiff under an action in rem in which the vessel
          concerned  has been arrested or a writ has been issued or similar step
          taken; and

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

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

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

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

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

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

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

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

     "Senior  Designated   Transaction"  has  the  meaning  given  to  the  term
     "Designated Transaction" in the Senior Loan Agreement;

     "Senior  Lenders"  means,  subject  to  clause  26.6  of  the  Senior  Loan
     Agreement:

     (a)  a bank or financial  institution listed in Part A of Schedule 1 to the
          Senior Loan Agreement and acting through its branch  indicated in Part
          A of  Schedule 1 to the Senior  Loan  Agreement  (or  through  another
          branch  notified to the Borrower under clause 26.14 of the Senior Loan
          Agreement) unless it has delivered a Senior Loan Transfer  Certificate
          or Certificates covering the entire amounts of its Commitment (as such
          term is defined in the Senior Loan Agreement) and its Contribution (as
          such term is defined in the Senior Loan Agreement); and

     (b)  the holder for the time being of a Senior Loan Transfer Certificate;

     "Senior  Loan" means the  principal  amount for the time being  outstanding
     under the Senior Loan Agreement;

     "Senior  Loan  Agreement"  means the Loan  Agreement to be made between the
     Borrower as borrower,  the Senior Lenders, the Agent, the Security Trustee,
     the  Senior  Swap  Banks,  HSH  Nordbank  AG  as  lead  arranger  and  Iead
     bookrunner,  The  Governor  and  Company of the Bank of  Scotland  as joint
     bookrunner  and HSH Nordbank AG and The Governor and Company of the Bank of
     Scotland  as joint  underwriters  in  respect  of term loan and  short-term
     credit facilities of up to $577,500,000 in aggregate;

     "Senior Loan Transfer  Certificate" has the meaning given in clause 26.2 of
     the Senior Loan Agreement;

     "Senior  Master  Agreement"  has the  meaning  given  to the  term  "Master
     Agreement" in the Senior Loan Agreement;

     "Senior  Swap Bank" has the  meaning  given to the term "Swap  Bank" in the
     Senior Loan Agreement;

     "Ships" means,  together,  the Existing Ships, the Identified Ships and the
     Additional Ships and, in the singular, means any of them;

     "Swap Bank"  means each of the banks  listed in Part B of Schedule 1 acting
     through its branch or office indicated in Part B of Schedule 1, and, in the
     plural, means both of them;

     "Swap Exposure" means, as at any relevant date, the amount certified by the
     Swap Banks to the Agent to be the  aggregate  net  amount in Dollars  which
     would be payable by the Borrower to the Swap Banks under (and calculated in
     accordance  with)  section  6(e)  (Payments on Early  Termination)  of each
     Master Agreement if an Early  Termination Date had occurred on the relevant
     date in relation to all  continuing  Designated  Transactions  entered into
     between the Borrower and the Swap Banks;

     "Term Loan" means an amount of up to $97,500,000  (representing the maximum
     aggregate  principal  amount of the Refinancing  Advance and the Identified
     Ship Advance) or the aggregate  principal amount of the Refinancing Advance
     and the Identified Ship Advance for the time being  outstanding  under this
     Agreement;

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

     "Total Assets" means, as of any Compliance Date, the aggregate value of all
     trade debtors and the value of all stock  (valued in accordance  with GAAP)
     and all other  investments and other tangible and intangible  assets of the
     Group  properly  included in the  Applicable  Accounts as "fixed assets" in
     accordance with GAAP but excluding any assets held on trust;

     "Total  Commitments" means the aggregate of the Total Term Loan Commitments
     and the Total Credit Facility Commitments;

     "Total Interest Bearing  Liabilities" means, as of any Compliance Date, the
     consolidated total amount of the interest bearing Financial Indebtedness of
     the Group;

     "Total  Liabilities"  means,  as of  any  Compliance  Date,  the  aggregate
     Financial Indebtedness of the Group;

     "Total Loss" means in relation to each Ship:

     (a)  actual,  constructive,  compromised,  agreed or arranged total loss of
          that Ship;

     (b)  any  expropriation,  confiscation,  requisition  or acquisition of the
          Ship,  whether for full  consideration,  a consideration less than her
          proper value, a nominal  consideration  or without any  consideration,
          which is effected by any  government  or official  authority or by any
          person or persons  claiming  to be or to  represent  a  government  or
          official  authority,  excluding  a  requisition  for  hire for a fixed
          period not exceeding one year without any right to an extension;

     (c)  any  condemnation  of the Ship by any  tribunal  or by any  person  or
          person claiming to be a tribunal;

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

     "Total Loss Date" means:

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

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

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

          (ii) the date of any  compromise,  arrangement or agreement made by or
               on behalf of the  relevant  Owner,  with the Ship's  insurers  in
               which the insurers agree to treat the Ship as a total loss; and

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

     "Transaction" has the meaning given in each Master Agreement;

     "Transfer Certificate" has the meaning given in Clause 26.2;

     "Trust  Property"  has the  meaning  given in clause  3.1 of the Agency and
     Trust  Dee;

     "Wealth" means Wealth  Management  Inc., a corporation  incorporated in the
     Marshall Islands and having its registered office at Trust Company Complex,
     Ajeltake Road, Ajeltake Island, Majuro, The Marshall Islands MH 96960;

     "Wealth  Account"  means an account in the name of Wealth with the Agent in
     Hamburg designated  "Wealth  Management Inc. - Cash Management  Account" or
     any other  account  (with  that or another  office of the  Agent)  which is
     designated  by the Agent as the Wealth  Account  for the  purposes  of this
     Agreement;

     "Wealth  Account  Pledge"  means a pledge  agreement  creating  security in
     favour of the  Creditor  Parties in  respect of the Wealth  Account in such
     form, as the Lenders may approve or require; and

     "Wealth  Guarantee" means a guarantee of the Borrower's  obligations  under
     (inter  alia) this  Agreement,  the Master  Agreements  and the Senior Loan
     Agreement  executed or to be  executed by Wealth in favour of the  Security
     Trustee in such form as the Lenders  shall  approve or require  and, in the
     plural, means all of them.

1.3  Construction of certain terms. In this Agreement:

     "approved" means, for the purposes of Clause 13, approved in writing by the
     Agent;

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

     "company"  includes  any  partnership,  joint  venture  and  unincorporated
     association;

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

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

     "document" includes a deed; also a letter, fax or telex;

     "excess risks" means the proportion of claims for general average,  salvage
     and salvage charges not recoverable  under the hull and machinery  policies
     in respect of any Ship in  consequence of her insured value being less than
     the value at which that Ship is assessed for the purpose of such claims;

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

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

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

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

     "months" shall be construed in accordance with Clause 1.3;

     "obligatory  insurances"  means  all  insurances  effected,  or  which  the
     Borrower is obliged to effect, under Clause 13 below or any other provision
     of this Agreement or another Finance Document;

     "parent company" has the meaning given in Clause 1.4;

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

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

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

     "regulation" includes any regulation,  rule, official directive, request or
     guideline  (either  having  the force of law or  compliance  with  which is
     reasonable  in the ordinary  course of business of the party  concerned) of
     any  governmental,   intergovernmental   or  supranational   body,  agency,
     department   or   regulatory,   self-regulatory   or  other   authority  or
     organisation;

     "subsidiary" has the meaning given in Clause 1.4;

     "successor"  includes any person who is entitled (by assignment,  novation,
     merger or otherwise) to any other  person's  rights under this Agreement or
     any other  Finance  Document (or any  interest in those  rights) or who, as
     administrator,  liquidator  or  otherwise,  is entitled  to exercise  those
     rights;  and in particular  references  to a successor  include a person to
     whom those rights (or any interest in those rights) are transferred or pass
     as a result of a merger,  division,  reconstruction or other reorganisation
     of it or any other person;

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

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

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

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

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

     and "month" and "monthly" shall be construed accordingly.

1.5  Meaning of  "subsidiary".  A company (S) is a subsidiary of another company
     (P) if:

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

(b)  P has  direct or  indirect  control  over a majority  of the voting  rights
     attached to the issued shares of S; or

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

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

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

1.6  General Interpretation.

(a)  In this Agreement:

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

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

    (iii) words denoting the singular  number shall include the plural and vice
          versa.

(b)  Clauses 1.1 to 1.4 and  paragraph  (a) of this Clause 1.5 apply  unless the
     contrary intention appears.

(c)  References  in Clause 1.1 to a document  being in the form of a  particular
     Appendix  include  references to that form with any  modifications  to that
     form which the Agent (with the authorisation of the Majority Lenders in the
     case of substantial modifications) approves or reasonably requires.

(d)  The clause headings shall not affect the interpretation of this Agreement.

2    FACILITY

2.1  Amount of facility.  Subject to the other provisions of this Agreement, the
     Lenders  shall  make  available  to  the  Borrower  term  loan  and  credit
     facilities not exceeding $110,000,000 in aggregate at any time.

2.2  Lenders'  participations  in Loan.  Subject to the other provisions of this
     Agreement, each Lender shall participate in:

(a)  each of the  Refinancing  Advance and the  Identified  Ship  Advance in the
     proportion  which,  as  at  the  relevant  Drawdown  Date,  its  Term  Loan
     Commitment bears to the Total Term Loan Commitments; and

(b)  each  Additional  Advance  in the  proportion  which,  as at  the  relevant
     Drawdown Date,  its Credit  Facility  Commitment  bears to the Total Credit
     Facility Commitments.

2.3  Purpose of Loan.  The Borrower  undertakes  with each Creditor Party to use
     each Advance only for the purpose stated in the preamble to this Agreement.

3    POSITION OF THE LENDERS, THE SWAP BANKS AND THE MAJORITY LENDERS

3.1  Interests of Lenders and Swap Bank  several.  The rights of the Lenders and
     the Swap Banks under this Agreement and each Master  Agreement are several;
     accordingly:

(a)  each Lender  shall be  entitled to sue for any amount  which has become due
     and payable by the Borrower to it under this Agreement; and

(b)  each Swap Bank shall be entitled to sue for any amount which has become due
     and payable by the Borrower to it under the Master  Agreement to which that
     Swap Bank is a party,

     without joining the Agent,  the Security  Trustee,  any other Lender or any
     Swap Bank as additional parties in the proceedings.

3.2  Proceedings by individual Lender or Swap Bank.  However,  without the prior
     consent of the Majority Lenders,  no Lender and neither Swap Bank may bring
     proceedings in respect of:

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

(b)  any  misrepresentation  or breach of warranty by the Borrower or a Security
     Party in or connected with a Finance Document or a Master Agreement.

3.3  Obligations  several.  The  obligations of the Lenders under this Agreement
     and of the Swap  Banks  under the  Master  Agreements  are  several;  and a
     failure of a Lender to perform its obligations under this Agreement or of a
     Swap Bank to perform its obligations under the Master Agreement to which it
     is a party shall not result in:

(a)  the obligations of the other Lenders being increased; nor

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

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

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

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

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

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

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

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

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

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

4    DRAWDOWN

4.1  Request for Advance. Subject to the following conditions,  the Borrower may
     request  an  Advance  to be made by  ensuring  that the  Agent  receives  a
     completed  Drawdown  Notice  not later than  11.00  a.m.  (Hamburg  time) 3
     Business Days prior to the intended Drawdown Date.

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

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

(b)  (subject to paragraph  (g) of this Clause 4.2) each  Advance  shall be made
     available in a single amount;

(c)  the Refinancing  Advance shall not exceed the lesser of (i) $92,691,000 and
     (ii) 13 percent of the aggregate  Market Values of the Existing Ships (as
     determined in accordance with the valuations referred to in paragraph 12 of
     Schedule  5,  Part A) and  shall  be  applied  in  refinancing  part of the
     Existing  Indebtedness  and as to any balance to provide the Borrower  with
     working capital for its general corporate purposes;

(d)  the  Identified  Ship Advance shall not exceed the lesser of (i) $4,809,000
     and (ii) 13.5 percent  of the  Market  Value of  "HILLE  OLDENDORFF"  (as
     determined by the valuation referred to in paragraph 9 of Schedule 5, Party
     B) and shall be applied in financing  part of the purchase  price of "HILLE
     OLDENDORFF" payable pursuant to the Hille Oldendorff MOA;

(e)  the  Refinancing  Advance  and the  Identified  Ship  Advance  shall not in
     aggregate  exceed  13 per  cent.  of the  aggregate  Market  Values  of the
     Existing Ships and the Identified  Ship  (determined in accordance with the
     valuations  referred to  respectively in paragraph 12 of Schedule 5, Part A
     (in the case of the Existing  Ships) and  paragraph 9 of Schedule 5, Part B
     (in the case of the Identified Ship));

(f)  (subject to Clause  2.4) each  Additional  Advance  shall not exceed 12 per
     cent. of the Market Value of the Additional Ship whose purchase price is to
     be  part-financed  by that Additional  Advance (as determined in accordance
     with the valuations referred to in paragraph 10 of Schedule 5, Part C);

(g)  any amount undrawn in respect of an Advance may be borrowed at a later date
     subject to the satisfaction of the other conditions of this Clause 4.2 save
     and except that the Agent  (acting  upon the  instructions  of the Majority
     Lenders) may rely on the valuations of the Ships previously  provided to it
     pursuant to Clause 9.1 without  seeking new  valuations  for the purpose of
     determining  the Borrower's  satisfaction  of the conditions of this Clause
     4.2 at the time of drawdown of any undrawn amount of an Advance; and

(h)  the aggregate of the Advances shall not exceed the Total Commitments.

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

(a)  the amount of the Advance and the Drawdown Date;

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

(c)  the duration of the first Interest Period applicable to that Advance.

4.4  Drawdown Notice irrevocable. A Drawdown Notice must be signed by a director
     or a duly authorised signatory of the Borrower; and once served, a Drawdown
     Notice cannot be revoked without the prior consent of the Agent,  acting on
     the authority of the Majority Lenders.

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

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

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

(b)  in the like funds as the Agent received the payments from the Lenders.

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

4.8  Review of  Availability  Period for Credit  Facility.  The Lenders  may, in
     their sole and absolute discretion (without any obligation to do so), agree
     to extend the  original  Availability  Period  which  applies to the Credit
     Facility (being a period ending on the date falling 364 days after the date
     of this  Agreement) if at the end of such period the Total Credit  Facility
     Commitments  have not been fully drawn.  If all the Lenders agree to extend
     the applicable  Availability  Period in accordance with this Clause 4.8 the
     Agent  shall send to the  Borrower a notice in writing  advising  it of the
     period by which the Availability Period will be extended.

5    INTEREST

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

5.2  Normal rate of interest.  Subject to the provisions of this Agreement,  the
     rate of  interest  on each  Advance  and the Loan and each part  thereof in
     respect  of an  Interest  Period  shall,  subject  to  Clause  6.4,  be the
     aggregate of (i) the  applicable  Margin,  (ii) the Mandatory Cost (if any)
     and (iii) LIBOR.

5.3  Payment of accrued interest.  In the case of an Interest Period longer than
     3 months, accrued interest shall be paid every 3 months (or, in the case of
     Interest  Periods  of 12 months or  longer,  every 6  months)  during  that
     Interest Period and on the last day of that Interest Period.

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

(a)  each rate of interest; and

(b)  the duration of each Interest  Period;  as soon as  reasonably  practicable
     after each is determined.

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

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

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

(b)  at least one Business Day before the start of an Interest  Period,  Lenders
     having  Contributions  together  amounting to more than 30 percent of the
     Loan (or, if an Advance has not been made,  Commitments  amounting  to more
     than 30 percent  of the Total  Commitments)  notify  the Agent that LIBOR
     fixed by the Agent would not  accurately  reflect the cost to those Lenders
     of funding their respective  Contributions (or any part of them) during the
     Interest  Period in the London  Interbank  Dollar  Market at or about 11.00
     a.m.  (London time) on the second  Business Day before the  commencement of
     the Interest Period; or

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

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

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

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

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

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

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

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

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

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

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

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

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

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

5.15 Calculation of Security  Cover  Percentage.  The Agent shall  calculate the
     Security Cover  Percentage on the first Drawdown Date, on 30 September 2006
     and every 6 months  thereafter (each a "Margin  Calculation  Date") for the
     purposes of  calculating  the Margin and shall  advise the Borrower and the
     Lenders in  writing,  within 10 Business  Days of each  Margin  Calculation
     Date, of the Margin which will apply for the 6-month  period  commencing on
     the  relevant  Margin  Calculation  Date  Provided  that in respect of each
     Margin  Calculation Date other than the first Margin  Calculation Date, the
     Agent shall only be obliged to advise the  Borrowers and the Lenders of the
     Margin which will apply for the 6-month  period  commencing on the relevant
     Margin  Calculation  Date if that  Margin will be  different  to the Margin
     which applies immediately prior to the relevant Margin Calculation Date.

     For the purposes of calculating the Security Cover  Percentage  pursuant to
     this Clause 5.15, the Market Value of the Ships shall be determined no more
     than 15 days prior to the relevant Margin Calculation Date.

6    INTEREST PERIODS

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

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

(a)  1, 3, 6 or 12 months as  notified  by the  Borrower  to the Agent not later
     than 11.00 a.m.  (Hamburg time) 3 Business Days before the  commencement of
     the  Interest  Period  Provided  that  there may be no more than 3 Interest
     Periods having a duration of 1 month in any calendar year; or

(b)  in the case of the first Interest  Period  applicable to the second and any
     subsequent  Advance,  a period  ending on the last day of the then  current
     Interest  Period  whereupon all of the Advances shall be  consolidated  and
     treated as a single  Advance  Provided  that should the Agent,  in its sole
     discretion,  permit the Borrower to select more than one Interest Period at
     any time,  then under no  circumstances  shall the  Borrower  be allowed to
     select more than 5 separate Interest Periods at any time;

(c)  3 months,  if the Borrower  fails to notify the Agent by the time specified
     in paragraph (a) above; or

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

6.3  Duration of Interest  Periods for repayment  instalments.  In respect of an
     amount due to be repaid under Clause 8 on a particular  Repayment  Date, an
     Interest Period shall end on that Repayment Date.

6.4  Interest Periods longer than 12 months. If, after the Borrower has selected
     an Interest  Period  longer than 12 months,  and the Lenders have, in their
     absolute  discretion,  agreed to such selection,  then the rate of interest
     for that Interest  Period shall be the aggregate of the applicable  Margin,
     the  Mandatory  Cost  and the  Lenders'  cost of  funding  the Loan (or the
     applicable part thereof) for such period, as agreed between the Lenders and
     notified to the Agent.

7    DEFAULT INTEREST

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

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

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

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

7.2  Default rate of interest.  Interest  shall accrue on an overdue amount from
     (and including) the relevant date until the date of actual payment (as well
     after as before  judgment) at the rate per annum determined by the Agent to
     be 2 percent above:

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

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

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

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

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

     (i)  LIBOR; or

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

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

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

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

7.7  Application to Master Agreements. For the avoidance of doubt, this Clause 7
     does not apply to any amount payable under a Master Agreement in respect of
     any  continuing  Designated  Transaction  as to which section 2(e) (Default
     Interest; Other Amounts) of that Master Agreement shall apply.

8    REPAYMENT AND PREPAYMENT

8.1  Amount of Repayment Instalments.

(a)  The Borrower shall repay:

     (i)  the Term Loan by 40 consecutive  three-monthly  Repayment  Instalments
          and a Balloon  Instalment  (payable  together  with the fortieth  such
          instalment) in the amounts  referred to in Schedule 4 Provided that if
          the amount of the Term Loan drawn  down under this  Agreement  is less
          than $97,500,000, the Balloon Instalment shall be reduced by an amount
          equal to the undrawn amount of the Term Loan; and

     (ii) each Additional  Advance by the Repayment  Instalments  (calculated in
          accordance  with  Clause  8.1(b))  set  out  in a  repayment  schedule
          applicable to that  Additional  Advance to be provided to the Borrower
          by the  Agent  before  the  Drawdown  Date  relative  to the  relevant
          Additional  Advance  which  shall  provide for the  repayment  of that
          Advance  over the  Relevant  Repayment  Period  by  equal  consecutive
          three-monthly   Repayment  Instalments  (other  than  the  first  such
          Repayment  Instalment  which shall be paid on the first Repayment Date
          in respect of the Term Loan  falling  after the  Drawdown  Date of the
          relevant Additional Advance) and, if applicable,  a Balloon Instalment
          (payable  together with the last such Repayment  Instalment).

          In this Clause 8.1 "Relevant Repayment Period" means in the case of an
          Additional Advance which has been used to part-finance the acquisition
          of an Additional Ship built:

          (A)  between  1993 and 1996,  the  lesser of (A) 84 months and (B) the
               number  of  months  between  the  Drawdown  Date of the  relevant
               Additional Advance and the Final Maturity Date; and

          (B)  on or after 1997,  the number of months between the Drawdown Date
               of the relevant  Additional  Advance and the Final Maturity Date;
               and

(b)  the Repayment  Instalment for each Additional  Advance shall be "D" and the
     Balloon Instalment for each Additional Advance shall be "G" where:

     "A"  means the amount of the relevant Additional Advance;

     "B"  means, in the case of an Additional Ship built:

     (i)  between 1993 and 1996, 7;

     (ii) between 1997 and 2000, 11;

     (iii) between 2001 and 2003, 15; and

     (iv) on or after 2004, 18;

     "C"  means A divided by B;

     "D"  means C divided by 4;

     "E" means the number of months in the Relevant  Repayment Period (or if the
     number of months in the Relevant Repayment Period is not fully divisible by
     3,  the  nearest  number  of  months  (rounded  downwards)  which  is fully
     divisible by 3) divided by 12;

     "F"  means the product of (i) D, (ii) 4 and (iii) E; and

     "G" means A minus F.

8.2  Repayment Dates. Repayment Instalments shall be paid as follows:

(a)  each  Repayment  Instalment  in respect of the Term Loan shall be repaid on
     the Repayment Date  applicable to that Repayment  Instalment as outlined in
     Schedule 4;

(b)  the first Repayment  Instalment in respect of each Additional Advance shall
     be repaid on the first  Repayment  Date in respect of the Term Loan falling
     after  the  Drawdown  Date  of that  Additional  Advance,  each  subsequent
     Repayment  Instalment shall be paid at 3-monthly  intervals  thereafter and
     the last Repayment Instalment together with the relevant Balloon Instalment
     shall be paid on the  date  referred  to in the  repayment  schedule  to be
     provided by the Agent to the Borrower pursuant to Clause 8.1(b).

8.3  Consolidation  of Additional  Advances with Term Loan. On the Drawdown Date
     in respect of each Additional Advance (following the making of that Advance
     to the Borrower),  the relevant  Additional  Advance shall be  consolidated
     into the Term Loan and the Term Loan and the  relevant  Additional  Advance
     shall thereafter be repaid on the same dates. The Agent shall following the
     consolidation of each Additional  Advance with the Term Loan referred to in
     this  Clause  8.3  send to all the  Creditor  Parties  and the  Borrower  a
     schedule specifying the aggregate  repayments of the consolidated  Advances
     on each  subsequent  Repayment Date and this schedule  shall  thereafter be
     substituted for, and replace,  the repayment schedule set out in Schedule 4
     which shall cease to have effect.

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

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

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

(a)  the Borrower  shall make a  simultaneous  prepayment of a proportion of the
     Senior Loan equal to the proportion of the Loan being prepaid  hereunder at
     that time;

(b)  any partial  prepayment to be applied  against the Loan and the Senior Loan
     shall be $5,000,000 in aggregate or a higher multiple thereof;

(c)  the Agent has received  from the  Borrower at least 15 days' prior  written
     notice  specifying  the  amount  to be  prepaid  and the date on which  the
     prepayment  is to be made (such  date shall be the last day of an  Interest
     Period); and

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

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

8.8  Notification  of notice of  prepayment.  The Agent shall notify the Lenders
     promptly upon receiving a prepayment  notice,  and shall provide any Lender
     which so requests  with a copy of any  document  delivered  by the Borrower
     under Clause 8.6(d).

8.9  Mandatory prepayment.  The Borrower shall be obliged to prepay the Relevant
     Amount of the Loan:

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

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

     In this Clause 8.9,  "Relevant  Amount" means 115 percent of the Relevant
     Proportion  of the Loan and  "Relevant  Proportion"  means the amount which
     results  from  multiplying  (a) the Loan with (b) the  Market  Value of the
     relevant  Ship  immediately  prior to its sale or Total Loss divided by the
     aggregate Market Values immediately prior to such sale or Total Loss of all
     of the Ships as are then subject to a Mortgage.

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

8.11 Application of partial  prepayment.  Any sum received by the Agent pursuant
     to Clauses 8.4 and 8.9 shall be applied in prepayment of the Term Loan, the
     Credit  Facility  and  the  Senior  Loan  pro  rata  by  reference  to  the
     outstanding  amount of each of the Term Loan,  the Credit  Facility and the
     Senior Loan as at the date of such prepayment, and the amount to be applied
     in  prepayment  of each of the Loan and the Senior Loan shall be applied to
     proportionately  reduce the  Balloon  Instalment  and the then  outstanding
     Repayment Instalments.

8.12 Reborrowing. No amount prepaid in respect of the Loan may be reborrowed.

8.13 Unwinding  of  Designated  Transactions.  On or prior to any  repayment  or
     prepayment  of the Loan under this Clause 8 or any other  provision of this
     Agreement,  the Borrower shall wholly or partially reverse,  offset, unwind
     or  otherwise   terminate  one  or  more  of  the   continuing   Designated
     Transactions to the extent necessary to ensure that the notional  principal
     amount of the continuing Designated  Transactions thereafter remaining does
     not  and  will  not  in the  future  (taking  into  account  the  scheduled
     amortisation)  exceed the amount of the Loan as reducing  from time to time
     thereafter pursuant to Clause 8.1.

8.14 Prepayment of Swap Benefit.  If a Designated  Transaction  is terminated in
     circumstances  where a Swap Bank  would be  obliged to pay an amount to the
     Borrower under the Master Agreement to which that Swap Bank is a party, the
     Borrower  hereby agrees that such payment shall be applied in prepayment of
     the Loan and  authorises  the Swap Bank to pay such amount to the Agent for
     such purpose.

9    CONDITIONS PRECEDENT

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

(a)  that, on or before the Drawdown Date relative to the  Refinancing  Advance,
     the Agent receives the documents  described in Part A of Schedule 5 in form
     and substance satisfactory to the Agent and its lawyers;

(b)  that,  on or before the  Drawdown  Date  relative  to the  Identified  Ship
     Advance, the Agent receives the documents described in Part B of Schedule 5
     in form and substance satisfactory to the Agent and its lawyers;

(c)  that, on or before the Drawdown Date relative to each  Additional  Advance,
     the Agent receives the documents  described in Part C of Schedule 5 in form
     and substance satisfactory to the Agent and its lawyers;

(d)  that,  on or before the  service of the first  Drawdown  Notice,  the Agent
     receives  all  accrued  commitment  fee and all other fees  referred  to in
     Clause 20.1 which are payable at that time and has received  payment of the
     expenses referred to in Clause 20.2;

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

     (i)  no Event of Default or Potential  Event of Default has occurred and is
          continuing or would result from the borrowing of the Loan;

     (ii) the  representations  and  warranties  in  Clause  10 and those of the
          Borrower or any Security  Party which are set out in the other Finance
          Documents  would be true and not  misleading  if  repeated  on each of
          those dates with reference to the circumstances then existing; and

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

(f)  that at each Drawdown  Date, the Borrower will draw down the advance of the
     Senior  Loan which shall be used to finance or  refinance  the same Ship or
     Ships  which are to be financed or  refinanced  by the Advance  being drawn
     down on the relevant Drawdown Date under this Agreement;

(g)  that,  if the  ratio  set  out in  Clause  15.1  were  applied  immediately
     following the making of the Advance,  the Borrower  would not be obliged to
     provide additional security or prepay part of the Loan under that Clause;

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

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

10   REPRESENTATIONS AND WARRANTIES

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

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

10.3 Share capital and ownership.  The Borrower has an authorised  share capital
     divided into  75,000,000  registered  shares of $0.01 each,  30,350,000  of
     which shares have been issued each fully paid.

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

(a)  to execute the Finance Documents to which it is a Party; and

(b)  to borrow under this Agreement, to enter into Designated Transactions under
     each Master Agreement and to make all the payments  contemplated by, and to
     comply with, those Finance Documents to which the Borrower is a party.

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

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

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

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

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

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

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

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

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

(a)  any law or regulation; or

(b)  the constitutional documents of the Borrower; or

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

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

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

10.11 Information.  All information  which has been provided in writing by or on
     behalf of the  Borrower  or any  Security  Party to any  Creditor  Party in
     connection with any Finance  Document  satisfied the requirements of Clause
     11.5;  all  audited  and  unaudited  accounts  which have been so  provided
     satisfied the  requirements  of Clause 11.7; and there has been no material
     adverse  change  in the  financial  position  or  state of  affairs  of the
     Borrower from that disclosed in the latest of those accounts.

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

10.13 No rebates etc. There is no agreement or understanding to allow or pay any
     rebate,  premium,   commission,   discount  or  other  benefit  or  payment
     (howsoever  described) to Seaventure,  the Hille Oldendorff  Charterer or a
     third party in connection  with the purchase by Seaventure and the bareboat
     chartering of the Identified  Ship,  other than as disclosed to the Lenders
     in writing on or prior to the date of this Agreement.

10.14 Compliance with certain undertakings.  At the date of this Agreement,  the
     Borrower is in compliance with Clauses 11.2, 11.4, 11.9 and 11.13.

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

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

10.17 No money laundering. Without prejudice to the generality of Clause 2.3, in
     relation to the borrowing by the Borrower of the Loan, the  performance and
     discharge of its obligations and liabilities  under the Finance  Documents,
     and the transactions and other arrangements effected or contemplated by the
     Finance  Documents to which the Borrower is a party, the Borrower  confirms
     that it is  acting  for its own  account  and that the  foregoing  will not
     involve or lead to contravention of any law, official  requirement or other
     regulatory  measure or procedure  implemented to combat "money  laundering"
     (as defined in Article 1 of the  Directive  (91/308/EEC)  of the Council of
     the European Communities).

11   GENERAL UNDERTAKINGS

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

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

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

(b)  not create or permit to arise any Security  Interest  (except for Permitted
     Security Interests) over any other asset, present or future (including, but
     not  limited to the  Borrower's  rights  against a Swap Bank under a Master
     Agreement or a Senior Master Agreement or all or any part of the Borrower's
     interest  in any  amount  payable  to the  Borrower  by a Swap Bank under a
     Master Agreement or a Senior Master Agreement); and

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

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

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

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

11.4 Restriction  on  other  liabilities  or  obligations  to be  incurred.  The
     Borrower  will not incur,  and will  procure  that none of the Owners will,
     incur, any liability or obligation except liabilities and obligations:

(a)  under the Finance  Documents,  the Senior Loan  Agreement  and the Existing
     Loan Agreements to which each is a party;

(b)  under the Master  Agreements and the Senior Master  Agreements (but in such
     case, only in connection with Designated Transactions and Senior Designated
     Transactions); and

(c)  (in the case of each Owner)  incurred in the normal  course of its business
     of operating its Ship.

11.5 Information  provided to be accurate.  All financial and other  information
     which is  provided in writing by or on behalf of the  Borrower  under or in
     connection  with any Finance  Document will be true and not  misleading and
     will not omit any material fact or consideration.

11.6 Provision of financial statements. The Borrower will send to the Agent:

(a)  as soon as  possible,  but in no event later than 150 days after the end of
     each  Financial  Year of the Borrower  (commencing  with the Financial Year
     ended 31 December 2005), the audited consolidated accounts of the Group for
     that Financial Year;

(b)  as soon as  possible,  but in no event  later than 90 days after the end of
     each quarterly  period in each  Financial Year of the Borrower  (commencing
     with  the  financial  quarter  ending  on 31  March  2006),  the  unaudited
     consolidated   accounts  of  the  Group  for  that  financial  quarter  and
     additionally, in the case of each of the second, third and fourth financial
     quarters, the unaudited consolidated accounts of the Group for the period 1
     January up to the end of the relevant  financial  quarter certified in each
     case  as to  their  correctness  by  the  chief  financial  officer  of the
     Borrower; and

(c)  together with the quarterly  financial  statements referred to in paragraph
     (b) above for each of the  second  and fourth  financial  quarters  in each
     Financial  Year of the Borrower,  two  valuations of each Fleet Vessel each
     prepared by an Approved  Broker (at the cost of the Borrower) in accordance
     with  Clause  15.4,  which  valuations  shall  be used in  determining  the
     security  cover  ratio in  accordance  with  Clause  15.1,  the  Margin  in
     accordance  with Clause 5.15 and (subject to the final  paragraph of Clause
     12.5) the financial covenants referred to in Clause 12.4.

11.7 Form  of  financial  statements.   All  accounts  (audited  and  unaudited)
     delivered under Clause 11.6 will:

(a)  be prepared in accordance with all applicable laws and GAAP;

(b)  give a true and fair view of the state of  affairs of the Group at the date
     of those  accounts and of its profit for the period to which those accounts
     relate; and

(c)  fully disclose or provide for all significant liabilities of the Group.

11.8 Shareholder and creditor notices.  The Borrower will send the Agent, at the
     same time as they are despatched,  copies of all  communications  which are
     despatched to all of the Borrower's  shareholders or creditors or any class
     of them.

11.9 Consents. The Borrower will maintain in force and promptly obtain or renew,
     and will  promptly  send  certified  copies to the Agent of,  all  consents
     required:

(a)  for the Borrower to perform its obligations under any Finance Document;

(b)  for the validity or enforceability of any Finance Document;

(c)  for each Owner to continue to own and operate the Ship owned by it,

     and the Borrower will comply (or procure  compliance) with the terms of all
     such consents.

11.10 Maintenance of Security Interests. The Borrower will:

(a)  at its own cost, do all that it  reasonably  can to ensure that any Finance
     Document  validly creates the obligations and the Security  Interests which
     it purports to create; and

(b)  without  limiting the  generality of paragraph (a) above,  at its own cost,
     promptly  register,  file,  record or enrol any Finance  Document  with any
     court  or  authority  in  all  Pertinent  Jurisdictions,   pay  any  stamp,
     registration  or similar tax in all Pertinent  Jurisdictions  in respect of
     any Finance Document,  give any notice or take any other step which, in the
     opinion of the Majority  Lenders,  is or has become  necessary or desirable
     for any Finance Document to be valid, enforceable or admissible in evidence
     or to ensure or protect the  priority  of any  Security  Interest  which it
     creates.

11.11 Notification  of  litigation.  The  Borrower  will  provide the Agent with
     details of any legal or administrative  action involving the Borrower,  any
     Security  Party,  the  Approved  Manager,  any Ship or the  Earnings or the
     Insurances  of any Ship as soon as such action is  instituted or it becomes
     apparent to the Borrower that it is likely to be  instituted,  unless it is
     clear that the legal or administrative action cannot be considered material
     in the context of any Finance Document.

11.12 No amendment to Master Agreements; Transactions. The Borrower will not:

(a)  agree to any  amendment  or  supplement  to,  or waive or fail to  enforce,
     either Master Agreement or any of its provisions; or

(b)  enter into any Transaction pursuant to a Master Agreement except Designated
     Transactions.

11.13 Principal  place of  business.  The  Borrower  will  maintain its place of
     business,  and keep its  corporate  documents  and records,  at the address
     stated  in Clause  28.2(a);  and the  Borrower  will not  establish,  or do
     anything  as a result  of which it  would  be  deemed  to have,  a place of
     business in any country other than the Marshall Islands, Malta and Greece.

11.14 Confirmation  of no default.  The Borrower  will,  within 2 Business  Days
     after  service  by the  Agent of a  written  request,  serve on the Agent a
     notice which is signed by 2 directors of the Borrower and which:

(a)  states that no Event of Default or Potential Event of Default has occurred;
     or

(b)  states that no Event of Default or Potential Event of Default has occurred,
     except for a specified event or matter,  of which all material  details are
     given.

     The Agent may serve  requests under this Clause 11.14 from time to time but
     only  if  asked  to do so  by a  Lender  or  Lenders  having  Contributions
     exceeding  10 per  cent.  of the  Loan or (if no  Advance  has  been  made)
     Commitments exceeding 10 per cent of the Total Commitments; and this Clause
     11.14 does not affect the Borrower's obligations under Clause 11.15.

11.15 Notification of default. The Borrower will notify the Agent as soon as the
     Borrower becomes aware of:

(a)  the occurrence of an Event of Default or a Potential Event of Default; or

(b)  any matter which indicates that an Event of Default or a Potential Event of
     Default may have occurred;

     and will thereafter keep the Agent fully up-to-date with all developments.

11.16 Provision  of  further   information.   The  Borrower  will,  as  soon  as
     practicable  after  receiving  the  request,  provide  the  Agent  with any
     additional financial or other information relating:

(a)  to the Borrower,  any Owner,  Wealth, any Ship, the Approved Manager or any
     other Security Party, the Insurances or the Earnings; or

(b)  to any other matter relevant to, or to any provision of, a Finance Document

     which may be requested by the Agent,  the Security Trustee or any Lender at
     any time.

11.17 Provision of copies and translation of documents. The Borrower will supply
     the Agent with a sufficient  number of copies of the documents  referred to
     above to  provide  1 copy  for each  Creditor  Party;  and if the  Agent so
     requires in respect of any of those documents,  the Borrower will provide a
     certified  English  translation  prepared by a  translator  approved by the
     Agent.

11.18 Hedging of interest rate risks. The Borrower shall deliver to the Agent by
     no later than 30 April 2006 the duly  signed  Hedge  Strategy  Letter (in a
     form and on terms acceptable to the Agent which letter shall be prepared in
     consultation  with, and with the assistance of, the Agent),  and shall from
     time to time, enter into such Designated  Transactions  with a Swap Bank in
     order to  implement  the hedging  strategy  outlined in the Hedge  Strategy
     Letter  whereby for a period of at least 5 years from the Drawdown  Date of
     the  relevant  Advance it will hedge all or the major part of the  interest
     rate risk under this  Agreement and the Senior Loan  Agreement  (but in any
     event not less than 60 per  cent.  of the  interest  rate risk  under  this
     Agreement and the Senior Loan Agreement  outstanding at any time during the
     aforesaid 5-year period).

11.19 Ownership.  The Borrower  shall ensure that (a) it shall remain the direct
     or indirect  owner of the whole of the issued  share  capital of each Owner
     and  Wealth  and (b) there  shall be no change in the legal and  beneficial
     ownership of the shares in each Owner or Wealth.

11.20 Debt Service  Reserve  Account.  The  Borrower  shall ensure that there is
     standing to the credit of the Debt Service  Reserve Account at all times an
     amount of at least  $5,000,000 and any balance on the Debt Service  Reserve
     Account may only be used to discharge the  Borrower's  payment  liabilities
     under  this  Agreement,  the  Senior  Loan  Agreement,  the  Senior  Master
     Agreements and the Master Agreements.

11.21 General and administrative costs. The Borrow shall ensure that the payment
     of all the general and administrative  costs of the Borrower and the Owners
     in connection  with the  ownership  and operation of the Ships  (including,
     without  limitation,  the payment of the  management  fees  pursuant to the
     Management   Agreements)  shall  be  fully   subordinated  to  the  payment
     obligations  of the Borrower and the Owners  under this  Agreement  and the
     other Finance Documents throughout the Security Period.

11.22 Hille  Oldendorff  Seller's  Credit.  The  Borrower  shall ensure that any
     payment to be made by  Seaventure  to Goodwill  under the Hille  Oldendorff
     Seller's Credit Agreement may only be made (a) in accordance with the terms
     of that agreement and (b) if at the relevant time there is available to the
     Borrower and all the other members of the Group an aggregate  amount of not
     less than $25,000,000 (including,  without limitation,  any amount standing
     to the credit of the Debt Service  Reserve  Account) in immediately  freely
     available and unencumbered bank or cash balances.

11.23 Know your customer. The Borrower will provide to (or procure that there is
     sent to) the Agent such  documents and evidence as any Creditor Party shall
     require  in  relation  to the  Borrower  or any  Security  Party,  based on
     applicable  laws and  regulations  and each  Creditor  Party's own internal
     guidelines  relating to the  verification  of the identity and knowledge of
     its customers.

12   CORPORATE UNDERTAKINGS

12.1 General.  The Borrower also  undertakes  with each Creditor Party to comply
     with the  following  provisions  of this Clause 12 at all times  during the
     Security Period except as the Agent may, with the authority of the Majority
     Lenders, otherwise permit.

12.2 Maintenance  of status.  The Borrower will maintain its separate  corporate
     existence  and  remain  in good  standing  under  the laws of the  Marshall
     Islands.

12.3 Negative undertakings. The Borrower will not:

(a)  change the nature of its business; or

(b)  declare or pay any  dividend  or effect any other form of  distribution  in
     excess of:

     (i)  in  the  Financial  Year  ending  31  December  2006,  $18,000,000  in
          aggregate; and

     (ii) in all subsequent  Financial Years, 50 percent of its Net Income for
          the relevant Financial Year;

(c)  effect any form of redemption, purchase or return of share capital; or

(d)  provide any form of credit or financial assistance to:

     (i)  a person who is directly or indirectly  interested  in the  Borrower's
          share or loan capital; or

     (ii) any company in or with which such a person is  directly or  indirectly
          interested or connected;

     or enter into any transaction with or involving such a person or company on
     terms which are, in any respect, less favourable to the Borrower than those
     which it could obtain in a bargain made at arms' length  Provided that this
     shall not prevent or restrict the Borrower from  on-lending the Loan to the
     Owners or  granting  credit or  financial  assistance  to its  wholly-owned
     direct or indirect subsidiaries;

(e)  issue,  allot or grant any person a right to any  shares in its  capital or
     repurchase or reduce its issued share capital;

(f)  acquire any shares or other  securities  other than US or UK Treasury bills
     and  certificates  of deposit  issued by major  North  American or European
     banks, or enter into any transaction in a derivative  other than Designated
     Transactions;

(g)  enter into any form of  amalgamation,  merger or  de-merger  or any form of
     reconstruction or reorganisation.

12.4 Financial Covenants. The Borrower shall ensure that:

(a)  the Market Adjusted Equity Ratio shall not be less than:

     (i)  in each of the Financial  Years ending  respectively  31 December 2006
          and 31 December 2007, 0.2:1;

     (ii) in the Financial Year ending 31 December 2008, 0.25:1; and

     (iii) in each subsequent Financial Year, 0.3:1;

(b)  the Interest Coverage Ratio shall not be less than 3:1;

(c)  the Market Value Adjusted Net Worth of the Group shall not be less than:

     (i)  in each of the Financial  Years ending  respectively  31 December 2006
          and 31 December 2007, $125,000,000;

     (ii) in the Financial Year ending 31 December 2008, $180,000,000; and

     (iii) in each subsequent Financial Year, $225,000,000; and

(d)  at all times there is available  to the Borrower and all the other  members
     of the Group an aggregate amount of not less than  $20,000,000  (including,
     without  limitation,  any amount standing to the credit of the Debt Service
     Reserve Account) in immediately  freely available and unencumbered  bank or
     cash balances, of which amount not less than $15,000,000 in aggregate shall
     be held in the Earnings Accounts and the Wealth Account.

12.5 Compliance Check. Compliance with the undertakings contained in Clause 12.4
     shall be determined in each Financial Year:

(a)  at the time the Agent  receives  the audited  consolidated  accounts of the
     Group and the unaudited  consolidated  accounts of the Group for the second
     financial  quarter of the Group in each Financial Year (pursuant to Clauses
     11.6(a)  and  11.6(b)   respectively),   by  reference  to  the   unaudited
     consolidated  accounts  in the case of the  first  6-month  period  in each
     Financial Year of the Borrower and the audited consolidated accounts in the
     case of the second 6-month period in each Financial Year of the Borrower;

(b)  at any other time as the Agent may reasonably  request by reference to such
     evidence  as the  Lenders  may  require  to  determine  and  calculate  the
     financial covenants referred to in Clause 12.3.

     At the same time as it delivers the  consolidated  accounts  referred to in
     this Clause 12.5,  the Borrower shall deliver to the Agent a certificate in
     the form set out in Schedule 8 demonstrating its compliance (or not, as the
     case may be)  with the  provisions  of  Clause  12.4  signed  by the  chief
     financial officer of the Borrower.

     The Agent (acting with the  authorisation of the Majority Lenders) reserves
     the  right,  when  determining  the  compliance  of the  Borrower  with the
     undertakings   contained  in  Clause  12.4  on  the  basis  of  the  annual
     consolidated  accounts of the Group for each Financial Year, not to rely on
     the valuations of the Fleet Vessels submitted by the Borrower together with
     the unaudited  consolidated  accounts of the Group for the fourth financial
     quarter of the relevant  Financial  Year in accordance  with Clause 11.6(c)
     and instead to obtain (at the cost of the Borrower) two further  valuations
     of each Fleet  Vessel,  each  prepared by an Approved  Broker in accordance
     with Clause 15.4.

12.6 Change in accounting  expressions and policies.  If, by reason of change in
     format  or GAAP or other  relevant  accounting  policies,  the  expressions
     appearing in any accounts and  financial  statements  referred to in Clause
     11.6 alter from those in the  accounts  and  financial  statements  for the
     Borrower  for the year ended 31 December  2005,  the  relevant  definitions
     contained in Clause 1.1 and the  provisions  of Clause 12.4 shall be deemed
     modified in such manner as the Agent,  acting with the authorisation of the
     Majority  Lenders,   shall  require  to  take  account  of  such  different
     expressions  but  otherwise to maintain in all  respects  the  substance of
     those provisions.

12.7 Subordination  of rights of Borrower.  All rights which the Borrower at any
     time has (whether in respect of the Loan or any other transaction)  against
     any Owner or its assets  shall be fully  subordinated  to the rights of the
     Creditor  Parties  under the  Finance  Documents;  and in  particular,  the
     Borrower shall not during the Security Period:

(a)  claim,  or in a bankruptcy of any Owner or prove for any amount  payable to
     the  Borrower  by an Owner,  whether  in  respect  of the Loan or any other
     transaction;

(b)  take or enforce any Security Interest for any such amount; or

(c)  claim to set-off any such amount against any amount payable by the Borrower
     to any Owner.

12.8 Free  Syndication  market.  The Borrower (in order to ensure an orderly and
     effective  syndication  of the Loan)  shall not,  and shall  ensure that no
     Owner, no member of the Group and no affiliate of the Borrower or any other
     member of the Group shall, until the finalisation of the syndication of the
     Loan (as determined by the Joint Underwriters):

(a)  syndicate or issue or attempt to syndicate or issue; or

(b)  announce or authorise the  announcement  of the syndication or issuance of;
     or

(c)  engage in discussions concerning the syndication or issuance of,

     any Financial  Indebtedness with any banks or financial institutions in the
     commercial  banking  market  Provided  that  this  shall not  restrict  the
     Borrower from issuing  commercial  instruments or making any further equity
     offerings.

13   INSURANCE

13.1 General.  The Borrower also  undertakes with each Creditor Party to procure
     that each Owner will comply with the following provisions of this Clause 13
     at all times during the Security  Period  except as the Agent may, with the
     authority of the Majority Lenders, otherwise permit.

13.2 Maintenance of obligatory insurances.  The Borrower shall procure that each
     Owner  keep the Ship  owned by it  insured  at the  expense  of that  Owner
     against:

(a)  fire and usual  marine  risks  (including  hull and  machinery  and  excess
     risks);

(b)  war risks (including protection and indemnity war risks);

(c)  in the case of protection  and  indemnity war risks,  in an amount equal to
     the amount for which the war risks under the hull  policies  are  effected;
     and

(d)  any other risks against which the Majority Lenders consider,  having regard
     to practices and other  circumstances  prevailing at the relevant  time, it
     would in the opinion of the Majority Lenders be reasonable for the relevant
     Owner to insure and which are  specified by the Security  Trustee by notice
     to the relevant Owner.

13.3 Terms of obligatory insurances.  The Borrower shall procure that each Owner
     shall effect such insurances:

(a)  in Dollars;

(b)  in the case of fire and usual marine  risks and war risks,  in an amount on
     an agreed  value  basis at least the  greater of (i) an amount,  which when
     aggregated  with the insured  value of the other Ships at the relevant time
     subject to a Mortgage,  is equal to 120 percent  of the  aggregate of the
     Loan and the Senior Loan and (ii) the Market Value of the Ship owned by it;
     and

(c)  in the case of oil pollution liability risks, for an aggregate amount equal
     to the  highest  level of cover  from time to time  available  under  basic
     protection  and  indemnity  club  entry  (with the  international  group of
     protection  and indemnity  clubs) and the  international  marine  insurance
     market (currently $1,000,000,000);

(d)  in relation to protection and indemnity risks, in respect of the full value
     and tonnage of the Ship owned by it;

(e)  on approved terms; and

(f)  through  approved  brokers and with  approved  insurance  companies  and/or
     underwriters  or,  in the case of war risks and  protection  and  indemnity
     risks,   in  approved  war  risks  and  protection   and  indemnity   risks
     associations.

13.4 Further  protections for the Creditor Parties. In addition to the terms set
     out in  Clause  13.3,  the  Borrower  shall  procure  that  the  obligatory
     insurances shall:

(a)  (except in relation to risks  referred to in Clauses  13.2(c) and (d)) name
     (or be amended to name) the Security  Trustee as  additional  named assured
     for its rights and interests,  warranted no  operational  interest and with
     full waiver of rights of  subrogation  against the  Security  Trustee,  but
     without the Security  Trustee  thereby  being liable to pay (but having the
     right to pay)  premiums,  calls or other  assessments  in  respect  of such
     insurance;

(b)  name the  Security  Trustee  as sole loss payee  with such  directions  for
     payment as the Security Trustee may specify;

(c)  provide  that all  payments  by or on  behalf  of the  insurers  under  the
     obligatory  insurances  to the  Security  Trustee  shall  be  made  without
     set-off, counterclaim or deductions or condition whatsoever;

(d)  provide that the insurers shall waive,  to the fullest extent  permitted by
     English law, their  entitlement  (if any) (whether by statute,  common law,
     equity,  or  otherwise)  to be subrogated to the rights and remedies of the
     Security  Trustee in respect of any rights or  interests  (secured  or not)
     held by or  available  to the  Security  Trustee in respect of the  Secured
     Liabilities, until the Secured Liabilities shall have been fully repaid and
     discharged,  except that the insurers  shall not be restricted by the terms
     of this paragraph (d) from making  personal  claims against  persons (other
     than the relevant Owner or any Creditor Party) in  circumstances  where the
     insurers have fully discharged their  liabilities and obligations under the
     relevant obligatory insurances;

(e)  provide that such obligatory  insurances  shall be primary without right of
     contribution  from other  insurances  which may be carried by the  Security
     Trustee;

(f)  provide  that the  Security  Trustee may make proof of loss if the relevant
     Owner fails to do so; and

(g)  provide  that  if  any  obligatory  insurance  is  cancelled,   or  if  any
     substantial  change is made in the  coverage  which  adversely  affects the
     interest of the Security Trustee, or if any obligatory insurance is allowed
     to lapse for  non-payment of premium,  such  cancellation,  charge or lapse
     shall not be effective with respect to the Security Trustee for 30 days (or
     7 days in the case of war risks) after  receipt by the Security  Trustee of
     prior  written  notice from the  insurers of such  cancellation,  change or
     lapse.

13.5 Renewal of  obligatory  insurances.  The Borrower  shall  procure that each
     Owner shall:

(a)  at least 21 days before the expiry of any obligatory insurance:

     (i)  notify the Security Trustee of the brokers (or other insurers) and any
          protection and indemnity or war risks association through or with whom
          that Owner  proposes to renew that insurance and of the proposed terms
          of renewal; and

     (ii) in case of any  substantial  change in  insurance  cover,  obtain  the
          Security  Trustee's  approval to the matters  referred to in paragraph
          (i) above;

(b)  at least 14 days before the expiry of any obligatory  insurance,  renew the
     insurance in accordance with the Security  Trustee's  approval  pursuant to
     paragraph (a); and

(c)  procure that the approved  brokers  and/or the war risks and protection and
     indemnity associations with which such a renewal is effected shall promptly
     after the renewal  notify the Security  Trustee in writing of the terms and
     conditions of the renewal.

13.6 Copies of policies; letters of undertaking. The Borrower shall procure that
     each Owner shall  ensure that all  approved  brokers  provide the  Security
     Trustee with copies of all policies  relating to the obligatory  insurances
     which they effect or renew and of a letter or letters of  undertaking  in a
     form  required by the Majority  Lenders and including  undertakings  by the
     approved brokers that:

(a)  they will have  endorsed on each  policy,  immediately  upon issue,  a loss
     payable clause and a notice of assignment  complying with the provisions of
     Clause 13.4;

(b)  they will hold such policies,  and the benefit of such  insurances,  to the
     order of the  Security  Trustee in  accordance  with the said loss  payable
     clause;

(c)  they will advise the Security Trustee immediately of any material change to
     the terms of the obligatory insurances;

(d)  they will  notify the  Security  Trustee,  not less than 14 days before the
     expiry of the  obligatory  insurances,  in the  event of their  not  having
     received notice of renewal  instructions from that Owner or its agents and,
     in the event of their receiving  instructions to renew,  they will promptly
     notify the Security Trustee of the terms of the instructions; and

(e)  they will not set off  against  any sum  recoverable  in respect of a claim
     relating  to the Ship owned by the  relevant  Owner  under such  obligatory
     insurances  any  premiums or other  amounts due to them or any other person
     whether in respect  of that Ship or  otherwise,  they waive any lien on the
     policies or, any sums received under them, which they might have in respect
     of such premiums or other amounts, and they will not cancel such obligatory
     insurances by reason of non-payment of such premiums or other amounts,  and
     will  arrange  for a  separate  policy to be issued in  respect of the Ship
     forthwith upon being so requested by the Security Trustee.

13.7 Copies of certificates of entry. The Borrower shall procure that each Owner
     shall  ensure  that  any   protection   and  indemnity   and/or  war  risks
     associations in which the Ship owned by that Owner is entered  provides the
     Security Trustee with:

(a)  a certified copy of the certificate of entry for that Ship;

(b)  a letter or letters of  undertaking  in such form as may be required by the
     Majority Lenders; and

(c)  where required to be issued under the terms of insurance/indemnity provided
     by the Borrower's protection and indemnity association, a certified copy of
     each  United  States of  America  voyage  quarterly  declaration  (or other
     similar  document or documents)  made by that Owner in accordance  with the
     requirements of such protection and indemnity association; and

(d)  a  certified  copy of each  certificate  of  financial  responsibility  for
     pollution by oil or other Environmentally  Sensitive Material issued by the
     relevant certifying authority.

13.8 Deposit of original  policies.  The Borrower  shall procure that each Owner
     shall  ensure that all  policies  relating  to  obligatory  insurances  are
     deposited  with the  approved  brokers  through  which the  insurances  are
     effected or renewed.

13.9 Payment of  premiums.  The  Borrower  shall  procure  that each Owner shall
     punctually  pay all  premiums  or other  sums  payable  in  respect  of the
     obligatory insurances and produce all relevant receipts when so required by
     the Security Trustee.

13.10 Guarantees.  The Borrower  shall procure that each Owner shall ensure that
     any  guarantees  required  by a  protection  and  indemnity  or  war  risks
     association are promptly issued and remain in full force and effect.

13.11 Restrictions  on  employment.  The  Borrower  shall  procure that no Owner
     employ the Ship owned by it, nor  permit her to be  employed,  outside  the
     cover provided by any obligatory insurances.

13.12 Compliance  with terms of  insurances.  The Borrower shall procure that no
     Owner  shall do or omit to do (or  permit to be done or not to be done) any
     act or thing which would or might render any obligatory  insurance invalid,
     void,  voidable  or  unenforceable  or render  any sum  payable  thereunder
     repayable in whole or in part; and, in particular:

(a)  each Owner shall take all necessary action and comply with all requirements
     which may from time to time be applicable to the obligatory insurances, and
     (without limiting the obligation  contained in Clause 13.7(c) above) ensure
     that the  obligatory  insurances  are not made subject to any exclusions or
     qualifications  to which  the  Security  Trustee  has not  given  its prior
     approval;

(b)  no  Owner  shall  make  any  changes  relating  to  the  classification  or
     classification  society  or  manager  or  operator  of the Ship owned by it
     unless approved by the underwriters of the obligatory insurances;

(c)  each Owner shall make all quarterly or other voyage  declarations which may
     be required by the protection and indemnity risks  association in which the
     Ship  owned by it is entered to  maintain  cover for  trading to the United
     States of America  and  Exclusive  Economic  Zone (as defined in the United
     States Oil Pollution Act 1990 or any other applicable legislation); and

(d)  no Owner  shall  employ the Ship owned by it, nor allow it to be  employed,
     otherwise  than  in  conformity  with  the  terms  and  conditions  of  the
     obligatory insurances,  without first obtaining the consent of the insurers
     and  complying  with any  requirements  (as to extra  premium or otherwise)
     which the insurers specify.

13.13 Alteration  to terms of  insurances.  The Borrower  shall  procure that no
     Owner  shall  either  make or agree to any  alteration  to the terms of any
     obligatory  insurance  or  waive  any  right  relating  to  any  obligatory
     insurance without the prior written consent of the Security Trustee.

13.14 Settlement  of claims.  The  Borrower  shall  procure  that no Owner shall
     settle,  compromise or abandon any claim under any obligatory insurance for
     Total Loss or for a Major Casualty,  and shall do all things  necessary and
     provide all  documents,  evidence  and  information  to enable the Security
     Trustee to collect or recover any moneys  which at any time become  payable
     in respect of the obligatory insurances.

13.15 Provision of copies of  communications.  The Borrower  shall  procure that
     each Owner shall  provide the  Security  Trustee,  at the time of each such
     communication, copies of all written communications between that Owner and:

(a)  the approved brokers; and

(b)  the approved protection and indemnity and/or war risks associations; and

(c)  the approved insurance companies and/or underwriters, which relate directly
     or indirectly to:

     (i)  that  Owner's  obligations  relating  to  the  obligatory   insurances
          including, without limitation, all requisite declarations and payments
          of additional premiums or calls; and

     (ii) any credit arrangements made between that Owner and any of the persons
          referred to in paragraphs (a) or (b) above  relating  wholly or partly
          to the effecting or maintenance of the obligatory insurances.

13.16 Provision of  information.  In addition,  the Borrower  shall procure that
     each Owner  shall  promptly  provide the  Security  Trustee (or any persons
     which it may designate) with any information which the Security Trustee (or
     any such designated person) requests for the purpose of:

(a)  obtaining  or preparing  any report from an  independent  marine  insurance
     broker as to the adequacy of the obligatory insurances effected or proposed
     to be effected; and/or

(b)  effecting,  maintaining or renewing any such  insurances as are referred to
     in Clause 13.17 below or dealing with or considering  any matters  relating
     to any such insurances

     and the  Borrower  shall,  forthwith  upon demand,  indemnify  the Security
     Trustee in respect of all fees and other  expenses  incurred  by or for the
     account of the Security  Trustee in  connection  with any such report as is
     referred to in paragraph (a) above.

13.17 Mortgagee's interest and additional peril insurances. The Security Trustee
     shall be entitled  from time to time to effect,  maintain  and renew all or
     any of the following  insurances in such  amounts,  on such terms,  through
     such insurers and generally in such manner as the Majority Lenders may from
     time to time consider appropriate:

(a)  a mortgagee's interest marine insurance in an amount equal to 120 percent
     of the  aggregate  of the  Loan  and the  Senior  Loan,  providing  for the
     indemnification  of  the  Security  Trustee  for  any  losses  under  or in
     connection  with any Finance  Document which directly or indirectly  result
     from  loss of or damage  to any Ship or a  liability  of any Ship or of any
     Owner, being a loss or damage which is prima facie covered by an obligatory
     insurance  but in  respect  of which  there is a  non-payment  (or  reduced
     payment) by the underwriters by reason of, or on the basis of an allegation
     concerning:

     (i)  any  act or  omission  on the  part  of any  Owner,  of any  operator,
          charterer,  manager  or  sub-manager  of any  Ship or of any  officer,
          employee or agent of any Owner or of any such  person,  including  any
          breach of warranty or condition or any non-disclosure relating to such
          obligatory insurance;

     (ii) any act or omission,  whether deliberate,  negligent or accidental, or
          any knowledge or privity of any Owner, any other person referred to in
          paragraph (i) above, or of any officer, employee or agent of any Owner
          or of such a person,  including  the  casting  away or damaging of any
          Ship and/or any Ship being unseaworthy; and/or

     (iii) any other matter capable of being insured against under a mortgagee's
          interest  marine  insurance  policy  whether  or  not  similar  to the
          foregoing;

(b)  a mortgagee's  interest additional perils policy in an amount not less than
     110 percent of the  aggregate of the Loan and the Senior Loan,  providing
     for the  indemnification  of the  Security  Trustee  against,  among  other
     things,  any possible  losses or other  consequences  of any  Environmental
     Claim, including the risk of expropriation, arrest or any form of detention
     of any Ship, the  imposition of any Security  Interest over any Ship and/or
     any other  matter  capable of being  insured  against  under a  mortgagee's
     interest additional perils policy whether or not similar to the foregoing

     and the Borrower shall upon demand fully indemnify the Security  Trustee in
     respect of all premiums and other expenses which are incurred in connection
     with  or  with a view  to  effecting,  maintaining  or  renewing  any  such
     insurance or dealing with, or  considering,  any matter  arising out of any
     such insurance.

13.18 Review of insurance  requirements.  The Majority Lenders shall be entitled
     to review the  requirements of this Clause 13 from time to time in order to
     take  account  of any  changes  in  circumstances  after  the  date of this
     Agreement  which are, in the opinion of the Majority  Lenders,  significant
     and  capable  of  affecting  the  Owners or the  Ships and their  insurance
     (including,  without limitation, changes in the availability or the cost of
     insurance  coverage or the risks to which the Owners may be  subject),  and
     may appoint insurance consultants in relation to this review at the cost of
     the Borrower.

13.19 Modification of insurance requirements.  The Security Trustee shall notify
     the  Borrower  of any  proposed  modification  under  Clause  13.18  to the
     requirements  of  this  Clause  13  which  the  Majority  Lenders  consider
     appropriate in the  circumstances,  and such modification shall take effect
     on and  from the date it is  notified  in  writing  to the  Borrower  as an
     amendment to this Clause 13 and shall bind the Borrower accordingly.

13.20 Compliance with  mortgagee's  instructions.  The Security Trustee shall be
     entitled  (without  prejudice to or limitation of any other rights which it
     may have or acquire  under any  Finance  Document)  to require  any Ship to
     remain  at any safe  port or to  proceed  to and  remain  at any safe  port
     designated by the Security  Trustee until the Owner of that Ship implements
     any  amendments  to  the  terms  of  the  obligatory   insurances  and  any
     operational  changes  required as a result of a notice  served under Clause
     13.19.

14   SHIP COVENANTS

14.1 General.  The Borrower also  undertakes with each Creditor Party to procure
     that each Owner shall comply with the  following  provisions of this Clause
     14 at all times during the Security  Period  except as the Agent,  with the
     authority of the Majority Lenders, may otherwise permit.

14.2 Ship's name and  registration.  The Borrower  shall procure that each Owner
     shall keep the Ship owned by it registered  in its ownership  under Maltese
     Flag (in the case of each  Existing  Ship and the  Identified  Ship) and an
     Approved Flag (in the case of each Additional Ship);  shall not do or allow
     to be done  anything  as a  result  of  which  such  registration  might be
     cancelled or imperilled;  and shall not change the name or port of registry
     of any Ship.

14.3 Repair and classification. The Borrower shall procure that each Owner shall
     keep the Ship owned by it in a good and safe condition and state of repair:

(a)  consistent with first-class ship ownership and management practice;

(b)  so as to maintain the highest  class at Lloyd's  Register of Ships (or such
     other  first-class  classification  society  which  is  a  member  of  IACS
     acceptable to the Agent) free of overdue  recommendations and conditions of
     such classification society; and

(c)  so as to  comply  with all  laws  and  regulations  applicable  to  vessels
     registered  at ports in Malta  (in the case of each  Existing  Ship and the
     Identified  Ship) or the relevant  Approved Flag State (in the case of each
     Additional  Ship) or to vessels  trading to any  jurisdiction  to which the
     Ship may trade  from time to time,  including  but not  limited  to the ISM
     Code,  the  ISPS  Code,  the  ISM  Code  Documentation  and the  ISPS  Code
     Documentation.

14.4 Classification  society  undertaking.  The Borrower shall procure that each
     Owner shall instruct the classification  society referred to in Clause 14.3
     (and procure that the  classification  society undertakes with the Security
     Trustee):

(a)  to send to the Security  Trustee,  following  receipt of a written  request
     from the Security  Trustee,  certified  true copies of all  original  class
     records held by the classification society in relation to the Ship owned by
     that Owner;

(b)  to allow the Security Trustee (or its agents), at any time and from time to
     time, to inspect the original  class and related  records of that Owner and
     its Ship at the offices of the classification society and to take copies of
     them;

(c)  to notify the Security Trustee immediately in writing if the classification
     society:

     (i)  receives  notification  from the Owner or any  person  that the Ship's
          classification society is to be changed; or

     (ii) becomes  aware of any facts or  matters  which  may  result in or have
          resulted in a change, suspension, discontinuance, withdrawal or expiry
          of the Ship's  class  under the rules or terms and  conditions  of the
          Owner's or the Ship's membership of the classification society;

(d)  following receipt of a written request from the Security Trustee:

     (i)  to confirm that the Owner is not in default of any of its  contractual
          obligations or liabilities to the classification  society and, without
          limiting  the  foregoing,  that it has  paid in full all fees or other
          charges due and payable to the classification society; or

     (ii) if the Owner is in default of any of its  contractual  obligations  or
          liabilities to the classification  society, to specify to the Security
          Trustee  in  reasonable  detail  the facts and  circumstances  of such
          default,  the  consequences  thereof,  and any remedy period agreed or
          allowed by the classification society.

14.5 Modification.  The  Borrower  shall  procure  that no Owner  shall make any
     modification  or  repairs  to, or  replacement  of, the Ship owned by it or
     equipment  installed  on her  which  would or might  materially  alter  the
     structure,  type or performance  characteristics  of the Ship or materially
     reduce her value.

14.6 Removal of parts. The Borrower shall procure that no Owner shall remove any
     material  part of the Ship owned by it, or any item of equipment  installed
     on, the Ship unless the part or item so removed is forthwith  replaced by a
     suitable part or item which is in the same condition as or better condition
     than the part or item  removed,  is free from any Security  Interest or any
     right in favour of any person other than the  Security  Trustee and becomes
     on  installation  on the Ship the  property of the Owner and subject to the
     security  constituted  by the  Mortgage  and if  applicable,  the  Deed  of
     Covenant,  relative  to the  Ship  Provided  that  the  Owner  may  install
     equipment  owned by a third party if the equipment  can be removed  without
     any risk of damage to the Ship.

14.7 Surveys.  The Borrower  shall procure that each Owner shall submit the Ship
     owned by it  regularly  to all  periodical  or other  surveys  which may be
     required for  classification  purposes  and, if so required by the Majority
     Lenders, provide the Security Trustee (at the expense of the Borrower) with
     copies of all survey reports.

14.8 Inspection.  The  Borrower  shall  procure that each Owner shall permit the
     Security  Trustee (by surveyors or other  persons  appointed by it for that
     purpose) to board the Ship owned by it at all  reasonable  times to inspect
     her condition or to satisfy  themselves  about proposed or executed repairs
     and shall afford all proper  facilities for such inspections  Provided that
     so long as no  Event of  Default  has  occurred  and is  continuing  at the
     relevant time and a Ship is found to be in a satisfactory condition (in the
     opinion of the Security  Trustee) the Borrower  shall be obliged to pay the
     fees and expenses of one inspection of that Ship in any calendar year.

14.9 Prevention of and release from arrest. The Borrower shall procure that each
     Owner shall promptly discharge:

(a)  all liabilities which give or may give rise to maritime or possessory liens
     on or claims enforceable  against the Ship owned by it, her Earnings or her
     Insurances;

(b)  all taxes,  dues and other  amounts  charged  in  respect of the Ship,  her
     Earnings or her Insurances; and

(c)  all other outgoings  whatsoever in respect of the Ship, her Earnings or her
     Insurances

     and,  forthwith upon receiving  notice of the arrest of the Ship, or of her
     detention  in exercise  or  purported  exercise  of any lien or claim,  the
     relevant  Owner  shall  within 10  Business  Days  procure  her  release by
     providing bail or otherwise as the circumstances may require.

14.10 Compliance  with laws etc. The Borrower  shall procure that each Owner and
     each Approved Manager shall:

(a)  comply,  or  procure  compliance  with the ISM  Code,  the ISPS  Code,  all
     Environmental  Laws and all other laws or regulations  relating to the Ship
     owned by the relevant Owner, its ownership,  operation and management or to
     the business of that Owner;

(b)  not employ the Ship nor allow her employment in any manner  contrary to any
     law or regulation in any relevant jurisdiction including but not limited to
     the ISM Code and the ISPS Code; and

(c)  in the  event of  hostilities  in any  part of the  world  (whether  war is
     declared  or not),  not cause or  permit  the Ship to enter or trade to any
     zone which is  declared a war zone by any  government  or by the Ship's war
     risks insurers unless the prior written consent of the Majority Lenders has
     been  given  and the  Owner  has (at its  expense)  effected  any  special,
     additional  or  modified  insurance  cover which the  Majority  Lenders may
     require.

14.11 Provision of information. The Borrower shall procure that each Owner shall
     promptly  provide  the  Security  Trustee  with any  information  which the
     Majority Lenders request regarding:

(a)  the Ship owned by it, her employment, position and engagements;

(b)  the  Earnings  and  payments  and amounts due to the master and crew of the
     Ship owned by it;

(c)  any expenses  incurred,  or likely to be incurred,  in connection  with the
     operation,  maintenance  or  repair  of the Ship and any  payments  made in
     respect of the Ship;

(d)  any towages and salvages;

(e)  its compliance or the compliance of the Ship with the ISM Code and the ISPS
     Code,

     and, upon the Security  Trustee's  request,  provide  copies of any current
     charter  relating to the Ship and of any  current  charter  guarantee,  and
     copies of the ISM Code Documentation and the ISPS Code Documentation.

14.12 Notification of certain events. The Borrower shall procure that each Owner
     shall immediately notify the Security Trustee by letter of:

(a)  any casualty which is or is likely to be or to become a Major Casualty;

(b)  any  occurrence as a result of which the Ship owned by it has become or is,
     by the passing of time or otherwise, likely to become a Total Loss;

(c)  any  requirement or  recommendation  made by any insurer or  classification
     society or by any competent  authority  which is not  immediately  complied
     with;

(d)  any arrest or detention of the Ship, any exercise or purported  exercise of
     any lien on the Ship or her  Earnings  or any  requisition  of the Ship for
     hire;

(e)  any intended dry docking of the Ship;

(f)  any  Environmental  Claim made against that Owner or in connection with the
     Ship, or any Environmental Incident;

(g)  any claim for breach of the ISM Code or the ISPS Code  being  made  against
     the Owner,  the Approved  Manager or otherwise in connection with the Ship;
     or

(h)  any other matter,  event or incident,  actual or threatened,  the effect of
     which  will or  could  lead to the ISM  Code or the  ISPS  Code  not  being
     complied with

     and the Borrower  shall keep the Security  Trustee  advised in writing on a
     regular  basis and in such detail as the Security  Trustee shall require of
     the Owner's,  the Approved  Manager's or any other person's response to any
     of those events or matters.

14.13 Restrictions  on  chartering,  appointment  of managers  etc. The Borrower
     shall procure that no Owner shall:

(a)  (other than pursuant to the Hille  Oldendorff  Charterparty  in the case of
     the  Identified  Ship),  let the Ship owned by it on demise charter for any
     period;

(b)  enter into any time or  consecutive  voyage  charter in respect of the Ship
     for a term which exceeds, or which by virtue of any optional extensions may
     exceed, 11 months;

(c)  change  the  terms on which the Ship is  employed  or the  identity  of the
     person by whom the Ship is employed;

(d)  enter into any  charter  in  relation  to the Ship under  which more than 2
     months' hire (or the equivalent) is payable in advance;

(e)  charter the Ship otherwise than on bona fide arm's length terms at the time
     when the Ship is fixed;

(f)  appoint a manager of the Ship other than the  Approved  Manager or agree to
     any alteration to the terms of the Approved Manager's appointment;

(g)  de-activate or lay up the Ship; or

(h)  put the Ship into the  possession  of any  person  for the  purpose of work
     being done upon her in an amount exceeding or likely to exceed $500,000 (or
     the equivalent in any other currency) unless that person has first given to
     the Security Trustee and in terms satisfactory to it a written  undertaking
     not to exercise  any lien on the Ship or her  Earnings for the cost of such
     work or otherwise.

14.14 Notice of Mortgage.  The Borrower shall procure that each Owner shall keep
     the Mortgage  applicable  to the Ship owned by it  registered  against that
     Ship as a valid first  priority or preferred  mortgage,  carry on board the
     Ship  a  certified  copy  of the  Mortgage  and  place  and  maintain  in a
     conspicuous place in the navigation room and the Master's cabin of the Ship
     a framed  printed notice stating that the Ship is mortgaged by the Owner to
     the Security Trustee.

14.15 Sharing of Earnings. The Borrower shall procure that no Owner shall:

(a)  enter into any agreement or arrangement for the sharing of any Earnings;

(b)  enter into any agreement or arrangement for the postponement of any date on
     which any Earnings are due; the  reduction of the amount of any Earnings or
     otherwise for the release or adverse  alteration of any right of that Owner
     to any Earnings; or

(c)  enter into any  agreement  or  arrangement  for the  release of, or adverse
     alteration to, any guarantee or Security Interest relating to any Earnings.

14.16 Time Charter  Assignment.  If any Owner enters into any charter in respect
     of its Ship  which is of 11 months or more in  duration,  or is  capable of
     exceeding  11 months in duration  that Owner  shall,  at the request of the
     Agent,  execute, or, as the case may be, procure the execution in favour of
     the Security Trustee a Charterparty  Assignment in respect of that charter,
     and shall  deliver to the Agent such other  documents  equivalent  to those
     referred to at paragraphs  3,4 and 5 of Schedule 5, Part A as the Agent may
     require.

15   SECURITY COVER

15.1 Provision of additional  security  cover;  prepayment of Loan. The Borrower
     undertakes with each Creditor Party that if the Agent notifies the Borrower
     that:

(a)  the aggregate Market Values of the Ships; plus

(b)  the net realisable  value of any additional  security  previously  provided
     under this Clause 15;

     is below 133 percent of the Senior Loan or 120 percent of the aggregate
     of the Loan and the Senior Loan,  the Borrower  will,  within 14 days after
     the date on which the Agent's notice is served, either:

     (i)  provide,  or ensure that a third party provides,  additional  security
          which,  in the opinion of the Majority  Lenders,  has a net realisable
          value at least equal to the shortfall and which,  if it consists of or
          includes  a  Security  Interest,  covers  such  asset or assets and is
          documented in such terms as the Agent may, with authorisation from the
          Majority Lenders, approve or require; or

     (ii) prepay in accordance with Clause 8 such part (at least) of the Loan as
          will eliminate the shortfall.

15.2 Meaning of additional security.  In Clause 15.1 "security" means a Security
     Interest over an asset or assets  (including,  without  limitation a vessel
     (other than a Ship)) (whether securing the Borrower's liabilities under the
     Finance  Documents  or a guarantee in respect of those  liabilities),  or a
     guarantee,  letter of credit,  cash deposit or other security in respect of
     the Borrower's liabilities under the Finance Documents.

15.3 Requirement for additional  documents.  The Borrower shall not be deemed to
     have  complied  with Clause 15.1 (i) above until the Agent has  received in
     connection with the additional  security  certified  copies of documents of
     the kinds  referred to in  paragraphs  3, 4 and 5 of Schedule 5, Part A and
     such legal opinions in terms  acceptable to the Majority  Lenders from such
     lawyers as they may select.

15.4 Valuation of Ship.  The market value of a Ship at any date is that shown by
     taking the arithmetic mean of two valuations each prepared:

(a)  as at a date not more than 15 days previously;

(b)  by an Approved Broker;

(c)  with or without physical inspection of the Ship (as the Agent may require);

(d)  on the basis of a sale for prompt  delivery for cash on normal arm's length
     commercial  terms as between a willing seller and a willing buyer,  free of
     any existing charter or other contract of employment; and

(e)  after deducting the estimated  amount of the usual and reasonable  expenses
     which would be incurred in connection with the sale,

     Provided that if such two valuations  differ by more than 15 percent then
     the Agent  will  obtain a third  valuation  from an  Approved  Broker to be
     prepared in accordance  with  paragraphs (a) to (e) of this Clause 15.4 and
     the  Market  Value  of a  Ship  will  be  the  arithmetic  mean  of  such 3
     valuations.

15.5 Value of additional  security.  The net realisable  value of any additional
     security  which is  provided  under  Clause  15.1 and which  consists  of a
     Security  Interest  over a  vessel  shall  be  that  shown  by a  valuation
     complying with the requirements of Clause 15.4.

15.6 Valuations binding. Any valuation under Clause 15.1(i),  15.4 or 15.5 shall
     be  binding  and  conclusive  as  regards  the  Borrower,  as  shall be any
     valuation  which the  Majority  Lenders  make of a security  which does not
     consist of or include a Security Interest.

15.7 Provision of information. The Borrower shall promptly provide the Agent and
     any  Approved  Broker or expert  acting  under Clause 15.4 or 15.5 with any
     information  which the Agent or the  Approved  Broker or expert may request
     for the purposes of the  valuation;  and, if the Borrower  fails to provide
     the information by the date specified in the request,  the valuation may be
     made on any basis and assumptions which the Approved Broker or the Majority
     Lenders (or the expert appointed by them) consider prudent.

15.8 Payment of valuation  expenses.  Without prejudice to the generality of the
     Borrower's  obligations  under  Clauses 20.2,  20.3 and 21.3,  the Borrower
     shall, on demand,  pay the Agent the amount of the fees and expenses of any
     Approved  Broker  instructed  by the Agent under this Clause  Provided that
     until an Event of Default has occurred and is continuing the Borrower shall
     be liable to pay to the  Agent the fees and  expenses  of up to two sets of
     valuations of each Ship on up to two (or, if the Agent  exercises the right
     referred to in the final paragraph of Clause 12.5,  three) occasions in any
     calendar year.

16   PAYMENTS AND CALCULATIONS

16.1 Currency and method of payments. All payments to be made:

(a)  by the Lenders to the Agent; or

(b)  by the Borrower to the Agent, the Security Trustee or any Lender

     under a  Finance  Document  shall be made to the  Agent or to the  Security
     Trustee, in the case of an amount payable to it:

     (i)  by not later than 11.00 a.m. New York City time) on the due date;

     (ii) in same day Dollar funds settled  through the New York Clearing  House
          Interbank  Payments  System  (or in such  other  Dollar  funds  and/or
          settled  in such  other  manner as the Agent  shall  specify  as being
          customary at the time for the settlement of international transactions
          of the type contemplated by this Agreement);

     (iii) to the account of the Agent at JPMorgan Chase Bank, New York (Account
          No 001-1-331808 SWIFT Code: CHASUS 33 under reference "Dryships Inc. -
          US$628.75m  facility"),  or to such other account with such other bank
          as the  Agent may from time to time  notify  to the  Borrower  and the
          other Creditor Parties; and

     (iv) in the case of an amount  payable  to the  Security  Trustee,  to such
          account  as it may from time to time  notify to the  Borrower  and the
          other Creditor Parties.

16.2 Payment on non-Business Day. If any payment by the Borrower under a Finance
     Document would otherwise fall due on a day which is not a Business Day:

(a)  the due date shall be extended to the next succeeding Business Day; or

(b)  if the next succeeding  Business Day falls in the next calendar month,  the
     due date shall be brought forward to the immediately preceding Business Day

     and interest shall be payable during any extension  under  paragraph (a) at
     the rate payable on the original due date.

16.3 Basis for calculation of periodic payments. All interest and commitment fee
     and any other payments under any Finance Document which are of an annual or
     periodic nature shall accrue from day to day and shall be calculated on the
     basis of the actual number of days elapsed and a 360 day year.

16.4 Distribution of payments to Creditor Parties. Subject to Clauses 16.5, 16.6
     and 16.7:

(a)  any amount received by the Agent under a Finance  Document for distribution
     or  remittance  to a Lender,  a Swap Bank or the Security  Trustee shall be
     made  available  by the Agent to that  Lender or, as the case may be,  that
     Swap Bank or the  Security  Trustee by payment,  with funds having the same
     value as the funds received,  to such account as the Lender,  the Swap Bank
     or the  Security  Trustee  may have  notified  to the Agent not less than 5
     Business Days previously; and

(b)  amounts to be applied in satisfying amounts of a particular  category which
     are due to the Lenders or the Swap Bank  generally  shall be distributed by
     the Agent to each  Lender  or the Swap Bank pro rata to the  amount in that
     category which is due to it.

16.5 Permitted deductions by Agent.  Notwithstanding any other provision of this
     Agreement or any other Finance  Document,  the Agent may,  before making an
     amount available to a Lender or a Swap Bank,  deduct and withhold from that
     amount any sum which is then due and  payable to the Agent from that Lender
     or that Swap Bank under any Finance  Document or any sum which the Agent is
     then entitled under any Finance Document to require that Lender or any Swap
     Bank to pay on demand.

16.6 Agent only obliged to pay when monies received.  Notwithstanding  any other
     provision of this Agreement or any other Finance Document,  the Agent shall
     not be obliged to make  available to the Borrower or any Lender or any Swap
     Bank any sum which the Agent is  expecting  to receive  for  remittance  or
     distribution  to the  Borrower  or that  Lender or that Swap Bank until the
     Agent has satisfied itself that it has received that sum.

16.7 Refund to Agent of monies not received. If and to the extent that the Agent
     makes  available a sum to the Borrower or a Lender or a Swap Bank,  without
     first  having  received  that sum, the Borrower or (as the case may be) the
     Lender or the Swap Bank concerned shall, on demand:

(a)  refund the sum in full to the Agent; and

(b)  pay to the  Agent  the  amount  (as  certified  by the  Agent)  which  will
     indemnify the Agent against any funding or other loss, liability or expense
     incurred  by the  Agent as a result  of  making  the sum  available  before
     receiving it.

16.8 Agent may assume receipt.  Clause 16.7 shall not affect any claim which the
     Agent has under the law of restitution, and applies irrespective of whether
     the Agent had any form of notice that it had not  received the sum which it
     made available.

16.9 Creditor  Party  accounts.  Each  Creditor  Party shall  maintain  accounts
     showing the amounts  owing to it by the  Borrower and each  Security  Party
     under the Finance  Documents  and all payments in respect of those  amounts
     made by the Borrower and any Security Party.

16.10 Agent's memorandum account.  The Agent shall maintain a memorandum account
     showing the amounts advanced by the Lenders and all other sums owing to the
     Agent,  the  Security  Trustee and each Lender from the  Borrower  and each
     Security  Party under the Finance  Documents and all payments in respect of
     those amounts made by the Borrower and any Security Party.

16.11 Accounts prima facie evidence.  If any accounts  maintained  under Clauses
     16.9 and 16.10  show an amount to be owing by the  Borrower  or a  Security
     Party to a Creditor Party, those accounts shall,  absent manifest error, be
     prima facie evidence that that amount is owing to that Creditor Party.

17   APPLICATION OF RECEIPTS

17.1 Normal order of application.  Except as any Finance  Document may otherwise
     provide,  any sums which are received or  recovered  by any Creditor  Party
     under or by virtue of any Finance Document shall be applied:

(a)  FIRST:  in or towards  payment to the Agent for  application  in accordance
     with the paragraphs titled "FIRST" and "SECONDLY" in paragraphs (a) and (b)
     of clause 17.1 of the Senior Loan Agreement;

(b)  SECONDLY:  in or towards  satisfaction  of any amounts then due and payable
     under the Finance  Documents  and each Master  Agreement  in the  following
     order and proportions:

     (i)  first, in or towards satisfaction pro rata of all amounts then due and
          payable to the Creditor Parties under the Finance Documents other than
          those amounts referred to at paragraphs (ii) and (iii) (including, but
          without limitation,  all amounts payable by the Borrower under Clauses
          20, 21 and 22 of this  Agreement  or by the  Borrower or any  Security
          Party  under  any  corresponding  or  similar  provision  in any other
          Finance Document or in either Master Agreement);

     (ii) secondly,  in or towards  satisfaction pro rata of any and all amounts
          of interest or default  interest payable to the Creditor Parties under
          the  Finance  Documents  and the  Master  Agreements  (and,  for  this
          purpose, the expression  "interest" shall include any net amount which
          the Borrower  shall have become liable to pay or deliver under section
          2(e) (Obligations) of either Master Agreement but shall have failed to
          pay or deliver to the relevant Swap Bank at the time of application or
          distribution under this Clause 17); and

     (iii) thirdly, in or towards satisfaction pro rata of the Loan and the Swap
          Exposure of each Swap Bank (in the case of the latter,  calculated  as
          at the actual  Early  Termination  Date  applying  to each  particular
          Designated  Transaction,  or if no such Early  Termination  Date shall
          have occurred,  calculated as if an Early Termination Date occurred on
          the date of application or distribution hereunder);

(c)  THIRDLY:  in  retention  of an amount  equal to any amount not then due and
     payable  under any Finance  Document or any Master  Agreement but which the
     Agent,  by notice  to the  Borrower,  the  Security  Parties  and the other
     Creditor Parties,  states in its opinion will or may become due and payable
     in the future and,  upon those  amounts  becoming  due and  payable,  in or
     towards  satisfaction  of them in accordance  with the provisions of Clause
     17.1(b); and

(d)  FOURTHLY:  any surplus shall be paid to the Borrower or to any other person
     appearing to be entitled to it.

17.2 Variation of order of application. The Agent may, with the authorisation of
     the  Majority  Lenders  and the Swap Banks by notice to the  Borrower,  the
     Security  Parties and the other  Creditor  Parties  provide for a different
     manner of application  from that set out in Clause 17.1 either as regards a
     specified  sum or  sums  or as  regards  sums in a  specified  category  or
     categories.

17.3 Notice of  variation  of order of  application.  The Agent may give notices
     under  Clause  17.2 from time to time;  and such a notice  may be stated to
     apply not only to sums which may be  received or  recovered  in the future,
     but also to any sum which has been  received or  recovered  on or after the
     third Business Day before the date on which the notice is served.

17.4 Appropriation rights overridden. This Clause 17 and any notice which the
     Agent gives under Clause 17.3 shall override any right of appropriation
     possessed, and any appropriation made, by the Borrower or any Security
     Party.

18   APPLICATION OF EARNINGS

18.1 Payment of Earnings.  The Borrower  undertakes  with each Creditor Party to
     ensure that throughout the Security Period:

(a)  (subject only to provisions of the relevant  General  Assignment),  all the
     Earnings of each Ship are paid to the Earnings Account for that Ship; and

(b)  all payments by a Swap Bank to a Borrower  under a  Designated  Transaction
     are paid to the Retention Account.

18.2 Monthly  retentions.  The Borrower  undertakes  with each Creditor Party to
     ensure that, in each calendar  month of the Security  Period  commencing on
     the date falling 1 month after the first  Drawdown Date and on the same day
     in each subsequent month, there is transferred to the Retention Account out
     of the  aggregate  Earnings  received in the Earnings  Accounts  during the
     preceding calendar month:

(a)  one-third  (or, in the case of the period  between the first  Drawdown Date
     and the first  Repayment  Date,  one-fifth)  of the amount of the Repayment
     Instalment falling due under Clause 8 on the next Repayment Date; and

(b)  the relevant  fraction of the aggregate  amount of interest on (i) the Term
     Loan and (ii) the Credit Facility which is payable on the next due date for
     payment of interest for each of the Term Loan and the Credit Facility under
     this Agreement.

     The "relevant fraction", in respect of each Advance, is a fraction of which
     the numerator is 1 and the  denominator  the number of months  comprised in
     the then current  Interest  Period  applicable  to such Advance (or, if the
     current  Interest  Period  ends after the next date for payment of interest
     under  this  Agreement,  the  number  of  months  from  the  later  of  the
     commencement  of the  current  Interest  Period  or the  last  due date for
     payment of interest  to the next date for  payment of  interest  under this
     Agreement).

18.3 Shortfall in Earnings.  If the aggregate Earnings received are insufficient
     in any month for the required  amount to be  transferred  to the  Retention
     Account  under  Clause 18.2,  the Borrower  shall make up the amount of the
     insufficiency on demand from the Agent;  but,  without thereby  prejudicing
     the  Agent's  right to make such  demand at any time,  the Agent may, if so
     authorised by the Majority  Lenders,  permit the Borrower to make up all or
     part of the  insufficiency  by increasing  the amount of any transfer under
     Clause 18.2 from the Earnings received in the next or subsequent months.

18.4 Application  of  retentions.  Until an Event of Default  occurs,  the Agent
     shall on each  Repayment  Date and on each  due  date  for the  payment  of
     interest under this Agreement  distribute to the Lenders in accordance with
     Clause 16.4 so much of the then balance on the Retention Account as equals:

(a)  the Repayment Instalment due on that Repayment Date; and

(b)  the amount of interest  payable on that interest  payment date in discharge
     of the Borrower's liability for that Repayment Instalment or that interest.

18.5 Interest accrued on Retention Account.  Any credit balance on the Retention
     Account  shall bear  interest at the rate from time to time  offered by the
     Agent to its  customers  for Dollar  deposits  of similar  amounts  and for
     periods similar to those for which such balances appear to the Agent likely
     to remain on the Retention Account.

18.6 Release of accrued  interest.  Interest accruing under Clause 18.5 shall be
     released to the Borrower on each  Repayment Date unless an Event of Default
     or a Potential  Event of Default has occurred or the then credit balance on
     the Retention Account is less than what would have been the balance had the
     full amount  required by Clause 18.2 (and Clause 18.3, if applicable)  been
     transferred in that and each previous month.

18.7 Location of accounts. The Borrower shall promptly:

(a)  comply, and ensure that the Owners and Wealth comply,  with any requirement
     of the Agent as to the location or re-location of any Earnings Account, the
     Debt Service Reserve Account, the Retention Account or the Wealth Account;

(b)  execute, and ensure that the Owners and Wealth execute, any documents which
     the Agent specifies to create or maintain in favour of the Security Trustee
     a Security Interest over (and/or rights of set-off,  consolidation or other
     rights in relation  to) the Earnings  Accounts  (or any of them),  the Debt
     Service Reserve Account, the Retention Account and the Wealth Account.

18.8 Debits for expenses etc. The Agent shall be authorised by the Borrower (but
     not obliged) from time to time to debit the Earnings  Account without prior
     notice in order to discharge  any amount due and payable under Clause 20 or
     21 to a Creditor  Party or payment of which any  Creditor  Party has become
     entitled to demand under Clause 20 or 21.

18.9 Borrower' obligations  unaffected.  The provisions of this Clause 18 do not
     affect:

(a)  the liability of the Borrower to make payments of principal and interest on
     the due dates; or

(b)  any other  liability or  obligation  of the Borrower or any Security  Party
     under any Finance Document.

18.10 Wealth Account.  The Owners may from time to time transfer credit balances
     on the  Earnings  Accounts to the Wealth  Account  subject to the  Borrower
     being in compliance with its obligations  under this Agreement  (including,
     without limitation, Clause 18.2).

19   EVENTS OF DEFAULT

19.1 Events of Default. An Event of Default occurs if:

(a)  the Borrower or any Security Party fails to pay when due or (if so payable)
     on demand any sum payable  under a Finance  Document or under any  document
     relating to a Finance Document; or

(b)  any breach occurs of Clause 9.2, 11.2,  11.3,  11.19,  11.20,  12.2,  12.3,
     12.4, 13.2, 15.1 or 18.1; or

(c)  any breach by the Borrower or any Security Party occurs of any provision of
     a Finance  Document  (other than a breach  covered by paragraphs (a) or (b)
     above) if, in the opinion of the Majority Lenders,  such default is capable
     of remedy,  and such default  continues  unremedied  10 days after  written
     notice from the Agent requesting action to remedy the same; or

(d)  (subject to any applicable grace period specified in the Finance  Document)
     any breach by the Borrower or any Security Party occurs of any provision of
     a Finance  Document  (other than a breach covered by paragraphs (a), (b) or
     (c) above); or

(e)  any representation, warranty or statement made by, or by an officer of, the
     Borrower or a Security Party in a Finance  Document or in a Drawdown Notice
     or any other notice or document relating to a Finance Document is untrue or
     misleading when it is made; or

(f)  any of the following occurs in relation to any Financial  Indebtedness of a
     Relevant  Person  exceeding  $1,000,000  (or the  equivalent  in any  other
     currency) in aggregate:

     (i)  any Financial  Indebtedness  of a Relevant Person is not paid when due
          or, if so payable, on demand; or

     (ii) any  Financial  Indebtedness  of a  Relevant  Person  becomes  due and
          payable or  capable of being  declared  due and  payable  prior to its
          stated maturity date as a consequence of any event of default; or

     (iii) a lease,  hire purchase  agreement or charter  creating any Financial
          Indebtedness of a Relevant Person is terminated by the lessor or owner
          or  becomes  capable  of  being  terminated  as a  consequence  of any
          termination event; or

     (iv) any overdraft,  loan,  note  issuance,  acceptance  credit,  letter of
          credit, guarantee,  foreign exchange or other facility, or any swap or
          other  derivative  contract or transaction,  relating to any Financial
          Indebtedness  of a Relevant  Person  ceases to be available or becomes
          capable of being  terminated  as a result of any event of default,  or
          cash cover is  required,  or becomes  capable  of being  required,  in
          respect of such a facility as a result of any event of default; or

     (v)  any  Security  Interest  securing  any  Financial  Indebtedness  of  a
          Relevant Person becomes enforceable; or

(g)  any of the following occurs in relation to a Relevant Person:

     (i)  a Relevant  Person  becomes,  in the opinion of the Majority  Lenders,
          unable to pay its debts as they fall due; or

     (ii) any assets of a Relevant  Person are subject to any form of execution,
          attachment,  arrest, sequestration or distress in respect of a sum of,
          or sums  aggregating,  $100,000 or more or the  equivalent  in another
          currency; or

     (iii) any administrative or other receiver is appointed over any asset of a
          Relevant Person; or

     (iv) a Relevant  Person makes any formal  declaration  of bankruptcy or any
          formal  statement  to the  effect  that it is  insolvent  or likely to
          become insolvent,  or a winding up or administration  order is made in
          relation  to a  Relevant  Person,  or the  members or  directors  of a
          Relevant  Person  pass a  resolution  to the effect  that it should be
          wound up, placed in administration or cease to carry on business, save
          that this paragraph does not apply to a fully solvent  winding up of a
          Relevant  Person  other  than  the  Borrower  which  is,  or is to be,
          effected  for  the  purposes  of  an  amalgamation  or  reconstruction
          previously  approved by the  Majority  Lenders and  effected not later
          than 3 months after the commencement of the winding up; or

     (v)  a petition is presented in any Pertinent  Jurisdiction for the winding
          up or administration,  or the appointment of a provisional liquidator,
          of a Relevant  Person  unless the petition is being  contested in good
          faith and on substantial  grounds and is dismissed or withdrawn within
          30 days of the presentation of the petition; or

     (vi) a Relevant Person petitions a court, or presents any proposal for, any
          form of judicial or  non-judicial  suspension or deferral of payments,
          reorganisation  of its debt (or  certain  of its debt) or  arrangement
          with all or a  substantial  proportion  (by  number  or  value) of its
          creditors or of any class of them or any such  suspension  or deferral
          of payments, reorganisation or arrangement is effected by court order,
          contract or otherwise; or

     (vii) any  meeting of the  members  or  directors  of a Relevant  Person is
          summoned for the purpose of  considering  a resolution  or proposal to
          authorise or take any action of a type described in paragraphs  (iii),
          (iv), (v) or (vi) above; or

     (viii) in a Pertinent  Jurisdiction other than England, any event occurs or
          any  procedure  is  commenced  which,  in the opinion of the  Majority
          Lenders, is similar to any of the foregoing; or

(h)  the  Borrower  or any  Security  Party  ceases or  suspends  carrying on or
     changes the nature of its business or a part of its business  which, in the
     opinion  of the  Majority  Lenders,  is  material  in the  context  of this
     Agreement; or

(i)  it becomes unlawful in any Pertinent Jurisdiction or impossible:

     (i)  for the Borrower or any  Security  Party to  discharge  any  liability
          under a Finance  Document or to comply with any other obligation which
          the Majority Lenders consider material under a Finance Document; or

     (ii) for the Agent, the Security Trustee,  the Lenders or the Swap Banks to
          exercise  or  enforce  any right  under,  or to enforce  any  Security
          Interest created by, a Finance Document; or

(j)  any consent necessary to enable any Owner to own, operate or charter a Ship
     or to  enable  the  Borrower  or any  Security  Party  to  comply  with any
     provision  which  the  Majority  Lenders  consider  material  of a  Finance
     Document is not  granted,  expires  without  being  renewed,  is revoked or
     becomes  liable to  revocation  or any  condition  of such a consent is not
     fulfilled; or

(k)  it appears to the  Majority  Lenders  that,  without  their  prior  written
     consent,  a change has occurred or probably has occurred  after the date of
     this Agreement in the ultimate beneficial ownership of any of the shares in
     any Owner, Wealth or the Approved Manager or in the ultimate control of the
     voting rights attaching to any of those shares; or

(l)  George Economou ceases to be the Chief Executive Officer of the Borrower or
     George Economou or members of his immediate  family (either directly and/or
     through companies  beneficially  owned by the George Economou or members of
     his immediate  family and/or trusts or foundations of which George Economou
     or members of his immediate family are  beneficiaries) own and control less
     than 33.33 percent of the issued share capital of the Borrower;

(m)  any provision  which the Majority  Lenders  consider  material of a Finance
     Document  proves to have been or  becomes  invalid or  unenforceable,  or a
     Security  Interest  created  by a Finance  Document  proves to have been or
     becomes invalid or unenforceable or such a Security Interest proves to have
     ranked after,  or loses its priority to, another  Security  Interest or any
     other third party claim or interest; or

(n)  the security  constituted by a Finance Document is in any way imperilled or
     in jeopardy; or

(o)  a Master  Agreement  is  terminated,  cancelled,  suspended,  rescinded  or
     revoked  or  otherwise  ceases to remain in full  force and  effect for any
     reason except with the consent of the Agent,  acting with the authorisation
     of the Majority Lenders; or

(p)  any  other  event  occurs  or any  other  circumstances  arise  or  develop
     including, without limitation:

     (i)  a change in the financial  position,  state of affairs or prospects of
          any Security Party; or

     (ii) any  accident  or other  event  involving  any Ship or another  vessel
          owned,  chartered  or operated by a Relevant  Person;  in the light of
          which the Majority  Lenders  consider that there is a significant risk
          that the  Borrower  or any  Security  Party is, or will later  become,
          unable to discharge  its  liabilities  under the Finance  Documents as
          they fall due; or

(q)  there shall occur an Event of Default  (howsoever  therein described) under
     the Senior Loan Agreement.

19.2 Actions  following  an Event of  Default.  On,  or at any time  after,  the
     occurrence of an Event of Default:

(a)  the Agent may,  and if so  instructed  by the Majority  Lenders,  the Agent
     shall:

     (i)  serve on the Borrower a notice  stating that the  Commitments  and all
          other  obligations of each Lender to the Borrower under this Agreement
          are terminated; and/or

     (ii) serve on the  Borrower a notice  stating  that the Loan,  all  accrued
          interest and all other amounts  accrued or owing under this  Agreement
          are  immediately  due and  payable  or are due and  payable on demand;
          and/or

     (iii) take any other action  which,  as a result of the Event of Default or
          any notice served under paragraph (i) or (ii) above,  the Agent and/or
          the  Lenders are  entitled  to take under any Finance  Document or any
          applicable law; and/or

(b)  the Security  Trustee may, and if so instructed  by the Agent,  acting with
     the authorisation of the Majority Lenders,  the Security Trustee shall take
     any action which,  as a result of the Event of Default or any notice served
     under  paragraph  (a) (i) or (ii) above,  the Security  Trustee,  the Agent
     and/or the  Lenders  and/or the Swap Banks are  entitled  to take under any
     Finance Document or any applicable law.

19.3 Termination  of  Commitments.  On the service of a notice  under  paragraph
     (a)(i) of Clause 19.2, the  Commitments  and all other  obligations of each
     Lender to the Borrower under this Agreement shall terminate.

19.4 Acceleration of Loan. On the service of a notice under paragraph (a)(ii) of
     Clause 19.2, the Loan, all accrued  interest and all other amounts  accrued
     or owing from the Borrower or any Security  Party under this  Agreement and
     every other Finance  Document shall become  immediately due and payable or,
     as the case may be, payable on demand.

19.5 Multiple notices;  action without notice. The Agent may serve notices under
     paragraphs (a) (i) and (ii) of Clause 19.2  simultaneously  or on different
     dates and it and/or the Security Trustee may take any action referred to in
     that  Clause if no such notice is served or  simultaneously  with or at any
     time after the service of both or either of such notices.

19.6 Notification of Creditor Parties and Security Parties. The Agent shall send
     to each Lender,  the Security Trustee and each Security Party a copy of the
     text of any notice  which the Agent  serves on the  Borrower  under  Clause
     19.2;  but the  notice  shall  become  effective  when it is  served on the
     Borrower,  and no  failure or delay by the Agent to send a copy of the text
     of the notice to any other  person shall  invalidate  the notice or provide
     the Borrower or any Security Party with any form of claim or defence.

19.7 Lender's rights unimpaired. Nothing in this Clause shall be taken to impair
     or restrict the exercise of any right given to  individual  Lenders under a
     Finance  Document or the general law;  and, in  particular,  this Clause is
     without prejudice to Clause 3.1.

19.8 Exclusion of Creditor Party  Liability.  No Creditor Party, and no receiver
     or manager appointed by the Security  Trustee,  shall have any liability to
     the Borrower or a Security Party:

(a)  for any loss caused by an exercise of rights  under,  or  enforcement  of a
     Security Interest created by, a Finance Document or by any failure or delay
     to exercise such a right or to enforce such a Security Interest; or

(b)  as mortgagee in possession or otherwise, for any income or principal amount
     which might have been produced by or realised  from any asset  comprised in
     such a Security Interest or for any reduction (however caused) in the value
     of such an asset;

     except that this does not exempt a Creditor  Party or a receiver or manager
     from liability for losses shown to have been caused by the gross negligence
     or the  wilful  misconduct  of  such  Creditor  Party's  own  officers  and
     employees or (as the case may be) such receiver's or manager's own partners
     or employees.

19.9 Relevant Persons. In this Clause 19 "a Relevant Person" means the Borrower,
     a Security  Party and any other  member of the  Group;  but  excluding  any
     company  which is dormant and the value of whose gross assets is $50,000 or
     less.

19.10 Position of Swap Banks.  Neither the Agent nor the Security  Trustee shall
     be obliged,  in  connection  with any action  taken or proposed to be taken
     under or pursuant to the  foregoing  provisions  of this Clause 19, to have
     any regard to the  requirements of the Swap Banks except to the extent that
     the Swap Banks are also Lenders.

19.11 Interpretation.  In Clause 19.1(#)  references to an event of default or a
     termination event include any event, howsoever described,  which is similar
     to an event of default in a facility  agreement or a termination event in a
     finance lease; and in Clause 19.1(g) "petition" includes an application.

20   FEES AND EXPENSES

20.1 Facility,  drawdown and  commitment  fees.  The  Borrower  shall pay to the
     Agent:

(a)  certain  facility fees set out in the letter  addressed by the Agent to the
     Borrower and dated the same date as this Agreement; and

(b)  in relation to each Additional  Advance,  a drawdown fee of 0.075 percent
     of that Additional Advance,  such fee to be payable on the Drawdown Date of
     the Additional  Advance and to be distributed among the Lenders pro rata to
     their Credit Facility Commitments;

(c)  a commitment fee:

     (i)  in the case of the Term Loan, at the rate of 0.40 percent  per annum
          on  the  undrawn  amount  of  the  Term  Loan  Commitments  from  (and
          including) 21 February 2006 up to and including the earlier of (A) the
          Drawdown  Date in respect of the  Identified  Ship Advance and (B) the
          last day of the  Availability  Period for the Identified Ship Advance;
          and

     (ii) in the case of the Credit Facility,  at the rate of 0.25 percent per
          annum on the undrawn amount of the Credit  Facility  Commitments  from
          (and  including)  21 February  2006 up to and including the earlier of
          (A) the Drawdown  Date on which the Credit  Facility  Commitments  are
          fully  drawn and (B) the last day of the  Availability  Period for the
          Additional Advances,

     such fee to be paid  quarterly  in arrears and on the last day of each such
     period referred to in sub-paragraphs (i) and (ii) above and, in the case of
     sub-paragraph  (i) above,  to be distributed  among the Lenders pro rata to
     their Term Loan Commitments  and, in the case of sub-paragraph  (ii) above,
     to be  distributed  among the  Lenders  pro rata to their  Credit  Facility
     Commitments.

20.2 Costs of negotiation,  preparation etc. The Borrower shall pay to the Agent
     on its demand the amount of all reasonable  expenses  incurred by the Agent
     or the Security  Trustee in connection with the  negotiation,  preparation,
     execution or registration of any Finance  Document or any related  document
     or with any  transaction  contemplated  by a Finance  Document or a related
     document (including, without limitation, any legal fees or expenses).

20.3 Costs of variations, amendments, enforcement etc. The Borrower shall pay to
     the Agent,  on the Agent's demand,  the amount of all expenses  (including,
     without  limitation,  any legal fees or expenses) incurred by a Lender or a
     Swap Bank in connection with:

(a)  any amendment or supplement to a Finance Document, or any proposal for such
     an amendment to be made;

(b)  any consent or waiver by the Lenders,  the  Majority  Lenders or the Lender
     concerned  under or in connection with a Finance  Document,  or any request
     for such a consent or waiver;

(c)  the  valuation of any security  provided or offered  under Clause 15 or any
     other matter relating to such security;

(d)  such circumstances where the Agent, in its absolute opinion, considers that
     there has been a material  change to the  insurances  in respect of a Ship,
     the review of the insurances of that Ship pursuant to Clause 13.18;

(e)  any step taken by the Lender  concerned or the Swap Bank  concerned  with a
     view to the  protection,  exercise or  enforcement of any right or Security
     Interest created by a Finance Document or for any similar purpose.

     There shall be recoverable under paragraph (e) the full amount of all legal
     expenses,  whether or not such as would be allowed  under rules of court or
     any taxation or other procedure carried out under such rules.

20.4 Documentary taxes. The Borrower shall promptly pay any tax payable on or by
     reference to any Finance Document,  and shall, on the Agent's demand, fully
     indemnify  each  Creditor  Party  against  any   liabilities  and  expenses
     resulting from any failure or delay by the Borrower to pay such a tax.

20.5 Certification  of amounts.  A notice  which is signed by two  officers of a
     Creditor Party,  which states that a specified amount, or aggregate amount,
     is due to that  Creditor  Party  under this  Clause 20 and which  indicates
     (without  necessarily  specifying  a  detailed  breakdown)  the  matters in
     respect of which the amount,  or  aggregate  amount,  is due shall be prima
     facie evidence that the amount, or aggregate amount, is due.

21   INDEMNITIES

21.1 Indemnities  regarding  borrowing and repayment of Loan. The Borrower shall
     fully  indemnify  the Agent and each Lender on the  Agent's  demand and the
     Security Trustee on its demand in respect of all expenses,  liabilities and
     losses which are incurred by that  Creditor  Party,  or which that Creditor
     Party reasonably and with due diligence  estimates that it will incur, as a
     result of or in connection with:

(a)  an Advance not being borrowed on the date specified in the Drawdown  Notice
     for that Advance for any reason other than a default by the Lender claiming
     the indemnity;

(b)  the  receipt or  recovery  of all or any part of the Loan or an overdue sum
     otherwise  than on the last day of an  Interest  Period  or other  relevant
     period;

(c)  any failure  (for  whatever  reason) by the Borrower to make payment of any
     amount due under a Finance  Document on the due date or, if so payable,  on
     demand (after  giving credit for any default  interest paid by the Borrower
     on the amount concerned under Clause 7);

(d)  the  occurrence  and/or  continuance  of an Event of Default or a Potential
     Event of Default  and/or the  acceleration  of  repayment of the Loan under
     Clause 19;

     and in respect of any tax (other  than tax on its  overall  net income) for
     which a Creditor  Party is liable in  connection  with any  amount  paid or
     payable to that Creditor  Party  (whether for its own account or otherwise)
     under any Finance Document.

21.2 Breakage costs.  Without  limiting its  generality,  Clause 21.1 covers any
     liability,  expense  or loss,  including  a loss of a  prospective  profit,
     incurred by a Lender:

(a)  in  liquidating  or  employing  deposits  from third  parties  acquired  or
     arranged to fund or maintain all or any part of its Contribution and/or any
     overdue amount (or an aggregate  amount which includes its  Contribution or
     any overdue amount); and

(b)  in  terminating,  or  otherwise in  connection  with,  any interest  and/or
     currency swap or any other  transaction  entered into (whether with another
     Iegal entity or with another office or department of the Lender  concerned)
     to hedge any exposure  arising under this  Agreement or that part which the
     Lender concerned determines is fairly attributable to this Agreement of the
     amount  of  the  liabilities,  expenses  or  losses  (including  losses  of
     prospective  profits)  incurred  by  it in  terminating,  or  otherwise  in
     connection with, a number of transactions of which this Agreement is one.

21.3 Miscellaneous indemnities. The Borrower shall fully indemnify each Creditor
     Party  severally  on their  respective  demands in  respect of all  claims,
     demands, proceedings, liabilities, taxes, losses and expenses of every kind
     ("liability  items") which may be made or brought against,  or incurred by,
     the relevant Creditor Party, in any country, in relation to;

(a)  any  action  taken,  or  omitted  or  neglected  to be  taken,  under or in
     connection with any Finance  Document by the Agent, the Security Trustee or
     any  other  Creditor  Party or by any  receiver  appointed  under a Finance
     Document;

(b)  any other  event,  matter or  question  which  occurs or arises at any time
     during  the  Security  Period  and which has any  connection  with,  or any
     bearing on, any Finance Document, any payment or other transaction relating
     to a Finance  Document or any asset  covered (or  previously  covered) by a
     Security  Interest  created  (or  intended  to  be  created)  by a  Finance
     Document;

     other than liability items which are shown to have been caused by the gross
     negligence or the wilful  misconduct of the relevant  Creditor  Party's own
     officers or employees.

21.4 Extension of indemnities; environmental indemnity. Without prejudice to its
     generality, Clause 21.3 covers:

(a)  any matter  which would be covered by Clause 21.3 if any of the  references
     in that Clause to a Lender  were a  reference  to the Agent or (as the case
     may be) to the Security Trustee; and

(b)  any liability  items which arise,  or are asserted,  under or in connection
     with any law relating to safety at sea,  pollution or the protection of the
     environment.

21.5 Currency indemnity.  If any sum due from the Borrower or any Security Party
     to a Creditor Party under a Finance Document or under any order or judgment
     relating to a Finance  Document  has to be  converted  from the currency in
     which  the  Finance  Document   provided  for  the  sum  to  be  paid  (the
     "Contractual  Currency") into another currency (the "Payment Currency") for
     the purpose of:

(a)  making or lodging any claim or proof  against the  Borrower or any Security
     Party,  whether  in  its  liquidation,  any  arrangement  involving  it  or
     otherwise; or

(b)  obtaining an order or judgment from any court or other tribunal; or

(c)  enforcing any such order or judgment;

     the Borrower shall indemnify the Creditor Party concerned  against the loss
     arising when the amount of the payment  actually  received by that Creditor
     Party is converted at the available  rate of exchange into the  Contractual
     Currency.

     In this Clause 21.5,  the  "available  rate of exchange"  means the rate at
     which the  Creditor  Party  concerned  is able at the  opening of  business
     (Hamburg  time) on the Business Day after it receives the sum  concerned to
     purchase the Contractual Currency with the Payment Currency.

     This Clause 21.5  creates a separate  liability  of the  Borrower  which is
     distinct from its other  liabilities  under the Finance Documents and which
     shall  not be merged  in any  judgment  or order  relating  to those  other
     liabilities.

21.6 Application to Master Agreements.  For the avoidance of doubt,  Clause 21.5
     does not  apply in  respect  of sums due from the  Borrower  to a Swap Bank
     under or in connection with the Master Agreement to which that Swap Bank is
     a party as to which sums the provisions of section 8 (Contractual Currency)
     of that Master Agreement shall apply.

21.7 Certification  of  amounts.  A notice  which is signed by 2  officers  of a
     Creditor Party,  which states that a specified amount, or aggregate amount,
     is due to that  Creditor  Party  under this  Clause 21 and which  indicates
     (without  necessarily  specifying  a  detailed  breakdown)  the  matters in
     respect of which the amount,  or  aggregate  amount,  is due shall be prima
     facie evidence that the amount, or aggregate amount, is due.

21.8 Sums  deemed due to a Lender.  For the  purposes  of this  Clause 21, a sum
     payable  by  the  Borrower  to  the  Agent  or  the  Security  Trustee  for
     distribution to a Lender shall be treated as a sum due to that Lender.

22   NO SET-OFF OR TAX DEDUCTION

22.1 No deductions.  All amounts due from the Borrower under a Finance  Document
     shall be paid:

(a)  without any form of set-off, cross-claim or condition; and

(b)  free  and  clear of any tax  deduction  except a tax  deduction  which  the
     Borrower is required by law to make.

22.2 Grossing-up  for taxes.  If the  Borrower  is required by law to make a tax
     deduction from any payment:

(a)  the  Borrower  shall  notify the Agent as soon as it  becomes  aware of the
     requirement;

(b)  the  Borrower  shall  pay  the tax  deducted  to the  appropriate  taxation
     authority promptly, and in any event before any fine or penalty arises;

(c)  the amount due in respect of the payment  shall be  increased by the amount
     necessary to ensure that each  Creditor  Party  receives and retains  (free
     from any liability relating to the tax deduction) a net amount which, after
     the tax  deduction,  is equal to the full amount  which it would  otherwise
     have received.

22.3 Evidence  of  payment  of  taxes.  Within  1  month  after  making  any tax
     deduction,  the Borrower  concerned shall deliver to the Agent  documentary
     evidence  satisfactory  to the  Agent  that  the tax had  been  paid to the
     appropriate taxation authority.

22.4 Exclusion of tax on overall net income.  In this Clause 22 "tax  deduction"
     means any  deduction  or  withholding  for or on account of any  present or
     future tax except tax on a Creditor Party's overall net income.

22.5 Application to the Master Agreements. For the avoidance of doubt, Clause 22
     does not  apply in  respect  of sums due from the  Borrower  to a Swap Bank
     under or in connection with the Master Agreement to which that Swap Bank is
     a party as to which sums the  provisions  of  section  2(d)  (Deduction  or
     Withholding for Tax) of that Master Agreement shall apply.

23   ILLEGALITY, ETC

23.1 Illegality.  This  Clause 23 applies if a Lender (the  "Notifying  Lender")
     notifies the Agent that it has become, or will with effect from a specified
     date, become:

(a)  unlawful or  prohibited  as a result of the  introduction  of a new law, an
     amendment to an existing law or a change in the manner in which an existing
     law is or will be interpreted or applied; or

(b)  contrary to, or inconsistent with, any regulation,

     for  the  Notifying  Lender  to  maintain  or  give  effect  to  any of its
     obligations  under  this  Agreement  in the  manner  contemplated  by  this
     Agreement.

23.2 Notification  of illegality.  The Agent shall promptly notify the Borrower,
     the Security  Parties,  the Security  Trustee and the other  Lenders of the
     notice  under  Clause  23.1  which the Agent  receives  from the  Notifying
     Lender.

23.3 Prepayment;  termination of Commitment. On the Agent notifying the Borrower
     under Clause 23.2, the Notifying Lender's  Commitment shall terminate;  and
     thereupon or, if later,  on the date  specified in the  Notifying  Lender's
     notice  under  Clause  23.1 as the date on which the  notified  event would
     become   effective  the  Borrower  shall  prepay  the  Notifying   Lender's
     Contribution in accordance with Clause 8.

23.4 Mitigation.  If  circumstances  arise which would result in a  notification
     under  Clause  23.1  then,  without in any way  limiting  the rights of the
     Notifying  Lender  under  Clause  23.3,  the  Notifying  Lender  shall  use
     reasonable  endeavours to transfer its obligations,  liabilities and rights
     under  this  Agreement  and the  Finance  Documents  to  another  office or
     financial  institution not affected by the  circumstances but the Notifying
     Lender shall not be under any obligation to take any such action if, in its
     opinion, to do would or might:

(a)  have an adverse effect on its business,  operations or financial condition;
     or

(b)  involve it in any activity  which is unlawful or prohibited or any activity
     that is contrary to, or inconsistent with, any regulation; or

(c)  involve it in any expense (unless  indemnified to its  satisfaction) or tax
     disadvantage.

24   INCREASED COSTS

24.1 Increased  costs.  This  Clause  24  applies  if a Lender  (the  "Notifying
     Lender")  notifies the Agent that the Notifying  Lender considers that as a
     result of:

(a)  the introduction or alteration after the date of this Agreement of a law or
     regulation or an alteration  after the date of this Agreement in the manner
     in which a law or regulation is  interpreted or applied  (disregarding  any
     effect which relates to the application to payments under this Agreement of
     a tax on the Notifying Lender's overall net income); or

(b)  the effect of complying  with any law or  regulation  (including  any which
     relates to capital  adequacy or  liquidity  controls  or which  affects the
     manner in which the Notifying  Lender  allocates  capital  resources to its
     obligations under this Agreement (including,  without limitation,  any laws
     or regulations  which shall replace,  amend and/or supplement those set out
     in  the  statement  of the  Basle  Committee  on  Banking  Regulations  and
     Supervisory   Practices   dated  July  1988  and  entitled   "International
     Convergence  of  Capital  Management  and  Capital  Structures"))  which is
     introduced,  or altered,  or the  interpretation or application of which is
     altered, after the date of this Agreement,

     is that the  Notifying  Lender (or a parent  company of it) has incurred or
     will incur an "increased cost", that is to say:

     (i)  an  additional  or  increased  cost  incurred  as a result  of,  or in
          connection  with, the Notifying Lender having entered into, or being a
          party to,  this  Agreement  or a Transfer  Certificate,  of funding or
          maintaining   its  Commitment  or   Contribution   or  performing  its
          obligations under this Agreement,  or of having outstanding all or any
          part of its Contribution or other unpaid sums; or

     (ii) a reduction in the amount of any payment to the Notifying Lender under
          this  Agreement  or in the  effective  return  which  such  a  payment
          represents to the Notifying Lender or on its capital;

    (iii) an additional or increased cost of funding all or maintaining  all or
          any of the  advances  comprised  in a class of  advances  farmed by or
          including  the  Notifying  Lender's  Contribution  or (as the ease may
          require) the proportion of that cost attributable to the Contribution;
          or

     (iv) a  liability  to  make a  payment,  or a  return  foregone,  which  is
          calculated  by reference to any amounts  received or receivable by the
          Notifying Lender under this Agreement;

     but not an item  attributable to a change in the rate of tax on the overall
     net income of the Notifying  Lender (or a parent  company of it) or an item
     covered by the indemnity for tax in Clause 21.1 or by Clause 22.

     For the purposes of this Clause 24.1 the Notifying Lender may in good faith
     allocate or spread costs and/or losses among its assets and liabilities (or
     any class thereof) on such basis as it considers appropriate.

24.2 Notification  to Borrower  of claim for  increased  costs.  The Agent shall
     promptly  notify the Borrower and the Security  Parties of the notice which
     the Agent received from the Notifying Lender under Clause 24.1.

24.3 Payment of increased costs. The Borrower shall pay to the Agent, at the end
     of any Interest Period during which the Agent makes demand, for the account
     of the  Notifying  Lender,  the  amounts  which the Agent from time to time
     notifies  the  Borrower  that the  Notifying  Lender  has  specified  to be
     necessary to compensate the Notifying Lender for the increased cost.

24.4 Notice of  prepayment.  If the  Borrower  is not  willing  to  continue  to
     compensate  the Notifying  Lender for the increased cost under Clause 24.3,
     the  Borrower  may give the  Agent  not less  than 14 days'  notice  of its
     intention to prepay the Notifying  Lender's  Contribution  at the end of an
     Interest Period.

24.5 Prepayment;  termination of Commitment. A notice under Clause 24.4 shall be
     irrevocable;  the Agent shall promptly  notify the Notifying  Lender of the
     Borrower's notice of intended prepayment; and:

(a)  on the date on which the Agent serves that notice,  the  Commitment  of the
     Notifying Lender shall be cancelled; and

(b)  on the date  specified in its notice of intended  prepayment,  the Borrower
     shall  prepay   (without   premium  or  penalty)  the  Notifying   Lender's
     Contribution, together with accrued interest thereon at the applicable rate
     plus the applicable Margin and the Mandatory Cost (if any).

24.6 Application  of  prepayment.  Clause  8  shall  apply  in  relation  to the
     prepayment.

25   SET-OFF

25.1 Application  of credit  balances.  Each  Creditor  Party may without  prior
     notice:

(a)  apply any balance (whether or not then due) which at any time stands to the
     credit of any  account  in the name of the  Borrower  at any  office in any
     country of that Creditor Party in or towards  satisfaction  of any sum then
     due from the  Borrower  to that  Creditor  Party  under any of the  Finance
     Documents; and

(b)  for that purpose:

     (i)  break,  or alter the  maturity of, all or any part of a deposit of the
          Borrower;

     (ii) convert  or  translate  all or any part of a deposit  or other  credit
          balance into Dollars;

    (iii) enter into any other transaction or make any entry with regard to the
          credit   balance  which  the  Creditor   Party   concerned   considers
          appropriate.

25.2 Existing rights unaffected.  No Creditor Party shall be obliged to exercise
     any of its rights  under  Clause  25.1;  and those  rights shall be without
     prejudice and in addition to any right of set-off, combination of accounts,
     charge, lien or other right or remedy to which a Creditor Party is entitled
     (whether under the general law or any document).

25.3 Sums  deemed due to a Lender.  For the  purposes  of this  Clause 25, a sum
     payable  by  the  Borrower  to  the  Agent  or  the  Security  Trustee  for
     distribution  to, or for the account of, a Lender shall be treated as a sum
     due to that Lender;  and each  Lender's  proportion of a sum so payable for
     distribution  to, or for the account of, the Lenders  shall be treated as a
     sum due to such Lender.

26   TRANSFERS AND CHANGES IN LENDING OFFICES

26.1 Transfer by  Borrower.  The  Borrower  may not,  without the consent of the
     Agent, given on the instructions of all the Lenders:

(a)  transfer any of its rights or obligations under any Finance Document; or

(b)  enter into any merger, de-merger or other reorganisation,  or carry out any
     other act, as a result of which any of its rights or liabilities would vest
     in, or pass to, another person.

26.2 Transfer by a Lender.  Subject to Clause  26.5,  a Lender (the  "Transferor
     Lender") may at any time,  after  consultation  with the Borrower (and with
     the consent of the Lead Bookrunner and the Joint Bookrunner), cause:

(a)  its rights in respect of all or part of its Contribution; or

(b)  its obligations in respect of all or part of its Commitment; or

(c)  a combination of (a) and (b)

     to be (in the case of its  rights)  transferred  to, or (in the case of its
     obligations)  assumed by,  another bank or financial  institution  which is
     experienced in ship financing (a "Transferee  Lender") by delivering to the
     Agent a  completed  certificate  in the form set out in Schedule 4 with any
     modifications approved or required by the Agent (a "Transfer  Certificate")
     executed by the Transferor Lender and the Transferee Lender.

     However any rights and obligations of the Transferor Lender in its capacity
     as Agent or  Security  Trustee  will have to be dealt  with  separately  in
     accordance with the Agency and Trust Deed.

26.3 Transfer  Certificate,  delivery and  notification.  As soon as  reasonably
     practicable  after a Transfer  Certificate  is delivered  to the Agent,  it
     shall (unless it has reason to believe that the Transfer Certificate may be
     defective):

(a)  sign the  Transfer  Certificate  on behalf of  itself,  the  Borrower,  the
     Security Parties, the Security Trustee and each of the Lenders;

(b)  on behalf of the Transferee Lender,  send to the Borrower and each Security
     Party  letters or faxes  notifying  them of the  Transfer  Certificate  and
     attaching a copy of it;

(c)  send to the  Transferee  Lender  copies of the  letters or faxes sent under
     paragraph (b) above.

26.4 Effective  Date of Transfer  Certificate.  A Transfer  Certificate  becomes
     effective on the date, if any, specified in the Transfer Certificate as its
     effective date Provided that it is signed by the Agent under Clause 26.3 on
     or before that date.

26.5 No transfer without Transfer Certificate.  No assignment or transfer of any
     right or obligation  of a Lender under any Finance  Document is binding on,
     or effective in relation to, the Borrower, any Security Party, the Agent or
     the Security  Trustee  unless it is  effected,  evidenced or perfected by a
     Transfer Certificate.

26.6 Lender  re-organisation;  waiver of  Transfer  Certificate.  However,  if a
     Lender  enters  into any merger,  de-merger  or other  reorganisation  as a
     result of which all its rights or  obligations  vest in another person (the
     "successor"), the successor shall automatically and without any further act
     being necessary  become a Lender with the same Commitment and  Contribution
     as were held by the predecessor Lender.

26.7 Effect of Transfer  Certificate.  A Transfer  Certificate  takes  effect in
     accordance with English law as follows:

(a)  to the  extent  specified  in the  Transfer  Certificate,  all  rights  and
     interests  (present,  future or contingent) which the Transferor Lender has
     under or by virtue of the Finance  Documents are assigned to the Transferee
     Lender absolutely, free of any defects in the Transferor Lender's title and
     of any rights or  equities  which the  Borrower or any  Security  Party had
     against the Transferor Lender;

(b)  the Transferor Lender's Commitment is discharged to the extent specified in
     the Transfer Certificate;

(c)  the  Transferee  Lender becomes a Lender with the  Contribution  previously
     held  by the  Transferor  Lender  (or the  part  thereof  specified  in the
     Transfer  Certificate)  and a  Commitment  of an  amount  specified  in the
     Transfer Certificate;

(d)  the  Transferee  Lender  becomes bound by all the provisions of the Finance
     Documents  which are applicable to the Lenders  generally,  including those
     about  pro-rata  sharing and the exclusion of Liability on the part of, and
     the  indemnification  of, the Agent and the  Security  Trustee  and, to the
     extent that the Transferee  Lender becomes bound by those provisions (other
     than those  relating to  exclusion of  liability),  the  Transferor  Lender
     ceases to be bound by them;

(e)  any part of the  Loan  which  the  Transferee  Lender  advances  after  the
     Transfer  Certificate's  effective  date  ranks in point  of  priority  and
     security  in the same way as it would have  ranked had it been  advanced by
     the transferor, assuming that any defects in the transferor's title and any
     rights or  equities  of the  Borrower  or any  Security  Party  against the
     Transferor Lender had not existed;

(f)  the Transferee  Lender becomes entitled to all the rights under the Finance
     Documents which are applicable to the Lenders generally,  including but not
     limited to those  relating to the  Majority  Lenders and those under Clause
     5.7 and Clause 20, and to the extent  that the  Transferee  Lender  becomes
     entitled to such rights,  the  Transferor  Lender  ceases to be entitled to
     them; and

(g)  in respect of any breach of a  warranty,  undertaking,  condition  or other
     provision  of a  Finance  Document  or any  misrepesentation  made in or in
     connection with a Finance Document, the Transferee Lender shall be entitled
     to recover  damages by reference to the loss  incurred by it as a result of
     the  breach or  misrepresentation,  irrespective  of whether  the  original
     Lender would have incurred a loss of that kind or amount.

     The rights and equities of the Borrower or any Security  Party  referred to
     above  include,  but are not limited to, any right of set off and any other
     kind of cross-claim.

26.8 Maintenance  of register of Lenders.  During the Security  Period the Agent
     shall  maintain a register in which it shall  record the name,  Commitment,
     Contribution and administrative details (including the lending office) from
     time  to time  of  each  Lender  holding  a  Transfer  Certificate  and the
     effective   date  (in   accordance   with  Clause  26.4)  of  the  Transfer
     Certificate; and the Agent shall make the register available for inspection
     by any Lender,  the Security Trustee and the Borrower during normal banking
     hours, subject to receiving at least 5 Business Days prior notice.

26.9 Reliance on register of Lenders. The entries on that register shall, in the
     absence of manifest  error,  be conclusive in determining the identities of
     the Lenders and the amounts of their  Commitments and Contributions and the
     effective  dates of  Transfer  Certificates  and may be relied  upon by the
     Agent and the other  parties  to the  Finance  Documents  for all  purposes
     relating to the Finance Documents.

26.10 Authorisation of Agent to sign Transfer  Certificates.  The Borrower,  the
     Security  Trustee and each Lender  irrevocably  authorise the Agent to sign
     Transfer Certificates on its behalf.

26.11 Registration fee. In respect of any Transfer Certificate,  the Agent shall
     be entitled  to recover a  registration  fee of $2,000 from the  Transferor
     Lender or (at the Agent's option) the Transferee Lender.

26.12 Sub-participation;  subrogation  assignment.  A Lender may sub-participate
     all or any part of its rights  and/or  obligations  under or in  connection
     with the  Finance  Documents  without the consent of, or any notice to, the
     Borrower,  any Security Party, the Agent or the Security  Trustee;  and the
     Lenders may assign, in any manner and terms agreed by the Majority Lenders,
     the Agent and the Security  Trustee,  all or any part of those rights to an
     insurer or surety who has become subrogated to them.

26.13 Disclosure of information. A Lender may disclose to a potential Transferee
     Lender or sub-participant  any information which the Lender has received in
     relation to the Borrower,  any Security  Party or their affairs under or in
     connection with any Finance Document,  unless the information is clearly of
     a confidential nature.

26.14 Change of lending office. A Lender may change its lending office by giving
     notice to the Agent and the change shall become effective on the later of:

(a)  the date on which the Agent receives the notice; and

(b)  the date,  if any,  specified in the notice as the date on which the change
     will come into effect.

26.15 Notification.  On  receiving  such a notice,  the Agent  shall  notify the
     Borrower and the Security  Trustee;  and,  until the Agent  receives such a
     notice,  it shall be entitled to assume that a Lender is acting through the
     lending office of which the Agent last had notice.

26.16 Replacement  of Reference  Bank. If a Reference Bank ceases to be a Lender
     or is unable on a continuing basis to supply quotations for the purposes of
     Clause 5 above  then,  unless  the  Borrower,  the Agent  and the  Majority
     Lenders  otherwise  agree,  the Agent,  acting on the  instructions  of the
     Majority Lenders, and after consulting the Borrower,  shall appoint another
     bank (whether or not a Lender) to be a  replacement  Reference  Bank;  and,
     when that  appointment  comes into effect,  the  first-mentioned  Reference
     Bank's appointment shall cease to be effective.

27   VARIATIONS AND WAIVERS

27.1 Variations,  waivers  etc. by Majority  Lenders.  Subject to Clause 27.2, a
     document shall be effective to vary, waive,  suspend or limit any provision
     of a Finance  Document,  or any Creditor  Party's  rights or remedies under
     such a provision  or the general law,  only if the  document is signed,  or
     specifically  agreed to by fax, by the Borrower,  by the Agent on behalf of
     the Majority  Lenders,  by the Agent and the Security  Trustee in their own
     rights,  and,  if the  document  relates to a Finance  Document  to which a
     Security Party is party, by that Security Party.

27.2 Variations,  waivers etc. requiring  agreement of all Lenders.  However, as
     regards the following, Clause 27.1 applies as if the words "by the Agent on
     behalf of the Majority Lenders" were replaced by the words "by or on behalf
     of every Lender and the Swap Bank":

(a)  a change in the Margin or in the definition of LIBOR;

(b)  a change to the date for,  or the  amount of,  any  payment  of  principal,
     interest, fees, or other sum payable under this Agreement;

(c)  a change to any Lender's Commitment;

(d)  an extension of the Availability Period;

(e)  a change to the definition of "Majority Lenders" or "Finance Documents";

(f)  a change to the preamble or to Clause 2, 3, 4, 5.1, 8.1, 8.2, 17, 18, 19 or
     30;

(g)  a change to this Clause 27;

(h)  any release of, or material variation to, a Security  Interest,  guarantee,
     indemnity or subordination arrangement set out in a Finance Document; and

(i)  any other  change or matter as  regards  which  this  Agreement  or another
     Finance Document expressly provides that each Lender's consent is required.

27.3 Exclusion  of other or implied  variations.  Except  for a  document  which
     satisfies the  requirements  of Clauses 27.1 and 27.2, no document,  and no
     act, course of conduct, failure or neglect to act, delay or acquiescence on
     the part of the  Creditor  Parties or any of them (or any person  acting on
     behalf of any of them) shall result in the Creditor  Parties or any of them
     (or any person acting on behalf of any of them) being taken to have varied,
     waived,   suspended  or  limited,   or  being  precluded   (permanently  or
     temporarily) from enforcing, relying on or exercising:

(a)  a provision of this Agreement or another Finance Document; or

(b)  an Event of Default; or

(c)  a breach by the  Borrower  or a  Security  Party of an  obligation  under a
     Finance Document or the general law; or

(d)  any right or remedy  conferred  by any  Finance  Document or by the general
     law;

     and there  shall  not be  implied  into any  Finance  Document  any term or
     condition  requiring  any such  provision to be enforced,  or such right or
     remedy to be exercised, within a certain or reasonable time.

28   NOTICES

28.1 General.  Unless otherwise  specifically  provided,  any notice under or in
     connection with any Finance Document shall be given by registered letter or
     fax; and references in the Finance Documents to written notices, notices in
     writing  and  notices  signed  by  particular  persons  shall be  construed
     accordingly.

28.2 Addresses for communications. A notice shall be sent:

(a)  to the Borrower:        Omega Building
                             80 Kifissias Avenue
                             151 25 Maroussi
                             Athens
                             Greece
                             Fax No: +(30) 210 809 0575
                             Attn: the Chief Financial Officer

(b)  to a Lender:            At the address opposite its name in Part A of
                             Schedule 1 or (as the case may  require) in
                             the relevant Transfer Certificate.

(c)  to a Swap Bank:         At the address opposite its name in Part B of
                             Schedule 1

(d)  to the Agent and        HSH Nordbank AG
     the Security Trustee:   Gerhart-Hauptmann-Platz 50
                             D-20095 Hamburg
                             Germany
                             Fax No: +(49) 40 33 33 34 118
                             Attn: Shipping, Greek Clients

     or to such other address as the relevant  party may notify the Agent or, if
     the relevant party is the Agent or the Security Trustee, the Borrower,  the
     Lenders, the Swap Banks and the Security Parties.

28.3 Effective date of notices. Subject to Clauses 28.4 and 28.5:

(a)  a notice which is delivered  personally  shall be deemed to be served,  and
     shall take effect, at the time when it is delivered;

(b)  a notice  which is  delivered  by  registered  letter shall be deemed to be
     served, and shall take effect, 5 Business Days after being deposited in the
     post  postage  prepaid  in an  envelope  addressed  to it at  the  relevant
     address; and

(c)  a notice which is sent by fax shall be deemed to be served,  and shall take
     effect, 2 hours after its transmission is completed.

28.4 Service  outside  business  hours.  However,  if under Clause 28.3 a notice
     would be deemed to be served:

(a)  on a day which is not a business day in the place of receipt; or

(b)  on such a business day, but after 5 p.m. local time;

     the notice shall (subject to Clause 28.5) be deemed to be served, and shall
     take effect, at 9 a.m. on the next day which is such a business day.

28.5 Illegible notices. Clauses 28.3 and 28.4 do not apply if the recipient of a
     notice  notifies  the  sender  within  one hour after the time at which the
     notice  would  otherwise  be deemed to be served  that the  notice has been
     received in a form which is illegible in a material respect.

28.6 Valid  notices.  A notice under or in  connection  with a Finance  Document
     shall not be invalid by reason  that its  contents or the manner of serving
     it do not  comply  with  the  requirements  of  this  Agreement  or,  where
     appropriate, any other Finance Document under which it is served if:

(a)  the  failure  to  serve it in  accordance  with  the  requirements  of this
     Agreement or other Finance Document, as the case may be, has not caused any
     party to suffer any significant loss or prejudice; or

(b)  in the case of incorrect and/or  incomplete  contents,  it should have been
     reasonably  clear to the  party on which the  notice  was  served  what the
     correct or missing particulars should have been.

28.7 English language. Any notice under or in connection with a Finance Document
     shall be in English.

28.8 Meaning of "notice". In this Clause "notice" includes any demand,  consent,
     authorisation, approval, instruction, waiver or other communication.

28.9 Electronic communication

(a)  Any  communication to be made between the Agent or the Security Trustee and
     a Lender or a Swap Bank under or in connection  with the Finance  Documents
     may be made by electronic mail or other electronic means, if the Agent, the
     Security  Trustee  and the  relevant  Lender  or,  as the case may be,  the
     relevant Swap Bank:

     (i)  agree that,  unless and until notified to the contrary,  this is to be
          an accepted form of communication;

     (ii) notify each other in writing of their  electronic  mail address and/or
          any other  information  required  to enable the sending and receipt of
          information by that means; and

     (iii) notify  each other of any  change to their  address or any other such
          information supplied by them.

(b)  Any  electronic  communication  made  between the Agent and a Lender or the
     Swap Bank or the  Security  Trustee will be  effective  only when  actually
     received in readable form and in the case of any  electronic  communication
     made by a Lender or the Swap Bank to the Agent or the Security Trustee only
     if it is addressed in such a manner as the Agent or Security  Trustee shall
     specify for this purpose.

29   SUPPLEMENTAL

29.1 Rights cumulative, non-exclusive. The rights and remedies which the Finance
     Documents give to each Creditor Party are:

(a)  cumulative;

(b)  may be exercised as often as appears expedient; and

(c)  shall not, unless a Finance Document explicitly and specifically states so,
     be taken to exclude or limit any right or remedy conferred by any law.

29.2 Severability  of provisions.  If any provision of a Finance  Document is or
     subsequently becomes void,  unenforceable or illegal, that shall not affect
     the validity,  enforceability  or legality of the other  provisions of that
     Finance Document or of the provisions of any other Finance Document.

29.3 Third party  rights.  A person who is not a party to this  Agreement has no
     right under the Contracts  (Rights of Third Parties) Act 1999 to enforce or
     to enjoy the benefit of any term of this Agreement.

29.4 Counterparts.  A  Finance  Document  may  be  executed  in  any  number  of
     counterparts.

30   LAW AND JURISDICTION

30.1 English  law.  This  Agreement  shall be  governed  by,  and  construed  in
     accordance with, English law.

30.2 Exclusive  English  jurisdiction.  Subject  to Clause  30.3,  the courts of
     England shall have exclusive  jurisdiction to settle any disputes which may
     arise out of or in connection with this Agreement.

30.3 Choice of forum for the exclusive benefit of the Creditor  Parties.  Clause
     30.2 is for the exclusive  benefit of the Creditor  Parties,  each of which
     reserves the right:

(a)  to commence proceedings in relation to any matter which arises out of or in
     connection  with this  Agreement  in the courts of any  country  other than
     England and which have or claim jurisdiction to that matter; and

(b)  to commence such proceedings in the courts of any such country or countries
     concurrently  with or in  addition  to  proceedings  in  England or without
     commencing proceedings in England.

     The Borrower  shall not commence any  proceedings in any country other than
     England in relation to a matter which arises out of or in  connection  with
     this Agreement.

30.4 Process agent. The Borrower irrevocably appoints Ince & Co. at their office
     for the time being,  presently at  International  House, 1 St.  Katharine's
     Way, London El W IUN, England, to act as its agent to receive and accept on
     its behalf any process or other document relating to any proceedings in the
     English courts which are connected with this Agreement.

30.5 Creditor Party rights  unaffected.  Nothing in this Clause 30 shall exclude
     or limit any right which any Creditor Party may have (whether under the law
     of any country,  an  international  convention or otherwise) with regard to
     the bringing of  proceedings,  the service of process,  the  recognition or
     enforcement  of a  judgment  or  any  similar  or  related  matter  in  any
     jurisdiction.

30.6 Meaning  of  "proceedings".   In  this  Clause  30,   "proceedings"   means
     proceedings  of any kind,  including an  application  for a provisional  or
     protective measure.

AS WITNESS the hands of the duly authorised officers or attorneys of the parties
the day and year first before written.

<PAGE>

                                   SCHEDULE 1

                                     PART A

                             LENDERS AND COMMITMENTS

<TABLE>
<CAPTION>

Lender                     Lending Office                Term Loan      Credit Facility
                                                         Commitment       Commitment
                                                        (US Dollars)     (US Dollars)
<S>                        <C>                           <C>             <C>
HSH Nordbank AG            Gerhart-Hauptmann-Platz 50      [   ]             [   ]
                           D-20095 Hamburg
                           Germany

The Governor and Company   11 Earl Grey Street             [   ]             [   ]
of the Bank of Scotland    Edinburgh EH3 9BN
                           Scotland
</TABLE>

                                     PART B

                                   SWAP BANKS

HSH Nordbank AG               Martensdamm 6
                              D-24103 Kiel
                              Germany

HBOS Treasury Services Plc    33 Old Broad Street
                              London EC2N 1HZ
                              England

<PAGE>

                                   SCHEDULE 2

                           DETAILS OF SHIPS AND OWNERS

                                     PART A

                      DETAILS OF EXISTING SHIPS AND OWNERS

1    Name of Ship:                 "STRIGGLA"

     Flag:                         Malta

     Official Number:              5809

     Class Society and notation:   Nippon Kaiji Kyokai: NS* (Bulk Carrier,
                                   Strengthened for Heavy Cargoes, Nos. 2, 4 & 6
                                   Holds may be empty) (ESP) MNS*

     Owner:                        Helium Shipping Company Limited

2    Name of Ship:                 "MOSTOLES"

     Flag:                         Malta

     Official Number:              5886

     Class Society and notation:   Det Norske Veritas: +1A1, Bulk Carrier, ESP,
                                   HC-E EO

     Owner:                        Hydrogen Shipping Company Limited

3    Name of Ship:                 "FLECHA"

     Flag:                         Malta

     Official Number:              6835

     Class Society and notation:   Bureau Veritas: I + HULL + MACH, Bulk Carrier
                                   ESP, Ore Carrier ESP, Unrestricted Navigation

     Owner:                        Silicon Shipping Company Limited

4    Name of Ship:                 "SHIBUMI"

     Flag:                         Malta

     Official Number:              7028

     Class Society and notation:   Bureau Veritas: I + HULL + MACH, Bulk Carrier
                                   ESP, Unrestricted Navigation, + AUT-UMS

     Owner:                        Oxygen Shipping Company Limited

5    Name of Ship:                 "LACERTA"

     Flag:                         Malta

     Official Number:              7121

     Class Society and notation:   Bureau Veritas: I + HULL + MACH, Bulk Carrier
                                   ESP Heavy Cargo, Nonhomload (Holds 2, 4, 6
                                   may be empty), Unrestricted Navigation

     Owner:                        Annapolis Shipping Company Limited

6    Name of Ship:                 "PANORMOS"

     Flag:                         Malta

     Official Number:              8491

     Class Society and notation:   Nippon Kaiji Kyokai: NS* (Bulk Carrier,
                                   Strengthened for Heavy Cargoes, Nos. 2, 4 & 6
                                   Holds may be empty) (ESP) MNS*

     Owner:                        Blueberry Shipping Company Limited

7    Name of Ship:                 "MATIRA"

     Flag:                         Malta

     Official Number:              8966

     Class Society and notation:   Nippon Kaiji Kyokai: NS* (Bulk Carrier,
                                   Strengthened for Heavy Cargoes, Nos. 2 & 4
                                   Holds may be empty) (ESP) MNS*

     Owner:                        Lancat Shipping Company Limited

8    Name of Ship:                 "TONGA"

     Flag:                         Malta

     Official Number:              8251

     Class Society and notation:   ABS: +A1, Bulk Carrier, E, +AMS

     Owner:                        Tolan Shipping Company Limited

9    Name of Ship:                 "CORONADO"

     Flag:                         Malta

     Official Number:              8703

     Class Society and notation:   Bureau Veritas: I + HULL + MACH, Bulk Carrier
                                   ESP, Nonhomload (Holds 2-4-6 may be empty),
                                   Unrestricted Navigation, MON-SHAFT, + AUT-UMS

     Owner:                        Malvina Shipping Company Limited

10   Name of Ship:                 "XANADU"

     Flag:                         Malta

     Official Number:              9479

     Class Society and notation:   Nippon Kaiji Kyokai: NS* (Bulk Carrier,
                                   Strengthened for Heavy Cargoes, Nos. 2, 4 & 6
                                   Holds may be empty) (ESP) MNS*

     Owner:                        Arleta Navigation Company Limited

11   Name of Ship:                 "LA JOLLA"

     Flag:                         Malta

     Official Number:              9503

     Class Society and notation:   Nippon Kaiji Kyokai: NS* (Bulk Carrier,
                                   Strengthened for Heavy Cargoes, Nos. 2, 4 & 6
                                   Holds may be empty) (ESP) MNS*

     Owner:                        Selma Shipping Company Limited

12   Name of Ship:                 "NETADOLA"

     Flag:                         Malta

     Official Number:              9537

     Class Society and notation:   Nippon Kaiji Kyokai: NS* (Bulk Carrier,
                                   Strengthened for Heavy Cargoes, Nos. 2, 4, 6
                                   & 8 Holds may be empty) (ESP) MNS*

     Owner:                        Royerton Shipping Company Limited

13   Name of Ship:                 "OCEAN CRYSTAL"

     Flag:                         Malta

     Official Number:              9092

     Class Society and notation:   Nippon Kaiji Kyokai: NS* (Bulk Carrier,
                                   Strengthened for Heavy Cargoes, Nos. 2, 4 & 6
                                   Holds may be empty) (ESP) MNS*

     Owner:                        Samsara Shipping Company Limited

14   Name of Ship:                 "PARAGON"

     Flag:                         Malta

     Official Number:              9093

     Class Society and notation:   Nippon Kaiji Kyokai: NS* (Bulk Carrier,
                                   Strengthened for Heavy Cargoes, Nos. 2, 4 & 6
                                   Holds may be empty) (ESP) MNS*

     Owner:                        Lansat Shipping Company Limited

15   Name of Ship:                 "TORO"

     Flag:                         Malta

     Official Number:              9131

     Class Society and notation:   Lloyd's Register: +100A1, Bulk Carrier,
                                   Strengthened for heavy cargoes, Nos. 2, 4 & 6
                                   holds may be empty, ESP, *IWS, ESN-Hold 1,
                                   +LMC, UMS

     Owner:                        Farat Shipping Company Limited

16   Name of Ship:                 "ALONA"

     Flag:                         Malta

     Official Number:              7706

     Class Society and notation:   Det Norske Veritas: +1A1, Bulk Carrier, ESP,
                                   HC-E EO DK(+) HA(+) IB(+), Holds (2, 4 or 3)
                                   may be empty

     Owner:                        Madras Shipping Company Limited

17   Name of Ship:                 "IGUANA"

     Flag:                         Malta

     Official Number:              9062

     Class Society and notation:   Nippon Kaiji Kyokai: NS* (Bulk Carrier,
                                   Strengthened for Heavy Cargoes, Nos. 2, 4 & 6
                                   Holds may be empty) (ESP) MNS*

     Owner:                        Iguana Shipping Company Limited

18   Name of Ship:                 "CATALINA"

     Flag:                         Malta

     Official Number:              9544

     Class Society and notation:   ABS: +Al, Bulk Carrier, E, +AMS, +ACCU, SH,
                                   HCS, SHCM

     Owner:                        Borsari Shipping Company Limited

19   Name of Ship:                 "BELMONTE"

     Flag:                         Malta

     Official Number:              9560

     Class Society and notation:   Germanischer Lloyd: Hull: +100A5, ESP IW
                                   C1D11, Bulk Carrier - Machinery: +MC AUT

     Owner:                        Onil Shipping Company Limited

20   Name of Ship:                 "WAIKIKI"

     Flag:                         Malta

     Official Number:              4936

     Class Society and notation:   Bureau Veritas: I + HULL + MACH, Bulk
                                   Carrier ESP, Nonhomload (Holds 2-4-6 may be
                                   empty) Heavycargo, Unrestricted Navigation,
                                   + AUT-UMS; MON-SHAFT; INWATERSURVEY;
                                   GRABLOADING

     Owner:                        Zatac Shipping Company Limited

21   Name of Ship:                 "ALAMEDA"

     Flag:                         Malta

     Official Number:              9549

     Class Society and notation:   Lloyd's Register: +100AI, Bulk Carrier,
                                   Strengthened for heavy cargoes, Nos. 2, 4, 6
                                   & 8 holds may be empty, ESP, *IWS, LI, ESN,
                                   ShipRight (SDA, FDA, CM), +LMC, UMS

     Owner:                        Fabiana Navigation Company Limited

22   Name of Ship:                 "LANIKAI"

     Flag:                         Malta

     Official Number:              9480

     Class Society and notation:   Det Norske Veritas: +1A1, Bulk Carrier, ESP,
                                   HC-E E0

     Owner:                        Fago Shipping Company Limited

23   Name of Ship:                 "LINDA OLDENDORFF"

     Flag:                         Malta

     Official Number:              9489

     Class Society and notation:   Lloyd's Register: 100A1, Bulk Carrier,
                                   Strengthened for heavy cargoes, Nos. 2, 4, 6
                                   or No. 4 holds may be empty, ESP, LI,
                                   ESN-Hold 1, LMC, UMS

     Owner:                        Felicia Navigation Company Limited

24   Name of Ship:                 "DAYTONA"

     Flag:                         Malta

     Official Number:              6534

     Class Society and notation:   Bureau Veritas: I + HULL + MACH, Bulk Carrier
                                   ESP -heavycargo, -nonhomload, Unrestricted
                                   Navigation, + AUT-UMS

     Owner:                        Platan Shipping Company Limited

25   Name of Ship:                 "SONOMA"

     Flag:                         Malta

     Official Number:              9576

     Class Society and notation:   China  Classification   Society:  *CSA  Bulk
                                   Carrier,  CCSS, Strengthened  for Heavy
                                   Cargoes  Holds,  Nos. 2, 4 & 6 may be empty,
                                   Hold No.4 may be Ballast Hold, ESP, Loading
                                   Computer S.I.G - *CSM AUT-O, CMS

     Owner:                        Karmen Shipping Company Limited

26   Name of Ship:                 "MANASOTA"

     Flag:                         Malta

     Official Number:              9546

     Class Society and notation:   Det Norske Veritas: +lAl, Bulk Carrier, ESP
                                   ES (S) HC-E, Grain-U EO LCS -SI IB (+), Holds
                                   (2, 4, 6, 8) may be empty, Nauticus
                                   (Newbuilding)

     Owner:                        Thelma Shipping Company Limited

27   Name of Ship:                 "CONRAD OLDENDORFF"

     Flag:                         Malta

     Official Number:              9744

     Class Society and notation:   Nippon Kaiji Kyokai: NS* (Bulk Carrier,
                                   Strengthened for Heavy Cargoes, Nos. 2, 4 & 6
                                   Holds may be empty) (ESP) MNS*

     Owner:                        Celine Shipping Company Limited

<PAGE>

                                     PART B

                      DETAILS OF IDENTIFIED SHIP AND OWNER

28   Name of Ship:                 "HILLE OLDENDORFF"

     Flag:                         Malta/Liberian Bareboat Charter Registry

     Official Number:              9833 (Malta)

     Class Society and notation:   Nippon Kaiji Kyokai: NS* (Bulk Carrier,
                                   Strengthened for Heavy Cargoes, Nos. 2 & 4
                                   Holds may be empty) (ESP) MNS*

     Owner:                        Seaventure Shipping Limited

     Bareboat Charterer:           Catania Shipping Inc.

     Charter Date:                 29 August 2005 (as supplemented and amended)

<PAGE>

                                   SCHEDULE 3

                                 DRAWDOWN NOTICE

To:      HSH Nordbank AG
         Gerhart-Hauptmann-Platz 50
         D-20095 Hamburg
         Germany

Attention:  Loans Administration                                   [      ] 2006

                                 DRAWDOWN NOTICE

1    We refer to the loan agreement (the "Loan  Agreement")  dated 31 March 2006
     and made between  ourselves as Borrower,  the Lenders  referred to therein,
     yourselves  as Agent and as Security  Trustee,  yourselves as Lead Arranger
     and Lead  Bookrunner,  The  Governor and Company of the Bank of Scotland as
     Joint  Bookrunner,  yourselves  and The Governor and Company of the Bank of
     Scotland as Joint  Underwriters  and the Swap Banks  referred to therein in
     connection with term loan and credit  facilities of up to US$110,000,000 in
     aggregate.  Terms defined in the Loan Agreement have their defined meanings
     when used in this Drawdown Notice.

2    We request to borrow an Advance under the [Term Loan] [Credit  Facility] as
     follows:

(a)  Amount of [Advance]: $[    ];

(b)  Drawdown Date: [    ];

(c)  Duration of the first Interest Period shall be [    ] months;

(d)  Payment instructions: account of [   ] and numbered [   ] with[   ]of[   ].

3    We represent and warrant that:

(a)  the representations and warranties in Clause 10 of the Loan Agreement would
     remain true and not  misleading if repeated on the date of this notice with
     reference to the circumstances now existing;

(b)  no Event of Default or  Potential  Event of Default  has  occurred  or will
     result from the borrowing of the Loan.

4    This notice  cannot be revoked  without the prior  consent of the  Majority
     Lenders.

5    [We authorise you to deduct all accrued commitment fee and the drawdown fee
     applicable to the Advance referred to in Clause 20.1 from the amount of the
     Advance].

                               [Name of Signatory]

                       ----------------------------------
                                Attorney-in-Fact
                              for and on behalf of
                                  DRYSHIPS INC.

<PAGE>

                                   SCHEDULE 4
                             REPAYMENT OF TERM LOAN

                                Amount of        Maximum Outstanding
                                 Repayment       Amount of Term Loan
             Repayment Date     Instalment ($)   following repayment

1            31 August 2006      3,147,982.06        94,352,017.94
2            30 November 2006    3,147,982.06        91,204,035.87
3            28 February 2007    2,710,762.33        88,493,273.54
4            31 May 2007         2,710,762.33        85,782,511.21
5            31 August 2007      2,142,376.68        83,640,134.53
6            30 November 2007    2,142,376.68        81,497,757.85
7            29 February 2008    2,142,376.68        79.355,381.17
8            31 May 2008         2,142,376.68        77,213,004.48
9            31 August 2008      2,142,376.68        75,070,627.80
10           30 November 2008    2,142,376.68        72,928,251.12
11           28 February 2009    2,142,376.68        70,785,874.44
12           31 May 2009         2,142,376.68        68,643,497.76
13           31 August 2009      1,836,322.87        66,807,174.89
14           30 November 2009    1,836,322.87        64,970,852.02
15           28 February 2010    1,836,322.87        63,134,529.15
16           31 May 2010         1,836,322.87        61,298,206.28
17           31 August 2010      1,836,322.87        59,461,883.41
18           30 November 2010    1,836,322.87        57,625,560.54
19           28 February 2011    1,836,322.87        55,789,237.67
20           31 May 2011         1,836,322.87        53,952,914.80
21           31 August 2011      1,836,322.87        52,116,591.93
22           30 November 2011    1,836,322.87        50,280,269.06
23           29 February 2012    1,836,322.87        48,443,946.19
24           31 May 2012         1,836,322.87        46,607,623.32
25           31 August 2012      1,836,322.87        44,771,300.45
26           30 November 2012    1,836,322.87        42,934,977.58
27           28 February 2013    1,836,322.87        41,098,654.71
28           31 May 2013         1,836,322.87        39,262,331.84
29           31 August 2013      1,836,322.87        37,426,008.97
30           30 November 2013    1,836,322.87        35,589,686.10
31           28 February 2014    1,836,322.87        33,753,363.23
32           31 May 2014         1,836,322.87        31,917,040.36
33           31 August 2014      1,836,322.87        30,080,717.49
34           30 November 2014    1,836,322.87        28,244,394.62
35           28 February 2015    1,836,322.87        26,408,071.75
36           31 May 2015         1,836,322.87        24,571,748.88
37           31 August 2015      1,836,322.87        22,735,426.01
38           30 November 2015    1,836,322.87        20,899,103.14
39           29 February 2016    1,836,322.87        19,062,780.27
40           31 May 2016         1,836,322.87        17,226,457.40
Balloon
Instalment   31 May 2016        17,226,457.40                    0

<PAGE>

                                   SCHEDULE 5

                          CONDITION PRECEDENT DOCUMENTS

                                     PART A

The following are the documents referred to in Clause 9.1(a).

1    A duly executed original of each of:

(a)  this Agreement;

(b)  the Agency and Trust Deed;

(c)  the Master Agreements,

(d)  the Master Agreement Assignments;

(e)  the Guarantees;

(f)  the Wealth Guarantee;

(g)  the Mortgages,  the Deeds of Covenant and the General Assignments  relative
     to the Existing Ships;

(h)  the Borrower's Accounts Pledge;

(i)  the Existing Ships Earnings Account Pledge;

(j)  the Wealth Account Pledge;

(k)  the Senior Loan Agreement; and

(l)  the Management Agreement Assignments relative to the Existing Ships.

2    Copies of the certificate of incorporation and constitutional  documents of
     the  Borrower  and  each  Owner  of an  Existing  Ship,  the  Owner  of the
     Identified Ship and Wealth.

3    Copies of  resolutions  of the  directors of the Borrower and the directors
     and  shareholders  of each  Owner of an  Existing  Ship,  the  Owner of the
     Identified Ship and Wealth authorising the execution of each of the Finance
     Documents  to which the  Borrower,  that Owner or Wealth is a party and, in
     the  case of (a) the  Borrower,  authorising  named  officers  to give  the
     Drawdown Notices and other notices under this Agreement and (b) Seaventure,
     ratifying the execution of the Hille Oldendorff  Charterparty and the Hille
     Oldendorff MOA.

4    The original of any power of attorney  under which any Finance  Document is
     executed on behalf of the Borrower, an Owner of an Existing Ship, the Owner
     of the Identified Ship or Wealth.

5    Copies of all consents  which the Borrower,  any Owner of an Existing Ship,
     the Owner of the Identified  Ship or Wealth requires to enter into, or make
     any payment under, any Finance Document.

6    The  originals of any mandates or other  documents  required in  connection
     with the opening or  operation of the Debt Service  Reserve  Account,  each
     Earnings Account, the Retention Account and the Wealth Account.

7    Evidence  that an amount of not less than  $5,000,000  is  standing  to the
     credit of the Debt Service Reserve Account.

8    Evidence satisfactory to the Agent that each Owner of an Existing Ship, the
     Owner  of  the  Identified   Ship  and  Wealth  is  a  direct  or  indirect
     wholly-owned subsidiary of the Borrower.

9    Documentary evidence that:

(a)  each Existing Ship is definitively  and permanently  registered in the name
     of its Owner under the Maltese flag;

(b)  each  Existing  Ship is in the absolute and  unencumbered  ownership of its
     Owner save as contemplated by the Finance  Documents to which that Owner is
     a party;

(c)  each  Existing  Ship  maintains  the highest  available  class with Lloyd's
     Register of Ships (or such other first-class  classification  society which
     is a  member  of  IACS  as the  Agent  may  approve)  free  of all  overdue
     recommendations and conditions of such classification society;

(d)  each Mortgage relative to an Existing Ship has been duly registered against
     that  Existing  Ship  as a  valid  first  priority  statutory  mortgage  in
     accordance with the laws of Malta; and

(e)  each  Existing Ship is insured in  accordance  with the  provisions of this
     Agreement and all  requirements  therein in respect of such insurances have
     been complied with.

10   A copy of the  Management  Agreement  and a duly  executed  original of the
     Manager's Undertaking in relation to each Existing Ship.

11   Copies of:

(a)  the document of compliance (DOC) and safety  management  certificate  (SMC)
     referred  to  in  paragraph   (a)  of  the   definition  of  the  ISM  Code
     Documentation in respect of each Existing Ship and the applicable  Approved
     Manager certified as true and in effect by the Owner of such Existing Ship;
     and

(b)  the ISPS Code  Documentation in respect of each Existing Ship and the Owner
     thereof certified as true and in effect by that Owner.

12   Two  valuations  (at  the  cost of the  Borrower)  of  each  Existing  Ship
     addressed to the Agent,  stated to be for the purpose of this Agreement and
     dated not earlier than 15 days before the Drawdown Date for the Refinancing
     Advance, each from an Approved Broker.

13   All  documentation  required  by each  Creditor  Party in  relation  to the
     Borrower and any Security  Party  pursuant to that  Creditor  Party's "know
     your customer" requirements.

14   A compliance  certificate (in the form set out in Schedule 8) demonstrating
     the  compliance  by the  Borrower  (or  not,  as the  case may be) with the
     provisions of Clause 12.4 (such compliance to be determined by reference to
     the audited  annual  consolidated  accounts of the Group for the  Financial
     Year ended 31 December 2005) signed by the chief  financial  officer of the
     Borrower.

15   Documentary  evidence that the agent for service of process named in Clause
     30 has accepted its appointment.

16   Favourable  legal  opinions  from  lawyers  appointed  by the Agent on such
     matters  concerning  the  laws of the  Marshall  Islands,  Malta,  England,
     Germany and such other relevant jurisdictions as the Agent may require.

17   A favourable opinion from an independent insurance consultant acceptable to
     the Agent on such matters  relating to the insurances of the Existing Ships
     as the Agent may require.

18   If the Agent so requires,  in respect of any of the  documents  referred to
     above, a certified English translation prepared by a translator approved by
     the Agent.

                                     PART B

The following are the documents referred to in Clause 9.1(b).

1    A copy of (a) the  Hille  Oldendorff  MOA  and  (b)  the  Hille  Oldendorff
     Seller's  Credit  Agreement  and of all  documents  signed or issued by the
     parties  thereto under or in connection  with the Hille  Oldendorff MOA and
     the Hille Oldendorff Seller's Credit Agreement.

2    Such documentary  evidence as the Lender and its legal advisers may require
     in relation to the due authorisation and execution by Goodwill of the Hille
     Oldendorff  MOA and of all  documents to be executed by Goodwill  under the
     Hille  Oldendorff MOA, and by the Hi11e  Oldendorff  Charterer of the Hille
     Oldendorff  Charterparty  and of all  documents to be executed by the Hille
     Oldendorff Charterer thereunder.

3    A  copy  of  each  of the  Hille  Oldendorff  Charterparty  and  the  Hille
     Oldendorff  Charter  Guarantee  and of all  documents  signed  or issued by
     Seaventure,  Goodwill or the Hille  Oldendorff  Charterer  (or any of them)
     under or in connection with the Hille Oldendorff Charterparty and the Hille
     Oldendorff Charter Guarantee.

4    Copies of the constitutional  documents of the Hille Oldendorff  Charterer,
     together  with  copies  of  resolutions  of  the  directors  of  the  Hille
     Oldendorff  Charterer  authorising  the  execution of the Hille  Oldendorff
     Tripartite  Agreement  and  ratifying  its entry into the Hille  Oldendorff
     Charterparty.

5    A duly executed original of:

(a)  the Mortgage,  the Deed of Covenant and the General Assignment  relating to
     the  Identified  Ship (and of each  document to be delivered  under each of
     them);

(b)  the Hille  Oldendorff  Tripartite  Agreement  (and of each  document  to be
     delivered under the Tripartite Agreement);

(c)  the Identified Ship Earnings Account Pledge; and

(d)  the Management Agreement Assignment relating to the Identified Ship.

6    Documentary evidence that:

(a)  the Identified Ship has been  unconditionally  delivered by Goodwill to and
     accepted  by,  Seaventure  under  the  Hille  Oldendorff  MOA and the  full
     purchase  price  payable  under  that  MOA (in  addition  to the part to be
     financed by the Identified Ship Advance) has been duly paid,  together with
     a copy of the bill of sale and the other  documents  delivered  by Goodwill
     thereunder;

(b)  the Identified Ship is definitively and permanently  registered in the name
     of Seaventure under Maltese flag at the port of Valletta;

(c)  the Ship is in the absolute and unencumbered ownership of Seaventure,  save
     as contemplated by the Finance Documents relative to the Identified Ship;

(d)  the  Identified  Ship  maintains the highest  available  class with Lloyd's
     Register  of Shipping  (or such other  first-class  classification  society
     which is a member  of IACS as the Agent may  approve)  free of all  overdue
     recommendations and conditions of such classification society;

(e)  the  Mortgage  relating  to the  Identified  Ship has been duly  registered
     against that Ship as a valid first priority Maltese statutory ship mortgage
     in  accordance  with the laws of Malta and has been  noted on the  Liberian
     Bareboat Charter Registry;

(f)  the  Identified  Ship is insured in accordance  with the provisions of this
     Agreement and all  requirements  therein in respect of insurances have been
     complied with; and

(g)  the Identified Ship has been delivered and accepted by the Hille Oldendorff
     Charterer  for  service  under the Hille  Oldendorff  Charterparty  without
     qualifications  and has been registered in the name of the Hille Oldendorff
     Charterer under the Liberian Bareboat Charter Registry.

7    A copy of the  Management  Agreement  and a duly  executed  original of the
     Manager's Undertaking in relation to the Identified Ship.

8    Copies of:

(a)  the document of compliance (DOC) and safety  management  certificate  (SMC)
     referred  to  in  paragraph   (a)  of  the   definition  of  the  ISM  Code
     Documentation in respect of the Identified Ship and the applicable Approved
     Manager certified as true and in effect by Seaventure; and

(b)  the  ISPS  Code  Documentation  in  respect  of  the  Identified  Ship  and
     Seaventure certified as true and in effect by Seaventure.

9    Two  valuations  (at the  cost of the  Borrower)  of the  Identified  Ship,
     addressed to the Agent,  stated to be for the purpose of this Agreement and
     dated not earlier than 15 days before the Drawdown Date for the  Identified
     Ship Advance, each from an Approved Broker.

10   Favourable  legal  opinions  from  lawyers  appointed  by the Agent on such
     matters  concerning  the laws of Malta,  Liberia  and such  other  relevant
     jurisdictions as the Agent may require.

11   A favourable opinion from an independent insurance consultant acceptable to
     the Agent on such  matters  relating to the  insurances  of the  Identified
     Ships as the Agent may require.

                                     PART C

The following are the documents  referred to in Clause 9.1(c).  "Relevant  Ship"
means, in relation to an Additional Advance,  the Additional Ship which is to be
part-financed by that Advance.

1    Copies of  resolutions  of the  directors of the relevant  Additional  Ship
     Owner  authorising  the  execution  of each  of the  Finance  Documents  in
     relation to the Relevant Ship and ratifying the execution of the Additional
     Ship MOA in relation to that Relevant Ship.

2    The original of any power of attorney  under which any Finance  Document in
     relation  to the  Relevant  Ship is  executed  on  behalf  of the  relevant
     Additional Ship Owner.

3    The  originals of any mandates or other  documents  required in  connection
     with the opening or  operation  of the  Earnings  Account for the  Relevant
     Ship.

4    A copy of the  Additional  Ship MOA for the Relevant Ship and all documents
     signed  or  issued  by the  parties  thereto  (or any of them)  under or in
     connection with it.

5    Such  documentary  evidence as the Agent and its legal advisers may require
     in relation to the due  authorisation  and execution of the Additional Ship
     MOA in relation to the  Relevant  Ship and all  documents to be executed by
     the parties thereto under that Additional Ship MOA.

6    A duly  executed  original  of the  Mortgage,  the  Deed  of  Covenant  (if
     applicable),  the General Assignment,  the Additional Ship Earnings Account
     Pledge and the  Management  Assignment  for the Relevant  Ship (and of each
     document to be delivered under each of them).

7    Documentary evidence that:

(a)  the Relevant Ship has been  unconditionally  delivered to, and accepted by,
     the relevant  Additional Ship Owner under the relevant  Additional Ship MOA
     and the full  purchase  price payable  under that  Additional  Ship MOA (in
     addition to the part financed by the relevant Advance) has been duly paid;

(b)  the Relevant Ship is definitively and permanently registered in the name of
     the relevant Additional Ship Owner under an Approved Flag;

(c)  the  Relevant  Ship is in the absolute  and  unencumbered  ownership of the
     relevant  Additional  Ship  Owner  save  as  contemplated  by  the  Finance
     Documents;

(d)  the  Relevant  Ship  maintains  the highest  available  class with  Lloyd's
     Register  of Shipping  (or such other  first-class  classification  society
     which is a member  of IACS as the Agent may  approve)  free of all  overdue
     recommendations and conditions of such classification society;

(e)  the Mortgage  relative to the  Relevant  Ship has been duly  registered  or
     recorded  (as the case may be) against the  Relevant  Ship as a valid first
     priority or  preferred  ship  mortgage in  accordance  with the laws of the
     relevant Approved Flag State; and

(f)  the Relevant  Ship is insured in  accordance  with the  provisions  of this
     Agreement and all  requirements  therein in respect of insurances have been
     complied with.

8    A copy of the  Management  Agreement  and a duly  executed  original of the
     Manager's Undertaking in relation to the Relevant Ship.

9    Copies of:

(a)  the document of compliance (DOC) and safety  management  certificate  (SMC)
     referred  to  in  paragraph   (a)  of  the   definition  of  the  ISM  Code
     Documentation  in respect of the Relevant Ship and the applicable  Approved
     Manager  certified as true and in effect by the Owner of the Relevant Ship;
     and

(b)  the ISPS Code  Documentation  in respect of the Relevant Ship and the Owner
     thereof certified as true and in effect by the relevant Owner.

10   Two  valuations  (at  the  cost  of the  Borrower)  of the  Relevant  Ship,
     addressed to the Agent,  stated to be for the purpose of this Agreement and
     dated not earlier than 15 days before the relevant Drawdown Date, each from
     an Approved Broker.

11   Evidence satisfactory to the Agent that the Owner of the Relevant Ship is a
     direct or indirect wholly-owned subsidiary of the Borrower.

12   A favourable  legal  opinion  from  lawyers  appointed by the Agent on such
     matters  concerning  the laws of the Approved Flag State where the Relevant
     Ship is registered and such other relevant  jurisdictions  as the Agent may
     require.

13   A favourable opinion from an independent insurance consultant acceptable to
     the Agent on such matters  relating to the insurances for the Relevant Ship
     as the Agent may require.

14   If the Agent so requires,  in respect of any of the  documents  referred to
     above, a certified English translation prepared by a translator approved by
     the Agent.

     Every other copy document  delivered under this Schedule shall be certified
     as a true and up to date copy by a director or the secretary (or equivalent
     officer) of the Borrower or any other person acceptable to the Agent in its
     sole discretion.

<PAGE>

                                   SCHEDULE 6
                              TRANSFER CERTIFICATE

The Transferor and the Transferee accept exclusive  responsibility  for ensuring
that this  Certificate  and the  transaction to which it relates comply with all
legal and regulatory requirements applicable to them respectively.

To:  HSH  Nordbank  AG for  itself and for and on behalf of the  Borrower,  each
     Security Party, the Security  Trustee,  the Swap Banks and each Lender,  as
     defined in the Loan Agreement referred to below.

                                                              [                ]

1    This Certificate  relates to a Loan Agreement (the "Loan  Agreement") dated
     31 March  2006  and  made  between  (1)  Dryships  Inc.  as  borrower  (the
     "Borrower"),  (2) the banks and  financial  institutions  named  therein as
     Lenders,  (3) HSH  Nordbank  AG as Agent and as Security  Trustee,  (4) HSH
     Nordbank AG as Lead  Arranger  and Lead  Bookrunner,  (5) The  Governor and
     Company of the Bank of Scotland as Joint  Bookrunner,  (6) HSH  Nordbank AG
     and The Governor and Company of the Bank of Scotland as Joint  Underwriters
     and (7) HSH  Nordbank AG and HBOS  Treasury  Services  plc as Swap Banks in
     respect  of  term  loan  and   short-term   credit   facilities  of  up  to
     US$110,000,000 in aggregate.

2    In this Certificate:

     "the Relevant Parties" means the Agent, the Borrower,  each Security Party,
     the Security Trustee, each Swap Bank and each Lender;

     "the Transferor" means [fuIl name] of [lending office];

     "the Transferee"  means [full name] of [lending  office].

     Terms defined in the Loan Agreement  shall,  unless the contrary  intention
     appears, have the same meanings when used in this Certificate.

3    The effective date of this  Certificate  is  ...........  200 Provided that
     this  Certificate  shall  not come into  effect  unless it is signed by the
     Agent on or before that date.

4    The  Transferor  assigns  to  the  Transferee  absolutely  all  rights  and
     interests  (present,  future or  contingent)  which the  Transferor  has as
     Lender  under or by virtue of the Loan  Agreement  and every other  Finance
     Document in relation to [ ] percent of the  Contribution  outstanding  to
     the Transferor (or its predecessors in title) which is set out below:

         Contribution           Amount transferred

5    By virtue of this Transfer Certificate and Clause 26 of the Loan Agreement,
     the Transferor is discharged [entirely from its Commitment which amounts to
     $[ ]] [from [ ] percent of its Commitment, which percentage represents $[
     ]] and the Transferee acquires a Commitment of $[ ].

6    The  Transferee  undertakes  with the  Transferor  and each of the Relevant
     Parties that the  Transferee  will observe and perform all the  obligations
     under the Finance Documents which Clause 26 of the Loan Agreement  provides
     will become binding on it upon this Certificate taking effect.

7    The Agent, at the request of the Transferee  (which request is hereby made)
     accepts, for the Agent itself and for and on behalf of every other Relevant
     Party,  this  Certificate  as  a  Transfer  Certificate  taking  effect  in
     accordance with Clause 26 of the Loan Agreement.

8    The Transferor:

(a)  warrants to the Transferee and each Relevant Party:

     (i)  that the Transferor  has full capacity to enter into this  transaction
          and has taken all corporate action and obtained all consents which are
          in connection with this transaction; and

     (ii) that this Certificate is valid and binding as regards the Transferor;

(b)  warrants to the Transferee that the Transferor is absolutely entitled, free
     of encumbrances,  to all the rights and interests covered by the assignment
     in paragraph 4 above;

(c)  undertakes  with  the  Transferee  that  the  Transferor  will,  at its own
     expense, execute any documents which the Transferee reasonably requests for
     perfecting in any relevant  jurisdiction the Transferee's  title under this
     Certificate or for a similar purpose.

9    The Transferee:

(d)  confirms  that it has received a copy of the Loan  Agreement and each other
     Finance Document;

(e)  agrees that it will have no rights of recourse on any ground against either
     the  Transferor,  the Agent,  the  Security  Trustee,  any Swap Bank or any
     Lender in the event that:

     (i)  the Finance Documents prove to be invalid or ineffective,

     (ii) the  Borrower  or any  Security  Party fails to observe or perform its
          obligations,  or to  discharge  its  liabilities,  under  the  Finance
          Documents;

    (iii) it proves  impossible  to  realise  any asset  covered  by a Security
          Interest created by a Finance Document, or the proceeds of such assets
          are  insufficient  to discharge the liabilities of the Borrower or any
          Security Party under the Finance Documents;

(f)  agrees that it will have no rights of  recourse  on any ground  against the
     Agent, the Security Trustee,  any Swap Bank or any Lender in the event that
     this Certificate proves to be invalid or ineffective;

(g)  warrants to the  Transferor  and each  Relevant  Party (i) that it has full
     capacity to enter into this  transaction and has taken all corporate action
     and  obtained  all  official  consents  which it needs to take or obtain in
     connection with this  transaction;  and (ii) that this Certificate is valid
     and binding as regards the Transferee; and

(h)  confirms the accuracy of the administrative details set out below regarding
     the Transferee.

10   The  Transferor  and the  Transferee  each undertake with the Agent and the
     Security Trustee severally,  on demand, fully to indemnify the Agent and/or
     the  Security  Trustee in respect of any claim,  proceeding,  liability  or
     expense  (including  all legal  expenses)  which they or either of them may
     incur in connection with this  Certificate or any matter arising out of it,
     except  such as are shown to have been  mainly and  directly  caused by the
     gross and culpable  negligence or dishonesty of the Agent's or the Security
     Trustee's own officers or employees.

11   The  Transferee  shall repay to the Transferor on demand so much of any sum
     paid by the Transferor  under paragraph 10 above as exceeds one-half of the
     amount demanded by the Agent or the Security Trustee in respect of a claim,
     proceeding,  liability or expense which was not  reasonably  foreseeable at
     the date of this  Certificate;  but nothing in this paragraph  shall affect
     the liability of each of the  Transferor and the Transferee to the Agent or
     the Security Trustee for the full amount demanded by it.

[Name of Transferor]                     [Name of Transferee]

By:                                      By:

Date:                                    Date:

Agent

Signed for itself and for and on behalf
of itself as Agent and for every
other Relevant Party

HSH NORDBANK AG

By:

Date:

                      Administrative Details of Transferee

Name of Transferee:

Lending Office:

Contact Person
(Loan Administration Department):

Telephone:

Telex:
Fax:

Contact Person
(Credit Administration Department):

Telephone:

Telex:

Fax:

Account for payments:

Note:     This  Transfer  Certificate  alone may not be sufficient to transfer a
          proportionate  share  of the  Transferor's  interest  in the  security
          constituted  by  the  Finance   Documents  in  the   Transferor's   or
          Transferee's jurisdiction.  It is the responsibility of each Lender to
          ascertain whether any other documents are required for this purpose.

<PAGE>

                                   SCHEDULE 7

                               DESIGNATION NOTICE

To:      HSH Nordbank AG
         Gerhart-Hauptmann-Platz 50
         D-20095 Hamburg
         Germany

                                                                     [         ]

Dear Sirs

Loan  Agreement  dated 31 March 2006 made between  (inter alia) (i) ourselves as
Borrower,  (ii) the Lenders,  (iii) yourselves as Agent and Security Trustee and
(iv)  yourselves  and The  Governor  and Company of the Bank of Scotland as swap
banks  in  respect  of term  loan  and  short-term  credit  facilities  of up to
US$110,000,000 in aggregate (the "Loan Agreement")

We refer to:

1    the Loan Agreement;

2    the Master Agreement dated [ ] made between ourselves and [ ]; and

3    a Confirmation  delivered  pursuant to the said Master  Agreement dated [ ]
     and addressed by [ ] to us.

In accordance with the terms of the Loan Agreement, we hereby give you notice of
the said  Confirmation  and hereby confirm that the Transaction  evidenced by it
will be designated as a  "Designated  Transaction"  for the purposes of the Loan
Agreement and the Finance Documents.

Yours faithfully,

------------------------------------
for and on behalf of DRYSHIPS INC.

<PAGE>

                                   SCHEDULE 8

                         FORM OF COMPLIANCE CERTIFICATE

To:      HSH Nordbank AG
         Gerhart-Hauptmann-Platz 50
         D-20095 Hamburg
         Germany
                                                                 [     ] 200[  ]

Dear Sirs,

We refer to a loan  agreement  dated 31 March 2006 (the "Loan  Agreement")  made
between (amongst  others)  yourselves and ourselves in relation to term loan and
short-term credit facilities of up to $110,000,000 in aggregate.

Words and expressions  defined in the Loan Agreement shall have the same meaning
when used in this compliance certificate.

We  enclose  with  this   certificate   a  copy  of  the   [audited]/[unaudited]
consolidated  accounts for the Group for the [Financial  Year] [3-month  period]
ended [ ]. The accounts (i) have been prepared in accordance with all applicable
laws and GAAP all  consistently  applied,  (ii) give a true and fair view of the
state of affairs of the Group at the date of the  accounts and of its profit for
the period to which the accounts  relate and (iii) fully disclose or provide for
all significant liabilities of the Group.

We also enclose  copies of the  valuations  of all the Fleet  Vessels which were
used in calculating  the Market Value Adjusted Total Assets of the Group as at [
].

The Borrower  represents  that no Event of Default or Potential Event of Default
has occurred as at the date of this certificate [except for the following matter
or event [set out all material details of matter or event]]. In addition as of [
], the Borrower  confirms  compliance  with the  financial  covenants set out in
Clause  12.4 of the Loan  Agreement  for the 6 months  ending  as of the date to
which the enclosed accounts are prepared.

We now certify that, as at [   ]:

(a)  the Market Adjusted Equity Ratio is [ ]:[ ];

(b)  the Interest Coverage Ratio of the Group is [ ]:[ ];

(c)  the Market Value Adjusted Net Worth of the Group is $[ ]; and

(d)  the aggregate freely  available and  unencumbered  bank or cash balances of
     the Group are $[ ] in  aggregate  of which $[ ] in aggregate is standing to
     the credit of the Earnings Accounts and the Wealth Account.

This certificate shall be governed by, and construed in accordance with, English
law.

--------------------------

[     ]
Chief Financial Officer of
Dryships Inc.

<PAGE>

                        SCHEDULE 9 MANDATORY COST FORMULA

1    The  Mandatory  Cost is an  addition  to the  interest  rate to  compensate
     Lenders  for the  cost of  compliance  with  (a)  the  requirements  of the
     Financial  Services Authority (or any other authority which replaces all or
     any of its functions) or (b) the requirements of the European Central Bank.

2    On  the  first  day  of  each  Interest  Period  (or as  soon  as  possible
     thereafter) the Agent shall  calculate,  as a percentage  rate, a rate (the
     "Additional Cost Rate") for each Lender,  in accordance with the paragraphs
     set out below.  The  Mandatory  Cost will be  calculated  by the Agent as a
     weighted  average  of the  Lenders'  Additional  Cost  Rates  (weighted  in
     proportion to the percentage  participation of each Lender in the Loan) and
     will be expressed as a percentage rate per annum.

3    The Additional  Cost Rate for any Lender lending from a lending office in a
     Participating  Member State will be the percentage  notified by that Lender
     to the Agent.  This  percentage  will be  certified  by that  Lender in its
     notice  to  the  Agent  to be its  reasonable  determination  of  the  cost
     (expressed as a percentage of that Lender's  participation  in the Loan) of
     complying with the minimum  reserve  requirements  of the European  Central
     Bank in respect of loans made from that lending office.

4    The  Additional  Cost Rate for any Lender  lending from a lending office in
     the United Kingdom will be calculated by the Agent as follows:

                            E x 0.01
                           ---------- percent per annum
                              300

     Where:

     E    is designed to compensate  Lenders for amounts  payable under the Fees
          Rules and is  calculated by the Agent as being the average of the most
          recent rates of charge  supplied by the Lenders to the Agent  pursuant
          to paragraph 6 below and expressed in pounds per (pound)1,000,000.

5    For the purposes of this Schedule:

(a)  "Special  Deposits"  has the meaning given to it from time to time under or
     pursuant to the Bank of England Act 1998 or (as may be  appropriate) by the
     Bank of England;

(b)  "Fees  Rules"  means  the  rules  on  periodic  fees  contained  in the FSA
     Supervision  Manual or such other law or regulation as may be in force from
     time to time in  respect  of the  payment  of fees  for the  acceptance  of
     deposits;

(c)  "Fee Tariffs"  means the fee tariffs  specified in the Fees Rules under the
     activity  group A.1  Deposit  acceptors  (ignoring  any minimum fee or zero
     rated fee  required  pursuant to the Fees Rules but taking into account any
     applicable discount rate);

(d)  "Participating  Member State" means any member state of the European  Union
     that adopts or has adopted  the euro as its lawful  currency in  accordance
     with legislation of the European Union relating to European Monetary Union;
     and

(e)  "Tariff  Base" has the meaning  given to it in, and will be  calculated  in
     accordance with, the Fees Rules.

6    If requested by the Agent, each Lender lending from a lending office in the
     United  Kingdom  shall,  as soon as  practicable  after  publication by the
     Financial  Services  Authority,  supply  to the  Agent,  the rate of charge
     payable by that Lender to the Financial  Services Authority pursuant to the
     Fees Rules in  respect  of the  relevant  financial  year of the  Financial
     Services Authority (calculated for this purpose by that Lender as being the
     average of the Fee Tariffs  applicable  to that  Lender for that  financial
     year) and  expressed in pounds per  (pound)1,000,000  of the Tariff Base of
     that Lender.

7    Each  Lender  shall  supply any  information  required by the Agent for the
     purpose of calculating its Additional Cost Rate. In particular, but without
     limitation,  each Lender shall supply the following  information in writing
     on or prior to the date on which it becomes a Lender:

(a)  the jurisdiction of its lending office; and

(b)  any  other  information  that the  Agent may  reasonably  require  for such
     purpose.

     Each Lender shall promptly notify the Agent in writing of any change to the
     information provided by it pursuant to this paragraph.

8    The rates of charge of each  Lender  lending  from a lending  office in the
     United  Kingdom for the purpose of calculating E shall be determined by the
     Agent based upon the  information  supplied  to it pursuant to  paragraph 6
     above and on the assumption that, unless a Lender notifies the Agent to the
     contrary,  each Lender's obligations in relation to cash ratio deposits and
     Special  Deposits  are  the  same as  those  of a  typical  bank  from  its
     jurisdiction   of   incorporation   with  a  lending  office  in  the  same
     jurisdiction as its lending office.

9    The Agent  shall  have no  liability  to any  person if such  determination
     results in an  Additional  Cost Rate which  over or under  compensates  any
     Lender and shall be entitled to assume that the information provided by any
     Lender  pursuant to  paragraphs 3, 6 and 7 above is true and correct in all
     respects.

10   The Agent shall  distribute the additional  amounts received as a result of
     the Mandatory Cost to the Lenders on the basis of the Additional  Cost Rate
     for each Lender based on the  information  provided by each Lender pursuant
     to paragraphs 3, 6 and 7 above.

11   Any  determination  by the Agent pursuant to this Schedule in relation to a
     formula,  the Mandatory Cost, an Additional Cost Rate or any amount payable
     to a Lender shall,  in the absence of manifest  error,  be  conclusive  and
     binding on all parties.

The Agent may from time to time,  after  consultation  with the Borrower and the
Lenders,  determine and notify to all parties any amendments  which are required
to be  made to this  Schedule  in  order  to  comply  with  any  change  in law,
regulation  or any  requirements  from  time to time  imposed  by the  Financial
Services  Authority  or the European  Central  Bank (or, in any case,  any other
authority which replaces all or any of its functions) and any such determination
shall,  in the  absence of  manifest  error,  be  conclusive  and binding on all
parties.

<PAGE>

                                 EXECUTION PAGES

BORROWER

SIGNED by EUGENIA PAPAPONTINOU     )        /s/ Eugenia Papapontinou
for and on behalf of               )        -------------------------------
DRYSHIPS INC.                      )

LENDERS

SIGNED by GEORGE PALEOKRASSAS      )        /s/ George Paleokrassas
for and on behalf of               )        -------------------------------
HSH NORDBANK AG                    )

SIGNED by GEORGE PALEOKRASSAS      )        /s/ George Paleokrassas
for and on behalf of               )        -------------------------------
THE GOVERNOR AND COMPANY OF        )
THE BANK OF SCOTLAND               )

AGENT

SIGNED by GEORGE PALEOKRASSAS      )        /s/ George Paleokrassas
for and on behalf of               )        -------------------------------
HSH NORDBANK AG                    )

SECURITY TRUSTEE

SIGNED by GEORGE PALEOKRASSAS      )        /s/ George Paleokrassas
for and on behalf of               )        -------------------------------
HSH NORDBANK AG                    )

LEAD ARRANGER/LEAD BOOKRUNNER

SIGNED by GEORGE PALEOKRASSAS      )        /s/ George Paleokrassas
for and on behalf of               )        -------------------------------
HSH NORDBANK AG                    )

JOINT BOOKRUNNER

SIGNED by GEORGE PALEOKRASSAS      )        /s/ George Paleokrassas
for and on behalf of               )        -------------------------------
THE GOVERNOR AND COMPANY OF        )
THE BANK OF SCOTLAND               )

JOINT UNDERWRITERS

SIGNED by GEORGE PALEOKRASSAS      )        /s/ George Paleokrassas
for and on behalf of               )        -------------------------------
HSH NORDBANK AG                    )

SIGNED by GEORGE PALEOKRASSAS      )        /s/ George Paleokrassas
for and on behalf of               )        -------------------------------
THE GOVERNOR AND COMPANY OF        )
THE BANK OF SCOTLAND               )

SWAP BANKS

SIGNED by GEORGE PALEOKRASSAS      )        /s/ George Paleokrassas
for and on behalf of               )        -------------------------------
HSH NORDBANK AG                    )

SIGNED by GEORGE PALEOKRASSAS      )        /s/ George Paleokrassas
for and on behalf of               )        -------------------------------
HBOS TREASURY SERVICES PLC         )

Witness to all the                 )        /s/ Erica Lacombe
above signatures                   )        -------------------------------

Name:         ERICA LACOMBE
              WATSON, FARLEY & WILLIAMS

Address:      2, DEFTERAS MERARCHIAS
              PIRAEUS 185 36 - GREECE

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00102-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00102-of-00352.parquet"}]]