Document:

EXHIBIT 10.9

                          CROWN CRUISES OF PANAMA, INC.

                                     - and -

                              EFF-SHIPPING LIMITED

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

                              THIRD NAVAL MORTGAGE
                                   - on the -
                              m.v. "CROWN DYNASTY"

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

                           Sinclair Roche & Temperley
                                   Royex House
                              5 Aldermanbury Square
                                 London EC2V 7LE
                               Tel: 0171 452 4000
                               Fax: 0171 452 4001
                                 Ref: GFS/243417

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                                INDEX OF CONTENTS

CLAUSE           HEADING                                                PAGE NO.
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1.   DEFINITIONS...............................................................2

2.   OWNER'S COVENANT TO PAY...................................................5

3.   MORTGAGE..................................................................6

4.   OWNER'S COVENANTS AS TO INSURANCE.........................................7

5.   OWNER'S COVENANTS AS TO OPERATION & MAINTENANCE..........................12

6.   EXPENSES.................................................................18

7.   PROTECTION AND MAINTENANCE OF SECURITY...................................18

8.   EVENTS OF DEFAULT........................................................19

9.   ENFORCEMENT OF RIGHTS....................................................20

10.  APPLICATION OF MONEYS....................................................22

11.  NO WAIVER................................................................22

12.  POWER OF DELEGATION......................................................23

13.  POWER OF ATTORNEY........................................................23

14.  FURTHER ASSURANCE........................................................23

15.  AMOUNT SECURED BY MORTGAGE...............................................24

16.  NOTICES..................................................................24

17.  GOVERNING LAW, SEVERABILITY, ETC. .......................................24

18.  MISCELLANEOUS............................................................25

19.  RECORDING OF THIS MORTGAGE...............................................25

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THIS THIRD NAVAL MORTGAGE is made the 28th day of January 2000 by CROWN CRUISES
OF PANAMA, INC. a company incorporated under the laws of Panama with its
registered office at c/o Galindo Arias & Lopez, Scotia Plaza No. 18, Avenida
Federico Boyd & Calle No. 51, Piso 9, 10 & 11, Panama, Republic of Panama ("the
Owner") in favour of EFF-SHIPPING LIMITED. a company incorporated under the laws
of the Cayman Islands with its registered office at the offices of Huntlaw
Corporate Services Ltd., The Huntlaw Building, PO Box 1350, George Town, Grand
Cayman, Cayman Islands ("the Mortgagee" which expression shall include its
successors and permitted assigns).

WHEREAS:-

(A)      The Owner is the sole owner of the whole of the motor vessel named
         "CROWN DYNASTY" built in Valencia, Spain at Union Naval de Levante duly
         documented in the name of the Owner under the laws and flag of the
         Republic of Panama under Provisional Patente of Navigation Number
         22465-PEXT-5 having radio call letters in the international Code of
         Signals 3FJX3 with a gross capacity in tons of 19,089 net capacity in
         tons of 8,103 length of 140.08 meters breadth of 22.50 meters and depth
         of 7.20 meters number of masts _____________ number of bridges number
         of main decks _____________ and number of funnels
         _____________ .

(B)      By a loan agreement dated the 24th day of January 2000 made between (1)
         the Mortgagee and (2) the Owner (hereinafter as the same may from time
         to time be amended, varied or supplemented called the "Loan Agreement")
         the Mortgagee has agreed to make available to the Owner a loan of
         twenty four million four hundred and eighty thousand United States
         Dollars (USD24,480,000) (the "Loan" which expression shall also mean
         where the context so requires the amount thereof from time to time
         outstanding) on the terms and conditions therein set forth. The Owner
         is as at the date hereof justly indebted to the Mortgagee in the amount
         of the Loan repayable with interest thereon on the terms and conditions
         hereinafter set out. A copy of the form of the Loan Agreement in the
         form executed is attached hereto and forms an integral part hereof.

(C)      Pursuant to the terms and conditions of the Loan Agreement, the Owner
         has drawn the whole of the Loan in a single amount.

(D)      The Mortgagee agreed to advance the Loan on condition that the Owner
         should

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         execute and deliver to the Mortgagee such a third priority mortgage of
         the Vessel as hereinafter appears.

(E)      In fulfilment of the said condition and in order to secure the payment
         to the Mortgagee of the Outstanding Indebtedness (as hereinafter
         defined) and the performance and observance of and compliance with all
         the covenants terms and conditions in this Mortgage contained expressed
         or implied the Owner has duly authorised the execution and delivery of
         this Mortgage and is duly permitted to give as security for the payment
         of the Outstanding Indebtedness and the performance and observance of
         and compliance with all the said covenants terms and conditions a third
         preferred mortgage on the Vessel under and pursuant to the laws of the
         Republic of Panama.

(F)      By first and second preferred mortgages of even date herewith ("the
         Prior Mortgages") the Owner has mortgaged the Vessel in favour of
         Merita Bank Plc ("the Prior Mortgagee") as trustee for itself and
         others.

NOW THIS MORTGAGE WITNESSETH AND IT IS HEREBY AGREED as follows:-

1.       DEFINITIONS

1.1      In this Mortgage unless the context otherwise requires any term defined
         in the preamble or recitals hereto has the meaning ascribed to it
         therein and:-

         "DEFAULT RATE"
         means interest at the rate calculated in accordance with clause 4.3 of
         the Loan Agreement;

         "EVENT OF DEFAULT"
         means any of the events set out in clause 8 hereof;

         "INSURANCES"
         means all policies and contracts of insurance (which expression
         includes all entries of the Vessel in a protection and indemnity or war
         risks association) which are from time to time taken out or entered
         into in respect of the Vessel and her earnings or otherwise

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         howsoever in connection with the Vessel with the exception of
         Mortgagees interest insurances;

         "OUTSTANDING INDEBTEDNESS"
         means the aggregate of all sums of money whatsoever now or in the
         future actually or contingently due or owing to the Mortgagee under the
         Security Documents or any of them;

         "PERSON"
         includes any body of persons;

         "REQUISITION COMPENSATION"
         means all moneys or other compensation whatsoever payable by reason of
         the requisition for title or other compulsory acquisition of the Vessel
         (otherwise than by requisition for hire) or the capture, seizure,
         arrest, detention or confiscation of the Vessel by any government or by
         persons acting or purporting to act on behalf of any government;

         "SECURITY DOCUMENTS"
         means the Loan Agreement, this Mortgage and any other document as may
         have been or may hereafter be executed to secure the Loan;

         "SECURITY PERIOD"
         means the period commencing on the date hereof and terminating upon
         discharge of the security created by the Security Documents by
         irrevocable payment in full of the Outstanding Indebtedness;

         "TOTAL LOSS"
         means:-
         (i)      actual or constructive or compromised or agreed or arranged
                  total loss of the Vessel; or

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

         (iii)    capture, seizure, arrest, detention or confiscation of the
                  Vessel by any government or by persons acting or purporting to
                  act on behalf of any government unless the Vessel is released
                  and restored to the Owner from such

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                  capture, seizure, arrest or detention within thirty (30) days
                  after the occurrence thereof; and

         "VESSEL"
         means the vessel described in Recital (A) hereto and includes her
         engines, machinery, boats, tackle, outfit, spare gear, fuel, consumable
         or other stores, belongings and appurtenances whether on board or
         ashore and whether now owned or hereafter acquired.

1.2      In clause 4.1(A) hereof:-

         "EXCESS RISKS"
         means the proportion of claims for general average and salvage charges
         and under the ordinary running down clause not recoverable in
         consequence of the value at which a vessel is assessed for the purpose
         of such claims exceeding her insured value;

         "PROTECTION AND INDEMNITY RISKS"
         means the usual risks covered by associations that are members of the
         International Group of P. & I. Associations including without
         limitation pollution risks (whether relating to oil or otherwise
         howsoever) and the proportion not recoverable in case of collision
         under the ordinary running down clause; and

         "WAR RISKS"
         includes the risks of mines and all risks excluded from the standard
         form of English marine policy by the free of capture and seizure
         clause.

1.3      This Mortgage shall be read together with the Loan Agreement.

1.4      Clause headings are inserted for convenience of reference only and
         shall be ignored in the interpretation of this Mortgage.

2.       OWNER'S COVENANT TO PAY

2.1      In consideration of the premises the Owner covenants with the Mortgagee
         as follows:-

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         (A)      to repay the Loan to the Mortgagee by the instalments at the
                  times and in the manner specified in clause 5 of the Loan
                  Agreement;

         (B)      to pay interest on the Loan to the Mortgagee at the rate at
                  the times and in the manner specified in clause 4 of the Loan
                  Agreement;

         (C)      to pay interest at the Default Rate to the Mortgagee (both
                  before and after any judgment) on any sum or sums payable
                  under the Security Documents which is not paid to the
                  Mortgagee on the due date;

         (D)      to pay each and every other sum of money that may be or become
                  owing to the Mortgagee under the terms of the Security
                  Documents or any of them at the times and in the manner
                  specified therein;

         (E)      to pay to and/or indemnify the Mortgagee for such additional
                  amounts as may be necessary in order that all payments under
                  this Mortgage after deduction or withholding for or on account
                  of all present or future taxes (other than corporate taxes on
                  the overall net income of the Mortgagee) imposed by any
                  competent authority in any jurisdiction relative to the Owner
                  shall be no less than such payments would have been had there
                  been no such taxes; and

         (F)      to perform observe and comply with the obligations, covenants,
                  terms and conditions set out in this Mortgage.

2.2      Notwithstanding anything to the contrary contained in this clause 2 the
         Owner shall be entitled to prepay the Loan in whole or in part in
         accordance with the provisions of clause 6.3 of the Loan Agreement.

2.3      Notwithstanding anything to the contrary contained in this clause 2 the
         Outstanding Indebtedness shall become immediately payable on demand
         upon the happening of any Event of Default.

3.       MORTGAGE

3.1      In consideration of the premises and in order to secure by this
         Mortgage the

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         repayment to the Mortgagee of the Loan plus interest at the rate set
         forth in the Loan Agreement and the payment of all such other sums as
         may hereafter from time to time and at any other time form part of the
         Outstanding Indebtedness and to secure the performance and observance
         of and compliance with the covenants terms and conditions herein
         contained, the Owner in accordance with the provisions of Chapter V
         Title IV of Book Second of the Code of Commerce of the Republic of
         Panama and of the pertinent provisions of the Civil Code and other
         legislation of the Republic of Panama hereby executes and constitutes a
         Third Preferred Naval Mortgage on the whole of the Vessel in favour of
         the Mortgagee subject to the rights of the Prior Mortgagee under the
         Prior Mortgages to have and to hold the same unto the Mortgagee its
         successors and assigns forever upon the terms herein set forth,
         Provided Only and the condition of these presents is such that if the
         Owner its successors and assigns shall pay or cause to be paid to the
         Mortgagee its successors or assigns the Outstanding Indebtedness as and
         when the same shall become due and payable in accordance with the terms
         of the Loan Agreement and this Mortgage and shall observe and comply
         with the covenants, terms and conditions in the Loan Agreement and this
         Mortgage contained expressed or implied to be performed, observed or
         complied with by and on the part of the Owner then these presents and
         the rights hereunder shall cease determine and be void and the
         Mortgagee will, at the request and cost of the Owner, execute a release
         in such form as the Owner may reasonably require, of the security
         created by this Mortgage.

3.2      It is declared and agreed that the security created by this Mortgage
         shall be held by the Mortgagee as a continuing security for the payment
         of the Outstanding Indebtedness and the performance and observance of
         and compliance with all of the covenants terms and conditions contained
         in the Security Documents and that the security so created shall not be
         satisfied by any intermediate payment or satisfaction of any part of
         the amount hereby and thereby secured and that the security so created
         shall be in addition to and shall not in any way be prejudiced or
         affected by any collateral or other security now or hereafter held by
         the Mortgagee for all or any part of the moneys hereby and thereby
         secured and that every power and remedy given to the Mortgagee
         hereunder shall be an addition to and not a limitation of any and every
         other power or remedy vested in the Mortgagee under any of the other
         Security Documents or at law and that all the powers so vested in the
         Mortgagee may be exercised from time to time and as often as the
         Mortgagee may deem expedient.

4.       OWNER'S COVENANTS AS TO INSURANCE

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4.1      The Owner covenants with the Mortgagee and undertakes throughout the
         Security Period:-

         (A)      at the Owner's expense to insure and keep the Vessel insured
                  in United States Dollars (or such other currency as the
                  Mortgagee may approve in writing) against (a) fire and usual
                  marine risks (including excess risks), (b) war risks, (c)
                  protection and indemnity risks, (d) oil pollution liability
                  risks in excess of the limit of cover for oil pollution
                  liability included within the protection and indemnity risks,
                  (e) loss of hire and (f) any other risks which the Mortgagee
                  may from time to time require;

         (B)      to effect the Insurances (a) generally in such amounts and
                  upon such terms as shall from time to time be approved in
                  writing by the Mortgagee, through such brokers (hereinafter
                  called "the approved brokers") and with such insurance
                  companies underwriters war risks and protection and indemnity
                  associations as shall from time to time be approved in writing
                  by the Mortgagee, and (b) in particular 01. (in respect of all
                  risks within the protection and indemnity insurances other
                  than oil pollution risks) in an unlimited amount, or (if
                  unlimited cover ceases to be available) in the maximum amount
                  available to the Owner for the Vessel in the market from time
                  to time; 02. (in respect of oil pollution liability risks
                  included within the protection and indemnity insurances) in
                  the maximum amount available to the Owner for the Vessel in
                  the market from time to time; and 03. (in respect of oil
                  pollution liability risks in excess of the limit of cover
                  included in the protection and indemnity insurances) in such
                  amount and upon such terms as the Mortgagee may from time to
                  time require;

         (C)      to renew the Insurances at least fourteen (l4) days before the
                  relevant policies or contracts expire and to procure that the
                  approved brokers shall promptly confirm in writing to the
                  Mortgagee as and when each such renewal is effected;

         (D)      punctually to pay premiums calls contributions or other sums
                  payable in respect of all the Insurances and to produce all
                  relevant receipts when so required by the Mortgagee;

         (E)      to arrange for the execution of such guarantees as may from
                  time to time be required by a protection and indemnity or war
                  risks association;

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         (F)      to procure that the interests of the Mortgagee shall be duly
                  endorsed upon all slips cover notes policies certificates of
                  entry or other instruments of insurance issued or to be issued
                  in connection with the Insurances and in particular, but
                  without limitation, if so required by the Mortgagee, (but
                  without liability as between the Owner and the Mortgagee for
                  premiums or calls) to procure that the Mortgagee be named as
                  co-assured;

         (G)      subject to the rights of the Prior Mortgagee under the Prior
                  Mortgages to procure that all such instruments of insurance as
                  are referred to in sub-clause (F) above shall be deposited
                  with the Mortgagee (or with such other person as the Mortgagee
                  may from time to time direct) and that the approved brokers
                  furnish the Mortgagee with a letter or letters of undertaking
                  in such form as may be required by the Mortgagee;

         (H)      subject to the rights of the Prior Mortgagee under the Prior
                  Mortgages to procure that the protection and indemnity and/or
                  war risks associations wherein the Vessel is entered shall (if
                  so required by the Mortgagee) furnish the Mortgagee with a
                  letter or letters of undertaking in such form as may be
                  required by the Mortgagee;

         (I)      to operate and manage the Vessel or procure that the Vessel is
                  operated and managed strictly in conformity with the terms of
                  the instruments of insurance referred to in sub-clause (F)
                  above (including any warranties express or implied therein)
                  and in particular:

                  (i)      to ensure that the Vessel's classification,
                           structure, operation and management are maintained
                           strictly in conformity with any warranty as to class,
                           structure, operation or management or any other
                           provision as to class, structure, operation or
                           management contained in the Insurances and to this
                           end to submit the Vessel or cause the Vessel to be
                           submitted to such periodical or other surveys as may
                           be required by the Vessel's classification society,
                           salvage association or otherwise howsoever not less
                           than fourteen (14) days before the date upon which
                           such surveys fall due;

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                  (ii)     promptly and fully to implement any and all
                           requirements or recommendations contained in any
                           report issued upon or following any of the surveys
                           referred to in sub-clause (i) above and promptly
                           after such surveys have been carried out to provide
                           evidence satisfactory to the Mortgagee that this has
                           been done together with confirmation from the
                           relevant approved brokers that the Vessel complies
                           with such of the Insurances to which such surveys are
                           relevant;

                  (iii)    (without prejudice to clauses 4.1(G) and (H) hereof)
                           subject to the rights of the Prior Mortgagee under
                           the Prior Mortgages to procure that the approved
                           brokers furnish the Mortgagee with a letter of
                           undertaking in terms satisfactory to the Mortgagee in
                           which the approved brokers undertake (inter alia) to
                           give the Mortgagee notice of any failure by the Owner
                           to comply with any warranty as to the Vessel's class
                           or structure;

                  (iv)     to comply strictly with the requirements of any
                           legislation relating to pollution or protection of
                           the environment which may from time to time be
                           applicable to the Vessel in any jurisdiction in which
                           the Vessel shall trade and in particular (if the
                           Vessel is to trade in the United States of America
                           and Exclusive Economic Zone (as defined in the Act))
                           to comply strictly with the requirements of the
                           United States Oil Pollution Act 1990 ("the Act") and
                           before any such trade is commenced and during the
                           entire period during which such trade is carried on:-

                           (a)      to pay any additional premiums required to
                                    maintain protection and indemnity cover for
                                    oil pollution up to the limit available to
                                    the Owner for the Vessel in the market;

                           (b)      to make all such quarterly or other voyage
                                    declarations as may from time to time be
                                    required by the Vessel's protection and
                                    indemnity association in order to maintain
                                    such cover, and promptly to deliver to the
                                    Mortgagee copies of such declarations;

                           (c)      to submit the Vessel to such additional
                                    periodic, classification,

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                                    structural or other surveys which may be
                                    required by the Vessel's protection and
                                    indemnity insurers to maintain cover for
                                    such trade and promptly to deliver to the
                                    Mortgagee copies of reports made in respect
                                    of such surveys;

                           (d)      to implement any recommendations contained
                                    in the reports issued following the surveys
                                    referred to in sub-clause (c) above within
                                    the time limit specified therein, and
                                    provide evidence satisfactory to the
                                    Mortgagee that the protection and indemnity
                                    insurers are satisfied that this has been
                                    done; and

                           (e)      in addition to the foregoing (if such trade
                                    is in the United States of America and
                                    Exclusive Economic Zone):

                                    (01)    to obtain and retain a certificate
                                            of financial responsibility under
                                            the Act in form and substance
                                            satisfactory to the United States
                                            Coast Guard and to provide the
                                            Mortgagee with a copy thereof;

                                    (02)    to procure that the protection and
                                            indemnity insurances do not contain
                                            a US Trading Exclusion Clause or any
                                            other provision analogous thereto
                                            and to provide the Mortgagee with
                                            evidence that this is so; and

                                    (03)    strictly to comply with any
                                            operational or structural
                                            regulations issued from time to time
                                            by any relevant authorities under
                                            the Act so that at all times the
                                            Vessel falls within the provisions
                                            which limit strict liability under
                                            the Act for oil pollution;

                  (v)      before allowing the Vessel to enter or trade to any
                           zone which is declared a war zone or which is
                           rendered dangerous by reason of hostility in any part
                           of the world (whether war be declared or not) to
                           effect such special insurance cover as the Mortgagee
                           may require; and

                  (vi)     to notify the Mortgagee forthwith by letter or in
                           case of urgency by telex of any requirement or
                           recommendation made by any insurer or classification
                           society which has not been complied with prior to

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                           fourteen (14) days before the date by which it is
                           required to be complied with;

         (J)      to apply all sums receivable in respect of the Insurances as
                  are paid to the Owner for the purpose of making good the loss
                  and fully repairing all damage in respect whereof the
                  insurance moneys shall have been received;

         (K)      not to make any alteration which would or could reasonably be
                  expected to have a material adverse effect on the rights or
                  interest of the Mortgagee to any of the terms in any of the
                  instruments of insurance referred to in sub-clause (F) above
                  which have been approved by the Mortgagee and not to make, do,
                  consent or agree to any act or omission which would or might
                  render any such instrument of insurance invalid, void,
                  voidable or unenforceable or render any sum payable thereunder
                  repayable in whole or in part;

         (L)      not without the prior approval of the Mortgagee to settle,
                  compromise or abandon any claim under the Insurances for Total
                  Loss or for a major casualty; and

         (M)      to indemnify the Mortgagee fully forthwith upon demand for any
                  and all costs and expenses incurred by the Mortgagee from time
                  to time:

                  (i)      in effecting for the benefit of the Mortgagee in such
                           amount, upon such terms, through such insurance
                           brokers and with such insurance company or
                           underwriter as the Mortgagee shall in its sole
                           discretion elect (i) a Mortgagee's interest insurance
                           policy on the Vessel and (ii) an insurance policy
                           against the possible consequences of pollution
                           involving the Vessel, including without limitation,
                           the risk of expropriation or sequestration of the
                           Vessel, the imposition of a lien or encumbrance of
                           any kind having priority over this Mortgage or a
                           claim against the Vessel exceeding the amount
                           receivable in respect of pollution under the Vessel's
                           protection and indemnity insurances; and

                  (ii)     in obtaining from time to time a report or reports on
                           the adequacy of the Insurances from an insurance
                           adviser appointed by the Mortgagee.

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4.2      The Mortgagee shall be entitled from time to time to review the terms
         of clause 4.1 hereof in order to provide for changes occurring after
         the date of this Mortgage in legislation or circumstances affecting the
         Owner, the Vessel, the Insurances, the laws of any jurisdiction or any
         other matters which the Mortgagee deems relevant, and to modify its
         requirements in respect of the Insurances in the light of such changes.
         Any such modification, once notified in writing by the Mortgagee to the
         Owner shall be binding on the Owner and take effect as an amendment to
         clause 4.1 hereof.

5.       OWNER'S COVENANTS AS TO OPERATION & MAINTENANCE

5.1      The Owner covenants with the Mortgagee and undertakes throughout the
         Security Period:-

         (A)      to keep the Vessel registered as a Panamanian ship and not to
                  do or suffer to be done anything whereby such registration may
                  be forfeited or imperilled;

         (B)      not (without the previous consent in writing of the Mortgagee)
                  to make any modification to the Vessel which would result in
                  any substantial change in the structure type or speed of the
                  Vessel;

         (C)      at all times to maintain and preserve the Vessel in good
                  working order and repair so as to maintain the highest class
                  available to vessels of her type and so that the Vessel is in
                  every respect seaworthy and in good operating condition and to
                  maintain and preserve the Vessel in such good working order
                  and condition as to comply with the requirements of the
                  Vessel's insurers and of the laws, regulations and
                  requirements (statutory or otherwise) from time to time
                  applicable to vessels registered under the laws and flag of
                  the Republic of Panama and if so required with the
                  requirements of the laws and government of any State colony
                  country province or dependency where the Vessel may trade and
                  to renew and replace all parts and appurtenances thereof when
                  and as they shall be worn out damaged lost or destroyed by
                  others of a similar nature and of at least equal quality;

         (D)      to permit the Mortgagee or to procure that the Mortgagee be
                  permitted by surveyors or other persons appointed by it in
                  that behalf to board the Vessel at all reasonable times for
                  the purpose of inspecting her condition and her class or other
                  records or for the purpose of satisfying themselves in regard
                  to

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                  proposed or executed repairs and to afford all proper
                  facilities for such inspections;

         (E)      to pay and discharge or to cause to be paid and discharged all
                  debts damages and liabilities whatsoever which have given or
                  may give rise to maritime or possessory liens on or claims
                  enforceable against the Vessel and in event of arrest of the
                  Vessel pursuant to legal process or in event of her detention
                  in exercise or purported exercise of any such lien as
                  aforesaid to procure the release of the Vessel from such
                  arrest or detention forthwith upon receiving notice thereof by
                  providing bail or otherwise as the circumstances may require;

         (F)      not to employ the Vessel or suffer her employment in any trade
                  or business which is forbidden by international law or is
                  otherwise illicit or in carrying illicit or prohibited goods
                  or in any manner whatsoever which renders her liable to
                  condemnation in a Prize Court or to destruction seizure or
                  confiscation and in event of hostilities in any part of the
                  world (whether war be declared or not) not to employ the
                  Vessel or suffer her employment in carrying goods which are or
                  may be declared contraband or to enter or trade to any zone
                  which is declared a war zone or which is rendered dangerous by
                  reason of such hostilities unless the Mortgagee shall have
                  first given its consent in writing;

         (G)      to take all reasonable precautions to prevent any
                  infringements of any anti drug legislation in any jurisdiction
                  in which the Vessel shall trade and in particular (if the
                  Vessel is to trade in the United States of America) to take
                  all reasonable precautions to prevent any infringements of the
                  Anti-Drug Abuse Act of 1986 of the United States of America
                  (as the same may be amended and/or re-enacted from time to
                  time hereafter) and for this purpose to enter into a "Carrier
                  Initiative Agreement" with the United States' Customs Service
                  and to procure that the same or a similar agreement is
                  maintained in full force and effect and that the Owner's
                  obligations thereunder are performed in respect of the Vessel;

         (H)      to comply with all laws, regulations, conventions and
                  agreements whatsoever applicable to the Vessel in any
                  jurisdiction in which the Vessel shall trade

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                  relating to pollution or protection of the environment
                  howsoever;

         (I)      promptly to furnish to the Mortgagee all such information as
                  it may from time to time reasonably require regarding the
                  Vessel her employment position and engagements particulars of
                  all towages and salvages and copies of all charters and other
                  contracts for her employment or otherwise howsoever concerning
                  her;

         (J)      to notify the Mortgagee forthwith by letter or in case of
                  urgency by telex of:-

                  (i)      any accident to the Vessel involving repairs the cost
                           whereof will or is likely to exceed one million five
                           hundred thousand United States Dollars (USD1,500,000)
                           (or the equivalent in any other currency);

                  (ii)     any occurrence in consequence whereof the Vessel has
                           become or is likely to become a Total Loss;

                  (iii)    any requirement or recommendation made by any
                           competent authority which has not been complied with
                           prior to fourteen (14) days before the date by which
                           it is required to be complied with; and

                  (iv)     any arrest of the Vessel or the exercise or purported
                           exercise of any lien on the Vessel or her earnings;

         (K)      promptly to pay all tolls dues and other outgoings whatsoever
                  in respect of the Vessel and as and when the Mortgagee may so
                  require to furnish satisfactory evidence that the wages and
                  allotments and insurance and pension contributions of the
                  Master and crew are being regularly paid and that all
                  deductions from crew's wages in respect of any tax liability
                  are being properly accounted for and that the Master has no
                  claim for disbursements other than those incurred by him in
                  the ordinary course of trading on the voyage then in progress;

         (L)      not without the previous consent of the Mortgagee in writing
                  (which the Mortgagee shall have full liberty to withhold) to
                  let the Vessel:-

                  (i)      on demise charter for any period;

                  (ii)     by any time or consecutive voyage charter for a term
                           which exceeds or

<PAGE>
                                     - 17 -

                           which by virtue of any optional extensions therein
                           contained is likely to exceed Thirteen (l3) months'
                           duration;

                  (iii)    on terms whereby more than Two (2) months' hire (or
                           the equivalent) is payable in advance; or

                  (iv)     below the market rate prevailing at the time when the
                           Vessel is fixed;

         (M)      not without the previous consent in writing of the Mortgagee
                  (and then only subject to such terms as the Mortgagee may
                  impose) to mortgage charge or otherwise assign the Vessel or
                  any share therein or to suffer the creation of any such
                  mortgage charge or assignment to or in favour of any person
                  other than the Mortgagee;

         (N)      not without the previous consent in writing of the Mortgagee
                  to sell or agree to sell or otherwise dispose of the Vessel or
                  any share therein or change the flag of the Vessel;

         (O)      not to put the Vessel into the possession of any person for
                  the purpose of work being done upon her in an amount exceeding
                  or likely to exceed one million five hundred thousand United
                  States Dollars (USD1,500,000) (or the equivalent in any other
                  currency) unless:-

                  (i)      in the case of damage repairs to the Vessel, the
                           Mortgagee is satisfied that the cost of such repairs
                           (other than any deductible) is covered by the
                           Insurances; or

                  (ii)     in the case of a scheduled drydocking the Mortgagee
                           is satisfied that adequate financial provision has
                           been made for payment in respect thereof; or

                  (iii)    the Mortgagee is satisfied that the person into whose
                           possession the Vessel is to be delivered has agreed
                           to waive any repairer's or similar possessory lien
                           for work carried out to the Vessel by such person;

<PAGE>
                                     - 18 -

         (P)      to keep proper books of account in respect of the Vessel and
                  her earnings and as and when required by the Mortgagee to make
                  such books available for inspection on behalf of the
                  Mortgagee;

         (Q)      to comply with all the requirements and formalities under any
                  applicable legislation of the Republic of Panama necessary to
                  perfect this Mortgage as a valid and enforceable third
                  preferred mortgage upon the Vessel and to furnish to the
                  Mortgagee from time to time such evidence as the Mortgagee may
                  reasonably request to satisfy itself with respect to the
                  Owner's compliance with the provisions of this sub-clause;

         (R)      to place and retain a copy of this Mortgage certified by the
                  appropriate Panamanian authorities with the Vessel's papers on
                  board the Vessel and any other certificates or other documents
                  required by law and to cause each such certified copy and such
                  papers to be brought to the attention of the master for the
                  time being of the Vessel and to be exhibited on demand to any
                  persons having business with the Vessel or to any
                  representative of the Mortgagee;

         (S)      to comply, or procure that the operator of the Vessel will
                  comply, with the International Management Code for the Safe
                  Operation of Ships and for Pollution Prevention adopted by the
                  International Maritime Organisation (as the same may be
                  amended from time to time) ("the ISM Code") or any replacement
                  of the ISM Code and in particular, without prejudice to the
                  generality of the foregoing, as and when required to do so by
                  the ISM Code and at all times thereafter, (i) to hold, or
                  procure that the operator of the Vessel holds, a valid
                  Document of Compliance (being a document issued to a vessel
                  operator as evidence of its compliance with the requirements
                  of the ISM Code) duly issued to the Owner or the operator (as
                  the case may be) pursuant to the ISM Code and a valid Safety
                  Management Certificate (being a document issued to a vessel as
                  evidence that the vessel operator and its shipboard management
                  operate in accordance with an approved structured and
                  documented system enabling the personnel of that vessel
                  operator to implement effectively the safety and environmental
                  protection policy of that vessel operator) duly issued to the
                  Vessel pursuant to the ISM Code, (ii) to provide the Mortgagee
                  with copies of any such Document of Compliance and Safety
                  Management Certificate as soon as the same are issued and
                  (iii) to keep, or procure that there be kept, on board the
                  Vessel a copy of any such Document of Compliance and the
                  original of any such Safety Management

<PAGE>
                                     - 19 -

                  Certificate; and

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

6.       EXPENSES

6.1      The Owner undertakes to pay to the Mortgagee on demand all moneys
         whatsoever which the Mortgagee shall or may expend be put to or become
         liable for in or about the protection maintenance or enforcement of the
         security created by this Deed and the other Security Documents or in or
         about the exercise by the Mortgagee of any of the powers vested in it
         under this Deed or under any of the other Security Documents and to pay
         interest thereon at the Default Rate from the date of demand until the
         date of actual receipt (whether before or after any relevant judgment).

6.2      The Owner undertakes to pay on demand to the Mortgagee (or as it may
         direct) the amount of all investigation and legal expenses of any kind
         whatsoever stamp duties (if any) registration fees and any other
         charges incurred by the Mortgagee in connection with the preparation
         completion and registration of the Security Documents or otherwise in
         connection with the Outstanding Indebtedness and the security therefor.

7.       PROTECTION AND MAINTENANCE OF SECURITY

7.1      The Mortgagee shall without prejudice to its other rights and powers
         hereunder be

<PAGE>
                                     - 20 -

         entitled (but not bound) at any time and as often as may be necessary
         to take any such action as it may in its absolute discretion think fit
         for the purpose of protecting the security created by this Deed and the
         other Security Documents and each and every expense or liability so
         incurred by the Mortgagee in or about the protection of the security
         shall be repayable to it by the Owner on demand together with interest
         thereon at the Default Rate from the date of demand until the date of
         actual receipt whether before or after any relevant judgment.

7.2      Without prejudice to the generality of the foregoing:-

         (A)      if the provisions of clause 4.1 hereof or any of them are not
                  complied with the Mortgagee shall be at liberty to effect and
                  thereafter to maintain all such insurances upon the Vessel as
                  in its discretion it may think fit;

         (B)      if the provisions of clause 5.1(C) and 5.1(D) hereof or any of
                  them are not complied with the Mortgagee shall be at liberty
                  to arrange for the carrying out of such repairs and/or surveys
                  as it deems expedient or necessary; and

         (C)      if the provisions of clause 5.1(E) hereof or any of them are
                  not complied with the Mortgagee shall be at liberty to pay and
                  discharge all such debts, damages and liabilities as are
                  therein mentioned and/or to take any such measures as it deems
                  expedient or necessary for the purpose of securing the release
                  of the Vessel,

         and each and every expense or liability so incurred by the Mortgagee
         shall be recoverable from the Owner as provided in clause 7.1 hereof
         together with interest thereon at the Default Rate.

8.       EVENTS OF DEFAULT

8.1      Upon the happening of any of the following events the Mortgagee shall
         cease to be under any further obligation to make the Loan available and
         the Outstanding Indebtedness shall immediately become payable to the
         Mortgagee on demand:-

         (A)      the happening of any of the events of default specified in
                  clause 11.1 of the Loan Agreement; or

         (B)      anything is done or suffered or omitted to be done by the
                  Owner which in the

<PAGE>
                                     - 21 -

                  reasonable opinion of the Mortgagee has imperilled or is
                  likely to imperil the security created by the Security
                  Documents.

9.       ENFORCEMENT OF RIGHTS

9.1      Upon the Mortgagee's demanding payment of the Outstanding Indebtedness
         under clause 8 hereof interest shall accrue thereon at the Default Rate
         from the date of demand until the date of payment (as well after as
         before judgment) and the security created by this Mortgage shall be
         enforceable so that the Mortgagee, subject to the rights of the Prior
         Mortgagee under the Prior Mortgages, shall be entitled as and when it
         may see fit to put into force and exercise all the powers possessed by
         it as mortgagee of the Vessel and in particular:-

         (A)      to exercise all rights and remedies in foreclosure and
                  otherwise given to mortgagees by the provisions of Article
                  1527 of the Code of Commerce and any other legislation or code
                  affecting the same;

         (B)      to bring suit at law in equity or in admiralty as it may be
                  advised to recover judgment for any and all amounts due
                  hereunder and collect the same out of any and all property of
                  the Owner whether covered by this Mortgage or otherwise;

         (C)      to take and enter into possession of the Vessel wherever the
                  same may be without legal process and (if it has acted in good
                  faith) without being responsible for loss or damage and the
                  Owner or other person in possession forthwith upon demand of
                  the Mortgagee shall surrender to the Mortgagee possession of
                  the Vessel and the Mortgagee, without being responsible for
                  loss or damage where it has acted in good faith may hold lay
                  up lease charter operate or otherwise use the Vessel for such
                  time and upon such terms as it may deem to be for its best
                  advantage and for that purpose may employ such agents managers
                  masters officers crews surveyors and servants as it shall
                  think fit and may repair and reclass the Vessel accounting
                  only for the net profits if any arising from such use and
                  charging upon all receipts from such use or from the sale of
                  the Vessel by court proceeds or pursuant to sub-clause (G)
                  below all costs expenses charges damages or losses by reason
                  of such use and if at any time the Mortgagee shall avail
                  itself of the right herein given it to take

<PAGE>
                                     - 22 -

                  the Vessel and shall take her the Mortgagee shall have the
                  right to dock the Vessel for a reasonable time at any place at
                  the cost and expense of the Owner;

         (D)      to require that all policies contracts and other records
                  relating to the Insurances (including details of and
                  correspondence concerning outstanding claims) be forthwith
                  delivered to such adjusters and/or brokers and/or other
                  insurers as the Mortgagee may nominate;

         (E)      to collect recover compromise and give a good discharge for
                  all claims then outstanding or thereafter arising under the
                  Insurances or any of them and to take over or institute (if
                  necessary using the name of the Owner) all such proceedings in
                  connection therewith as the Mortgagee in its absolute
                  discretion thinks fit and to permit any brokers through whom
                  collection or recovery is effected to charge the usual
                  brokerage therefor;

         (F)      to discharge compound release or compromise liens and/or
                  claims in respect of the Vessel which have given or may give
                  rise to any charge or lien on the Vessel or which are or may
                  be enforceable by proceedings against the Vessel;

         (G)      without being responsible for loss or damage (if it has acted
                  in good faith) sell the Vessel at any place and at such time
                  as the Mortgagee may specify and in such manner and on such
                  terms and conditions as the Mortgagee may deem advisable free
                  from any claim by the Owner in admiralty in equity at law or
                  by statute except that notice of sale will be given by
                  publication in a newspaper of general circulation in the city
                  of Panama, Republic of Panama, not less than twenty (20)
                  calendar days in advance of the sale to satisfy the
                  requirement of notice of sale to the Owner and the other
                  registered mortgagees, if any, contained in Article 1527 of
                  the Panama Code of Commerce. Such notice shall be necessary
                  only in respect of the initial date of sale and should an
                  adjournment of the sale be deemed necessary, a new date, time
                  and place for the sale may be set by the Mortgagee at the time
                  of the adjournment without need for any further notice. In the
                  event that the Vessel is sold under any power contained herein
                  the Owner will if and when required by the Mortgagee execute
                  such form of conveyance of the Vessel as the Mortgagee may
                  direct or approve; and

<PAGE>
                                     - 23 -

         (H)      to manage insure maintain and repair the Vessel and to employ
                  sail or lay up the Vessel in such manner and for such period
                  as the Mortgagee in its discretion deems expedient and for the
                  purposes aforesaid the Mortgagee shall be entitled to do all
                  acts and things incidental or conducive thereto and in
                  particular to enter into such arrangements respecting the
                  Vessel her insurance management maintenance repair
                  classification and employment in all respects as if the
                  Mortgagee were the owner of the Vessel and without being
                  responsible for any loss thereby incurred in the absence of
                  gross negligence or wilful default on the part of the
                  Mortgagee,

         Provided Always that upon any sale of the Vessel or any share therein
         by the Mortgagee pursuant to sub-clause (G) above the purchaser shall
         not be bound to see or enquire whether the Mortgagee's power of sale
         has arisen in the manner herein provided and the sale shall be deemed
         to be within the power of the Mortgagee and the receipt of the
         Mortgagee for the purchase money shall effectively discharge the
         purchaser who shall not be concerned with the manner of application of
         the proceeds of sale or be answerable therefor in any way.

10.      APPLICATION OF MONEYS

10.1     All moneys received by the Mortgagee in respect of a sale of the Vessel
         or any share therein or otherwise pursuant to the provisions of this
         Mortgage and all moneys received and retained by the Mortgagee in
         respect of the Insurances and Requisition Compensation pursuant to this
         Mortgage shall be applied by the Mortgagee in accordance with the
         relevant provisions of clause 10 of the Loan Agreement.

11.      NO WAIVER

11.1     No delay or omission of the Mortgagee to exercise any right or power
         vested in it under the Security Documents or any of them shall impair
         such right or power or be construed as a waiver of or an acquiescence
         in any default by the Owner and no express waiver given by the
         Mortgagee in relation to any default by the Owner or breach by the
         Owner of any of its obligations under this Mortgage shall prejudice the
         right of the Mortgagee under this Mortgage arising from any subsequent
         default or breach (whether or not such subsequent default or breach is
         of a nature different from the previous default or breach) nor shall
         the giving by the Mortgagee of any consent to the doing of any act
         which by the terms of this Mortgage requires the consent of the
         Mortgagee prejudice the right of the Mortgagee to give or withhold as
         it sees fit is

<PAGE>
                                     - 24 -

         consent to the doing of any other similar act.

12.      POWER OF DELEGATION

12.1     The Mortgagee shall be entitled at any time and as often as may be
         expedient to delegate all or any of the powers and discretions vested
         in it by the Security Documents or any of them (including the power
         vested in it by virtue of clause 13 hereof) in such manner upon such
         terms and to such persons as the Mortgagee in its absolute discretion
         may think fit.

13.      POWER OF ATTORNEY

13.1     The Owner irrevocably appoints the Mortgagee as its attorney for the
         duration of the Security Period for the purpose of doing in its name
         all acts which the Owner itself could do in relation to the Vessel,
         Provided However that such power shall not be exercisable by or on
         behalf of the Mortgagee unless the security created by this Mortgage
         has become enforceable pursuant to clause 9 hereof and shall in any
         event be subject to the rights of the Prior Mortgagee under the Prior
         Mortgages.

13.2     The exercise of such power by or on behalf of the Mortgagee shall not
         put any person dealing with the Mortgagee upon any enquiry as to
         whether the security created by this Mortgage has become enforceable
         pursuant to clause 9 hereof nor shall such person be in any way
         affected by notice that the security has not become enforceable and the
         exercise by the Mortgagee of such power shall be conclusive evidence of
         its right to exercise the same.

14.      FURTHER ASSURANCE

14.1     The Owner further undertakes at its own expense to execute sign perfect
         do and (if required) register every such further assurance document act
         or thing as in the opinion of the Mortgagee may be necessary or
         desirable for the purpose of more effectually mortgaging and charging
         the Vessel or perfecting the security constituted by this Mortgage or
         contemplated by the other Security Documents.

15.      AMOUNT SECURED BY MORTGAGE

<PAGE>
                                     - 25 -

15.1     A certificate submitted by the Mortgagee to the Public Registry Office
         in Panama or to any court of law or public authority as to the amount
         due or to become due from the Owner to the Mortgagee under this
         Mortgage shall in the absence of manifest error be conclusive and
         binding on the Owner for all purposes.

16.      NOTICES

16.1     The provisions of clause 18 of the Loan Agreement shall apply mutatis
         mutandis in respect of any certificate, notice or demand given or made
         under this Mortgage.

17.      GOVERNING LAW, SEVERABILITY, ETC.

17.1     This Mortgage shall be construed and enforceable in accordance with the
         laws of the Republic of Panama.

17.2     The Owner agrees that the Mortgagee shall have liberty but shall not be
         obliged to take any proceedings in the courts of any country to protect
         or enforce the security hereby constituted or to enforce any provisions
         of the Security Documents or to recover payment of the Outstanding
         Indebtedness and for the purpose of any proceeding for the enforcement
         of the security created by this Mortgage and/or the other Security
         Documents the Owner hereby submits to the jurisdiction of the courts of
         any country of the choice of the Mortgagee.

17.3     If any provision in this Mortgage or any other of the Security
         Documents is or becomes invalid or unenforceable under any applicable
         law the provisions thereof shall in all other respects remain in full
         force and effect and the provision in question shall be ineffective to
         the extent (but only to the extent) of its nonconformity with the
         requirement of the applicable law and if it is competent to the parties
         to waive any requirements which would otherwise operate as aforesaid
         those requirements are hereby waived to the extent permitted by such
         law to the end that the Mortgage and the other Security Documents shall
         be valid binding and enforceable in accordance with their respective
         terms.

17.4     Each and every power and remedy herein given to the Mortgagee shall be
         cumulative and shall be in addition to every other power and remedy
         herein given or now or hereafter existing at law in equity admiralty or
         by statute and each and every power and remedy whether herein given or
         otherwise existing may be exercised from time to

<PAGE>
                                     - 26 -

         time and as often and in such order as may be deemed expedient by the
         Mortgagee and the exercise or the beginning of the exercise of any
         power or remedy shall not be construed to be a waiver of the right to
         exercise at the same time or thereafter any other power or remedy.

18.      MISCELLANEOUS

18.1     This Mortgage may be executed in any number of counterparts each of
         which shall be an original but such counterparts shall together
         constitute but one and the same instrument.

18.2     The English text of this Mortgage is the authentic text and in the
         event of any differences arising on translation recourse shall be had
         to the English text.

19.      RECORDING OF THIS MORTGAGE

19.1     The parties hereby confer a special power of attorney on the firm of
         lawyers named Quijano & Associates of the City of Panama in the
         Republic of Panama empowering such firm of lawyers to take all
         necessary steps to record this instrument of mortgage and the
         prohibitions contained in clauses 5.1(M) and (N) hereof and a
         certificate pursuant to clause 15 hereof in the appropriate registries
         in the City of Panama in accordance with the laws of the Republic of
         Panama with full power of substitution in respect of the special power
         of attorney herein granted.

IN WITNESS whereof this Mortgage has been executed the day and year first above
written.

SIGNED SEALED and DELIVERED            )
as a DEED                              )
by CROWN CRUISES OF PANAMA, INC.       )
acting by                              )
/s/ Jeffrey I. Binder                  )
---------------------------------------
its duly appointed                     )
                                       )
in the presence of:-                   )

<PAGE>
                                     - 27 -

                             ACCEPTANCE OF MORTGAGE

The Undersigned Mortgagee EFF-SHIPPING LIMITED a corporation organised and
subsisting under the laws of the Cayman Islands DOES HEREBY ACCEPT the foregoing
Mortgage executed in its favour by CROWN CRUISES OF PANAMA, INC. a corporation
incorporated according to the laws of Panama on the 29th day of October, 1999
covering the Panamanian flag Vessel m.v. "CROWN DYNASTY" and does hereby accept
the said Mortgage in all respects AND AGREES to all terms and conditions of the
said Mortgage

Dated the 28th day of January Two thousand.

SIGNED SEALED and DELIVERED            )
as a DEED                              )
by EFF-SHIPPING LIMITED                )
acting by                              )
/s/ Per Arvid Skult                    )
---------------------------------------
its duly appointed                     )
Attorney                               )
in the presence of:-                   )EXHIBIT 10.10

                           COMMODORE HOLDINGS LIMITED

                                      -and-

                              EFF-SHIPPING LIMITED

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

                             GUARANTEE AND INDEMNITY
                           relating to obligations of
                          Crown Cruises of Panama, Inc.
                        re USD24,480,000 seller's credit

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

                           Sinclair Roche & Temperley
                                   Royex House
                              5 Aldermanbury Square
                                 London EC2V 7LE
                               Tel: 0171 452 4000
                               Fax: 0171 452 4001
                                 Ref: GFS/243417

<PAGE>
                                     - 2 -

                                INDEX OF CONTENTS

CLAUSE NO.              HEADING                                         PAGE NO.
----------              -------                                         --------

1.           DEFINITIONS AND CONSTRUCTION......................................1

2.           REPRESENTATIONS AND WARRANTIES....................................2

3.           GUARANTEE AND INDEMNITY...........................................3

4.           EXPENSES..........................................................4

5.           CONTINUING GUARANTEE..............................................4

6.           UNDERTAKINGS......................................................5

7.           ENFORCEMENT......................................................11

8.           CURRENCY INDEMNITY...............................................13

9.           BENEFIT..........................................................14

10.          MISCELLANEOUS....................................................14

11.          NOTICES..........................................................15

12.          GOVERNING LAW AND JURISDICTION...................................16

SCHEDULE A : FINANCIAL FIGURES, RATIOS AND PERCENTAGES........................17

FORM OF COMPLIANCE CERTIFICATE................................................19

<PAGE>
                                     - 3 -

THIS GUARANTEE AND INDEMNITY is given the 24th day of January 2000
BY:-

(1)      COMMODORE HOLDINGS LIMITED, a company incorporated and registered under
         the laws of Bermuda whose registered office is at c/o Francis & Forest,
         Corner House, 20 Parliament Street, Hamilton HM12, Bermuda (the
         "Guarantor" which expression shall include the successors and permitted
         assigns of the Guarantor) in favour of:-

(2)      EFF-SHIPPING LIMITED., a company incorporated under the laws of the
         Cayman Islands with its registered office at the offices of Huntlaw
         Corporate Services Ltd., The Huntlaw Building, P O Box 1350, George
         Town, Grand Cayman, Cayman Islands (the "Lender" which expression shall
         include its successors and assigns).

WHEREAS:

(A)      By a loan agreement dated January 24, 2000 made between (1) the Lender
         and (2) Crown Cruises of Panama, Inc. (the "Borrower") the Lender
         agreed to make available to the Borrower a loan of twenty four million
         four hundred and eighty thousand United States Dollars (USD24,480,000)
         pursuant to and subject to the terms and conditions therein contained.

(B)      In order to induce the Lender to enter into the Agreement and to
         advance the Loan to be advanced thereunder and as a condition precedent
         thereto the Guarantor has agreed to give the guarantee and indemnity
         herein contained.

NOW THIS DEED WITNESSETH as follows:-

1.       DEFINITIONS AND CONSTRUCTION

1.1      In this Guarantee and Indemnity unless the context otherwise requires:-

         "AGREEMENT"
         means the loan agreement referred to in Recital (A) above as
         supplemented by any amendment or supplement thereto which may from time
         to time be agreed to by the Lender and the Borrower;

<PAGE>
                                     - 4 -

         "DEFAULT RATE"
         means the rate of interest calculated in accordance with clause 4.3 of
         the Agreement;

         "INDEBTEDNESS"
         means the Loan together with all interest accrued thereon and all other
         moneys, costs, fees and expenses whatsoever which from time to time may
         be or become owing or due and payable to the Lender pursuant to the
         Agreement or any of the Security Documents;

         "LOSS"
         means any and all losses, costs, expenses, damages, claims, demands,
         rights of set-off and/or counterclaim incurred by the Lender in respect
         of or in connection with the Agreement and/or the Security Documents or
         any liability arising therefrom;

         "SECURED OBLIGATIONS"
         means all covenants, agreements, warranties, conditions and provisions
         expressed or implied on the part of the Borrower to be performed,
         observed or complied with under the Agreement including, without
         limitation, the due and punctual payment of the principal sum and all
         interest and other moneys expressed to be payable by the Borrower in
         accordance with the terms of the Agreement;

         "THIS GUARANTEE"
         means this Guarantee and Indemnity.

1.2      Unless otherwise defined herein or the context otherwise requires,
         words and expressions defined in the Agreement shall have the same
         meanings herein. Clause headings are inserted for convenience only and
         shall be ignored in the interpretation of this Guarantee.

2.       REPRESENTATIONS AND WARRANTIES

2.1      The Guarantor hereby represents and warrants to the Lender that as of
         the date hereof and (save in respect of sub-paragraph (B)(ii) below) as
         continuing warranties until all of the Indebtedness shall have been
         paid and discharged in full:-

         (A)      The Guarantor has full power and authority to make and perform
                  this

<PAGE>
                                     - 5 -

                  Guarantee and the same constitutes the legal, valid and
                  binding obligations of the Guarantor enforceable in accordance
                  with its terms;

         (B)      The making and performance by the Guarantor of this Guarantee
                  will in no way exceed the powers granted to the Guarantor by,
                  or violate in any respect any provision of (i) any mortgage,
                  charge, deed, contract or other undertaking or instrument to
                  which the Guarantor is a party or which is binding on the
                  Guarantor or any of the assets of the Guarantor; or (ii) any
                  law or regulation or any order or decree of any governmental
                  authority, agency or court; or (iii) the Memorandum and/or
                  Articles of Association (or equivalent corporate documents) of
                  the Guarantor;

         (C)      All consents, licences, approvals or authorisations which are
                  required in connection with the execution, validity,
                  performance or enforceability of this Guarantee have been
                  obtained and are and will continue to be valid and subsisting;

         (D)      Save as disclosed to the Lender in writing, the Guarantor is
                  not in default under any agreement to which the Guarantor is a
                  party or by which the Guarantor may be bound, nor in respect
                  of any financial commitment or obligation;

         (E)      The Guarantor is not engaged in litigation or arbitration
                  before any court or before any tribunal which might if
                  determined against the Guarantor have a material adverse
                  effect on the financial condition of the Guarantor and there
                  is no claim against the Guarantor which, with the passage of
                  time might result in any such litigation or arbitration; and

         (F)      The Guarantor has received a copy of the Agreement and
                  approves of and agrees to the terms and conditions thereof.

3.       GUARANTEE AND INDEMNITY

3.1      The Guarantor hereby unconditionally and irrevocably:-

         (A)      GUARANTEES the due and punctual performance and observance of
                  and compliance with the Secured Obligations by the Borrower in
                  accordance with the terms of the Agreement and the Guarantor
                  hereby covenants that, if any amount of principal or interest
                  or other moneys payable by the Borrower under

<PAGE>
                                     - 6 -

                  the Agreement shall not be paid when the same shall be due and
                  payable, whether on maturity or otherwise, the Guarantor will,
                  forthwith on demand, make such payment, or cause such payment
                  to be made, to the Lender in the manner specified by the
                  Lender together with all interest expressed to accrue on any
                  such amount pursuant to the Agreement until the date of
                  receipt by the Lender; and

         (B)      without prejudice to (A) above and as a separate and
                  independent obligation thereto indemnifies and agrees to
                  indemnify the Lender upon the written demand of the Lender in
                  respect of any Loss which the Lender may suffer or incur in
                  good faith directly or indirectly as a result of or in
                  connection with any failure by the Borrower fully and
                  effectually to perform, observe and/or comply with the Secured
                  Obligations.

4.       EXPENSES

4.1      The Guarantor further agrees to pay to the Lender on demand on a full
         indemnity basis all commissions, charges, costs and expenses of
         whatsoever nature incurred by the Lender in the administration,
         preservation and enforcement of any of the Lender's rights hereunder
         together with interest thereon (both before and after judgment) at the
         Default Rate from the date of demand until the date of receipt by the
         Lender compounded on such days in the year as the Lender reasonably may
         select.

5.       CONTINUING GUARANTEE

5.1      This Guarantee shall:-

         (A)      be a continuing security and shall be construed and take
                  effect as security for all of the Secured Obligations until
                  they shall have been satisfied and discharged in full and the
                  Guarantor hereby waives any right of set-off or counter-claim
                  which the Guarantor may otherwise have had against the Lender;

         (B)      be in addition to any other guarantee, indemnity or other
                  security which the Lender may now or hereafter hold in respect
                  of all or any of the Secured Obligations whether from the
                  Guarantor or otherwise, and shall be binding on

<PAGE>
                                     - 7 -

                  the Guarantor notwithstanding that any other Security Party
                  shall fail to give the security to be provided by it or shall
                  be released from any such security or such security shall be
                  varied;

         (C)      not be discharged by the granting to any Security Party of
                  time or any other indulgence or by compounding with any
                  Security Party or by any variation whatsoever of any of the
                  Secured Obligations or by any actual or alleged invalidity,
                  irregularity or unenforceability of or defect in any of the
                  Secured Obligations or in any of the provisions of the
                  Agreement or any one or more of the Security Documents or by
                  the absence of any action to enforce any of the rights of the
                  Lender thereunder or by any act or circumstance whatsoever
                  whereby this Guarantee would or might otherwise but for the
                  provisions of this Clause have been so discharged;

         (D)      remain in full force and effect notwithstanding any change in
                  the name, constitution or otherwise of any Security Party or
                  the Lender or their respective successors and assigns or the
                  absorption or amalgamation of any thereof by or with any other
                  corporate entity.

6.       UNDERTAKINGS

6.1      The Guarantor agrees with represents and undertakes to the Lender
         that:-

         (A)      If the Guarantor becomes liable to make any payment pursuant
                  to Clause 3 hereof, then the Guarantor will not thereafter
                  make demand for payment of any moneys for the time being due
                  to the Guarantor from any Security Party or exercise any other
                  right or remedy to which the Guarantor is entitled in respect
                  of such moneys unless and until all moneys whatsoever owing by
                  all Security Parties to the Lender have been irrevocably paid
                  in full;

         (B)      If any Security Party shall become insolvent or shall be wound
                  up or liquidated, the Guarantor shall not (unless so required
                  by the Lender and then only on condition that the Guarantor
                  holds the benefit of any claim in such insolvency or
                  liquidation upon trust to pay any amounts recovered thereunder
                  to the Lender) prove in such insolvency, winding-up or
                  liquidation until all

<PAGE>
                                     - 8 -

                  moneys whatsoever owing by all Security Parties to the Lender
                  have been irrevocably paid in full;

         (C)      The Guarantor has not taken and will not take from any
                  Security Party any security whatsoever for the moneys hereby
                  secured and, notwithstanding the foregoing, any such security
                  now or hereafter held by the Guarantor shall be held in trust
                  for the Lender and for their benefit in respect of the
                  obligations of the Guarantor hereunder;

         (D)      The Guarantor will not exercise any right to which the
                  Guarantor may be entitled as a surety until all moneys
                  whatsoever owing or due and payable by all Security Parties to
                  the Lender have been irrevocably paid in full;

         (E)      The Guarantor hereby waives any right to require the Lender to
                  proceed first against any Security Party and/or to give notice
                  to or demand on any Security Party whatsoever;

         (F)      All payments to be made hereunder shall be made in immediately
                  available funds without set-off or counter-claim and free and
                  clear of and without deduction for or on account of any
                  present or future taxes of any nature now or hereafter
                  imposed, levied, collected, withheld, deducted or assessed by
                  any taxing and/or governmental authority whatsoever or
                  wheresoever unless the Guarantor is compelled by law to deduct
                  such taxes. In that event all such taxes shall be borne by the
                  Guarantor or, if under the provisions of any applicable law
                  this stipulation cannot be applied, then the Guarantor shall
                  increase the payments to the Lender so that the net amounts
                  received by the Lender shall be equal to the full amounts
                  which the Lender would have received had payment not been made
                  subject to such taxes; provided that taxes payable by the
                  Lender on its profits arising by virtue of the transaction
                  herein described in the countries in which it carries on
                  business shall not be included in the foregoing. As used in
                  this sub-clause the term "taxes" includes all levies, imposts,
                  duties, charges, fees, deductions and withholdings whatsoever
                  and any restriction or condition resulting in a charge.

                  If the Guarantor is required to deduct taxes, the Guarantor
                  will promptly thereafter deliver all receipts and other
                  documents relating thereto to the Lender.

<PAGE>
                                     - 9 -

                  If and when the Lender shall receive (in its reasonable
                  opinion) a credit in respect of any taxes deducted by the
                  Guarantor and to which this sub-clause refers, it shall allow
                  the Guarantor a credit against amounts due or to become due
                  under the Agreement or any one or more of the Security
                  Documents (the "Guarantor's Credit") of such amount as shall
                  be fair and reasonable in the opinion of the Lender in respect
                  of any such credit as is received by the Lender or, if all of
                  the Indebtedness shall have been repaid in full, shall make a
                  payment to the Guarantor equal to the amount of the
                  Guarantor's Credit. The Lender shall be under no obligation to
                  discuss or reveal its tax affairs with the Guarantor;

         (G)      The Guarantor shall give to the Lender all such information as
                  the Lender may request with regard to the performance by the
                  Security Parties of their respective obligations under the
                  Agreement and the Security Documents;

         (H)      The Guarantor shall not without the prior written consent of
                  the Lender (such consent not to be unreasonably withheld)
                  sell, convey, transfer or otherwise dispose (whether by a
                  single transaction or in a series of transactions, related or
                  not) of any assets;

         (I)      All the authorised and issued share capital of the Borrower is
                  and will remain wholly owned and controlled by the Guarantor;

         (J)      The Guarantor shall prepare or cause to be prepared, in
                  accordance with GAAP, and deliver to the Lender annual audited
                  financial statements of the Guarantor within ninety five (95)
                  days of the end of the annual accounting periods of the
                  Guarantor and quarterly unaudited accounts of the Guarantor
                  within fifty (50) days of the end of each quarter together
                  with copies of all notices sent to shareholders or any class
                  of shareholders and such financial and other information
                  concerning the Guarantor as the Lender shall reasonably
                  require;

         (K)      The Guarantor shall not make any single acquisition or
                  investment costing more than one million United States Dollars
                  (USD1,000,000) without the prior written consent of the Lender
                  (such consent not to be unreasonably withheld);

<PAGE>
                                     - 10 -

         (L)      The Guarantor shall not incur any liability in respect of
                  Borrowed Money or guarantee endorse or otherwise become or
                  remain liable in respect of the obligations of any person firm
                  or corporation without the prior written consent of the Lender
                  (such consent not to be unreasonably withheld);

         (M)      The Guarantor shall not pay any dividend for any shares except
                  preferred shares on the following terms:-

                  (i)      no covenant or undertaking binding upon the Guarantor
                           is or would be breached by the payment of such
                           dividend; and

                  (ii)     the aggregate amount of any such dividends paid in
                           any one period of twelve (12) months does not exceed
                           four hundred thousand United States Dollars
                           (USD400,000),

                  Provided That, in respect of any preferred share issued by the
                  Guarantor prior to the date of the Agreement, the Guarantor
                  (subject only to (i) above) shall be entitled to pay dividends
                  in the maximum amount of twelve per cent (12%) per annum of
                  the price at which the relevant preferred share was issued;

         (N)      The Guarantor shall procure that it has cash which is freely
                  available, which is not subject to any Encumbrance and which
                  amounts to not less than the amount specified in item 1 in
                  schedule A hereto on the Drawdown Date and not less than the
                  amount specified in item 2 in schedule A hereto at all times
                  thereafter Provided that all sums standing to the credit of
                  the Earnings Account after all the applications have been made
                  in accordance with clause 10.2 of the Agreement shall be
                  deemed for the purposes of this clause to be cash which is
                  freely available to the Guarantor and not subject to any
                  Encumbrance;

         (O)      The Guarantor shall procure that its Debt Service Coverage
                  Ratio (calculated at three (3) monthly intervals as set out
                  below) shall not be less than the ratio specified in item 3 in
                  schedule A hereto (for the period from the Drawdown Date to 30
                  September 2002) and the ratio specified in item 4 in schedule
                  A hereto (for any period after 30 September 2002) and for this
                  purpose the Debt Service Coverage Ratio shall be calculated on
                  a consolidated basis in accordance with the following
                  formula:-

<PAGE>
                                     - 11 -

                                     EBITDA
                               ------------------
                               Financial Expenses

                  where

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

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

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

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

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

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

                  (iii)    all rent and any capital lease obligations or
                           operating lease obligations

<PAGE>
                                     - 12 -

                           by which the Guarantor is bound which are payable or
                           paid during such period as calculated in accordance
                           with GAAP and derived from the then latest accounts
                           of the Guarantor;

         (P)      The Guarantor shall procure that its Capital (Solvency) Ratio
                  (calculated as set out below) shall not be less than the
                  percentage specified in item 5 in schedule A hereto (for the
                  period from the Drawdown Date to 30 September 2001), the
                  percentage specified in item 6 in schedule A hereto (for the
                  period from 1 October 2001 to 30 September 2002) and the
                  percentage specified in item 7 in schedule A hereto (for any
                  period after 30 September 2002) and for this purpose the
                  Capital (Solvency) Ratio shall be calculated on a consolidated
                  basis in accordance with the following formula:-

                                        x
                               ------------------
                                        y

                  where

                  "x"
                  means the Guarantor's Book Tangible Net Worth (calculated in
                  accordance with clause 6.1(Q) hereof); and

                  "y"
                  means the book value of all the assets of the Guarantor
                  (calculated in accordance with GAAP);

         (Q)      The Guarantor shall procure that its Book Tangible Net Worth
                  (calculated as set out below) shall not be less than the
                  amount specified in item 8 in schedule A hereto (during the
                  period from the Drawdown Date to 30 September 2000) and the
                  amount specified in item 9 in schedule A hereto (after 30
                  September 2000) and for this purpose the Book Tangible Net
                  Worth shall be the book value of all assets calculated in
                  accordance with GAAP (excluding goodwill but including all
                  proceeds from any interest only loans which have been approved
                  in advance by the Agent as at the date of this Guarantee and
                  the proceeds of any preferred share issue made prior to the
                  date of this Guarantee) less total liabilities calculated in
                  accordance with GAAP (including without limitation the net
                  present value of financial lease commitments, estimated

<PAGE>
                                     - 13 -

                  compensation to third parties in the event of termination of
                  contracts, contingent tax liabilities and guarantee
                  obligations for the benefit of third parties but excluding any
                  debt of the Guarantor existing as at the date of this
                  Guarantee and subordinated by its terms to the Secured
                  Obligations);

         (R)      The Guarantor shall provide the Lender with compliance
                  certificates in relation to the relevant financial covenants
                  contained in this Guarantee in the form attached hereto on or
                  before the Drawdown Date and at three (3) monthly intervals
                  after the Drawdown Date.

7.       ENFORCEMENT

7.1      The Guarantor agrees, acknowledges and declares that:-

         (A)      In order to give effect to this Guarantee the Lender shall be
                  at liberty to act as though the Guarantor were the principal
                  debtor and obligor in respect of the Secured Obligations and
                  in the event of the winding-up, dissolution, reconstruction or
                  amalgamation in which or as a consequence of which any
                  Security Party loses its separate corporate identity the
                  Guarantor shall become liable to the Lender for the payment of
                  all moneys expressed to be payable by the Security Parties to
                  the Lender pursuant to the Agreement and the Security
                  Documents and the performance and observance of and compliance
                  with all the Secured Obligations;

         (B)      Any release, settlement or discharge in relation to the
                  obligations of the Guarantor hereunder shall be conditional
                  upon no security, disposition or payment to the Lender in
                  respect of any of the Indebtedness being avoided or reduced by
                  virtue of any provisions or enactments relating to bankruptcy,
                  insolvency or liquidation and if any such security,
                  disposition or payment be avoided or reduced as aforesaid,
                  this Guarantee shall continue to apply in respect of the
                  amount of such security, disposition or payment and the
                  Guarantor shall indemnify the Lender in respect thereof;

         (C)      The Lender may take such action as the Lender in its own
                  discretion may consider appropriate against any other Security
                  Party or Parties to recover

<PAGE>
                                     - 14 -

                  moneys due and payable in respect of the Secured Obligations,
                  the Guarantor, however, remaining liable under this Guarantee
                  for payment and discharge of all moneys payable in respect
                  thereof;

         (D)      The Lender shall be entitled (after a demand for payment has
                  been made hereunder but without further notice) to procure the
                  setting-off of any liability of the Guarantor hereunder
                  against any moneys standing to the credit of any account or
                  accounts which the Guarantor may now or hereafter have with
                  the Lender at any of its offices or with any subsidiary or
                  parent company of the Lender (whether or not those moneys are
                  then due to the Guarantor) and, for this purpose, to combine
                  any and all such accounts and to use all or part of those
                  moneys to buy such other currency or currencies as may be
                  required to enable the Lender to effect that setting-off. The
                  Lender shall also be entitled to retain as security for the
                  discharge of the liability of the Guarantor hereunder all
                  securities or other property of the Guarantor held by the
                  Lender at any of its offices and/or by any subsidiary or
                  parent company of the Lender (whether for safe custody or
                  otherwise);

         (E)      Notwithstanding that the Secured Obligations and any moneys
                  due from the Guarantor hereunder shall have been complied
                  with, paid or discharged, the Lender shall be entitled to
                  retain this Guarantee and refrain from releasing the Guarantor
                  from this Guarantee for such period thereafter as the Lender
                  may determine and in the event of bankruptcy, winding-up or
                  any similar proceedings being commenced in respect of any
                  Security Party or any other person as may have performed, paid
                  or discharged any of the Secured Obligations within such
                  period as aforesaid, the Lender shall be at liberty to retain
                  this Guarantee and any security held for the obligations of
                  the Guarantor hereunder and refrain from releasing the
                  Guarantor from this Guarantee and may retain such security for
                  and during such period as the Lender may determine;

         (F)      For the purpose of enabling the Lender to sue any other
                  Security Party or to prove in its winding-up, liquidation or
                  bankruptcy or in any similar proceedings for any moneys due
                  and unpaid by the Borrower, the Lender may at any time place
                  and keep for such time as it may think fit any moneys received
                  hereunder to the credit of an interest bearing suspense
                  account without any obligation on the part of the Lender to
                  apply the same or any part thereof in or towards the discharge
                  of the Indebtedness;

<PAGE>
                                     - 15 -

         (G)      The certificate of the Lender as to the sum of money owed by
                  any Security Party shall, in the absence of manifest error, be
                  conclusive for any purpose and binding on the Guarantor.

8.       CURRENCY INDEMNITY

8.1      Any amount received by the Lender in connection herewith in a currency
         (the "Relevant Currency") other than the currency in which the same
         should be received pursuant to the terms hereof (the "Agreed Currency")
         whether pursuant to a judgment or order of a court or tribunal of any
         jurisdiction or any enforcement proceedings or otherwise howsoever in
         connection herewith or otherwise shall only constitute a discharge to
         the Guarantor to the extent of the amount of the Agreed Currency which
         the Lender is able, promptly on receipt, to purchase in such foreign
         exchange market as the Lender may select with the amount of the
         Relevant Currency so received.
         If:-

         (A)      the amount of the Agreed Currency which the Lender is so able
                  to purchase is less than the amount of the Agreed Currency due
                  to the Lender hereunder; and/or

         (B)      any condition imposed in relation to the conversion of any
                  amount paid in the Relevant Currency into the Agreed Currency
                  including, without limitation, any condition imposed by any
                  exchange control authority, reduces the amount in the Agreed
                  Currency which the Lender actually receives for the amount of
                  such payment in the Relevant Currency below that amount which
                  it would have received had such condition not been imposed;

         the Guarantor will indemnify and hold the Lender harmless against any
         loss, damage, costs and/or expenses arising as a result.

8.2      The above indemnity shall constitute a separate and independent
         obligation from the other obligations contained herein shall give rise
         to a separate and independent cause of action and shall continue in
         full force and effect notwithstanding any judgment or order for amounts
         due hereunder.

<PAGE>
                                     - 16 -

9.       BENEFIT

9.1      The Guarantor may not assign or transfer rights or obligations
         hereunder without the prior written consent of the Lender (which may be
         withheld).

10.      MISCELLANEOUS

10.1     The Guarantor hereby agrees that at any time and from time to time,
         upon the request of the Lender, the Guarantor will promptly and duly
         execute and deliver and/or procure the execution and delivery of any
         and all such further instruments and documents as may be deemed
         desirable by the Lender for the purpose of obtaining for the Lender the
         full benefits hereof and of the rights and powers herein granted.

10.2     Any provisions contained herein prohibited by or unlawful or
         unenforceable under any applicable law shall, to the extent required by
         such law, be ineffective without modifying the remaining provisions
         hereof. Where however the provisions of any such applicable law may be
         waived, they are hereby waived by the Guarantor to the fullest extent
         permitted by such law with the intent that this Guarantee shall be
         valid, binding and enforceable in accordance with its terms.

10.3     Time is of the essence of this Guarantee but no failure or delay by the
         Lender in exercising any right, power or privilege hereunder and no
         course of dealing between any Security Party and the Lender shall
         operate as a waiver thereof, nor shall any single or partial exercise
         thereof preclude any other or further exercise thereof or the exercise
         of any other right, power or privilege. The rights and remedies herein
         are cumulative and not exclusive of any rights or remedies which the
         Lender would otherwise have. No notice to or demand on the Guarantor
         shall entitle the Guarantor to any other or further notice or demand in
         similar or other circumstances or constitute a waiver of the rights of
         the Lender to any other or further action in any circumstances without
         notice or demand.

11.      NOTICES

11.1     Any demand or notice to be given hereunder shall be in writing and sent
         by prepaid first class or airmail letter post or telex or facsimile or
         delivered by hand addressed to the Guarantor as follows:-

<PAGE>
                                     - 17 -
         Commodore Holdings Limited
         4000 Hollywood Boulevard
         Suite 385-S
         Hollywood
         Fl 33021
         USA

         Attention Chief Financial Officer
         Facsimile No:      + 954 921 2147)

         with a copy to:-

         Kathleen L Deutsch, P.A.
         Broad and Cassel
         Miami Center - Suite 3000
         201 S. Biscayne Boulevard
         Miami
         Fl 33131
         USA

         Facsimile no.     + 305 373 9443

         or to such other person or address as the Guarantor may notify in
         writing to the other party hereto.

11.2     Any such notice shall be deemed to have been validly given and received
         on the date of despatch if sent by telex and five (5) days after having
         been posted if sent by post.

12.      GOVERNING LAW AND JURISDICTION

12.1     This Guarantee and all agreements entered into pursuant or supplemental
         hereto shall be governed by and construed in accordance with English
         law.

12.2     The Guarantor and the Lender HEREBY SUBMIT for the exclusive benefit of
         the Lender to the jurisdiction of the English Courts and the Guarantor
         appoints Consult Marine whose registered office is for the time being
         at 58 London Fruit Exchange, Brushfield Street, London E1 6EP or such
         other person as the Guarantor may with the prior written approval of
         the Lender from time to time appoint to be the attorney of the
         Guarantor for the purpose of accepting service on behalf of the
         Guarantor of any writ, notice, order, judgment or other legal process
         with respect hereto or any matter arising

<PAGE>
                                     - 18 -

         hereout and agrees that failure by any such process agent to give
         notice of such service of process to the Guarantor shall not impair or
         affect the validity of such service or of any judgment based thereon.

<PAGE>

                                     - 19 -

IN WITNESS whereof this Guarantee has been executed as a deed the day and year
first before written.

SIGNED SEALED AND DELIVERED            )
as a Deed                              )
BY COMMODORE HOLDINGS LIMITED          )
acting by                              )
/s/ Jeffrey I. Binder                  )
---------------------------------------
its duly appointed                     )
Chairman of the Board                  )
in the presence of:-                   )

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