Document:

Exhibit
4.17

	
  

  	
   

  	
  

  

 

AMENDMENT
NO. 2 TO THE

LOAN
AGREEMENT

USD 225,779,727.18 Existing Financing

USD 100,000,000 New Financing Top Up Term Loan

USD 55,000,000 Additional Advance

 

	
  BETWEEN

  	
  STOLT TANKERS FINANCE B.V. 

  
	
   

  	
  As Borrower

  
	
   

  	
   

  
	
  AND

  	
  Danish Ship Finance A/S 

  
	
   

  	
  (Danmarks Skibskredit A/S) 

  
	
   

  	
  as Lender

  
	
   

  	
   

  
	
   

  	
  “Stolt Fleet Loan” 

  
	
   

  	
  DSF-Loan No. 4126

  

 

Dated:  19 July 2006

 

COPENHAGEN         ÅRHUS         LONDON         BRUSSELS

KROMANN REUMERT, LAW FIRM

SUNDKROGSGADE
5, DK-2100 COPENHAGEN Ø, DENMARK, TEL. +45 70 12 12 11, FAX +45 70 12 13 11

CONTENTS

	
  1.

  	
   

  	
  BACKGROUND

  	
   

  	
  1

  
	
  2.

  	
   

  	
  DEFINITIONS AND INTERPRETATION

  	
   

  	
  2

  
	
  3.

  	
   

  	
  AMENDMENTS TO THE LOAN AGREEMENT

  	
   

  	
  2

  
	
  4.

  	
   

  	
  OTHER PROVISIONS REMAIN EFFECTIVE

  	
   

  	
  9

  
	
  5.

  	
   

  	
  EFFECTIVE DATE AND DRAWDOWN OF ADVANCE B

  	
   

  	
  9

  
	
  6.

  	
   

  	
  LAW AND JURISDICTION

  	
   

  	
  10

  

 

SCHEDULES

	
  Schedule 1:

  	
   

  	
  Conditions Precedent

  
	
  Schedule 2:

  	
   

  	
  Form of Advance B Drawdown Notice

  
	
  Schedule 3:

  	
   

  	
  [Intentionally omitted]

  
	
  Schedule 4:

  	
   

  	
  [Intentionally omitted]

  
	
  Schedule 5:

  	
   

  	
  [Intentionally omitted]

  
	
  Schedule 6:

  	
   

  	
  Tranche B Repayment Schedule

  
	
  Schedule 7:

  	
   

  	
  Form of Parent Companies Guarantee

  
	
  Schedule 8:

  	
   

  	
  Form of Continuing Shipowning Companies Guarantee

  
	
  Schedule 9:

  	
   

  	
  Form Intermediate Companies Undertaking

  
	
  Schedule 10:

  	
   

  	
  Form of Insurances Assignment

  
	
  Schedule 11:

  	
   

  	
  Form of Earnings Assignment

  
	
  Schedule 12:

  	
   

  	
  Form Mortgage and Deed of Covenants

  

 

 i

AMENDMENT NO. 2 TO THE

LOAN AGREEMENT

This Amendment No. 2 to the Loan Agreement (the “Amendment”) is made on 19 July 2006
between:

(1)                 Stolt Tankers Finance
B.V., a Dutch limited liability company with registered office in Schiedam, The
Netherlands and with offices at Westerlaan 5, 3016 CK Rotterdam, The
Netherlands and with company registration number 24337613 (the “Borrower”); and

(2)                 Each of the Guarantors (as
defined in the Loan Agreement) and as listed on the signature pages hereto; and

(3)                 Danish Ship Finance A/S
(Danmarks Skibskredit A/S), Sankt Annæ Plads 3, 1250 Copenhagen K, Denmark (the
“Lender”).

1.              BACKGROUND

1.1                The Loan Agreement. The parties hereto are
parties to a USD 225,779,727.18 Existing Financing and USD 100,000,000 New
Financing Top Up Term Loan agreement dated 27 October 2005 (as amended by
Amendment No. 1 thereto dated 26 June 2006 and as may be further amended
from time to time, the “Loan Agreement”)
pursuant to which the Continuing Vessels owned by the Continuing Shipowning
Companies have been financed.

1.2                This Amendment. This Amendment is being
entered into by the Parties for the purpose of (i) the Lender making available
to the Borrower an additional advance in the amount of USD 55,000,000 to be
applied to the refinancing of the vessel M/S Stolt Achievement, (ii)
adding such vessel as a Continuing Vessel and Stolt Achievement B.V., a 100%
owned subsidiary of SNTG BV, as a Continuing Shipowning Company, and (iii)
making certain consequential amendments as set forth in this Amendment.

 1
 

2.             DEFINITIONS AND
INTERPRETATION

2.1                Incorporation of Loan
Agreement definitions. Terms defined in the Loan Agreement shall have the same
meaning when used in this Amendment unless otherwise stated herein or the
context otherwise requires.

2.2                Interpretation. In this Amendment,
unless the context otherwise requires

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

(b)        references to a “person”
includes any person, individual, firm, partnership, joint venture, company, corporation,
trust, fund, body corporate, unincorporated body of persons, or any state or
any agency of a state or association (whether or not having separate legal
personality).

2.3                Clause Headings. In this Amendment clause
headings are for ease of reference only.

3.             AMENDMENTS TO THE LOAN
AGREEMENT

3.1                Additional definitions:
Clause 2.1 (Definitions). The following
definitions are added to Clause 2.1 of the Agreement in the appropriate
alphabetical order.

“Achievement Loan
Agreement” means the loan agreement dated 20 May 2003, as amended by
Amendment No. 1 thereto dated 27 July 2005 pursuant to which the Lender and DVB
Bank A.G. made available to the Borrower a loan facility in the original
principal amount of USD 39,285,714.26 for purposes of financing the vessel M/S
Stolt Achievement.

“Advance B” means
the advance in the amount of USD 55,000,000 to be made by the Lender to the
Borrower on the Advance B Drawdown Date.

“Advance B Availability
Period” means the period commencing on the date on which all of the
conditions precedent to the disbursement of Advance B under the Agreement are
satisfied and ending on 31 December 2006.

“Advance B Drawdown
Date” means the Banking Day on which the Borrower has requested that
Advance B be disbursed or, as the context requires, the date on which Advance B
is actually disbursed.

 2
 

“Advance B Drawdown
Notice” means the written notice given by the Borrower for the drawdown of
Advance B.

“Loan” means the
aggregate principal amount of all Tranches at any time outstanding under this
Agreement.

“Tranche B” means
the tranche of the Indebtedness under the Agreement represented by Advance B.

3.2                Amendments to definitions:
Clause 2.1 (Definitions). The following
definitions in Clause 2.1 of the Agreement are amended as set forth below.

(a)              Definition
of “Continuing Shipowning Companies”. The definition of “Continuing Shipowning
Companies in Clause 2.1 of the Agreement is amended to read in its entirety as
follows:

““Continuing Shipowning Companies” means each
of eight limited liability companies, duly incorporated and validly existing
under Dutch law, each owning one Continuing Vessel and each being 100 per cent
owned by SNTG BV.”

(b)              Definition
of “Continuing Vessels”. The definition of “Continuing Vessels in Clause 2.1 of
the Agreement is amended by the addition of the M/S Stolt Achievement to the
list of Continuing Vessels contained therein by its insertion as number (viii)
on such list and the renumbering of the present number (viii) to number (ix).

(c)              Definition
of “Margin”. The definition of “Margin” in Clause 2.1 of the Agreement is amended by
the addition of the following Clause (iv) immediately after Clause (iii)
thereof:

“(iv)        in
respect of Tranche B, 0.72% p.a. (zero point seven two per cent per annum)”.

(d)           Definition
of “Proportion”. The definition of “Proportion” in Clause 2.1 of the Agreement is
amended so that the phrase “Continuing
Vessels” appearing twice therein is replaced each time by the phrase
“Continuing Vessels (other than the MS Stolt
Achievement)”.

 3
 

(e)            Definition
of “Tranche”. The definition of “Tranche” in Clause 2.1 of the Agreement is amended to
read in its entirety as follows:

“ “Tranche” means each Existing Tranche, each
New Tranche and Tranche B.”

3.3                Clause 3.1 (Commitment; Availability Period). The following sentences
are added to the end of Clause 3.1 of the Loan Agreement:

“Subject to the terms and conditions of this
Agreement, the Lender agrees to make Advance B available to the Borrower during
the Advance B Availability Period. If the Advance B Notice of Drawdown has not
been given within such time as to require funding of Advance B on or before the
last Banking Day of the Advance B Availability Period, the Lender’s commitment
to make Advance B available shall automatically be cancelled.”

3.4                Clause 3.2 (Purpose). The following sentence is added to the end of
Clause 3.2 of the Loan Agreement:

“Advance B shall be applied by the Borrower to the
repayment of all indebtedness outstanding under the Achievement Loan Agreement
and thereafter for general corporate purposes. Tranche B shall be allocated to
the vessel MS Stolt Achievement”.

3.5                Clause 4.3 (Additional conditions precedent). The provisions of Clause
4.3 of the Agreement (excluding 4.3(iii)) shall apply to Advance B, the Advance
B Drawdown Notice and the Advance B Drawdown Date, except that, for purposes of
Clause 4.3(i), the representation and warranty in Clause 16.1.7 shall except
any matter disclosed in SNSA’s 20-F filing with the United States Securities
and Exchange Commission made on 31 May 2006 relating to its fiscal year ending
30 November 2005, the press release issued on 6 April 2006 in connection
with SNSA’s first quarter financial results and in the press release issued on 6
July 2006, in connection with SNSA’s second quarter financial results.

3.6                Clause 5.3 (Irrevocability). Clause 5.3 of the
Agreement is amended so that the phrase “the
Drawdown Notice” is replaced by the phrase “the Drawdown Notice and the Advance B Drawdown Notice”.

3.7                Clause 5.4 (Indemnification). Clause 5.4 of the
Agreement is amended so that the phrase “,
fails to draw the Advance following the delivery of the Drawdown Notice”
appearing therein is replaced by the phrase “,
fails to draw the Advance or Advance B fol-

 4
 

lowing the
delivery of the Drawdown Notice or the Advance B Drawdown Notice, respectively”.

3.8                Clause 5.5(iii) (Termination of certain of the existing security over
the Continuing Vessels). Clause 5.5(iii) shall apply to Advance B with the
effect that, subject to the proviso in such Clause 5.5(iii), on the Advance B
Drawdown Date, immediately following the disbursement of Advance B, the actions
described in Clause 5.5(iii) of the Agreement shall be required to be taken by
the Lender in respect of the mortgage presently encumbering the M/S Stolt Achievement
and the insurances assignments presently covering the insurances in respect of
the M/S Stolt Achievement.

3.9                Clause 5.6 (The Tranches). Clause 5.6 of the
Agreement is amended so that the phrase “As
of the Drawdown Date,” appearing therein is replaced by the phrase “As of the Advance B Drawdown Date,”.

3.10              Clause 6.2 (Other
repayments). Clause 6.2 of the Agreement is amended so that the last
phrase therein shall read in its entirety as follows:

“, and (ii) any and all outstanding Indebtedness
(other than Indebtedness in respect of Tranche B) shall be repaid in full on
the tenth anniversary of the Drawdown Date and any and all outstanding
Indebtedness in respect of Tranche B shall be repaid in full on the tenth
anniversary of the Tranche B Drawdown Date.”

3.11              Clause 7.1 (Voluntary
prepayment). Clause 7.1 of the Agreement is amended so that the
phrase “the full amount of the Existing
Tranche and the New Tranche in respect of one or more Vessels” is
replaced by the phrase “the full amount of
the Existing Tranche and the New Tranche in respect of one or more Vessels or
the full amount of Tranche B”.

3.12              Clause 7.2 (Mandatory
prepayment). Clause 7.2 of the Agreement is amended so that the
phrases “Existing Tranche and New Tranche”
and “the Existing Tranche and the New
Tranche” appearing in Clauses 7.2(a)(i), 7.2(a)(ii), 7.2(b) are
replaced by the phrases “Existing Tranche
and New Tranche or Tranche B, as the case may be” and “the Existing Tranche and the New Tranche or Tranche
B, as the case may be”.

3.13              Clause 7.4 (Release of
Security). Clause 7.4 of the Agreement is amended so that the
phrase “the Existing Tranche and the New
Tranche” appearing therein is replaced by the phrase “the Existing Tranche and the New Tranche or Tranche
B, as the case may be”.

 5
 

3.14              Clause 8.2 (i) (Interest
rate - The New Tranches). Clause 8.2(i) of the Agreement is amended so that
the title thereof shall read “The New
Tranches and Tranche B” and by the addition of the following
sentence at the end thereof:

“Subject to any agreement to fix the rate of interest
applicable to Tranche B pursuant to the provisions of Clause 8.5, the rate of
interest applicable to Tranche B for the duration of the Loan Period shall be
LIBOR for the relevant Interest Period plus the Margin”.

3.15              Clause 8.5 (Fixing of
Interest). The first sentence of Clause 8.5 of the Agreement is
amended by the deletion of the word “and”
prior to “(iii)” and by the
addition of the phrase “, and Tranche B”
at the end thereof.

3.16              Clause 8.6 (Duration of
Interest Periods). Clause 8.6 of the Agreement is amended by the addition
of a new sub-Clause (c) thereto as follows:

“(c)         Tranche
B. If the interest rate in respect of Tranche B is fixed for
any period as contemplated in Clause 8.5, then the Interest Periods shall be each
successive period of six months the first of which commencing from the Drawdown
Date or other relevant date and ending six months thereafter. At any time at
which interest accrues on Tranche B at a variable interest rate, each Interest
Period in respect of Tranche B shall be of a duration of one (1), three (3),
six (6), nine (9) or twelve (12) months as may be selected by the Borrower
either in the Advance B Drawdown Notice or by notice to the Lender no later
than 03.00 p.m. Copenhagen time three (3) Banking Days prior to the
expiration of the then current Interest Period or such longer period as may be
agreed by the Borrower and the Lender; provided, however, that there shall be
no more than three one month Interest Periods in any calendar year. If the Borrower
fails to select an Interest Period for Tranche B in accordance with this Clause
8.6(c), the Borrower shall be deemed to have selected an Interest Period of six
months. The first Interest Period in respect of Tranche B shall commence on the
Tranche B Drawdown Date and each succeeding Interest Period shall commence on
the last day of the immediately preceding Interest Period. The last Interest
Period shall end on the last Repayment Date.”

3.17              Clause 9.1 (Arrangement
Fee). Clause 9.1 of the Agreement is amended by the addition of the following
sentence at the end thereof:

 6
 

“The Borrower shall pay to the Lender a non-refundable
arrangement fee in the aggregate amount of USD 165,000 (equal to 0.30% of the
maximum amount of Advance B). Such fee shall be paid in immediately available
USD denominated funds to the Lender on the Advance B Drawdown Date by way of
deduction from Advance B.”

3.18              Clause 9.2 (Commitment
Fee). Clause 9.2 of the Agreement is amended by the addition of the following
sentences at the end thereof:

“There will be no commitment fee in respect of Advance
B, provided that the Advance B Drawdown Date occurs on or prior to 31 December
2006. If the Advance B Drawdown Date does not occur on or prior to 31 December
2006, then the Borrower shall pay to the Lender, in arrear on the Advance B
Drawdown Date by way of deduction from Advance B, a commitment fee equal to
0.20% per annum applied to the full commitment in respect of Advance B
calculated for the period from and including 26 June 2006 to but excluding the
Advance B Drawdown Date.”

3.19              Clause 12.2 (Release of
security). Clause 12.2 of the Agreement is amended so that the
phrase “the Existing Tranche and the New
Tranche” appearing therein is replaced by the phrase “the Existing Tranche and the New Tranche or Tranche
B, as the case may be”.

3.20              Clause 14.2 (Insured
amounts). Clause 14.2 of the Agreement is amended so that (i) the phrase “the Existing Tranche and the New Tranche”
appearing therein is replaced by the phrase “the
Existing Tranche and the New Tranche or Tranche B, as the case may be”
and (ii) the phrase “For Existing Tranches
and New Tranches” at the beginning of the second sentence thereof is
replaced by the phrase “For Existing
Tranches and New Tranches and Tranche B”.

3.21              Clause 16.1 (Representations
and warranties). Clause 16.1 of the Agreement is amended so that all
references therein to “Shipowning Companies”
shall be replaced by references to “Continuing
Shipowning Companies”.

3.22              Clause 16.2 (Repetition). Clause 16.2 of the
Agreement is amended to read in its entirety as follows:

“16.2      Repetition. These
representations and warranties shall be deemed to be made on the date hereof
and shall be deemed repeated on the Drawdown Date, on the Advance B Drawdown
Date, and on the date of each Compliance Certificate until the Indebtedness has
been fully repaid except for those contained in Clauses 16.1.5, 16.1.6 and
16.1.7, which shall be deemed repeated only on the 

 7
 

Drawdown Date and on the Advance B Drawdown Date. In respect
of the Advance B Drawdown Date, the reference in Clause 16.1.7 to “SNSA’s 20-F filing with
the United States Securities and Exchange Commission made on 31 May 2005
relating to its fiscal year ending 30 November 2004, the press release issued
on 19 July 2005 in connection with SNSA’s second quarter financial results and
in the press release issued on 4 October 2005, in connection with SNSA’s third
quarter financial results,” shall be
replaced by reference to “SNSA’s 20-F filing with the United States
Securities and Exchange Commission made on 31 May 2006 relating to its fiscal
year ending 30 November 2005, the press release issued on 6 April 2006 in
connection with SNSA’s first quarter financial results and in the press release
issued on 6 July 2006, in connection with SNSA’s second quarter financial
results,”

3.23              Clause 17.1 (Undertakings). Clause 17.1 of the
Agreement is amended so that all references therein to “Shipowning Companies” shall be replaced by
references to “Continuing Shipowning
Companies”.

3.24              Clause 18.1.5 (Events
of Default – Cross-default/Borrower). Clause 18.1.5 of the
Agreement is amended by the deletion of the phrase “(including under the Loan Agreement referred to in Clause above)”.

3.25              Schedules.

(a)       Schedule 6 (Repayment Schedules) is amended by the
addition thereto of the repayment schedule in respect of Tranche B attached to
this Amendment as Schedule 6.

(b)       Schedule 7 (Form of Parent Companies Guarantee) is replaced in its
entirety by Schedule 7 to this Amendment and from the date of the
signature of the Parent Companies Guarantee in such form, all references in the
Agreement to Parent Companies Guarantee shall be to such newly executed Parent
Companies Guarantee.

(c)       Schedule 8 (Form of Continuing Shipowning Companies Guarantee) is replaced in its
entirety by Schedule 8 to this Amendment and from the date of the
signature of the Continuing Shipowning Companies Guarantee in such form, all
references in the Agreement to Continuing Shipowning Companies Guarantee shall
be to such newly executed Continuing Shipowning Companies Guarantee.

 8
 

(d)       Schedule 9 (Form of Intermediate Companies Undertaking) is replaced in its
entirety by Schedule 9 to this Amendment and from the date of the
signature of the Intermediate Companies Undertaking in such form, all
references in the Agreement to the Intermediate Companies Undertaking shall be
to such newly executed Intermediated Companies Undertaking.

(e)       Schedule 10 (Form of Insurances Assignment) is replaced in its
entirety by Schedule 10 to this Amendment and from the date of the
signature of the Insurances Assignment in such form, all references in the
Agreement to Insurances Assignment shall be to such newly executed Insurances
Assignment.

(f)        Schedule 11 (Form of Earnings Assignment) is replaced in its
entirety by Schedule 11 to this Amendment and from the date of the
signature of the Earnings Assignment in such form, all references in the
Agreement to Earnings Assignment shall be to such newly executed Earnings
Assignment.

(g)       Schedule 12 (Form of Mortgage and Deed of Covenants) is replaced in its
entirety by Schedule 12 to this Amendment and from the date of the
signature of the Mortgages and Deeds of Covenants in such form, all references
in the Agreement to the Mortgages and Deeds of Covenant shall be to such newly
executed Mortgages and Deeds of Covenant.

4.                  OTHER PROVISIONS
REMAIN EFFECTIVE

4.1                Except as specifically set
forth in Clause 3 of this Amendment, the Loan Agreement shall remain valid and
effective in accordance with its terms.

5.                  EFFECTIVE DATE
AND DRAWDOWN OF ADVANCE B

5.1                Conditions precedent to
effectiveness. The amendments to the Agreement contained in Clause 3 of this Amendment
shall become effective as of the date on which each of the parties hereto has
duly signed this Amendment and all of the conditions precedent set forth on Schedule
1 hereto have been satisfied.

5.2                Advance B Drawdown Notice. The Borrower shall not
be entitled to deliver the Advance B Drawdown Notice until the amendments to
the Agreement contained in Clause 3 of this Amendment have become effective as
contemplated in Clause 5.1 above. The Advance B Draw-

 9
 

down
Notice shall be in the form attached to this Amendment as Schedule 2 and
shall request the drawing of the full amount of Advance B. The Advance B
Drawdown Notice shall be received by the Lender no later than 10 a.m.
Copenhagen time three (3) Banking Days prior to the proposed Advance B Drawdown
Date.

5.3                Disbursement of the
Advance B.
Subject to the terms of the Agreement, the Lender shall disburse Advance B to
the Borrower on the Advance B Drawdown Date by paying the proceeds thereof,
less any fees permitted to be deducted therefrom, to the Borrower’s account as
specified in the Advance B Drawdown Notice.

6.                  LAW AND  JURISDICTION

6.1                Law. This Amendment shall be
governed by Danish law.

6.2                Main jurisdiction. Any dispute arising out
of or in connection with this Amendment shall be settled by the Maritime and
Commercial Court in Copenhagen (Sø- og
Handelsretten i København). This shall, however, not limit the right
of the Lender to initiate proceedings against the Borrower, any of its assets
or any of the Securities in any other competent jurisdiction. Any decision of
the Maritime and Commercial Court in Copenhagen, Denmark may be appealed to the
Danish Supreme Court.

The parties have entered into this Amendment on the
date set forth in the beginning of this Amendment.

As Borrower,

	
  Stolt Tankers Finance B.V:

  	
   

  	
  Witnessed by:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature:

  	
  /s/ Walter Lion

  	
   

  	
   

  	
  /s/ Lauren Cramer

  	
   

  
	
  Print Name:

  	
  Walter Lion

  	
   

  	
   

  	
  Print name: Lauren Cramer

  
	
  Capacity:

  	
  Attorney-in-fact

  	
   

  	
   

  	
   

  

 

 10
 

As Lender:

Danish Ship Finance A/S

(Danmarks
Skibskredit A/S):

	
  Signature:

  	
  /s/ Erik I.
  Lassen

  	
   

  	
   

  	
  /s/ Lene Skadborg

  	
   

  
	
  Print Name:

  	
  Erik I. Lassen

  	
   

  	
   

  	
  Print name:  Lene Skadborg

  
	
  Capacity:

  	
  Senior VP

  	
   

  	
   

  	
  Capacity:    Ass.
  VP

  

 

As joint and several guarantors (selvskyldnerkautionister)

The Parent Companies:

	
  Stolt-Nielsen S.A.:

  	
   

  	
  Witnessed by:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature:

  	
  /s/ Walter Lion

  	
   

  	
   

  	
  /s/ Lauren Cramer

  	
   

  
	
  Print Name:

  	
  Walter Lion

  	
   

  	
   

  	
  Print name: Lauren Cramer

  
	
  Capacity:

  	
  Attorney-in-fact

  	
   

  	
   

  	
   

  

 

 

	
  Stolt-Nielsen Transportation Group Ltd., Liberia:

  	
   

  	
  Witnessed
  by:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature:

  	
  /s/ Walter Lion

  	
   

  	
   

  	
  /s/ Lauren Cramer

  	
   

  
	
  Print Name:

  	
  Walter Lion

  	
   

  	
   

  	
  Print name: Lauren Cramer

  
	
  Capacity:

  	
  Attorney-in-fact

  	
   

  	
   

  	
   

  

 

	
  Stolt-Nielsen Transportation Group Ltd., Bermuda:

  	
   

  	
  Witnessed
  by:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature:

  	
  /s/ Walter Lion

  	
   

  	
   

  	
  /s/ Lauren Cramer

  	
   

  
	
  Print Name:

  	
  Walter Lion

  	
   

  	
   

  	
  Print name: Lauren Cramer

  
	
  Capacity:

  	
  Attorney-in-fact

  	
   

  	
   

  	
   

  

 

 11
 

 

	
  Stolt-Nielsen Investments N.V.:

  	
   

  	
  Witnessed
  by:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature:

  	
  /s/ Walter Lion

  	
   

  	
   

  	
  /s/ Lauren Cramer

  	
   

  
	
  Print Name:

  	
  Walter Lion

  	
   

  	
   

  	
  Print name: Lauren Cramer

  
	
  Capacity:

  	
  Attorney-in-fact

  	
   

  	
   

  	
   

  

 

	
  Stolt-Nielsen Holdings B.V.:

  	
   

  	
  Witnessed
  by:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature:

  	
  /s/ Walter Lion

  	
   

  	
   

  	
  /s/ Lauren Cramer

  	
   

  
	
  Print Name:

  	
  Walter Lion

  	
   

  	
   

  	
  Print name: Lauren Cramer

  
	
  Capacity:

  	
  Attorney-in-fact

  	
   

  	
   

  	
   

  

 

	
  Stolt-Nielsen Transportation Group B.V.:

  	
   

  	
  Witnessed
  by:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature:

  	
  /s/ Walter Lion

  	
   

  	
   

  	
  /s/ Lauren Cramer

  	
   

  
	
  Print Name:

  	
  Walter Lion

  	
   

  	
   

  	
  Print name: Lauren Cramer

  
	
  Capacity:

  	
  Attorney-in-fact

  	
   

  	
   

  	
   

  

 

The Continuing Shipowning Companies:

	
  Stolt Achievement B.V.

  	
   

  	
  Witnessed
  by:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature:

  	
  /s/ Walter Lion

  	
   

  	
   

  	
  /s/ Lauren Cramer

  	
   

  
	
  Print Name:

  	
  Walter Lion

  	
   

  	
   

  	
  Print name: Lauren Cramer

  
	
  Capacity:

  	
  Attorney-in-fact

  	
   

  	
   

  	
   

  

 

	
  Stolt Concept B.V.:

  	
   

  	
  Witnessed
  by:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature:

  	
  /s/ Walter Lion

  	
   

  	
   

  	
  /s/ Lauren Cramer

  	
   

  
	
  Print Name:

  	
  Walter Lion

  	
   

  	
   

  	
  Print name: Lauren Cramer

  
	
  Capacity:

  	
  Attorney-in-fact

  	
   

  	
   

  	
   

  

 

 12
 

 

	
  Stolt Confidence B.V.:

  	
   

  	
  Witnessed
  by:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature:

  	
  /s/ Walter Lion

  	
   

  	
   

  	
  /s/ Lauren Cramer

  	
   

  
	
  Print Name:

  	
  Walter Lion

  	
   

  	
   

  	
  Print name: Lauren Cramer

  
	
  Capacity:

  	
  Attorney-in-fact

  	
   

  	
   

  	
   

  

 

	
  Stolt Creativity B.V.:

  	
   

  	
  Witnessed
  by:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature:

  	
  /s/ Walter Lion

  	
   

  	
   

  	
  /s/ Lauren Cramer

  	
   

  
	
  Print Name:

  	
  Walter Lion

  	
   

  	
   

  	
  Print name: Lauren Cramer

  
	
  Capacity:

  	
  Attorney-in-fact

  	
   

  	
   

  	
   

  

 

	
  Stolt Efficiency B.V.:

  	
   

  	
  Witnessed
  by:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature:

  	
  /s/ Walter Lion

  	
   

  	
   

  	
  /s/ Lauren Cramer

  	
   

  
	
  Print Name:

  	
  Walter Lion

  	
   

  	
   

  	
  Print name: Lauren Cramer

  
	
  Capacity:

  	
  Attorney-in-fact

  	
   

  	
   

  	
   

  

 

	
  Stolt Effort B.V.:

  	
   

  	
  Witnessed
  by:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature:

  	
  /s/ Walter Lion

  	
   

  	
   

  	
  /s/ Lauren Cramer

  	
   

  
	
  Print Name:

  	
  Walter Lion

  	
   

  	
   

  	
  Print name: Lauren Cramer

  
	
  Capacity:

  	
  Attorney-in-fact

  	
   

  	
   

  	
   

  

 

	
  Stolt Innovation B.V.:

  	
   

  	
  Witnessed
  by:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature:

  	
  /s/ Walter Lion

  	
   

  	
   

  	
  /s/ Lauren Cramer

  	
   

  
	
  Print Name:

  	
  Walter Lion

  	
   

  	
   

  	
  Print name: Lauren Cramer

  
	
  Capacity:

  	
  Attorney-in-fact

  	
   

  	
   

  	
   

  

 

 13
 

 

	
  Stolt Inspiration B.V.:

  	
   

  	
  Witnessed
  by:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature:

  	
  /s/ Walter Lion

  	
   

  	
   

  	
  /s/ Lauren Cramer

  	
   

  
	
  Print Name:

  	
  Walter Lion

  	
   

  	
   

  	
  Print name: Lauren Cramer

  
	
  Capacity:

  	
  Attorney-in-fact

  	
   

  	
   

  	
   

  

 

For the purpose of Article 1 of the Protocol to the
Brussels Convention of 1968 on, inter alia,
the enforceability of foreign court awards, Stolt-Nielsen S.A. expressly and
specifically accepts the jurisdiction clause contained in Clause 6.2 of this
Agreement.

	
  Stolt-Nielsen S.A.:

  	
   

  	
  Witnessed
  by:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature:

  	
  /s/ Walter Lion

  	
   

  	
   

  	
  /s/ Lauren Cramer

  	
   

  
	
  Print Name:

  	
  Walter Lion

  	
   

  	
   

  	
  Print name: Lauren Cramer

  
	
  Capacity:

  	
  Attorney-in-fact

  	
   

  	
   

  	
   

  

 

 14
 

Schedule
1

CONDITIONS PRECEDENT

In this Schedule 2, where certified
copies are required, the copies provided should be certified as true copies by
a lawyer, a company director or the company secretary of the relevant
entity.  If an original document has been
accepted by the Lender, in its discretion, in the form of a PDF or faxed copy
of the original, then the original shall be transmitted to the Lender as
promptly as possible.

PART A

ON OR PRIOR TO THE SIGNING OF THE AGREEMENT

1.           CORPORATE DOCUMENTS

(a)        The Borrower

(i)        Certified copies of
certificate of incorporation, articles of association and by-laws of the
Borrower or a certificate confirming that there have been no changes to such
documents as they were provided to the Lender in connection with the closing of
the Loan Agreement on 27 October 2005;

(ii)       Certified copies of
minutes from a meeting of the board of directors of the Borrower approving the
Borrower’s entering into of Amendment No. 2 to the Agreement and each of the
Security Documents to which the Borrower is a party;

(iii)      Certified copies of
minutes of a meeting of shareholders of the Borrower approving the Borrower’s
entering into of Amendment No. 2 to the Agreement and each of the Security
Documents to which the Borrower is a party, if such shareholders’ meeting is a
requirement for the Borrower;

(iv)      A specimen of the
signature of each person authorised on behalf of the Borrower to execute
Amendment No. 2 to the Agreement and any of the Security Documents to which the
Borrower is a party and to send any document or notice in connection with the
Agreement or any of the Security Documents to which the Borrower is a party.

 15
 

(v)       To the extent necessary,
original powers of attorney issued by the Borrower in favour of any person
executing Amendment No. 2 to the Agreement or any of the Security Documents to
which the Borrower is a party.

(b)        Each of the Guarantors

(i)        Certified copies of each
such companies’ certificate of incorporation, articles of association and
by-laws or, except in respect of Stolt Achievement B.V., a certificate
confirming that there have been no changes to such documents as they were
provided to the Lender in connection with the closing of the Loan Agreement on
27 October 2005;

(ii)       Certified copies of
minutes from a meeting of the board of directors of each such company approving
such company’s signing of Amendment No. 2 to the Agreement and entering into of
each of the Security Documents to which such company is a party;

(iii)      Certified copies of
minutes of a meeting of shareholders of such company approving such company’s
signing of Amendment No. 2 to the Agreement and entering into of each of the
Security Documents to which such Company is a party, if such shareholders’
meeting is a requirement for such company;

(iv)      A specimen of the
signature of each person authorised on behalf of each such company to execute
Amendment No. 2 to the Agreement and any of the Security Documents to which
such company is a party and to send any document or notice in connection with
the Agreement or any of the Security Documents to which such company is a
party.

(v)       To the extent necessary,
original powers of attorney issued by such company in favour of any person
executing Amendment No. 2 to the Agreement or any of the Security Documents to
which such company is a party.

2.          AMENDMENT NO. 2 TO THE
AGREEMENT AND SECURITY DOCUMENTS

(a)        Original Amendment No. 2
to the Agreement (together with Schedules) duly executed by all parties
thereto.

(b)        Original Parent Companies
Guarantee in the form attached as Schedule 7 to this Amendment duly
executed by all parties thereto.

 16

(c)                        Original Continuing Shipowning Companies
Guarantee in the form attached as Schedule 8 to this Amendment duly
executed by all parties thereto.

(d)                       Original Intermediate Companies Undertaking in
the form attached as Schedule 9 duly executed by all parties thereto.

(e)                        Original Insurances Assignment securing all
Tranches in the form attached as Schedule 10 duly executed by all
parties thereto.

(f)                          Original Earnings Assignment securing all
Tranches in the form attached as Schedule 11 duly executed by all parties
thereto.

(g)                       Original Mortgage and Deed of Covenants in
respect of each Continuing Vessel securing all Tranches in the form attached as
Schedule 12 duly executed by all parties thereto.

3.         MS STOLT ACHIEVEMENT DOCUMENTATION

(a)                           Evidence that MS Stolt Achievement is
registered with the Cayman Islands Ship Register in the name of Stolt
Achievement B.V. and that MS Stolt Achievement is free of any registered
mortgages and encumbrances, other than the Mortgage in favour of the Lender.

(b)                          Certified copies of (i) clean class
certificate and (ii) tonnage certificate for MS Stolt Achievement.

(c)                           Evidence that the insurances required to be
taken out pursuant to Clause 14 of the Agreement in respect of MS Stolt
Achievement have been taken out and are in full force and effect.

(d)                          A certified copy of each charter to which M/S
Stolt Achievement is subject.

(e)                           A certified copy of the Stolt Tanker Joint
Service Agreement or a certificate confirming that there have been no changes
to such document as it was provided to the Lender in connection with the
closing of the Loan Agreement on 27 October 2005.

 17
 

4.
        PERFECTION OF SECURITY ARRANGEMENTS

(a)                           Evidence that the Insurances Assignment has
been perfected in accordance with its terms by way of notice to the insurers and
that loss payable and mortgagee clauses will be included in the relevant
insurances in favour of the Lender.

(b)                          Evidence that each Mortgage and Deed of
Covenants has been duly registered with the Cayman Islands Ship Register with
first priority.

5.                          LEGAL OPINIONS

(a)                           Original legal opinion from Luxembourg counsel
in form and substance satisfactory to the Lender.

(b)                          Original legal opinion from Alan Winsor in
respect of Liberian law in form and substance satisfactory to the Lender.

(c)                           Original legal opinion from Bermuda counsel in
form and substance satisfactory to the Lender.

(d)                          Original legal opinion from Netherlands
Antilles counsel in form and substance satisfactory to the Lender.

(e)                           Original legal opinion from Dutch counsel in
form and substance satisfactory to the Lender.

(f)                             Original legal opinion from Cayman Islands
counsel in form and substance satisfactory to the Lender.

(g)                          Original legal opinion from Kromann Reumert,
Danish counsel to the Lender, in form and substance satisfactory to the Lender.

6.                          MISCELLANEOUS

(a)                        Such additional documents, opinions,
certificates, authorisations or assurances as the Lender may reasonably
require; provided however, that any such additional material is requested from
the Borrower at least three days prior to the Advance B Drawdown Date.

 18
 

7           LENDER DOCUMENTS

(a)                           Notice of Release and Reassignment of
Insurances for each Continuing Vessel.

(b)                          Memorandum of discharge of each existing
mortgage in favour of the Lender over the Continuing Vessels.

(c)                           Evidence of the signing powers of the persons
signing this Amendment and the Security Documents to which the Lender is a
party on behalf of the Lender.

 19
 

Schedule 2

FORM
OF ADVANCE B DRAWDOWN NOTICE

	
  From:

  	
   

  	
  Stolt Tankers Finance B.V., Westerlaan 5, 3016 CK
  Rotterdam, The Netherlands

  
	
   

  	
   

  	
   

  
	
  To:

  	
   

  	
  Danish Ship Finance A/S (Danmarks Skibskredit A/S),
  Sankt Annæ Plads 3, DK-1250 Copenhagen K, Denmark

  
	
   

  	
   

  	
   

  
	
  Dated:

  	
   

  	
  20 July 2006

  

 

Dear Sirs,

LOAN AGREEMENT- USD 225,779,737.18 EXISTING FINANCING, USD
100,000,000 NEW FINANCING TOP UP TERM LOAN, AND USD 55,000,000 ADDITIONAL
ADVANCE – ADVANCE B DRAWDOWN NOTICE

We refer to the loan
agreement dated 27 October 2005 (as amended by Amendment No. 1 thereto dated 26
June 2006 and Amendment No. 2 thereto dated 19 July 2006, the “Agreement”)
between Stolt Tankers Finance B.V., as Borrower and Danish Ship Finance A/S
(Danmarks Skibskredit A/S) as Lender. Terms defined in the Agreement shall have
the same meaning when used herein.

1.                             We hereby give the Advance B Drawdown Notice
and request that Advance B in the amount of USD 55,000,000 (net of fees
permitted to be deducted therefrom in accordance with the provisions of Clause
9 of the Agreement) be disbursed to account no. 40675715 in the name of Stolt
Nielsen Transportation Group at Citibank N.A., New York, NY, Swift CITIUS33.

2.                             We confirm that

(a)                                       all applicable conditions precedent set forth
in Clause 4.3 of the Agreement and all conditions precedent set forth on Schedule
2 to Amendment No. 2 to the Agreement have been fulfilled, or that if any
document required by such conditions to be an original has been accepted by the
Lender in the form of a PDF copy or fax copy of such original, then such
original shall be transmitted to the Lender as promptly as possible;

(b)                                      the representations and warranties made in
Clause 16 of the Agreement are true and correct on and as of the date hereof,
as if made on and as of the date hereof;

 20
 

(c)                                       the undertakings made in Clause 17 of the
Agreement and the requirements as to insurance contained in Clause 14 of the
Agreement have been complied with; and

(d)                                      no Event of Default or Potential Event of
Default, has occurred and is continuing or will occur on the Drawdown Date.

3.                             We shall on demand pay and indemnify the Lender for all costs, losses and
expenses incurred by the Lender (including, without limitation, Interest
Breakage Costs, in the event that we, whether by reason or failure to satisfy
any condition precedent or otherwise, fail to draw Advance B following the
delivery of this Advance B Drawdown Notice.

4.                             This Advance B Drawdown Notice is irrevocable and unconditional.

Yours faithfully,

	
  Stolt Tankers Finance B.V:

  	
   

  	
  Witnessed by:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Print Name:

  	
  Walter Lion

  	
   

  	
   

  	
  Print name: Lauren Cramer

  
	
  Capacity:

  	
  Attorney-in-fact

  	
   

  	
   

  	
   

  

 

 21
 

Schedule 3

[Intentionally
omitted]

 22
 

Schedule 4

[Intentionally
omitted]

 23
 

Schedule 5

[Intentionally omitted]

 24
 

Schedule 6

TRANCHE
B REPAYMENT SCHEDULE

 25
 

Schedule 7

Parent
Companies Guarantee

FORM OF PARENT COMPANIES
GUARANTEE

GUARANTEE

(“SELVSKYLDNERKAUTION”)

THIS
GUARANTEE, dated 19
July 2006 (the “Guarantee”) is
made by the following companies (collectively, the “Guarantors”), as joint and several Guarantors:

(1)                                  Stolt-Nielsen S.A., a company duly
incorporated and existing under the laws of the Grand Duchy of Luxembourg, with
registered address at 23 avenue Monterey, L-2086 Luxembourg (“SNSA”);

(2)                                  Stolt-Nielsen Transportation Group Ltd,
Liberia, a company duly incorporated and existing under the laws of Liberia,
with registered address at 80 Broad Street, Monrovia, Liberia (“SNTG-LIB”);

(3)                                  Stolt-Nielsen Transportation Group Ltd.,
Bermuda, a Bermuda an exempted limited liability company with registered
address at Clarendon House, 2 Church Street, Hamilton HM11 Bermuda (the “SNTG-BER”);

(4)                                  Stolt-Nielsen Investments N.V., a Netherlands
Antilles limited liability company with registered address at De Ruyterkade,
Curacao, Netherlands Antilles (the “SNI”);

(5)                                  Stolt-Nielsen Holdings B.V., a Dutch limited
liability company with registered address at Westerlaan 5, 3016 CK Rotterdam,
The Netherlands (the “SNH”);

(6)                                  Stolt-Nielsen Transportation Group B.V., a
Dutch limited liability company with registered address at Westerlaan 5, 3016
CK Rotterdam, The Netherlands (the “SNTG BV”);

in favour of Danish Ship
Finance A/S (Danmarks Skibskredit A/S) (the “Lender”).
Capitalised terms used herein and not otherwise defined herein shall have the
meaning set forth in the Loan Agreement between Stolt Tankers Finance B.V. (the
“Borrower”) and the Lender.

WHEREAS:

(A)                              The Loan Agreement. The Borrower and the Lender are parties to a
USD 225,779,737.18 existing financing, USD 100,000,000 new financing top up
term loan and USD 55,000,000 additional advance agreement dated 27 October 2005
and amended by Amendment No. 1 

 26
 

thereto dated 26 June 2006 and Amendment No. 2
thereto dated the date hereof (as so amended and as may be further amended from
time to time, the “Loan Agreement”).
Pursuant to Amendment No. 2 to the Loan Agreement, among other things, an
additional advance in the amount of USD 55,000,000 will be made available by
the Lender to the Borrower, Stolt Achievement B.V. will be added as a
Continuing Shipowning Company and MS Stolt Achievement will be added as a
Continuing Vessel.

(B)                                The Existing Guarantee. On 27 October 2005, each of the Guarantors
executed a guarantee (the “Existing Guarantee”)
pursuant to which it guaranteed on a joint and several basis, all of the
Borrower’s obligations under the Loan Agreement (including, without limitation,
the Borrower’s obligations to repay the Existing Tranches and the New
Tranches).

(C)                                Corporate structure. The Borrower and each Continuing Shipowning
Company is a 100 per cent owned subsidiary of SNTG BV, which is a 100 per cent
owned subsidiary of SNH, which is a 100 per cent owned subsidiary of SNI, which
is a 100 per cent owned subsidiary SNTG-BER, which is a 100 per cent owned
subsidiary of SNTG-LIB, which is a 100 per cent owned subsidiary of SNSA.

(D)                               This Guarantee as a condition precedent. It is a condition precedent to the
effectiveness of the amendments to the Loan Agreement made by Amendment No. 2
thereto and to the Lender’s obligation to make Advance B available to the
Borrower under the Loan Agreement that each of the Guarantors executes and
delivers this Guarantee.

NOW,
THEREFORE, in
consideration of the premises and for other valuable consideration, the receipt
and adequacy of which the Guarantors hereby acknowledge, each of the Guarantors
hereby agrees as follows:

Each of the Guarantors hereby
guarantees, jointly and severally (and jointly and severally with each of the
Continuing Shipowning Companies which are guaranteeing the same obligations of
the Borrower pursuant to the terms of a separate guarantee), in favour of the
Lender, as selvskyldnerkautionist
(as such term is defined pursuant to Danish law), the full and punctual payment
and performance when due (whether at the stated maturity, upon acceleration or
otherwise) of all amounts payable by, and all other obligations to be performed
by, the Borrower under the Loan Agreement, whether now due or hereafter
arising. However, for the purpose of this Guarantee only, all obligations of
the Borrower to perform specific obligations (other than the obligation to make
payments) shall be converted by the Lender into an obligation to pay an amount
fixed by the Lender in its sole discretion. Consequently, the obligations of
the Guarantors hereunder shall be limited to the payment of money amounts.

Upon failure by the Borrower
to pay any amount as and when the same is due under the terms of the Loan
Agreement, the Guarantors, forthwith on demand, shall pay the amount which the
Bor-

 27
 

rower failed to pay (together
with any and all amounts due and payable by the Borrower as a result of such
failure to pay), in immediately available funds and without set-off, deduction,
withholdings or counterclaim at the place specified in the Loan Agreement.

The obligations of the
Guarantors hereunder shall be irrevocable, unconditional and absolute without
regard to:

a)                            any extensions, renewals, settlements, compromises, indulgences, waivers
or releases in respect of any obligation of the Borrower or any other party
under the Loan Agreement or under any of the Security Documents;

b)                           any modification or amendment of, or supplement to, the Loan Agreement;

c)                            any release, non-perfection or invalidity of any direct or indirect
security for any obligation of the Borrower or any other party under the Loan
Agreement;

d)                           any change in the corporate existence, structure or ownership of, or any
insolvency, bankruptcy, reorganisation or other similar proceedings affecting
the Borrower, any of the Guarantors, any of the Continuing Shipowning Companies
or any other party to the Loan Agreement or any of the Security Documents or
any of their respective assets; or

e)                            any invalidity or unenforceability (for any reason relating to or
against the Borrower or any other party) of the Loan Agreement or any of the
Security Documents or any provision of applicable law or regulation purporting
to prohibit the payment by the Borrower or to reduce or otherwise limit the
obligations of the Borrower or any other party under the Loan Agreement or the
Security Documents.

The Guarantors’ obligations
hereunder shall remain in full force and effect until the amounts payable by
the Borrower under the Loan Agreement have been paid in full and all
obligations of the Borrower thereunder have been performed in full. If, at any
time, any amount paid by the Borrower under the Loan Agreement is rescinded or
must otherwise be restored or returned upon the insolvency, bankruptcy or
reorganisation of the Borrower or otherwise, the Guarantors’ obligations
hereunder with respect to such payment shall be reinstated at such time as
though such payment had not been made.

In the event of the Borrower’s
default under the Loan Agreement, the Guarantors shall promptly remedy such
default.

The Guarantors waive any
right they may have of first requiring the Lender to proceed against or enforce
any security of, or claim payment from, the Borrower, any of the Continuing
Shipowning Companies, any other party to any of the Security Documents or any
other person.

 28
 

Each of the Guarantors
confirms that its rights of subrogation and rights to proceed against the
Borrower (including without limitation the right to initiate legal proceedings
against the Borrower and the right to claim recoveries from the Borrower’s
estate), any of the Continuing Shipowning Companies, or any of the other
Guarantors, and rights to enforce the Security Documents or any other security
established in favour of the Lender are subordinated to the Lender’s rights
against the Borrower, each of such other parties and  under the Security Documents. Each of the
Guarantors agrees that it shall not exercise any such right unless either the
Indebtedness has been paid in full or the Lender’s prior written approval
(which may be given or withheld at the Lender’s discretion) is obtained.

Each of the Guarantors
confirms that it holds free and unencumbered title to the shares in its direct
subsidiary, as set forth in Whereas paragraph (C) and agrees and undertakes
that it will not, without first having obtained the Lender’s prior written
approval (which may be given or withheld at the Lender’s discretion), sell any
of such shares or grant or allow a third party to obtain a security interest
therein, or make or permit to be made any other changes to the structure of the
SNSA Group as described in Whereas paragraph (C). Each of the Guarantors is
aware of the guarantee of the Indebtedness provided by each of the Continuing
Shipowning Companies and of the Intermediate Companies’ Undertaking entered
into by SNTG-BER, SNI, SNH, and SNTG BV as contemplated by the Loan Agreement.
Each of the Guarantors undertakes to perform its rights and duties as a holding
company and shareholder with a view to enabling each of the other Guarantors,
the Borrower, and each of the Continuing Shipowning Companies to comply with
their guarantees and undertakings set forth in the Loan Agreement and each of
the Security Documents.

This Guarantee is not
assignable except, in whole or part, to any bank or financial institution which
takes a participation in the Tranches outstanding under the Loan Agreement.

This Guarantee shall be
governed by and construed according to Danish law.

Any dispute hereunder shall
be settled by the Maritime and Commercial Court in Copenhagen, Denmark, with
right of appeal to the Danish Supreme Court. This shall, however, not limit the
right of the Lender to initiate proceedings against any of the Guarantors or
any of their respective assets in any other competent jurisdiction.

The obligations of the
Guarantors under this Guarantee in respect of the Existing Tranches and New
Tranches are a continuation without interruption of their respective obligations
in respect of the Existing Tranches and New Tranches under the Existing
Guarantee. Upon execution of this Guarantee by each of the Guarantors, the
Existing Guarantee shall terminate and neither the Guarantors nor the Lender
shall have any rights or obligations thereunder.

 29

Signed, sealed, delivered and
executed as a deed:

	
  Stolt-Nielsen S.A.:

  	
   

  	
  Witnessed by:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Print Name:

  	
  Walter Lion

  	
   

  	
   

  	
  Print name: Lauren Cramer

  
	
  Capacity:

  	
  Attorney-in-fact

  	
   

  	
   

  	
   

  

 

 

	
  Stolt-Nielsen Transportation Group Ltd.,
  Liberia

  	
   

  	
  Witnessed by:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Print Name:

  	
  Walter Lion

  	
   

  	
   

  	
  Print name: Lauren Cramer

  
	
  Capacity:

  	
  Attorney-in-fact

  	
   

  	
   

  	
   

  

 

SIGNED as a DEED on behalf of

STOLT-NIELSEN TRANSPORTATION
GROUP LTD, Bermuda

by Walter Lion being a person who is
 acting under power of attorney granted
by that company

	
  

  	
   

  	
  Witnessed by:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Print Name:

  	
  Walter Lion

  	
   

  	
   

  	
  Print name: Lauren Cramer

  
	
  Capacity:

  	
  Attorney-in-fact

  	
   

  	
   

  	
   

  

 

	
  Stolt-Nielsen Investments N.V.:

  	
   

  	
  Witnessed by:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Print Name:

  	
  Walter Lion

  	
   

  	
   

  	
  Print name: Lauren Cramer

  
	
  Capacity:

  	
  Attorney-in-fact

  	
   

  	
   

  	
   

  

 

 30
 

 

	
  Stolt-Nielsen Holdings B.V.:

  	
   

  	
  Witnessed by:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Print Name:

  	
  Walter Lion

  	
   

  	
   

  	
  Print name: Lauren Cramer

  
	
  Capacity:

  	
  Attorney-in-fact

  	
   

  	
   

  	
   

  

 

	
  Stolt-Nielsen Transportation Group B.V.:

  	
   

  	
  Witnessed by:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Print Name:

  	
  Walter Lion

  	
   

  	
   

  	
  Print name: Lauren Cramer

  
	
  Capacity:

  	
  Attorney-in-fact

  	
   

  	
   

  	
   

  

 

 

For the purpose of Article 1
of the Protocol to the Brussels Convention of 1968 on inter alia the
enforceability of foreign court awards, Stolt-Nielsen S.A. expressly and
specifically accepts the jurisdiction clause contained in the last paragraph of
the Guarantee.

	
  Stolt-Nielsen S.A.:

  	
   

  	
  Witnessed by:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Print Name:

  	
  Walter Lion

  	
   

  	
   

  	
  Print name: Lauren Cramer

  
	
  Capacity:

  	
  Attorney-in-fact

  	
   

  	
   

  	
   

  

 

 31
 

 

	
  

  	
   

  	
  

  

 

Schedule 8 

Continuing
Shipowning Companies Guarantee

FORM OF CONTINUING SHIPOWNING
COMPANIES GUARANTEE

GUARANTEE

(“SELVSKYLDNERKAUTION”)

THIS
GUARANTEE, dated 19
July 2006 (the “Guarantee”) is
made by the following companies (collectively, the “Guarantors”), as joint and several Guarantors:

(1)                                  Stolt Achievement B.V., a Dutch limited
liability company with registered office in Schiedam, The Netherlands and with
offices at Westerlaan 5, 3016 CK Rotterdam, The Netherlands and with company
registration number                     ;

(2)                                  Stolt Concept B.V., a Dutch limited liability
company with registered office in Schiedam, The Netherlands and with offices at
Westerlaan 5, 3016 CK Rotterdam, The Netherlands and with company registration
number 24341651;

(3)                                  Stolt Confidence B.V., a Dutch limited
liability company with registered office in Schiedam, The Netherlands and with
offices at Westerlaan 5, 3016 CK Rotterdam, The Netherlands and with company
registration number 24341646;

(4)                                  Stolt Creativity B.V., a Dutch limited
liability company with registered office in Schiedam, The Netherlands and with
offices at Westerlaan 5, 3016 CK Rotterdam, The Netherlands and with company
registration number 24341647;

(5)                                  Stolt Efficiency B.V., a Dutch limited
liability company with registered office in Schiedam, The Netherlands and with
offices at Westerlaan 5, 3016 CK Rotterdam, The Netherlands and with company
registration number 24341659;

(6)                                  Stolt Effort B.V., a Dutch limited liability
company with registered office in Schiedam, The Netherlands and with offices at
Westerlaan 5, 3016 CK Rotterdam, The Netherlands and with company registration
number 24341648;

(7)                                  Stolt Innovation B.V., a Dutch limited
liability company with registered office in Schiedam, The Netherlands and with
offices at Westerlaan 5, 3016 CK Rotterdam, The Netherlands and with company
registration number 24341645;

 32
 

(8)                                  Stolt Inspiration B.V., a Dutch limited
liability company with registered office in Schiedam, The Netherlands and with
offices at Westerlaan 5, 3016 CK Rotterdam, The Netherlands and with company
registration number 24341658;

(each of the companies listed
in 1 to 8 above being referred to herein as a “Guarantor” and, together, the “Guarantors”);

in favour of Danish Ship
Finance A/S (Danmarks Skibskredit A/S) (the “Lender”).
Capitalised terms used herein and not otherwise defined herein shall have the
meaning set forth in the Loan Agreement (as defined below) between Stolt
Tankers Finance B.V. (the “Borrower”)
and the Lender.

WHEREAS:

(A)                              The Loan Agreement. The Borrower and the Lender are parties to a
USD 225,779,737.18 existing financing, USD 100,000,000 new financing top up
term loan and USD 55,000,000 additional advance agreement dated 27 October 2005
and amended by Amendment No. 1 thereto dated 26 June 2006 and Amendment No. 2
thereto dated the date hereof (as so amended and as may be further amended from
time to time, the “Loan Agreement”).
Pursuant to Amendment No. 2 to the Loan Agreement, among other things, an
additional advance in the amount of USD 55,000,000 will be made available by
the Lender to the Borrower, Stolt Achievement B.V. will be added as a
Continuing Shipowning Company and MS Stolt Achievement will be added as a
Continuing Vessel.  The Tranches made
available to the Borrower under the Loan Agreement have been applied to the
financing of the Continuing Vessels owned by each of the Guarantors.

(B)                                The Existing Guarantee. On 27 October 2005, each of the Guarantors
(other than Stolt Achievement B.V.) executed a guarantee (the “Existing Guarantee”) pursuant to which it
guaranteed on a joint and several basis, all of the Borrower’s obligations
under the Loan Agreement (including, without limitation, the Borrower’s
obligations to repay the Existing Tranches and the New Tranches).

(C)                                Corporate structure. Each of the Guarantors is a 100 per cent
owned subsidiary of SNTG BV.

(D)                               This Guarantee as a condition precedent. It is a condition precedent to the
effectiveness of the amendments to the Loan Agreement made by Amendment No. 2
thereto and to the Lender’s obligation to make Advance B available to the
Borrower under the Loan Agreement that each of the Guarantors executes and
delivers this Guarantee.

 33
 

NOW,
THEREFORE, in
consideration of the premises and for other valuable consideration, the receipt
and adequacy of which the Guarantors hereby acknowledge, each of the Guarantors
hereby agrees as follows:

Each of the Guarantors hereby
guarantees, jointly and severally (and jointly and severally with each of the
Parent Companies which are guaranteeing the same obligations of the Borrower
pursuant to the terms of a separate guarantee), in favour of the Lender, as selvskyldnerkautionist (as such term is
defined pursuant to Danish law), the full and punctual payment and performance
when due (whether at the stated maturity, upon acceleration or otherwise) of
all amounts payable by, and all other obligations to be performed by, the
Borrower under the Loan Agreement, whether now due or hereafter arising.

Upon failure by the Borrower
to pay any amount as and when the same is due under the terms of the Loan
Agreement, the Guarantors, forthwith on demand, shall pay the amount which the
Borrower failed to pay (together with any and all amounts due and payable by
the Borrower as a result of such failure to pay), in immediately available
funds and without set-off, deduction, withholdings or counterclaim at the place
specified in the Loan Agreement.

The obligations of the
Guarantors hereunder shall be irrevocable, unconditional and absolute without
regard to:

a)                            any extensions, renewals, settlements, compromises, indulgences, waivers
or releases in respect of any obligation of the Borrower or any other party
under the Loan Agreement or under any of the Security Documents;

b)                           any modification or amendment of, or supplement to, the Loan Agreement;

c)                            any release, non-perfection or invalidity of any direct or indirect
security for any obligation of the Borrower or any other party under the Loan
Agreement;

d)                           any change in the corporate existence, structure or ownership of, or any
insolvency, bankruptcy, reorganisation or other similar proceedings affecting
the Borrower, any of the Guarantors, any of the Parent Companies, or any other
party to the Loan Agreement or any of the Security Documents or any of their
respective assets; or

e)                            any invalidity or unenforceability (for any reason relating to or
against the Borrower or any other party) of the Loan Agreement or any of the
Security Documents or any provision of applicable law or regulation purporting
to prohibit the payment by the Borrower or to reduce or otherwise limit the
obligations of the Borrower or any other party under the Loan Agreement or the
Security Documents.

 34
 

The Guarantors’ obligations
hereunder shall remain in full force and effect until the amounts payable by
the Borrower under the Loan Agreement have been paid in full and all
obligations of the Borrower thereunder have been performed in full. If, at any
time, any amount paid by the Borrower under the Loan Agreement is rescinded or
must otherwise be restored or returned upon the insolvency, bankruptcy or
reorganisation of the Borrower or otherwise, the Guarantors’ obligations
hereunder with respect to such payment shall be reinstated at such time as
though such payment had not been made.

In the event of the Borrower’s
default under the Loan Agreement, the Guarantors shall promptly remedy such
default.

The Guarantors waive any
right they may have of first requiring the Lender to proceed against or enforce
any security of, or claim payment from, the Borrower, any of the Parent
Companies, any other party to any of the Security Documents or any other
person.

Each of the Guarantors
confirms that its rights of subrogation and rights to proceed against the
Borrower (including without limitation the right to initiate legal proceedings
against the Borrower and the right to claim recoveries from the Borrower’s
estate), any of the Parent Companies, or any of the other Guarantors, and
rights to enforce the Security Documents or any other security established in
favour of the Lender are subordinated to the Lender’s rights against the
Borrower, each of such other parties and 
under the Security Documents. Each of the Guarantors agrees that it
shall not exercise any such right unless either the Indebtedness has been paid
in full or the Lender’s prior written approval (which may be given or withheld
at the Lender’s discretion) is obtained.

Each of the Guarantors has
entered into the Mortgage and Deed of Covenants, the Earnings Assignment and
the Insurances Assignment in respect of the Continuing Vessel owned by it. Each
of the Guarantors undertakes and warrants in favour of the Lender that it will
not, at any time during the Loan Period create or permit to exist any other
encumbrance of any kind over the Continuing Vessel owned by it, its insurances,
its other assets, its earnings or its income and, if any encumbrance arises by
law, it shall promptly take all such action as may be necessary.

This Guarantee is not
assignable except, in whole or part, to any bank or financial institution which
takes a participation in the Tranches outstanding under the Loan Agreement.

This Guarantee shall be
governed by and construed according to Danish law.

Any dispute hereunder shall
be settled by the Maritime and Commercial Court in Copenhagen, Denmark, with right
of appeal to the Danish Supreme Court. This shall, however, not limit the right
of the Lender to initiate proceedings against any of the Guarantors or any of
their respective assets in any other competent jurisdiction.

 35
 

The obligations of the
Guarantors under this Guarantee in respect of the Existing Tranches and the New
Tranches are a continuation without interruption of their respective
obligations in respect of the Existing Tranches and New Tranches under the
Existing Guarantee. Upon execution of this Guarantee by each of the Guarantors,
the Existing Guarantee shall terminate and neither the Guarantors nor the
Lender shall have any rights or obligations thereunder.

Signed, sealed, delivered and
executed as a deed:

	
  Stolt Achievement B.V.:

  	
   

  	
  Witnessed by:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Print Name:

  	
  Walter Lion

  	
   

  	
   

  	
  Print name: Lauren Cramer

  
	
  Capacity:

  	
  Attorney-in-fact

  	
   

  	
   

  	
   

  

 

	
  Stolt Concept B.V.:

  	
   

  	
  Witnessed by:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Print Name:

  	
  Walter Lion

  	
   

  	
   

  	
  Print name: Lauren Cramer

  
	
  Capacity:

  	
  Attorney-in-fact

  	
   

  	
   

  	
   

  

 

	
  Stolt Confidence B.V.:

  	
   

  	
  Witnessed by:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Print Name:

  	
  Walter Lion

  	
   

  	
   

  	
  Print name: Lauren Cramer

  
	
  Capacity:

  	
  Attorney-in-fact

  	
   

  	
   

  	
   

  

 

	
  Stolt Creativity B.V.:

  	
   

  	
  Witnessed by:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Print Name:

  	
  Walter Lion

  	
   

  	
   

  	
  Print name: Lauren Cramer

  
	
  Capacity:

  	
  Attorney-in-fact

  	
   

  	
   

  	
   

  

 

 36
 

 

	
  Stolt Efficiency B.V.:

  	
   

  	
  Witnessed by:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Print Name:

  	
  Walter Lion

  	
   

  	
   

  	
  Print name: Lauren Cramer

  
	
  Capacity:

  	
  Attorney-in-fact

  	
   

  	
   

  	
   

  

 

	
  Stolt Effort B.V.:

  	
   

  	
  Witnessed by:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Print Name:

  	
  Walter Lion

  	
   

  	
   

  	
  Print name: Lauren Cramer

  
	
  Capacity:

  	
  Attorney-in-fact

  	
   

  	
   

  	
   

  

 

	
  Stolt Innovation B.V.:

  	
   

  	
  Witnessed by:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Print Name:

  	
  Walter Lion

  	
   

  	
   

  	
  Print name: Lauren Cramer

  
	
  Capacity:

  	
  Attorney-in-fact

  	
   

  	
   

  	
   

  

 

	
  Stolt Inspiration B.V.:

  	
   

  	
  Witnessed by:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Print Name:

  	
  Walter Lion

  	
   

  	
   

  	
  Print name: Lauren Cramer

  
	
  Capacity:

  	
  Attorney-in-fact

  	
   

  	
   

  	
   

  

 

 37
 

                                                                                                                  

	
  

  	
   

  	
  

  

 

Schedule 9

FORM OF INTERMEDIATE
COMPANIES UNDERTAKING

INTERMEDIATE COMPANIES
UNDERTAKING

THIS
UNDERTAKING, dated 19
July 2006 (the “Undertaking”), is
made by the following companies (collectively, the “Intermediate Companies”):

(1)                                  Stolt-Nielsen Transportation Group Ltd.,
Bermuda, a Bermuda an exempted limited liability company with registered
address at Clarendon House, 2 Church Street, Hamilton HM11 Bermuda (the “SNTG-BER”);

(2)                                  Stolt-Nielsen Investments N.V., a Netherlands
Antilles limited liability company with registered address at De Ruyterkade,
Curacao, Netherlands Antilles (the “SNI”);

(3)                                  Stolt-Nielsen Holdings B.V., a Dutch limited
liability company with registered address at Westerlaan 5, 3016 CK Rotterdam,
The Netherlands (the “SNH”); and

(4)                                  Stolt-Nielsen Transportation Group B.V., a
Dutch limited liability company with registered address at Westerlaan 5, 3016
CK Rotterdam, The Netherlands (the “SNTG BV”);

in favour of Danish Ship
Finance A/S (Danmarks Skibskredit A/S) (the “Lender”).
Capitalised terms used herein and not otherwise defined herein shall have the
meaning set forth in the Loan Agreement between Stolt Tankers Finance B.V. (the
“Borrower”) and the Lender.

WHEREAS:

(A)                              The Loan Agreement. The Borrower and the Lender are parties to a
USD 225,779,737.18 existing financing, USD 100,000,000 new financing top up
term loan and USD 55,000,000 additional advance agreement dated 27 October 2005
and amended by Amendment No. 1 thereto dated 26 June 2006 and Amendment No. 2
thereto dated the date hereof (as so amended and as may be further amended from
time to time, the “Loan Agreement”).
Pursuant to Amendment No. 2 to the Loan Agreement, among other things, an
additional advance in the amount of USD 55,000,000 will be made available by
the Lender to the Borrower, Stolt Achievement B.V. will be added as a
Continuing Shipowning Company and MS Stolt Achievement will be added as a
Continuing Vessel.

(B)                                The Existing Undertaking. On 27 October 2005, each of the Intermediate
Companies entered into a document entitled Intermediate Companies Undertaking
(the “Existing Undertaking”)
pursuant to which, among other things, the Intermediate Companies made certain
undertakings in favour of the Lender in connection with the Loan Agreement.

 38
 

(C)                                Corporate structure. The Borrower and each Continuing Shipowning
Company is a 100 per cent owned subsidiary of SNTG BV, which is a 100 per cent
owned subsidiary of SNH, which is a 100 per cent owned subsidiary of SNI, which
is a 100 per cent owned subsidiary SNTG-BER, which is a 100 per cent owned
subsidiary of SNTG-LIB, which is a 100 per cent owned subsidiary of SNSA.

(D)                               This Undertaking as a condition precedent. It is a condition precedent to the
effectiveness of the amendments to the Loan Agreement made by Amendment No. 2
thereto and to the Lender’s obligation to make Advance B available to the
Borrower under the Loan Agreement that each of the Intermediate Companies
executes and delivers this Undertaking.

Now, therefore, the parties
hereto agree as follows:

1.                                      Defined terms. Capitalised terms used herein and not
otherwise defined herein are used with the meanings ascribed to them in the
Loan Agreement.

2.                                      SNSA Group structure. Each of the Intermediate Companies
represents and warrants that the corporate structure of the SNSA Group is as
set forth in Whereas Clause C and undertakes that it will not take any action
or permit any action to be taken that would result in a change to such SNSA
Group corporate structure.

3.                                      The Loan Agreement. Each of the Intermediate Companies has
signed the Loan Agreement and each of Amendment No. 1 and Amendment No. 2
thereto as a Parent Company Guarantor. Each of the Intermediate Companies has
made certain representations and warranties and undertakings in favour of the
Lender under the Loan Agreement. Each of the Intermediate Companies represents
and warrants in favour of the Lender that, to the best of its knowledge, there
is no misstatement of information or omission of information which makes any
statement contained in the Loan Agreement false or misleading.

4.                                      Additional undertakings. In addition to the representations and
warranties and undertakings made by each of the Intermediate Companies as
Guarantors under the Loan Agreement, each of the Intermediate Companies
represents, warrants and undertakes in favour of the Lender as follows:

(i)                                    No encumbrances: No pledge or other security interest exists,
and no pledge or other security interest will be created or permitted to exist,
in respect of the shares owned by it in any company in the SNSA Group or in
respect of any dividend payments made or to be made by any company in the SNSA
Group to it; and if any such pledge or other security interest is notified to
any of the Intermediate Companies in respect of its own shares, it will
immediately notify the Lender thereof. SNTG-LIB also makes the representation,
warranty and undertaking con-

 39
 

tained in this Clause 4(i) to the extent set forth
above its signature on the signature pages to this Undertaking.

(ii)                                 Intermediate Companies’
debt: It has neither
incurred, secured or guaranteed and will not incur, secure or guarantee, any
debt except for debt between it and other companies in the SNSA Group and debt
which is either subordinated to or ranks pari-passu with the Indebtedness;
provided, however, that, for the avoidance of doubt, all of the security
provided in favour of the Lender pursuant to the Security Documents shall
secure only the Indebtedness.

(iii)                              Subordination: All of its present or future claims against
the Borrower, any of the Continuing Shipowning Companies, SNSA, SNTG-LIB, or
any of the other Intermediate Companies, are and shall remain fully
subordinated to the claims of the Lender under the Loan Agreement and the
Security Documents.

(iv)                             Avoid Events of Default: It will not take, or cause or permit to be
taken, any action, which may give rise to an Event of Default or a Potential
Event of Default under the Loan Agreement, including, without limitation,
interfering with the Earnings of any of the Continuing Vessels or any other
income of any of the Continuing Shipowning Companies or the Borrower in any
manner which could or may hinder or prevent the Borrower from making any of the
payments required to be made by it under the Loan Agreement.

(v)                                Creditors meetings: It will arrange for the Lender to be
represented during any meetings held by it with any group (minimum 2) of its or
their creditors.

(vi)                             No obstruction: It will not do anything which may obstruct or
delay the exercise of any of the Lender’s rights under the Loan Agreement, this
Undertaking or any of the other Security Documents before or after any Event of
Default has occurred.

(vii)                          Further assurances. It will generally do or procure to be done
all things and acts and enter into any documents and provide any such
information as in the Lender’s opinion may be reasonably necessary or advisable
in order to secure the Lender’s rights under the Loan Agreement, this Undertaking
and any of the other Security Documents and it will do and cause to be done
such things as the Lender, in its reasonable opinion, may deem necessary in
order to manage the Lender’s rights under the Loan Agreement, this Undertaking
and any of the other Security Documents.

 40
 

5.                                      Joint and several obligations. The obligations of the Intermediate
Companies hereunder are joint and several.

6.                                      Governing law and jurisdiction. This Undertaking shall be governed by Danish
law and any dispute arising hereunder, shall be settled by the Maritime and
Commercial Court in Copenhagen with right of appeal to the Danish Supreme
Court. The Lender may enforce any of its rights under this Undertaking directly
against the Intermediate Companies in accordance with the principles contained
in the Danish Act on Civil Procedure, sec. 478,1.

7.                                      The Existing Undertaking. The obligations of the Intermediate
Companies under this Undertaking in respect of the Existing Tranches and New
Tranches and the Continuing Shipowning Companies (other than Stolt Achievement
B.V.) are a continuation without interruption of their respective obligations
in respect of the Existing Tranches and New Tranches and the Continuing
Shipowning Companies (other than Stolt Achievement B.V.) under the Existing Undertaking.
Upon execution of this Undertaking by each of the Intermediate Companies, the
Existing Undertaking shall terminate and neither the Intermediate Companies nor
the Lender shall have any rights or obligations thereunder.

In WITNESS whereof this Undertaking
has been entered into on the day and in the year stated at the beginning of
this Agreement and signed by the parties:

As
Intermediate Companies,

 

	
  Stolt-Nielsen Transportation Group Ltd.,
  Bermuda:

  	
   

  	
  Witnessed by:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Print Name:

  	
  Walter Lion

  	
   

  	
   

  	
  Print name: Lauren Cramer

  
	
  Capacity:

  	
  Attorney-in-fact

  	
   

  	
   

  	
   

  

 

	
  Stolt-Nielsen Investments N.V.:

  	
   

  	
  Witnessed by:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Print Name:

  	
  Walter Lion

  	
   

  	
   

  	
  Print name: Lauren Cramer

  
	
  Capacity:

  	
  Attorney-in-fact

  	
   

  	
   

  	
   

  

 

 41
 

 

	
  Stolt-Nielsen Holdings B.V.:

  	
   

  	
  Witnessed by:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Print Name:

  	
  Walter Lion

  	
   

  	
   

  	
  Print name: Lauren Cramer

  
	
  Capacity:

  	
  Attorney-in-fact

  	
   

  	
   

  	
   

  

 

	
  Stolt-Nielsen Transportation Group B.V.:

  	
   

  	
  Witnessed by:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Print Name:

  	
  Walter Lion

  	
   

  	
   

  	
  Print name: Lauren Cramer

  
	
  Capacity:

  	
  Attorney-in-fact

  	
   

  	
   

  	
   

  

 

SNTG-LIB is signing this
Undertaking below for the purposes of undertaking in favour of the Lender, in
line with the provisions of Clause 4(i) of the Undertaking that no pledge or
other security interest exists, and no pledge or other security interest will
be created or permitted to exist, in respect of the shares owned by it in any
company in the SNSA Group or in respect of any dividend payments made or to be
made by any company in the SNSA Group to it.

	
  Stolt-Nielsen Transportation Group Ltd.,
  Liberia:

  	
   

  	
  Witnessed by:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Print Name:

  	
  Walter Lion

  	
   

  	
   

  	
  Print name: Lauren Cramer

  
	
  Capacity:

  	
  Attorney-in-fact

  	
   

  	
   

  	
   

  

 

As
Lender:

Danish
Ship Finance A/S

(Danmarks Skibskredit A/S):

 

	
  Signature:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Print Name:

  	
   

  	
   

  	
   

  	
  Print name: 

  
	
  Capacity:

  	
   

  	
   

  	
   

  	
  Capacity:

  

 

 42

Schedule 10

FORM OF INSURANCES ASSIGNMENT

First Priority Assignment of
Insurances

M/S Stolt Achievement

M/S Stolt Concept

M/S Stolt Confidence

M/S Stolt Creativity

M/S Stolt Efficiency

M/S Stolt Effort

M/S Stolt Innovation

M/S Stolt Inspiration

THIS ASSIGNMENT
OF INSURANCES, dated
19 July 2006 (the “Insurances Assignment”)
is made by each of the following companies (collectively, the “Continuing Shipowning Companies”):

(1)           Stolt Achievement B.V., a Dutch limited
liability company with registered office in Schiedam, The Netherlands and with
offices at Westerlaan 5, 3016 CK Rotterdam, The Netherlands and with company
registration number                           
;

(2)           Stolt Concept B.V., a Dutch limited liability
company with registered office in Schiedam, The Netherlands and with offices at
Westerlaan 5, 3016 CK Rotterdam, The Netherlands and with company registration
number 24341651;

(3)           Stolt Confidence B.V., a Dutch limited
liability company with registered office in Schiedam, The Netherlands and with
offices at Westerlaan 5, 3016 CK Rotterdam, The Netherlands and with company
registration number 24341646;

(4)           Stolt Creativity B.V., a Dutch limited
liability company with registered office in Schiedam, The Netherlands and with
offices at Westerlaan 5, 3016 CK Rotterdam, The Netherlands and with company
registration number 24341647;

(5)           Stolt Efficiency B.V., a Dutch limited
liability company with registered office in Schiedam, The Netherlands and with
offices at Westerlaan 5, 3016 CK Rotterdam, The Netherlands and with company
registration number 24341659;

(6)           Stolt Effort B.V., a Dutch limited liability
company with registered office in Schiedam, The Netherlands and with offices at
Westerlaan 5, 3016 CK Rotterdam, The Netherlands and with company registration
number 24341648;

 43
 

(7)           Stolt Innovation B.V., a Dutch limited
liability company with registered office in Schiedam, The Netherlands and with
offices at Westerlaan 5, 3016 CK Rotterdam, The Netherlands and with company
registration number 24341645;

(8)           Stolt Inspiration B.V., a Dutch limited
liability company with registered office in Schiedam, The Netherlands and with
offices at Westerlaan 5, 3016 CK Rotterdam, The Netherlands and with company
registration number 24341658;

in favour of Danish Ship
Finance A/S (Danmarks Skibskredit A/S), Sankt Annæ Plads 3, DK-1250 Copenhagen
K, Denmark (the “Lender”).

WHEREAS:

(A)          The Loan Agreement. Stolt Tankers Finance B.V. (the “Borrower”) and the Lender are parties to a
USD 225,779,737.18 existing financing, USD 100,000,000 new financing top up
term loan and USD 55,000,000 additional advance agreement dated 27 October 2005
and amended by Amendment No. 1 thereto dated 26 June 2006 and Amendment No. 2
thereto dated the date hereof (as so amended and as may be further amended from
time to time, the “Loan Agreement”).
Pursuant to Amendment No. 2 to the Loan Agreement, among other things, an
additional advance in the amount of USD 55,000,000 will be made available by
the Lender to the Borrower, Stolt Achievement B.V. will be added as a
Continuing Shipowning Company and MS Stolt Achievement will be added as a
Continuing Vessel.  The Tranches made
available to the Borrower under the Loan Agreement have been applied to the
financing of the Continuing Vessels owned by each of the Continuing Shipowning
Companies.

(B)           The Existing Insurances Assignment. On 27 October 2005, each of the Continuing
Shipowning Companies (other than Stolt Achievement B.V.) executed an assignment
of insurances (the “Existing Insurances
Assignment”) pursuant to which it assigned in favour of the Lender
all of the insurances in respect of the Continuing Vessel owned by it by way of
security for its obligations under the guarantee dated 27 October 2005 (the “Existing Guarantee”) of the Borrower’s
obligations under the Loan Agreement.

(C)           The Continuing Shipowning Companies Guarantee. On the date hereof, each of the Continuing
Shipowning Companies is entering into a joint and several guarantee of all of
the Borrower’s obligations under the Loan Agreement. Such guarantee replaces
the Existing Guarantee and is herein referred to as the “Continuing Shipowning Companies’ Guarantee”.

(D)          This Insurances Assignment as a condition
precedent. It is a condition
precedent to the effectiveness of the amendments to the Loan Agreement made by
Amendment No. 2 thereto 

 44
 

and to the Lender’s obligation to make Advance B
available to the Borrower under the Loan Agreement that each of the Continuing
Shipowning Companies executes and delivers and perfects this Insurances
Assignment.

NOW,
THEREFORE, in
consideration for the Lender having entered into the Loan Agreement and
entering into Amendment No. 2 thereto each of the Continuing Shipowning
Companies agrees as follows:

1.          Defined terms. Capitalised terms used herein and not
otherwise defined herein are used with the meanings ascribed to them in the
Loan Agreement.

2.          Assignment. As security for the fulfilment of any and all obligations that each of
the Continuing Shipowning Companies may have towards the Lender now or at any
time in the future pursuant to the Continuing Shipowning Companies’ Guarantee,
each of the Continuing Shipowning Companies hereby irrevocably and
unconditionally assigns to the Lender and grants to the Lender a first priority
security interest and pledge over all of such Continuing Shipowning Companies’
rights, title and interest in and to:

(i)         all those policies, cover notes and contracts
of insurance which are from time to time taken out or entered into in respect
of the Continuing Vessel owned by such Continuing Shipowning Company, its
earnings or otherwise howsoever and all renewals of or replacements for the
same (jointly the “Insurances”);

(ii)        all claims, returns or premiums and other
moneys and claims for moneys due and to become due under or in respect of the
Insurances;

(iii)       all of such Continuing Shipowning Companies
other rights under or in respect of the Insurances; and

(iv)       any proceeds, present or future, of any of the
foregoing.

3.          Undertakings. Each of the Continuing Shipowning Companies undertakes immediately

(i)         to notify the relevant insurers and insurance
brokers of this Insurances Assignment;

(ii)        to give such payment instructions and notices
as the Lender may from time to time request;

(iii)       generally to do and cause to be done such
things as the Lender may deem necessary or advisable in order to perfect or
enforce this Insurances Assignment; and

 45
 

(iv)       to arrange that the relevant insurers and
insurance brokers sign a Notice of Assignment and, where relevant, name the
Lender as co-assured and/or issue mortgagee interest clauses, in form and
substance acceptable to the Lender.

4.          Payments of insurance indemnities. Each of the Continuing Shipowning Companies
agrees that all payments in respect of the Insurances covering the Continuing
Vessel owned by it, except for payments in respect of a Total Loss of such
Continuing Vessel, may be paid by the relevant insurers directly to the
relevant Continuing Shipowning Company except if (i) such damage involves a
loss in excess of USD 1,000,000 or its equivalent (in which case the insurers
shall not make such payment without first obtaining the Lender’s prior written
consent) and except if (ii) the insurers have been notified by the Lender that
any of the Continuing Shipowning Companies has defaulted under the Continuing
Shipowning Companies’ Guarantee.

In the event of a Total Loss of a Continuing Vessel, all insurance
payments in respect thereof shall be paid to the Lender.

5.          Continuing Shipowning Companies remain liable
under the Insurances. Each of
the Continuing Shipowning Companies shall remain liable under the Insurances to
perform all of the obligations assumed by it thereunder. The Lender shall have
no obligation or liability (including without limitation any obligation or
liability with respect to the payment of premiums, calls or assessments) under
the Insurances by reason of or arising out of this Insurances Assignment. Nor
shall the Lender be required to perform any of the Continuing Shipowning
Companies obligations under the Insurances or to make any payment or make any
inquiry as to the nature or sufficiency of any payment received by the Lender
or to present any claim or to take any other action to collect and/or enforce
the payment of any amounts assigned to the Lender hereunder.

6.          Rights divisible. The rights hereunder are divisible and the
Lender may choose only to exercise the rights in part. Should the Lender choose
only to exercise the rights in part, this shall not in any way impede the
Lender from exercising the remaining rights in the future.

7.          No satisfaction by intermediate payment; no
prejudice. The Insurances
Assignment shall not be satisfied by any intermediate payment of any amount
secured by this Insurances Assignment or by any other security, which may be
given to the Lender. Neither shall this Insurances Assignment be prejudiced or
affected by any time or indulgence granted by the Lender to any Continuing
Shipowning Company or any third party or by any invalidity in the Insurances
Assignment, the Loan Agreement or any of the Security Documents or any other
documents referred to therein.

 46
 

8.          Event of Default. If an Event of Default occurs under the Loan
Agreement, the Lender shall be entitled, without having to initiate legal
proceedings and without having regard to the provisions laid down in law, to:

(i)         take all actions which the Lender may deem
appropriate for the purpose of securing its rights under the Loan Agreement and
the Security Documents; and

(ii)        manage, enforce, realise and/or take
possession of the Insurances or any part thereof in the way the Lender may, in
its sole discretion, find appropriate.

9.          Power of Attorney. Each of the Continuing Shipowning Companies
hereby irrevocably appoints the Lender as its true and lawful attorney with
respect to the actions mentioned above and with full power (in the name of such
Continuing Shipowning Company) to ask, require, demand, receive, compound and
give acquittance for any and all moneys and claims for money due and to become
due, to file any claim or to take any action or institute any proceedings which
the Lender may deem necessary or advisable in order to perfect or enforce this
Insurances Assignment, always provided that this power of attorney shall only
be exercisable following the Lender’s declaration of an Event of Default under
the Loan Agreement.

10.        Priority. The security hereby created is a first priority security and each of
the Continuing Shipowning Companies undertakes not to create second priority
security interests in respect of the Insurances assigned hereunder without the
Lender’s prior written consent. Each of the Continuing Shipowning Companies
also undertakes to make any and all registrations or filings necessary to be
made in Denmark in order to perfect the Lender’s interests in the security.

11.        Release. Pursuant to Clause 7.4 of the Loan Agreement, in the event of a
voluntary or mandatory final prepayment of the full amount of all Tranches in
respect of any Continuing Vessel, subject always to Clause 7.2(b) of the Loan
Agreement, this Insurances Assignment (to the extent only that it relates to
the Continuing Vessel to which such Tranches are allocated) shall be released.
In order to effect such partial release of this Insurances Assignment the
Lender shall execute and deliver to the Borrower a release letter substantially
in the form of Schedule 1 hereto.

12.        Governing law and jurisdiction. This Insurances Assignment shall be governed
by Danish law and any dispute arising hereunder shall be settled by the
Maritime and Commercial Court in Copenhagen with right of appeal to the Danish
Supreme Court. Each of the Continuing Shipowning Companies agrees that the
Lender’s rights against it according to this Insurances Assignment can be
enforced directly against it according to the principles contained in the
Danish Act on Civil Procedure, sec. 478,1.

 47
 

13.        The Existing Insurances Assignment.  The
obligations of the Continuing Shipowning Companies under this Insurances
Assignment, to the extent that it secures the Continuing Shipowning Companies’
obligations under the Existing Guarantee, are a continuation without
interruption of the Continuing Shipowners’ respective obligations under the
Existing Insurances Assignment. Upon execution of this Insurances Assignment by
each of the Continuing Shipowning Companies, the Existing Insurances Assignment
shall terminate and neither the Continuing Shipowning Companies nor the Lender
shall have any rights or obligations thereunder.

In WITNESS whereof this
Insurances Assignment has been entered into on the day and in the year stated
at the beginning of this Insurances Assignment and signed by the parties:

	
  Stolt Achievement B.V.:

  	
   

  	
  Witnessed
  by:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Print Name:

  	
  Walter Lion

  	
   

  	
   

  	
  Print name: Lauren Cramer

  
	
  Capacity:

  	
  Attorney-in-fact

  	
   

  	
   

  	
   

  

 

	
  Stolt Concept B.V.:

  	
   

  	
  Witnessed
  by:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Print Name:

  	
  Walter Lion

  	
   

  	
   

  	
  Print name: Lauren Cramer

  
	
  Capacity:

  	
  Attorney-in-fact

  	
   

  	
   

  	
   

  

 

	
  Stolt Confidence B.V.:

  	
   

  	
  Witnessed
  by:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Print Name:

  	
  Walter Lion

  	
   

  	
   

  	
  Print name: Lauren Cramer

  
	
  Capacity:

  	
  Attorney-in-fact

  	
   

  	
   

  	
   

  

 

	
  Stolt Creativity B.V.:

  	
   

  	
  Witnessed
  by:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Print Name:

  	
  Walter Lion

  	
   

  	
   

  	
  Print name: Lauren Cramer

  
	
  Capacity:

  	
  Attorney-in-fact

  	
   

  	
   

  	
   

  

 

 48
 

 

	
  Stolt Efficiency B.V.:

  	
   

  	
  Witnessed
  by:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Print Name:

  	
  Walter Lion

  	
   

  	
   

  	
  Print name: Lauren Cramer

  
	
  Capacity:

  	
  Attorney-in-fact

  	
   

  	
   

  	
   

  

 

	
  Stolt Effort B.V.:

  	
   

  	
  Witnessed
  by:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Print Name:

  	
  Walter Lion

  	
   

  	
   

  	
  Print name: Lauren Cramer

  
	
  Capacity:

  	
  Attorney-in-fact

  	
   

  	
   

  	
   

  

 

	
  Stolt Innovation B.V.:

  	
   

  	
  Witnessed
  by:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Print Name:

  	
  Walter Lion

  	
   

  	
   

  	
  Print name: Lauren Cramer

  
	
  Capacity:

  	
  Attorney-in-fact

  	
   

  	
   

  	
   

  

 

	
  Stolt Inspiration B.V.:

  	
   

  	
  Witnessed
  by:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Print Name:

  	
  Walter Lion

  	
   

  	
   

  	
  Print name: Lauren Cramer

  
	
  Capacity:

  	
  Attorney-in-fact

  	
   

  	
   

  	
   

  

 

As
Lender:

Danish
Ship Finance A/S

(Danmarks Skibskredit A/S):

 

	
  Signature:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Print Name:

  	
   

  	
   

  	
   

  	
  Print name: 

  
	
  Capacity:

  	
   

  	
   

  	
   

  	
  Capacity:

  

 

 49
 

Schedule
1

 FORM OF PARTIAL RELEASE LETTER

	
  From:

  	
   

  	
  Danish Ship Finance A/S (Danmarks Skibskredit A/S),
  Sankt Annæ Plads 3, DK-1250 Copenhagen K, Denmark

  
	
   

  	
   

  	
   

  
	
  To:

  	
   

  	
  [The relevant Released Shipowning Company],
  Westerlaan 5, 3016 CK Rotterdam, The Netherlands (the “Released Shipowning
  Company”)

  
	
   

  	
   

  	
   

  
	
  cc:

  	
   

  	
  Stolt-Nielsen Transportation Group Ltd., 800
  Connecticut Avenue, 4th Floor East, Norwalk, CT 06854, U.S.A.

  
	
   

  	
   

  	
   

  
	
  Dated:

  	
   

  	
  [·]

  

 

Dear Sirs,

Re:       LOAN AGREEMENT- USD 225,779,737.18 EXISTING
FINANCING, USD
100,000,000 NEW FINANCING TOP UP TERM LOAN AND USD 55,000,000 ADDITIONAL
ADVANCE – PARTIAL RELEASE LETTER IN RESPECT OF M/S STOLT [·] (THE “RELEASED VESSEL”)

Gentlemen:

We refer to the loan
agreement dated 27 October 2005 and amended by Amendment No. 1 thereto dated 26
June 2006 and Amendment No. 2 thereto dated 19 July 2006 (as so amended and as
may be further amended from time to time, the “Loan Agreement”) between Stolt
Tankers Finance B.V., as Borrower and Danish Ship Finance A/S (Danmarks
Skibskredit A/S) as Lender and the related Insurances Assignment and Earnings
Assignment each dated 19 July 2006 and entered into between Stolt Achievement
B.V., Stolt Concept B.V., Stolt Confidence B.V., Stolt Creativity B.V., Stolt
Efficiency B.V., Stolt Effort B.V., Stolt Innovation B.V., and Stolt
Inspiration B.V., in favour of the Lender. Terms defined in the Loan Agreement
shall have the same meaning when used herein.

In view of the full and final
prepayment of the full amount of the Tranches in respect of the Released Vessel
and as contemplated by Clause 7.4 of the Loan Agreement, the Lender hereby
releases the Released Shipowning Company from its obligations under the
Insurances Assignment and the Earnings Assignment and hereby terminates the
Insurances Assignment and the Earnings Assignment to the extent only that such
assignments relate to the Released Shipowning Company and the Released Vessel
and hereby reassigns to the Released Shipowing Company the Insurances and the
Earnings in respect of the Released Vessel only.

 50
 

Upon the signature of this
partial release letter by the Lender, the Released Shipowing Company and the
Lender shall no longer have any rights or obligations one to the other under
the Insurances Assignment or the Earnings Assignment.

The Lender hereby authorises
the Released Shipowning Company to send such notices and take such action as it
may deem to be necessary in order to notify any relevant insurer or broker of
this partial release of the Insurances Assignment and to cancel any co-assured
or loss payee or mortgagee interest clauses created in favour of the Lender in
respect of the Insurances covering the Released Vessel pursuant to the terms of
the Insurances Assignment. The Lender, at the Released Shipowning Company’s
expense, shall execute and deliver to the brokers and/or the managers of any
association or Club in which the Released Vessel may be entered, a notice of
reassignment substantially in the form set out in Schedule 1 to this letter.
The Lender, at the Released Shipowning Company’s expense shall execute and do
all such other assurances, deeds, acts and things as the Released Shipowning
Company may reasonably request in writing, delivered to the Lender on or prior
to the date which is 90 days following the date hereof, in connection with
discharges, releases and reassignments contained in this Release Letter.

Except as specifically set
forth in this partial release letter and pursuant to any other partial release
letters which the Lender has signed and delivered, the Insurances Assignment
and the Earnings Assignment shall continue in full force and effect in
accordance with their respective terms.

The letter shall be governed
by and construed in accordance with Danish law.

 

	
  

  	
   

  	
  Very truly yours,

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Danish Ship Finance A/S (Danmarks Skibskredit A/S)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 51
 

Schedule 1 to Partial Release Letter

Notice of release and
reassignment of insurances covering M/S Stolt [·]

We, Danish Ship Finance A/S (Danmarks Skibskredit
A/S), HEREBY GIVE NOTICE that, pursuant to a letter of partial release dated [·] we have released
and reassigned absolutely to [Released Shipowing Company] all our right, title
and interest in and to and all benefit of all policies and contracts of
insurance whatsoever and all entries of the ship M/S Stolt [·]
in any protection and indemnity and war risks association which were at any
time whatsoever or are now effected including all proceeds and profits thereof,
all claims of whatever nature, returns of premium and all benefits thereunder
and our right to negotiate and settle all claims thereunder in respect of an
actual or constructive or arranged, agreed or compromised total loss which were
assigned to us by an insurances assignment dated 19 July 2006.

	
  Dated:

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
			

 

 52
 

Schedule 11

FORM OF EARNINGS ASSIGNMENT

First Priority Assignment of
Earnings

M/S Stolt Achievement

M/S Stolt Concept

M/S Stolt Confidence

M/S Stolt Creativity

M/S Stolt Efficiency

M/S Stolt Effort

M/S Stolt Innovation

M/S Stolt Inspiration

THIS
ASSIGNMENT OF EARNINGS,
dated 19 July 2006 (the “Earnings Assignment”)
is made by each of the following companies (collectively, the “Continuing Shipowning Companies”):

(1)           Stolt Achievement B.V., a Dutch limited
liability company with registered office in Schiedam, The Netherlands and with
offices at Westerlaan 5, 3016 CK Rotterdam, The Netherlands and with company
registration number                         ;

(2)           Stolt Concept B.V., a Dutch limited liability
company with registered office in Schiedam, The Netherlands and with offices at
Westerlaan 5, 3016 CK Rotterdam, The Netherlands and with company registration
number 24341651;

(3)           Stolt Confidence B.V., a Dutch limited
liability company with registered office in Schiedam, The Netherlands and with
offices at Westerlaan 5, 3016 CK Rotterdam, The Netherlands and with company
registration number 24341646;

(4)           Stolt Creativity B.V., a Dutch limited
liability company with registered office in Schiedam, The Netherlands and with
offices at Westerlaan 5, 3016 CK Rotterdam, The Netherlands and with company
registration number 24341647;

(5)           Stolt Efficiency B.V., a Dutch limited
liability company with registered office in Schiedam, The Netherlands and with
offices at Westerlaan 5, 3016 CK Rotterdam, The Netherlands and with company
registration number 24341659;

(6)           Stolt Effort B.V., a Dutch limited liability
company with registered office in Schiedam, The Netherlands and with offices at
Westerlaan 5, 3016 CK Rotterdam, The Netherlands and with company registration
number 24341648;

 53
 

(7)           Stolt Innovation B.V., a Dutch limited
liability company with registered office in Schiedam, The Netherlands and with
offices at Westerlaan 5, 3016 CK Rotterdam, The Netherlands and with company
registration number 24341645;

(8)           Stolt Inspiration B.V., a Dutch limited
liability company with registered office in Schiedam, The Netherlands and with
offices at Westerlaan 5, 3016 CK Rotterdam, The Netherlands and with company
registration number 24341658;

in favour of Danish Ship
Finance A/S (Danmarks Skibskredit A/S), Sankt Annæ Plads 3, DK-1250 Copenhagen
K, Denmark (the “Lender”).

WHEREAS:

(A)          The Loan Agreement. Stolt Tankers Finance B.V. (the “Borrower”) and the Lender are parties to a
USD 225,779,737.18 existing financing, USD 100,000,000 new financing top up
term loan and USD 55,000,000 additional advance agreement dated 27 October 2005
and amended by Amendment No. 1 thereto dated 26 June 2006 and Amendment No. 2
thereto dated the date hereof (as so amended and as may be further amended from
time to time, the “Loan Agreement”).
Pursuant to Amendment No. 2 to the Loan Agreement, among other things, an
additional advance in the amount of USD 55,000,000 will be made available by
the Lender to the Borrower, Stolt Achievement B.V. will be added as a
Continuing Shipowning Company and MS Stolt Achievement will be added as a
Continuing Vessel.  The Tranches made
available to the Borrower under the Loan Agreement have been applied to the
financing of the Continuing Vessels owned by each of the Continuing Shipowning
Companies.

(B)           The Existing Earnings Assignment. On 27 October 2005, each of the Continuing
Shipowning Companies (other than Stolt Achievement B.V.) executed an assignment
of earnings (the “Existing Earnings
Assignment”) pursuant to which it assigned in favour of the Lender
all of the Earnings in respect of the Continuing Vessel owned by it by way of
security for its obligations under the guarantee dated 27 October 2005 (the “Existing Guarantee”) of the Borrower’s
obligations under the Loan Agreement.

(C)           The Continuing Shipowning Companies Guarantee. On the date hereof, each of the Continuing
Shipowning Companies is entering into a joint and several guarantee of all of
the Borrower’s obligations under the Loan Agreement. Such guarantee replaces
the Existing Guarantee and is herein referred to as the “Continuing Shipowning Companies’ Guarantee”.

(D)          This Earnings Assignment as a condition
precedent. It is a condition
precedent to the effectiveness of the amendments to the Loan Agreement made by
Amendment No. 2 thereto 

 54
 

and to the Lender’s obligation to make Advance B
available to the Borrower under the Loan Agreement that each of the Continuing
Shipowning Companies executes and delivers and perfects this Earnings
Assignment.

NOW,
THEREFORE in
consideration for the Lender having entered into the Loan Agreement and
entering into Amendment No. 2 thereto each of the Continuing Shipowning
Companies agrees as follows:

1.          Defined terms. Capitalised terms used herein and not
otherwise defined herein are used with the meanings ascribed to them in the
Loan Agreement.

2.          Assignment. As security for the fulfilment of any and all obligations that each of
the Continuing Shipowning Companies may have towards the Lender now or at any
time in the future pursuant to the Continuing Shipowning Companies’ Guarantee,
each of the Continuing Shipowning Companies hereby irrevocably and
unconditionally assigns to the Lender and grants to the Lender a first priority
security interest and pledge over all of such Continuing Shipowning Companies’
rights, title and interest in and to:

(i)         any and all present and future charterparties,
bills of lading and contracts of affreightment in respect of the Continuing
Vessel owned by such Continuing Shipowning Company; and

(ii)        all earnings and moneys from time to time due
or payable to us arising out of any present and future charterparties in
respect of the Continuing Vessel owned by such Continuing Shipowning Company,
bills of lading, contracts of affreightment, requisition or any other
activities whatsoever of such Continuing Vessel, including but without
limitation all claims for money, loss or damages arising out of the present or
future use, chartering, operation or management of such Continuing Vessel.

3.          Payments. The Earnings Assignment implies inter
alia that any and all payments of the earnings assigned in favour of
the Lender pursuant to Clause 2 can only be made with releasing effect if made
into such bank account as may from time to time be nominated by the Lender.

4.          Undertakings. Each of the Continuing Shipowning Companies undertakes immediately to
give such payment instructions and notices and generally to do and cause to be
done such things as the Lender may deem necessary or advisable in order to
perfect or enforce this Earnings Assignment.

 55

5.                             Rights divisible. The rights hereunder are divisible and the
Lender may choose only to exercise the rights in part. Should the Lender choose
only to exercise the rights in part, this shall not in any way impede the
Lender from exercising the remaining rights in the future.

6.                             No satisfaction by intermediate payment; no prejudice. The Earnings Assignment shall not be
satisfied by any intermediate payment of any amount secured by this Earnings
Assignment or by any other security, which may be given to the Lender. Neither
shall this Earnings Assignment be prejudiced or affected by any time or
indulgence granted by the Lender to any Continuing Shipowning Company or any
third party or by any invalidity in the Earnings Assignment, the Loan Agreement
or any of the Security Documents or any other documents referred to therein.

7.                             Event of Default. If
an Event of Default occurs under the Loan Agreement, the Lender shall be
entitled, without having to initiate legal proceedings and without having
regard to the provisions laid down in law, to:

(i)                           take all actions which the Lender may deem
appropriate for the purpose of securing its rights under the Loan Agreement and
the Security Documents; and

(ii)                        manage, enforce, realise and/or take
possession of the earnings assigned pursuant to this Earnings Assignment and
the contracts related thereto or any part thereof in the way the Lender, in its
sole discretion, may find appropriate.

8.                             Priority. The security
hereby created is a first priority security and each of the Continuing
Shipowning Companies undertakes not to create second priority security
interests in respect of the earnings assigned hereunder without the Lender’s
prior written consent.

9.                             Perfection. Each of
the Continuing Shipowning Companies undertakes to make any and all
registrations or filings necessary to be made in Denmark in order to perfect
the Lender’s interests in the security and to notify the counterparties to any
contracts pursuant to which the earnings assigned hereunder arise and obtain a
written acknowledgement and acceptance of this Earnings Assignment from such
counterparties promptly upon the request of the Lender following the occurrence
of an Event of Default under the Loan Agreement.

10.                       Power of Attorney. Each of the Continuing Shipowning Companies
hereby irrevocably appoints the Lender as its true and lawful attorney with
respect to the actions mentioned above and with full power (in the name of such
Continuing Shipowning Company) to ask, require, demand, receive, compound and
give acquittance for any and all moneys and claims for money due and to become
due, to file any claim or to take any action or institute any proceedings which
the Lender may deem necessary or advisable in order to perfect or enforce this
Earnings Assignment, always provided that this power of attorney shall only be 

 56
 

exercisable following the Lender’s declaration of an
Event of Default under the Loan Agreement.

11.                       Release. Pursuant to Clause 7.4 of the Loan Agreement, in the event of a
voluntary or mandatory final prepayment of the full amount of all Tranches in
respect of any Continuing Vessel, subject always to Clause 7.2(b) of the Loan
Agreement, this Earnings Assignment (to the extent only that it relates to the
Continuing Vessel to which such Tranches are allocated) shall be released. In
order to effect such partial release of this Earnings Assignment the Lender
shall execute and deliver to the Borrower a release letter substantially in the
form of Schedule 1 to the Insurances Assignment entered into by the parties hereto
on the date hereof.

12.                       Governing law and jurisdiction. This Earnings Assignment shall be governed
by Danish law and any dispute arising hereunder shall be settled by the
Maritime and Commercial Court in Copenhagen with right of appeal to the Danish
Supreme Court. Each of the Continuing Shipowning Companies agrees that the
Lender’s rights against it according to this Earnings Assignment can be
enforced directly against it according to the principles contained in the
Danish Act on Civil Procedure, sec. 478,1.

13.                    The Existing Earnings Assignment.  The
obligations of the Continuing Shipowning Companies under this Earnings
Assignment, to the extent that it secures the Continuing Shipowning Companies’
obligations under the Existing Guarantee, are a continuation without interruption
of the Continuing Shipowners’ respective obligations under the Existing
Earnings Assignment. Upon execution of this Earnings Assignment by each of the
Continuing Shipowning Companies, the Existing Earnings Assignment shall terminate
and neither the Continuing Shipowning Companies nor the Lender shall have any
rights or obligations thereunder.

In WITNESS whereof this
Earnings Assignment has been entered into on the day and in the year stated at
the beginning of this Earnings Assignment and signed by the parties:

 57
 

 

	
  Stolt Achievement B.V.:

  	
   

  	
  Witnessed by:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Print Name:

  	
  Walter Lion

  	
   

  	
   

  	
  Print name: Lauren Cramer

  
	
  Capacity:

  	
  Attorney-in-fact

  	
   

  	
   

  	
   

  

 

	
  Stolt Concept B.V.:

  	
   

  	
  Witnessed by:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Print Name:

  	
  Walter Lion

  	
   

  	
   

  	
  Print name: Lauren Cramer

  
	
  Capacity:

  	
  Attorney-in-fact

  	
   

  	
   

  	
   

  

 

 

	
  Stolt Confidence B.V.:

  	
   

  	
  Witnessed by:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Print Name:

  	
  Walter Lion

  	
   

  	
   

  	
  Print name: Lauren Cramer

  
	
  Capacity:

  	
  Attorney-in-fact

  	
   

  	
   

  	
   

  

 

	
  Stolt Creativity B.V.:

  	
   

  	
  Witnessed by:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Print Name:

  	
  Walter Lion

  	
   

  	
   

  	
  Print name: Lauren Cramer

  
	
  Capacity:

  	
  Attorney-in-fact

  	
   

  	
   

  	
   

  

 

	
  Stolt Efficiency B.V.:

  	
   

  	
  Witnessed by:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Print Name:

  	
  Walter Lion

  	
   

  	
   

  	
  Print name: Lauren Cramer

  
	
  Capacity:

  	
  Attorney-in-fact

  	
   

  	
   

  	
   

  

 

 58
 

 

	
  Stolt Effort B.V.:

  	
   

  	
  Witnessed by:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Print Name:

  	
  Walter Lion

  	
   

  	
   

  	
  Print name: Lauren Cramer

  
	
  Capacity:

  	
  Attorney-in-fact

  	
   

  	
   

  	
   

  

 

	
  Stolt Innovation B.V.:

  	
   

  	
  Witnessed by:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Print Name:

  	
  Walter Lion

  	
   

  	
   

  	
  Print name: Lauren Cramer

  
	
  Capacity:

  	
  Attorney-in-fact

  	
   

  	
   

  	
   

  

 

	
  Stolt Inspiration B.V.:

  	
   

  	
  Witnessed by:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Print Name:

  	
  Walter Lion

  	
   

  	
   

  	
  Print name: Lauren Cramer

  
	
  Capacity:

  	
  Attorney-in-fact

  	
   

  	
   

  	
   

  

 

As
Lender:

Danish
Ship Finance A/S

(Danmarks Skibskredit A/S):

 

	
  Signature:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Print Name:

  	
   

  	
   

  	
   

  	
  Print name: 

  
	
  Capacity:

  	
   

  	
   

  	
   

  	
  Capacity:

  

 

 59
 

Schedule
12

[M/S
STOLT CONCEPT]

FORM OF MORTGAGE AND DEED OF
COVENANTS

 

DEED OF
COVENANTS

 

	
  BETWEEN

  	
   

  	
  [Stolt Concept B.V.] 

  (the “Owner” which expression shall include its successors and permitted
  assignees)

  
	
   

  	
   

  	
   

  
	
  AND

  	
   

  	
  Danish Ship Finance A/S 

  (Danmarks Skibskredit A/S) 

  (the Mortgagee which expression shall include its successors and assignees)

  
	
   

  	
   

  	
   

  
	
  DATED

  	
   

  	
  19 July 2006

  

 

COPENHAGEN    ÅRHUS   
LONDON    BRUSSELS

KROMANN REUMERT, LAW FIRM

5 SUNDKROGSGADE, DK-2100 COPENHAGEN Ø, DENMARK, TEL. +45 70 12 12 11, FAX +45
70 12 13 11

 60

CONTENTS

	
  1.

  	
   

  	
  DEFINITIONS AND CONSTRUCTION

  	
   

  	
  2

  
	
  2.

  	
   

  	
  REPRESENTATIONS AND WARRANTIES

  	
   

  	
  6

  
	
  3.

  	
   

  	
  COVENANT AND GUARANTEE TO PAY PRINCIPAL, INTEREST
  AND OTHER MONEYS

  	
   

  	
  7

  
	
  4.

  	
   

  	
  MORTGAGE AND ASSIGNMENT OF THE MORTGAGED PREMISES

  	
   

  	
  7

  
	
  5.

  	
   

  	
  COVENANTS

  	
   

  	
  9

  
	
  6.

  	
   

  	
  POWERS OF MORTGAGEE TO PROTECT SECURITY AND REMEDY
  DEFAULTS

  	
   

  	
  15

  
	
  7.

  	
   

  	
  EVENTS OF DEFAULT

  	
   

  	
  15

  
	
  8.

  	
   

  	
  POWERS OF MORTGAGEE ON EVENT OF DEFAULT

  	
   

  	
  16

  
	
  9.

  	
   

  	
  RECEIVER

  	
   

  	
  18

  
	
  10.

  	
   

  	
  APPLICATION OF MONEYS

  	
   

  	
  18

  
	
  11.

  	
   

  	
  CONTINUING SECURITY

  	
   

  	
  19

  
	
  12.

  	
   

  	
  DELEGATION

  	
   

  	
  20

  
	
  13.

  	
   

  	
  INDEMNITY AND COSTS

  	
   

  	
  20

  
	
  14.

  	
   

  	
  POWER OF ATTORNEY

  	
   

  	
  21

  
	
  15.

  	
   

  	
  FURTHER ASSURANCES

  	
   

  	
  21

  
	
  16.

  	
   

  	
  NOTICES

  	
   

  	
  22

  
	
  17.

  	
   

  	
  SEVERABILITY

  	
   

  	
  22

  
	
  18.

  	
   

  	
  RELEASE OF EXISTING DEED OF COVENANTS

  	
   

  	
  22

  
	
  19.

  	
   

  	
  GOVERNING LAW AND JURISDICTION

  	
   

  	
  23

  

 

 I

DEED OF COVENANTS

This Deed of Covenants (the “Deed”) is made on 19 July
2006 between:

(1)                                                    [Stolt Concept B.V.],
Westerlaan 5, 3016 CK, Rotterdam, The Netherlands, (the “Owner”), and

(2)                                                    Danish Ship Finance A/S
(Danmarks Skibskredit A/S), Sankt Annæ Plads 3, DK-1250 Copenhagen K, Denmark
(the “Mortgagee”).

WHEREAS

(A)                                               Ownership of Ship. The Owner is the sole,
absolute, legal and beneficial owner of sixty-four sixty-fourth shares in the
Ship described in Clause 1.1 hereof.

(B)                                                 The Loan Agreement. Stolt Tankers Finance
B.V., Westerlaan 5, 3016 CK, Rotterdam, The Netherlands (the “Borrower” which
expression shall include its successors and assigns) and the Mortgagee are
parties to a USD 225,779,737.18 existing financing, USD 100,000,000 new
financing top up term loan and USD 55,000,000 additional advance agreement
dated 27 October 2005 and amended by Amendment No. 1 thereto dated 26 June 2006
and Amendment No. 2 thereto dated the date hereof (as so amended and as may be
further amended from time to time, the “Loan
Agreement”). Stolt-Nielsen S.A. (“SNSA”), Stolt-Nielsen
Transportation Group Ltd., Liberia (“SNTG-LIB”), Stolt-Nielsen Transportation
Group Ltd., Bermuda (“SNTG-BER”), Stolt-Nielsen Investments N.V. (“SNI”),
Stolt-Nielsen Holdings B.V. (“SNH”), Stolt-Nielsen Transportation Group B.V. (“SNTG
BV”), the Owner and the Sister Companies (as defined below) have agreed,
irrevocably, unconditionally and as debtors for own debt, to guarantee the
Borrower’s full and timely performance of all obligations under the Loan
Agreement. The guarantee entered into by SNSA, SNTG-LIB, SNTG-BER, SNI, SNH and
SNTG is referred to as the “Parent Companies Guarantee” and the guarantee
entered into by Owner and the Sister Companies is referred to as the “Continuing
Shipowning Companies’ Guarantee”.

(C)                                                 The Assignments of
Earnings and Insurances. Pursuant to the terms of the Loan Agreement, the Owner
and the Sister Companies are required to enter into an assignment of Earnings
and an assignment of Insurances pursuant to which the Owner assigns the
Earnings and the Insurances in respect of the Ship and the Sister Companies
assign the 

 1
 

Earnings
and the Insurances in respect of the ships owned by each of them to the
Mortgagee by way of security for the Owner’s and the Sister Companies obligations
under the Continuing Shipowning Companies’ Guarantee. Such assignment of
Earnings and such assignment of Insurances are referred to herein as the “Assignment
of Earnings” and the “Assignment of Insurances”, respectively.

(D)                                                The Statutory Mortgage. The Loan Agreement
provides (inter alia) that there should be executed in favour of the Mortgagee
a Mortgage of the said Ship to secure (inter alia) all sums of money (all “Indebtedness”
as defined in the Loan Agreement) from time to time owing to the Mortgagee
under the Loan Agreement and under the aforesaid Continuing Shipowning
Companies Guarantee. There has contemporaneously with the execution of this
Deed been executed by the Owner in favour of the Mortgagee a Statutory Mortgage
in account current form constituting a first priority Mortgage of sixty-four
sixty-fourth shares in the said Ship.

(E)                                                  Deed as supplement to
Mortgage.
This Deed is supplemental to the Mortgage aforesaid and to the security thereby
created.

NOW THIS DEED WITNESSETH AND IT IS HEREBY AGREED as
follows:

1.                                                       DEFINITIONS AND
CONSTRUCTION

1.1                                                 Definitions. In this Deed unless the
context otherwise requires:

“Approved Brokers”
means such firm of insurance brokers, appointed by the Owner, as may from time
to time be approved in writing by the Mortgagee for the purposes of this Deed;

“Banking Day” means
any day on which banks and foreign exchange markets are open for the
transaction of business in New York, London, and Copenhagen;

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

“Earnings” means
all monies whatsoever from time to time due or payable to the Owner during the
Security Period arising out of the use or operation of the Ship including (but
without limiting the generality of the foregoing) all freight, hire and passage
monies, compensation in the event of requisition of the Ship for hire,
remuneration for salvage and towage services, demurrage and detention monies,
and damages for breach (or 

 2
 

payments for variation or
termination) of any charterparty or other contract for the employment of the
Ship;

“Expenses” means
the aggregate at any relevant time (to the extent that the same have not been
received or recovered by the Mortgagee or any Receiver) of

a)                                    all losses, liabilities,
costs, charges, expenses and outgoings of whatever nature (including without
limitation) taxes, stamp duty, registration fees and insurance premiums
(suffered, incurred or paid by the Mortgagee or any Receiver in connection with
the exercise of the powers referred to in this Deed or otherwise) payable by
the Owner in accordance with Clause 13; and

b)                                   interest on all such
losses, liabilities, charges, costs, expenses and outgoings from the date on
which the same was suffered, incurred or paid by the Mortgagee or any Receiver
until the date of receipt or the recovery thereof (whether before or after
judgment) at a rate per annum equal to the aggregate of 2 (two) per cent and
the cost to the Mortgagee or such Receiver (as the case may be) of funding the
amount in question (as conclusively certified by the Mortgagee or such Receiver
as the case may be);

“Insurances” means
all policies and contracts of insurance (which expression includes all entries
of the Ship in a protection and indemnity or war risks association) from time
to time during the Security Period taken out or entered into by or for the
benefit of the Owner in respect of the Ship, her Earnings or otherwise
howsoever in connection with the Ship and all benefits thereof (including
claims of whatsoever nature and return of premiums);

“Loan” means the
principal amount advanced by the Mortgagee to the Borrower pursuant to the Loan
Agreement or, as the context may require, the amount thereof for the time being
outstanding;

“Loss Payable Clauses”
means the provisions regulating the manner of payment of sums receivable under
the Insurances which are to be incorporated in the relevant insurance
documents, such Loss Payable Clauses to be in the form set out in Schedule I or
in such other form as may from time to time be agreed in writing by the
Mortgagee;

“Mortgage” means
the statutory mortgage mentioned in Recital (C) hereto;

“Mortgaged Premises”
means:

 3
 

a)                         the Ship,

b)                        the Insurances,

c)                         the Earnings, and

d)                        any Requisition
Compensation;

“Loan Agreement”
means the Loan Agreement dated 27 October 2005, as amended on 26 June 2006 and
on the date hereof as mentioned in Recital (B) hereto;

“Outstanding
Indebtedness” means the aggregate of the Indebtedness as determined by the
Mortgagee, including all outstanding principal amounts, all interest accrued
and accruing thereon, the Expenses and all other sums of money from time to
time owing to the Mortgagee (whether the same shall be due and payable or not)
under the Security Documents or any of them;

“Person” includes
any body of persons corporate or unincorporated;

“Receiver” means
any receiver and/or manager appointed pursuant to Clause 9;

“Requisition
Compensation” means all monies or other compensation from time to time
payable during the Security Period by reason of requisition for title or other
compulsory acquisition of the Ship otherwise than by requisition for hire;

“Security Documents”
means the Loan Agreement, this Deed, the Mortgage, the deeds of covenants and
mortgages required by the terms of the Loan Agreement to be entered into by the
Sister Companies as security for the Outstanding Indebtedness, the Parent
Companies Guarantee, the Continuing Shipowning Companies’ Guarantee, the
Assignment of Earnings, the Assignment of Insurances, the undertaking entered
into by SNTG-BER, SNI, SNH, and SNTG BV in connection with the Loan Agreement,
and any other document or instrument from time to time executed as security for
the Outstanding Indebtedness or any part thereof;

“Security Period”
means the period terminating upon payment of all moneys payable under the
Security Documents and the discharge of all other obligations secured thereby;

 4
 

“Ship” means the
vessel [M/S Stolt Concept registered at the Port of George Town, Cayman Islands
under Official Number 732878] and includes any share or interest therein and
her engines machinery boats tackle outfit equipment spare gear fuel consumable
or other stores belongings and appurtenances whether on board or ashore and
whether now owned or hereafter acquired;

“Sister Companies”
means [Stolt Achievement B.V., Stolt Confidence B.V., Stolt Creativity B.V.,
Stolt Efficiency B.V., Stolt Effort B.V., Stolt Innovation B.V., and Stolt
Inspiration B.V.];

“Total Loss” means:

(i)                              the actual, agreed,
constructive, compromised or arranged total loss of the Ship;

(ii)                           the abandonment or condemnation of the Ship;

(iii)                        the requisition for title or other compulsory
acquisition, requisition, appropriation, expropriation, deprivation, forfeiture
or confiscation for any reason of the Ship by any government entity or other competent
authority, whether de jure or de facto other than for hire; or

(iv)                       hijacking, theft, condemnation, capture, detention,
confiscation or other incidents provided any such incident is adequately
covered by the insurances taken out for the Ship.

1.2                                                 Construction. In the Mortgage:

a)                                    references to “interest”
shall be construed as references to interest covenanted to be paid in
accordance with Clause 3, any interest payable by or recoverable from the Owner
under Clauses j)m) and 8.1 f) and interest specified in paragraph b) of the
definition of “Expenses” in Clause 1.1;

b)                                   references to “principal”
shall be construed as references to all other sums of money for the time being
comprised within the Outstanding Indebtedness;

c)                                    the expression “all sums
for the time being owing to the Mortgagee” means the whole of the Outstanding
Indebtedness.

 5
 

1.3                                                 Relationship to Loan
Agreement.
The obligations and liabilities of the Owner according to this Deed shall be
the same as its and the Borrower’s obligations and liabilities stated in the
Loan Agreement. Consequently, this Deed shall be read together with the Loan
Agreement but in case of any conflict between this Deed and the Loan Agreement,
the provisions of the Loan Agreement shall prevail.

1.4                                                 Construction of additional
terms. In
this Deed, unless the context otherwise requires:

a)                                    references to Clauses are
to be construed as references to clauses of this Deed;

b)                                   references to (or to any
specified provision of) this Deed or any other document shall be construed as references
to this Deed, that provision or that document as in force for the time being
and as amended in accordance with the terms thereof, and (where such consent
is, by the terms of this Deed or the relevant document, required to be obtained
as a condition to such amendment being permitted) the prior written consent of
the Mortgagee;

c)                                    words importing the plural
shall include the singular and vice versa; and

d)                                   references to a person
shall be construed as references to an individual, firm, company, corporation
or unincorporated body of persons or any state or any agency thereof.

2.                                                       REPRESENTATIONS AND
WARRANTIES

2.1                                                 Representations and
warranties.
The Owner hereby represents and warrants to the Mortgagee that:

a)                                    it is the sole, absolute,
legal and beneficial owner of the Ship;

b)                                   the Ship is not subject to
any charter which, if entered into after the date of this Deed, would have
required the consent of the Mortgagee under Clause j)k) and there is no
existing agreement or arrangement whereby the Earnings may be shared with any
other person; and

c)                                    neither the Mortgaged
Premises nor any part thereof is subject to any mortgage, charge, assignment or
other encumbrance save as constituted by the Mortgage and this Deed or
otherwise permitted by the terms of this Deed.

 6
 

3.                                                       COVENANT
AND GUARANTEE TO PAY PRINCIPAL, INTEREST AND OTHER MONEYS

3.1                                                 Covenant and guarantee. In consideration of the
continuation of the Existing Tranches and New Tranches (as defined in the Loan
Agreement) and the disbursement of Advance B (as defined in the Loan Agreement)
by the Mortgagee to the Borrower on or before the date hereof in accordance
with the provisions of the Loan Agreement the Owner hereby covenants with and
guarantees to the Mortgagee:

a)                                    to repay the Tranches by
the instalments and on the dates referred to and otherwise in the manner and
upon the terms set out in the Loan Agreement;

b)                                   to pay interest on the
Tranches, and on any overdue interest or other moneys payable under the Loan
Agreement, at the rate or rates from time to time applicable thereto in the
manner and upon the terms set out in the Loan Agreement; and

c)                                    to pay all other moneys
payable by the Owner or by the Borrower under the Security Documents or any of
them at the times and in the manner therein specified.

4.                                                       MORTGAGE
AND ASSIGNMENT OF THE MORTGAGED PREMISES

4.1                                                 Mortgage and assignment. By way of security for
the Owner’s obligations under the Continuing Shipowning Companies Guarantee to
pay the Outstanding Indebtedness, the Owner as BENEFICIAL OWNER HEREBY
MORTGAGES AND CHARGES with first priority to and in favour of the Mortgagee all
its interest, rights and title, present and future, in and to the Mortgaged
Premises and without prejudice to the generality of the foregoing the Owner
hereby assigns and agrees to assign to the Mortgagee all its rights, title and
interest in and to the Earnings, the Insurances and any Requisition
Compensation and all its benefits and interests present and future therein
PROVIDED HOWEVER THAT:

(i)                                   any sums recoverable in
respect of the Insurances shall (unless and until there shall happen any of the
events specified in Clause 7 hereof whereupon all insurance recoveries shall be
receivable by the Mortgagee in accordance with Clause 8.1 b) hereof) be payable
as follows:

(a)                            there shall be paid to the
Mortgagee any and every sum recoverable under the Insurances against fire and
usual marine risks and war risks in respect of a Total Loss and any and every
sum recoverable under such 

 7
 

insurances in respect of a major casualty (that is to say
any casualty in respect whereof the claim or the aggregate of the claims
exceeds $1,000,000. inclusive of any deductible);

(b)                           all other sums recoverable
in respect of the Insurances against fire and usual marine risks and war risks
shall be paid to the Owner and shall be applied by it for the purpose of making
good the loss and fully repairing all damage in respect whereof the insurance
moneys shall have been received;

(ii)                                the Earnings shall be payable to such account of the
Owner as the Mortgagee shall from time to time agree and shall be at the
disposal of the Owner until such time as the Mortgagee shall direct to the
contrary, whereupon the Owner shall forthwith, and the Mortgagee may at any
time thereafter, instruct the persons from whom the Earnings are then payable
to pay the same to the Mortgagee or as it may direct and any Earnings then in
the hands of the Owner’s brokers or other agents shall be deemed to have been
received by them for the use and on behalf of the Mortgagee;

(iii)                             upon payment and discharge in full to the
satisfaction of the Mortgagee of the Outstanding Indebtedness the Mortgagee
shall, at the request and cost of the Owner, release it from the guarantee
regarding the Loan Agreement and reassign the Earnings, the Insurances and any
Requisition Compensation to the Owner or as it may direct;

(iv)                            for the sake of clarity, it is agreed that the
Outstanding Indebtedness includes all Tranches outstanding under the Loan
Agreement and that, consequently, the Mortgage on the Ship secures not only
obligations regarding the Tranche relating to the Ship, but obligations
regarding all Tranches under the Loan Agreement; and

(v)                               in accordance with Clause
7.4 of the Loan Agreement, in event of the full and final prepayment of the
full amount of the Existing Tranche and the New Tranche in relation to the
Ship, the Mortgage and Deed of Covenant covering the Ship shall be released by
way of the signing by the Lender of the deed of release appearing on such
mortgage, and the Insurances Assignment and the Earnings Assignment (in each
case to the extent only that they relate to the Ship) shall be released by way
of the signing by the Lender and delivery to the 

 8
 

Borrower
of letter of partial release of such assignments in the form set forth in
Schedule 1 to the Insurances Assignment.

5.                                                       COVENANTS

5.1                                                 Covenants. THE OWNER COVENANTS with
the Mortgagee AND UNDERTAKES throughout the Security Period:

5.1.1                                        Insurances.

a)                                    Types of
Insurances: to effect and maintain at the expense of the Owner, with such amounts on
such terms and with such insurers as have been approved by the Mortgagee, the
following insurances on the Ship:

(i)                               hull and machinery
insurance, including insurance against actual, agreed, constructive or
compromise total loss;

(ii)                            war risk insurance,
including blocking and trapping insurance, covering both hull and deprivations;

(iii)                         protection and indemnity
insurance, including oil pollution, freight, demurrage and defence;

(iv)                        all such insurances to
cover innocent mortgagee interest in favour of the Mortgagee; and

(v)                           such additional insurances
as the Mortgagee in its sole reasonable discretion may request;

b)                                   Insured
amounts and Approved Brokers: to effect the Insurances aforesaid (a) in such amounts
and upon such terms as shall from time to time be approved by the Mortgagee (b)
through the Approved Brokers and with such insurance companies and/or
underwriters as shall from time to time be approved in writing by the
Mortgagee;

c)                                    Expiry
of Insurances: at least fourteen days before the relevant policies, contracts or entries
expire to notify the Mortgagee of the names of the brokers and/or entities
proposed to be employed by the Owner for the purposes of the 

 9
 

renewal
of the Insurances and of the amounts in which such insurances are proposed to be
renewed and the risks to be covered and, subject to compliance with any
requirements of the Mortgagee pursuant to this Clause, to procure that
appropriate instructions for the renewal of such insurances on the terms so
specified are given to the Approved Brokers; and to renew all such Insurances
at least seven days before the relevant policies, contracts or entries expire
and procure that the Approved Brokers will at least seven days before such
expiry (or within such shorter period as the Mortgagee may from time to time
agree) confirm in writing to the Mortgagee as and when such renewals have been
effected in accordance with the instructions so given;

d)                                   Payment
of premiums: punctually to pay all premiums calls contributions or other sums payable
in respect of all such Insurances and to produce all relevant receipts or other
evidence of payment when so required by the Mortgagee;

e)                                    Endorsement
of Mortgagee’s interest: to procure that the interest 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 aforesaid;

f)                                      Cooperate
in collection: to do all things necessary and provide all documents, evidence and
information to enable the Mortgagee to collect and recover any monies which
shall at any time become due in respect of the Insurances;

f)                                      Insurance
report:
if so requested by the Mortgagee, but at the cost of the Owner (provided that
the Owner shall be required to bear such cost no more than once per year and
any report in excess of one per year shall be paid for by the Mortgagee), to
furnish the Mortgagee with a detailed report signed by an independent firm of
marine insurance brokers appointed by the Mortgagee dealing with the insurances
maintained on the Ship and stating the opinion of such firm as to the adequacy
thereof;

h)                                   Loss
payable and cancellation clauses: to deposit with the Approved Brokers (or procure
the deposit of) all slips, cover notes, policies, certificates of entry and
other instruments of insurance from time to time issued in connection with such
of the Insurances referred to in Clause 5.1.1a) as are effected through the
Approved Brokers and procure that the interest of the Mortgagee shall be
endorsed thereon by incorporation of a Loss Payable Clause and Notice of
Cancellation Clause and by means of a Notice of Assignment (signed by the
Owner) in 

 10
 

such form
as may from time to time be agreed in writing by the Mortgagee and that the
Mortgagee shall be furnished with pro forma copies thereof and a letter or
letters of undertaking from the Approved Brokers in such form as shall from
time to time be reasonably required by the Mortgagee;

i)                                       Comply
with terms of Insurances: not to employ the Ship or suffer the Ship to be employed
otherwise than in conformity with the terms of the Insurances (including any
warranties express or implied therein) without first obtaining the consent to
such employment of the insurers and complying with such requirements as to
extra premium or otherwise as the insurers may prescribe; and

j)                                       Application
of insurance indemnities paid to Owner: To apply all such sums receivable in respect of
the Insurances as are paid to the Owner in accordance with Clause (i) (i)(a)
hereof for the purpose of making good the loss and fully repairing all damages
in respect whereof the insurance moneys shall have been received.

5.1.2                                        Management of the Ship.

a)                         Registration: to keep the Ship
registered at the port of George Town, Cayman Islands and not do or suffer to
be done anything or omit to do anything whereby such registration may be
forfeited or imperilled;

b)                        Changes
to Ship:
not without the previous consent in writing of the Mortgagee to:

(i)                                          make any modification to
the Ship which would involve material alteration of her structure type or
performance characteristics or could reduce her value;

(ii)                                       remove any material part
of the Ship or any equipment the value of which is such that its removal from
the Ship would materially reduce the value of the Ship without replacing the
same with the equivalent part or equipment owned by the Owner free from
encumbrances; or

(iii)                                    install on the Ship any
equipment owned by a third party which cannot be removed without causing damage
to the structure or fabric of the Ship;

c)                         Maintenance
and repair:
to keep the Ship in a good and efficient state of repair and so as to comply
with the provisions of the Merchant Shipping Acts and all 

 11
 

other
regulations and requirements (statutory or otherwise) from time to time applicable
to vessels registered at George Town, Cayman Islands and to procure that all
repairs to or replacement of any damaged worm or lost parts or equipment be
effected in such manner (both as regards workmanship and quality of materials)
as not to diminish the value of the Ship and to maintain the present class of
the Ship;

d)                        Inspection: to permit the Mortgagee
by surveyors or other persons appointed by it for such purpose to board the
Ship at all reasonable times, but without unduly interfering with the operation
of the Ship, for the purpose of inspecting her condition or for the purpose of
satisfying themselves in regard to proposed or executed repairs and to afford
all proper facilities for such inspections and to submit the Ship to such
periodical and other surveys required for classification purposes or otherwise
and to supply to the Mortgagee copies of all survey reports issued in respect
thereof;

e)                         Discharge
of liens:
to promptly pay and discharge all debts, damages, liabilities and outgoings
whatsoever which have given or may give rise to maritime statutory or
possessory liens on or claims enforceable against the Ship and in the event of
arrest of the Ship pursuant to legal process or purported legal process or in
the event of her detention in exercise or purported exercise of any such lien
or claim as aforesaid to procure the release of the Ship from such arrest or
detention forthwith upon receiving notice thereof by providing bail or
procuring the provision of security or otherwise as the circumstances may
require;

f)                           Employment
of Ship:
not to employ the Ship or suffer her employment in any trade or business which
is forbidden by International Law or which is otherwise illicit or unlawful
under the law of any relevant jurisdiction or in carrying illicit or prohibited
goods or in any manner whatsoever which may render her liable to condemnation
in a Prize Court or to destruction, seizure, confiscation, penalty or sanctions
and in the event of hostilities in any part of the world (whether war be declared
or not) nor to employ the Ship or suffer her employment in carrying any
contraband goods or enter or trade to any zone which is declared a war zone by
any Government or by the Insurers unless the Mortgagee shall have first given
its consent thereto in writing and there shall have been effected by the Owner
and at its expense such special insurance cover as the Mortgagee may require;

g)                        Information: promptly to furnish to
the Mortgagee all such information as it may from time to time require
regarding the Ship her position and copies of all char-

 12
 

ters and
other contracts for her employment or otherwise howsoever concerning her;

h)                        Notifications: to notify the Mortgagee
forthwith by telex or telecopy of:

(i)                                          any accident to the Ship
requiring repairs the cost of which will or is likely to exceed $1,000,000 (or
the equivalent in any other currency);

(ii)                                       any occurrence in
consequence whereof the Ship has or may become a Total Loss;

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

(iv)                                   any arrest of the Ship or
any exercise or purported exercise of any lien on the Ship or the Earnings or
any part thereof; and

(v)                                      any petition or notice of
a meeting to consider any resolution to wind up the Owner;

i)                            Payments
and accounts: promptly to pay all tolls dues and other outgoings whatsoever in
respect of the Ship and to keep proper books of account in respect of the Ship
and her Earnings and, as and when the Mortgagee may so require, to make such
books available for inspection on behalf of the Mortgagee and to furnish
satisfactory evidence that the wages and allotments of the Master and crew are
being regularly paid;

j)                            Negative
pledge:
not to or purport to mortgage charge or otherwise assign the Ship or other part
of the Mortgaged Premises or to suffer the creation of any such mortgage charge
or assignment as aforesaid to or in favour of any person other than the
Mortgagee;

k)                         No sale
of Ship without consent: not without the previous consent in writing of the
Mortgagee (and then only subject to such terms as the Mortgagee may impose) to
sell agree to sell or otherwise dispose of the Ship or any share or interest
therein;

 13

l)                            Charters: not without the previous
written consent of the Mortgagee (and then only subject to such conditions as
the Mortgagee may impose) to let the Ship (except for any contract with a
company in the SNSA Group):

(i)              on demise charter for any period;

(ii)                                       by any time or consecutive
voyage charter for a term which exceeds or which by virtue of any optional
extensions therein contained may exceed thirteen months’ duration; or

(iii)                                    on terms whereby more than
two months’ hire (or the equivalent) is payable in advance; or

(iv)                                   by any charter or other
arrangement below the market rate prevailing at the time when the charter is
fixed;

m)                      Work on
Ship: not
without the previous consent in writing of the Mortgagee to put the Ship into
the possession of any person for the purpose of work being done upon her in an
amount exceeding or likely to exceed $1,000,000 (or the equivalent in any other
currency);

n)                        Payment
of Mortgagee expenses: 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 hereunder or thereunder and to pay
interest thereon at the rate prescribed in the Loan Agreement from the date
whereon such expense or liability was incurred by the Mortgagee until the date
of payment whether before or after any relevant judgment.

o)                        Sharing
of Earnings: not without the prior written consent of the Mortgagee (and then only
subject to such conditions as the Mortgagee may impose) to enter into any
agreement or arrangement whereby the Earnings may be shared with any other
person; and

p)                        Payment
of Earnings to Mortgagee after Event of Default: to procure that the
Earnings are paid to the Mortgagee at all times after the Mortgagee shall have
directed pursuant to Clause (ii) that the same shall no longer be receivable by
the Owner and that any Earnings which at the time such direction is given are
in the 

 14
 

hands of
the Owner’s agents are duly accounted for and paid over to the Mortgagee
forthwith on demand.

6.                           POWERS OF MORTGAGEE TO
PROTECT SECURITY AND REMEDY DEFAULTS

6.1                                                 Protection of security. The Mortgagee shall
without prejudice to its other rights remedies and powers hereunder be entitled
(but not bound) at any time and as often as may be necessary to take any such
action as it may in its discretion think fit for the purpose of protecting or
maintaining the security created by this Deed and the other Security Documents
and all Expenses so incurred by the Mortgagee in or about the protection of the
security shall be repayable to it by the Owner on demand.

6.2                                                 Specific powers of
Mortgagee.
Without prejudice to the generality of the foregoing:

a)                                    in event that the Owner
does not comply with the provisions of Clause 5.1.1a) hereof or any of them the
Mortgagee shall be at liberty to effect and thereafter to maintain all such
Insurances upon the Ship as in its discretion it may think fit;

b)                                   in the event that the
Owner does not comply with the provisions of Clause 5.1.2 c) hereof the
Mortgagee shall be at liberty to arrange for the carrying out of such repairs
as it deems expedient or necessary;

c)                                    in event that the Owner
does not comply with the provisions of Clause 5.1.2 e) hereof or any of them
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
Ship.

6.3                                                 Expenses. The Expenses
attributable to the exercise by the Mortgagee of any of its powers pursuant to
this Clause 6 shall be repayable by the Owner to the Mortgagee on demand.

7.                           EVENTS OF DEFAULT

7.1                                                 Events. Upon the Loan becoming
due or payable or the happening of any of the following events the security
created by this Deed and the Mortgage shall immediately become enforceable:

 15
 

a)                                    Failure
to pay:
the Borrower shall fail to pay to the Mortgagee any sum of interest, principal,
or other sums due under the Loan Agreement on the due date for any such sums
and such failure shall continue for more than three (3) Banking days after the
due date;

b)                                   Breach
of covenant by Owner: the Owner does not observe or perform any of the
covenants or obligations on its part contained in the Security Documents;

c)                                    Winding
up; receivership; composition with creditors: a petition is filed or an order is made or an
effective resolution is passed for the winding up of the Owner (otherwise than
for the purpose of any such reconstruction or amalgamation as shall have been
previously approved in writing by the Mortgagee) or a receiver is appointed of
the undertaking or property of the Owner or the Owner suspends payment or
ceases to carry on its business or makes special arrangements or composition
with its creditors; or

d)                                   Event of
Default under the Loan Agreement: any Event of Default as defined in the Loan
Agreement occurs.

8.                           POWERS OF MORTGAGEE ON EVENT
OF DEFAULT

8.1                                                 Powers. Upon the happening of
any of the events specified in Clause 7 hereof the Mortgagee shall become
forthwith entitled as and when it may see fit to put into force and to exercise
all the powers possessed by it as mortgagee and chargee of the Mortgaged
Premises and in particular (without limiting the generality of the foregoing):

a)                                    Take
possession:
to take possession of the Ship;

b)                                   Delivery
of Insurances documents to brokers: to require that all policies, contracts,
certificates of entry, and other records relating to the Insurances (including
details of and correspondence concerning outstanding claims) be forthwith
delivered to such brokers as the Mortgagee may nominate;

c)                                    Take
over Insurances collections and proceedings: 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 discretion thinks fit and to permit the brokers 

 16
 

through
whom collection or recovery is effected to charge the usual fees for their
services;

d)                                   Discharge
claims:
to discharge, compound, release, or compromise claims in respect of the Ship
which have given or may give rise to any charge or lien on the Ship or which
are or may be enforceable by proceedings against the Ship;

e)                                    Sell
Ship: to
sell the Ship or any share therein with notice to the Owner and with or without
the benefit of any charterparty by public auction or private contract at such
place and upon such terms as the Mortgagee in its discretion may determine with
power to postpone any such sale and without being answerable for any loss
occasioned by such sale or resulting from postponement thereof;

f)                                      Maintain
and employ Ship pending sale: pending sale of the Ship to manage, insure, maintain and
repair the Ship and to employ sail or lay up the Ship 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 (but without prejudice to the
generality of the foregoing) to enter into such arrangements respecting the Ship,
her insurance, maintenance, repair, classification and employment in all
respects as if the Mortgagee were the owner of the Ship but without being
responsible for any loss incurred as a result of the Mortgagee doing or
omitting to do any such acts or things as aforesaid;

g)                                   Recover
losses:
to recover from the Owner on demand any such losses as may be incurred by the
Mortgagee in or about the exercise of the power vested in the Mortgagee under
Clause 8.1 e) above with interest thereon at the rate provided for in
Clause5.1.2 n) hereof from the date when such losses were incurred by the
Mortgagee until the date of payment whether before or after any relevant
judgment;

h)                                   Recover
Expenses:
to recover from the Owner on demand all Expenses incurred by the Mortgagee in
or about or incidental to the exercise by it of any of the powers aforesaid;

PROVIDED ALWAYS that upon
any sale of the Ship or any share therein by the Mortgagee pursuant to Clause
8.1 d) above or by the Receiver pursuant to Clause 9.1 below the purchaser
shall not be bound to see or inquire whether the Mortgagee’s power of sale has
arisen in the manner herein provided and the sale shall be deemed to be within 

 17
 

the power of the Mortgagee
(or the Receiver, as the case may be) and the receipt of the Mortgagee (or the
Receiver, as the case may be) 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 in any way answerable therefor.

9.                           RECEIVER

9.1                                                 Entitlement to appoint. At any time after the
Loan shall have become due and payable, the Mortgagee shall be entitled (but
not bound) by writing under its common seal or under the hand of any director
of the Mortgagee to appoint any person or persons to be a receiver and/or
manager of the Mortgaged Premises or any part thereof (with power to authorise
any joint receiver and/or manager to exercise any power independently of any
other joint receiver and/or manager) and may from time to time fix his
remuneration or remove any receiver and/or manager so appointed and appoint
another in his place. Any receiver and/or manager so appointed shall be the
agent of the Owner and the Owner shall be responsible for his acts or defaults
and for his remuneration and such receiver or manager so appointed shall have
all powers to do or omit to do anything which the Owner could do or omit to do
in relation to the Mortgaged Premises or any part thereof and in particular
(but without prejudice to the generality of the foregoing) any such receiver
and/or manager may exercise all the powers and discretions conferred on the
Mortgagee by the Mortgage and this Deed.

9.2                                                 Remuneration of Receiver. Any Receiver shall be
entitled to remuneration appropriate to the work and responsibilities involved
upon the basis of charging from time to time adopted by the Receiver in
accordance with the current practice of his firm.

9.3                                                 Limitation of liability. Neither the Mortgagee
nor any receiver shall be liable as mortgagee in possession of all of any of the
Mortgaged Premises to account or be liable for any loss on the realisation or
for any neglect or default of any nature whatsoever in connection therewith for
which a Mortgagee in possession may be liable as such.

10.                       APPLICATION OF MONEYS

10.1                                           Application. All monies received by
the Mortgagee in respect of:

a)                                    sale of the Ship or any
share therein;

b)                                   recovery under the
Insurances (other than any such sum or sums as may have been received by the
Mortgagee in accordance with Clause 4.1(i)(a) hereof in 

 18
 

respect
of a major casualty as therein defined and which has or have been paid to the
Owner as therein provided), and

c)                                    Requisition Compensation
shall be held by it upon trust in the first place to pay or make good all
Expenses as may have been incurred by the Mortgagee in or about or incidental
to the exercise by the Mortgagee of the powers specified or otherwise referred
to in Clause 8 hereof or any of them and the balance shall be applied in manner
following:

FIRST towards costs, fees
and expenses;

SECOND in or towards
payment of any interest accrued and owing by the Owner in respect of the
Outstanding Indebtedness;

THIRD in or towards
payment of any balance of the Outstanding Indebtedness, unless otherwise
decided by the Mortgagee.

10.2                                           Other monies. Any monies received by
the Mortgagee or any Receiver in respect of the Earnings or in respect of the
employment of the Ship pursuant to the provisions of Clause 8 shall be applied
by the Mortgagee or the Receiver in the manner specified in Clause 10.1.

11.                       CONTINUING SECURITY

11.1                                           No implied waivers,
cumulative rights. 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 to be construed as a waiver of or as 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 Deed shall prejudice the rights of the Mortgagee under the Mortgage and/or
this Deed 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 hereof, require the consent of the Mortgagee
prejudice the right of the Mortgagee to give or withhold as it sees fit its
consent to the doing of any other such similar act. The remedies provided in
the Security Documents are cumulative and not exclusive of any remedies
provided by law.

 19
 

11.2                                           No obligation to inquire
as to sufficiency or make claims. The Mortgagee shall not be obliged to make any
inquiry as to the nature or sufficiency of any payment received by it hereunder
or to make any claim or to take any action to collect any moneys hereby
assigned or to enforce any rights and benefits hereby assigned to the Mortgagee
or to which the Mortgagee may at any time be entitled hereunder.

11.3                                           Continuing security. The security created by
the Mortgage and this Deed shall be a continuing security for the payment of
the Outstanding Indebtedness and accordingly the security so created shall not
be satisfied by any intermediate payment or the satisfaction of any part of the
Outstanding Indebtedness. The security so created shall be in addition to and
shall not in any way prejudice or affect the security created by, any deposit
of documents, or any guarantee, lien, bill, note, mortgage or other security
now or hereafter held by the Mortgagee or any right or remedy of the Mortgagee
thereunder and shall not in any way be prejudiced or affected thereby or by the
invalidity or unenforceability thereof or by the Mortgagee releasing, modifying
or refraining from perfecting or enforcing any of the same or granting time or
indulgence or compounding with any person liable. All the rights and remedies
and powers vested in the Mortgagee by the Mortgage and this Deed may be
exercised from time to time as often as the Mortgagee may deem expedient.
Notwithstanding that this Deed is expressed to be supplemental to the Mortgage,
it shall continue in full force and effect after any discharge of the Mortgage.

12.                       DELEGATION

12.1                                           Power to delegate. 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 14 hereof) in such
manner upon such terms and to such persons as the Mortgagee in its absolute
discretion may think fit.

13.                       INDEMNITY AND COSTS

13.1                                           Indemnity. THE OWNER HEREBY AGREES
AND UNDERTAKES to indemnify the Mortgagee and any Receiver against all
obligations and liabilities whatsoever and whensoever arising which the
Mortgagee or Receiver may incur in good faith in respect of or in relation to
or in connection with the Ship or otherwise howsoever in relation to or in
connection with any of the matters dealt with in the Security Documents.

 20
 

13.2                                           Costs. The Owner shall pay to
the Mortgagee on demand all expenses (including legal fees, fees of insurance
advisers, printing and out of pocket expenses, together with any tax payable in
respect thereof) incurred by the Mortgagee in connection with the enforcement
of, or preservation of any rights under, the Mortgage and this Deed or
otherwise in respect of the Outstanding Indebtedness and all stamp duties,
registration fees and other duties or charges from time to time payable in
connection with the execution and registration of the Mortgage and this Deed.

14.                       POWER OF ATTORNEY

14.1                                           Appointment. THE OWNER HEREBY
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 Mortgaged Premises and to execute, seal and
deliver or otherwise perfect and do all such deeds, assurances, agreements,
instruments, acts or things which may be required for the full exercise of all
or any of the rights powers or remedies hereby conferred which may be proper in
or in connection with all or any of the purposes aforesaid. The Owner ratifies
and confirms and agrees to ratify and confirm any deed, assurance, agreement,
instrument, act or thing which the Mortgagee shall execute or do pursuant to this
Clause 14.1, PROVIDED HOWEVER that such power shall not be exercisable by or on
behalf of the Mortgagee until the security created by this Deed and the
Mortgage shall have become enforceable pursuant to Clause 8 hereof.

14.2                                           Third parties not required
to inquire as to rights of attorney to act. The exercise of such power by or on behalf of the
Mortgagee shall not put any person dealing with the Mortgagee upon any inquiry
as to whether the said security has become enforceable nor shall such person be
in any way affected by notice that the said security has not become so
enforceable and the exercise by the Mortgagee of such power shall be conclusive
evidence of its right to exercise the same.

15.                       FURTHER ASSURANCES

15.1                                           Further assurances. THE OWNER HEREBY 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 Mortgaged Premises or perfecting the
security constituted by the Security Documents.

 21
 

16.                       NOTICES

16.1                                           Deemed receipt. Any demand notice or
other communication required to be made or given in writing under the
provisions of this Deed or any other Security Document shall be deemed to have
been duly received by the other party (i) if the same be communicated by telex
or telecopier during ordinary business hours on the date upon which the telex
or telecopy was transmitted or if transmitted outside business hours at the
start of the next business day (ii) if the same be communicated by letter upon
the business day next following the date of dispatch by Recorded Delivery
service.

16.2                                           Notification of changes. Any change of address or
of telex or telecopier number shall be promptly notified in writing by either
party to the other. In default of notification of change of address any
communication duly dispatched to the other party at the address of its office
hereinbefore set out (or any notified new address) shall be deemed to have been
received in accordance with the foregoing provision.

16.3                                           Confirmation by letter. Any communication by
telex shall be thereafter confirmed by letter.

17.                       SEVERABILITY

17.1                                           Severability. Any provision of the
Security Documents 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 of the Security Documents but where
the provisions of any such applicable law may be waived they are hereby waived
to the full extent permitted by such law to the end that the Security Documents
shall be valid and binding documents enforceable in accordance with their
respective terms.

18.                       RELEASE OF EXISTING DEED
OF COVENANTS

The Owner and the
Mortgagee are parties to a Deed of Covenants dated 27 October 2005 in respect
of the Ship (the “Existing Deed of Covenants”). The obligations of the Owner
under this Deed of Covenants, to the extent that it secures the Owner’s
guarantee of the Borrower’s obligations in respect of the Existing Tranches and
the New Tranches (as each such term is defined in the Loan Agreement) are a
continuation without interruption of the Owner’s obligations under the Existing
Deed of Covenants to the extent that such Existing Deed of Covenants secures
the Owner’s obligations under its guarantee of the Existing Tranches and New
Tranches. Upon execution of this Deed 

 22
 

of Covenants by the Owner,
the Existing Deed of Covenants shall terminate and neither the Owner nor the
Lender shall have any rights or obligations thereunder.

19.                       GOVERNING LAW AND
JURISDICTION

19.1                                           Governing law. To the extent the laws
of the Cayman Islands are not compulsorily applicable, the Mortgage and this
Deed shall be governed by Danish law.

19.2                                           Jurisdiction. Any dispute arising out
of or in connection with the Mortgage and this Deed shall be settled by the
Maritime and Commercial Court in Copenhagen, Denmark (“Sø- og Handelsretten”).
This shall, however, not limit the rights of the Mortgagee to initiate
proceedings against the Owner, the Vessel or any other of the Owner’s assets in
any other competent jurisdiction.  Any
decision by the Maritime and Commercial Court in Copenhagen, Denmark, may be
appealed to the Danish Supreme Court.

IN WITNESS whereof the parties hereto have caused this
instrument to be executed as a Deed the day and year first before written.

Executed as a Deed

	
  For and on behalf of [Stolt Concept B.V.]

  	
   

  	
   

  
	
  as Owner

  	
   

  	
  In the
  presence of:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Print Name:

  	
  Walter Lion

  	
   

  	
   

  	
  Lauren Cramer

  
	
  Capacity:

  	
  Attorney-in-fact

  	
   

  	
   

  	
   

  

 

Executed as a Deed

	
  For and on behalf of Danish Ship Finance A/S

  	
   

  	
   

  
	
  (Danmarks Skibskredit A/S) as Mortgagee 

  	
   

  	
  In the
  presence of:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Christian
  Hennings

  
						

 

 23Exhibit 4.22

Shipbuilding
and Construction Agreements between Stolt-Nielsen Transportation Group B.V. and

SLS Shipbuilding Co., Ltd.

	
  Signing Date

  	
   

  	
  Hull No.

  	
   

  	
  IMO Classification

  	
   

  	
  DWT

  	
   

  	
  Delivery Date

  	
   

  	
  Contract Price

  	
   

  
	
  June 9, 2005

  	
   

  	
  S-473

  	
   

  	
  2/3

  	
   

  	
  44,000

  	
   

  	
  May
  28, 2008

  	
   

  	
  $

  	
  57,480,000

  	
   

  
	
  June 9, 2005

  	
   

  	
  S-474

  	
   

  	
  2/3

  	
   

  	
  44,000

  	
   

  	
  September
  30, 2008

  	
   

  	
  $

  	
  57,480,000

  	
   

  
	
  June 9, 2005

  	
   

  	
  S-475

  	
   

  	
  2/3

  	
   

  	
  44,000

  	
   

  	
  November
  27, 2008

  	
   

  	
  $

  	
  57,480,000

  	
   

  
	
  June 9, 2005

  	
   

  	
  S-476

  	
   

  	
  2/3

  	
   

  	
  44,000

  	
   

  	
  February
  12, 2009

  	
   

  	
  $

  	
  57,480,000

  	
   

  
	
  October 27, 2006

  	
   

  	
  S504

  	
   

  	
  1/2/3

  	
   

  	
  43,000

  	
   

  	
  May
  31, 2010

  	
   

  	
  $

  	
  84,500,000

  	
   

  
	
  October 27, 2006

  	
   

  	
  S505

  	
   

  	
  1/2/3

  	
   

  	
  43,000

  	
   

  	
  August
  31, 2010

  	
   

  	
  $

  	
  84,500,000

  	
   

  
	
  October 27, 2006

  	
   

  	
  S506

  	
   

  	
  1/2/3

  	
   

  	
  43,000

  	
   

  	
  November
  30, 2010

  	
   

  	
  $

  	
  84,500,000

  	
   

  
	
  October 27, 2006

  	
   

  	
  S507

  	
   

  	
  1/2/3

  	
   

  	
  43,000

  	
   

  	
  February
  28, 2011

  	
   

  	
  $

  	
  84,500,000

  	
   

  
	
  April 10, 2007

  	
   

  	
  S516

  	
   

  	
  1/2/3

  	
   

  	
  43,000

  	
   

  	
  May
  31, 2011

  	
   

  	
  $

  	
  84,500,000

  	
   

  
	
  April 10, 2007

  	
   

  	
  S517

  	
   

  	
  1/2/3

  	
   

  	
  43,000

  	
   

  	
  August
  31, 2011

  	
   

  	
  $

  	
  84,500,000

  	
   

  
	
  April 10, 2007

  	
   

  	
  S518

  	
   

  	
  1/2/3

  	
   

  	
  43,000

  	
   

  	
  November
  30, 2011

  	
   

  	
  $

  	
  84,500,000

  	
   

  
	
  April 10, 2007

  	
   

  	
  S519

  	
   

  	
  1/2/3

  	
   

  	
  43,000

  	
   

  	
  February 28, 2012

  	
   

  	
  $

  	
  84,500,000

  	
   

  

 

On each of June 9,
2005, October 27, 2006 and April 10, 2007, Stolt-Nielsen S.A.’s wholly owned
subsidiary Stolt-Nielsen Transportation Group B.V., entered into four separate
agreements with SLS Shipbuilding Co., Ltd. for the construction and sale of
four parcel tankers. The June 9, 2005 agreements were originally entered into
with ShinA Shipbuilding Co. Ltd., which was subsequently acquired by SLS
Shipbuilding Co., Ltd. Other than the IMO classifications, DWTs, delivery dates
and contract prices designated in the table above, there are no material
differences between the terms of the agreements.  The agreement for the sale of parcel tanker
Hull No. S-473 is attached hereto as a form.

SHIPBUILDING CONTRACT

FOR

THE CONSTRUCTION AND SALE

OF

One (1) DWT 44,000 IMO II/III
Product/Chemical Tanker

(HULL NO. S473)

BY AND BETWEEN

STOLT-NIELSEN TRANSPORTATION
GROUP B.V.

As Buyer

AND

SHINA SHIPBUILDING CO., LTD.

As Builder

INDEX

	
  PREAMBLE

  	
   

  	
  P-1

  
	
   

  	
   

  	
   

  
	
  ARTICLE I - DESCRIPTION AND CLASS

  	
   

  	
  I-l

  
	
   

  	
   

  	
   

  
	
  1. Description:

  	
   

  	
  I-1

  
	
   

  	
   

  	
   

  
	
  2. Dimensions
  and Characteristics:

  	
   

  	
  I-1

  
	
   

  	
   

  	
   

  
	
  3. Classification,
  Rules and Regulations:

  	
   

  	
  I-2

  
	
   

  	
   

  	
   

  
	
  4. Subcontracting:

  	
   

  	
  I-3

  
	
   

  	
   

  	
   

  
	
  5. Registration:

  	
   

  	
  I-3

  
	
   

  	
   

  	
   

  
	
  ARTICLE II - CONTRACT PRICE AND TERMS OF
  PAYMENT

  	
   

  	
  II-l

  
	
   

  	
   

  	
   

  
	
  1. Contract
  Price:

  	
   

  	
  II-1

  
	
   

  	
   

  	
   

  
	
  2. Adjustment of
  Contract Price:

  	
   

  	
  II-1

  
	
   

  	
   

  	
   

  
	
  3. Currency:

  	
   

  	
  II-1

  
	
   

  	
   

  	
   

  
	
  4. Terms of
  Payment:

  	
   

  	
  II-1

  
	
   

  	
   

  	
   

  
	
  5. Method of
  Payment:

  	
   

  	
  II-3

  
	
   

  	
   

  	
   

  
	
  6. Notice of
  Payment on or before Delivery:

  	
   

  	
  II-4

  
	
   

  	
   

  	
   

  
	
  7. Expenses:

  	
   

  	
  II-4

  
	
   

  	
   

  	
   

  
	
  8. Prepayment:

  	
   

  	
  II-4

  
	
   

  	
   

  	
   

  
	
  9. Documentation:

  	
   

  	
  II-5

  
	
   

  	
   

  	
   

  
	
  ARTICLE III - ADJUSTMENT OF CONTRACT PRICE

  	
   

  	
  III-1

  
	
   

  	
   

  	
   

  
	
  1. Delivery:

  	
   

  	
  III-1

  
	
   

  	
   

  	
   

  
	
  2. Speed:

  	
   

  	
  III-3

  
	
   

  	
   

  	
   

  
	
  3. Fuel
  Consumption:

  	
   

  	
  III-3

  
	
   

  	
   

  	
   

  
	
  4. Deadweight:

  	
   

  	
  III-4

  
	
   

  	
   

  	
   

  
	
  5. Steel Weight
  Adjustment

  	
   

  	
  III-4

  
	
   

  	
   

  	
   

  
	
  6. Steel Price
  Adjustment

  	
   

  	
  III-5

  
	
   

  	
   

  	
   

  
	
  7. Effect of
  Cancellation:

  	
   

  	
  III-6

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV - APPROVAL OF PLANS AND DRAWINGS
  AND INSPECTION DURING CONSTRUCTION

  	
   

  	
  IV-1

  
	
   

  	
   

  	
   

  
	
  1. Approval of
  Plans and Drawings:

  	
   

  	
  IV-1

  
	
   

  	
   

  	
   

  
	
  2. Appointment
  of BUYER’s Supervisor:

  	
   

  	
  IV-2

  
	
   

  	
   

  	
   

  
	
  3. Inspection by
  the Supervisor:

  	
   

  	
  IV-2

  
	
   

  	
   

  	
   

  
	
  4. Facilities:

  	
   

  	
  IV-4

  
	
   

  	
   

  	
   

  
	
  5. Liability of
  BUILDER:

  	
   

  	
  IV-4

  

 

 

	
  6. Responsibility of BUYER:

  	
   

  	
  IV-4

  
	
   

  	
   

  	
   

  
	
  ARTICLE V - MODIFICATIONS, CHANGES AND
  EXTRAS

  	
   

  	
  V-1

  
	
   

  	
   

  	
   

  
	
  1. Modification
  of Specifications:

  	
   

  	
  V-1

  
	
   

  	
   

  	
   

  
	
  2. Changes in
  Rules of Classification Society, Regulations, etc.:

  	
   

  	
  V-2

  
	
   

  	
   

  	
   

  
	
  3. Substitution
  of Materials:

  	
   

  	
  V-3

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI - TRIALS AND ACCEPTANCE

  	
   

  	
  VI-1

  
	
   

  	
   

  	
   

  
	
  1. Notice:

  	
   

  	
  VI-1

  
	
   

  	
   

  	
   

  
	
  2. Weather
  Condition:

  	
   

  	
  VI-1

  
	
   

  	
   

  	
   

  
	
  3. How
  Conducted:

  	
   

  	
  VI-2

  
	
   

  	
   

  	
   

  
	
  4. Method of
  Acceptance or Rejection:

  	
   

  	
  VI-2

  
	
   

  	
   

  	
   

  
	
  5. Effect of
  Acceptance:

  	
   

  	
  VI-3

  
	
   

  	
   

  	
   

  
	
  6. Disposition
  of Surplus Consumable Stores

  	
   

  	
  VI-4

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII - DELIVERY

  	
   

  	
  VII-1

  
	
   

  	
   

  	
   

  
	
  1. Time and
  Place:

  	
   

  	
  VII-1

  
	
   

  	
   

  	
   

  
	
  2. When and How
  Effected:

  	
   

  	
  VII-1

  
	
   

  	
   

  	
   

  
	
  3. Documents to
  be delivered to BUYER:

  	
   

  	
  VII-1

  
	
   

  	
   

  	
   

  
	
  4. Tender of
  VESSEL:

  	
   

  	
  VII-3

  
	
   

  	
   

  	
   

  
	
  5. Title and
  Risk:

  	
   

  	
  VII-3

  
	
   

  	
   

  	
   

  
	
  6. Removal of
  VESSEL:

  	
   

  	
  VII-3

  
	
   

  	
   

  	
   

  
	
  ARTICLE VIII - DELAYS AND EXTENSION OF TIME
  FOR DELIVERY

  	
   

  	
   

  
	
  (FORCE MAJEURE)

  	
   

  	
  VIII-1

  
	
   

  	
   

  	
   

  
	
  1. Causes of
  Delay (Force Majeure):

  	
   

  	
  VIII-1

  
	
   

  	
   

  	
   

  
	
  2. Notice of
  Delay:

  	
   

  	
  VIII-2

  
	
   

  	
   

  	
   

  
	
  3. Definition of
  Permissible Delay:

  	
   

  	
  VIII-2

  
	
   

  	
   

  	
   

  
	
  4. Right to
  Cancel for Excessive Delay:

  	
   

  	
  VIII-2

  
	
   

  	
   

  	
   

  
	
  ARTICLE IX - WARRANTY OF QUALITY

  	
   

  	
  IX-1

  
	
   

  	
   

  	
   

  
	
  1. Guarantee:

  	
   

  	
  IX-1

  
	
   

  	
   

  	
   

  
	
  2. Notice of
  Defects:

  	
   

  	
  IX-2

  
	
   

  	
   

  	
   

  
	
  3. Remedy of
  Defects:

  	
   

  	
  IX-2

  
	
   

  	
   

  	
   

  
	
  4. Extent of
  BUILDER’s Responsibility:

  	
   

  	
  IX-4

  
	
   

  	
   

  	
   

  
	
  5. Guarantee
  Engineer:

  	
   

  	
  IX-5

  

 

 

	
  ARTICLE X - CANCELLATION BY BUYER

  	
   

  	
  X-l

  
	
   

  	
   

  	
   

  
	
  1. BUILDER’s
  Default and Effect of Default

  	
   

  	
  X-l

  
	
   

  	
   

  	
   

  
	
  2. Notice:

  	
   

  	
  X-2

  
	
   

  	
   

  	
   

  
	
  3. Refund by
  BUILDER:

  	
   

  	
  X-2

  
	
   

  	
   

  	
   

  
	
  4. Discharge of
  Obligations:

  	
   

  	
  X-3

  
	
   

  	
   

  	
   

  
	
  ARTICLE XI - BUYER’s DEFAULT

  	
   

  	
  XI-1

  
	
   

  	
   

  	
   

  
	
  1. Definition of
  BUYER’s Default:

  	
   

  	
  XI-1

  
	
   

  	
   

  	
   

  
	
  2. Effect of
  Default on or before Delivery of VESSEL:

  	
   

  	
  XI-1

  
	
   

  	
   

  	
   

  
	
  3. Disposal of
  VESSEL by BUILDER upon BUYER’s Default:

  	
   

  	
  XI-2

  
	
   

  	
   

  	
   

  
	
  ARTICLE XII - ARBITRATION

  	
   

  	
  XII-1

  
	
   

  	
   

  	
   

  
	
  1. Decision by
  the Classification Society:

  	
   

  	
  XII-1

  
	
   

  	
   

  	
   

  
	
  2. Proceedings
  of Arbitration:

  	
   

  	
  XII-1

  
	
   

  	
   

  	
   

  
	
  3. Work to
  Continue during Arbitration:

  	
   

  	
  XII-2

  
	
   

  	
   

  	
   

  
	
  4. Expenses:

  	
   

  	
  XII-2

  
	
   

  	
   

  	
   

  
	
  5. Entry in
  Court:

  	
   

  	
  XII-2

  
	
   

  	
   

  	
   

  
	
  6. Alteration of
  Delivery Date:

  	
   

  	
  XII-2

  
	
   

  	
   

  	
   

  
	
  ARTICLE XIII - SUCCESSOR AND ASSIGNS

  	
   

  	
  XIII-1

  
	
   

  	
   

  	
   

  
	
  ARTICLE XIV - TAXES AND DUTIES

  	
   

  	
  XIV-1

  
	
   

  	
   

  	
   

  
	
  1. Taxes and
  Duties Incurred in Korea:

  	
   

  	
  XIV-1

  
	
   

  	
   

  	
   

  
	
  2. Taxes and
  Duties Incurred outside Korea:

  	
   

  	
  XIV-1

  
	
   

  	
   

  	
   

  
	
  ARTICLE XV - PATENTS, TRADEMARKS,
  COPYRIGHTS, ETC

  	
   

  	
  XV-1

  
	
   

  	
   

  	
   

  
	
  1. Patents,
  Trademarks and Copyrights:

  	
   

  	
  XV-1

  
	
   

  	
   

  	
   

  
	
  2. General
  Plans, Specifications and Working Drawings:

  	
   

  	
  XV-1

  
	
   

  	
   

  	
   

  
	
  ARTICLE XVI -BUYER’s SUPPLIES

  	
   

  	
  XVI-1

  
	
   

  	
   

  	
   

  
	
  1. Responsibility
  of BUYER:

  	
   

  	
  XVI-1

  
	
   

  	
   

  	
   

  
	
  2. Responsibility
  of BUILDER:

  	
   

  	
  XVI-2

  
	
   

  	
   

  	
   

  
	
  ARTICLE XVII - INSURANCE

  	
   

  	
  XVII-1

  
	
   

  	
   

  	
   

  
	
  1. Extent of
  Insurance Coverage

  	
   

  	
  XVII-1

  
	
   

  	
   

  	
   

  
	
  2. Application
  of the Recovered Amounts

  	
   

  	
  XVII-1

  
	
   

  	
   

  	
   

  
	
  3. Termination
  of BUILDER’s Obligation to Insure

  	
   

  	
  XVII-2

  

 

 

	
  ARTICLE XVIII - NOTICE

  	
   

  	
  XVIII-1

  
	
   

  	
   

  	
   

  
	
  1. Address:

  	
   

  	
  XVIII-1

  
	
   

  	
   

  	
   

  
	
  2. Language:

  	
   

  	
  XVIII-1

  
	
   

  	
   

  	
   

  
	
  3. Effective Date of
  Notice:

  	
   

  	
  XVIII-2

  
	
   

  	
   

  	
   

  
	
  ARTICLE XIX - EFFECTIVE DATE OF CONTRACT

  	
   

  	
  XIX-1

  
	
   

  	
   

  	
   

  
	
  ARTICLE XX - INTERPRETATION

  	
   

  	
  XX-1

  
	
   

  	
   

  	
   

  
	
  1. Laws Applicable:

  	
   

  	
  XX-1

  
	
   

  	
   

  	
   

  
	
  2. Discrepancies:

  	
   

  	
  XX-1

  
	
   

  	
   

  	
   

  
	
  3. Entire Agreement:

  	
   

  	
  XX-1

  
	
   

  	
   

  	
   

  
	
  4. Amendments and
  Supplements:

  	
   

  	
  XX-1

  
	
   

  	
   

  	
   

  
	
  EXHIBIT ”A”

  	
   

  	
  A-l

  
	
   

  	
   

  	
   

  
	
  EXHIBIT ”B”

  	
   

  	
  B-l

  

 

THIS CONTRACT, made and entered into on this 9th day of June, 2005 by and between
STOLT-NIELSEN TRANSPORTATION GROUP B.V., a corporation incorporated and
existing under the laws of The Netherlands and having its registered office at
Westerlaan 5, 3016 CK Rotterdam, The Netherlands (hereinafter called the “BUYER”),
on the one part and ShinA Shipbuilding Co., Ltd, a corporation
incorporated and existing under the laws of the Republic of Korea and having
its registered office at 227, Donam-dong, Tongyeong, Gyeongnam, Korea
(hereinafter called the “BUILDER”), on the other part,

WITNESSETH:

In consideration of the mutual covenants herein
contained, the BUILDER agrees to design, build, launch, equip, test and
complete one(l) Single Screw Diesel Engine Driven 44,000 DWT Chemical Tanker as
described in the Specifications attached herewith (hereinafter called the “VESSEL”)
at the BUILDER’s Shipyard located in Tongyeong, Korea (hereinafter called the “Shipyard”)
and to deliver and sell the same to the BUYER, and the BUYER hereby agrees to
purchase and take delivery of the VESSEL from the BUILDER and to pay for the
same upon the terms and conditions hereinafter set forth.

(End of Preamble)

 P-1

ARTICLE I - DESCRIPTION
AND CLASS

1.             Description:

The
VESSEL shall be a Single Screw Diesel Engine Driven 44,000 DWT Chemical Tanker
having the BUILDER’s Hull No. S473 and shall be designed, constructed,
equipped, tested and completed in accordance with the provisions of this
Contract, and the specifications (FS-CC43-STOLT-R0) including Maker’s List and
the General Arrangement Plan (O11-B01 dated 27th May 2005) (hereinafter collectively
called the “Specifications”) signed by each of the parties hereto for identification
and attached hereto and made an integral part hereof.

2.             Dimensions and Characteristics:

	
  Length, overall

  	
   

  	
  appx.

  	
   

  	
  182.880

  	
   

  	
   

  	
   

  	
  M

  
	
  Length, between perpendiculars

  	
   

  	
  appx.

  	
   

  	
  175.600

  	
   

  	
   

  	
   

  	
  M

  
	
  Breadth, moulded

  	
   

  	
  appx.

  	
   

  	
  32.200

  	
   

  	
   

  	
   

  	
  M

  
	
  Depth, moulded

  	
   

  	
  appx.

  	
   

  	
  16.050

  	
   

  	
   

  	
   

  	
  M

  
	
  Designed loaded draught, moulded

  	
   

  	
  appx.

  	
   

  	
  12.070

  	
   

  	
   

  	
   

  	
  M

  
	
  Scantling draught, moulded,

  	
   

  	
  appx.

  	
   

  	
  12.070

  	
   

  	
   

  	
   

  	
  M

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Main Engine:

  	
   

  	
  B&W 5S60MC-C, License made MCR 11300 kw at 105
  r.p.m.

  
	
   

  	
   

  	
   

  
	
  Deadweight, guaranteed:

  	
   

  	
  44,000 metric tons at the moulded scantling draught
  of 12.07 meters.

  
	
   

  	
   

  	
   

  
	
  Speed, guaranteed:

  	
   

  	
  15.0 Knots at a draught of 12.07 Meters and main
  engine developing power of 8843 kw

  
	
   

  	
   

  	
   

  
	
  Fuel Consumption, guaranteed:

  	
   

  	
  170 grams/kw -hour using marine diesel oil having
  lower calorific value of 10,200 Kcal/Kg at maximum continuous rating of main
  engine measured at the shop trial.

  

 

 I-1
 

The
details of the aforementioned particulars as well as the definitions and method
of measurements and calculations are as defined in the Specifications.

3.             Classification, Rules and Regulations:

The
VESSEL, including its machinery, equipment and outfitting shall be designed and
constructed in accordance with the rules and regulations (the edition and
amendments thereto being in force as of the date of this Contract) of and under
special survey of DET NORSKE VERITAS (hereinafter called the “Classification
Society”) and shall be distinguished in the register by the symbol of +A1,
Tanker for Oil Products, Tanker for Chemicals ESP, NAUT-OC, E0, ETC, VCS-2,
TMON, INERT, Shiptype2, a2, b3, c3, r3, f2, str 0.1, k, D=1.25 (1.50 slack)

Or
Lloyd’s Register of Shipping with the equivalent notations with above DET
NORSKE VERITAS.

Decisions
of the Classification Society as to compliance or non-compliance with the
classification shall be final and binding upon both parties hereto. Details of
its notation shall be in accordance with the Specifications.

The
VESSEL shall also comply with the rules, regulations and requirements of the
regulatory bodies as described in the Specifications in effect as of the
signing date of this Contract.

All
the fees and charges incidental to the classification and with respect to
compliance with the above referred rules, regulations and requirements shall be
for account of the BUILDER except otherwise agreed.

The
BUILDER shall forward to the BUYER copies of all correspondence exchanged
between the BUILDER and the Classification Society and/or the Regulatory
Bodies, if any.

 I-2
 

4.             Subcontracting:

The
BUILDER may not subcontract a substantial portion of the construction work
of the VESSEL outside the Shipyard but may subcontract a lesser portion
thereof outside the Shipyard to the reputable sub-contractors within the Korea
in the region of Tongyeong, Busan, Ulsan and Geoje Island. The BUILDER is
permitted to sub-contract a portion of the construction work within the
Shipyard without BUYER’s consent. Notwithstanding any such sub-contracting the
BUILDER remain responsible for compliance with the obligations of the Contract.

5.             Registration:

The
VESSEL, at the time of its delivery and acceptance, shall be registered at the
port of registry by the BUYER under the Cayman Islands flag at the BUYER’s
expenses or such other port of Registry as the Buyer may elect no later than
Nine(9) months prior to the estimated delivery date. However extra cost,
in the event of change, shall be for the BUYER’s account.

(End of Article)

 I-3

ARTICLE II - CONTRACT
PRICE AND TERMS OF PAYMENT

1.             Contract Price:

The
Contract price of the VESSEL, net receivable by the BUILDER and exclusive of
the BUYER’s Supplies as provided in Paragraph 1 of Article XVI hereof is
Fifty Seven Million Four Hundred Eighty Thousand United States Dollars (US$
57,480,000) (hereinafter called the “Contract Price”), which shall be subject
to upward or downward adjustment, if any, as hereinafter set forth in this
Contract.

2.             Adjustment of Contract Price:

Increase
or decrease of the Contract Price, if any, due to adjustments thereof made in
accordance with the provisions of this Contract, shall be adjusted by way of
addition to or subtraction from the Contract Price upon delivery of the VESSEL
in the manner as hereinafter
provided.

3.             Currency:

Any
and all payments by the
BUYER to the BUILDER which are due under this Contract shall be made in United
States Dollars.

4.             Terms of Payment:

The
Contract Price shall be
due and payable by the BUYER to the BUILDER in the installments as follows:

(For
the purpose of this
Contract, the “business day” shall be a banking day in New York and London and
the “telefax” shall be the means of facsimile or internet transmission)

 II-1
 

(a)           First Installment:

The
First Installment amounting to Five Million Seven Hundred Forty Eight Thousand
United States Dollars (US$ 5,748,000) shall be due and payable upon receipt of
the original tested telex or SWIFT by the BUYER’s Bank of the signed Refund
Guarantee provided pursuant to Article X but not earlier than Seventy (70)
days after signing this Contract.

(b)           Second Installment:

The
Second Installment amounting to Eleven Millions Four Hundred Ninety Six
Thousand United States Dollars (US$ 11,496,000) shall be due and payable on the
date after Fourteen (14) calendar months and Eight (8) days after signing
this Contract.

(c)           Third Installment:

The
Third Installment amounting to Five Millions Seven Hundred Forty Eight Thousand
United States Dollars (US$ 5,748,000) shall be due and payable on the date
which the BUYER receives a telefax notice from the BUILDER, endorsed by the
Classification Society, confirming commencement of steel cutting of the VESSEL.

(d)           Fourth Installment:

The
Fourth Installment amounting to Thirty Four Millions Four Hundred Eighty Eight
Thousand United States Dollars (US$ 34,488,000), plus any increase or minus any
decrease due to adjustments of the Contract Price under and pursuant to the
provisions of this Contract, shall be due and payable upon delivery of the
VESSEL or upon tender for delivery of the VESSEL referred to in Paragraph 4 of
Article VII of this Contract.

 II-2
 

5.             Method of Payment:

(a)           Installments Payable before Delivery:

The
BUYER shall, at its own cost and expense, remit each of the respective
installments payable before delivery of the VESSEL as provided in Paragraph 4
of this Article by telegraphic transfer to the account (Account
No. 04-029-695) of the Export-Import Bank of Korea, Seoul, Korea, with
Deutsche Bank Trust Company Americas, N.Y., Church Street Station, New York,
NY10015 or with other bank which the BUILDER may designate in favour of
ShinA Shipbuilding Co., Ltd. (hereinafter called the “BUILDER’s Bank”).

(b)           Installment Payable on Delivery:

At
least Three (3) business days prior to the anticipated delivery date of
the VESSEL, the BUYER shall deposit by telegraphic transfer the Fourth
Installment to the account of the BUILDER’s Bank in favour of ShinA
Shipbuilding Co., Ltd. with an irrevocable instruction that the amount so
remitted shall be payable to the BUILDER against a copy of PROTOCOL OF DELIVERY
and ACCEPTANCE OF THE VESSEL signed by the BUYER and the BUILDER.

If
any interest earned on the account, it shall be paid by the BUILDER’S to the
BUYER.

If
the BUILDER has not presented the said copy of the PROTOCOL OF DELIVERY AND
ACCEPTANCE to the BUILDER’s bank within Fifteen (15) business days of the
anticipated delivery date, the BUYER may withdraw the deposit together
with all interest earned thereon. If and when the BUILDER advises the BUYER of
a revised scheduled delivery date, the BUYER shall redeposit the Fourth
Installment in the same manner as stated above at least three (3) business
days prior to such scheduled delivery date.

 II-3
 

Simultaneously
with each of all such payments, the BUYER shall cause the BUYER’s Bank to
advise the BUILDER’s Bank of the details of such payments by authenticated bank
cable or telex.

No
payment under this Contract shall be delayed, suspended or withheld by the
BUYER on account of any dispute or disagreement between the parties hereto

Any
claim which the BUYER may have against the BUILDER hereunder shall be
settled and liquidated separately from any payment by the BUYER to the BUILDER
hereunder.

6.             Notice of Payment on or before Delivery:

The
BUILDER shall give the BUYER Five (5) business days prior notice by
telefax of the anticipated due date and amount of each installment payable on
or before delivery of the VESSEL.

7.             Expenses:

Expenses
and bank charges for remitting payments and any taxes, duties, expenses and
fees connected with such payment shall be for account of the BUYER referred to
in Paragraph 2 of Article XIV of this Contract.

8.             Prepayment:

Prepayment
of any installment due on or before delivery of the VESSEL shall be subject to
mutual agreement between the parties hereto.

 II-4
 

9.             Documentation:

The
BUYER warrants providing the BUILDER within Twenty (20) Business Days from the
signing of the Contract with the following documentation:

Certification
of incorporation with registered address;

Articles
of incorporation;

Resolution
of Directors;

List
of members of Board of Directors.

(End of Article)

 II-5

ARTICLE III -
ADJUSTMENT OF CONTRACT PRICE

The
Contract Price shall be subject to adjustment, as hereinafter set forth, in the
event of the following contingencies (it being understood by both parties that
any reduction of the Contract Price is by way of liquidated damages and not by
way of penalty):

The
liquidated damages hereunder shall be the conclusive pecuniary compensation
recoverable in connection with each particular event stated herein and the
BUILDER shall not be liable for any additional compensation claimed by the
BUYER in relation to such particular event and the consequences thereof.

1.             Delivery:

(a)           No adjustment shall be made and the Contract Price shall remain
unchanged for the first Thirty (30) days of delay in delivery of the VESSEL
beyond the Delivery Date as defined in Article VII hereof (ending as of
twelve o’clock midnight Korean time of the Thirtieth (30th) day of delay).

(b)           If the delivery of the VESSEL is delayed more than Thirty (30) days
after the Delivery Date, the Contract Price shall be reduced by the sum of Ten
Thousand United States Dollars (US$10,000) for each full day for which
thereafter delivery is delayed.

However,
the total reduction in the Contract Price shall not be more than as would be
the case for a delay of One Hundred and Eighty (180) days counting from the
midnight of the Thirtieth (30th) day after the Delivery Date at the above
specified rate of reduction.

(c)           However, if the delay in delivery of the VESSEL should continue for a
period of Two Hundred and Ten (210) days from the Delivery Date in Paragraph 1
of Article VII, then in such event, and after such period has expired, the
BUYER may, at its option, cancel this Contract in accordance with the
provisions of Article X hereof, or may, at its absolute discretion, accept
the

 III-1
 

VESSEL
with a total reduction in the Contract Price for delay of One Million Eight
Hundred Thousand United States Dollars (US$1,800,000).

The
BUILDER may, at any time after the expiration of the afore-mentioned Two
Hundred and Ten (210) days of delay in delivery, if the BUYER has not served
notice of cancellation as provided in Article X hereof, demand in writing
that the BUYER shall make an election in which case the BUYER shall, within
Twenty(20) days after such demand is received by the BUYER, notify the BUILDER
of its intention either to cancel this Contract or to consent to the acceptance
of the VESSEL at an agreed future date.

If
the BUYER shall not make an election within Twenty(20) days as provided
hereinabove, the BUYER shall be deemed to have accepted such extension of the
delivery date to the future delivery date indicated by the BUILDER and it being
understood by the parties hereto that if the VESSEL is not delivered by such
future date, the BUYER shall have the same right of cancellation upon the same
terms and conditions as hereinabove provided.

(d)           If the BUYER formally requests by a letter an earlier delivery date, in
such case, if the delivery of the VESSEL is made more than Thirty(30) days
earlier than the Delivery Date, then, in such event, beginning with Thirty
first (31st) day prior to the Delivery Date, the
Contract Price of the VESSEL shall be increased by adding thereto Ten Thousand
United States Dollars (US$10,000) for each full day. (it being understood that
the BUILDER’s acceptance of such request from the BUYER shall be in no way
construed as change of the Delivery Date under this Contract)

(e)           For the purpose of this Article, the delivery of the VESSEL shall be
deemed to be delayed when and if the VESSEL, after taking into account all
postponements of the Delivery Date by reason of permissible delay as defined in
Article VIII and /or by any other reason under this Contract, is not
delivered by the date upon which delivery is required under the terms of this
Contract.

 III-2
 

2.             Speed:

(a)           The Contract Price shall not be affected or changed by reason of the
trial speed, as determined according to the Specifications, being less than the
guarantee speed, if such deficiency is not more than Three-Tenths(3/10) of
One(l) knot.

(b)           However, if such deficiency is more than Three-Tenths(3/10) of One(l)
knot then, the Contract Price shall be decreased by One Hundred Ten Thousand
United States Dollars (US$110,000) for each successive whole One Tenth (1/10)
of a knot in excess of a deficiency of Three Tenths (3/10) of a knot speed
(smaller fractions being disregarded).

If
the deficiency in the speed sea trial is more than One(l) full knot below the
guaranteed speed of the VESSEL, then the BUYER may, at its option, reject the
VESSEL and cancel this Contract in accordance with the provisions of
Article X hereof, or may accept the VESSEL at a reduction in the
Contract Price as above provided for One(l) knot only, that is, at a total
reduction of Seven Hundred Seventy Thousand United States Dollars (US$770,000).

3.             Fuel Consumption:

(a)           The Contract Price shall not be affected or changed in case the fuel
consumption, as determined by the shop trial as specified in the
Specifications, is not more than Five percent (5%) in excess of the guaranteed
fuel consumption specified in Paragraph 2 of Article I.

(b)           However, in the event that the actual fuel consumption at the shop
trial is in excess of Five percent (5%) of the guaranteed fuel consumption, the
Contract Price shall be either be reduced by the sum of Thirty Five Thousand
United States Dollars (US$35,000) for each full gram per kw per hour in excess
of the Five percent(5%) (but disregarding fractions of One(l) gram) of the
guaranteed fuel consumption.

 III-3
 

(c)           If such actual fuel consumption exceeds Eight percent (8%) of the
guaranteed fuel consumption of the VESSEL, the BUYER may, at its option, reject
the VESSEL and cancel this Contract in accordance with the provisions of
Article X hereof, or may accept the VESSEL at a reduction in the Contract
Price for excessive fuel consumption as above specified Eight percent (8%)
only, that is, at a total reduction of One Hundred Seventy Five Thousand United
States Dollars (US$175,000).

4.             Deadweight:

(a)           In the event that the deadweight of the VESSEL as determined in
accordance with the Specifications is less than the guaranteed deadweight as
specified in Paragraph 2 of Article I, the Contract Price shall be reduced
by the sum of One Thousand Five Hundred United States Dollars (US$1500) for
each full metric ton of such deficiency being more than Five Hundred (500)
metric tons (disregarding the fractions of One(l) metric ton).

(b)           In the event of such deficiency in the deadweight of the VESSEL being
One Thousand Two Hundred (1200) metric tons or more, then, the BUYER may, at
its option, reject the VESSEL and cancel this Contract in accordance with the
provisions of Article X hereof or accept the VESSEL at a reduction in the
Contract Price for insufficient deadweight as above provided for One Thousand
Two Hundred (1200) metric tons only, that is, at a total reduction of One
Million Fifty Thousand United States Dollars (US$1,050,000).

5.             Steel Weight Adjustment

The
Contract Price has been calculated on the basis of a net steel weight of
maximum Eight Thousand Seven Hundred Five (8705) metric tons of the hull
(excluding accommodation, the funnel, mid deck stores and outfittings) and
shall be adjusted by adding to the Contract Price the sum of One Thousand Three
Hundred States Dollars (US$ 1300) for each full metric tonne of additional
steel in the net steel weight of the hull of the VESSEL calculated on the basis
of steel drawings as approved by the Classification Society and the BUYER.

 III-4
 

6.             Steel Price Adjustment

The
Contract Price shall be adjusted by adding to or subtracting from (as the case
may be) the Contract Price the BUYER’s share of the Steel Price Adjustment
Amount excluding the Steel Price Allowance (as defined below)

For
this purpose, the following definition shall apply:

(a)           “Steel Price Adjustment Amount” means the amount of the Steel
Adjustment Factor (as defined below) multiplied by Thirteen percent (13%) of
the Contract Price of the Vessel;

(b)           “Steel Adjustment Factor” means the quotient of the average (“Md”) of
MEPS Asian Carbon Steel Hot Rolled Plate Index published by MEPS
(International) Ltd. of the United Kingdom for the three (3) calendar
months prior to the month in which the Steel Price Reference Date (as defined
below) falls, divided by [“Mc”], minus one (1), i.e. [Md / Mc) – 1; (Mc means
three months average of MEPS Asian Carbon Steel Hot Rolled Plate Index as at
the date of signing this Contract.)

(c)           “Steel Price Reference Date” means the date of Keel laying of the
Vessel.

There
shall be no such adjustment of the Contract Price if the Steel Price Adjustment
Amount (as determined pursuant to the provisions set out above) does not exceed
Six Hundred Fifty Thousand United States Dollars (US$650,000) (the “Steel Price
Allowance”), whether such Steel Price Adjustment Amount is a negative sum or a
positive sum.

The
BUYER’s share shall be Fifty per cent (50%) of the amount by which the figure
exceeds Six Hundred Fifty Thousand United States Dollars (US$650,000), whether
a negative or a positive sum.

 III-5
 

7.             Effect of Cancellation:

It
is expressly understood and agreed by the parties that in any case, if the
BUYER cancels this Contract under this Article, the BUYER shall not be entitled
to any liquidated damages or any other recourse unless by means of the
provisions of Article X hereof.

(End of Article)

 III-6

ARTICLE IV - APPROVAL
OF PLANS AND DRAWINGS AND INSPECTION DURING

CONSTRUCTION

1.             Approval of Plans and Drawings:

The
BUILDER shall obtain the approval from the BUYER for the plans and drawings in
accordance with the Specifications.

The
BUILDER shall submit to the BUYER Three (3) copies of each of the plans
and drawings, the list of which shall be mutually agreed upon between the
parties hereto, for its approval.

The
BUYER shall, within Twenty-two (22) calendar days after receipt thereof, return
to the BUILDER One (1) copy of such plans and drawings with the BUYER’S
approval or comments (if any) written thereon.

If
the BUYER shall fail to return the plans and drawings to BUILDER within the
time limit as above provided, the BUILDER shall deem that such plans and
drawings have been approved or confirmed without any comment

In
the event the Classification Society or any Regulatory Body advises the BUILDER
that it has written comments to the plans and drawings or wishes to modify the
plans and drawings, the BUILDER shall notify the BUYER of such developments and
within two (2) working days of receipt of such developments, provide the
BUYER with copies of the comments or requested modifications. The BUYER shall
within five (5) working days after receipt notify the BUILDER whether it
accepts such comments or modifications. If any comments are made or
modifications requested by the Classification Society or by another Regulatory
Body, the BUILDER will make suitable amendments and resubmit these to the BUYER
for approval.

Approval
or non approval of a plan or drawing by the BUYER shall in no way diminish,
affect or impair the obligation, guarantee or undertaking of the BUILDER as
regards the design and construction of the VESSEL and to deliver the same in
accordance with the terms hereof.

 IV-1
 

2.             Appointment of BUYER’s Supervisor:

The
BUYER may send to and maintain at the Shipyard, at the BUYER’s own cost
and expense, one supervisor who shall be duly authorized in writing by the
BUYER (herein called the “Supervisor”) to act on behalf of the BUYER in
connection with the attendance to the tests and inspections relating to the
VESSEL, its machinery, equipment and outfittings, and any other matters for
which he is specifically authorized by the BUYER. The Supervisor may appoint
assistant(s) up to maximum Four (4) persons to attend at the Shipyard to
assist him for the purposes as aforesaid.

In
addition, the BUYER may appoint the ship’s crew to attend to the VESSEL in
good time prior to and during sea trials throughout until delivery of the
VESSEL.

3.             Inspection by the Supervisor:

The
necessary inspections of the VESSEL, its machinery, equipment and outfittings
shall be carried out by the Classification Society, other applicable regulatory
bodies and/or an inspection team of the BUILDER throughout the entire period of
construction in order to ensure that the construction of the VESSEL is duly
performed in accordance with this Contract and the Specifications. The
Supervisor shall have, during construction of the VESSEL, the right to attend
such tests and inspections of the VESSEL, its machinery and equipment within
the premises of either the BUILDER or its subcontractors and shall have the
right to inspect any work in progress or materials utilized in connection with
the construction of the VESSEL, wherever such work is being done or such
materials are stored, Detailed procedures of the inspection and the tests
thereof shall be in accordance with the Specifications.

The
BUILDER shall give a reasonable advance notice to the Supervisor of the date
and place of such tests, trials and inspections, which may be attended by
him, including, when relevant, a description of the test, procedure and level
of performance to be reached in order to comply with the Specifications.
Failure by the Supervisor to be present at such tests, trials and inspections
after due notice to

 IV-2
 

him
as aforesaid shall be deemed to be a waiver of the Supervisor’s right to be
present.

In
case the number of assistants as mentioned hereinabove would not be sufficient
to meet the BUILDER’S schedule of tests, trials and inspection, the
BUILDER shall either reschedule these tests, trials and inspection or
may accept that the BUYER increase the number of assistants as necessary.

Upon
completion of each test, trial or inspection, the BUILDER shall provide the
Supervisor with a copy of the BUILDER’S report relating to that test, trial or
inspection.

If
the Supervisor discovers any construction, material or workmanship, which is
not deemed to conform to the requirements of this Contract and/or the
Specifications, the Supervisor shall promptly give the BUILDER a notice in
writing specifying the alleged non-conformity. Upon receipt of such notice from
the Supervisor, the BUILDER shall correct such non-conformity, if the BUILDER
agrees to his view. Any disagreement shall be resolved in accordance with
Paragraph 1 of Article XII.

If
the Classification Society or the arbitrator enters a determination in favor of
the BUYER, then in such case the BUILDER shall correct such non-conformity, or in
the BUYER’s option the BUILDER shall make fair and reasonable adjustment of the
Contract Price to be mutually agreed between the BUILDER and the BUYER in lieu
of such corrections.

The
attendance or lack of attendance of of the Supervisor or his assistants at any
test or inspection shall, in no way, diminish or affect the liability of the
BUILDER under this Contract.

 IV-3
 

4.             Facilities:

The
BUILDER shall furnish the Supervisor and his assistant(s) with adequate office
space and such other reasonable facilities according to the BUILDER’s practice
at or in the immediate vicinity of the Shipyard as may be necessary to
enable them to effectively
carry out their duties. The BUYER shall pay for all such facilities other than
office space, at the BUILDER’s normal rate of charge.

5.             Liability of BUILDER:

The
Supervisor and his assistant(s) shall at all times be deemed to be the
employees of the BUYER and not of the BUILDER. The BUILDER shall be under no
liability whatsoever to the BUYER, the Supervisor or his assistant(s) for
personal injuries, including death, suffered during the time when he or they
are on the VESSEL, or within the premises of either the BUILDER or its
subcontractors, or are otherwise engaged in and about the construction of the
VESSEL, unless, however, such personal injuries, including death, were caused
by a gross negligence of the BUILDER, or of any of its employees or agents or
subcontractors.

Nor
shall the BUILDER be under any liability whatsoever to the BUYER, the
Supervisor or his assistant(s) for damage to, or loss or destruction of
property in Korea of the BUYER or of the Supervisor or his assistant(s), unless
such damage, loss or destruction were caused by a gross negligence of the
BUILDER or of any of its employees or agents or subcontractors.

6.             Responsibility of BUYER:

The
BUYER shall undertake and assure that the Supervisor shall carry out his duties
hereunder in accordance with the normal shipbuilding practice of the BUILDER
and in such a way so as to avoid any unnecessary increase in building cost,
delay in the construction of the VESSEL, and/or any disturbance in the
construction schedule of the BUILDER.

 IV-4
 

The
BUILDER has the right to request the BUYER to replace the Supervisor who is
deemed unsuitable and unsatisfactory for the proper progress of the VESSEL’s
construction. The BUYER shall investigate the situation by sending its
representative (s) to the Shipyard if necessary, and if the BUYER considers
that such BUILDER’s request is justified, the BUYER shall effect such
replacement as soon as conveniently arrangeable.

Without
effect to the above, the BUYER and the BUILDER shall cooperate fully and use
best efforts to resolve any design, construction difficulties and problems encountered after
signing this Contract.

(End of Article)

 IV-5

ARTICLE V -
MODIFICATIONS, CHANGES AND EXTRAS

1.             Modification of Specifications:

The
Specifications may be modified to a minor extent by written agreement of
the parties hereto, provided that such modifications will not, in the BUILDER’s
reasonable judgment, adversely affect the BUILDER’s planning or program in
relation to the BUILDER’s other commitments, and provided, further, that the
BUYER shall first agree, before such modifications and/or changes are carried
out, to alterations in the Contract Price, the Delivery Date, deadweight, speed
and other terms and conditions of this Contract and Specifications occasioned
by or resulting from such modifications and/or changes within seven
(7) days from the receipt by the BUYER of the BUILDER’s proposal. The BUILDER
has the right to continue construction of the VESSEL on the basis of the
Specifications until agreement as above has been reached but upon receipt by
the BUILDER of a request from the BUYER for a modification the BUILDER shall as
soon as reasonably practical and at the latest within seven (7) days of
the request submit to the BUYER a proposal of adjustment in the Contract Price,
the Delivery Date and any other term of the Contract.

An
agreement to modify this Contract or the Specifications shall be effected by an
exchange of letters signed by the authorized Representative(s) of the parties
or by an Addendum to this Contract and/or the Specifications.

The
BUILDER may also make minor changes to the Specifications if found
necessary to suit the Shipyard’s local conditions and facilities, the
availability of materials and equipment., introduction of improved methods or
otherwise, provided that the BUILDER shall first obtain the BUYER’s approval,
which shall not be unreasonably withheld or delayed.

 V-1
 

2.             Changes in Rules of Classification
Society, Regulations, etc.:

If,
after the date of signing this Contract, any requirements as to the
classification, or as to the rules and regulations to which the
construction of the VESSEL is required to conform, are changed by the
Classification Society or regulatory bodies authorized to make such changes,
the following provisions shall apply unless a waiver of the changed
requirement, rule, regulation or interpretation is obtained pursuant to the
BUYER’s request:

(a)           If the changes are compulsory for the VESSEL, any of the parties
hereto, upon receipt of information from the Classification Society or such
other regulatory bodies, shall promptly transmit the same to the other in
writing, and the BUILDER shall thereupon incorporate such changes into the
construction of the VESSEL, provided that the BUYER shall first have agreed to
adjustments required by the BUILDER in the Contract Price, the Delivery Date,
deadweight, speed and other terms and conditions of this Contract and the
Specifications occasioned by or resulting from such changes within seven
(7) days from the receipt by the BUYER of the BUILDER’s proposal.

(b)           If the changes are not compulsory for the VESSEL, but the BUYER desires
to incorporate any of them into the construction of the VESSEL, the BUYER shall
notify the BUILDER of that intention. The BUILDER may accept such changes,
provided that such changes will not in its reasonable judgment adversely affect
the BUILDER’s planning or program in relation to the BUILDER’s other
commitments, and provided, further, that the BUYER shall first have agreed to
adjustments required by the BUILDER in the Contract Price, the Delivery Date,
deadweight, speed and other terms and conditions of this Contract and the
Specifications occasioned by or resulting from such changes within seven
(7) days from the receipt by the BUYER of the BUILDER’s proposal.

 V-2
 

Agreement
as to any changes under Paragraph 2 of this Article shall be made in the
same manner as provided in Paragraph 1 of this Article for modifications
or changes to the Specifications.

Any
delay in the construction of the VESSEL caused by the BUYER’s delay in making a
decision or agreement outside the time limits set out above shall constitute a
permissible delay under this Contract.

3.             Substitution of Materials:

If
any of the materials or equipment required by the Specifications or otherwise
under this Contract for the construction of the VESSEL are in short supply or
cannot be procured in time to maintain the Delivery Date of the VESSEL or are
unreasonably high in price as compared with prevailing international market
rates, the BUILDER may, provided that the BUYER shall so agree in writing
(which agreement shall not be unreasonably withheld), supply other materials or
equipment of equal quality and effect capable of meeting the requirements of
the Specification and this Contract. Any agreement as to substitution of
materials or equipment shall be effected in the manner as provided in Paragraph
1 of this Article.

(End of Article)

 V-3

ARTICLE VI - TRIALS AND
ACCEPTANCE

1.             Notice:

The
sea trial shall start when the VESSEL is reasonably completed according to the
Specifications.

The
BUILDER shall give the BUYER at least Twenty (20) days estimated prior notice
and Seven (7) days confirming prior notice by telefax of the time and
place of the trial run of the VESSEL, and the BUYER shall promptly acknowledge
receipt of such notice. The BUYER shall be entitled to have its Supervisor and
such assistants of his as may be necessary on board the VESSEL to witness
such trial run. Failure in attendance of the BUYER’s Supervisor at the trial
run of the VESSEL for any reason whatsoever after due notice to the BUYER as
above provided shall be deemed to be a waiver by the BUYER of its right to have
its Supervisor on board the VESSEL at the trial run, and the BUILDER
may conduct the trial run without attendance of the BUYER’s Supervisor
subject always to a representative of the Classification Society being in
attendance throughout, and in such case the BUYER shall be obligated to accept
the VESSEL on the basis of a certificate of the BUILDER and the Classification
Society that the VESSEL, upon its trial run, is found to conform to this
Contract and the Specifications.

2.             Weather Condition:

The
trial run shall be carried out under the weather condition, which is deemed
favorable enough by the judgment of the BUILDER in accordance with the
Specifications. In the event of unfavorable weather on the date specified for
the trial run, the same shall take place on the first available day thereafter
that the weather condition permits. It is agreed that, if during the trial run
of the VESSEL, the weather should suddenly become so unfavorable that orderly
conduct of the trial run can no longer be continued, the trial run shall be
discontinued and postponed until the first favorable day next following, unless
the BUYER shall assent in writing to acceptance of the VESSEL on the basis of
the trial run already made before such discontinuance has occurred.

 VI-1
 

Any
delay of trial run caused by such unfavorable weather condition shall operate
to postpone the Delivery Date by the period of the delay involved and such
delay shall be deemed as permissible delay in the delivery of the VESSEL.

3.             How Conducted:

(a)           The VESSEL shall run the official trial trip in the manner as specified
in the Specifications.

(b)           All expenses in connection with the trial run are to be for account of
the BUILDER and the BUILDER shall provide, at its own expense, the necessary
crew to comply with conditions of safe navigation.

4.             Method of Acceptance or Rejection:

(a)           Upon completion of the trial run, the BUILDER shall give the BUYER a
notice by telefax of completion of the trial run, as and if the BUILDER
considers that the results of trial run indicate conformity of the VESSEL to
this Contract and the Specifications. The BUYER shall, within Five(5) days
after receipt of such notice from the BUILDER, notify the BUILDER by telefax of
its acceptance or rejection of the VESSEL’s conformity to this Contract and the
Specifications.

(b)           However, should the result of the trial run show that the VESSEL, or
any part or equipment thereof, does not conform to the requirements
of this Contract and/or the Specifications, or if the BUILDER is in agreement
to non conformity as specified in the BUYER’s notice of rejection, then, the
BUILDER shall take necessary steps to correct such non-conformity.

Upon
completion of correction of such non-conformity, and re-test or trial if
necessary, the BUILDER shall give the BUYER a notice thereof by telefax.

The
BUYER shall, within Three(3) days after receipt of such notice from the
BUILDER, notify the BUILDER of its acceptance or rejection of the VESSEL.

 VI-2
 

However,
the BUYER shall not be entitled to reject the VESSEL by reason of any minor or
insubstantial defect or non-conformity judged from the viewpoint of the normal
shipbuilding practice but in such case, the BUILDER shall correct and/or remedy
such minor or insubstantial defect or non-conformity as soon as possible during
the Warranty Period.

(c)           In any event that the BUYER rejects the VESSEL, the BUYER shall
indicate in detail in its notice of rejection in what respect the VESSEL, or
any part or equipment thereof does not conform to this Contract
and/or the Specifications.

(d)           In the event that the BUYER fails to notify the BUILDER by telefax of
the acceptance of or the rejection together with the reason therefor of the
VESSEL within the period as provided in the above Sub-Paragraph (a) or
(b), the BUYER shall be deemed to have accepted the VESSEL.

(e)           Any dispute between the BUILDER and the BUYER as to the conformity or
non-conformity of the VESSEL to the requirements of this Contract and/or the
Specifications shall be submitted for final decision in accordance with
Article XII hereof.

5.             Effect of Acceptance:

Acceptance
of the VESSEL as above provided shall be final and binding so far as conformity
of the VESSEL to this Contract and the Specifications is concerned and shall
preclude the BUYER from refusing formal delivery of the VESSEL as hereinafter
provided, if the BUILDER complies with all other procedural requirements for
delivery as provided in Article VII hereof. However, the BUYER’s
acceptance of the VESSEL shall not affect the BUYER’s right in 4.
(b) above or under Article IX hereof.

 VI-3
 

6.             Disposition of Surplus Consumable Stores

Any
fuel oil, fresh water or other consumable stores furnished and paid for by the
BUILDER for trial runs remaining on board the VESSEL in storage tanks, at the
time of acceptance of the VESSEL by the BUYER, shall be bought by the BUYER
from the BUILDER at the BUILDER’s original purchase price for such supply in
Korea and the payment by the BUYER thereof shall be made at the time of
delivery of the VESSEL.

The
BUILDER shall pay the BUYER at the time of delivery of the VESSEL an amount for
the consumed quantity during trial run of any lubricating oil and greases which
were furnished and paid for by the BUYER at the BUYER’s original purchase price
thereof.

(End of Article)

 VI-4

ARTICLE VII - DELIVERY

1.             Time and Place:

The
VESSEL shall be delivered safely afloat by the BUILDER to the BUYER at the
Shipyard on or before 28th of
May, 2008, after completion of satisfactory trials and acceptance by the BUYER
in accordance with the terms of Article VI, except that, in the event of
delays in the construction of the VESSEL or any performance required under this
Contract due to causes which under the terms of this Contract permit
postponement of the date for delivery, the aforementioned date for delivery of
the VESSEL shall be postponed accordingly.

The
aforementioned date, or such later date to which the requirement of delivery is
postponed pursuant to such terms, is herein called the “Delivery Date”.

2.             When and How Effected:

Provided
that the BUILDER and the BUYER shall have fulfilled all of their obligations
stipulated under this Contract, the delivery of the VESSEL shall be effected
forthwith by the concurrent delivery by each of the parties hereto to the other
of the signed PROTOCOL OF DELIVERY AND ACCEPTANCE, acknowledging delivery of
the VESSEL by the BUILDER and acceptance thereof by the BUYER.

3.             Documents to be delivered to BUYER:

Upon
delivery and acceptance of the VESSEL, the BUILDER shall deliver to the BUYER
the following documents, which shall accompany the PROTOCOL OF DELIVERY AND
ACCEPTANCE:

(a)           PROTOCOL OF TRIALS of the VESSEL made pursuant to the Specifications.

(b)           PROTOCOL OF INVENTORY of the equipment of the VESSEL, including spare
parts and the like, as specified in the Specifications.

 VII-1
 

(c)           PROTOCOL OF STORES OF CONSUMABLE NATURE referred to under Paragraph 6
of Article VI hereof.

(d)           PROTOCOL OF DEADWEIGHT DETERMINATION AND INCLINING EXPERIMENT as
stipulated in the Specifications

(e)           ALL CERTIFICATES including the BUILDER’S CERTIFICATE required to be
furnished upon delivery of the VESSEL pursuant to this Contract and the
Specifications.

It
is agreed that if, through no fault on the part of the BUILDER, the
Classification Certificate and/or other certificates are not available at the
time of delivery of the VESSEL, and if the absence thereof does not impede the
BUYER’s full and immediate operation, navigation or the management of the
VESSEL, provisional certificates shall be accepted by the BUYER, provided that
the BUILDER shall furnish the BUYER with the formal certificates as promptly as
possible after such certificates have been issued and in any event not later
than the date on which the validity of the provisional certificates expires.
All certificates whether provisional or final shall be full term certificates
without any recommendations or any qualifications, unless otherwise agreed by
the parties.

Application
and certificate for statutory inspections for the registry of the VESSEL shall
be arranged by the BUYER at its expense.

(f)            DECLARATION OF WARRANTY of the BUILDER that
the VESSEL is delivered to the BUYER free and clear of any liens, charges,
claims, mortgages, or other encumbrances upon the BUYER’s title thereto, and in
particular that the VESSEL is absolutely free of all burdens in the nature of
imposts, taxes or charges imposed by Korean Governmental Authorities, as well
as of all liabilities of the BUILDER to its subcontractors, employees and crew,
and of the liabilities arising from the operation of the VESSEL in trial runs,
or otherwise, prior to delivery.

 VII-2
 

(g)           FINISHED AS BUILT DRAWING AND PLANS and MANUALS pertaining to the
VESSEL as stipulated in the Specifications

(h)           COMMERCIAL INVOICE.

(i)            BILL OF SALE

4.             Tender of VESSEL:

If
the BUYER fails to take delivery of the VESSEL after completion thereof
according to this Contract and the Specifications without any justifiable
reason, the BUILDER shall have the right to tender the VESSEL to the BUYER for
delivery for the purpose of Article XI.I (c). Such tender shall be made by
the BUILDER by a notice to the BUYER stating that the VESSEL is tendered for
delivery pursuant to Article VII. 4 of the Contract.

5.             Title and Risk:

Title
to and risk of loss of the VESSEL shall pass to the BUYER only upon the
delivery and acceptance thereof having been completed as stated above; it being
expressly understood that, until such delivery is effected, title to and risk
of loss of the VESSEL and her equipment shall be in the BUILDER.

6.             Removal of VESSEL:

The
BUYER shall take possession of the VESSEL immediately upon delivery and
acceptance thereof and shall remove the VESSEL from the premises of the
Shipyard within Three(3) days after delivery and acceptance thereof is
effected.

If
the BUYER shall not remove the VESSEL from the premises of the Shipyard within
the aforesaid Three(3) days, in such event, the BUYER shall pay to the
BUILDER the reasonable mooring charges of the VESSEL.

(End of Article)

 VII-3

ARTICLE VIII - DELAYS AND EXTENSION OF TIME FOR
DELIVERY (FORCE MAJEURE)

1.             Causes of Delay (Force Majeure):

If,
at any time either the construction or delivery of the VESSEL or any
performance required hereunder as a prerequisite to the delivery thereof is
delayed by any of the following events; namely war, acts of state or
government, blockade, revolution, insurrections, mobilization, civil commotion,
riots, strikes, sabotage, lockouts, Acts of God or the public enemy, plague or
other epidemics, quarantines, prolonged failure of electric current, freight
embargoes, or defects in major forgings or castings which could not have been
detected by the BUILDER using reasonable care nor caused by the neglect of the
BUILDER or shortage of materials, machinery or equipment or inability to obtain
delivery or delays in delivery of materials, machinery or equipment, due to an
event of the nature as described in this Article affecting such supplier
or subcontractor, provided that at the time of ordering the same could reasonably
be expected by the BUILDER to be delivered in time, or defects in materials,
machinery or equipment which could not have been detected by the BUILDER using
reasonable care, or earthquakes, tidal waves, typhoons, hurricanes, prolonged
or unusually severe weather conditions or delay in the construction of the
BUILDER’s other newbuildings due to any such causes as described in this
Article which in turn delay the construction of the VESSEL in view of the
Shipyard’s overall building programme or the BUILDER’s performance under this
Contract, or by destruction of the premises or works of the BUILDER or its
sub-contractors such as to effect performance hereunder, or of the VESSEL, or
any part thereof, by fire, landslides, flood, lightning, explosion, or other
causes whatsoever beyond the control of the BUILDER, or its sub-contractors, as
the case may be, then, in the event of delays due to the happening of any
of the aforementioned contingencies, the Delivery Date of the VESSEL under this
Contract shall be extended for a period of time by which the overall
construction programme has actually been delayed, the BUILDER being obliged to
reschedule its construction programme wherever possible to minimize any
delay as far as possible.

 VIII-1
 

2.             Notice of Delay:

Within
Twenty (20) days after the date of occurrence of any cause of delay, on account
of which the BUILDER claims that it is entitled under this Contract to a
postponement of the Delivery Date, the BUILDER shall notify the BUYER by
telefax of the date when such cause of delay occurred. Likewise, within Twenty
(20) days after the date of ending of such cause of delay, the BUILDER shall
notify the BUYER by telefax of the date when such cause of delay ended.

The
BUILDER shall also notify the BUYER of the period, by which the Delivery Date
is postponed by reason of such cause of delay, as soon as it may be
determined. If the BUILDER does not give the timely advice as above, the
BUILDER shall lose the right to claim such delays as permissible delay.

Failure
of the BUYER to acknowledge to the BUILDER’s claim for postponement of the
Delivery Date within Seven(7) days after receipt by the BUYER of such
notice of claim shall be deemed to be a waiver by the BUYER of its right to
object to such postponement of the Delivery Date..

3.             Definition of Permissible Delay:

Delays
on account of such causes as specified in Paragraph 1 of this Article and
any other delay of a nature which under the terms of this Contract permits
postponement of the Delivery Date shall be understood to be permissible delays
and are to be distinguished from unauthorized delays on account of which the
Contract Price is subject to adjustment as provided for in Article III
hereof.

4.             Right to Cancel for Excessive Delay:

If
the total accumulated time of all delays claimed by the BUILDER on account of
the causes specified in Paragraph 1 of this Article, excluding other delays of
the nature which under the terms of this Contract permit postponement of the
Delivery Date, amounts to Two Hundred and Ten (210) days or more, then, in

 VIII-2
 

such
event, the BUYER may cancel this Contract in accordance with the
provisions of Article X hereof.

The
BUILDER may, at any time after the accumulated time of the aforementioned
delays justifying cancellation by the BUYER, demand in writing that the BUYER
shall make an election, in which case the BUYER shall, within Fourteen (14)
days after such demand is received by the BUYER, either notify the BUILDER of
its intention to cancel this Contract, or consent to a postponement of the Delivery
Date to an agreed specific future date; it being understood and agreed by the
parties hereto that, if any further delay occurs on account of causes
justifying cancellation as specified in this Article, the BUYER shall have the
same right of cancellation upon the same terms as herein above provided.

(End of Article)

 VIII-3

ARTICLE IX - WARRANTY
OF QUALITY

1.             Guarantee:

The
BUILDER, for the period of Twelve(12) months after delivery of the VESSEL
(hereinafter called “Guarantee Period”), guarantees the VESSEL and her engine,
including all parts and equipment manufactured, furnished or installed by the
BUILDER under this Contract, and including the machinery, equipment and
appurtenances thereof, under the Contract but excluding any item which is
supplied by the BUYER or by any other bodies on behalf of the BUYER, against
all defects discovered within the Guarantee Period which are due to faulty
design, defective material, and/or poor workmanship or negligent or other
improper acts or omissions on the part of the BUILDER or its
subcontractors (hereinafter called the “Defect” or “Defects”) and are not a
result of accident, ordinary wear and tear, misuse, mismanagement, negligent or
other improper acts or omissions or neglect on the part of the BUYER, its
employee or agents.

In
addition to the foregoing, the BUILDER shall assist the BUYER in securing from
the paint manufacturer(s) a guarantee direct to the BUYER for the cargo tank
and seawater ballast coating for a period of twenty-four (24) months in
addition to the BUILDER’S aforementioned twelve (12) months guarantee.

In
the event that longer warranties are available from, third party suppliers of
materials, parts and/or equipment at no additional cost then the BUILDER shall
secure such extended warranties.

If
a design or equipment has been implemented or introduced on a sistership, which
has been acknowledged as a guarantee item, such change shall be also introduced
for the VESSEL, if not yet delivered as far as it is practically possible to
carry out such change before delivery of the VESSEL, or if delivered within the
Guarantee Period.

 IX-1
 

The
BUILDER shall ensure wherever possible that warranties and the like provided by
Suppliers of goods, materials, parts, and equipment, and any Subcontractors who
may be approved, are assignable to the BUYER or its assignee and upon the
BUYER’s request the BUILDER shall assign to the BUYER any such rights as it
may have including any right to pursue any claim under the relevant supply
or sub contract.

2.             Notice of Defects:

The
BUYER shall notify the BUILDER in writing, or by telefax of any defect for
which claim is made under this guarantee, as promptly as possible after
discovery thereof. The BUYER’s notice shall describe in detail the nature,
cause and extent of the Defects.

The
BUILDER shall have no obligation for any Defect discovered prior to the expiry
date of the Guarantee Period, unless notice of such Defect is received by the
BUILDER not later than Ten (10) days after such expiry date.

3.             Remedy of Defects:

(a)           The BUILDER shall remedy, at its expense, any Defect against which the
VESSEL is guaranteed under this Article, by making all necessary repairs or
replacements at the Shipyard.

(b)           However, if it is impracticable to bring the VESSEL to the Shipyard,
the BUYER may cause the necessary repairs or replacements to be made
elsewhere which is deemed suitable for the purpose, provided that, in such
event, the BUILDER may forward or supply replacement parts or materials to
the VESSEL, unless forwarding or supplying thereof the VESSEL would impair or
delay the operation of working schedule of the VESSEL. In the event that
the BUYER proposes to cause the necessary repairs or replacements for the
VESSEL to be made at any other shipyard or works than the Shipyard, the BUYER
shall first, but in all events as soon as possible, give the BUILDER a notice in
writing or by telefax confirmed in writing of

 IX-2
 

the
time and place when and where such repairs will be made, and if the VESSEL is
not thereby delayed, or her operation or working schedule is not thereby
impaired, the BUILDER shall have the right to verify by its own
representative(s) the nature, cause and extent of the Defects complained of.

The
BUILDER shall, in such case, promptly advise the BUYER by telefax after such
examination has been completed, of its acceptance or rejection of the Defects
as ones that are covered by the guarantee herein provided. Upon the BUILDER’S
acceptance of the Defects as justifying remedy under this Article, or upon
award of the arbitration so determining, the BUILDER shall reimburse the BUYER
the documented expenses incurred by the BUYER for such repairs or replacements
but such reimbursement shall not exceed the reasonably estimated cost of
carrying out the warranty work at the Shipyard under the same working
conditions.

The
guarantee works shall be settled regularly during the Guarantee Period and the
actual reimbursement for the guarantee shall be made in a lump sum after the
expiry of the Guarantee Period.

(c)           In any case, the VESSEL shall be taken, at the BUYER’S cost and
responsibility, to the place elected, ready in all respects for such repairs or
replacement it being understood that the engineering, calculations,
dismantling, staging, cleaning, tooling, handling, testing, the supply of
parts, dockage if needed, provided such works are directly related to those
repairs and/or replacements, shall be considered as part of the repair or
replacement process to be carried out by the BUILDER.

In
the event mat it is necessary for the BUILDER to forward a replacement for a
defective part under this guarantee, replacement parts shall be delivered
to the BUYER, onboard the VESSEL, at the BUYER’S designated port by air, sea,
road or rail freight at the BUILDER’S expense to such location as is directed
by the BUYER, the method of transportation being determined by the urgency with
which the replacement is required.

 IX-3
 

The
BUILDER reserves the option to retrieve, at the BUILDER’S cost, any of the
replaced equipment/parts in case defects are remedied in accordance with the
provisions in this Article.

(d)           Any dispute under this Article shall be referred to arbitration in
accordance with the provisions of Article XII hereof.

4.             Extent of BUILDER’S Responsibility:

(a)           The BUILDER shall have no responsibility or liability for any other
defect whatsoever in the VESSEL than the Defects specified in Paragraph 1 of
this Article. Nor the BUILDER shall in any circumstance be responsible or
liable for any consequential or special loss, damage or expense including but
not limited to loss of time, loss of profit of earning or demurrage directly or
indirectly occasioned to the BUYER by reason of the Defects specified in
Paragraph 1 of this Article or due to repairs or other works done to the
VESSEL to remedy such Defects.

(b)           The BUILDER shall not be responsible for any defect in any part of
the VESSEL which may, subsequently to delivery of the VESSEL, have been
replaced or repaired in any way by any other contractor, or for any defect
which have been caused or aggravated by omission or improper use and
maintenance of the VESSEL on the part of the BUYER, its servants or agents
or by ordinary wear and tear or by any other beyond control of the BUILDER.

(c)           The guarantee contained as hereinabove in this Article replaces
and excludes any other liability, guarantee, warranty and/or condition imposed
or implied by the law, customary, statutory or otherwise, by reason of the
construction and sale of the VESSEL by the BUILDER for and to the BUYER.

 IX-4
 

5.             Guarantee Engineer:

The
BUILDER shall have the right to appoint a Guarantee Engineer to serve on the
VESSEL as its representative for a period of Three(3) months from the date
the VESSEL is delivered. However, if the BUYER and the BUILDER shall deem it
necessary to keep the Guarantee Engineer on the VESSEL for a longer period,
then he shall remain on board the VESSEL after the said Three(3) months,
but not longer than Six(6) months from the delivery of the VESSEL.

The
BUYER, and its employees, shall give such Guarantee Engineer full cooperation
in carrying out his duties as the representative of the BUILDER on board the
VESSEL.

The
BUYER shall accord the Guarantee Engineer treatment comparable to the VESSEL’s
Chief Engineer, and shall provide board and lodging at no cost to the BUILDER
and/or the Guarantee Engineer.

While
the Guarantee Engineer is on board the VESSEL, the BUYER shall pay to the
BUILDER the sum of Five Thousand United States Dollars (US$5,000.-) per month
as a compensation for a part of cost and charges to be borne by the
BUILDER in connection with Guarantee Engineer and also shall pay the expenses
of his repatriation to Seoul, Korea by air upon termination of his service, the
expenses of his communication with the BUILDER incurred in performing his
duties and expenses, if any, of his medical and hospital care in the VESSEL’s
hospital.

Pertaining
to the detailed particulars of this Paragraph, an agreement will be made
according to this effect between the parties hereto upon delivery of the
VESSEL.

(End of Article)

 IX-5

ARTICLE X -
CANCELLATION BY BUYER

1.             BUILDER’s Default and Effect of Default

The
BUYER shall be entitled but not bound to declare the BUILDER in default of this
CONTRACT in any one of the following cases

(a)           the BUILDER is declared bankrupt by order of any court of competent
jurisdiction, or files a petition of cessation of payments;

(b)           the appointment of a receiver over all or a substantial part of
the BUILDER’S assets;

(c)           an effective resolution is passed for the BUILDER’S voluntary winding
up (except for the purposes of reorganization, merger or amalgamation) or
compulsory liquidation;

(d)           the conclusion of a scheme of arrangement or other voluntary
composition between the BUILDER and his creditors;

(e)           the VESSEL becomes, before delivery, an actual or constructive or
compromised or agreed or arranged total loss and when the BUILDER is not
covered by the insurance policy as per Article XVII;

(f)            the BUILDER, without prior written consent of
the BUYER, removes the VESSEL from the Shipyard or assigns, sub-lets or
subcontracts performance of the whole or part of its obligations, except
as provided for in this Contract or as agreed by BUYER; or

(g)           the BUILDER fails to tender the VESSEL upon completion of the VESSEL.

If
the BUILDER shall be in any default as provided for herein, the BUYER
may at its option, cancel this CONTRACT.

 X-1
 

2              Notice:

The
payments made by the BUYER prior to delivery of the VESSEL shall be in the
nature of advances to the BUILDER, and in the event that the VESSEL after sea
trial is rejected by the BUYER or the Contract is cancelled by the BUYER in
accordance with the terms of this Contract under and pursuant to any of the
provisions of this Contract specifically permitting the BUYER to do so, then
the BUYER shall notify the BUILDER in writing or by telefax confirmed in
writing, and such cancellation shall be effective as of the date when notice
thereof is received by the BUILDER.

3.             Refund by BUILDER:

In
case the BUILDER receives the notice stipulated in Paragraph 2 of this Article,
the BUILDER shall promptly refund to the BUYER the full amount of all sums paid
by the BUYER to the BUILDER on account of the VESSEL together with interest
thereon, unless the BUILDER disputes same and proceeds to arbitration under the
provisions of Article XII hereof.

In
such event, the BUILDER shall pay the BUYER interest at the rate of Seven
percent (7%) per annum on the amount required herein to be refunded to the
BUYER, computed from the dates following on which such sums were paid by the
BUYER to the BUILDER to the date of remittance by transfer of such refund to
the BUYER by the BUILDER., provided, however, that if the said cancellation by
the BUYER is made under the provisions of Paragraph 4 of Article VIII
hereof, then in such event the BUILDER shall not be required to pay any
interest.

As
security for refund of installments prior to delivery of the VESSEL, the
BUILDER shall furnish the BUYER within Ninety (90) calendar days after
signature of this Contract with a letter of guarantee covering the amount of such
pre-delivery installments and issued by the BUILDER’s Bank in favour of the
BUYER. Such letter of guarantee shall have substantially the same form and
substance as Exhibit ”A” annexed hereto.

 X-2
 

4.             Discharge of Obligations:

Upon
such refund by the BUILDER to the BUYER, all obligations, duties and
liabilities of each of the parties hereto to the other under this Contract
shall be forthwith completely discharged.

(End of Article)

 X-3

ARTICLE XI - BUYER’s
DEFAULT

1.             Definition of BUYER’s Default:

The
BUYER shall be deemed to be in default of its performance of obligations under
this Contract in the following cases:

(a)           If the Second or Third Installment is not paid by the BUYER to the BUILDER
within Three (3) banking days after such installment becomes due and
payable as provided in Article II hereof (Five (5) banking days in
case of the First Installment);

or

(b)           If the Fourth Installment is not deposited by the BUYER at the BUILDER’s
bank at least Three (3) business days prior to the anticipated delivery
date of the VESSEL as provided In Article II hereof;

or

(c)           If the BUYER, when the VESSEL is duly tendered for delivery by the
BUILDER in accordance with the provisions of this Contract, fails to accept the
VESSEL within Five (5) days from the tendered date without any specific
and valid ground thereof under this Contract;

2.             Effect of Default on or before Delivery of
VESSEL:

(a)           Should the BUYER make default in payment of any installment of the
Contract Price on or before delivery of the VESSEL, the BUYER shall pay the
installment(s) in default plus accrued interest thereon at the rate of Seven
percent(7%) per annum computed from the due date of such installment to the
date when the BUILDER receives the payment, and, for the purpose of Paragraph 1
of Article VII hereof the Delivery Date of the VESSEL shall be
automatically extended by the period of continuance of such default by the
BUYER. In any event of default by the BUYER, the BUYER shall also pay all
charges and expenses incurred by the BUILDER in consequence of such default.

 XI-1
 

(b)           If any default by the BUYER continues for a period of Twenty (20) days,
the BUILDER may, at its option, cancel this Contract by giving notice of such
effect to the BUYER by telefax confirmed in writing.

Upon
dispatch by the BUILDER of such notice of cancellation, this Contract shall be
forthwith cancelled and terminated. In the event of such cancellation of this
Contract, the BUILDER shall be entitled to retain any installment or
installments already paid by the BUYER to the BUILDER on account of this
Contract and the BUYER’s Supplies, if any.

3.             Disposal of VESSEL by BUILDER upon BUYER’s
Default:

(a)           In the event that this Contract is cancelled by the BUILDER under the
provisions of Paragraph 2(b) of this Article, the BUILDER may, at its sole
discretion, either complete the VESSEL and sell the same, or sell the VESSEL in
its incomplete state, free of any right or claim of the BUYER. Such sale of the
VESSEL by the BUILDER shall be either by public auction or private contract in
good faith at the BUILDER’s sole discretion and on such terms and conditions as
the BUILDER shall deem fit.

(b)           In the event of such sale
of the VESSEL, the amount of the sale received by the BUILDER shall be applied
firstly to all expenses attending such sale or otherwise incurred by the
BUILDER as a result of the BUYER’s default, secondly to the payment of all
costs and expenses of construction of the VESSEL incurred by the BUILDER less BUYER’s
Supplies and the installments already paid by the BUYER and the compensation to
the BUILDER for profit due to cancellation of this Contract, and finally to the
repayment to the BUYER without interest, if any balance is obtained.

(c)           If the proceeds of sale are insufficient to pay such total costs and
loss of profit as aforesaid, the BUYER shall promptly pay the deficiency to the
BUILDER upon request.

(End of Article)

 XI-2

ARTICLE XII -
ARBITRATION

1.             Decision by the Classification Society:

If
any dispute arises between the parties hereto in regard to the design and/or
construction of the VESSEL, its machinery and equipment, and/or in respect of
the materials and/or workmanship thereof and/or thereon, and/or in respect of
interpretations of this Contract or the Specifications, the parties may by
mutual agreement refer the dispute to the Classification Society or to such
other expert as may be mutually agreed between the parties hereto, and
whose decision shall be final, conclusive and binding upon the parties hereto.

2.             Proceedings of Arbitration:

In
the event that the parties hereto do not agree to settle a dispute according to
Paragraph 1 of this Article and/or in the event of any other dispute of
any kind whatsoever between the parties and relating to this Contract or its
cancellation or any stipulation herein, such dispute shall be submitted to
arbitration in London. Each party shall appoint an arbitrator and a third by the
two arbitrators so appointed.

If
the two arbitrators are unable to agree upon an third arbitrator within
Twenty(20) days after appointment of the second arbitrator, then either of the
two arbitrators or the parties may apply to the President for the tune being
of the London Maritime Arbitrators Association to appoint the third arbitrator,
and the three arbitrators shall constitute the board of arbitration.

Such
arbitration shall be in accordance with and subject to the provisions of the
Arbitration Act 1996 of the United Kingdom or any statutory modification or
re-enactment thereof for the time being in force.

Either
party may demand arbitration of any such dispute by giving notice to the
other party. Any demand for arbitration by either of the parties hereto shall
state the name of the arbitrator appointed by such party and shall also
identify the dispute for which such party is demanding arbitration.

Within
Fourteen (14) days after receipt of notice of such demand for arbitration,

 XII-1
 

the
other party shall in turn appoint a second arbitrator and give notice in
writing of such appointment to the party demanding arbitration. If a party
fails to appoint its arbitrator as aforementioned the party requesting
arbitration may give a second notice in writing to the other party
requiring them to appoint their arbitrator. If they fails to do so within seven
(7) days following receipt of the second notice the party failing to
appoint an arbitrator shall be deemed to have accepted and appointed, as its
own arbitrator, the arbitrator appointed by the party demanding arbitration and
the arbitration shall proceed before this sole arbitrator who alone in such
event shall constitute the Arbitration Board.

The
award of the arbitrators shall be final and binding on both parties.

3.             Work to Continue during Arbitration:

Work
under this Contract shall continue during the arbitration of any dispute,
unless otherwise mutually agreed between the BUYER and the BUILDER.

4.             Expenses:

The
Arbitration Board shall determine which party shall bear the expenses of the
arbitration or the portion of such expenses which each party shall bear.

5.             Entry in Court:

In
case of failure by either party to respect the award of the arbitration, the
judgment may be entered in any proper court having jurisdiction thereof.

6.             Alteration of Delivery Date:

In
the event of reference to arbitration of any dispute arising out of matters
occurring prior to delivery of the VESSEL, the award may include any
postponement of the Delivery Date, which the Arbitration Board may deem
appropriate.

(End of Article)

 XII-2

ARTICLE XIII -
SUCCESSOR AND ASSIGNS

Neither
of the parties hereto shall assign this Contract to any other individual or
company unless prior consent of the other party is given in writing. Should
circumstances permit with or without alteration of the terms and conditions of
this Contract, such consent shall not be unreasonably withheld by either party.

Notwithstanding
the foregoing the BUYER shall be entitled to assign this Contract without the
need to obtain the consent of the BUILDER either pursuant to an assignment by
way of security to a bank or financial institution providing credit
accommodation to the BUYER in connection with the VESSEL or to any other
company associated with the BUYER (being a company under common ownership,
management or control of the BUYER or the beneficial owners of the BUYER).

In
the event of any assignment pursuant to the terms of this Contract, the
assignee shall succeed to all of the rights and obligations of the assignor
under this Contract and the assignor shall remain responsible for the
fulfillment of this Contract.

In
the event of the assignment from the BUYER to any other individual or company
(other than to a bank or financial institution by way of security as aforesaid)
the BUILDER shall be entitled to request a Performance Guarantee from the BUYER
having same form and contents as Exhibit ”B” annexed hereto.

(End of Article)

 XIII-1

ARTICLE XIV - TAXES AND
DUTIES

1.             Taxes and Duties Incurred in Korea:

The
BUILDER shall bear and pay all taxes, duties, stamps and fees incurred in Korea
in connection with execution and/or performance of this Contract as the
BUILDER, except for any taxes and duties imposed in Korea upon the BUYER’s
Supplies.

2.             Taxes and Duties Incurred outside Korea:

The
BUYER shall bear and pay all taxes, duties, stamps and fees incurred outside
Korea in connection with execution and/or performance of this Contract as the
BUYER, except for taxes and duties imposed upon those items to be procured by
the BUILDER for construction of the VESSEL.

(End of Article)

 XIV-1

ARTICLE XV - PATENTS,
TRADEMARKS, COPYRIGHTS, ETC.

1.             Patents, Trademarks and Copyrights:

Machinery
and equipment of the VESSEL may bear the patent number trademarks or trade
names of the manufacturers. The BUILDER shall defend without any limitation of
time and hold harmless the BUYER from patent liability or claims of patent
infringement of any nature or kind, including costs and expenses for, or on
account of any patented or patentable invention made or used in the performance
of this Contract and also including costs and expenses of litigation, if any.

Nothing
contained herein shall be construed as transferring any patent or trademark
rights or copyrights in equipment covered by this Contract, and all such rights
are hereby expressly reserved to the true and lawful owners thereof. The
BUILDER’s warranty hereunder does not extend to the BUYER’s Supplies.

2.             General Plans, Specifications and Working
Drawings:

The
BUILDER retains all rights with respect to the Specifications, and plans and
working drawings, technical descriptions, calculations, test results and other
data, information and documents concerning the design and construction of the
VESSEL and the BUYER undertakes therefore not to disclose the same or divulge
any information contained therein to any third parties, without the prior
written consent of the BUILDER, except where it is necessary for usual
operation, repair and maintenance of the VESSEL or for the sale of the VESSEL
or for raising finance or for enforcing its rights under this CONTRACT.

(End of Article)

 XV-1

ARTICLE XVI - BUYER’s
SUPPLIES

1.             Responsibility of BUYER:

(a)           The BUYER shall, at its own risk, cost and expense, supply and deliver
to the BUILDER all of the items to be furnished by the BUYER as specified in
the Specifications (herein called the BUYER’s Supplies) at warehouse or other
storage of the Shipyard in the proper condition ready for installation in or on
the VESSEL, in accordance with the time schedule designated and advised by
the BUILDER to the BUYER.

(b)           In order to facilitate installation by the BUILDER of the BUYER’s
Supplies in or on the VESSEL, the BUYER shall furmish the BUILDER with
necessary specifications, plans, drawings, instruction books, manuals, test
reports and certificates required by the rules and regulations of the
Specifications. If so requested by the BUILDER, the BUYER shall, without any
charge to the BUILDER, cause the representatives of the manufacturers of the
BUYER’s Supplies to assist the BUILDER in installation thereof in or on the
VESSEL and/or to carry out installation thereof by themselves or to make
necessary adjustments at the Shipyard.

(c)           Any and all of the BUYER’s Supplies shall be subject to the BUILDER’s
reasonable right of rejection, as and if they are found to be unsuitable or in
improper condition for installation.

(d)           Should the BUYER fail to deliver any of the BUYER’s Supplies within the
time designated, the Delivery Date shall be extended for a period, which
actually caused the delay in the delivery of the VESSEL.

(e)           If delay in delivery of any of the BUYER’s Supplies exceeds thirty (30)
days, then, the BUILDER shall be entitled to proceed with construction of the
VESSEL without installation thereof in or on the VESSEL as hereinabove
provided, and the BUYER shall accept and take delivery of the VESSEL so

 XVI-1
 

constructed,
unless such delay is caused by Force Majeure. in which case the provision
Paragraph l(d) of this Article shall apply.

2.             Responsibility of BUILDER:

The
BUILDER shall be responsible for storing and handling with reasonable care of
the BUYER’s Supplies after delivery thereof at the Shipyard, and shall, at its
own cost and expense, install them in or on the VESSEL, unless otherwise
provided herein or agreed by the parties hereto, provided, always, that the
BUILDER shall not be responsible for quality, efficiency and/or performance of
any of the BUYER’s Supplies.

(End of Article)

 XVI-2

ARTICLE XVII -
INSURANCE

1.             Extent of Insurance Coverage

From
the time of launching until delivery of the VESSEL, The BUILDER shall, at its
own cost and expense, insure the VESSEL and all machinery and equipment,
appurtenances and outfits, including the BUYER’S Supplies, built into or
installed in or upon the VESSEL, against all risks under the “Institute Causes
for BUILDER’s Risk”, with first class insurance company or underwriters in
Korea on terms corresponding to “Institute Clause of London Underwriters for
Builder’s Risks”. The amount of such insurance coverage shall, up to the date
of delivery of the VESSEL, not be less than the Contract Price plus the value
of the BUYER’s Supplies in the custody of the Shipyard.

2.             Application of the Recovered Amounts

In
the event that the VESSEL shall be damaged from any insured cause at any time
before delivery of the VESSEL, and in the further event that such damage shall
not constitute an actual or constructive total loss of the VESSEL, the amount
received in respect of the insurance shall be applied by the BUILDER in repair
of such damage, satisfactory to the Classification Society, and the BUYER shall
accept the VESSEL under this Contract if completed in accordance with this
Contract and the Specifications, however, subject to the extension of delivery
time under Article VIII hereof (except in case of negligence of the
BUILDER)

Should
the VESSEL from any cause become an actual or constructive total loss, the
BUILDER shall either:

(a)           proceed in accordance with the terms of this Contract, in which case
the amount received in respect of the insurance shall be applied to the
construction and repair of damage of the VESSEL, provided the parties hereto
shall have first agreed thereto in writing and to such reasonable extension of
delivery time as may be necessary for the completion of such
reconstruction and repair; or

 XVII-1
 

(b)           refund promptly to the BUYER the full amount of all sums paid by the
BUYER to the BUILDER as installments in advance of delivery of the VESSEL
without any interest, and deliver to the BUYER all BUYER’S Supplies (or the
insurance proceeds paid with respect thereto), in which case this Contract
shall be deemed to be automatically terminated and all right, duties,
liabilities and obligations of each of the parties to the other shall forthwith
cease and terminate.

In
the event that no agreement on the above (a) is reached within Two
(2) months, then above (b) shall apply.

3.             Termination of Builder’s Obligation to Insure

The
BUILDER shall be under no obligation to insure the VESSEL hereunder after
delivery of the VESSEL.

(End of Article)

 XVII-2

ARTICLE XVIII - NOTICE

1.             Address:

Any
and all notices and communications in connection with this Contract shall be
addressed as follows:

To
the BUYER:

Stolt-Nielsen Transportation Group B.V.

Westerlaan 5

3016 GK Rotterdam

Harbour 190

The
Netherlands

Telefax No. : + 31 10 264 4404

Telephone No.:+ 31 10 299 6666

Email: shina-projects@sntg.com

Contact:
Mr. Jens Lassen

To
the BUILDER:

ShinA Shipbuilding Co., Ltd.

227, Donam-Dong, Tongyeong, Gyeongnam, Korea

Telefax No. :+82-55-649-2114

Telephone No. :+82-55-640-3300/3301

Email: sales@shinaship.co.kr

Contact:
Mr. S.P. Lee

2.             Language:

Any
and all notices and communications in connection with this Contract shall be
written in the English language.

 XVIII-1
 

3.             Effective Date of Notice:

The
notice in connection with this Contract shall become effective from the date
when such notice is received by the BUYER or by the BUILDER except otherwise
described in the Contract,

(End of Article)

 XVIII-2

ARTICLE XIX - EFFECTIVE
DATE OF CONTRACT

This
Contract shall become effective upon signing by the parties hereto.

(End of Article)

 XIX-1

ARTICLE XX
-
INTERPRETATION

1.             Laws Applicable:

The
parties hereto agree that the validity and interpretation of this Contract and
of each Article and part thereof shall be governed by the laws of
England.

2.             Discrepancies:

All
general language or requirements embodied in the Specifications are intended to
amplify, explain and implement the requirements of this Contract. However, in
the event that any language or requirements so embodied permit of an
interpretation inconsistent with any provisions of this Contract, then, in each
and every such event, the applicable provisions of this Contract shall prevail
and govern. In the event of conflict between the Specifications and Plans, the
Specifications shall prevail and govern.

3.             Entire Agreement:

This
Contract contains the entire agreement and understanding between the parties
hereto and supersedes all prior negotiations, representations, undertaking and
agreements on any subject matter of this Contract.

4.             Amendments and Supplements:

Any
supplement, memorandum of understanding or amendment, whatsoever form it
may be relating to this Contract, to be made and signed among parties
hereof after signing this Contract, shall become an integral part of this
Contract and shall be predominant over the respective corresponding
Article and/or Paragraph of this Contract.

(End of Article)

 XX-1

IN
WITNESS WHEREOF, the parties hereto have caused this Contract to be duly
executed on the day and year first above written.

	
  BUYER:

  	
   

  	
  BUILDER:

  
	
  For
  and on behalf of

  	
   

  	
  For
  and on behalf of

  
	
  Stolt-Nielsen
  Transportation Group B.V.

  	
   

  	
  ShinA
  Shipbuilding Co., Ltd

  

 

	
  /s/
  Otto Fritzner

  	
   

  	
  /s/
  Su-Ean Yoo

  
	
  By:

  	
  Mr. Otto
  Fritzner

  	
   

  	
  By:
  

  	
  Su-Ean
  Yoo

  
	
  Title:

  	
  C.E.O

  	
  Title:

  	
  President &
  C.E.O

  
					

 

	
  WITNESS:

  	
   

  
	
  For
  and on behalf of 

  	
   

  
	
  Barry
  Rogliano Salles

  	
   

  

 

	
  /s/
  Francois Cadiou

  	
   

  	
   

  
	
  By:

  	
  Mr. Francois
  Cadiou

  	
   

  	
   

  	
   

  
	
  Title:

  	
  Partner

  	
   

  	
   

  
					

 

 E-1

EXHIBIT ”A”

LETTER OF REFUNDMENT GUARANTEE NO.

Gentlemen :

We hereby open our irrevocable letter of guarantee
No.            in
favour of
                               (hereinafter
called the “BUYER”) for account of Shina Shipbuilding Co., Ltd. (hereinafter
called the “BUILDER”) as follows in consideration of the BUYER entering into
the shipbuilding contract dated
                 (hereinafter
called the “Contract”) made by and among the BUYER and the BUILDER for the
construction of one(l) single screw diesel driven DWT 44,000 IMO II/III Product
/ Chemical Tanker having BUILDER’S Hull
No. S         (hereinafter
called the “VESSEL”) and of making arrangements to pay the first installment.

If in connection with the terms of the Contract the
BUYER shall become entitled to a refund of the advance payment made to the
BUILDER prior to the delivery of the VESSEL, we hereby irrevocably guarantee
the repayment of the same to the BUYER immediately on demand, US$ [amount
of the First Installment],  together
with interest thereon at the rate of Seven per cent (7%) per annum from the
date following the date of receipt by the BUILDER to the date of remittance by
telegraphic transfer of such refund.

The amount of this guarantee will be automatically
increased, not more than Two (2) times, upon BUILDER’S receipt of the
subsequent installments: each time by the amount of installment of USD [amount
of the Second Installment]  USD
[amount
of the Third Installment],  respectively
plus interest thereon as provided in the Contract., but in any eventuality the
amount of this guarantee shall not exceed the total sum of
US$              [amount
of all the pre-delivery Installments]  (Say U.S.
Dollars                   only)
plus interest thereon at the rate of Seven per cent (7%) per annum from the
date following the date of BUILDER’S receipt of each installment to the date of
remittance by telegraphic transfer of the refund.

 A-1
 

In case any refund is made to you by the BUILDER or
by us under this guarantee, our liability hereunder shall be automatically
reduced by the amount of such refund.

The BUYER may assign its rights under the
letter of guarantee on the same terms and to the same person to which it is
permitted to assign its rights under the Contract.

In the event of cancellation of the Contract being
based on delays due to force majeure, no interest shall be paid as required by
Article X of the Contract.

This letter of guarantee is available against BUYER’S
simple receipt and signed statement certifying that BUYER’S demand for refund
has been made in conformity with Article X of the Contract and the BUILDER
has failed to make the refund within Thirty (30) days after your demand. Refund
shall be made to you by telegraphic transfer in United States Dollars.

This letter of guarantee shall expire and become
null and void upon receipt by the BUYER of the sum guaranteed hereby or upon
acceptance by the BUYER of the delivery of the VESSEL in accordance with the
terms of the Contract and, in either case, this letter of guarantee shall be
returned to us. This guarantee is valid from the date of this letter of
guarantee until such time as the VESSEL is delivered by the BUILDER to the
BUYER in accordance with the terms of the Contract.

Notwithstanding the provisions hereinabove, in case
we receive notification from you or the BUILDER confirmed by an Arbitrator
stating that your claim to cancel the Contract or. your claim for refundment
thereunder has been disputed and referred to Arbitration in accordance with the
provisions of the Contract, the period of validity of this guarantee shall be
extended until Thirty (30) days after the final award shall be published in the
Arbitration in favour of the BUYER. In such case, this guarantee shall not be
available unless and until such acknowledged copy of the final award in the
Arbitration justifying your claim is presented to us.

 A-2
 

Notice of claim hereunder may be made the
service on our office [details]

This guarantee shall be governed by the Laws of
England.

Very truly yours,

 A-3

EXHIBIT ”B”

Shina
Shipbuilding Co., Ltd.

227,
Donam-dong, Tongyeong,

Gyeongnam, Korea 650-150

Date:                  ,
200

PERFORMANCE GUARANTEE

In consideration of the assignment of the
shipbuilding contract dated (hereinafter called the “Contract”) by us
to                having
your Hull
No. S                        (hereinafter
called the “VESSEL”) which provides among other things for payment of the
Contract Price amounting
to                  United
States Dollars (US$              )
(subject to adjustment as per the terms of the Contract);

We, the undersigned, hereby irrevocably and
unconditionally guarantee to you, your successors, and assigns the due and
faithful performance by the BUYER of its all liabilities and responsibilities
under the Contract and any supplement, amendment, change or modification
hereafter made thereto, including but not limited to, due and prompt payment of
the Contract Price by the BUYER to you, your successors, and assigns under the
Contract and any supplement, amendment, change or modification as aforesaid
(hereby expressly waiving notice of any such supplement, amendment, change or
modification as may be agreed to by the BUYER and confirming that this
guarantee shall be fully applicable to the Contract as so supplemented, amended,
changed or modified).

This Performance Guarantee shall be governed by the
laws of England.

GUARANTOR:

BY:

TITLE:

WITNESS:

 B-1

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