Document:

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                                                                    EXHIBIT 10.1

                              MANAGEMENT AGREEMENT

THIS AGREEMENT is made this 28th day of February, 2005

BY AND BETWEEN;

(1) QUINTANA MANAGEMENT LLC incorporated on February 18th, 2005 of Ajeltake
Island, Majuro, Marshall Islands, duly represented in the presents by Mr
Stamatis Molaris, of Kyprou Street and 13 Pandoras Street, Glyfada 166 74,
Greece (hereinafter called "QUINTANA")

(2) BLOSSOM MARITIME CORPORATION incorporated on February 8th, 1985 of 80 Broad
street,]Monrovia, Liberia having an established office in Greece, under the
provisions of Law 89, in Akti Miaouli 33, Piraeus, duly represented in the
presents by MR CHRISIOS BACHOS of 5 Alsous Street, Ekali, Greece, (hereinafter
called "BLOSSOM")

WHEREAS:

      (A) Quintana will establish an office in Greece under the provisions of
      Law 89 as amended in order to represent, manage and commercially operate
      oceangoing vessels, which will be owned by separate corporate entities
      (hereinafter the "Owners" and each an "Owner"),

      (B) Blossom is a company which has an extensive experience in the
      technical management of vessels and has the capability to provide
      technical and crewing services to vessels represented by Quintana.

      (C) It has been agreed between Quintana and Blossom that for the period
      and subject to the terms and conditions hereinafter expressed and
      contained, Blossom shall be and is hereby appointed to act as technical
      manager to provide services to the vessels in consideration of the
      management fees as specified hereunder.

NOW THEREFORE, IT IS HEREBY MUTUALLY AGREED BY AND BETWEEN THE PARTIES HERETO AS
FOLLOWS:

      1. Quintana appoints Blossom and Blossom hereby agrees to act as technical
      manager of those vessels represented by Quintana that Quintana elects to
      place under the technical management of Blossom and Blossom approves
      (hereinafter called the "Vessels" and each a "Vessel") and in that
      capacity and subject as hereinafter provided, Blossom shall have and has
      been entrusted with the technical management of the Vessels.

      2. For each Vessel, Quintana shall cause each Owner to enter with Blossom
      into a Bimco Shipman 98 Contract ("the Shipman Contract") starting from
      the date the respective MOA is signed, with the agreed terms as per the
      attached draft in Appendix I hereto, and Blossom shall act and do all
      and/or any of the following acts or things in the name and/or on behalf of
      Quintana and/or the Owners in all parts of the world directly or through
      its agents and such technical management shall include inter alia:

      (a) The appointment of agents for the Vessel in all parts of the world;

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      (b) The manning of the Vessel and engaging master, officers and crew
      hereof in accordance with the requirements of the Vessel and according to
      the conditions currently applying to sea-going personnel;

      (c) Subject to Quintana's approval, carrying out extensive repairs of
      damages caused to any Vessel by accidents, wear and tear or by advent of
      risks and repairs relating to the periodical surveys of the Vessel for the
      maintenance of her classification and also arranging and supervising
      Vessel's dry-dockings. Blossom is authorised to carry out minor repair
      when same are needed, or emergency repairs and other remedial actions
      required by applicable rules with prior notice to Quintana, with Quintana
      arranging timely advance funding from the vessels' Owners to cover the
      costs in all circumstances above.

      (d) Maintaining at the expense of Quintana and in full understanding with
      Quintana all equipment necessary for the full and efficient operation of
      the Vessels;

      (e) Protecting Quintana's and the Owners' interests with respect to all
      liens, penalties and claims involving third parties including master,
      officers and crew of the Vessels, but being under no obligation to post
      security, counter-indemnities or equivalent with the purpose of releasing
      any vessel from any attachment or lien, nor under any obligation to pay or
      settle by its own means any penalties or claims arising in spite of
      Blossom's protective actions;

      (f) Subject to Quintana's approval, the insuring and effecting insurance
      covers on the Vessels, and the entering of the Vessels in a Protection and
      Indemnity Association as well as Defense Association. Also to effect Hull
      and Machinery sad War Risks insurance for the Vessels, under the terms and
      conditions agreed between Quintana and Blossom on behalf of Owners.

3. Quintana shall cause that all monies necessarily expended by Blossom in the
fulfillment of any of its obligations under this agreement in respect of the
maintenance and operation of the Vessels save such expenses as are referred to
in Clause No.9 hereof shall be reimbursed upon Blossom's first application
through Quintana and shall cause for advances to be paid to Blossom on account
of reasonable estimates for funds required as these may be submitted from time
to time by Blossom, followed by the prompt settlement of the final balances,
once the final amounts are ascertained.

4. To contest, and subject to Quintana's approval, to adjust, compromise or
settle any claims made against any Vessel, and to refer disputes to arbitration
on such terms and in such manner as Blossom and Quintana shall think fit and
advisable,

5. Blossom will not do any act or voluntarily permit or suffer any act to be
done whereby any insurance placed on or in respect of the Vessel shall or may be
suspended, impaired or defeated.

6. Blossom shall maintain detailed financial records relating to the operation
of the Vessels. The above records shall be open to inspection at any time by
Quintana or its duly accredited representatives.

                                       2
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Furthermore, Blossom shall, upon the request of Quintana and at Quintana's
expense, prepare and submit to Quintana, annual financial statements within
ninety (90) days from the close of the fiscal year for each Vessel, showing in
detail the results of the operation of the Vessel. Quintana may at its will and
expense appoint auditors to check the financial statements issued by Blossom and
Blossom is obliged to avail to Quintana all records of the Vessels and any other
information documents or vouchers.

7. Blossom shall take any such additional action as Quintana may from time to
time prescribe, and shall fulfill any obligation of Quintana in respect of the
Vessels under the terms and conditions and exceptions of any covering
charterparty or otherwise to facilitate the operation and maintenance of the
Vessel. Any funding related to these requirements to be dealt with as per clause
3 hereinabove.

8. Blossom shall receive as remuneration for its services under this agreement a
fee amounting to:

      a) management fees of US$350 per Vessel per day for each of the first four
      (4) Vessels, which will be raised to US$400 per Vessel per day for all
      vessels following the acquisition of the fifth(5) vessel, which shall be
      payable monthly in advance.

      b) for pre-purchase review and/or inspection of class records for any
      vessel requested by Quintana, US$100, plus fees and disbursements of third
      parties.

      c) for pre-purchase physical inspection of any vessel required by
      Quintana, US$200 plus fees and disbursements of third parties such as
      subcontracted surveyors.

      d) for DPA fees for auditing ISM/ISPS no more than US$120 per day.

      e) should Quintana request Blossom additionally either to review items
      under 8.b or attend to 8.c then Blossom shall receive an additional
      (euro)500 per day calculated pro rata.

9. Blossom shall at its own expense provide all necessary offices, pay for all
stationery, printing, postages, domestic telephone and all other usual office
expenses incurred by it as Manager in or about the business of the Management of
the Vessel. Foreign telephones, telegrams, telexes, cables and wireless messages
as well as travel expenses for Blossom's personnel and superintendents directly
incurred in connection with the operation, maintenance and repair of the Vessels
shall be for Owners' account and billed to the cost of operation including
superintendents' fees.

10. It is expressly stipulated that Blossom has not and will not for the
duration of the present Agreement contribute in any way into the commercial and
financial considerations of the respective Owners neither into any
representations regarding the freight market, appraisals, projections nor
generally any financial or other parameters relied upon by the Owners and/or
Quintana, to purchase or not purchase the Vessels. Blossom has not and will not
make any of the above, nor make recommendations, and therefore shall bear no
responsibility whatsoever for commercial and financial outcomes, beyond
providing a quality technical management service for the smooth running of the
Vessels.

11. Blossom has no involvement in the capital raising and/or borrowing, and
consequently will not give any corporate guarantee, nor will its principals give
any personal guarantees.

                                       3
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12. Commencement of the Agreement. The cooperation and relationship between
Quintana and Blossom shall commence on the date hereof. The appointment of
Blossom as technical manager of a Vessel, and the calculation of the respective
fees, shall be deemed to have commenced as from the date of signing of the
respective MOA and Shipman Contract. All Shipman Contracts shall be under and
subject to the existence and validity of the present Agreement.

13. If Blossom shall by any act of omission be in breach of a serious obligation
under this Agreement or any Shipman Contract, Quintana may terminate this
Agreement forthwith and by giving Notice thereof to Blossom, without being
liable to pay any compensation to Blossom. Also this contract is terminated if
Blossom is or becomes blacklisted by any State in relation to vessels managed by
it or goes into bankruptcy whether compulsory or voluntary or enters into any
agreement or makes any composition with its creditors without Quintana being
liable to pay any compensation to Blossom by reason of such termination, but
this right to terminate this agreement shall be in addition to and without
prejudice to any rights which Quintana may have against Blossom in law or in
equity. Subject as aforesaid, this Agreement shall remain in force from the date
hereof for twelve (12) months renewable for a same period latest six (6) months
prior to expiration of the current period or until all Vessels are sold or
otherwise disposed of or lost, whichever the earliest. The stipulations of this
Clause 13 apply mutatis mutandis in case where Quintana is in breach in respect
of its obligations towards Blossom.

14. Quintana shall have the option to cancel the present Agreement by giving a
minimum six (6) months notice to Blossom. In such case the notice shall cover
all Shipman Contracts in relation to the Vessels. In such case Quintana shall
cover any direct costs incurred by Blossom in relation to modifications to
Blossom's premises in order to accommodate any additional personnel hired by
Blossom in order to better serve the technical management of the Vessels.
Quintana shall also cover the severance pay of all such additional personnel
unless this personnel waives this right by reason of accepting to be taken
over/employed either by Quintana directly or under a different company under the
control of or subject to an agreement with Quintana.

15. Notices

Every notice, request, demand or other communication under the present Agreement
or, unless otherwise provided therein, any of the Shipman Contracts shall:

      (a) be in writing delivered personally or sent by telex or fax;

      (b) be sent:

            (i)   if to be sent to Quintana or any Owner,

             c/O QUINTANA MANAGEMENT LLC,
             Kyprou Street and 13 Pandoras Street,
             166 74 Glyfada, Greece,
             Fax No. : +30 210
             Attention: Mr. Stamatis Molaris

            (ii)  if to be sent to Blossom, to

             BLOSSOM MARITIME CORPORATION
             33 Akti Miaouli
             185 35 Piraeus, Greece
             Fax No.: +30 210
             Attention : Mr. George Pandelis Lemos

                                       4
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      or to such other person, address, telex or fax number as is notified by
      one party to the other party or, as the case may be, parties to this
      Agreement and the Shipman Contacts.

16. CONFIDENTIALITY

Each of the parties hereto agree and undertake to keep confidential any
documentation and any confidential information concerning the business, affairs,
directors or employees of the other which comes into its possession during this
Agreement and not to use any such documentation, information for any purpose
other than for which it was provided.

17. This Agreement shall be deemed to be a contract according to Greek law and
shall in all respects be construed and interpreted and be enforceable according
to Greek law.

18. In case any dispute of difference shall arise between Quintana and Blossom
in connection with the interpretation and fulfillment of this contract, such
dispute or difference shall be referred to two arbitrators in Piraeus one to be
appointed by Quintana and one by Blossom respectively and in case of
disagreement between said two arbitrators said disputes shall be referred to an
umpire to be appointed by the two arbitrators so chosen.

19. This Contract cannot be assigned to any other party without the written
approval of either party to this Agreement.

20. In the event of there being any conflict between this Agreement on the one
hand and any Shipman Contract on the other hand, this Agreement shall prevail.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement the day and
year first above written.

SIGNED by                                          )
/s/ STAMATIS V. MOLARIS                            )
----------------------------
the duly authorised attorney                       )
for and on behalf of                               )
QUINTANA MANAGEMENT LLC                            )
In the presence of: [ILLEGIBLE]                    )
[ILLEGIBLE]

SIGNED by                                          )
/s/ CHCISTOS BACHOS                                )
-----------------------------
the duly authorised attorney                       )
for and on behalf of                               )
BLOSSOM MARITIME CORPORATION                       )
In the presence of: [ILLEGIBLE]                    )

                                       5
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                                   APPENDIX I

                       STANDARD SHIP MANAGEMENT AGREEMENT
                                  "SHIPMAN 98"

                                       6<PAGE>

                                                                    EXHIBIT 10.2

                                                                   ALLEN & OVERY

                        ALLEN & OVERY LLP

                        AGREEMENT

                        US$262,456,000
                        CREDIT FACILITY

                        For

                        QUINTANA MARITIME LIMITED

                        with

                        QUINTANA MARITIME INVESTORS LLC
                        QUINTANA MANAGEMENT, LLC
                        KING COAL SHIPCO LLC
                        FEARLESS SHIPCO LLC
                        COAL AGE SHIPCO LLC
                        IRON MAN SHIPCO LLC
                        LINDA LEAH SHIPCO LLC
                        BARBARA SHIPCO LLC
                        COAL GLORY SHIPCO LLC
                        COAL PRIDE SHIPCO LLC
                        as Guarantors

                        with

                        CITIBANK, N.A.
                        as Original Lender

                        Arranged by

                        CITIGROUP GLOBAL MARKETS LIMITED

                        with

                        CITIBANK INTERNATIONAL PLC
                        as Facility Agent

                        and

                        CITICORP TRUSTEE COMPANY LIMITED
                        as Security Trustee

                                   April, 2005

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                                    CONTENTS

<TABLE>
<CAPTION>
CLAUSE                                                                               PAGE
<S>                                                                                  <C>
1.    Interpretation.............................................................      1
2.    Facility...................................................................     24
3.    Conditions Precedent.......................................................     25
4.    Utilisation................................................................     26
5.    Repayment..................................................................     27
6.    Prepayment and Cancellation................................................     27
7.    Interest...................................................................     32
8.    Terms......................................................................     33
9.    Market Disruption..........................................................     34
10.   Taxes......................................................................     35
11.   Increased Costs............................................................     37
12.   Reserve, Charter and Operating Accounts....................................     38
13.   Payments...................................................................     40
14.   Guarantee and Indemnity....................................................     42
15.   Representations............................................................     45
16.   Information Covenants......................................................     50
17.   Financial Covenants........................................................     52
18.   General Covenants..........................................................     56
19.   Valuation..................................................................     71
20.   Default....................................................................     72
21.   Security...................................................................     76
22.   The Administrative Parties.................................................     79
23.   Evidence and Calculations..................................................     85
24.   Fees.......................................................................     86
25.   Indemnities and Break Costs................................................     86
26.   Expenses...................................................................     89
27.   Waiver of Consequential Damages............................................     89
28.   Changes to Tranche A and Tranche B.........................................     90
29.   Amendments and Waivers.....................................................     91
30.   Changes to the Parties.....................................................     93
31.   Disclosure of Information..................................................     96
32.   Set-Off....................................................................     96
33.   Pro Rata Sharing...........................................................     96
34.   Severability...............................................................     97
35.   Counterparts...............................................................     98
36.   Notices....................................................................     98
37.   Language...................................................................    100
38.   Governing Law..............................................................    100
39.   Enforcement................................................................    100
</TABLE>

                                                                   29 April 2005

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<TABLE>
<CAPTION>
                                                                                     PAGE
<S>                                                                                  <C>
SCHEDULE

1.    Original Parties...........................................................    102
      Part 1    The Owners and the Vessels.......................................    102
      Part 2    Original Lenders.................................................    103
2.    Conditions Precedent.......................................................    104
      Part 1    Initial Conditions Precedent.....................................    104
      Part 2    Delivery Conditions Precedent....................................    107
      Part 3    Conditions Subsequent............................................    110
3.    Request....................................................................    111
      Part 1    Form of Request..................................................    111
      Part 2    Payment Advice...................................................    112
4.    Calculation of the Mandatory Cost..........................................    113
5.    Form of Transfer Certificate...............................................    115
6.    Repayment Schedule.........................................................    117
      Part 1    Tranche A........................................................    117
      Part 2    Tranche B........................................................    118
7.    Compliance Certificate (Borrower)..........................................    120
8.    Standing Payment Instructions..............................................    122
9.    Predicted Charter Rates....................................................    123

Signatories......................................................................    124

APPENDIX

1.    Form of General Assignment.................................................    128
2.    Form of Junior General Assignment..........................................    129
3.    Form of Reserve Account Charge.............................................    130
4.    Form of Junior Reserve Account Charge......................................    131
5.    Form of Mortgage...........................................................    132
6.    Form of Junior Mortgage....................................................    133
7.    Form of Operating Account Charge...........................................    134
8.    Form of Junior Operating Account Charge....................................    135
9.    Form of Managers Undertaking...............................................    136
10.   Form of Swap Agreement Assignment..........................................    137
11.   form of Vessel Management Agreement Assignment.............................    138
12.   Form of Charter Accounts Charge............................................    139
13.   Form of Junior Charter Accounts Charge.....................................    140
</TABLE>

                                                                   29 April 2005

<PAGE>

THIS AGREEMENT is dated April, 2005

BETWEEN:

(1)   QUINTANA MARITIME LIMITED, a corporation incorporated according to the
      laws of the Republic of the Marshall Islands with its registered office at
      Ajeltake Island, Ajeltake Road, Majuro, Republic of the Marshall Islands,
      MH 96960 (the BORROWER);

(2)   THE COMPANIES listed in Part 1 of Schedule 1, each of which is a limited
      liability company formed according to the law of the country indicated
      against its name in Part 1 of Schedule 1, with its registered office at
      Ajeltake Island, Ajeltake Road, Majuro, Republic of the Marshall Islands,
      MH 96960 (each an OWNER and together the OWNERS);

(3)   QUINTANA MARITIME INVESTORS LLC, a limited liability company formed
      according to the laws of the Republic of the Marshall Islands with its
      registered office at Ajeltake Island, Ajeltake Road, Majuro, Republic of
      the Marshall Islands, MH 96960 (QUINTANA);

(4)   QUINTANA MANAGEMENT, LLC, a limited liability company formed according to
      the laws of the Republic of the Marshall Islands with its registered
      office at Ajeltake Island, Ajeltake Road, Majuro, Republic of the Marshall
      Islands, MH 96960 (QUINTANA MANAGEMENT and, together with the Owners and
      Quintana, the GUARANTORS);

(5)   CITIBANK, N.A. as original lender (the ORIGINAL LENDER);

(6)   CITIGROUP GLOBAL MARKETS LIMITED as mandated lead arranger (the ARRANGER);

(7)   CITIBANK INTERNATIONAL PLC as administrative agent (the FACILITY AGENT);
      and

(8)   CITICORP TRUSTEE COMPANY LIMITED as security trustee for (i) the Tranche A
      Lenders (as defined herein) in relation to the Tranche A Loans (as defined
      herein), and (ii) as security trustee for the Tranche B Lenders (as
      defined herein) and Swap Bank (as defined herein) in relation to the
      Tranche B Loans (as defined herein) and the Swap Agreements (as defined
      herein) (the SECURITY TRUSTEE).

IT IS AGREED as follows:

1.    INTERPRETATION

1.1   DEFINITIONS

      In this Agreement:

      ACCOUNTS means together the Reserve Account , the Operating Account and
      each of the Charter Accounts.

      ACCOUNT BANK means, in respect of the Reserve Account, Citibank N.A,
      London branch and in respect of the Operating Account and each of the
      Charter Accounts, Citibank International plc, Greece.

      ADMINISTRATIVE PARTY means any of the Arranger, the Facility Agent or the
      Security Trustee.

                                       1
<PAGE>

      AFFILIATE means a Subsidiary or a Holding Company of a person or any other
      Subsidiary of that Holding Company.

      AGREEMENT means this credit agreement, including any Schedules or
      appendices hereto, as amended from time to time.

      AMORTISATION COMMENCEMENT DATE means 30th December, 2005.

      APPLICABLE LAW means any or all applicable law (whether civil, criminal or
      administrative), common law, statute, statutory instrument, treaty,
      convention, regulation, directive, by-law, demand, decree, ordinance,
      injunction, resolution, order, judgment, rule, permit, licence or
      restriction (in each case having the force of law) and codes of practice
      or conduct, circulars and guidance notes generally accepted and applied by
      the global shipping industry, in each case of any government,
      quasi-government, supranational, federal, state or local government,
      statutory or regulatory body, court, agency or association relating to all
      laws, rules, directives and regulations, national or international, public
      or private in any applicable jurisdiction from time to time.

      APPROVED VALUER means any of H. Clarksons & Company Limited, Fearnleys
      Ltd., R.S. Platou Shipbrokers a.s., Simpson Spence & Young or such other
      independent reputable shipbroker nominated by the Borrower and approved by
      the Facility Agent (acting on the instructions of the Majority Lenders)
      from time to time.

      ARRANGER shall have the meaning given to it in the Preamble.

      AVAILABILITY PERIOD means the period from and including the date of this
      Agreement to and including the earlier of (i) 30th September, 2005 and
      (ii) the Delivery Date in respect of Vessel 8.

      AVAILABLE CASH means, at any time, the aggregate of Consolidated Cash and
      Cash Equivalents (as such term is defined in Clause 17.1) (including but
      not limited to sums standing to the credit of the Reserve Account and the
      Operating Account) less (i) sums needed to comply with the Minimum
      Liquidity covenant contained in Clause 17.4 hereof, (ii) any amounts in
      respect of Repayment Instalments on any Loan due at that time (together
      with any interest or fees also due at such time in respect of such
      instalments), (iii) Operating Expenses which are due and payable within
      thirty (30) days after the date of calculation and (iv) one half (during
      the Primary Period) or as the case may be one quarter (after the Primary
      Period) of the annual dividends permitted in accordance with the
      provisions of Clause 18.31.

      BORROWER shall have the meaning given to it in the Preamble.

      BORROWER'S ACCOUNT means such account as the Borrower may designate from
      time to time.

      BREAK COSTS means the amount (if any) which a Lender is entitled to
      receive under this Agreement as compensation if any part of a Loan or
      overdue amount is prepaid other than on the last day of a Term for such
      Loan or overdue amount, or, as the case may be, the amount (if any) which
      any Swap Bank is entitled to receive under this Agreement as compensation
      if any Swap Agreement is terminated early, each as determined pursuant to
      Clause 25.3 hereof.

      BUSINESS DAY means a day (other than a Saturday or a Sunday) on which
      banks are open for general business in London, England and New York,
      United States of America.

                                       2
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      CHANGE OF CONTROL means the occurrence of any of the following:

      (a)   prior to the occurrence of an IPO,

            (i)   the Ultimate Shareholders cease beneficially and legally to
                  own and control, directly or indirectly, at least fifty-one
                  (51) per cent. of the issued and outstanding shares of each
                  class of equity interests in the Borrower entitled (without
                  regard to the occurrence of any contingency) to vote for the
                  election of a majority of the members of the board of
                  directors or similar governing body of the Borrower;

            (ii)  the acquisition, directly or indirectly, and whether on one
                  occasion or through one transaction or a series of occasions
                  or transactions, by any person or group (within the meaning of
                  Section 13(d)(3) of the Exchange Act ) other than the Ultimate
                  Shareholders of beneficial ownership of more than thirty five
                  (35) per cent. of the aggregate outstanding voting power of
                  the equity interests in the Borrower; or

            (iii) during any period of two consecutive years, individuals who at
                  the beginning of such period constituted the Board of
                  Directors of the Borrower (together with any new directors
                  whose election by such Board of Directors or whose nomination
                  for election by the shareholders of the Borrower was approved
                  by a vote of at least a majority of the directors of the
                  Borrower then still in office who were either directors at the
                  beginning of such period, or whose election or nomination for
                  election was previously approved) cease for any reason to
                  constitute a majority of the Board of Directors of the
                  Borrower;

      (b)   after the occurrence of an IPO,

            (i)   the acquisition, directly or indirectly, by any person or
                  group (within the meaning of Section 13(d)(3) of the Exchange
                  Act) other than the Ultimate Shareholders of beneficial
                  ownership of more than thirty five (35) per cent. of the
                  aggregate outstanding voting power of the equity interests of
                  the Borrower; or

            (ii)  during any period of two consecutive years, individuals who at
                  the beginning of such period constituted the Board of
                  Directors of the Borrower (together with any new directors
                  whose election by such Board of Directors or whose nomination
                  for election by the shareholders of the Borrower was approved
                  by a vote of at least a majority of the directors of the
                  Borrower then still in office who were either directors at the
                  beginning of such period, or whose election or nomination for
                  election was previously approved) cease for any reason to
                  constitute a majority of the Board of Directors of the
                  Borrower.

      CHARTER ACCOUNTS means each of the eight (8) bank accounts to be opened by
      each of the Owners with the relevant Account Bank and designated (1) "King
      Coal Shipco LLC", account number 0/444064/005 IBAN GR62 0840 0020 0000
      0044 4064 005 , (2) "Fearless Shipco LLC", account number 0/444065/001
      IBAN GR39 0840 0020 0000 0044 4065 001, (3) "Coal Age Shipco LLC", account
      number Account No.0/444066/008 IBAN GR10 0840 0020 0000 0044 4066 008, (4)
      "Iron Man Shipco LLC", 0/444063/009 IBAN GR85 0840 0020 0000 0044 4063
      009, (5) "Linda Leah Shipco LLC", account number 0/444068/019 IBAN GR33
      0840 0020 0000 0044 4068 019, (6) "Barbara Shipco LLC", account number
      Account No.0/444069/007 IBAN GR32 0840 0020 0000 0044 4069 007, (7) "Coal
      Glory Shipco LLC", account number 0/444067/004 IBAN GR84 0840 0020 0000
      0044 4067004 and (8) "Coal Pride Shipco LLC", account number 0/444070/005
      IBAN GR52 0840 0020 0000 0044 4070 005.

                                       3
<PAGE>

      CHARTER ACCOUNTS CHARGE means the charge to be granted by each of the
      Owners in favour of the Security Trustee (and to be held by the Security
      Trustee on behalf of itself and the Tranche A Lenders) in the form
      attached at Appendix 12, in respect of all monies standing to the credit
      from time to time of each of the Charter Accounts, together with any and
      all notices and acknowledgements entered into in connection therewith.

      CHARTER SHORTFALL PAYMENT shall have the meaning given to it in Clause
      6.3(d) (Mandatory Prepayment).

      CHARTERER means any company to which any of the Owners charters any of the
      Vessels from time to time in accordance with the provisions of Clauses
      18.22 and 18.23.

      CODE means the Internal Revenue Code of 1986 of the United States of
      America, as amended from time to time, and the regulations promulgated and
      rulings issued thereunder.

      COMBINATION NOTICE shall have the meaning given to it in Clause 28.1
      (Combination Notice)

      COMMITMENT means:

      (a)   for an Original Lender, the amount set opposite its name in Part 2
            of Schedule 1 (Original Parties) under the heading COMMITMENTS and
            the amount of any other commitment to advance funds under this
            Agreement, it acquires; and

      (b)   for any other Lender, the amount of any commitment to advance funds
            under this Agreement, it acquires,

      to the extent not cancelled, transferred or reduced under this Agreement.

      COMPLIANCE CERTIFICATE means, in the case of the Borrower, the form of
      certificate attached at Schedule 7.

      CONSOLIDATED CASH AND CASH EQUIVALENTS shall have the meaning given to it
      in Clause 17.1 (Financial Covenants).

      CONSOLIDATED EBITDA shall have the meaning given to it in Clause 17.1
      (Financial Covenants).

      CONSOLIDATED INTEREST COVERAGE RATIO shall have the meaning given to it in
      Clause 17.1 (Financial Covenants).

      CONSOLIDATED NET WORTH shall have the meaning given to it in Clause 17.1
      (Financial Covenants).

      CONSOLIDATED TOTAL CAPITALISATION shall have the meaning given to it in
      Clause 17.1 (Financial Covenants).

      CONSOLIDATED TOTAL INDEBTEDNESS shall have the meaning given to it in
      Clause 17.1 (Financial Covenants).

      DEFAULT means:

      (a)   an Event of Default; or

                                       4
<PAGE>

      (b)   an event which would be (with the expiry of a grace period, the
            giving of notice or the making of any determination under the
            Finance Documents or any combination of them) an Event of Default.

      DELIVERY DATE means, in respect of a Vessel, the Business Day upon which
      the actual delivery of that Vessel to the relevant Owner under the terms
      of the relevant Memorandum of Agreement takes place.

      DOLLARS or US$ means the lawful currency for the time being of the United
      States of America.

      DRAWING means, in respect of a Loan under the Facility, the amount of the
      advance made by the Lenders.

      EARNINGS means, in respect of a Vessel, all present and future moneys and
      claims which are earned by or become payable to or for the account of the
      relevant Owner in connection with the operation or ownership of that
      Vessel and including but not limited to:

      (a)   freights, passage and hire moneys (howsoever earned);

      (b)   remuneration for salvage and towage services;

      (c)   demurrage and detention moneys; or

      (d)   all moneys and claims in respect of the requisition for hire of that
            Vessel.

      EARNINGS TRANSFER DATE shall have the meaning given to it in Clause
      12.3(a) (Transfers to Reserve Account).

      ENVIRONMENT means:

      (a)   any land including, without limitation, surface land and sub-surface
            strata, sea bed or river bed under any water (as referred to below)
            and any natural or man-made structures;

      (b)   water including, without limitation, coastal and inland waters,
            surface waters, ground waters and water in drains and sewers; and

      (c)   air including, without limitation, air within buildings and other
            natural or man-made structures above or below ground.

      ENVIRONMENTAL AFFILIATE means the Borrower, any Owner or the Manager
      together with their respective employees and subcontractors.

      ENVIRONMENTAL APPROVALS means any permit, licence, approval, ruling,
      variance, exemption or other authorisation required under applicable
      Environmental Laws.

      ENVIRONMENTAL CLAIM means any claim by any person or persons or any
      governmental, judicial or regulatory authority which arises out of any
      breach, contravention or violation of Environmental Law or of the
      existence of any liability or potential liability arising from such
      breach, contravention or violation or the presence of Hazardous Material
      in contravention of Environmental Laws. In this context, CLAIM means a
      claim for damages, compensation, fines, penalties or any other payment of
      any kind whether or not similar to the foregoing; an order or direction to
      take, or not to take, certain action or to desist from

                                       5
<PAGE>

      or suspend certain action by any governmental, judicial or regulatory
      authority, and any form of enforcement or regulatory action.

      ENVIRONMENTAL LAWS means any or all Applicable Law relating to or
      concerning:

      (a)   pollution or contamination of the Environment, any ecological system
            or any living organisms which inhabit the Environment or any
            ecological system;

      (b)   the generation, manufacture, processing, distribution, use
            (including abuse), treatment, storage, disposal, transport or
            handling of Hazardous Materials; and

      (c)   the emission, leak, release, spill or discharge into the Environment
            of noise, vibration, dust, fumes, gas, odours, smoke, steam
            effluvia, heat, light, radiation (of any kind), infection,
            electricity or any Hazardous Material and any matter or thing
            capable of constituting a nuisance or an actionable tort or breach
            of statutory duty of any kind in respect of such matters,

      including, without limitation, the following laws of the United States of
      America: the Comprehensive Environmental Response, Compensation and
      Liability Act of 1980, as amended, the Hazardous Materials Transportation
      Act, as amended, the Oil Pollution Act of 1990, as amended, the Resource
      Conservation and Recovery Act, as amended, and the Toxic Substances
      Control Act, as amended, together, in each case, with the regulations
      promulgated and the guidance issued pursuant thereto.

      EQUITY CLAW AGREEMENT means a letter from the Ultimate Shareholders
      confirming their agreement on the terms set forth therein, amongst other
      things, to the terms of Clause 6.3 (Mandatory prepayment - additional
      circumstances) and Clause 28.2(d) (Effect of Combination Notice).

      EQUITY PERIOD shall have the meaning given to it in Clause 6.3(c)
      (Mandatory Prepayment).

      EQUITY PAYMENT shall have the meaning given to it in Clause 6.3(c)
      (Mandatory Prepayment).

      ERISA means the Employee Retirement Income Security Act of 1974 of the
      United States of America, as amended from time to time, and the
      regulations promulgated and rulings issued thereunder.

      ERISA AFFILIATE means each person (as defined in Section 3(9) of ERISA)
      which, together with the Obligors, would be deemed to be a "single
      employer" within the meaning of Section 414(b), (c), (m) or (o) of the
      Code.

      EVENT OF DEFAULT means an event specified as such in Clause 20.

      EVENT OF ILLEGALITY shall have the meaning given to it in Clause 6.1(a)
      (Mandatory Prepayment).

      EXCESS RISKS means, in respect of a Vessel:

      (a)   the proportion of claims for general average, salvage and salvage
            charges which are not recoverable as a result of the value at which
            that Vessel is assessed for the purpose of such claims exceeding her
            hull and machinery insured value; and

      (b)   collision liabilities not recoverable in full under the hull and
            machinery insurance by reason of those liabilities exceeding such
            proportion of the insured value of that Vessel as is covered by the
            hull and machinery insurance.

                                       6
<PAGE>

      EXCHANGE ACT means the Securities Exchange Act of 1934 of the United
      States of America, as amended from time to time, and the regulations
      promulgated and rulings issued thereunder.

      EXISTING LENDER shall have the meaning given to it in Clause 30.2.

      FACILITY means the credit facility made available under this Agreement.

      FACILITY AGENT shall have the meaning given to it in the Preamble.

      FACILITY OFFICE means the office(s) notified by a Lender to the Facility
      Agent:

      (a)   on or before the date it becomes a Lender; or

      (b)   by not less than five (5) Business Days' notice,

      as the office(s) through which it will perform its obligations under this
      Agreement.

      FEE LETTERS means any letters entered into by reference to this Agreement
      between one or more Administrative Party and the Borrower setting out the
      amount of certain fees payable in connection with this Agreement.

      FINAL MATURITY DATE means the date falling six (6) years and three (3)
      months from the date of this Agreement.

      FINANCE DOCUMENT means:

      (a)   this Agreement;

      (b)   a Security Agreement;

      (c)   the Equity Claw Agreement;

      (d)   the Personal Guarantee

      (e)   the Fee Letters;

      (f)   any Swap Agreement;

      (g)   the Manager's Undertaking;

      (h)   the Subordination Deed;

      (i)   a Transfer Certificate; and

      (j)   any other document designated as such by the Facility Agent and the
            Borrower.

      FINANCE PARTY means a Lender or an Administrative Party or any Swap Bank.

      FINANCIAL INDEBTEDNESS means any indebtedness for or in respect of:

      (a)   moneys borrowed;

                                       7
<PAGE>

      (b)   any acceptance credit;

      (c)   any bond, note, debenture, loan stock or other similar instrument;

      (d)   any redeemable preference share;

      (e)   any agreement treated as a finance or capital lease in accordance
            with GAAP;

      (f)   any derivative transaction entered into in connection with
            protection against or benefit from fluctuation in any rate or price
            (and, when calculating the value of any derivative transaction, only
            the marked to market value shall be taken into account);

      (g)   the acquisition cost of any asset to the extent payable after its
            acquisition or possession by the party liable where the deferred
            payment is arranged primarily as a method of raising finance or
            financing the acquisition of that asset;

      (h)   any other transaction (including any forward sale or purchase
            agreement) which has the commercial effect of a borrowing;

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

      (j)   any guarantee and indemnity or similar assurance against financial
            loss of any indebtedness of any other person which falls within any
            of paragraphs (a) to (i) above.

      FOREIGN PENSION PLAN means any plan, fund (including, without limitation,
      any superannuation fund) or similar program established or maintained
      outside the United States of America by any Obligor primarily for the
      benefit of its employees resident outside the United States of America,
      and which plan is not subject to ERISA or the Code.

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

      GENERAL ASSIGNMENT means, in respect of a Vessel, the assignment of the
      Earnings, any Time Charter and the Obligatory Insurances to be granted in
      favour of the Security Trustee by the relevant Owner (and held by the
      Security Trustee on behalf of itself and the Tranche A Lenders) in the
      form attached at Appendix 1 together with any and all notices and
      acknowledgements entered into in connection therewith.

      GROUP means the Borrower, the Guarantors and any Subsidiaries of any of
      them.

      GUARANTOR shall have the meaning given to it in the Preamble.

      HAZARDOUS MATERIAL means any element or substance, whether natural or
      artificial, and whether consisting of gas, liquid, solid or vapour,
      whether on its own or in any combination with any other element or
      substance, which is listed, identified, defined or determined by any
      Environmental Law or other Applicable Law to be, to have been, or to be
      capable of being or becoming harmful to mankind or any living organism or
      damaging to the Environment, including, without limitation, oil (as
      defined in the United States Comprehensive Environmental Response,
      Compensation and Liability Act of 1980, as amended).

                                       8
<PAGE>

      HOLDING COMPANY:

      (a)   in relation to a company incorporated in England and Wales, has the
            meaning given in Section 736 Companies Act 1985; and

      (b)   in relation to a company or other person incorporated or formed
            outside England and Wales, means a company or other person of which
            such company is the Subsidiary.

      INCREASED COST means:

      (a)   an additional or increased cost;

      (b)   a reduction in the rate of return under a Finance Document or on its
            overall capital; or

      (c)   a reduction of an amount due and payable under any Finance Document,

      which is incurred or suffered by a Finance Party or any of its Affiliates
      but only to the extent attributable to that Finance Party having entered
      into any Finance Document or funding or performing its obligations under
      any Finance Document.

      INDEMNIFIED PARTIES shall have the meaning given to it in Clause 25.2(c)
      (Other indemnities)

      INSURERS means the underwriters or insurance companies with whom any
      Obligatory Insurances are effected and the managers of any protection and
      indemnity or war risks association in which any of the Vessels may at any
      time be entered.

      IPO means an initial public offering of the shares of the Borrower.

      ISM CODE means the International Safety Management Code (including the
      guidelines on its implementation), adopted by the International Maritime
      Organization Assembly as Resolutions A.741(18) and A.788(19), as the same
      may have been or may be amended or supplemented from time to time. The
      terms SAFETY MANAGEMENT SYSTEM, SAFETY MANAGEMENT CERTIFICATE, DOCUMENT OF
      COMPLIANCE and MAJOR NON-CONFORMITY shall have the same meanings as are
      given to them in the ISM Code.

      ISPS CODE means the International Ship and Port Facility Security Code
      adopted by the International Maritime Organization Assembly as the same
      may have been or may be amended or supplemented from time to time.

      JUNIOR CHARTER ACCOUNTS CHARGE means the charge to be granted by each of
      the Owners in favour of the Security Trustee (and to be held by the
      Security Trustee on behalf of itself, the Tranche B Lenders and any Swap
      Bank) in the form attached at Appendix 13, in respect of all monies
      standing to the credit from time to time of each of the Charter Accounts,
      such charge to be fully subordinated to the Charter Accounts Charge,
      together with any and all notices and acknowledgments entered into in
      connection therewith.

      JUNIOR GENERAL ASSIGNMENT means, in respect of a Vessel, the assignment of
      the Earnings, any Time Charter and the Obligatory Insurances to be granted
      in favour of the Security Trustee by the relevant Owner (and held by the
      Security Trustee on behalf of itself, the Tranche B Lenders and any Swap
      Bank) in the form attached at Appendix 2, such assignment to be, in
      respect of the assignment of any Time

                                       9
<PAGE>

      Charter and the Obligatory Insurance, fully subordinated to the General
      Assignment, together with any and all notices and acknowledgements entered
      into in connection therewith.

      JUNIOR MORTGAGE means, in respect of a Vessel, a second preferred Republic
      of the Marshall Islands ship mortgage to be given by the Owner of that
      Vessel in favour of the Security Trustee (and to be held by the Security
      Trustee on behalf of itself, the Tranche B Lenders and any Swap Bank) on
      the Delivery Date in the form attached at Appendix 6, such mortgage to be
      fully subordinated to the Mortgage.

      JUNIOR OPERATING ACCOUNT CHARGE means the charge to be granted by Quintana
      Management in favour of the Security Trustee (and to be held by the
      Security Trustee on behalf of itself, the Tranche B Lenders and any Swap
      Bank) in the form attached at Appendix 8, in respect of all monies
      standing to the credit from time to time of the Operating Account, such
      charge to be fully subordinated to the Operating Account Charge, together
      with any and all notices and acknowledgments entered into in connection
      therewith.

      JUNIOR PLEDGES OF SHARES means:

      (a)   the pledge of the issued share capital of the Owners to be granted
            by the Borrower in favour of the Security Trustee (and held by the
            Security Trustee on behalf of itself, the Tranche B Lenders and any
            Swap Bank); and

      (b)   the pledge of the issued share capital of the Borrower to be granted
            by Quintana in favour of the Security Trustee (and held by the
            Security Trustee on behalf of itself, the Tranche B Lenders and any
            Swap Bank),

      in each case, being fully subordinated to the Pledge of Shares, together
      with any and all notices and acknowledgments entered into in connection
      therewith and JUNIOR PLEDGE OF SHARES means any of them.

      JUNIOR RESERVE ACCOUNT CHARGE means the fixed charge to be granted by the
      Borrower in favour of the Security Trustee (and held by the Security
      Trustee on behalf of itself, the Tranche B Lenders and any Swap Bank) in
      the form attached at Appendix 4, in respect of all monies standing to the
      credit from time to time of the Reserve Account, together with any and all
      notices and acknowledgments entered into in connection therewith .

      JUNIOR SECURITY DOCUMENTS means the Junior Mortgages, the Junior Pledges
      of Shares, the Junior General Assignments, the Junior Operating Account
      Charge, the Junior Charter Accounts Charge, the Junior Reserve Account
      Charge and any other security granted by the Obligors to secure Tranche B
      Loans and/or the Swap Agreement.

      LENDER means:

      (a)   an Original Lender; or

      (b)   any New Lender;

      and LENDERS means all of them.

      LEVERAGE RATIO shall have the meaning given to in Clause 17.1 (Financial
      Covenants).

                                       10
<PAGE>

      LIBOR means for a Term of any Loan or overdue amount:

      (a)   the applicable Screen Rate; or

      (b)   if no Screen Rate is available for the relevant currency or Term of
            that Loan or overdue amount, the arithmetic mean (rounded upward to
            four decimal places) of the rates, as supplied to the Facility Agent
            at its request, quoted by the Reference Banks to leading banks in
            the London interbank market,

      as of 11.00 a.m. on the second London Business Day before the start of the
      Term for the offering of deposits in the currency of that Loan or overdue
      amount for a period comparable to that Term.

      LOANS means together the Vessel Loan 1, Vessel Loan 2, Vessel Loan 3,
      Vessel Loan 4, Vessel Loan 5, Vessel Loan 6, Vessel Loan 7 and Vessel Loan
      8 (each a LOAN).

      LONDON BUSINESS DAY means a day (other than a Saturday or a Sunday) on
      which banks are open for business in London.

      LOSSES means each and every liability, loss, charge, claim, demand,
      action, proceeding, damage, judgment, order or other sanction,
      enforcement, penalty, fine, fee, commission, interest, lien, salvage,
      general average, cost and expense of whatsoever nature suffered or
      incurred by or imposed on the Finance Parties.

      MAJORITY LENDERS means, at any time, Lenders:

      (a)   whose share in the outstanding Loans and whose undrawn Commitments
            then aggregate more than fifty (50) per cent. or more of the
            aggregate of all the outstanding Loans and the undrawn Commitments
            of all the Lenders;

      (b)   if there is no Loan then outstanding, whose undrawn Commitments then
            aggregate more than fifty (50) per cent. of the Total Commitments;
            or

      (c)   if there is no Loan then outstanding and the Total Commitments have
            been reduced to zero, whose Commitments aggregated more than fifty
            (50) per cent. of the Total Commitments immediately before the
            reduction.

      MANAGER means any of (i) Blossom Maritime Corporation of 80 Broad Street,
      Monrovia, Liberia (ii) Quintana Management or (iii) such other entity
      within the Group as the Borrower shall advise to the Facility Agent from
      time to time (and as shall be acceptable to the Majority Lenders).

      MANAGER'S UNDERTAKING means a letter of undertaking to be issued by
      Quintana Management to the Security Trustee in the form attached at
      Appendix 9 confirming it shall not make a claim to security ranking ahead
      of the Lenders' security in respect of a Vessel.

      MANDATORY COST means the properly evidenced cost of complying with certain
      regulatory requirements, expressed as a percentage rate per annum and
      calculated by the Facility Agent under Schedule 4 (Calculation of the
      Mandatory Cost).

      MARKET VALUE means, in respect of a Vessel, the market value of that
      Vessel calculated in accordance with Clause 19 (VALUATION).

                                       11
<PAGE>

      MATERIAL ADVERSE EFFECT means a material adverse effect on:

      (a)   the business, condition (financial or otherwise) or operations of
            the Group, taken as a whole;

      (b)   the ability of the Group, taken as a whole, to perform the
            obligations of the Obligors under any Finance Document; or

      (c)   the validity or enforceability of any Finance Document.

      MAXIMUM AVAILABLE LOAN AMOUNT means, in respect of a Vessel, eighty (80)
      per cent. of the Market Value of that Vessel.

      MAXIMUM AVAILABLE TRANCHE A LOAN AMOUNT means, in respect of a Vessel,
      sixty-five (65) per cent. of the Market Value of a Vessel.

      MAXIMUM FACILITY AMOUNT means the lesser of (a) two hundred and sixty two
      million four hundred and fifty six thousand Dollars (US$262,456,000) and
      (b) eighty (80) per cent. of the aggregate Market Value of the Vessels.

      MAXIMUM TRANCHE A FACILITY AMOUNT means the lesser of (a) sixty-five (65)
      per cent. of the aggregate Market Value of the Vessels and (b) two hundred
      and thirteen million two hundred and forty five thousand five hundred
      Dollars (US$213,245,500).

      MAXIMUM TRANCHE B FACILITY AMOUNT means the lesser of (a) fifteen (15) per
      cent. of the aggregate Market Value of the Vessels and (b) forty nine
      million two hundred and ten thousand five hundred Dollars (US$49,210,500).

      MEASUREMENT PERIOD means, at any time, the last four (4) fiscal quarters
      for the Borrower provided always that until four (4) fiscal quarters have
      elapsed from the date of this Agreement, the period from the date of this
      Agreement until the date of determination.

      MEMORANDUM OF AGREEMENT means, in relation to each Vessel, the memorandum
      of agreement entered into between the relevant Seller and the relevant
      Owner, pursuant to which the relevant Seller shall transfer title in the
      Vessel to the relevant Owner.

      MORTGAGE means, in respect of a Vessel, a first preferred Republic of the
      Marshall Islands ship mortgage to be given by the Owner of that Vessel in
      favour of the Security Trustee (and to be held by the Security Trustee on
      behalf of itself and the Tranche A Lenders) on the Delivery Date in the
      form attached at Appendix 5.

      NET WORTH shall have the meaning given to it in Clause 17.1 (Financial
      Covenants).

      NEW LENDER shall have the meaning to it in Clause 30.2 (Assignments and
      transfers by Lenders).

      OBLIGATORY INSURANCES means in respect of each Vessel:

      (a)   all contracts and policies of insurance and reinsurance and all
            entries in clubs and/or associations which are from time to time
            required to be effected and maintained in accordance with this
            Agreement in respect of each of the Vessels; and

                                       12
<PAGE>

      (b)   all benefits under the contracts, policies and entries under
            paragraph (a) above and all claims in respect of them and the return
            of premiums.

      OBLIGOR means the Borrower and the Guarantors.

      OPERATING ACCOUNT means the bank account to be opened by Quintana
      Management with the Account Bank with account number 0506714265 USD, IBAN
      GR0908401160000000506714265 and designated ""Quintana Management LLC -
      Operating Account".

      OPERATING ACCOUNT CHARGE means the charge to be granted by Quintana
      Management in favour of the Security Trustee (and held by the Security
      Trustee on behalf of itself and the Tranche A Lenders) in the form
      attached at Appendix 7, in respect of all monies standing to the credit
      from time to time of the Operating Account, together with any and all
      notices and acknowledgements entered into in connection therewith.

      OPERATING EXPENSES means all costs and expenses properly and reasonably
      incurred by each Obligor and Quintana Management in the ordinary course of
      the operation of its business including all costs and expenses incurred by
      each Owner in connection with the operation, employment, maintenance,
      drydocking, repair and insurance of the Vessel owned by it (including any
      capital expenditure in respect of that Vessel permitted under the terms of
      this Agreement).

      ORIGINAL BALANCE SHEET means the unaudited balance sheet of the Group
      prepared as at 31st March, 2005.

      OWNERS shall have the meaning given to it in the Preamble.

      PARTICIPATING MEMBER STATE means a member state of the European
      Communities that adopts or has adopted the euro as its lawful currency
      under the legislation of the European Union for European Monetary Union.

      PBGC means the Pension Benefit Guaranty Corporation of the United States
      of America established pursuant to Section 4002 of ERISA, or any successor
      thereto.

      PERMITTED SALE means any Shareholder or other holder from time to time of
      issued shares in the Borrower or Quintana divesting itself of any of its
      shares in the Borrower or Quintana so long as such divestment (either in
      itself or when aggregated with any earlier divestment) does not give rise
      to a Change of Control.

      PERSONAL GUARANTEE means the personal guarantee to be given by Corbin J.
      Robertson Jr in favour of the Security Trustee, in form and substance
      satisfactory to the Facility Agent.

      PARTY means a party to this Agreement or any Finance Document.

      PERMITTED SECURITY INTERESTS means:

      (a)   Security Interests created by the Security Agreements;

      (b)   liens for unpaid crew's wages including wages of the master and
            stevedores employed by any Vessel, outstanding in the ordinary
            course of trading for not more than one calendar month after the due
            date for payment;

                                       13
<PAGE>

      (c)   liens for salvage;

      (d)   liens for collision;

      (e)   liens for master's disbursements incurred in the ordinary course of
            trading;

      (f)   liens arising by operation of law in respect of not more than two
            (2) months prepaid hire under any Time Charter relating to a Vessel;

      (g)   statutory and common law liens of carriers, warehousemen, mechanics,
            suppliers, materials men, repairers or other similar liens,
            including maritime liens, in each case arising in the ordinary
            course of business, outstanding for not more than two (2) months
            whose aggregate value does not exceed US$500,000 in respect of any
            one Vessel,

      in the case of paragraphs (b) to (g) inclusive provided that the amounts
      which give rise to such Security Interests are paid when due (unless
      expressly indicated above) or, if not paid when due are being disputed in
      good faith by appropriate proceedings (and for the payment of which
      adequate reserves or security are at the relevant time maintained or
      provided to the extent required by GAAP), and provided further that such
      proceedings, whether by payment of adequate security into court or
      otherwise, do not give rise to a material risk of the relevant Vessel or
      any interest therein being seized, sold, forfeited or otherwise lost or of
      criminal liability on the Facility Agent or on any of the Lenders.

      PLAN means any pension plan as defined in Section 3(2) of ERISA, which is
      maintained or contributed to by (or to which there is an obligation to
      contribute) any Obligor or any ERISA Affiliate, and each such plan for the
      five (5) year period immediately following the latest date on which the
      Obligor or any ERISA Affiliate maintained, contributed to or had an
      obligation to contribute to such plan.

      PLEDGES OF SHARES means:

      (a)   the pledge of the issued share capital of the Owners to be granted
            by the Borrower in favour of the Security Trustee (and held by the
            Security Trustee on behalf of itself and the Tranche A Lenders); and

      (b)   the pledge of the issued share capital of the Borrower to be granted
            by Quintana in favour of the Security Trustee (and held by the
            Security Trustee on behalf of itself and the Tranche A Lenders),

      together with any and all notices and acknowledgments entered into in
      connection therewith AND PLEDGE OF SHARES means any of them.

      PREDICTED CHARTER RATES means the charter rates as set out in Schedule 9.

      PRIMARY PERIOD means the period commencing on the date of this Agreement
      and ending on the later of (i) the date falling two (2) years after the
      date of this Agreement, and (ii) the Trigger Date.

      PRIME RATE means the rate of interest per annum publicly announced from
      time to time by Citibank, N.A. as its prime rate in effect at its
      principal office in New York City, United States of America. Each change
      in the Prime Rate shall be effective from and including the date such
      change is publicly announced as being effective.

                                       14
<PAGE>

      QUINTANA shall have the meaning given to it in the Preamble.

      QUINTANA MANAGEMENT shall have the meaning given to it in the Preamble.

      RATE FIXING DAY means two (2) Business Days before the first day of the
      relevant Term for a Drawing, or unless market practice differs in the
      London interbank market for a currency, in which case the Rate Fixing Day
      for that currency will be determined by the Facility Agent in accordance
      with market practice in the London interbank market (and if quotations
      would normally be given by leading banks in the London interbank market on
      more than one day, the Rate Fixing Day will be the last of those days).

      REFERENCE BANKS means the Facility Agent and any other bank or financial
      institution appointed as such by the Facility Agent (acting on the
      instructions of the Majority Lenders) under this Agreement.

      RELATED CONTRACTS means any or all of the following (as the context
      requires):

      (a)   the Obligatory Insurances;

      (b)   the Time Charters; and

      (c)   the Vessel Management Agreements.

      RELEASE means an emission, spill, release or discharge into or upon the
      air, surface water, groundwater, or soils of any Hazardous Materials for
      which any of the Owners has any liability under Environmental Law, except
      in accordance with a valid Environmental Approval.

      REPAYMENT DATE means each date which is either (or both) a Tranche A
      Repayment Date and/or a Tranche B Repayment Date.

      REPAYMENT INSTALMENT means each instalment which is either (or both) a
      Tranche A Repayment Instalment and/or a Tranche B Repayment Instalment
      payable for repayment of the Loans in accordance with the Repayment
      Schedule.

      REPAYMENT SCHEDULE means the schedule of Repayment Dates as detailed in
      Schedule 6 (Repayment Schedule), to be replaced as required in accordance
      with Clause 5(b).

      REPORTABLE EVENT means an event described in Section 4043(c) of ERISA with
      respect to a plan that is subject to Title IV of ERISA.

      REQUEST means a request made by the Borrower for a Drawing, substantially
      in the form of Schedule 3 (Form of Request).

      REQUIRED AMOUNT means, in respect of the Vessels, (a) during the twelve
      (12) month period commencing on the date of this Agreement that amount
      which at the relevant time is no less than one hundred and fifteen (115)
      per cent. of the aggregate of the outstanding principal amount of the
      Loans, and (b) from the period commencing twelve (12) months after the
      date of this Agreement, that amount which at the relevant time is no less
      than one hundred and twenty-five (125) per cent. of the aggregate
      outstanding principal amount of the Loans.

      REQUIRED INSURANCE AMOUNT means, in respect of the Vessels, that amount
      which at the relevant time is one hundred and twenty-five (125) per cent.
      of the aggregate of the outstanding Loans.

                                       15
<PAGE>

      REQUIRED LENDERS means, at any time, Lenders:

      (a)   whose share in the outstanding Loans and whose undrawn Commitments
            then aggregate more than eighty five (85) per cent. of the aggregate
            of all the outstanding Loans and the undrawn Commitments of all the
            Lenders;

      (b)   if there are no Loans then outstanding, whose undrawn Commitments
            then aggregate more than eighty five (85) per cent. of the Total
            Commitments; or

      (c)   if there are no Loans then outstanding and the Total Commitments
            have been reduced to zero, whose Commitments aggregated more than
            eighty five (85) per cent. of the Total Commitments immediately
            before the reduction.

      REQUISITION COMPENSATION means, in respect of a Vessel, all moneys or
      other compensation payable by reason of requisition for title to, or other
      compulsory acquisition of, that Vessel including requisition for hire.

      RESERVE ACCOUNT means the interest bearing bank account to be opened in
      the name of the Borrower with the Account Bank with account number
      10863688 and designated "Quintana Maritime Limited-Reserve Account".

      RESERVE ACCOUNT CHARGE means the fixed charge to be granted by the
      Borrower in favour of the Security Trustee (and held by the Security
      Trustee on behalf of itself and the Tranche A Lenders) in the form
      attached at Appendix 3, in respect of all monies standing to the credit
      from time to time of the Reserve Account, together with any and all
      notices and acknowledgements entered into in connection therewith.

      RETENTION PERIOD means, in respect of a Loan, each period commencing, in
      the case of the first such period, on the later of (i) 1st October, 2005
      and (ii) the Delivery Date of the Vessel to which that Loan relates and,
      in the case of each other such period, on a Repayment Date for that Loan
      and ending on the next Repayment Date for that Loan or, in the case of the
      final such period, the Final Maturity Date.

      SCREEN RATE means, for LIBOR, and in respect of a Term, the percentage
      rate per annum for a period substantially the same as the relevant Term
      displayed on page 3750 of the Telerate screen. If the relevant page is
      replaced or the service ceases to be available, the Facility Agent may
      specify another page or service displaying the appropriate rate.

      SECURED LIABILITIES means all present and future obligations and
      liabilities (actual or contingent) of the Obligors to the Finance Parties
      or any of them under or in connection with any Finance Document.

      SECURITY AGREEMENTS means the Junior Security Documents, the Senior
      Security Documents, any Swap Agreement Assignment and any other documents
      designated as such in writing by the Borrower and the Facility Agent.

      SECURITY ASSETS means any asset which is the subject of a Security
      Interest created by a Security Document.

      SECURITY DOCUMENT means:

      (a)   each Security Agreement; and

                                       16
<PAGE>

      (b)   any other document to which the Security Trustee (amongst others) is
            a party evidencing or creating security over any asset of an Obligor
            to secure any obligation of an Obligor to the Finance Parties or any
            of them under the Finance Documents.

      SECURITY INTEREST means any mortgage, pledge, lien, charge, assignment,
      hypothecation or security interest or any other agreement or arrangement
      having a similar effect.

      SECURITY TRUSTEE shall have the meaning given to it in the Preamble.

      SELLER means, in respect of each Vessel, the entity listed against the
      relevant Vessel in Part 1 of Schedule 1.

      SENIOR SECURITY DOCUMENTS means the Mortgages, the Pledges of Shares, the
      General Assignments, the Vessel Management Agreement Assignments, the
      Operating Account Charge, the Charter Accounts Charge, the Reserve Account
      Charge, any Swap Agreement Assignment and any other security granted by
      the Obligors to secure Tranche A Loans.

      SHAREHOLDER means, in the case of the Owners, the Borrower, which shall,
      at all times, hold (subject to the Security Interests created by the
      Security Agreements) all of the beneficial ownership of the Owners and in
      the case of the Borrower, Quintana, which shall, at all times (but subject
      to the occurrence of either an IPO or a Permitted Sale), hold (subject to
      the Security Interests created by the Security Agreements) all of the
      beneficial ownership of the Borrower and in the case of Quintana, the
      Ultimate Shareholders, which shall, at all times (but subject to a
      Permitted Sale) hold at least ninety six (96) per cent. of the beneficial
      ownership of Quintana.

      STANDING PAYMENT has the meaning given to in Clause 13.3(c).

      SUBORDINATION DEED means the deed of subordination to be entered into by,
      inter alios, the Tranche A Lenders, the Tranche B Lenders, any Swap Bank
      and the Administrative Parties, pursuant to which the Tranche B Lenders
      and any Swap Bank confirm the subordination of the Junior Security
      Documents to the Senior Security Documents.

      SUBSIDIARY means:

      (a)   in respect of a person incorporated or formed outside England and
            Wales, any company or entity directly or indirectly controlled by
            such person, and for this purpose CONTROL means either the ownership
            of more than fifty (50) per cent. of the voting share capital (or
            equivalent rights of ownership) of such company or entity or the
            power to direct its policies and management whether by contract or
            otherwise; and

      (b)   in respect of a person incorporated in England and Wales, a
            subsidiary within the meaning of Section 736 Companies Act 1985.

      SWAP AGREEMENT means, if any, each of the ISDA Master Agreements (and the
      confirmations thereunder) entered into or to be entered into in respect of
      interest rate swaps in respect of the Loans (or any part of the Loans) by
      any Swap Bank and the Borrower.

      SWAP AGREEMENT ASSIGNMENT means, in respect of each Swap Agreement, the
      assignment of that Swap Agreement to be granted by the Borrower in favour
      of the Security Trustee (and held by the Security

                                       17
<PAGE>

      Trustee on behalf of itself and the Tranche A Lenders) in the form
      attached at Appendix 10, together with any and all notices and
      acknowledgements entered into in connection therewith.

      SWAP BANK means any Lender which has entered into, or which may from time
      to time enter into, any ISDA Master Agreements with the Borrower in
      respect of the Loans or any part of the Loans.

      TAX means any tax, levy, impost, duty or other charge or withholding of a
      similar nature imposed by a governmental revenue authority (including,
      without limitation, any penalty or interest payable in connection with any
      failure to pay or any delay in paying any of the same).

      TAX CREDIT means any credit, deduction or other Tax benefit that results
      in a net reduction in liability for Tax.

      TAX DEDUCTION means a deduction or withholding for or on account of Tax
      made from a payment under a Finance Document.

      TAX FORM means any such forms or documents required or reasonably
      requested in writing in order to allow the Facility Agent or an Obligor to
      make a payment under this Agreement or any Finance Document without any
      Tax Deduction (or without incurring any obligation to indemnify in respect
      of Tax) or with such Tax Deduction (or indemnification) at a reduced rate,
      so long as the completion, execution or submission of such form or
      document would not materially prejudice the legal or commercial position
      of the party in receipt of such demand.

      TAX PAYMENT means a payment made by an Obligor to a Finance Party in any
      way relating to a Tax Deduction or under any indemnity given by that
      Obligor in respect of Tax under any Finance Document.

      TERM means each period determined under this Agreement by reference to
      which interest payable on a Loan or an overdue amount is calculated.

      TIME CHARTER has the meaning given to it in Clause 18.22 (Time Charters).

      TOTAL COMMITMENTS means the aggregate of the Commitments of all the
      Lenders.

      TOTAL LOSS means in relation to a Vessel:

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

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

      (c)   capture, seizure, arrest, detention, or confiscation of that Vessel
            by any person or government or by persons acting or purporting to
            act on behalf of any government or any other person which deprives
            the Owner of that Vessel, or as the case may be the Charterer, of
            the use of that Vessel, for more than 60 days after that occurrence;
            and

      (d)   requisition for hire of that Vessel by any government or by persons
            acting or purporting to act on behalf of any government which
            deprives the Owner, or as the case may be the Charterer, of the use
            of that Vessel.

      TRANCHE A INTEREST RATE has the meaning given to it in Clause 7.1(a).

                                       18
<PAGE>

      TRANCHE A LENDERS means the lenders detailed in Part 2 of Schedule 1 as
      Tranche A Lenders together with any New Lenders in respect of Tranche A
      Loans.

      TRANCHE A LOAN means, in respect of a Vessel, all monies advanced to the
      Borrower by the Tranche A Lenders.

      TRANCHE A MAJORITY LENDERS means, at any time, Tranche A Lenders:

      (a)   whose share in the outstanding Tranche A Loans and whose undrawn
            Commitments in respect of Tranche A Loans then aggregate more than
            fifty (50) per cent. of the aggregate of all the outstanding Tranche
            A Loans and the undrawn Commitments in respect of Tranche A Loans of
            all the Tranche A Lenders;

      (b)   if there is no Tranche A Loan then outstanding, whose undrawn
            Commitments in respect of Tranche A Loans then aggregate more than
            fifty (50) per cent. of the Total Commitments in respect of Tranche
            A Loans; or

      (c)   if there is no Tranche A Loan then outstanding and the Total
            Commitments in respect of Tranche A Loans have been reduced to zero,
            whose Commitments in respect of Tranche A Loans aggregated more than
            fifty (50) per cent. of the Total Commitments in respect of Tranche
            A immediately before the reduction.

      TRANCHE A MARGIN means 1.625 per cent. per annum.

      TRANCHE A PRO RATA SHARE means:

      (a)   for the purpose of determining a Tranche A Lender's share in a
            utilisation of the Tranche A Loans, the proportion which its
            Commitment in respect of Tranche A bears to the Total Commitments in
            respect of Tranche A; and

      (b)   for any other purpose on a particular date:

            (i)   the proportion which a Tranche A Lender's share of the Tranche
                  A Loans (if any) bears to all the Tranche A Loans;

            (ii)  if there is no Tranche A Loan outstanding on that date, the
                  proportion which its Commitment in relation to Tranche A bears
                  to the Total Commitments in relation to Tranche A on that
                  date; or

            (iii) if the Total Commitments in relation to Tranche A have been
                  cancelled, the proportion which its Commitment in relation to
                  Tranche A bore to the Total Commitments in relation to Tranche
                  A immediately before being cancelled.

      TRANCHE A REPAYMENT DATE means, in respect of the Tranche A Loans, each of
      the twenty four (24) quarterly instalment dates as detailed in the
      Repayment Schedule for the Tranche A Loans, the first such date falling on
      the Amortisation Commencement Date, and the final such date falling on the
      relevant Final Maturity Date.

                                       19
<PAGE>

      TRANCHE A REPAYMENT INSTALMENT means in respect of the Tranche A Loans,
      each instalment of principal which is payable for repayment of the Tranche
      A Loans in accordance with the Repayment Schedule for the Tranche A Loans.

      TRANCHE B LENDERS means the lenders detailed in Part 2 of Schedule 1 as
      Tranche B Lenders together with any New Lenders in respect of Tranche B
      Loans.

      TRANCHE B INTEREST RATE shall have the meaning given to it in Clause 7.1
      (Calculation of Interest).

      TRANCHE B LOAN means, in respect of a Vessel, all monies advanced to the
      Borrower by the Tranche B Lenders.

      TRANCHE B MARGIN means 2.50 per cent. per annum.

      TRANCHE B MAJORITY LENDERS means, at any time, Tranche B Lenders:

      (a)   whose share in the outstanding Tranche B Loans and whose undrawn
            Commitments in respect of Tranche B Loans then aggregate more than
            fifty (50) per cent. or more of the aggregate of all the outstanding
            Tranche B Loans and the undrawn Commitments in respect of Tranche B
            Loans of all the Tranche B Lenders;

      (b)   if there is no Tranche B Loan then outstanding, whose undrawn
            Commitments in respect of Tranche B Loans then aggregate more than
            fifty (50) per cent. of the Total Commitments in respect of Tranche
            B Loans; or

      (c)   if there is no Tranche B Loan then outstanding and the Total
            Commitments in respect of Tranche B Loans have been reduced to zero,
            whose Commitments in respect of Tranche B Loans aggregated more than
            fifty (50) per cent. of the Total Commitments in respect of Tranche
            B immediately before the reduction.

      TRANCHE B PRO RATA SHARE means:

      (a)   for the purpose of determining a Tranche B Lender's share in a
            utilisation of Tranche B Loans, the proportion which its commitment
            in respect of Tranche B bears to the Total Commitments in respect of
            Tranche B; and

      (b)   for any other purpose on a particular date:

            (i)   the proportion which a Tranche B Lender's share of the Tranche
                  B Loans (if any) bears to all the Tranche B Loans;

            (ii)  if there is no Tranche B Loan outstanding on that date, the
                  proportion which its Commitments in relation to Tranche B
                  bears to the Total Commitments in relation to Tranche B on
                  that date; or

            (iii) if the Total Commitments in relation to Tranche B have been
                  cancelled, the proportion which its Commitment in relation to
                  Tranche B bore to the Total Commitments in relation to Tranche
                  B before being cancelled.

                                       20
<PAGE>

      TRANCHE B REPAYMENT DATE means, in respect of the Tranche B Loans, each of
      the twenty (24) quarterly instalment dates as detailed in the Repayment
      Schedule for the Tranche B Loans, the first such date falling on the
      Amortisation Commencement Date and the final such date falling on the
      Final Maturity Date.

      TRANCHE B REPAYMENT INSTALMENT means in respect of the Tranche B Loans,
      each instalment of principal which is payable for repayment of the Tranche
      B Loans in accordance with the relevant Repayment Schedule.

      TRANSFER CERTIFICATE means a certificate, substantially in the form of
      Schedule 5 (Form of Transfer Certificate), with such amendments as the
      Facility Agent and the Borrower may approve or reasonably require or any
      other form agreed between the Facility Agent and the Borrower.

      TRANSFER DATE shall have the meaning given to it in Clause 30.3(a)
      (Procedure for transfer by way of novations).

      TRIGGER DATE means the first date following the date of this Agreement on
      which the ratio of Consolidated Total Indebtedness (as defined in Clause
      17) to the aggregate Market Value of the Vessels is less than 0.60 to
      1.00.

      ULTIMATE SHAREHOLDERS means each of First Reserve Fund X, L.P., AMCI
      Acquisition II, LLC, and Quintana Maritime Partners, L.P. (each an
      ULTIMATE SHAREHOLDER).

      UNFUNDED CURRENT LIABILITY means, in respect of any Plan, the amount (if
      any) by which the value of the accumulated plan benefits under the Plan
      determined on a plan termination basis in accordance with actuarial
      assumptions at such time consistent with those prescribed by PBGC for this
      purpose, exceeds the fair market value of all plan assets allocable to
      such liabilities under Title IV of ERISA (excluding any accrued but unpaid
      contributions).

      UTILISATION DATE means each date on which the Facility or any part thereof
      is utilised.

      VESSEL 1 means the 73,427 dwt Panamax tanker "Fearless I" more
      specifically detailed in Part 1 of Schedule 1.

      VESSEL 2 means the 72,873 dwt Panamax tanker "King Coal" more specifically
      detailed in Part 1 of Schedule 1.

      VESSEL 3 means the 73,670 dwt Panamax tanker "Coal Glory" more
      specifically detailed in Part 1 of Schedule 1.

      VESSEL 4 means the 72,861 dwt Panamax tanker "Coal Age" more specifically
      detailed in Part 1 of Schedule 1.

      VESSEL 5 means the 72,861 dwt Panamax tanker " Iron Man" more specifically
      detailed in Part 1 of Schedule 1.

      VESSEL 6 means the 73,390 dwt Panamax tanker " Linda Leah" more
      specifically detailed in Part 1 of Schedule 1.

                                       21
<PAGE>

      VESSEL 7 means the 73,390 dwt Panamax tanker "Barbara" more specifically
      detailed in Part 1 of Schedule 1.

      VESSEL 8 means the 72,861 dwt Panamax tanker "Coal Pride" more
      specifically detailed in Part 1 of Schedule 1.

      VESSELS means the Vessels detailed in Part 1 of Schedule 1 and VESSEL
      means any of them.

      VESSEL LOAN 1 means such part of the Facility as is drawndown in respect
      of the acquisition of Vessel 1 or the principal amount thereof from time
      to time outstanding under this Agreement.

      VESSEL LOAN 2 means such part of the Facility as is drawndown in respect
      of the acquisition of Vessel 2 or the principal amount thereof from time
      to time outstanding under this Agreement.

      VESSEL LOAN 3 means such part of the Facility as is drawndown in respect
      of the acquisition of Vessel 3 or the principal amount thereof from time
      to time outstanding under this Agreement.

      VESSEL LOAN 4 means such part of the Facility as is drawndown in respect
      of the acquisition of Vessel 4 or the principal amount thereof from time
      to time outstanding under this Agreement.

      VESSEL LOAN 5 means such part of the Facility as is drawndown in respect
      of the acquisition of Vessel 5 or the principal amount thereof from time
      to time outstanding under this Agreement.

      VESSEL LOAN 6 means such part of the Facility as is drawndown in respect
      of the acquisition of Vessel 6 or the principal amount thereof from time
      to time outstanding under this Agreement.

      VESSEL LOAN 7 means such part of the Facility as is drawndown in respect
      of the acquisition of Vessel 7 or the principal amount thereof from time
      to time outstanding under this Agreement.

      VESSEL LOAN 8 means such part of the Facility as is drawndown in respect
      of the acquisition of Vessel 8 or the principal amount thereof from time
      to time outstanding under this Agreement.

      VESSEL MANAGEMENT AGREEMENTS means the management agreement(s) entered
      into or to be entered into between Quintana Management and the Owners
      together with any subsequent agreements for the management of any one or
      more of the Vessels entered into by any of the Owners and/or Quintana
      Management.

      VESSEL MANAGEMENT AGREEMENT ASSIGNMENTS means the assignments of the
      Vessel Management Agreement(s) to be granted in favour of the Security
      Trustee by the Owners (and held by the Security Trustee on behalf of
      itself and the Tranche A Lenders) in the form attached at Appendix 11
      together with any and all notices and acknowledgements entered into in
      connection therewith.

1.2   CONSTRUCTION

(a)   In this Agreement, unless the contrary intention appears, a reference to:

      (i)   an AMENDMENT includes a supplement, novation, restatement or
            re-enactment and AMENDED will be construed accordingly;

            ASSETS includes present and future properties, revenues and rights
            of every description;

                                       22
<PAGE>

             an AUTHORISATION includes an authorisation, consent, approval,
             resolution, licence, exemption, filing, registration or
             notarisation under Applicable Law;

             DISPOSAL means a sale, transfer, grant, lease or other disposal,
             whether voluntary or involuntary, and DISPOSE will be construed
             accordingly;

             INDEBTEDNESS includes any obligation (whether incurred as principal
             or as surety) for the payment or repayment of money;

             a PERSON includes any individual, company, corporation,
             unincorporated association or body (including a partnership, trust,
             joint venture or consortium), government, state, agency,
             organisation or other entity whether or not having separate legal
             personality and their successors in title, permitted assigns and
             permitted transferees;

             a REGULATION includes any regulation, rule, official directive,
             request or guideline (whether or not having the force of law but,
             if not having the force of law, being of a type with which any
             person to which it applies is accustomed to comply) of any
             governmental, inter-governmental or supranational body, agency,
             department or regulatory, self-regulatory or other authority or
             organisation;

      (ii)   a currency is a reference to the lawful currency for the time being
             of the relevant country;

      (iii)  a Default being OUTSTANDING means that it has not been cured,
             remedied or waived;

      (iv)   a provision of law is a reference to that provision as extended,
             applied, amended or re-enacted and includes any subordinate
             legislation;

      (v)    a Clause, a Subclause or a Schedule is a reference to a clause or
             subclause of, or a schedule to, this Agreement;

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

      (vii)  a Finance Document or another document is a reference to that
             Finance Document or other document as amended; and

      (viii) a time of day is a reference to London time.

(b)   Unless the contrary intention appears, a reference to a MONTH or MONTHS is
      a reference to a period starting on one day in a calendar month and ending
      on the numerically corresponding day in the next calendar month or the
      calendar month in which it is to end, except that:

      (i)    if the numerically corresponding day is not a Business Day, the
             period will end on the next Business Day in that month (if there is
             one) or the preceding Business Day (if there is not);

      (ii)   if there is no numerically corresponding day in that month, that
             period will end on the last Business Day in that month; and

      (iii)  notwithstanding subparagraph (i) above, a period which commences on
             the last Business Day of a month will end on the last Business Day
             in the next month or the calendar month in which it is to end, as
             appropriate.

                                       23
<PAGE>

(c)   Unless expressly provided to the contrary in a Finance Document, a person
      who is not a party to a Finance Document may not enforce any of its terms
      under the Contracts (Rights of Third Parties) Act 1999 and notwithstanding
      any term of any Finance Document, the consent of any third party is not
      required for any variation (including any release or compromise of any
      liability) or termination of that Finance Document.

(d)   Unless the contrary intention appears or unless the context otherwise
      permits:

      (i)   a reference to a Party will not include that Party if it has ceased
            to be a Party under this Agreement or the relevant Finance Document;

      (ii)  a word or expression used in any other Finance Document or in any
            notice given in connection with any Finance Document has the same
            meaning in that Finance Document or notice as in this Agreement; and

      (iii) any obligation of an Obligor under the Finance Documents which is
            not a payment obligation remains in force in accordance with its
            terms for so long as any payment obligation of an Obligor is or may
            be outstanding under the Finance Documents.

(e)   Joint and several liability

      (i)   All obligations, covenants, representations, warranties and
            undertakings in or pursuant to the Finance Documents assumed, given,
            made or entered into by the Obligors shall, unless otherwise
            expressly provided, be assumed, given, made or entered into by the
            Obligors jointly and severally.

      (ii)  Each of the Obligors agrees that any rights which it may have at any
            time during the term of the Facility by reason of the performance of
            its obligations under the Finance Documents to be indemnified by any
            other Obligor and/or to take the benefit of any security taken by
            the Facility Agent pursuant to the Finance Documents shall be
            exercised in such manner and on such terms as the Facility Agent may
            require or as provided in this Agreement. Each of the Obligors
            agrees to hold any sums received by it as a result of its having
            exercised any such right on trust for the Facility Agent absolutely.

      (iii) Each of the Obligors agrees that it will not at any time during the
            term of the Facility claim any set-off or counterclaim against any
            other Obligor in respect of any liability owed to it by that other
            Obligor under or in connection with the Finance Documents, nor prove
            in competition with any of the Finance Parties in any liquidation of
            (or analogous proceeding in respect of) any other Obligor in respect
            of any payment made under the Finance Documents or in respect of any
            sum which includes the proceeds of realisation of any security held
            by the Facility Agent for the repayment of the Loans.

(f)   The headings in this Agreement do not affect its interpretation.

2.    FACILITY

2.1   FACILITY AND PURPOSE

      Subject to the terms of this Agreement, the Lenders make available to the
      Borrower a term loan facility in a maximum aggregate amount equal to the
      total of the Maximum Tranche A Facility Amount and the

                                       24
<PAGE>

      Maximum Tranche B Facility Amount. The term loan facility shall be made
      available in up to eight Loans, each of which shall be made available to
      the Borrower. Each Loan shall be capable of being drawn up to the relevant
      Maximum Available Loan Amount in one Drawing on a Business Day falling
      within the Availability Period but not on a Business Day which falls
      before the Delivery Date of the Vessel to which that Loan relates.

2.2   LOANS

      Each Loan may be used only in or towards financing (in part) the
      acquisition and associated costs and expenses of the Vessel to which it
      relates or towards repaying any bridge financing which the Borrower has
      incurred for the purpose of acquiring the Vessels (or any of them).

2.3   NO OBLIGATION TO MONITOR

      No Finance Party is obliged to monitor or verify the utilisation of any
      Loan.

2.4   NATURE OF A FINANCE PARTY'S RIGHTS AND OBLIGATIONS

      Unless otherwise agreed by all the Finance Parties:

      (a)   the obligations of a Finance Party under the Finance Documents are
            several;

      (b)   failure by a Finance Party to perform its obligations does not
            affect the obligations of any other Party under the Finance
            Documents;

      (c)   no Finance Party is responsible for the obligations of any other
            Finance Party under the Finance Documents;

      (d)   the rights of a Finance Party under the Finance Documents are
            separate and independent rights;

      (e)   a Finance Party may, except as otherwise stated in the Finance
            Documents, separately enforce those rights; and

      (f)   a debt arising under the Finance Documents to a Finance Party is a
            separate and independent debt.

3.    CONDITIONS PRECEDENT

3.1   CONDITIONS PRECEDENT DOCUMENTS

(a)   A Drawing under a Loan will not become due and payable by the Lenders
      until the Facility Agent has notified the Borrower and the Lenders that it
      has received all of the documents and evidence set out in Schedule 2 Part
      1 (Initial Conditions Precedent Documents) in form and substance
      satisfactory to the Facility Agent. The Facility Agent must give this
      notification to the Borrower and the Lenders promptly upon being so
      satisfied.

(b)   A Drawing under a Loan will not become due and payable by the Lenders
      until the Facility Agent has notified the Borrower and the Lenders that it
      has received all of the documents and evidence set out in Schedule 2 Part
      2 (Delivery Date Conditions Precedent Documents) in form and substance
      satisfactory

                                       25
<PAGE>

      to the Facility Agent. The Facility Agent must give this notification to
      the Borrower and the Lenders promptly upon being so satisfied.

3.2   FURTHER CONDITIONS PRECEDENT

      The obligations of each Lender to advance any Loan are subject to the
      further conditions precedent that on both the date of the Request and the
      Utilisation Date for that Loan:

      (a)   the representations made under Clause 15 are correct in all material
            respects; and

      (b)   no Default is outstanding or would result from the Drawing.

3.3   CONDITIONS SUBSEQUENT

      The Borrower undertakes to deliver or cause to be delivered to the
      Facility Agent in accordance with the time periods specified in Schedule
      2, Part 3, the additional documents listed in Schedule 2, Part 3.

4.    UTILISATION

4.1   GIVING OF REQUESTS

(a)   The Borrower may borrow each Loan by giving to the Facility Agent a duly
      completed Request in respect of the Drawing under that Loan.

(b)   Unless the Facility Agent otherwise agrees, the latest time for receipt by
      the Facility Agent of a duly completed Request is 11.00 a.m., London time,
      three Business Days prior to the proposed date for the borrowing.

(c)   Each Request is irrevocable.

4.2   COMPLETION OF REQUESTS

      A Request for the Drawing under a Loan will not be regarded as having been
      duly completed unless:

      (a)   the Utilisation Date complies with the provisions of Clause 2.1.

      (b)   in respect of the Drawing under a Loan, it is in an amount not
            exceeding the Maximum Available Loan Amount;

      (c)   it requests that the amount of the Drawing shall be drawn pro rata
            between the Tranche A Loan and the Tranche B Loan;

      (d)   the amount requested for the Drawing, does not exceed, when
            aggregated with the amounts drawndown or to be drawndown under any
            other Requests issued for drawdown on the proposed Utilisation Date,
            the undrawn amount of the Total Commitment on the proposed
            Utilisation Date; and

      (e)   the proposed Term complies with this Agreement.

      Only one Drawing may be requested in a Request.

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<PAGE>

4.3   ADVANCE OF LOANS

(a)   The Facility Agent must promptly and in any event one (1) Business Day
      before the Rate Fixing Day notify each Lender of the details of the
      requested Drawing and the amount of its share in that Drawing.

(b)   The amount of each Lender's share of the Loan will be its Tranche A Pro
      Rata Share and/or Tranche B Pro Rata Share, on the proposed Utilisation
      Date.

(c)   No Lender is obliged to participate in a Drawing if, as a result, its
      share in the Loans would exceed its Commitment.

(d)   If the conditions set out in this Agreement have been met, each Lender
      must make its share in the Drawing available by the Utilisation Date
      through its Facility Office.

5.    REPAYMENT

      REPAYMENT OF THE LOANS

      (a)   The Borrower must repay the Loans to the Facility Agent on each
            Repayment Date in accordance with the relevant Repayment Schedule.
            Each Repayment Instalment will be applied by the Facility Agent
            amongst the Loans pro rata against the principal amounts outstanding
            in respect of each Loan.

      (b)   The Facility Agent shall notify the Borrower and the Lenders of any
            change in the amount or the timing of any Repayment Instalment, as
            soon as practicable after the Delivery Date for each Vessel. In the
            event of any such notification, the Facility Agent shall replace the
            relevant Repayment Schedule attached at Schedule 6 with a new
            Repayment Schedule reflecting the correct Repayment Instalments and
            the correct Repayment Dates and promptly provide a copy thereof to
            the Borrower and the Lenders. To the extent that such change results
            from a reduction in the principal amount of the Loans from that
            assumed when the then current Repayment Schedule was produced, any
            such reduction shall be applied pro rata against the Repayment
            Instalments.

      (c)   In any event, each Loan shall be repaid in full on the Final
            Maturity Date.

6.    PREPAYMENT AND CANCELLATION

6.1   MANDATORY PREPAYMENT - ILLEGALITY

(a)   If it becomes, or to the knowledge of any Lender is to become, unlawful in
      any relevant jurisdiction for a Lender to perform any of its obligations
      as contemplated by this Agreement or a Finance Document or to fund or
      maintain its share in one or more of the Loans (the EVENT OF ILLEGALITY),
      that Lender shall notify the Facility Agent and the Owners.

(b)   After notification under paragraph (a) above, the Borrower and that Lender
      shall thereafter consult with each other in good faith for a period of
      thirty (30) days or in the event that the Event of Illegality takes effect
      before the expiration of thirty (30) days, for the maximum number of days
      available before the Event of Illegality takes effect with a view to
      restructuring the Facility in such a way as to avoid the effect of the
      Event of Illegality.

                                       27
<PAGE>

(c)   If agreement cannot be reached between the parties within the period
      specified in paragraph (b) above, the Borrower shall repay the share of
      that Lender in the relevant Loan or Loans on the date specified in
      paragraph (d) below and the Commitment of that Lender will be immediately
      cancelled.

(d)   The date for repayment of a Lender's share in a Loan or Loans will be the
      earlier of:

      (i)   the last day of the current Term of that Loan; and

      (ii)  the date specified by that Lender in the notice delivered to the
            Borrower (being no earlier than the last day of any applicable grace
            period permitted by Applicable Law).

6.2   MANDATORY PREPAYMENT - SALE OR TOTAL LOSS OF A VESSEL

(a)   The Borrower shall be obliged to apply against the Loans outstanding, the
      entire sale or total loss proceeds (as the case may be) for a Vessel in
      the following circumstances and at the following times, to be applied by
      the Facility Agent:

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

      (ii)  if there is a Total Loss, on the earlier of the date falling one
            hundred and twenty (120) days after the occurrence of the relevant
            event of Total Loss and the date of receipt by the Facility Agent of
            the proceeds of insurance relating to such Total Loss, or, in the
            event that there has been no application by the 120th day referred
            to above but the collateral maintenance ratio set forth in Clause
            17.6 (Collateral Maintenance) is deemed by the Facility Agent to be
            met on such date, on the earlier of the date falling one hundred and
            eighty (180) days after the occurrence of the relevant event of
            Total Loss and the date of receipt by the Facility Agent of the
            proceeds of insurance relating to such Total Loss.

(b)   The Facility Agent shall apply the prepayment referred to in Clause 6.2(a)
      in accordance with Clause 8.2 of the Subordination Deed.

6.3   MANDATORY PREPAYMENT - ADDITIONAL CIRCUMSTANCES

(a)   The Borrower shall be obliged to apply Available Cash to repay amounts
      then outstanding under the Loans in the following circumstances and at the
      following times (to be applied, in each case, pro rata against Tranche A
      Loans and Tranche B Loans and, in the case of each Tranche, pro rata
      against the Repayment Instalments):

      (i)   during the Primary Period, on each Repayment Date, the first such
            payment being made on the Amortisation Commencement Date; and

      (ii)  during the period commencing at the end of the Primary Period and
            ending on the Final Maturity Date, on each Repayment Date, provided
            always that in the event that the shares in the Borrower are the
            subject of an IPO which results in the Loans being partially prepaid
            in accordance with Clause 6.3(b) by at least one hundred million
            Dollars (US $100,000,000), then, notwithstanding this Clause 6.3(a)
            the Borrower shall have no obligation to apply Available Cash in the
            manner described in this Clause 6.3(a).

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<PAGE>

(b)   The Borrower shall be obliged to apply any cash proceeds of any IPO
      received by the Borrower (net of all costs and expenses incurred by the
      Group in connection with such IPO) as follows:

      (i)   first, the first fifty million Dollars (US$50,000,000) of such net
            cash proceeds shall be applied to prepay the Loans (the INITIAL IPO
            REPAYMENT); and

      (ii)  secondly, fifty (50) per cent. of the net cash proceeds in excess of
            the Initial IPO Repayment, shall be applied to prepay each of the
            Loans,

      in the case of (i) above, to be applied equally against Tranche A Loans
      and Tranche B Loans and, in the case of Tranche A, against Repayment
      Instalments in inverse order of maturity, and in the case of Tranche B,
      against Repayment Instalments in order of maturity and in the case of (ii)
      above, pro rata against the aggregate amounts outstanding under the
      Tranche A Loans and the Tranche B Loans, and pro rata against Repayment
      Instalments of each.

(c)   In the event that the shares in the Borrower are not the subject of an IPO
      which results in the Loans being partially prepaid by at least fifty
      million Dollars (US $50,000,000) within twelve (12) months of the date of
      this Agreement (the EQUITY PERIOD), the Borrower shall, after the expiry
      of the Equity Period, partially prepay the Loans by paying to the Facility
      Agent the sum of twenty-five million Dollars (US$25,000,000) (the EQUITY
      PAYMENT). The Borrower acknowledges and agrees to procure that the Equity
      Payment is funded either (i) through the provision by the Ultimate
      Shareholders of further equity contributions contributed on a several
      basis by the Ultimate Shareholders in the proportions set out in the
      Equity Claw Agreement, either from their own funds or from funds procured
      from third parties unconnected with the Borrower, or (ii) by Quintana or
      the Borrower raising financing (either debt or equity) which, if such
      financing is raised by the Borrower, is fully subordinated to the Loans on
      terms acceptable to the Facility Agent (acting on the instructions of the
      Majority Lenders). The Equity Payment shall be applied by the Facility
      Agent against Tranche B Loans, first against the second Tranche B
      Repayment Instalment and any surplus to be applied against remaining
      Repayment Instalments in inverse order of maturity. For the avoidance of
      doubt, such Equity Payment shall be reduced to the extent that the Tranche
      B Loans have been repaid from the proceeds of an IPO and shall not be
      required to be made if such repayment, in aggregate, is in an amount
      equivalent to the Equity Payment, and is made during the Equity Period.
      The payment due from the Borrower under this Clause 6.3(c) shall, once
      paid, satisfy the second Tranche B Repayment Instalment which falls due
      twelve (12) months from the date of this Agreement.

(d)   In the event that the actual aggregate charter rates for the Vessels
      (determined within fifteen (15) days of the date on which the Vessel Loan
      8 is made) do not meet or exceed the aggregate of the Predicted Charter
      Rates, the Borrower shall, in addition to, and at the same time as, paying
      the Equity Payment pursuant to Clause 6.3(c), partially prepay the Loans
      by paying to the Facility Agent an amount equal to the present value
      (determined using a discount rate of five (5) per cent per annum.) of the
      projected cash flow shortfall arising from the difference between the
      aggregate actual charter rates for the Vessels and the aggregate of the
      Predicted Charter Rates, subject to a maximum figure of twenty-five
      million Dollars (US$25,000,000) (the CHARTER SHORTFALL PAYMENT). The
      Charter Shortfall Payment shall be applied by the Facility Agent against
      Tranche A Loans, against Tranche A Repayment Instalments in inverse order
      of maturity. The Borrower acknowledges and agrees to procure that the
      Charter Shortfall Payment is funded either (i) through the provision by
      the Ultimate Shareholders of further equity contributions contributed on a
      several basis by the Ultimate Shareholders in the proportions set out in
      the Equity Claw Agreement, either from their own funds or from funds
      procured from third parties unconnected with the Borrower, or (ii) by
      Quintana or the Borrower raising financing (either debt or equity) which,
      if such

                                       29
<PAGE>

      financing is raised by the Borrower, is fully subordinated to the Loans on
      terms acceptable to the Facility Agent (acting on the instructions of the
      Majority Lenders). For the avoidance of doubt, the Charter Shortfall
      Payment shall not be payable to the extent that the Facility is made
      available by way of a single tranche following the giving of a combination
      notice pursuant to Clause 28 (Changes to Tranche A and Tranche B), nor
      shall it be payable unless the Equity Payment is also payable.

(e)   In the event that the Borrower receives from the Ultimate Shareholders (or
      any of them) sums in respect of the Equity Claw Agreement, the Borrower
      shall forthwith transfer such sums to the Security Trustee in order to
      reduce or, as the case may be, discharge its obligations under this Clause
      6.3.

6.4   MANDATORY PREPAYMENT - CHANGE OF CONTROL

(a)   The Obligors must promptly notify the Facility Agent if any of them
      becomes aware of a Change of Control.

(b)   After notification under paragraph (a) above or if the Facility Agent
      otherwise becomes aware of the same, the Facility Agent may (acting on the
      instructions of the Tranche A Majority Lenders), by notice to the Lenders
      and the Owners:

      (i)   cancel the Facility; and

      (ii)  declare all outstanding Loans to be promptly, and in any event
            within 60 days of such declaration, due and payable.

      Any such notice will take effect in accordance with its terms.

6.5   VOLUNTARY PREPAYMENT

      The Borrower shall be entitled to make a voluntary prepayment of the Loans
      in whole or in part provided that:

      (a)   a prepayment must be in a minimum amount of two million Dollars
            (US$2,000,000) and in multiples of one million Dollars
            (US$1,000,000); and

      (b)   the Borrower gives not less than three (3) Business Days prior
            notice to the Facility Agent; and

      (c)   where such prepayment occurs on a day other than the last Business
            Day of the Term, the Borrower pays any Break Costs arising from the
            prepayment.

      Any such prepayment shall be applied to reduce Tranche A Loans and Tranche
      B Loans on a pro rata basis applied (in each case) against Repayment
      Instalments pro rata across such instalments.

6.6   AUTOMATIC CANCELLATION

(a)   The Commitment of each of the Lenders, in respect of a Loan, will be
      automatically cancelled in the following circumstances:

      (i)   at the end of the Availability Period; or

      (ii)  at the close of business on the Delivery Date following the advance
            of the relevant Drawing; or

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<PAGE>

      (iii) if the Memorandum of Agreement relating to that Vessel is
            terminated, on the date of its termination,

      provided that in the event that a Memorandum of Agreement terminates, the
      Borrower will have the option, exercisable within fifteen (15) Business
      Days of the Memorandum of Agreement terminating, to substitute a vessel,
      such vessel to be acceptable to the Facility Agent (acting on the
      instructions of the Lenders, such instructions to be provided by the
      Lenders acting reasonably) and, in such event, the Commitments of the
      Lenders shall be restored.

6.7   VOLUNTARY PREPAYMENT AND CANCELLATION

(a)   If the Borrower is, or will be, required to pay to a Lender a Tax Payment
      or an Increased Cost, the Borrower may, while the requirement continues,
      give notice to the Facility Agent requesting prepayment and cancellation
      in respect of that Lender.

(b)   After notification under paragraph (a) above:

      (i)   the Borrower must repay or prepay that Lender's share in each Loan
            made to it on the date specified in paragraph (c) below; and

      (ii)  the Commitment of that Lender will be immediately cancelled.

(c)   The date for repayment or prepayment of a Lender's share in a Loan(s) will
      be the last Business Day of the current Term for the relevant Loan or, if
      earlier, the date specified by the Borrower in the notice delivered to the
      Facility Agent.

(d)   In the event that the Borrower voluntarily prepays or cancels any part of
      the Loans in accordance with this Clause 6.7 (Voluntary prepayment and
      cancellation), the Facility Agent shall replace the relevant Repayment
      Schedule attached at Schedule 6 with a new Repayment Schedule reflecting
      the correct Repayment Instalments and correct Repayment Dates and promptly
      provide a copy thereof to the Borrower and the Lenders.

6.8   PARTIAL PREPAYMENT OF LOANS

(a)   Except where this Clause 6 expressly provides otherwise any partial
      prepayment of the Loans will be applied against the remaining Repayment
      Instalments in respect of the Loans in inverse order of maturity, on a pro
      rata basis, and shall be applied in accordance with the terms of the
      notice provided to the relevant Lenders pursuant to Clause 6.5.

(b)   Upon any such partial prepayment, the Facility Agent shall replace the
      relevant Repayment Schedule attached at Schedule 6 with a new Repayment
      Schedule reflecting the correct Repayment Instalments and promptly provide
      a copy thereof to the Borrower and to the Lenders.

(c)   No amount of the Loans prepaid under this Agreement may subsequently be
      re-borrowed.

6.9   MISCELLANEOUS PROVISIONS

(a)   Any notice of prepayment and/or cancellation under this Agreement is
      irrevocable and must specify the relevant date(s).

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<PAGE>

(b)   All prepayments under this Agreement must be made with accrued interest on
      the amount prepaid. All prepayments shall also be subject to Break Costs
      in respect of any amounts prepaid to the Lenders.

(c)   No prepayment or cancellation is allowed except in accordance with the
      express terms of this Agreement.

7.    INTEREST

7.1   CALCULATION OF INTEREST

(a)   The rate of interest on each Loan for each Term shall be:

      (i)   in respect of a Tranche A Loan, the percentage rate per annum equal
            to the aggregate of:

            (A)   LIBOR; and

            (B)   Tranche A Margin; and

            (C)   Mandatory Cost (together, the TRANCHE A INTEREST RATE); and

      (ii)  in respect of a Tranche B Loan, the percentage rate per annum equal
            to the aggregate of:

            (A)   LIBOR; and

            (B)   Tranche B Margin; and

            (C)   Mandatory Cost (together, the TRANCHE B INTEREST RATE).

(b)   Interest shall be calculated by reference to the actual number of days
      elapsed and on the basis of a year of 360 days. Interest shall accrue from
      and including the first day of each Term to but excluding the last day of
      such Term.

7.2   PAYMENT OF INTEREST

      Except where it is provided to the contrary in this Agreement, the
      Borrower must pay accrued interest on each Loan on the last Business Day
      of each Term.

7.3   INTEREST ON OVERDUE AMOUNTS

(a)   If the Borrower fails to pay any amount payable by it under the Finance
      Documents, it must immediately on demand by the Facility Agent pay
      interest on the overdue amount from its due date up to the date of actual
      payment, both before, on and after judgment.

(b)   If the overdue amount is a principal amount of a Tranche A Loan or is an
      amount accruing in respect of interest on a Tranche A Loan and becomes due
      and payable prior to the last day of its current Term, then:

      (i)   the first Term for that overdue amount will be the unexpired portion
            of that Term and the rate of interest on the overdue amount for that
            first Term will be two (2) per cent. per annum above the Tranche A
            Interest Rate; and

                                       32
<PAGE>

      (ii)  thereafter, any subsequent Terms for that overdue amount shall be
            selected by the Facility Agent (acting on the instructions of the
            Tranche A Lenders, acting reasonably) who may select successive
            Terms of any duration of up to six (6) months, and the rate of
            interest on the overdue amount for those Terms will be two (2) per
            cent. per annum above the Tranche A Interest Rate.

(c)   If the overdue amount is a principal amount of a Tranche B Loan or is an
      amount accruing in respect of interest on a Tranche B Loan and becomes due
      and payable prior to the last day of its current Term, then:

      (i)   the first Term for that overdue amount will be the unexpired portion
            of that Term and the rate of interest on the overdue amount for that
            first Term will be two (2) per cent. per annum above the Tranche B
            Interest Rate; and

      (ii)  thereafter, any subsequent Terms for that overdue amount shall be
            selected by the Facility Agent (acting on the instructions of the
            Tranche B Lenders, acting reasonably) who may select successive
            Terms of any duration of up to six (6) months, and the rate of
            interest on the overdue amount for those Terms will be two per cent.
            per annum above the Tranche B Interest Rate.

(d)   In respect of any amounts outstanding other than in accordance with
      paragraph (b) and (c) above, interest on such overdue amount is payable at
      a rate determined by the Facility Agent to be two and a half (2.5) per
      cent. per annum above the Facility Agent's Prime Rate and the Facility
      Agent shall be entitled to compound any accrued but unpaid interest on a
      quarterly basis.

(e)   Interest (if unpaid) on an overdue amount will be compounded with that
      overdue amount at the end of each of its Terms but will remain immediately
      due and payable.

7.4   NOTIFICATION OF RATES OF INTEREST

      The Facility Agent must promptly notify each relevant Party of the
      determination of a rate of interest under this Agreement.

8.    TERMS

8.1   SELECTION

(a)   Each Loan has successive Terms.

(b)   The Borrower must select the first Term for a Loan in the relevant Request
      and each subsequent Term in an irrevocable notice received by the Facility
      Agent not later than 11.00 a.m. one (1) Business Day before the Rate
      Fixing Day for that Term. Each Term for a Loan will start on its
      Utilisation Date or on the expiry of its preceding Term. If the Borrower
      fails to select a Term for an outstanding Loan under this paragraph (b),
      that Term will, subject to the other provisions of this Clause, be three
      (3) months.

(c)   Each Term shall be of a period of one (1), two (2), three (3) or six (6)
      months or, to the extent available and agreed by all Lenders, nine (9) or
      twelve (12) months subject always to the provisions of Clauses 8.1(d),
      8.2, 8.3 and 8.4. When making an election in respect of the Term of a
      Loan, the Borrower must make the same election in respect of all of the
      Loans then outstanding.

(d)   Notwithstanding the provisions of Clause 8.1(c), prior to the earlier of
      (i) ninety (90) days after the date of this Agreement and (ii) the date on
      which the Arranger shall determine in its sole discretion that the

                                       33
<PAGE>

      primary syndication of the Facility has been completed, each Term shall be
      for a period of one (1) month.

8.2   NO OVERRUNNING 30TH SEPTEMBER, 2005

      If a Term commencing prior to 30th September, 2005 would otherwise overrun
      30th September, 2005, it will be shortened so that it ends on or before
      30th September, 2005 and each subsequent Term shall commence on the last
      day of the previous Term and end on a Repayment Date.

8.3   NO OVERRUNNING THE FINAL MATURITY DATE

      If a Term would otherwise overrun the Final Maturity Date, it will be
      shortened so that it ends on the Final Maturity Date.

8.4   OTHER ADJUSTMENTS

      The Facility Agent and the Borrower may enter into such other arrangements
      as they may agree for the adjustment of Terms and the consolidation and/or
      splitting of Loans.

9.    MARKET DISRUPTION

9.1   FAILURE OF THE REFERENCE BANK TO SUPPLY A RATE

      If LIBOR is to be calculated by reference to the Reference Banks but if
      the Reference Banks are unable to supply a rate by 12.00 p.m. on the Rate
      Fixing Day, the applicable LIBOR will be calculated in accordance with
      Clause 9.2.

9.2   MARKET DISRUPTION

(a)   A market disruption event shall arise where,

      (i)   no, or, following the end of the primary syndication, only one,
            Reference Bank supplies a rate by 12.00 p.m. on the Rate Fixing Day;
            or

      (ii)  the Facility Agent receives by close of business on the Rate Fixing
            Day notification from any Lender or Lenders whose aggregate shares
            in the relevant Loan exceed forty (40) per cent. of that Loan that
            the cost to them of obtaining matching deposits in the relevant
            interbank market is in excess of LIBOR for the relevant Term.

(b)   The Facility Agent must promptly notify the Borrower and the Lenders of a
      market disruption event.

(c)   After notification under paragraph (b) above, the rate of interest on the
      affected Loan for the relevant Term will be the aggregate of the
      applicable:

      (i)   the Tranche A Margin or the Tranche B Margin (as the case may be);
            and

      (ii)  the rate notified to the Facility Agent by those Lenders as soon as
            practicable, and in any event before interest is due to be paid in
            respect of that Term, to be that which expresses as a percentage
            rate per annum the cost to those Lenders of funding the Tranche B
            Loan or the Tranche A Loan from whatever source it may reasonably
            select; and

                                       34
<PAGE>

      (iii) Mandatory Cost.

9.3   ALTERNATIVE BASIS OF INTEREST OR FUNDING

(a)   If a market disruption event occurs and the Facility Agent or the Borrower
      so require, the Borrower and the Facility Agent must enter into
      negotiations for a period of not more than thirty (30) days with a view to
      agreeing an alternative basis for determining the rate of interest and/or
      funding for the affected Loan and any future Loan.

(b)   Any alternative basis agreed will be with the prior written consent of all
      the Lenders, binding on all the Parties hereto.

10.   TAXES

10.1  TAX GROSS-UP

(a)   Each Obligor must make all payments to be made by it under the Finance
      Documents without any Tax Deduction, unless a Tax Deduction is required by
      an Applicable Law.

(b)   If a Tax Deduction is required by an Applicable Law to be made by an
      Obligor or, as the case may be the Facility Agent, then, except as
      otherwise provided in a Finance Document, the amount of the payment due
      from the Obligor under the Finance Documents will be increased, or as the
      case may be the Obligor shall make an additional payment, so that the
      amount (after making the Tax Deduction) received by the recipient is equal
      to the payment which would have been due if no Tax Deduction had been
      required.

(c)   If an Obligor is required to make a Tax Deduction, that Obligor must make
      the minimum Tax Deduction and must make any payment required in connection
      with that Tax Deduction within the time allowed by the Applicable Law.

(d)   Within 30 days of making either a Tax Deduction or a payment required in
      connection with a Tax Deduction the Obligor making that Tax Deduction or
      payment must deliver to the Facility Agent for the relevant Finance Party,
      an original receipt (or other evidence thereof) reasonably satisfactory to
      that Finance Party that the Tax Deduction has been made or (as applicable)
      the appropriate payment has been paid to the relevant taxing authority.

10.2  TAX INDEMNITY

      Without prejudice to the provisions of Clause 10.1 (Tax Gross Up), and
      except as otherwise provided in a Finance Document if any Lender or the
      Facility Agent or the Security Trustee is required to make any payment on
      account of Tax solely as a result of its entry into any Finance Document
      (not being a Tax imposed on the net income of any of the foregoing or its
      Facility Office by the jurisdiction in which it is incorporated or managed
      and controlled or was formerly incorporated or managed and controlled
      (save where such incorporation, or, as the case may be, management or
      control would not have arisen but for the entry by any Lender, the
      Facility Agent or the Security Trustee into the Finance Documents and/or
      the location of any Vessel in that jurisdiction), the jurisdiction or in
      which its Facility Office is presently or was formerly located or on the
      capital of that Lender employed in such jurisdiction or jurisdictions) on
      any sum received or receivable under the Finance Documents (including,
      without limitation, any sum received or receivable under this Clause 10.2)
      or any liability in respect of any such payment is asserted, imposed,
      levied or assessed against a Lender or the Facility Agent or the Security
      Trustee, the relevant

                                       35
<PAGE>

      Obligor shall, upon demand of the Facility Agent promptly indemnify that
      Lender or the Facility Agent or the Security Trustee against such payment
      or liability, together with any expenses payable or incurred in connection
      therewith.

10.3  TAX CREDIT

      If an Obligor makes a Tax Payment and the relevant Finance Party
      determines in its absolute discretion that:

      (a)   a Tax Credit is attributable to that Tax Payment (or is attributable
            to the Tax Deduction or payment that gave rise to such Tax Payment);
            and

      (b)   that Finance Party or an Affiliate has obtained, utilised and fully
            retained that Tax Credit on an affiliated group basis,

      the Finance Party shall pay an amount to the Obligor which that Finance
      Party determines in its absolute discretion will leave it (after that
      payment) in the same after-Tax position as it would have been in, had the
      Tax Payment not been made by the Obligor.

10.4  CONFIDENTIALITY OF TAX AFFAIRS

      If a Lender intends to make a claim pursuant to Clause 10.2 (Tax
      Indemnity) it shall, as soon as reasonably practicable after becoming
      aware that it may be entitled to make a claim under Clause 10.2, notify
      the Facility Agent of the event by reason of which it is entitled to do
      so, provided that nothing herein shall require that Lender to disclose any
      confidential information relating to the organisation of its affairs.

10.5  STAMP TAXES

      The Borrower must pay and indemnify each Finance Party against any stamp
      duty, registration or other similar Tax payable by a Finance Party in
      connection with the entry into, performance or enforcement of any Finance
      Document, except for any such Tax payable in connection with entering into
      a Transfer Certificate.

10.6  VALUE ADDED TAXES

      Any amount (including costs and expenses) payable under a Finance Document
      by an Obligor is exclusive of any value added tax or any other Tax of a
      similar nature which might be chargeable in connection with that amount.
      If any such Tax is chargeable and required to be collected by a Finance
      Party, the Obligor must pay to the relevant Finance Party (in addition to
      and at the same time as paying that amount) an amount equal to the amount
      of that Tax.

10.7  TAX FORMS

(a)   On or prior to the date of its execution and delivery of this Agreement in
      the case of the Original Lender and on or prior to the Transfer Date
      pursuant to which it becomes a Lender in the case of each other Lender,
      and from time to time thereafter as reasonably requested in writing by an
      Obligor or the Facility Agent (but only so long as such Lender remains
      lawfully able to do so), each Lender and each other Finance Party shall
      provide each of the Obligor and the Facility Agent with any Tax Forms
      reasonably demanded by such Obligor or Facility Agent, with any such Tax
      Form to be accurate and completed in a

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      manner reasonably satisfactory to the requesting party and to be executed
      and to be delivered with any reasonably required certification.

(b)   Notwithstanding Clauses 10.1 and 10.2, to the extent a Tax Deduction or
      payment in respect of Tax would not have been due as a result of a payment
      hereunder or pursuant to any Finance Document but for the failure of any
      Lender or other Finance Party to provide a complete and accurate Tax Form
      required to be provided pursuant to this Clause 10.7, then to such extent
      no Obligor shall be required to make a Tax Payment otherwise required
      under Clauses 10.1 or 10.2; provided, however, that should a Lender or
      other Finance Party become subject to a Tax Deduction or payment in
      respect of Tax because of its failure to deliver a Tax Form required
      hereunder, the Obligor shall take such steps as the Lender shall
      reasonably request to assist the Lender to recover such Tax Deduction or
      payment in respect of Tax.

11.   INCREASED COSTS

11.1  INCREASED COSTS

      Except as provided below in this Clause 11, the Borrower must pay to a
      Finance Party the amount of any Increased Cost incurred by that Finance
      Party its Subsidiaries or Affiliates as a result of:

      (a)   the introduction of, or any change in, or any change in the
            interpretation or application of, any law or regulation; or

      (b)   compliance with any law or regulation,

      made after the date of this Agreement.

11.2  EXCEPTIONS

      The Borrower need not make any payment for an Increased Cost to the extent
      that the Increased Cost is:

      (a)   compensated for under another Clause or would have been but for an
            exception to that Clause;

      (b)   a Tax on the overall net income of the relevant Finance Party or its
            Facility Office or any of its Subsidiaries, or Affiliates; or

      (c)   attributable to the relevant Finance Party or any of its
            Subsidiaries, or any of its Affiliates, wilfully failing to comply
            with any law or regulation.

11.3  CLAIMS

      If a Finance Party intends to make a claim for an Increased Cost it must
      notify the Borrower promptly of the circumstances giving rise to, and the
      amount of, the claim.

11.4  MITIGATION

(a)   Each Finance Party must, in consultation with the Borrower, use its best
      endeavours to mitigate any circumstances which arise and which result or
      would result in any Increased Cost being payable to that Finance Party.

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(b)   The Borrower must indemnify that Finance Party for all costs and expenses
      reasonably incurred by that Finance Party as a result of any step taken by
      it under Clause 11.4(a) above.

(c)   A Finance Party is not obliged to take any step under this subclause if,
      in the opinion of that Finance Party (acting reasonably), to do so might
      be prejudicial to it.

12.   RESERVE, CHARTER AND OPERATING ACCOUNTS

12.1  MAINTENANCE OF ACCOUNTS

      The Borrower shall maintain the Reserve Account and shall procure that
      Quintana Management shall maintain the Operating Account and each of the
      Owners shall maintain their respective Charter Accounts with the relevant
      Account Bank until the Final Maturity Date, free of Security Interests
      (other than Permitted Security Interests) and rights of set-off other than
      as created by or pursuant to the Security Documents.

      The Borrower shall procure that Quintana Management and each Owner procure
      that all Earnings and any Requisition Compensation for the relevant Vessel
      are paid by the relevant Charterer or other third party payer directly
      into the relevant Owner's Charter Account.

12.2  TRANSFERS TO OPERATING ACCOUNT

      The Borrower shall procure that, upon receipt by the Owners into the
      respective Charter Accounts of any amounts representing Earnings or
      Requisition Compensation for the relevant Vessel, the relevant Owner
      transfers from the relevant Charter Account to the Operating Account, and
      irrevocably authorises the Facility Agent to instruct the relevant Account
      Bank to transfer from the relevant Charter Account to the Operating
      Account, all sums then standing to the credit of the Charter Accounts,
      such transfer to take place in any event not less than twice every
      calendar month whilst the relevant Vessel is under charter.

12.3  TRANSFERS TO RESERVE ACCOUNT

(a)   From 1st October, 2005 until the occurrence of an IPO, the Borrower shall
      procure that, on the last Business Day of each month, there is transferred
      from the Operating Account (an EARNINGS TRANSFER DATE), and irrevocably
      authorises the Facility Agent to instruct the relevant Account Bank to
      transfer from the Operating Account to the Reserve Account, all amounts
      standing to the credit of the Operating Account after deduction of:

      (i)   Operating Expenses due and payable during the next thirty (30) days;
            and

      (ii)  for each Earnings Transfer Date that has occurred since 1st October,
            2005 or if later, since the last anniversary of 1st October, 2005,
            an amount equal to one-twelfth of the annual dividend permitted in
            accordance with Clause 18.31 (Dividends) provided always that on any
            Earnings Transfer Date not more than one half of the annual dividend
            so permitted may be deducted.

(b)   In respect of the Loans, following the occurrence of an IPO, the Borrower
      shall procure that there is transferred from the Operating Account on the
      last Business Day of each month (an EARNINGS TRANSFER DATE), and
      irrevocably authorises the Facility Agent to instruct the Account Bank to
      transfer from the Operating Account to the Reserve Account, after
      deduction of Operating Expenses due and payable during the next thirty
      (30) days, an amount calculated in accordance with the following formula:

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            a     =   (A x n/N) + (A1 x n1/N1)

            where:

            a  =  the relevant amount of the Earnings and/or, as the case may
                  be, Requisition Compensation to be transferred to the Reserve
                  Account out of the Operating Account in respect of the Loans;

            A  =  the amount required to repay the principal instalment
                  repayable on the next Repayment Date in respect of the Loans;

            n  =  the actual number of days elapsed from (and including) the
                  immediately preceding Earnings Transfer Date in the Retention
                  Period or, where there is no preceding Earnings Transfer Date
                  in a Retention Period, the first day of the Retention Period,
                  up to (but excluding) the Earnings Transfer Date;

            N  =  the number of days in a Retention Period;

            A1 =  the amount required to pay the interest repayable at the end
                  of the then current Term in respect of the Loans;

            n1 =  the actual number of days elapsed from (and) including the
                  immediately preceding Earnings Transfer Date in the current
                  Terms (or, if there is no Earnings Transfer Date in the
                  current Terms the first day of the current Terms) up to (but
                  excluding) that Earnings Transfer Date; and

            N1 =  the number of days from the end of the last Terms in respect
                  of the Loans to the end of the then current Terms in respect
                  of the Loans.

            PROVIDED ALWAYS that on the last Earnings Transfer Date for a
            Retention Period or a Term, if there remains a shortfall on the last
            day of a Retention Period or a Term, there shall be transferred to
            the Reserve Account out of the Operating Account an amount (taking
            into account the existing balance of the Reserve Account) required
            to repay the principal and interest (in the case of a Retention
            Period and interest in the case of a Term) payable in respect of the
            Loans on the next Repayment Date or, as the case may be, the last
            day of the current Term for the Loans or, as the case may be, the
            Final Maturity Date in full.

(c)   Any sums remaining in the Operating Account following the payment of
      Operating Expenses and the transfer of funds to the Reserve Account in
      accordance with Clause 12.3 (a) or (b) may be used by the Borrower to pay
      a pro rata share of dividends, provided that such dividends shall only be
      paid to the extent and at the times that they are permitted in accordance
      with the provisions of Clause 18.31.

12.4  ADDITIONAL PAYMENTS TO RESERVE ACCOUNT

      If for any reason the amount standing to the credit of the Operating
      Account on an Earnings Transfer Date shall be insufficient to make any
      transfer to the Reserve Account required by Clause 12.3, the Borrower
      shall, without demand, procure that there is credited to the Reserve
      Account, within five (5) Business Days of the date on which the relevant
      amount would have been transferred from the Operating Account, an amount
      equal to the amount of the shortfall provided that a failure to transfer
      the amounts required pursuant to Clause 12.3 (other than the transfer
      required pursuant to the proviso to Clause

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      12.3(b)) shall not be deemed to be an Event of Default (for the avoidance
      of doubt, it is acknowledged by the Borrower that a failure to effect the
      transfer referred to in the proviso to Clause 12.3(b) shall be a payment
      Event of Default falling within Clause 20.2).

12.5  APPLICATION OF RESERVE ACCOUNT

      The Borrower shall procure that a transfer is made from the Reserve
      Account to the Facility Agent in respect of each Loan:

      (a)   on each Repayment Date for that Loan, of the amount of the Repayment
            Instalment for that Loan then due; and

      (b)   on the last day of each Term of that Loan, of an aggregate amount
            equal to the amount of interest calculated in accordance with Clause
            7.1(a)(i) then due on that Loan.

      On each day that the Borrower is required to make a payment under Clause
      6.3(a), the Borrower shall procure that a transfer is made from the
      Reserve Account to satisfy such payment obligations.

12.6  BORROWER'S OBLIGATIONS NOT AFFECTED

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

12.7  RESTRICTION ON WITHDRAWAL

      During the term of the Facility, each of the Borrower, Quintana Management
      and the Owners shall only be permitted to withdraw sums from the Operating
      Account, the Charter Accounts and the Reserve Account in accordance with
      the provisions of this Clause 12.

12.8  RELEASE OF MONIES FROM THE OPERATING ACCOUNT

      At any time during the term of the Facility, Quintana Management shall be
      entitled to transfer amounts standing to the credit of the Operating
      Account in order to pay:

      (a)   Operating Expenses incurred; and

      (b)   dividends permitted in accordance with Clause 18.31.

13.   PAYMENTS

13.1  PLACE

(a)   Unless a Finance Document specifies that payments under it are to be made
      in another manner, all payments by a Party (other than the Facility Agent)
      under the Finance Documents must be made to the Facility Agent to its
      account no. 10963054 with Citibank, N.A., New York or such other account
      in the United States of America as it may notify to that Party for this
      purpose by not less than five Business Days' prior notice.

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<PAGE>

(b)   Notwithstanding paragraph (a) above, any payment to be made under the
      Finance Documents by the Facility Agent to a Lender shall be made in
      accordance with that Lender's Standing Payment Instruction.

13.2  FUNDS

      Payments under the Finance Documents to the Facility Agent must be made
      for value on the due date at such times and in such funds as the Facility
      Agent may specify to the Party concerned as being customary at the time
      for the settlement of transactions in the relevant currency in the place
      for payment.

13.3  DISTRIBUTION

(a)   The Facility Agent or the Security Trustee may apply any amount received
      by it from any of the Obligors in or towards payment (on the date and in
      the currency and funds of receipt) of any amount due from the Obligors
      under the Finance Documents or in or towards the purchase of any amount of
      any currency to be so applied.

(b)   Where a sum is paid to the Facility Agent under this Agreement for another
      Party, the Facility Agent is not obliged to pay that sum to that Party
      until it has established that it has actually received it. However, the
      Facility Agent may assume that the sum has been paid to it, and, in
      reliance on that assumption, make available to that Party a corresponding
      amount. If it transpires that the sum has not been received by the
      Facility Agent, that Party must immediately on demand by the Facility
      Agent refund any corresponding amount made available to it together with
      interest on that amount from the date of payment to the date of receipt by
      the Facility Agent at a rate calculated by the Facility Agent to reflect
      its cost of funds.

(c)   For the purposes of this Clause 13 STANDING PAYMENT INSTRUCTION means:

      (i)   in relation to a Lender which is a Lender on the date of this
            Agreement, payment instructions set below the name of that Lender in
            Schedule 8; or

      (ii)  in relation to a Lender which becomes a Lender after the date of
            this Agreement, payment instructions set out in the Transfer
            Certificate to which that Lender is a party,

      or such other payment instructions the Lender may notify to the Facility
      Agent by not less than five (5) Business Days' notice.

(d)   If, upon receipt by the Facility Agent of any amount due from any of the
      Obligors in or towards payment of any amount due to the Finance Parties
      under the Finance Documents, the Facility Agent fails to make such payment
      on the date of receipt for value on that date (or, if due to technical
      reasons it is impossible for the Facility Agent to make such payment on
      and for value on the date of receipt, on and for value on the next
      Business Day) then it shall pay to such Finance Party or Finance Parties
      that overdue amount with interest from the due date up to the date of
      actual payment and value, both before, on and after judgment. The rate to
      be applied in respect of such overdue amount shall be calculated at the
      Facility Agent's internally derived overnight LIBID rate.

13.4  CURRENCY

      All amounts payable under the Finance Documents are payable in Dollars
      provided always that amounts payable in respect of costs and expenses are
      payable in the currency in which those costs and expenses are incurred.

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13.5  NO SET-OFF OR COUNTERCLAIM

      All payments made by an Obligor under the Finance Documents must be made
      without set-off or counterclaim.

13.6  BUSINESS DAYS

(a)   If a payment under the Finance Documents is due on a day which is not a
      Business Day, the due date for that payment will instead be the next
      Business Day in the same calendar month (if there is one) or the preceding
      Business Day (if there is not).

(b)   During any extension of the due date for payment of any principal under
      this Agreement interest is payable on that principal at the rate payable
      on the original due date.

13.7  PAYMENTS

(a)   If any Administrative Party receives a payment insufficient to discharge
      all the amounts then due and payable by the Obligors under the Finance
      Documents, then, except to the extent otherwise provided in any Finance
      Document all the proceeds of the enforcement of the security conferred by
      the Security Agreements, shall be applied by the Administrative Party
      towards the obligations of the Obligors under the Finance Documents as set
      out in the Subordination Deed.

(b)   This Subclause will override any appropriation made by an Obligor.

13.8  TIMING OF PAYMENTS

      If a Finance Document does not provide for when a particular payment is
      due, that payment will be due within three Business Days of demand by the
      relevant Finance Party.

14.   GUARANTEE AND INDEMNITY

14.1  GUARANTEE AND INDEMNITY

      Each of the Guarantors irrevocably, unconditionally and jointly and
      severally:

      (a)   as principal obligor guarantees to each Finance Party punctual
            performance by the Borrower of all its obligations under the Finance
            Documents;

      (b)   undertakes with each Finance Party that, whenever the Borrower does
            not pay any amount when due under any Finance Document, such
            Guarantor must immediately on demand by the Facility Agent pay that
            amount as if they were the principal obligor; and

      (c)   indemnifies each Finance Party immediately on demand against any
            loss or liability suffered by that Finance Party (i) if any
            obligation guaranteed by it is or becomes unenforceable, invalid or
            illegal or (ii) by operation of law. The amount of the loss or
            liability under this indemnity will be equal to the amount that
            Finance Party would otherwise have been entitled to recover.

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<PAGE>

14.2  CONTINUING GUARANTEE

      This guarantee is a continuing guarantee and will extend to the ultimate
      balance of all sums payable by the Borrower under the Finance Documents,
      regardless of any intermediate payment or discharge in whole or in part.

14.3  REINSTATEMENT

(a)   If any discharge (whether in respect of the obligations of an Obligor or
      any security for those obligations or otherwise) or arrangement is made in
      whole or in part on the faith of any payment, security or other
      disposition which is avoided or must be restored on insolvency,
      liquidation or otherwise without limitation, the liability of the
      Guarantors under this Clause 14 will continue as if the discharge or
      arrangement had not occurred.

(b)   Each Finance Party may concede or compromise any claim that any payment,
      security or other disposition is liable to avoidance or restoration.

14.4  WAIVER OF DEFENCES

      The obligations of the Guarantors under this Clause will not be affected
      by any act, omission or thing which, but for this provision, would reduce,
      release or prejudice any of its obligations under this Clause 14 (whether
      or not known to it or any Finance Party). This includes:

      (a)   any time or waiver granted to, or composition with, any person;

      (b)   any release of any person under the terms of any composition or
            arrangement;

      (c)   the taking, variation, compromise, exchange, renewal or release of,
            or refusal or neglect to perfect, take up or enforce, any rights
            against, or security over assets of, any person;

      (d)   any non-presentation or non-observance of any formality or other
            requirement in respect of any instrument or any failure to realise
            the full value of any security;

      (e)   any incapacity or lack of power, authority or legal personality of
            or dissolution or change in the members or status of any person;

      (f)   any amendment (however fundamental) of a Finance Document or any
            other document or security; or

      (g)   any unenforceability, illegality, invalidity or non-provability of
            any obligation of any person under any Finance Document or any other
            document or security.

14.5  IMMEDIATE RECOURSE

      Each of the Guarantors waives any right it may have of first requiring any
      Finance Party (or any trustee or agent on its behalf) to proceed against
      or enforce any other right or security or claim payment from any person
      before claiming from the Guarantors under this Clause.

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<PAGE>

14.6  APPROPRIATIONS

      Until all amounts which may be or become payable by the Obligors under the
      Finance Documents have been irrevocably paid in full, each Finance Party
      (or any trustee or agent on its behalf) may:

      (a)   without affecting the liability of the Guarantors under this Clause:

            (i)   refrain from applying or enforcing any other moneys, security
                  or rights held or received by that Finance Party in respect of
                  those amounts; or

            (ii)  apply and enforce them in such manner and order as it sees fit
                  (whether against those amounts or otherwise); and

      (b)   hold in an interest-bearing suspense account any moneys received
            from the Guarantors or on account of each of the Guarantors'
            liability under this Clause.

14.7  NON-COMPETITION

      Unless:

      (a)   all amounts which may be or become payable by the Obligors under the
            Finance Documents have been irrevocably paid in full; or

      (b)   the Facility Agent otherwise directs,

      the Guarantors shall not, after a claim has been made or by virtue of any
      payment or performance by it under this Clause:

      (i)   be subrogated to any rights, security or moneys held, received or
            receivable by any Finance Party (or any trustee or agent on its
            behalf);

      (ii)  be entitled to any right of contribution or indemnity in respect of
            any payment made or moneys received on account of the Guarantors'
            liability under this Clause;

      (iii) claim, rank, prove or vote as a creditor of any of the Obligors or
            its estate in competition with the Lender; or

      (iv)  receive, claim or have the benefit of any payment, distribution or
            security from or on account of any of the Obligors, or exercise any
            right of set-off as against any of the Obligors.

      The Guarantors must hold in trust for and immediately pay or transfer to
      the Facility Agent for the Finance Parties any payment or distribution or
      benefit of security received by either of them contrary to this Clause or
      in accordance with any directions given by the Facility Agent under this
      Clause.

14.8  ADDITIONAL SECURITY

      This guarantee is in addition to and is not in any way prejudiced by any
      other security now or subsequently held by any Finance Party.

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15.   REPRESENTATIONS

15.1  REPRESENTATIONS

      The representations set out in this Clause are made, unless otherwise
      stated, by each of the Obligors or (if it so states) any one of them to
      the Finance Parties.

15.2  STATUS

(a)   With respect to the Borrower it is a corporation, duly incorporated and
      validly existing under the laws of its jurisdiction of incorporation and
      with respect to each of the Guarantors it is a limited liability company,
      duly formed and validly existing under the laws of its jurisdiction of
      formation.

(b)   It and each of its Subsidiaries, if any, has the power to own its assets
      and carry on its business as it is being conducted.

(c)   With respect to the Borrower and each of the Guarantors, it is directly
      wholly owned by the Shareholder other than, in the case of the Borrower,
      following an IPO or a Permitted Sale.

(d)   With respect to Quintana, it is directly owned by the Shareholder, and the
      Shareholder holds (subject to the occurrence of a Permitted Sale) at least
      ninety-six (96) per cent. of its issued share capital.

15.3  POWERS AND AUTHORITY

      It has the power to enter into and perform, and has taken all necessary
      action to authorise the entry into and performance of, the Finance
      Documents to which it is or will be a party and the transactions
      contemplated by those Finance Documents.

15.4  LEGAL VALIDITY

      Subject to any general principles of law limiting its obligations and
      referred to in any legal opinion required under this Agreement, each
      Finance Document to which it is a party is its legally binding, valid and
      enforceable obligation.

15.5  NON-CONFLICT

      The entry into and performance by it of, and the transactions contemplated
      by, the Finance Documents to which it is a party do not conflict with:

      (a)   any law or regulation applicable to it;

      (b)   its or any of its Subsidiaries' constitutional documents; or

      (c)   any document which is binding upon it or any of its Subsidiaries or
            any of its or its Subsidiaries' assets.

15.6  NO DEFAULT

(a)   No Default is outstanding or will result from the execution of, or the
      performance by it of any transaction contemplated by, any Finance
      Document; and

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(b)   No other event is outstanding which constitutes a default under any
      document which is binding on it or any of its Subsidiaries or any of its
      or its Subsidiaries' assets to an extent or in a manner which is
      reasonably likely to have a Material Adverse Effect.

15.7  AUTHORISATIONS

      Except for the registration of:

      (a)   the Mortgages and the Junior Mortgages and the relevant Vessel at
            the Marshall Islands Ships Registry;

      (b)   any relevant Security Agreement under the Companies Act 1985,

      all authorisations required by it in connection with the entry into,
      performance, validity and enforceability of, and the transactions
      contemplated by, the Finance Documents have been obtained or effected (as
      appropriate) and are in full force and effect.

15.8  FINANCIAL STATEMENTS

      In respect of the Borrower, its audited consolidated financial statements
      most recently delivered to the Facility Agent ( or, until the delivery of
      the first audited financial statements, the Original Balance Sheet)
      together with any other financial information supplied to the Facility
      Agent by the Obligors:

      (a)   have been prepared in accordance with accounting principles and
            practices generally accepted in its jurisdiction of incorporation,
            consistently applied; and

      (b)   fairly represent its financial condition (consolidated, if
            applicable) as at the date to which they were drawn up,

      except, in each case, as disclosed to the contrary in those financial
      statements or other information.

15.9  NO MATERIAL ADVERSE CHANGE

      There has been no material adverse change in the business, condition
      (financial or otherwise) or operations of the Group, taken as a whole,
      since the date of this Agreement.

15.10 LITIGATION

      No litigation, investigation, arbitration or administrative proceedings of
      or before any court, arbitral body or agency (including, but not limited
      to, investigative proceedings) which might reasonably be expected to have
      a Material Adverse Effect have (to the best of its knowledge and belief)
      been started or threatened against the Obligors or any of them.

15.11 PROVISION OF INFORMATION

      All information (as supplemented from time to time), other than financial
      projections which are addressed in the next sentence, that has been or
      will hereafter be made available to the Finance Parties by the Obligors or
      any of their representatives in connection with the transactions
      contemplated hereby, is and will at the time it is provided be complete
      and correct in all material respects and does not and will not contain any
      untrue statement of a material fact or omit to state a material fact
      necessary in order

                                       46
<PAGE>

      to make the statements contained therein not misleading in light of the
      circumstances under which such statements were or are made. All financial
      projections (if any) that have been prepared by the Obligors and made
      available to the Facility Agent have been prepared in good faith based
      upon reasonable assumptions (it being understood that such projections are
      subject to significant uncertainties and contingencies, many of which are
      beyond the Borrower's control, and that no assurance can be given that the
      projections will be realised).

15.12 PARI PASSU RANKING

      Its payment obligations under the Finance Documents rank at least pari
      passu with all its other present and future unsecured payment obligations,
      except for obligations mandatorily preferred by law applying to companies
      generally.

15.13 TAXES ON PAYMENTS

      All amounts payable by it to the Facility Agent under the Finance
      Documents and the Related Contracts may be made without any Tax Deduction.

15.14 STAMP DUTIES

      Except as notified in writing to and accepted by the Facility Agent no
      stamp or registration duty or similar Tax or charge is payable in its
      jurisdiction of formation in respect of any Finance Document or Related
      Contract.

15.15 ENVIRONMENT

      Except as may already have been disclosed by the Borrower in writing to
      the Facility Agent:

      (a)   each Owner and its Environmental Affiliates have without limitation
            in all material respects (such determination to be made by the
            Facility Agent acting in its sole discretion) complied with the
            provisions of all applicable Environmental Laws in relation to each
            Vessel;

      (b)   each Owner and its Environmental Affiliates have obtained all
            requisite material Environmental Approvals in relation to each
            Vessel and are in compliance with such Environmental Approvals;

      (c)   no Owner nor any of its Environmental Affiliates has received notice
            of any Environmental Claim in relation to the relevant Vessel which
            alleges that such Owner is not in compliance with applicable
            material Environmental Laws in relation to such Vessel or
            Environmental Approvals in relation to such Vessel;

      (d)   there is no Environmental Claim of the nature referred to in Clause
            15.15(c) above in relation to any Vessel pending or threatened; and

      (e)   there has been no Release of Hazardous Materials by or in respect of
            any Vessel of such nature as could lead to the Owner or any of its
            Environmental Affiliates receiving notice of an Environmental Claim
            pursuant to Clause 15.15(c) above.

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15.16 SECURITY INTERESTS

      No Security Interest exists over its or any of its Subsidiary's assets
      which would cause a breach of Clause 18.5 (Security Interests).

15.17 SECURITY ASSETS

      Each Owner is solely and absolutely entitled to the Security Assets over
      which it has or will create any Security Interest pursuant to the Security
      Documents to which it is, or will be, a party and there is no agreement or
      arrangement under which it is obliged to share any proceeds of or derived
      from such Security Assets with any third party.

15.18 ISM CODE COMPLIANCE

      On each Delivery Date, each Owner is in full compliance with the ISM Code
      in respect of its Vessel.

15.19 ISPS CODE COMPLIANCE

      On each Delivery Date, each Owner is in full compliance with the ISPS Code
      in respect of its Vessel.

15.20 NO AMENDMENTS TO RELATED CONTRACTS

      Other than as notified to and agreed by the Facility Agent in writing,
      there have been no material amendments to any of the Related Contracts.

15.21 MONEY LAUNDERING

      Any borrowing by the Borrower and the performance of its obligations
      hereunder and under the other Finance Documents to which it is a party
      will be for its own account and will not involve any breach by it of any
      law or regulatory measure relating to money laundering as defined in
      Article 1 of the Directive (91/308/EEC) of the Council of the European
      Communities or any equivalent law or regulatory measure in any other
      jurisdiction.

15.22 INSOLVENCY

(a)   No Obligor is unable, or admits or has admitted its inability, to pay its
      debts or has suspended making payments on any of its debts.

(b)   Each Obligor is able to satisfy its financial obligations at such time as
      they fall due.

(c)   No Obligor, by reason of actual or anticipated financial difficulties has
      commenced, or intends to commence, negotiations with one or more of its
      creditors with a view to rescheduling any of its Financial Indebtedness.

(d)   The fair value of the assets of each Obligor is not less than its
      liabilities (taking into account contingent and prospective liabilities).

(e)   Each Obligor has sufficient capital to carry on its business.

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(f)   No moratorium has been, or may, in the reasonably foreseeable future be,
      declared in respect of any indebtedness of any Obligor.

15.23 IMMUNITY

(a)   The execution by it of each Finance Document to which it is a party
      constitutes, and the exercise by it of its rights and performance of its
      obligations under each such Finance Document will constitute, private and
      commercial acts performed for private and commercial purposes.

(b)   It will not be entitled to claim immunity from suit, execution, attachment
      or other legal process in any proceedings taken in its jurisdiction of
      incorporation in relation to any Finance Document.

15.24 NO ADVERSE CONSEQUENCES

(a)   It is not necessary under the laws of its jurisdiction of formation:

      (i)   in order to enable the Facility Agent to enforce its rights under
            any Finance Document; or

      (ii)  by reason of the execution of any Finance Document or the
            performance by it of its obligations under any Finance Document,

      that the Facility Agent should be licensed, qualified or otherwise
      entitled to carry on business in its jurisdiction of formation.

(b)   The Facility Agent will not be deemed to be resident, domiciled or
      carrying on business in its jurisdiction of formation by reason only of
      the execution, performance and/or enforcement of any Finance Document.

15.25 JURISDICTION/GOVERNING LAW

(a)   Its:

      (i)   irrevocable submission under this Agreement to the jurisdiction of
            the courts of England;

      (ii)  agreement that this Agreement is governed by English law; and

      (iii) agreement not to claim any immunity to which it or its assets may be
            entitled,

      are legal, valid and binding under the laws of its jurisdiction of
      formation.

(b)   Any judgment obtained in England will be recognised and be enforceable by
      the courts of its jurisdiction of formation, subject to any statutory or
      other conditions of such jurisdiction.

15.26 OWNERSHIP

      Legal and beneficial ownership of its entire issued share capital is held
      by the Shareholder; and

      (i)   in the case of Quintana, the Borrower is its Subsidiary; and

      (ii)  in the case of the Borrower, the Owners are its Subsidiaries; and

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      (iii) in the case of the Owners, each of the Owners has no Subsidiaries

      PROVIDED THAT this Clause 15.26 shall, in the case of the Borrower, be
      subject to the occurrence of an IPO or Permitted Sale and, in the case of
      Quintana, be subject to the occurrence of a Permitted Sale.

15.27 CHARTERS

      As of the Delivery Date for each Vessel but subject to the provisions of
      Clause 18.22, any Time Charter in respect of that Vessel shall be in full
      force and effect.

15.28 TIMES FOR MAKING REPRESENTATIONS

(a)   The representations set out in this Clause are made by each Obligor on the
      date of this Agreement.

(b)   Unless a representation is expressed to be given at a specific date, each
      representation is deemed to be repeated by each Obligor on the date of
      each Utilisation Date.

(c)   When a representation is repeated, it is applied to the circumstances
      existing at the time of repetition.

16.   INFORMATION COVENANTS

16.1  FINANCIAL STATEMENTS

(a)   The Borrower must supply to the Facility Agent:

      (i)   its audited, consolidated, financial statements for each of its
            financial years ending after the date hereof; and

      (ii)  its interim unaudited quarterly financial statements for each
            quarter-year of each of its financial years.

(b)   All financial statements must be in the English language, be supplied as
      soon as they are available and:

      (i)   in the case of audited financial statements, within one hundred and
            twenty (120) days of the end of the relevant financial period; and

      (ii)  in the case of quarterly financial statements, within forty-five
            (45) days of the end of the relevant financial period.

(c)   The Facility Agent shall send to each Lender all of the financial
      statements received by it under this Clause 16.1 within fifteen (15) days
      of receipt of such financial statements.

16.2  FORM OF FINANCIAL STATEMENTS

(a)   The Borrower must ensure that each set of its financial statements
      supplied under this Agreement fairly represents, the financial condition
      (consolidated or otherwise) of the relevant person as at the date to which
      those financial statements were drawn up and in accordance with GAAP
      (subject, in the case of the quarterly financial statements, to normal
      year end audit adjustments and the absence of footnotes).

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<PAGE>

(b)   The Borrower must notify the Facility Agent of any change to the basis on
      which its audited financial statements are prepared.

(c)   If requested by the Facility Agent, the Borrower must supply or procure
      that the following are supplied to the Facility Agent:

      (i)   a full description of any change notified under paragraph (b) above;
            and

      (ii)  sufficient information to enable the Finance Parties other than the
            Security Trustee to make a proper comparison between the financial
            position shown by the set of financial statements prepared on the
            changed basis and its most recent audited consolidated financial
            statements delivered to the Facility Agent under this Agreement.

(d)   If requested by the Facility Agent, each Obligor must enter into
      discussions for a period of not more than thirty (30) days with a view to
      agreeing any amendments required to be made to this Agreement to place the
      Facility Agent in the same position as it would have been in if the change
      had not happened.

(e)   If no agreement is reached under paragraph (d) above on the required
      amendments to this Agreement, each Obligor must ensure that its auditors
      certify the changes to the basis on which the financial statements are
      prepared; the certificate of the auditors will be, in the absence of
      manifest error, binding on all the Parties.

16.3  COMPLIANCE CERTIFICATE

(a)   The Borrower must supply to the Facility Agent a Compliance Certificate in
      the form attached at Schedule 7 with each set of its financial statements
      sent to the Facility Agent under this Agreement.

(b)   Each Compliance Certificate supplied by the Borrower with its audited
      consolidated financial statements must be signed by its chief financial
      officer and chief executive officer.

16.4  ACCESS TO BOOKS AND RECORDS

      Upon the request of the Facility Agent, each Obligor shall provide the
      Facility Agent and any of its representatives, professional advisors and
      contractors with access to and permit inspection of its books and records,
      in each case at reasonable times and upon reasonable notice.

16.5  INFORMATION - MISCELLANEOUS

      Each Obligor, must, supply to the Facility Agent:

      (a)   copies of all documents despatched by it to its creditors or
            shareholders generally or any class of them at the same time as they
            are despatched;

      (b)   promptly upon becoming aware of them, details of any litigation,
            arbitration or administrative proceedings which are current,
            threatened or pending against it and which could reasonably be
            expected to have a Material Adverse Effect; and

      (c)   promptly on request, such further information regarding the
            financial condition and operations of an Owner as the Facility Agent
            may reasonably request.

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16.6  NOTIFICATION OF DEFAULT

(a)   Unless the Facility Agent has already been so notified, the Borrower must
      notify the Facility Agent of any Default (and the steps, if any, being
      taken to remedy it) promptly upon becoming aware of its occurrence.

(b)   On a quarterly basis the Borrower must supply to the Facility Agent a
      certificate, signed by two of its authorised signatories on its behalf,
      certifying that no Default is outstanding or, if a Default is outstanding,
      specifying the Default and the steps, if any, being taken to remedy it.

16.7  YEAR END

      None of the Obligors may change their financial year end.

17.   FINANCIAL COVENANTS

17.1  DEFINITIONS

      In this Clause:

      CONSOLIDATED CASH AND CASH EQUIVALENTS means, as at any date of
      determination:

      (a)   cash in hand or on deposit in the Operating Account, Reserve Account
            and Charter Accounts;

      (b)   any investment in marketable obligations issued or guaranteed by the
            government of the United States of America or the United Kingdom or
            by an instrumentality or agency of the government of the United
            States of America or the United Kingdom, maturing within one (1)
            year after the relevant date of calculation;

      (c)   time deposits and certificates of deposit of any commercial bank
            having, or which is the principal banking subsidiary of a bank
            holding company having capital, surplus and undivided profits
            aggregating in excess of two hundred million Dollars
            (US$200,000,000) which time deposits and certificates of deposit
            mature within one (1) year after the relevant date of calculation;

      (d)   repurchase obligations with a term of not more than ninety (90) days
            for underlying securities of the type referred to in subclause (b)
            above entered into with any bank meeting the qualifications
            specified in subclause (c) above;

      (e)   open market commercial paper:

            (i)   for which a recognised trading market exists;

            (ii)  issued in the United States of America or the United Kingdom;

            (iii) which matures within one (1) year after the relevant date of
                  calculation; and

            (iv)  which has a credit rating of either A-1 by S&P or Fitch or P-1
                  by Moody's, or, if no rating is available in respect of the
                  commercial paper, the issuer of which has, in respect of its
                  long-term debt obligations, an equivalent rating;

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<PAGE>

      (f)   any other instrument, security or investment approved by the
            Majority Lenders,

      in each case, to which any member of the Group is beneficially entitled at
      that time and which is capable of being applied against Consolidated Total
      Indebtedness.

      CONSOLIDATED EBITDA means the consolidated net income of the Group for a
      Measurement Period:

      (a)   including the net income of a member of the Group or business or
            assets acquired during that Measurement Period for the part of that
            Measurement Period when it was not a member of the Group and/or the
            business or assets were not owned by a member of the Group; but

      (b)   excluding the net income attributable to any member of the Group or
            to any business or assets sold during that Measurement Period,

      and all as adjusted by:

      (i)   adding back taxation;

      (ii)  adding back Consolidated Interest Expenses;

      (iii) taking no account of any extraordinary item;

      (iv)  excluding any amount attributable to minority interests;

      (v)   adding back depreciation and amortisation; and

      (vi)  taking no account of any revaluation of an asset or any loss or gain
            over book value arising on the disposal of an asset (otherwise than
            in the ordinary course of trading) by a member of the Group during
            that Measurement Period.

      CONSOLIDATED INTEREST COVERAGE RATIO means, as at any date of
      determination and with respect to any period, the ratio of Consolidated
      EBITDA for such period to Consolidated Interest Expense for such period.

      CONSOLIDATED INTEREST EXPENSE means all cash interest and cash commitment
      fees incurred by the Group during a Measurement Period.

      CONSOLIDATED NET WORTH means, as at any date of determination and with
      respect to any entity, the Net Worth of the Group determined on a
      consolidated basis in accordance with GAAP with appropriate deductions for
      any minority interests in Subsidiaries.

      CONSOLIDATED TOTAL CAPITALISATION means, as at any date of determination,
      the sum of Consolidated Total Indebtedness at such time and Consolidated
      Net Worth at such time.

      CONSOLIDATED TOTAL INDEBTEDNESS means, as at any date of determination,
      the aggregate stated balance sheet amount of all Financial Indebtedness
      (including but not limited to all amounts then outstanding under the Loans
      and all letters of credit, in the case of letters of credit, to the extent
      demand for payment has been made) of the Group on a consolidated basis
      determined in accordance with GAAP, provided that Financial Indebtedness
      outstanding pursuant to trade payables and Operating Expenses or pursuant

                                       53
<PAGE>

      to any instrument referred to in paragraph (f) of the definition of
      Financial Indebtedness shall be excluded in determining Consolidated Total
      Indebtedness.

      LEVERAGE RATIO means, at any date of determination, the ratio of
      Consolidated Total Indebtedness on such date less Consolidated Cash and
      Cash Equivalents held by the Group in excess of the minimum liquidity
      received pursuant to Clause 17.4 (Minimum Liquidity) to Consolidated Total
      Capitalisation.

      NET WORTH means, at any date of determination and with respect to any
      entity, the sum of its capital stock, capital in excess of par or stated
      value of shares of its capital stock, retained earnings and any other
      account which, in accordance with GAAP, constitutes stockholder's equity,
      but excluding any treasury stock.

17.2  DEFINITIONS

(a)   Except as provided to the contrary in this Agreement, an accounting term
      used in this Clause is to be construed in accordance with GAAP.

(b)   Any amount in a currency other than Dollars is to be taken into account at
      its Dollar equivalent calculated on the basis of:

      (i)   the Facility Agent's spot rate of exchange for the purchase of the
            relevant currency in the London foreign exchange market with Dollars
            at or about 11.00 a.m. on the day the relevant amount falls to be
            calculated; or

      (ii)  if the amount is to be calculated on the last day of a financial
            period of the Borrower, the relevant rates of exchange used by the
            Borrower in, or in connection with, its financial statements for
            that period.

(c)   No item must be credited or deducted more than once in any calculation
      under this Clause.

17.3  MAXIMUM LEVERAGE RATIO

      The Borrower will not permit the Leverage Ratio on the last day of any
      fiscal quarter of the Group:

      (a)   ending on or after 1st January, 2006 and prior to 1st January, 2007,
            to be greater than 0.80:1.00; and

      (b)   ending on or after 1st January, 2007, to be greater than 0.60:1.00.

17.4  MINIMUM LIQUIDITY

      The Borrower will not permit the Consolidated Cash and Cash Equivalents
      held by the Group on the last date of any fiscal quarter of the Group:

      (a)   ending on or after 31st July, 2005 but on or before the date which
            falls twelve (12) months from the date of this Agreement, to be not
            less than five million Dollars (US$5,000,000); and

      (b)   ending on or after the date which falls twelve (12) months from the
            date of this Agreement, to be not less than ten million Dollars
            (US$10,000,000); and

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<PAGE>

      (c)   notwithstanding (a) and (b) above, during any period commencing on
            the date falling thirty (30) days from the earlier of (i) the date
            on which Vessel 4 is delivered, and (ii) the date on which Vessel 5
            is delivered, when more than half the Vessels owned by the Group are
            employed on fixed rate charters which terminate six (6) months or
            less from the date of such determination, to be not less than
            fifteen million Dollars (US$15,000,000).

17.5  CONSOLIDATED INTEREST COVERAGE RATIO

      The Borrower will not permit the Consolidated Interest Coverage Ratio on
      the last day of any fiscal quarter of the Group (calculated on a trailing
      four quarter basis) to be:

      (a)   during any fiscal quarter commencing on or after 31st December, 2005
            but before 1st January, 2008, 2.5 to 1.00;

      (b)   during any fiscal quarter commencing on or after 1st January, 2008
            but before 1st January, 2009, 2.1 to 1.00;

      (c)   during any fiscal quarter commencing on or after 1st January, 2009
            but before 1st January, 2010, 2.25 to 1.00; and

      (d)   during any fiscal quarter commencing on or after 1st January, 2010
            but before the Final Maturity Date, 2.5 to 1.00.

      Until such time as four quarters of fiscal history for the Group are
      available to effect the above calculations, the Consolidated Interest
      Coverage Ratio shall be calculated on a year-to-date basis on the last day
      of each fiscal quarter of the Group.

17.6  COLLATERAL MAINTENANCE

(a)   The Borrower will not permit the aggregate Market Value of the Vessels to
      be less than the Required Amount, such test to be determined no more than
      semi annually as provided in Clause 17.6 (c) below, provided that in the
      event the Facility Agent, acting in accordance with Clause 19.2(d),
      requests additional valuations, such test shall be determined no more than
      quarterly.

(b)   In the event that the Borrower fails to meet the ratio set out in this
      Clause 17.6, the Borrower shall, within thirty (30) days of notice being
      given by the Facility Agent so to do, either (i) prepay such amount of the
      Loans relating to the delivered Vessels as will ensure that the aggregate
      of the Market Value of the delivered Vessels is not less than the Required
      Amount in respect of the delivered Vessels; or (ii) provide or cause to be
      provided to the Security Trustee additional collateral, such collateral to
      be in all respects satisfactory to the Facility Agent (acting on the
      instructions of all Lenders), such that the Required Amount is again met
      provided that, for the avoidance of doubt, such additional security will
      be required to have such value (as the Facility Agent then determines to
      be appropriate) such that the Required Amount is again met.

(c)   Except as provided in the proviso to Clause 17.6(a) when the collateral
      maintenance test may be effected on no more than a quarterly basis, the
      Facility Agent shall be entitled to effect such collateral maintenance
      test on a semiannual basis (commencing six (6) months from the date of
      this Agreement) and shall base its calculations on the average of the then
      most recent Valuations provided by two (2) of the Approved Valuers in
      accordance with Clause 19.

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(d)   If any Vessel becomes a Total Loss, it shall, as of the earlier of (i) the
      date of receipt by the Facility Agent of the proceeds of insurance
      relating to such Total Loss and (ii) the date falling one hundred and
      eighty (180) days after the occurrence of the relevant event of Total
      Loss, cease to be a Vessel for the purposes of this Clause 17.6 unless the
      underwriters agree to settle any insurance claim in respect or such Vessel
      for an amount not less than the Market Value of such Vessel within one
      hundred and eighty (180) days from the occurrence of the event giving rise
      to such Total Loss, PROVIDED that, if any insurance proceeds or
      Requisition Compensation are received by either the Security Trustee or
      the Facility Agent in respect of a Total Loss of such Vessel they shall be
      applied in accordance with Clause 6.2(b).

(e)   If at any time any Vessel is not insured in accordance with the terms of
      the relevant mortgage and the relevant assignment (and in the case of the
      Vessel, in accordance with the terms of the Mortgage and of the General
      Assignment) then, for so long as such Vessel is not insured in accordance
      with such requirements, such Vessel shall, if the Facility Agent so
      determines, cease to be deemed a Vessel for the purposes of this Clause
      17.6.

Clauses 6.8 and 6.9 shall apply, mutatis mutandis, to any prepayment made
pursuant to this Clause 17.6(b). Any prepayment made in accordance with this
Clause shall be applied pro rata across all of the Loans.

18.   GENERAL COVENANTS

18.1  GENERAL

      Each of the Obligors agrees to be bound by the covenants set out in this
      Clause relating to it, and, in the case of the Borrower, agrees to procure
      the performance by the Guarantors of the covenants applicable to them.

18.2  AUTHORISATIONS

      Each Obligor must promptly obtain, maintain and comply, in all material
      respects, with the terms of any authorisation required under any
      Applicable Law to enable it to perform its obligations under, or for the
      validity or enforceability of, any Finance Document.

18.3  COMPLIANCE WITH LAWS

      Each Obligor must comply and must procure that the Managers (with respect
      to their management agreement) comply in all respects with all Applicable
      Laws to which it is subject where failure to do so is reasonably likely to
      have a Material Adverse Effect.

18.4  PARI PASSU RANKING

      Each Obligor must ensure that its payment obligations under the Finance
      Documents rank at least pari passu with all its other present and future
      unsecured payment obligations, except for obligations mandatorily
      preferred by law applying to companies generally.

18.5  SECURITY INTERESTS

      Neither the Borrower nor the Guarantors shall, and the Guarantors shall
      procure that the Managers do not create or permit to subsist any Security
      Interest over the Obligatory Insurances or any other Security Assets or
      any Related Contract other than:

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      (a)   Permitted Security Interests; or

      (b)   with the prior written consent of the Facility Agent (acting on the
            instructions of the Majority Lenders).

18.6  ISSUANCE OF SHARES

      Neither the Borrower nor the Owners shall issue or cause to be issued any
      new shares other than those shares which are, as at the date of this
      Agreement, owned by the respective Shareholder, other than, in the case of
      the Borrower, in connection with an IPO and, in the case of the Owners,
      those issued to the Borrower.

18.7  DISPOSALS

(a)   Except as provided below, no Obligor may, either in a single transaction
      or in a series of transactions and whether related or not, dispose of all
      or any part of its assets.

(b)   Paragraph (a) does not apply to any disposal:

      (i)   made in the ordinary course of trading of the disposing entity; or

      (ii)  of assets in exchange for other assets comparable or superior as to
            type, value and quality; or

      (iii) of shares pursuant to a Permitted Sale.

      PROVIDED ALWAYS that such disposal shall be on an arm's length basis and
      shall not have a Material Adverse Effect in respect of the Obligors.

18.8  NO OTHER BUSINESS ASSETS OR FINANCIAL INDEBTEDNESS

(a)   The Borrower shall not engage in any business other than the ownership of
      the Owners and Quintana Management (and activities incidental thereto).
      The Borrower shall at all times remain the legal and beneficial owner of
      all of the issued shares in each of the Owners.

(b)   No Owner shall engage in any business other than the direct or indirect
      ownership, operation or chartering of the relevant Vessel or any business
      incidental thereto nor shall any Owner own any asset other than the
      relevant Vessel or any asset incidental to the ownership, operation and
      chartering of that Vessel.

(c)   Quintana shall not engage in any business other than the ownership of the
      Borrower.

(d)   Prior to the Trigger Date, the Obligors shall not incur any Financial
      Indebtedness other than (i) the Financial Indebtedness contemplated by the
      Finance Documents and the Memoranda of Agreement, (ii) any trade debt,
      (iii) in the case of the Borrower and Quintana, any subordinated Financial
      Indebtedness complying with the provisions of Clause 6.3(c) incurred in
      order to make the Equity Payment, (iv) any interest rate hedging
      obligations permitted by Clause 18.32, (v) any unsecured indebtedness
      incurred by the Owners to the Borrower in connection with the on-lending
      of the Loans by the Borrower to the Owners, and any unsecured indebtedness
      incurred by Quintana Management to the Owners in connection with the
      routine operation and management of the Vessels, and (vi) up to $150
      million principal amount of loans (plus accrued and unpaid interest)
      outstanding to the Borrower under the

                                       57
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      unsecured bridge loan financing that the Borrower has incurred to purchase
      Vessels, provided that all such amounts shall be paid in full on or prior
      to the date on which any Loans are made under this Agreement either from
      the proceeds of such Loans or otherwise.

(e)   Following the Trigger Date the Obligors shall be permitted to incur
      Financial Indebtedness provided that:

      (i)   no Event of Default has occurred and is continuing; and

      (ii)  incurring such Financial Indebtedness would not cause the Group to
            be in breach of any of the covenants set out in Clause 17.

(f)   Notwithstanding this Clause 18.8, both the Borrower and the Owners shall
      be permitted to incur capital expenditure prior to the Trigger Date to the
      extent that such expenditure relates to:

      (i)   the acquisition of the Vessels pursuant to the Memoranda of
            Agreement; and

      (ii)  maintenance and dry dock capital expenditure relating to the
            Vessels, to the extent that such expenditure occurs following the
            acquisition of the Vessels by the Group and the amounts expended are
            reasonably necessary to ensure and maintain compliance with the
            requirements of the classification society with which each Vessel is
            classed or to maintain the Vessels in good working order in
            accordance with industry practices or to comply with applicable laws
            relating to the Vessels; and

      (iii) expenditure made from net insurance proceeds received by the
            Borrower and the Owners in the event of Total Loss or partial loss
            of a Vessel, subject to compliance with Clause 6.2,

      PROVIDED ALWAYS that no such capital expenditure shall be incurred
      following an Event of Default. For the avoidance of doubt, following the
      occurrence of the Trigger Date there shall, provided no Event of Default
      has occurred, be no restrictions on capital expenditure.

18.9  CHANGE OF BUSINESS

      Each Obligor must maintain its jurisdiction and place of formation, and
      keep its constitutional documents, at the address stated opposite its name
      in Part 1 of Schedule 1, and the Obligors will not establish, or do
      anything as a result of which it would be deemed to have, a place of
      formation in any country other than the Republic of the Marshall Islands.

18.10 MERGERS

      None of the Obligors shall enter into any amalgamation, demerger, merger
      or reconstruction otherwise than under an intra-Group re-organisation on a
      solvent basis or other transaction agreed by the Facility Agent (acting on
      the instructions of the Majority Lenders).

18.11 SECURITY

      Each of the Obligors:

      (a)   will procure that the relevant Mortgage is on the Delivery Date, and
            continues to be registered as a first priority mortgage with the
            Marshall Islands Ships Registry;

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      (b)   will procure that the relevant Junior Mortgage is on the Delivery
            Date, and continues to be, registered as a second priority mortgage
            with the Marshall Islands Ships Registry;

      (c)   without prejudice to paragraphs (a) and (b) will procure that the
            Mortgage and any other security conferred by it under any Senior
            Security Document is registered as a first priority interest with
            the relevant authorities to the extent such registrations are
            available and will procure that the Junior Mortgage and any other
            security conferred by it under any Junior Security Document is
            registered as a second priority interest to the extent such
            registrations are available with the relevant authorities, in each
            case within the period prescribed by the Applicable Laws and is
            maintained and perfected with the relevant authorities;

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

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

18.12 TRANSACTIONS WITH AFFILIATED COMPANIES

(a)   No Obligor may enter into any transaction with any Affiliate of it unless
      it is either (i) to comply with any obligations such Obligor may have
      under the Finance Documents or (ii) on an arm's length basis and that
      Affiliate has previously agreed in writing (in a form satisfactory to the
      Facility Agent (acting on the instructions of the Majority Lenders)) to
      subordinate to any and all obligations of the Obligors and the rights of
      the Administrative Parties and the Lenders under the Finance Documents any
      rights that it may have under such transaction to receive payment in cash
      or in kind from the relevant Obligor following the occurrence of a Default
      which is continuing under the terms of this Agreement.

(b)   No Obligor shall grant any credit to, or give any guarantees in respect of
      the obligations of, any Affiliate unless such transaction has been
      approved in writing by the Facility Agent (acting on behalf of the
      Lenders) or has been entered into in order for the relevant Obligor to
      comply with any obligations such Obligor may have under the Finance
      Documents.

18.13 REGISTRATION OF THE VESSELS

      The Borrower and each Owner shall:

      (a)   procure and maintain with effect from the Delivery Date of the
            relevant Vessel the valid and effective provisional registration of
            the Vessel under the flag of the Republic of the Marshall Islands
            and shall effect permanent registration of the Vessel within two
            months from the relevant Delivery Date, or such other flag of
            equivalent reputation as is satisfactory to the Facility Agent
            (acting on the instructions of the Majority Lenders) in its absolute
            discretion, and shall ensure nothing is done or omitted by which the
            registration of the Vessels would or might be defeated or
            imperilled; and

      (b)   not change the name or port of registration of the Vessels without
            the prior written consent of the Facility Agent (acting on the
            instructions of the Majority Lenders) (such consent not to be

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            unreasonably withheld or delayed). As at the date of this Agreement,
            the Marshall Islands is regarded by the Lenders as an acceptable
            state of registration, subject to the right of the Lenders to treat
            such state as not being acceptable in the future by reason of change
            of legal or political circumstances in such jurisdictions that could
            reasonably be expected to have an adverse effect on the Finance
            Parties rights under the Finance Documents or by reason of such
            jurisdictions ceasing to be acceptable to the relevant
            classification society of any of the Vessels.

18.14 CLASSIFICATION AND REPAIR

      The Borrower and each Owner shall, at all times after the Delivery Date:

      (a)   ensure that the Vessels are surveyed from time to time as required
            by the classification society in which the Vessel is for the time
            being entered and maintain and preserve the Vessel in good working
            order and repair, ordinary wear and tear excepted, and in any event
            in such condition as will entitle each to the classification it has
            as of the Delivery Date or, if such classification is not available
            with the highest equivalent classification available, with any
            classification society which is a member of the International
            Association of Classification Societies (or to the equivalent
            classification in another internationally recognised classification
            society of like standing acceptable to the Facility Agent (acting on
            the instructions of the Majority Lenders)), free of all overdue
            requirements and overdue recommendations of that classification
            society;

      (b)   procure that all repairs to or replacement of any damaged, worn or
            lost parts or equipment shall be effected in accordance with Class
            Rules and requirements in such manner (both as regards workmanship
            and quality of materials) as not to diminish the value of the
            Vessels;

      (c)   not remove any material part of any of the Vessels, or any item of
            equipment installed on any of the Vessels unless the part or item so
            removed is forthwith replaced by a suitable part or item which is in
            the same condition as or better condition than the part or item
            removed, is free from any Security Interest (other than a Permitted
            Security Interest) or any right in favour of any person other than
            the Security Trustee and becomes on installation on that Vessel the
            property of the Owner and subject to the security constituted by the
            relevant Security Document(s) provided that the Owner may install
            and remove equipment owned by a third party if the equipment can be
            removed without any risk of damage to a Vessel;

      (d)   ensure that each Vessel complies in all material respects with all
            Applicable Laws from time to time applicable to vessels registered
            under the laws and flag of the Republic of the Marshall Islands or
            such other flag, under which the Vessels may be registered from time
            to time in accordance with this Agreement; and

      (e)   except as required by law or by the relevant Vessel's classification
            society, not without the prior written consent of the Facility Agent
            (acting on the instructions of the Majority Lenders), (such consent
            not to be unreasonably withheld) cause or permit to be made any
            substantial change in the structure, type or performance
            characteristics of any of the Vessels and provide notification of
            such substantial changes in structure, type or performance
            characteristics of any of the Vessels to the Facility Agent and
            furthermore provide confirmation to the Facility Agent that such
            substantial change in structure, type or performance characteristics
            of any of the Vessels shall not result in a breach of any covenant
            under this Agreement.

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18.15 LAWFUL AND SAFE OPERATION

      The Borrower and each Owner shall, at all times after the Delivery Date:

      (a)   operate each Vessel and cause each of the Vessels to be operated in
            a manner consistent in all material respects with any and all laws,
            regulations, treaties and conventions (and all rules and regulations
            issued thereunder) from time to time applicable to the Vessel;

      (b)   (unless the relevant Owner (i) is obliged under the terms of any
            Time Charter to so trade and (ii) has carried out and is complying
            with the results of its proper due diligence in respect of the
            safety of the Vessel and crew that would reasonably be expected of a
            prudent operator of like vessels) not cause or permit any of the
            Vessels to trade with, or within the territorial waters of any
            country in which her safety could reasonably be expected to be
            imperilled by exposure to piracy, terrorism, arrest, requisition,
            confiscation, forfeiture, seizure, destruction or condemnation as
            prize;

      (c)   not cause or permit any of the Vessels to be employed in any manner
            which will or may give rise to any reasonable degree of likelihood
            that such Vessel would be liable to requisition, confiscation,
            forfeiture, seizure, destruction or condemnation as prize;

      (d)   not cause or permit any of the Vessels to be employed in any trade
            or business which is forbidden by international law or is illicit or
            in carrying illicit or prohibited goods;

      (e)   in the event of hostilities in any part of the world (whether war be
            declared or not) not cause or permit any of the Vessels to be
            employed in carrying any contraband goods and that she does not
            trade in any zone after it has been declared a war zone by any
            authority or by any of that Vessel's war risks Insurers unless that
            Vessel's Insurers shall have confirmed to the relevant Owner that
            such Vessel is held covered under the Obligatory Insurances for the
            voyage(s) in question; and

      (f)   not charter any of the Vessels or permit either of the Vessels to
            serve under any contract of affreightment with any foreign country
            or national of any foreign country which would be contrary to
            Applicable Law or would render any Finance Document or the security
            conferred by the Security Documents unlawful.

18.16 ARRESTS AND LIABILITIES

      The Borrower and each Owner shall, at all times after the Delivery Date of
      a Vessel:

      (a)   pay and discharge all obligations and liabilities whatsoever which
            have given or may give rise to liens (other than liens arising in
            the ordinary course of operation of any of the Vessels in each case
            for amounts the payment of which is not yet due or, if due and
            payable, is being disputed in good faith by appropriate proceeding
            (and for the payment of which adequate reserves have been provided
            or are and continue to be available)) on or claims enforceable
            against any of the Vessels and take all reasonable steps to prevent
            a threatened arrest of any of the Vessels;

      (b)   notify the Facility Agent promptly in writing of the levy of either
            distress on any of the Vessels or her arrest, detention, seizure,
            condemnation as prize, compulsory acquisition or requisition for
            title or use and (save in the case of compulsory acquisition or
            requisition for title or use) obtain her release within thirty (30)
            days;

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      (c)   pay and discharge when due all dues, taxes, assessments,
            governmental charges, fines and penalties lawfully imposed on or in
            respect of any of the Vessels or the relevant Owner except any which
            are being disputed in good faith by appropriate proceedings (and for
            the payment of which adequate reserves or security are at the
            relevant time maintained or provided to the extent required by
            GAAP); and

      (d)   pay and discharge all other obligations and liabilities whatsoever
            in respect of any of the Vessels and the Obligatory Insurances.

18.17 RELATED CONTRACTS

(a)   The Obligors shall not, take any action, enter into any document or
      agreement or omit to take any action or to enter into any document or
      agreement which would, or could reasonably be expected to, cause any
      Related Contract to cease to remain in full force and effect and shall use
      all reasonable endeavours to procure that each other party to any Related
      Contract does not take any action, enter into any document or agreement or
      omit to take any action or to enter into any document or agreement which
      would, or could reasonably be expected to, cause any Related Contract to
      cease to remain in full force and effect.

(b)   The Borrower shall not, and shall procure that the Owners shall not, amend
      or agree to any material amendment to the Related Contracts or the
      Memoranda of Agreement without the prior written consent of the Facility
      Agent (acting on the instructions of the Majority Lenders).

18.18 ENVIRONMENT

      The Borrower and each Owner shall, at all times after the Delivery Date of
      a Vessel:

      (a)   comply in all material respects with all applicable Environmental
            Laws including, without limitation, requirements relating to the
            establishment of financial responsibility (and shall require that
            all Environmental Affiliates of each Owner comply with all
            applicable Environmental Laws and obtain and comply in all material
            respects with all required Environmental Approvals, which
            Environmental Laws and Environmental Approvals relate to any of the
            Vessels or her operation or her carriage of cargo); and

      (b)   promptly upon becoming aware of the occurrence of any of the
            following events, provide to the Facility Agent a certificate of an
            officer of the relevant Owner or of the relevant Owner's agents
            specifying in detail the nature of the event concerned:

            (i)   the receipt by the Owner or any Environmental Affiliate (where
                  the Owner has knowledge of the receipt) of any Environmental
                  Claim; or

            (ii)  any Release of Hazardous Materials.

18.19 INFORMATION REGARDING THE VESSELS

      The Borrower and each Owner shall, at all times after the relevant
      Delivery Date:

      (a)   promptly notify the Facility Agent of the occurrence of any
            accident, casualty or other event which has caused or resulted in or
            may cause or result in a Vessel being or becoming a Total Loss;

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      (b)   promptly notify the Facility Agent of any requirement or
            recommendation made by any Insurer or classification society or by
            any competent authority which is not complied with in a timely
            manner;

      (c)   promptly notify the Facility Agent of any Environmental Claim being
            made in connection with any of the Vessels or its operation;

      (d)   promptly notify the Facility Agent of any claim for breach of the
            ISM Code being made in connection with any of the Vessels or its
            operation;

      (e)   promptly notify the Facility Agent of any claim for breach of the
            ISPS Code being made in connection with any of the Vessels or its
            operation;

      (f)   promptly notify the Facility Agent of any intended dry docking of
            over thirty (30) days of any of the Vessels;

      (g)   give to the Facility Agent from time to time on request such
            information as the Facility Agent may reasonably require regarding
            any of the Vessels, her employment, position and engagements;

      (h)   provide the Facility Agent with copies of the classification
            certificate of the Vessels and of all periodic damage or survey
            reports on any of the Vessels which the Facility Agent may
            reasonably request;

      (i)   promptly furnish the Facility Agent with full information of any
            casualty or other accident or damage to any of the Vessels involving
            an amount in excess of US$1,000,000 (or equivalent):

      (j)   give to the Facility Agent and its duly authorised representatives
            reasonable access to any of the Vessels for the purpose of
            conducting on board inspections and/or surveys of the Vessel and pay
            the reasonable expenses incurred by the Facility Agent in connection
            with the inspections and/or surveys provided that, unless an Event
            of Default has occurred and is continuing (in which case all such
            inspections and/or surveys shall be for the cost of the Borrower),
            only one (1) such inspection and/or survey in respect of each Vessel
            per year shall take place at the expense of the Borrower, and the
            Facility Agent shall co-operate with the Borrower and the Owners in
            respect of the timing for and the place where such surveys take
            place in order to minimise disruption to the activities of any of
            the Vessels; and

      (k)   if the Facility Agent reasonably believes an Event of Default may
            have occurred, furnish to the Facility Agent from time to time upon
            reasonable request certified copies of the ship's log in respect of
            any of the Vessels.

18.20 PROVISION OF FURTHER INFORMATION

      Each Obligor shall, as soon as practicable following receipt of a request
      by the Facility Agent, provide the Facility Agent with any additional or
      further financial or other information relating to any of the Vessels, the
      Obligatory Insurances or to any other matter relevant to, or to any
      provision of, a Finance Document which the Facility Agent may reasonably
      request.

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18.21 MANAGEMENT

(a)   Each Obligor shall ensure that at all times after the relevant Delivery
      Date:

      (i)   technical management of the relevant Vessel is performed by a
            Manager;

      (ii)  Quintana Management (or any replacement Manager approved by the
            Facility Agent (acting on the instructions of the Majority Lenders))
            enters into a Manager's Undertaking;

      (iii) the Manager shall not terminate or materially vary the terms of the
            Management Agreement or appoint an alternative manager, provided
            that the relevant Owner shall be entitled so to do with the prior
            written consent of the Facility Agent (acting on the instructions of
            the Majority Lenders) and provided further that the foregoing shall
            not restrict or preclude the transfer of the management of any
            Vessel at any time after the date of this Agreement to Quintana
            Management subject to the execution of a further Manager's
            Undertaking (if such Manager is not already a party to such
            undertaking); and

      (iv)  the Manager shall not subcontract its responsibilities for the
            maintenance and/or operation of any of the Vessels without the prior
            written consent of the Facility Agent (acting on the instructions of
            the Majority Lenders).

(b)   Following the date falling seven months after the date of this Agreement,
      the Borrower and each Owner shall ensure that the management of all of the
      Vessels is transferred, to the extent not already so performed, to
      Quintana Management, and that:

      (i)   to the extent not already so assigned, the management agreement with
            Quintana Management in respect of the Vessels is assigned to the
            Security Trustee pursuant to a Vessel Management Agreement
            Assignment; and

      (ii)  to the extent that Quintana Management has not already so
            undertaken, shall procure that Quintana Management enters into a
            Manager's Undertaking.

18.22 TIME CHARTERS

(a)   Following delivery of a Vessel, that Vessel shall be employed under a
      fixed rate charter on terms and with counterparties satisfactory to the
      Facility Agent (acting on the instructions of the Majority Lenders (a TIME
      CHARTER), such charters to be in place no later than the date on which
      each Vessel is delivered to the relevant Owner under the relevant
      Memorandum of Agreement (or, with respect to Vessel 4 and Vessel 5 no
      later than thirty (30) days following the date on which such Vessel is
      delivered to the Owner under the relevant Memorandum of Agreement). Each
      Owner shall provide copies of the relevant executed charter to the
      Facility Agent on or prior to drawdown of the relevant Loan (or, with
      respect to Vessel 4 and Vessel 5 no later than thirty (30) days following
      the date on which such Vessel is delivered to the Owner under the relevant
      Memorandum of Agreement).

(b)   The charter rates for each of the fixed term charters for the delivered
      Vessels shall be, in aggregate, at least equal to the Predicted Charter
      Rates. In the event that the charter rates when aggregated are less than
      the Predicted Charter Rates the Borrower shall be obliged to make a
      prepayment in accordance with the provisions of Clause 6.3(d).

(c)   No Owner shall be permitted to let any of the Vessels on demise charter.

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(d)   Notwithstanding any of the foregoing, one (1) Vessel may be chartered on a
      spot rather than time charter basis.

18.23 TERMINATION OF TIME CHARTER

      In the event that any of the Time Charters terminates prior to its stated
      duration, the Borrower shall, within thirty (30) days of such termination,
      arrange alternative charter arrangements for the affected Vessel(s) for at
      least the balance of the original duration of those Time Charters, the
      terms of which shall be notified to the Facility Agent. Such alternative
      charters shall be with Charterers reasonably acceptable to the Facility
      Agent (acting on the instructions of the Majority Lenders) at charter
      rates equal to or higher than the Predicted Charter Rates and otherwise on
      terms reasonably satisfactory to the Facility Agent (acting on the
      instructions of the Majority Lenders).

18.24 SCOPE OF OBLIGATORY INSURANCES

(a)   The Borrower will, and shall procure that each Owner shall, in respect of
      each Vessel:

      (i)   at all times after the relevant Delivery Date keep that Vessel
            insured in the Required Insurance Amount, in Dollars in the name of
            the relevant Owner or (if the Facility Agent so requires) in the
            joint names of the relevant Owner and the Facility Agent and the
            Security Trustee without the Facility Agent or the Security Trustee
            being liable but having the right to pay premiums, through brokers
            approved by the Facility Agent (acting on the instructions of the
            Majority Lenders) against fire and usual marine risks (including
            hull and machinery and Excess Risks) with approved underwriters or
            insurance companies approved by the Facility Agent (acting on the
            instructions of the Majority Lenders) and by policies in form and
            content reasonably acceptable to the Facility Agent (acting on the
            instructions of the Majority Lenders)

      (ii)  at all times after the relevant Delivery Date keep that Vessel
            insured in the Required Insurance Amount in the same manner as above
            against war risks (including risks of mines and all risks, whether
            or not regarded as war risks, London Blocking and Trapping Addendum
            and Lost Vessel Clause, excepted by the free of capture and seizure
            Clauses in the standard form of Lloyds marine policy) either:

            (A)   with underwriters or insurance companies reasonably acceptable
                  to the Facility Agent (acting on the instructions of the
                  Majority Lenders) and by policies in form and content
                  reasonably acceptable to the Facility Agent (acting on the
                  instructions of the Majority Lenders); or

            (B)   by entering the relevant Vessel in an approved war risks
                  association,

            and for the avoidance of doubt, such war risks insurance will
            include protection and indemnity liability up to at least the
            Required Insurance Amount, excluding any liability in respect of
            death, injury or damage to crew;

      (iii) at all times after the relevant Delivery Date keep that Vessel
            entered in respect of her full value and tonnage in an approved
            protection and indemnity association against all risks as are
            normally covered by such protection and indemnity association
            (including pollution risks and the proportion not recoverable in
            case of collision under the running down Clause inserted in the
            ordinary Lloyds policies), such cover for pollution risks to be for:

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            (A)   a minimum amount of US$1,000,000,000 or such other amount of
                  cover against pollution risks as shall at any time be
                  comprised in the basic entry of each Vessel with either a
                  protection and indemnity association which is an acceptable
                  member of either the International Group of protection and
                  indemnity associations (or any successor organisation
                  designated by the Facility Agent for this purpose) or the
                  International Group (or such successor organisation) itself;
                  or

            (B)   if the International Group or any such successor ceases to
                  exist or ceases to provide or arrange any cover for pollution
                  risks (or any supplemental cover for pollution risks over and
                  above that afforded by the basic entry of each Vessel with its
                  protection and indemnity association), such aggregate amount
                  of cover against pollution risks as shall be available on the
                  open market and by basic entry with a protection and indemnity
                  association for ships of the same type, size, age and flag as
                  each respective Vessel; and

      (iv)  provided that, if any Vessel has ceased trading or is in lay up and
            in either case has unloaded all cargo, the level of pollution risks
            cover afforded by ordinary protection and indemnity cover available
            through a member of the International Group or such successor
            organisation or, as the case may be, on the open market in such
            circumstances shall be sufficient for such purposes.

18.25 MORTGAGEE'S INTEREST INSURANCES

      The Facility Agent shall, in respect of each Vessel, be entitled from time
      to time to effect from the Delivery Date, maintain and renew, in the
      relevant Required Insurance Amount, and on standard London market terms,
      through such insurers and in such manner as the Facility Agent (acting on
      the instructions of the Majority Lenders) may from time to time consider
      appropriate, a mortgagee's interest marine insurance providing for the
      indemnification of the Finance Parties for any Losses under or in
      connection with any Finance Document which directly or indirectly result
      from loss of or damage to a Vessel or a liability of a Vessel or an Owner,
      being a loss or damage which is prima facie covered by an Obligatory
      Insurance but in respect of which there is a non-payment (or reduced
      payment) by the underwriters by reason of, or on the basis of any
      allegation concerning:

      (a)   any act or omission on the part of the Borrower or an Owner, of any
            operator or manager of any Vessel or of any officer, employee or
            agent of the Borrower or an Owner or of any such person, including
            any breach of warranty or condition or any non-disclosure relating
            to such Obligatory Insurance;

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

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

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

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18.26 OBLIGATORY INSURANCES

      Without prejudice to its obligations under Clause 18.24 (Scope of
      Obligatory Insurances), the Borrower shall not and shall procure that each
      Owner will:

      (a)   not without the prior consent of the Facility Agent (acting on the
            instructions of the Majority Lenders) alter any Obligatory Insurance
            nor make, do, consent or agree to any act or omission which would or
            might render any Obligatory Insurance invalid, void, voidable or
            unenforceable or render any sum paid out under any Obligatory
            Insurance repayable in whole or in part;

      (b)   not cause or permit any Vessel to be operated in any way
            inconsistent with the provisions or warranties of, or implied in, or
            outside the cover provided by, any Obligatory Insurance or to be
            engaged in any voyage or to carry any cargo not permitted by any
            Obligatory Insurances without first covering the relevant Vessel in
            the Required Insurance Amount and her freights for an amount
            approved by the Facility Agent (acting on the instructions of the
            Majority Lenders) in Dollars or another approved currency with the
            Insurers;

      (c)   duly and punctually pay when due all premiums, calls, contributions
            or other sums of money from time to time payable in respect of any
            Obligatory Insurance;

      (d)   renew all Obligatory Insurances at least fourteen (14) days before
            the relevant policies or contracts expire and procure that the
            approved brokers and/or war risks and protection and indemnity clubs
            and associations shall promptly confirm in writing to the Facility
            Agent as and when each renewal is effected;

      (e)   forthwith upon the effecting of any Obligatory Insurance, give
            written notice of the insurance to the Facility Agent stating the
            full particulars (including the dates and amounts) of the insurance,
            and on request produce the receipts for each sum paid by it pursuant
            to paragraph (c) above;

      (f)   not settle, release, compromise or abandon any claim in respect of
            any Total Loss unless the Facility Agent (acting on the instructions
            of the Majority Lenders) is satisfied that such release, settlement
            compromise or abandonment will not prejudice the interests of the
            Finance Parties under or in relation to any Finance Document;

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

      (h)   procure that the interest of the Facility Agent and/or the Security
            Trustee is noted on all policies of insurance and, as the case may
            be, all policies of reinsurance;

      (i)   procure that a loss payee provision in the form scheduled to the
            General Assignment, and reflecting the provisions of Clause 18.27
            (Application of Insurance Proceeds) is endorsed on all policies of
            insurance and reinsurance, as the case may be;

      (j)   obtain from the relevant insurance brokers, reinsurance brokers and
            P&I Club letters and undertakings in the forms scheduled to the
            General Assignment; and

      (k)   in the event that an Owner receives payment of any moneys under the
            General Assignment, save as provided in the loss payable clauses
            scheduled to the General Assignment, forthwith pay over

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            the same to the Facility Agent and until paid over such moneys shall
            be held in trust for the Facility Agent by the Borrower, or as the
            case may be, the relevant Owner.

18.27 APPLICATION OF INSURANCE PROCEEDS

(a)   All sums receivable in respect of the Obligatory Insurances after the
      occurrence of an Event of Default shall be paid to the Facility Agent and
      the Facility Agent shall apply them in accordance with the Subordination
      Deed.

(b)   Subject to paragraph (a) above:

      (i)   each sum receivable in respect of a major casualty (being any
            casualty in respect of which the claim or the aggregate of the
            claims exceeds US$1,000,000 (or its equivalent)), other than in
            respect of protection and indemnity risk insurances, shall be paid
            to the Facility Agent; and

      (ii)  the insurance moneys received by the Facility Agent in respect of
            any such major casualty shall be paid:

            (A)   to the person to whom the relevant liability shall have been
                  incurred; or

            (B)   upon an Owner furnishing evidence satisfactory to the Facility
                  Agent that all loss and damage resulting from the casualty has
                  been properly made good and repaired or, as the case may be,
                  that a contract has been entered into for the repair or
                  reinstatement of the loss or damage, to the Owner or, at the
                  option of the Facility Agent, to the person by whom any
                  repairs have been or (upon receipt of evidence satisfactory to
                  the Facility Agent that the relevant repairs are being
                  performed under the relevant contract with such person) are
                  being or to be effected.

      (iii) The receipt by any such person referred to in paragraph (A) and (B)
            of paragraph (ii) above shall be a full and sufficient discharge of
            the same to the Facility Agent.

(c)   Subject to paragraph (a) above, each sum receivable in respect of the
      Obligatory Insurances (insofar as the same are hull and machinery or war
      risks insurances) which does not exceed US$1,000,000 or its equivalent
      shall be paid in full to the relevant Owner or to its order and shall be
      applied by it for the purpose of making good the loss and fully repairing
      all damage in respect of which the receivable shall have been collected.

(d)   Subject to paragraph (a) above, each sum receivable in respect of
      protection and indemnity risk Obligatory Insurances shall be paid direct
      to the person to whom the liability, to which that sum relates, was
      incurred, or to the relevant Owner in reimbursement to it of moneys
      expended in satisfaction of such liability.

(e)   Notwithstanding any other provision in this Clause 18.27, all sums
      receivable in respect of Obligatory Insurances relating to a Total Loss
      shall be applied in accordance with Clause 6.2(b)).

18.28 POWER OF FACILITY AGENT TO INSURE

      If the Borrower or an Owner fails to effect and keep in force Obligatory
      Insurances in accordance with this Agreement, it shall be permissible, but
      not obligatory, for the Facility Agent to effect and keep in force
      insurance or insurances in the amounts required under this Agreement and
      entries in a protection

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      and indemnity association or club and, if it deems necessary or expedient,
      to insure the war risks upon any Vessel, and the Borrower will reimburse
      the Facility Agent for the costs of so doing.

18.29 ISM CODE

      The Borrower will, and shall procure that each Owner and the Manager
      shall:

      (a)   at all times after the Delivery Date of a Vessel comply, and be
            responsible for compliance by itself and by such Vessel, with the
            ISM Code;

      (b)   at all times after the Delivery Date of a Vessel ensure that:

            (i)   the Vessel has a valid Safety Management Certificate (as
                  defined in the ISM Code);

            (ii)  the Vessel is subject to a safety management system (as
                  defined in the ISM Code) which complies with the ISM Code; and

            (iii) there is a valid Document of Compliance (as defined in the ISM
                  Code) for the Vessel, which is held on board the Vessel,

            and shall deliver to the Facility Agent, on or before the Delivery
            Date in respect of that Vessel, a copy of a valid Safety Management
            Certificate and a valid Document of Compliance in respect of the
            relevant Vessel, in each case duly certified by an officer of the
            Owner of that Vessel;

      (c)   promptly notify the Facility Agent of any actual or, upon becoming
            aware of the same, threatened withdrawal of an applicable Safety
            Management Certificate or Document of Compliance;

      (d)   promptly notify the Facility Agent of the identity of the person
            ashore designated for the purposes of paragraph 4 of the ISM Code
            and of any change in the identity of that person; and

      (e)   promptly upon becoming aware of the same notify the Facility Agent
            of the occurrence of any accident or major non-conformity (as
            defined in the ISM Code) requiring action under the ISM Code.

18.30 ISPS CODE

      The Borrower will, and shall procure that each Owner and the Manager
      shall, at all times after the Delivery Date of a Vessel:

      (a)   comply and be responsible for compliance by itself and by such
            Vessel with the ISPS Code;

      (b)   ensure that:

            (i)   the Vessel has a valid International Ship Security
                  Certificate;

            (ii)  the Vessel's security system and its associated security
                  equipment comply with section 19.1 of Part A of the ISPS Code;

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            (iii) the Vessel's security system and its associated security
                  equipment comply in all respects with the applicable
                  requirements of Chapter XI-2 of SOLAS and Part A of the ISPS
                  Code; and

            (iv)  an approved ship security plan is in place.

18.31 DIVIDENDS

(a)   The Borrower shall not be permitted to pay dividends or make any other
      distribution (whether by loan or otherwise) to its shareholders during the
      Primary Period, unless

      (i)   it has available surplus funds which, under Applicable Law and
            accounting principles in its jurisdiction of formation it is
            entitled to distribute as dividends;

      (ii)  no Event of Default has occurred and is continuing or would occur as
            a result of the payment of such dividends or other distributions;
            and

      (iii) such dividends or distributions:

            (A)   do not exceed the aggregate sum of three million Dollars
                  (US$3,000,000) annually and are not paid more frequently than
                  semi-annually; or

            (B)   utilise that portion of the proceeds of an IPO which are not
                  required to be applied towards the prepayment of the Loans in
                  accordance with Clause 6.3(b).

(b)   After the Primary Period, the Borrower shall not be entitled to pay
      dividends or make any other distribution (whether by Loan or otherwise) to
      Shareholders unless:

      (i)   such dividends or distributions with respect to any year (whether
            paid in such year or the immediately succeeding year) either do not
            exceed the aggregate of fifty (50) per cent of its after-tax profits
            for such year or are paid utilising that portion of the proceeds of
            an IPO which are not required to be applied towards the prepayment
            of the Loans in accordance with Clause 6.3(b);

      (ii)  it has available surplus funds which, under Applicable Law and
            accounting principles in its jurisdiction of formation it is
            entitled to distribute as dividends; and

      (iii) no Event of Default has occurred and is continuing or would occur as
            a result of the payment of such dividends or other distributions.

(c)   In the event that the shares in the Borrower are the subject of an IPO
      which results in the Loans being partially prepaid in accordance with
      Clause 6.3(b) by at least one hundred million Dollars (US$100,000,000),
      the Borrower shall, notwithstanding Clause 18.31(a) and (b), be entitled
      to pay dividends or distributions with respect to any year not exceeding
      Consolidated EBITDA for such year less Consolidated Interest Expense for
      such year and less the aggregate amount of repayments of principal for
      such year (other than mandatory prepayments paid pursuant to Clause 6.2
      (Mandatory prepayment - Sale of Total Loss of a Vessel) and Clauses
      6.3(b), 6.3(c) and 6.3(d)), provided that no Event of Default has occurred
      and is continuing or would occur as a result of the payment of such
      dividends or distributions.

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18.32 HEDGING STRATEGY

      The Borrower shall enter into and maintain such interest hedging
      arrangements until the Final Maturity Date, subject to the availability of
      willing hedging counterparties, which shall be:

      (a)   satisfactory to the Arranger and on terms and conditions customary
            for a transaction of this nature; and

      (b)   in respect of at least fifty (50) per cent. of amounts outstanding
            under the Loans at any time; and

      (c)   entered into no later than 1st October, 2005.

19.   VALUATION

19.1  VALUATION

      For the purposes of this Clause 19:

      (a)   the market value of any Vessel shall be the average of two (2)
            valuations certified in Dollars and carried out by two (2) Approved
            Valuers, reporting to the Facility Agent on the basis of sale for
            prompt delivery of the Vessel for cash (free of Security Interests),
            on a without charter basis and at arm's-length on normal commercial
            terms as between willing seller and buyer;

      (b)   in the case of (a) above, there shall be deducted from any value or
            valuation an amount equal to the amount which is owing or might
            become owing and which is secured on such Vessel by any prior or
            equal ranking Security Interest (other than in favour of the
            Facility Agent to secure the Secured Liabilities).

19.2  DELIVERY OF VALUATIONS

(a)   In respect of the Vessels which have, at the relevant date, been delivered
      to the Obligors, the Borrower will procure one (1) valuation within each
      consecutive six (6) month period (the first such period commencing on the
      date of drawdown of Vessel Loan 1) at the time required by the Facility
      Agent, prepared in accordance with Clause 19.1 (Valuation).

(b)   The Borrower will procure in favour of the Facility Agent and the Approved
      Valuer, as applicable, all such information, facilities and rights of
      inspection as they may reasonably (having regard to the use and operation
      of the Vessel) require in order to effect such valuations.

(c)   Subject to Subclause 19.2(e) below, all valuations shall be at the expense
      of the relevant Owner.

(d)   The Facility Agent (acting on the instructions of the Majority Lenders)
      shall be entitled to require that the Borrower provide a valuation on the
      same valuation basis from an Approved Valuer as set out in Clause 19.1(a)
      at any time up to and including the relevant Final Maturity Date provided
      that any such valuations requested by the Facility Agent when aggregated
      with the valuations to be carried out in accordance with Clause 19.2(a),
      shall not result in valuations being carried out more than once in each
      period of three (3) months. In the event that such valuation shows that
      the relevant Required Amount is not satisfied as required under Clause
      17.6, then the provisions of that Clause shall apply.

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(e)   In the event that a valuation procured by the Facility Agent pursuant to
      Subclause 19.2(d) above does show that the Required Amount is satisfied
      such valuation shall be at the expense of the Facility Agent.

(f)   If an Event of Default has occurred and is continuing, the Borrower shall
      be liable to pay for any and all appraisals by Approved Valuers prepared
      in accordance with Clause 19.1(a) at the time or times required by the
      Facility Agent.

(g)   Any valuation under this Clause 19 shall be binding and conclusive (save
      for manifest error).

20.   DEFAULT

20.1  EVENTS OF DEFAULT

      Each of the events set out in this Clause is an Event of Default.

20.2  NON-PAYMENT

      An Obligor does not pay on the due date any amount payable by it under the
      Finance Documents in the manner required under the Finance Documents,
      unless the non-payment:

      (a)   is caused by technical or administrative error; and

      (b)   is remedied within two (2) Business Days of the due date.

20.3  BREACH OF OTHER OBLIGATIONS

(a)   An Obligor does not comply with any term of Clause 17 (Financial
      Covenants) or Clause 18 (General Covenants), unless the non-compliance:

      (i)   is capable of remedy and provided such non-compliance does not have
            a Material Adverse Effect; and

      (ii)  is remedied within thirty (30) days of the occurrence of the
            non-compliance.

      The Obligors acknowledge that for the purposes of paragraph (i) above,
      non-compliance with the following provisions of this Agreement shall not
      be capable of remedy:

      (A)   Clause 18.11(a) and 18.11(b) (Security);

      (B)   Clause 18.13(a) (Registration of Vessels); and

      (C)   Clause 18.24(a)(i), (ii) and (iii) (Scope of Obligatory Insurances);
            and

      (D)   Clause 17 (Financial Covenants).

(b)   Any Obligor does not comply with any other term of the Finance Documents
      not already referred to in this Clause which the Facility Agent (acting on
      the instructions of the Majority Lenders) considers to be material, unless
      the non-compliance:

      (i)   is capable of remedy; and

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      (ii)  is remedied within thirty (30) days of the occurrence of the
            non-compliance.

20.4  MISREPRESENTATION

      A representation made or repeated by an Obligor in any Finance Document or
      in any document delivered by or on behalf of any Obligor under any Finance
      Document is incorrect in any respect which the Facility Agent (acting on
      the instructions of the Tranche A Majority Lenders) considers to be
      material when made or deemed to be repeated, unless the circumstances
      giving rise to the misrepresentation:

      (a)   are capable of remedy; and

      (b)   are remedied within thirty (30) days of the occurrence of the
            misrepresentation.

20.5  CROSS-DEFAULT

      Any of the following occurs in respect of any Obligor:

      (a)   any of its Financial Indebtedness is not paid when due (after the
            expiry of any originally applicable grace period);

      (b)   any of its Financial Indebtedness:

            (i)   becomes prematurely due and payable;

            (ii)  is placed on demand; or

            (iii) is then capable (as the result of a then existing default) of
                  being declared by a creditor to be prematurely due and payable
                  or being placed on demand,

            in each case, as a result of an event of default (howsoever
            described) and after the expiry of any applicable grace period; or

      (c)   any commitment for its Financial Indebtedness is cancelled or
            suspended as a result of an event of default (howsoever described),

      unless the aggregate amount of Financial Indebtedness falling within
      paragraphs (a) to (c) above is less than one million five hundred thousand
      Dollars (US$1,500,000) or its equivalent.

20.6  INSOLVENCY

      Any of the following occurs in respect of an Obligor:

      (a)   it is, or is deemed for the purposes of any Applicable Law to be,
            unable to pay its debts as they fall due or insolvent;

      (b)   it admits its inability to pay its debts as they fall due;

      (c)   it suspends making payments on any of its debts or announces an
            intention to do so other than where such debts are being disputed in
            good faith by appropriate proceedings (and for the

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            payment of which adequate reserves or security are at the relevant
            time maintained or provided to the extent required by GAAP);

      (d)   by reason of actual or anticipated financial difficulties, it begins
            negotiations with any creditor for the rescheduling or adjustment of
            any of its indebtedness; or

      (e)   a moratorium is declared in respect of any of its indebtedness.

      If a moratorium occurs in respect of any Obligor, the ending of the
      moratorium will not remedy any Event of Default caused by the moratorium.

20.7  INSOLVENCY PROCEEDINGS

(a)   Except as provided in paragraph (b) below, any of the following occurs in
      respect of an Obligor:

      (i)   any step is taken with a view to a moratorium, a composition,
            assignment or similar arrangement with any of its creditors;

      (ii)  a meeting of its shareholders, directors or other officers is
            convened for the purpose of considering any resolution to petition
            for or to file documents with a court for its winding-up,
            administration or dissolution or any such resolution is passed;

      (iii) any person presents a petition, or files documents with a court for
            its winding-up, administration or dissolution;

      (iv)  an order for its winding-up, administration or dissolution is made;

      (v)   any liquidator, trustee in bankruptcy, judicial custodian,
            compulsory manager, receiver, administrative receiver, administrator
            or similar officer is appointed in respect of it or any of its
            assets;

      (vi)  its directors, shareholders or other officers request the
            appointment of, or give notice of their intention to appoint a
            liquidator, trustee in bankruptcy, judicial custodian, compulsory
            manager, receiver, administrative receiver, administrator or similar
            officer; or

      (vii) any other analogous step or procedure is taken in any jurisdiction.

(b)   Paragraph (a) above does not apply to a frivolous or vexatious petition
      for winding-up presented by a creditor which is being contested in good
      faith and with due diligence and is discharged or struck out within
      twenty-one (21) days.

20.8  CREDITORS' PROCESS

      Any attachment, sequestration, distress, execution or analogous event
      affects any asset(s) of an Obligor having an aggregate value of one
      million five hundred thousand Dollars (US$1,500,000) or its equivalent,
      and is not discharged within twenty-one (21) days.

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20.9  CESSATION OF BUSINESS

      An Obligor ceases, or threatens to cease, to carry on business except as a
      result of any disposal not prohibited under this Agreement.

20.10 FAILURE TO PAY FINAL JUDGMENT

      An Obligor fails to comply with or pay any sum due from it under any final
      judgment or any final order (which, if capable of being appealed, is not
      appealed within the time limit allowed by law) made or given by any court
      of competent jurisdiction, which is in excess of one million five hundred
      thousand Dollars (US$1,500,000).

20.11 EFFECTIVENESS OF FINANCE DOCUMENTS

(a)   It is or becomes unlawful for any Obligor to perform any of its
      obligations under the Finance Documents which the Facility Agent (acting
      on the instructions of the Tranche A Majority Lenders) considers material.

(b)   Any Finance Document is not effective or is alleged by any Party (other
      than a Finance Party, an Owner or the Account Bank) to be ineffective for
      any reason and in any respect which the Facility Agent (acting on the
      instructions of the Majority Lenders) considers to be material.

(c)   An Obligor repudiates a Finance Document or evidences an intention to
      repudiate a Finance Document.

(d)   Any Party (other than a Finance Party or the Account Bank) repudiates any
      material provision of a Finance Document or evidences an intention to
      repudiate any material provision of a Finance Document.

20.12 INVALIDITY OF SECURITY DOCUMENTS

      Any of the Security Documents ceases to be valid or any of those Security
      Documents creating a Security Interest in favour of the Security Trustee
      ceases to provide a perfected first priority security interest or, as the
      context may require, a perfected second priority security interest, in
      each case in favour of the Security Trustee.

20.13 ERISA

(a)   Any Plan shall fail to satisfy the minimum funding standard required for
      any plan year or part thereof under Section 412 of the Code or Section 302
      of ERISA or a waiver of such standard or extension of any amortization
      period is sought or granted under Section 412 of the Code or Section 303
      or 304 of ERISA, a Reportable Event shall have occurred, a contributing
      sponsor (as defined in Section 4001(a)(13) of ERISA) of a Plan subject to
      Title IV of ERISA shall be subject to the advance reporting requirement of
      PBGC Regulation Section 4043.61 (without regard to subparagraph (b)(l)
      thereof) and an event described in sub-section .62, .63, .64, .65, .66,
      .67 or .68 of PBGC Regulation Section 4043 shall be reasonably expected to
      occur with respect to such Plan within the following 30 days, any Plan
      which is subject to Title IV of ERISA shall have had or is reasonably
      likely to have a trustee appointed to administer such Plan, any Plan which
      is subject to Title IV of ERISA is, shall have been or is reasonably
      likely to be terminated or to be the subject of termination proceedings
      under ERISA; any Plan shall have an Unfunded Current Liability; a
      contribution required to be made with respect to a Plan or a Foreign
      Pension Plan is not timely made; the Borrower, the Obligors or any ERISA
      Affiliate has incurred or events have happened, or reasonably expected to
      happen, that will cause it to incur any liability to or on

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      account of a Plan under Section 409, 502(i), 502(1), 515, 4062, 4063,
      4064, 4069, 4201, 4204 or 4212 of ERISA or Section 401(a)(29), 4971 or
      4975 of the Code or on account of a group health plan (as defined in
      Section 607(1) of ERISA or Section 4980B(g)(2) of the Code) under Section
      4980B of the Code; or the Borrower, or any of the Obligors, has incurred
      or is reasonably likely to incur retiree medical liabilities pursuant to
      one or more employee welfare benefit plans (as defined in Section 3(1) of
      ERISA) that provide benefits to retired employees or other former
      employees (other than as required by Section 601 of ERISA or 4980B of the
      Code);

(b)   there shall result from any such event or events the imposition of a lien,
      the granting of a security interest, or a liability or a material risk of
      incurring a liability; and

(c)   such lien, security interest or liability, individually, and/or in the
      aggregate, in the reasonable opinion of the Lenders, has had, or could
      reasonably be expected to have, a Material Adverse Effect.

20.14 ACCELERATION

(a)   If an Event of Default is outstanding, the Facility Agent may (and if the
      Tranche A Majority Lenders so instruct it, shall), by notice to the
      Borrower:

      (i)   cancel the undrawn, uncancelled amount of the Maximum Facility
            Amount; and/or

      (ii)  declare that all or part of any amounts outstanding under the
            Finance Documents are:

            (A)   immediately due and payable; and/or

            (B)   payable on demand by the Facility Agent.

(b)   If an Event of Default is outstanding in accordance with the provisions of
      Clause 20.2, 20.7, 20.9 or 20.10 but upon which the Tranche A Majority
      Lenders do not instruct the Facility Agent to act in the manner detailed
      in either paragraph (i) or (ii) above, after a period of fourteen (14)
      days plus the expiry of the relevant grace period, the Facility Agent
      shall thereafter be entitled to act in accordance with paragraphs (i) and
      (ii) above unless otherwise instructed by the Tranche A Majority Lenders.

      Any notice given under this Subclause will take effect in accordance with
      its terms.

21.   SECURITY

21.1  SECURITY TRUSTEE AS TRUSTEE

      Unless expressly provided to the contrary herein or in any Finance
      Document and except as otherwise required by Applicable Law, the Security
      Trustee holds any security created by a Security Document on trust for the
      Finance Parties, or, as the case may be, the relevant Finance Parties
      specified in the relevant Security Document.

21.2  RESPONSIBILITY

      The Security Trustee is not liable or responsible to any other Finance
      Party for:

      (a)   any failure in perfecting or protecting the security created by any
            Security Document;

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      (b)   any other action taken or not taken by it in connection with any
            Security Document,

      unless directly caused by its gross negligence or wilful misconduct.

21.3  TITLE

      The Security Trustee may accept, without enquiry, the title (if any) an
      Obligor may have to any asset over which security is intended to be
      created by any Security Document.

21.4  POSSESSION OF DOCUMENTS

      The Security Trustee is not obliged to hold in its own possession any
      Security Document, title deed or other document in connection with any
      asset over which security is intended to be created by a Security
      Document.

21.5  INVESTMENTS

      All moneys received by the Security Trustee under a Security Document
      shall be paid to the Facility Agent who shall deal with the moneys in
      accordance with the terms of this Agreement and the Subordination Deed.
      Any such moneys will until utilised, be invested in the name of, or under
      the control of, the Facility Agent in any investments selected by the
      Facility Agent (acting on the instructions of the Majority Lenders).
      Additionally, those moneys may be placed on deposit in the name of, or
      under the control of, the Facility Agent at any bank or institution
      (including itself) and upon such terms as it may think fit.

21.6  APPROVAL

      Each Finance Party confirms its approval of each Security Document.

21.7  ENFORCEMENT OF SECURITY

(a)   All instructions to the Security Trustee to enforce any Security Document
      shall be given through (and only through) the Facility Agent in accordance
      with this Clause 21.7. The Security Trustee may refrain from acting,
      exercising any right, power or discretion under any Security Document
      unless and until instructed by the Facility Agent as to whether or not
      such right, power or discretion is to be exercised, and if it is to be
      exercised, as to the manner in which it should be exercised.

(b)   The Facility Agent shall instruct the Security Trustee to enforce any of
      the Security Documents if:

      (i)   an Event of Default has occurred and is continuing; and

      (ii)  the Tranche A Majority Lenders have voted in favour of such action.

      but the Security Trustee shall not enquire as to whether such requirements
      have been satisfied.

(c)   Upon receipt of instructions in accordance with paragraph (b) above from
      the Facility Agent but subject to Clause 22.11 (Indemnities), the Security
      Trustee shall enforce any of the rights and powers that the Finance
      Parties may have under all or any of the Security Documents in accordance
      with this Agreement. If instructed by the Facility Agent due to legal
      requirements, the Security Trustee shall instruct each other Finance Party
      which is a party to a Security Document to do likewise, whereupon

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      each such Finance Party will so enforce the Security Documents to which it
      is a party in accordance with the instructions of the Security Trustee.

21.8  MANNER OF ENFORCEMENT

(a)   If the Security Trustee is instructed to enforce any Security Document
      then, subject always to the provisions of the Subordination Deed, it may
      do so in such manner as it, in its absolute discretion, sees fit and
      solely having regard to the interests of the Finance Parties as a whole
      (or, as the case may be, those Finance Parties on whose behalf it is
      holding that Security Document) and without having regard to the interests
      of any individual Finance Party.

(b)   Notwithstanding the provisions of Clause 21.8(a) to the extent that the
      Security Trustee is instructed to enforce any Security Document, it may
      refrain from doing in a jurisdiction, if in its opinion, based on legal
      advice obtained from that jurisdiction, enforcement of the Security
      Document;

      (i)   would be contrary to any law of that jurisdiction and to the extent
            applicable, to the laws of England and Wales;

      (ii)  would render it liable to any person in that jurisdiction or in
            England and Wales;

      (iii) would not be available to the Security Trustee by virtue of any
            applicable law in that jurisdiction or in England and Wales; or

      (iv)  was deemed or determined by any court or other competent authority
            in that jurisdiction or in England and Wales to be ultra vires the
            powers of the Security Trustee.

(c)   If any Finance Party is instructed by the Security Trustee due to legal
      requirements to enforce the security conferred by the Security Documents
      it will do so in accordance with the instructions of the Security Trustee.
      In giving such instructions the Security Trustee shall act in accordance
      with this Agreement and having regard to the interests of the Finance
      Parties as a whole (or, as the case may be, those Finance Parties on whose
      behalf it is holding that Security Document) and without having regard to
      the interests of any individual Finance Party.

21.9  RELEASE OF SECURITY

(a)   If a disposal of any asset subject to security created by a Security
      Document is made to a person (which is and will remain) outside the Group
      in the following circumstances:

      (i)   the Majority Lenders agree to the disposal;

      (ii)  the disposal is allowed by the terms of the Finance Documents and
            will not result or could not reasonably be expected to result in any
            breach of any term of any Finance Document;

      (iii) the disposal is being made at the request of the Facility Agent or
            the Security Trustee in circumstances where any security created by
            the Security Documents has become enforceable; or

      (iv)  the disposal is being effected by enforcement of a Security
            Document,

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      and, in any such case the Facility Agent is satisfied that the relevant
      Loan will be prepaid in full in accordance with Clause 6.2(a)(i) at the
      time of the disposal or it is a disposal within Clause 18.7(b), then the
      asset being disposed of will be released from any security over it created
      by a Security Document. However, the proceeds of any disposal (or an
      amount corresponding to them) must be applied in accordance with the
      requirements of the Finance Documents (if any).

(b)   Following the Final Maturity Date of any Loan, if that Loan has been
      irrevocably and unconditionally repaid in full to the satisfaction of the
      Finance Parties, and provided that there is no breach of Clause 17.6
      (Collateral maintenance) at such time in respect of the remaining Vessel
      or Vessels, as the case may be, then the relevant Mortgage over the Vessel
      related to that Loan shall be released.

(c)   If the Facility Agent is satisfied that a release is allowed under this
      Subclause, the Security Trustee must execute (at the request and expense
      of the relevant Obligor) any document which is reasonably required to
      achieve that release. Each other Finance Party irrevocably authorises the
      Security Trustee to execute any such document.

21.10 CO-SECURITY AGENT

(a)   The Security Trustee may appoint a separate security agent or a
      co-security agent or co-security trustee in any jurisdiction outside the
      United States of America:

      (i)   if the Security Trustee considers that without the appointment the
            interests of the Lenders under the Finance Documents might be
            materially and adversely affected;

      (ii)  for the purpose of complying with any law, regulation or other
            condition in any jurisdiction; or

      (iii) for the purpose of obtaining or enforcing a judgment or enforcing
            any Finance Document in any jurisdiction.

(b)   Any appointment under this Subclause will only be effective if the
      security agent or co-security agent or co-security trustee confirms to the
      Security Trustee and the Borrower in form and substance satisfactory to
      the Security Trustee that it is bound by the terms of this Agreement as if
      it were the Security Trustee.

(c)   The Security Trustee may remove any security agent or co-security agent or
      co-security trustee appointed by it and may appoint a new security agent
      or co-security agent in its place.

(d)   The Borrower must pay to the Security Trustee any reasonable remuneration
      paid by the Security Trustee to any security agent or co-security agent or
      co-security trustee appointed by it, together with any related costs and
      expenses properly incurred by the security agent or co-security agent or
      co-security trustee.

22.   THE ADMINISTRATIVE PARTIES

22.1  APPOINTMENT OF THE FACILITY AGENT AND DUTIES OF THE FACILITY AGENT AND THE
      SECURITY TRUSTEE

(a)   Each Finance Party (other than the Facility Agent and the Security
      Trustee) irrevocably appoints the Facility Agent to act as its agent under
      the Finance Documents.

(b)   Each Finance Party irrevocably authorises each of the Facility Agent and
      the Security Trustee to:

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      (i)   perform the duties and to exercise the rights, powers and
            discretions that are specifically given to it under the Finance
            Documents, together with any other incidental rights, powers and
            discretions; and

      (ii)  execute each Finance Document expressed to be executed by the
            Facility Agent or as the case may be, the Security Trustee.

(c)   Each of the Facility Agent and the Security Trustee has only those duties
      which are expressly specified in the Finance Documents. Those duties are
      solely of a mechanical and administrative nature.

(d)   Notwithstanding the terms of any Security Document, the Security Trustee
      will only exercise any of its powers, rights and discretions if so
      instructed by the Facility Agent.

22.2  ROLE OF THE ARRANGERS

      Except as specifically provided in the Finance Documents, the Arrangers in
      their capacity as Arrangers have no obligations of any kind to any other
      Party in connection with any Finance Document.

22.3  NO FIDUCIARY DUTIES

      Except as specifically provided in a Finance Document, nothing in the
      Finance Documents makes an Administrative Party a trustee or fiduciary for
      any other Party or any other person. No Administrative Party other than
      the Security Trustee need hold in trust any moneys paid to it for a Party
      or be liable to account for interest on those moneys.

22.4  INDIVIDUAL POSITION OF AN ADMINISTRATIVE PARTY

(a)   If it is also a Lender, each Administrative Party has the same rights and
      powers under the Finance Documents as any other Lender and may exercise
      those rights and powers as though it were not an Administrative Party.

(b)   Each Administrative Party and any Affiliate of each Administrative Party
      may:

      (i)   carry on any business with any Obligor or its related entities
            (including acting as an agent or a trustee for any other financing);
            and

      (ii)  retain any profits or remuneration it receives under the Finance
            Documents or in relation to any other business it carries on with
            any Obligor or its related entities.

22.5  RELIANCE

      Each of Facility Agent and the Security Trustee may:

      (a)   rely on any notice or document believed by it to be genuine and
            correct and to have been signed by, or with the authority of, the
            proper person;

      (b)   rely on any statement made by any person regarding any matters which
            may reasonably be assumed to be within his knowledge or within his
            power to verify;

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      (c)   engage, pay for and rely on professional advisers selected by it
            (including those representing a Party other than the Facility Agent
            or, as the case may be, the Security Trustee);

      (d)   rely on any statement made by a director or employee of any person
            regarding any matters which may reasonably be assumed to be within
            his knowledge or within his power to verify and shall be protected
            by the provisions of Clause 22.11 (Indemnities) in such reliance;
            and

      (e)   the Security Trustee may refrain from acting, exercising any right,
            power or discretion under any Finance Document unless and until
            instructed by the Facility Agent as to whether or not such right,
            power or discretion is to be exercised and if it is to be exercised,
            as to the manner in which it should be exercised;

      (f)   the Security Trustee may refrain from acting in accordance with the
            instructions of the Facility Agent or otherwise beginning any legal
            action or proceedings arising out of or in connection with any
            Finance Document until it shall have received such security and/or
            indemnity as it may reasonably require (in advance or in payment)
            for all costs, claims, losses, expenses (including legal fees) and
            liabilities and costs which it will incur or may expend in complying
            with such instructions;

      (g)   act under the Finance Documents through its personnel and agents.

22.6  MAJORITY LENDERS' INSTRUCTIONS

(a)   Each of the Facility Agent and the Security Trustee is fully protected if
      it acts on the instructions of the Majority Lenders (or, as the case may
      be, the Tranche A Majority Lenders or the Tranche B Majority Lenders or
      (in the case of the Security Trustee) the Facility Agent) in the exercise
      of any right, power or discretion or any matter not otherwise expressly
      provided for in the Finance Documents. Any such instructions given by the
      Majority Lenders will be binding on all the Lenders. In the absence of
      instructions, then unless the Finance Documents expressly provide that the
      Facility Agent or, as the case may be, the Security Trustee acts on the
      instructions of the Tranche A Majority Lenders or the Tranche B Majority
      Lenders in exercising the relevant right, power or discretion, the
      Facility Agent or, as the case may be, the Security Trustee may act as it
      considers to be in the best interests of all the Lenders.

(b)   Each Lender acknowledges and confirms that, unless expressly provided for
      to the contrary in the Finance Documents, it shall act in a reasonable
      manner when reaching any decision as to the exercise or non-exercise of
      any right, power or discretion by the Facility Agent.

(c)   The Facility Agent may assume that unless it has received notice to the
      contrary, any right, power, authority or discretion vested in any Party or
      the Majority Lenders (or, as the case may be, the Tranche A Majority
      Lenders or the Tranche B Majority Lenders) has not been exercised.

(d)   Neither the Facility Agent nor the Security Trustee is authorised to act
      on behalf of a Lender (without first obtaining that Lender's consent) in
      any legal or arbitration proceedings in connection with any Finance
      Document.

(e)   The Facility Agent or, as the case may be, the Security Trustee may
      require the receipt of security satisfactory to it, whether by way of
      payment in advance or otherwise, against any liability or loss which it
      may incur in complying with the instructions of the Majority Lenders (or,
      as the case may be, the Tranche A Majority Lenders or the Tranche B
      Majority Lenders).

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22.7  RESPONSIBILITY

(a)   No Finance Party is responsible to any other Finance Party for the
      adequacy, accuracy or completeness of:

      (i)   any Finance Document or any other document; or

      (ii)  any statement or information (whether written or oral) made in or
            supplied in connection with any Finance Document.

(b)   Without affecting the responsibility of any Obligor for information
      supplied by it or on its behalf in connection with any Finance Document,
      each Lender confirms that it:

      (i)   has made, and will continue to make, its own independent appraisal
            of all risks arising under or in connection with the Finance
            Documents (including the financial condition and affairs of each
            Obligor and its related entities and the nature and extent of any
            recourse against any Party or its assets); and

      (ii)  has not relied exclusively on any information provided to it by any
            Administrative Party in connection with any Finance Document.

22.8  EXCLUSION OF LIABILITY

(a)   Neither the Facility Agent nor the Security Trustee is liable or
      responsible to any other Finance Party for any action taken or not taken
      by it in connection with any Finance Document, unless directly caused by
      its gross negligence or wilful misconduct.

(b)   No Party (other than the Facility Agent and the Security Trustee
      respectively) may take any proceedings against any officer, employee or
      agent of the Facility Agent (or the Security Trustee, as the case may be)
      in respect of any claim it might have against the Facility Agent or the
      Security Trustee (as the case may be) or in respect of any act or omission
      of any kind by that officer, employee or agent in connection with any
      Finance Document. Any officer, employee or agent of the Facility Agent may
      rely on this Subclause and enforce its terms under the Contracts (Rights
      of Third Parties) Act 1999.

(c)   Neither the Facility Agent nor the Security Trustee is liable for any
      delay (or any related consequences) in crediting an account with an amount
      required under the Finance Documents to be paid by the Facility Agent or
      the Security Trustee if the Facility Agent, or, as the case may be, the
      Security Trustee has taken all necessary steps as soon as reasonably
      practicable to comply with the regulations or operating procedures of any
      recognised clearing or settlement system used by the Facility Agent or the
      Security Trustee for that purpose.

(d)   (i)   Nothing in this Agreement will oblige any Administrative Party to
            satisfy any know your customer requirement in relation to the
            identity of any person on behalf of any Finance Party.

      (ii)  Each Finance Party confirms to each Administrative Party that it is
            solely responsible for any know your customer requirements it is
            required to carry out and that it may not rely on any statement in
            relation to those requirements made by any other person.

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22.9  DEFAULT

(a)   Neither the Facility Agent nor the Security Trustee is obliged to monitor
      or enquire whether a Default has occurred. Neither the Facility Agent nor
      the Security Trustee is deemed to have knowledge of the occurrence of a
      Default.

(b)   If the Facility Agent or the Security Trustee:

      (i)   receives notice from a Party referring to this Agreement, describing
            a Default and stating that the event is a Default; or

      (ii)  is aware of the non-payment of any principal, interest or fee
            payable to a Finance Party (other than the Facility Agent and/or the
            Security Trustee and/or the Arranger) under this Agreement,

      it must promptly notify the other Finance Parties.

22.10 INFORMATION

(a)   Both the Facility Agent and the Security Trustee must promptly forward to
      the person concerned the original or a copy of any document which is
      delivered to the Facility Agent or, as the case may be, the Security
      Trustee, by a Party for that person.

(b)   Except where a Finance Document specifically provides otherwise, neither
      the Facility Agent nor the Security Trustee is obliged to review or check
      the adequacy, accuracy or completeness of any document it forwards to
      another Party.

(c)   Except as provided above, neither the Facility Agent nor the Security
      Trustee has any duty:

      (i)   either initially or on a continuing basis to provide any Lender with
            any credit or other information concerning the risks arising under
            or in connection with the Finance Documents (including any
            information relating to the financial condition or affairs of any
            Obligor or its related entities or the nature or extent of recourse
            against any Party or its assets) whether coming into its possession
            before, on or after the date of this Agreement; or

      (ii)  unless specifically requested to do so by a Lender in accordance
            with a Finance Document, to request any certificate or other
            document from any Obligor.

(d)   In acting as the Facility Agent, the agency division of the Facility Agent
      is treated as a separate entity from its other divisions and departments.
      Any information acquired by the Facility Agent which, in its opinion, is
      acquired by it otherwise than in its capacity as the Facility Agent may be
      treated as confidential by the Facility Agent and will not be treated as
      information possessed by the Facility Agent in its capacity as such.

(e)   Neither the Facility Agent nor the Security Trustee is obliged to disclose
      to any person any confidential information supplied to it by or on behalf
      of a member of the Group solely for the purpose of evaluating whether any
      waiver or amendment is required in respect of any term of the Finance
      Documents.

(f)   Each Obligor irrevocably authorises the Facility Agent and the Security
      Trustee to disclose to the other Finance Parties any information which, in
      its opinion, is received by it in its capacity as the Facility Agent or,
      as the case may be, the Security Trustee.

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22.11 INDEMNITIES

(a)   Without limiting the liability of any Obligor under the Finance Documents,
      each Lender must indemnify each of the Facility Agent and the Security
      Trustee for that Lender's Tranche A Pro Rata Share and/or Tranche B Pro
      Rata Share (as the case may be) of any loss or liability incurred by the
      Facility Agent in acting as the Facility Agent, or any loss or liability
      incurred by the Security Trustee in acting as the Security Trustee or in
      respect of its role as Security Trustee, except to the extent that the
      loss or liability is caused by the Facility Agent's or the Security
      Trustee's gross negligence or wilful misconduct.

(b)   The Facility Agent may deduct from any amount received by it for a Lender
      any amount due to the Facility Agent from that Lender under a Finance
      Document but unpaid.

22.12 COMPLIANCE

      Each Administrative Party may refrain from doing anything (including
      disclosing any information) which might, in its opinion, constitute a
      breach of any law or regulation or be otherwise actionable at the suit of
      any person, and may do anything which, in its opinion, is necessary or
      desirable to comply with any law or regulation.

22.13 RESIGNATION OF THE FACILITY AGENT OR THE SECURITY TRUSTEE

(a)   Either of the Facility Agent or the Security Trustee may resign by giving
      written notice to the Lenders and the Borrower, in which case the Majority
      Lenders shall appoint a successor facility agent or, as the case may be a
      successor security trustee of which the Borrower approves, such approval
      not to be unreasonably withheld or delayed.

(b)   If no successor facility agent or, as the case may be, successor security
      trustee has been appointed under paragraph (a) above within thirty (30)
      days after notice of resignation was given, the Facility Agent or, as the
      case may be Security Trustee may appoint a successor facility agent or, as
      the case may be a successor security trustee.

(c)   The resignation of the Facility Agent or, as the case may be Security
      Trustee and the appointment of any successor facility agent or, as the
      case may be the successor security trustee will both become effective only
      when the successor facility agent or, as the case may be the successor
      security trustee notifies all the Parties that it accepts its appointment.
      On giving the notification, the successor facility agent or, as the case
      may be the successor security trustee will succeed to the position of the
      Facility Agent or, as the case may be the Security Trustee and the term
      FACILITY AGENT or, as the case may be, SECURITY TRUSTEE will mean the
      successor facility agent or, as the case may be, successor security
      trustee.

(d)   The retiring Facility Agent or, as the case may be the Security Trustee
      must, at its own cost, make available to the successor Facility Agent or,
      as the case may be the successor Security Trustee such documents and
      records and provide such assistance as the successor Facility Agent or, as
      the case may be the successor Security Trustee may reasonably request for
      the purposes of transferring its functions as the Facility Agent or, as
      the case may be the Security Trustee under the Finance Documents.

(e)   Upon its resignation becoming effective, this Clause will continue to
      benefit the retiring Facility Agent or, as the case may be the retiring
      Security Trustee in respect of any action taken or not taken by it in
      connection with the Finance Documents while it was the Facility Agent or,
      as the case may be the Security Trustee, and, subject to paragraph (d)
      above, it will have no further obligations under any Finance Document.

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(f)   The Majority Lenders may, by notice to the Facility Agent or, as the case
      may be the Security Trustee, require it to resign under paragraph (a)
      above.

22.14 RELATIONSHIP WITH LENDERS

(a)   Each of the Facility Agent and the Security Trustee may treat each Lender
      as a Lender, entitled to payments under this Agreement and as acting
      through its Facility Office(s) until it has received not less than five
      (5) Business Days' prior notice from that Lender to the contrary.

(b)   The Facility Agent may at any time, and must if requested to do so by the
      Majority Lenders, convene a meeting of the Lenders.

(c)   The Facility Agent must keep a register of all the Parties and supply any
      other Party with a copy of the register on request. The register will
      include each Lender's Facility Office(s) and contact details for the
      purposes of this Agreement.

22.15 NOTICE PERIOD

      Where this Agreement specifies a minimum period of notice to be given to
      the Facility Agent or, as the case may be the Security Trustee, the
      Facility Agent or, as the case may be the Security Trustee may, at its
      discretion, accept a shorter notice period.

22.16 SURVIVAL

      The provisions of this Clause 22 shall survive the termination of this
      Agreement and shall remain for the benefit of the Security Trustee even
      after its resignation under the terms of this Agreement.

23.   EVIDENCE AND CALCULATIONS

23.1  ACCOUNTS

      Accounts maintained by a Finance Party in connection with this Agreement
      are conclusive (save for manifest error) evidence of the matters to which
      they relate for the purpose of any litigation or arbitration proceedings
      and the Facility Agent will maintain separate accounts for each Loan.

23.2  CERTIFICATES AND DETERMINATIONS

      Any certification or determination by a Finance Party of a rate or amount
      under the Finance Documents will be, in the absence of manifest error,
      conclusive evidence of the matters to which it relates.

23.3  CALCULATIONS

      Any interest or fee accruing under this Agreement accrues from day to day
      and is calculated on the basis of the actual number of days elapsed and a
      year of 360 days.

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24.   FEES

24.1  COMMITMENT FEE

(a)   The Borrower must pay a commitment fee calculated at the rate of fifty
      (50) basis points per annum on the undrawn, uncancelled amount of the
      Total Commitments to the Facility Agent for and on behalf of the Lenders.
      The commitment fee shall accrue from the date of this Agreement.

(b)   Accrued commitment fee is payable on the last day of the Availability
      Period. Accrued commitment fee is also payable to the Facility Agent for a
      Lender on the date its Commitment is otherwise cancelled or drawn in full.

24.2  UNDERWRITING AND STRUCTURING FEE

      The Borrower must pay to the Arranger underwriting and structuring fees in
      the manner agreed in a Fee Letter between the Arranger, the Facility Agent
      and the Borrower.

24.3  AGENCY AND SECURITY TRUSTEE FEE

      The Borrower must pay to the Facility Agent and the Security Trustee an
      agency and security trustee fee in the manner agreed in a Fee Letter
      between the Arranger, the Facility Agent and the Borrower.

24.4  REFUND OF FEES

      The fees referred to in this Clause 24 and the Fee Letters shall not be
      refunded under any circumstances whatsoever once they have been paid.

25.   INDEMNITIES AND BREAK COSTS

25.1  CURRENCY INDEMNITY

(a)   Each of the Obligors shall, as an independent obligation and within three
      (3) Business Days of demand, indemnify each Finance Party against any
      cost, loss or liability which that Finance Party incurs as a consequence
      of:

      (i)   the Finance Party receiving an amount in respect of an Obligor's
            liability under the Finance Documents; or

      (ii)  that liability being converted into a claim, proof, judgment or
            order,

      in a currency other than the currency in which the amount is expressed to
      be payable under the relevant Finance Document.

(b)   Each of the Obligors waives any right it may have in any jurisdiction to
      pay any amount under the Finance Documents in a currency other than that
      in which it is expressed to be payable.

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25.2  OTHER INDEMNITIES

(a)   Each of the Obligors shall, as an independent obligation and within three
      (3) Business Days of demand, indemnify each Finance Party against any
      cost, loss or liability which that Finance Party incurs as a consequence
      of:

      (i)   the occurrence of any Event of Default;

      (ii)  any failure by an Obligor to pay any amount due under a Finance
            Document on its due date;

      (iii) (other than by reason of gross negligence or default by that Finance
            Party) a Loan (or part of a Loan) not being made after a Request has
            been delivered for that Loan; or

      (iv)  a Loan (or part of a Loan) not being prepaid on the date and in the
            amount specified under a notice of prepayment.

      The liability of the Obligors in each case includes any cost, loss or
      expense on account of funds borrowed, contracted for or utilised to fund
      any amount payable under any Finance Document, any amount repaid or
      prepaid or any Loan.

(b)   Each Obligor must indemnify against any cost, loss or liability incurred
      by any Finance Party as a result of:

      (i)   investigating any event which that Finance Party reasonably believes
            to be a Default; or

      (ii)  acting or relying on any notice of an Obligor which that Finance
            Party reasonably believes to be genuine, correct and appropriately
            authorised.

(c)   Each Obligor must indemnify and agree to hold harmless the Finance Parties
      and in each case, each of its and their Affiliates and each of their
      respective officers, directors, employees, agents, advisors and
      representatives (each, an INDEMNIFIED PARTY) from and against any Losses,
      joint or several, that may be incurred by or asserted or awarded against
      any Indemnified Party, in each case arising out of or in connection with
      or relating to any claim, investigation, litigation or proceeding (or the
      preparation of any defence with respect thereto) commenced or threatened
      in relation to the Finance Documents or the Related Contracts (or the
      transactions contemplated hereby or thereby) or any use made or proposed
      to be made with the proceeds of the Facility. This indemnity shall apply
      whether or not such claims, investigation, litigation or proceeding is
      brought by an Obligor, the shareholders of an Obligor or the creditors of
      an Obligor, an Indemnified Party or any other person, or an Indemnified
      Party is otherwise a party thereto, except to the extent such Losses are
      found in a final, non-appealable judgment by a court of competent
      jurisdiction to have resulted from such Indemnified Party's gross
      negligence or wilful misconduct.

(d)   Each Obligor must indemnify and hold each Finance Party harmless on a full
      indemnity basis, from and against each and every Loss:

      (i)   arising directly or indirectly out of or in any way connected with
            the ownership, possession, performance, transportation, management,
            sale, import to or export from any jurisdiction, control, use or
            operation, registration, navigation, certification, classification,
            management, manning, provisioning, the provision of bunkers and
            lubricating oils, testing, design, condition, delivery, acceptance,
            leasing, sub-leasing, chartering, insurance, maintenance, repair,
            service,

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            modification, refurbishment, drydocking, survey, conversion,
            overhaul, replacement, removal, repossession, return, redelivery,
            storage, sale, disposal, the complete or partial removal,
            decommissioning, making safe, destruction, abandonment or loss by
            any of the Owners or any other person of any of the Vessels or
            caused by any of the Vessels becoming a wreck or an obstruction to
            navigation, whether or not such liability may be attributable to any
            defect in any of the Vessels or to the design, construction or use
            thereof or from any maintenance, service, repair, drydocking,
            overhaul, inspection or for any other reason whatsoever (whether
            similar to any of the foregoing or not), and regardless of when the
            same shall arise and whether or not any of the Vessels (or any part
            thereof) is in possession or control of the relevant Owner or the
            Manager or any other person and whether or not the same is in United
            Kingdom waters or abroad;

      (ii)  arising directly or indirectly out of or in any way connected with
            any Release of Hazardous Material, any Environmental Claim, or any
            breach of an Environmental Law or the terms and conditions of an
            Environmental Approval;

      (iii) as a consequence of any claim that any design, article or material
            in any of the Vessels or any part thereof or relating thereto or the
            operation or use thereof constitutes an infringement of patent,
            copyright, design or other proprietary right; or

      (iv)  in preventing or attempting to prevent the arrest, seizure, taking
            in execution, requisition, impounding, forfeiture or detention of
            any of the Vessels or in securing or attempting to secure the
            release of any of the Vessels.

(e)   Each Obligor shall indemnify and keep the Security Trustee (and, without
      limitation, its directors, officers, agents and employees) indemnified and
      hold each of them harmless from and against any and all losses,
      liabilities, claims, actions, damages, fees and expenses, (including
      lawyers' fees and disbursements), arising out of or in connection with
      this Agreement, save as are caused by their own gross negligence or wilful
      default.

25.3  BREAK COSTS

(a)   Each Owner must pay to each Lender, or, as the case may be, each Swap
      Bank, its Break Costs in accordance with this Agreement.

(b)   In respect of a Lender, Break Costs are the amount (if any) determined by
      the relevant Lender by which:

      (i)   the interest which that Lender would have received for the period
            from the date of receipt of payment of a Loan or an overdue amount
            to the last day of the current Term for that Loan or overdue amount
            if the principal or overdue amount received had been paid on the
            last day of that Term;

      exceeds

      (ii)  the amount which that Lender would be able to obtain by placing an
            amount equal to the amount received by it on deposit with a leading
            bank in the appropriate interbank market for a period starting on
            the Business Day following receipt and ending on the last day of the
            applicable Term.

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(c)   In respect of each Swap Bank, Break Costs are the amount (if any)
      determined by such Swap Bank in accordance with the terms of the relevant
      Swap Agreement which would indemnify that Swap Bank against any loss or
      liability that it incurs as a consequence of terminating all or any part
      of the swap or other hedging arrangements under any Swap Agreement.

(d)   Each Lender, or as the case may be, each Swap Bank must supply to the
      Owners details of the amount of any Break Costs claimed by it under this
      Clause.

26.   EXPENSES

26.1  INITIAL COSTS

      The Borrower must pay to each of the Arranger, the Security Trustee and
      the Facility Agent the amount of all reasonable or otherwise fixed or
      capped costs and expenses (including legal fees) incurred by it in
      connection with (but not limited to) the negotiation, preparation,
      printing and execution of the Finance Documents.

26.2  SUBSEQUENT COSTS

      The Borrower must pay to each of the Arranger, the Security Trustee and
      the Facility Agent the amount of all costs and expenses (including legal
      fees) incurred by it in connection with:

      (a)   the negotiation, preparation, printing and execution of any Finance
            Document (other than a Transfer Certificate or any other document
            effecting syndication to a New Lender) executed after the date of
            this Agreement; and

      (b)   any amendment, waiver or consent requested by or on behalf of an
            Owner or specifically allowed by this Agreement, including but not
            limited to any amendments required to the Finance Documents as a
            result of the issuance of a Combination Notice pursuant to the
            provisions of Clause 28.

26.3  ENFORCEMENT COSTS

      The Borrower must pay to each Finance Party the amount of all costs and
      expenses (including legal fees) incurred by it in connection with the
      enforcement or attempted enforcement of, or the preservation or attempted
      preservation of any rights under, any Finance Document.

27.   WAIVER OF CONSEQUENTIAL DAMAGES

      In no event shall any Finance Party be liable on any theory of liability
      for any special, indirect, consequential or punitive damages and each
      Obligor hereby waives, releases and agrees (for itself and on behalf of
      its Subsidiaries) not to sue upon any such claim for any such damages
      whether or not accrued and whether or not known or suspected to exist in
      its favour, unless caused by the fraud, wilful default or recklessness of
      the relevant Finance Party in performance of any of its obligations under
      this Agreement or any of the Finance Documents.

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28.   CHANGES TO TRANCHE A AND TRANCHE B

28.1  COMBINATION NOTICE

      Each of the Obligors and the Finance Parties agrees and acknowledges that
      in the event that the Tranche B Loans are not syndicated within forty five
      (45) days of the drawdown of Vessel Loan 1, the Facility Agent may (acting
      on the instructions of the Lenders) give notice to the Borrower of the
      Finance Parties intention to combine the Tranche A Loans and Tranche B
      Loans into a single tranche (the COMBINATION NOTICE).

28.2  EFFECT OF COMBINATION NOTICE

      Upon receipt by the Borrower of the Combination Notice:

      (a)   all references to Tranche B Loans and Tranche B Lenders shall be
            construed as being references to Tranche A Loans and Tranche A
            Lenders;

      (b)   all amounts drawn under Tranche B Loans and any undrawn Commitments
            in respect of Tranche B Loans shall be treated as being amounts
            drawn under Tranche A Loans and undrawn Commitments in respect of
            Tranche A Loans and the Commitments of the Tranche A Lenders, the
            Maximum Available Tranche A Loan Amount and the Maximum Tranche A
            Facility Amount shall be adjusted and construed accordingly;

      (c)   the Facility Agent shall issue a new repayment schedule, which will
            replace Schedule 6;

      (d)   Clause 6.3(c) of this Agreement shall be deleted in its entirety and
            replaced with the following:

            "(c)  In the event that the shares in the Borrower are not the
                  subject of an IPO which results in the Loans being prepaid by
                  at least fifty million Dollars (US$50,000,000) within twelve
                  (12) months of the date of this Agreement (the EQUITY PERIOD),
                  the Borrower shall, after the expiry of the Equity Period,
                  partially prepay the Loans by paying to the Facility Agent a
                  sum equal to eighteen point seven five (18.75) per cent. of
                  the total principal amount that is outstanding following the
                  date that the last Loan (in time) was drawn down in accordance
                  with the terms and conditions set out in this Agreement (the
                  EQUITY PAYMENT). The Borrower acknowledges and agrees to
                  procure that the Equity Payment is funded either (i) through
                  the provision by the Ultimate Shareholders of further equity
                  contributions contributed on a several basis in the
                  proportions set out in the Equity Claw Agreement, either from
                  their own funds or from funds procured from third parties
                  unconnected with the Borrower, or (ii) by Quintana or the
                  Borrower raising financing (debt and/or equity) which, if such
                  financing is raised by the Borrower, is fully subordinated to
                  the Loans on terms acceptable to the Facility Agent (acting on
                  the instructions of the Majority Lenders). The Equity Payment
                  shall be applied by the Facility Agent against Loans, applied
                  against Repayment Instalments in inverse order of maturity.
                  For the avoidance of doubt, such Equity Payment shall be
                  reduced to the extent that, and shall not be required to be
                  made if (i) Quintana raises financing (whether debt or equity)
                  equal to such payment which is contributed to the Borrower, or
                  (ii) the Borrower raises financing (whether debt or equity)
                  equal to such payment which financing shall be fully
                  subordinated to the Loans.

                                       90
<PAGE>

      (e)   The definition of Tranche A Margin in Clause 1.1 of this Agreement
            shall be amended by deleting the reference to "1.625" and replacing
            it with a reference to "1.75" which margin shall apply to the whole
            of the Loans and the definition of Tranche B Margin shall be deleted
            and all references to Tranche B Margin shall be construed as Tranche
            A Margin.

      (f)   each of the Obligors shall execute upon request by the Facility
            Agent such further deeds, notices, acknowledgments or documents
            which are necessary or desirable in order to ensure that the Finance
            Documents are amended to reflect the Combination Notice, including
            but not limited to the execution by each of the Owners of:

            (i)   first priority mortgages to secure the Maximum Facility
                  Amount;

            (ii)  second priority mortgages to secure the Swap Agreements; and

            (iii) such other security agreements as the Facility Agent may
                  consider necessary or desirable in connection with the
                  Combination Notice or to ensure the validity and
                  enforceability of any Finance Document,

      such documents to be on substantially the same terms, mutatis mutandis, as
      the Security Agreements and Finance Documents.

29.   AMENDMENTS AND WAIVERS

29.1  PROCEDURE

(a)   Except as provided in this Clause, no term of the Finance Documents may be
      amended or waived without the agreement of the Borrower and the Majority
      Lenders. The Facility Agent may effect, on behalf of any Finance Party, an
      amendment or waiver allowed under this Clause.

(b)   The Facility Agent must promptly notify the other Parties of any amendment
      or waiver effected by it under paragraph (a) above. Any such amendment or
      waiver is binding on all the Parties.

29.2  EXCEPTIONS

(a)   An amendment or waiver which relates to:

      (i)   the definition of MAJORITY LENDERS in Clause 1.1 (Definitions);

      (ii)  an extension of the date of payment of any amount to a Lender under
            the Finance Documents;

      (iii) a reduction in the amount of any payment of principal, interest, fee
            or other amount payable to a Lender under the Finance Documents;

      (iv)  an increase in, or an extension of, a Commitment or the Total
            Commitments;

      (v)   a release of an Obligor;

      (vi)  a term of a Finance Document which expressly requires the consent of
            each Lender;

                                       91
<PAGE>

      (vii)  the right of a Lender to assign or transfer its rights or
             obligations under the Finance Documents; or

      (viii) this Clause,

      may only be made with the consent of all the Lenders and Borrower such
      consent not to be unreasonably withheld or delayed.

(b)   An amendment or waiver which relates to a reduction in the Tranche A
      Margin or to the definition of Tranche A Majority Lenders may only be made
      with the consent of all the Tranche A Lenders and the Borrower.

(c)   An amendment or waiver which relates to a reduction in the Tranche B
      Margin or to the definition of Tranche B Majority Lenders, may only be
      made with the consent of all the Tranche B Lenders and the Borrower.

(d)   An amendment or waiver which relates to the rights or obligations of an
      Administrative Party may only be made with the consent of that
      Administrative Party and the Borrower.

29.3  REQUIRED LENDERS

      If, in connection with any proposed change, waiver, discharge or
      termination to any of the provisions of this Agreement as contemplated by
      clauses (i) through (vi), inclusive of Clause 29.2(a), the consent of the
      Required Lenders is obtained but the consent of one or more of such other
      Lenders whose consent is required is not obtained, then the Borrower shall
      have the right, so long as all non-consenting Lenders whose individual
      consent is required are treated as described in either clauses (A) or (B)
      below, to either (A) replace each such non-consenting Lender or Lenders
      (or, at the option of the Borrower if the respective Lender's consent is
      required with respect to less than all Loans (or related Commitments), to
      replace only the respective Commitments and/or Loans of the respective
      non-consenting Lender which gave rise to the need to obtain such Lender's
      individual consent) with one or more Replacement Lenders so long as at the
      time of such replacement, each such Replacement Lender consents to the
      proposed change, waiver, discharge or termination or (B) terminate such
      non-consenting Lender's Commitment (if such Lender's consent is required
      as a result of its Commitment), and/or repay outstanding Loans and
      terminate any outstanding Commitments of such Lender which gave rise to
      the need to obtain such Lender's consent, in accordance with Clause 29.2,
      provided that, unless the Commitments that are terminated, and Loans that
      are repaid, pursuant to preceding clause (B) are immediately replaced in
      full at such time through the addition of new Lenders or the increase of
      the Commitments and/or outstanding Loans of existing Lenders (who in each
      case must specifically consent thereto), then in the case of any action
      pursuant to preceding clause (B) the Required Lenders (determined before
      giving effect to the proposed action) shall specifically consent thereto,
      provided, further, that in any event the Borrower shall not have the right
      to replace a Lender, terminate its Commitment or repay its Loans solely as
      a result of the exercise of such Lender's rights (and the withholding of
      any required consent by such Lender) pursuant to this Agreement.

29.4  CHANGE OF CURRENCY

      If a change in any currency of a country occurs (including where there is
      more than one currency or currency unit recognised at the same time as the
      lawful currency of a country), the Finance Documents will be amended to
      the extent the Facility Agent (acting reasonably and on the instructions
      of the

                                       92
<PAGE>

      Majority Lenders and after consultation with the Borrower) determines is
      necessary to reflect the change.

29.5  WAIVERS AND REMEDIES CUMULATIVE

      The rights of each Finance Party under the Finance Documents:

      (a)   may be exercised as often as necessary;

      (b)   are cumulative and not exclusive of its rights under the general
            law; and

      (c)   may be waived only in writing and specifically.

      Delay in exercising or non-exercise of any right is not a waiver of that
      right.

30.   CHANGES TO THE PARTIES

30.1  ASSIGNMENTS AND TRANSFERS BY OBLIGORS

      The Obligors may not assign or transfer any of their respective rights and
      obligations under the Finance Documents without the prior consent of all
      the Lenders.

30.2  ASSIGNMENTS AND TRANSFERS BY LENDERS

(a)   A Lender (the EXISTING LENDER) may, subject to the following provisions of
      this Subclause, at any time assign or transfer (including by way of
      novation) any of its rights and obligations under this Agreement to
      another bank, financial institution or to a trust, fund or other entity
      which is regularly engaged or established for the purpose of making,
      purchasing or otherwise investing in loans, securities or other financial
      assets (the NEW LENDER).

(b)   Unless the Borrower and the Facility Agent otherwise agree, a transfer of
      part of a Commitment or the rights and obligations under this Agreement by
      the Existing Lender must be in a minimum amount of five million Dollars
      (US$5,000,000).

(c)   The consent of the Borrower is required for any assignment or transfer
      unless the New Lender is another Lender or an Affiliate of a Lender or an
      Event of Default has occurred and is continuing. The consent of the
      Borrower must not be unreasonably withheld or delayed.

(d)   A transfer of obligations will be effective only if:

      (i)   the obligations are novated in accordance with the following
            provisions of this Clause; and

      (ii)  the New Lender confirms to the Facility Agent and the Borrower in
            form and substance satisfactory to the Facility Agent that it is
            bound by the terms of this Agreement as a Lender. On the transfer
            becoming effective in this manner the Existing Lender will be
            released from its obligations under this Agreement to the extent
            that they are transferred to the New Lender; and

      (iii) the New Lender enters into the Subordination Deed by a Deed of
            Accession (as defined in the Subordination Deed).

                                       93
<PAGE>

(e)   Unless the Facility Agent otherwise agrees, the New Lender must pay to the
      Facility Agent for its own account, on or before the date any assignment
      or transfer occurs, a fee of three thousand five hundred Dollars
      (US$3,500).

(f)   Any reference in this Agreement to a Lender includes a New Lender but
      excludes a Lender if no amount is or may be owed to or by it under this
      Agreement.

30.3  PROCEDURE FOR TRANSFER BY WAY OF NOVATIONS

(a)   In this Subclause:

      TRANSFER DATE means, for a Transfer Certificate, the later of:

      (i)   the proposed Transfer Date specified in that Transfer Certificate;
            and

      (ii)  the date on which the Facility Agent executes that Transfer
            Certificate.

(b)   A novation is effected if:

      (i)   the Existing Lender and the New Lender deliver to the Facility Agent
            a duly completed Transfer Certificate; and

      (ii)  the Facility Agent executes it.

(c)   On the Transfer Date:

      (i)   the New Lender will assume the rights and obligations of the
            Existing Lender expressed to be the subject of the novation in the
            Transfer Certificate in substitution for the Lender; and

      (ii)  the Existing Lender will be released from those obligations and
            cease to have those rights.

(d)   Each Party (other than the Existing Lender and the New Lender) irrevocably
      authorises the Facility Agent to execute any duly completed Transfer
      Certificate on its behalf.

30.4  LIMITATION OF RESPONSIBILITY OF EXISTING LENDER

(a)   Unless expressly agreed to the contrary, an Existing Lender is not
      responsible to a New Lender for:

      (i)   the legality, validity, effectiveness, completeness, accuracy,
            adequacy or enforceability of any Finance Document or any other
            document;

      (ii)  the financial condition of any Obligor;

      (iii) the performance and observance by any Obligor of its obligations
            under the Finance Documents or any other documents; or

      (iv)  the accuracy of any statement or information (whether written or
            oral) made in or supplied in connection with any Finance Document,

      and any representations or warranties implied by law are excluded.

                                       94
<PAGE>

(b)   Each New Lender confirms to the Existing Lender that it:

      (i)   has made, and will continue to make, its own independent appraisal
            of all risks arising under or in connection with the Finance
            Documents (including the financial condition and affairs of the
            Obligors and its related entities and the nature and extent of any
            recourse against any Party or its assets) in connection with its
            participation in this Agreement; and

      (ii)  has not relied exclusively on any information supplied to it by the
            Existing Lender in connection with any Finance Document.

(c)   Nothing in any Finance Document requires an Existing Lender to:

      (i)   accept a re-transfer from a New Lender of any of the rights and
            obligations assigned or transferred under this Clause; or

      (ii)  support any losses incurred by the New Lender by reason of the
            non-performance by an Owner of its obligations under any Finance
            Document or otherwise.

30.5  COSTS RESULTING FROM CHANGE OF LENDER OR FACILITY OFFICE

(a)   If:

      (i)   a Lender assigns or transfers any of its rights and obligations
            under the Finance Documents or changes its Facility Office; and

      (ii)  as a result of circumstances existing at the date of assignment,
            transfer or change occurs, the Borrower would be obliged to pay a
            Tax Payment or an Increased Cost,

      then, unless the assignment, transfer or change is made by a Lender to
      mitigate any circumstances giving rise to a Tax Payment, Increased Cost or
      a right to be prepaid and/or cancelled by reason of illegality, the
      Borrower need only pay that Tax Payment or Increased Cost to the same
      extent that it would have been obliged to if no assignment, transfer or
      change had occurred.

(b)   Without prejudice to Clause 30.5(a) above, if a Lender assigns or
      transfers any of its rights and obligations under the Finance Documents
      pursuant to the terms of Clause 30.2 (Assignments and transfers by
      Lenders), then the transferring or assigning Lender shall pay all
      reasonable costs and expenses directly incurred by the other Parties to
      this Agreement as a result of such transfer or assignment.

30.6  CHANGES TO THE REFERENCE BANKS

      If a Reference Bank (or, if a Reference Bank is not a Lender, the Lender
      of which it is an Affiliate) ceases to be a Lender, the Facility Agent
      must (in consultation with the Borrower) appoints another Lender or an
      Affiliate of a Lender to replace that Reference Bank.

30.7  APPOINTMENT OF ADDITIONAL ARRANGERS

      The Arranger may agree that a New Lender be appointed as an additional
      mandated lead arranger and the transfer certificate in respect of such New
      Lender shall include a confirmation by such New Lender that they accede to
      this Agreement as an arranger, and "Arranger" shall be construed
      accordingly.

                                       95
<PAGE>

31.   DISCLOSURE OF INFORMATION

      Each Finance Party agrees to maintain as confidential all confidential
      information provided to them by the Obligors and designated as
      confidential, provided that each Finance Party may disclose to any of its
      Affiliates and any other person such information as that Finance Party
      shall consider appropriate in respect of information supplied to it, by or
      on behalf of an Obligor, the Group, any Charterer, or the Finance
      Documents:

      (a)   to (or through) whom that Lender assigns or transfers (or may
            potentially assign or transfer) all or any of its rights and
            obligations under this Agreement;

      (b)   with (or through) whom that Lender enters into (or may potentially
            enter into) any sub-participation in relation to, or any other
            transaction under which payments are to be made by reference to,
            this Agreement or any Obligor; or

      (c)   to whom, and to the extent that, information is required to be
            disclosed by any Applicable Law,

      (d)   to any other Finance Party; or

      (e)   to its and any Obligors' professional advisors,

      PROVIDED ALWAYS that, in relation to paragraph (b), the person to whom the
      information is to be given has entered into a confidentiality undertaking
      in form and substance satisfactory to the Borrower.

32.   SET-OFF

      A Finance Party may set off any matured obligation owed to it by an
      Obligor under the Finance Documents against any obligation (whether or not
      matured) owed by that Finance Party to that Obligor regardless of the
      place of payment, booking branch or currency of either obligation. If the
      obligations are in different currencies, that Finance Party may convert
      either obligation at a market rate of exchange in its usual course of
      business for the purpose of the set-off.

33.   PRO RATA SHARING

33.1  REDISTRIBUTION

      If any amount owing by an Obligor under this Agreement to a Lender (the
      RECOVERING LENDER) is discharged by payment, set-off or any other manner
      other than through the Facility Agent under this Agreement (a RECOVERY),
      then:

      (a)   the recovering Lender must, within three (3) Business Days, supply
            details of the recovery to the Facility Agent;

      (b)   the Facility Agent must calculate whether the recovery is in excess
            of the amount which the recovering Lender would have received if the
            recovery had been received by the Facility Agent under this
            Agreement; and

      (c)   the recovering Lender must pay to the Facility Agent an amount equal
            to the excess (the REDISTRIBUTION).

                                       96
<PAGE>

33.2  EFFECT OF REDISTRIBUTION

(a)   The Facility Agent must treat a redistribution as if it were a payment by
      the relevant Obligor under this Agreement and distribute it among the
      Lenders, other than the recovering Lender, accordingly.

(b)   When the Facility Agent makes a distribution under paragraph (a) above,
      the recovering Lender will be subrogated to the rights of the Finance
      Parties which have shared in that redistribution.

(c)   If and to the extent that the recovering Lender is not able to rely on any
      rights of subrogation under paragraph (b) above, the relevant Obligor will
      owe the recovering Lender a debt which is equal to the redistribution,
      immediately payable and of the type originally discharged.

(d)   If:

      (i)   a recovering Lender must subsequently return a recovery, or an
            amount measured by reference to a recovery, to an Obligor and

      (ii)  the recovering Lender has paid a redistribution in relation to that
            recovery,

      each Finance Party must reimburse the recovering Lender all or the
      appropriate portion of the redistribution paid to that Finance Party,
      together with interest for the period while it held the re-distribution.
      In this event, the subrogation in paragraph (b) above will operate in
      reverse to the extent of the reimbursement.

33.3  EXCEPTIONS

      Notwithstanding any other term of this Clause, a recovering Lender need
      not pay a redistribution to the extent that:

      (a)   it would not, after the payment, have a valid claim against the
            relevant Obligor in the amount of the redistribution; or

      (b)   it would be sharing with another Finance Party any amount which the
            recovering Lender has received or recovered as a result of legal or
            arbitration proceedings, where:

            (i)   the recovering Lender notified the Facility Agent of those
                  proceedings; and

            (ii)  the other Finance Party had an opportunity to participate in
                  those proceedings but did not do so or did not take separate
                  legal or arbitration proceedings as soon as reasonably
                  practicable after receiving notice of them.

34.   SEVERABILITY

      If a term of a Finance Document is or becomes illegal, invalid or
      unenforceable in any jurisdiction, that shall not affect:

      (a)   the legality, validity or enforceability in that jurisdiction of any
            other term of the Finance Documents; or

                                       97
<PAGE>

      (b)   the legality, validity or enforceability in other jurisdictions of
            that or any other term of the Finance Documents.

35.   COUNTERPARTS

      Each Finance Document may be executed in any number of counterparts and by
      facsimile provided that original signed copies are provided within a
      reasonable period of time thereafter. This has the same effect as if the
      signatures on the counterparts were on a single copy of the Finance
      Document.

36.   NOTICES

36.1  IN WRITING

(a)   Any communication in connection with a Finance Document must be in writing
      and, unless otherwise stated, may be given in person, by post, fax, e-mail
      or by any other electronic communication approved by the Facility Agent;

(b)   For the purpose of the Finance Documents, an electronic communication will
      be treated as being in writing.

(c)   Unless it is agreed to the contrary, any consent or agreement required
      under a Finance Document must be given in writing.

36.2  CONTACT DETAILS

(a)   Except as provided below, the contact details of each Party for all
      communications in connection with the Finance Documents are those notified
      by that Party for this purpose to the Facility Agent on or before the date
      it becomes a Party.

(b)   The contact details of the Borrower, Quintana Management and each of the
      Owners for this purpose are:

      Address: Quintana Maritime Limited
               Pandoras 13 & Kyprou Str.
               166 74 Glyfada - Greece

      Fax number: +11 30 210 8986823
      Attention: Mr Stamatis Molaris

(c)   The contact details of Quintana are:

      Address: Quintana Maritime Investors LLC
               601 Jefferson Street
               Suite 3600
               Houston
               Texas
               Unites States of America

      Fax number: +1 713 751 7517
      Attention: Mr Wyatt Hogan

                                       98
<PAGE>

(d)   The contact details of the Facility Agent for this purpose are:

      Address: Loans Agency Office
               2nd Floor
               4 Harbour Exchange Square
               London, E14 9GE

      Fax number: +44 (0)208 636 3824
      Attention: Ian Hayton

(e)   The contact details of the Security Trustee are:

      Address: Citigroup Centre
               Canada Square
               Canary Wharf
               London E14 5LB

      Fax number: +44 (0) 20 7500 5877
      Attention: Agency and Trust

(f)   A Party may change its contact details by giving five (5) Business Days'
      notice to the Facility Agent or (in the case of the Facility Agent) to the
      other Parties.

(g)   Where a Party nominates a particular department or officer to receive a
      communication, a communication will not be effective if it fails to
      specify that department or officer.

36.3  EFFECTIVENESS

(a)   Except as provided below, any communication in connection with a Finance
      Document will be deemed to be given as follows:

      (i)   if delivered in person, at the time of delivery;

      (ii)  if posted, five (5) days after being deposited in the post, postage
            prepaid, in a correctly addressed envelope;

      (iii) if by fax, when received in legible form; and

      (iv)  if by e-mail or any other electronic communication, when received in
            legible form.

(b)   A communication given under paragraph (a) above but received on a
      non-working day or after business hours in the place of receipt will only
      be deemed to be given on the next working day in that place.

(c)   A communication to the Facility Agent will only be effective on actual
      receipt by it.

36.4  OBLIGORS

      All communications under the Finance Documents to or from an Obligor must
      be sent through the Facility Agent.

                                       99
<PAGE>

36.5  ENTIRE AGREEMENT

      This Agreement and the other Finance Documents entered into pursuant to
      this Agreement contain the whole agreement between the parties relating to
      the transactions contemplated by this Agreement and supersede all previous
      agreements between the parties relating to such transactions.

37.   LANGUAGE

(a)   Any notice given in connection with a Finance Document must be in English.

(b)   Any other document provided in connection with a Finance Document must be:

      (i)   in English; or

      (ii)  (unless the Facility Agent otherwise agrees) accompanied by a
            certified English translation. In this case, the English translation
            prevails unless the document is a statutory or other official
            document.

38.   GOVERNING LAW

      This Agreement is governed by English law.

39.   ENFORCEMENT

39.1  JURISDICTION

(a)   The English courts have jurisdiction to settle any dispute in connection
      with any Finance Document.

(b)   The English courts are the most appropriate and convenient courts to
      settle any such dispute.

(c)   This Clause is for the benefit of the Lenders only. To the extent allowed
      by law, the Lenders (either directly or through an Administrative Party)
      may take:

      (i)   proceedings in any other court; and

      (ii)  concurrent proceedings in any number of jurisdictions.

39.2  SERVICE OF PROCESS

(a)   Each of the Obligors irrevocably appoints Law Debenture Corporation of
      Fifth Floor, 100 Wood Street, London EC2V 7EX as its agent under the
      Finance Documents for service of process in any proceedings before the
      English courts.

(b)   If any person appointed as process agent is unable for any reason to act
      as agent for service of process, the relevant Obligor or Obligors must
      immediately appoint another agent on terms acceptable to the Facility
      Agent. Failing this, the Facility Agent may appoint another agent for this
      purpose.

(c)   Each of the Obligors agree that failure by a process agent to notify it of
      any process will not invalidate the relevant proceedings.

                                       100
<PAGE>

(d)   This Clause does not affect any other method of service allowed by law.

39.3  WAIVER OF IMMUNITY

      Each of the Obligors irrevocably and unconditionally:

      (a)   agrees not to claim any immunity from proceedings brought by a
            Finance Party against it in relation to a Finance Document and to
            ensure that no such claim is made on its behalf;

      (b)   consents generally to the giving of any relief or the issue of any
            process in connection with those proceedings; and

      (c)   waives all rights of immunity in respect of it or its assets.

THIS AGREEMENT has been entered into on the date stated at the beginning of this
Agreement.

                                       101

<PAGE>

                                   SCHEDULE 1

                                ORIGINAL PARTIES

                                     PART 1

                           THE OWNERS AND THE VESSELS

<TABLE>
<CAPTION>
                                                          COUNTRY OF
    NAME OF OWNER                SELLER                    FORMATION                FLAG OF VESSEL            NAME OF VESSEL
<S>                    <C>                          <C>                       <C>                       <C>
 Fearless Shipco LLC        Jade Marine S.A.        Republic of the Marshall  Republic of the Marshall   "Fearless I" (previously
                                                            Islands                    Islands                  "Fearless")

King Coal Shipco LLC   Far Eastern Shipping Corp.   Republic of the Marshall  Republic of the Marshall   "King Coal" (previously
                                                            Islands                    Islands                "King Arthur")

Coal Glory Shipco LLC  Galene Shipping Corporation  Republic of the Marshall  Republic of the Marshall   "Coal Glory" (previously
                                                            Islands                    Islands                   "Galene")

 Coal Age Shipco LLC    Panoria Special Maritime    Republic of the Marshall  Republic of the Marshall    "Coal Age" (previously
                        Enterprise, Voula, Greece           Islands                    Islands                  "Panoria")

 Iron Man Shipco LLC    Pandesia Special Maritime   Republic of the Marshall  Republic of the Marshall    "Iron Man" (previously
                               Enterprise                   Islands                    Islands                  "Pandesia")

Linda Leah Shipco LLC      Denak Depoculuk Ve       Republic of the Marshall  Republic of the Marshall   "Linda Leah" (previously
                            Nakliyecilik A.S.               Islands                    Islands                 " Denak - C")

 Barbara Shipco LLC        Denak Depoculuk Ve       Republic of the Marshall  Republic of the Marshall    "Barbara" (previously
                            Nakliyecilik A.S.               Islands                    Islands                 " Denak - B")

Coal Pride Shipco LLC  Ikan Beliak Shipping Pte.,   Republic of the Marshall  Republic of the Marshall   "Coal Pride" (previously
                                  Ltd.                      Islands                    Islands                " Ikan Beliak")
</TABLE>

                                                                   29 April 2005

                                      102
<PAGE>

                                     PART 2

                                ORIGINAL LENDERS

<TABLE>
<CAPTION>
NAME OF ORIGINAL LENDER  TRANCHE A COMMITMENTS (US$)  TRANCHE B COMMITMENTS (US$)
<S>                      <C>                          <C>
Citibank, N.A.                   213,245,500                   49,210,500
</TABLE>

                                                                   29 April 2005

                                      103

<PAGE>

                                   SCHEDULE 2

                              CONDITIONS PRECEDENT

                                     PART 1

                          INITIAL CONDITIONS PRECEDENT

1.    BORROWER

1.1   A certified copy* of the constitutional documents of the Borrower together
      with an up to date Certificate of Goodstanding dated no more than ten (10)
      Business Days prior to the drawdown date.

1.2   A certified copy of a resolution of the board of directors of the
      Borrower:

(a)   approving the terms of, and the transactions contemplated by, each Finance
      Document and each Related Contract to which the Borrower is a party and
      resolving that it executes each Finance Document and each Related
      Contract, then to be executed;

(b)   authorising a specified person or persons to execute each Finance Document
      and each Related Contract on its behalf to which it is a party, then to be
      executed; and

(c)   authorising a specified person or persons, on its behalf, to sign and/or
      despatch all other documents and notices to be signed and/or despatched by
      it under or in connection with each Finance Document and each Related
      Contract to which it is a party, then to be executed.

1.3   A specimen of the signature of each person authorised by the resolution
      referred to in paragraph 1.2 above.

1.4   A certified copy of all other resolutions, consents, licences, exemptions
      and filings, corporate, official or otherwise which the Facility Agent may
      reasonably require in connection with this Agreement or any other Finance
      Document.

*     Each certified copy must be certified by a director, officer or duly
      authorised attorney of the Borrower as being true and complete no earlier
      than the date falling three Business Days prior to the date of this
      Agreement.

2.    GUARANTORS

2.1   A certified copy* of the constitutional documents of each Guarantor.

2.2   A certified copy* of a resolution of the sole member of each Owner and
      Quintana Management and a resolution of the board of directors for
      Quintana:

      (a)   approving the terms of, and the transactions contemplated by, the
            Finance Documents and Related Contracts to which it is a party and
            resolving that it execute the Finance Documents and Related
            Contracts to which it is a party;

------------
*     Each certified copy must be certified by a director, officer or duly
      authorised attorney of the relevant Owner as being true and completa as at
      a date no earlier than the date of Request for a first Drawing.

                                                                   29 April 2005

                                       104
<PAGE>

      (b)   authorising a specified person or persons to execute the Finance
            Documents and Related Contracts to which it is a party on its
            behalf; and

2.3   A specimen of the signature of each person authorised by the resolution
      referred to in paragraph 2.2 above.

2.4   A certified copy* of a resolution of the shareholder(s) of Quintana
      approving the resolutions referred to in paragraph 2.2 above.

*     Each certified copy must be certified by a director, officer or duly
      authorised attorney of the relevant Guarantor as being true and complete
      no earlier than the date falling three (3) Business Days prior to the date
      of this Agreement.

3.    RELATED CONTRACTS

3.1   A duly executed original of this Agreement.

3.2   A duly executed original of each Fee Letter

3.3   A duly executed original of each Pledge of Shares, together with all
      certificates in respect of the shares of the Borrower and the Owners.

3.4   A duly executed original of each Junior Pledge of Shares, together with
      all certificates in respect of the shares of the Borrower and the Owners.

3.5   A certified copy of each then existing Vessel Management Agreement, duly
      executed.

3.6   A duly executed original of the Subordination Deed.

3.7   A duly executed original of the Operating Account Charge.

3.8   A duly executed original of the Junior Operating Account Charge.

3.9   A duly executed original of the Reserve Account Charge.

3.10  A duly executed original of the Junior Reserve Account Charge.

3.11  A duly executed original of the Charter Accounts Charge.

3.12  A duly executed original of the Junior Charter Accounts Charge.

3.13  Duly executed originals of all notices of assignment required to be served
      under each Security Document referred to above and faxed copies of the
      acknowledgements thereof (where it is not possible to provide originals of
      the same, with such originals to follow as soon as practicable after the
      Utilisation Date), duly executed by each relevant counterparty.

4.    OTHER DOCUMENTS

4.1   A duly executed original of the Equity Claw Agreement.

                                                                   29 April 2005

                                      105
<PAGE>

4.2   A copy of any other authorisation or other document, opinion or assurance
      which the Facility Agent considers to be necessary or desirable in
      connection with the entry into and performance of, and the transactions
      contemplated by, any Finance Document or any Related Contract or for the
      validity and enforceability of any Finance Document or any Related
      Contract.

4.3   A letter from Law Debenture Corporation agreeing to its appointment as
      process agent for the Obligors under the Finance Documents.

4.4   A duly executed original of the Personal Guarantee in form and substance
      satisfactory to the Facility Agent.

4.5   Evidence, in form and substance satisfactory to the Arranger, that
      Quintana has received net cash proceeds from the common equity financing
      of, following payment of all fees and costs in connection with the common
      equity financing, of at least five million Dollars (US$5,000,000) and
      shall have contributed the full amount of such proceeds to the Borrower.

4.6   Evidence, in form and substance satisfactory to the Arranger, of the
      proposed corporate and capital structure of the Borrower and each of the
      Guarantors, such structure to be satisfactory to the Arranger.

5.    LEGAL OPINIONS

5.1   A legal opinion of Allen & Overy LLP, London office, English legal
      advisers to the Lenders, addressed to the Facility Agent as agent for and
      on behalf of itself and the Lenders.

5.2   A legal opinion of Seward & Kissel, Marshall Islands legal advisors to the
      Lenders, in respect of, amongst other things, Borrower, the Guarantors,
      Quintana Management, the potential flag of the Vessels and the Mortgage
      and the Junior Mortgage, addressed to the Facility Agent as agent for and
      on behalf of itself and the Lenders.

5.3   A legal opinion of Pologiorgis, Babalis & Mavrou Law Firm, Greek legal
      advisers to the Lenders, in respect of, amongst other things, the
      Operating Account Charge and the Charter Accounts Charge, addressed to the
      Facility Agent as agent for and on behalf of itself and the Lenders.

6.    OTHER REQUIREMENTS

Receipt by the Facility Agent of the underwriting fee, structuring fee and
agency and security trustee fee, each as outlined in a fee letter between the
Borrower, the Arranger and the Facility Agent dated 11th April, 2005.

                                                                   29 April 2005

                                      106
<PAGE>

                                     PART 2

                         DELIVERY CONDITIONS PRECEDENT

At the time of drawdown of each Loan in respect of a Vessel, the Facility Agent
shall require the following documentation from the Borrower and the relevant
Owner:

1.    OWNER

(a)   A certified copy* of the constitutional documents of the Owner or a
      certificate of the Owner certifying that such documents have not been
      amended since they were supplied to the Facility Agreement when this
      Agreement was entered into.

(b)   A certified copy* of a resolution of the sole member of the Owner (unless
      such a resolution in relation to the issues below is still in full force
      and effect):

      (i)   authorising a specified person or persons to execute the relevant
            Security Agreements; and

      (ii)  authorising a specified person or persons, on its behalf, to sign
            and/or despatch all other documents and notices required in order
            for the Owner to take delivery of the Vessel pursuant to the
            relevant Memorandum of Agreement.

      (iii) authorising a specified person or persons, on its behalf, to sign
            and/or despatch all other documents and notices to be signed and/or
            despatched by it under or in connection with each Finance Document
            and each Related Contract to which it is a party, then to be
            executed.

(c)   A specimen of the signature of each person authorised by the resolution
      referred to in paragraph b(i) and (ii) above.

2.    DELIVERY OF VESSEL

(a)   A certified true copy* of the relevant Memorandum of Agreement.

(b)   Evidence that the title to the Vessel is held by the Owner free of all
      Security Interests other than Permitted Liens;

3.    DOCUMENTS

(a)   A duly executed original of the relevant Mortgage.

(b)   A duly executed original of the relevant Junior Mortgage.

(c)   A duly executed original of the relevant General Assignment.

(d)   A duly executed original of the relevant Junior General Assignment.

(e)   A duly executed original of the relevant Vessel Management Agreement
      Assignment.

(f)   A duly executed original of the relevant Manager's Undertaking.

                                                                   29 April 2005

                                       107
<PAGE>

4.    DELIVERY OF THE VESSEL

(a)   Evidence that:

      (i)   the Vessel is provisionally registered in the name of the Owner, as
            appropriate, as a Republic of the Marshall Islands Vessel at the
            port of Majuro;

      (ii)  the Mortgage and the Junior Mortgage in respect of the Vessel has
            been duly recorded in the Republic of the Marshall Islands and
            constitutes a first priority security interest and second priority
            interest, respectively, over the Vessel and that all taxes and fees
            payable to the Republic of the Marshall Islands Registry of Ships in
            respect of the Vessel have been paid in full;

(b)   A certified copy* of:

      (i)   an interim classification certificate (with an undertaking to
            provide to the Facility Agent a full classification certificate
            within two (2) months of the relevant Delivery Date) in respect of
            the Vessel showing the Vessel to be in class without overdue
            recommendation, condition or qualification or, in the event that
            this is not available, a faxed copy with a certified copy to follow
            as soon as practicable after the relevant Delivery Date;

      (ii)  a valid Interim Safety Management Certificate (with an undertaking
            to provide to the Facility Agent a full Safety Management
            Certificate within 2 months of the relevant Delivery Date) for the
            Vessel;

      (iii) a valid interim Document of Compliance (with an undertaking to
            provide to the Facility Agent a full Document of Compliance within 2
            months of the relevant Delivery Date); and

      (iv)  a valid interim International Ship Security Certificate (with an
            undertaking to provide to the Facility Agent a full International
            Ship Security Certificate within 2 months of the relevant Delivery
            Date) for the Vessel.

(c)   Confirmation acceptable to the Facility Agent that the Owner and the
      Seller have each executed a protocol of delivery and acceptance in respect
      of the Vessel.

(d)   Other than in respect of Vessel 4 and Vessel 5, a certified copy* of any
      Time Charter together with confirmation acceptable to the Facility Agent
      that any Charterer has executed an acceptance certificate in respect of
      such Time Charter.

(e)   A copy of the valuations provided by two Approved Valuers in respect of
      the Vessel, in each case dated not more than thirty (30) days prior to
      drawdown.

(f)   Evidence, in form and substance satisfactory to the Arranger, that
      Quintana has, in addition to the net cash proceeds received and
      contributed to the Borrower pursuant to Schedule 2, Part 1, paragraph 4.5,
      has deposited into escrow accounts and/or paid to the Seller of the Vessel
      being acquired net cash proceeds the common equity financing in a sum
      equal to at least twenty per cent. (20%) of the aggregate purchase price
      of the relevant Vessel (less any amounts previously contributed by
      Quintana and used to fund the escrow account).

-------------
*     Each certified copy document must be certified by a director, officer or
      duly authorised attorney of the Owner as being true and complete as at a
      date no earlier than the Delivery Date of a Vessel.

                                                                   29 April 2005

                                       108
<PAGE>

(g)   A duly executed solvency certificate from the senior financial officer of
      the Borrower, in form and substance satisfactory to the Arranger, setting
      forth the conclusion that after giving effect to the transaction
      contemplated by this Agreement, the Group and each of the Obligors taken
      as a whole, is solvent and will not be rendered insolvent by the
      indebtedness incurred pursuant to this Agreement.

5.    INSURANCE

(a)   A certified copy of the cover notes of all current insurance policies and
      reinsurance policies (incorporating the relevant cut-through provisions)
      in respect of the Vessel.

(b)   Duly executed and, where necessary, notarised notices of assignment (and
      acknowledgements of the same) of the Obligatory Insurances in respect of
      the Vessel duly executed by the Owner substantially in the form provided
      for in the General Assignment and the Junior General Assignment.

(c)   Fax confirmation from each broker, capital insurer and club concerned with
      the Obligatory Insurances of the Vessel that:

      (i)   the relevant cover is in effect;

      (ii)  they will accept notice of assignment of the Obligatory Insurances
            in favour of the Facility Agent and execute an acknowledgement of
            the notice in the form required by the Facility Agent;

      (iii) they will restrict their lien for unpaid premiums under any fleet
            policy to unpaid premiums in respect of that Vessel only;

      (iv)  they will issue a letter of undertaking in the current LIBA form (in
            the case of Lloyds brokers), in the form provided for in the
            Insurances Assignment (in the case of non-Lloyds brokers, insurers
            and reinsurers other than clubs) or in their current standard form
            (in the case of clubs);

      (v)   they will accept endorsement of a loss payable clause on the
            policies in the form provided for in the General Assignment (in the
            case of brokers and insurers other than clubs) and Junior General
            Assignment or will note the interest of the Facility Agent in the
            entry for the Vessel by way of a loss payable clause in their
            current standard form (in the case of clubs); and

      (vi)  they are not aware of any mortgage, charge, assignment or other
            encumbrance affecting the Obligatory Insurances with which they are
            concerned (other than any previously disclosed by the Owner to the
            Facility Agent in writing).

(d)   Confirmation from the Facility Agent of its satisfaction with a final
      insurance report in respect of the insurance and reinsurance covenants and
      the Obligatory Insurances prepared by Aon.

*     Each certified copy must be certified by a director, officer or duly
      authorised attorney of the Owner as being true and complete no earlier
      than the date falling three Business Days prior to the date of this
      Agreement.

                                                                   29 April 2005

                                      109
<PAGE>

                                     PART 3

                              CONDITIONS SUBSEQUENT

1.    The Borrower shall use reasonable efforts to cause AMCI Acquisition II,
      LLC to deliver to the Facility Agent within thirty (30) days after the
      date of this Agreement, an agreement duly executed by AMCI Acquisition II,
      LLC that is supplemental to the Equity Claw Agreement and that sets out a
      covenant by AMCI Acquisition II, LLC, reasonably satisfactory to the
      Facility Agent

2.    In respect of Vessel 4 and Vessel 5, following the date falling thirty
      (30) days after the date of delivery of such Vessel to the relevant Owner
      under the Memorandum of Agreement, receipt by the Facility Agent of a
      certified copy* of a Time Charter (as such term is defined in Clause
      18.22), together with confirmation acceptable to the Facility Agent that
      any Charterer has executed an acceptance certificate in respect of such
      Time Charter.

*     Each certified copy must be certified by a director, officer or duly
      authorised attorney of the relevant Owner as being true and complete no
      earlier than the date falling three Business Days prior to the date of
      when such document is required to be tendered under this Schedule 2, Part
      3.

                                                                   29 April 2005

                                       110
<PAGE>

                                   SCHEDULE 3

                                     REQUEST

                                     PART 1

                                 FORM OF REQUEST

To:   Citibank International Plc as Facility Agent

From: Quintana Maritime Limited

Date: [    ]

     US$262,456,000 CREDIT AGREEMENT DATED [    ], 2005 (the CREDIT AGREEMENT)

(e)   We wish to borrow a Drawing under a Loan from you as follows:

      (a)   Utilisation Date: [    ]

      (b)   Amount/currency: [Loan 1, Tranche A/Tranche B]

                             [Loan 2, Tranche A/Tranche B]

                             [Loan 3, Tranche A/Tranche B]

                             [Loan 4, Tranche A/Tranche B]

                             [Loan 5, Tranche A/Tranche B]

                             [Loan 6, Tranche A/Tranche B]

                             [Loan 7, Tranche A/Tranche B]

                             [Loan 8, Tranche A/Tranche B]

(f)   Term: [    ]

(g)   Payment Instructions:

(h)   We confirm that each condition specified in Clause 3.2 (Further conditions
      precedent) of the Credit Agreement is satisfied on the date of this
      Request.

 By:

___________________
QUINTANA MARITIME LIMITED

Authorised Signatory

                                                                   29 April 2005

                                       111
<PAGE>

                                     PART 2

                                 PAYMENT ADVICE

To:   [The relevant Owner]

From: Citibank International Plc as Facility Agent

Date: [    ]

                 US$262,456,000 CREDIT AGREEMENT DATED [    ], 2005

      Further to receipt of your request dated [    ] and attached hereto
      requesting the advance of a Drawing under a Loan, we confirm that all
      amounts have been advanced in accordance with the requirements of the
      attached Request.

                                                                   29 April 2005

                                       112
<PAGE>

                                   SCHEDULE 4

                        CALCULATION OF THE MANDATORY COST

1.    GENERAL

      The Mandatory Cost is the weighted average of the rates calculated below
      by the Facility Agent on the first day of a Term. The Facility Agent must
      distribute each amount of Mandatory Cost among the Lenders on the basis of
      the rate for each Lender.

2.    FOR A LENDER LENDING FROM A FACILITY OFFICE IN THE U.K.

(a)   The relevant rate for a Lender lending from a Facility Office in the U.K.
      is the arithmetic mean of the rates notified by each of the Reference
      Banks to the Facility Agent and calculated in accordance with the
      following formulae:

      E x 0.01
      -------- per cent.per annum
        300

      where on the day of application of the formula:

      E     is the charge payable by the Reference Bank to the Financial
            Services Authority under the fees rules (but, for this purpose,
            calculated by the Facility Agent on a notional basis as being the
            average of the fee tariffs within fee-block Category A1 (Deposit
            acceptors) of the fees rules, applying any applicable discount and
            ignoring any minimum fee required under the fees rules) and
            expressed in pounds per (pound)1 million of the tariff base of that
            Reference Bank.

(b)   For the purposes of this paragraph 2:

      (i)   eligible liabilities and special deposit have the meanings given to
            them at the time of application of the formula by the Bank of
            England;

      (ii)  fees rules means the then current rules on periodic fees in the
            Supervision Manual of the FSA Handbook; and

      (iii) tariff base has the meaning given to it in the fees rules.

(c)   Each rate calculated in accordance with a formula is, if necessary,
      rounded upward to four decimal places.

(d)   (i)   Each Reference Bank must supply to the Facility Agent the
            information required by it to make a calculation of the rate for
            that Reference Bank. The Facility Agent may assume that this
            information is correct in all respects.

      (ii)  If a Reference Bank fails to do so, the Facility Agent may assume
            that the Reference Bank's obligations in respect of cash ratio
            deposits, special deposits and the fees rules are the same as those
            of a typical bank from its jurisdiction of incorporation with a
            Facility Office in the same jurisdiction as its Facility Office.

                                                                   29 April 2005

                                       113
<PAGE>

      (b)   The Facility Agent has no liability to any Party if its calculation
            over or under compensates any Lender.

3.    FOR A LENDER LENDING FROM A FACILITY OFFICE IN A PARTICIPATING MEMBER
      STATE

(a)   The relevant rate for a Lender lending from a Facility Office in a
      Participating Member State is the percentage rate per annum notified by
      that Lender to the Facility Agent as its cost of complying with the
      minimum reserve requirements of the European Central Bank.

(b)   If a Lender fails to specify a rate under paragraph (a) above, the
      Facility Agent will assume that the Lender has not incurred any such cost.

4.    CHANGES

      The Facility Agent may, after consultation with the Borrower and the
      Lenders, notify all the Parties of any amendment to this Schedule which is
      required to reflect:

      (a)   any change in law or regulation; or

      (b)   any requirement imposed by the Bank of England, the Financial
            Services Authority or the European Central Bank (or, in any case,
            any successor authority).

      Any notification will be, in the absence of manifest error, conclusive and
      binding on all the Parties.

                                                                   29 April 2005

                                       114
<PAGE>

                                   SCHEDULE 5

                          FORM OF TRANSFER CERTIFICATE

To:   The Borrower

From: [THE EXISTING BANK] and [THE NEW BANK]

Date: [    ]

     US$262,456,000 CREDIT AGREEMENT DATED [    ], 2005 (the CREDIT AGREEMENT)

We refer to Clause 30.3 (Procedure for transfer by way of novations) of the
Credit Agreement.

1.    We [    ] (the EXISTING BANK) and [    ] (the NEW BANK) agree to the
      Existing Bank and the New Bank novating all the Existing Bank's rights and
      obligations referred to in the Schedule in accordance with Clause 30.3.
      (Procedure for transfer by way of novations).

2.    The specified date for the purposes of Clause 30.3(a) is [date of
      novation].

3.    The Facility Office and address for notices of the New Bank for the
      purposes of Clause 36.2 (Contact details) are set out in the Schedule
      attached to this Certificate.

4.    This Novation Certificate is governed by English law.

                                                                   29 April 2005

                                       115
<PAGE>

                                  THE SCHEDULE

                      RIGHTS AND OBLIGATIONS TO BE NOVATED

[Choose one of the following options (a) to (d):]

(a)   all of the rights and obligations of the Existing Lender in respect of the
      Facility - principal amount US$[ ].

(b)   all of the rights and obligations of the Existing Lender in respect of
      Vessel Loan [ ] [and Vessel Loan [ ]] -principal amount US$[ ].

(c)   the principal amount of US$[ ] in respect of each of the Loans and all the
      rights and obligations attached to the same-total principal amount US$[ ].

(d)   the principal amount of US$[ ] in respect of [each of] Vessel Loan [ ]
      [and Vessel Loan [ ] and [ ]] and all the rights and obligations attached
      to the same.

[NEW BANK]

[Facility Office Address for notices]

[Existing Bank]    [New Bank]

By:                 By:

Date:               Date:

The Transfer Date is confirmed by the Facility Agent as [    ].

CITIBANK INTERNATIONAL PLC.

By:

                                                                   29 April 2005

                                      116
<PAGE>

                                   SCHEDULE 6

                               REPAYMENT SCHEDULE

                                     PART 1

                                    TRANCHE A

<TABLE>
<CAPTION>
INSTALMENT
  NUMBER          DATE          AMOUNT (UNITED STATES DOLLARS)
---------- -------------------  -------------------------------
<S>        <C>                  <C>
 1          30 December, 2005            17,500,000

 2           30 March, 2006              11,250,000

 3            30 June, 2006              11,250,000

 4         30 September, 2006            11,250,000

 5          30 December, 2006            11,250,000

 6           30 March, 2007               6,625,000

 7            30 June, 2007               6,625,000

 8         30 September, 2007             6,625,000

 9          30 December, 2007             6,625,000

10           30 March, 2008               4,750,000

11            30 June, 2008               4,750,000

12         30 September, 2008             4,750,000

13          30 December, 2008             4,750,000

14           30 March, 2009               3,750,000

15            30 June, 2009               3,750,000

16         30 September, 2009             3,750,000
</TABLE>

                                                                   29 April 2005

                                       117
<PAGE>

<TABLE>
<S>        <C>                    <C>
17         30 December, 2009       3,750,000

18           30 March, 2010        3,750,000

19           30 June, 2010         3,750,000

20         30 September, 2010      3,750,000

21         30 December, 2010       3,750,000

22           30 March, 2011        4,250,750

23           30 June, 2011         4,250,750

24         30 September, 2011     66,744,000
</TABLE>

                                     PART 2

                                    TRANCHE B

<TABLE>
<CAPTION>
 INSTALMENT
  NUMBER                       DATE                     AMOUNT (UNITED STATES DOLLARS)
-----------  -----------------------------------------  ------------------------------
<S>          <C>                                        <C>
 1                       30 December, 2005                                0

 2           12 months from the date of this Agreement           25,000,000

 3                         30 June, 2006                                  0

 4                       30 September, 2006                               0

 5                       30 December, 2006                                0

 6                        30, March, 2007                           333,375

 7                         30, June, 2007                           333,375

 8                      30, September, 2007                         333,375

 9                       30, December, 2007                         333,375
</TABLE>

                                                                   29 April 2005

                                      118
<PAGE>

<TABLE>
<S>          <C>                   <C>
10             30, March, 2008        333,375

11             30, June, 2008         333,375

12           30, September, 2008      333,375

13           30, December, 2008       333,375

14             30, March, 2009        333,375

15             30, June, 2009         333,375

16           30, September, 2009      333,375

17           30, December, 2009       333,375

18             30, March, 2009        333,375

19             30, June, 2009         333,375

20           30, September, 2009      333,375

21           30, December, 2009       333,375

22             30, March, 2010        333,375

23             30, June, 2010         333,375

24           30 September, 2011    18,209,750
</TABLE>

                                                                   29 April 2005

                                       119

<PAGE>

                                   SCHEDULE 7

                        COMPLIANCE CERTIFICATE (BORROWER)

To:   Citibank International plc as Facility Agent and Citicorp Trustee Company
      Limited as Security Trustee

From: Quintana Maritime Limited (the BORROWER)

     US$262,456,000 CREDIT AGREEMENT DATED [    ], 2005 (the CREDIT AGREEMENT)

1.    Terms defined in the Credit Agreement have the same meaning in this
      Certificate.

2.    I/We hereby certify that [no Default has occurred and is continuing or is
      outstanding] [a Default under Clause [    ] of [specify document] is
      outstanding and the following steps are being taken to remedy it [    ]].

3.    [Except as set out below, the representations set out in Clause 15 of the
      Credit Agreement are deemed to be repeated as at the date hereof.]

4.    I/We hereby certify that as of [    ] the status of the financial
      covenants as set out in Clause 17 of the Credit Agreement is as follows:

      (A)   MAXIMUM LEVERAGE RATIO: the ratio of Consolidated Total Indebtedness
            to Consolidated Total Capitalisation is [    ]:1.00;

      (B)   MINIMUM LIQUIDITY: the Consolidated Cash and Cash Equivalents held
            by the Group as of [    ] is [not less than] [    ] Dollars
            (US$[    ]);

      (C)   CONSOLIDATED INTEREST COVER RATIO: the ratio of Consolidated EBITDA
            to Consolidated Interest Expense is [    ]: 1.00; and

      (D)   COLLATERAL MAINTENANCE: the aggregate Market Value of the Vessels is
            [    ].

      [    ]

Yours faithfully,

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

President

[or]

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

[Senior Officer]

and

                                                                   29 April 2005

                                       120
<PAGE>

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

[Senior Officer]

                                                                   29 April 2005

                                       121
<PAGE>

                                   SCHEDULE 8

                          STANDING PAYMENT INSTRUCTIONS

                                                                   29 April 2005

                                       122
<PAGE>

                                   SCHEDULE 9

                             PREDICTED CHARTER RATES

<TABLE>
<CAPTION>
                                             Average time
Number of Vessels   Duration of Charter     charter rates*
-----------------  ---------------------  -------------------
<S>                <C>                    <C>

3                        3 years              US$24,578

3                        2 years              US$29,167

1                        1 year               US$35,500
</TABLE>

*Average time charter rates are calculated in United States Dollars, on a daily
basis and net of commission

                                                                   29 April 2005

                                       123
<PAGE>

                                   SIGNATORIES

THE BORROWER

QUINTANA MARITIME LIMITED

By: _________________________________

Name: Paul J. Cornell

Title: Chief Financial Officer

THE GUARANTORS

QUINTANA MARITIME INVESTORS LLC

By: _________________________________

Name: Paul J. Cornell

Title: Manager

QUINTANA MANAGEMENT LLC

By: QUINTANA MARITIME LIMITED, its Sole Member

By: _________________________________

Name: Paul J. Cornell

Title: Chief Financial Officer

                                                                   29 April 2005

                                       124
<PAGE>

KING COAL SHIPCO LLC

By: QUINTANA MARITIME LIMITED, its Sole
Member

By: _________________________________

Name: Paul J. Cornell

Title: Chief Financial Officer

FEARLESS SHIPCO LLC

By: QUINTANA MARITIME LIMITED, its Sole
Member

By: _________________________________

Name: Paul J. Cornell

Title: Chief Financial Officer

COAL AGE SHIPCO LLC

By: QUINTANA MARITIME LIMITED, its Sole
Member

By: _________________________________

Name: Paul J. Cornell

Title: Chief Financial Officer

IRON MAN SHIPCO LLC

By: QUINTANA MARITIME LIMITED, its Sole
Member

By: _________________________________

Name: Paul J. Cornell

Title: Chief Financial Officer

                                                                   29 April 2005

                                       125
<PAGE>

LINDA LEAH SHIPCO LLC

By: QUINTANA MARITIME LIMITED, its Sole
Member

By: _________________________________

Name: Paul J. Cornell

Title: Chief Financial Officer

BARBARA SHIPCO LLC

By: QUINTANA MARITIME LIMITED, its Sole
Member

By: _________________________________

Name:  Paul J. Cornell

Title:  Chief Financial Officer

COAL GLORY SHIPCO LLC

By:  QUINTANA MARITIME LIMITED,  its Sole
Member

By: _________________________________

Name: Paul J. Cornell

Title: Chief Financial Officer

                                                                   29 April 2005

                                      126
<PAGE>

COAL PRIDE SHIPCO LLC

By: QUINTANA MARITIME LIMITED, its Sole Member

By: _________________________________

Name: Paul J. Cornell

Title: Chief Financial Officer

THE ORIGINAL LENDER

CITIBANK, N.A.

By:

THE ARRANGER

CITIGROUP GLOBAL MARKETS LIMITED

By:

THE FACILITY AGENT

CITIBANK INTERNATIONAL PLC

By:

THE SECURITY TRUSTEE

CITICORP TRUSTEE COMPANY LIMITED

By:

                                                                   29 April 2005

                                       127
<PAGE>

                                   APPENDIX 1

                           FORM OF GENERAL ASSIGNMENT

                                                                   29 April 2005

                                       128
<PAGE>

                                   APPENDIX 2

                        FORM OF JUNIOR GENERAL ASSIGNMENT

                                                                   29 April 2005

                                       129
<PAGE>

                                   APPENDIX 3

                         FORM OF RESERVE ACCOUNT CHARGE

                                                                   29 April 2005

                                       130
<PAGE>

                                   APPENDIX 4

                      FORM OF JUNIOR RESERVE ACCOUNT CHARGE

                                                                   29 April 2005

                                       131
<PAGE>

                                   APPENDIX 5

                                FORM OF MORTGAGE

                                                                   29 April 2005

                                       132
<PAGE>

                                   APPENDIX 6

                             FORM OF JUNIOR MORTGAGE

                                                                   29 April 2005

                                       133
<PAGE>

                                   APPENDIX 7

                        FORM OF OPERATING ACCOUNT CHARGE

                                                                   29 April 2005

                                       134
<PAGE>

                                   APPENDIX 8

                     FORM OF JUNIOR OPERATING ACCOUNT CHARGE

                                                                   29 April 2005

                                       135
<PAGE>

                                   APPENDIX 9

                          FORM OF MANAGERS UNDERTAKING

                                                                   29 April 2005

                                       136
<PAGE>

                                   APPENDIX 10

                        FORM OF SWAP AGREEMENT ASSIGNMENT

                                                                   29 April 2005

                                       137
<PAGE>

                                  APPENDIX 11

                 FORM OF VESSEL MANAGEMENT AGREEMENT ASSIGNMENT

                                                                   29 April 2005

                                       138
<PAGE>

                                  APPENDIX 12

                         FORM OF CHARTER ACCOUNTS CHARGE

                                                                   29 April 2005

                                       139
<PAGE>

                                  APPENDIX 13

Form of Junior Charter Accounts Charge

                                                                   29 April 2005

                                       140

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00086-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00086-of-00352.parquet"}]]