Document:

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                                                                    EXHIBIT 10.5

                              Dated 4th August 2004

                               ADVENTURE TWO S.A.

                                       to

                                CORNER BANCA S.A.

                FIRST PREFERRED MARSHALL ISLANDS VESSEL MORTGAGE

                               M/V "FREE DESTINY"

                                OFFICIAL NO. 2077

                                        1
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THIS FIRST PREFERRED MORTGAGE is made this 4th day of August 2004 by ADVENTURE
TWO S.A., a corporation incorporated under the laws of the Republic of the
Marshall Islands, whose registered office is at Trust Company Complex, Ajeltake
Road, Ajeltake Island, Majuro, Marshall Islands MH 96960 (hereinafter called the
"Shipowner") in favour of CORNER BANCA S.A. a company organized and existing
under the laws of the Republic of Switzerland with an address at Via Canova 16,
Lugano, Switzerland (hereinafter called the "Mortgagee")

WHEREAS

A)    The Borrower is the absolute owner of motor vessel "Free Destiny"
      presently flying under the Flag of the Marshall Islands, hereinafter
      called "the Vessel", described as below:

      IDENTIFICATION OF THE VESSEL

      Name                                  "FREE DESTINY"

      Flag                                  Marshall Islands

      Built on                              1982

      IMO/Official Number                   No. 8128157 /2077

      Gross tonnage                         16282 tons

      Net tonnage                            9377 tons

      Class notation                        Lloyds Register, +100 Al + LMC UMS

B)    By a loan agreement dated May 21st 2004 (the "Loan Agreement") - a copy of
      which is attached hereto as Exhibit 1 and made an integral part hereof -
      made between the Mortgagee and the Shipowner, the Mortgagee agreed to
      advance to the Shipowner a Loan in the maximum amount of Five Million
      United States Dollars, (USD 5,000,000) (hereinafter "the Loan"). Word and
      expressions shall, unless the contract otherwise requires, have the same
      meaning ascribed to them in the Loan Agreement.

C)    To secure the repayment of the Loan and interest thereon and the
      performance and observance of all the agreements, covenants and provisions
      contained therein, this mortgage and in the Security Documents, the
      Shipowner has duly authorized the execution and delivery of this First
      Preferred Mortgage.

      NOW THEREFORE, in consideration of the promises and in order to secure the
      repayment of the Loan and interest thereon in accordance with its terms:

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      1     THE SHIPOWNER, in accordance with the provision of Section 302 of
            the Marshall Islands Maritime Act, 1990 as amended, and otherwise
            comply with satisfy all the requirements and formalities established
            by the said Maritime Act and any other pertinent legislation of the
            Republic of the Marshall Islands to perfect this Mortgage as a valid
            and enforceable First and Preferred lien upon the Vessel and to
            furnish to the Mortgagee from time to time such proofs as the
            Mortgagee may reasonably request for its satisfaction with respect
            to Owner's compliance with the provisions of this sub-clause, hereby
            Executes and Constitutes a First Preferred Naval Mortgage on the
            whole of the Vessel in favor of the Mortgagee TOGETHER WITH all the
            engines, machinery, masts, boats, anchors, cables, chains, rigging,
            tackle, apparel, furniture, fittings and equipment and all other
            appurtenances to the Vessel thereunto appartaining or belonging
            whether now owned or hereafter acquired whether on board or not and
            all additions improvements and replacements hereafter made in or to
            the Vessel or any part thereof or in or to her equipment and
            appurtenances aforesaid (excepting only such equipment placed on the
            Vessel which under the terms of any charterparty relating thereto
            does not become the property of the Shipowner) TO HAVE AND TO HOLD
            ALL AND SINGULAR the above mortgaged and described property unto the
            Mortgagee for its own use and benefit forever upon the terms herein
            set forth for the enforcement of the repayment of the Loan and
            interest thereon, and to secure the performance and observance of
            and compliance with the covenants terms and conditions in the Loan
            Agreement, this Mortgage and the other Security Documents contained
            expressed or implied PROVIDED HOWEVER and the condition of these
            presents in such that if the Shipowner its successors or assigns
            shall have repaid the Loan ad interest thereon in accordance with
            its provisions and shall have performed observed and complied with
            all the covenants terms and conditions in the Loan Agreement, this
            Mortgage and the other Security Documents contained expressed or
            implied to be performed observed or complied with these presents and
            the rights hereunder shall cease terminate and be void but shall
            otherwise remain in full force and effect.

      2     THE SHIPOWNER for itself, its successors and assignee HEREBY
            COVENANTS AND AGREES with the Mortgagee and its respective
            successors and assignee that the Vessel and all the appurtenances
            thereto appertaining or belonging and all improvements and
            replacements hereafter made in or to the Vessel or any part thereof
            are to be held by the Mortgagee subject to the covenants conditions
            provisions terms and uses hereinafter set forth.

      3     THE SHIPOWNER HEREBY COVENANTS AND AGREES with the Mortgagee at all
            times to perform and observe ALL AND SINGULAR the covenants,
            conditions and agreements in the Loan Agreement, this Mortgage and
            the Security Documents contained expressed or implied.

      4     THE SHIPOWNER at its own expense when and so long as this Mortgage
            shall be outstanding covenants as follows:

            (i)   to insure the Vessel and keep the Vessel insured in the
                  Shipowner's name in United States Dollars (or such other
                  currency as the Mortgagee and in such amount and upon such
                  terms as shall from time to time be required

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                  or approved in writing by the mortgagee and in particular but
                  without prejudice to the generality of the foregoing

                  (a)   the insurance's shall be placed through such brokers
                        and/or with such insurance offices companies
                        underwriters war risks and protection and indemnity
                        associations or clubs in the United States or the United
                        Kingdom or in such other country and under such policies
                        as shall be approved in writing by the Mortgagee such
                        consent not to be unreasonably withheld and given
                        promptly

                  (b)   the Vessel shall be insured and kept insured in the
                        Shipowner's name against marine risks including all
                        risks customarily and usually covered by prudent
                        shipowners under policies containg the ordinary
                        conditions applicable to similar vessels including
                        collision clause and cover against risks of civil
                        commotion

                  (c)   the Vessel shall be insured and kept insured in the
                        Shipowner's name against war risks (including risks of
                        mines) and any other risk excepted by the "Free of
                        Capture and Seizure" clause in marine policies of
                        insurance

                  (d)   if required by the Mortgagee the Shipowner shall insure
                        and kept insured the Vessel in the Shipowner's name for
                        an amount to be approved by the Mortgage against excess
                        risks that is to say the proportion of claims for
                        general average and salvage charges and under the
                        running-down clause not recoverable in consequence of
                        the value at which the Vessel is assessed for the
                        purpose of such claims exceeding the insured value

                  (e)   the Vessel shall be entered and kept entered in the
                        Shipowner's name for its full value and tonnage in a
                        protection and indemnity association in respect of such
                        matters or risks as are not covered by the ordinary
                        conditions of normal risks policies port risks
                        insurances may be taken out thereon by the Shipowner
                        under the forms of port risks policies approved by the
                        Mortgagee

            (ii)  to give notice forthwith of any assignment of insurances to
                  the relevant brokers, insurance, officers, companies,
                  underwriters, war risks and protection and indemnity
                  associations or clubs in such form as may be approved by the
                  Mortgagee

            (iii) to execute and deliver all such documents and do all such
                  things as may be necessary to confer upon the Mortgagee a
                  legal tide to the insurances and procure that the interests of
                  the Mortgagee is at all times endorsed or noted upon all
                  slips, cover notes, policies, certificates of entry or other
                  instruments issued in connection with the Policies and procure
                  (i) that the following loss payable clause shall be endorsed
                  upon both the hull machinery and equipment and war risks
                  policies:

                  " It is noted that by an Assignment in writing dated
                  August____2004 the Shipowner, Adventure Two SA, Majuro,
                  Marshall Islands has assigned

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                  absolutely to Corner Banca SA of Switzerland, all the
                  Shipowner's interests in this Policy and all benefits hereof
                  including all claims of whatsoever nature hereunder. Claims
                  hereunder payable in respect of an actual or constructive or
                  agreed or arranged or compromised total loss or requisition
                  for title or other compulsory requisition of the Vessel and
                  claims hereunder payable in respect of a mayor casualty that
                  is to say any casualty in respect whereof the claim or the
                  aggregate of the claim exceeds Five Hundred thousand United
                  States Dollars (USD500'000.--) shall be payable to the
                  Mortgagee. Subject thereto all other claims, unless and until
                  the Underwriters have received notice from the Mortgagee of a
                  default under the Mortgage in which event all claims under
                  this Policy of Insurance shall be payable direct to the
                  Mortgagee, shall be released directly for the repair salvage
                  or other charges involved or to the Shipowner as reimbursement
                  if they have fully repaired the damage and paid all of the
                  salvage or other charges"

                  AND (ii) that the following loss payable clause shall be
                  endorsed upon the protection and indemnity certificate of
                  entry:

                  1     It is noted that Corner Banca S.A. are interested as
                        first mortgagee in the subject matter of this insurance
                        up to the amount recorded under Clause 24 of the
                        Mortgage.,

                  2     Claims hereunder for all losses shall be paid direct to
                        the Shipowner unless and until the first Mortgagee shall
                        have given notice in writing that the Shipowner's are in
                        default under the First Preferred Naval Mortgage on the
                        Vessel whereafter such claims shall be payable to the
                        Mortgagee up to the amount recorded under Clause 24 of
                        the Mortgage

            (iv)  to procure that the relevant brokers and any protection and
                  indemnity association in which the Vessel may from time to
                  time be entered undertake:

                  (a)   to hold to the order of the Mortgagee the originals of
                        all policies contracts binders insurance slips cover
                        notes and certificates of entry whatsoever relating to
                        the Vessel and deliver certified copies thereof to the
                        Mortgagee on request and

                  (b)   to advise the Mortgagee promptly:

                        1     if any insurance office, company underwriter,
                              association or club cancels any of insurance,

                        2     of any variation in the terms of any of the
                              insurances or any default in the payment of any
                              premium call or contribution or failure to renew
                              any of the insurances at least Fourteen (14) days
                              before the expiry thereof and

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                  (c)   not to assert any lien in respect of unpaid premiums
                        except insofar as such premiums relate only to the
                        insurances in respect of the Vessel and not to any other
                        Vessels.

           (v)    Punctually to pay all premiums calls contributions or other
                  sums payable in respect of the Policies and each of them and
                  to produce all relevant receipts when so required by the
                  Mortgagee,

           (vi)   to renew each of the insurances at least Fourteen (14) days
                  before the expire thereof and procure that the relevant
                  brokers shall promptly confirm in writing to the Morgagee as
                  and when each such renewal is effected,

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

           (viii) to procure that each of the insurances shall contain or be
                  accompanied by a waiver as against the Mortgagee of any and
                  all premium for which the Mortgagee might otherwise be or
                  become liable as a named assured loss payee or otherwise and
                  shall provide for duplicates of all notices given by the
                  insurers to the Shipowner to be sent at the same time to the
                  Mortgagee,

           (ix)   to furnish the Mortgagee from time to time on request with
                  full information about all insurances maintained on the Vessel
                  and names of the offices companies underwriters associations
                  or clubs with which such insurance is placed,

           (x)    to furnish the Mortgagee at such intervals as the Mortgagee
                  shall specify with a detailed report signed by an independent
                  firm of marine insurance brokers appointed by the Shipowner
                  and approved by the Mortgagee detailing the insurances
                  maintained on the Vessel and stating the opinion of such firm
                  as the adequacy thereof

           (xi)   promptly to furnish the Mortgagee with full information
                  regarding any casualties or other accidents or damage to the
                  Vessel involving an amount in excess of USD500'000.-- or the
                  equivalent in any other currency and give the Mortgagee short
                  details regarding any causalities or other accidents or damage
                  to the Vessel involving an amount of less than USD500'000.--
                  or the equivalent in any other currency

           (xii)  not to agree to any material variation in the terms of any one
                  or more of the insurances without prior written approval of
                  the Mortgagee nor to do any act or voluntarily suffer or
                  permit any act to be done whereby any insurance shall or may
                  be invalid void avoidable suspended defeated or unforceable
                  and not to suffer or permit the Vessel to engage in any voyage
                  or to carry any cargo not permitted under any one or more of
                  the insurances without first giving written notice to the
                  Mortgagee obtaining the consent of the insurers concerned and
                  complying with such requirements as to payment of extra
                  premium or otherwise as insurers

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                  may impose and as may be approved by the Mortgagee such
                  approval not to be unreasonably withheld and be given promptly

           (xiii) not without the prior written consent of the Mortgagee to
                  settle compromise or abandon any claim in respect of one or
                  more of the insurances other than a claim of less than
                  USD500'000.-- arising out of a total loss of the Vessel

           (xiv)  to apply or procure the appliance of all such sums receivable
                  in respect of the insurances as are paid to the Shipowner or
                  in accordance with the Shipowner's instructions for the
                  purpose of making good the lose and fully repairing all damage
                  in respect whereof the insurance moneys shall have been
                  received

           (xv)   that in the event of the Shipowner failing to insure or
                  maintain insured the Vessel or in entering and keeping the
                  Vessel entered in a protection and indemnity and/or war risks
                  association as hereinbefore provided the Mortgagee may (but
                  shall not be bound to) insure the Vessel or enter the Vessel
                  in such manner and to such extent as the Mortgagee in its
                  discretion thinks fit and in such case the cost of all such
                  insurances and entries together with the premiums calls and
                  contributions payable in respect thereof with interest thereon
                  at the rate calculated in accordance with the above mentioned
                  LOAN AGREEMENT shall be paid on demand by the Shipowner to the
                  Mortgagee and shall be added to amounts secured by this
                  Mortgage,

           (xvi)  to do all such things whatsoever and prepare execute and
                  deliver all such documents whatsoever to enable the Mortgagee
                  to collect and recover any moneys which may become due in
                  respect of the insurances and for that purpose (but without
                  limitation) to permit the Mortgagee if necessary to sue in the
                   name of the Shipowner.

      5     THE SHIPOWNER HEREBY COVENANTS AND AGREES with the Mortgagee as
            follows:

            (a)   At all time to carry on board the Vessel a duly certified copy
                  of this Mortgage (which shall form a part of the Vessel's
                  documents) and to cause the same to be shown to any person
                  having business with the Vessel which might create or imply
                  any commitment or encumbrance whatsoever on the Vessel and to
                  place and maintain in a conspicuous place in the navigation
                  room and in the cabin of the master of the Vessel a printed
                  notice in the following form:

                  "NOTICE OF MORTGAGE"

                  This vessel is mortgaged by a First Preferred Mortgage to
                  Corner Banca S.A., pursuant to the provisions of Chapter 3 of
                  the Marshall Islands Maritime Act of 1990 as amended. Under
                  the terms of the said Mortgage, neither the Shipowner, nor any
                  charterer or the master of this Vessel has any power, right or
                  authority whatever to create, incur or permit to be

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                  (i)   to put and keep the Vessel her equipment and machinery
                        at all times in a state of good running order and
                        repair, so that the Vessel shall be so far due diligence
                        can make her so tight staunch strong and well and
                        sufficiently tackled appareled furnished equipped and in
                        every respect seaworthy and in good operating condition
                        and to put and keep the Vessel in such a condition as
                        will entitle her to the highest classification and
                        rating for vessels of the same age and type with Lloyds
                        Classification Society of like standing and to make her
                        strictly comply with the requirements of any laws
                        regulations or requirements for the time being of the
                        Republic of the Marshall Islands or the maritime
                        authorities thereof or of the Vessel's Classification
                        Society and of any country province colony or dependency
                        where the Vessel may operate or trade and to procure
                        that all repairs to or replacements of any damaged worn
                        or lost parts or equipment be effected in such manner
                        (both as regards workmanship and quality of materials)
                        as not to diminish the value of the Vessel

                  (ii)  to furnish the Mortgagee on request with a statement by
                        Lloyds Register or such other classification society as
                        is acceptable to the Mortgagee that such classification
                        is maintained and to furnish the Mortgagee from time to
                        time and upon demand with all such documents as the
                        Mortgagee may require concerning the classification of
                        the Vessel,

                  (iii) not to make or permit to be made any substantial change
                        in structure type or speed of the vessel or any change
                        in her rig without first receiving written approval
                        thereof from the Mortgagee,

                  (iv)  to submit the Vessel regularly to such periodical or
                        other surveys as may be required for classification
                        purpose and if so required to supply to the Mortgagee
                        copies of all surveys or reports issued in respect
                        thereof,

            (f)   (i)   to permit the Mortgagee and such other persons
                        appointed by it to board the Vessel to have full and
                        complete access to the Vessel to view the state and
                        condition thereof and her cargo and papers, to ascertain
                        whether the Vessel is being properly repaired and
                        maintained. In the event deficiencies are found which
                        evidence the failure in keeping her in such good state
                        or repair and in such working order and condition as
                        mentioned in sub clause (d) of this Clause 5 (without
                        prejudice however to any of the Mortgagee's rights under
                        this Mortgage) to effect such repairs as shall in its
                        reasonable opinion be necessary and the Shipowner will
                        on demand repay to the Mortgagee every sum of money
                        expended for the above purpose with interest as
                        hereinafter mentioned,

                  (ii)  to deliver to the Mortgagee on demand copies of any and
                        all documents relating to the Vessel her employment
                        position and engagements particulars of all towages and
                        salvages and copies of

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                        all charters and other contracts for her employment or
                        otherwise howsoever concerning her

            (g)   (i)   to pay and discharge or cause to be paid and discharged
                        when due and payable from time to time all debts damages
                        and liabilities whatsoever which may have given or may
                        give rise to maritime or possessory liens on or claims
                        enforceable against the Vessel and all taxes assessments
                        governmental charges fines and penalties legally imposed
                        on the Vessel or any income therefrom,

                  (ii)  except the Mortgage constituted pursuant hereto not to
                        create or suffer to be continued any lien other than a
                        lien for crews wages encumbrances security interest or
                        charge on the Vessel or any income therefrom and in due
                        course and in any event within Fifteen (15) days after
                        the same becomes due and payable to pay or cause to be
                        discharged or make adequate provision for the payment or
                        discharge of all claims or demands which if not paid or
                        discharged might in admiralty in equity or at law or
                        pursuant to any statute in any jurisdiction to which the
                        Vessel may at time be subject have equality with
                        priority to or preference over the lien of this Mortgage
                        and to cause the Vessel to be released or discharged
                        from such lien encumbrance security interest or charge,

            (h)   promptly to furnish the Mortgagee from time to time and at any
                  time with copies of all such accounts financial statements
                  reports and such other financial information concerning the
                  Shipowner as the Mortgagee may reasonably request

            (i)   promptly to notify the Mortgagee thereof by telex confirmed by
                  letter addressed to the Mortgagee at its address aforesaid or
                  such other address as the Mortgagee may from time to time
                  direct in writing to the Shipowner in the event of the Vessel
                  being arrested or detained by any court or tribunal or by any
                  government or other authority or in the event of any accident
                  bottomry average salvage any assistance by third persons or
                  any loss of classification in respect of the Vessel or if the
                  Vessel is subject to any legal proceedings for a sum higher
                  than USD500'000.-- or the equivalent from time to time in any
                  other currency

            (j)   to deliver at least forty eight (48) hours prior notice in
                  writing to the Mortgagee of any intention to put the Vessel
                  into the possession of any person for the purpose of work
                  being done upon her in an amount exceeding or which might
                  exceed USD500'000.-- or the equivalent in any other currency
                  and concurrently to notify such person that the prior written
                  consent of the Mortgagee is pre-requisite to the commencement
                  of such work

            (k)   whilst moneys remain outstanding under this Mortgage not to
                  sell or otherwise dispose of the Vessel or any shares therein,
                  mortgage, charge, pledge, transfer, abandon or hypothecate the
                  Vessel or any freight or hire moneys thereof to any person or
                  company, nor to suffer the creation of any such sale disposal
                  mortgage, charge, pledge, transfer, abandonment or

<PAGE>

                  hypothecation of the Vessel nor do or permit any act or thing
                  whereby the Vessel shall or may lose her existence or due
                  registration as a Marshall Islands ship without the prior
                  written consent of the Mortgagee as aforesaid to any sale
                  mortgage or transfer and any such sale, mortgage or transfer
                  of the Vessel shall be subject to the provisions of this
                  Mortgage and to the lien it creates

            (l)   not to cause or permit the Vessel to be operated or employed
                  in any manner contrary to International Law or to any
                  applicable law including but without limitation the laws of
                  Switzerland and the Republic of the Marshall Islands nor to
                  violate any law or carry any cargo that will expose the Vessel
                  to penalty, forfeiture, capture, detention, destruction nor to
                  abandon the Vessel in a foreign port nor to do or suffer or
                  permit to be done anything which can or may injuriously affect
                  the registration or enrollment of the Vessel under the laws
                  and regulations of the Republic of the Marshall Islands and at
                  all times to keep the Vessel duly documented thereunder

            (m)   (i)   during hostilities (whether or not a state of war shall
                        have been formally declared) between any two or more
                        nations or in which the United Nations Organization may
                        be involved or during any civil war not to employ or
                        permit the Vessel to be employed in any manner in
                        carrying any goods that shall or may be declared to be
                        contraband of war unless prior to such employment
                        special war risks policies effected with such
                        underwriters as the Mortgagee may approve and in all
                        respects to the satisfaction of the Mortgagee shall have
                        been effected signed and delivered to the Mortgagee

                  (ii)  not without the prior written approval of the Mortgagee
                        upon such terms as the Mortgagee may require with
                        particular reference to war risks insurance to enter
                        areas of hostility or threatened hostility

            (n)   not to employ the Vessel:

                  (i)   on demise charter without the prior written consent of
                        the Mortgagee which consent shall not be unreasonably
                        withheld provided that such consent may be withheld
                        unless the demise charterer agrees on terms satisfactory
                        to the Mortgagee to subordinate its rights under the
                        demise charter to her rights of the Mortgagee, hereunder
                        or

                  (ii)  on time charter for any period without the prior written
                        consent of the Mortgagee or

                  (iii) at a rate below the market rate prevailing at the time
                        when the Vessel is fixed or on terms whereby more than
                        Two (2) months hire is payable in advance without the
                        written consent of the Mortgagee

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            (o)   at all times retain a copy of this Mortgage and of any
                  assignment of this Mortgage by the Mortgagee (if requested by
                  any assignee) certified by the appropriate authorities of the
                  Republic of the Marshall Islands and by any other relevant
                  authorities with the Vessel's papers on board the Vessel and
                  any other certificates or other documents required by law and
                  to cause each such certified copy and master for the time
                  being of the Vessel and to be exhibited on demand to any
                  persons having business with the Vessel or to any
                  representative of the Mortgagee,

            (p)   promptly on demand by the Mortgagee to use its best endeavors
                  to assist the Mortgagee in or in connection with the due
                  execution and recording of this Mortgage and protection and
                  enforcement of the Mortgagee's security and in connection with
                  any act matter or thing reasonably or properly made done or
                  executed or to be made done or executed by the Mortgagee its
                  agents or servants in about the matters described in this
                  Mortgage.

      6     PROVIDED the Shipowner fully repays the Loan together with interest,
            costs and expenses pertaining thereto, fulfils all its obligations
            under the Security Documents, the Mortgagee undertakes to discharge
            the Mortgage on the Vessel, upon the request of the Shipowner. All
            costs and expenses incurred in respect of the discharge of the
            Mortgage will be borne by the Shipowner.

      7     THE MORTGAGEE shall without prejudice to its other rights and powers
            hereunder be entitled (but not bound) at any time and as often as
            may be necessary to take any such action and make all such
            expenditure as it may in its sole and absolute discretion think
            necessary or desirable for the purpose of preserving maintaining and
            /or protecting the security created by this mortgage and each and
            every expense for liability so incurred by the Mortgagee in or about
            the preservation maintenance and/or protection of the security
            (including but without limitation expense or liability incurred in
            the maintenance of any insurance in respect of the Vessel the
            discharge of any liens taxes dues assessments governmental charges
            fines and penalties lawfully imposed in respect thereof repairs
            and/or surveys effected thereon and in all such other matters for
            which the Shipowner is responsible under the terms hereof but falls
            to provide including any legal fees in connection therewith) shall
            be repayable to the Mortgagee by the Shipowner on demand together
            with interest thereon at the Default Rate from the date whereon such
            expense or liability was incurred by the Mortgagee until the date of
            judgment or payment. Such obligation of the Shipowner to reimburse
            the Mortgagee shall be an additional indebtedness due from the
            Shipowner secured by this Mortgage. The Mortgagee though privileged
            so to do shall be under no obligation to the Shipowner to take any
            such action to make expenditure or to incur any such liability as
            aforesaid nor shall the taking making or incurring thereof relieve
            the Shipowner of any default in that respect.

      8     IN CASE any one or more of the following events herein termed
            "Events of Default" shall happen

            (a)   the Shipowner fails to pay:

<PAGE>

                  (i)   on the due date any amount of principal or interest, or
                        any portion thereof, which may be payable under the Loan
                        Agreement, or

                  (ii)  within five (5) business days of the due date of any
                        other amount or five (5) business days from the date of
                        demand any amount not payable on a fixed date, which may
                        be payable by the owner under the Loan Agreement or this
                        Mortgage,

            (b)   the Shipowner fails to comply with any provision of the Loan
                  Agreement or this Mortgage and such failure continues
                  unremedied for a period of fourteen (14) business days
                  commencing from the date on which notice of such failure is
                  provided by the Mortgagee to the Shipowner, unless the Loan
                  Agreement or this Mortgage provides otherwise,

            (c)   the country of the flag of the Vessel, or any country in which
                  the Vessel may be registered (whether it may be the country in
                  which the Vessel may have a dual registration under bare boat
                  charter) becomes involved in hostilities whether war be
                  declared or not or in civil war or in the event of occupation
                  of such country by any other power in such country by
                  unconstitutional means unless arrangements satisfactory to the
                  Mortgagee have been made for the registration of the Vessel in
                  another jurisdiction or

            (d)   anything is done or suffered or omitted to be done by the
                  Shipowner which in the reasonable opinion of the Mortgagee
                  imperils the security created by this Mortgage, or

            (e)   any event occurs which would entitle any subsequent mortgagee
                  to enforce its mortgage over the Vessel.

      Then and in each and every such case the Mortgagee shall have the right to

      (i)   without notice or further demand, as and when it may see fit, to
            put into force and exercise all the powers possessed by it as the
            Mortgagee of the Vessel pursuant to Chapter 3 of the Marshall
            Islands Act 1990 as amended and in particular but without limitation

            (a)   to take possession of the Vessel

            (b)   to require that all contracts and other records relating to
                  the Policies (including details of and correspondence
                  concerning outstanding claims) be forthwith delivered to such
                  brokers as the Mortgagee may nominate

            (c)   to collect recover compromise and give a good discharge for
                  all claims then outstanding or thereafter arising under any
                  one or more of the Policies and to take over or institute all
                  such proceedings in connection therewith as the Mortgagee in
                  its absolute discretion thinks fit and to permit the brokers
                  through whom collection or recovery is effected to charge and
                  retain the usual brokerage therefor

<PAGE>

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

            (e)   to sell the Vessel or any share therein with prior notice to
                  the Shipowner as provided for in the law with or without the
                  benefit of any charterparty or other subsisting contract for
                  the employment of the Vessel by public auction or private
                  contract at any place in the world with or without
                  advertisement for cash or on credit and upon such terms as the
                  Mortgagee in its absolute discretion may determinate with
                  power to postpone any such sale and without being answerable
                  for any loss occasioned by such sale or resulting from
                  postponement thereof

            (f)   pending the sale of the Vessel to manage, insure, maintain and
                  repair the Vessel and to hold, lay-up, lease, employ,
                  charter,operate or otherwise use the Vessel in such manner and
                  for such period as the Mortgagee in its absolute discretion
                  deems expedient, accounting only for the net profits after
                  deducting operating costs and debit service (if any) of such
                  use and for such purpose. For the purposes aforesaid the
                  Mortgagee shall be entitled to do all acts and things
                  whatsoever incidental or conductive thereto including entering
                  into arrangements and contracts of whatsoever nature in
                  respect of the Vessel, her insurance,management, maintenance,
                  repair, classification and employment and generally to do and
                  cause to be done all such acts and things whatsoever and to
                  make all such arrangements whatsoever in respect of the Vessel
                  or the working of the same in all respects as if the
                  Mortgagee, as the owner of the Vessel and without being
                  responsible for any loss and damage thereby incurred

            (g)   to recover from the Shipowner on demand any loss whatsoever
                  which may be incurred by the Mortgagee in or about or in
                  connection with the exercise of the powers vested in the
                  Mortgagee under sub-clause (f) above with interest thereon at
                  the Default Rate from the date when such losses were incurred
                  by the Mortgagee until the date of full payment both before
                  and after judgment

            (h)   to recover from the Shipowner on demand all expenses, payments
                  and disbursements whatsoever incurred by the Mortgagee in or
                  about or in connection with the exercise by it of any of the
                  powers aforesaid together with interest thereon at the Default
                  Rate

      PROVIDED ALWAYS that any sale of the Vessel by the Mortgagee pursuant to
      sub-clause (i) (e) above shall operate to divest all the legal and
      beneficial interest whatsoever of the Shipowner in the Vessel and shall
      bar the Shipowner its successors and assignees and all persons claiming by
      through or under them. No purchaser shall be bound to enquire whether the
      Mortgagee's power of sale has arisen in the manner herein provided and the
      sale shall be deemed to be within the power of the Mortgagee and the
      receipt of the Mortgagee for the purchase money shall effectively
      discharge the purchaser who shall not be concerned with the manner of
      application of the proceeds of sale or be in any way answerable therefor.
      Upon any such public sale by

<PAGE>

      the Mortgagee pursuant to sub-clause (i) (e) above the Mortgagee may bid
      for the purchase of the Vessel and set-off the purchase price against all
      sums whatsoever due to it under and by virtue of this Mortgage provided
      that such purchase price shall not be less than the price offered by any
      bona fide third party

      9     FROM and after the occurrence of an Event of Default all moneys
            received by the Mortgagee in respect of:

            (i)   sale of the Vessel or any share therein

            (ii)  recovery under and by virtue of the insurances of the Vessel

            (iii) any and all moneys paid by any governmental authority as
                  compensation in the event of the requisition of the Vessel for
                  title or other compulsory acquisition of the Vessel by such
                  governmental authority (otherwise than requisition for hire)

            (iv)  the freight hire or other earnings of the Vessel

            shall be applied in accordance with the Loan Agreement

      10    (a)   EACH and every power and remedy conferred on the Mortgagee
                  hereunder shall be cumulative and in addition to every other
                  power and remedy now or hereafter existing at law in equity in
                  admiralty or by statute. Each and every other power and remedy
                  may be exercised from time to time and as often and in such
                  order may be deemed expedient by the Mortgagee. The exercise
                  or the beginning of the exercise of any power or remedy shall
                  not be construed to be waiver of the right to exercise at the
                  same time or thereafter any other power or remedy. No delay or
                  omission by the Mortgagee in the exercise of any right of
                  power or in the pursuance of any remedy shall impair any such
                  right power or remedy or be construed to be a waiver of any
                  default on the part of the Shipowner or to be acquiescence
                  therein

            (b)   The Mortgagee may from time to time and at any time waive
                  unconditionally or on such terms and conditions as may seem
                  expedient any of the covenants conditions and obligations on
                  the part of the Shipowner contained herein or any breach
                  therefor by the Shipowner. Every such waiver or other
                  indulgence granted to the Shipowner by the Mortgagee shall be
                  deemed to have been made without prejudice to its rights and
                  powers as Mortgagee of the Vessel hereunder or otherwise
                  howsoever which shall at all times thereafter remain
                  exercisable whenever the Mortgagee shall think fit and as if
                  such waiver had not been made and shall not otherwise alter or
                  affect the obligations of the Shipowner hereunder

      11    IT IS declared and agreed that the security created by this Mortgage
            shall be held by the Mortgagee as a continuing security for the
            repayment of the Loan and payment of interest thereon and of all
            other moneys expressed to be secured by this Mortgage and that the
            security so created shall not be satisfied by any intermediate
            payment or satisfaction of any part of the said debt and that the

<PAGE>
            security so created shall be in addition to and shall not in any way
            be prejudiced or affected by any collateral or other security now
            held or hereafter taken by the Mortgagee for all or any part of the
            moneys hereby secured or by any variation in the terms or
            termination of any such security

      12    THE MORTGAGEE shall be entitled at any time and as often as may be
            expedient to delegate all or any of the powers and discretion vested
            in it hereunder in such manner upon such terms and conditions
            (including the power to sub-delegate) and such persons as the
            Mortgagee in its absolute discretion may think fit

      13    THE MORTGAGEE and every receiver attorney manager agent or other
            person appointed by the Mortgagee hereunder shall be entitled to be
            indemnified out of the security created hereby in respect of all
            claims costs liabilities obligations and expenses whatsoever
            incurred by any one or more of them in relation to or in connection
            with the Vessel and the execution of any powers authorities or
            discretion vested in any one or more of them hereunder

      14    THE SHIPOWNER hereby irrevocably appoints the Mortgagee and its
            attorneys as its true and lawful attorney with full power to act
            alone and with full power of substitution until the due discharge of
            this Mortgage in accordance with the laws of the Republic of the
            Marshall Islands for the purpose of doing in its name any and all
            acts whatsoever which the Shipowner itself could do in connection
            with the property hereby mortgaged including but without limitation:

            (a)   Doing all further acts required by the Mortgagee under clause
                  5 (d) (ii) hereunder including executing, sealing, delivering
                  and registering all documents required thereunder

            (b)   Applying for receiving and taking possession of the Vessel

            (c)   Making any transfer of the Vessel provided for herein
                  including the execution, sealing, and delivery of any covenant
                  assignment or other instrument of transfer or further document
                  required to complete perfect or validate the same. The
                  Shipowner hereby ratifies and confirms that its said attorneys
                  shall lawfully do by virtue hereof PROVIDED THAT save in case
                  of the aforesaid powers shall not be exercisable by or on
                  behalf of the Mortgagee until an Event of Default has occurred
                  but the exercise of such powers by the Mortgagee shall not put
                  any person dealing with the Mortgagee upon any enquiry as to
                  whether an Event of Default has occurred nor shall such person
                  be in any way affected by notice to the contrary and exercise
                  by the Mortgagee of this power in all circumstances shall be
                  conclusive evidence of its right to exercise the same

      15    (a)   ALL demands, notices or other communications required to be
                  given under this Deed of Mortgage shall be in writing and may
                  be given or sent and delivered as follows:

                  -     to the Shipowner, in the attention of the
                        President/Director of the Shipowner, Mr. George D
                        Gourdornichalis, and Mr I. Varouxakis and Mr. E.
                        Gourdormichalis c/o Free Ships S.A., 93 Akti Miaouli,
                        18538 Piraeus, Greece

<PAGE>

                  -     to the Mortgagee, to Corner Banca SA, Via Canova 16,
                        P.O. 2835, 6901 Lugano, Switzerland,,

                  or to such other address or addresses as the Shipowner may
                  from time to time notify the Mortgagee in writing, (or as may
                  be indicated from time to time in the Mortgagee's applicable
                  "General Conditions") and shall be deemed to have been
                  received by the Shipowner on the date of dispatch if sent by
                  cable or telex and five (5) days after having been posted if
                  sent by post

            (b)   For service of legal process the Shipowner appoints the
                  Process Agent or such other person or persons as the Shipowner
                  may with the prior approval of the Mortgagee appoint in their
                  place as its agent and agrees to consider any legal process or
                  demand or notice being made or served on the said agent as
                  binding upon the Shipowner

      16    A certificate submitted by the Mortgagee to the Public Registry
            Office of the Marshall Islands as to the amount due or to become due
            from the Shipowner to the Mortgagee under this Mortgage shall in the
            absence of manifest error be conclusive and binding on the Shipowner
            for all purposes

      17    (a)   The obligations on the part of the Shipowner contained herein
                  shall bind the Shipowner and its successors and permitted
                  assignees and the rights of the Mortgagee shall inure to the
                  benefit of its successors and assigns whether so expressed or
                  not

            (b)   The Shipowner hereby undertakes to cooperate fully and to
                  execute all such documents as are necessary for the purpose of
                  ensuring that any assignee of the Mortgagee receives the full
                  benefit of all the rights of the Mortgagee and the covenants
                  of the Shipowner hereunder

      18    THE SHIPOWNER hereby agrees that any legal action or proceedings
            arising out of or in connection with this Mortgage may be brought in
            the courts of any state wherein the Vessel may for the time be found
            and hereby submits itself to each and every such jurisdiction. Such
            submission shall not limit the right of the Mortgagee to commence
            any proceeding whatsoever relating to or in connection with this
            Mortgage in whatsoever jurisdiction it shall deem fit

      19    ANY provision hereof prohibited by or unlawful or unforceable under
            any applicable law of any jurisdiction shall as to such jurisdiction
            be ineffective without modifying the remaining provisions of this
            Mortgage. Where however the provisions of any such applicable law
            may be waived they are hereby waived by the Shipowner and the
            Mortgagee to the full extent permitted by law with the object that
            this Mortgage shall be deemed to be a valid binding agreement
            enforceable in accordance with its terms

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

<PAGE>

      21    THE English text of this Mortgage is the authentic text and in the
            event of any differences arising on translation, recourse shall be
            held to the English text.

      22    THE provisions of this Mortgage and all rights and obligations
            hereunder shall be governed by and construed in accordance with the
            laws of the Republic of the Marshall Islands.

      23    EXCHANGE RATE INDEMNITY

            23.01 ANY payment or payments made to or for the account of the
                  Mortgagee in connection with this Mortgage or any of the other
                  Security Documents in a currency (the currency in which the
                  relevant payment is made being hereinafter referred to as the
                  "Relevant Currency") other than the currency in which such
                  payment or payments should be made pursuant to the terms
                  hereof (such currency being herein called the "Agreed
                  Currency") pursuant to a judgment or other order of a court
                  or tribunal of any jurisdiction or any enforcement proceedings
                  in connection with this Mortgage or any of the other Security
                  Documents shall only constitute a discharge to the Shipowner
                  to the extent of the amount of the Agreed Currency which the
                  Mortgagee is able at the most favorable rate reasonably
                  available to it for the purchase of such Agreed Currency with
                  the relevant Currency at or about 11 a.m., on the date or
                  dates of receipt by the Mortgagee of such payments in the
                  relevant Currency (or, in the case of any such date which is
                  not an Exchange Business Day), to purchase in London or such
                  other foreign exchange market as the Mortgagee may select with
                  the amount or amounts of the Relevant Currency so received by
                  the Mortgagee on such date or dates. If:

                  (i)   the amount of the Agreed Currency which Mortgagee is so
                        able to purchase at the rate aforesaid falls short of
                        the amount of the Agreed Currency due under this
                        Mortgage or any of the other Security Documents, or

                  (ii)  any condition imposed in relation to the conversion of
                        any amount paid in the Relevant Currency into the Agreed
                        Currency including, without prejudice to the generality
                        thereof, any condition imposed by any authority
                        exercising powers under any applicable exchange control
                        legislation reduces the amount in the Agreed Currency
                        which the Mortgagee receives for the amount of such
                        payment in the Relevant Currency below that amount which
                        it would have received if such condition had not been
                        imposed;

                  the Shipowner shall indemnify and hold the Mortgagee harmless
                  against any loss damage costs and/or expenses arising as a
                  result. For the purpose of this Clause, "Exchange Business
                  Day" means a day on which the relevant office of the Mortgagee
                  is open for business and on which the foreign exchange market
                  in London or such other foreign exchange market as the
                  Mortgagee may select is open for dealings between the Relevant
                  Currency and the Agreed Currency.

<PAGE>

            23.02 The above indemnity shall constitute a separate and
                  independent obligation from the other obligations contained in
                  this Mortgage and/or any of the Security Documents, shall give
                  rise to a separate and independent cause of action and shall
                  apply irrespective of any indulgence granted by the Mortgagee
                  from time to time and shall continue in full force and effect
                  notwithstanding any judgment or order for a liquidated sum or
                  sums in respect of amounts due under this Mortgage and/or
                  under any of the other Security Documents and/or under any
                  such judgment or order.

      24    RECORDATION

      For the purposes of recording this First Mortgage as required under
      Section 302 of the Marshall Islands Maritime Act, 1990, as amended, the
      total amount is United States Dollars five million (US$ 5,000,000.00) and
      interest thereon, fees, commission, expenses, and performance of mortgage
      covenants.

      The date of maturity shall be February 2008.

      -     The Discharge amount is the same of the total amount.

      25    IN THE EVENT that there is any conflict between the terms and
            conditions of the Loan Agreement and this Mortgage, the terms and
            conditions of the Loan Agreement shall prevail.

IN WITNESS WHEREOF Adventure Two S.A., Majuro, Marshall Islands, has caused this
First Preferred Mortgage to be executed by its duly authorised signatory on the
day and year first above written.

For and on behalf of
ADVENTURE TWO S.A.

/s/ George D. Gourdomichalis
-----------------------------------------
George D. Gourdomichalis
Director/Attorney in Fact

ACKNOWLEDGEMENT
---------------
CITY OF PIRAEUS        )
                        :ss.
HELLENIC REPUBLIC      )

      On this 4th day of August 2004, before me personally appeared George D.
Gourdomichalis, to me known, who being by me duly sworn deposes and says that he
resides at 93, Akti Miaouli street, 185 38 Piraeus, Greece, that he is duly
authorised attorney-in-fact of ADVENTURE TWO S.A., the corporation described in
and which executed the foregoing instrument and that he signed his name thereto
pursuant to authority granted to him by the Board of Directors of said
corporation.

                                      /s/ Capt. J. E. Giannopoulos
                                      ------------------------------------------
                                      Marshall Islands Special Agent (or Notary)

                                                       Capt. J. E. Giannopoulos
                                                            Special Agent
<PAGE>

                              Date: 21st May 2004

                                Shipping Company

                                ADVENTURE TWO SA
                            -----------------------
                                  As Borrower

                                    - and -

                            The Financial Institution

                                 CORNER BANCA SA
                            -----------------------
                                   As Lenders

                                 MV FREE DESTINY

                            -----------------------
                            LOAN FACILITY AGREEMENT
                            -----------------------

                                       1

<PAGE>

This loan agreement is made the 21st day of May 2004 between:

ADVENTURE TWO S.A., a company having its registered office at Majuro, Marshall
Islands, incorporated under the laws of the Republic of The Marshall Islands,
hereinafter called "the Borrower" and

Corner Banca SA, a banking corporation incorporated and existing under the laws
of Switzerland, acting through its office at Via Canova 16, 6900 Lugano,
Switzerland, hereinafter called "the Lender".

WHEREAS

A)    The Borrower has requested the Lender to make available a loan facility of
      United States Dollars Five Million (USD 5'000'000.--), hereinafter called
      the "Loan", to be used by the Borrower for the purpose of partially
      financing the purchase price of m/v "M TRADER" of GRT 16'282, NRT 9'377,
      length 184.61 metres, breadth 22.97 metres, built in 1982, having IMO
      Nr.8128157, presently registered in the Ownership of Karmaton Finance,
      Bahamas the "Sellers", which will be purchased by the Borrower according
      to the terms and conditions of a Memorandum of Agreement dated 30th March
      2004, hereinafter called the "M.O.A.", and will be registered in the
      Ownership of the Borrower under the Flag of Marshall Islands , Port of
      Registry Majuro under the name of "FREE DESTINY".

B)    the Lender agrees under the terms and conditions set forth hereinafter to
      make the Loan available to the Borrower.

      On the drawdown date, the Borrower shall pay to the Lender USD 25'000.--
      by way of front-end fee.

NOW THIS LOAN AGREEMENT WITNESSETH as follows:

In consideration of the Loan granted by the Lender to the Borrower, the Borrower
hereby covenants with the Lender that:

The Borrower will repay the loan in 14 (fourteen) quarterly instalments as
follows:

No. 8 (eight) quarterly instalments of USD 425'000. --each (the first
subsequently, starting 3 months after the drawdown and the last, 24 months after
the drawdown date subsequently, no. 6 (six) quarterly instalments of USD
266'667.--(the first after 27 months of the drawdown date and the last after 42
months of the drawdown date.

C)    The Borrower has the right to make extraordinary repayments:

      i)    for any portion of the loan in multiples of USD 100'000.--starting
            from the settlement of the 5th instalment with 10 days notice.

      ii)   for the totality of the loan, with 10 banking days notice. In such a
            case will be applied the 1% breakage commission on the outstanding
            loan amount and shall be immediately paid by the Borrower to the
            Lender.

                                       2

<PAGE>

            Those extraordinary repayment shall take place on a interest date
            (the meaning of "interest rate" will be hereunder clarified) only
            except in the case of Sale of the vessel.

D)    The Borrower will pay to the Lender interest on the Loan, to be adjusted
      every 3 months, on Libor rate fixed at 12 a.m (London time), plus a 1,75%
      margin, the "Interest Rate".

      Interests is to be paid quarterly in arrears, on June 30th, September
      30th, December 31st, March 31st , with the first payment becoming due on
      the 30th day of June 2004. Postal, telegraphic, telephonic expenses, taxes
      dues and stamp duties to be borne by the Borrower. The interest rate will
      be set, for the first time on the day of drawdown of the loan.

      Interest shall be calculated on the basis of a three hundred and sixty
      (360) days year and the actual number of days elapsed.

      LIBOR as previously stated, means the arithmetic (rounded up to the
      nearest one sixteenth of a percent) of the rates at which the Bank was
      being offered by prime banks Dollars deposits in an amount equal to the
      amount of the Loan in the London Inter Bank Market at or about 11.00 a.m.
      (London Time) two Business Days before the commencement of an Interest
      Period.

a)    Interest Period: the Borrower shall pay interest on the Loan in respect of
      each period of three (3) calendar months (the "interest Period") on the
      last day of such interest Period (the "Interest Date"). The first Interest
      Period shall commence on the drawdown Date and shall end three months
      later.

      Successively the Borrower shall pay interest on the Loan in respect of
      each period of three (3) calendar months (the "Interest Period") on the
      last day of such Interest Period (the "Interest Date")

      If any Interest Date should fall on a day which is not a banking day of
      the relevant month, that Interest Date shall be postponed to the next
      succeeding day which is a banking day .

      As used herein the term "banking day" shall mean a day on which banks are
      open for business in such place at which any act is to be made under this
      Agreement, as determinated by the "Association Cambiste International" of
      Paris.

b)    In the event of default by the Borrower in the payment on the due date of
      any sum (including interest thereon) payable pursuant to the terms of this
      Loan, the Borrower will pay to the Lender interest thereon from the date
      of such default up to the date of actual payment, at a rate of 1% above
      the Interest Rate, the "Default Rate")

c)    The Borrower undertakes to make all payments due at the domicile of the
      Lender, net without any deduction whatsoever.

                                       3

<PAGE>

      All payments (whether of principal interest or otherwise) to be made by
      the Borrower to the Lender hereunder or under the First Preferred Naval
      Mortgage shall be made free and clear and without deduction of any taxes,
      levies, imposts, duties, charges, fees, deductions, withholdings,
      restrictions or conditions of any nature. If at any time any applicable
      law requires the Borrower to make any such deduction or withholding from
      any such payment, the sum due from the Borrower in respect of such payment
      shall be increased to the extent necessary to ensure that, after the
      making of such deduction or withholding, the Bank receives a net sum equal
      to the sum which it would have received had no such deduction or
      withholding been required to be made. In addition the Borrower will
      provide the Bank with the relevant tax receipts.

d)    The Borrower will on demand pay to the Lender all sums of money which now
      are or hereafter shall be due to the Lender in respect of any insurance
      premium, registration consular or other dues, taxes, costs and other
      moneys which the Lender may incur in connection with said Vessel for
      repair and maintenance to keep her in class and flag, as well as for any
      action taken to avoid or to remedy any default of the Borrower.

e)    The Borrower undertakes to supply the Lender within 90 days of the end of
      each of its fiscal or financial year with a copy of its annual financial
      statements.

f)    The Borrower will pay the costs, fees and expenses of the Lender including
      but not limited to the proper legal costs and disbursements of the
      Lender's lawyers, reasonably and properly incurred in connection with the
      negotiation, preparation, execution, registration and stamping (if any) of
      this Agreement and the First Preferred Naval Mortgage and of the carrying
      out of all the transactions hereby or thereby contemplated whether such
      transactions are completed or not and also the fees and disbursements of
      the Lender's lawyers, accountants, surveyors, or other experts for any
      advice or services which the Lender may deem necessary or expedient to
      obtain in connection with the carrying out of this Agreement or the First
      Preferred Naval Mortgage and the maintenance or enforcement of the
      security thereby given, and shall pay all stamp and other duties and taxes
      (if any ) to which this Agreement or the First Preferred Naval Mortgage
      may be subject and indemnify the Lender in full for and against all costs,
      expenses and liabilities with respect to or resulting from any delay in
      paying or omission to pay any such duties or taxes.

g)    The Borrower covenants and agrees with the Lender that throughout the Loan
      period the Vessel:

   -     shall be classed Lloyd Register Al, or with anyone of the member of the
         International Association of Classification Societies (IACS), however,
         even in this case should be accepted by the Lender, free from any
         overdue recommendation affecting the maintenance of the highest class,

   -     shall comply with the requirements of IMO International Safety
         Management Code at all times and retain on board the Ship Safety
         Management Certificate;

   -     shall be kept insured with companies accepted by the Lender against
         fire, protection and indemnity, war and sabotage risks and any such
         other dangers, for

                                       4

<PAGE>

         an amount not less than 120% of the outstanding Loan and under such
         conditions as the Lender shall deem to be required as well as in such
         form as shall be satisfactory to the Lender.

h)    the outstanding principal amount of the Loan shall not exceed the 65% of
      the independently appraised market value of the Vessel from time to time.
      For the purposes of this sub-clause the Borrower shall supply or procure
      the supply to the Lender (at no cost to the Lender) with a valuation
      certificate for the Vessel at such times during the Loan Period as the
      Lender may from time to time in writing request. Such valuation
      certificates shall be given by a shipbroker nominated by the Lender from a
      list of mutually agreed first class shipbrokers and such valuation will be
      made on the basis of a cash sale (free from all encumbrances) from prompt
      delivery at arm's length between a willing seller and a buyer but taking
      into account any existing charter in respect of the Vessel. The Borrower
      agrees to accept such valuation and shall supply such information
      concerning the Vessel to any shipbroker appointed in order that they may
      make their valuation.

      If the principal amount of the Loan shall at any time exceed 65% of the
      independently appraised market value of the Vessel the Borrower shall
      forthwith upon being requested in writing by the Lender either itself make
      up the shortfall by one or a combination of any of the following:

      (i)   deposit with the Lender into a collateral interest-bearing deposit
            account, which shall be charged to the Lender a sum sufficient to
            meet such shortfall;

      (ii)  provide such other security as may be acceptable to the Lender.

2) SECURITY DOCUMENTS:

            As security for the due and punctual payment of the Loan and
            interest thereon and expense and any other costs and the fulfilment
            of the covenants on the part of the Borrower herein or in any of the
            security documents contained, the Borrower shall provide the Lender
            with the following security documents, hereinafter called together
            the "Security Documents:-".

      a)    duly registered a First Preferred Naval Mortgage over the Vessel in
            favour of the Lender and in the form of the draft attached hereto as
            Exhibit 1.

      b)    First Priority General Assignment of the Earnings, the Insurances
            and Requisition Compensation of the Vessel to be granted in favour
            of the Lender, In the form of the Notice of Assignment and Loss
            Payable Close attached hereto as Exhibit 2.

      c)    Pledge in favour the Lender of shares equal to 100% of the present
            and future capital of the Borrower.

      d)    Personal Guarantees in favour of the Lender to be granted by Mr
            George Gourdomichalis, Mr Ion Varouxakis and Efstathios D
            Gourdmichalis guaranteeing the Borrower's obligations under this
            Agreement, in the form of the draft attached hereto as Exibit 3.

      e)    Specific Time Charter assignment between the Borrower and ESTC of
            Panama;

                                       5

<PAGE>

      f)    Deed of Assignment of Credits as Exhibit 4;

      g)    Deed of Pledge as Exibit 5;

The Borrower undertakes to execute, sign, perfect and do, and will procure the
execution, signing, perfecting and doing by each of the other security parties
of, any and every such further assurance, document, act or thing as in the
reasonable opinion of the Lender may be necessary or desirable for perfecting
the security contemplated or constituted by the Security Documents.

3) CONDITIONS PRECEDENT AND SUBSEQUENT:

       Before the Bank shall have any obligation to advance any part of the
       Loan, the Borrower shall deliver or cause to be delivered to or to the
       order of the Bank the following documents and evidence:

       a)    Evidence of incorporation - Such evidence as the Bank may
             reasonably require that the Borrower was duly incorporated in its
             country of incorporation and remains in existence and, where
             appropriate, in good standing, with power to enter into, and
             perform its obligations under this Agreement.

       b)    Corporate Authorities - A copy, certified by a director or the
             secretary of the Borrower in question as true, complete, accurate
             and neither amended nor revoked, of a resolution of the directors,
             where appropriate, with signed waivers of notice of any directors'
             or shareholders' meetings approving and authorising or ratifying
             the execution of, those of the Security Documents to which that
             Security Party is or is intended to be a party and all matters
             incidental thereto.

       c)    Power of attorney The notarially attested and legalised power of
             attorney of the Borrower under which any documents are to be
             executed or transactions undertaken by the Borrower.

       d)    Evidence of Ownership Certificate of ownership and encumbrance (or
             equivalent) issued by the Registrar of Ships (or equivalent
             official) at the Vessel's existing port of registry confirming that
             the Vessel is owned by the Borrower and free of registered
             Encumbrances.

       e)    Evidence of Insurance Evidence that the Vessel is, or will from the
             delivery date insured in the manner required by the Mortgage and
             that letters of undertaking will be issued in favour of the Bank.

       f)    Certificate of Class A certificate of Class for hull and machinery
             confirming that the Vessel is classed with the highest class
             applicable to vessels of her type with Lloyd's Register of shipping
             or such other classification society as may be acceptable to the
             Bank.

                                       6

<PAGE>

      g)    Security Documents The Security Documents together with all
            notices and other documents required by any of them, duly executed
            and, in the case of the Mortgage, registered with first priority
            through the Registrar of Ships (or equivalent official) at the
            Vessel's port of registry.

      h)    Vessel documents Photocopies, certified as true, accurate and
            complete by a director or the secretary of the Borrower, of:

               -     An invoice issued by the seller, evidencing the purchase
                     price of the Vessel pursuant to the MOA dated 30th March
                     2004;

               -     The protocol of delivery and acceptance evidencing the
                     unconditional physical delivery of the Vessel to the
                     Borrower pursuant to the MOA;

               -     Any charterparty or other contract of employment of the
                     Vessel which will be in force on the Drawdown Date;

               -     The Vessel's Survey Status;

               -     The Vessel's SMC and;

               -     The Company's DOC;

In each case together with all addenda, amendments or supplements.

4) THERE SHALL BE AN EVENT OF DEFAULT IF:

      (i) the Borrower fails to pay any sum due from it under this Agreement
      and/or any Security Documents at the time, in the currency and in the
      manner specified herein or therein; or

      (ii) any representation or statement made the Borrower in this Agreement
      or in any of the Security Documents is or proves to have been incorrect or
      misleading when made; or

      (iii) the Borrower fails to observe and perform or comply with any or more
      of the covenants, terms or obligations contained in this Agreement and/or
      in any of the Security Documents relating to the insurances of the Vessel;
      or

      (iv) the Borrower fails duly to perform or comply with any other
      obligation expressed to be assumed by it in this Agreement and/or in any
      of the Security Documents and such failure is not remedied within fifteen
      (15) days after the Lender has given notice thereof to the Borrower; or

      (v) the Borrower is unable to pay its debts as they fall due, commences
      negotiations with anyone or more of its creditors with a view to the
      general readjustment or rescheduling of its indebtedness or makes a
      general assignment for the benefit of or a composition with its creditors;
      or

      (vi) the Borrower takes any corporate action or other steps are taken or
      legal proceedings are started for its winding-up, dissolution,
      administration, merger, or re-organization or for the appointment of a
      receiver, administrator, administrative receiver, trustee or similar
      officer of it or of any or all of its revenues and assets; or

                                       7

<PAGE>

      (vii) by or under the authority of any government (a) the management of
      the Borrower or the Vessel is wholly or partially displaced or the
      authority of any of them in the conduct of its business is wholly or
      partially curtailed, or (b) all or a majority of the issued shares of the
      Borrower or the whole or any part of its revenues or assets is seized,
      nationalized, expropriated or compulsorily acquired; or

      (viii) the Borrower ceases to carry on the business it carries on at the
      date hereof or it enters into any unrelated business; or

      (ix) the Borrower repudiates this Agreement and/or any of the Security
      Documents or does or causes to be done any act or thing evidencing an
      intention to repudiate this Agreement and/or any of the Security
      Documents; or

      (x) at any time any act, condition or thing required to be done, fulfilled
      or performed in order

      (a)   to enable the Borrower lawfully to enter into, exercise its rights
            under and perform the obligations expressed to be assumed by it in
            this Agreement and the Security Documents,

      (b)   to ensure that the obligations expressed to be assumed by the
            Borrower in this Agreement and the Security Documents are legal,
            valid and binding or

      (c)   to make this Agreement and the Security Documents admissible in
            evidence in any pertinent jurisdiction, is not done, fulfilled or
            performed; or

      (xi) at any time it is or becomes unlawful for the Borrower to perform or
      comply with any or all of its obligations under this Agreement and the
      Security Documents or any of the obligations of the Borrower there under
      are not or cease to be legal, valid and binding; or

      (xii) the Vessel is sold or mortgaged to a third party, without the prior
      written consent of the Lender or becomes a total loss unless the
      circumstances thereof give rise to an insurance claim in at least the
      required insurance amount (as specified in the General Assignment of
      Earnings and Insurances) or if the Vessel is abandoned or arrested and not
      released within fifteen (15) days or the Borrower, without the prior
      written consent of the Lender changes or consents to the change of the
      flag or registration of the Vessel or any distress, sequestration or
      execution is levied or enforced over all or any of the assets of the
      Borrower; or

      (xiii) any license, authorization, consent or approval at any time
      necessary to enable the Borrower to comply with its obligations under this
      Agreement and the Security Documents or to enable the operation of the
      Vessel is revoked or withheld or modified or is otherwise not granted or
      fails to remain in full force and effect or if any exchange control or
      other law or regulation shall exist which would make any transaction under
      this Agreement and the Security Documents, or the continuation thereof,
      unlawful or would prevent the performance by the Borrower of any term of
      this Agreement and/or any of the Security Documents; or

      (xiv) any material adverse change in the financial condition or operations
      or results of operations or results of operations business, properties or
      prospects of the

                                       8

<PAGE>

      Borrower occurs which would, in the reasonable opinion of the Lender be
      detrimental to the interest of the Lender as lender or materially impair
      the ability of the Borrower to perform or comply with its obligations
      under this Agreement and the Security Documents;

      then, and in any such case and at any time thereafter, the Lender shall by
      written notice to the Borrower:

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

      (b)   declare that any undrawn portion of the Loan shall be cancelled,
            whereupon the same shall be cancelled; and/or

      (c)   the Lender may forthwith enforce al its rights under this Agreement
            and the Security Documents.

      If pursuant to this clause the Lender declares the Loan to be due and
      payable on demand of the Lender, then, and at any time thereafter, the
      Lender may be written notice to the Borrower call for repayment of the
      Loan on such date as it may specify in such notice (whereupon the same
      shall become due and payable on such date together with accrued interest
      thereon and any other sums then owed by the Borrower under this Agreement
      and the Security Documents) or withdrawn its declaration, with effect from
      such date as it may specify in such notice, without prejudice to reinstate
      such notification.

5)    In the event of sale of the vessel, the Borrower shall immediately repay
      to the Lender, in full, the remaining outstanding loan plus interest and
      expenses.

6)    The Board of Directors of the Borrower have to be agreed by the Lender and
      any decision that may involve the Borrower and the Vessel other than in
      the normal course of business has to be previously submitted to the Lender
      for the approval.

7)    Until total repayment of the Loan, the relevant money flow will be
      collected in the Borrower's Operating Account with Corner Banca SA and,
      provided no event of default has occurred, applied in the following order:

      (a)   by payment on a current basis of the normal expenses and overheads
            incurred in operating the Vessel; and

      (b)   the surplus, if any, in payment to the Borrower or whomsoever is
            entitled thereto.

      From and after the occurrence of an Event of Default, all moneys credited
      to the Operating account and all sums whatsoever received by or on behalf
      of the Bank under this Loan Agreement and/or pursuant to the First
      Preferred Naval Mortgage or otherwise howsoever in connection with the
      Outstanding Indebtedness will be applied in the following manner in such
      order as the Bank considers appropriate:

                                       9

<PAGE>

      (i)   in or towards satisfaction of all sums due hereunder and under the
            First Preferred Naval Mortgage other than principal of or interest
            on the Loan;

      (ii)  in or towards satisfaction of interest accrued on the Loan;

      (iii) in or towards satisfaction of the Loan (whether or not then due and
            payable);

      (iv)  in retention by the Bank of such sums as the Bank considers
            appropriate by way of security for the outstanding indebtedness, and

      (v)   the remainder, if any, in payment to the Borrower or such other
            person as may for time being entitled thereto.

8)    The Borrower declares that the general conditions of the Lender of which
      the Borrower has received a copy, form an integral part of this Agreement.

9)    This Agreement shall be governed by, and construed in accordance with the
      Laws of Switzerland. The Borrower hereby irrevocably agrees for the
      benefit of the Lender, that the Competent Court of Lugano shall have
      non-exclusive jurisdiction to hear and determine any suit, action or
      proceedings, and to settle any disputes which may arise out for or in
      connection with this Agreement and, for such purposes, irrevocably submits
      to the jurisdiction of such court and the Lender and the Borrower, by
      their respective consents and agreements given or made hereby, do hereby
      waive trial by jury in any action, proceeding or counterclaim brought by
      any party on any matter whatsoever arising out of or in any way connected
      with this Agreement and the securities, and the transactions completed
      hereby.

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

      The submission to the jurisdiction of the courts referred to hereinabove
      shall not (and shall not be construed so as so) limit the right of the
      Lender to take proceedings against the Borrower in any other court of
      competent jurisdiction nor shall the taking of proceedings in any one or
      more jurisdictions preclude the taking of proceedings in any other
      jurisdiction, whether concurrently or not.

11)   The Borrower hereby consents generally in respect of any legal action or
      proceeding arising out of or in connection with this Agreement to the
      giving of any relief or the issue of any process in connection with such
      action or proceeding including, without limitation, the making,
      enforcement or execution against any property whatsoever (irrespective of
      its use or intended use) of any order or judgement which may be made or
      given in such action or proceeding.

                                       10

<PAGE>

IN WITNESS WHEREOF each of Adventure Two SA, Majuro, Marshall Islands, and
Corner Banca SA, Lugano, Switzerland has caused this Loan Agreement to be
executed by its duly authorised signatory on the day and year first above
written.

ADVENTURE TWO SA                                CORNER BANCA SA

/s/ George D. Gourdomichalis                    /s/ Dr. Luca Rossi
----------------------------                    ---------------------------
George D. Gourdomichalis                        Dr. Luca Rossi
(Director)                                      (Manager)

/s/ Ion Varouxakis                              /s/ Dr. Antonio Tufano
----------------------------                    ---------------------------
Ion Varouxakis                                  Dr. Antonio Tufano
(Director)                                      (Attorney)

                                       11

<PAGE>

                                   EXHIBIT 1

                         First Preferred Naval Mortgage

                                       12

<PAGE>

THIS FIRST PREFERRED MORTGAGE is made this_____________day of May 2004
by ADVENTURE TWO S.A., a corporation incorporated under the laws of the Republic
of the Marshall Islands, whose registered office is at Trust Company Complex,
Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands MH 96960 (hereinafter
called the "Shipowner") in favor of CORNER BANCA SA a company organized and
existing under the laws of the Republic of Switzerland with an address at Via
Canova 16, Lugano, Switzerland (hereinafter called the "Mortgagee")

WHEREAS

A)    The Shipowner is the absolute owner of m/v. "Free Destiny" presently
      flying under the Flag of the Marshall Islands, hereinafter called "the
      Vessel", described as below:

      IDENTIFICATION OF THE VESSEL

      Name                                   "FREE DESTINY"

      Flag                                   Marshall Islands

      Built in                               1982

      IMO/Official Number                    No. 8128157

      Gross tonnage                          16282 tons

      Net tonnage                             9377 tons

      Class notation                         Lloyds Register, +100 A1 + LMC UMS

B)    By a loan agreement dated May 21st 2004 (the "Loan Agreement") - a copy
      of which is attached hereto as Exhibit 1 and made an integral part hereof
      - made between the Mortagagee and the Shipowner, the Mortagagee agreed to
      advance to the Shipowner a Loan in the maximum amount of Five Million
      United States Dollars, (USD 5,000,000) (hereinafter "the Loan"). Word
      and expressions shall, unless the contract otherwise requires, have the
      same meaning ascribed to them in the Loan Agreement.

C)    To secure the repayment of the Loan and interest thereon and the
      performance and observance of all the agreements, covenants and provisions
      contained therein, this mortgage and in the Security Documents, the
      Shipowner has duly authorized the execution and delivery of this First
      Preferred Naval Mortgage.

      NOW THEREFORE,:

      1     NOW THEREFORE, in consideration of the premises and of other good
            and valuable consideration, the adequacy and receipt whereof are
            hereby acknowledged, and in order to secure the repayment of the
            Loan and interest thereon and the performance and observance of and
            compliance with the covenants, terms and conditions in the Loan
            Agreement and this Mortgage contained, THE SHIPOWNER

                                       1

<PAGE>

            hereby grants, conveys and mortgages to and in favor of the
            Mortgagee all of the Shipowner's right, title and interest in and to
            the whole of the Vessel TOGETHER WITH all the engines, machinery,
            masts, boats, anchors, cables, chains, rigging, tackle, apparel,
            furniture, fittings and equipment and all other appurtenances to the
            Vessel thereunto appartaining or belonging whether now owned or
            hereafter acquired whether on board or not and all additions
            improvements and replacements hereafter made in or to the Vessel or
            any part thereof or in or to her equipment and appurtenances
            aforesaid (excepting only such equipment placed on the Vessel which
            under the terms of any charterparty relating thereto does not become
            the property of the Shipowner) TO HAVE AND TO HOLD ALL AND SINGULAR
            the above mortgaged and described property unto the Mortgagee for
            its own use and benefit forever upon the terms herein set forth for
            the enforcement of the repayment of the Loan and interest thereon,
            and to secure the performance and observance of and compliance with
            the covenants terms and conditions in the Loan Agreement, this
            Mortgage and the other Security Documents contained expressed or
            implied PROVIDED HOWEVER and the condition of these presents in such
            that if the Shipowner its successors or assigns shall have repaid
            the Loan ad interest thereon in accordance with its provisions and
            shall have performed observed and complied with all the covenants
            terms and conditions in the Loan Agreement, this Mortgage and the
            other Security Documents contained expressed or implied to be
            performed observed or complied with these presents and the rights
            hereunder shall cease terminate and be void but shall otherwise
            remain in full force and effect.

      2     THE SHIPOWNER for itself, its successors and assignee HEREBY
            COVENANTS AND AGREES with the Mortgagee and its respective
            successors and assigns that the Vessel and all the appurtenances
            thereto appertaining or belonging and all improvements and
            replacements hereafter made in or to the Vessel or any part thereof
            are to be held by the Mortgagee subject to the covenants conditions
            provisions terms and uses hereinafter set forth.

      3     THE SHIPOWNER HEREBY COVENANTS AND AGREES with the Mortgagee at all
            times to perform and observe ALL AND SINGULAR the covenants,
            conditions and agreements in the Loan Agreement, this Mortgage and
            the Security Documents contained expressed or implied.

      4     THE SHIPOWNER at its own expense when and so long as this Mortgage
            shall be outstanding covenants as follows:

            (i)   to insure the Vessel and keep the Vessel insured in the
                  Shipowner's name in United States Dollars (or such other
                  currency as the Mortgagee and in such amount and upon such
                  terms as shall from time to time be required or approved in
                  writing by the mortgagee and in particular but without
                  prejudice to the generality of the foregoing

                  (a)   the insurance's shall be placed through such brokers
                        and/or with such insurance offices companies
                        underwriters war risks and protection and indemnity
                        associations or clubs in the United States or the United
                        Kingdom or in such other country and under

                                       2

<PAGE>

                        such policies as shall be approved in writing by the
                        Mortgagee such consent not to be unreasonably withheld
                        and given promptly

                  (b)   the Vessel shall be insured and kept insured in the
                        Shipowner's name against marine risks including all
                        risks customarily and usually covered by prudent
                        shipowners under policies containg the ordinary
                        conditions applicable to similar vessels including
                        collision clause and cover against risks of civil
                        commotion

                  (c)   the Vessel shall be insured and kept insured in the
                        Shipowner's name against war risks (including risks of
                        mines) and any other risk excepted by the "Free of
                        Capture and Seizure" clause in marine policies of
                        insurance

                  (d)   if required by the Mortgagee the Shipowner shall insure
                        and kept insured the Vessel in the Shipowner's name for
                        an amount to be approved by the Mortgage against excess
                        risks that is to say the proportion of claims for
                        general average and salvage charges and under the
                        running-down clause not recoverable in consequence of
                        the value at which the Vessel is assessed for the
                        purpose of such claims exceeding the insured value

                  (e)   the Vessel shall be entered and kept entered in the
                        Shipowner's name for its full value and tonnage in a
                        protection and indemnity association in respect of such
                        matters or risks as are not covered by the ordinary
                        conditions of normal risks policies port risks
                        insurances may be taken out thereon by the Shipowner
                        under the forms of port risks policies approved by the
                        Mortgagee

            (ii)  to give notice forthwith of any assignment of insurances to
                  the relevant brokers, insurance, officers, companies,
                  underwriters, war risks and protection and indemnity
                  associations or clubs in such form as may be approved by the
                  Mortgagee

            (iii) to execute and deliver all such documents and do all such
                  things as may be necessary to confer upon the Mortgagee a
                  legal title to the insurances and procure that the interests
                  of the Mortgagee is at all times endorsed or noted upon all
                  slips, cover notes, policies, certificates of entry or other
                  instruments issued in connection with the Policies and procure
                  (i) that the following loss payable clause shall be endorsed
                  upon both the hull machinery and equipment and war risks
                  policies:

                  "It is noted that by an Assignment in writing dated
                  May___2004 the Shipowner, Adventure Two SA, Majuro, Marshall
                  Islands has assigned absolutely to Corner Banca SA of
                  Switzerland, all the Shipowner's interests in this Policy and
                  all benefits hereof including all claims of whatsoever nature
                  hereunder. Claims hereunder payable in respect of an actual or
                  constructive or agreed or arranged or compromised total loss
                  or requisition for title or other compulsory requisition of
                  the Vessel and claims hereunder payable in respect of a mayor
                  casualty that is to say any casualty in respect whereof the
                  claim or the aggregate of the claim

                                       3

<PAGE>

                  exceeds Five Hundred thousand United States Dollars
                  (USD500'000.--) shall be payable to the Mortgagee. Subject
                  thereto all other claims, unless and until the Underwriters
                  have received notice from the Mortgagee of a default under the
                  Mortgage in which event all claims under this Policy of
                  Insurance shall be payable direct to the Mortgagee, shall be
                  released directly for the repair salvage or other charges
                  involved or to the Shipowner as reimbursement if they have
                  fully repaired the damage and paid all of the salvage or other
                  charges"

                  AND (ii) that the following loss payable clause shall be
                  endorsed upon the protection and indemnity certificate of
                  entry:

                  1     It is noted that Corner Banca SA are interested as first
                        mortgagee in the subject matter of this insurance up to
                        the amount recorded under Clause 24 of the Mortgage.,

                  2     Claims hereunder for all losses shall be paid direct to
                        the Shipowner unless and until the first Mortgagee shall
                        have given notice in writing that the Shipowner's are in
                        default under the First Preferred Naval Mortgage on the
                        Vessel whereafter such claims shall be payable to the
                        Mortgagee up to the amount recorded under Clause 24 of
                        the Mortgage

            (iv)  to procure that the relevant brokers and any protection and
                  indemnity association in which the Vessel may from time to
                  time be entered undertake:

                  (a)   to hold to the order of the Mortgagee the originals of
                        all policies contracts binders insurance slips cover
                        notes and certificates of entry whatsoever relating to
                        the Vessel and deliver certified copies thereof to the
                        Mortgagee on request and

                  (b)   to advise the Mortgagee promptly:

                        1     if any insurance office, company underwriter,
                              association or club cancels any of insurance,

                        2     of any variation in the terms of any of the
                              insurances or any default in the payment of any
                              premium call or contribution or failure to renew
                              any of the insurances at least Fourteen (14) days
                              before the expiry thereof and

                  (c)   not to assert any lien in respect of unpaid premiums
                        except insofar as such premiums relate only to the
                        insurances in respect of the Vessel and not to any other
                        Vessels.

            (v)   Punctually to pay all premiums calls contributions or other
                  sums payable in respect of the Policies and each of them and
                  to produce all relevant receipts when so required by the
                  Mortgagee,

                                       4

<PAGE>

            (vi)  to renew each of the insurances at least Fourteen (14) days
                  before the expire thereof and procure that the relevant
                  brokers shall promptly confirm in writing to the Morgagee as
                  and when each such renewal is effected,

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

           (viii) to procure that each of the insurances shall contain or be
                  accompanied by a waiver as against the Mortgagee of any and
                  all premium for which the Mortgagee might otherwise be or
                  become liable as a named assured loss payee or otherwise and
                  shall provide for duplicates of all notices given by the
                  insurers to the Shipowner to be sent at the same time to the
                  Mortgagee,

            (ix)  to furnish the Mortgagee from time to time on request with
                  full information about all insurances maintained on the Vessel
                  and names of the offices companies underwriters associations
                  or clubs with which such insurance is placed,

            (x)   to furnish the Mortgagee at such intervals as the Mortgagee
                  shall specify with a detailed report signed by an independent
                  firm of marine insurance brokers appointed by the Shipowner
                  and improved by the Mortgagee detailing the insurances
                  maintained on the Vessel and stating the opinion of such firm
                  as the adequacy thereof

            (xi)  promptly to furnish the Mortgagee with full information
                  regarding any casualties or other accidents or damage to the
                  Vessel involving an amount in excess of USD500'000.-- or the
                  equivalent in any other currency and give the Mortgagee short
                  details regarding any causalities or other accidents or damage
                  to the Vessel involving an amount of less than USD500'000.--
                  or the equivalent in any other currency

            (xii) not to agree to any material variation in the terms of any one
                  or more of the insurances without prior written approval of
                  the Mortgagee nor to do any act or voluntarily suffer or
                  permit any act to be done whereby any insurance shall or may
                  be invalid void avoidable suspended defeated or unforceable
                  and not to suffer or permit the Vessel to engage in any voyage
                  or to carry any cargo not permitted under any one or more of
                  the insurances without first giving written notice to the
                  Mortgagee obtaining the consent of the insurers concerned and
                  complying with such requirements as to payment of extra
                  premium or otherwise as insurers may impose and as may be
                  approved by the Mortgagee such approval not to be unreasonably
                  withheld and be given promptly

           (xiii) not without the prior written consent of the Mortgagee to
                  settle compromise or abandon any claim in respect of one or
                  more of the insurances other than a claim of less than
                  USD500'000.-- arising out of a total loss of the Vessel

                                       5

<PAGE>

            (xiv) to apply or procure the appliance of all such sums receivable
                  in respect of the insurances as are paid to the Shipowner or
                  in accordance with the Shipowner's instructions for the
                  purpose of making good the lose and fully repairing all damage
                  in respect whereof the insurance moneys shall have been
                  received

            (xv)  that in the event of the Shipowner failing to insure or
                  maintain insured the Vessel or in entering and keeping the
                  Vessel entered in a protection and indemnity and/or war risks
                  association as hereinbefore provided the Mortgagee may (but
                  shall not be bound to) insure the Vessel or enter the Vessel
                  in such manner and to such extent as the Mortgagee in its
                  discretion thinks fit and in such case the cost of all such
                  insurances and entries together with the premiums calls and
                  contributions payable in respect thereof with interest thereon
                  at the rate calculated in accordance with the above mentioned
                  Loan Agreement shall be paid on demand by the Shipowner to the
                  Mortgagee and shall be added to amounts secured by this
                  Mortgage,

            (xvi) to do all such things whatsoever and prepare execute and
                  deliver all such documents whatsoever to enable the Mortgagee
                  to collect and recover any moneys which may become due in
                  respect of the insurances and for that purpose (but without
                  limitation) to permit the Mortgagee if necessary to sue in the
                  name of the Shipowner.

      5     THE SHIPOWNER HEREBY COVENANTS AND AGREES with the Mortgagee as
            follows:

            (a)   THE SHIPOWNER, in accordance with the provisions of Section
                  302 of the Marshall Islands Maritime Act, 1990 as amended, and
                  otherwise shall comply with satisfy all the requirements and
                  formalities established by the said Maritime Act and any other
                  pertinent legislation of the Republic of the Marshall Islands
                  to perfect this Mortgage as a valid and enforceable First and
                  Preferred lien upon the Vessel and to furnish to the Mortgagee
                  from time to time such proofs as the Mortgagee may reasonably
                  request for its satisfaction with respect to the Shipowner's
                  compliance with the provisions of this sub-clause.

            (b)   At all time to carry on board the Vessel a duly certified copy
                  of this Mortgage (which shall form a part of the Vessel's
                  documents) and to cause the same to be shown to any person
                  having business with the Vessel which might create or imply
                  any commitment or encumbrance whatsoever on the Vessel and to
                  place and maintain in a conspicuous place in the navigation
                  room and in the cabin of the master of the Vessel a printed
                  notice in the following form:

                  "NOTICE OF MORTGAGE"

                  This vessel is mortgaged by a First Preferred Ship Mortgage to
                  Corner Banca SA, pursuant to the provisions of Chapter 3 of
                  the Marshall Islands Maritime Act of 1990 as amended. Under
                  the terms of the said Mortgage, neither the Shipowner, nor any
                  charterer or the master of this Vessel has

                                       6

<PAGE>

                  any power, right or authority whatever to create, incur or
                  permit to be imposed on this Vessel any lien or encumbrance
                  except for crew's wages and salvage.

            (c)   the Shipowner was duly incorporated and is now validly
                  existing and in good standing as a corporation with limited
                  liability under the laws of the Republic of Marshall Islands
                  and shall so remain during the life of this Mortgage. It is
                  duly authorized to mortgage the Vessel. All corporate action
                  necessary and required by law for the execution and delivery
                  of this Mortgage has been duly and effectively taken and this
                  Mortgage in the hands of the holders thereof is and will be a
                  valid and enforceable obligation of the Shipowner in
                  accordance with its terms.

            (d)   The Shipowner is the sole and absolute owner and is lawfully
                  possessed of the whole of the Vessel free from all liens and
                  encumbrances whatsoever except this Mortgage and will warrant
                  and defend the title and possession thereto and to every part
                  thereof for the benefit of the Mortgagee against the claims
                  and demands of all persons whomsoever

            (e)   (i)   at its expense and no cost to the Mortgagee to comply
                        with and satisfy all of the provisions of any applicable
                        governmental and exchange control regulations in
                        connection with this Mortgage or any amendment or
                        variation for the time being thereof to comply with and
                        satisfy any other applicable law or regulation in order
                        to maintain the permanent registry of the Vessel as a
                        Marshall Islands Ship under the Laws and Flag of the
                        Republic of the Marshall Islands and to establish and
                        maintain this Mortgage under the said laws as a First
                        Preferred Ship Mortgage upon the Vessel and upon all
                        renewals replacements and improvements made in or to the
                        same and not to do or suffer to be done anything whereby
                        the due and permanent registration of the Vessel under
                        the laws and flag of the Republic of the Marshall
                        Islands may be forfeited or imperiled

                  (ii)  in the event that this Mortgage or any provision hereof
                        shall be deemed invalidated in whole or in part by
                        reason of any present or future law or any decision of
                        any authoritative court or if the documents at any time
                        held by the Mortgagee be deemed by the Mortgagee for any
                        reason insufficient to carry out the true intent and
                        spirit of this Mortgage then from time to time the
                        Shipowner will do, sign, seal, execute, deliver and
                        register or procure the doing, signing, sealing,
                        execution, delivery and registration at its expense and
                        at no cost to the Mortgagee of all such other further
                        acts assurances and documents whatsoever as in the
                        opinion of the Mortgagee may be required more
                        effectually to mortgage the Vessel as security for
                        payment of the amounts outstanding under the Loan
                        Agreement as herein provided and the performance of
                        terms and provisions of this Mortgage or to perfect the
                        security constituted hereby

            (f)   at all times and without cost or expenses to the Mortgagee:

                                       7
<PAGE>

                  (i)   to put and keep the Vessel her equipment and machinery
                        at all times in a state of good running order and
                        repair, so that the Vessel shall be so far due diligence
                        can make her so tight staunch strong and well and
                        sufficiently tackled appareled furnished equipped and in
                        every respect seaworthy and in good operating condition
                        and to put and keep the Vessel in such a condition as
                        will entitle her to the highest classification and
                        rating for vessels of the same age and type with Lloyds
                        Classification Society of like standing and to make her
                        strictly comply with the requirements of any laws
                        regulations or requirements for the time being of the
                        Republic of the Marshall Islands or the maritime
                        authorities thereof or of the Vessel's Classification
                        Society and of any country province colony or dependency
                        where the Vessel may operate or trade and to procure
                        that all repairs to or replacements of any damaged worn
                        or lost parts or equipment be effected in such manner
                        (both as regards workmanship and quality of materials)
                        as not to diminish the value of the Vessel

                  (ii)  to furnish the Mortgagee on request with a statement by
                        Lloyds Register or such other classification society as
                        is acceptable to the Mortgagee that such classification
                        is maintained and to furnish the Mortgagee from time to
                        time and upon demand with all such documents as the
                        Mortgagee may require concerning the classification of
                        the Vessel,

                  (iii) not to make or permit to be made any substantial change
                        in structure type or speed of the vessel or any change
                        in her rig without first receiving written approval
                        thereof from the Mortgagee,

                  (iv)  to submit the Vessel regularly to such periodical or
                        other surveys as may be required for classification
                        purpose and if so required to supply to the Mortgagee
                        copies of all surveys or reports issued in respect
                        thereof,

            (g)   (i)   to permit the Mortgagee and such other persons appointed
                        by it to board the Vessel to have full and complete
                        access to the Vessel to view the state and condition
                        thereof and her cargo and papers, to ascertain whether
                        the Vessel is being properly repaired and maintained. In
                        the event deficiencies are found which evidence the
                        failure in keeping her in such good state or repair and
                        in such working order and condition as mentioned in sub
                        clause (d) of this Clause 5 (without prejudice however
                        to any of the Mortgagee's rights under this Mortgage) to
                        effect such repairs as shall in its reasonable opinion
                        be necessary and the Shipowner will on demand repay to
                        the Mortgagee every sum of money expended for the above
                        purpose with interest as hereinafter mentioned,

                  (ii)  to deliver to the Mortgagee on demand copies of any and
                        all documents relating to the Vessel her employment
                        position and

                                       8

<PAGE>

                        engagements particulars of all towages and salvages and
                        copies of all charters and other contracts for her
                        employment or otherwise howsoever concerning her

            (h)   (i)   to pay and discharge or cause to be paid and discharged
                        when due and payable from time to time all debts damages
                        and liabilities whatsoever which may have given or may
                        give rise to maritime or possessory liens on or claims
                        enforceable against the Vessel and all taxes assessments
                        governmental charges fines and penalties legally imposed
                        on the Vessel or any income therefrom,

                  (ii)  except the Mortgage constituted pursuant hereto not to
                        create or suffer to be continued any lien other than a
                        lien for crews wages encumbrances security interest or
                        charge on the Vessel or any income therefrom and in due
                        course and in any event within Fifteen (15) days after
                        the same becomes due and payable to pay or cause to be
                        discharged or make adequate provision for the payment or
                        discharge of all claims or demands which if not paid or
                        discharged might in admiralty in equity or at law or
                        pursuant to any statute in any jurisdiction to which the
                        Vessel may at time be subject have equality with
                        priority to or preference over the lien of this Mortgage
                        and to cause the Vessel to be released or discharged
                        from such lien encumbrance security interest or charge,

            (i)   promptly to furnish the Mortgagee from time to time and at any
                  time with copies of all such accounts financial statements
                  reports and such other financial information concerning the
                  Shipowner as the Mortgagee may reasonably request

            (j)   promptly to notify the Mortgagee thereof by telex confirmed by
                  letter addressed to the Mortgagee at its address aforesaid or
                  such other address as the Mortgagee may from time to time
                  direct in writing to the Shipowner in the event of the Vessel
                  being arrested or detained by any court or tribunal or by any
                  government or other authority or in the event of any accident
                  bottomry average salvage any assistance by third persons or
                  any loss of classification in respect of the Vessel or if the
                  Vessel is subject to any legal proceedings for a sum higher
                  than USD500'000.-- or the equivalent from time to time in any
                  other currency

            (k)   to deliver at least forty eight (48) hours prior notice in
                  writing to the Mortgagee of any intention to put the Vessel
                  into the possession of any person for the purpose of work
                  being done upon her in an amount exceeding or which might
                  exceed USD500'000.-- or the equivalent in any other currency
                  and concurrently to notify such person that the prior written
                  consent of the Mortgagee is pre-requisite to the commencement
                  of such work

            (l)   whilst moneys remain outstanding under this Mortgage not to
                  sell or otherwise dispose of the Vessel or any shares therein,
                  mortgage, charge, pledge, transfer, abandon or hypothecate the
                  Vessel or any freight or hire moneys thereof to any person or
                  company, nor to suffer the creation of

                                       9

<PAGE>

                  any such sale disposal mortgage, charge, pledge, transfer,
                  abandonment or hypothecation of the Vessel nor do or permit
                  any act or thing whereby the Vessel shall or may lose her
                  existence or due registration as a Marshall Islands ship
                  without the prior written consent of the Mortgagee as
                  aforesaid to any sale mortgage or transfer and any such sale,
                  mortgage or transfer of the Vessel shall be subject to the
                  provisions of this Mortgage and to the lien it creates

            (m)   not to cause or permit the Vessel to be operated or employed
                  in any manner contrary to International Law or to any
                  applicable law including but without limitation the laws of
                  Switzerland and the Republic of the Marshall Islands nor to
                  violate any law or carry any cargo that will expose the Vessel
                  to penalty, forfeiture, capture, detention, destruction nor to
                  abandon the Vessel in a foreign port nor to do or suffer or
                  permit to be done anything which can or may injuriously affect
                  the registration or enrollment of the Vessel under the laws
                  and regulations of the Republic of the Marshall Islands and at
                  all times to keep the Vessel duly documented thereunder

            (n)   (i)   during hostilities (whether or not a state of war shall
                        have been formally declared) between any two or more
                        nations or in which the United Nations Organization may
                        be involved or during any civil war not to employ or
                        permit the Vessel to be employed in any manner in
                        carrying any goods that shall or may be declared to be
                        contraband of war unless prior to such employment
                        special war risks policies effected with such
                        underwriters as the Mortgagee may approve and in all
                        respects to the satisfaction of the Mortgagee shall have
                        been effected signed and delivered to the Mortgagee

                  (ii)  not without the prior written approval of the Mortgagee
                        upon such terms as the Mortgagee may require with
                        particular reference to war risks insurance to enter
                        areas of hostility or threatened hostility

            (o)   not to employ the Vessel:

                  (i)   on demise charter without the prior written consent of
                        the Mortgagee which consent shall not be unreasonably
                        withheld provided that such consent may be withheld
                        unless the demise charterer agrees on terms satisfactory
                        to the Mortgagee to subordinate its rights under the
                        demise charter to her rights of the Mortgagee, hereunder
                        or

                  (ii)  on time charter for any period without the prior written
                        consent of the Mortgagee or

                  (iii) at a rate below the market rate prevailing at the time
                        when the Vessel is fixed or on terms whereby more than
                        Two (2) months hire is payable in advance without the
                        written consent of the Mortgagee

                                       10

<PAGE>

            (p)   at all times retain a copy of this Mortgage and of any
                  assignment of this Mortgage by the Mortgagee (if requested by
                  any assignee) certified by the appropriate authorities of the
                  Republic of the Marshall Islands and by any other relevant
                  authorities with the Vessel's papers on board the Vessel and
                  any other certificates or other documents required by law and
                  to cause each such certified copy and master for the time
                  being of the Vessel and to be exhibited on demand to any
                  persons having business with the Vessel or to any
                  representative of the Mortgagee,

            (q)   promptly on demand by the Mortgagee to use its best endeavors
                  to assist the Mortgagee in or in connection with the due
                  execution and recording of this Mortgage and protection and
                  enforcement of the Mortgagee's security and in connection with
                  any act matter or thing reasonably or properly made done or
                  executed or to be made done or executed by the Mortgagee its
                  agents or servants in about the matters described in this
                  Mortgage.

      6     PROVIDED the Shipowner fully repays the Loan together with interest,
            costs and expenses pertaining thereto, fulfils all its obligations
            under the Security Documents, the Mortgagee undertakes to discharge
            the Mortgage on the Vessel, upon the request of the Shipowner. All
            costs and expenses incurred in respect of the discharge of the
            Mortgage will be borne by the Shipowner.

      7     THE MORTGAGEE shall without prejudice to its other rights and powers
            hereunder be entitled (but not bound) at any time and as often as
            may be necessary to take any such action and make all such
            expenditure as it may in its sole and absolute discretion think
            necessary or desirable for the purpose of preserving maintaining and
            /or protecting the security created by this mortgage and each and
            every expense for liability so incurred by the Mortgagee in or about
            the preservation maintenance and/or protection of the security
            (including but without limitation expense or liability incurred in
            the maintenance of any insurance in respect of the Vessel the
            discharge of any liens taxes dues assessments governmental charges
            fines and penalties lawfully imposed in respect thereof repairs
            and/or surveys effected thereon and in all such other matters for
            which the Shipowner is responsible under the terms hereof but falls
            to provide including any legal fees in connection therewith) shall
            be repayable to the Mortgagee by the Shipowner on demand together
            with interest thereon at the Default Rate from the date whereon such
            expense or liability was incurred by the Mortgagee until the date of
            judgment or payment. Such obligation of the Shipowner to reimburse
            the Mortgagee shall be an additional indebtedness due from the
            Shipowner secured by this Mortgage. The Mortgagee though privileged
            so to do shall be under no obligation to the Shipowner to take any
            such action to make expenditure or to incur any such liability as
            aforesaid nor shall the taking making or incurring thereof relieve
            the Shipowner of any default in that respect.

      8     IN CASE any one or more of the following events herein termed
            "Events of Default" shall happen

                                       11

<PAGE>

            (a)   the Shipowner fails to pay:

                  (i)   on the due date any amount of principal or interest, or
                        any portion thereof, which may be payable under the Loan
                        Agreement, or

                  (ii)  within five (5) business days of the due date of any
                        other amount or five (5) business days from the date of
                        demand any amount not payable on a fixed date, which may
                        be payable by the Ship-owner under the Loan Agreement or
                        this Mortgage,

            (b)   the Shipowner fails to comply with any provision of the Loan
                  Agreement or this Mortgage and such failure continues
                  unremedied for a period of fourteen (14) business days
                  commencing from the date on which notice of such failure is
                  provided by the Mortgagee to the Shipowner, unless the Loan
                  Agreement or this Mortgage provides otherwise,

            (c)   the country of the flag of the Vessel, or any country in which
                  the Vessel may be registered (whether it may be the country in
                  which the Vessel may have a dual registration under bare boat
                  charter) becomes involved in hostilities whether war be
                  declared or not or in civil war or in the event of occupation
                  of such country by any other power in such country by
                  unconstitutional means unless arrangements satisfactory to the
                  Mortgagee have been made for the registration of the Vessel in
                  another jurisdiction or

            (d)   anything is done or suffered or omitted to be done by the
                  Shipowner which in the reasonable opinion of the Mortgagee
                  imperils the security created by this Mortgage, or

            (e)   any event occurs which would entitle any subsequent mortgagee
                  to enforce its mortgage over the Vessel.

      Then and in each and every such case the Mortgagee shall have the right to

            to put into force and exercise all the powers possessed by it as the
            Mortgagee of the Vessel pursuant to Chapter 3 of the Marshall
            Islands Act 1990 as amended, and without notice or further demand,
            as and when it may see fit, in particular but without limitation

            (a)   to take possession of the Vessel

            (b)   to require that all contracts and other records relating to
                  the Policies (including details of and correspondence
                  concerning outstanding claims) be forthwith delivered to such
                  brokers as the Mortgagee may nominate

            (c)   to collect recover compromise and give a good discharge for
                  all claims then outstanding or thereafter arising under any
                  one or more of the Policies and to take over or institute all
                  such proceedings in connection therewith as the Mortgagee in
                  its absolute discretion thinks fit and to

                                       12

<PAGE>

                  permit the brokers through whom collection or recovery is
                  effected to charge and retain the usual brokerage therefor

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

            (e)   to sell the Vessel or any share therein with prior notice to
                  the Shipowner as provided for in the law with or without the
                  benefit of any charterparty or other subsisting contract for
                  the employment of the Vessel by public auction or private
                  contract at any place in the world with or without
                  advertisement for cash or on credit and upon such terms as the
                  Mortgagee in its absolute discretion may determinate with
                  power to postpone any such sale and without being answerable
                  for any loss occasioned by such sale or resulting from
                  postponement thereof

            (f)   pending the sale of the Vessel to manage, insure, maintain and
                  repair the Vessel and to hold, lay-up, lease, employ, charter,
                  operate or otherwise use the Vessel in such manner and for
                  such period as the Mortgagee in its absolute discretion deems
                  expedient, accounting only for the net profits after deducting
                  operating costs and debit service (if any) of such use and for
                  such purpose. For the purposes aforesaid the Mortgagee shall
                  be entitled to do all acts and things whatsoever incidental or
                  conductive thereto including entering into arrangements and
                  contracts of whatsoever nature in respect of the Vessel, her
                  insurance,management, maintenance, repair, classification and
                  employment and generally to do and cause to be done all such
                  acts and things whatsoever and to make all such arrangements
                  whatsoever in respect of the Vessel or the working of the same
                  in all respects as if the Mortgagee, as the owner of the
                  Vessel and without being responsible for any loss and damage
                  thereby incurred

            (g)   to recover from the Shipowner on demand any loss whatsoever
                  which may be incurred by the Mortgagee in or about or in
                  connection with the exercise of the powers vested in the
                  Mortgagee under sub-clause (f) above with interest thereon at
                  the Default Rate from the date when such losses were incurred
                  by the Mortgagee until the date of full payment both before
                  and after judgment

            (h)   to recover from the Shipowner on demand all expenses, payments
                  and disbursements whatsoever incurred by the Mortgagee in or
                  about or in connection with the exercise by it of any of the
                  powers aforesaid together with interest thereon at the Default
                  Rate

      PROVIDED ALWAYS that any sale of the Vessel by the Mortgagee pursuant to
      sub-clause (i) (e) above shall operate to divest all the legal and
      beneficial interest whatsoever of the Shipowner in the Vessel and shall
      bar the Shipowner its successors and assignees and all persons claiming by
      through or under them. No purchaser shall be bound to enquire whether the
      Mortgagee's power of sale has arisen in the manner herein provided and the
      sale shall be deemed to be within the power of the Mortgagee and the
      receipt of the Mortgagee for the purchase money shall effectively
      discharge

                                       13

<PAGE>

      the purchaser who shall not be concerned with the manner of application of
      the proceeds of sale or be in any way answerable therefor. Upon any such
      public sale by the Mortgagee pursuant to sub-clause (i) (e) above the
      Mortgagee may bid for the purchase of the Vessel and set-off the purchase
      price against all sums whatsoever due to it under and by virtue of this
      Mortgage provided that such purchase price shall not be less than the
      price offered by any bona fide third party

      9     FROM and after the occurrence of an Event of Default all moneys
            received by the Mortgagee in respect of:

            (i)   sale of the Vessel or any share therein

            (ii)  recovery under and by virtue of the insurances of the Vessel

            (iii) any and all moneys paid by any governmental authority as
                  compensation in the event of the requisition of the Vessel for
                  tide or other compulsory acquisition of the Vessel by such
                  governmental authority (otherwise than requisition for hire)

            (iv)  the freight hire or other earnings of the Vessel shall be
                  applied in accordance with the Loan Agreement

      10    (a)   EACH and every power and remedy conferred on the Mortgagee
                  hereunder shall be cumulative and in addition to every other
                  power and remedy now or hereafter existing at law in equity in
                  admiralty or by statute. Each and every other power and remedy
                  may be exercised from time to time and as often and in such
                  order may be deemed expedient by the Mortgagee. The exercise
                  or the beginning of the exercise of any power or remedy shall
                  not be construed to be waiver of the right to exercise at the
                  same time or thereafter any other power or remedy. No delay or
                  omission by the Mortgagee in the exercise of any right of
                  power or in the pursuance of any remedy shall impair any such
                  right power or remedy or be construed to be a waiver of any
                  default on the part of the Shipowner or to be acquiescence
                  therein

            (b)   The Mortgagee may from time to time and at any time waive
                  unconditionally or on such terms and conditions as may seem
                  expedient any of the covenants conditions and obligations on
                  the part of the Shipowner contained herein or any breach
                  therefor by the Shipowner. Every such waiver or other
                  indulgence granted to the Shipowner by the Mortgagee shall be
                  deemed to have been made without prejudice to its rights and
                  powers as Mortgagee of the Vessel hereunder or otherwise
                  howsoever which shall at all times thereafter remain
                  exercisable whenever the Mortgagee shall think fit and as if
                  such waiver had not been made and shall not otherwise alter or
                  affect me obligations of the Shipowner hereunder

      11    IT IS declared and agreed that the security created by this Mortgage
            shall be held by the Mortgagee as a continuing security for the
            repayment of the Loan and payment of interest thereon and of all
            other moneys expressed to be secured by

                                       14

<PAGE>

            this Mortgage and that the security so created shall not be
            satisfied by any intermediate payment or satisfaction of any part of
            the said debt and that the security so created shall be in addition
            to and shall not in any way be prejudiced or affected by any
            collateral or other security now held or hereafter taken by the
            Mortgagee for all or any part of the moneys hereby secured or by any
            variation in the terms or termination of any such security

      12    THE MORTGAGEE shall be entitled at any time and as often as may be
            expedient to delegate all or any of the powers and discretion vested
            in it hereunder in such manner upon such terms and conditions
            (including the power to sub-delegate) and such persons as the
            Mortgagee in its absolute discretion may think fit

      13    THE MORTGAGEE and every receiver attorney manager agent or other
            person appointed by the Mortgagee hereunder shall be entitled to be
            indemnified out of the security created hereby in respect of all
            claims costs liabilities obligations and expenses whatsoever
            incurred by any one or more of them in relation to or in connection
            with the Vessel and the execution of any powers authorities or
            discretion vested in any one or more of them hereunder

      14    THE SHIPOWNER hereby irrevocably appoints the Mortgagee and its
            attorneys as its true and lawful attorney with full power to act
            alone and with full power of substitution until the due discharge of
            this Mortgage in accordance with the laws of the Republic of the
            Marshall Islands for the purpose of doing in its name any and all
            acts whatsoever which the Shipowner itself could do in connection
            with the property hereby mortgaged including but without limitation:

            (a)   doing all further acts required by the Mortgagee under clause
                  5 (e) (ii) hereunder including executing, sealing, delivering
                  and registering all documents required thereunder

            (b)   applying for receiving and taking possession of the Vessel

            (c)   making any transfer of the Vessel provided for herein
                  including the execution, sealing, and delivery of any covenant
                  assignment or other instrument of transfer or further document
                  required to complete perfect or validate the same. The
                  Shipowner hereby ratifies and confirms that its said attorneys
                  shall lawfully do by virtue hereof PROVIDED THAT save in case
                  of the aforesaid powers shall not be exercisable by or on
                  behalf of the Mortgagee until an Event of Default has occurred
                  but the exercise of such powers by the Mortgagee shall not put
                  any person dealing with the Mortgagee upon any enquiry as to
                  whether an Event of Default has occurred nor shall such person
                  be in any way affected by notice to the contrary and exercise
                  by the Mortgagee of this power in all circumstances shall be
                  conclusive evidence of its right to exercise the same

      15    (a)   ALL demands, notices or other communications required to be
                  given under this Mortgage shall be in writing and may be given
                  or sent and delivered as follows:

                  -     to the Shipowner, in person of the present
                        President/Director of the Company, Mr George D
                        Gourdornichaalis, Mr Ion Varouxakis and and

                                       15

<PAGE>

                        Mr. E Gourdormichalis c/o Free Ships SA, 93 Akti
                        Miaouli, 18538 Piraeus, Greece

                  -     to the Mortgagee, to Corner Banca SA, Via Canova 16,
                        P.O. 2835, 6901 Lugano, Switzerland,,

                  or to such other address or addresses as the Shipowner may
                  from time to time notify the Mortgagee in writing, (or as may
                  be indicated from time to time in the Mortgagee's applicable
                  "General Conditions") and shall be deemed to have been
                  received by the Shipowner on the date of dispatch if sent by
                  cable or telex and five (5) days after having been posted if
                  sent by post

            (b)   For service of legal process the Shipowner appoints the
                  Process Agent or such other person or persons as the Shipowner
                  may with the prior approval of the Mortgagee appoint in their
                  place as its agent and agrees to consider any legal process or
                  demand or notice being made or served on the said agent as
                  binding upon the Shipowner

      16          A certificate submitted by the Mortgagee to the Public
                  Registry Office of the Marshall Islands as to the amount due
                  or to become due from the Shipowner to the Mortgagee under
                  this Mortgage shall in the absence of manifest error be
                  conclusive and binding on the Shipowner for all purposes

      17    (a)   The obligations on the part of the Shipowner contained herein
                  shall bind the Shipowner and its successors and permitted
                  assignees and the rights of the Mortgagee shall inure to the
                  benefit of its successors and assigns whether so expressed or
                  not

            (b)   The Shipowner hereby undertakes to cooperate fully and to
                  execute all such documents as are necessary for the purpose of
                  ensuring that any assignee of the Mortgagee receives the full
                  benefit of all the rights of the Mortgagee and the covenants
                  of the Shipowner hereunder

      18    THE SHIPOWNER hereby agrees that any legal action or proceedings
            arising out of or in connection with this Mortgage may be brought in
            the courts of any state wherein the Vessel may for the time be found
            and hereby submits itself to each and every such jurisdiction. Such
            submission shall not limit the right of the Mortgagee to commence
            any proceeding whatsoever relating to or in connection with this
            Mortgage in whatsoever jurisdiction it shall deem fit

      19    ANY provision hereof prohibited by or unlawful or unforceable under
            any applicable law of any jurisdiction shall as to such jurisdiction
            be ineffective without modifying the remaining provisions of this
            Mortgage. Where however the provisions of any such applicable law
            may be waived they are hereby waived by the Shipowner and the
            Mortgagee to the full extent permitted by law with the object that
            this Mortgage shall be deemed to be a valid binding agreement
            enforceable in accordance with its terms

                                       16

<PAGE>

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

      21    THE English text of this Mortgage is the authentic text and in the
            event of any differences arising on translation, recourse shall be
            held to the English text.

      22    THE provisions of this Mortgage and all rights and obligations
            hereunder shall be governed by and construed in accordance with the
            laws of the Republic of the Marshall Islands.

      23    EXCHANGE RATE INDEMNITY

            23.01 ANY payment or payments made to or for the account of the
                  Mortgagee in connection with this Mortgage or any of the other
                  Security Documents in a currency (the currency in which the
                  relevant payment is made being hereinafter referred to as the
                  "Relevant Currency") other than the currency in which such
                  payment or payments should be made pursuant to the terms
                  hereof (such currency being herein called the "Agreed
                  Currency") pursuant to a judgment or other order of a court or
                  tribunal of any jurisdiction or any enforcement proceedings in
                  connection with this Mortgage or any of the other Security
                  Documents shall only constitute a discharge to the Shipowner
                  to the extent of the amount of the Agreed Currency which the
                  Mortgagee is able at the most favorable rate reasonably
                  available to it for the purchase of such Agreed Currency with
                  the relevant Currency at or about 11 a.m., on the date or
                  dates of receipt by the Mortgagee of such payments in the
                  relevant Currency (or, in the case of any such date which is
                  not an Exchange Business Day), to purchase in London or such
                  other foreign exchange market as the Mortgagee may select with
                  the amount or amounts of the Relevant Currency so received by
                  the Mortgagee on such date or dates. If:

                  (i)   the amount of the Agreed Currency which Mortgagee is so
                        able to purchase at the rate aforesaid falls short of
                        the amount of the Agreed Currency due under this
                        Mortgage or any of the other Security Documents, or

                  (ii)  any condition imposed in relation to the conversion of
                        any amount paid in the Relevant Currency into the Agreed
                        Currency including, without prejudice to the generality
                        thereof, any condition imposed by any authority
                        exercising powers under any applicable exchange control
                        legislation reduces the amount in the Agreed Currency
                        which the Mortgagee receives for the amount of such
                        payment in the Relevant Currency below that amount which
                        it would have received if such condition had not been
                        imposed;

                  the Shipowner shall indemnify and hold the Mortgagee harmless
                  against any loss damage costs and/or expenses arising as a
                  result. For the purpose of this Clause, "Exchange Business
                  Day" means a day on which the relevant office of the Mortgagee
                  is open for business and on which the foreign exchange market
                  in London or such other foreign exchange market

                                       17
<PAGE>
                  as the Mortgagee may select is open for dealings between the
                  Relevant Currency and the Agreed Currency.

            23.02 The above indemnity shall constitute a separate and
                  independent obligation from the other obligations contained in
                  this Mortgage and/or any of the Security Documents, shall give
                  rise to a separate and independent cause of action and shall
                  apply irrespective of any indulgence granted by the Mortgagee
                  from time to time and shall continue in full force and effect
                  notwithstanding any judgment or order for a liquidated sum or
                  sums in respect of amounts due under this Mortgage and/or
                  under any of the other Security Documents and/or under any
                  such judgment or order.

      24    RECORDATION

      For the purposes of recording this First Mortgage as required under
      Section 302 of the Marshall Islands Maritime Act, 1990, as amended, the
      total amount is United States Dollars five million (US$ _5,000,000) and
      interest thereon and performance of mortgage covenants.

      The date of maturity shall be December 2008.

      -     The Discharge amount is the same of the total amount.

      25    IN THE EVENT that there is any conflict between the terms and
            conditions of the Loan Agreement and this Mortgage, the terms and
            conditions of the Loan Agreement shall prevail provided however,
            that this Mortgage shall be governed solely by Marshall Islands law.

      IN WITNESS WHEREOF Adventure Two S.A., Majuro, Marshall Islands, has
      caused this First Preferred Ship Mortgage to be executed by its duly
      authorised signatories on the day and year first above written.

            ADVENTURE TWO S.A.

            ____________________________
            George D. Gourdomichalis
            (Director)

            ____________________________
            Ion Varouxakis
            (Director)

                                       18

<PAGE>

                           ACKNOWLEDGEMENT OF MORTGAGE

REPUBLIC OF GREECE                                 )
                                                   }
                                                   )ss:
                                                   )
CITY OF PIRAEUS                                    )

On this __ day of _______ 2004 before me personally appeared ___ and ________
_________ to me known who being by me duly sworn did depose and say that they
reside at ___________________________________________________________________
_________ that they are directors of ADVENTURE TWO S.A. the corporation
described in and which executed the foregoing instrument; and that each signed
his name thereto by order of the Board of Directors of said Corporation.

______________________________
Special Agent

                                       19

<PAGE>

                                   EXHIBIT 2

                              Notice of Assignment
                              Loss Payable Clause

                                       13
<PAGE>

                              NOTICE OF ASSIGNMENT

   (for attachment by way of endorsement to every note, contract and policy)

                                m/v FREE DESTINY

Take notice that we Adventure Two SA, a company having its registered office at
Majuro, Marshall Islands, a corporation incorporated under the law of Republic
of the Marshall Islands on February 5, 2004, hereinafter called the Owner of the
above mentioned vessel, have assigned to the Bank Corner Banca SA a banking
corporation incorporated and existing under the laws of Switzerland, acting
through its office at Via Canova 16, 6900 Lugano, Switzerland by an ASSIGNMENT
AGREEMENT bearing the even date herewith entered into between ourselves and the
said Bank, all insurances in respect of the vessel on the above and all moneys
to become payable hereunder or in respect thereof.

Piraeus,

                                                   BY WAY OF ENDORSEMENT

                                                   For and on behalf of

                                                   ____________________________

                                                   ADVENTURE TWO SA

<PAGE>

                               LOSS PAYABLE CLAUSE

The present insurance policy is binding in all effects in favour of Corner Banca
SA. of Via Canova 16, 6900 Lugano (Switzerland), hereinafter " the Bank ", with
assigned guarantees over the entirety of m/v. " FREE DESTINY " flying under the
Flag and Laws of The Republic of Marshall Islands together with the engines,
boats, masts, tackle and other appurtenances to her belonging.

And the Underwriters are obliged to:

a)    not to liquidate any damage without the presence and with the consent of "
      the Bank ";

b)    notify to " the Bank " immediately and by registered letter, the eventual
      missing payment of the insurance premium and to consider the insurance
      policy in force for 15 (fifteen) days from the day the above registered
      letter has been received by " the Bank " and " the Bank " is allowed but
      not obliged to pay the insurance premium;

c)    not to make any alterations to the present policy without previous consent
      of " the Bank " and to advise the same of any events or circumstances that
      may compromise the validity of the insurance policy.

Dated,

The Underwriters                                  ADVENTURE TWO SA

                                               ______________________
<PAGE>

                                    EXIBIT 3

                               Personal Guarantee

                                       14
<PAGE>

                             Date:_________________

                                  as Guarantor

                                     -and-

                                 Corner Banca SA
                                     as Bank

                         PERSONAL GUARANTEE
                         for a secured Loan Facility
                         of up to U.S.$ 5'000'000.--made to
                         ADVENTURE TWO S.A.

<PAGE>

THIS GUARANTEE IS MADE IN PIRAEUS on this_______________________day of May 2004.

BY :________________________(hereinafter referred to as "the Guarantor").

IN FAVOUR OF : Corner Banca S.A. a company duly incorporated under the laws of
Switzerland, having its registered office at via Canova 16, 6900 Lugano (CH)
(hereinafter referred to as " the Bank").

WHEREAS

A)    Under and pursuant to the terms of a loan agreement dated_____may 2004
      (the "Loan agreement") the Bank has agreed to advance to ADVENTURE TWO
      S.A. of Majuro, Marshall Islands (hereinafter called "the Debtor") the
      amount of U.S. Dollars five millions (U.S. $ 5'000'000.--) for the purpose
      therein stated.

B)    The execution and delivery of this Guarantee is one of the conditions
      precedent to the Bank making or continuing the facilities to the Debtor.

NOW, therefore, the Guarantor hereby guarantees to the Bank, unreservedly and
irrevocably, the fulfillment of the Debtor's obligations, towards the Bank,
whether present or future, resulting from the Loan Agreement, where from result
or may result debts of the Debtor to the Bank, and that, consequently, by virtue
of the present Guarantee the Guarantor undertakes directly toward the Bank to
pay off the obligations of the Debtor in full, when same become due, and
conditional debts irrespective of their amount, based either of explicit
provisions of the Loan Agreement, or any normal or irregular development of the
Loan Agreement, as soon as such debts are due or shall become due, and payment
thereof shall be demanded by the Bank, together with the interest on such debts
(contractual or legal or in arreas) and any ancillary debt of the Debtor, as
well as any other costs and expenses, paid or incurred by the Bank in connection
with the debt itself and the present Guarantee.

The Guarantee provided herein is governed by the following explicitly stipulated
terms:

1. The Guarantor is hereunder responsible as principal Debtor, jointly and in
toto with the Debtor and any other guarantor/s and is consequently deprived of
the right which he may have to compel the Bank to proceed with the enforcement
of the claims of the Bank against the Debtor, prior to the Bank 's enforcement
of this Guarantee against the Guarantor, and the Guarantor hereby expressly
waives the exception of previous action (privilegium excussionis). The Guarantor
is not to raise against the Bank the non-personal objection of the Debtor.
Likewise, the Guarantor is not entitled to lodge against the Bank any
counter-claims of the Debtor against the Bank, or any claims of his own (the
Guarantor's). The Guarantor shall be liable under this Guarantee even in case of
invalidation or defectiveness of any of the obligations of the Debtor under the
Loan Agreement or in case of invalidation of the Loan Agreement, as if same were
fully valid and enforceable.

2. The duration of the Guarantee is indefinite and the guarantor's liability is
terminated only when full payment of the Debtor's obligations towards the Bank
under the Loan Agreement has been effected. The Bank is entitled to moderate at
its discretion the Loan Agreement entered into by the Bank and the Debtor or to
extend the time of fulfillment of the Debtor's obligations, or shorten such
time, or to review in whole or in part, the Loan Agreement with the Debtor. The
Bank will also be entitled to exchange other securities or guarantees granted to
the Bank by the Debtor, or guarantees granted to the Bank by other Guarantors,
return such guarantees, or waive such guarantees, or refrain from pursuing the
Bank's claims there from, or provide time limits or other facilities at the
Bank's absolute discretion. The Bank may perform any or all of

<PAGE>

these acts without any notice to, or any consent of, the Guarantor, and without
thereby effecting in the least the liability of the Guarantor deriving from the
present Guarantee with the Bank. Consequently, the Guarantor waives all its
rights, in general, to invoke the above acts of the Bank in order to absolve
itself and, more specifically, waives all his rights under Articles 862, 863,
866,867 of the Greek Civil Code.

3. The Guarantor shall be totally responsible together with other Guarantors (if
any) who have already guarantee after the date of execution of this Guarantee,
the fulfillment of the Debtor's obligations towards the Bank under the
Guarantee.

4. Any delay or omission of the Bank to pursue its rights against the Guarantor
under this agreement shall not operate as a waiver by the Bank of such rights,
nor will the isolated or partial performance of such rights excluded the further
performance thereof or the performance of other rights. The Bank's waiver must
be evidence in writing and shall apply only on the specific rights or on the
specific case defined in such written waiver.

5. The present Guarantee shall bind the Guarantor, its assignees, and its
general or special successors, and it shall act in favour of the Bank, its
assignees and its general and special successors.

6. The Bank shall be entitled to withhold its debts to the Guarantor,
irrespective of the cause from which they originate in payment of the Bank's
overdue claims against the Guarantor under this agreement.

7. NOTICES

All notices and other communication upon either party hereto shall be deemed
duly served on the day they are delivered (in case of a letter) or received (in
the case of telex or cable) if that is a working day in the place of delivery or
receipt or, if not, on the first working day thereafter in such place, provided
that they are addressed as follows:

Guarantor: ___________

Bank: Corner Banca SA- Via Canova 16 - 6900 Lugano - Switzerland

Or at such other address as the respective party may have notified the other in
writing for this purpose.

8. LAW AND JURISDICTION

This Guarantee shall be governed by and constructed in accordance with Greek law
under the jurisdiction of the Court of Piraeus.

Signed by

                    ________________________

<PAGE>

                                    EXIBIT 4

                         Deed of Assignment of Credits

                                       15
<PAGE>

DEED OF ASSIGNMENT OF CREDITS

The undersigned

ADVENTURE TWO S.A.

(hereinafter referred to as the Assignor) hereby irrevocably assigns to Corner
Bank Ltd. (hereinafter referred to as the Bank), by way of guarantee of all the
obligations, direct and indirect, which the Assignor has undertaken or may
undertake towards the Bank, for any reason or cause whatsoever (such as, for
example, advances in current account, discounting of commercial paper,
fidejussions, interest, commissions, purchase and sale of securities, charges,
etc., without exclusion or exception, with express mention that the guarantee
provided for as above shall also be extended to obligations which may already be
otherwise guaranteed), the credits specified apart, according to the separate
lists, together with all the rights which support them and with the relative
accrued and accruing interest.

The Assignor hereby represents that these credits are juridically legitimate and
undertakes every guarantee relative to the amount and to the collectability
thereof.

For the afore-said irrevocable assignment of credits, the Bank shall be entitled
to make claim upon such credits, to collect principal and interest upon
maturity, grant deferments, as well as to proceed with any formality and take
suitable measures to safeguard such credits, without the exercising of such
rights involving any liability whatsoever for the Bank.

The Assignor hereby undertakes to provide the Bank, upon request thereof, with
other guarantees in the event the margin of coverage, at the sole discretion of
the Bank, be insufficient, or if, on account of other reasons, the collection of
the assigned credits should be compromised; should any of these circumstances
arise, the Assignor hereby undertakes to inform the Bank.

The Assignor hereby undertakes to notify the relative debtors, by registered
mail, of the irrevocable assignment of their credits in favour of the Bank, to
provide the Bank with proof of such notification and to pay to the Bank any and
every sum which may be paid to the Assignor against the credits assigned
hereunder.

The Assignor hereby also authorizes the Bank to notify the relative debtors of
the irrevocable assignment of their credits, warning them to pay their debt(s)
solely into the hands of the Bank, and to receive partial or total payments from
the debtors, issuing valid receipt and giving credit thereof to the customer.

The Assignor shall immediately inform the Bank, by registered mail, of any
change of address from the current one, in the absence of which the Bank shall
deem valid and operative all communications and notifications sent to the old
address, even if they fail to arrive.

The Assignor shall bear all the costs arising out of the registration of this
Deed as well as any other accessory or consequent expense.

The Assignor acknowledges that all his relations with the Bank shall be subject
to Swiss law. He furthermore hereby acknowledges that the place of fulfilment,
the jurisdiction for enforcement and bankruptcy (if he his domiciled abroad), as
well as the exclusive jurisdiction for all proceedings shall be the place of
residence of the headquarters, of the branch or of the agency of the Bank
dealing with him, that is to say

Nonetheless he also hereby authorizes the Bank to take legal action before the
court of his domicile or before any other court whatsoever competent by
jurisdiction.

/s/ George D. Gourdomichalis
----------------------------
George D. Gourdomichalis

/s/ Ion G. Varouxakis
----------------------------
Ion G. Varouxakis

<PAGE>

                                    EXIBIT 5

                                 Deed of Pledge

                                       16
<PAGE>

1.    The undersigned

ADVENTURE TWO S.A.

domiciled at

(hereinafter referred to as the "Pledger") hereby pledges, pursuant to articles
884 et seq. of the Swiss Civil Code, in favour of

                                Corner Bank Ltd.

(hereinafter referred to as the "Bank"), as specified in article 2 hereof, as
guarantee of the Bank's credits vis-a-vis himself and vis-a-vis

      (hereinafter referred to as the "Guaranted Debtor") all the assets
      credited at present or in the future to his account(s) opened with the
      Bank and all the accounts which the Bank may open in the name of the
      Pledger in order to secure payment of any and all amounts the Pledger
      and/or the Guaranted Debtor, in whose favour this pledge has been
      constituted, may from time to time owe to the Bank, for whatever reason,
      including any credit the Bank may extend to the Pledger and/or to the
      Guaranted Debtor by means of overdrafts, loans, advances, guarantees,
      suretyships, bills backing or similar instruments, forward foreign
      exchange contracts, even after novation. Further, the Pledger pledges to
      the Bank all his securities of whatever nature, all securities not
      represented by a certificate (especially marketable securities with
      deferred printing of the certificates), domestic and foreign bank notes,
      precious metals, values and accounts of any other nature, as well as
      earnings that have matured or to mature from such instruments and the
      related rights attached (in particular interests, dividends, subscription
      rights, bonuses) issued or to be acquired, in order to guarantee without
      restrictions all the obligations of the Pledger and/or the Guaranted
      Debtor vis-a-vis the Bank.

2.    The aforesaid pledges shall guarantee all the Bank's credits, direct and
      indirect, present and future, vis-a-vis the Pledger and/or the Guaranted
      Debtor on whose behalf the pledge is provided, arising in any way or for
      any reason whatsoever, such as, for example, overdraft facilities,
      discounting of commercial paper, guarantees and surety-ships issued or
      caused to be issued in his own interests or in the interests of third
      parties, purchase and sale of securities, currency exchange operations,
      documentary credits, interest, expenses and commissions etc., with no
      exclusions or exceptions whatsoever, with express agree-ment that the
      guarantee offered by the pledge shall also extend to any commitments that
      may already be otherwise guaranteed. The registered office and the
      branches of the Bank shall form a one and only corporate body; therefore
      pledges provided to the registered office or to a branch shall also
      guarantee credits vis-a-vis the registered office and all the branches.

3.    The Pledger commits himself to handle all tasks concerning the
      administration of the pledged asset(s) and to take all necessary steps to
      preserve and increase its value (as: notices, monitoring of drawings,
      amorti-sations, payment of premiums). The Bank may, not compulsorily, take
      care of these duties at the risk and expenses of the Pledger.

4.    The Bank retains all securities, statements and documents

<PAGE>

      Pledger. The Pledger gives his explicit consent to the Bank to deposit all
      the pledged rights and assets with a third depository without affecting
      the rights of the Bank as lienor. The deposits and sub-deposits shall
      always be made at the risk and expenses of the Pledger.

5.    For the pledge of registered secunties, the Pledger commits to sign every
      declaration or power of attorney allowing the transfer of these securities
      as a guarantee in the company's registers.

6.    The Bank may, without commitment, exercise the rights belonging to the
      Pledge owner against the debtors of the pledged assets and against any
      third party. The Bank may represent the pledged securities at general
      meetings, denounce and collect the credits and securities and, with
      respect to the credits secured by a mortgage, exercise all the rights
      belonging to the mortgagee. The Bank is hereby authorised by the Pledger
      to address, also in the name of the Pledger, to the debtors of the
      pledged securities any notification of the right of pledge that may be
      necessary or which the Bank deems suitable.

7.    The Pledger hereby certifies that he is the sole owner of the pledged
      securities, that these securities are free of any bond, that they are
      freely negotiable and that the transfer of ownership is not subject to a
      consent or any prior authorisation.

8.    If the Bank is of the unquestionable opinion that a reduction of the value
      of the pledged assets has occurred or appears to be impending, or if the
      Bank, for any reason, were to judge that the guarantees arc insufficient
      or not covering its credits to the debtor any longer, the Pledger commits
      himself, at any time and at the discretion of the Bank, either to provide
      new guarantees suitable to the Bank or to repay the amount that the Bank
      may claim.

9.    If the Guaranted Debtor and/or the Pledger fail to fulfil the obligations
      undertaken vis-a-vis the Bank, or, if requested, to make partial or total
      repayment of a debt that has or has not yet matured (the balances of
      current accounts arc considered expired at any time) or to close the
      transaction guaranteed by the pledge, the Bank may, with notice to be sent
      by registered letter to the address of the Pledger and without any other
      formality whatsoever, realize - even by private dealings - all or a part
      of whatsoever has been pledged as specified in article 1 hereof. The
      Pledger hereby undertakes to fulfil without delay, at the Bank's request,
      all the formalities that may be necessary for the transfer of the pledge.

10.   If the Bank considers it preferable to enforce the pledge, it may, at its
      discretion, proceed by way of realisation of the pledge or by way of
      ordinary enforcement thereof.

11.   Upon maturity of the credit, the Bank is not bound to comply solely with
      the pledged rights. The Bank is entitled to take any judicial measure to
      collect its credit, and the Bank shall decide, at its discretion, whether
      to enforce the Pledge or chose a different form of enforcement. The
      amendment or the contingent novation of the agreements, being at the
      origin of the Bank's credit, will not alter nor affect the rights of the
      Bank deriving from this Pledge. These rights remain guaranteed even if the
      Bank agrees to a deferral in the payment, a release of the guarantees, a
      discharge to the guarantors or if the Bank were to come to whatever other
      agreement with its principal debtor.

12.   In case of a plurality of pledges exceeding the guaranteed credit owed to
      the Bank, the Bank is entitled to decide which pledged assets are to be
      collected or realised first to satisfy its claims.

<PAGE>

14.   All expenses incurred now or in the future by the Bank resulting from this
      Deed of Pledge will be borne by the Pledger, including the fees incurred
      by the Bank as a result of judicial or extrajudicial proceedings relating
      to the pledge or in view of the preservation or the realisation of the
      pledged rights. The Pledger irrevocably authorises the Bank to debit him
      with such costs.

15.   In case of bankruptcy, death, edict, inventory, judgement, composition,
      etc., of the debtor or against other joint obligors under the terms of
      the Pledge, the Bank shall not be bound to fulfill the requisite
      formalities to safeguard its credits such as notifications, actions,
      contradictions, etc. The Pledger however, commits himself to provide for
      the safeguard of his own rights and the Bank's rights. The Pledger shall
      in no case avail himself of any claim or any action in the absence of
      measures such as notifications, actions, contradictions, etc.

16.   This Deed of Pledge shall be recognized as equal to assignment pursuant
      to article 901 of the Swiss Civil Code.

17.   The Pledger shall inform the Bank, by registered letter, of every change
      of his address; if he fails to do so all communications and
      notifications sent to the old address, even if he fails to receive them,
      shall be considered valid and binding for him.

18.   The Pledger acknowledges that all his relations with the Bank shall be
      subject to Swiss law. He furthermore hereby acknowledges that the place of
      fulfilment, the jurisdiction for enforcement and bankruptcy (if he is
      domiciled abroad), as well as the exclusive jurisdiction for all
      proceedings shall be the place of residence of the registered office, of
      the branch or of the agency of the Bank which has a relationship with the
      Pledger, that is to say:

      Nonetheless he also hereby authorises the Bank to take legal action before
      the court of his domicile or before any other competent court.

19    Any matter not expressly foreseen by this deed shall be governed by the
      general conditions of the Bank. Each signatory declares receipt of a copy
      of the general conditions and confirms acceptance thereof.

Firma / Signature   /s/ Ion Varouxakis  /s/ George D. Gourdomichalis
                    -------------------------------------------------
<PAGE>

                        REPUBLIC OF THE MARSHALL ISLANDS
                                MARITIME OFFICE

I HEREBY CERTIFY THAT THE WITHIN IS A TRUE COPY OF THE INSTRUMENT RECEIVED FOR
RECORD AND RECORDED IN THIS OFFICE IN BOOK PH15 AT PAGE 332 ON 04 AUGUST 2004 AT
01:31 PM. EET VESSEL NAME FREE DESTINY OFFICIAL NUMBER 2077

                                        GIVEN UNDER MY HAND AND SEAL THIS 04th
                                        DAY OF AUGUST, 2004

                                        /s/ J.E. GIANNOPOULOS
                                        ----------------------------------------
                                        J.E. GIANNOPOULOS
                                        DEPUTY COMMISSIONER OF MARITIME AFFAIRS
                                         OF THE REPUBLIC OF THE MARSHALL ISLANDS

[SEAL]<PAGE>

                                                                    EXHIBIT 10.6

                               WARNING TO PLEDGOR

THIS IS AN IMPORTANT DOCUMENT. YOU SHOULD TAKE INDEPENDENT LEGAL ADVICE BEFORE
SIGNING AND SIGN ONLY IF YOU WANT TO BE LEGALLY BOUND. IF YOU SIGN AND THE
PLEDGEE IS NOT PAID YOU MAY LOSE THE ASSETS PLEDGED. YOUR LIABILITY UNDER THIS
DOCUMENT IS LIMITED TO THE VALUE OF THE ASSETS PLEDGED.

                              DATED 4th AUGUST 2004

                             ADVENTURE HOLDINGS S.A.

                                      -TO-

                                CORNER BANCA S.A.

                                 DEED OF PLEDGE
                                  OF SHARES IN
                               ADVENTURE TWO S.A.

<PAGE>

                                    CONTENTS

<TABLE>
<CAPTION>
                                                               PAGE
                                                               ----
<S>                                                            <C>
1   Definitions and Interpretation..........................      3

2   Assignment and Pledge...................................      6

3   Pledgee's Powers........................................      7

4   Ancillary Provisions....................................      9

5   Receiver................................................     10

6   Power of Attorney.......................................     11

7   Partial invalidity......................................     11

8   Further Assurance.......................................     12

9   Waiver of Rights as Surety..............................     12

10  Miscellaneous...........................................     13

11  Discharge of Security...................................     14

12  Notices.................................................     14

13  Counterparts............................................     14

14  Law and Jurisdiction....................................     14

Appendix A: Letter of Resignation...........................     17

Appendix B: Letter of Authority.............................     18
</TABLE>

<PAGE>

DEED OF PLEDGE

DATED: 4th AUGUST 2004

BY:

(1)   ADVENTURE HOLDINGS S.A., a company incorporated under the laws of the
      Marshall Islands, having its registered office at Ajeltake Road, Ajeltake
      Island, Majuro, Marshall Islands MH96960 ("THE PLEDGOR")

IN FAVOUR OF:

(2)   CORNER BANCA S.A. a company duly incorporated under the laws of
      Switzerland having its registered address at Via Canova 16, 6900 Lugano,
      Switzerland ("THE PLEDGEE").

WHEREAS:-

(A)   The Pledgee has agreed to lend to Adventure Two S.A., a company
      incorporated under to the laws of the Republic of the Marshall Islands
      ("THE BORROWER"), an amount not exceeding Five Million United States
      Dollars (US$5,000,000) ("THE LOAN") on the terms and subject to the
      conditions set out in a loan agreement dated 21st May 2004 made between
      the Borrower (as borrower) and the Pledgee (as lender) ("THE LOAN
      AGREEMENT").

(B)   Pursuant to the Loan Agreement, and as a condition precedent to the
      obligation of the Pledgee to make the Loan available to the Borrower, the
      Borrower has, amongst other things, agreed to procure that all the issued
      share capital of the Borrower be pledged to the Pledgee as security for
      the payment of the Indebtedness.

(C)   At the date of this Deed the Borrower has an authorised share capital of
      500 bearer shares without par value, all of which have been issued and are
      fully paid and all of which are legally and beneficially owned by the
      Pledgor.

THIS DEED WITNESSES as follows:-

1     DEFINITIONS AND INTERPRETATION

      1.1   In this Deed:-

            "PLEDGE DOCUMENTS" means:-

            (a)   all certificates in respect of the Initial Shares;

<PAGE>

            (b)   an undated letter of resignation signed by each of the
                  directors of the Borrower materially in the form set out in
                  Appendix A, together with a letter of authority to complete
                  the same materially in the form set out in Appendix B; and

            (c)   any unissued share or stock certificates of the Borrower.

            "PLEDGED SECURITIES" means:-

            (a)   the Initial Shares;

            (b)   the Further Shares;

            (c)   all dividends, interest or other distributions paid or payable
                  or made on or in respect of the Initial Shares or the Further
                  Shares at any time and from time to time during the Loan
                  Period;

            (d)   all stocks, shares, rights, money or property accruing or
                  offered by way of redemption, bonus, preference, option or
                  otherwise to or in respect of the Initial Shares or the
                  Further Shares at any time and from time to time during the
                  Loan Period; and

            (e)   all allotments, accretions, offers, rights, benefits and other
                  advantages and all other consensual rights accruing, offered
                  or arising in respect of the Initial Shares or the Further
                  Shares at any time and from time to time during the Loan
                  Period.

            "DEFAULT RATE" means interest at the rate calculated in accordance
            with Clause 1 (d) of the Loan Agreement.

            "DOLLARS" and "$" each means available and freely transferable and
            convertible funds in lawful currency of the United States of
            America.

            "ENCUMBRANCE" means a mortgage, charge, assignment, pledge, lien or
            other security interest securing any obligation of any person or any
            other agreement or arrangement having a similar effect.

            "EVENT OF DEFAULT" means any of the events set out in clause 4 of
            the Loan Agreement.

<PAGE>

            "FURTHER SHARES" means any further shares in the Borrower at any
            time and from time to time during the Loan Period issued to the
            Pledgor, whether in addition to or in exchange or substitution for
            or replacement of any of the Initial Shares.

            "INDEBTEDNESS" means the aggregate from time to time of the amount
            of the Loan outstanding; all accrued and unpaid interest on the
            Loan; all other sums of any nature (together with all accrued and
            unpaid interest on any of those sums) payable to the Pledgee under
            the Security Documents; any damages payable as a result of any
            breach by any of the Security Parties of any of the Security
            Documents; and any damages or other sums payable as a result of any
            of the obligations of any of the Security Parties under or pursuant
            to any of the Security Documents being disclaimed by a liquidator or
            any other person.

            "INITIAL SHARES" means the shares in the Borrower owned by the
            Pledgor and referred to in Recital (C).

            "LOAN PERIOD" means the period while any amount due under the Loan
            Agreement is outstanding.

            "SECURITY PARTIES" means the Borrower and any other party to any of
            the Security Documents (other than the Pledgee).

      1.2   Unless otherwise specified in this Deed, or unless the context
            otherwise requires, all words and expressions defined in the Loan
            Agreement shall have the same meaning when used in this Deed.

      1.3   In this Deed:-

            1.3.1 words denoting the plural number include the singular and vice
                  versa;

            1.3.2 words denoting persons include corporations, partnerships,
                  associations of persons (whether incorporated or not) or
                  governmental or quasi-governmental bodies or authorities and
                  vice versa;

            1.3.3 references to Clauses are references to clauses of this Deed;

            1.3.4 references to this Deed include the recitals to this Deed;

<PAGE>

            1.3.5 the headings and contents page(s) are for the purpose of
                  reference only, have no legal or other significance, and shall
                  be ignored in the interpretation of this Deed;

            1.3.6 reference to any document (including, without limitation, to
                  any of the Security Documents) are, unless the context
                  otherwise requires, references to that document as amended,
                  supplemented, novated or replaced from time to time;

            1.3.7 references to statutes or provisions of statutes are
                  references to those statutes, or those provisions, as from
                  time to time amended, replaced or re-enacted;

            1.3.8 references to the Pledgee include its successors, transferees
                  and assignees.

2     ASSIGNMENT AND PLEDGE

      2.1   In order to secure the payment of the Indebtedness and the
            observance and performance by the Pledger of all its obligations
            under or arising out of the Security Documents the Pledgor with full
            title guarantee assigns and pledges to the Pledgee the Pledged
            Securities and all other rights, titles and interests of the Pledgor
            in and to all certificates in respect of the Pledged Securities and
            all voting and other consensual powers pertaining to the Pledged
            Securities.

      2.2   The Pledgor covenants that it is, and will throughout the Loan
            Period be, solely and beneficially entitled to all rights in
            relation to the Pledged Securities, subject only to the rights
            created in favour of the Pledgee by the Security Documents.

      2.3   The Pledgor will procure that (unless the Pledgee shall agree
            otherwise in writing and then only subject to such terms and
            conditions as the Pledgee may impose) the Borrower shall issue no
            further shares or other rights of any nature which would constitute
            Pledged Securities.

      2.4   The Pledgor warrants that it has not disposed of, nor created or
            permitted any Encumbrance or other third party right to arise or
            exist on or over, any of the Pledged Securities and covenants that
            it will not dispose of or deal with nor create or permit any
            Encumbrance or other third party right to arise or exist on or over
            any of the Pledged Securities.

<PAGE>

      2.5   The Pledgor will not exercise any voting or consensual or
            preferential rights attaching to the Pledged Securities in a manner
            which contravenes the provisions of the Security Documents or which
            is otherwise inconsistent with the interests of the Pledgee.

      2.6   The Pledger will duly and punctually observe and perform all
            obligations imposed on it in relation to the Pledged Securities.

      2.7   The Pledgor will forthwith deliver or cause to be delivered to the
            Pledgee the Pledge Documents and will immediately on the appointment
            of any further director of the Borrower (whether by way of addition
            or substitution) cause that director to sign and deliver to the
            Pledgee an undated letter of resignation and a letter of authority
            materially in the forms set out in Appendices A and B.

      2.8   The security constituted by this Deed shall be continuing and shall
            not be satisfied by any intermediate payment or satisfaction until
            the Indebtedness shall have been paid in full and the Pledgee shall
            be under no further actual or contingent liability to any third
            party in relation to any matter referred to in the Security
            Documents. The security constituted by this Deed shall be in
            addition to any other security now or in the future held by the
            Pledgee for or in respect of the Indebtedness, and shall not merge
            with or prejudice or be prejudiced by any such security or any other
            contractual or legal rights of the Pledgee nor be affected by any
            irregularity, defect or informality or by any release, exchange or
            variation of any such security.

3     PLEDGEE'S POWERS

      3.1   If an Event of Default shall occur, and the Pledgee shall demand
            payment of all or any part of the Indebtedness, the security
            constituted by this Deed shall become immediately enforceable and
            the Pledgee shall be entitled to exercise all or any of the rights,
            powers, discretions and remedies vested in the Pledgee by this
            Clause without any requirement for any court order or declaration
            that an Event of Default has occurred. The Pledgee's right to
            exercise those rights, powers, discretions and remedies shall be in
            addition to and without prejudice to all other rights, powers,
            discretions and remedies to which it may be entitled, whether by
            statute or otherwise.

<PAGE>

      3.2   In the circumstances described in Clause 3.1, the Pledgee shall be
            entitled (but not obliged) without notice to the Pledgor to:-

            3.2.1 give notice to the Borrower of the assignment of all voting
                  and other consensual powers contained in Clause 2.1; and/or

            3.2.2 exercise without reference to the Pledgor all rights and
                  powers pertaining to all or any part of the Pledged Securities
                  in such manner as the Pledgee may in its discretion determine;
                  and/or

            3.2.3 complete, enforce and put into effect any undated letter of
                  resignation of any director of the Borrower and appoint new
                  directors and/or officers; and/or

            3.2.4 receive and retain all dividends and other distributions made
                  in respect of all or any part of the Pledged Securities and
                  apply them in or towards satisfaction, or by way of retention
                  on account, of the Indebtedness; and/or

            3.2.5 sell all or any part of the Pledged Securities by public
                  auction or private sale on such terms and conditions
                  (including as to price) as the Pledgee may in its discretion
                  determine (the Pledgee being authorised to purchase any
                  Pledged Securities on its own behalf) and, at the Pledgee's
                  discretion, to apply the proceeds of such sale (after
                  deduction of all expenses incurred by the Pledgee in relation
                  to the sale) towards satisfaction or reduction, or by way of
                  retention on account, of the Indebtedness.

      3.3   Following the occurrence of the circumstances described in Clause
            3.1, the Pledgor shall procure that all dividends and other
            distributions in respect of any of the Pledged Securities shall be
            paid to the Pledgee, and shall procure that all benefits
            (including, without limitation, all allotments, rights and property
            accruing at any time in respect of the Pledged Securities by way of
            redemption, bonus, preference, option or otherwise) shall accrue to
            the Pledgee, the Pledgee being entitled at its discretion to
            appropriate and apply the same towards satisfaction or reduction, or
            by way of retention on account, of the Indebtedness. The Pledgor
            undertakes that if, despite this Deed, it receives any payment or
            other benefit in respect of any of the Pledged Securities following
            the occurrence of the circumstances described in Clause 3.1, it will
            immediately notify the Pledgee, will hold the amount or benefit

<PAGE>

            received on trust for the Pledgee, and will pay that amount or
            transfer that benefit to or to the order of the Pledgee on the
            Pledgee's first written demand.

      3.4   Prior to the occurrence of the circumstances described in Clause
            3.1:-

            3.4.1 the Pledgor shall be entitled to exercise all rights and
                  powers relating to the Pledged Securities for all purposes not
                  inconsistent with the terms of this Deed; and

            3.4.2 the Pledgor shall be entitled to receive and retain all
                  dividends and other distributions in respect of the Pledged
                  Securities; and

            3.4.3 the Pledgee shall not complete or otherwise attempt to enforce
                  any undated letter of resignation of any of the directors [or
                  officers] of the Borrower.

4     ANCILLARY PROVISIONS

      4.1   Any purchaser from the Pledgee of all or any part of the Pledged
            Securities shall take those Pledged Securities free of any claim or
            right of any third party (including, without limitation, any right
            of redemption of the Pledgor which the Pledgor by its execution of
            this Deed expressly waives).

      4.2   The Pledgor will do or permit to be done everything which the
            Pledgee may from time to time require to be done for the purpose of
            enforcing the Pledgee's rights under this Deed, and will allow its
            name to be used as and when required by the Pledgee for that
            purpose.

      4.3   The Pledgor undertakes to reimburse the Pledgee on demand for all
            sums which the Pledgee may from time to time pay or become liable
            for in or about the protection, maintenance or enforcement of the
            rights created in favour of the Pledgee by this Deed or in or about
            the exercise by the Pledgee of any of the powers vested in it under
            or pursuant to this Deed, together in each case with interest at the
            Default Rate from the date when those sums were paid by the Pledgee
            until the date of actual receipt, before or after any relevant
            judgment, and to keep the Pledgee fully and effectually indemnified
            from and against all actions, losses, claims, proceedings, costs,
            demands and liabilities which the Pledgee may suffer or incur under
            or in connection with the Pledged Securities.
<PAGE>

      4.4   No failure to exercise, nor any delay in exercising, on the part of
            the Pledgee, any right or remedy under this Deed shall operate as a
            waiver, nor shall any single or partial exercise of any right or
            remedy prevent any further or other exercise or the exercise of any
            other right or remedy. The rights and remedies provided in this Deed
            are cumulative and not exclusive of any rights or remedies provided
            by law.

      4.5   The Pledgee may at any time and from time to time delegate to any
            person all or any of its rights, powers, discretions and remedies
            pursuant to this Deed on such terms as the Pledgee may consider
            appropriate (including the power to sub-delegate).

      4.6   Neither the Pledgee nor any agent or employee of the Pledgee shall
            be liable for any losses which may be incurred in or about the
            exercise of any of the rights, powers, discretions or remedies of
            the Pledgee under or pursuant to this Deed.

5     RECEIVER

      5.1   At any time after the occurrence and during the continuation of an
            Event of Default the Pledgee may (but shall not be obliged to)
            appoint any person to be receiver and/or manager of the Pledged
            Securities.

      5.2   The appointment of a receiver and/or manager by the Pledgee may be
            made in writing under the hand of any authorised signatory of the
            Pledgee.

      5.3   The Pledgee shall have the power to authorise any joint receiver
            and/or manager to exercise any or all of his powers independently of
            any other joint receiver and/or manager.

      5.4   The Pledgee may at any time and from time to time remove any
            receiver and/or manager from office and appoint a replacement.

      5.5   The Pledgee shall have the power from time to time to fix the
            remuneration of any receiver and/or manager on the basis of charging
            from time to time adopted by him or his firm and any receiver and/or
            manager shall not be limited to any maximum amount or rate specified
            by law.

      5.6   Any receiver and/or manager appointed pursuant to this Clause shall
            be the agent of the Pledgor and the Pledgor shall be solely
            responsible for his acts and defaults and for the payment of his
            remuneration.

<PAGE>

      5.7   Without limitation, any receiver and/or manager shall have power on
            behalf of the Pledgor (and at the Pledgor's expense) to do or omit
            to do anything which the Pledgor could do or omit to do in relation
            to the Pledged Securities and may exercise all or any of the rights,
            powers, discretions and remedies conferred on the Pledgee by the
            Security Documents or at law.

      5.8   No receiver and/or manager shall be liable as mortgagee in
            possession to account or be liable for any loss on realisation of,
            or any default of any nature in connection with, the Pledged
            Securities or the exercise of any of the rights, powers, discretions
            and remedies vested in the receiver and/or manager by virtue of the
            Security Documents or at law.

6     POWER OF ATTORNEY

      6.1   The Pledgor by way of security irrevocably appoints the Pledgee and
            any receiver and/or manager appointed by the Pledgee severally to be
            its attorney (with unlimited power of substitution and delegation)
            with power (in the name of the Pledgor or otherwise) to do all acts
            that the Pledgor could do in relation to the Pledged Securities,
            including, without limitation, to give a good receipt for any
            purchase price.

      6.2   The Pledgee agrees that it will not exercise any of its powers as
            attorney of the Pledgor unless an Event of Default shall have
            occurred, but the exercise of any such powers by the Pledgee shall
            not put any person dealing with the Pledgee on enquiry as to whether
            an Event of Default has occurred and any such person shall not be
            affected by notice that no Event of Default has in fact occurred.

      6.3   The exercise by the Pledgee or by any receiver and/or manager of any
            of their powers as attorney of the Pledgor shall be conclusive
            evidence of their right to do so.

7     PARTIAL INVALIDITY

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

<PAGE>

8     FURTHER ASSURANCE

      The Pledgor agrees that from time to time on the written request of the
      Pledgee it will immediately execute and deliver to the Pledgee all further
      documents which the Pledgee may require for the purpose of obtaining the
      full benefits of this Deed.

9     WAIVER OF RIGHTS AS SURETY

      9.1   The rights of the Pledgee under this Deed, the security constituted
            by this Deed and the warranties, covenants and obligations of the
            Pledgor contained in this Deed shall not in any way be discharged,
            impaired or otherwise affected by:-

            9.1.1 any forbearance (whether as to payment or otherwise) or any
                  time or other indulgence granted to any of the other Security
                  Parties under or in connection with any of the Security
                  Documents;

            9.1.2 any amendment, variation, novation or replacement of any of
                  the other Security Documents;

            9.1.3 any failure of any of the Security Documents to be legal,
                  valid, binding and enforceable in relation to any of the other
                  Security Parties for any reason;

            9.1.4 the winding-up or dissolution of any of the other Security
                  Parties;

            9.1.5 the release (whether in whole or in part) of, or the entering
                  into of any compromise or composition with, any of the other
                  Security Parties; or

            9.1.6 any other act, omission, thing or circumstance which would or
                  might, but for this provision, operate to discharge, impair or
                  otherwise affect the same.

      9.2   Until the Indebtedness has been unconditionally and irrevocably paid
            and discharged in full, the Pledgor shall not by virtue of any
            payment made under this Deed on account of the Indebtedness or by
            virtue of any enforcement by the Pledgee of its rights under, or the
            security constituted by, this Deed or by virtue of

<PAGE>

            any relationship between or transaction involving, the Pledgor and
            any of the other Security Parties:-

            9.2.1 exercise any rights of subrogation in relation to any rights,
                  security or moneys held or received or receivable by the
                  Pledgee or any other person; or

            9.2.2 exercise any right of contribution from any of the other
                  Security Parties under any of the Security Documents; or

            9.2.3 exercise any right of set-off or counterclaim against any of
                  the other Security Parties; or

            9.2.4 receive, claim or have the benefit of any payment,
                  distribution, security or indemnity from any of the other
                  Security Parties; or

            9.2.5 unless so directed by the Pledgee (when the Pledgor will prove
                  in accordance with such directions), claim as a creditor of
                  any of the other Security Parties in competition with the
                  Pledgee

            and the Pledgor shall hold in trust for the Pledgee and forthwith
            pay or transfer (as appropriate) to the Pledgee any such payment
            (including an amount equal to any such set-off), distribution or
            benefit of such security, indemnity or claim in fact received by it.

10    MISCELLANEOUS

      10.1  In the event of there being any conflict between this Deed and the
            Loan Agreement, the Loan Agreement shall prevail.

      10.2  All the covenants and agreements of the Pledgor in this Deed shall
            bind the Pledgor and its successors and permitted assignees and
            shall inure to the benefit of the Pledgee and its successors,
            transferees and assignees.

      10.3  The representations and warranties on the part of the Pledgor
            contained in this Deed shall survive the execution of this Deed.

<PAGE>

      10.4  The rights of the Pledgee under this Deed shall not be affected by
            any change in the constitution of the Pledgor or by the liquidation,
            bankruptcy or insolvency of the Pledgor.

      10.5  No variation or amendment of this Deed shall be valid unless in
            writing and signed on behalf of the Pledgor and the Pledgee.

      10.6  A person who is not a party to this Deed has no right under the
            Contracts (Rights of Third Parties) Act 1999 to enforce or to enjoy
            the benefit of any term of this Deed.

11    DISCHARGE OF SECURITY

      Following the expiry of the Loan Period the Pledgee will, at the cost of
      and on the request of the Pledgor, execute and deliver to the Pledgor a
      discharge of this Deed and redeliver the Pledge Documents to or to the
      order of the Pledgor.

12    NOTICES

      The provisions of clause 15 of the first preferred mortgage over the
      Marshall Islands motor vessel "Free Destiny" to be granted by the Borrower
      in favour of the Pledgee (the "Mortgage") shall (mutatis mutandis) apply
      to this Deed as if it were set out in full with references to this Deed
      substituted for references to the Mortgage and with references to the
      Pledgor substituted for references to the Borrower.

13    COUNTERPARTS

      This Deed may be executed in any number of counterparts, and this has the
      same effect as if the signatures on the counterparts were on a single copy
      of this Deed.

14    LAW AND JURISDICTION

      14.1  This Deed shall in all respects be governed by and interpreted in
            accordance with Swiss law.

<PAGE>

      14.2  For the exclusive benefit of the Pledgee, the Pledgor irrevocably
            agrees that the courts of Switzerland are to have jurisdiction to
            settle any disputes which may arise out of or in connection with
            this Deed and that any proceedings may be brought in those courts.

      14.3  Nothing contained in this Clause shall limit the right of the
            Pledgee to commence any proceedings against the Pledgor in any other
            court of competent jurisdiction nor shall the commencement of any
            proceedings against the Pledgor in one or more jurisdictions
            preclude the commencement of any proceedings in any other
            jurisdiction, whether concurrently or not.

      14.4  The Pledgor irrevocably waives any objection which it may now or in
            the future have to the laying of the venue of any proceedings in any
            court referred to in this Clause and any claim that those
            proceedings have been brought in an inconvenient or inappropriate
            forum, and irrevocably agrees that a judgment in any proceedings
            commenced in any such court shall be conclusive and binding on it
            and may be enforced in the courts of any other jurisdiction.

      14.5  Without prejudice to any other mode of service allowed under any
            relevant law, the Pledgor:

            14.5.1 irrevocably appoints [         ] as its agent for service of
                   process in relation to any proceedings before the Swiss
                   courts; and

            14.5.2 agrees that failure by a process agent to notify the Pledgor
                   of the process will not invalidate the proceedings concerned.

IN WITNESS of which this Deed has been duly executed and delivered the day and
year first before written

SIGNED SEALED and DELIVERED             )
as a DEED                               )
by ADVENTURE HOLDINGS S.A.              )
acting by                               )
GEORGE D. GOURDOMICHALIS                )   /s/ George D. Gourdomichalis
its duly authorised attorney in fact    )   ----------------------------
                                        )
in the presence of:-                    )

<PAGE>

SIGNED SEALED and DELIVERED             )
as a DEED                               )
by CORNER BANCA S.A.                    )   /s/ Gianfederico Guastala
acting by                               )   -----------------------------
                                        )   Gianfederico Guastala
its duly authorised                     )
                                        )
in the presence of:-                    )

<PAGE>

                        APPENDIX A: LETTER OF RESIGNATION

To:   The Secretary
      Adventure Two S.A.
      Trust Company Complex,
      Ajeltake Road
      Ajeltake Island
      Majuro, Marshall Islands MH96960

      and to whomsoever else it may concern

                                                       Date:

Dear Sirs

I,                               , hereby resign as Director/                 of
Adventure Two S.A. ("the Company") and confirm that I have no claim against the
Company, whether for remuneration, loss of office or otherwise.

Yours faithfully

________________________________

Director/

<PAGE>

                         APPENDIX B: LETTER OF AUTHORITY

To:   Corner Banca S.A.
      Via Canova 16,
      6900 Lugano

                                                       Date:

Dear Sirs

ADVENTURE TWO S.A. ("the Borrower")

I, the undersigned, refer to the pledge of shares in the Borrower dated 4th
August 2004 made in your favour by Adventure Holdings S.A. (the "Shares Pledge")
and confirm that you are hereby authorised to complete, by dating the same at
any time after an Event of Default has occurred and you have demanded payment of
all or any part of the indebtedness under a loan agreement dated 21st May 2004
with the Borrowers, the undated letter of resignation as Director/            of
the Borrower executed by me and delivered to you pursuant to Clause 2.7 of the
Shares Pledge.

For the purposes of this letter, all capitalised terms shall have the meanings
ascribed to them in the Shares Pledge.

Yours faithfully,

_________________________________

<PAGE>

NO. OF CERTIFICATE                                                 NO. OF SHARES
        1                                                               62.5

                               ADVENTURE TWO S.A.
    Organized under the Laws of the Marshall Islands pursuant to the Marshall
    Islands Association Law of 1990 by Articles of Incorporation filed in the
   Office of the Registrar of of Companies in Majuro, Marshall Islands on 5th
                                  February 2004
    CAPITAL AUTHORISED FIVE HUNDRED (500) REGISTERED SHARES WITHOUT PAR VALUE

                This is to certify that the Bearer is entitled to

                               SIXTY TWO AND 1/2

  fully paid and non-assessable Shares of the Capital Stock of the above-named
           Corporation transferable by delivery of this certificate.

   In Witness Whereof, the said Corporation has caused this Certificate to be
  signed by its duly authorized officers and its Corporate Seal to be hereunto
                     affixed this 6th day of February 2004.

<Table>
<S>                    <C>                                  <C>                             <C>
/s/ Ion Varouxakis      /s/ Efstathios G. Gourdomichalis      /s/ Sotirios G. Varouxakis     /s/ George D. Gourdomichalis
--------------------------------------------------------      ------------------------------------------------------------
Secretary                                      Treasurer      Vice President                                     President

</Table>
<PAGE>

NO. OF CERTIFICATE                                                 NO. OF SHARES
        2                                                               62.5

                               ADVENTURE TWO S.A.
    Organized under the Laws of the Marshall Islands pursuant to the Marshall
    Islands Association Law of 1990 by Articles of Incorporation filed in the
   Office of the Registrar of of Companies in Majuro, Marshall Islands on 5th
                                  February 2004
    CAPITAL AUTHORISED FIVE HUNDRED (500) REGISTERED SHARES WITHOUT PAR VALUE

                This is to certify that the Bearer is entitled to

                               SIXTY TWO AND 1/2

  fully paid and non-assessable Shares of the Capital Stock of the above-named
           Corporation transferable by delivery of this certificate.

   In Witness Whereof, the said Corporation has caused this Certificate to be
  signed by its duly authorized officers and its Corporate Seal to be hereunto
                     affixed this 6th day of February 2004.

<Table>
<S>                    <C>                                  <C>                             <C>
/s/ Ion Varouxakis      /s/ Efstathios G. Gourdomichalis      /s/ Sotirios G. Varouxakis     /s/ George D. Gourdomichalis
--------------------------------------------------------      ------------------------------------------------------------
Secretary                                      Treasurer      Vice President                                     President

</Table>
<PAGE>

NO. OF CERTIFICATE                                                 NO. OF SHARES
        3                                                               62.5

                               ADVENTURE TWO S.A.
    Organized under the Laws of the Marshall Islands pursuant to the Marshall
    Islands Association Law of 1990 by Articles of Incorporation filed in the
   Office of the Registrar of of Companies in Majuro, Marshall Islands on 5th
                                  February 2004
    CAPITAL AUTHORISED FIVE HUNDRED (500) REGISTERED SHARES WITHOUT PAR VALUE

                This is to certify that the Bearer is entitled to

                               SIXTY TWO AND 1/2

  fully paid and non-assessable Shares of the Capital Stock of the above-named
           Corporation transferable by delivery of this certificate.

   In Witness Whereof, the said Corporation has caused this Certificate to be
  signed by its duly authorized officers and its Corporate Seal to be hereunto
                     affixed this 6th day of February 2004.

<Table>
<S>                    <C>                                  <C>                             <C>
/s/ Ion Varouxakis      /s/ Efstathios G. Gourdomichalis      /s/ Sotirios G. Varouxakis     /s/ George D. Gourdomichalis
--------------------------------------------------------      ------------------------------------------------------------
Secretary                                      Treasurer      Vice President                                     President

</Table>

<PAGE>

NO. OF CERTIFICATE                                                 NO. OF SHARES
        4                                                               62.5

                               ADVENTURE TWO S.A.
    Organized under the Laws of the Marshall Islands pursuant to the Marshall
    Islands Association Law of 1990 by Articles of Incorporation filed in the
   Office of the Registrar of of Companies in Majuro, Marshall Islands on 5th
                                  February 2004
    CAPITAL AUTHORISED FIVE HUNDRED (500) REGISTERED SHARES WITHOUT PAR VALUE

                This is to certify that the Bearer is entitled to

                               SIXTY TWO AND 1/2

  fully paid and non-assessable Shares of the Capital Stock of the above-named
           Corporation transferable by delivery of this certificate.

   In Witness Whereof, the said Corporation has caused this Certificate to be
  signed by its duly authorized officers and its Corporate Seal to be hereunto
                     affixed this 6th day of February 2004.

<Table>
<S>                    <C>                                  <C>                             <C>
/s/ Ion Varouxakis      /s/ Efstathios G. Gourdomichalis      /s/ Sotirios G. Varouxakis     /s/ George D. Gourdomichalis
--------------------------------------------------------      ------------------------------------------------------------
Secretary                                      Treasurer      Vice President                                     President

</Table>

<PAGE>

NO. OF CERTIFICATE                                                 NO. OF SHARES
        5                                                              31.25

                               ADVENTURE TWO S.A.
    Organized under the Laws of the Marshall Islands pursuant to the Marshall
    Islands Association Law of 1990 by Articles of Incorporation filed in the
   Office of the Registrar of of Companies in Majuro, Marshall Islands on 5th
                                  February 2004
    CAPITAL AUTHORISED FIVE HUNDRED (500) REGISTERED SHARES WITHOUT PAR VALUE

                This is to certify that the Bearer is entitled to

                               THIRTY ONE AND 1/4

  fully paid and non-assessable Shares of the Capital Stock of the above-named
           Corporation transferable by delivery of this certificate.

   In Witness Whereof, the said Corporation has caused this Certificate to be
  signed by its duly authorized officers and its Corporate Seal to be hereunto
                     affixed this 6th day of February 2004.

<Table>
<S>                    <C>                                  <C>                             <C>
/s/ Ion Varouxakis      /s/ Efstathios G. Gourdomichalis      /s/ Sotirios G. Varouxakis     /s/ George D. Gourdomichalis
--------------------------------------------------------      ------------------------------------------------------------
Secretary                                      Treasurer      Vice President                                     President

</Table>

<PAGE>

NO. OF CERTIFICATE                                                 NO. OF SHARES
        6                                                              31.25

                               ADVENTURE TWO S.A.
    Organized under the Laws of the Marshall Islands pursuant to the Marshall
    Islands Association Law of 1990 by Articles of Incorporation filed in the
   Office of the Registrar of of Companies in Majuro, Marshall Islands on 5th
                                  February 2004
    CAPITAL AUTHORISED FIVE HUNDRED (500) REGISTERED SHARES WITHOUT PAR VALUE

                This is to certify that the Bearer is entitled to

                               THIRTY ONE AND 1/4

  fully paid and non-assessable Shares of the Capital Stock of the above-named
           Corporation transferable by delivery of this certificate.

   In Witness Whereof, the said Corporation has caused this Certificate to be
  signed by its duly authorized officers and its Corporate Seal to be hereunto
                     affixed this 6th day of February 2004.

<Table>
<S>                    <C>                                  <C>                             <C>
/s/ Ion Varouxakis      /s/ Efstathios G. Gourdomichalis      /s/ Sotirios G. Varouxakis     /s/ George D. Gourdomichalis
--------------------------------------------------------      ------------------------------------------------------------
Secretary                                      Treasurer      Vice President                                     President

</Table>
<PAGE>

NO. OF CERTIFICATE                                                 NO. OF SHARES
        7                                                              31.25

                               ADVENTURE TWO S.A.
    Organized under the Laws of the Marshall Islands pursuant to the Marshall
    Islands Association Law of 1990 by Articles of Incorporation filed in the
   Office of the Registrar of of Companies in Majuro, Marshall Islands on 5th
                                  February 2004
    CAPITAL AUTHORISED FIVE HUNDRED (500) REGISTERED SHARES WITHOUT PAR VALUE

                This is to certify that the Bearer is entitled to

                               THIRTY ONE AND 1/4

  fully paid and non-assessable Shares of the Capital Stock of the above-named
           Corporation transferable by delivery of this certificate.

   In Witness Whereof, the said Corporation has caused this Certificate to be
  signed by its duly authorized officers and its Corporate Seal to be hereunto
                     affixed this 6th day of February 2004.

<Table>
<S>                    <C>                                  <C>                             <C>
/s/ Ion Varouxakis      /s/ Efstathios G. Gourdomichalis      /s/ Sotirios G. Varouxakis     /s/ George D. Gourdomichalis
--------------------------------------------------------      ------------------------------------------------------------
Secretary                                      Treasurer      Vice President                                     President

</Table>

<PAGE>

NO. OF CERTIFICATE                                                 NO. OF SHARES
        8                                                              31.25

                               ADVENTURE TWO S.A.
    Organized under the Laws of the Marshall Islands pursuant to the Marshall
    Islands Association Law of 1990 by Articles of Incorporation filed in the
   Office of the Registrar of of Companies in Majuro, Marshall Islands on 5th
                                  February 2004
    CAPITAL AUTHORISED FIVE HUNDRED (500) REGISTERED SHARES WITHOUT PAR VALUE

                This is to certify that the Bearer is entitled to

                               THIRTY ONE AND 1/4

  fully paid and non-assessable Shares of the Capital Stock of the above-named
           Corporation transferable by delivery of this certificate.

   In Witness Whereof, the said Corporation has caused this Certificate to be
  signed by its duly authorized officers and its Corporate Seal to be hereunto
                     affixed this 6th day of February 2004.

<Table>
<S>                    <C>                                  <C>                             <C>
/s/ Ion Varouxakis      /s/ Efstathios G. Gourdomichalis      /s/ Sotirios G. Varouxakis     /s/ George D. Gourdomichalis
--------------------------------------------------------      ------------------------------------------------------------
Secretary                                      Treasurer      Vice President                                     President

</Table>

<PAGE>

NO. OF CERTIFICATE                                                 NO. OF SHARES
        9                                                              31.25

                               ADVENTURE TWO S.A.
    Organized under the Laws of the Marshall Islands pursuant to the Marshall
    Islands Association Law of 1990 by Articles of Incorporation filed in the
   Office of the Registrar of of Companies in Majuro, Marshall Islands on 5th
                                  February 2004
    CAPITAL AUTHORISED FIVE HUNDRED (500) REGISTERED SHARES WITHOUT PAR VALUE

                This is to certify that the Bearer is entitled to

                               THIRTY ONE AND 1/4

  fully paid and non-assessable Shares of the Capital Stock of the above-named
           Corporation transferable by delivery of this certificate.

   In Witness Whereof, the said Corporation has caused this Certificate to be
  signed by its duly authorized officers and its Corporate Seal to be hereunto
                     affixed this 6th day of February 2004.

<Table>
<S>                    <C>                                  <C>                             <C>
/s/ Ion Varouxakis      /s/ Efstathios G. Gourdomichalis      /s/ Sotirios G. Varouxakis     /s/ George D. Gourdomichalis
--------------------------------------------------------      ------------------------------------------------------------
Secretary                                      Treasurer      Vice President                                     President

</Table>
<PAGE>

NO. OF CERTIFICATE                                               NO. OF SHARES
        10                                                            31.25

                               ADVENTURE TWO S.A.
    Organized under the Laws of the Marshall Islands pursuant to the Marshall
      Islands Association Law of 1990 by Articles of Incorporation filed in
the Office of the Registrar of of Companies in Majuro, Marshall Islands on 5th
                                  February 2004
   CAPITAL AUTHORISED FIVE HUNDRED (500) REGISTERED SHARES WITHOUT PAR VALUE

                This is to certify that the Bearer is entitled to

                               THIRTY ONE AND 1/4

          fully paid and non-assessable Shares of the Capital Stock of
   the above-named Corporation transferable by delivery of this certificate.

     In Witness Whereof, the said Corporation has caused this Certificate to
       be signed by its duly authorized officers and its Corporate Seal to
                              be hereunto affixed
                         this 6th day of February 2004.

<Table>
<S>                    <C>                                  <C>                             <C>
/s/ Ion Varouxakis      /s/ Efstathios G. Gourdomichalis      /s/ Sotirios G. Varouxakis     /s/ George D. Gourdomichalis
--------------------------------------------------------      ------------------------------------------------------------
Secretary                                      Treasurer      Vice President                                     President

</Table>
<PAGE>

No. of Certificate                                               No. of Shares
        11                                                           31.25

                               ADVENTURE TWO S.A.
    Organized under the Laws of the Marshall Islands pursuant to the Marshall
      Islands Association Law of 1990 by Articles of Incorporation filed in
the Office of the Registrar of Companies in Majuro, Marshall Islands on 5th
                                  February 2004
 CAPITAL AUTHORISED FIVE HUNDRED (500) REGISTERED SHARES WITHOUT PAR VALUE

                This is to certify that the Bearer is entitled to

                               THIRTY ONE AND 1/4

          fully paid and non-assessable Shares of the Capital Stock of
   the above-named Corporation transferable by delivery of this certificate.

     In Witness Whereof, the said Corporation has caused this Certificate to
       be signed by its duly authorized officers and its Corporate Seal to
                              be hereunto affixed
                         this 6th day of February 2004.

<Table>
<S>                    <C>                                  <C>                             <C>
/s/ Ion Varouxakis      /s/ Efstathios G. Gourdomichalis      /s/ Sotirios G. Varouxakis     /s/ George D. Gourdomichalis
--------------------------------------------------------      ------------------------------------------------------------
Secretary                                      Treasurer      Vice President                                     President

</Table>

<PAGE>

No. of Certificate                                               No. of Shares
        12                                                           31.25

                               ADVENTURE TWO S.A.
    Organized under the Laws of the Marshall Islands pursuant to the Marshall
      Islands Association Law of 1990 by Articles of Incorporation filed in
the Office of the Registrar of Companies in Majuro, Marshall Islands on 5th
                                  February 2004
CAPITAL AUTHORISED FIVE HUNDRED (500) REGISTERED SHARES WITHOUT PAR VALUE

                This is to certify that the Bearer is entitled to

                               THIRTY ONE AND 1/4

          fully paid and non-assessable Shares of the Capital Stock of
   the above-named Corporation transferable by delivery of this certificate.

     In Witness Whereof, the said Corporation has caused this Certificate to
       be signed by its duly authorized officers and its Corporate Seal to
                              be hereunto affixed
                         this 6th day of February 2004.

<Table>
<S>                    <C>                                  <C>                             <C>
/s/ Ion Varouxakis      /s/ Efstathios G. Gourdomichalis      /s/ Sotirios G. Varouxakis     /s/ George D. Gourdomichalis
--------------------------------------------------------      ------------------------------------------------------------
Secretary                                      Treasurer      Vice President                                     President

</Table>

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00087-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00087-of-00352.parquet"}]]