Document:

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                                                                    EXHIBIT 10.4

            THIS FIRST PREFERRED MORTGAGE is made and given this 20th day of
May, 1997 by Alta Ltd., a company organized and existing under the laws of the
Cayman Islands, having its registered office in Grand Cayman, Cayman Islands,
British West Indies, and qualified as a foreign maritime entity under the laws
of the Republic of Liberia (the "Owner"), as mortgagor, in favor of CHRISTIANIA
BANK OG KREDITKASSE ASA, a banking corporation organized and existing under the
laws of the Kingdom of Norway, acting through its main office in Oslo, Norway
(the "Mortgagee"), as security trustee for the Creditors (as hereinafter
defined).

                                W H E R E A S : -

            A.    The Owner is the sole owner of the whole of the vessel ALTA
(the "Vessel"), Official No. 9320, of 76,992 gross registered tons and 42,305
net registered tons, built in Nagasaki, Japan in 1990, and registered and
documented in the name of the Owner under the laws and flag of the Republic of
Liberia at the Port of Monrovia.

            B.    Pursuant to a loan facility agreement dated May 15, 1997 (the
"Senior Facility Agreement"), made by and among, INTER ALIOS, General Maritime
I, L.P., a limited partnership organized and existing under the laws of the
Cayman Islands (the "Borrower"), as borrower, and the Lenders (as defined
therein) (in such capacity, the "Senior Lenders"), as lenders, and the
Mortgagee, as agent for the Senior Lenders, a copy of which without Schedules is
attached hereto as Exhibit A, the Mortgagee and Union Bank of Norway, a banking
corporation organized and existing under the laws of the Kingdom of Norway, as
initial lenders, in accordance with the terms of the Senior Facility Agreement,
made available to the Owner a loan facility in the principal amount of U.S.
$27,000,000 (the "Senior Loan"), the Senior Loan to be repaid by the Owner in
twenty consecutive quarterly installments, commencing August 20, 1997, with a
final installment due on May 20, 2002, each of the first through the fourth of
such quarterly installments to be in the principal amount of U.S. $700,000, each
of the fifth through the eighth of such quarterly installments to be in the
principal amount of U.S. $800,000, each of the ninth through the twelfth of such
quarterly installments to be in the principal amount of U.S. $900,000, each of
the thirteenth through the sixteenth of such quarterly installments to be in the
principal amount of U.S. $1,000,000, each of the seventeenth through the
nineteenth of such quarterly installments to be in the principal amount of U.S.
$1,100,000 and a final such quarterly installment to be in the principal amount
of U.S. $10,100,000.

            C.    Pursuant to the terms of the Senior Facility Agreement the
Senior Loan shall bear interest at the rate per annum equal to the aggregate of
(i) LIBOR (as defined in the Senior Facility Agreement) and (ii) one and
one-eighth percent (1 1/8%), payable as provided therein; default interest
thereon shall be payable by the Borrower at the rate per annum of one percent
(1%) above the interest rate which would otherwise be applicable (the "Senior
Default Rate").

            D.    Pursuant to an ISDA master agreement dated as of May 14, 1997
(the "ISDA Master Agreement"), the form of which is attached hereto as Exhibit
B, between the Borrower and Christiana Bank og Kreditkasse ASA ("CBK"), CBK
agreed to make available to the Borrower an interest rate swap facility.

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            E.    The Swap Agreement provides that one of the conditions upon
which CBK will make the swap facilities available to the Borrower is that the
Owner shall mortgage the Vessel to CBK to secure the repayment of the Borrower's
obligations under the Swap Agreement and the payment of interest thereon and of
all other sums of money from time to time owing to CBK under the Swap Agreement
up to the amount of United States Dollars (U.S.$   ).

            F.    In accordance with a confirmation letter dated May 15, 1997
(the "Senior Confirmation Letter"), a copy of which is attached hereto as
Exhibit C, made by and between the Borrower and CBK (the "Senior Confirmation"),
CBK agreed to make available to the Borrower an interest rate swap facility (the
"Senior Swap Facility") in respect of the Senior Loan under which CBK has a
maximum potential exposure of United States Dollars (U.S.$ ) (the "Senior
Contingent Sum") upon the terms and conditions contained therein.

            G.    Pursuant to a loan facility agreement dated May 15, 1997 (the
"Junior Facility Agreement" and, together with the Senior Facility Agreement the
"Facility Agreements"), made by and among, INTER ALIOS, the Borrower, as
borrower, and the Lenders (as defined therein) (in such capacity the Junior
Lenders and, together with the Senior Lenders, the "Creditors"), as lenders, a
copy of which without Schedules is attached hereto as Exhibit D, the Mortgagee,
as the initial Junior Lender, in accordance with the terms of the Junior
Facility Agreement, made available to the Borrower a loan facility in the
principal amount of U.S. $3,000,000 (the "Junior Loan"), the Junior Loan to be
repaid by the Owner on May 20, 2002 in one installment to be in the amount
necessary to repay the Junior Loan in full.

            H.    Pursuant to the terms of the Junior Facility Agreement the
Junior Loan shall bear interest from the date hereof until May 20, 1999 at the
rate per annum equal to the aggregate of (i) LIBOR (as defined in the Junior
Facility Agreement) and (ii) three percent (3%) and from May 21, 1999 to May 20,
2002 at a rate of interest in effect pursuant to the provisions of Clause 9 of
the Junior Facility Agreement, payable as provided therein; default interest
thereon shall be payable by the Borrower at the rate per annum of one percent
(1%) above the interest rate which would otherwise be applicable (the "Junior
Default Rate" and, together the Senior Default Rate (the "Default Rates")).

            I.    In accordance with a confirmation letter dated May 15, 1997
(the "Junior Confirmation Letter" and, together with the Senior Confirmation
Letter and the ISDA Master Agreement, the "Swap Agreement"), a copy of which is
attached hereto as Exhibit E, made by and between the Borrower and CBK, CBK
agreed to make available to the Borrower an interest rate swap facility (the
"Junior Swap Facility") in respect of the Junior Loan under which CBK has a
maximum potential exposure of United States Dollars (U.S.$ ) (the "Junior
Contingent Sum") upon the terms and conditions contained therein.

            J.    Pursuant to a trust deed dated May 15, 1997 (the "Trust Deed")
made by and among, INTER ALIOS, the Borrower, as borrower, the Mortgagee, as
security trustee, and the Creditors, the Mortgagee agreed, INTER ALIA, to
receive, hold, administer and enforce this Mortgage on behalf of the Creditors.

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            K.    Pursuant to a guarantee dated May 15, 1997 (the "Guarantee"),
a copy of which is attached hereto as Exhibit F, made by the Owner in favor of
the Mortgagee, as security trustee, the Owner guaranteed the punctual payment
and performance when due of the obligations of the Borrower under the Facility
Agreements and the Swap Agreement.

            L.    It is a condition precedent to the making of the Senior Loan,
the Junior Loan, the Senior Swap Facility and the Junior Swap Facility that the
Owner secure its obligations under the Guarantee by this Mortgage.

            M.    The Owner, in order to secure the repayment of the Outstanding
Indebtedness (as that term is defined in sub-clause 1.1 hereof) and to secure
the performance and observance of and compliance with all the covenants, terms
and conditions in the Guarantee and this Mortgage contained, expressed or
implied to be performed, observed and complied with by and on the part of the
Owner, has duly authorized the execution and delivery of this First Preferred
Mortgage under and pursuant to Chapter 3 of Title 22 of the Liberian Code of
Laws of 1956, as amended.

NOW, THEREFORE, THIS MORTGAGE WITNESSETH:

1.    DEFINITIONS

      In this Mortgage, unless the context otherwise requires:

        1.1   "Outstanding Indebtedness" means all sums of money owing to the
              Creditors by the Owner from time to time under or in connection
              with the Guarantee and this Mortgage;

        1.2   "the Vessel" means the whole of the vessel described in Recital
              (A) hereof and includes all her engines, machinery, boats,
              boilers, masts, rigging, anchors, chains, cables, apparel, tackle,
              outfit, spare gear, fuel, consumable or other stores, belongings,
              freights and appurtenances whether on board or ashore, whether now
              owned or hereafter acquired, and all additions, improvements and
              replacements hereafter made in or to the said Vessel, or any part
              thereof, except such equipment or stores which, when placed aboard
              the Vessel, do not become the property of the Owner and except
              that it is not intended that this Mortgage shall include property
              other than the Vessel and it shall not include property other than
              the Vessel as that term is used in subdivision 2 of Section 106 of
              Chapter 3 of Title 22 of the Liberian Code of Laws of 1956, as
              amended; and

2.      SECURITY

        In consideration of the premises and of other good and valuable
        consideration, the receipt and adequacy whereof are hereby acknowledged,
        and in order to secure the payment of the Outstanding Indebtedness in
        the specific manner set forth in this Mortgage and the Guarantee, the
        Owner has granted, conveyed and mortgaged and does by these presents
        grant, convey and mortgage to and in favor of the Mortgagee, its

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        successors and assigns, the whole of the Vessel TO HAVE AND TO HOLD the
        same unto the Mortgagee, its successors and assigns, forever, upon the
        terms set forth in this Mortgage for the enforcement of the payment of
        the Outstanding Indebtedness and to secure the performance and
        observance of and compliance with the covenants, terms and conditions in
        this Mortgage and the Guarantee contained, PROVIDED, HOWEVER, and the
        terms of this Mortgage are such that, this Mortgage shall be discharged,
        canceled and have no further effect when there shall be no further
        amounts payable to the Mortgagee and the Creditors in respect of the
        Outstanding Indebtedness and the Owner shall have complied with all of
        the covenants, terms and conditions in this Mortgage and the Guarantee
        contained.

3.      DECLARATION OF INDEBTEDNESS

        The Owner hereby covenants and agrees to pay the Outstanding
        Indebtedness to the Creditors or their respective successors and
        assigns.

4.      CONTINUING SECURITY

        It is declared and agreed that the security created by this Mortgage
        shall be held by the Mortgagee (for and on behalf of itself and the
        other Creditors) as a continuing security for the payment of the
        Outstanding Indebtedness and that the security so created shall not be
        satisfied by any intermediate payment or satisfaction of any part of the
        amount hereby secured.

5.      INSURANCE AND MAINTENANCE OF THE VESSEL

        The Owner covenants and agrees, unless the Mortgagee on behalf of the
        Creditors has given its prior written consent to the contrary:

        (i)   to insure and keep the Vessel insured or procure that the
              Vessel is kept insured at no expense to the Mortgagee or the
              Creditors at all times and for as long as the Vessel is
              subject to this Mortgage, against such risks, including, but
              not limited to, Hull and Machinery, Hull Interest, Loss of
              Hire, Freight Interest, Protection & Indemnity (including
              satisfactory (in the sole opinion of the Mortgagee) cover for
              pollution liability) and War Risk insurances, in such
              amounts, on such terms and with such insurers as the
              Mortgagee may reasonably require, and to register and
              maintain the registration of the Mortgagee's interest in all
              insurance policies with such insurers;

        (ii)  to ensure that the insurance value of the Vessel covers the actual
              risks to which the Vessel is from time to time exposed, but not
              less than (i) with respect to Hull & Machinery insurance at least
              eighty percent (80%) of the Fair Market Value of the Vessel and
              (ii) except with respect to P&I and Loss of Hire insurance, the
              higher of the Fair Market Value and one hundred twenty percent
              (120%) of the then outstanding amount of the

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              Outstanding Indebtedness upon such terms and with such deductibles
              as shall from time to time be approved by the Mortgagee;

        (iii) to deliver an annual certificate to the Mortgagee from the
              insurance broker(s) through whom the insurances relevant to the
              Vessel have been placed evidencing that the insurances referred to
              in sub-clause (i) above have been taken out in respect of the
              Vessel and that such insurances are in full force and effect;

        (iv)  at the request of the Mortgagee, to obtain (at the Owner's
              expense) Mortgagee Interest Insurance and, if so requested by the
              Mortgagee, Extended Mortgagee Interest - Additional Perils
              (Pollution Cover) Insurance relevant to the Vessel in the form and
              substance satisfactory to the Mortgagee;

        (v)   to reimburse the Mortgagee, from time to time, for all costs and
              expenses incurred by the Mortgagee in its procurement of a
              Mortgagee's Interest Policy in respect of its interest in the
              Vessel (including Additional Perils (Pollution) coverage);

        (vi)  to keep and to cause to be kept the Vessel in a good and efficient
              state of repair so that the Vessel is classed and maintained in
              the highest class with American Bureau of Shipping or another
              classification society acceptable to the Mortgagee, and to comply
              with the provisions of all laws, regulations and requirements
              (statutory or otherwise) from time to time applicable to vessels
              registered under the flag of the Republic of Liberia, and at all
              times to maintain the approval of the Vessel by all oil company
              majors, 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 and to permit the
              Mortgagee, at the cost of the Mortgagee, by surveyors or other
              persons appointed by it in its behalf to board the Vessel at all
              reasonable times for the purpose of inspecting her condition or
              for the purpose of satisfying itself in regard to proposed or
              executed repairs and to afford all proper facilities for such
              inspections, provided that such inspections will cause no undue
              delay to the Vessel;

        (vii) not to employ the Vessel or suffer her employment in any trade or
              business which is forbidden by the laws of the Republic of Liberia
              or is otherwise illicit or in carrying illicit or prohibited goods
              or in any manner whatsoever which may render her liable to
              condemnation in a Prize Court or to destruction, seizure or
              confiscation of the Vessel and, in the event of hostilities in any
              part of the world (whether war be declared or not), not to employ
              the Vessel or suffer her employment in carrying any contraband
              goods or to enter or trade to any zone which is declared a war

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              zone by any government or by the Vessel's War Risks insurers,
              unless necessary extra War Risks insurance cover has been obtained
              for the Vessel;

       (viii) not to change the registration of the Vessel from the laws and
              flag of the Republic of Liberia without the prior written consent
              of the Mortgagee;

       (ix)   to maintain its qualification in good standing as a foreign
              maritime entity in the Republic of Liberia;

       (x)    not to sell, agree to sell, abandon or otherwise dispose of the
              Vessel or any interest therein or to suffer the disposition of any
              thereof;

       (xi)   to pay to the Mortgagee on demand, all moneys (including
              reasonable fees of counsel) whatsoever which the Mortgagee shall
              or may expend, be put to or become liable for, in or about the
              protection, maintenance or enforcement of the security created by
              this Mortgage or in or about the exercise by the Mortgagee of any
              of the powers vested in it hereunder or under the Trust Deed and
              to pay interest thereon at the Default Rates from the date such
              demand for payment is made;

       (xii)  to immediately notify the Mortgagee of:

              (a)   any accident to the Vessel involving repairs the cost
                    whereof will or is likely to exceed the sum of U.S.
                    $500,000 (or the equivalent in any other currency);

              (b)   any occurrence in consequence whereof the Vessel has become
                    or is likely to become a total loss;

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

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

              (e)   any capture, seizure, arrest, detention or confiscation of
                    the Vessel by any government or by persons acting or
                    purporting to act on behalf of any government;

              (f)   any material interruption in the operation of the Vessel,
                    including, but not limited to an Off-Hire period of five
                    days or more, and the financial implications of such
                    interruption;

       (xiii) not bring the Vessel in any yard for repairs (other than for the
              purpose of ordinary drydockings at regular intervals), the costs
              of which might

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              exceed U.S. $500,000 (or the equivalent thereof in any other
              currency), in addition to normal drydocking expenses, or permit
              any major change or structural alteration to be made to the
              Vessel.

      (xiv)   not to create, incur or permit to be placed or imposed or
              continued upon the Vessel any lien whatsoever other than for
              Master's and crew's wages, salvage compensation and disbursements
              arising by operation of law and the lien of this Mortgage;

      (xv)    to comply with all declaration and reporting requirements imposed
              by the Protection and Indemnity club or insurers including,
              without limitation, the quarterly declarations required by the
              U.S. Oil Pollution Clause 20/2/91, and to insure payment of all
              premiums required to maintain in force the maximum U.S. Oil
              Pollution Cover;

      (xvi)   not in any material way change, amend, negotiate, cancel or
              terminate the Charterparty or the Management Agreement without the
              prior written consent of the Mortgagee;

      (xvii)  to permit a valuation of the Vessel pursuant to the terms of
              Clause 14.1 of the Facility Agreements; and

      (xviii) to place or to cause to be placed and at all times and places to
              retain or to cause to be retained a properly certified copy of
              this Mortgage on board the Vessel with her papers and cause this
              Mortgage to be exhibited to any and all persons having business
              with the Vessel which might give rise to any lien thereon, other
              than liens permitted under the preceding Clause 5(xiv) hereof, and
              to any representative of the Mortgagee on demand; and to place and
              keep or to cause to be placed and kept prominently displayed in
              the chart room and in the Master's cabin of the Vessel a framed
              printed notice in plain type in English of such size that the
              paragraph of reading matter shall cover a space not less than six
              (6) inches wide by nine (9) inches high, reading as follows:

              "NOTICE OF MORTGAGE

              This Vessel is covered by a First Preferred Mortgage to
              Christiania Bank og Kreditkasse ASA, as security trustee, under
              the authority of Title 22 of the Liberian Code of Laws of 1956, as
              amended. Under the terms of the said First Preferred Mortgage,
              neither the Owner nor any charterer nor the Master nor any officer
              or agent of this Vessel nor any other person has any right, power
              or authority to create, incur or permit to be imposed upon this
              Vessel any lien whatsoever other than for crew's wages or
              salvage."

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6.      AUTHORITY OF THE MORTGAGEE

        Without prejudice to any other rights of the Mortgagee hereunder:

        (i)   in the event that the provisions of Clause 5(i) hereof or any of
        them shall not be complied with, the Mortgagee and/or the Creditors
        shall be at liberty to effect and thereafter to replace, maintain and
        renew all such insurances relating to the Vessel as in their sole
        discretion they may think fit;

        (ii)  in the event that the provisions of Clause 5(vi) hereof shall not
        be complied with, the Mortgagee and the Creditors shall be at liberty to
        arrange for the carrying out of such repairs and/or surveys as they deem
        expedient or necessary; and

        (iii) any and all expenses incurred by the Mortgagee (including
        reasonable fees of counsel) in respect of their performance under the
        foregoing sub-clauses (i) and (ii) shall be paid by the Owner on demand,
        with interest thereon at the Default Rate from the date when such
        expenses were paid by the Mortgagee and/or the Creditors, as the case
        may be.

7.      EVENTS OF DEFAULT

        (A) Each of the following events shall constitute an Event of Default:

        (i)  an Event of Default (as defined in the Senior Facility Agreement)
        stipulated in Clause 16 of the Senior Facility Agreement shall occur and
        be continuing;

        (ii) an Event of Default (as defined in the Junior Facility Agreement)
        stipulated in Clause 16 of the Junior Facility Agreement shall occur and
        be continuing;

        (iii) failure to pay when due the Outstanding Indebtedness or any
        portion thereof; and

        (iv) a default by the Owner in the due and punctual observance of any of
        the covenants in this Mortgage and such default if capable of remedy is
        not remedied within ten (10) business days after notice from the
        Mortgagee to the Owner requesting action to remedy such default. The
        remedy period of ten (10) business days shall not apply to the Owner's
        obligations according to Clause 5(i), (ii), (iv) and (xv) hereof.

        (B) If any Event of Default shall happen, the Mortgage, shall be
        entitled:

        (i) to demand payment by written notice to the Owner of the Outstanding
        Indebtedness, whereupon such payment by the Owner to the Mortgagee, on
        behalf of the Creditors, shall be immediately due and payable, anything
        contained in the Guarantee, the Facility Agreements, the Swap Agreement
        or this Mortgage to the contrary notwithstanding and without prejudice
        to any other rights and remedies of the Mortgagee or the Creditors under
        the Guarantee, the Facility Agreements, the Swap Agreement or this
        Mortgage;

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        (ii) to exercise all the rights and remedies in foreclosure and
        otherwise given to mortgagees by any applicable law, including those
        under the provisions of Chapter 3 of Title 22 of the Liberian Code of
        Laws of 1956, as amended;

        (iii) to take possession of the Vessel, wherever the same may be,
        without prior demand and without legal process (when permissible under
        applicable law);

        (iv) to require that all policies, contracts, and other records in
        respect of the insurances relating to the Vessel (including details of
        and correspondence concerning outstanding claims) be forthwith delivered
        to such adjusters, brokers or other insurers as the Mortgagee may
        nominate;

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

        (vi) to discharge, compound, release or compromise claims against the
        Owner 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;

        (vii) to take appropriate judicial proceedings for the foreclosure of
        this Mortgage and/or for the enforcement of the Mortgagee's rights under
        the Guarantee, the Facility Agreements, the Swap Agreement, this
        Mortgage or otherwise; and to recover judgment for any amount due by the
        Owner under this Mortgage; and

        (viii) to sell the Vessel or any interest therein with or without the
        benefit of any charterparty by public auction at home or abroad, or by
        private sale upon at least ten (10) business days prior written notice
        to the Owner and upon such terms as the Mortgagee in its absolute
        discretion may determine, with power to postpone any such sale and in
        the absence of negligence or willful neglect without being answerable
        for any loss occasioned by such sale or resulting from postponement
        thereof.

8.      APPLICATION OF PROCEEDS

        The proceeds of any sale made either under the power of sale hereby
        granted to the Mortgagee or the Creditors or under a judgment or decree
        in any judicial proceedings for the foreclosure of this Mortgage or for
        the enforcement of any remedy granted to the Mortgagee or the Creditors
        hereunder, or any net earnings arising from the management, charter or
        other use of the Vessel by the Mortgagee or the Creditors under any of
        the powers herein contained or by law provided, or the proceeds of any
        and all insurances relating to the Vessel and any claims for damages on
        account of the Vessel

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        or the Owner of any nature whatsoever or any requisition compensation,
        shall be applied as follows:

        FIRST: To the payment of all costs and expenses (together with interest
        thereon at the Default Rates) of the Mortgagee and the Creditors, as
        applicable, including the reasonable compensation of its agents and
        attorneys, by reason of any sale, retaking, management or operation of
        the Vessel and all other sums payable to the Mortgagee and the Creditors
        hereunder by reason of any expenses or liabilities incurred or advances
        made by it for the protection, maintenance and enforcement of the
        security or of any of its rights hereunder or in the pursuit of any
        remedy hereby conferred; and at the option of the Mortgagee and the
        Creditors to the payment of all taxes, assessments or liens claiming
        priority over the lien of this Mortgage;

        SECOND:  To the payment in full of the Outstanding Indebtedness if
        then due and payable; and

        THIRD:  Any surplus thereafter remaining, to the Owner or the
        Owner's successors in interest and assigns or to whomsoever may be
        entitled thereto.

        In the event that the proceeds are insufficient to pay the amounts
        specified in paragraphs "First" and "Second" above, the Mortgagee and
        the Creditors shall be entitled to collect the balance from the Owner or
        any other person liable therefor.

9.      DELEGATION

        The Mortgagee and the Creditors shall be entitled at any time and as
        often as may be expedient to delegate all or any of the powers and
        discretions vested in them by this Mortgage (including the power vested
        in the Mortgagee by virtue of Clause 10 hereof) in such manner and upon
        such terms and to such persons as the Mortgagee and the Creditors in
        their absolute discretion may think fit.

10.     POWER OF ATTORNEY

        The Owner hereby irrevocably appoints the Mortgagee as its
        attorney-in-fact to do in its name or in the name of the Owner all acts
        which the Owner, or its successors or assigns, could do in relation to
        the Vessel, including without limitation, to execute and deliver
        charters and a bill of sale with respect to the Vessel,

        PROVIDED, HOWEVER, that such power shall not be exercisable by or on
        behalf of the Mortgagee unless and until any Event of Default stipulated
        in Clause 7(A) hereof shall occur.

11.     RECORDATION

        For the purpose of recording this First Preferred Mortgage as required
        by Chapter 3 of Title 22 of the Liberian Code of Laws of 1956, as
        amended, the total amount is U.S.

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        $_____________, of which U.S. $27,000,000 represents the Senior Loan, of
        which U.S. $3,000,000 represents the Junior Loan, of which U.S.
        $_______________ represents the Senior Contingent Sum and of which U.S.
        $______________ represents the Junior Contingent Sum, and interest and
        performance of mortgage covenants. The date of maturity with respect to
        the total amount of the Mortgage is on demand. The discharge amount is
        the same as the total amount. For property other than the Vessel if any
        should be determined to be covered by this Mortgage, the discharge
        amount is 0.01% of the total amount.

12.     NOTICES

        Notices and other communications required or permitted by this Mortgage
        shall, until further notice in writing of a change therein, be in
        writing delivered personally or mailed (airmailed, if international) by
        registered or certified mail, with proof of delivery requested, telexed
        or telefaxed as follows:

        If to the Owner:  Alta Ltd.
                                  c/o General Maritime I Corporation
                                  730 Fifth Avenue
                                  New York, N.Y.  10019

                                  Attn.: General Partner
                                  Telefax No.:  +(212) 698-9628

        If to the Mortgagee:      Christiania Bank of Kreditkasse ASA
                                  P.O. Box 1166 Sentrum
                                  0107 Oslo 1,
                                     Norway

                                  Attn: Shipping/Offshore/Aviation
                                  Telefax No.:  +011-47-22-48-66-68

        Every notice or demand shall, except so far as otherwise expressly
        provided by this Mortgage, be deemed to have been received, in the case
        of letter, on the date of delivery to the recipient thereof, and in the
        case of a telefax transmission, on the date and at the time of dispatch
        thereof (provided that if the date of dispatch is not a business day in
        the locality of the party to whom such notice or demand is sent it shall
        be deemed to have been received on the next following business day in
        such locality).

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            IN WITNESS WHEREOF, the Owner has executed this Mortgage by its duly
        authorized representative on the day and year first above written.

                              Signed, sealed and delivered as a Deed by Alta
                              Ltd.

                              By:_______________________________
                                  Name:  Peter C. Georgiopoulos
                                  Title: Director

                              By:_______________________________
                                    Name:  Mary Georgiopoulos
                                    Title: Assistant Secretary

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                           ACKNOWLEDGMENT OF MORTGAGE

STATE OF NEW YORK )
       : ss.
COUNTY OF NEW YORK)

            On this 20th day of May, 1997 before me personally appeared Peter C.
Georgiopoulos, to me known who being by me duly sworn did depose and say that he
resides at                        , that he is the Director of Alta Ltd., the
company 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 Company.

                                          Notary Public<PAGE>

                            SENIOR FACILITY AGREEMENT

                                     between

                                    NORD LTD.
                                   as borrower

                       CHRISTIANIA BANK OG KREDITKASSE ASA
                          as agent and security trustee

                                       and

                       CHRISTIANIA BANK OG KREDITKASSE ASA
                                    as lender

                                 Clifford Chance
                                     London

<PAGE>

                                    CONTENTS

<TABLE>
<CAPTION>
CLAUSE                                                                    PAGE

<S>                                                                       <C>
1.  Interpretation.........................................................  1
2.  The Facility...........................................................  8
3.  Purpose................................................................  8
4.  Conditions Precedent...................................................  8
5.  Nature of Banks' Rights and Obligations................................  8
6.  Availability...........................................................  9
7.  Interest Periods.......................................................  9
8.  Interest............................................................... 10
9.  Repayment and Prepayment............................................... 11
10. Taxes and Tax Receipts................................................. 13
11. Changes in Circumstances............................................... 14
12. Representations........................................................ 16
13. Information Covenants.................................................. 18
14. Financial Condition.................................................... 19
15. General Covenants...................................................... 20
16. Events of Default...................................................... 22
17. Default Interest and Indemnity......................................... 25
18. Currency of Account and Payment........................................ 27
19. Payments............................................................... 27
20. Set-Off................................................................ 28
21. Sharing................................................................ 28
22. Fees................................................................... 29
23. Costs and Expenses..................................................... 29
24. The Agent and the Banks................................................ 30
25. Benefit of Agreement................................................... 34
26. Assignments and Transfers.............................................. 34
27. Calculations and Evidence of Debt...................................... 35
28. Remedies and Waivers................................................... 36
29. Partial Invalidity..................................................... 36
30. Notices................................................................ 37
31. Law.................................................................... 37
32. Jurisdiction........................................................... 38

The First Schedule
Condition Precedent Documents.............................................. 39

The Second Schedule
Notice of Drawdown......................................................... 42

 The Third Schedule
Form of Transfer Certificate............................................... 43
</TABLE>

<PAGE>

THIS AGREEMENT is made on 6 August 1997

BETWEEN:

(1)    NORD LTD. (the "BORROWER");

(2)    CHRISTIANIA BANK OG KREDITKASSE ASA (in its capacity as agent, the
       "AGENT");

(3)    CHRISTIANIA BANK OG KREDITKASSE ASA (in its capacity as the security
       trustee, the "SECURITY TRUSTEE"); and

(4)    CHRISTIANIA BANK OG KREDITKASSE ASA (the "INITIAL BANK")

                                    RECITALS

A.     The Initial Bank has agreed to grant to the Borrower, upon the terms and
       subject to the conditions herein set forth, a loan facility in the amount
       of up to $21,000,000.

B.     By a further Loan Agreement (the "JUNIOR FACILITY AGREEMENT") of even
       date herewith and made between the Borrower, the Agent, the Security
       Trustee and Christiania Bank og Kreditkasse ASA as Initial Bank, the
       Initial Bank has agreed to lend to the Borrower a further sum of up to
       $2,250,000 secured by second ranking security over the assets mortgaged
       or charged by the Borrower to the Security Trustee pursuant to the
       Facility Documents defined therein.

NOW IT IS HEREBY AGREED  as follows:

1.     INTERPRETATION

1.1    In this Agreement:

        "ADMINISTRATIVE GENERAL PARTNER" means GMC Administration Ltd., a
        company duly incorporated under the laws of Cayman Islands;

        "ADVANCE" means, save as otherwise provided herein, the advance made or
        to be made by the Initial Bank hereunder;

        "ASSIGNMENT OF ACCOUNTS" means the assignment of the Borrower's bank
        accounts to be executed by the Borrower in favour of the Security
        Trustee pursuant to paragraph 3, of Part 2 of the First Schedule;

        "ASSIGNMENT OF EARNINGS AND INSURANCES" means an assignment of earnings
        and insurances to be entered into by the Borrower in favour of the
        Security Trustee pursuant to paragraph 2, Part 2 of the First Schedule;

        "BANKS" means the Initial Bank and any Transferees of the Initial Bank
        (and any subsequent Transferees) and "BANK" means each of the Banks;

<PAGE>

        "BASLE PAPER" means the paper entitled "International Convergence of
        Capital Measurement and Capital Standards" dated July 1988 and prepared
        by the Basle Committee on Banking Regulations and Supervision, as
        amended in November 1991;

        "CAPITAL ADEQUACY REQUIREMENT" means a request or requirement relating
        to the maintenance of capital, including one which makes any change to,
        or is based on any alteration in, the interpretation of the Basle Paper
        or which increases the amounts of capital required thereunder, other
        than a request or requirement made by way of implementation of the Basle
        Paper in the manner in which it is being implemented at the date hereof;

        "CHARTERS" mean each of the Initial Charter and the Subsequent Charter
        and "Charter" means each of them;

        "CHARTERERS" means each of the Initial Charterer and the Subsequent
        Charterer and "CHARTERER" means each of them;

        "DRAWDOWN DATE" means the date on which the Advance is made to the
        Borrower hereunder;

        "EARNINGS ACCOUNT" has the meaning ascribed to it in the Assignment of
        Earnings and Insurances;

        "EVENT OF DEFAULT" means any of those events specified in Clause 16.1
        (EVENTS OF DEFAULT);

        "FACILITY" means the dollar loan facility granted to the Borrower in
        this Agreement;

        "FACILITY AMOUNT" means an amount of up to US$21,000,000 to be advanced
        by the Initial Bank to the Borrower;

        "FACILITY OFFICE" means in relation to a Bank, the Agent or the Security
        Trustee the office identified with the signature below (or in the case
        of a Transferee, at the end of the Transfer Certificate to which it is a
        party as Transferee) or such other office as it may from time to time
        select;

        "FAIR MARKET VALUE" means, in relation to the Vessel at any time, the
        sale value of the Vessel in dollars determined on the basis of a sale
        (for cash and prompt delivery) by a willing seller to a willing buyer,
        free of charter and encumbrances and at arm's length on normal
        commercial terms;

        "FINAL REPAYMENT DATE" means the date which falls 60 months after the
        Drawdown Date;

        "FACILITY DOCUMENTS" means this Agreement, the Interest Rate Swap
        Agreement, the Trust Deed, the Mortgage, the Assignment of Earnings and
        Insurances, the Priority Agreement and the Assignment of Accounts and
        any other document agreed between the Agent and the Borrower to be a
        Facility Document and "FACILITY DOCUMENT" means each of them;

<PAGE>

        "GENERAL PARTNERS" means the Managing General Partner and the
        Administrative General Partner and "GENERAL PARTNER" means each of them;

        "INITIAL CHARTER" means the time charter party (as from time to time
        amended or novated) dated 31 January 1997 whereby the Initial Charterer
        has agreed to charter the Vessel from the Borrower for a period of
        approximately fifteen months from the Drawdown Date;

        "INITIAL CHARTERER" means OMI Petrolink Corp. , a coporation duly
        incorporated under the laws of the State of Delaware, U.S.A.;

        "INSTRUCTING GROUP" means a Bank or group of Banks to whom in aggregate
        more than fifty per cent of the Loan is (or, immediately prior to its
        repayment, was then) owed;

        "INTEREST RATE SWAP AGREEMENT" means the International Swap Dealers
        Association, Inc. Master Agreement together with a confirmation letter
        both dated on or about the date hereof entered into by the Borrower and
        the Initial Bank (as from time to time amended, supplemented or extended
        by the parties thereunder) pursuant to which the Borrower will hedge all
        or part of its interest costs under this Agreement;

        "INTEREST PERIOD" means any of those periods mentioned in Clause 7.2
        (DURATION OF INTEREST PERIODS);

        "LIBERIA" means the Republic of Liberia;

        "LIBOR" means, in relation to any period for which an interest rate is
        to be determined hereunder, the rate per annum determined by the Agent
        to be equal to the LIBOR fixing on Telerate page 3740 for deposits in
        dollars for a period corresponding to that period at 11.00 a.m. on the
        Quotation Date for that period Provided that if there are no such rates
        so appearing on such page at such time it means the rate per annum
        determined by the Agent to be equal to the arithmetic mean (rounded
        upwards, if not already such a multiple to the nearest whole multiple of
        one-sixteenth of one per cent.) of the respective rates (as notified to
        the Agent) at which the Reference Banks were offering to prime banks in
        the London Interbank Market deposits in dollars for a period
        corresponding to such period at such time;

        "LOAN" means the aggregate principal amount for the time being
        outstanding hereunder;

        "MANAGEMENT AGREEMENT" means the agreement (as from time to time amended
        or novated) to be entered or entered into between the Borrower and
        Universe Tankships Bermuda Ltd. relating to the management of the Vessel
        pursuant to paragraph 12, Part 1, of the First Schedule;

        "MANAGING GENERAL PARTNER" means General Maritime II Corporation, a
        corporation duly incorporated under the laws of the State of Delaware,
        U.S.A;

        "MARGIN" means one and one-eighth per cent. (1c%) per annum;

        "MEMORANDUM OF AGREEMENT" means the agreement (as from time to time
        amended or

<PAGE>

        novated) for the purchase and sale of the Vessel dated 29 April 1997 and
        made between the Borrower and the Seller;

        "MORTGAGE" means a first preferred Liberian ship mortgage over the
        Vessel to be granted by the Borrower to the Initial Bank pursuant to
        paragraph 1, Part 2 of the First Schedule;

        "NOTICE OF DRAWDOWN" means a notice in the form or substantially the
        form of that set out in the Second Schedule;

        "PERMITTED LIENS" has the meaning ascribed to it in the Assignment of
        Earnings and Insurances;

        "PRIORITY AGREEMENT" means the agreement between the Agent, the Banks,
        the Borrower and the Agent and the lenders under the Junior Facility
        Agreement regulating the priorities and the rights of enforcement of
        security between the Banks and the lenders under the Junior Facility
        Agreement pursuant to paragraph 8, Part 2 of the First Schedule;

        "QUOTATION DATE" in relation to any period for which an interest rate is
        to be determined hereunder means the day on which quotations would
        ordinarily be given by prime banks in the London Interbank Market for
        dollar deposits for delivery on the first day of that period Provided
        that if, for any such period, quotations would ordinarily be given on
        more than one date, the Quotation Date for that period shall be the last
        of those dates;

        "REFERENCE BANK" means the principal Oslo office of Christiania Bank og
        Kreditkasse ASA and such other banks as may from time to time be agreed
        between the Borrower and the Agent;

        "REPAYMENT DATES" means the days which fall 3, 6, 9, 12, 15, 18, 21, 24,
        27, 30, 33, 36, 39, 42, 45, 48, 51, 54, 57 and 60 months after the
        Drawdown Date;

        "RETENTION ACCOUNT" has the meaning ascribed to it in the Assignment of
        Earnings and Insurances;

        "SELLER" means Fjord President Company of Monrovia, Liberia;

        "SHAREHOLDER" means General Maritime II, L.P., the sole shareholder of
        the Borrower;

        "SUBSEQUENT CHARTER" means the time charter (as from time to time
        amended or novated) dated 18 April 1997 whereby the Subsequent Charterer
        has agreed to charter the Vessel from the Borrower for a minimum of
        forty-eight months immediately upon the termination of the Initial
        Charter;

        "SUBSEQUENT CHARTERER" means Stena Bulk AB of Gothenburg, Sweden;

        "TERMINATION DATE" means the earlier of 30 August 1997 and the date on
        which the Facility Amount has been reduced to zero;

        "TRANSFER CERTIFICATE" means a certificate in the form set out in the
        Third Schedule (or such

<PAGE>

        other form as may be agreed between the relevant Bank, the proposed
        Transferee, the Agent and the Borrower pursuant to Clause 26.2
        (ASSIGNMENTS AND TRANSFERS BY BANKS)) signed by a Bank and a Transferee
        whereby:

              (i)    such Bank seeks to procure the transfer to such Transferee
                     of all or a part of such Bank's rights and obligations
                     hereunder upon and subject to the terms and conditions set
                     out in Clause 26.2 (ASSIGNMENTS AND TRANSFERS BY BANKS);
                     and

              (ii)   such Transferee undertakes to perform the obligations it
                     will assume as a result of delivery of such certificate to
                     the Borrower as is contemplated in Clause 26.4 (TRANSFERS
                     BY BANKS)

        "TRANSFER DATE" in relation to any Transfer Certificate means the date
        for the making of the transfer as specified in the schedule to such
        Transfer Certificate;

        "TRANSFEREE" means a bank or other financial institution to which a Bank
        seeks to transfer all or part of such Bank's rights and obligations
        hereunder;

        "TRUST DEED" means a security trust deed of the date hereof entered into
        between the Security Trustee, the Agent, the Borrower and the Banks and
        the agent and lenders under the Junior Facility Agreement pursuant to
        paragraph 4, Part 2 of the First Schedule;

        "VESSEL" means the vessel known as m/t "NORD-JAHRE PRESIDENT" (to be
        renamed "STENA COMMANDER") more particularly described in the Mortgage.

1.2     Any reference in this Agreement to:

        the Agent, the Security Trustee, or the Banks shall be construed so as
        to include their respective successors, Transferees and permitted
        assigns in accordance with their respective interests;

        a "BUSINESS DAY" shall be construed as a reference to a day (other than
        a Saturday or Sunday) on which banks are generally open for business in
        Oslo, London and New York City;

        a "CHARTER" shall be construed as a reference to any agreement
        (including the Charters) pursuant to which the Vessel is, or will be,
        employed;

        a "CLAUSE" shall, subject to any contrary indication, be construed as a
        reference to a clause hereof;

        an "ENCUMBRANCE" shall be construed as a reference to a mortgage,
        charge, pledge, lien or other encumbrance securing any obligation of any
        person or any other type of preferential arrangement (including, without
        limitation, title transfer and retention arrangements) having a similar
        effect;

        the "EQUIVALENT" in one currency (in this paragraph the "FIRST
        CURRENCY") of an amount denominated in another currency (in this
        paragraph the "SECOND CURRENCY") on any date

<PAGE>

        shall, save as otherwise provided, be construed as a reference to the
        amount of the first currency which could be purchased with that amount
        of the second currency at the spot rate of exchange quoted by the Agent
        at or about 11.00 a.m. on such date for the purchase of the first
        currency with the second currency for delivery on the second business
        day thereafter;

        a "GUARANTEE" includes any guarantee, indemnity or other obligation to
        pay, purchase, provide funds for the payment of or indemnify against the
        consequences of default in the payment of indebtedness of any other
        person and any encumbrance which secures the payment of any indebtedness
        of any other person;

        a "HOLDING COMPANY" of a company or corporation shall be construed as a
        reference to any company or corporation of which the first-mentioned
        company or corporation is a subsidiary;

        "INDEBTEDNESS" shall be construed so as to include any obligation
        (whether incurred as principal or as surety) for the payment or
        repayment of money, whether present or future, actual or contingent;

        a "MONTH" is a reference to a period starting on one day in a calendar
        month and ending on the numerically corresponding day in the next
        calendar month save that, where any such period would otherwise end on a
        day which is not a business day, it shall end on the next business day,
        unless that day falls in the calendar month succeeding that in which it
        would otherwise have ended, in which case it shall end on the preceding
        business day Provided that, if a period starts on the last business day
        in a calendar month or if there is no numerically corresponding day in
        the month in which that period ends, that period shall end on the last
        business day in that later month (and references to "MONTHS" shall be
        construed accordingly);

        a "PERSON" shall be construed as a reference to any person, firm,
        company, corporation, government, state or agency of a state or any
        association or partnership (whether or not having separate legal
        personality) of two or more of the foregoing;

        a "SCHEDULE" shall, subject to any contrary indication, be construed as
        a reference to a schedule hereto;

        a "SUBSIDIARY" of a company or corporation shall be construed as a
        reference to any company or corporation:

              (i)    which is controlled, directly or indirectly, by the
                     first-mentioned company or corporation;

              (ii)   more than half the issued share capital of which is
                     beneficially owned, directly or indirectly, by the
                     first-mentioned company or corporation; or

              (iii)  which is a subsidiary of another subsidiary of the
                     first-mentioned company or corporation

        and, for these purposes, a company or corporation shall be treated as
        being controlled by another if that other company or corporation is able
        to direct its affairs and/or to control the composition of its board of
        directors or equivalent body;

<PAGE>

        "TAX" shall be construed so as to include any present or future tax,
        levy, impost, duty or other charge of a similar nature (including,
        without limitation, any penalty or interest payable in connection with
        any failure to pay or any delay in paying any of the same);

        "TOTAL LOSS" includes any actual, constructive, arranged, agreed or
        compromised total loss, any requisitioning for title and the capture,
        seizure, arrest, detention, or confiscation of the Vessel by any
        government, or by persons purporting to act on behalf of any government,
        unless the Vessel be released and restored to the Owner from such
        capture, seizure, detention or confiscation within one month after the
        date thereof; and

        the "WINDING-UP" or "DISSOLUTION" of a company or limited partnership
        shall be construed so as to include any equivalent or analogous
        proceedings under the law of the jurisdiction in which such company or
        limited partnership is incorporated or established or any jurisdiction
        in which such company or limited partnership carries on business.

1.3     "$" and "DOLLARS" denote lawful currency of the United States of
        America.

1.4     Save where the contrary is indicated, any reference in this Agreement
        to:

              (i)    this Agreement or any other agreement or document shall be
                     construed as a reference to this Agreement or, as the case
                     may be, such other agreement or document as the same may
                     have been, or may from time to time be, amended, varied or
                     supplemented;

              (ii)   a statute shall be construed as a reference to such statute
                     as the same may have been, or may from time to time be,
                     amended or re-enacted; and

              (iii)  a time of day shall be construed as a reference to London
                     time.

1.5     Clause headings are for ease of reference only.

1.6     For the purposes of the Facility Documents, a total loss of the Vessel
        shall be deemed to have occurred:

              (i)    if it consists of an actual total loss, at noon Greenwich
                     Mean Time on the actual date of loss or, if that is not
                     known, on the date on which she was last heard of;

              (ii)   if it consists of a requisitioning for title, at noon
                     Greenwich Mean Time on the date on which the same is
                     expressed to take effect by the person making the same; and

              (iii)  if it consists of a constructive or compromised or arranged
                     or agreed total loss, at noon Greenwich Mean Time on the
                     date at which notice of her abandonment is given to her
                     insurers for the time being or (if her insurers for the
                     time being do not admit the claim for total loss) at the
                     time on which a total loss is subsequently adjudged to have
                     occurred by a competent court or

<PAGE>

                     arbitration tribunal or liability in respect thereof as a
                     total loss is admitted by underwriters.

2.      THE FACILITY

        The Initial Bank hereby grants to the Borrower, upon the terms and
        subject to the conditions hereof, a loan facility in the maximum amount
        of $21,000,000.

3.      PURPOSE

        The purpose of the Facility is to provide the Borrower with funds to
        finance the purchase of the Vessel and, accordingly, the Borrower shall
        apply all of the amounts raised by it hereunder in or towards such
        purpose (but so that neither the Agent nor the Initial Bank shall be
        obliged to concern itself with the application of amounts borrowed by
        the Borrower hereunder).

4.      CONDITIONS PRECEDENT

        The Borrower shall not be entitled to give any Notice of Drawdown
        hereunder unless the Agent shall have confirmed to the Borrower by
        facsimile or letter that it has received three days prior to the
        proposed Drawdown Date each of the documents specified in Part 1 of the
        First Schedule and found the same to be satisfactory to it in form and
        substance.

5.      NATURE OF BANKS' RIGHTS AND OBLIGATIONS

5.1     OBLIGATIONS OF BANKS SEVERAL

        The obligations of each Bank hereunder are several.

5.2     FAILURE OF ANY BANK TO PERFORM OBLIGATIONS

        The failure by a Bank to perform its obligations hereunder shall not
        affect the obligations of the Borrower towards any other party hereto
        nor shall any other party be liable for the failure by such Bank to
        perform its obligations hereunder.

5.3     RIGHTS OF BANKS SEVERAL

        The rights of the Banks hereunder are also several. The amount at any
        time owing by the Borrower to any party under this Agreement shall be a
        separate and independent debt from any amount owing to any other party.

6.      AVAILABILITY

6.1     THE FACILITY

        The Facility shall be made by the Initial Bank to the Borrower by way of
        a single Advance.

<PAGE>

6.2     DRAWDOWN CONDITIONS

        Save as otherwise provided herein, the Advance will be made by the
        Initial Bank to the Borrower on the request of the Borrower if:

              (i)    not more than ten nor less than two business days before
                     the proposed date for the making of the Advance the Agent
                     has received from the Borrower a Notice of Drawdown
                     therefor, receipt of which shall oblige the Borrower to
                     borrow the amount therein requested on the date therein
                     stated upon the terms and subject to the conditions
                     contained herein;

              (ii)   the amount stated in the Notice of Drawdown shall not be
                     more than the lesser of the amount of the Facility Amount
                     and 70% of the purchase price of Vessel as set out in the
                     Memorandum of Agreement;

              (iii)  the Drawdown Date is a business day which is or precedes
                     the Termination Date;

              (iv)   on or before the Drawdown Date the Agent has received from
                     the Borrower each of the documents specified in Part 2 of
                     the First Schedule and found the same to be satisfactory to
                     it in both form and substance;

              (v)    the interest rate applicable to the Advance during its
                     first Interest Period does not fall to be determined
                     pursuant to the proviso to Clause 7.2 (DURATION OF INTEREST
                     PERIODS); and

              (vi)   (a)    no event has occurred which is or may become (with
                            the passage of time, the giving of notice, the
                            making of any determination hereunder or any
                            combination thereof) an Event of Default; and

                     (b)    the representations set out in Clause 12
                            (REPRESENTATIONS) are true on and as of the proposed
                            date for the making of such Advance

               or the Initial Bank agrees (notwithstanding any matter mentioned
               at (a) or (b) above) that the Advance should be made.

7.      INTEREST PERIODS

7.1     INTEREST PERIODS

        The period for which the Advance is outstanding shall be divided into
        successive periods each of which (other than the first) shall start on
        the last day of the preceding such period.

<PAGE>

7.2     DURATION OF INTEREST PERIODS

        The duration of each Interest Period relating to the Advance shall, save
        as otherwise provided herein, be one, three, six or twelve months, or
        any such other period as may be agreed from time to time between the
        Borrower and the Agent, in each case as the Borrower may select by not
        less than three business days' prior notice to the Agent Provided that:

              (i)    if the Borrower selects a duration of twelve months in
                     relation to an Interest Period, then:

                     (a)    the Borrower may, at the same time, notify the Agent
                            of an alternative selection of three or six months
                            to apply if the Borrower's selection becomes
                            ineffective pursuant to (b) below; and

                     (b)    any Bank may, at any time before 9.00 a.m. on the
                            second business day preceding the first day of such
                            Interest Period, notify the Agent that it objects to
                            the Borrower's selection, whereupon such selection
                            shall become ineffective Provided that no such
                            objection shall be given except for reason of the
                            non availability to such Bank of dollars for twelve
                            months interest periods in the London Inter-bank
                            Market;

              (ii)   if the Borrower fails to give such notice of its selection
                     in relation to an Interest Period, or if its selection
                     becomes ineffective under (i)(b) above and the Borrower has
                     failed to give the Agent any permitted alternative
                     selection pursuant to (i)(a) above, then the duration of
                     that Interest Period shall, subject to (iii) below, be
                     three months;

              (iii)  the Borrower may not select an Interest Period of one month
                     more than three times during any calendar year; and

              (iv)   any Interest Period which would otherwise end during the
                     month preceding, or extend beyond, the Final Repayment Date
                     shall be of such duration that it shall end on the Final
                     Repayment Date.

7.3     If pursuant to Clause 7.2 the Borrower selects an Interest Period for an
        Advance which will extend beyond one or more Repayment Dates, then such
        Advance shall be divided into parts such that on such (or each such)
        Repayment Date there will be one or more parts in an amount equal to the
        amount scheduled to be repaid on each such Repayment Date, each such
        part to constitute an Advance and to have an Interest Period ending on
        that Repayment Date.

8.      INTEREST

8.1     PAYMENT OF INTEREST

        On the last day of each Interest Period (and, in the case of an Interest
        Period of a duration of twelve months, on the last day of the sixth of
        those months) the Borrower shall pay accrued

<PAGE>

        interest on the Advance to which such Interest Period relates.

8.2     CALCULATION OF INTEREST

        The rate of interest applicable to the Advance from time to time during
        an Interest Period relating thereto shall be the rate per annum which is
        the sum of the Margin and LIBOR for such Interest Period Provided that
        if LIBOR for an Interest Period falls to be determined in accordance
        with the proviso to the definition thereof but none of the Reference
        Banks was offering to prime banks in the London Interbank Market dollar
        deposits for the proposed duration of such Interest Period, the rate of
        interest applicable to the Advance to which such Interest Period relates
        from time to time during such Interest Period shall be the rate per
        annum which is the sum of the Margin and the weighted average of the
        rates per annum notified to the Agent by each Bank before the last day
        of such Interest Period to be that which expresses as a percentage rate
        per annum the cost to it of funding such Advance during such Interest
        Period from whatever sources it may select and the Agent shall notify
        the Borrower accordingly.

9.      REPAYMENT AND PREPAYMENT

9.1     REPAYMENT

        The Borrower shall repay the Loan in instalments by repaying on each
        Repayment Date an amount as set out below:

<TABLE>
<CAPTION>
        REPAYMENT DATE NO.                            INSTALMENT PAYABLE IN $000
        <S>                                           <C>
                1                                             500
                2                                             500
                3                                             500
                4                                             500
                5                                             550
                6                                             550
                7                                             550
                8                                             550
                9                                             600
               10                                             600
               11                                             600
               12                                             600
               13                                             600
               14                                             600
               15                                             750
               16                                             750
               17                                             750
               18                                             750
               19                                             750
               20                                            9450
</TABLE>

<PAGE>

9.2     PREPAYMENT

        The Borrower may, if it has given to the Agent not less than fifteen
        (15) business days' prior notice to that effect, prepay the whole or any
        part of the Advance (but if in part being an amount or integral multiple
        of $100,000) on the last day of an Interest Period relating thereto. Any
        prepayment made by the Borrower pursuant to this Clause shall satisfy
        the Borrower's remaining obligations under Clause 9.1 (REPAYMENT) in
        inverse order of maturity.

9.3     NOTICE OF PREPAYMENT

        Any notice of prepayment given by the Borrower pursuant to Clause 9.2
        (PREPAYMENT) shall be irrevocable and shall specify the date upon which
        such prepayment is to be made and the amount thereof and shall oblige
        the Borrower to make such prepayment on such date.

9.4     MANDATORY PREPAYMENT

        Subject to any amounts agreed between the Banks and the Borrower to be
        retained by the Borrower to meet any docking expenses, if the Borrower
        holds cash in its accounts (excluding any amounts credited to the
        Retention Account) on a Repayment Date which (after making the repayment
        and payment of interest due on such date) is in excess of $500,000 plus
        any amount that the Agent has agreed may be paid to any parties by way
        of distributions, any such excess amount shall be applied by the
        Borrower in making a prepayment of the Advance on the succeeding
        Repayment Date (in addition to any other amounts then falling due)
        together with any amounts which may fall due under Clause 17.4 (BROKEN
        PERIODS). Any such amount so prepaid will be applied against the
        Borrower's obligations under Clause 9.1 (REPAYMENT) in inverse order of
        maturity.

9.5     PREPAYMENT FEE

        If the Borrower makes any prepayment pursuant to Clause 9.2 (PREPAYMENT)
        otherwise than out of its own resources generated by the operations of
        the Vessel, the Borrower shall be obliged, together with such
        prepayment, to pay a prepayment fee equal to one quarter of one per
        cent. (1/4%) of the amount so prepaid Provided that no such fee shall be
        payable if such prepayment was made either (i) pursuant to a refinancing
        of the Loan granted by Christiania Bank og Kreditkasse ASA or by a
        syndicate of banks of which Christiania Bank og Kreditkasse ASA is an
        agent or an underwriter or (ii) during the 12 months preceding the Final
        Repayment Date.

9.6     INTEREST RATE SWAP AGREEMENTS

        If the Borrower makes any prepayment pursuant to Clause 9.2, it shall be
        obliged to pay to the Initial Bank as counterparty to the Interest Rate
        Swap Agreement (or the Initial Bank shall pay to the Agent for account
        of the Borrower) the amount of any loss (or, as the case may be, profit)
        incurred or made by the Initial Bank as a result of a total or partial
        early termination of the Interest Rate Swap Agreement made to ensure
        that the notional principal amount of the Interest Rate Swap Agreement
        matches the reduced amount of the Loan.

<PAGE>

9.7     NO OTHER REPAYMENTS OR REBORROWING

        No amount repaid or prepaid hereunder may be reborrowed.

10.     TAXES AND TAX RECEIPTS

10.1    TAX GROSS-UP

        All payments to be made by the Borrower to any person under any of the
        Facility Documents shall be made free and clear of and without deduction
        for or on account of tax unless the Borrower is required to make such a
        payment subject to the deduction or withholding of tax, in which case
        the sum payable by the Borrower in respect of which such deduction or
        withholding is required to be made shall be increased to the extent
        necessary to ensure that, after the making of such deduction or
        withholding, such person receives and retains (free from any liability
        in respect of any such deduction or withholding) a net sum equal to the
        sum which it would have received and so retained had no such deduction
        or withholding been made or required to be made.

10.2    TAX INDEMNITY

        Without prejudice to the provisions of Clause 10.1 (TAX GROSS-UP), if
        any person or the Agent on its behalf is required to make any payment on
        account of tax or otherwise (not being a tax imposed on the net income
        of the Facility Office by the jurisdiction in which it is incorporated
        or in which the Facility Office is located) on or in relation to any sum
        received or receivable by such person under any of the Facility
        Documents (including, without limitation, any sum received or receivable
        under this Clause 10) or any liability in respect of any such payment is
        asserted, imposed, levied or assessed against the such person, the
        Borrower shall, upon demand of the Agent, promptly indemnify the such
        person against such payment or liability, together with any interest,
        penalties and expenses payable or incurred in connection therewith
        Provided that if a Bank or the Agent or the Security Trustee considers
        that it is reasonable to do so and that it would not be otherwise
        prejudiced thereby, it will, prior to instructing the Agent to make a
        demand under this Clause 10.2, use reasonable endeavours to determine
        whether any such payment or liability was correctly or legally imposed
        or asserted.

10.3    CLAIMS BY A BANK

        If a Bank intends to make a claim pursuant to Clause 10.2 (TAX
        INDEMNITY) it shall notify the Agent of the event by reason of which it
        is entitled to do so whereupon the Agent shall notify the Borrower
        accordingly.

10.4    NOTIFICATION OF REQUIREMENT TO DEDUCT TAX

        If, at any time, the Borrower is required by law to make any deduction
        or withholding from any sum payable by it under any of the Facility
        Documents (or if thereafter there is any change in the rates at which or
        the manner in which such deductions or withholdings are calculated), the
        Borrower shall promptly notify the Agent, whereupon the Agent shall
        notify

<PAGE>

        the Banks and the Security Trustee accordingly.

10.5    EVIDENCE OF PAYMENT OF TAX

        If the Borrower makes any payment under any of the Facility Documents in
        respect of which it is required to make any deduction or withholding, it
        shall pay the full amount required to be deducted or withheld to the
        relevant taxation or other authority within the time allowed for such
        payment under applicable law and shall deliver to the Agent, within
        thirty days after it has received the same, an original receipt (or a
        certified copy thereof) issued by such authority evidencing the payment
        to such authority of all amounts so required to be deducted or withheld
        in respect of such payment.

11.     CHANGES IN CIRCUMSTANCES

11.1    INCREASED COSTS

        If, by reason of (a) any change in law or in its interpretation or
        administration and/or (b) compliance with any Capital Adequacy
        Requirement or any request from or requirement of any central bank or
        other fiscal, monetary or other authority:

              (i)    a Bank or any holding company of such Bank incurs a cost as
                     a result of such Bank having entered into and/or performing
                     its obligations under this Agreement and/or assuming or
                     maintaining a commitment under this Agreement and/or making
                     its advance hereunder;

              (ii)   a Bank or any holding company of such Bank is unable to
                     obtain the rate of return on its overall capital which it
                     would have been able to obtain but for such Bank having
                     entered into and/or performing its obligations and/or
                     assuming or maintaining a commitment under this Agreement;

              (iii)  there is any increase in the cost to a Bank or any holding
                     company of such Bank of funding or maintaining all or any
                     of the advances comprised in a class of advances formed by
                     or including the advance made or to be made by such Bank
                     hereunder; or

              (iv)   a Bank or any holding company of such Bank becomes liable
                     to make any payment on account of tax or otherwise (not
                     being a tax imposed on the net income of the Facility
                     Office by the jurisdiction in which such Bank is
                     incorporated or in which the Facility Office is located) on
                     or calculated by reference to the amount of the Advance
                     made or to be made hereunder and/or by reference to any sum
                     received or receivable by such Bank hereunder,

        then the Borrower shall, from time to time on demand of the Agent,
        promptly pay to the Agent for the account of such Bank amounts
        sufficient to indemnify it (or,as the case may be, to enable it to
        indemnify its holding company) against, as the case may be, (1) such
        cost, (2) such reduction in such rate of return (or such proportion of
        such reduction as is, in the opinion of such Bank, attributable to its
        obligations hereunder), (3) such increased cost (or

<PAGE>

        such proportion of such increased cost as is, in the opinion of such
        Bank, attributable to its funding or maintaining its advance hereunder)
        or (4) such liability.

11.2    INCREASED COSTS CLAIMS

        If a Bank intends to make a claim pursuant to Clause 11.1 (INCREASED
        COSTS) it shall notify the Agent of the event by reason of which it is
        entitled to do so whereupon the Agent shall notify the Borrower
        accordingly.

11.3    ILLEGALITY

        If at any time it is unlawful for a Bank to make its portion of the
        Advance or to fund or allow to remain outstanding its portion of the
        Loan, then that Bank shall, promptly after becoming aware of such fact,
        deliver to the Agent who will deliver to the Borrower a certificate to
        that effect whereupon:

              (i)    if no Advance has been made hereunder, the Bank shall not
                     thereafter be obliged to make the Advance hereunder and its
                     Facility Commitment shall be reduced to zero; and

              (ii)   if the Advance has already been made hereunder, then, if
                     the Agent on behalf of any relevant Bank so requires, the
                     Borrower shall on such date as the Agent shall have
                     specified repay such Bank's portion of the Loan in full
                     together with accrued interest thereon.

11.4    MITIGATION

        (a)   If circumstances arise which would (or would upon the giving of
              notice) result in:

              (i)    the reduction of a Bank's portion of the Loan pursuant to
                     Clause 11.3 (ILLEGALITY);

              (ii)   the prepayment of the Loan pursuant to Clause 11.3
                     (ILLEGALITY);

              (iii)  an increase in the amount of any payment pursuant to Clause
                     10.1 (TAX GROSS-UP); or

              (iv)   a claim by a Bank for indemnification pursuant to Clause
                     10.2 (TAX INDEMNITY) or a claim by a Bank for
                     indemnification pursuant to Clause 11.1 (INCREASED COSTS),

              then, without in any way limiting, reducing or otherwise
              qualifying the obligations of the Borrower under any of the
              Clauses referred to above, such Bank shall, in consultation with
              the Agent and the Borrower, take such reasonable steps as may be
              reasonably open to it to mitigate the effects of such
              circumstances, including by transferring its Facility Office to
              another jurisdiction or by assigning its rights hereunder to
              another financial institution approved by the Borrower Provided
              that such Bank shall have no obligation to transfer its Facility
              Office or assign its rights

<PAGE>

              hereunder as aforesaid if it is of the opinion that to do so
              would or might have an adverse effect on its business,
              operations or financial condition.

       (b)    If circumstances arise which would result in the Security Trustee
              being entitled pursuant to Clause 4.5 of the Trust Deed to
              exercise its rights to make deductions and withholdings from
              payments made to the Agent hereunder, the Security Trustee shall,
              in consultation with the Borrower, take such reasonable steps as
              may be reasonably open to it to mitigate the effects of such
              circumstances Provided that the Security Trustee shall have no
              obligation to do so if it is of the opinion that to do so would or
              might have an adverse effect on its business operations or
              financial condition.

12.     REPRESENTATIONS

12.1    Subject to any reservations and/or qualifications as to matters of law
        which may be made in the legal opinions referred to in paragraphs 3, 4,
        5, 6 and 7 of Part 1 of the First Schedule, the Borrower represents
        that:

              (i)    STATUS It is a company both duly organised under the laws
                     of the Cayman Islands with power to enter into the Facility
                     Documents and to exercise its rights and perform its
                     obligations under the Facility Documents and it is duly
                     qualified as a foreign maritime entity in Liberia with the
                     power to register the Vessel in the office of the Deputy
                     Commissioner of Maritime Affairs of the Republic of Liberia
                     in New York;

              (ii)   DUE AUTHORISATION All corporate and other action required
                     to authorise the execution by the Borrower of the Facility
                     Documents and the performance of its obligations under the
                     Facility Documents has been duly taken;

              (iii)  NO DEDUCTIONS OR WITHHOLDING Under the laws of the Cayman
                     Islands and Liberia in force at the date hereof, the
                     Borrower will not be required to make any deduction or
                     withholding from any payment it may make under any of the
                     Facility Documents;

              (iv)   CLAIMS PARI PASSU Without prejudice to the security
                     constituted by or pursuant to any Facility Documents under
                     the laws of the Cayman Islands and Liberia in force at the
                     date hereof, the claims of the Agent, the Banks and the
                     Security Trustee against the Borrower under any Facility
                     Documents will, to the extent that such claims exceed the
                     realised value of the security therefor, rank at least PARI
                     PASSU with the claims of all its other unsecured and
                     non-subordinated creditors save those whose claims are
                     preferred solely by any bankruptcy, insolvency or other
                     similar laws of general application;

              (v)    NO IMMUNITY In any proceedings taken in the Cayman Islands
                     in relation to any of the Facility Documents, the Borrower
                     will not be entitled to claim for itself or any of its
                     assets immunity from suit, execution, attachment or other
                     legal process;

              (vi)   GOVERNING LAW AND JUDGMENTS In any proceedings taken in the
                     Cayman

<PAGE>

                     Islands in relation to any of the Facility Documents, the
                     choice of English law as the governing law of those of the
                     Facility Documents as are expressed to be governed by
                     English law and any judgment obtained in England will be
                     recognised and enforced;

              (vii)  VALIDITY AND ADMISSIBILITY IN EVIDENCE Other than the
                     recording of the Mortgage at the office of the Deputy
                     Commissioner of Maritime Affairs of the Republic of Liberia
                     in New York and any required registration in the Cayman
                     Islands, all acts, conditions and things required to be
                     done, fulfilled and performed in order (a) to enable the
                     Borrower lawfully to enter into, exercise its rights under
                     and perform and comply with the obligations expressed to be
                     assumed by it in the Facility Documents, (b) to ensure that
                     the obligations expressed to be assumed by it in the
                     Facility Documents are legal, valid and binding and (c) to
                     make the Facility Documents admissible in evidence in the
                     Cayman Islands have been done, fulfilled and performed;

              (viii) NO FILING OR STAMP TAXES Under the laws of the Cayman
                     Islands in force at the date hereof, it is not necessary
                     that any of the Facility Documents be filed, recorded or
                     enrolled with any court or other authority in its
                     jurisdiction of incorporation or that any stamp,
                     registration or similar tax be paid on or in relation to
                     any such Facility Documents; and

              (ix)   BINDING OBLIGATION The obligations expressed to be assumed
                     by the Borrower in the Facility Documents are legal and
                     valid obligations binding on it in accordance with the
                     terms of such Facility Documents.

12.2    The Borrower further represents that:

              (i)    NO WINDING-UP It has not taken any corporate action nor
                     have any other steps been taken or legal proceedings been
                     started or (to the best of its knowledge and belief)
                     threatened against it for its winding-up, dissolution or
                     reorganisation or for the appointment of a receiver,
                     administrator, administrative receiver, trustee or similar
                     officer of it or of any or all of its assets or revenues;

              (ii)   NO MATERIAL DEFAULT It is not in breach of or in default
                     under any agreement to which it is a party or which is
                     binding on it or any of its assets to an extent or in a
                     manner which might have a material adverse effect on its
                     business or financial condition;

              (iii)  NO MATERIAL PROCEEDINGS No action or administrative
                     proceeding of or before any court or agency which might
                     have a material adverse effect on its business or financial
                     condition has been started or threatened;

              (iv)   NO OTHER BUSINESS It has not incurred any liabilities or
                     entered into any other commitments nor undertaken any
                     business other than in connection with the purchase or
                     operation of the Vessel;

<PAGE>

              (v)    NO UNDISCLOSED LIABILITIES As at the date hereof it has no
                     liabilities (contingent or otherwise) which have not been
                     disclosed to the Agent nor any unrealised or anticipated
                     losses arising from commitments entered into by it;

              (vi)   FULL DISCLOSURE Each of the Charters, the Memorandum of
                     Agreement and the Management Agreement are in full force
                     and effect and the Borrower has disclosed to the Agent all
                     of the terms and conditions of each such agreement and
                     there are no amendments or variations to any such document
                     which have not been disclosed to the Agent;

              (vii)  NO OBLIGATION TO CREATE SECURITY Its execution of the
                     Facility Documents and its exercise of its rights and
                     performance of its obligations thereunder will not result
                     in the existence of nor oblige it to create any encumbrance
                     over all or any of its present or future revenues or assets
                     except pursuant to the Facility Documents;

              (viii) EXECUTION OF FACILITY DOCUMENTS Its execution of the
                     Facility Documents and its exercise of its rights and
                     performance of its obligations under the Facility Documents
                     do not constitute and will not result in any breach of any
                     agreement or treaty;

              (ix)   ENCUMBRANCES Save as permitted by Clause 15(ix), no
                     encumbrance exists over all or any of its present or future
                     revenues or assets;

              (x)    OWNERSHIP OF THE BORROWER The Shareholder is the sole
                     shareholder of the Borrower;

              (xi)   OWNERSHIP OF THE SHAREHOLDER The General Partners are the
                     only general partners of the Shareholder; and

              (xii)  MANAGEMENT OF THE VESSEL The Vessel will be managed by
                     Universe Tankships Bermuda Ltd., in accordance with the
                     provisions of the Management Agreement.

13.     INFORMATION COVENANTS

13.1    ANNUAL STATEMENTS

        The Borrower shall using its best endeavours and as soon as the same
        become available, but in any event within one hundred and eighty days
        after the end of each of their respective financial years, furnish to
        the Agent, the Borrower's and the Initial Charterer's or as the case may
        be, the Subsequent Charterer's balance sheets as at the end of such
        financial year and the Borrower's and the Initial Charterer's or as the
        case may be, the Subsequent Charterer's profit-and-loss accounts in
        respect of that financial year, in each case prepared in accordance with
        internationally accepted accounting principles consistently applied.

<PAGE>

13.2    SEMI-ANNUAL STATEMENTS

        The Borrower using its best endeavours and shall as soon as the same
        become available, but in any event within 90 days after the end of each
        of their respective financial half years, furnish to the Agent, the
        Borrower's and the Initial Charterer's or as the case may be, the
        Subsequent Charterer's balance sheets as at the end of such accounting
        period and the Borrower's and the Initial Charterer's or as the case may
        be, the Subsequent Charterer's profit-and-loss accounts in respect of
        that accounting period, together with the Borrower's cash flow reports
        for such period in each case prepared in accordance with internationally
        accepted accounting principles consistently applied.

13.3    NOTIFICATION OF EVENT OF DEFAULT

        The Borrower shall promptly inform the Agent of the occurrence of any
        event which is or may become (with the passage of time, the giving of
        notice, the making of any determination hereunder or any combination
        thereof) an Event of Default and, upon receipt of a written request to
        that effect from the Agent, promptly deliver to the Agent a written
        confirmation given by a duly authorised officer of the Borrower to the
        effect that, save as previously notified to the Agent or as notified in
        such confirmation, no such event has occurred.

13.4    NOTIFICATION OF OFF-HIRE

        The Borrower shall promptly inform the Agent of any material
        interruption in the operation of the Vessel (which shall include
        situations where the Vessel is off-hire for a period of 5 days or more
        at any one time) and the financial implications of such interruption.

13.5    OTHER FINANCIAL INFORMATION

        The Borrower shall from time to time on the request of the Agent use its
        best endeavours to furnish the Agent with such other information about
        its and either Charterer's business, assets and financial condition
        (including financial accounts and cash flow reports) as the Agent may
        reasonably request.

13.6    PROVISO

        It is hereby agreed that the Borrower's obligations under this Clause 13
        to provide or furnish the Agent with any information regarding the
        Initial Charterer shall cease upon termination of the Initial Charter.

<PAGE>

14.     FINANCIAL CONDITION

14.1    FAIR MARKET VALUE OF VESSEL

        The Borrower shall ensure that at all times during the term of the Loan,
        the Fair Market Value of the Vessel as established by R.S. Platou and H
        Clarkson Limited or such other two (2) reputable brokers appointed by
        the Agent (after consultation with the Borrower) shall equal or exceed
        135% of the Loan. If at any time such ratio is not met, the Borrower
        will forthwith on the demand of the Agent prepay such portion of the
        Loan as will ensure that such ratio is complied with. The Agent shall be
        entitled to request such estimates of the Fair Market Value at least
        twice per calendar year (or at any time after the occurrence of an Event
        of Default) and the Borrower shall promptly pay or reimburse to the
        Agent the cost of obtaining such valuations.

14.2    MINIMUM WORKING CAPITAL

        The Borrower shall maintain at all times Working Capital (which shall
        mean Current Assets less Current Liabilities) of at least $750,000.

14.3    NOTIFICATION OF FINANCIAL CONDITION The Borrower shall deliver to the
        Agent a certificate stating the Borrower's compliance with the covenants
        undertaken pursuant to this Clause 14 with each of the semi-annual
        financial statements delivered pursuant to Clause 13.2.

14.4    For the purposes of Clause 14.2:

        "CURRENT ASSETS" means all assets of the Borrower which, in accordance
        with internationally accepted accounting principles, would be classed as
        current assets; and

        "CURRENT LIABILITIES" means all obligations of the Borrower which, in
        accordance with internationally accepted accounting principles, would be
        considered as current liabilities, excluding all amounts of principal
        due under this Facility within one year from the date of calculation.

15.     GENERAL COVENANTS

        The Borrower:

              (i)    shall obtain, comply with the terms of and do all that is
                     necessary to maintain in full force and effect all
                     authorisations, approvals, licences and consents required
                     in or by the laws and regulations of the Cayman Islands and
                     Liberia and all other applicable jurisdictions to enable it
                     lawfully to enter into and perform its obligations under
                     the Facility Documents or to ensure the legality, validity,
                     enforceability or admissibility in evidence the Cayman
                     Islands and Liberia and all other applicable jurisdictions
                     of the Facility Documents;

              (ii)   shall procure that no change of the classification or flag
                     of the Vessel,

<PAGE>

                     management of the Vessel or the Charters shall occur
                     without the prior written consent of the Agent;

              (iii)  shall, in the event of total loss of the Vessel, procure
                     that the Loan is repaid in full within 90 days of the
                     Agent's written notice (whether as a result of the
                     application of insurance proceeds or otherwise);

              (iv)   shall not, without the prior written consent of the Agent,
                     (such consent not to be unreasonably withheld) permit any
                     distributions of the Borrower's profits or assets or pay
                     any dividends or other distributions to the Shareholder or
                     any of the Shareholder's partners;

              (v)    shall not make any loans, grant any credit (save in the
                     ordinary course of business) or give any guarantee or
                     indemnity to or for the benefit of any person or otherwise
                     voluntarily assume any liability, whether actual or
                     contingent, in respect of any obligations of any person;

              (vi)   shall not, without prior written consent of the Agent, make
                     any investments with the assets of the Borrower (otherwise
                     than by placing its cash into bank accounts with the Agent)
                     except for any investments required to maintain the
                     classification status of the Vessel;

              (vii)  shall not, without the prior written consent of the
                     Instructing Group, permit any change to its shareholding;

              (viii) shall maintain all its bank accounts with the Agent's
                     branch in New York and shall only operate such accounts in
                     accordance with Clause 11 of the Assignment of Earnings and
                     Insurances;

              (ix)   shall not, without the prior consent of the Agent, create
                     or permit to subsist any encumbrance over all or any of its
                     present or future revenues or assets other than the
                     Permitted Liens and any encumbrance created pursuant to the
                     Facility Documents and any second priority security over
                     the Vessel and its earnings, insurances and bank accounts
                     in favour of the Security Trustee on terms acceptable to
                     the Agent to secure the Borrower's obligations under the
                     Junior Facility Agreement;

              (x)    shall manage its business and procure that the Vessel is
                     managed in compliance with all applicable laws and
                     regulations applicable thereto and shall promptly notify
                     the Agent of any non-compliance other than of a minor or
                     technical nature;

              (xi)   shall not engage in any other business other than the
                     ownership and chartering of the Vessel;

              (xii)  shall procure that the Vessel is at all times fully
                     approved by major oil companies relevant in its trade;

<PAGE>

              (xiii) shall ensure that the technical management of the Vessel
                     remains with Universe Tankships Bermuda Ltd.; and

              (xiv)  shall upon notice and within the time frame set by the
                     Agent enter into an agreement with the Initial Bank as
                     counterparty to amend, supplement or extend the Interest
                     Rate Swap Agreement on terms and conditions agreed between
                     the Borrower and the Initial Bank.

16.     EVENTS OF DEFAULT

16.1    If:

              (i)    FAILURE TO PAY The Borrower or the Initial Charterer, or as
                     the case may be, the Subsequent Charterer fails to pay any
                     sum due from it under this Agreement or the Initial Charter
                     or as the case may be, the Subsequent Charterer at any
                     time, in the currency and in the manner specified herein or
                     therein Provided that it shall not be an Event of Default
                     if any sum due under the Initial Charter or as the case may
                     be, the Subsequent Charter is paid by the Initial Charterer
                     or as the case may be, the Subsequent Charterer within 5
                     business days of the due date for payment as specified
                     therein; or

              (ii)   MISREPRESENTATION Any representation or statement made by
                     the Borrower in any Facility Document or in any notice or
                     other document, certificate or statement delivered by it
                     pursuant hereto or thereto or in connection herewith or
                     therewith is or proves to have been incorrect or misleading
                     in any material respect when made; or

              (iii)  COVENANTS The Borrower fails duly to perform the
                     obligations expressed to be assumed by it in Clause 14
                     (FINANCIAL CONDITION) or 15 (GENERAL COVENANTS); or

              (iv)   INSURANCE The Borrower fails to insure the Vessel in
                     accordance with the requirements of the Assignment of
                     Earnings and Insurances and/or the Mortgage; or

              (v)    OTHER OBLIGATION The Borrower fails duly to perform or
                     comply with any other obligation expressed to be assumed by
                     it in any Facility Document and such failure is not
                     remedied within thirty days after the Agent has given
                     notice to the Borrower requiring the same to be remedied;
                     or

              (vi)   CROSS DEFAULT (a) any indebtedness of the Borrower or the
                     Shareholder or any General Partner or the Initial Charterer
                     or the Subsequent Charterer is not paid when due (or within
                     any period of grace applicable thereto), (b) any
                     indebtedness of the Borrower or the Shareholder, or either
                     General Partner or the Initial Charterer or the Subsequent
                     Charterer is declared to be or otherwise becomes due and
                     payable prior to its specified maturity or (c) any creditor
                     of the Borrower or the Shareholder or either General
                     Partner or the Initial Charterer or the Subsequent
                     Charterer become entitled to declare any

<PAGE>

                     indebtedness of the Borrower or the Shareholder or either
                     General Partner or the Initial Charterer or the Subsequent
                     Charterer due and payable prior to its specified maturity
                     Provided that it shall not be an Event of Default if, with
                     respect to either General Partner, the events specified in
                     (a), (b) and (c) above are genuinely disputed by such
                     General Partner in appropriate legal proceedings; or

              (vii)  INSOLVENCY AND RESCHEDULING The Borrower or the Shareholder
                     or either General Partner or the Initial Charterer or the
                     Subsequent Charterer is unable to pay its debts as they
                     fall due, commences negotiations with any one 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

              (viii) WINDING-UP Otherwise than for the purposes of a
                     reconstruction on terms previously approved by the
                     Instructing Group, the Borrower or the Shareholder or
                     either General Partner or the Initial Charterer or the
                     Subsequent Charterer takes any corporate action or other
                     steps are taken or legal proceedings are started for its
                     winding-up, dissolution or re-organisation 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

              (ix)   REPUDIATION The Borrower or the Initial Charterer or the
                     Subsequent Charterer repudiates any Facility Document or
                     the Initial Charter or, as the case may be, the Subsequent
                     Charter or does or causes to be done any act or thing
                     evidencing an intention to repudiate any such Facility
                     Document or the Initial Charter or Subsequent Charter; or

              (x)    LEGALITY OF FACILITY DOCUMENTS 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 its
                     obligations expressed to be assumed by it in the Facility
                     Documents, (b) to ensure that the obligations expressed to
                     be assumed by the Borrower in the Facility Documents are
                     legal, valid and binding or (c) to make any of the Facility
                     Documents admissible in evidence in the Cayman Islands or
                     Liberia is not done, fulfilled or performed; or

              (xi)   COMPLIANCE WITH OBLIGATIONS At any time it is or becomes
                     unlawful for the Borrower to perform or comply with any or
                     all of its obligations under any Facility Document or any
                     of the obligations of the Borrower under the Facility
                     Document are not or cease to be legal, valid and binding;
                     or

<PAGE>

              (xii)  SEIZURE BY GOVERNMENT By or under the authority of any
                     government, (a) the management of the Borrower is wholly or
                     partially displaced or the authority of the Borrower in the
                     conduct of its business is wholly or partially curtailed or
                     (b) the whole or any part (the market value of which is
                     twenty per cent. or more of the market value of the whole)
                     of its revenues or assets is seized, nationalised,
                     expropriated or compulsorily acquired; or

              (xiii) MATERIAL ADVERSE CHANGE There shall occur any event or
                     circumstance which in the opinion of the Instructing Group
                     may, or may be likely to, materially and adversely affect
                     the ability of the Borrower or the Initial Charterer or as
                     the case may be the Subsequent Charterer to discharge its
                     obligations under the Facility Documents or the Initial
                     Charter or as the case may be the Subsequent Charter in the
                     manner provided therein; or

              (xiv)  VARIATION OR TERMINATION OF AGREEMENTS The Memorandum of
                     Agreement or the Initial Charter or as the case may be, the
                     Subsequent Charter is amended in any material manner
                     without the prior written consent of the Agent or
                     terminated otherwise than by reason of the due discharge of
                     all obligations of each of the parties thereto or if any
                     party thereto is in breach of any of its obligations
                     thereunder; or

              (xv)   MANAGEMENT AGREEMENT If there is any material amendment to
                     the Management Agreement or the Management Agreement is
                     terminated or otherwise ceases to be effective without the
                     Agent's prior written consent; or

              (xvi)  JUNIOR FACILITY Any event of default (howsoever described)
                     occurs under the Junior Facility Agreement; or

              (xvii) PARTNERSHIP/OWNERSHIP STRUCTURE If there is any change in
                     the shareholding of the Borrower or of either General
                     Partner without the prior written consent of the
                     Instructing Group; or

              (xviii) ANALOGOUS EVENT If any event occurs to the Borrower, the
                     Shareholder, any General Partner, the Initial Charterer or
                     as the case may be, the Subsequent Charterer under the laws
                     of any other jurisdiction which is analogous to any of the
                     events or circumstances referred to in paragraphs (vii) or
                     (viii) above; or

              (xix)  OWNERSHIP OF SUBSEQUENT CHARTERER If the Subsequent
                     Charterer ceases to be a wholly owned subsidiary of Stena
                     AB of Sweden, or if the Subsequent Charterer fails to take
                     delivery of the Vessel pursuant to the Subsequent Charter
                     promptly upon the expiry of the Initial Charter; or

              (xx)   SWAP AGREEMENT Any event of default (howsoever described)
                     occurs under the Interest Rate Swap Agreement,

        then, and in any such case and at any time thereafter, the Agent may,
        and shall if so

<PAGE>

        instructed by the Instructing Group, 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 hereunder) or
              declare the Loan to be due and payable on demand of the Agent;
              and/or

        (b)   declare that the Facility Amount shall be cancelled, whereupon the
              same shall be cancelled and the amount thereof reduced to zero.

16.2    ADVANCE DUE ON DEMAND

        If, pursuant to Clause 16.1, the Agent declares the Loan to be due and
        payable on demand of the Agent, then, and at any time thereafter, the
        Agent may by written notice to the Borrower:

              (i)    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
                     hereunder) or withdraw its declaration with effect from
                     such date as it may specify in such notice; and/or

              (ii)   select as the duration of any Interest Period relating to
                     an Advance which begins whilst such declaration remains in
                     effect a period of six months or less.

16.3    PROVISO

              (i)    It is hereby agreed that each of the events set out in
                     Clause 16.1(i), (vi), (vii), (viii), (ix), (xiii) and (xiv)
                     shall not be an Event of Default if it occurs in relation
                     to the Initial Charterer after the termination of the
                     Initial Charter as a result of the obligations thereunder
                     having been fully performed by the Initial Charterer in
                     accordance with the terms specified therein; and

              (ii)   It is hereby agreed that if any Event of Default occurs
                     only in relation to the Initial Charterer or the Subsequent
                     Charterer and within 15 days thereafter alternative
                     arrangements in form and substance satisfactory to the
                     Agent and the Instructing Group, as determined in their
                     sole discretion, are entered into to provide alternative
                     security for the performance by the Borrower of its
                     obligations hereunder, then the Agent, on instruction of
                     the Instructing Group, may agree that the event of
                     circumstances giving rise to such Event of Default shall
                     not be treated as an Event of Default.

17.     DEFAULT INTEREST AND INDEMNITY

17.1    DEFAULT INTEREST PERIODS

        If any sum due and payable by the Borrower hereunder is not paid on the
        due date therefor in accordance with the provisions of Clause 19
        (PAYMENTS) or if any sum due and payable by the

<PAGE>

        Borrower under any judgment of any court in connection with this
        Agreement is not paid on the date of such judgment, the period beginning
        on such due date or, as the case may be, the date of such judgment and
        ending on the date upon which the obligation of the Borrower to pay such
        sum (the balance thereof for the time being unpaid being herein referred
        to as an "UNPAID SUM") is discharged shall be divided into successive
        periods, each of which (other than the first) shall start on the last
        day of the preceding such period and the duration of each of which shall
        be selected by the Agent.

17.2    DEFAULT INTEREST

        During each such period relating thereto as is mentioned in Clause 17.1
        (DEFAULT INTEREST PERIODS) an unpaid sum shall bear interest at the rate
        per annum which is the sum from time to time of one per cent., the
        Margin and LIBOR for that period Provided that:

              (i)    if, for any such period, LIBOR falls to be determined
                     pursuant to the proviso to the definition thereof but none
                     of the Reference Banks was offering dollar deposits for the
                     period aforesaid, the rate of interest applicable to such
                     unpaid sum shall be determined by reference to the cost to
                     each Bank of obtaining such deposits from such sources as
                     it may select as notified to the Agent; and

              (ii)   if such unpaid sum is all or part of the Advance which
                     became due and payable on a day other than the last day of
                     an Interest Period relating thereto, the first such period
                     applicable thereto shall be of a duration equal to the
                     unexpired portion of that Interest Period and the rate of
                     interest applicable thereto during such period shall be
                     that which exceeds by one per cent. the rate which would
                     have been applicable to it had it not so fallen due.

17.3    PAYMENT OF DEFAULT INTEREST

        Any interest which shall have accrued under Clause 17.2 (DEFAULT
        INTEREST) in respect of an unpaid sum shall be due and payable and shall
        be paid by the Borrower at the end of the period by reference to which
        it is calculated or on such other dates as the Agent may specify by
        written notice to the Borrower.

17.4    BROKEN PERIODS

        If any Bank receives or recovers all or any part of such Bank's share of
        the Advance otherwise than on the last day of an Interest Period
        relating to the Advance, the Borrower shall pay to the Agent on demand
        an amount equal to the amount (if any) by which (a) the additional
        interest which would have been payable on the amount so received or
        recovered had it been received or recovered on the last day of that
        Interest Period exceeds (b) the amount of interest which in the opinion
        of the Agent would have been payable to the Agent on the last day of
        that Interest Period in respect of a dollar deposit equal to the amount
        so received or recovered placed by it with a prime bank in London for a
        period starting on the third business day following the date of such
        receipt or recovery and ending on the last day of that Interest Period.

<PAGE>

17.5    BORROWER'S INDEMNITY

        The Borrower undertakes:

              (i)    to indemnify each of the Agent, each Bank and the Security
                     Trustee against any loss or expense, including legal fees
                     on a full indemnity basis, which any of them may sustain or
                     incur as a consequence of any default by the Borrower in
                     the performance of any of the obligations expressed to be
                     assumed by it in any of the Facility Documents to which it
                     is a party; and

              (ii)   to indemnify each Bank against any loss it may suffer as a
                     result of its funding its share of the Advance requested by
                     the Borrower hereunder but not made by reason of the
                     operation of any one or more of the provisions hereof.

17.6    Any unpaid sum shall (for the purposes of this Clause 17 and Clause 11.1
        (INCREASED COSTS) be treated as an advance and accordingly in this
        Clause 17 and Clause 11.1 (INCREASED COSTS) the term "Advance" includes
        any unpaid sum and the term "Interest Period", in relation to an unpaid
        sum, includes each such period relating thereto as is mentioned in
        Clause 17.1 (DEFAULT INTEREST PERIODS).

18.     CURRENCY OF ACCOUNT AND PAYMENT

18.1    CURRENCY OF ACCOUNT

        The dollar is the currency of account and payment for each and every sum
        at any time due from the Borrower hereunder Provided that each payment
        in respect of costs and expenses shall be made in the currency in which
        the same were incurred.

18.2    CURRENCY INDEMNITY

        If any sum due from the Borrower under any Facility Document to which
        the Borrower is a party or any order or judgment given or made in
        relation hereto or thereto has to be converted from the currency (the
        "FIRST CURRENCY") in which the same is payable under such Facility
        Document or order or judgment into another currency (the "SECOND
        CURRENCY") for the purpose of (i) making or filing a claim or proof
        against the Borrower, (ii) obtaining an order or judgment in any court
        or other tribunal or (iii) enforcing any order or judgment given or made
        in relation to any Facility Document, the Borrower shall indemnify and
        hold harmless each of the persons to whom such sum is due from and
        against any loss suffered as a result of any discrepancy between (a) the
        rate of exchange used for such purpose to convert the sum in question
        from the first currency into the second currency and (b) the rate or
        rates of exchange at which such person may in the ordinary course of
        business purchase the first currency with the second currency upon
        receipt of a sum paid to it in satisfaction, in whole or in part, of any
        such order, judgment, claim or proof.

<PAGE>

19.     PAYMENTS

19.1    PAYMENTS

        On each date on which this Agreement requires an amount to be paid by
        the Borrower or a Bank hereunder, the Borrower or, as the case may be,
        such Bank shall make the same available to the Agent by payment in
        dollars and in same day funds (or in such other funds as may for the
        time being be customary in New York City for the settlement in New York
        City of international banking transactions in dollars) to the account of
        the Agent in Oslo or such other account as the Agent may have specified
        for this purpose.

19.2    NO SET-OFF

        All payments made by the Borrower hereunder shall be made free and clear
        of and without any deduction for or on account of any set-off or
        counterclaim.

20.     SET-OFF

        The Borrower authorises each Bank at any time following the occurrence
        of an Event of Default to apply any credit balance to which the Borrower
        is entitled on any account of the Borrower with such Bank in
        satisfaction of any sum due and payable from the Borrower to such Bank
        under this Agreement but unpaid; for this purpose, such Bank is
        authorised to purchase with the moneys standing to the credit of any
        such account such other currencies as may be necessary to effect such
        application.

21.     SHARING

21.1    REDISTRIBUTION OF PAYMENTS

        If at any time, the proportion which any Bank (a "RECOVERING BANK") has
        received or recovered (whether by payment, the exercise of a right of
        set-off or combination of accounts or otherwise) in respect of its
        portion of any payment (a "RELEVANT PAYMENT") to be made under this
        Agreement by the Borrower for account of such Recovering Bank and one or
        more other Banks is greater (the portion of such receipt or recovery
        giving rise to such excess proportion being herein called an "EXCESS
        AMOUNT") than the proportion thereof so received or recovered by the
        Bank or Banks so receiving or recovering the smallest proportion
        thereof, then:

              (i)    such Recovering Bank shall pay to the Agent an amount equal
                     to such excess amount;

              (ii)   there shall thereupon fall due from such Recovering Bank an
                     amount equal to the amount paid out by such Recovering Bank
                     pursuant to paragraph (i) above, the amount so due being,
                     for the purposes hereof, treated as if it were an unpaid
                     part of such Recovering Bank's portion of such relevant
                     payment; and

<PAGE>

              (iii)  the Agent shall treat the amount received by it from such
                     Recovering Bank pursuant to paragraph (i) above as if such
                     amount had been received by it from the Borrower in respect
                     of such relevant payment and shall pay the same to the
                     persons entitled thereto (including such Recovering Bank)
                     PRO RATA to their respective entitlements thereto.

21.2    REPAYABLE RECOVERIES

        If any sum (a "RELEVANT SUM") received or recovered by a Recovering Bank
        in respect of any amount owing to it by the Borrower becomes repayable
        and is repaid by such Recovering Bank, then:

              (i)    each Bank which has received a share of such relevant sum
                     by reason of the implementation of Clause 19.1 (PAYMENTS)
                     shall, upon request of the Agent, pay to the Agent for
                     account of such Recovering Bank an amount equal to its
                     share of such relevant sum; and

              (ii)   there shall thereupon fall due from the Borrower to each
                     such Bank an amount equal to the amount paid out by it
                     pursuant to paragraph (i) above, the amount so due being,
                     for the purposes hereof, treated as if it were the sum
                     payable to such Bank against which such Bank's share of
                     such relevant sum was applied.

22.     FEES

22.1    ARRANGEMENT FEE

        The Borrower shall pay to the Agent for its account as a Bank hereunder
        an arrangement fee of the amount specified in the letter exchanged
        between the Agent and Maritime Equity Management Limited dated 17 April
        1997 such fee to be payable at the Drawdown Date.

22.2    COMMITMENT FEE

        The Borrower shall pay to the Agent for account of the Initial Bank a
        commitment commission on the Facility Amount from day to day during the
        period beginning on 23 July 1997 and ending on the Drawdown Date, such
        commitment commission to be calculated at the rate of one-half of one
        per cent. per annum and payable quarterly in arrears up to the Drawdown
        Date and on the Drawdown Date.

22.3    AGENCY FEE

        The Borrower shall pay to the Agent a non-refundable agency fee of the
        amount specified in the letter exchanged between the Agent and Maritime
        Equity Management Limited dated 17 April 1997, such fee to be payable on
        the Drawdown Date and on each anniversary thereof.

<PAGE>

23.     COSTS AND EXPENSES

23.1    TRANSACTION EXPENSES

        The Borrower shall, from time to time on demand of the Agent, reimburse
        the Agent for all costs and expenses including legal fees) incurred by
        it in connection with the negotiation, preparation and execution of the
        Facility Documents and the completion of the transactions herein
        contemplated.

23.2    PRESERVATION AND ENFORCEMENT OF RIGHTS

        The Borrower shall, from time to time on demand of the Agent, reimburse
        the Agent, the Banks and the Security Trustee for all costs and expenses
        (including legal fees) incurred in or in connection with the
        preservation and/or enforcement of any of the rights of the Agent, the
        Banks and the Security Trustee under the Facility Documents.

23.3    STAMP TAXES

        The Borrower shall pay all stamp, registration and other taxes to which
        any Facility Document or any judgment given in connection with any
        Facility Document is or at any time may be subject and shall, from time
        to time on demand of the Agent, indemnify the Security Trustee and the
        Bank against any liabilities, costs, claims and expenses resulting from
        any failure to pay or any delay in paying any such tax.

23.4    BANKS' LIABILITIES FOR COSTS

        If the Borrower fails to perform any of its obligations under this
        Clause 23, each Bank shall, in the proportion borne by its share of the
        Loan to the amount of the Loan for the time being indemnify the Agent
        against any loss incurred by it as a result of such failure and the
        Borrower shall forthwith reimburse each Bank for any payment made by it
        pursuant to this Clause 23.4.

24.     THE AGENT AND THE BANKS

24.1    APPOINTMENT OF THE AGENT

        Each Bank hereby appoints the Agent to act as its agent in connection
        with this Agreement and the other Facility Documents and authorises the
        Agent to exercise such rights, powers and discretions as are
        specifically delegated to the Agent by the terms hereof together with
        all such rights, powers and discretions as are reasonably incidental
        thereto.

24.2    AGENT'S DISCRETIONS

        The Agent may:

              (i)    assume that:

<PAGE>

                     (a)    any representation made by the Borrower in
                            connection with this Agreement and the other
                            Facility Documents is true;

                     (b)    no event which is or may become an Event of Default
                            has occurred; and

                     (c)    the Borrower is not in breach of or default under
                            its obligations with this Agreement and the other
                            Facility Documents

                     unless it has actual knowledge or actual notice to the
                     contrary;

              (ii)   assume that the Facility Office of each Bank is that
                     identified with its signature (or, in the case of a
                     Transferee, at the end of the Transfer Certificate to which
                     it is a party as Transferee) below until it has received
                     from such Bank a notice designating some other office of
                     such Bank to replace its Facility Office and act upon any
                     such notice until the same is superseded by a further such
                     notice;

              (iii)  engage and pay for the advice or services of any lawyers,
                     accountants, surveyors or other experts whose advice or
                     services may to it seem necessary, expedient or desirable
                     and rely upon any advice so obtained;

              (iv)   rely as to any matters of fact which might reasonably be
                     expected to be within the knowledge of the Borrower upon a
                     certificate signed by or on behalf of the Borrower;

              (v)    rely upon any communication or document believed by it to
                     be genuine;

              (vi)   refrain from exercising any right, power or discretion
                     vested in it as agent hereunder unless and until instructed
                     by an Instructing Group as to whether or not such right,
                     power or discretion is to be exercised and, if it is to be
                     exercised, as to the manner in which it should be
                     exercised; and

              (vii)  refrain from acting in accordance with any instructions of
                     an Instructing Group to begin any legal action or
                     proceeding arising out of or in connection with this
                     Agreement until it shall have received such security as it
                     may require (whether by way of payment in advance or
                     otherwise) for all costs, claims, expenses (including legal
                     fees) and liabilities which it will or may expend or incur
                     in complying with such instructions.

24.3    AGENT'S OBLIGATIONS

        The Agent shall:

              (i)    promptly inform each Bank of the contents of any notice or
                     document received by it from the Borrower under this
                     Agreement and the other Facility Documents;

<PAGE>

              (ii)   promptly notify each Bank of the occurrence of any Event of
                     Default or any default by the Borrower in the due
                     performance of or compliance with its obligations under
                     this Agreement and the other Facility Documents of which
                     the Agent has actual knowledge or actual notice;

              (iii)  save as otherwise provided herein, act as agent hereunder
                     in accordance with any instructions given to it by an
                     Instructing Group, which instructions shall be binding on
                     all the Banks; and

              (iv)   if so instructed by an Instructing Group, refrain from
                     exercising any right, power or discretion vested in it as
                     agent hereunder.

24.4    EXCLUDED OBLIGATIONS

        Notwithstanding anything to the contrary expressed or implied herein,
        the Agent shall not:

              (i)    be bound to enquire as to:

                     (a)    whether or not any representation made by the
                            Borrower in connection with the Facility Documents
                            is true;

                     (b)    the occurrence or otherwise of any event which is or
                            may become an Event of Default;

                     (c)    the performance by the Borrower of its obligations
                            under any of the Facility Documents; or

                     (d)    any breach of or default by the Borrower of or under
                            its obligations under any of the Facility Documents;

              (ii)   be bound to account to each Bank for any sum or the profit
                     element of any sum received by it for its own account;

              (iii)  be bound to disclose to any other person any information
                     relating to the Borrower if such disclosure would or might
                     in its opinion constitute a breach of any law or
                     regulations or be otherwise actionable at the suit of any
                     person; or

              (iv)   be under any obligations other than those for which express
                     provision is made herein.

<PAGE>

24.5    INDEMNIFICATION

        Each Bank shall, from time to time on demand by the Agent, indemnify the
        Agent, in the proportion its share of the Loan bears to the amount of
        the Loan at the time of such demand or, if the Loan has then been repaid
        in full, against any and all costs, claims, losses, expenses (including
        legal fees) and liabilities together with any VAT thereon which the
        Agent may incur, otherwise than by reason of its own negligence or
        wilful misconduct, in acting in its capacity as agent hereunder.

24.6    EXCLUSION OF LIABILITIES

        The Agent does not accept any responsibility for the accuracy and/or
        completeness of information supplied by the Borrower in connection
        herewith or with any other Facility Document or for the legality,
        validity, effectiveness, adequacy or enforceability of this Agreement or
        any other Facility Document and the Agent shall not be under any
        liability as a result of taking or omitting to take any action in
        relation to this Agreement or any other Facility Document, save in the
        case of gross negligence or wilful misconduct.

24.7    NO ACTION

        Each Bank agrees that it will not assert or seek to assert against any
        director, officer or employee of the Agent any claim it might have
        against any of them in respect of the matters referred to in Clause 24.6
        (EXCLUSION OF LIABILITIES).

24.8    BUSINESS WITH THE BORROWER

        The Agent and each of the Banks may accept deposits from, lend money to
        and generally engage in any kind of banking or other business with the
        Borrower.

24.9    RESIGNATION

        The Agent may resign its appointment hereunder at any time without
        assigning any reason therefor by giving not less than thirty days' prior
        written notice to that effect to each of the other parties hereto
        Provided that no such resignation shall be effective until a successor
        for the Agent is appointed in accordance with the succeeding provisions
        of this Clause 24.

24.10   SUCCESSOR AGENT

        If the Agent gives notice of its resignation pursuant to Clause 24.9
        then any reputable and experienced bank or other financial institution
        may be appointed as a successor to the Agent by an Instructing Group
        with the Borrower's consent (such consent not to be unreasonably delayed
        or withheld) during the period of such notice but, if no such successor
        is so appointed, the Agent may appoint such a successor itself.

<PAGE>

24.11   RIGHTS AND OBLIGATIONS

        If a successor to the Agent is appointed under the provisions of Clause
        24.10 (SUCCESSOR AGENT), then (i) the retiring Agent shall be discharged
        from any further obligation hereunder but shall remain entitled to the
        benefit of the provisions of this Clause 24 and (ii) its successor and
        each of the other parties hereto shall have the same rights and
        obligations amongst themselves as they would have had if such successor
        had been a party hereto.

24.12   OWN RESPONSIBILITY

        It is understood and agreed by each Bank that it has itself been, and
        will continue to be, solely responsible for making its own independent
        appraisal of and investigations into the financial condition,
        creditworthiness, condition, affairs, status and nature of the Borrower
        and, accordingly, each Bank warrants to the Agent that it has not relied
        and will not hereafter rely on the Agent:

              (i)    to check or enquire on its behalf into the adequacy,
                     accuracy or completeness of any information provided by the
                     Borrower in connection with the Facility Documents or the
                     transactions therein contemplated (whether or not such
                     information has been or is hereafter circulated to each
                     Bank by the Agent); or

              (ii)   to assess or keep under review on its behalf the financial
                     condition, creditworthiness, condition, affairs, status or
                     nature of the Borrower.

24.13   AGENCY DIVISION SEPARATE

        In acting as agent hereunder for the Banks, the Agent shall be regarded
        as acting through its agency division which shall be treated as a
        separate entity from any other of its divisions or departments and,
        notwithstanding the foregoing provisions of this Clause 24, any
        information received by some other division or department of the Agent
        may be treated as confidential and shall not be regarded as having been
        given to the Agent's agency division.

24.14   CONFIDENTIAL INFORMATION

        Notwithstanding anything to the contrary expressed or implied herein and
        without prejudice to the provisions of Clause 24.13 (AGENCY DIVISION
        SEPARATE), the Agent shall not as between itself and the Banks be bound
        to disclose to any Bank or other person any information which is
        supplied by Borrower to the Agent in its capacity as agent hereunder for
        the Banks and which is identified by such member of the Group at the
        time it is so supplied as being confidential information Provided that
        the consent of the Borrower to such disclosure shall not be required in
        relation to any information which in the opinion of the Agent relates to
        an Event of Default or in respect of which the Banks have given a
        confidentiality undertaking in a form satisfactory to the Agent and the
        Borrower.

<PAGE>

25.     BENEFIT OF AGREEMENT

        This Agreement shall be binding upon and enure to the benefit of each
        party hereto and its successors and permitted assigns.

26.     ASSIGNMENTS AND TRANSFERS

26.1    NO ASSIGNMENT AND TRANSFER BY THE BORROWER

        The Borrower shall not be entitled to assign or transfer all or any of
        its rights, benefits and obligations hereunder.

26.2    ASSIGNMENTS AND TRANSFERS BY BANKS

        Any Bank may at any time (and at its own cost) assign or transfer all or
        any of its rights and benefits hereunder.

26.3    ASSIGNMENTS BY BANKS

        If any Bank assigns all or any of its rights and benefits hereunder in
        accordance with Clause 26.2 (ASSIGNMENTS AND TRANSFERS BY BANKS), then,
        unless and until the assignee has agreed with the Agent and the Security
        Trustee that it shall be under the same obligations towards each of them
        as it would have been under if it had been an original party hereto as a
        Bank, the Agent and the Security Trustee shall not be obliged to
        recognise such assignee as having the rights against each of them which
        it would have had if it had been such a party hereto.

26.4    TRANSFERS BY BANKS

        If a Bank wishes to transfer all or any of its rights, benefits and/or
        obligations hereunder as contemplated in Clause 26.2 (ASSIGNMENTS AND
        TRANSFERS BY BANKS), then such transfer may be effected by the delivery
        to the Agent and the Borrower of a duly completed and duly executed
        Transfer Certificate in which event, on the later of the Transfer Date
        specified in such Transfer Certificate and the fifth business day after
        (or such earlier business day endorsed by the Agent on such Transfer
        Certificate) the date of delivery of such Transfer Certificate to the
        Agent:

              (i)    to the extent that in such Transfer Certificate such Bank
                     seeks to transfer its rights and obligations hereunder, the
                     Borrower and such Bank shall be released from further
                     obligations towards one another hereunder and their
                     respective rights against one another shall be cancelled
                     (such rights and obligations being referred to in this
                     Clause 26.4 as "DISCHARGED RIGHTS AND OBLIGATIONS"); and

              (ii)   the Borrower and the Transferee party thereto shall assume
                     obligations towards one another and/or acquire rights
                     against one another which differ from such discharged
                     rights and obligations only insofar as the Borrower and

<PAGE>

                     such Transferee have assumed and/or acquired the same in
                     place of the Borrower and such Bank;

26.5    TRANSFER FEES

        On the date upon which a transfer takes effect pursuant to this Clause
        26, the Transferee in respect of such transfer shall pay to the Agent
        for its own account a transfer fee of $500.

26.6    Any assignment or transfer which is not contemplated by the express
        provisions of this Clause 26 may only be made by a Bank with the prior
        written consent of the Borrower and in such event, the provisions of
        Clauses 26.2 (ASSIGNMENTS AND TRANSFERS BY BANKS), 26.4 (TRANSFERS BY
        BANKS) and 26.5 (TRANSFER FEES) shall apply MUTATIS MUTANDIS thereto.

26.7    DISCLOSURE OF INFORMATION

        Any Bank may, with the prior written consent of the Borrower (such
        consent not to be unreasonably withheld or delayed), disclose to any
        actual or potential assignee or to any person who may otherwise enter
        into contractual relations with such Bank in relation to this Agreement
        such information about the Borrower as such Bank and the Borrower shall
        consider appropriate.

27.     CALCULATIONS AND EVIDENCE OF DEBT

27.1    BASIS OF ACCRUAL

        Interest and commitment commission shall accrue from day to day and
        shall be calculated on the basis of a year of 360 days and the actual
        number of days elapsed.

27.2    EVIDENCE OF DEBT

        Each Bank shall maintain in accordance with its usual practice accounts
        evidencing the amounts from time to time lent by and owing to it
        hereunder; in any legal action or proceeding arising out of or in
        connection with this Agreement and other Facility Documents, the entries
        made in such accounts shall be conclusive evidence of the existence and
        amounts of the obligations of the Borrower therein recorded.

27.3    CONTROL ACCOUNTS

        The Agent shall maintain on its books a control account or accounts in
        which shall be recorded (i) the amount of the Advance made hereunder by
        the Banks, (ii) the amount of all principal, interest and other sums due
        or to become due from the Borrower to each of the Banks under the
        Facility Documents and (iii) the amount of any sum received or recovered
        by the Agent under the Facility Documents and each Bank's share therein.
        To the extent that discrepancies exist between accounts maintained by
        each Bank pursuant to clause 27.2 (EVIDENCE OF DEBT) and control
        accounts maintained by the Agent under this Clause 27.3, the control
        accounts herein maintained shall prevail.

<PAGE>

27.4    PRIMA FACIE EVIDENCE

        In any legal action or proceeding arising out of or in connection with
        this Agreement and/or any other Facility Document, the entries made in
        the accounts maintained pursuant to Clause 27.2 (EVIDENCE OF DEBT) or
        Clause 27.3 (CONTROL ACCOUNTS) shall be PRIMA FACIE evidence of the
        existence and extent of the obligations of the Borrower therein
        recorded.

27.5    CHANGE OF CIRCUMSTANCE CERTIFICATES

        A certificate of the Bank as to (a) the amount by which a sum payable to
        it hereunder is to be increased under Clause 10.1 (TAX GROSS-UP) or (b)
        the amount for the time being required to indemnify it against any such
        cost or liability as is mentioned in Clause 10.2 (TAX INDEMNITY) or 11.1
        (INCREASED COSTS) shall, in the absence of manifest error, be conclusive
        for the purposes of this Agreement and PRIMA FACIE evidence in any legal
        action or proceeding arising out of or in connection with this
        Agreement.

28.     REMEDIES AND WAIVERS

        No failure to exercise, nor any delay in exercising, on the part of the
        Agent, any Bank and the Security Trustee or any of them, any right or
        remedy hereunder shall operate as a waiver thereof, nor shall any single
        or partial exercise of any right or remedy prevent any further or other
        exercise thereof or the exercise of any other right or remedy. The
        rights and remedies herein provided are cumulative and not exclusive of
        any rights or remedies provided by law.

29.     PARTIAL INVALIDITY

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

30.     NOTICES

30.1    COMMUNICATIONS IN WRITING

        Each communication to be made hereunder shall be made in writing but,
        unless otherwise stated, may be made by telex, facsimile or letter.

30.2    COMMUNICATIONS THROUGH THE AGENT

        Each communication between the Banks and the Borrower hereunder shall
        only be effected through the Agent.

30.3    DELIVERY

        Any communication or document to be made or delivered by one party to
        the other pursuant to this Agreement shall (unless the other party has
        by three days' written notice to the one

<PAGE>

        specified another address or telex or facsimile number) be made or
        delivered to that other party at the address or telex or facsimile
        number identified with its signature below and shall be deemed to have
        been made or delivered when despatched and answerback received (in the
        case of any communication made by telex) or (in the case of any
        communication made by facsimile) when legibly received or (in the case
        of any communication made by letter) when left at that address or (as
        the case may be) ten days after being deposited in the post postage
        prepaid in an envelope addressed to it at that address Provided that:

              (i)    if any such communication or document would otherwise be
                     deemed to have been received on a day which is not a
                     business day it shall be deemed to have been received on
                     the first business day thereafter; and

              (ii)   any communication or document to be made or delivered by
                     the Borrower to each Bank shall be effective only when
                     legibly received by the Bank and then only if the same is
                     expressly marked for the attention of the department or
                     officer identified with such Bank's signature below (or
                     such other department or officer as such Bank shall from
                     time to time specify for this purpose).

30.4    ENGLISH LANGUAGE

        Each communication and document made or delivered by one party to
        another pursuant to this Agreement shall be in the English language or
        accompanied by a translation thereof into English certified (by an
        officer of the person making or delivering the same) as being a true and
        accurate translation thereof.

31.     LAW

        This Agreement shall be governed by, and construed in accordance with,
        English law.

32.     JURISDICTION

32.1    ENGLISH COURTS

        Each of the parties hereto irrevocably agrees for the benefit of the
        Agent, the Banks and the Security Trustee that the courts of England
        shall have jurisdiction 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, for such purposes, irrevocably
        submits to the jurisdiction of such courts.

32.2    APPROPRIATE FORUM

        The Borrower irrevocably waives any objection which it might now or
        hereafter have to the courts referred to in Clause 32.1 (ENGLISH COURTS)
        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 agrees not to claim that any such
        court is not a convenient or appropriate forum.

<PAGE>

32.3    SERVICE OF PROCESS

        The Borrower agrees that the process by which any suit, action or
        proceeding in England is begun may be served on it by being delivered to
        Clifford Chance Secretaries Limited at 200 Aldersgate Street, London,
        EC1A 4JJ or other of its registered offices for the time being.

32.4    NON-EXCLUSIVE SUBMISSIONS

        The submission to the jurisdiction of the courts referred to in Clause
        32.1 (ENGLISH COURTS) shall not (and shall not be construed so as to)
        limit the right of the Agent, the Banks or the Security Trustee 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.

AS WITNESS the hands of the duly authorised representatives of the parties
hereto the day and year first before written.

<PAGE>

                               THE FIRST SCHEDULE

                          CONDITION PRECEDENT DOCUMENTS

                                     PART 1

1.     In relation to the Borrower, the Shareholder, the Managing General
Partner, the Initial Charterer and the Subsequent Charterer (herein together
referred to as the "RELEVANT PARTIES"):

              (i)    a copy, certified a true copy by a duly authorised officer
                     of the Borrower, of a Board Resolution of the Borrower
                     approving the execution, delivery and performance of each
                     of the Facility Documents to which it is a party and the
                     terms and conditions thereof and authorising a named person
                     or persons to sign each of the Facility Documents;

              (ii)   a copy, certified a true copy by a duly authorised officer
                     of the Managing General Partner of the Shareholder's
                     Certificate of Registration as a Limited Partnership and
                     its Limited Partnership Agreement;

              (iii)  a copy, certified a true copy by a duly authorised officer
                     of the Relevant Party, of the constitutive documents of
                     such Relevant Party;

              (iv)   a copy, certified a true copy by a duly authorised officer
                     of the Initial Charterer, of a Board Resolution of the
                     Initial Charterer approving the execution, delivery and
                     performance of the Initial Charter and the terms and
                     conditions thereof and authorising a named person or
                     persons to sign the Initial Charter;

              (v)    a certificate of a duly authorised officer of the Borrower
                     setting out the names and signatures of the persons
                     authorised to sign, on behalf of the Borrower, each of the
                     Facility Documents and any documents to be delivered
                     pursuant thereto; and

              (vi)   a copy, certified a true copy by a duly authorised officer
                     of the Subsequent Charterer, of a Board Resolution of the
                     Subsequent Charterer approving the execution, delivery and
                     performance of the Subsequent Charter and the terms and
                     conditions thereof and authorising a named person or
                     persons to sign and deliver the Subsequent Charter;

              (vii)  a copy certified a true copy by a duly authorised officer
                     of the Borrower of the proforma opening balance sheet of
                     the Borrower evidencing its capital structure including the
                     amount of its Working Capital;

              (viii) a certificate of a duly authorised officer of the Managing
                     General Partner of the Shareholder setting out the partners
                     (both general and limited) of the Shareholder; and

              (ix)   a certificate of a duly authorised officer of the Borrower
                     certifying that the

<PAGE>

                     Shareholder is the sole Shareholder of the Borrower.

2.     A copy of the Cayman Islands Exempted Limited Partnership Law and of each
such other law, decree, consent, licence, approval, registration or declaration
as is, in the opinion of counsel to the Banks, necessary to render the Facility
Documents and the Charters legal, valid, binding and enforceable, to make them
admissible in evidence in the Cayman Islands and Liberia and to enable the
Borrower lawfully to perform its obligations under the Facility Documents.

3.     An opinion of the Banks' counsel in relation to Liberian law in a form
satisfactory to the Banks.

4.     An opinion of the Banks' Cayman Islands Counsel in a form satisfactory to
the Banks.

5.     An opinion of the Initial Charterer's internal counsel in a form
satisfactory to the Banks relating to the Initial Charter.

6.     An opinion of the Subsequent Charterer's internal counsel in a form
satisfactory to the Banks relating to the Subsequent Charter.

7.     An opinion of Clifford Chance in a form satisfactory to the Banks.

8.     Evidence that Clifford Chance Secretaries Limited has agreed to act as
the agent of the Borrower for the service of process in England.

9.     A copy, certified to be a true copy by a duly authorised officer of the
Borrower of the Memorandum of Agreement showing the purchase price of the Vessel
to be $31,000,000.

10.    A copy, certified to be a true copy by a duly authorised officer of the
Borrower of each of the Charters.

11.    Valid up-to-date class certificates from a classification society
acceptable to the Agent and showing the Vessel to be in a class acceptable to
the Agent, without extension or recommendations.

12.    Details of the manager of the Vessel and a certified true copy of the
Management Agreement in a form acceptable to the Banks.

13.    A copy of the Bill of Sale relating to the Vessel and any other documents
required to be produced by the Seller or the Borrower pursuant to the Memorandum
of Agreement.

14.    Evidence of the discharge of any existing mortgages over the Vessel.

15.    Confirmation that the technical management of the Vessel is with Universe
Tankships Bermuda Ltd.

<PAGE>

                                     PART 2

Each of the following documents duly executed by the Borrower:

1.     A first preferred Liberian ship mortgage over the Vessel granted by the
Borrower in favour of the Initial Bank in a form acceptable to the Initial Bank.

2.     An assignment of earnings and insurances agreement entered into by the
Borrower in favour of the Security Trustee to secure the Borrower's obligations
under this Agreement in a form acceptable to the Initial Bank.

3.     An assignment of the Borrower's bank accounts in a form acceptable to the
Initial Bank.

4.     A security trust deed whereby the Security Trustee agrees to hold the
benefit of the security created by the mortgage and the assignment of earnings
and insurances and the assignment of accounts referred to in paragraphs 1, 2 and
3 above on trust for the Beneficiaries named therein in a form acceptable to the
Banks.

5.     All notices to be given under the assignments referred to in 2 and 3
above.

6.     The Protocol of Delivery and Acceptance of the Vessel duly signed by the
Borrower and the Seller.

7.     Evidence that the Vessel has been accepted for service under the Initial
Charter by the Initial Charterer for a period of approximately 15 months from
Drawdown Date on terms and conditions acceptable to the Initial Bank.

8.     A Priority Agreement between the Borrower, the Initial Bank and the Agent
under this Agreement and the Agent under this Agreement and the Agent and the
lenders under the Junior Facility Agreement.

<PAGE>

                               THE SECOND SCHEDULE

                               NOTICE OF DRAWDOWN

From:   Nord Ltd.

To:     Christiania Bank og Kreditkasse ASA as Agent

Dear Sirs,

1.     We refer to the agreement (the "FACILITY AGREEMENT") dated ____ August
1997 and made between ourselves as borrower, yourselves as agent and security
trustee and the Initial Bank as defined therein. Terms defined in the Facility
Agreement shall have the same meaning in this notice.

2.     We hereby give you notice that, pursuant to the Facility Agreement and on
_____________________, we wish to borrow the amount of ________________ United
States Dollars (being an amount equal to the lesser of the amount of the
Facility Amount and 70 per cent. of the purchase price of the m/t "NORD-JAHRE
PRESIDENT" (to be renamed "STENA COMMANDER") upon the terms and subject to the
conditions contained therein.

3.     We would like the Advance to have a first Interest Period of:

        First Choice: _____________________________ months' duration.

        Second Choice:* __________________________ months' duration.

4.     We further confirm that, at the date hereof, the representations set out
in Clauses 12.1 and 12.2 of the Facility Agreement are true and that no event
which is or may become (with the passage of time, the giving of notice, the
making of any determination under the Facility Agreement or any combination
thereof) an Event of Default has occurred.

5.     The proceeds of this drawdown should be credited to our account with the
Agent's New York branch.

                                Yours faithfully

                             -----------------------
                              for and on behalf of
                                    NORD LTD.

--------------------------------------------------------------------------------
*      Only if the first choice Interest Period is twelve months.

<PAGE>

                               THE THIRD SCHEDULE

                          FORM OF TRANSFER CERTIFICATE

To:     Christiania Bank og Kreditkasse ASA (as Agent) and
        Nord Ltd.

                              TRANSFER CERTIFICATE

relating to the agreement (as from time to time amended, varied, novated or
supplemented, the "FACILITY AGREEMENT") dated [ ] whereby a US$21,000,000 loan
facility was made available to [ ] (the "BORROWER") by the Initial Bank as
defined therein in connection with which Christiania Bank og Kreditkasse ASA
acted as Agent and Security Trustee.

1.     Terms defined in the Facility Agreement shall, subject to any contrary
indication, have the same meanings herein. The terms Bank, Transferee, Bank's
Participation and Amount Transferred are defined in the schedule hereto.

2.     The Bank confirms that the Bank's Participation is an accurate summary of
its participation in the Facility Agreement and requests the Transferee to
accept and procure the transfer to the Transferee of a percentage of the Bank's
Participation (equal to the percentage that the Amount Transferred is of the
aggregate of the component amounts (as set out in the Schedule hereto) of the
Bank's Participation) by counter-signing and delivering this Transfer
Certificate to the Agent at its address for the service of notices specified in
the Facility Agreement.

3.     The Transferee hereby requests the Agent to accept this Transfer
Certificate as being delivered to the Agent pursuant to and for the purposes of
Clause 26.2 of the Facility Agreement so as to take effect in accordance with
the terms thereof on the Transfer Date or on such later date as may be
determined in accordance with the terms thereof.

4.     The Transferee warrants that it has received a copy of the Facility
Agreement together with such other information as it has required in connection
with this transaction and that it has not relied and will not hereafter rely on
the Bank to check or enquire on its behalf into the legality, validity,
effectiveness, adequacy, accuracy or completeness of any such information and
further agrees that it has not relied and will not rely on the Bank to assess or
keep under review on its behalf the financial condition, creditworthiness,
condition, affairs, status or nature of the Borrower.

5.     The Transferee hereby undertakes with the Bank and each of the other
parties to the Facility Agreement that it will perform in accordance with their
terms all those obligations which by the terms of the Facility Agreement will be
assumed by it after delivery of this Transfer Certificate to the Agent and
satisfaction of the conditions (if any) subject to which this Transfer
Certificate is expressed to take effect.

6.     The Bank makes no representation or warranty and assumes no
responsibility with respect to the legality, validity, effectiveness, adequacy
or enforceability of the Facility Agreement or any document relating thereto and
assumes no responsibility for the financial condition of the Borrower or

<PAGE>

for the performance and observance by the Borrower of any of its obligations
under the Facility Agreement or any document relating thereto and any and all
such conditions and warranties, whether express or implied by law or otherwise,
are hereby excluded.

7.     The Bank hereby gives notice that nothing herein or in the Facility
Agreement (or any document relating thereto) shall oblige the Bank to (i) accept
a re-transfer from the Transferee of the whole or any part of its rights,
benefits and/or obligations under the Facility Agreement transferred pursuant
hereto or (ii) support any losses directly or indirectly sustained or incurred
by the Transferee for any reason whatsoever including, without limitation, the
non-performance by the Borrower or any other party to the Facility Agreement (or
any document relating thereto) of its obligations under any such document. The
Transferee hereby acknowledges the absence of any such obligations under any
such document. The Transferee hereby acknowledges the absence of any such
obligation as is referred to in (i) or (ii) above.

8.     This Transfer Certificate and the rights and obligations of the parties
hereunder shall be governed by and construed in accordance with English law.

                                    SCHEDULE

1.     Bank:

2.     Transferee:

3.     Transfer Date:

4.     Bank's Participation:

       Bank's portion of the Loan:

       Bank's Commitment:

5.     Amount Transferred:

[Transferor Bank]                                     [Transferee Bank]

By:                                                   By:

Date:                                                 Date:

                                                      Address:

<PAGE>

EXECUTION PAGES

THE BORROWER

NORD LTD.

By:            PETER GEORGIOPOULOS

Address:       c/o General Maritime Corporation
               730 Fifth Avenue (15th Floor)
               New York
               NY 10019
               USA

Attention:     Peter Georgiopoulos
Tel:           (212) 698 9630
Fax:           (212) 698 9628

THE AGENT AND SECURITY TRUSTEE

CHRISTIANIA BANK OG KREDITKASSE ASA

By:            CARL ERIK STEEN

Address:       PO Box 1166
               Sentrum
               0107 Oslo
               Norway

Attention:     Shipping Department

Tel:           47 2248 5000
Fax:           47 2248 6668

<PAGE>

THE INITIAL BANK

CHRISTIANIA BANK OG KREDITKASSE ASA

By:            CARL ERIK STEEN

Address:       PO Box 1166
               Sentrum
               0107 Oslo
               Norway

Attention:     Shipping Department

Tel:           47 2248 5000
Fax:           47 2248 6668

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00017-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00017-of-00352.parquet"}]]