Document:

<PAGE>

                               DATED DECEMBER 1999

                                     BETWEEN

                                    BOSS LTD.
                               STAVANGER SUN LTD.

                                   AS BORROWER

                       CHRISTIANIA BANK OG KREDITKASSE ASA
                          AS AGENT AND SECURITY TRUSTEE

                                       AND

                                     OTHERS

   ---------------------------------------------------------------------------
                               AMENDMENT AGREEMENT
                                  RELATING TO A
                            SENIOR FACILITY AGREEMENT
                              DATED 30 OCTOBER 1997

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

                                CLIFFORD CHANCE

<PAGE>

THIS AGREEMENT is made on     December 1999

BETWEEN

(1)     BOSS LTD and STAVANGER SUN LTD., both companies duly incorporated in the
        Cayman Islands each having its registered office at 3rd Floor, CIBC
        Financial Centre, PO Box 1234, George Town, Grand Cayman, Cayman Islands
        (the "BORROWERS", and singly a "BORROWER") acting jointly and severally;

(2)     CHRISTIANIA BANK OG KREDITKASSE ASA as agent and security trustee for
        the Banks (the "AGENT"); and

(3)     THE BANKS (as defined in the Original Facility Agreement).

RECITALS

(A)     The Banks made a facility available to the Borrowers pursuant to the
        Original Facility Agreement (as defined below) on the basis of certain
        projections and covenants. The total amount outstanding under the
        Original Facility Agreement as at the date hereof is $  .

(B)     Due to restricted liquidity and the current earnings of the Vessels, the
        Banks have agreed to amend certain provisions of the Original Facility
        Agreement.

IT IS AGREED as follows.

1.      DEFINITIONS AND INTERPRETATION

1.1     DEFINITIONS
        In this Agreement:

        "AMENDED AGREEMENT" means the Original Facility Agreement, as amended by
        this Agreement.

        "EFFECTIVE DATE" means the date on which the Agent confirms to the Banks
        and the Borrower that it has received each of the documents listed in
        Schedule 1 (CONDITIONS PRECEDENT) in a form and substance satisfactory
        to the Agent.

        "ORIGINAL FACILITY AGREEMENT" means the Senior Facility Agreement dated
        30 October 1997 between the Borrowers, the Agent, and others.

1.2     INCORPORATION OF DEFINED TERMS
        Terms defined in the Original Facility Agreement shall, unless otherwise
        defined herein, have the same meaning herein and the principles of
        construction set out in the Original Facility Agreement shall have
        effect as if set out in this Agreement.

1.3     CLAUSES
        In this Agreement any reference to a "Clause" or "Schedule" is, unless
        the context otherwise requires, a reference to a Clause or Schedule
        hereof. Clause headings are for ease of reference only.

<PAGE>

2.      AMENDMENT

2.1     AMENDMENT OF THE ORIGINAL FACILITY AGREEMENT
        With effect from the Effective Date the Original Facility Agreement
        shall be amended as set out in Schedule 2 (AMENDMENTS TO ORIGINAL
        FACILITY AGREEMENT).

2.2     WAIVER
        The Finance Parties waive any Event of Default or Potential Event of
        Default which has been disclosed by the Borrower in writing to the Agent
        prior to the date hereof, PROVIDED THAT nothing herein shall affect the
        rights of the Finance Parties in respect of the occurrence of any other
        Event of Default or Potential Event of Default which has not been
        disclosed by the Borrower in writing prior to the date hereof or which
        arises on or after the date hereof.

3.      REPRESENTATIONS
        The Borrowers make the representations set out in Clause 12 of the
        Original Facility Agreement as if each reference therein to "this
        Agreement" or "the Documents" includes a reference to (a) this Agreement
        and (b) the Amended Agreement.

4.      CONTINUITY AND FURTHER ASSURANCE

4.1     CONTINUING OBLIGATIONS
        The provisions of the Facility Document shall, save as amended hereby,
        continue in full force and effect.

4.2     FURTHER ASSURANCE
        Each of the Borrowers shall, at the request of the Agent and at its own
        expense, do all such acts and things necessary or desirable to give
        effect to the amendments effected or to be effected pursuant to this
        Agreement.

5.      FEES, COSTS AND EXPENSES

5.1     RESTRUCTURING FEE
        The Borrowers shall pay to the Agent, for the account of the Banks, a
        restructuring fee in the amount of $10,000.

5.2     TRANSACTION EXPENSES
        The Borrowers shall, from time to time on demand of the Agent, reimburse
        the Agent and each of the Banks for all costs and expenses (including
        legal fees) together with any VAT thereon incurred by it in connection
        with the negotiation, preparation and execution of this Agreement, any
        other document referred to in this Agreement and the completion of the
        transactions herein contemplated.

5.3     PRESERVATION AND ENFORCEMENT OF RIGHTS
        The Borrowers shall, from time to time on demand of the Agent, reimburse
        the Finance Parties for all costs and expenses (including legal fees) on
        a full indemnity basis together with any VAT thereon incurred in or in
        connection with the preservation and/or enforcement of any of the rights
        of the Banks, the Agent or the Security Trustee under this Agreement and
        any other document referred to in this Agreement.

<PAGE>

5.4     STAMP TAXES
        The Borrowers shall pay all stamp, registration and other taxes to which
        this Agreement, any other document referred to in this Agreement or any
        judgment given in connection herewith is or at any time may be subject
        and shall, from time to time on demand of the Agent, indemnify the
        Banks, the Agent or the Security Trustee against any liabilities, costs,
        claims and expenses resulting from any failure to pay or any delay in
        paying any such tax.

6.      MISCELLANEOUS

6.1     INCORPORATION OF TERMS
        The provisions of clause 28 (REMEDIES AND WAIVER), clause 29 (PARTIAL
        INVALIDITY), clause 31 (LAW) and clause 32 (JURISDICTION) of the
        Original Facility Agreement shall be incorporated into this Agreement as
        if set out in full herein and as if references therein to "this
        Agreement" or "the Facility Documents" are references to this Agreement.

6.2     COUNTERPARTS
        This Agreement may be executed in any number of counterparts, all of
        which taken together shall constitute one and the same instrument.

7.      CONSENT UNDER PRIORITY AGREEMENT
        The Banks in their capacity as Senior Creditors under the Priority
        Agreement hereby consent to the amendment made or to be made to the
        Junior Facility Agreement pursuant to an amendment agreement dated the
        date hereof.

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

<PAGE>

                                   SCHEDULE 1

                              CONDITIONS PRECEDENT

1.      In relation to each Borrower:

        (a)     a copy, certified as at the date of this Agreement a true and
                up-to-date copy by a duly authorised officer of such Borrower,
                certifying that, as at the date hereof, there has been no change
                to the constitutional documents delivered by such Borrower
                pursuant to the Original Facility Agreement;

        (b)     a copy, certified as at the date of this Agreement a true and
                up-to-date copy by an a duly authorised officer of a board
                resolution of such Borrower approving the execution, delivery
                and performance of this Agreement and the terms and conditions
                hereof and authorising a named person or persons to sign this
                Agreement and any documents to be delivered by such Borrower
                pursuant hereto; and

        (c)     a certificate of an duly authorised officer of such Borrower
                setting out the names and signatures of the persons authorised
                to sign, on behalf of such Borrower, this Agreement and any
                documents to be delivered by such Borrower pursuant hereto.

2.      A copy, certified a true copy by or on behalf of each Borrower, of each
        such law, decree, consent, licence, approval, registration or
        declaration as is, in the opinion of counsel to the Banks, necessary to
        render this Agreement legal, valid, binding and enforceable, to make
        this Agreement admissible in evidence in each Borrower's jurisdiction of
        incorporation and to enable each Borrower to perform its obligations
        hereunder.

3.      An opinion of the Banks' Counsel in the jurisdiction of incorporation of
        each Borrower and the jurisdiction of the flag of the Vessels
        satisfactory in form and substance to the Agent and in substantially the
        form distributed to the Banks prior to the signing of this Agreement.

4.      Evidence satisfactory to the Banks that the partners in the limited
        partnership Stavanger Sun Ltd. have made an additional capital
        contribution of a minimum of $1,250,000 which has been paid into Boss
        Ltd's Earnings Account, $825,000 (or such other amount as agreed between
        the Borrowers and the Banks) of which will be paid into Boss Ltd's
        Retention Account and may be released only for application in or towards
        the imminent dry docking expenses to be incurred in respect of MT
        Stavanger Sun, $175,000 (or such other amount as agreed between the
        Borrowers and the Banks) of which will remain in Boss Ltd's Earnings
        Account and $250,000 of which will be applied (in such proportions as
        the Agent shall require) in part payment of the repayment instalments
        due on 30 October 1998, 30 April 1999 and 31 July 1999 under the
        Original Facility Agreement.

5.      Evidence satisfactory to the Banks that the partners in the limited
        partnership Boss Ltd. have made an additional capital contribution of a
        minimum of $1,250,000 which has

<PAGE>

        been paid into Boss Ltd's Earnings Account, $650,000 (or such other
        amount as agreed between the Borrowers and the Banks) of which will be
        paid into Boss Ltd's Retention Account and may be released only for
        application in or towards the imminent dry docking expenses to be
        incurred in respect of the MT Boss $350,000 (or such other amount as
        agreed between the Borrowers and the Banks) of which will remain in Boss
        Ltd's Earnings Account and $250,000 of which will be applied (in such
        proportions as the Agent shall require) in part payment of the repayment
        instalments due on 30 October 1998, 30 April 1999 and 31 April 1999
        under the Original Facility Agreement.

6.      Payment of the restructuring fee pursuant to Clause 5.1 and the Banks'
        legal fees pursuant to Clause 5.2.

<PAGE>

                                   SCHEDULE 2

                    AMENDMENTS TO ORIGINAL FACILITY AGREEMENT

1.      The definition of "MARGIN" at clause 1.1 of the Original Facility
        Agreement shall be amended to read as follows:

        "MARGIN" means:

        (i)     for any period during which the ratio of the Fair Market Value
                of the Vessels to the Loan under Clause 14.1 is less than 140%,
                one and five eighth per cent (15/8%) per annum; and

        (ii)    at any other time, one and one quarter per cent (1 1/4%) per
                annum.

2.      Clause 9.1 (REPAYMENT) shall be amended such that from where Repayment
        Date No. 8 appears in the current table onwards, shall be replaced with
        the following:

<TABLE>
<CAPTION>

         ------------------------- ----------------------- ----------------------- ------------------------
            REPAYMENT DATE NO.         REPAYMENT DATE            ADVANCE 1                ADVANCE 2
         ------------------------- ----------------------- ----------------------- ------------------------
<S>                                <C>                     <C>                     <C>
         8                         OCT. 99                 450,000                 450,000
         ------------------------- ----------------------- ----------------------- ------------------------
         9                         JAN. 00                 200,000                 200,000
         ------------------------- ----------------------- ----------------------- ------------------------
         10                        APR. 00                 200,000                 200,000
         ------------------------- ----------------------- ----------------------- ------------------------
         11                        JUL. 00                 200,000                 200,000
         ------------------------- ----------------------- ----------------------- ------------------------
         12                        OCT. 00                 200,000                 200,000
         ------------------------- ----------------------- ----------------------- ------------------------
         13                        JAN. 01                 650,000                 650,000
         ------------------------- ----------------------- ----------------------- ------------------------
         14                        APR. 01                 650,000                 650,000
         ------------------------- ----------------------- ----------------------- ------------------------
         15                        JUL. 01                 650,000                 650,000
         ------------------------- ----------------------- ----------------------- ------------------------
         16                        OCT. 01                 650,000                 650,000
         ------------------------- ----------------------- ----------------------- ------------------------
         17                        JAN. 02                 700,000                 700,000
         ------------------------- ----------------------- ----------------------- ------------------------
         18                        APR. 02                 700,000                 700,000
         ------------------------- ----------------------- ----------------------- ------------------------
         19                        JUL. 02                 700,000                 700,000
         ------------------------- ----------------------- ----------------------- ------------------------
         20                        OCT. 02                 6,500,000 together      6,500,000 together
                                                           with any other          with any other amounts
                                                           amounts then            then outstanding  under
                                                           outstanding under       this Agreement
                                                           this Agreement
         ------------------------- ----------------------- ----------------------- ------------------------
</TABLE>

<PAGE>

        In addition, the Agent shall on each of the above Repayment Dates apply
        from the Retention Account the Senior Excess Cash Amount (as defined in
        Clause 9.7 below) which has been paid into that account in accordance
        with Clause 9.7. The provisions of this Clause shall, until the parties
        otherwise agree, override the provisions of Clauses 11.1 and 11.2 of the
        Assignments of Insurances and Earnings dealing with the application of
        amounts standing to the credit of the Retention Account.

        A new Clause 9.7 shall be added as follows:

        On the last date of each of the Borrower's financial quarters there
        shall be transferred from each Borrower's Earnings Account to that
        Borrower's Retention Account an amount (the "EXCESS CASH AMOUNT") being
        equal to the amount by which (a) the aggregate amount of cash standing
        to the credit of that Borrower's Earnings Account exceeds (b) the
        aggregate of (i) $500,000 (in aggregate for the Borrowers) and (ii) the
        next scheduled repayment of instalments and interest payable by the
        Borrowers under the Senior Facility Agreement.

        The Excess Cash Amount shall until the Repayment Compliance Date be
        applied firstly towards the instalments due under the Senior Facility
        Agreement in inverse order of maturity (such amount so applied being the
        "SENIOR EXCESS CASH AMOUNT") and secondly towards accrued non-paid
        interest under the Junior Facility Agreement (and, in each case, pro
        rata in respect of each Advance). After the Repayment Compliance Date
        the total amount of the Excess Cash Amount shall be applied towards
        accrued non-paid interest under the Junior Facility Agreement (pro rata
        in respect of each Advance).

        For the purposes of this Clause 9.7 "REPAYMENT COMPLIANCE DATE" means
        the date upon which the principal amount of the Loan is equal to the
        principal amount of the Loan that would have been outstanding had the
        Borrowers complied with the repayment schedule under the Original
        Facility Agreement.

3.      A new Clause 13.7 shall be added as follows:

        "13.7   OTHER INFORMATION

                Each Borrower shall provide, at such intervals and in such form
                as the Agent may from time to time require, reports on its
                liquidity and working capital status including any unforeseen
                revenue or expenses"

4.      The reference at clause 14.1 (FAIR MARKET VALUE OF VESSELS) of the
        Original Facility Agreement to the Fair Market Value of the Vessels
        being at least 140% of the Loan shall be amended such that the Borrowers
        shall be obliged to meet the following ratios during the following
        periods:

<TABLE>
<CAPTION>

        PERIOD                                                RATIO
<S>                                                           <C>
        From the date of this Agreement to 30 June 2000       100%

        From 1 July 2000 to 31 December 2000                  110%

<PAGE>

        Thereafter                                            140%
</TABLE>

5.      Clause 14.2 shall be deleted and replaced with the following:

        "FREE CASH BALANCE

        The Borrowers shall between them maintain at all times a Free Cash
        Balance of an amount in dollars equal to the Minimum Amount".

6.      Clause 14.4 shall be deleted and replaced with the following:

        "For the purposes of Clause 14.2

        "FREE CASH BALANCE" means at any relevant time the aggregate of all
        dollar denominated sums standing to the credit of the Borrowers'
        respective Earnings Account including any prepaid Earnings, but less any
        capital (being the amount of any repayment instalment, together with
        interest, due on the next Repayment Date) and operating costs (including
        docking costs) as reflected in the Borrowers' latest financial
        statements delivered to the Agent pursuant to Clause 13 (INFORMATION
        COVENANTS) for the period to which such prepaid Earnings relate.

        "EARNINGS" has the meaning given to it in the Assignments of Earnings
        and Insurances.

        "MINIMUM AMOUNT" means, subject to the proviso below;

        (i)     when both Vessels are employed under an Existing Time Charter,
                $500,000;

        (ii)    when one Vessel is employed under an Existing Time Charter,
                $750,000; and

        (iii)   when neither Vessel is employed under an Existing Time Charter,
                $1,000,000 provided always that until 31 December 2000, the
                Minimum Amount shall, in any event, be $500,000.

        "EXISTING TIME CHARTER" means any time charter which is continuing in
        full force and effect and under which both parties are continuing to
        fulfil their obligations as and when they fall due."

<PAGE>

                                   SIGNATURES

                                  THE BORROWERS

BOSS LTD.

By:

STAVANGER SUN LTD.

By:

THE AGENT

CHRISTIANIA BANK OG KREDITKASSE ASA

By:

THE SECURITY TRUSTEE

CHRISTIANIA BANK OG KREDITKASSE ASA

By:

THE BANKS

CHRISTIANIA BANKS OG KREDITKASSE ASA

By:

<PAGE>

UNION BANK OF NORWAY

By:

SKANDINAVISKA ENSKILDA BANKEN

By:<PAGE>

                               DATED DECEMBER 1999

                                     BETWEEN

                                    BOSS LTD.
                               STAVANGER SUN LTD.
                                   AS BORROWER

                       CHRISTIANIA BANK OG KREDITKASSE ASA
                          AS AGENT AND SECURITY TRUSTEE

                                       AND

                                     OTHERS

   ---------------------------------------------------------------------------
                               AMENDMENT AGREEMENT
                                  RELATING TO A
                            JUNIOR FACILITY AGREEMENT
                              DATED 30 OCTOBER 1997
   ---------------------------------------------------------------------------

                                CLIFFORD CHANCE

<PAGE>

THIS AGREEMENT is made on   December 1999

BETWEEN

(1)     BOSS LTD and STAVANGER SUN LTD., both companies duly incorporated in the
        Cayman Islands each having its registered office at 3rd Floor, CIBC
        Financial Centre, PO Box 1234, George Town, Grand Cayman, Cayman Islands
        (the "BORROWERS", and singly a "BORROWER") acting jointly and severally;

(2)     CHRISTIANIA BANK OG KREDITKASSE ASA as agent and security trustee for
        the Banks (the "AGENT"); and

(3)     THE BANKS (as defined in the Original Facility Agreement).

RECITALS

(A)     The Banks made a facility available to the Borrowers pursuant to the
        Original Facility Agreement (as defined below) on the basis of certain
        projections and covenants. The total amount outstanding under the
        Original Facility Agreement as at the date hereof is $ .

(B)     Due to restricted liquidity and the current earnings of the Vessels, the
        Banks have agreed to amend certain provisions of the Original Facility
        Agreement.

IT IS AGREED as follows.

1.      DEFINITIONS AND INTERPRETATION

1.1     DEFINITIONS
        In this Agreement:

        "AMENDED AGREEMENT" means the Original Facility Agreement, as amended by
        this Agreement.

        "EFFECTIVE DATE" means the date on which the Agent confirms to the Banks
        and the Borrower that it has received each of the documents listed in
        Schedule 1 (CONDITIONS PRECEDENT) in a form and substance satisfactory
        to the Agent.

        "ORIGINAL FACILITY AGREEMENT" means the Junior Facility Agreement dated
        30 October 1997 between the Borrowers, the Agent, and others.

1.2     INCORPORATION OF DEFINED TERMS
        Terms defined in the Original Facility Agreement shall, unless otherwise
        defined herein, have the same meaning herein and the principles of
        construction set out in the Original Facility Agreement shall have
        effect as if set out in this Agreement.

1.3     CLAUSES
        In this Agreement any reference to a "Clause" or "Schedule" is, unless
        the context otherwise requires, a reference to a Clause or Schedule
        hereof. Clause headings are for ease of reference only.

<PAGE>

2.      AMENDMENT

2.1     AMENDMENT OF THE ORIGINAL FACILITY AGREEMENT

        With effect from the Effective Date the Original Facility Agreement
        shall be amended as set out in Schedule 2 (AMENDMENTS TO ORIGINAL
        FACILITY AGREEMENT).

2.2     WAIVER

        The Finance Parties waive any Event of Default or Potential Event of
        Default which has been disclosed by the Borrower in writing to the Agent
        prior to the date hereof, PROVIDED THAT nothing herein shall affect the
        rights of the Finance Parties in respect of the occurrence of any other
        Event of Default or Potential Event of Default which has not been
        disclosed by the Borrower in writing prior to the date hereof or which
        arises on or after the date hereof.

3.      REPRESENTATIONS

        The Borrowers make the representations set out in Clause 12 of the
        Original Facility Agreement as if each reference therein to "this
        Agreement" or "the Documents" includes a reference to (a) this Agreement
        and (b) the Amended Agreement.

4.      CONTINUITY AND FURTHER ASSURANCE

4.1     CONTINUING OBLIGATIONS

        The provisions of the Facility Document shall, save as amended hereby,
        continue in full force and effect.

4.2     FURTHER ASSURANCE

        Each of the Borrowers shall, at the request of the Agent and at its own
        expense, do all such acts and things necessary or desirable to give
        effect to the amendments effected or to be effected pursuant to this
        Agreement.

5.      FEES, COSTS AND EXPENSES

5.1     RESTRUCTURING FEE

        The Borrowers shall pay to the Agent, for the account of the Banks, a
        restructuring fee in the amount of $10,000.

5.2     TRANSACTION EXPENSES

        The Borrowers shall, from time to time on demand of the Agent, reimburse
        the Agent and each of the Banks for all costs and expenses (including
        legal fees) together with any VAT thereon incurred by it in connection
        with the negotiation, preparation and execution of this Agreement, any
        other document referred to in this Agreement and the completion of the
        transactions herein contemplated.

5.3     PRESERVATION AND ENFORCEMENT OF RIGHTS

        The Borrowers shall, from time to time on demand of the Agent, reimburse
        the Finance Parties for all costs and expenses (including legal fees) on
        a full indemnity basis together with any VAT thereon incurred in or in
        connection with the preservation and/or enforcement of any of the rights
        of the Banks, the Agent or the Security Trustee under this Agreement and
        any other document referred to in this Agreement.

<PAGE>

5.4     STAMP TAXES

        The Borrowers shall pay all stamp, registration and other taxes to which
        this Agreement, any other document referred to in this Agreement or any
        judgment given in connection herewith is or at any time may be subject
        and shall, from time to time on demand of the Agent, indemnify the
        Banks, the Agent or the Security Trustee against any liabilities, costs,
        claims and expenses resulting from any failure to pay or any delay in
        paying any such tax.

6.      MISCELLANEOUS

6.1     INCORPORATION OF TERMS

        The provisions of clause 28 (REMEDIES AND WAIVER), clause 29 (PARTIAL
        INVALIDITY), clause 31 (LAW) and clause 32 (JURISDICTION) of the
        Original Facility Agreement shall be incorporated into this Agreement as
        if set out in full herein and as if references therein to "this
        Agreement" or "the Facility Documents" are references to this Agreement.

6.2     COUNTERPARTS

        This Agreement may be executed in any number of counterparts, all of
        which taken together shall constitute one and the same instrument.

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

<PAGE>

                                   SCHEDULE 1
                              CONDITIONS PRECEDENT

1.      In relation to each Borrower:

        (a)     a copy, certified as at the date of this Agreement a true and
                up-to-date copy by a duly authorised officer of such Borrower,
                certifying that, as at the date hereof, there has been no change
                to the constitutional documents delivered by such Borrower
                pursuant to the Original Facility Agreement;

        (b)     a copy, certified as at the date of this Agreement a true and
                up-to-date copy by an a duly authorised officer of a board
                resolution of such Borrower approving the execution, delivery
                and performance of this Agreement and the terms and conditions
                hereof and authorising a named person or persons to sign this
                Agreement and any documents to be delivered by such Borrower
                pursuant hereto; and

        (c)     a certificate of a duly authorised officer of such Borrower
                setting out the names and signatures of the persons authorised
                to sign, on behalf of such Borrower, this Agreement and any
                documents to be delivered by such Borrower pursuant hereto.

2.      A copy, certified a true copy by or on behalf of each Borrower, of each
        such law, decree, consent, licence, approval, registration or
        declaration as is, in the opinion of counsel to the Banks, necessary to
        render this Agreement legal, valid, binding and enforceable, to make
        this Agreement admissible in evidence in each Borrower's jurisdiction of
        incorporation and to enable each Borrower to perform its obligations
        hereunder.

3.      An opinion of the Banks' Counsel in the jurisdiction of incorporation of
        each Borrower and the jurisdiction of the flag of the Vessels
        satisfactory in form and substance to the Agent and in substantially the
        form distributed to the Banks prior to the signing of this Agreement.

4.      Evidence satisfactory to the Banks that the partners in the limited
        partnership Stavanger Sun Ltd. have made an additional capital
        contribution of a minimum of $1,250,000 which has been paid into Boss
        Ltd's Earnings Account, $825,000 (or such other amount as agreed between
        the Borrowers and the Banks) of which will be paid into Boss Ltd's
        Retention Account and may be released only for application in or towards
        the imminent dry docking expenses to be incurred in respect of MT
        Stavanger Sun, $175,000 (or such other amount as agreed between the
        Borrowers and the Banks) of which will remain in Boss Ltd's Earnings
        Account and $250,000 of which will be applied (in such proportions as
        the Agent shall require) in part payment of the repayment instalments
        due on 30 October 1998, 30 April 1999 and 31 July 1999 under the Senior
        Facility Agreement.

5.      Evidence satisfactory to the Banks that the partners in the limited
        partnership Boss Ltd. have made an additional capital contribution of a
        minimum of $1,250,000 which has

<PAGE>

        been paid into Boss Ltd's Earnings Account, $650,000 (or such other
        amount as agreed between the Borrowers and the Banks) of which will be
        paid into Boss Ltd's Retention Account and may be released only for
        application in or towards the imminent dry docking expenses to be
        incurred in respect of the MT Boss, $350,000 (or such other amount as
        agreed between the Borrowers and the Banks) of which will remain in Boss
        Ltd's Earnings Account and $250,000 of which will be applied (in such
        proportions as the Agent shall require) in part payment of the repayment
        instalments due on 30 October 1998, 30 April 1999 and 31 April 1999
        under the Senior Facility Agreement.

6.      Payment of the restructuring fee pursuant to Clause 5.1 and the Banks'
        legal fees pursuant to Clause 5.2.

<PAGE>

                                   SCHEDULE 2

                    AMENDMENTS TO ORIGINAL FACILITY AGREEMENT

1.      The definition of "MARGIN" at clause 1.1 of the Original Facility
        Agreement shall be amended to read as follows:

        "MARGIN" means:

        (i)     for any period during which the ratio of the Fair Market Value
                of the Vessels to the Loan under the Senior Facility Agreement
                is less than 140%, three and one quarter per cent (3 1/4%) per
                annum; and

        (ii)    at any other time, three per cent (3%) per annum.

2.      The reference to the various percentages in clause 9.4 (PREPAYMENT FEE)
        shall be deleted and replaced as follows:

2.1     in clause 9.4(b) "5.5%" shall be replaced with "6.5%";

2.2     in clause 9.4(c) "4.0%" shall be replaced with "5.0%";

2.3     in clause 9.4(d) "2.5%" shall be replaced with "3.5%"; and

2.4     in clause 9.4(e) "1.0%" shall be replaced with "2.0%".

3.      A new clause 8.3 shall be added as follows:

        (a)     The Excess Cash Amount as defined in Clause 9.7 of the Senior
                Facility Agreement shall be applied towards accrued non-paid
                interest under this Agreement.

        (b)     If at any time prior to 31 December 2000, there is insufficient
                Excess Cash Amount to pay the total amount of accrued interest
                due at the end of that Interest Period, the accrued non-paid
                interest at the end of that Interest Period shall roll-up and be
                added to and form part of the principal amount of the Advance
                for the next Interest Period.

        (c)     On and from 31 December 2000 there shall be no rolling-up of
                interest and each Borrower shall pay interest on the Loan in
                accordance with Clause 8.1."

4.      A new clause 13.7 shall be added as follows:

        "13.7   OTHER INFORMATION

                Each Borrower shall provide at such intervals and in such form
                as the Agent may from time to time require, reports on its
                liquidity and working capital status including any unforeseen
                revenue or expenses."

5.      The reference at clause 14.1 (FAIR MARKET VALUE OF VESSELS) of the
        Original Facility Agreement to the Fair Market Value of the Vessels
        being at least 140% of the Loan

<PAGE>

        under the Senior Facility Agreement shall be amended such that the
        Borrowers shall be obliged to meet the following ratios during the
        following periods:

<TABLE>
<CAPTION>

        Period                                                Ratio
<S>                                                           <C>
        From the date of this Agreement to 30 June 2000       100%

        From 1 July 2000 to 31 December 2000                  110%

        Thereafter                                            140%
</TABLE>

6.      Clause 14.2 shall be deleted and replaced with the following:

        "FREE CASH BALANCE

        The Borrowers shall between them maintain at all times a Free Cash
        Balance of an amount in dollars equal to the Minimum Amount".

7.      Clause 14.4 shall be deleted and replaced with the following:

        "For the purposes of Clause 14.2

        "FREE CASH BALANCE" means at any relevant time the aggregate of all
        dollar denominated sums standing to the credit of the Borrowers'
        respective Earnings Account including any prepaid Earnings, but less any
        capital (being the amount of any repayment instalment, together with
        interest, due on the next Repayment Date) and operating costs (including
        docking costs) as reflected in the Borrowers' latest financial
        statements delivered to the Agent pursuant to Clause 13 (INFORMATION
        COVENANTS) for the period to which such prepaid Earnings relate.

        "EARNINGS" has the meaning given to it in the Assignments of Earnings
        and Insurances.

        "MINIMUM AMOUNT" means, subject to the proviso below;

        (i)     when both Vessels are employed under an Existing Time Charter,
                $500,000;

        (ii)    when one Vessel is employed under an Existing Time Charter,
                $750,000; and

        (iii)   when neither Vessel is employed under an Existing Time Charter,
                $1,000,000 provided always that until 31 December 2000, the
                Minimum Amount shall, in any event, be $500,000.

        "EXISTING TIME CHARTER" means any time charter which is continuing in
        full force and effect and under which both parties are continuing to
        fulfil their obligations as and when they fall due."

<PAGE>

                                   SIGNATURES

                                  THE BORROWERS

BOSS LTD.

By:

STAVANGER SUN LTD.

By:

THE AGENT

CHRISTIANIA BANK OG KREDITKASSE ASA

By:

THE SECURITY TRUSTEE

CHRISTIANIA BANK OG KREDITKASSE ASA

By:

THE BANKS

CHRISTIANIA BANKS OG KREDITKASSE ASA

By:

FOKUS BANK ASA

By:

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"}]]