Document:

(FORM OF
LIMITED PARTNER UNIT CERTIFICATE – FRONT SIDE)

    

    SEE
RESTRICTIONS ON TRANSFER ON REVERSE SIDE HEREOF

    

    
      
        	
                CERTIFICATE
      NUMBER

              	
                LIMITED
      PARTNER UNITS

              
	
                __-_____

              	
                _____ CLASS __                   
      

              

      

    

    

    ORGANIZED
UNDER THE LAWS OF THE CAYMAN ISLANDS

    III
to I Maritime Partners Cayman I, L.P.

    

    THIS
CERTIFIES that _______________ is the owner of _______ Class __ Limited Partner
Units of III to I Maritime Partners Cayman I, L.P., a Cayman Island
Partnership.

    

    
      
        	
                III
      to I International Maritime Solutions Cayman, Inc.

              
	
                General
      Partner

              
	 
      	 
      
	
                By:

              	 
      
	 
      	
                Director

              

      

    

    

    (Date)

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    (FORM OF
LIMITED PARTNER 

    UNIT
CERTIFICATE – REVERSE 

    SIDE)

    

    
      
        
          	
                  THE
      ISSUANCE OF THE UNITS WERE NOT REGISTERED OR QUALIFIED UNDER THE
      SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES
      LAWS.  ACCORDINGLY, SUCH UNITS MAY NOT BE OFFERED, SOLD,
      PLEDGED, ASSIGNED OR OTHERWISE TRANSFERRED UNLESS (I) THAT TRANSACTION HAS
      BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND
      QUALIFIED UNDER ANY APPLICABLE STATE SECURITIES LAWS OR (II) THE
      REGISTERED HOLDER OF THIS CERTIFICATE HAS PROVIDED THE PARTNERSHIP WITH AN
      OPINION OF COUNSEL (WHICH COUNSEL AND OPINION MUST BE REASONABLY
      ACCEPTABLE TO THE PARTNERSHIP) OR OTHER EVIDENCE REASONABLY SATISFACTORY
      TO THE PARTNERSHIP THAT THE TRANSACTION IS EXEMPT FROM REGISTRATION AND
      QUALIFICATION.

                	 
      	
                  Certificate

                   

                  FOR

                   

                  _________

                  Limited
      Partner Units

                  Class
      ___

                   

                  ISSUED
      TO

                  ___________________________

                      
      

                  DATED

                  ____________

                   

                	 
      	
                  THE
      TRANSFER OR OTHER DISPOSITION OF THE UNITS REPRESENTED BY THIS CERTIFICATE
      IS RESTRICTED PURSUANT TO THE AGREEMENT OF LIMITED PARTNERSHIP OF THE
      PARTNERSHIP, AS AMENDED.  A COPY OF THE AGREEMENT CAN BE
      OBTAINED FROM THE PARTNERSHIP OR VIEWED AT ITS PRINCIPAL PLACE OF
      BUSINESS.LOAN,
      GUARANTEE FACILITY AND

            	 
      	
              /Ehlermann

            
	
              CREDIT
      FACILITY AGREEMENT

            	 
      	
              Rindfleisch

            
	 
      	 
      	
              Gadow
      Logo/

            

    

    DATED
   December
19  , 2008

    

    

    12
A.H.T.S. Vessels

    built
by Fincantieri Cantieri Navali S.p.A.

    

    

    

    

    

    

    NORDDEUTSCHE
LANDESBANK GIROZENTRALE

    as
Lender, Mandated Lead Arranger and Agent

    

    THE
LENDERS

    AS
MORE CLOSELY DESCRIBED HEREIN

    as
lenders

    

    and

    

    THE
TWELVE LIMITED PARTNERSHIPS

    AS
MORE CLOSELY DESCRIBED HEREIN

    as
jointly and severally liable Borrowers

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    THIS
LOAN, GUARANTEE FACILITY AND CREDIT FACILITY AGREEMENT (THE “AGREEMENT”) IS MADE
THIS 19 DAY OF
December , 2008
between

     

    
      	
              (1)

            	
              NORDDEUTSCHE
      LANDESBANK GIROZENTRALE, a banking institution organized and existing
      under the laws of the Federal Republic of Germany, having its registered
      offices at Friedrichswall 10, 30159 Hannover, Germany, (sometimes
      “NORD/LB” or the “Mandated Lead Arranger” or the “Agent”, as the case may
      be), and

            

    

     

    
      	
              (2)

            	
              The
      Lenders set forth in Schedule 1 attached hereto (the
      “Lenders”)

            

    

     

    on the one part,

     

    and

     

    
      	
              (3)

            	
              ATL
      OFFSHORE GMBH & CO. MS “JUIST” KG, (the “Borrower
  1”)

            

    

     

    
      	
              (4)

            	
              ATL
      OFFSHORE GMBH & CO. MS “NORDERNEY” KG, (the “Borrower
    2”)

            

    

     

    
      	
              (5)

            	
              ATL
      OFFSHORE GMBH & CO. “ISLE OF BALTRUM” KG, (the “Borrower
      3”)

            

    

     

    
      	
              (6)

            	
              ATL
      OFFSHORE GMBH & CO. “ISLE OF LANGEOOG” KG, (the “Borrower
      4”)

            

    

     

    
      	
              (7)

            	
              ATL
      OFFSHORE GMBH & CO. “ISLE OF AMRUM” KG, (the “Borrower
    5”)

            

    

     

    
      	
              (8)

            	
              ATL
      OFFSHORE GMBH & CO. “ISLE OF SYLT” KG, (the “Borrower
    6”)

            

    

     

    
      	
              (9)

            	
              ATL
      OFFSHORE GMBH & CO. “ISLE OF WANGEROOGE” KG, (the “Borrower
      7”)

            

    

     

    
      	
              (10)

            	
              ATL
      OFFSHORE GMBH & CO. “ISLE OF NEUWERK” KG, (the “Borrower
      8”)

            

    

     

    
      	
              (11)

            	
              ATL
      OFFSHORE GMBH & CO. “ISLE OF USEDOM” KG, (the “Borrower
      9”)

            

    

     

    
      	
              (12)

            	
              ATL
      OFFSHORE GMRH & CO. “ISLE OF FEHMARN” KG. (the “Borrower
      10”)

            

    

     

    
      	
              (13)

            	
              ATL
      OFFSHORE GMBH & CO. “ISLE OF MEMMERT” KG, (the “Borrower
      11”)

            

    

     

    
      	
              (14)

            	
              ATL
      OFFSHORE GMBH & CO. “ISLE OF MELLUM” KG, (the “Borrower
      12”)

            

    

     

    each of
them a limited partnership incorporated and existing under the laws of the
Federal Republic of Germany having its registered office at Neue Str. 24, 26789
Leer, Germany (collectively the “Borrowers”, and each one of them a “Borrower”),
as jointly and severally liable borrowers on the other part.

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    
      PREAMBLE

       

      
        	
                I.

              	
                ATL
      OFFSHORE GMBH of Leer, Germany (the “General Partner”) has entered into
      ten (10) building contracts with FINCANTIERI CANTIERI NAVALI ITALIANI
      S.P.A. of Via Cipro, 11, 16129 Genoa, Italy (the “Builder”), pursuant to
      the terms of which it has ordered the construction and delivery of ten
      (10) A.H.T.S. newbuilding type Moss 424, 16,000 bhp, bearing the Builder’s
      hull nos. 6160, 6161, 6168, 6169, 6171, 6172, 6173, 6174, 6175 and 6176,
      respectively, as more closely described
herein.

              

      

       

      
        	
                II.

              	
                The
      Borrower 3 has entered into one (1) building contract with the Builder,
      pursuant to the terms of which it has ordered the construction and
      delivery of one (1) A.H.T.S. newbuilding type Moss 424, 16,000 bhp,
      bearing the Builder’s hull no. 6162, as more closely described
      herein.

              

      

       

      
        	
                III.

              	
                The
      Borrower 4 has entered into one (1) building contract with the Builder,
      pursuant to the terms of which it has ordered the construction and
      delivery of one (1) A.H.T.S. newbuilding type Moss 424, 16,000 bhp,
      bearing the Builder’s hull no. 6163, as more closely described
      herein.

              

      

       

      
        	
                IV.

              	
                Pursuant
      to the terms and conditions of ten (10) deeds of assignment made or to be
      made, as the case may be, between the General Partner, the Builder and the
      Borrowers (1), (2) and (5)-(12), respectively, the General Partner has
      transferred or will transfer, as the case may be, the Building Contracts
      to and in favour of the Borrowers.

              

      

       

      
        	
                V.

              	
                Upon
      request of the Borrowers, the Lenders are ready under the terms and
      conditions of this Agreement, to grant to the Borrowers the loans and
      tranches as more closely described herein and in Schedule 2 attached
      hereto for the purposes of (i) assisting them in financing the acquisition
      cost of the newbuildings described in Recital I, (ii) issuing certain
      payment guarantees to the Builder and (iii) enabling them to postpone part
      of the repayment of the post-delivery loan to be granted hereunder, all as
      more closely described herein.

              

      

       

      NOW
THEREFORE the parties hereto agree as follows:

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

      CONTENTS

       

      
        
          
            
              
                	
                        1

                      	
                        DEFINITIONS

                      	
                        4

                      
	
                        2

                      	
                        PURPOSE
      OF THE LOANS

                      	
                        17

                      
	
                        3

                      	
                        DRAWDOWN
      OF THE TRANCHES

                      	
                        17

                      
	
                        4

                      	
                        LENDERS’
      PARTICIPATION AND LIABILITY, BORROWERS’ LIABILITY

                      	
                        18

                      
	
                        5

                      	
                        AVAILABILITY

                      	
                        18

                      
	
                        6

                      	
                        FEES
      AND COMMISSIONS

                      	
                        19

                      
	
                        7

                      	
                        INTEREST

                      	
                        20

                      
	
                        8

                      	
                        REPAYMENT

                      	
                        22

                      
	
                        9

                      	
                        VOLUNTARY
      AND MANDATORY PREPAYMENT

                      	
                        24

                      
	
                        10

                      	
                        PAYMENTS

                      	
                        25

                      
	
                        11

                      	
                        SUBSTITUTE
      RATE AND SUBSTITUTE BASIS

                      	
                        27

                      
	
                        12

                      	
                        SECURITY

                      	
                        29

                      
	
                        13

                      	
                        INSURANCES

                      	
                        30

                      
	
                        14

                      	
                        ENVIRONMENTAL
      MATTERS

                      	
                        33

                      
	
                        15

                      	
                        CHANGE
      OF CIRCUMSTANCES

                      	
                        35

                      
	
                        16

                      	
                        BASEL
      II

                      	
                        37

                      
	
                        17

                      	
                        REPRESENTATIONS
      AND WARRANTIES

                      	
                        37

                      
	
                        18

                      	
                        ASSET
      PROTECTION

                      	
                        41

                      
	
                        19

                      	
                        UNDERTAKINGS

                      	
                        42

                      
	
                        20

                      	
                        BAREBOAT
      REGISTRATION

                      	
                        48

                      
	
                        21

                      	
                        ACCOUNTS

                      	
                        48

                      
	
                        22

                      	
                        EVENTS
      OF DEFAULT

                      	
                        49

                      
	
                        23

                      	
                        ASSIGNMENT,
      TRANSFER AND SYNDICATION

                      	
                        51

                      
	
                        24

                      	
                        APPLICABLE
      LAW, JURISDICTION

                      	
                        53

                      
	
                        25

                      	
                        JUDGEMENT
      CURRENCY

                      	
                        53

                      
	
                        26

                      	
                        WAIVERS

                      	
                        53

                      
	
                        27

                      	
                        INVALIDITY

                      	
                        53

                      
	
                        28

                      	
                        SURVIVAL

                      	
                        54

                      
	
                        29

                      	
                        EFFECTUATION

                      	
                        54

                      
	
                        30

                      	
                        LANGUAGE

                      	
                        54

                      
	
                        31

                      	
                        COSTS
      AND EXPENSES

                      	
                        54

                      
	
                        32

                      	
                        NOTICES
      AND TIME

                      	
                        56

                      
	
                        33

                      	
                        GENERAL
      CONDITIONS

                      	
                        57

                      
	
                        34

                      	
                        EXHIBITS

                      	
                        57

                      
	
                        35

                      	
                        COUNTERPARTS

                      	
                        57

                      
	 	 	 
	
                        SCHEDULES
      AND EXHIBITS

                      	
                        60

                      

              

            

          

        

      

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

       

      
        	
                1

              	
                DEFINITIONS

              

      

       

      
        	
                1.1

              	
                The
      terms used in this Agreement shall be defined as
  follows:

              

      

       

      
        	
                Acknowledgement
      and Submission

              	
                The
      abstract acknowledgement of debt, including the deed of granting of
      hypothec, and the submission to immediate enforcement by the Borrowers in
      the form of Exhibit 6 attached hereto, securing the Outstanding
      Indebtedness

              
	 	 
	
                Agency
      and Security Pooling Agreement

              	
                The
      agency and security pooling agreement made or to be made between the
      Lenders, as the case may be

              
	 	 
	
                Agent

              	
                NORD/LB,
      when acting as sole agent of the Lenders

              
	 	 
	
                Assignments
      of the Building Contracts

              	
                The
      assignment by each Relevant Borrower to the Lenders of the Relevant
      Building Contract in the form of Exhibit 3 attached
  hereto.

              
	 	 
	
                Assignments
      of the Refund Guarantees

              	
                The
      assignment by each of the Relevant Borrower of the Relevant Refund
      Guarantee to the Lenders in the form of Exhibit 4 attached
      hereto.

              
	 	 
	
                Assured(s)

              	
                Any
      person or party other than the Borrowers which is from time to time shown
      in any insurance policy, insurance slip, cover note. certificate of entry
      or other insurance document whatsoever as an assured, co- assured or as a
      party that in whatever capacity may at any time have a right or claim in
      relation to the insurances of any of the Delivered
  Vessels

              
	 	 
	
                Banking
      Day

              	
                A
      day on which dealings in Euros are carried out in the relevant Interbank
      Market and on which banks are open for business in Frankfurt, Hannover,
      London and New York

              
	 	 
	
                Bareboat
      Charterer

              	
                The
      bareboat charterer of any of the Vessels, being in each single case a
      fully owned and controlled subsidiary of the Relevant
    Borrower

              
	 	 
	
                Borrower
      (1) - (12)

              	
                The
      limited partnerships as set out in Schedule 3 attached
    hereto

              

      

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

       

      
        	
                Borrowers

              	
                Collectively
      Borrower (1) - (12) and in the singular form any of
them

              
	 	 
	
                Builder

              	
                FINCANTIERI
      CANTIERI NAVALI ITALIANI S.P.A. of Genoa, Italy

              
	 	 
	
                Building
      Contract (1) - (12)

              	
                The
      building contracts between the Builder and the General Partner, as set out
      in Schedule 3 attached hereto

              
	 	 
	
                Building
      Contracts

              	
                Collectively
      the Building Contract (1) - (12) and in the singular form any of
      them

              
	 	 
	
                Charter

              	
                A
      time charter contract concluded between any of the Borrowers as owner and
      the Charterer as charterer, providing (i) for a duration of not less than
      twelve (12) Months or an equivalent substitute as more closely described
      in Clause 19.3.1.3 and (ii) for a daily charter hire satisfactory to the
      Lenders, and furthermore being concluded on terms and conditions
      satisfactory to the Lenders

              
	 	 
	
                Charterer

              	
                Any
      well reputed charterer satisfactory to the Lenders

              
	 	 
	
                Classification
      Society

              	
                American
      Bureau of Shipping or any other first class classification society being a
      member to IACS and being accepted by the Agent

              
	 	 
	
                Commitment

              	
                The
      commitment of the Lenders to grant the Loans

              
	 	 
	
                Commitment

                Termination
      Date CF

              	
                The
      date falling on the fifteenth anniversary of the first Drawdown of any of
      the Tranches LT.

              
	 	 
	
                Commitment

                Termination
      Date CT

              	The date falling on the delivery
      of the last Vessel, or 30th September, 2010.
	 	 
	
                Commitment
      Termination Date LT

              	
                31st
      December, 2010.

              
	 	 
	
                Construction
      Price (1) - (12)

              	
                The
      construction price of the Relevant Vessel under the Relevant Building
      Contract as set out in Schedule 4 attached hereto

              
	 	 
	
                Construction
      Prices

              	
                Collectively
      Construction Price (1) - (12) and in the singular form any one of
      them

              

      

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

       

      
        	
                Construction
      Price Instalment

                1.1
      - 1.5 to 12.1 - 12.5

              	
                Any
      of the Construction Price Instalments as set out in Schedule 4 attached
      hereto as the same may be or have been amended and approved by the
      Agent

              
	 	 
	
                Construction
      Price Instalments

              	
                Collectively
      the Construction Price Instalments 1.1 - 1.5 to 12.1 - 12.5, or some of
      them, as the context may require, and in the singular form any one of
      them

              
	 	 
	
                Corporate
      Guarantee

              	
                The
      guarantee by the Corporate Guarantor in the form of a “Bürgschaft”, in the
      form of Exhibit 5 attached hereto

              
	 	 
	
                Corporate
      Guarantor

              	
                REEDEREI
      HARTMANN GMBH & CO. KG of Leer, Germany

              
	 	 
	
                Credit
      Facility

              	
                The
      post-delivery revolving credit facility of up to Euros eighty four million
      one hundred fourteen thousand (EUR 84,114, 000.00)

              
	 	 
	
                Deeds
      of Assignment

              	
                The
      deeds of assignment made or to be made, as the case may be, between the
      General Partner, the Builder and the Borrowers, pursuant to the terms of
      which the General Partner has transferred the Building Contracts to and in
      favour of the Borrowers

              
	 	 
	
                Default
      Rate

              	
                The
      rate of interest payable for overdue payments as stipulated in Clause
      10.4

              
	 	 
	
                Delivered
      Vessels

              	
                The
      Vessels which have been delivered by the Builder to the Relevant Borrower,
      and in the singular form any one of them

              
	 	 
	
                Delivery
      Date (1)-(12)

              	
                The
      date on which the Relevant Vessel is expected to be delivered by the
      Builder to and accepted by the relevant Borrower, as set out in Schedule 4
      attached hereto

              
	 	 
	
                Drawdown

              	
                The
      advance of any Loan or Tranche by the Lenders to the Borrowers
      hereunder

              
	 	 
	
                Drawdown
      Date

              	
                The
      date upon which any Drawdown is made hereunder

              
	 	 
	
                Earnings
      Accounts

              	
                The
      accounts opened and held with the Agent in the name of the Relevant
      Borrowers to which the Relevant Delivered Vessel’s Earnings shall be paid
      during the Security Period

              

      

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

       

      
        	
                Earnings

              	
                In
      relation to each of the Delivered Vessels, all moneys whatsoever due or to
      become due or for the account of the Borrowers at any time until the
      Outstanding Indebtedness has been repaid in full to Lenders arising out of
      the use of or operation of the Relevant Delivered Vessel including (but
      not limited to) all freight, hire and passage moneys resulting from the
      contracts, requisition compensation remuneration for salvage, towage
      services, demurrage and detention moneys and damages for breach (or
      payments for variation or termination) of the Charter and any other
      charter party or other contract for the employment of the Relevant
      Delivered Vessel, or any claims against an employment pool for payment of
      the relevant pool participation, and all sums recoverable under the
      insurances in respect of the loss of income out of any employment of the
      Relevant Delivered Vessel and includes, if and whenever the Relevant
      Delivered Vessel is employed on terms whereby any or all such moneys as
      aforesaid are pooled or shared with any other person or entity, that
      proportion of the net receipts of the relevant pooling or sharing
      arrangement which is attributable to the Relevant Delivered
      Vessel

              
	 	 
	
                Equity
      Provider 1

              	
                SURESH
      CAPITAL MARITIME PARTNERS GERMANY GMBH, Leer, Germany

              
	 	 
	
                Equity
      Provider 2

              	
                The
      Corporate Guarantor or affiliated company acceptable to the
      Agent

              
	 	 
	
                Equity
      Provider 3

              	
                SURESH
      CAPITAL MARITIME PARTNERS I-B GERMANY GMBH, Leer,
  Germany

              
	 	 
	
                EUR

              	
                Euro
      or such other currency as shall be at the relevant time the legal tender
      for the payment of private and public debts in the states participating in
      the European Monetary Union

              
	 	 
	
                EURIBOR

              	
                The
      Interbank Offered Rate for EUR in Frankfurt, i.e. the rate per annum
      determined by the Agent (rounded up to the nearest sixteenth (1/16) of one
      percent) at which deposits in EUR are offered on a Quotation Date at or
      about 11.00 hours a.m. (Frankfurt time) in the European interbank market
      in sums equal to and for periods of time similar to the Interest Period
      agreed upon for the Loans to be funded,

                 

                (a)
      as published in Reuters Monitor Money Service on page “EURIBOR01” (or
      another page replacing EURIBOR01), or

                 

                (b)
      in case no such rate as mentioned under (a) is published, the rate at
      which the Lender, in accordance with its normal practice, is offered such
      deposits by first class banks in the European interbank
    market

              

      

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

       

      
        	
                Event
      of Default

              	
                Any
      event listed in Clause 22

              
	 	 
	
                Fair
      Market Value

              	
                The
      fair market value of the Relevant Delivered Vessel as determined in
      accordance with Clause 18.1 and 18.2

              
	 	 
	
                Financial
      Statements

              	
                The
      annual audited financial statements including the annual reports, balance
      sheets and profit and loss statements including cash flow statements,
      presenting the relevant company’s financial condition, audited by
      chartered accountants acceptable to the Lenders in accordance with
      generally accepted international accounting standards or accounting
      standards according to the German Commercial Code (Handelsgesetzbuch),
      consistently applied

              
	 	 
	
                Fixed
      Funding Costs

              	
                The
      Lenders’ costs of funding the Loan or any portion thereof in excess of the
      relevant reference rate such as EURIBOR, to be determined as more closely
      described in Clause 7.2

              
	 	 
	
                General
      Conditions

              	
                NORD/LB’s
      General Business Conditions in their German Version (“Allgemeine
      Geschäftsbedingungen”) and its General Loan Conditions (“Allgemeine
      Darlehensbedingungen”), together with English translations thereof,
      in the form attached hereto as Exhibit 18

              
	 	 
	
                General
      Partner

              	
                ATL
      OFFSHORE GMBH of Leer, Germany

              
	 	 
	
                Guarantees

              	
                Together
      the Corporate Guarantee and the SACE Guarantee

              
	 	 
	
                Guarantors

              	
                Together
      the Corporate Guarantor and SACE

              
	 	 
	
                Hypothec

              	
                The
      ship hypothec over the Delivered Vessels in the form of a fleet hypothec
      (“Gesamtschiffshypothek”)
      under the laws of the Federal Republic of Germany registered over the
      Vessels in the Lenders’ favour securing the Acknowledgement and
      Submission

              

      

       

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

       

      
        	
                Illicit
      Origin

              	
                Any
      origin which is illicit or fraudulent, including without limitation, drug
      trafficking, corruption, organised criminal activities, terrorism, money
      laundering or fraud.

              
	 	 
	
                Insurances

              	
                The
      insurances to be taken out by the Relevant Borrowers for the Delivered
      Vessels

              
	 	 
	
                Insurance
      Value

              	
                The
      full market value of a Delivered Vessel as determined pursuant to Clause
      18.1, however, not less than one hundred and twenty (120) percent of the
      Tranche(s) to be granted hereunder in connection with the Relevant
      Delivered Vessel, increased by the nominal value of any other lien or
      encumbrance over the Relevant Delivered Vessel having priority over the
      Lenders’ rights under the Hypothec

              
	 	 
	
                Interest
      Payment

              	
                The
      amount payable for interest at an Interest Payment Date

              
	 	 
	
                Interest
      Payment Date

              	
                The
      last day of an Interest Period or in the case of an Interest Period of
      more than six (6) Months’ duration, the date falling six (6) Months after
      the commencement of such Interest Period and the last day of such Interest
      Period

              
	 	 
	
                Interest
      Period

              	
                Periods
      of three (3), six (6), nine (9) or twelve (12) Months, which the Borrowers
      may select pursuant to Clause 7 or such other period as the Borrowers may
      request and the Agent may approve in respect of a Tranche, however, with
      the proviso that no more than six Interest Periods shall occur within any
      (12) Months period, the first such Interest Period commencing on the
      Relevant Drawdown Date of the Relevant Tranche or Loan and any further
      Interest Period on the expiry of any immediately preceding relevant
      Interest Period in respect of such Tranche or Loan

              
	 	 
	
                Interest
      Rate CT.A

              	
                The
      annual rate of interest which is conclusively certified by the Agent to be
      the aggregate of the EURIBOR, the Fixed Funding Costs and the Margin 1, as
      further stipulated in Clause 7

              
	 	 
	
                Interest
      Rate LT

              	
                The
      annual rate of interest which is conclusively certified by the Agent to be
      the aggregate of the EURIBOR, the Fixed Funding Costs and the Margin 1, as
      further stipulated in Clause 7

              
	 	 
	
                Interest
      Rate CF

              	
                The
      annual rate of interest which is conclusively certified by the Agent to be
      the (i) the EURIBOR increased by the Margin 2 for Interest Periods of
      three (3), six (6), nine (9) or twelve (12) Months or (ii) the Lenders’
      funding costs as conclusively to be agreed and determined by the Lenders
      in each case and notified by the Agent increased by the Margin 2 in case
      of Interest Periods other than three (3), six (6), nine (9) or twelve (12)
      Months, as further stipulated in Clause
7

              

      

       

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

       

      
        	
                Interest
      Rates

              	
                Together
      the Interest Rate CT.A, the Interest Rate LT and the Interest Rate CF, and
      in the singular form any one of them

              
	 	 
	
                Internal
      Rating Class

              	
                NORD/LB’s
      internal rating of the financing transaction described in this Agreement
      as determined by the ‘Landesbanken Rating Tool for Ship Finance
      Transactions’ (as from time to time amended or
modified)

              
	 	 
	
                Investment
      Costs

              	
                The
      aggregate sum of the Construction Prices and building supervision,
      financing, initial equipment and other costs, however, not more than Euro
      560,824,000.00.

              
	 	 
	
                ISM
      Code

              	
                The
      International Management Code for the Safe Operation of Ships and for
      Pollution Prevention adopted by the International Maritime
      Organisation

              
	 	 
	
                Lenders

              	
                The
      Banks and Financial institutions set forth in Schedule 1 attached
      hereto

              
	 	 
	
                Letter
      of Undertaking

                and
      Indemnity

              	
                The
      letter of undertaking and indemnity to be provided by the Builder
      substantially in the form of Exhibit 19 hereto

              
	 	 
	
                Liability

              	
                Each
      of the Borrower’s liability as more closely defined in Clause
      4.4

              
	 	 
	
                Loan
      Amount

              	
                The
      aggregate maximum loan amount of Euros four hundred twenty million five
      hundred seventy thousand (EUR 420,570,000.00)

              
	 	 
	
                Loan
      CT

              	
                The
      pre-delivery loan of up to Euros three hundred sixty three million (EUR
      363,000,000.00), or any balance thereof outstanding from time to
      time

              
	 	 
	
                Loan
      CT.A

              	
                The
      portion of the Loan CT of up to Euros one hundred twenty three million
      (EUR 123,000,000.00) or any balance thereof outstanding from time to
      time

              
	 	 
	
                Loan
      CT.B

              	
                The
      portion of the Loan CT of up to Euros two hundred forty million (EUR
      240,000,000.00) or any balance thereof outstanding from time to
      time

              

      

       

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

       

      
        	
                Loan
      LT

              	
                The
      post-delivery loan of up to the lesser of (i) Euros four hundred twenty
      million five hundred seventy thousand (EUR 420,570,000.00) or (ii) seventy
      five (75) percent of the Investment Costs, or any balance thereof
      outstanding from time to time

              
	 	 
	
                Loans

              	
                Together
      the Loan CT.A, the Loan LT and the Credit Facility, and in the singular
      form any one of them

              
	 	 
	
                Loss
      of Hire

              	
                The
      insurance of deprived income (charter hire, earnings, freight, profits,
      passage money) as a consequence of an insured peril under the hull &
      machinery or war risks insurance subject to ABS 1/10/83 Wording -
      Including War, the Norwegian Marine Insurance Plan of 1996 - Chapter 16,
      or other equivalent conditions as any of the aforesaid is updated and/or
      amended from time to time.

              
	 	 
	
                Manager

              	
                HARTMANN
      OFFSHORE GMBH, Leer, Germany, or any other first class, internationally
      well reputed manager accepted by the Agent

              
	 	 
	
                Manager’s
      Undertaking

              	
                The
      undertaking substantially in the form of Exhibit 15 attached
      hereto

              
	 	 
	
                Mandated
      Lead Arranger

              	
                NORD/LB,
      when acting as arranger of the Loans, the issuance of the Payment
      Guarantees and this Agreement

              
	 	 
	
                Margin
      1

              	
                The
      margin of one point three seven five (1.375) per cent per annum, and upon
      new margins having been assessed and accepted as provided in Clause 16,
      such new margin

              
	 	 
	
                Margin
      2

              	
                The
      margin of one point six (1.6) per cent per annum, and upon new margins
      having been assessed and accepted as provided in Clause 16, such new
      margin

              
	 	 
	
                Margins

              	
                Together
      the Margin 1 and the Margin 2

              
	 	 
	
                Margin
      Day

              	
                The
      day falling on the fifth anniversary of date this Agreement is executed,
      or, in case such day is no Banking Day, the then next Banking
      Day

              
	 	 
	
                Master
      Agreements

              	
                The
      master agreements, either (i) based on the ISDA 2002 Master Agreements in
      the Swap Bank’s standard form or (ii) being an instrument entitled ‘Rahmenvertrag für
      Finanztermingeschäfte’, made from time to time between a Swap Bank
      and the Borrowers or any of them for financial derivatives transactions,
      as the case may be, attached hereto, including the Transactions from time
      to time entered into thereunder

              

      

       

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

       

      
        	
                Material
      Adverse Effect

              	
                An
      effect being materially harmful on the Borrowers’ ability to repay the
      Loan LT

              
	 	 
	
                Month(s)

              	
                Period
      calculated from any specified day to and including the day numerically
      corresponding to such specified day (or, if such specified day is the last
      day or if there shall be no day numerically corresponding to such
      specified day, the last day) in the relevant subsequent calendar
      month

              
	 	 
	
                New
      Interest Date

              	
                The
      first day of an Interest Period

              
	 	 
	
                NORD/LB

              	
                NORDDEUTSCHE
      LANDESBANK GIROZENTRALE, a banking institution organized and existing
      under the laws of the Federal Republic of Germany, having its registered
      offices at Friedrichswall 10, 30159 Hannover, Germany

              
	 	 
	
                Obligor(s)

              	
                Collectively
      the Borrowers, the Corporate Guarantor and the Manager, and in the
      singular form any one of them, as the context may
  require

              
	 	 
	
                Ongoing
      Guarantee Fee

              	
                The
      ongoing guarantee fee as further described in the SACE
      Guarantee

              
	 	 
	
                Outstanding
      Indebtedness

              	
                The
      aggregate of all amounts that may from time to time become payable by the
      Borrowers to the Lenders, the Mandated Lead Arranger and/or the Agent and
      all other obligations of the Borrowers pursuant to the terms of this
      Agreement, the Master Agreements, the Security Documents and the claims of
      SACE pursuant to the Reimbursement Agreement

              
	 	 
	
                Payment

                Guarantees
      (5) - (12)

              	
                The
      payment guarantees to be issued by NORD/LB to and in favour of the Builder
      to secure the payment by the Relevant Borrower of the Construction Price
      Instalments (5.5), (6.5), (7.5), (8.5), (9.5), (10.5), (11.5) and
      (12.5)

              
	 	 
	
                Pool
      Agreement

              	
                The
      pool agreement made or to be made, as the case may be, between the
      Borrowers and the Pool Manager on terms and conditions acceptable to the
      Lenders

              
	 	 
	
                Pool
      Manager

              	
                United
      Offshore Support GmbH & Co. KG, Leer, Germany or any other pool
      manager of first class reputation being acceptable to the
      Lenders

              

      

       

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

       

      
        
          
            	
                    Prohibited
      Payment

                  	
                    (a)
      any offer, gift, payment, promise to pay, commission, fee, loan or other
      consideration which would constitute bribery or an improper gift or
      payment under, or a breach of, any law of any Relevant Jurisdiction;
      or

                     

                    (b)
      any offer, gift, payment, promise to pay, commission, fee, loan or other
      consideration which would or might constitute bribery within the OECD
      Convention on Combating Bribery of Foreign Public Officials in
      International Business Transactions of 17 December 1997

                  
	 	 
	
                    Quotation
      Date

                  	
                    The
      date two (2) Banking Days prior to the Relevant Drawdown Date or to the
      beginning of any Interest Period

                  
	 	 
	
                    Refund
      Guarantees

                  	
                    The
      refund guarantees to be granted by the Refund Guarantor in favour of the
      Borrowers under and in connection with the Building Contracts, and in the
      singular form any one of them

                  
	 	 
	
                    Refund
      Guarantor

                  	
                    A
      bank satisfactory to and accepted by the Lenders

                  
	 	 
	
                    Reimbursement
      Agreement

                  	
                    The
      reimbursement agreement between SACE, the Borrowers, the Agent and the
      Lenders as attached hereto substantially in the form of Exhibit
      16

                  
	 	 
	
                    Relevant
      Borrower

                  	
                    Any
      of the Borrowers, as the context may require

                  
	 	 
	
                    Relevant
      Building Contract

                  	
                    Any
      of the Building Contracts, as the context may require

                  
	 	 
	
                    Relevant
      Commitment Termination Date

                  	
                    Any
      of the Commitment Termination Dates, as the context may
      require

                  
	 	 
	
                    Relevant
      Construction Price

                  	
                    Any
      of the Construction Prices, as the context may require

                  
	 	 
	
                    Relevant
      Construction

                    Price
      Instalment

                  	
                    Any
      of the Construction Price Instalments, as the context may
      require

                  
	 	 
	
                    Relevant
      Delivered Vessel

                  	
                    Any
      of the Delivered Vessels, as the context may require

                  
	 	 
	
                    Relevant
      Earnings Account

                  	
                    Any
      of the Earnings Accounts, as the context may require

                  
	 	 
	
                    Relevant
      Guarantee

                  	
                    Any
      of the Guarantees, as the context may require

                  
	 	 
	
                    Relevant
      Guarantor

                  	
                    Any
      of the Guarantors, as the context may
require

                  

          

        

      

       

      
        
          
          

        

        
          13

          
            

          

        

        
          
          

        

      

       

      
        	
                Relevant
      Fair Market Value

              	
                The
      Fair Market Value of any of the Delivered Vessels, as the context may
      require

              
	 	 
	
                Relevant
      Margin

              	
                Any
      of the Margins, as the context may require

              
	 	 
	
                Relevant
      Obligor

              	
                Any
      of the Obligors, as the context may require

              
	 	 
	
                Relevant
      Refund Guarantee

              	
                Any
      of the Refund Guarantees, as the context may require

              
	 	 
	
                Relevant
      Tranche

              	
                Any
      of the Tranches, as the context may require

              
	 	 
	
                Relevant
      Tranche CT

              	
                Any
      of the Tranches CT, as the context may require

              
	 	 
	
                Relevant
      Tranche LT

              	
                Any
      of the Tranches LT, as the context may require

              
	 	 
	
                Relevant
      Lender

              	
                Any
      of the Lenders, as the context may require

              
	 	 
	
                Relevant
      Vessel

              	
                Any
      of the Vessels, as the context may require

              
	 	 
	
                Relevant
      Vessel’s

                Facility
      Ratio

              	
                In
      respect of any Delivered Vessel on any date the amount determined in
      accordance with the following formula:

              
	 	 
	 
      	
                Relevant Fair Market
      Value * 100

                Aggregate
      Fleet Value

                 

                where:
      ‘Aggregate Fleet Value’ being the aggregate of the Fair Market Values of
      all Vessels

              
	 	 
	
                Repayment
      Dates

              	
                The
      dates on which the Repayment Instalments shall be payable as more closely
      set forth in Clause 8

              
	 	 
	
                Repayment
      Instalment

              	
                Any
      of the instalments described in Clause 8 hereof

              
	 	 
	
                SACE

              	
                SACE
      S.P.A. of Roma, Italy

              
	 	 
	
                SACE
      Guarantee

              	
                The
      financial guarantee by SACE to and in favour of the Lenders up to seventy
      (70) percent of the Loan LT

              
	 	 
	
                Security
      Documents

              	
                The
      documents to be executed pursuant to Clause 12 together with any other
      document from time to time executed as security for the Loan or any part
      thereof

              
	 	 
	
                Security
      Period

              	
                The
      period commencing on the first Drawdown Date and ending on the day on
      which all obligations of the Borrowers arising pursuant to the terms of
      this Agreement, the Security Documents and the Master Agreements have been
      paid and performed in full

              

      

       

      
        
          
          

        

        
          14

          
            

          

        

        
          
          

        

      

       

      
        	
                Security
      Period CT

              	
                The
      period commencing on the first Drawdown Date of any of Tranches CT and
      ending on the day on which all obligations of the Borrowers arising
      pursuant to the terms of this Agreement and the Security Documents with
      respect to Tranches CT have been paid and performed in
  full

              
	 	 
	
                Security
      Period LT

              	
                The
      period commencing on the first Drawdown Date of any of Tranches LT and
      ending on the day on which all obligations of the Borrowers arising
      pursuant to the terms of this Agreement and the Security Documents with
      respect to Tranches LT have been paid and performed in
  full

              
	 	 
	
                Ships
      Registry

              	
                The
      register of sea-going vessels held with the lower court (Amtsgericht) of Emden,
      Germany

              
	 	 
	
                Swap
      Bank

              	
                Any
      Lender acting in its capacity as party to a Master Agreement and as party
      to any Transaction thereunder

              
	 	 
	
                Swap
      Exposure

              	
                Any
      and all claims of a Swap Bank arising in connection with a Master
      Agreement and any and all Transactions, including, but not limited to, the
      compensation claim of that Swap Bank, which would be payable by the
      Relevant Borrower(s) to that Swap Bank under Section 8 or Section 6, as
      applicable of the relevant Master Agreement, if an event of termination
      had occurred in relation to all Transactions

              
	 	 
	
                Taxes

              	
                Any
      tax, levies, duties, charges, fees, deductions and withholdings levied or
      imposed by any government or other taxing authority whatsoever other than
      taxes on the income of the Lenders

              
	 	 
	
                Total
      Loss

              	
                The
      actual or constructive or compromised or arranged or agreed total loss of
      any of the Vessels and the requisition for title or other compulsory
      acquisition of any of the Vessels other than requisition for hire; and the
      capture, seizure, arrest, restraint, detainment, detention or confiscation
      of any of the Vessels by any government or by a person acting or
      purporting to act on behalf of any government which is not released or
      discharged within ninety (90) days

              

      

       

      
        
          
          

        

        
          15

          
            

          

        

        
          
          

        

      

       

      
        	
                Tranches

              	
                Collectively
      the Tranches CT and the Tranches LT

              
	 	 
	
                Tranches
      CF

              	
                Collectively
      the Tranches of the Credit Facility, as more closely set out in Schedule
      4b attached hereto

              
	 	 
	
                Tranches
      CT

              	
                Collectively
      the Tranches of the Loan CT, as more closely set out in Schedule 4
      attached hereto

              
	 	 
	
                Tranches
      LT

              	
                Collectively
      the Tranches of the Loan LT, as more closely set out in Schedule 4
      attached hereto

              
	 	 
	
                Transaction

              	
                Any
      kind of interest or currency swap transaction or any other kind of
      derivative transaction and entered into between a Swap Bank and the
      Relevant Borrower(s) under a Master Agreement and governed by the Master
      Agreement

              
	 	 
	
                Transfer
      Certificate

              	
                The
      transfer certificate substantially in the form attached hereto as Exhibit
      17

              
	 	 
	
                Vessel
      (1) - (12)

              	
                The
      vessels and the vessels under construction, respectively, as set out in
      Schedule 3 attached hereto

              
	 	 
	
                Vessels

              	
                Together
      the Vessels (1) - (12), and in the singular form any one of
      them.

              
	 	 

      

       

      
        	
                1.2

              	
                Clause
      headings are inserted for convenience only and shall not affect the
      construction of this Agreement and unless otherwise specified, all
      references to “Clauses” are to clauses of this
  Agreement.

              

      

       

      
        	
                1.3

              	
                Unless
      the context otherwise requires, words denoting the singular number shall
      include the plural and vice versa.

              

      

       

      
        	
                1.4

              	
                References
      to persons include corporate bodies and unincorporated
    bodies.

              

      

       

      
        	
                1.5

              	
                References
      to assets include property, rights and assets of every
      description.

              

      

       

      
        	
                1.6

              	
                References
      to any document are to be construed as references to such document as
      amended or supplemented from time to
time.

              

      

       

      
        	
                1.7

              	
                References
      to any enactment include re-enactments, amendments and extensions
      thereof.

              

      

       

      
        
          
          

        

        
          16

          
            

          

        

        
          
          

        

      

       

      
        	
                2

              	
                PURPOSE
      OF THE LOANS

              

      

       

      The Loans
and the Loan CT.B shall exclusively serve the following purposes hereunder and
the Borrowers hereby undertake to the Lenders to make use of the Loans only for
the purposes as stipulated following hereafter:

       

      
        	
                2.1

              	
                Loan
      CT.A.  The Loan CT.A shall be made available to the
      Borrowers to assist them in financing part of certain Construction Price
      Instalments as more closely set out in Schedule 4 attached
      hereto.

              

      

       

      
        	
                2.2

              	
                Loan
      CT.B.  The Loan CT.B shall be made available to the
      Borrowers to enable NORD/LB to issue the Payment
    Guarantees.

              

      

       

      
        	
                2.3

              	
                Loan
      LT.  The Loan LT shall be made available upon delivery of
      each Vessel in Tranches LT.1 to LT.12 to the Borrowers to enable
      them

              

      

       

      
        	
                2.3.1

              	
                to
      repay those amounts due in connection with the repayment of the Loan CT.A,
      and in respect of Vessels (1) and (2) for the refinancing of the payment
      of the Construction Price Instalments 1.3, 1.4, 2.3 and 2.4,
      and

              

      

       

      
        	
                2.3.2

              	
                to
      pay to the Builder the Construction Price Instalments 1.5, 2.5, 3.5, 4.5,
      5.5, 6.5, 7.5, 8.5, 9.5, 10.5, 11.5 and
12.5,

              

      

       

      all as
more closely set out in Schedule 4 attached hereto. However, in no event shall
the Loan LT be in an amount in excess of seventy five (75) percent of the
aggregate Investment Costs of all Vessels.

       

      
        	
                2.4

              	
                Credit
      Facility.  The Credit Facility shall be granted by the
      Lenders to the Borrowers to repay those amounts due in connection with the
      repayment of the Loan LT required to pay the balance between the twelve
      (12) years’ repayment profile compared to an fifteen (15) years’ repayment
      profile, as more closely set out in Schedule 4b attached
      hereto.

              

      

       

      
        	
                3

              	
                DRAWDOWN
      OF THE TRANCHES

              

      

       

      
        	
                3.1

              	
                Availability.  Upon
      satisfaction of the conditions set out in Clause 5, the Lenders shall make
      available to the Borrowers the Relevant Tranche during the period from the
      date hereof up to and including the Relevant Commitment Termination Date
      and at the times and in the manner herein set
  forth.

              

      

       

      
        	
                3.2

              	
                Loan
      CT.

              

      

       

      
        	
                3.2.1

              	
                The
      Loan CT.A shall be drawn in up to twenty four (24) Tranches CT.A, as more
      closely set out in Schedule 4 attached hereto during the period of time
      from the date hereof up to and including the Commitment Termination Date
      CT.

              

      

       

      
        	
                3.2.2

              	
                The
      Loan CT.B shall be made available in up to eight (8) Tranches
      CT.B.

              

      

       

      
        	
                3.3

              	
                Loan
      LT.  The Loan LT shall be drawn in up to twelve (12)
      Tranches LT, as more closely set out in Schedule 4 attached hereto during
      the period of time from the date hereof up to and including the Commitment
      Termination Date LT.

              

      

       

      
        	
                3.4

              	
                Credit
      Facility.  The Credit Facility shall be drawn in up to
      forty eight (48) quarterly tranches, as more closely set out in Schedule
      4b attached hereto during the period of time commencing three (3) Months
      after the delivery of the first Vessel up to and including the Commitment
      Termination Date CF. In case a Drawdown of any of Tranches CF is not made
      upon the relevant date upon which it is supposed to be made, the relevant
      Lenders’ commitment with regard to Tranche CF shall be cancelled
      accordingly.

              

      

       

      
        
          
          

        

        
          17

          
            

          

        

        
          
          

        

      

       

      
        	
                4

              	
                LENDERS’
      PARTICIPATION AND LIABILITY, BORROWERS’
  LIABILITY

              

      

       

      
        	
                4.1

              	
                Lenders
      Participation.  Each Lender shall participate in the
      Loans with the maximum amounts and the percentages as set out next to its
      name in the Schedule 1 attached
hereto.

              

      

       

      
        	
                4.2

              	
                Lenders’
      Liability.  The liability of each Lender hereunder to
      advance the amount being the equivalent of its participation in the Loans
      is several and no Lender shall be responsible for any failure by any other
      Lender(s) to meet its/their obligations hereunder nor shall any such
      failure relieve the Borrowers or any other Lender of all or any of its
      obligations hereunder. The Lenders shall be joint and several creditors
      (Gesamtgläubiger)
      hereunder and they shall not have any joint assets of capital (Gesamthandsvermögen)
      pursuant hereto.

              

      

       

      
        	
                4.3

              	
                Joint and several
      Liability.  The Borrowers shall be jointly and severally
      liable (gesamtschuldnerisch)
      for any and all amounts that may from time to time be owed actually or
      contingently to the Lenders pursuant to or in connection with this
      Agreement, the Security Documents and the Master
    Agreements.

              

      

       

      
        	
                5

              	
                AVAILABILITY

              

      

       

      
        	
                5.1

              	
                Availability of Loans
      and Tranches.  Any of the Loans shall be made available
      and the Payment Guarantees shall be issued in accordance with Clauses 2, 3
      and 4 and upon the Borrowers’ compliance with the terms and conditions as
      set out in this Clause 5.

              

      

       

      
        	
                5.2

              	
                Drawdown Notice,
      Guarantee Request.  Not less than (3) Banking Days prior
      to any Drawdown of any of Tranches CT.A, Tranches LT or Tranches CF, the
      Borrowers shall execute and deliver to the Agent a drawdown notice in the
      form of Exhibit 1 attached hereto. Not less than (3) Banking Days prior to
      the required issuance of a Payment Guarantee by NORD/LB, the Borrowers
      shall execute and deliver to the Agent a guarantee request notice in the
      form of Exhibit 2 attached hereto.

              

      

       

      
        	
                5.3

              	
                Conditions
      Precedent.  It is a condition precedent to any Drawdown
      or the issuance of any Payment Guarantee that prior to or at least
      simultaneously with the relevant Drawdown and the issuance of a Payment
      Guarantee

              

      

       

      
        	
                5.3.1

              	
                the
      representation and warranties contained in Clause 17 shall be true and
      correct;

              

      

       

      
        	
                5.3.2

              	
                none
      of the circumstances specified in Clause 11 is
  subsisting;

              

      

       

      
        	
                5.3.3

              	
                no
      Event of Default has occurred;

              

      

       

      
        
          
          

        

        
          18

          
            

          

        

        
          
          

        

      

       

      
        	
                5.3.4

              	
                the
      following conditions shall be met to the satisfaction of the
      Agent:

              

      

       

      
        	
                5.3.4.1

              	
                the
      Agent has received payment of the fees and expenses specified in Clause 6
      to the extent due and payable;

              

      

       

      
        	
                5.3.4.2

              	
                the
      Agent has received the documents and evidence as more closely stipulated
      in the list of conditions precedent attached hereto as
      Schedule 5.

              

      

       

      
        	
                6

              	
                FEES
      AND COMMISSIONS

              

      

       

      
        	
                6.1

              	
                Arrangement
      Fee.  An arrangement fee of Euros three million (EUR
      3,000,000.00) was due on 21st
      April, 2008 and is payable by the Borrowers to the Mandated Lead
      Arranger.

              

      

       

      
        	
                6.2

              	
                Commitment
      Fee.  The Borrowers shall pay to the Lenders a commitment
      fee being dependant on their Internal Rating Class and calculated on the
      Loan LT less amounts drawn from time to time hereunder or cancelled, with
      the following grid applying:

              

      

       

      
        	
                Internal Rating Class

              	
                Commitment Fee

              
	
                1
      or 2

              	
                0.20%
      p.a.

              
	
                3
      or 4

              	
                0.25%
      p.a.

              
	
                5

              	
                0.30%
      p.a.

              
	
                6

              	
                0.35%
      p.a.

              
	
                7

              	
                0.40%
      p.a.

              
	
                8

              	
                0.45%
      p.a.

              

      

       

      The Agent
shall notify the Borrowers in writing about the Internal Rating Class applying
from time to time. Since the Internal Rating Class is generated automatically by
the Agent’s computerized rating tool, it shall not be subject to any
negotiation.

       

       

      The
commitment fee shall be payable semi-annually in arrears calculated on the
undrawn amount of the Loan LT and on the actual number of days elapsed in a year
on a 360-day basis and for the last time on the earlier of (i) the date of the
final Drawdown, (ii) the Commitment Termination Date LT or (iii) the date on
which the Commitment ceases for any other reason, and for the period of time
commencing on 21st April,
2008 and ending on the earlier of (i) the date of the final Drawdown, (ii) the
Commitment Termination Date LT or (iii) the date on which the Commitment ceases
for any other reason.

       

      
        	
                6.3

              	
                Agency
      Fee.  The Borrowers shall pay to the Agent an agency fee
      as follows:

              

      

       

      
        	
                6.3.1

              	
                During
      the Security Period CT: Euros ten thousand (EUR 10,000.00) per Vessel per
      annum, being due and payable quarter-annually at the end of each quarter,
      for the first time on 31st
      December, 2008, and for the last time on the Relevant Vessel’s delivery
      proportionally, and

              

      

       

      
        	
                6.3.2

              	
                During
      the Security Period LT: Euros five thousand (EUR 5,000.00) per Vessel per
      annum, being due and payable quarter-annually at the end of each quarter,
      for the first time at the end of the quarter following the Relevant
      Vessel’s delivery and for the last time proportionally upon the full
      repayment of all amounts due hereunder with regard to the Relevant
      Vessel.

              

      

       

      
        
          
          

        

        
          19

          
            

          

        

        
          
          

        

      

       

      
        	
                6.4

              	
                Guarantee
      Commission.  The Borrowers shall pay to NORD/LB a
      guarantee commission of one point three seven five (1.375) percent per
      annum on all amounts made available under the Loan CT.B in the form of
      Payment Guarantees being issued, such guarantee commission being due and
      payable with regard to each Payment Guarantee quarter-annually in arrears
      and on the date the Payment Guarantee expires and no contingent liability
      of NORD/LB is occurred thereunder any
longer.

              

      

       

      
        	
                7

              	
                INTEREST

              

      

       

      
        	
                7.1

              	
                Obligation to pay
      Interest.  The Borrowers hereby undertake to pay to the
      Lenders from the day the first Drawdown is made interest on the principal
      amount of the Loans outstanding from time to time and on any accrued and
      unpaid interest (both before and after judgement) (provided such interest
      on accrued and unpaid interest is allowed under applicable law) on the
      Loans at any time outstanding.

              

      

       

      
        	
                7.2

              	
                Fixed Funding
      Costs.  The amount of the Fixed Funding Costs will be
      notified by the Agent to the Borrowers latest within two (2) Banking Days
      prior to the first drawdown under this Loan Agreement. Following the
      Agent’s notification, the Borrowers shall advise the Agent in writing
      latest on the first Drawdown Date whether they agree to the amount of the
      Fixed Funding Costs. The Fixed Funding Costs shall be binding on the
      parties until the Margin Day. If the Borrowers notify the Agent that they
      do not agree to the amount of the Fixed Funding Costs, or do not notify
      the Agent within the time limit referred to above, this Loan Agreement
      shall be deemed terminated as of receipt by the Lender of the Borrowers’
      notice or the expiry of the aforesaid time limit, as the case may be. As
      of the date of such termination, all respective rights and obligations of
      the parties shall be extinct.

              

      

       

      
        	
                7.3

              	
                Interest
      Rates.  The Borrowers shall pay to the Lenders interest
      as follows:

              

      

       

      
        	
                7.3.1

              	
                with
      regard to Tranches CT.A: at the Interest Rate
  CT.A,

              

      

       

      
        	
                7.3.2

              	
                with
      regard to Tranches LT:

              

      

       

      
        	
                7.3.2.1

              	
                on
      the portion of the Tranche LT being secured by the SACE Guarantee at the
      interest rate being the aggregate of the EURIBOR and the Margin 1,
      and

              

      

       

      
        	
                7.3.2.2

              	
                on
      the portion of the Tranche LT being not secured by the SACE Guarantee at
      the Interest Rate LT;

              

      

       

      
        	
                7.3.3

              	
                with
      regard to Tranches CF: at the Interest Rate
CF,

              

      

       

      under the
proviso, however, that the Interest Rates shall be re-negotiated and agreed on
in good faith between the Agent and the Borrowers on the Margin Day. The Agent
shall notify the Borrower in writing not later than fifteen (15) Banking Days in
advance of the Margin Day about its intention to re-negotiate the Interest Rates
for and on behalf of the Lenders.

       

      
        
          
          

        

        
          20

          
            

          

        

        
          
          

        

      

       

      Should
the parties agree on new Interest Rates, these new interest rates shall apply as
from the Margin Day. Should the parties fail to agree on an increase or decrease
of the Interest Rates until two (2) Banking Days prior to the Margin Day, the
Interest Rate shall continue to apply and the Lenders shall be entitled to
terminate this Agreement and to demand from the Borrowers the repayment of the
Outstanding Indebtedness within a period of two (2) Months as from the Margin
Day.

       

      
        	
                7.4

              	
                Capitalization of
      Interest.  The interest accrued on Tranches CT.A shall be
      capitalized by utilization of Tranche CT.A and B up to the maximum amount
      of Euros one million (EUR 1,000,000.00) and such amounts shall be re-paid
      on the Drawdown of the corresponding Tranche LT or on the Delivery of the
      Relevant Vessel or on the final maturity dates as more closely set forth
      in the Schedule 4 attached hereto, whichever is the earlier. In case the
      amounts needed for the capitalization of interest as set forth herein
      exceed the amount of Euros one million (EUR 1,000,000.00) the Borrowers
      shall effectively pay the interest due on each Interest Payment Date to
      the Agent.

              

      

       

      
        	
                7.5

              	
                Notice of Interest
      Rates by Agent.  As soon as practicable the Agent shall
      give the Borrowers notice of the Interest Rates being applicable from time
      to time.

              

      

       

      
        	
                7.6

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

              

      

       

      
        	
                7.7

              	
                Payment
      intervals.  Interest shall always be due and payable in
      arrears on the Interest Payment Date, provided, however,
    that

              

      

       

      
        	
                7.7.1

              	
                in
      relation to any Repayment Instalment falling due during any Interest
      Period interest shall be paid on such Repayment Date or Repayment Dates
      occurring during such Interest
Period;

              

      

       

      
        	
                7.7.2

              	
                if
      an Interest Period would otherwise end on a day which is not a Banking
      Day, that Interest Period shall be extended to the next succeeding day
      which is a Banking Day, unless the result of such extension would be to
      carry such Interest Period over into another calendar Month, in which
      event such Interest Period shall end on the preceding Banking
      Day;

              

      

       

      
        	
                7.7.3

              	
                in
      the event the Borrowers shall fail to select the duration of any Interest
      Period, or the Lenders do not agree to a selection, in each case in
      accordance with Clause 7.7, the Borrowers shall be deemed to have selected
      a period of three (3) Months in respect
thereof.

              

      

       

      
        
          
          

        

        
          21

          
            

          

        

        
          
          

        

      

       

      
        	
                7.8

              	
                Duration of Interest
      Periods.  At least three (3) Banking Days prior to the
      commencement of each Interest Period the Borrowers shall notify the Agent
      in writing whether it requires the ensuing Interest Period to be of a
      duration of three (3), six (6), nine (9) or twelve (12) Months, with the
      proviso that no more than six (6) Interest Periods shall occur within any
      twelve (12) Month period.

              

      

       

      If the
Borrowers wish to have fixed an Interest Period other than three (3), six (6),
nine (9) or twelve (12) Months they shall request so in writing at least six (6)
Banking Days prior to the commencement of such Interest Period. The requested
Interest Period shall be applicable if all the Lenders have expressly agreed to
such Interest Period. It is in the Lenders’ sole discretion to agree to such
requested Interest Period. The Agent shall inform the Borrowers of the Lenders’
decision without undue delay. In case the Lenders have not agreed to an Interest
Period other than three (3), six (6), nine (9) or twelve (12) Months, the
ensuing Interest Period shall have a duration of twelve (12) Months unless
otherwise agreed upon.

       

      Whenever
pursuant to the provisions of Clause 8 hereof a Repayment Instalment will become
due for payment during an Interest Period but otherwise than at the expiry
thereof the Borrowers shall in respect of such instalment payment be deemed to
have nominated an Interest Period of such duration so as to ensure that the same
shall expire on the due date for payment by the Borrowers of such Repayment
Instalment.

       

      No
Interest Period shall exceed the Margin Day by more than ninety (90)
days.

       

      
        	
                7.9

              	
                Synchronization of
      Interest Periods.  The Agent shall have the right to
      synchronize Interest Periods and the Borrowers shall fully co-operate with
      the Agent and the Lenders to this
effect.

              

      

       

      
        	
                8

              	
                REPAYMENT

              

      

       

      
        	
                8.1

              	
                Tranches
      CT.A.  The Borrowers shall repay the Tranches CT.A to the
      Lenders upon the Drawdown of the corresponding Tranches LT, however not
      later than on the following final maturity
  dates:

              

      

       

      
        	
                Tranche

              	
                Final Maturity Date

              
	
                CT.A.1.1
      + CT.A.1.2

              	
                30th
      December, 2008

              
	
                CT.A.2.1
      + CT.A.2.2

              	
                28th
      February, 2009

              
	
                CT.A.3.1
      + CT.A.3.2

              	
                30th
      September, 2009

              
	
                CT.A.4.1
      + CT.A.4.2

              	
                30th
      November, 2009

              
	
                CT.A.5.1
      + CT.A.5.2

              	
                30th
      December, 2009

              
	
                CT.A.6.1
      + CT.A.6.2

              	
                30th
      December, 2009

              
	
                CT.A.7.1
      + CT.A.7.2

              	
                31st
      October, 2009

              
	
                CT.A.8.1
      + CT.A.8.2

              	
                30th
      November, 2009

              
	
                CT.A.9.1
      + CT.A.9.2

              	
                28th
      February, 2010

              
	
                CT.A.10.1
      + CT.A.10.2

              	
                31st
      May, 2010

              
	
                CT.A.11.1
      + CT.A.11.2

              	
                31st
      March, 2010

              
	
                CT.A.12.1
      + CT.A.12.2

              	
                30th
      June, 2010

              

      

       

      irrespective
whether any of the Tranches LT have been drawn down on such final maturity
dates, provided, however, that upon Borrowers written request the Agent may
agree, such approval not to be unreasonably withheld, to an extension of the
relevant final maturity date by up to one hundred twenty (120)
days.

       

      
        
          
          

        

        
          22

          
            

          

        

        
          
          

        

      

       

      
        	
                8.2

              	
                Tranches
      LT.  The Borrowers shall repay each of the Tranches LT to
      the Lenders by amortising each of the Tranches LT with quarterly
      repayments over a twelve (12) years repayment profile. The first quarterly
      repayment of each Tranche LT shall be made three (3) Months after the
      Drawdown thereof, provided, however, that in any event the repayment of
      the Tranches LT shall be fully amortised on the following final maturity
      dates:

              

      

       

      
        	
                Tranche

              	
                Final Maturity Date

              
	
                LT.1

              	
                30th
      December, 2020

              
	
                LT.2

              	
                28th
      February, 2021

              
	
                LT.3

              	
                30th
      September, 2021

              
	
                LT.4

              	
                30th
      November, 2021

              
	
                LT.5

              	
                30th
      December, 2021

              
	
                LT.6

              	
                30th
      December, 2021

              
	
                LT.7

              	
                31st
      October, 2021

              
	
                LT.8

              	
                30th
      November, 2021

              
	
                LT.9

              	
                28th
      February, 2022

              
	
                LT.10

              	
                31st
      May, 2022

              
	
                LT.11

              	
                31st
      March, 2022

              
	
                LT.12

              	
                30th
      June, 2022

              

      

       

      provided,
however, that upon Borrowers written request the Agent may agree, such approval
not to be unreasonably withheld, to an extension of the relevant final maturity
date by up to one hundred twenty (120) days, provided that in case of a
requested extension beyond 30th June,
2022 the prior written consent of SACE is required.

       

      
        	
                8.3

              	
                Credit
      Facility.  The Borrowers shall repay the Credit Facility
      to the Lenders by amortising the Credit Facility with quarterly repayments
      over a three (3) years repayment profile. The first quarterly repayment
      shall be made three (3) Months after the final repayment on relevant
      Tranche LT, provided, however, that in any event the repayment of the
      Credit Facility shall be fully amortised on the following final maturity
      dates:

              

      

       

      
        	
                Tranche

              	
                Final Maturity Date

              
	
                CF.1

              	
                30th
      December, 2023

              
	
                CF.2

              	
                28th
      February, 2024

              
	
                CF.3

              	
                30th
      September, 2024

              
	
                CF.4

              	
                30th
      November, 2024

              
	
                CF.5

              	
                30th
      December, 2024

              
	
                CF.6

              	
                30th
      December, 2024

              
	
                CF.7

              	
                31st
      October, 2024

              
	
                CF.8

              	
                30th
      November, 2024

              
	
                CF.9

              	
                28th
      February, 2025

              
	
                CF.10

              	
                31st
      May, 2025

              
	
                CF.11

              	
                31st
      March, 2025

              
	
                CF.12

              	
                30th
      June, 2025

              

      

       

      provided,
however, that upon Borrowers written request the Agent may agree, such approval
not to be unreasonably withheld, to an extension of the relevant final maturity
date by up to one hundred twenty (120) days.

       

      
        
          
          

        

        
          23

          
            

          

        

        
          
          

        

      

       

      
        	
                9

              	
                VOLUNTARY
      AND MANDATORY PREPAYMENT

              

      

       

      
        	
                9.1

              	
                Prepayment.  The
      Borrowers may prepay any of the Tranches in whole or in whole multiples of
      Euros two hundred fifty thousand (EUR 250,000.00). Any such prepayment
      shall only be permitted provided the Agent shall have received not less
      than ten (10) Banking Days prior to such date irrevocable written notice
      of the amount to be prepaid and of the Tranche to which such prepayment
      shall be applied.

              

      

       

      
        	
                9.2

              	
                No
      Re-Borrowing.  Any sum prepaid may not be redrawn by the
      Borrowers. Any partial prepayment shall be applied in reduction of the
      Repayment Instalments in the inverse order of their
    maturity.

              

      

       

      
        	
                9.3

              	
                Prepayment
      Notice.  Any notice of prepayment given by the Borrowers
      shall be irrevocable and the Borrowers shall be bound to prepay in
      accordance with such notice.

              

      

       

      
        	
                9.4

              	
                Mandatory Prepayment
      in case of Sale or Total Loss.  If any of the Vessels is
      sold or declared a Total Loss the Borrowers shall provide the Agent with
      an evaluation of the Fair Market Values of all Delivered Vessels and of
      the actual value of the Vessels under Construction, such evaluation being
      not older than three (3) Months and being prepared by a broker or expert
      accepted by the Agent, unless the Agent has evaluated the Vessels’ Fair
      Market Value and such evaluation is not older than three (3)
      Months.

              

      

       

      In case
of a sale or Total Loss of any of the Vessels the Borrowers shall make a
mandatory prepayment in accordance with this Clause.

       

      
        	
                9.4.1

              	
                In
      case the sale or Total Loss of a Vessel occurs before all Vessels are
      delivered by the Builder to the Borrowers, the Borrowers shall prepay an
      amount equalling the amount outstanding under the Relevant Tranche(s)
      drawn in respect of such Vessel. Until the Borrowers have not prepaid such
      amount, the Lenders shall have the right to cancel the remaining
      Commitment in an amount equivalent to the prepayment
  due.

              

      

       

      
        	
                9.4.2

              	
                In
      case the sale or Total Loss of a Vessel occurs after the delivery of the
      last Vessel by the Builder, the Borrowers shall prepay an amount equalling
      the Relevant Vessel’s Facility Ratio of the Loan
  Amount.

              

      

       

      
        	
                9.4.3

              	
                In
      case of a Total Loss the prepayment shall be made upon receipt of the
      insurance proceeds in respect of the Total Loss, however not later than
      forty-five (45) days after the occurrence of the Total Loss, unless either
      an Event of Default has occurred or the Loans to Fair Market Values ratio
      requirements as set out in Clause 18.2 are not met in which case the
      prepayment shall be made within thirty (30) days after the Total Loss has
      been declared or upon receipt of the insurance proceeds in respect of the
      Total Loss, whichever is the
earlier.

              

      

       

      
        
          
          

        

        
          24

          
            

          

        

        
          
          

        

      

       

      
        	
                9.4.4

              	
                In
      the case of a sale of a Vessel the prepayment shall be made on or before
      the delivery of the Relevant Vessel to the
  purchasers.

              

      

       

      
        	
                9.5

              	
                Non Delivery of
      Vessel(s).  In case it becomes evident that a Vessel will
      not be delivered by the Builder to the Relevant Borrower, the Borrowers
      shall prepay to the Lenders the Relevant Tranche(s) granted with respect
      to that Vessel on the earlier of (i) the repayment of the proceeds by the
      Builder to the Relevant Borrower under the Relevant Building Contract and
      (ii) the payment by the Relevant Refund Guarantor under the Refund
      Guarantee, unless either an Event of Default has occurred or the Loans to
      Fair Market Values ratio requirements as set out in Clause 18.2 are not
      met in which case such prepayment shall take place at the next Interest
      Payment Date.

              

      

       

      
        	
                9.6

              	
                Breakage Costs.
      In case the Lenders receive an obligatory or voluntary prepayment for any
      reason whatsoever on a day other than the last day of the then current
      Interest Period relating to such amount, the Borrowers shall pay to the
      Lenders on request the amount required to compensate the Lenders in full
      for any loss, premium or penalty incurred by them in respect of the
      liquidation or re-employment of funds borrowed for the purpose of
      maintaining the amount prepaid.

              

      

       

      
        	
                9.7

              	
                Cancellation of Credit
      Facility.  Each of the parties hereto may cancel the
      Credit Facility in whole or in part with four (4) weeks prior written
      notice, provided however that the Lenders shall only be entitled to cancel
      the Credit Facility in good faith and after information of SACE. The Agent
      will refrain from a cancellation of the Credit Facility if a cancellation
      would have, in the Agent’s sole and absolute discretion, a Material
      Adverse Effect.

              

      

       

      
        	
                10

              	
                PAYMENTS

              

      

       

      
        	
                10.1

              	
                Payment to the
      Borrowers.  The Borrowers shall specify to the Agent at
      least three (3) Banking Days prior to each date on which a payment is to
      be made to the Borrowers hereunder the account to which such payment shall
      be made.

              

      

       

      
        	
                10.2

              	
                Payments by the
      Borrowers.  All payments to be made by the Borrowers
      under this Agreement or any of the Exhibits shall be made in freely
      transferable and convertible funds in the relevant currency in which the
      relevant Tranche is denominated by that time not later than 11.00 a.m.
      Hannover time on the date upon which the relevant payment is due to any of
      the Lenders, the Mandated Lead Arranger and/or the Agent to the account
      the Agent nominates by written notice to the
  Borrowers.

              

      

       

      
        	
                10.3

              	
                Payments on non
      Banking Days.  In the event that the date on which a
      payment is due to be made hereunder is not a Banking Day, such date of
      payment shall be the next following Banking Day unless it would thereby
      fall in a new calendar Month in which event it shall be the immediately
      preceding Banking Day unless the Borrowers and the Lenders shall agree
      otherwise.

              

      

       

      
        
          
          

        

        
          25

          
            

          

        

        
          
          

        

      

       

      
        	
                10.4

              	
                Default
      Interest.  In the event that any payment to be made
      hereunder by the Borrowers to the Agent is not received on the due date
      therefore, interest will be charged by the Agent from the due date until
      the date that payment is received at a rate which is equal to the
      aggregate of

              

      

       

      
        	
                10.4.1

              	
                One-week
      EURIBOR applying on the due date for payment and on each succeeding
      Banking Day until payment in full of the amount due is received by the
      Agent, provided that if the Agent determines that such default may be
      reasonably expected to continue unremedied for a period exceeding one (1)
      week then the Agent may require by notice to the Borrowers that the
      funding cost shall be determined by reference to the EURIBIR for periods
      of such duration (not exceeding three (3) Months) as the Agent may
      designate,

              

      

       

      
        	
                10.4.2

              	
                the
      Relevant Margin and

              

      

       

      
        	
                10.4.3

              	
                a
      default funding charge of two (2) per cent per
  annum.

              

      

       

      Interest
charged under this sub-clause shall be payable on demand and unless so paid
shall be added to the defaulted amount at the end of each Month following the
due date for payment of such amount. Nothing herein shall limit the right of the
Lenders to claim from the Borrowers further compensation for damages suffered
(Schadenersatz) as a
result of the Borrowers having failed to pay any amount in respect of interest
payable by them under this Agreement or any of the Security Documents on the due
date for such payment. However, the Borrowers shall retain the right to prove
that the damages suffered by the Lenders were less or that the Lenders have not
suffered any damage.

       

      
        	
                10.5

              	
                No Set-Off by
      Borrowers.  All payments to be made by the Borrowers
      hereunder shall be made without set-off or
  counterclaim.

              

      

       

      
        	
                10.6

              	
                Clear of
      Taxes.  All payments to be made by the Borrowers
      hereunder shall be made free and clear of and without deduction for or on
      account of any present or future Taxes of any nature now or hereafter
      imposed unless the Borrowers are compelled by law to make payment subject
      to any such Taxes. In that event the Borrowers shall (i) pay to the
      Lenders such additional amounts as may be necessary to ensure that the
      Lenders receive a net amount equal to that which they would have received
      had such payment not been made subject to any Taxes, and (ii) deliver to
      the Agent within ten (10) days of any request by it an official receipt in
      respect of the payment of any Taxes so
deducted.

              

      

       

      
        	
                10.7

              	
                Compensation of
      Lenders.  If any amount of principal is, for any reason
      whatsoever prepaid on a day other than the last day of the then current
      Interest Period relating to such amount the Borrowers shall pay to the
      Lenders on request such amount as may be necessary to compensate the
      Lenders for any loss or premium or penalty incurred by them in respect of
      the liquidation or re-employment of funds borrowed for the purpose of
      maintaining the amount prepaid.

              

      

       

      
        
          
          

        

        
          26

          
            

          

        

        
          
          

        

      

       

      
        	
                10.8

              	
                Interest Calculation
      Method.  Interest and any other payments under this
      Clause of an annual nature shall accrue from day to day and be calculated
      on the basis of the actual number of days elapsed and a year of three
      hundred sixty (360) days.

              

      

       

      
        	
                10.9

              	
                Priority of Payments,
      Waterfall.  All moneys (unless otherwise stipulated by
      this Agreement) received by the Lenders under this Agreement and the
      Security Documents shall be applied in the following
  order:

              

      

       

      
        	
                10.9.1

              	
                in
      satisfaction of all costs and expenses of the Mandated Lead Arranger then
      accrued hereunder and unpaid,

              

      

       

      
        	
                10.9.2

              	
                in
      satisfaction of all costs and expenses of the Agent then accrued hereunder
      and unpaid,

              

      

       

      
        	
                10.9.3

              	
                in
      satisfaction of all costs and expenses of the Lenders then accrued and
      unpaid, and all other amounts (other than specified under Sub-Articles
      11.9.5 and 11.9.6) due and payable to them hereunder or under any of the
      Security Documents;

              

      

       

      
        	
                10.9.4

              	
                in
      satisfaction of any accrued interest then due on the Loans except for the
      Credit Facility;

              

      

       

      
        	
                10.9.5

              	
                in
      satisfaction of any principal of the Loans except for the Credit Facility
      then outstanding;

              

      

       

      
        	
                10.9.6

              	
                in
      satisfaction of any amounts outstanding under the Master
      Agreements;

              

      

       

      
        	
                10.9.7

              	
                in
      satisfaction of any accrued interest then due on the Credit
      Facility;

              

      

       

      
        	
                10.9.8

              	
                in
      satisfaction of any principal of the Credit Facility then
      outstanding;

              

      

       

      
        	
                10.9.9

              	
                in
      satisfaction of the Ongoing Guarantee
Fee;

              

      

       

      
        	
                10.9.10

              	
                the
      balance (if any) will be released to the
  Borrowers.

              

      

       

      
        	
                10.10

              	
                Pro rata
      Application.  If several of the claims mentioned above
      have the same ranking, the monies received shall be applied pro
      rata.

              

      

       

      
        	
                11

              	
                SUBSTITUTE
      RATE AND SUBSTITUTE BASIS

              

      

       

      
        	
                11.1

              	
                Change in
      Circumstances.  If at any time prior to the commencement
      of any Interest Period the Lenders shall have determined (which
      determination shall save in case of manifest error be conclusive and
      binding on the Borrowers) that:

              

      

       

      
        	
                11.1.1

              	
                by
      reason of circumstances affecting the Interbank Markets adequate and fair
      means do not exist for ascertaining the interbank rate applicable to the
      Loans or any part thereof during such Interest Period,
  or

              

      

       

      
        
          
          

        

        
          27

          
            

          

        

        
          
          

        

      

       

      
        	
                11.1.2

              	
                deposits
      in an amount or amounts required for the Loans or the relevant part
      thereof for the duration of such Interest Period are not available to the
      Lenders in the Interbank Markets in sufficient amounts in the ordinary
      course of business, or

              

      

       

      
        	
                11.1.3

              	
                the
      cost of the Lenders for funding the Loans or any part thereof in the
      Interbank Markets would be higher than the aggregate of EURIBOR, and
      twenty five (25) percent of the Relevant Margin for the relevant Interest
      Period,

              

      

       

      the Agent
in each case shall as soon as practicable give notice of such determination to
the Borrowers and the provisions of the following paragraphs shall
apply.

       

      
        	
                11.2

              	
                Substitute
      Rate.  In case no means exist for ascertaining the
      interbank rate as per Clause 11.1.1, the Agent, during a period of ten
      (10) Banking Days from the date of any such notice given pursuant to
      Clause 11.1, shall certify to the Borrowers (a) an alternative method of
      fixing the rate of interest (the “Substitute Rate”) which shall reflect
      (i) the cost to the Lenders of funding the Loans or any part thereof from
      the Interbank Markets or other sources, as the case may be, and (ii) the
      Relevant Margin, and (b) the cost of establishing alternative Interest
      Periods, if applicable. In establishing the Substitute Rate the Lenders
      shall have regard to reasonable wishes of the Borrowers and shall use to
      the extent it is reasonably possible its best efforts to reduce its costs
      of funding the Loans.

              

      

       

      The
Borrowers shall notify the Agent in writing within five (5) Banking Days of the
receipt of such certificate from the Agent whether or not they accept such
Substitute Rate. If the Borrowers so accept in writing, or do not notify the
Agent whether or not they accept as aforesaid, such Substitute Rate shall apply
in accordance with its terms. In case the Borrowers notify the Agent in writing
that they do not accept such Substitute Rate, then the Borrowers and the Agent
shall enter into negotiations (for a period of not more than thirty days) with a
view to agreeing on the Substitute Rate for determining the rate of interest.
Should the Borrowers and the Agent not agree an the Substitute Rate, then the
Borrowers shall prepay to the Lenders the Loans or any part thereof to which
this Article applies on the next Interest Payment Date in the currency the Loans
or any part thereof was funded together with interest thereon at the Interest
Rate applicable to the immediately preceding Interest Period.

       

      
        	
                11.3

              	
                Review of
      Circumstances (Substitute Rate).  As long as the
      Substitute Rate applies, the Lenders, in consultation of the Agent with
      the Borrowers, shall in sufficient time prior to the end of any Interest
      Period review whether the circumstances are such that a interbank rate may
      again be determined.

              

      

       

      
        	
                11.4

              	
                Substitute
      Basis.  In case deposits in EUR are not available to the
      Lenders or any of them as per Clause 11.1.2 above, the Agent, during a
      period of ten (10) Banking Days from the date of any such notice pursuant
      to Clause 11.1, shall certify to the Borrowers an alternative basis (the
      “Substitute Basis”) for maintaining the Loans or any part thereof. Such
      Substitute Basis may include an alternative method of fixing the rate of
      interest (which shall reflect the cost to the Lenders of funding the Loans
      or any part thereof from other sources plus the Relevant Margin),
      alternative currencies for the Loans or any part thereof, and in
      establishing such Substitute Basis the Lenders shall have regard to the
      reasonable wishes of the Borrowers and shall use to the extent it is
      reasonably possible their best efforts to reduce its costs of funding the
      Loans.

              

      

       

      
        
          
          

        

        
          28

          
            

          

        

        
          
          

        

      

       

      The
Borrowers shall notify the Agent in writing within five (5) Banking Days of
receipt of such certificate from the Agent whether or not they accept such
Substitute Basis. In case the Borrowers so accept, such Substitute Basis shall
apply in accordance with its terms. In case the Borrowers do not accept or do
not notify whether or not they accept as aforesaid, then the Borrowers and the
Agent shall enter into negotiations (for a period of not more than thirty days)
with a view to agreeing on the Substitute Basis. Should the Borrowers and the
Agent not agree on the Substitute Basis, then the Borrowers shall prepay to the
Lenders the Loans or any part thereof to which this Clause applies on the next
Interest Payment Date together with interest thereon at the Interest Rate
applicable to the immediately preceding Interest Period.

       

      
        	
                11.5

              	
                Review of
      Circumstances (Substitute Basis).  As long as the Loans
      or any part thereof is maintained on the Substitute Basis, the Lenders, in
      consultation between the Agent with the Borrowers, shall in sufficient
      time prior to the end of any Interest Period review whether the
      circumstances are such that the Loans or the respective part thereof may
      be funded again in the London Interbank
Market.

              

      

       

      
        	
                11.6

              	
                Necessary Amendments
      to Security Documents.  If a Substitute Rate or a
      Substitute Basis comes into effect or if the interbank rate as per Clause
      11.1.1 or the Interbank Market again governs the Loans or any part
      thereof, both pursuant to the terms of this Clause, the Borrowers agree to
      execute, deliver, record and endorse at their own expense amendments to
      the Security Documents reflecting the same and such other documents as the
      Lenders shall reasonably request in order to maintain the validity of any
      of the Security Documents.

              

      

       

      
        	
                12

              	
                SECURITY

              

      

       

      The
Outstanding Indebtedness (including the Swap Exposure) shall be secured in
accordance with this Clause.

       

      
        	
                12.1

              	
                General Rules
      applicable to this Clause and Security mentioned
      herein.  It is hereby expressly agreed
    that:

              

      

       

      
        	
                12.1.1

              	
                the
      collateral listed herein shall serve as security for the Outstanding
      Indebtedness,

              

      

       

      
        	
                12.1.2

              	
                whenever
      reference is made in this Clause to an assignment of rights, this shall
      include, unless otherwise expressly stipulated, the execution of the
      notices related to such assignment and the Agent’s right to make use of
      such notices and to notify the debtor about the assignment at any
      time.

              

      

       

      
        
          
          

        

        
          29

          
            

          

        

        
          
          

        

      

       

      
        	
                12.2

              	
                The Loan
      CT.  The Loan CT shall be secured
  by:

              

      

       

      
        	
                12.2.1

              	
                the
      Assignments of the Building
Contracts,

              

      

       

      
        	
                12.2.2

              	
                the
      Assignments of the Refund
Guarantees,

              

      

       

      
        	
                12.2.3

              	
                the
      Corporate Guarantee.

              

      

       

      
        	
                12.3

              	
                The Loan
      LT.  The Loan LT shall be secured with regard to each
      Delivered Vessel by:

              

      

       

      
        	
                12.3.1

              	
                the
      Acknowledgement and Submission and the
Hypothec;

              

      

       

      
        	
                12.3.2

              	
                an
      assignment of the Relevant Vessel’s Insurances by the Relevant Borrower
      and the Bareboat Charterer, such assignment to be substantially in the
      form of Exhibit 7 attached hereto;

              

      

       

      
        	
                12.3.3

              	
                an
      assignment of the Relevant Vessel’s Insurances by the Assured(s) (if any),
      such assignment to be substantially in the form of Exhibit 8 attached
      hereto;

              

      

       

      
        	
                12.3.4

              	
                an
      assignment of the Relevant Vessel’s Earnings by the Relevant Borrower and
      the Bareboat Charterer, such assignment to be substantially in the form of
      Exhibit 9 attached hereto;

              

      

       

      
        	
                12.3.5

              	
                pledges
      of the Earnings Accounts, such pledges to be in the form of Exhibit 10
      attached hereto;

              

      

       

      
        	
                12.3.6

              	
                the
      SACE Guarantee.

              

      

       

      
        	
                12.4

              	
                Credit
      Facility.  The Credit Facility shall be secured with
      regard to each Delivered Vessel by the collateral set forth in Clause
      12.3.1 through to Clause 12.3.5, provided, however, that all moneys
      received by the Lenders under this Agreement and the Security Documents
      set forth in Clause 12.3.2 through to Clause 12.3.5 shall be applied only
      junior in rank to the indebtedness outstanding with regard to the Credit
      Facility, as set forth in Clause
10.9.

              

      

       

      
        	
                12.5

              	
                Swap
      Exposure.  During the entire Security Period the Swap
      Exposure shall be secured by the security listed in Clause 12 hereof,
      provided, however, that all moneys received by the Lenders under this
      Agreement and the Security Documents set forth in this Clause 12 shall be
      applied in accordance with Clause
10.9.

              

      

       

      
        	
                13

              	
                INSURANCES

              

      

       

      
        	
                13.1

              	
                Insurance
      Conditions.  The Borrowers (without prejudice to the
      terms of the assignments of insurances referred to in Clause 12) hereby
      agree that all the Insurances regarding the Delivered Vessels shall be
      taken out by first class international underwriters of recognized standing
      and assigned to the Lenders and further
agree:

              

      

       

      
        	
                13.1.1

              	
                to
      insure and keep insured the Delivered Vessels in United States Dollar or
      such other currency as may be approved in writing by the Agent at the
      Borrowers’ own expense in the full Insurance Value but in no event for
      less than one hundred and twenty (120) percent of the total amount
      outstanding of the Relevant Tranche regarding the Relevant Vessel against
      fire, marine and other risks (including Excess Risks) and War
      Risks;

              

      

       

      
        
          
          

        

        
          30

          
            

          

        

        
          
          

        

      

       

      
        	
                13.1.2

              	
                to
      enter the relevant Delivered Vessel in the name of the Relevant Borrower
      for its full value and tonnage in a protection and indemnity association
      approved by the Agent against all protection and indemnity risks with
      highest available limit of liability (except for the case of oil pollution
      which shall be covered to the highest limit for the type of the Delivered
      Vessel accepted by first class protection and indemnity
      associations);

              

      

       

      
        	
                13.1.3

              	
                to
      effect war risk insurance (hull and P&I), including cover in respect
      of vandalism, sabotage and malicious mischief as well as the London
      Blocking and Trapping Addendum, the war P&I cover having a separate
      limit for the same amounts insured under the war hull cover, and such
      additional Insurances and at such terms and such conditions as shall in
      the reasonable opinion of the Agent be necessary or
    advisable;

              

      

       

      
        	
                13.1.4

              	
                Loss
      of Hire to be taken out for a period of 14/180/180 days or another period
      approved by the Agent subject to ABS 1/10/83 Wording - including war, NMIP
      1996 - Chapter 16, or equivalent conditions. Loss of Hire war can be taken
      out under separate basic war risks insurance. The Loss of Hire insurance
      shall contain an automatic renewal
clause.

              

      

       

      
        	
                13.1.5

              	
                to
      effect the Insurances upon such terms as shall from time to time be
      approved in writing by the Agent and through such brokers (the “Approved
      Brokers”) and with such insurance companies, underwriters, war risks and
      protection and indemnity associations as shall from time to time be
      approved in writing by the Agent;

              

      

       

      
        	
                13.1.6

              	
                to
      procure that a Loss Payable Clause in the form attached as Exhibit 12 and
      being attached to the assignment of Insurances as per Exhibits 7 and 8 are
      included in all policies relative to the Insurances referred to in this
      Clause;

              

      

       

      
        	
                13.1.7

              	
                to
      renew the Insurances at least fourteen (14) days before the relevant
      policies or contracts expire and to procure that the Approved Brokers
      shall promptly confirm in writing to the Agent as and when each such
      renewal is effected;

              

      

       

      
        	
                13.1.8

              	
                punctually
      to pay all premiums, calls contributions or other sums payable in respect
      of the Insurances and to produce to the Agent all relevant receipts when
      so required by the Agent;

              

      

       

      
        	
                13.1.9

              	
                to
      arrange for the execution of such guarantees as may from time to time be
      required by any protection and indemnity or War Risks
      association;

              

      

       

      
        
          
          

        

        
          31

          
            

          

        

        
          
          

        

      

       

      
        	
                13.1.10

              	
                to
      procure that the interest of the Agent or of the Lenders (as determined by
      the Agent) shall be duly endorsed upon all slips, cover notes, policies,
      certificates of entry or other instruments of insurance issued or to be
      issued in connection with the Insurances aforesaid and to procure that the
      said slips, cover notes, policies, certificates of entry or other
      instruments of insurance issued or to be issued shall provide for fourteen
      (14) days prior written notice to be given to the Agent by the Approved
      Brokers in the event of cancellation of
  Insurances;

              

      

       

      
        	
                13.1.11

              	
                to
      procure that all such instruments of insurance as are referred to in
      Clause 13.1.10 hereinabove shall be deposited with the Agent or with the
      Approved Brokers and that such brokers shall provide the Agent with
      certified copies thereof and a letter or letters of undertaking in the
      form of Exhibit 13 or in another form acceptable to the
    Agent;

              

      

       

      
        	
                13.1.12

              	
                to
      procure that the protection and indemnity and/or war risks association
      wherein the Delivered Vessels are entered shall provide the Agent with a
      copy of the Certificate of Entry and a letter or letters of undertaking in
      such form as may be required by the Agent and in the case of the
      protection and indemnity association such letter of undertaking shall be
      in the form of Exhibit 14 or in another form acceptable to the
      Agent;

              

      

       

      
        	
                13.1.13

              	
                to
      promptly provide the Agent with full information regarding any casualty or
      other accident or damage to any of the Delivered Vessels involving an
      amount in excess of the lesser of (i) five (5) percent of the amount
      insured and (ii) Euros one million (EUR 1,000,000.00), or in consequence
      whereof any of the Delivered Vessels has become or may become a Total
      Loss;

              

      

       

      
        	
                13.1.14

              	
                not
      to do any act nor voluntarily suffer nor permit any act to be done whereby
      any Insurance shall or may be suspended or avoided and not to suffer nor
      permit any of the Delivered Vessels to engage in any voyage nor to carry
      any cargo not permitted under the Insurances in effect without first
      covering the relevant Delivered Vessel to the amount herein provided for
      with insurance satisfactory to the Agent for such voyage or the carriage
      of such cargo and (without limitation to the generality of the foregoing)
      in particular not to permit any of the Delivered Vessels to enter or trade
      to any zone which is declared a war zone by any Government or by the
      relevant Delivered Vessel’s War Risks Insurers unless the Borrowers have
      effected at their expense such special insurance as the Agent may require
      and the Agent has received sufficient evidence from the underwriters of
      the existence of such insurance
cover;

              

      

       

      
        	
                13.1.15

              	
                to
      apply all amounts available in respect of the Insurances as are paid to
      the Borrowers to the repair of the damage and the reparation of the loss
      in respect of which the said amounts shall have been received or to the
      reimbursement of the Borrowers or operators for monies expended by it/them
      for repair of the damage or loss;

              

      

       

      
        	
                13.1.16

              	
                that
      according to general principles of insurance law the Lenders shall be
      entitled to inform the Approved Broker through which the Insurances
      referred to in Clause 13.1 are effected about facts and/or circumstances
      which could be material for the decision to accept the risk of such
      Insurances and for the rate of
premium;

              

      

       

      
        
          
          

        

        
          32

          
            

          

        

        
          
          

        

      

       

      
        	
                13.1.17

              	
                ensure
      that, if any of the Delivered Vessels shall be insured under any form of
      fleet cover, there shall (unless otherwise agreed by the Agent) be
      contained in such letters of undertaking, inter alia, undertakings that
      the brokers, underwriters, association or club (as the case may be) will
      not set off claims relating to the relevant Delivered Vessel against
      premiums, calls or contributions in respect of any other vessel or other
      insurance, and that the insurance cover of the relevant Delivered Vessel
      will not be cancelled by reason of non-payment of premiums, calls or
      contributions relating to any other vessel or other insurance; failing
      receipt of such undertaking, the Borrowers will instruct the brokers,
      underwriters, association or club concerned to issue a separate policy or
      certificate of entry for the Relevant Vessel in the sole name of the
      Relevant Borrower or its brokers as agents for the Relevant
      Borrower.

              

      

       

      
        	
                13.2

              	
                MII/MAP.  The
      Agent for and on behalf of the Lenders shall be entitled to take out in
      its own name or in the name of the
Lenders

              

      

       

      
        	
                13.2.1

              	
                a
      Mortgagee’s Interest insurance covering an amount at least equal to one
      hundred twenty percent (120%) of the Loan being outstanding at that time,
      and

              

      

       

      
        	
                13.2.2

              	
                an
      Additional Perils (Oil Pollution) insurance covering an amount at least
      equal to one hundred ten percent (110%) of the Loan being outstanding at
      that time.

              

      

       

      Any cost
arising from such insurances as mentioned in Sub-Clauses 13.2.1 and 14.2.2 shall
be conclusively notified by the Agent to the Borrowers and shall be borne by the
Borrowers.

       

      
        	
                13.3

              	
                US
      Waters.  Should the Delivered Vessels or any of them be
      operated by any of the Borrowers, any operator or charterer within US
      territory waters (200 miles zone) or should it be intended to enter any US
      harbour then the Borrowers are obliged to insure such Delivered Vessel
      against all risks as the Agent deems necessary by first class underwriters
      (e.g. maximum available additional oil pollution cover in excess of the
      oil pollution cover provided by the P&I Club, drug seizure
      etc.).

              

      

       

      
        	
                14

              	
                ENVIRONMENTAL
      MATTERS

              

      

       

      
        	
                14.1

              	
                Definitions.  In
      this Clause

              

      

       

      
        	
                14.1.1

              	
                “Environmental
      Approval” means any approval, license, permit, exemption or authorisation
      required under any applicable Environmental Law;
  and

              

      

       

      
        
          
          

        

        
          33

          
            

          

        

        
          
          

        

      

       

      
        	
                14.1.2

              	
                “Environmental
      Claim” means:

              

      

       

      
        	
                14.1.2.1

              	
                any
      claim by any governmental, juridical or regulatory authority which arises
      out of an Environmental Incident or an alleged Environmental Incident or
      which relates to any Environmental Law;
and

              

      

       

      
        	
                14.1.2.2

              	
                any
      claim by any other person which relates to an Environmental Incident or to
      an alleged Environmental Incident; whereby “claim” means a claim for
      damages, compensation or any other payment of any kind; an order or
      direction to take certain action or to desist from or suspend certain
      action, and any form of enforcement or regulatory action, including the
      arrest or attachment of any asset;
and

              

      

       

      
        	
                14.1.3

              	
                “Environmental
      Incident” means:

              

      

       

      
        	
                14.1.3.1

              	
                any
      release or potential release of Environmentally Sensitive Material from
      any of the Delivered Vessels; and

              

      

       

      
        	
                14.1.3.2

              	
                any
      incident in which Environmentally Sensitive Material is released or
      threatened to be released from any of the Delivered Vessels and which
      involves a collision between any of the Delivered Vessels and another
      vessel or some incident of navigation or operation, in either case, in
      connection with which that Delivered Vessel is actually or potentially
      liable to be arrested and/or that Delivered Vessel or any of the Borrowers
      and/or any operator or the Manager is at fault or allegedly at fault or
      otherwise liable to any legal or administrative action;
  and

              

      

       

      
        	
                14.1.3.3

              	
                any
      other incident in which Environmentally Sensitive Material is released or
      threatened to be released otherwise than from any of the Delivered Vessels
      and in connection with which any of the Delivered Vessels is actually or
      potentially liable to be arrested and/or where any of the Borrowers and/or
      any operator or the Manager of that Delivered Vessel is at fault or
      allegedly at fault or otherwise liable to any legal or administrative
      action; and

              

      

       

      
        	
                14.1.4

              	
                “Environmental
      Law” means any law relating to pollution or protection of the environment,
      to the carriage of Environmentally Sensitive Material or to actual or
      threatened releases of Environmentally Sensitive Material;
    and

              

      

       

      
        	
                14.1.5

              	
                “Environmentally
      Sensitive Material” means oil, oil products and any other substance
      (including any gas) which is (or is capable of being or becoming)
      polluting, toxic or hazardous, except for those materials for whose
      transport the vessels are dedicated and used for in the ordinary course of
      their business.

              

      

       

      
        	
                14.2

              	
                Borrowers’
      Undertakings.  The Borrowers
  will:

              

      

       

      
        	
                14.2.1

              	
                comply
      with all applicable Environmental Laws and will maintain in force and
      promptly obtain or renew all Environmental Approvals required to operate
      its business as from time to time conducted or reasonably anticipated to
      be conducted;

              

      

       

      
        
          
          

        

        
          34

          
            

          

        

        
          
          

        

      

       

      
        	
                14.2.2

              	
                notify
      the Agent forthwith in writing
upon:

              

      

       

      
        	
                14.2.2.1

              	
                any
      Environmental Claim being made against them and/or any operator or the
      Manager for the time being of any of the Delivered Vessels, or otherwise
      in connection with any of the Delivered Vessels;
  and

              

      

       

      
        	
                14.2.2.2

              	
                any
      Environmental Incident occurring;

              

      

       

      
        	
                14.2.3

              	
                keep
      the Agent advised in writing on such regular basis and in such detail(s)
      as the Agent shall require, of their response to any Environmental Claim
      made in connection with any of the Delivered Vessels or Environmental
      Incident;

              

      

       

      
        	
                14.2.4

              	
                to
      indemnify the Lenders against any losses and/or costs and/or taxes of
      whatsoever nature they might incur deriving from an Environmental Claim or
      an Environmental Incident.

              

      

       

      
        	
                15

              	
                CHANGE
      OF CIRCUMSTANCES

              

      

       

      
        	
                15.1

              	
                Compensation of
      Lenders.  If

              

      

       

      
        	
                15.1.1

              	
                any
      law, regulation, treaty or official directive (whether or not having the
      force of law) or the interpretation thereof by any authority charged with
      the administration thereof:

              

      

       

      
        	
                15.1.1.1

              	
                subjects
      the Lenders to any Taxes with respect to payments of principal or of
      interest on the Loans or any other amount payable hereunder (other than
      Tax assessed, levied or collected on the overall net income of the
      Lenders); or

              

      

       

      
        	
                15.1.1.2

              	
                changes
      the basis of taxation of payments to any of the Lenders of principal or of
      interest on the Loans or of any other amount payable hereunder (other than
      a change in the basis of taxation on the overall net income of the
      Relevant Lender); or

              

      

       

      
        	
                15.1.1.3

              	
                imposes,
      modifies or deems applicable any reserve and/or special deposit
      requirements against or in respect of assets or liabilities of, or
      deposits with or for the account of, or loans or credits extended by any
      office of any of the Lenders, provided, however, that these occur or have
      consequences not earlier than (5) years after the first Drawdown;
      or

              

      

       

      
        	
                15.1.1.4

              	
                imposes
      on any of the Lenders any other condition affecting this Agreement, other
      than interest, the Commitment or the Loans or its funding provided,
      however, that these occur or have consequences not earlier than (5) years
      after the first Drawdown; or

              

      

       

      
        
          
          

        

        
          35

          
            

          

        

        
          
          

        

      

       

      
        	
                15.1.1.5

              	
                any
      of the Lenders complies with any request, law, regulation or directive
      from any competent fiscal or monetary authority (whether or not having the
      force of law);

              

      

       

      
        	
                15.1.2

              	
                and
      as a result of any of the foregoing either directly or
      indirectly

              

      

       

      
        	
                15.1.2.1

              	
                the
      costs to the Lenders or any of them of making, funding or maintaining the
      Loans or of maintaining the Commitment are increased;
  or

              

      

       

      
        	
                15.1.2.2

              	
                the
      amount of principal or any other amount payable to the Lenders or any of
      them hereunder is reduced, other than interest;
  or

              

      

       

      
        	
                15.1.2.3

              	
                the
      Lenders or any of them make any payment or foregoes any interest or other
      return on or calculated by reference to the gross amount of any sum
      receivable by it from the Borrowers
hereunder;

              

      

       

      then and
in each case upon demand from time to time the Borrowers shall pay to the
Lenders such amount as shall compensate the Lenders for such increased costs,
reduction, payment or foregone interest or other return. If the Lenders are
entitled to make a claim pursuant to this Clause, the Agent shall notify the
Borrowers of the event by reason of which they are so entitled. The Agent shall
submit to the Borrowers a letter setting out details of the event giving rise to
such compensation, the amount thereof and the manner in which it has been
calculated, in the absence of manifest error such letter shall be
conclusive.

       

      In such a
case the Borrowers may prepay the Loans in accordance with Clause 9 together
with all interest accrued thereon and all fees and other amounts (including
amounts payable referred to above) owing to the Lenders hereunder, but without
penalty.

       

      
        	
                15.2

              	
                Tax.  If
      any amount payable by the Borrowers hereunder whether in respect of
      principal, interest or otherwise is or becomes subject at any time to
      taxation in the Federal Republic of Germany or any other country, except
      for taxes on the overall income of the Lenders, the Borrowers will
      indemnify the Lenders of such amount in respect of such tax liability so
      that the Lenders receive or retain a net sum equal to the amount they
      would have received or retained had there been no such tax liability but
      if the Lenders shall be or become entitled to any tax credit or relief in
      respect of any such tax liability or deduction and if the Lenders in their
      sole determination actually receive a benefit from such tax credit or
      relief in their relevant country of domicile, incorporation or residence,
      the Lenders shall, subject to any laws or regulations applicable thereto,
      pay to the Borrowers after such benefit is effectively received by the
      Lenders such amount (which shall be conclusively certified by the Lenders)
      as shall ensure that the net amount actually retained by that recipient is
      equal to the amount which would have been retained if there had been no
      such liability or deduction. In addition the Borrowers shall indemnify the
      Lenders of any sum payable by the Borrowers under this Agreement against
      any liability for taxes in the Federal Republic of Germany or any other
      country, imposed on the Lenders by virtue of the negotiation, preparation
      or execution of this Agreement, and/or the Security Documents the
      performance of any duty or discharge of any liability hereunder and/or
      under the Security Documents or the receipt of any payment hereunder
      and/or under the Security
Documents.

              

      

       

      
        
          
          

        

        
          36

          
            

          

        

        
          
          

        

      

       

      
        	
                15.3

              	
                Change of
      Law.  Notwithstanding anything to the contrary herein
      contained, if any change in law, regulation or treaty or in the
      interpretation or application thereof by any authority charged with the
      administration thereof shall make it unlawful for the Lenders to make,
      fund or maintain the Loans, the Lenders may by written notice of the Agent
      to the Borrowers declare that the Lenders obligations hereunder shall be
      terminated forthwith whereupon the Borrowers will prepay forthwith (or if
      permitted by law on the next following Interest Payment Date) the Loans
      together with all interest accrued thereon and all fees and other amounts
      payable to the Lenders hereunder, provided, however, that no penalty shall
      be payable. The Lenders’ obligations and liabilities hereunder and its
      Commitment shall be cancelled on the giving of such Agent’s notice. In any
      such event, but without prejudice to the aforesaid liability of the
      Borrowers to prepay the Loans the Borrowers and the Lenders shall
      negotiate in good faith with a view to agreeing terms for making the Loans
      available from another jurisdiction, or funding the Loans from alternative
      sources, or otherwise restructuring the Loans on a basis which is
      lawful.

              

      

       

      
        	
                16

              	
                BASEL
      II

              

      

       

      If the
Lenders’ basis of calculation of the Loans under applicable Basel II
regulations changes due to a change in any of the Obligors’ general financial
position and/or rating, the Lenders may reassess the Margins in order to adopt
the Margins to the new calculation basis and thus determine new margins (the
“New Margins”), provided, however, that such adoption shall take effect not
earlier than the Margin Day. The Agent shall notify the Borrowers about the New
Margins in writing. The New Margins shall apply from the day the next Interest
Period commences however not earlier than one (1) Month after the Borrowers
having received the Agent’s notice to this effect.

       

      Upon
receipt of the Agent’s notice of New Margins representing an increase towards
the then current Margins the Borrowers may prepay the Loans on the last Interest
Payment Date immediately preceding the date on which the New Margin shall
commence, provided that the Agent has received not less than fourteen (14)
Business Days prior to such last Interest Payment Date the Borrowers’ written
notice to this effect.

       

      The
Borrowers may make such prepayment without paying the Lenders any penalty but,
as provided in Clause 9.6, the Borrowers shall reimburse the Lenders on demand
for any breakage cost, proven out-of-pocket expenses and legal fees the Lenders
incur due to such prepayment.

       

      
        	
                17

              	
                REPRESENTATIONS
      AND WARRANTIES

              

      

       

      
        	
                17.1

              	
                Borrowers
      Representation and Warranties.  The Borrowers hereby
      represent and warrant to and for the benefit of the Lenders that, as on
      the date hereof and on each Drawdown Date and on each Interest Payment
      Date and on each Repayment Date:

              

      

       

      
        
          
          

        

        
          37

          
            

          

        

        
          
          

        

      

       

      
        	
                17.1.1

              	
                the
      Borrowers are limited partnerships duly organized and validly existing
      under the laws of the Federal Republic of
  Germany;

              

      

       

      
        	
                17.1.2

              	
                the
      Borrowers have the perpetual corporate existence and power to enter into
      this Agreement and each of the documents to which they are a party and to
      borrow and perform their obligations hereunder and thereunder and have
      taken all necessary corporate or other actions required to authorize the
      execution, delivery and performance of this Agreement and those of the
      documents to which they are a
party;

              

      

       

      
        	
                17.1.3

              	
                the
      execution, delivery and performance of this Agreement and each of the
      documents to which any of the Borrowers is a party will not violate or
      exceed the powers granted to it by, or any provisions of (a) any law or
      regulation in any jurisdiction to which it is subject, (b) any order or
      decree of any governmental agency or court of or in any jurisdiction to
      which it is subject, (c) the constitutional documents, or (d) any
      mortgage, deed, contract or agreement to which it is a party or which is
      binding upon it or any of its
assets;

              

      

       

      
        	
                17.1.4

              	
                no
      approval or consent from any governmental and quasi-governmental
      authorities is necessary under applicable law for the execution and
      delivery of this Agreement and any document and instrument delivered or to
      be delivered pursuant hereto and the mortgaging of the Vessels to the
      Lenders;

              

      

       

      
        	
                17.1.5

              	
                there
      are no actions, suits or proceedings pending or threatened against or
      affecting any of the Borrowers, its property at law or before any
      governmental authority which may affect the Borrowers’ solvency or ability
      to pay their debts or their ability to own the Delivered Vessels or affect
      a substantial part of any of the Borrowers property and none of the
      Borrowers is in default with respect to any order, writ, injunction, claim
      or demand of any court or any governmental
  authority;

              

      

       

      
        	
                17.1.6

              	
                this
      Agreement, the consummation of the transactions herein contemplated and
      the fulfillment of the terms hereof and the compliance by the Borrowers
      with all of the terms and conditions of this Agreement and all documents
      and instruments referred to herein and/or delivered pursuant hereto will
      not result in any breach by them of the terms, conditions or provisions
      of, or constitute a default under any indenture, bank loan or credit
      agreement or instrument to which any of the Borrowers is bound and will
      not result in the creation of any lien, charge or encumbrance (other than
      the Hypothec) upon any of the Borrower’s property or
    assets;

              

      

       

      
        	
                17.1.7

              	
                there
      are no material facts or circumstances which have not been disclosed to
      the Agent in writing which, if disclosed, might reasonably be expected to
      adversely affect the decision of a person considering whether to provide
      finance to the Borrowers;

              

      

       

      
        	
                17.1.8

              	
                in
      relation to the borrowing by the Borrowers of the Loan, the performance
      and discharge of their obligations and liabilities hereunder and/or under
      the Security Documents to which any of the Borrowers is a party, the
      Borrowers are acting for their own account and the foregoing will not
      involve or lead to a contravention of any law, official requirement or
      other regulatory measure or procedure which has been implemented to combat
      “money laundering” (as defined in Article 1 of the Directive (91/308/EEC)
      of the Council of the European Communities, as from time to time
      amended);

              

      

       

      
        
          
          

        

        
          38

          
            

          

        

        
          
          

        

      

       

      
        	
                17.1.9

              	
                this
      Agreement and each of the Security Documents constitute, or will
      constitute, when executed and delivered, and, in case of the Hypothec,
      when registered in the Ships Registry, legal, valid and binding
      obligations of the Borrowers, enforceable against them in accordance with
      their respective terms, subject to laws of bankruptcy, insolvency,
      liquidation or other laws affecting generally creditors’
      rights;

              

      

       

      
        	
                17.1.10

              	
                the
      Borrowers have not failed to pay any material sum when due or to perform
      any material monetary obligation under the provisions of any agreement to
      which any of them is a party or by which any of them may be bound and no
      event has occurred and is continuing which entitles, or which with the
      giving of notice, lapse of time or other condition would entitle, the
      other party or parties to any such agreement to declare such indebtedness
      to be due and payable by the Borrowers or any of
  them;

              

      

       

      
        	
                17.1.11

              	
                the
      Borrowers are not in default in the performance of any material
      non-monetary obligation under the provisions of this Agreement or any
      other agreement to which any of them is a party or by which any of them
      may be bound and no event has occurred and is continuing which entitles,
      or which with the giving of notice, lapse of time or other condition would
      entitle, the other party or parties to terminate any such agreement;
      and

              

      

       

      
        	
                17.1.12

              	
                save
      as provided by applicable laws of bankruptcy, insolvency, liquidation or
      similar laws of general application, the obligations of the Borrowers
      under this Agreement rank and will rank at least pari passu in priority of
      payment, security and in all other respects with all non-preferred
      indebtedness of the Borrowers except with respect to maritime liens which
      according to applicable law rank prior to the Hypothec,
  and

              

      

       

      
        	
                17.1.13

              	
                the
      Borrowers have not incurred any financial indebtedness other than
      financial indebtedness disclosed to the Agent in writing,
    and

              

      

       

      
        	
                17.1.14

              	
                each
      of the Relevant Borrower’s sole business is the owning and operation of
      the Relevant Vessel and other than the Relevant Vessel it does not own
      other substantial assets, and

              

      

       

      
        	
                17.1.15

              	
                the
      financial information provided pursuant to Clause 19 hereof is complete,
      accurate and not misleading in all material respects,
  and

              

      

       

      
        	
                17.1.16

              	
                the
      Corporate Guarantor shall be and remain a limited partner (Kommanditist) of each
      of the Borrowers, such Corporate Guarantor or an affiliated company of the
      Corporate Guarantor, accepted by the Agent, holding at least twenty five
      (25) percent of each of the Borrower’s share capital,
  and

              

      

       

      
        
          
          

        

        
          39

          
            

          

        

        
          
          

        

      

       

      
        	
                17.1.17

              	
                to
      the best of their knowledge, no Prohibited Payment has been made or
      provided, directly or indirectly, by (or on behalf of) any of it, any of
      their subsidiaries, their officers, directors or any other person acting
      on their behalf to, or for the benefit of, any authority (or any official,
      officer, director, agent or key employee of, or other person with
      management responsibilities in, any authority) in connection with this
      Loan Agreement or any Security Document,
and

              

      

       

      
        	
                17.1.18

              	
                none
      of the sources of funds to be used by the Borrowers in connection with any
      payments to be made by the Borrowers or any of them under the Loan
      Agreement or any Security Document or its business are of Illicit Origin,
      and

              

      

       

      
        	
                17.1.19

              	
                the
      Loans will not be used to finance equipment or sectors under embargo
      decisions of the United Nations, the World Bank, the European Union or
      Italy.

              

      

       

      
        	
                17.2

              	
                Additional
      Representation and Warranties regarding Loan CT.  The
      Borrowers furthermore hereby represent and warrant to and for the benefit
      of the Lenders that, as on the date hereof and on each Drawdown Date and
      on each Interest Payment Date and on each Repayment Date until the full
      repayment of Loan CT:

              

      

       

      
        	
                17.2.1

              	
                the
      Corporate Guarantor is a company or corporation duly organized and validly
      existing and in good standing under the laws of its
      incorporation;

              

      

       

      
        	
                17.2.2

              	
                the
      Corporate Guarantor has the perpetual corporate existence and power to
      enter into the Corporate Guarantee and to perform its obligations
      thereunder and has taken all necessary corporate or other actions required
      to authorize the execution, delivery and performance of the Corporate
      Guarantee;

              

      

       

      
        	
                17.2.3

              	
                the
      execution, delivery and performance of the Corporate Guarantee will not
      violate or exceed the powers granted to the Corporate Guarantor by, or any
      provisions of (a) any law or regulation in any jurisdiction to which
      it is subject, (b) any order or decree of any governmental agency or
      court of or in any jurisdiction to which it is subject, (c) the
      constitutional documents, or (d) any mortgage, deed, contract or
      agreement to which it is a party or which is binding upon it or any of its
      assets and except as contemplated hereby and by the documents it is a
      party to will not cause any encumbrance to arise over or to attach to all
      or any part of its revenues or assets nor oblige it to create any such
      encumbrance;

              

      

       

      
        	
                17.2.4

              	
                no
      approval or consent from any governmental and quasi-governmental
      authorities is necessary under applicable law for the execution and
      delivery of the Corporate
Guarantee;

              

      

       

      
        	
                17.2.5

              	
                according
      to the Borrowers’ records and best knowledge there are no actions, suits
      or proceedings pending or threatened against or affecting the Corporate
      Guarantor, its property at law or before any governmental authority which
      may affect the Corporate Guarantor’s solvency or ability to pay its debts
      or affect a substantial part of the Corporate Guarantor’s and according to
      the Borrowers’ records and best knowledge the Corporate Guarantor is not
      in default with respect to any order, writ, injunction, claim or demand of
      any court or any governmental
authority;

              

      

       

      
        
          
          

        

        
          40

          
            

          

        

        
          
          

        

      

       

      
        	
                17.2.6

              	
                the
      Corporate Guarantee, the consummation of the transactions therein
      contemplated and the fulfillment of the terms thereof and the compliance
      by the Corporate Guarantor with all of the terms and conditions of the
      Corporate Guarantee will not result in any breach by it of the terms,
      conditions or provisions of, or constitute a default under any indenture,
      bank loan or credit agreement or instrument to which the Corporate
      Guarantor is bound and will not result in the creation of any lien, charge
      or encumbrance upon any of the Corporate Guarantor’s property or
      assets;

              

      

       

      
        	
                17.2.7

              	
                there
      are no material facts or circumstances which have not been disclosed to
      the Agent in writing which, if disclosed, might reasonably be expected to
      adversely affect the decision of a person considering whether to provide
      finance to the Corporate Guarantor;

              

      

       

      
        	
                17.2.8

              	
                the
      Corporate Guarantee constitutes, or will constitute, when executed and
      delivered, legal, valid and binding obligations of the Corporate
      Guarantor, enforceable against it in accordance with its terms, subject to
      laws of bankruptcy, insolvency, liquidation or other laws affecting
      generally creditors’ rights.

              

      

       

      
        	
                18

              	
                ASSET
      PROTECTION

              

      

       

      
        	
                18.1

              	
                Evaluation.  The
      Borrowers covenant and undertake with the Lenders that they will from time
      to time annually upon request by the Agent, in any event not more than
      twice per year, cause the Fair Market Value of the Delivered Vessels to be
      valued in United States Dollars, Euros or British Pounds, such Fair Market
      Value being the arithmetic average of the valuations provided by one (1)
      internationally well reputed ship sale and purchase broker approved by the
      Agent, each such valuation to be made, unless the Agent requests
      otherwise, without physical inspection and on the basis of an arms-length
      transaction between willing buyer and willing seller without taking into
      account any charter party of the Delivered Vessels in force at the time of
      any such valuation and such broker being instructed to deliver to the
      Agent the aforesaid valuation in writing. All costs arising in connection
      with the obtaining of these valuations (including, but not limited to, the
      fees of the relevant broker and surveyor) shall be borne by the
      Borrowers.

              

      

       

      
        	
                18.2

              	
                Shortfall.  If
      the aggregate of the Fair Market Values assessed in accordance with Clause
      18.1 at any time after the delivery of any or all Delivered Vessels shall
      be less than one hundred twenty (120) percent of the then outstanding
      balance of the Tranches LT, then and in such case within a period of
      thirty (30) days following receipt by the Borrowers of written notice from
      the Agent notifying the Borrowers of such shortfall and specifying the
      amount thereof (which amount shall in the absence of manifest error be
      conclusive and binding upon the Borrowers) either furnish the Lenders with
      such additional security as shall be acceptable to the Lenders in their
      sole discretion for the purpose of remedying such deficiency in security
      or prepay to the Lenders (together with interest accrued thereon and any
      costs arising through such prepayment being made otherwise than at the end
      of an Interest Period) such part of the Tranches LT as shall be necessary
      to ensure compliance with the provisions of this Clause. Any additional
      security required as a result of the operation of this Clause is separate
      from and additional to any other security provided or to be provided under
      the other provisions of this Agreement and the Security
      Documents.

              

      

       

      
        
          
          

        

        
          41

          
            

          

        

        
          
          

        

      

       

       

      
        	
                19

              	
                UNDERTAKINGS

              

      

       

      
        	
                19.1

              	
                Financial
      Covenants

              

      

       

      
        	
                19.1.1

              	
                Each
      of the Borrowers undertakes to the Lenders that during the Security Period
      it will

              

      

       

      
        	
                19.1.1.1

              	
                maintain
      the Relevant Earnings Account with the
Agent;

              

      

       

      
        	
                19.1.1.2

              	
                have
      all Earnings of the Relevant Delivered Vessel paid into the Relevant
      Earnings Account.

              

      

       

      
        	
                19.1.2

              	
                The
      Borrowers undertake to the Lenders that during the Security Period they
      will:

              

      

       

      
        	
                19.1.2.1

              	
                not
      without the Agent’s prior written consent assume, guarantee or endorse or
      otherwise become or remain liable in connection with any obligation of any
      person, firm, company or other
entity;

              

      

       

      
        	
                19.1.2.2

              	
                not
      without the Agent’s prior written consent authorize or accept any capital
      commitments exceeding Euros one million (EUR 1,000,000.00), in the single
      or in the aggregate, per Borrower;

              

      

       

      
        	
                19.1.2.3

              	
                not
      enter into any shareholder loans, inter company borrowings unless these
      are fully subordinated to the Borrowers’ obligations hereunder and under
      the Security Documents and on terms and conditions acceptable to the
      Lenders;

              

      

       

      
        	
                19.1.2.4

              	
                not
      create or permit to subsist any collateral over any of its assets with the
      exception of (i) suppliers’ collateral as common in trade or industry,
      such as reservation of title or subsequent assignment by way of security,
      and (ii) banking collateral as required by banks’ general business
      conditions, and (iii) the collateral created by the Security Documents;
      provided, however, that in case of the exceptions described in (i) and
      (ii) above the Borrowers shall secure that the Lenders participate before
      or at the same time and in the same rank in this collateral or providing
      the Lenders with equal collateral (Pari
      Passu),

              

      

       

      
        	
                19.1.2.5

              	
                pay
      dividends only in case

              

      

       

      
        
          
          

        

        
          42

          
            

          

        

        
          
          

        

      

       

      
        	
                19.1.2.5.1

              	
                the
      payment of the Delivered Vessels’ running cost and of all amounts due and
      payable under this Agreement over the next twelve (12) Months is secured,
      and

              

      

       

      
        	
                19.1.2.5.2

              	
                no
      Event of Default has occurred and is
continuing,

              

      

       

      
        	
                19.1.2.6

              	
                immediately
      pay the entire Ongoing Guarantee Fee to the Agent not being allowed to
      have such a fee divided in subsequent instalments) as soon as a
      cancellation of the Loan LT and/or the declaration of the Loan LT to be
      immediately due and payable as per Clause 22
  occurs.

              

      

       

      
        	
                19.2

              	
                Covenants related to
      the Vessels under
Construction

              

      

       

      The
Borrowers undertake to the Lenders that during the construction process of the
Vessels they will

       

      
        	
                19.2.1

              	
                deliver
      to the Agent upon request copies of the reports of the construction
      supervision team of the Borrowers informing about the construction
      progress and the technical condition of each of the Vessels under
      construction;

              

      

       

      
        	
                19.2.2

              	
                ensure
      that the Agent and/or its agents are permitted to inspect the Vessels
      under construction at all reasonable times, whereby the costs of these
      inspections shall be borne by the
Borrowers.

              

      

       

      
        	
                19.3

              	
                Covenants related to
      the Delivered Vessels

              

      

       

      
        	
                19.3.1

              	
                The
      Borrowers undertake to the Lenders that during the Security Period they
      will

              

      

       

      
        	
                19.3.1.1

              	
                have
      the Delivered Vessels registered in the Ships Registry and fly the German
      flag or any other flag acceptable to the
Agent;

              

      

       

      
        	
                19.3.1.2

              	
                procure
      that at least two (2) of the first four (4) Delivered Vessels be employed
      under a time charter of a minimum duration of twelve (12) Months (or
      equivalent substitute satisfactory to the Lenders, such as a cash deposit
      to be opened and maintained by the Borrowers with the Agent and to be
      pledged to the Lenders, with an amount to cover operating expenses and
      financing cost under this Agreement for 12 months), at a charter hire in a
      sufficient amount to cover operating expenses and financing costs under
      this Agreement and furthermore on terms and conditions acceptable to the
      Lenders;

              

      

       

      
        	
                19.3.1.3

              	
                present
      a pool concept for the Vessels’ employment to the full satisfaction of the
      Lenders;

              

      

       

      
        	
                19.3.1.4

              	
                cause
      at least four (4) of the Delivered Vessels after the delivery of the last
      Vessel to be employed under the Charters or any other contract of
      employment on terms and conditions acceptable to the Agent (or equivalent
      substitute, as described in clause 19.3.1.2 above), provided that this
      covenant shall only be applicable until 31st
      December, 2014 in case the Borrowers have made all payments due hereunder
      from time to time and under any Security Documents and no Event of Default
      has occurred;

              

      

       

      
        
          
          

        

        
          43

          
            

          

        

        
          
          

        

      

       

      
        	
                19.3.1.5

              	
                cause
      the Delivered Vessels to be managed by the
  Manager;

              

      

       

      
        	
                19.3.1.6

              	
                ensure
      that the Delivered Vessels are insured in accordance with the requirements
      of this Agreement and at all times comply with all terms and conditions of
      such Insurances;

              

      

       

      
        	
                19.3.1.7

              	
                maintain
      the Delivered Vessels with, or procure that the Delivered Vessel maintain
      the following class:

              

      

       

      ABS: +A1
(E), Offshore Support Vessel AH, +AMS, *ACCU, Oil Recovery Capability Class 1,
DPS-1, FiFi-II, TCM, UWILD,

       

      and
furthermore to be classed in the highest class for vessels of its kind with the
Classification Society or with such other classification society as shall
previously have been agreed to in writing by the Agent without any overdue
recommendations or qualifications;

       

      
        	
                19.3.1.8

              	
                without
      prejudice to the aforesaid,

              

      

       

      
        
          	
                  19.3.1.8.1

                	
                  maintain
      the Delivered Vessels or procure that the Delivered Vessels be maintained
      in accordance with the highest standards of ship maintenance and operation
      for vessels of its kind;

                

        

        
           

          
            	
                    19.3.1.8.2

                  	
                    ensure
      that the Agent and/or its agents are permitted to inspect the Delivered
      Vessel at all reasonable times, whereby the costs of one (1) inspection
      per year per Delivered Vessel shall be at the Borrowers cost, unless a
      Delivered Vessel has been repaired in a shipyard or there has occurred and
      is continuing an Event of Default: in these cases also the costs of
      further inspections shall be borne by the
  Borrowers;

                  

          

          
             

            
              	
                      19.3.1.8.3

                    	
                      promptly
      effect or cause to be effected at its expense all repairs and replacements
      as and when the Agent or the Classification Society may from time to time
      require the same;

                    

            

            
               

              
                	
                        19.3.1.8.4

                      	
                        not
      to remove material parts or material equipment from any of the Delivered
      Vessels unless replaced with equipment of the same or higher value and not
      to make material alterations, which would affect any of the Delivered
      Vessels’ class.

                      

              

               

            

          

        

      

      
        	
                19.3.1.9

              	
                comply
      with all applicable  national and international laws, rules,
      regulations and orders of any governmental entity or administrative agency
      including, without limitation, constitutional provisions, statutes,
      decrees, treaties, laws, conventions and regulations having the force of
      law, applicable to the Borrowers or any of its businesses, properties or
      assets or the Delivered Vessels, including, but not limited to, the ISPS
      Code;

              

      

       

      
        
          
          

        

        
          44

          
            

          

        

        
          
          

        

      

       

      
        	
                19.3.1.10

              	
                obtain
      promptly at any time or from time to time (as the case may be) and will at
      any time comply with the terms of and do all that is necessary to maintain
      in full force and effect all registrations, licenses, consents, approvals,
      authorizations and/or declarations required under any applicable law or
      regulation of any applicable jurisdiction to enable the Borrowers to
      lawfully enter into and perform its obligations hereunder and under the
      Security Documents to which they are a party and to ensure the legality,
      validity, enforceability or admissibility in evidence in all applicable
      jurisdictions of this Agreement and the Security Documents and furnish the
      Agent with a copies of the documents obtained in complying with this
      Clause;

              

      

       

      
        	
                19.3.1.11

              	
                if
      an Event of Default has occurred and the Lenders have accelerated the
      Loans, direct or cause to direct any of the Delivered Vessels or all of
      them to any destination or port as the Agent may
  request.

              

      

       

      
        	
                19.3.2

              	
                The
      Borrowers furthermore undertake to the Lenders that during the Security
      Period to comply or to procure that the Manager will comply within the
      requisite applicable time limits for vessels of same type, size, age and
      flag of the Delivered Vessels with the International Management Code for
      Safe Operation of Ships and for Pollution Prevention (as the same may be
      amended from time to time, the “ISM Code”) adopted by the International
      Maritime Organisation or any replacement of the ISM Code and in
      particular, without prejudice to the generality of the foregoing, as and
      when required to do so by the ISM Code and at all times
      thereafter,

              

      

       

      
        	
                19.3.2.1

              	
                to
      hold or to procure that the Manager holds, a valid Document of Compliance
      (being a document issued to a vessel operator as evidence of its
      compliance with the requirements of the ISM Code) duly issued to the
      Borrowers or the Manager (as the case may be) pursuant to the ISM Code and
      a valid Safety Management Certificate (being a document issued to a vessel
      as evidence that the vessel operator and its shipboard management operate
      in accordance with an approved structured and documented system enabling
      the personnel of that vessel operator to implement effectively the safety
      and environmental protection policy of that vessel operator) duly issued
      to the Delivered Vessels pursuant to the ISM
  Code,

              

      

       

      
        	
                19.3.2.2

              	
                upon
      the Agent’s request, to provide the Agent with copies of any such Document
      of Compliance and Safety Management Certificate as soon as the same are
      issued and after every renewal and

              

      

       

      
        
          
          

        

        
          45

          
            

          

        

        
          
          

        

      

       

      
        	
                19.3.2.3

              	
                to
      keep or to procure that there is kept, on board of each Delivered Vessel a
      copy of any such Document of Compliance and the original of any such
      Safety Management Certificate.

              

      

       

      
        	
                19.3.3

              	
                The
      Borrowers undertake to the Lenders that during the Security Period they
      will not

              

      

       

      
        	
                19.3.3.1

              	
                without
      the Agent’s prior written consent cancel, change, amend or modify any
      Charter;

              

      

       

      
        	
                19.3.3.2

              	
                enter
      into any bareboat charter contract regarding any of the Delivered Vessels
      other than those referred to in Clause
20;

              

      

       

      
        	
                19.3.3.3

              	
                create,
      incur or allow to exist over any of the Delivered Vessels any further
      hypothec, mortgage, charge, lien or pledge other than (a) the Hypothec,
      (b) liens for Taxes not delinquent or being contested in good faith, (c)
      liens for current crew’s wages and salvage, (d) liens covered by valid
      policies of insurance held by the Lenders and meeting the requirements of
      Clause 13, and (e) liens not covered by insurance, incurred in the
      ordinary course of business and not more than thirty (30) days past
      due;

              

      

       

      
        	
                19.3.3.4

              	
                without
      the Agent’s prior written consent permit any change of register, flag,
      Classification Society, ownership or management of any of the Delivered
      Vessels;

              

      

       

      
        	
                19.3.3.5

              	
                own,
      charter or manage any vessel other than the
  Vessels;

              

      

       

      
        	
                19.3.3.6

              	
                permit
      any of the Delivered Vessels to be operated in any way contrary to
      applicable law;

              

      

       

      
        	
                19.3.3.7

              	
                permit
      any of the Delivered Vessels to carry nuclear fuels or radioactive
      products or waste;

              

      

       

      
        	
                19.3.3.8

              	
                permit
      any of the Delivered Vessels to carry toxic
  waste;

              

      

       

      
        	
                19.3.3.9

              	
                permit
      any of the Delivered Vessels to carry arms or
  ammunition.

              

      

       

      
        	
                19.4

              	
                Reporting
      Covenants

              

      

       

      The
Borrowers undertake to the Lenders that during the Security Period they
will

       

      
        	
                19.4.1

              	
                deliver
      to the Agent copies of the Borrowers’ Financial Statements, not later than
      30th
      April of each year, for the first time until 30th
      April, 2009 for the business year 2008, and such other information
      (including financial information) as the Agent may from time to time
      reasonably require;

              

      

       

      
        	
                19.4.2

              	
                deliver
      to the Agent copies of the Borrowers’ unaudited semi annual financial
      results and cash flow projections, not later than ninety (90) days after
      the end of each half-year, for the first time until 30th
      March, 2009;

              

      

       

      
        
          
          

        

        
          46

          
            

          

        

        
          
          

        

      

       

      
        	
                19.4.3

              	
                deliver
      to the Agent copies of each of the Corporate Guarantor’s Financial
      Statements, on a consolidated basis, not later than 30th
      September of each year, for the first time until 30th
      September, 2008 for the business year 2007, and such other information
      (including financial information) as the Agent may from time to time
      reasonably require regarding the Corporate
  Guarantor;

              

      

       

      
        	
                19.4.4

              	
                deliver
      to the Agent upon the Agent’s request, class certificates for hull and
      machinery and the Agent shall be permitted access to all reports, files
      and records of the Classification
Society;

              

      

       

      
        	
                19.4.5

              	
                deliver
      to the Agent upon the Agent’s request, information as to the employment of
      the Delivered Vessels, such as charter contracts, operating expenses
      etc;

              

      

       

      
        	
                19.4.6

              	
                deliver
      to the Agent such financial information on the Borrowers and on the
      Corporate Guarantor, the Manager and such further information on the
      Delivered Vessels as the Agent may from time to time
    require;

              

      

       

      
        	
                19.4.7

              	
                promptly
      inform the Agent of any occurrence of which they become aware which in
      their reasonable opinion might adversely affect their ability to perform
      their obligations hereunder or under any Security Document to which they
      are a party or constitute an Event of
Default;

              

      

       

      
        	
                19.4.8

              	
                promptly
      inform the Agent of any damage to or alteration of any of the Delivered
      Vessels exceeding the value of an amount in excess of the lesser of (i)
      five (5) percent of the amount for which the relevant Delivered Vessel is
      insured or (ii) Euros one million (EUR
  1,000,000.00).

              

      

       

      
        	
                19.5

              	
                Covenants regarding
      Corporate Structure

              

      

       

      The
Borrowers further undertake to the Lenders that during the Security Period they
will not without the prior written consent of the Agent:

       

      
        	
                19.5.1

              	
                allow
      any change in any of the Borrower’s corporate or shareholder structure to
      the effect that the Relevant Borrower ceases to be either partly owned by
      the Corporate Guarantor by a share of 25% directly or through an
      affiliated company accepted by the Agent or ceases to be a limited
      partnership;

              

      

       

      
        	
                19.5.2

              	
                allow
      any change of the General Partner, any change in the General Partner’s
      corporate or shareholder structure;

              

      

       

      
        	
                19.5.3

              	
                change
      the nature of any of the Borrowers’ business or commence any business
      other than the ownership and operation of the Delivered
      Vessels;

              

      

       

      
        	
                19.5.4

              	
                consolidate
      with or merge into any other corporation or merge any other corporation
      into any of the Borrowers.

              

      

       

      
        
          
          

        

        
          47

          
            

          

        

        
          
          

        

      

       

      
        	
                20

              	
                BAREBOAT
      REGISTRATION

              

      

       

      
        	
                20.1

              	
                Approval to Bareboat
      Registration.  At the Borrowers’ request the Lenders are
      ready to consent to the Delivered Vessels being temporarily registered in
      the name of a Bareboat Charterer as a chartered bareboat in a ships
      registry under a flag acceptable to the Agent
  provided

              

      

       

      
        	
                20.1.1

              	
                the
      relevant Bareboat Charterer is a wholly owned and controlled subsidiary of
      the Relevant Borrower,

              

      

       

      
        	
                20.1.2

              	
                all
      necessary or advisable approvals, consents, permits, certificates of
      registry, etc. have been granted by the German and the relevant
      authorities of the flag state and have been produced to the Agent in
      original or certified true and complete copy and the following documents
      have been produced to the Agent:

              

      

       

      
        	
                20.1.2.1

              	
                evidence
      in writing that the relevant Bareboat Charterer is a wholly owned and
      controlled subsidiary of the Relevant
Borrower,

              

      

       

      
        	
                20.1.2.2

              	
                with
      respect to each Delivered Vessel to be registered under the flag accepted
      by the Agent the documentation set out in Exhibit 11 attached
      hereto.

              

      

       

      
        	
                20.2

              	
                Lenders’
      Reservation.  The Lenders reserve the right to grant
      their consent under additional conditions and to revoke such consent
      whenever they deem necessary or
advisable.

              

      

       

      
        	
                21

              	
                ACCOUNTS

              

      

       

      
        	
                21.1

              	
                Earnings
      Accounts.  The Borrowers shall establish and maintain in
      their relevant names throughout the Security Period the Earnings Accounts
      with the Agent.

              

      

       

      
        	
                21.2

              	
                Costs of
      Operations.  The Relevant Borrower shall be entitled to
      debit its Earnings Account with the Delivered Vessel’s current costs of
      operation.

              

      

       

      
        	
                21.3

              	
                Agent’s
      Authorisation.  The Borrowers hereby instruct and
      authorize the Agent, and the Agent is entitled to make use of this
      instruction upon its sole discretion, to debit the Earnings Account with
      the Repayment Instalments, the Interest Payments, and the payments of any
      cost or expenses to be borne by the Borrowers pursuant to this Agreement
      on their respective due dates.

              

      

       

      
        	
                21.4

              	
                Interest.  Interest
      (at the rate applicable from time to time for the period the relevant
      deposit has been made) accruing on the Earnings Accounts shall be for the
      Borrowers’ credit.

              

      

       

      
        	
                21.5

              	
                Keeping
      Accounts.  The Agent shall maintain and keep accounts
      showing all sums due to the Lenders from the Borrowers and the amounts in
      such accounts and in the books of the Agent and/or the Lenders shall be
      conclusive, save for manifest
error.

              

      

       

      
        
          
          

        

        
          48

          
            

          

        

        
          
          

        

      

       

      
        	
                22

              	
                EVENTS
      OF DEFAULT

              

      

       

      
        	
                22.1

              	
                Single events of
      Default.  Without prejudice to no. 26 paragraph 2 of the
      Agent’s general business conditions (Allgemeine
      Geschäftsbedingungen), in
case:

              

      

       

      
        	
                22.1.1

              	
                any
      of the Borrowers fails to pay when due any instalment of principal or
      interest or other sum payable hereunder or under or pursuant to any of the
      Security Documents or other document relating to this Agreement;
      or

              

      

       

      
        	
                22.1.2

              	
                any
      of the Borrowers defaults in the performance or observance of any other
      obligation or term contained herein, in any of the Security Documents or
      other document relating to this Agreement;
or

              

      

       

      
        	
                22.1.3

              	
                this
      Agreement or any of the Security Documents ceases in whole or in part to
      be valid, binding and enforceable;
or

              

      

       

      
        	
                22.1.4

              	
                any
      representation, warranty or undertaking made in this Agreement or in any
      certificate, statement or other document delivered in connection with the
      execution and delivery hereof shall prove to have been incorrect,
      inaccurate or misleading in any material respect;
  or

              

      

       

      
        	
                22.1.5

              	
                there
      is any material adverse change in the financial situation of any of the
      Obligors and such occurrence in the opinion of the Agent makes it unlikely
      that the Obligors will be able to perform their obligations hereunder
      and/or under the Security Documents in the manner provided herein and for
      therein; or

              

      

       

      
        	
                22.1.6

              	
                any
      of the Borrowers ceases or threatens to cease to carry on its business or
      disposes or threatens to dispose of any substantial part of its assets or
      the same are seized or appropriated for any reason;
  or

              

      

       

      
        	
                22.1.7

              	
                any
      of the Obligors (other than the Manager) becomes insolvent or bankrupt or
      becomes unable to pay its debts as they mature or makes any composition
      with or assignment for the benefit of its creditors or applies for or
      consents to or sustains the appointment of a trustee or receiver in
      respect of its assets or a substantial part thereof or ceases or threatens
      to cease to carry on business; or

              

      

       

      
        	
                22.1.8

              	
                any
      consent required for the performance by any of the Borrowers of its
      obligations hereunder or under any Security Document is revoked or is
      otherwise modified in a manner unacceptable to the Agent;
    or

              

      

       

      
        	
                22.1.9

              	
                the
      Loan or any portion thereof has not been utilized for its intended
      purpose; or

              

      

       

      
        	
                22.1.10

              	
                pursuant
      to a legal opinion given to the Agent and/or the Lenders by any of their
      counsels the validity and/or enforceability of this Agreement and or any
      Security Document may be subject to material doubt and if the Borrowers
      fail to comply within fourteen (14) days from receipt of the Agent’s
      written demand to remedy such material doubt to the Lenders satisfaction;
      or

              

      

       

      
        
          
          

        

        
          49

          
            

          

        

        
          
          

        

      

       

      
        	
                22.1.11

              	
                any
      of the Borrowers is in default under any other agreement with the Lenders
      or any of them, or under any financing agreement to which the Borrowers,
      or any of them, is/are a party in which the Lenders or any of them is
      participating on the lenders’ side;
or

              

      

       

      
        	
                22.1.12

              	
                any
      of the Borrowers is in default under any other financial agreement and the
      lender thereunder has cancelled such agreement and demanded early
      repayment; or

              

      

       

      
        	
                22.1.13

              	
                any
      of the Vessels is not delivered to the Relevant Borrower in due time in
      accordance with the terms of the Relevant Building
    Contract;

              

      

       

      
        	
                22.1.14

              	
                any
      Charter, the Pool Agreement, any Building Contract or Refund Guarantee is
      terminated, rescinded, invalid or
unenforceable;

              

      

       

      
        	
                22.1.15

              	
                the
      performance by any of the Borrowers of its obligations under this
      Agreement, any of the Security Documents or any of the Master Agreement
      becomes illegal;

              

      

       

      
        	
                22.1.16

              	
                the
      Equity Provider 1 ceases to be a limited partner (Kommanditist) of each
      of the Borrowers (except for Borrowers 10, 11, and 12) holding at least
      seventy five (75) percent of each of the Borrower’s (except for Borrowers
      10, 11 and 12) share capital;

              

      

       

      
        	
                22.1.17

              	
                the
      Equity Provider 2 ceases to be a limited partner (Kommanditist) of each
      of the Borrowers holding at least twenty five (25) percent of each of the
      Borrower’s share capital, unless the Equity Provider 2 transfers its
      shares in the Borrowers to an affiliated company accepted by the
      Agent;

              

      

       

      
        	
                22.1.18

              	
                the
      Equity Provider 3 ceases to be a limited partner (Kommanditist) of each
      of the Borrowers 10, 11 and 12 holding at least seventy five (75) percent
      of each of the Borrower’s 10, 11 and 12 share
  capital;

              

      

       

      then, and
in any such event and at any time thereafter, if any such event shall be
continuing, the Lenders shall be entitled:

       

      
        	
                 
      

              	
                (i)

              	
                by
      written notice from the Agent to the Borrowers to declare the Loans
      immediately due and payable, whereupon the same shall become so payable in
      accordance together with interest accrued thereon and all other amounts
      payable hereunder and under the Security Documents;
  and/or

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                by
      written notice from the Agent to the Borrowers to declare that the
      Commitment be cancelled, whereupon the same shall be cancelled and all
      amounts payable hereunder shall become immediately due and
      payable,

              

      

       

      
        
          
          

        

        
          50

          
            

          

        

        
          
          

        

      

       

      provided,
however, that in case of an event as set out in this Clause resulting from a
breach of obligations arising from this Agreement, the Lenders shall be entitled
to the rights set out in Subclause 22.1 (i) and Subclause 22.1 (ii) only after
expiry, without result, of a reasonable period fixed for corrective action by
the Borrowers or after a warning to the Borrowers has proved unsuccessful,
unless this proviso can be dispensed due to the specific features of the
particular case pursuant to Section 323 (2) and (3) of the German Civil Code
(BGB), in particular, if the Borrowers definitely refuse performance or fail to
render performance on a contractually fixed date or within a specified
time-period.

       

      
        	
                23

              	
                ASSIGNMENT,
      TRANSFER AND SYNDICATION

              

      

       

      
        	
                23.1

              	
                Assignment by
      Borrowers.  The Borrowers shall not without the Lenders’
      prior written consent assign all or part of their rights or transfer all
      or part of their obligations hereunder to any third
  party.

              

      

       

      
        	
                23.2

              	
                Assignment by Lenders
      to Branches.  The Lenders are entitled to assign,
      transfer (by way of Vertragsübernahme)
      pledge, and/or sub-participate their rights and obligations and the credit
      risk hereunder and under the Security Documents, in part or in full to any
      branch, wholly owned subsidiary or affiliate of such
    Lender.

              

      

       

      
        	
                23.3

              	
                Syndication.  The
      Lenders are entitled to assign, transfer (by way of Vertragsübernahme)
      pledge, and/or sub-participate their rights and obligations and the credit
      risk hereunder and under the Security Documents, in part or in full to any
      Lender or to any other third party (the “Syndicate Members” or, in case of
      an assignment and transfer (by way of Vertragsübernahme) the
      “New Lender”), provided, however, the Borrowers and SACE have given their
      prior written consent thereto in case such Syndicate Member or New Lender
      is not a Lender, such consent not to be unreasonably
    withheld.

              

      

       

      
        	
                23.4

              	
                Syndication
      Procedure.  The procedure for the assignment and transfer
      (by way of Vertragsübernahme)
      shall be as described below.

              

      

       

      
        	
                23.4.1

              	
                In
      this Clause “Transfer Date” in a Transfer Certificate has the following
      meaning:

              

      

       

      
        	
                23.4.1.1

              	
                the
      Transfer Date which is specified in detail in the Transfer Certificate,
      or, if later,

              

      

       

      
        	
                23.4.1.2

              	
                the
      date on which the Agent signs the Transfer
  Certificate.

              

      

       

      
        	
                23.4.2

              	
                A
      transfer is effected if:

              

      

       

      
        	
                23.4.2.1

              	
                the
      transferring Lender and the New Lender furnish the Agent with a duly
      signed Transfer Certificate;

              

      

       

      
        
          
          

        

        
          51

          
            

          

        

        
          
          

        

      

       

      
        	
                23.4.2.2

              	
                the
      Agent signs the Transfer Certificate;
and

              

      

       

      
        	
                23.4.2.3

              	
                the
      New Lender has acceded to the Agency and Security Pooling
      Agreement.

              

      

       

      
        	
                23.4.3

              	
                Each
      party, including, but not limited to, the Borrowers, hereby grants the
      Agent an irrevocable power of attorney for the acceptance of the Transfer
      Certificate in its name and subject to release from the restrictions
      imposed by § 181 of the German Civil
Code.

              

      

       

      
        	
                23.4.4

              	
                On
      the Transfer Date:

              

      

       

      
        	
                23.4.4.1

              	
                The
      New Lender assumes the rights and obligations of the transferring Lender,
      which, pursuant to the Transfer Certificate are the subject of the
      transfer; and

              

      

       

      
        	
                23.4.4.2

              	
                the
      transferring Lender is released from its relevant
  duties.

              

      

       

      
        	
                23.5

              	
                Assignment of rights
      to SACE.  With the implementation (Inanspruchnahme) of the
      SACE Guarantee, the rights to payment hereunder shall be directly and/or
      indirectly assigned to SACE either by operation of law or by will of the
      Lenders to the extent of any payments made by SACE under the SACE
      Guarantee as more closely described in the SACE Guarantee. It is hereby
      agreed that such assignment of rights is accepted by the Borrowers and
      will not require any other consent from
them.

              

      

       

      
        	
                23.6

              	
                Disclosure.  The
      Lenders shall be entitled to disclose to any potential Syndicate Member,
      New Lender as well as — where relevant — to rating agencies, trustees, and
      accountants, such financial and other information regarding the Borrowers,
      the Loans, the collateral, the financial circumstances and other
      information, as the Lenders may deem reasonably necessary or appropriate
      in connection with the (potential) syndication, the assessment of the risk
      and the ongoing monitoring of the loan by any (potential) Syndicate Member
      or New Lender. Insofar the Lenders shall be released from any obligation
      of secrecy and from banking confidentiality. Where Syndicate Members, New
      Lenders, rating agencies, trustees and accountants are not already by law
      subject to rules of confidentiality, the Lenders shall require such
      Syndicate Members, New Lenders, rating agencies, trustees and accountants
      to sign a confidentiality agreement. The Lenders shall be entitled to
      release deal tables containing standard information for marketing
      purposes. Furthermore, the Lenders shall be entitled to inform each other
      and the Agent of any events or information of which they become aware
      affecting any of the Loans or the Security Documents. The Lenders shall be
      released from any obligation of secrecy and from banking confidentiality
      in this respect as well.

              

      

       

      
        	
                23.7

              	
                Borrowers
      Cooperation.  The Borrowers herewith irrevocably agree to
      the above-mentioned measures. To the extent the cooperation of the
      Borrowers shall be required in the course of syndication, the Borrowers
      will take all necessary steps, provided that this shall not result in any
      additional costs to them. The Borrowers undertake to and procure that each
      of third party sureties will, upon request of the Agent, participate and
      assist in a transfer of the security created by the Security
      Documents.

              

      

       

      
        
          
          

        

        
          52

          
            

          

        

        
          
          

        

      

       

      
        	
                23.8

              	
                Binding
      Documents.  The Security Documents shall be binding upon,
      and shall inure to the benefit of, the Lenders and their relevant
      successors and assigns and their respective successors (in each case
      whether by merger, amalgamation, consolidation, take over or otherwise,
      and each such case a “Succession”), and each party hereby agrees that from
      the completion of the Succession the Agreement and the Security Documents
      shall be read and construed as if all references to the Lenders were
      references to the relevant successor. For the avoidance of doubt, the
      relevant successor shall not be a transferee or assignee for the purpose
      of the Security Documents but shall be (or shall be treated as) the same
      legal entity as the Lenders (or the relevant preceding successor, as the
      case may be).

              

      

       

      
        	
                24

              	
                APPLICABLE
      LAW, JURISDICTION

              

      

       

      The terms
and conditions set out in this Agreement shall unless otherwise specifically
provided be governed by and construed in accordance with the laws of the Federal
Republic of Germany and by the Borrowers’ acceptance hereof the Borrowers submit
to the jurisdiction of the courts in Hannover, Federal Republic of
Germany.

       

      Nothing
in this Clause shall affect the right of the Lenders to serve process in any
manner permitted by law or limit the right of the enders to proceed against the
Borrowers or any of them in any other jurisdiction.

       

      
        	
                25

              	
                JUDGEMENT
      CURRENCY

              

      

       

      If in
obtaining judgement in any court it becomes necessary or advisable for the
Lenders to convert any amount owed pursuant hereto into another currency then
such conversion shall be deemed to be made at the rate of exchange prevailing
the day before the Lenders’ action is brought into court with prime banks in the
country of such court. If in such case due to alterations of the exchange rate
the amount finally received by the Lenders or any of them shall be insufficient
to cover the amount owed in Euros then the Borrowers shall pay to the Lenders
the amount required to compensate for such loss.

       

      
        	
                26

              	
                WAIVERS

              

      

       

      Time is
of the essence of this Agreement. No failure or delay on the part of the
Lenders, the Mandated Lead Arranger and/or the Agent to exercise any power or
right under this Agreement shall operate as a waiver thereof or of any other
power or right. The remedies provided herein are cumulative and are not
exclusive of any remedies provided by law.

       

      
        	
                27

              	
                INVALIDITY

              

      

       

      In the
event that this Agreement or any provision hereof or any of the documents or
instruments which may from time to time be delivered hereunder or any provision
thereof shall be deemed invalid by present or future law of any nation or by
decision of any court this shall not affect the validity of this Agreement, such
documents and instruments as a whole and in such case the parties hereto shall
execute and deliver such other and further agreements and/or documents and/or
instruments and such things as the Lenders in their reasonable discretion, may
deem to be necessary to carry out the original intent of the parties to this
Agreement.

       

      
        
          
          

        

        
          53

          
            

          

        

        
          
          

        

      

       

      
        	
                28

              	
                SURVIVAL

              

      

       

      All of
the covenants, representations and warranties made herein or in any of the
documents or instruments delivered pursuant hereto shall survive the making of
the Loan and shall be binding upon the Borrowers until all obligations of the
Borrowers arising pursuant to the terms of this Agreement and/or such documents
or instruments delivered pursuant hereto have been paid and performed in
full.

       

      
        	
                29

              	
                EFFECTUATION

              

      

       

      The
Borrowers undertake to take all such steps and actions that are within their
power in order to execute and deliver all such further documents and instruments
as may be necessary in the sole discretion of the Lenders to effectuate the
intent of this Agreement.

       

      The
Lenders reserve the right to obtain legal opinions from their counsel in any
relevant country as to the validity and enforceability of this Agreement and all
documents and instruments delivered pursuant thereto and the Borrowers agree and
undertake to take all such steps and actions including but not limited to any
alterations thereto as may be deemed necessary by such opinion or
opinions.

       

      
        	
                30

              	
                LANGUAGE

              

      

       

      Any
document to be delivered by the Borrowers to the Agent, the Mandated Lead
Arranger and/or the Lenders pursuant to this Agreement shall be in German or
English or accompanied by a German or an English translation. The Agent may
request the Borrowers to have any such translation certified by an authorized
translator.

       

      
        	
                31

              	
                COSTS
      AND EXPENSES

              

      

       

      
        	
                31.1

              	
                Costs and
      Expenses.  Unless otherwise stipulated herein, all costs
      and expenses and claims for damages of the Lenders, SACE, the Agent and/or
      the Mandated Lead Arranger which occur during the legal relations between
      these parties on the one side and the Borrowers on the other side and
      which are in relation to the Loans shall be borne by the Borrowers whether
      or not any Drawdown ultimately takes place and all costs and expenses and
      claims for damages incurred in the maintenance of the security created by
      this Agreement and the Security Documents or the actual or attempted
      enforcement at any time of the rights of the Lenders, SACE, the Agent
      and/or the Mandated Lead Arranger hereunder and thereunder shall be borne
      by the Borrowers. This refers especially to expenses for maintenance,
      safeguarding and insurance of the Vessels or for upkeep and security of
      the Hypothec, costs for lifting a seizure of the Vessels, costs incident
      to guarding and custody of the Vessels, costs for every evaluation
      requested by the Agent with regard to value and condition of the Vessels
      in case of an Event of Default of the Borrowers and the fees for outside
      attorneys or other persons commissioned by the Lenders, SACE, the Agent
      and/or the Mandated Lead Arranger. This also includes expenses incurred by
      the Lenders, SACE, the Agent and/or the Mandated Lead Arranger in
      connection with the drafting, preparation, execution, carrying out,
      enforcement or attempted enforcement of this Agreement and/or the Security
      Documents as well as costs for translations and for legal
      opinions.

              

      

       

      
        
          
          

        

        
          54

          
            

          

        

        
          
          

        

      

       

      All such
costs and expenses have to be paid when due and payable according to the
respective invoice, which will be notified by the Agent to the Borrowers. All
amounts so disbursed or expended by the Lenders, SACE, the Agent and/or the
Mandated Lead Arranger shall be subject to (a) the Default Rate from the day
five (5) Banking Days after the Agent has requested refunding or repayment
thereof from the Borrowers until the time of refunding or repayment or (b) the
Default Rate from the day of disbursement until the time of refunding or
repayment thereof, if the Agent has given notice of default
hereunder.

       

      
        	
                31.2

              	
                Taxes. The
      Borrowers shall bear all Taxes which are levied in Germany and other
      countries on the capital, the repayment rates, the interest and other
      payments, today or in future related to the Loans except for Taxes charged
      in the Federal Republic of Germany on the income of the Lenders, the Agent
      and/or the Mandated Lead Arranger. This provision concerns all Taxes and
      dues of any kind, whether they have direct or indirect, personal or real
      character (as e.g. income tax, capital tax, trade tax and turnover tax),
      whether these Taxes be levied on the total income or the aggregate
      property of the Lenders as mortgagees or on the extraordinary income or
      property or on any portion of the income and property or for reason of any
      legal or real events. This Agreement must be understood in its broadest
      sense as to entitle the Lenders (who fix the rate of interest without
      regard to any Taxes in Germany or other countries and who has entered into
      this Agreement on the basis - inter alia - of receiving payments in full
      and free of any such Taxes), the Agent and/or the Mandated Lead Arranger
      to pass on the Taxes. The Taxes will be charged to, and promptly paid by
      the Borrowers also if for reason of any legal or authoritative regulations
      they are to be collected from the Lenders, the Agent and/or the Mandated
      Lead Arranger.

              

      

       

      Such
Taxes collected from the Lenders, the Agent and/or the Mandated Lead Arranger
and must be reimbursed by the Borrowers immediately when the Borrowers are
informed to this effect by the Agent. Any failure of the Borrowers as a result
of the foregoing to remit to the Lenders, the Agent and/or the Mandated Lead
Arranger full payments required hereunder shall not waive default for
non-payments as defined under Clause 22 of this Agreement.

       

      
        
          
          

        

        
          55

          
            

          

        

        
          
          

        

      

       

      
        	
                32

              	
                NOTICES
      AND TIME

              

      

       

      
        	
                32.1

              	
                Addresses.  Any
      notice or other communication to be given pursuant hereto shall be by
      letter or registered letter or telefax and
  addressed

              

      

       

      
        	
                 
      

              	
                -

              	
                if
      to the Borrowers, to

              

      

       

      
        	
                 
      

              	
                the
      Borrowers

              

      

      
        	
                 
      

              	
                c/o
      HARTMANN OFFSHORE GMBH

              

      

      
        	
                 
      

              	
                Neue
      Straße 24

              

      

      
        	
                 
      

              	
                26789
      Leer

              

      

      
        	
                 
      

              	
                Germany

              

      

      
        	
                 
      

              	
                Fax:
      +49-491-9995020

              

      

       

      
        	
                 
      

              	
                -

              	
                if
      to the Lenders, to the Agent:

              

      

       

      NORDDEUTSCHE
LANDESBANK GIROZENTRALE

      Shipping
and Aircraft Finance Department

      Friedrichswall
10

      30159
Hannover

      Federal
Republic of Germany

      Fax:  +49-511-3614785,

       

      or to
such other address as either party may notify to the other in
writing.

       

      
        	
                32.2

              	
                Form of
      Communicating.  Communications sent by telefax shall be
      effective when sent and if sent by letter shall be effective on receipt.
      Any communication by telefax from a party to the relevant other party/ies
      shall be confirmed by letter if so requested by the relevant party and the
      relevant party may (in its absolute discretion) refuse to act on any such
      communication pending receipt of such
letter.

              

      

       

      
        	
                32.3

              	
                Receipt.  A
      notice or other communication received on a day which is not a Banking Day
      or after business hours in the place of receipt on a Banking Day shall be
      deemed to be served on the next following Banking Day in such
      place.

              

      

       

      
        	
                32.4

              	
                Authorisation.  Each
      Borrower irrevocably authorises each of the other Borrowers and the
      Manager (the “Representative”) to act on its behalf as its agent in
      relation to this Agreement and the Security Documents and irrevocably
      authorises:

              

      

       

      
        	
                32.4.1

              	
                the
      Representative on its behalf to supply all information concerning itself,
      its financial condition and otherwise to the relevant persons contemplated
      under this Agreement and to give all notices and instructions and to make
      any agreement capable of being made by it on its behalf under this
      Agreement and the Security Documents;
and

              

      

       

      
        	
                32.4.2

              	
                each
      Lender to make any communication or deliver any document to be made or
      delivered to such Borrower pursuant to this Agreement and/or the Security
      Documents to the Representative on its behalf in accordance with this
      Clause,

              

      

       

      and in
each such case, irrespective if such Representative has given express or implied
statement to act as representative on behalf of such Borrower, such Borrower
will be bound thereby as though such Borrower had itself supplied such
information, given such notice and instructions or made such agreement or, as
the case may be, as if such communication or document had been made or delivered
to it in accordance with this Clause.

       

      
        
          
          

        

        
          56

          
            

          

        

        
          
          

        

      

       

      
        	
                33

              	
                GENERAL
      CONDITIONS

              

      

       

      
        	
                33.1

              	
                Part of this
      Agreement.  The General Conditions are deemed to be part
      of this Agreement. By signing this Agreement, the Borrowers acknowledge
      that they received a copy of the General Conditions and agree that they
      shall be part of this Agreement.

              

      

       

      
        	
                33.2

              	
                Language.  The
      German wording of the General Conditions is binding in all respects and in
      the case of any conflict or divergence between the English translation and
      the German wording in any respect whatsoever, the German wording shall
      prevail and govern this Agreement.

              

      

       

      
        	
                33.3

              	
                Conflict.  In
      case of conflict between this Agreement and the General Conditions the
      terms and conditions of this Agreement shall prevail over those of the
      General Conditions.

              

      

       

      
        	
                34

              	
                EXHIBITS

              

      

       

      The
Exhibits to this Agreement form an integral part of this Agreement and their
terms shall accordingly be deemed to have been set out herein in
full.

       

      
        	
                35

              	
                COUNTERPARTS

              

      

       

      This
Agreement may be executed in several counterparts and by each party hereto on a
separate counterpart, each of which shall be deemed to be an original and all of
which when taken together shall constitute one and the same
instrument.

       

      (Remainder
of page left blank intentionally)

       

      
        
          
          

        

        
          57

          
            

          

        

        
          
          

        

      

      

      IN WITNESS WHEREOF the parties
hereto have caused this Agreement to be signed by their duly authorized
attorneys the day and year first above written.

       

      THE
LENDERS:

       

      
        
          	
                  SIGNED
      by

                	 
      	
                  )

                	 
      
	 
      	
                  and

                	
                  )

                	 
      
	 
      	 
      	 
      
	
                  for
      and on behalf of

                	 
      	
                  )

                	 
      
	
                  NORDDEUTSCHE
      LANDESBANK

                	
                   

                	
                  )

                	 
      
	
                  GIROZENTRALE

                	
                   

                	
                  
                    )

                  

                	
                  /s/

                
	 	 	 	 
	
                  THE
      BORROWERS

                	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	
                  SIGNED
      by

                	 
      	
                  )

                	 
      
	 
      	 
      	
                  )

                	 
      
	
                  for
      and on behalf of

                	 
      	
                  )

                	
                  /s/

                

        
                                          

      

      ATL
OFFSHORE GMBH & CO. MS “JUIST” KG

       

      ATL
OFFSHORE GMBH & CO. MS “NORDERNEY” KG

       

      ATL
OFFSHORE GMBH & CO. “ISLE OF BALTRUM” KG

       

      ATL
OFFSHORE GMBH & CO. “ISLE OF LANGEOOG” KG

       

      ATL
OFFSHORE GMBH & CO. “ISLE OF AMRUM” KG

       

      ATL
OFFSHORE GMBH & CO. “ISLE OF SYLT” KG

       

      ATL
OFFSHORE GMBH & CO. “ISLE OF WANGEROOGE” KG

       

      ATL
OFFSHORE GMBH & CO. “ISLE OF NEUWERK” KG

       

      ATL
OFFSHORE GMBH & CO. “ISLE OF USEDUM” KG

       

      ATL
OFFSHORE GMBH & CO. “ISLE OF FEHMARN “ KG

       

      ATL
OFFSHORE GMBH & CO. “ISLE OF MEMMERT” KG

       

      ATL
OFFSHORE GMBH & CO. “ISLE OF MELLUM” KG

       

      
        
          
          

        

        
          58

          
            

          

        

        
          
          

        

      

       

      ACKNOWLEDGED
BY:

       

      THE CORPORATE
GUARANTOR

       

       

      
        
          	
                  Signed
      by    

                	 
      	
                  )

                	 
      
	 	 	)	 
	 
      	 	
                  )

                	 
      
	
                  REEDEREI
      HARTMANN

                	
                   

                	
                  )

                	 
      
	
                  GMBH
      & CO. KG     

                	
                   

                	
                  
                    )

                  

                	
                  /s/

                
	
                   

                	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	THE
      MANAGER	 	 	 
	 	 	 	 
	
                  Signed
      by     

                	 
      	
                  )

                	 
      
	 
      	 
      	
                  )

                	 
      
	
                  HARTMANN
      OFFSHORE GMBH   

                	 
      	
                  )

                	
                  /s/

                

        

         

      

      
        
          
          

        

        
          59

          
            

          

        

        
          
          

        

      

      

      SCHEDULES
AND EXHIBITS

      
        
          	 	 
	 	 
	
                  Schedule
      1

                	
                  List
      of Lenders and Participation

                
	 	 
	
                  Schedule
      2

                	
                  List
      of Loans

                
	 	 
	
                  Schedule
      3

                	
                  List
      of Borrowers, Building Contracts and Vessels

                
	 	 
	
                  Schedule
      4

                	 
      
	
                  and
      4b

                	
                  Synopsis
      of Construction Price Instalments and Tranches

                
	 	 
	
                  Schedule
      5

                	
                  List
      of Conditions Precedent

                
	 
      	 
      
	 	 
	 	 
	
                  Exhibit
      1

                	
                  Form
      of Drawdown Notice

                
	 	 
	
                  Exhibit
      2

                	
                  Form
      of Guarantee Request

                
	 	 
	
                  Exhibit
      3

                	
                  Form
      of Assignment of Building Contract

                
	 	 
	
                  Exhibit
      4

                	
                  Form
      of Assignment of Refund Guarantee

                
	 	 
	
                  Exhibit
      5

                	
                  Form
      of Corporate Guarantee

                
	 	 
	
                  Exhibit
      6

                	
                  Form
      of Acknowledgement and Submission

                
	 	 
	
                  Exhibit
      7

                	
                  Form
      of Assignment of Insurances by the Borrower

                
	 	 
	
                  Exhibit
      8

                	
                  Form
      of Assignment of Insurances by the Assured(s)

                
	 	 
	
                  Exhibit
      9

                	
                  Form
      of Assignment of Charter and other Earnings by the
  Borrower

                
	 
      	
                  and
      the Bareboat Charterer

                
	 	 
	
                  Exhibit
      10

                	
                  Form
      of Pledge of Earnings Account

                
	 	 
	
                  Exhibit
      11

                	
                  Form
      of Bareboat Documentation

                
	 	 
	
                  Exhibit
      12

                	
                  Form
      of Loss Payable Clause

                
	 	 
	
                  Exhibit
      13

                	
                  Form
      of Broker’s Letter of Undertaking H+M

                
	 	 
	
                  Exhibit
      14

                	
                  Form
      of Protection and Indemnity Association’s Letter of
      Undertaking

                
	 	 
	
                  Exhibit
      15

                	
                  Manager’s
      Undertaking

                
	 	 
	
                  Exhibit
      16

                	
                  Reimbursement
      Agreement

                
	 	 
	
                  Exhibit
      17

                	
                  Form
      of Transfer Certificate

                
	 	 
	
                  Exhibit
      18

                	
                  General
      Conditions of NORD/LB

                
	 	 
	
                  Exhibit
      19

                	
                  Form
      of Letter of Undertaking and
Indemnity

                

        

      

    

     

    
      
        
        

      

      
        60

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