Document:

exhibit10-1.htm

    Exhibit
10.1

    

    CONSULTATION
AGREEMENT

    

    This
Consultation Agreement, dated as of January 1, 2008 (the “Agreement”) between
TANDY LEATHER FACTORY, INC., a Delaware corporation (and any successor entity
thereto, the “Company” or “TLF”) and J. WRAY THOMPSON (the
“Consultant”).

    

    WHEREAS
the Company desires to retain the Consultant as Chairman of the Board and as a
Consultant and the Consultant desires to serve in those positions.

    

    NOW,
THEREFORE, in consideration of the covenants and agreements hereinafter set
forth, the parties hereto agree as follows:

    

    1.           EFFECTIVENESS OF
AGREEMENT

    

    This
Agreement shall become effective as of January 1, 2008.

    

    2.           SERVICE AND
DUTIES

    

    2.1           General.  The
Company hereby retains the Consultant, and the Consultant agrees to serve as
Chairman of the Board of the Company, upon the terms and conditions herein
contained.  The Consultant shall have all of the responsibilities and
powers normally associated with such office.  The Consultant shall
perform such other duties and services for the Company, commensurate with the
Consultant’s position, as may be designated from time to time by the Board of
Directors of the Company (the “Board”).  The Consultant agrees to
serve the Company faithfully and to the best of his ability under the direction
of the Board.  It is understood and agreed that the Consultant not be
an employee of the Company despite any title assigned to the
Consultant.

    

    2.2           Services.  Except
as may otherwise be approved in advance by the Board and except during vacation
periods and reasonable periods of absence due to sickness, personal injury, or
other disability, the Consultant shall be available by telephone, fax, or in
person at all reasonable times for consultation throughout the Term (as defined
in Section 2.3).  The Consultant shall render his services to the
Company during the Term and shall use his best efforts, judgment and energy to
improve and advance the business and interest of the Company in a manner
consistent with the duties of his position.  However, this
Consultation Agreement will be non-exclusive and the Consultant may engage in
other business or employment, not inconsistent with the terms of Section 7
herein.

    

    2.3           Term of
Service.  The Consultant’s service under this Agreement shall
commence as of January 1, 2008 and shall terminate on the earlier of December
31, 2008 or termination of the Consultant’s service pursuant to this
Agreement.  The period commencing as of January 1, 2008 and ending on
December 31, 2008 is hereinafter referred to as the “Term”.

    

    2.4           Automatic
Renewal.                                                                
[deleted]

    

    2.5           Company Credit
Card/Expenses.  During the Term or Renewed Term, the Consultant
shall continue to be eligible to use his Company-issued credit card for
reasonable travel and other business expenses incurred by him in the fulfillment
of his duties hereunder, in accordance with Company practices as in effect
during the Term.

    

    3.           SALARY

    

    3.1           Base
Salary.  The Consultant shall be entitled to receive a base
salary (“Base Salary”) at a rate of $50,000 per annum, payable in arrears in
equal installments not less frequently than monthly.  Any increases
will be in accordance with the terms hereof.  Once increased, such
higher shall constitute the Consultant’s annual Base Salary.

    

    3.2           Annual
Review.  The Consultant’s Base Salary shall be reviewed by the
Board and its Compensation Committee, based upon the Consultant’s performance,
not less often than annually.  In addition to any increases effected
as a result of such review, the Board at any time may in its sole discretion
increase the Consultant’s Base Salary if, in the Board’s opinion, it is in the
best interest of the Company to do so.

    

    4.           BENEFITS

    

    The
Consultant will, during the Term of this Agreement, be included to the extent
eligible in all Company medical, dental and vision insurance which shall be
established by the Company for, or made available to Consultant.  The
Company’s medical plan, dental plan and vision plan shall provide benefits
substantially similar to those provided to the Company’s existing plans provided
for other employees.  During the Term, the benefits described in this
Section 4 may only be reduced as a result of a general reduction for Senior
Consultants, where the Base Salary is increased to offset benefits
lost.  In the event is it necessary to purchase a separate health
insurance policy for the Consultant, then the cost of medical, dental or vision
insurance will be deducted from the Consultant’s Salary as defined in Section
3.

    

    5.           TERMINATION OF
SERVICE

    

    5.1           General.  If,
prior to the expiration of the Term, the Consultant’s service is terminated by
the Company, the Company shall continue to pay the Consultant the Base Salary
(at the rate in effect on the date of such termination) for the remainder of the
Term (such period being referred to hereinafter as the “Severance Period”), at
such intervals as the same would have been paid had the Consultant remained in
the active service of the Company.  In addition, the Consultant shall
be entitled to continue to participate during the Severance Period in any
benefit plans set forth herein.  The Consultant shall have no further
right to receive any other compensation or benefits after such termination or
resignation of service except as determined in accordance with the terms of the
employee benefits plans or programs of the Company established for Consultant
under the terms of this Agreement.

    

    5.2           Death During Term or
Severance Period.  In the event of the Consultant’s death
during the Term or the Severance Period, payments of the Base Salary under this
Section 5 shall terminate.

    

    5.3           Date of
Termination.  The date of termination of service shall be the
date specified in a written notice of termination to the
Consultant.  The date of resignation shall be the date specified in
the written notice of resignation from the Consultant to the
Company.

     

    6.           DISABILITY

    

    In the
event of termination of service by reason of Permanent Disability (as
hereinafter defined), the Consultant (or his estate, as applicable) shall be
entitled to Base Salary and benefits determined under Sections 3 and 4 hereof
through the date of disability.  Other benefits shall be determined in
accordance with the benefits plans maintained by the Company applicable to the
Consultant, and the Company shall have no further obligation
hereunder.  For purposes of this Agreement, “Permanent Disability”
means a physical or mental disability or infirmity of the Consultant that
prevents the normal performance of substantially all his duties as a consultant
of the Company, which disability or infirmity shall exist for any continuous
period of 60 days.  The presumption of disability will arise if the
Consultant is unable to attend two (2) consecutive Board meetings.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     7.           NONSOLICITATION;
CONFIDENTIALITY; NONCOMPETITION

    

    7.1           Nonsolicitation.  For
so long as the Consultant serves the Company and continuing for two years
thereafter, the Consultant shall not, without the prior written consent of the
Company, directly or indirectly, as a sole proprietor, member of a partnership,
stockholder or investor, office or director of a corporation, or as an employee,
associate, consultant or agent of any person, partnership, corporation or other
business organization or entity other than the Company:

    

    
      	
               
      

            	
              a)

            	
              1)

            	
              solicit
      or endeavor to entice away from the Company, or any of its subsidiaries
      or

            

    

    

    
      	
               
      

            	
              2)

            	
              solicit
      any person or entity who during the then most recent twelve-month period,
      was employed by or served as an agent or key consultant of the Company or
      any of its Subsidiaries, or

            

    

    

    b)           solicit
or endeavor to entice away from the Company, or any of its subsidiaries, any
person or entity who is, or was within the then most recent 12-month period, a
customer or client (or reasonably anticipated [to the general knowledge of the
Consultant or the public] to become a customer or client) of the Company, or any
of its subsidiaries.

    

    7.2           Confidentiality.  The
Consultant covenants and agrees with the Company that he will not at any time,
except in performance of his obligations to the Company hereunder or with the
prior written consent of the Company, directly or indirectly, disclose any
secret or confidential information that he may learn or has learned by reason of
his association with the Company, or any of its subsidiaries and
affiliates.  The term “confidential information” includes information
not previously disclosed to the public or to the trade by the Company’s
management, or otherwise in the public domain, with respect to the Company’s, or
any of its affiliates’ or subsidiaries’, products, facilities, applications and
methods, trade secrets and other intellectual property, systems, procedures,
manuals, confidential reports, product price lists, customer lists, technical
information, financial information (including the revenues, cost or profits
associated with any of the Company’s products), business plans, prospects or
opportunities, but shall exclude any information which (i) is or becomes
available to the public or is general known in the industry or industries in
which the Company operates other than as a result of disclosure by any employee
of the Company, including, but not limited to, the Consultant’s agreement under
this Section 7.2 or (ii) the Consultant is required to disclose under any
applicable laws, regulations or directives of any government agency, tribunal or
authority having jurisdiction in the matter or under subpoena or other process
of law.

    

    7.3           Non
Compete.  For so long as the Consultant serves the Company (or,
if the Consultant is entitled to a continuation of his Base Salary, the period
during which such Base Salary is continued) and continuing for two years
thereafter, the Consultant shall not, directly or indirectly, as a sole
proprietor, member of a partnership, stockholder, investor, officer or director
of a corporation, or as an employee, associate, consult or agent of any person,
partnership, corporation or other business organization or entity other than the
Company, or any of its subsidiaries, render any service to or in any way be
affiliated with a competitor (or any person or entity that is reasonably
anticipated [to the general knowledge of the Consultant or the public] to become
a competitor) of the Company, or any of its subsidiaries.  Further
purposes of this Section 7.3, ownership of securities having no more than one
percent of the outstanding voting power of any competitor which is listed on any
national securities exchange or traded actively in the national over-the-counter
market shall not be deemed to be in violation of this Section so long as
Consultant has no other connection or relationship with such
competitor.

    

    7.4           Exclusive
Property.  The Consultant confirms that all confidential
information is and shall remain the exclusive property of the
Company.  All business records, papers and documents kept or made by
the Consultant relating to the business of the Company shall be and remain the
property of the Company.

    

    7.5           Injunctive Relief.
Without intending to limit the remedies available to the Company, the Consultant
acknowledges that a breach of any of the covenants contained in this Section 7
may result in material and irreparable injury to the Company, or its affiliates
or subsidiaries, for which there is no adequate remedy at law, that it will not
be possible to measure damages for such injuries precisely and that, in the
event of such a breach or threat thereof, the Company shall be entitled to seek
a temporary restraining order and/or a preliminary or permanent injunction
restraining the Consultant from engaging in activities prohibited by this
Section 7 or such other relief as may be required specifically to enforce any of
the covenants in this Section 7.  If for any reason it is held that
the restrictions under this Section 7 are not reasonable or that consideration
therefor is inadequate, such restrictions shall be interpreted or modified to
include as much of the duration and scope identified in this Section 7 as will
render such restrictions valid and enforceable.

     

    
      8.           MISCELLANEOUS

      

      8.1           Notices.  All
notices or communications hereunder shall be in writing, addressed as
follows:

       

      
        
          	 
      	
                  To
      the Company:

                	
                  Tandy
      Leather Factory, Inc.

                
	 
      	 
      	
                  3847
      East Loop 820 South

                
	 
      	 
      	
                  Fort
      Worth, Texas 76119

                
	 
      	
                  Telecopier
      No:

                	
                  817-496-9806

                
	 
      	
                  Attention:

                	
                  Ronald
      C. Morgan

                
	 
      	 
      	 
      
	 
      	
                  With
      a copy to:

                	
                  William
      M. Warren

                
	 
      	 
      	
                  Loe,
      Warren, Rosenfield, Kaitcer, Hibbs & Windsor, PC

                
	 
      	 
      	
                  4420
      W. Vickery Blvd

                
	 
      	 
      	
                  Fort
      Worth, Texas  76107

                
	 
      	
                  Telecopier
      No:

                	
                  817-377-1120

                
	 
      	 
      	 
      
	 
      	
                  To
      the Consultant:

                	
                  J.
      Wray Thompson

                
	 
      	 
      	
                  2803
      Woodwind

                
	 
      	 
      	
                  Arlington,
      Texas  76013

                

        

        
All such
notices shall be conclusively deemed to be received and shall be effective (i)
if sent by hand delivery, upon receipt, (ii) if sent by telecopy or facsimile
transmission, upon confirmation of receipt by the sender of such transmission or
(iii) if sent by registered or certified mail, on the fifth day after the day on
which such notice is mailed.

      

    

    

    8.2           Severability.  Each
provision of this Agreement shall be interpreted in such manner as to be
effective and valid under applicable law, but if any provision of this Agreement
is held to be prohibited by or invalid under applicable law, such provision will
be ineffective only to the extent of such prohibition or invalidity, without
invalidating the remainder of such provision or the remaining provisions of this
Agreement.

    8.3           Assignment.  The
Company’s rights and obligations under this Agreement shall not be assignable by
the Company except as incident to a reorganization, merger or consolidation, or
transfer of all or substantially all of the Company’s business and
properties.   Neither this Agreement nor any rights hereunder
shall be assignable or otherwise subject to hypothecation by the
Consultant.

    

    8.4           Entire
Agreement.  This Agreement represents the entire agreement of
the parties and shall supersede any and all previous contracts, arrangements or
understandings between the Company and the Consultant, including, without
limitation, the Prior Agreement.  This Agreement may be amended at any
time by mutual written agreement of the parties hereto.  In the case
of any conflict between any express term of this Agreement and any statement
contained in any employment manual, memo or rule of general applicability of the
Company, this Agreement shall control.

    

    8.5           Withholding.  The
payment of any amount pursuant to this Agreement shall be subject to applicable
withholding and payroll taxes, and such other deductions as may be required
under the Company’s employee benefit plans, if any.

    

    8.6           Governing
Law.  This Agreement shall be construed, interpreted and
governed in accordance with the laws of Texas without reference to rules
relating to conflict of law.  The venue for any dispute will be in the
Court of applicable jurisdiction in Tarrant County, Texas.

    

    IN
WITNESS WHEREOF, the Company has caused this Agreement to be duly executed and
the Consultant has hereunto set his hand, as of the day and year first above
written.

    

    
      	 
      	 
      	
              TANDY
      LEATHER FACTORY, INC.

            
	 
      	 
      	 
      
	 
      	 
      	
              By:  /s/ Ron Morgan

            
	 
      	 
      	
              Chief
      Executive Officer and President

            
	 
      	 
      	 
      
	 
      	 
      	
              Consultant

            
	 
      	 
      	 
      
	 
      	 
      	
              /s/ J. Wray Thompson

            
	 
      	 
      	
              J.
      Wray Thompsond870521_ex4-40.htm

     

     

    
      	
              Exhibit
      4.40

            
	 
	
              Private & Confidential

            
	
               

               

               

              FACILITY AGREEMENT

              for
      an Overdraft, Guarantee

              and
      Letter of Credit Facility of up to US$300,000,000

              to

              AEGEAN
      MARINE PETROLEUM S.A.

               

              provided
      by

              THE
      BANKS AND FINANCIAL INSTITUTIONS SET OUT IN SCHEDULE 1

               

              Arranger

              THE
      ROYAL BANK OF SCOTLAND PLC

               

              Agent,
      Security Agent, Issuing Bank and Account Bank

              THE
      ROYAL BANK OF SCOTLAND PLC

               

               

               

               

            
	 
      
	 
      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Contents

     

    Clause                                                                               Page

     

    

      
        	
                1

              	
                Purpose
      and definitions

              	
                1

              
	
                2

              	
                The
      Facilities

              	
                16

              
	
                3

              	
                Interest
      and Interest Periods

              	
                24

              
	
                4

              	
                Indemnities;
      cancellations; pre-payments on Total Loss

              	
                26

              
	
                5

              	
                Fees,
      commissions and expenses

              	
                29

              
	
                6

              	
                Payments
      and taxes; accounts and calculations

              	
                31

              
	
                7

              	
                Representations
      and warranties

              	
                35

              
	
                8

              	
                Undertakings

              	
                40

              
	
                9

              	
                Conditions

              	
                47

              
	
                10

              	
                Events
      of Default

              	
                48

              
	
                11

              	
                Indemnities

              	
                54

              
	
                12

              	
                Unlawfulness
      and increased costs

              	
                55

              
	
                13

              	
                Security,
      set off and pro-rata payments

              	
                57

              
	
                14

              	
                Accounts

              	
                59

              
	
                15

              	
                Assignment,
      transfer and lending office

              	
                61

              
	
                16

              	
                Arranger,
      Agent, Security Agent and Reference Banks

              	
                64

              
	
                17

              	
                Notices
      and other matters

              	
                75

              
	
                18

              	
                Governing
      law and jurisdiction

              	
                77

              
	 	 	 

      

       

      
        	 Schedule 1      	 The
      Banks and their Percentages    	78
	 Schedule
      2	 Documents
      and evidence required as conditions precedent	79
	 Schedule
      3	 The
      Owners and their Ships	83
	 Schedule
      4	 Transfer
      Certificate	85
	 The
      Schedule 	 	88
	 Schedule
      5	 Form
      of Issue Request 	89
	 Schedule
      6	 Mandatory
      Cost Formula	90
	 Schedule
      7	 Form
      of Insurance Letter	92
	 Schedule
      8	 Form
      of Trust Deed	93
	 Schedule
      9	 Conditions
      Subsequent	94
	 Part
      2	 Additional
      Ships	 96

      

      

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    THIS AGREEMENT is dated
             
December 2007 and made BETWEEN:

     

    
      	
              (1)  

            	
              AEGEAN MARINE PETROLEUM
      S.A. as Borrower;

            

    

     

    
      	
              (2)  

            	
              THE ROYAL BANK OF SCOTLAND
      PLC as Arranger, Agent, Security Agent, Issuing Bank and Account
      Bank; and

            

    

     

    
      	
              (3)  

            	
              THE BANKS AND FINANCIAL
      INSTITUTIONS whose names and addresses are set out in schedule 1 as
      Banks.

            

    

     

    IT IS AGREED as
follows:

     

    
      	
              1  

            	
              Purpose and definitions

            

    

     

    
      	
              1.1  

            	
              Purpose

            

    

     

    This
Agreement sets out the terms and conditions upon and subject to which the Banks
agree, according to their several obligations, to make available to the
Borrower:

     

    
      	
              1.1.1  

            	
              a
      revolving overdraft facility of up to One hundred and fifty million
      Dollars ($150,000,000) for the purpose of assisting the Borrower to
      finance the working capital needs of the Borrower and any other members of
      the Group in connection with trade related activities Provided
      however that an amount of up to One hundred million Dollars
      ($100,000,000) thereof may be used for the acquisition of vessels and/or
      shares and/or any other assets by members of the
      Group;  and

            

    

     

    
      	
              1.1.2  

            	
              a
      multi-currency revolving guarantee and letter of credit facility of up to
      Three hundred million Dollars ($300,000,000) (inclusive of the limit of
      the revolving overdraft facility referred to above) for the purpose of
      assisting the Borrower to finance the purchase and transportation of fuel
      cargoes and the payment of other expenses incidental to the supply of
      bunkers and lubricants to its
customers.

            

    

     

    
      	
              1.2  

            	
              Definitions

            

    

     

    In this
Agreement, unless the context otherwise requires:

     

    “Account Bank” means The Royal
Bank of Scotland plc, whose registered office is at 36 St. Andrew Square,
Edinburgh EH2 2YB, Scotland acting for the purposes of this Agreement through
its branch at 45 Akti Miaouli, 185 36 Piraeus, Greece (or of such other address
as may last have been notified to the other parties to this Agreement pursuant
to clause 17.1.3) or such other bank as may be designated by the Agent as the
Account Bank for the purposes of this Agreement and includes its successors in
title;

     

    “Account Pledges” means,
together, the Operating Account Pledge, the Cash Collateral Account Pledge, any
Illegality Security Account Pledge and “Account Pledge” means any of
them;

     

    “Accounts” means, together, the
Operating Account, the Overdraft Account, the Manager’s Operating Account and
the Cash Collateral Account and “Account” means any of
them;

     

    “Actual Exposure” means, at any
relevant time, the aggregate of:

     

    
      	
              (a)  

            	
              the
      Overdraft;

            

    

     

    
      	
              (b)  

            	
              the
      Outstanding Amounts for all L/Cs (subject to clause
  2.8);

            

    

     

    
      	
              (c)  

            	
              all
      amounts paid by the Banks pursuant to clauses 2.14, 4.2.1 or 4.2.2 which
      have not been fully paid or reimbursed by the Borrower under this
      Agreement; and

            

    

     

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    
      	
              (d)  

            	
              any
      undrawn and available amount of the Overdraft Facility taken into account
      by the Corporate Guarantor for the purpose of complying with clause
      5.3.1(c) of the Corporate Guarantee at the then latest time when
      compliance was tested by the Security
Agent;

            

    

     

    “Additional Mortgage Date”
means, in relation to each Additional Owner and the Additional Ship owned by it,
the date when the Borrower has actually delivered the documents and evidence
specified in clause 8.5.3 in connection with such Additional Ship in accordance
with the terms of such clause 8.5.3;

     

    “Additional Owner” means, in
relation to an Additional Ship, the member of the Group which is registered
owner of such Additional Ship at any relevant time, and “Additional Owners” means any
or all of them;

     

    “Additional Ship” means each of the
Additional Ship A, the Additional Ship B, the Additional Ship C and any other
vessel owned by a member of the Group, in each case if and to the extent it has
been designated by the Borrower and accepted by the Agent (acting on the
instructions of the Majority Banks in their absolute discretion) pursuant to
clause 8.5.3 to become an “Additional Ship” for the
purpose of this Agreement and “Additional Ships” means any or all of
them;

     

    “Additional Ship A” means the ship
described in detail in row 17 of Part B of schedule 3;

     

    “Additional Ship B” means the ship
described in detail in row 18 of Part B of schedule 3;

     

    “Additional Ship C” means the ship
described in detail in row 19 of Part B of schedule 3;

     

    “Agent” means The Royal Bank of
Scotland plc, whose registered office is at 36 St. Andrew Square, Edinburgh EH2
2YB, Scotland acting for the purposes of this Agreement through its branch at 45
Akti Miaouli, 185 36 Piraeus, Greece (or of such other address as may last have
been notified to the other parties to this Agreement pursuant to clause ) or
such other person as may be appointed as agent by the Banks, the Issuing Bank
and the Account Bank pursuant to clause 16 and includes its successors in
title;

     

    “Aggregate Liabilities” means,
at any relevant time, the aggregate of the Overdraft and the Outstandings of all
the Banks;

     

    “Applicable Accounting
Principles” means, at any relevant time, the most recent and up-to-date
US GAAP;

     

    “Arranger” means The Royal Bank
of Scotland plc, whose registered office is at 36 St. Andrew Square, Edinburgh
EH2 2YB, Scotland acting for the purposes of this Agreement through its branch
at 45 Akti Miaouli, 185 36 Piraeus, Greece (or of such other address as may last
have been notified to the other parties to this Agreement pursuant to clause
17.1.3) and includes its successors in title;

     

    “Availability Period” means, in
relation to each of the Overdraft Facility and the Guarantee Facility, the
period commencing on the date of this Agreement and ending on the earlier
of:

     

    
      	
              (a)  

            	
              the
      date falling one (1) month before the Final Maturity Date (or such later
      date as the Banks may agree with the Borrower);
  and

            

    

     

    
      	
              (b)  

            	
              the
      date on which the Banks’ obligation to make the Overdraft Facility and (as
      the case may be) the Guarantee Facility available is fully cancelled or
      terminated under the terms of this
Agreement;

            

    

     

    “Banking Day” means a day on
which banks are open in London, Hamburg and Piraeus and, in respect of a day on
which payment is required to be made or other dealing is due to take place under
this Agreement:

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    
      	
              (a)  

            	
              in
      Dollars, a day on which banks are open in New York
  City;

            

    

     

    
      	
              (b)  

            	
              in
      an Optional Currency (other than euros), a day on which banks are open in
      New York City and the principal financial centre of the country of that
      Optional Currency; and

            

    

     

    
      	
              (c)  

            	
              in
      euros, a Target Day,

            

    

     

    or any
other relevant place of payment under clause 6;

     

    “Banks” means the banks and
financial institutions set out in schedule 1 and includes their respective
successors in title and Transferee Banks and “Bank” means any of
them;

     

    “Beneficiary” means, in
relation to an L/C, the person in whose favour the L/C has been issued under
this Agreement;

     

    “Borrowed Money” means, in
relation to a person (the “debtor”), a liability of the
debtor:

     

    
      	
              (a)  

            	
              for
      principal, interest or any other sum payable in respect of any moneys
      borrowed or raised by the debtor;

            

    

     

    
      	
              (b)  

            	
              under
      any loan stock, bond, note or other security issued by the
      debtor;

            

    

     

    
      	
              (c)  

            	
              under
      any acceptance credit, guarantee or letter of credit facility made
      available to the debtor;

            

    

     

    
      	
              (d)  

            	
              under
      a financial lease, a deferred purchase consideration arrangement or any
      other agreement having the commercial effect of a borrowing or raising of
      money by the debtor;

            

    

     

    
      	
              (e)  

            	
              under
      any foreign exchange transaction, any interest or currency swap or any
      other kind of derivative transaction entered into by the debtor or, if the
      agreement under which any such transaction is entered into requires
      netting of mutual liabilities, the liability of the debtor for the net
      amount (and when calculating the value of any such transaction, only the
      marked to market value as at any date shall be taken into
      account);

            

    

     

    
      	
              (f)  

            	
              under
      a guarantee, indemnity or similar obligation entered into by the debtor in
      respect of a liability of another person which would fall within (a) to
      (e) if the references to the debtor referred to the other person;
      or

            

    

     

    
      	
              (g)  

            	
              any
      other Indebtedness which would be regarded as debt pursuant to the
      Applicable Accounting Principles,

            

    

     

    and, in
calculating the Borrowed Money of any person, none of the above items shall be
deducted or added or otherwise taken into account more than once in any such
calculation;

     

    “Borrower” means Aegean Marine
Petroleum S.A. of 80 Broad Street, Monrovia, Republic of Liberia and includes
its successors in title;

     

    “Cash Collateral Account” means
an interest bearing account of the Borrower opened by the Borrower with the
Account Bank and includes any sub-accounts thereof and any other account
designated in writing by the Agent to be a Cash Collateral Account for the
purposes of this Agreement;

     

    “Cash Collateral Account
Pledge” means the pledge of the Cash Collateral Account executed or (as
the context may require) to be executed by the Borrower in favour of the Banks,
the Agent, the Issuing Bank and the Account Bank in such form as the Banks may
in their absolute discretion require;

     

    “Casualty Amount” means, in
relation to each Ship, Two hundred and fifty thousand Dollars ($250,000) or the
equivalent in any other currency;

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    “Classification” means, in
relation to each Ship, the highest classification for a vessel of such Ship’s
type with the Classification Society or such other classification as the Agent
(acting on the instructions of the Majority Banks) shall, at the request of an
Owner, have agreed in writing shall be treated as the Classification for such
Owner’s Ship for the purposes of the Security Documents;

     

    “Classification Society” means,
in relation to each Ship, any classification society which is a member of the
International Association of Classification Societies (IACS) or such other
classification society which the Agent (acting on the instructions of the
Majority Banks) shall, at the request of an Owner, have agreed in writing shall
be treated as the Classification Society for such Owner’s Ship for the purposes
of the Security Documents;

     

    “Code” means the International
Management Code for the Safe Operation of Ships and for Pollution Prevention
constituted pursuant to Resolution A. 741(18) of the International Maritime
Organisation and incorporated into the International Convention for the Safety
of Life at Sea 1974 (as amended) and includes any amendments or extensions
thereto and any regulation issued pursuant thereto;

     

    “Collateral Mortgage Date”
means, in relation to each Collateral Owner and the Ship owned by it, the latest
date when the Borrower is required to deliver the documents and evidence
specified in clause 8.1.14 in connection with such Collateral Ship in accordance
with the terms of such clause 8.1.14;

     

    “Collateral Owner”
means:

     

    
      	
              (a)  

            	
              in
      relation to Collateral Ship A, the Collateral Owner
  A;

            

    

     

    
      	
              (b)  

            	
              in
      relation to Collateral Ship B, the Collateral Owner B;
  or

            

    

     

    
      	
              (c)  

            	
              in
      relation to Collateral Ship C, the Collateral Owner
  C,

            

    

     

    and
“Collateral Owners”
means any or all of them;

     

    “Collateral Owner A” means
Aegean Marine Petroleum LLC of P.O. Box 2688, Khorfakkan, Emirate of Sharjah,
United Arab Emirates and includes its successors in title;

     

    “Collateral Owner B” means
Aegean VII Shipping Ltd. of 13/16 Vincenti Buildings, Strait Street, Valletta,
Malta and includes its successors in title;

     

    “Collateral Owner C” means
Venus Holding Company of Trust Company Complex, Ajeltake Road, Ajeltake Island,
Majuro, Marshall Islands MH 96960 and includes its successors in
title;

     

    “Collateral Ship”
means:

     

    
      	
              (a)  

            	
              in
      relation to Collateral Owner A, the Collateral Ship
  A;

            

    

     

    
      	
              (b)  

            	
              in
      relation to Collateral Owner B, the Collateral Ship
  B;

            

    

     

    
      	
              (c)  

            	
              in
      relation to Collateral Owner C, the Collateral Ship
  C;

            

    

     

    and
“Collateral Ships” means
any or all of them;

     

    “Collateral Ship A” means the
Ship owned by the Collateral Owner A, as described in more detail in row 14 of
Part B of schedule 3;

     

    “Collateral Ship B” means the
Ship owned by the Collateral Owner B, as described in more detail in row 15 of
Part B of schedule 3;

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    “Collateral Ship C” means the
Ship owned by the Collateral Owner C, as described in more detail in row 16 of
Part B of schedule 3;

     

    “Compulsory Acquisition” means,
in relation to a Ship, requisition for title or other compulsory acquisition,
requisition, appropriation, expropriation, deprivation, forfeiture or
confiscation for any reason of that Ship by any Government Entity or other
competent authority, whether de jure or de facto, but shall exclude requisition
for use or hire not involving requisition of title;

     

    “Corporate Guarantee” means the
corporate guarantee executed or (as the context may require) to be executed by
the Corporate Guarantor in favour of the Security Agent in such form as the
Banks may in their sole discretion require;

     

    “Corporate Guarantor” means
Aegean Marine Petroleum Network Inc. of Trust Company Complex, Ajeltake Road,
Ajeltake Island, Majuro, Marshall Islands MHJ96960 and includes its successors
in title;

     

    “Creditors” means, together,
the Arranger, the Agent, the Account Bank, the Issuing Bank, the Security Agent
and the Banks and “Creditor” means any of
them;

     

    “Customer” means each person
from whom Receivables are due to the Borrower at any relevant time and “Customers” means any or all of
them;

     

    “Deed of Covenant” means, in
relation to each Ship, a deed of covenant or general assignment (as the case may
be) collateral to the Mortgage of that Ship executed or (as the context may
require) to be executed by the relevant Owner in favour of the Security Agent or
any of the other Creditors in such form as the Banks may in their absolute
discretion require, and “Deeds
of Covenant” means any or all of them;

     

    “Default” means any Event of
Default or any event or circumstance which with the giving of notice or lapse of
time or the satisfaction of any other condition (or any combination thereof)
would constitute an Event of Default;

     

    “Direct Credit Substitute”
means a letter of credit or bank guarantee issued or to be issued by the Issuing
Bank in favour of a Beneficiary in such form as is agreed between the Issuing
Bank and the Borrower which is required by the Borrower in the ordinary course
of its business and which is neither a Documentary L/C nor a Transaction Related
Standby L/C;

     

    “Documentary L/C” means a letter of credit
issued or to be issued by the Issuing Bank in favour of a Beneficiary in such
form as is agreed between the Issuing Bank and the Borrower which directly
relates to the purchase of Oil Products by the Borrower and which imposes on the
Issuing Bank a primary obligation to pay upon presentation of specified
documents as specified in such letter of credit;

     

    “DOC” means a document of
compliance issued to an Operator in accordance with rule 13 of the
Code;

     

    “Dollars” and “$” mean the lawful currency of
the United States of America and in respect of all payments to be made under any
of the Security Documents mean funds which are for same day settlement in the
New York Clearing House Interbank Payments System (or such other U.S. dollar
funds as may at the relevant time be customary for the settlement of
international banking transactions denominated in U.S. dollars);

     

    “Earnings” means, in relation
to a Ship, all moneys whatsoever from time to time due or payable to the Owner
of such Ship during the Security Period arising out of the use or operation of
such Ship including (but without limiting the generality of the foregoing) all
freight, hire and passage moneys, income arising out of pooling arrangements,
compensation payable to such Owner in the event of requisition of such Ship for
hire, remuneration for salvage or towage services, demurrage and detention
moneys and damages for breach (or payment for variation or termination) of any
charterparty or other contract for the employment of such Ship;

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    “EMU Legislation” means
legislative measures of the Council of the European Union for the introduction
of, changeover to, or operation of, a single or unified European Currency being
part of the implementation of the Third Stage;

     

    “Encumbrance” means any
mortgage, charge (whether fixed or floating), pledge, lien, hypothecation,
assignment, trust arrangement or security interest or other encumbrance of any
kind securing any obligation of any person or any type of preferential
arrangement (including without limitation title transfer and/or retention
arrangements having a similar effect);

     

    “Environmental Affiliate” means
any agent or employee of the Borrower or any other Relevant Party or any person
having a contractual relationship with the Borrower or any other Relevant Party
in connection with any Relevant Ship or its operation or the carriage of cargo
and/or passengers thereon and/or the provision of goods and/or services on or
from such Relevant Ship;

     

    “Environmental Approval” means
any consent, authorisation, licence or approval of any governmental or public
body or authorities or courts applicable to any Relevant Ship or its operation
or the carriage of cargo and/or passengers thereon and/or the provision of goods
and/or services on or from such Relevant Ship required under any Environmental
Law;

     

    “Environmental Claim” means any
and all material enforcement, clean-up, removal or other governmental or
regulatory actions or orders instituted or completed pursuant to any
Environmental Law or any Environmental Approval together with claims made by any
third party relating to damage, contribution, loss or injury, resulting from any
actual or threatened emission, spill, release or discharge of a Pollutant from
any Relevant Ship;

     

    “Environmental Laws” means all
national, international and state laws, rules, regulations, treaties and
conventions applicable to any Relevant Ship pertaining to the pollution or
protection of human health or the environment including, without limitation, the
carriage of Pollutants and actual or threatened emissions, spills, releases or
discharges of Pollutants;

     

    “EURIBOR” means, in relation to
a particular period:

     

    
      	
              (a)  

            	
              the
      applicable Screen Rate; or

            

    

     

    
      	
              (b)  

            	
              if
      no Screen Rate is available for that period, the arithmetic mean of the
      rates (rounded upwards to four decimal places) quoted to the Agent by the
      Reference Banks at the request of the Agent to be the rate offered to each
      Reference Bank by leading banks in the European interbank
      market,

            

    

     

    as of
11:00 a.m. (Brussels time) on the Quotation Day for the offering of deposits in
euro for a period comparable to that period;

     

    “euro” and “euros” means, for the time
being, the single currency of Participating Member States as provided in the EMU
Legislation;

     

    “Event of Default” means any of
the events or circumstances described in clause ;

     

    “Expiry Date” means, in
relation to an L/C, the expiry date specified in the Issue Request relating
thereto and initially applicable thereto or, as the context may require, any
extended expiry date requested and agreed to by the Banks pursuant to clause 2.6
and/or clause 2.13 provided that in no circumstances shall the expiry date of an
L/C be a date falling after the Final Maturity Date except in accordance with
clause 2.13;

     

    “Final Maturity Date” means, in
relation to the Overdraft Facility and the Guarantee Facility, the earlier of
(a) the date falling twelve (12) months after the date of this Agreement and (b)
31 December 2008;

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    “Flag State” means, in relation
to each Ship (other than an Additional Ship), such state or territory (if any)
specified opposite such Ship’s name in the column headed “Flag State” in Part B of
schedule 3 or such state or territory designated in writing by the Majority
Banks in their absolute discretion, at the request of an Owner as being the
“Flag State” of such Owner’s Ship for the purpose of the Security
Documents;

     

    “Government Entity” means and
includes (whether having a distinct legal personality or not) any national or
local government authority, board, commission, department, division, organ,
instrumentality, court or agency and any association, organisation or
institution of which any of the foregoing is a member or to whose jurisdiction
any of the foregoing is subject or in whose activities any of the foregoing is a
participant;

     

    “Group” means, together, the
Corporate Guarantor and its Subsidiaries from time to time (which, for the
avoidance of doubt, includes all other Security Parties) and “member of the Group” shall be
construed accordingly;

     

    “Guarantee Facility” means the
multi-currency revolving guarantee and letter of credit facility of up to
$300,000,000 referred to in clause 2.1.2 and made available by the Banks to the
Borrower pursuant to this Agreement;

     

    “Guarantee Facility Commitment”
means, at any relevant time, $300,000,000 or the equivalent thereof in Optional
Currencies minus the Overdraft at the relevant time, as such amount may be
reduced or cancelled by any relevant term of this Agreement;

     

    “Illegality Security Account”
means, in respect of an L/C, each account opened or (as the context may require)
to be opened by the Borrower with the Account Bank following the Agent’s request
pursuant to clause 14.7 in respect of that L/C and includes any sub-accounts
thereof and “Illegality
Security Accounts” means any or all of them;

     

    “Illegality Security Account
Pledge” means, in respect of an Illegality Security Account, the pledge
of such account executed or (as the context may require) to be executed by the
Borrower in favour of the Agent, the Account Bank, the Banks and the Issuing
Bank in such form as the Banks may in their absolute discretion require and
“Illegality Security Account
Pledges” means any or all of them;

     

    “Indebtedness” means any
obligation for the payment or repayment of money, whether as principal or as
surety and whether present or future, actual or contingent;

     

    “Insurance Letter” means, in
respect of a Ship, a letter from the Owner of such Ship in the form set out in
schedule 7;

     

    “Insurances” means, in relation
to a Ship, all policies and contracts of insurance (which expression includes
all entries of that Ship in a protection and indemnity or war risks association)
which are from time to time during the Security Period in place or taken out or
entered into by or for the benefit of the relevant Owner (whether in the sole
name of such Owner, or in the joint names of such Owner and the Security Agent
or otherwise) in respect of such Owner’s Ship and her Earnings or otherwise
howsoever in connection with such Ship and all benefits thereof (including
claims of whatsoever nature and return of premiums);

     

    “Interest Payment Date” means
the last day of an Interest Period;

     

    “Interest Period” means each
seven day period commencing on a Wednesday of a week and ending on the Tuesday
of the immediately subsequent week (but, in the event the date of the first
drawing under the Overdraft Facility falls on a day other than a Wednesday, the
first Interest Period thereof shall commence on such first day of drawing and
shall end on the immediately subsequent Tuesday);

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    “ISPS Code” means the
International Ship and Port facility Security Code constituted pursuant to
resolution A.924(22) of the International Maritime Organization now set out in
Chapter XI-2 of the International Convention for the Safety of Life at Sea 1974
(as amended) as adopted by a Diplomatic conference of the International Maritime
Organisation on Maritime Security in December 2002 and includes any amendments
or extensions thereto and any regulation issued pursuant thereto;

     

    “ISSC” means, in relation to
each Ship, an International Ship Security Certificate issued in respect
of  that Ship pursuant to the ISPS Code;

     

    “Issue Date” means, in relation
to an L/C, the date, being a Banking Day falling within the Availability Period,
on which the Borrower requests that such L/C be issued, as specified in the
Issue Request for such L/C or (as the context may require) the date on which
such L/C is actually issued;

     

    “Issue Request” means, in
relation to an L/C, a notice in the form or substantially in the form of
schedule 5;

     

    “Issuing Bank” means The Royal
Bank of Scotland plc, whose registered office at 36 St. Andrew Square, Edinburgh
EH2 2YB, Scotland acting for the purposes of this Agreement through its branch
at 45 Akti Miaouli, 185 36 Piraeus, Greece (or of such other address as may last
have been notified to the other parties to this Agreement pursuant to clause
17.1.3) and includes its successors in title;

     

    “L/C” means:

     

    
      	
              (a)  

            	
              a
      Documentary L/C; or

            

    

     

    
      	
              (b)  

            	
              a
      Transaction Related Standby L/C; or

            

    

     

    
      	
              (c)  

            	
              a
      Direct Credit Substitute;

            

    

     

    “L/C Valuation Date” has the
meaning given to that term in clause 2.8;

     

    “LIBOR” means in relation to a
particular period:

     

    
      	
              (a)  

            	
              in
      respect of any amount outstanding hereunder in Dollars or in an Optional
      Currency (other than euros) but excluding any amounts outstanding under
      the Overdraft, the rate for deposits of the relevant currency for a period
      equivalent to such period at or about 11:00 a.m. on the Quotation Date for
      such period as displayed on Reuters page LIBOR 01 (British Bankers’
      Association Interest Settlement Rates) (or such other page as may replace
      such page LIBOR 01 on such system or on any other system of the
      information vendor for the time being designated by the British Bankers’
      Association to calculate the BBA Interest Settlement Rate (as defined in
      the British Bankers’ Association’s Recommended Terms and Conditions
      (“BBAIRS” terms)
      applicable at the relevant time)) provided
      that if on such date no
      such rate is so displayed, LIBOR for such period shall be the arithmetic
      mean of the rates quoted to the Agent by the Reference Banks at the
      request of the Agent, as the rate for deposits of the relevant currency in
      an amount approximately equal to the amount in relation to which LIBOR is
      to be determined for a period equivalent to such period offered to each
      Reference Bank by prime banks in the London Interbank Market at or about
      11:00 a.m. (London time) on the Quotation Date for such period;
      or

            

    

     

    
      	
              (b) 
      

            	
              in
      respect of the Overdraft in relation to each Interest Period for the
      Overdraft, the rate per annum (rounded upwards to the nearest one
      sixteenth (1/16th)
      of one per cent (1%)) quoted by the Account Bank to the Agent, the Banks
      and the Borrower as “LIBOR” for seven-day Dollar deposits on the first day
      of such Interest Period;

            

    

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    “Management Agreement” means,
in relation to each Ship, the management agreement made or (as the context may
require) to be made between the relevant Owner and the Manager in a form
previously approved in writing by the Majority Banks, providing (inter alia) for the Manager
to manage that Ship and “Management Agreements” means
any or all of them;

     

    “Manager” means, in relation to
each Ship, Aegean Bunkering Services Inc. of Trust Company Complex, Ajeltake
Road, Ajeltake Island, Majuro, Marshall Islands MH96960 or any other person
appointed by the Owner of such Ship, with the prior written consent of the
Majority Banks, as the manager of such Ship and, in each such case, includes
their respective successors in title;

     

    “Manager’s Operating Account” means an
interest bearing Dollar account of the Manager opened by the Manager with the
Account Bank and includes any sub-accounts thereof and any other account
designated in writing by the Agent to be a Manager’s Operating Account for the
purposes of this Agreement;

     

    “Manager’s Undertaking” means,
in relation to each Ship, the first priority undertaking and assignment in
relation to that Ship executed or (as the context may require) to be executed by
the Manager in favour of the Security Agent in such form as the Banks may
require in their sole discretion and “Manager’s Undertakings” means
any or all of them;

     

    “Margin” means, in relation to
the Overdraft, one point two five per cent (1.25%) per annum;

     

    “Majority Banks” means, at any
relevant time, Banks the aggregate of whose Percentages exceeds Sixty-six point
six six per cent (66.66%);

     

    “Mandatory Cost” means, in
relation to any period, a percentage calculated by the Agent for such period at
an annual rate determined by the application of the formula set out in schedule
6;

     

    “month” means a period
beginning in one calendar month and ending in the next calendar month on the day
numerically corresponding to the day of the calendar month on which it started,
provided that (a) if the period started on the last Banking Day in a
calendar month or if there is no such numerically corresponding day, it shall
end on the last Banking Day in such next calendar month and (b) if such
numerically corresponding day is not a Banking Day, the period shall end on the
next following Banking Day in the same calendar month but if there is no such
Banking Day it shall end on the preceding Banking Day and “months” and “monthly” shall be construed
accordingly;

     

    “Mortgage” means, in relation
to each Ship, the first priority or (as the case may be) first preferred
mortgage of that Ship executed or (as the context may require) to be executed by
the relevant Owner in favour of the Security Agent or any of the other Creditors
in such form as the Banks may in their absolute discretion require, and “Mortgages” means any or all of
them;

     

    “Mortgaged Ship” means, at any
relevant time, any Ship which is at such time subject to a Mortgage and/or the
Earnings, Insurances and Requisition Compensation of which are subject to an
Encumbrance pursuant to the relevant Ship Security Documents and a Ship shall,
for the purposes of this Agreement, be deemed to be a Mortgaged Ship as from
whichever shall be the earlier of (a) the date that the Deed of Covenant for
such Ship shall have been executed in accordance with this Agreement and (b) the
date that the Mortgage of that Ship shall have been executed and registered in
accordance with this Agreement, until whichever shall be the earlier of (i) the
payment in full of the amount (if any) required to be paid by the Borrower
and/or required to be placed to the credit of the Cash Collateral Account
pursuant to clause 4.3 following the Total Loss of such Ship and (ii) the
date on which all moneys owing under the Security Documents have been repaid in
full;

     

    “Oil Products” means oil
bunkering products and lubricants used in the maritime industry;

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    “Operating Account” means an
interest bearing account of the Borrower opened by the Borrower with the Account
Bank and includes any sub-accounts thereof and any other account designated in
writing by the Agent to be an Operating Account for the purposes of this
Agreement;

     

    “Operating Account Pledge”
means the pledge of the Operating Account executed or (as the context may
require) to be executed by the Borrower in favour of the Banks, the Agent, the
Issuing Bank and the Account Bank in such form as the Banks may in their
absolute discretion require;

     

    “Operator” means any person who
is from time to time during the Security Period concerned in the operation of a
Ship and falls within the definition of “Company” set out in rule 1.1.2
of the Code;

     

    “Optional Currency” means the
euro and any other currency (other than Dollars) which is acceptable to the
Majority Banks and the Issuing Bank and is, for the time being, freely
transferable and convertible into Dollars in the London Foreign Exchange
Market;

     

    “Optional Currency L/C” means
an L/C denominated in an Optional Currency;

     

    “Original Dollar Amount” means,
in relation to an L/C:

     

    
      	
              (a)  

            	
              (if
      denominated in Dollars) the amount in Dollars which is, or is to be
      outstanding under such L/C; or

            

    

     

    
      	
              (b)  

            	
              (if
      denominated in an Optional Currency) the amount in Dollars which would
      have been outstanding if such L/C had first been issued and had remained
      denominated in Dollars (and such amount shall be the amount in Dollars
      required for the purchase of the relevant amount of the relevant Optional
      Currency of that L/C in the London Foreign Exchange Market on the Issue
      Date of such L/C for spot delivery on the basis of the rate determined by
      the Agent (following advice from the Issuing Bank) to have been the
      Issuing Bank’s spot rate of exchange for such purchase at or about 11.00
      a.m. on such Issue Date),

            

    

     

    as
reduced from time to time by reductions of such L/C under this
Agreement;

     

    “Outstanding Amount” means, in
relation to an L/C, the maximum amount (whether of principal or interest or
otherwise) determined by the Agent (following advice by the Issuing Bank) to be
that for which such L/C was issued and, in relation to an Optional Currency L/C,
the amount in Dollars last determined by the Agent (following advice by the
Issuing Bank) as the Outstanding Amount in accordance with clause 2.8.2, in each
case less the aggregate amount of all reductions to such L/C which have been
made in accordance with the provisions of clause 2.9 (subject always to clause
10.5);

     

    “Outstandings” means, at any
relevant time and in relation to a Bank, the aggregate of (a) its Percentage of
the Outstanding Amounts for all L/Cs and (b) any amounts paid by that Bank
pursuant to clauses 2.14, 4.2.1 or 4.2.2 which have not been fully paid or
reimbursed by the Borrower (subject always to clause 10.5);

     

    “Overdraft” means, from time to
time and at any relevant time, the outstanding aggregate debit balance on the
Overdraft Account;

     

    “Overdraft Account” means a
Dollar “open current account” of the Borrower opened by the Borrower with the
Account Bank and includes any sub-accounts thereof and any other account
designated in writing by the Agent to be an Overdraft Account for the purposes
of this Agreement;

     

    “Overdraft Facility” means the
revolving overdraft facility of up to $150,000,000 referred to in clause 2.1.1
and made available by the Banks to the Borrower pursuant to this
Agreement;

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    “Overdraft Facility Limit”
means, at any relevant time, an amount of up to the lower of:

     

    
      	
              (a)  

            	
              One
      hundred and fifty million Dollars ($150,000,000) (or such other sum as may
      be approved in writing by all the Banks in their absolute discretion);
      and

            

    

     

    
      	
              (b)  

            	
              the
      amount in Dollars which is equal to the available and unutilised portion
      of the Guarantee Facility at the relevant
time,

            

    

     

    as such
amount may be reduced or cancelled by any relevant term of this
Agreement;

     

    “Owner” means:

     

    
      	
              (a)  

            	
              each
      of the companies listed in Part A of schedule 3 under the column headed
      “Owner”, each
      being a company incorporated in such jurisdiction as specified opposite
      such company’s name in the column headed “Country of
      Incorporation” in Part A of schedule 3 and whose registered office
      is as specified opposite such company’s name in the column headed “Registered Office” in
      Part A of schedule 3; and

            

    

     

    
      	
              (b)  

            	
              each
      Additional Owner,

            

    

     

    and, in
relation to a Ship, means the company set out opposite the name of such Ship in
the column headed “Owning
Company” in Part B of schedule 3 or, in the case of an Additional Ship,
the relevant Additional Owner owning such Ship, it includes each Owner’s
successors in title and “Owners” means any or all of
them;

     

    “Owner’s Guarantee” means, in
relation to each Owner and its Ship, the corporate guarantee executed or (as the
context may require) to be executed by such Owner in favour of the Security
Agent or any of the other Creditors in such form as the Banks may in their sole
discretion require and “Owner’s
Guarantees” means any or all of them;

     

    “Participating Member State”
means each state so described in any EMU Legislation;

     

    “Percentage” means, in relation
to a Bank, the percentage set opposite its name in schedule 1 under the heading
“Percentage” or, as the case may be, in any relevant Transfer Certificate, as
reduced by any relevant term of this Agreement;

     

    “Permitted Encumbrance” means
any Encumbrance in favour of the Security Agent or any of the other Creditors
created pursuant to the Security Documents and Permitted Liens;

     

    “Permitted Liens” means, in
relation to each Ship, any lien on that Ship for master’s, officer’s or crew’s
wages outstanding in the ordinary course of trading, any lien for salvage and
any ship repairer’s or outfitter’s possessory lien for a sum not (except with
the prior written consent of the Majority Banks) exceeding the relevant Casualty
Amount;

     

    “Pollutant” means and includes
pollutants, contaminants, toxic substances, oil as defined in the United States
Oil Pollution Act of 1990 and all hazardous substances as defined in the United
States Comprehensive Environmental Response, Compensation and Liability Act
1980;

     

    “Qualifying Receivables” means
Receivables which, at the relevant time:

     

    
      	
              (a)  

            	
              have
      been assigned to the Security Agent pursuant to the Receivables
      Assignment;

            

    

     

    
      	
              (b)  

            	
              have
      been included in a Schedule of Receivables submitted to the Agent pursuant
      to clause 2.4 or clause 8.2.1 and meet the requirements of clause 2.4,
      each together with the copies of documents,  receipt(s) and
      invoice(s) relating to such Receivables required to be submitted pursuant
      to clause 2.4 and:

            

    

     

    
      	
              (c)  

            	
              (i)
      in the case of Receivables due in respect of lubricants, are payable
      within 60 days of the date of the relevant receipt and are not overdue for
      payment; and

            

    

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    

    (ii) in
the case of Receivables due in respect of oil bunkering, are payable within 30
days of the date of the relevant receipt and are not overdue for payment by more
than 15 days;

     

    “Quotation Date” means, in
relation to any period for which an interest rate is to be determined under any
provision of this Agreement or any other Security Documents:

     

    
      	
              (a)  

            	
              in
      the case of deposits in Dollars or an Optional Currency (other than
      euros), the day on which quotations would ordinarily be given by leading
      banks in the London Interbank Market for deposits in the relevant currency
      to which such rate is to be determined for delivery on the first day of
      that period; and

            

    

     

    
      	
              (b)  

            	
              in
      the case of deposits in euros, the Target Day on which quotations would
      ordinarily be given by leading banks in the European Interbank Market for
      deposits in euros for delivery on the first day of that
      period;

            

    

     

    “Receivables” means sums due
and owing at any relevant time to the Borrower by its customers in respect of
oil bunkering and/or lubricant sales;

     

    “Receivables Assignment” means
an assignment of the Receivables executed or (as the context may require) to be
executed by the Borrower in favour of the Security Agent in such form as the
Banks may in their sole discretion require;

     

    “Reference Banks” in relation
to LIBOR, EURIBOR and Mandatory Cost, means the Agent, HSH Nordbank AG and any
other bank or financial institution appointed as such by the Agent from time to
time in its discretion;

     

    “Registry” means, in relation
to a Ship, any registrar, consul, commissioner or representative of the relevant
Flag State who is duly authorised and empowered to register such Ship, the
relevant Owner’s title to such Ship and the relevant Mortgage under the laws and
flag of the relevant Flag State;

     

    “Related Company”:

     

    
      	
              (a)  

            	
              of
      a Creditor, means any Subsidiary of that Creditor, any company or other
      entity of which that Creditor is a Subsidiary and any Subsidiary of any
      such company or entity; or

            

    

     

    
      	
              (b)  

            	
              of
      a Security Party, means any company or other entity which is (whether
      directly or as a member of a group of companies which are) engaged,
      involved or active in the bunkering business or in the provision of
      bunkering products or services and which
is:

            

    

     

    
      	
              (i)  

            	
              a
      Subsidiary of the relevant Security Party;
or

            

    

     

    
      	
              (ii)  

            	
              any
      company or other entity (“holding company”) of
      which such Security Party is a Subsidiary;
or

            

    

     

    
      	
              (iii)  

            	
              any
      Subsidiary (other than such Security Party) of any such holding
      company;

            

    

     

    “Relevant Jurisdiction” means
any jurisdiction in which or where any Security Party is incorporated, resident,
domiciled, has a permanent establishment, carries on, or has a place of business
or is otherwise effectively connected;

     

    “Relevant Party” means the
Borrower, the Borrower’s Related Companies and any other Security Party and any
such Security Parties’ Related Companies, including, for the avoidance of doubt,
each member of the Group from time to time;

     

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    “Relevant Ship” means the Ships
and any other vessel from time to time (whether before or after the date of this
Agreement) owned, managed or crewed by, or chartered to, any Relevant
Party;

     

    “Requisition Compensation”
means, in relation to a Ship, all sums of money or other compensation from time
to time payable during the Security Period by reason of the Compulsory
Acquisition of such Ship;

     

    “Reset Date” has the meaning
given in clause 2.5;

     

    “Schedule of Receivables” means
a Schedule in the form of a schedule to the Receivables Assignment (or in such
other form as the Agent may approve) and submitted or to be submitted to the
Agent pursuant to clause 2.4 or clause 8.2.1;

     

    “Screen Rate” means, for the
purposes of determining EURIBOR, the percentage rate per annum determined by the
Banking Federation of the European Union for the relevant period, displayed on
the appropriate page (being EURIBOR01 on the date of this Agreement) of the
Reuters screen.  If the agreed page is replaced or service ceases to
be available, the Agent may specify another page or service displaying the
appropriate rate after consultation with the Borrower;

     

    “Security Agent” means The
Royal Bank of Scotland plc, whose registered office is at 36 St. Andrew Square,
Edinburgh EH2 2YB, Scotland acting for the purposes of this Agreement through
its branch at 45 Akti Miaouli, 185 36 Piraeus, Greece (or of such other address
as may last have been notified to the other parties to this Agreement pursuant
to clause ) or such other person as may be appointed as security agent and
trustee by the Banks, the Agent, the Issuing Bank and the Account Bank pursuant
to clause 16 and includes its successors in title;

     

    “Security Documents” means this
Agreement, the Corporate Guarantee, the Owner’s Guarantees, the Mortgages, the
Deeds of Covenant, the Manager’s Undertakings, the Receivables Assignment, any
Schedule of Receivables, the Account Pledges and any other agreement or document
as may have been or shall from time to time after the date of this Agreement be
executed to guarantee and/or secure all or any part of the Aggregate
Liabilities, interest thereon and other moneys from time to time owing by the
Borrower or any other Security Party pursuant to this Agreement and/or any other
Security Document (whether or not any such document also secures moneys from
time to time owing pursuant to any other document or agreement);

     

    “Security Party” means each
Borrower, the Corporate Guarantor, each Owner and the Manager or any other
person who may at any time be a party to any of the Security Documents (other
than the Creditors);

     

    “Security Period” means the
period commencing on the date hereof and terminating upon the later of (a) the
date when there shall be no Aggregate Liabilities and the security created by
the Security Documents shall have been discharged by payment of all monies
payable thereunder, whether actually or contingently and (b) the latest Expiry
Date;

     

    “Security Requirement” means
the amount in Dollars (as certified by the Agent whose certificate shall, in the
absence of manifest error, be conclusive and binding on the Borrower and the
other Creditors) which is, at any relevant time, One hundred and twenty per cent
(120%) of the aggregate of (a) the Actual Exposure minus (b) eighty per cent
(80%) of the face value of all Qualifying Receivables minus (c) any amount
standing to the credit of the Cash Collateral Account and any Illegality
Security Account (and any such amounts in an Optional Currency shall be
calculated by the Agent in their Dollar equivalent by using the Issuing Bank’s
spot rate of exchange referred to in clause 2.8 as of the date of any relevant
calculation);

     

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

    “Security Value” means the
amount in Dollars (as certified by the Agent whose certificate shall, in the
absence of manifest error, be conclusive and binding on the Borrower and the
other Creditors) which is, at any relevant time, the aggregate of (a) the market
value of the Mortgaged Ships as most recently determined in accordance with
clause 8.2.2 and (b) the market value of any additional security for the
time being actually provided to the Creditors pursuant to clause 8.2 (but
excluding amounts standing to the credit of the Cash Collateral
Account);

     

    “Settlement Amount” means, in
relation to each demand made under an L/C, the amount payable by the Issuing
Bank to the Beneficiary in respect of such demand, in Dollars or, in the case of
an L/C issued in an Optional Currency, in such Optional Currency;

     

    “Settlement Date” means, in
relation to each demand made under an L/C, the date on which payment of the
Settlement Amount is due to the Beneficiary in respect of the
demand;

     

    “Ship” means each of the motor
vessels listed in Part B of schedule 3 under the column headed “Name/Hull Number”, each
registered, in the name and under the ownership of the relevant Owner under the
relevant Flag State, in each case with the IMO number (if any) specified
opposite such vessel’s name in the column headed “IMO No.” in Part B of schedule
3 and each Additional Ship, and “Ships” means any or all of
them;

     

    “Ship Security Documents”
means, in relation to a Ship, the Owner’s Guarantee, the Mortgage, the Deed of
Covenant and the Manager’s Undertaking relevant to such Ship;

     

    “SMC” means, in relation to a
Ship, a safety management certificate issued in respect of that Ship in
accordance with rule 13 of the Code;

     

    “Subsidiary” of a person means
any company or entity directly or indirectly controlled by such person, and for
this purpose “control”
means either the ownership of more than fifty per cent (50%) of the voting share
capital (or equivalent rights of ownership) of such company or entity or the
power to direct its policies and management, whether by contract or
otherwise;

     

    “Target Day” means a day on
which the Trans-European Automated Real Time Gross Settlement Express Transfer
System is open;

     

    “Taxes” includes all present
and future taxes, levies, imposts, duties, fees or charges of whatever nature
together with interest thereon and penalties in respect thereof and “Taxation” shall be construed
accordingly;

     

    “Third Stage” means the third
stage of European economic and monetary union pursuant to the Treaty on European
Union;

     

    “Total Loss” means, in respect
of a Ship:

     

    
      	
              (b)  

            	
              the
      actual, constructive, compromised or arranged total loss of such Ship;
      or

            

    

     

    
      	
              (c)  

            	
              the
      Compulsory Acquisition of such Ship;
or

            

    

     

    
      	
              (d)  

            	
              the
      hijacking, theft, condemnation, capture, seizure, arrest, detention or
      confiscation of such Ship (other than where the same amounts to the
      Compulsory Acquisition of such Ship) by any Government Entity, or by
      persons acting or purporting to act on behalf of any Government Entity,
      unless such Ship be released and restored to the relevant Owner from such
      hijacking, theft, condemnation, capture, seizure, arrest, detention or
      confiscation within thirty (30) days after the occurrence
      thereof;

            

    

     

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

    

    “Transaction Related Standby
L/C”  means a letter of credit, letter of guarantee or bank
guarantee issued or to be issued by the Issuing Bank in favour of a Beneficiary
in such form as is agreed between the Issuing Bank and the Borrower which
relates directly to the purchase of Oil Products by the Borrower and which
imposes on the Issuing Bank an obligation to pay (a) only upon default in
payment by the Borrower under its contract with the supplier of such Oil
Products and (b) upon presentation of specified documents as specified in such
letter of credit, letter of guarantee or bank guarantee (as the case may
be);

     

    “Transfer Certificate” means a
certificate substantially in the form set out in schedule 4;

     

    “Transferee Bank” has the
meaning ascribed thereto in clause ;

     

    “Transferor Bank” has the
meaning ascribed thereto in clause ;

     

    “Treaty on European Union”
means the Treaty of Rome of 25 March 1957, as amended by the Single European Act
1986 and the Maastricht Treaty of 7 February 1992;

     

    “Trust Deed” means a trust deed
in the form, or substantially in the form, set out in schedule 8;

     

    “Trust Property” means (a) the
security, powers, rights, titles, benefits and interests (both present and
future) constituted by and conferred on the Security Agent under or pursuant to
the Security Documents (including, without limitation, the benefit of all
covenants, undertakings, representations, warranties and obligations given, made
or undertaken to the Security Agent in the Security Documents), (b) all moneys,
property and other assets paid or transferred to or vested in the Security Agent
or any agent of the Security Agent or any receiver or received or recovered by
the Security Agent or any agent of the Security Agent or any receiver pursuant
to, or in connection with, any of the Security Documents whether from any
Security Party or any other person and (c) all money, investments, property and
other assets at any time representing or deriving from any of the foregoing,
including all interest, income and other sums at any time received or receivable
by the Security Agent or any agent of the Security Agent in respect of the same
(or any part thereof); and

     

    “Underlying Documents” means,
together, the Management Agreements and “Underlying Document” means any
of them.

     

    
      	
              1.3  

            	
              Headings

            

    

     

    Clause
headings and the table of contents are inserted for convenience of reference
only and shall be ignored in the interpretation of this Agreement.

     

    
      	
              1.4  

            	
              Construction
      of certain terms

            

    

     

    In this
Agreement, unless the context otherwise requires:

     

    
      	
              1.4.1  

            	
              references
      to clauses and schedules are to be construed as references to
      clauses of, and schedules to, this Agreement and references to
      this Agreement include its
schedules;

            

    

     

    
      	
              1.4.2  

            	
              references
      to (or to any specified provision of) this Agreement or any other document
      shall be construed as references to this Agreement, that provision or that
      document as in force for the time being and as amended in accordance with
      terms thereof, or, as the case may be, with the agreement of the relevant
      parties;

            

    

     

    
      	
              1.4.3  

            	
              references
      to a “regulation”
      include any present or future regulation, rule, directive, requirement,
      request or guideline (whether or not having the force of law) of any
      agency, authority, central bank or government department or any
      self-regulatory or other national or supra-national
    authority;

            

    

     

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

    
      	
              1.4.4  

            	
              words
      importing the plural shall include the singular and vice
      versa;

            

    

     

    
      	
              1.4.5  

            	
              references
      to a time of day are to London
time;

            

    

     

    
      	
              1.4.6  

            	
              references
      to a person shall be construed as references to an individual, firm,
      company, corporation, unincorporated body of persons or any Government
      Entity;

            

    

     

    
      	
              1.4.7  

            	
              references
      to a “guarantee”
      include references to an indemnity or other assurance against financial
      loss including, without limitation, an obligation to purchase assets or
      services as a consequence of a default by any other person to pay any
      Indebtedness and “guaranteed” shall be
      construed accordingly;

            

    

     

    
      	
              1.4.8  

            	
              references
      to any enactment shall be deemed to include references to such enactment
      as re-enacted, amended or extended;
and

            

    

     

    
      	
              1.4.9  

            	
              references
      to a “demand”
      include any requirement to make payment in accordance with the terms of an
      L/C.

            

    

     

    
      	
              1.4.10  

            	
              Majority
      Banks

            

    

     

    Where
this Agreement or any other Security Document provides for any matter to be
determined by reference to the opinion of the Majority Banks or to be subject to
the consent or request of the Majority Banks or for any action to be taken on
the instructions in writing of the Majority Banks, such opinion, consent,
request or instructions shall (as between the Banks) only be regarded as having
been validly given or issued by the Majority Banks if all the Banks shall have
received prior notice of the matter on which such opinion, consent, request or
instructions are required to be obtained and the relevant majority of Banks
shall have given or issued such opinion, consent, request or instructions but so
that (as between the Borrower and the Banks) the Borrower shall be entitled (and
bound) to assume that such notice shall have been duly received by each Bank and
that the relevant majority shall have been obtained to constitute Majority Banks
whether or not this is in fact the case.

     

    
      	
              2  

            	
              The
      Facilities

            

    

     

    
      	
              2.1  

            	
              The
      Facilities; amounts; obligations and interests
  several

            

    

     

    
      	
              2.1.1  

            	
              Amount

            

    

     

    The
Banks, relying upon each of the representations and warranties in clause 7,
agree, upon and subject to the terms of this Agreement, to make available to the
Borrower for the Availability Period:

     

    
      	
              (a)  

            	
              a
      revolving overdraft facility for the purposes described in clause 1.1.1,
      in an aggregate amount not exceeding at any one time the applicable
      Overdraft Facility Limit, which shall be made available by drawings made
      on the Overdraft Account; and

            

    

     

    
      	
              (b)  

            	
              a
      multi-currency revolving guarantee and letter of credit facility for the
      purposes described in clause 1.1.2, in an amount not exceeding at any one
      time the Guarantee Facility Commitment, which shall be made available by
      the issuing of L/Cs by the Issuing
Bank,

            

    

     

    and the
Banks agree to indemnify and keep indemnified, in their several Percentages (a)
the Account Bank in respect of the Overdraft and the Overdraft Facility and (b)
the Issuing Bank in respect of the L/Cs and the Guarantee Facility.

     

    
      
         

      

      
        16

        
          

        

      

      
         

      

    

    

     

    
      	
              2.1.2  

            	
              Obligations
      several

            

    

     

    The
obligations of the Creditors under this Agreement are several; the failure of
any Creditor to perform such obligations shall not relieve any other Creditor or
the Borrower of any of their respective obligations or liabilities under this
Agreement nor shall any Creditor be responsible for the obligations of any other
Creditor (except for its own obligations, if any, as a Bank, Issuing Bank or
Account Bank) under this Agreement.

     

    
      	
              2.1.3  

            	
              Interests
      several

            

    

     

    Notwithstanding
any other term of this Agreement (but without prejudice to the provisions of
this Agreement relating to or requiring action by the Majority Banks) the
interests of the Creditors are several and the amount due to any Creditor is a
separate and independent debt.  No Creditor however shall have the
right to protect and enforce its rights arising out of this Agreement other than
with the prior written consent of the Majority Banks but, provided such consent
has been obtained, it shall not be necessary for any other Creditor to be joined
as an additional party in any proceedings for this purpose.

     

    
      	
              2.2  

            	
              Terms
      of Overdraft Facility

            

    

     

    
      	
              2.2.1  

            	
              Each
      drawing under the Overdraft Facility may be made only upon receipt by the
      Account Bank of a written request (whether in the form of a cheque or any
      other written (including electronic) form agreed between the Account Bank
      and the Borrower from time to time) by the Borrower from time to time,
      duly signed or otherwise authorised by a person who, in the Account Bank’s
      discretion, is duly authorised by the Borrower to request the debiting of
      the Overdraft Account.

            

    

     

    
      	
              2.2.2  

            	
              Subject
      to the terms and conditions of this Agreement, the Account Bank shall
      advance each drawing in respect of the Overdraft to the Borrower, on the
      date requested by the Borrower in accordance with clause 2.2.1 by (a)
      debiting the amount thereof to the Overdraft Account and (b) paying the
      proceeds thereof in accordance with the Borrower's written
      instructions.

            

    

     

    
      	
              2.2.3  

            	
              Drawings
      under the Overdraft Facility may only be made on a Banking Day falling
      within the Availability Period.

            

    

     

    
      	
              2.2.4  

            	
              The
      Borrower may repay amounts outstanding in respect of the Overdraft at any
      time by placing funds to the credit of the Overdraft
    Account.

            

    

     

    
      	
              2.2.5  

            	
              The
      Overdraft Facility shall be revolving, so that sums repaid in respect of
      the Overdraft may be reborrowed provided always that the Overdraft shall
      never exceed the Overdraft Facility
Limit.

            

    

     

    
      	
              2.2.6  

            	
              No
      drawing on the Overdraft Account is permitted if such drawing would cause
      (a) the Overdraft to exceed the Overdraft Facility Limit or (b) the
      Borrower to be in breach of clause
8.2.1.

            

    

     

    
      	
              2.2.7  

            	
              On
      the Final Maturity Date, the Borrower shall repay the Overdraft in
      full.

            

    

     

    
      	
              2.2.8  

            	
              On
      the last day of the Availability
Period:

            

    

     

    
      	
              (a)  

            	
              the
      Overdraft Facility shall cease to be available and no drawings thereunder
      may be made thereafter; and

            

    

     

    
      	
              (b)  

            	
              the
      Overdraft Facility Limit shall be reduced to
  zero.

            

    

     

    
      
         

      

      
        17

        
          

        

      

      
         

      

    

    
      	
              (c)  

            	
              Without
      prejudice to the Borrowers’ obligations under clause 8.1.3, neither
      the Account Bank nor any Bank shall have any responsibility for the
      application of proceeds of the Overdraft or any part thereof by the
      Borrower.

            

    

     

    
      	
              2.3  

            	
              Terms
      of Guarantee Facility

            

    

     

    
      	
              2.3.1  

            	
              Subject
      to the fulfilment of the conditions precedent contained in clause 9 and
      the conditions contained in clause 2.3.4, the Borrower may request the
      issuance of an L/C by ensuring that the Issuing Bank and the Agent receive
      a completed Issue Request not later than 11.00 a.m. (Piraeus time) two (2)
      Banking Days prior to the intended Issue
Date.

            

    

     

    
      	
              2.3.2  

            	
              The
      Borrower undertakes with the Issuing Bank and each Bank to use each L/C
      only for the purpose stated in clause
1.1.2.

            

    

     

    
      	
              2.3.3  

            	
              The
      Guarantee Facility shall terminate on the last day of the Availability
      Period.

            

    

     

    
      	
              2.3.4  

            	
              The
      conditions referred to in clause 2.3.1 are
that:

            

    

     

    
      	
              (a)  

            	
              an
      Issue Date has to be a Banking Day during the Availability
      Period;

            

    

     

    
      	
              (b)  

            	
              each
      L/C shall be denominated in Dollars or in an Optional
      Currency;

            

    

     

    
      	
              (c)  

            	
              the
      Original Dollar Amount of an L/C shall be not less than $1,000,000 (or
      such other amount as is agreed by the Majority Banks) or such other amount
      as is available in accordance with paragraph
  (d);

            

    

     

    
      	
              (d)  

            	
              the
      total amount of the Outstandings of all Banks and the Outstanding Amount
      of the L/C then to be made shall not exceed the lower
  of:

            

    

     

    
      	
              (i)  

            	
              the
      Guarantee Facility Commitment; and

            

    

     

    
      	
              (ii)  

            	
              such
      amount as shall ensure that the Borrower is in compliance with clause
      8.2.1 and shall remain in compliance with clause 8.2.1 after the issuance
      of the relevant L/C; and

            

    

     

    
      	
              (e)  

            	
              each
      L/C shall specify an Expiry Date and that Expiry Date shall be a date
      falling not later than the Final Maturity
Date.

            

    

     

    
      	
              2.3.5  

            	
              Each
      Issue Request must be signed by a duly authorised signatory of the
      Borrower and, once served, the Issue Request cannot be revoked without the
      prior consent of the Issuing Bank and the Agent (acting on the
      instructions of the Majority
Banks).

            

    

     

    
      	
              2.3.6  

            	
              Subject
      to the provisions of this Agreement, the Issuing Bank shall on the Issue
      Date for an L/C, issue the relevant L/C to the relevant
      Beneficiary.

            

    

     

    
      	
              2.3.7  

            	
              For
      the purposes of (a) the definition of “Actual Exposure” in clause 1.2 and
      (b) clauses 2.3.4(d) and 8.2.1, the Outstanding Amount of each Optional
      Currency L/C and the Original Dollar Amount of any Optional Currency L/C
      shall be multiplied by 110%.

            

    

     

    
      	
              2.4  

            	
              Submission
      of Schedule of Receivables

            

    

     

    If the
Borrower elects to remedy any deficiency notified to it by the Agent pursuant to
clause 8.2.1 by submitting a Schedule of Receivables, the Borrower shall submit
to the Agent, within the time-limit provided for in such clause
8.2.1(b):

     

    
      
         

      

      
        18

        
          

        

      

      
         

      

    

    

     

    
      	
              2.4.1  

            	
              a
      Schedule of Receivables duly executed as a deed by the Borrower and
      setting out details of the Receivables which the Borrower wishes to
      provide to the Security Agent as security under the Receivables Assignment
      for the purposes of clause 8.2.1(b), provided
  that:

            

    

     

    
      	
              (a)  

            	
              no
      more than five per cent (5%) of the aggregate of all such Receivables set
      out in such Schedule of Receivables shall be due from any one Customer
      (except the United States Navy);
and

            

    

     

    
      	
              (b)  

            	
              such
      Receivables shall not have been contained in a Schedule of Receivables
      previously delivered under this
Agreement;

            

    

     

    
      	
              2.4.2  

            	
              in
      respect of each Receivable contained in a Schedule of Receivables
      submitted to the Agent under clause 2.4.1, a copy of the bunkering
      confirmation issued by the Borrower to the relevant Customer together with
      a copy of the Customer’s confirmation of such bunkering confirmation,
      together evidencing the contract entered into between the Borrower and the
      Customer in relation to such Receivable and complying with the following
      requirements:

            

    

     

    
      	
              (a)  

            	
              such
      bunkering confirmation when read together with the relevant Customer’s
      confirmation shall include, whether expressly or by incorporation, all the
      terms of such contract between the Borrower and the
    Customer;

            

    

     

    
      	
              (b)  

            	
              in
      the case of Receivables relating to oil bunkers and/or lubricants supplied
      to the Customer by the Borrower or its employees, such bunkering
      confirmation when read together with the relevant Customer’s confirmation
      shall refer to and incorporate the Borrower’s standard terms and
      conditions;

            

    

     

    
      	
              (c)  

            	
              in
      the case of Receivables relating to oil bunkers and/or lubricants supplied
      to the Customer by any parties other than the Borrower or its employees,
      such bunkering confirmation shall contain the following
      wording:

            

    

     

    “AMP’s standard terms and conditions
to apply, except as regards operational matters at the place of delivery, in
relation to which supplier’s terms and conditions shall
apply”;

     

    
      	
              2.4.3  

            	
              in
      respect of each Receivable contained in a Schedule of Receivables
      submitted to the Agent under clause 2.4.1, a copy of the receipt for the
      oil bunkers and/or lubricants supplied (as relevant) complying with the
      following requirements:

            

    

     

    
      	
              (a)  

            	
              such
      receipt shall have been duly signed by the master or chief engineer on
      behalf of the vessel to which the Borrower has supplied such oil bunkers
      and/or lubricants (as relevant) as evidence of the relevant Customer’s
      irrevocable payment obligations, free from any rights of set-off or other
      deduction;

            

    

     

    
      	
              (b)  

            	
              in
      the case of oil bunkering receipts or lubricant sales receipts issued by
      any parties other than the Borrower or its employees, such receipt
      shall:

            

    

     

    
      	
              (i)  

            	
              contain
      an express acknowledgement to the effect that the relevant third party has
      supplied the relevant Receivables to the Customer for and on behalf of the
      Borrower; and

            

    

     

    
      	
              (ii)  

            	
              set
      out the number of the relevant bunkering confirmation to which such
      receipt relates;

            

    

     

    
      
         

      

      
        19

        
          

        

      

      
         

      

    

    

    
      	
              (c)  

            	
              in
      the case of oil bunkering receipts, such receipt shall be dated no more
      than 45 days before the relevant Issue Date and shall have a payment tenor
      of no more than 30 days;

            

    

     

    
      	
              (d)  

            	
              in
      the case of lubricant sales receipts, such receipt shall be dated no more
      than 60 days before the relevant Issue Date and shall have a payment tenor
      of no more than 60 days;

            

    

     

    
      	
              2.4.4  

            	
              for
      each copy of a receipt delivered under clause 2.4.3, a certificate duly
      signed by an officer of the Borrower, certifying that the copy of the
      relevant receipt is true and up to date;
and

            

    

     

    
      	
              2.4.5  

            	
              for
      each copy of a receipt delivered under clause 2.4.3, a carbon copy of the
      relevant invoice issued to the relevant Customer, complying with the
      following requirements:

            

    

     

    
      	
              (a)  

            	
              in
      the case of oil bunkering invoices, such invoice shall have a payment
      tenor of no more than 30 days as of the date of the relevant receipt;
      and

            

    

     

    
      	
              (b)  

            	
              in
      the case of lubricant sales invoices, such invoice shall have a payment
      tenor of no more than 60 days as of the date of the relevant
      receipt.

            

    

     

    
      	
              2.5  

            	
              Reset
      Date

            

    

     

    Reset
Date shall be each date when the Borrower, after the Agent has served a notice
in accordance with clause 8.2.1 notifying it of a deficiency thereunder, submits
a Schedule of Receivables pursuant to clause 2.4 in order to remedy the relevant
deficiency notified by the Agent.

     

    
      	
              2.6  

            	
              Extension
      of Expiry Date

            

    

     

    The
Borrower may, by notice in writing to the Agent and the Issuing Bank signed by a
duly authorised signatory of the Borrower not later than 11.00 a.m. (Piraeus
time) five (5) Banking Days prior to the Expiry Date of an L/C, request that the
Banks approve the extension of such Expiry Date.  Subject to
compliance with the following conditions:

     

    
      	
              2.6.1  

            	
              the
      extended Expiry Date shall be a date falling not later than the Final
      Maturity Date;

            

    

     

    
      	
              2.6.2  

            	
              no
      Default has occurred and is continuing as at the date on which such
      extension is implemented;

            

    

     

    
      	
              2.6.3  

            	
              the
      representations and warranties in clause 7 and those (if any) in the
      Security Documents would be true and not misleading if repeated on the
      date of the request for extension;
and

            

    

     

    
      	
              2.6.4  

            	
              the
      Agent is satisfied that the test contained in clause 8.2.1 would not then
      or in the future be breached by reason of the requested
      extension,

            

    

     

    the Banks
(acting through the Agent) shall agree to and implement such request by amending
and re-issuing the relevant L/C.

     

    
      
         

      

      
        20

        
          

        

      

      
         

      

    

    

     

    
      	
              2.7  

            	
              Selection
      of Optional Currencies for L/Cs

            

    

     

    
      	
              2.7.1  

            	
              If
      an L/C is to be issued in an Optional Currency, the Borrower shall specify
      such Optional Currency in the relevant Issue Request submitted in
      accordance with clause 2.3.1.

            

    

     

    
      	
              2.7.2  

            	
              If
      the Borrower fails to specify an Optional Currency, it shall be deemed to
      have specified Dollars for the L/C
concerned.

            

    

     

    
      	
              2.8  

            	
              Amount
      of Optional Currencies

            

    

     

    
      	
              2.8.1  

            	
              In
      this clause 2.8, the “Issuing Bank’s spot rate of
      exchange” means the Issuing Bank’s rate of exchange for the
      purchase in the London Foreign Exchange Market of the appropriate amount
      of the relevant Optional Currency with Dollars at or about 11.00 a.m. on,
      as the case may be, each Issue Date on which an Optional Currency L/C is
      to be issued or on which a previously issued Optional Currency L/C remains
      outstanding, the Settlement Date of an Optional Currency L/C and each
      Reset Date or on any other date when compliance with clause 8.2.1 is
      tested by the Agent, as relevant (each an “L/C Valuation
      Date”).

            

    

     

    
      	
              2.8.2  

            	
              On
      each L/C Valuation Date the Agent shall
  determine:

            

    

     

    
      	
              (a)  

            	
              in
      the case of an Issue Date, the Outstanding Amount of each Optional
      Currency L/C then outstanding or to be issued on that L/C Valuation
      Date;

            

    

     

    
      	
              (b)  

            	
              in
      the case of a Settlement Date, the Outstanding Amount of each relevant
      Optional Currency L/C; and

            

    

     

    
      	
              (c)  

            	
              in
      the case of a Reset Date or any other date when compliance with clause
      8.2.1 is tested by the Agent, the Outstanding Amount of each Optional
      Currency L/C then outstanding,

            

    

     

    by
converting the amount of such L/C in the Optional Currency into Dollars on the
basis of the Issuing Bank’s spot rate of exchange.

     

    
      	
              2.8.3  

            	
              The
      Issuing Bank shall promptly notify the Agent and the Agent shall notify
      the Banks and the Borrower of the Issuing Bank’s spot rate of exchange (as
      to which the Issuing

            

    

     

    
      	
              2.8.4  

            	
              Bank’s
      determination shall, in the absence of manifest error, be conclusive on
      the Borrower and the other Creditors) and of the Outstanding Amounts
      hereunder as soon as they are
ascertained.

            

    

     

    
      	
              2.9  

            	
              Reduction
      of L/Cs

            

    

     

    The
Outstanding Amount of an L/C shall not be treated as reduced for the purposes of
this Agreement unless and until:

     

    
      	
              2.9.1  

            	
              the
      Issuing Bank has received a written confirmation from the Beneficiary of
      such L/C of the amount of such reduction;
or

            

    

     

    
      
         

      

      
        21

        
          

        

      

      
         

      

    

    

    
      	
              2.9.2  

            	
              the
      Issuing Bank has notified the Agent and the Agent has notified the
      Borrower in writing that (notwithstanding the absence of a written
      confirmation from the Beneficiary of such L/C) it is satisfied that its
      liability under the L/C has been irrevocably reduced or discharged;
      or

            

    

     

    
      	
              2.9.3  

            	
              the
      amount of the L/C irrevocably and unconditionally reduces in accordance
      with its terms; or

            

    

     

    
      	
              2.9.4  

            	
              the
      expiry date of the L/C elapses and the Issuing Bank has notified the Agent
      and the Agent has notified the Borrower in writing that it is satisfied
      that no claim or demand has been made, or may thereafter be made, under
      the L/C.

            

    

     

    If the
Outstanding Amount of an L/C has been reduced pursuant to this clause 2.9, the
Outstandings of each Bank shall be reduced by such Bank’s Percentage of the
amount of the reduction of the L/C.

     

    
      	
              2.10  

            	
              Settlement
      of L/Cs

            

    

     

    
      	
              2.10.1  

            	
              The
      Issuing Bank shall, immediately after receiving a demand from, or after
      being notified by, a Beneficiary that it is required to make payment under
      an L/C, notify the Agent, and the Agent shall notify the Borrower and the
      Banks that such payment is due and of the Settlement Amount and the
      Settlement Date.

            

    

     

    
      	
              2.10.2  

            	
              The
      Borrower shall immediately after notification from the Agent under clause
      2.10.1 reimburse the Settlement Amount to the Issuing Bank by payment
      forthwith to the Agent for the account of the Issuing Bank on the
      Settlement Date the Settlement Amount in Dollars or, if the relevant L/C
      was issued in an Optional Currency, in such Optional Currency.
      

            

    

     

    
      	
              2.11  

            	
              L/C
      payments

            

    

     

    The
Borrower:

     

    
      	
              2.11.1  

            	
              irrevocably
      authorises the Issuing Bank to make any payment demanded from it pursuant
      to an L/C if that demand is made in accordance with its
    terms;

            

    

     

    
      	
              2.11.2  

            	
              accepts
      that any demand for payment made by the Beneficiary pursuant to an L/C and
      which is made in accordance with its terms shall be conclusive evidence
      that the Issuing Bank was liable to make payment under that L/C and any
      payment which the Issuing Bank makes pursuant to any such demand shall be
      accepted by the Borrower as binding upon the Borrower;
  and

            

    

     

    
      	
              2.11.3  

            	
              acknowledges
      and agrees that the Issuing Bank shall not in any circumstances whatsoever
      be liable to the Borrower in respect of any loss or damage suffered by the
      Borrower by reason of the Issuing Bank making a payment to the Beneficiary
      in connection with any payment demanded under an
  L/C.

            

    

     

    
      
         

      

      
        22

        
          

        

      

      
         

      

    

    
      	
              2.11.4  

            	
              No
      impairment

            

    

     

    The
Borrower shall neither be discharged from any of its liabilities or obligations
under clauses 2.10.2 and 4.1 by, nor have any claim against any Creditor in
respect of:

     

    
      	
              2.11.5  

            	
              any
      misrepresentation or non-disclosure in respect of the affairs or condition
      of a Creditor made to the Borrower by any person;
  or

            

    

     

    
      	
              2.11.6  

            	
              a
      Beneficiary and/or any Creditor releasing or granting any time or any
      indulgence whatsoever or making any settlement, composition or arrangement
      with the Borrower, a Beneficiary, any other Security Party or any other
      person; or

            

    

     

    
      	
              2.11.7  

            	
              a
      Beneficiary and/or any Creditor asserting or pursuing, failing or
      neglecting to assert or pursue, or delaying in asserting or pursuing, or
      waiving, any of their rights or remedies against the Borrower, a
      Beneficiary, any other Security Party or any other person;
    or

            

    

     

    
      	
              2.11.8  

            	
              a
      Beneficiary and/or any Creditor and/or the Borrower, with the consent of
      the Borrower (or with or without the consent of the Borrower in the case
      of any variation agreed between a Beneficiary and the Borrower or the
      person whose obligations are guaranteed thereby), making, whether
      expressly or by conduct, any variation to any L/C;
  or

            

    

     

    
      	
              2.11.9  

            	
              a
      Beneficiary and/or any Creditor and/or the
  Borrower:

            

    

     

    
      	
              (a)  

            	
              taking,
      accepting, varying, dealing with, enforcing, abstaining from enforcing,
      surrendering or releasing any security in relation to a Beneficiary or any
      Creditor or the Borrower or any other person in such manner as it or they
      think fit; or

            

    

     

    
      	
              (b)  

            	
              claiming,
      proving for, accepting or transferring any payment in respect of the
      obligations and liabilities of the Borrower and/or a Beneficiary relative
      to any L/C or under this Agreement in any composition by, or winding up
      of, the Borrower and/or any third party or abstaining from so claiming,
      proving, accepting or transferring;
or

            

    

     

    
      	
              2.11.10  

            	
              any
      assignment or transfer by a Beneficiary of, or any succession to, any of
      its rights relative to any L/C.

            

    

     

    
      	
              2.12  

            	
              Expiry
      Date after the Final Maturity Date

            

    

     

    Without
prejudice to the rights of the Issuing Bank under clauses 2.3.4 and 2.6, if the
Banks in their absolute and unfettered discretion, and following a relevant
request by the Borrower, agree that the Issuing Bank issues an L/C with an
Expiry Date falling later than the Final Maturity Date, or agree to the
extension of the Expiry Date of an existing L/C beyond the Final Maturity Date,
the Borrower undertakes with each Creditor to place funds to the credit of the
Cash Collateral Account in the currency in which the relevant L/C is denominated
and in such amount as determined by the Agent (acting on the instructions of the
Majority Banks in their absolute discretion) (which, in any event, shall be no
less than the Outstanding Amount of the relevant L/C).

     

    
      	
              2.13  

            	
              Payment
      by Banks

            

    

     

    
      	
              2.13.1  

            	
              If
      the Borrower fails to make payment on due date in respect of an L/C in
      accordance with clause 2.10.2 or clause 10.4.2, each Bank shall pay to the
      Agent for the account of the Issuing Bank on demand an amount in the
      currency payable by the Issuing Bank under such L/C equal to such Bank’s
      Percentage of (a) the amount paid by the Issuing Bank under such L/C and
      any interest thereon calculated in accordance with clause 3.3 less (b) any
      amount received by the Issuing Bank from the Borrower in respect of such
      L/C less (c) any amount standing to the credit of the Cash Collateral
      Account in respect of the L/Cs.

            

    

     

    
      
         

      

      
        23

        
          

        

      

      
         

      

    

    
      	
              2.13.2  

            	
              If
      the Borrower fails to repay or prepay any amount of principal in respect
      of the Overdraft on its due date under any provision of this Agreement,
      each Bank shall pay to the Agent for the account of the Account Bank on
      demand an amount in Dollars equal to such Bank’s Percentage of such unpaid
      amount of principal in respect of the Overdraft and any interest thereon
      calculated in accordance with clause 3.2 (but after deducting the Margin
      for such Bank which has not been previously paid to the Account Bank in
      accordance with clause 3.1).

            

    

     

    
      	
              2.14  

            	
              Banks’
      authorisation to Issuing Bank

            

    

     

    The Banks
hereby authorise the Issuing Bank to issue L/Cs under this Agreement and agree
that the Issuing Bank may, with respect to any L/C issued by it, make such
arrangements for advising or confirming the same and administer the same
(including amendments thereto within the terms of clause 2) as the Issuing Bank
thinks fit.

     

    
      	
              2.15  

            	
              Notification
      to Borrower and Banks

            

    

     

    
      	
              2.15.1  

            	
              The
      Issuing Bank shall notify the Agent, and the Agent shall notify the
      Borrower and the Banks, on the last Banking Day of each week, of the
      amount, currency, date of opening and Expiry Date of each L/C issued
      during that week and of the aggregate Outstanding Amount of all
      outstanding L/Cs at the end of such
week.

            

    

     

    
      	
              2.15.2  

            	
              The
      Account Bank shall notify the Agent, and the Agent shall notify the
      Borrower and the Banks, on the last Banking Day of each week, of the
      amount of the Overdraft as at the end of that week and the daily debit
      balances thereof during the week ending on such
  date.

            

    

     

    
      	
              2.15.3  

            	
              The
      notifications of this clause 2.16 may be made in the form of bank account
      statements in respect of the Overdraft Account prepared and sent by the
      Account Bank to the Agent in the manner specified in the terms and
      conditions applicable to the Overdraft Account as agreed between the
      Account Bank, the Agent and the Borrower from time to
  time.

            

    

     

    
      	
              3  

            	
              Interest and Interest
      Periods

            

    

     

    
      	
              3.1  

            	
              Overdraft
      - normal interest rate 

            

    

     

    
      	
              3.1.1  

            	
              The
      Overdraft shall bear interest calculated on a daily basis at the annual
      rate of interest which is conclusively certified by the Account Bank to
      the Agent, and notified by the Agent to the Banks and the Borrower, to be
      the aggregate of (a) the Margin, (b) the Mandatory Cost (if any) of the
      Account Bank and (c) LIBOR applicable to each of the relevant days, and
      such interest shall be payable quarterly on the twentieth (20th) day of
      March, June, September and December of each calendar year (or on such
      other date or dates as the Account Bank may notify to the Agent and the
      Agent notified to the Banks and the Borrower from time to time) up to the
      Final Maturity Date and on the Final Maturity
  Date.

            

    

     

    
      	
              3.1.2  

            	
              Interest
      payments due on the Overdraft shall be made by way of debit to the
      Overdraft Account (at the Account Bank’s discretion) provided that such
      debit shall not cause the Overdraft (which for these purposes shall
      include any amount in respect of which the Borrower has made a drawing
      request pursuant to clause 2.2) to exceed the applicable Overdraft
      Facility Limit.  If interest payments due hereunder are not
      debited to the Overdraft Account as permitted by the preceding sentence,
      the Borrower shall pay the amount thereof to the Agent (for the account of
      the Account Bank) in cash on the due
date.

            

    

     

    
      
         

      

      
        24

        
          

        

      

      
         

      

    

    

    
      	
              3.1.3  

            	
              The
      Account Bank shall advise the Agent, and the Agent shall advise the Banks
      and the Borrower, of the interest rates applied to the Overdraft by
      including such information in the bank account statements in respect of
      the Overdraft Account referred to, and sent to the Agent at the times
      specified in, clause 2.16.2.

            

    

     

    
      	
              3.2  

            	
              Overdraft
      - interest before demand

            

    

     

    If the
Borrower shall be obliged to pay to the Account Bank any amounts of principal or
interest in respect of the Overdraft pursuant to clauses 2.2 or 3.1.1 but shall
fail to do so, it shall pay to the Agent for the account of the Account Bank
interest on that amount from the due date to the date of payment by the Borrower
hereunder or the date on which the Agent makes a demand on the Banks pursuant to
clause 2.14.2 (whichever shall be earlier) at a rate per annum (as determined by
the Agent) equal to the aggregate of (a) the Margin, (b) the Account Bank’s cost
of funding such amount (expressed as a percentage of such amount) and (c)
Mandatory Cost (if any) of the Account Bank.  If any amount remains
unpaid after demand has been made on the Banks, clause 3.4 shall
apply.

     

    
      	
              3.3  

            	
              Guarantee
      Facility - interest before demand

            

    

     

    If the
Borrower shall be obliged to reimburse the Issuing Bank for a Settlement Amount
on the relevant Settlement Date pursuant to clause 2.10.2 but shall fail to do
so, it shall pay to the Agent for the account of the Issuing Bank interest on
that Settlement Amount from the relevant Settlement Date to the date the Issuing
Bank is reimbursed by the Borrower hereunder on the date on which the Agent
makes demand on the Banks pursuant to clause 2.14.1 (whichever shall be earlier)
at a rate per annum (as determined by the Agent) equal to the Issuing Bank’s
cost of funding such amount (expressed as a percentage of such
amount).  If any amount remains unpaid after demand has been made on
the Banks, clause 3.4 shall apply.

     

    
      	
              3.4  

            	
              Default
      interest 

            

    

     

    If the
Borrower fails to pay any sum (including, without limitation, any sum payable
pursuant to this clause , on its due date for payment under any of the
Security Documents, the Borrower shall pay interest on such sum on demand from
the due date up to the date of actual payment (as well after as before judgment)
at a rate determined by the Agent pursuant to this clause .  The
period beginning on such due date and ending on such date of payment shall be
divided into successive periods of not more than six (6) months as selected by
the Agent, each of which (other than the first, which shall commence on such due
date) shall commence on the last day of the preceding such
period.  The rate of interest applicable to each such period shall be
the aggregate (as determined by the Agent) of (a) two per cent (2%) per annum,
(b) the Margin (only in respect of sums due under the Overdraft Facility), (c)
LIBOR for such period or, for any amounts denominated in euros, EURIBOR for such
period and (d) the Mandatory Cost (if any) of the Account Bank in respect of the
Overdraft.  Such interest shall be due and payable on the last day of
each such period as determined by the Agent and each such day shall, for the
purposes of this Agreement, be treated as an Interest Payment Date and interest
shall be payable on such principal sum during such period at a rate of two per
cent (2%) above the rate applicable thereto immediately before it shall have
become so due and payable.  If, for the reasons specified in
clause 3.6.1 (and as if references to the Account Bank in clause 3.6.1(c)
included references to that Bank), the Agent is unable to determine a rate in
accordance with the foregoing provisions of this clause , each Bank shall
promptly notify the Agent of the cost of funds to such Bank and interest on any
sum not paid on its due date for payment shall be calculated for each Bank at a
rate determined by the Agent to be two per cent (2%) per annum above the
aggregate of the Margin (only in respect of sums due under the Overdraft
Facility) and the cost of funds to such Bank.

     

    
      	
              3.5  

            	
              Notification
      of Interest Periods and interest
rate

            

    

     

    The Agent
shall notify the Borrower, the Banks, the Issuing Bank and the Account Bank
promptly of the duration of each Interest period and of each rate of interest
(or, as the case may be default interest) determined by it under this
clause 3.

     

    
      
         

      

      
        25

        
          

        

      

      
         

      

    

    Market
disruption; non-availability

     

    
      	
              3.6  

            	
              If
      and whenever, at any time prior to the commencement of any Interest
      Period:

            

    

     

    
      	
              (a)  

            	
              the
      Agent shall have determined (which determination shall, in the absence of
      manifest error, be conclusive) that adequate and fair means do not exist
      for ascertaining LIBOR or (as the case may be) EURIBOR during such
      Interest Period; or

            

    

     

    
      	
              (b)  

            	
              where
      applicable, only one or none of the Reference Banks supplies the Agent
      with a quotation for the purpose of calculating LIBOR or (as the case may
      be) EURIBOR; or

            

    

     

    
      	
              (c)  

            	
              the
      Agent shall have received notification from the Account Bank that deposits
      in Dollars are not available to the Account Bank in the London Interbank
      Market in the ordinary course of business in sufficient amounts to fund
      the Overdraft or part thereof for such Interest
  Period,

            

    

     

    the Agent
shall forthwith give notice (a “Determination Notice”) thereof
to the Borrower, the Account Bank, the Issuing Bank and to each of the
Banks.  A Determination Notice shall contain particulars of the
relevant circumstances giving rise to its issue.  After the giving of
any Determination Notice the undrawn amount of the Overdraft Facility shall not
be borrowed and no further L/C shall be issued, until notice to the contrary is
given to the Borrower and the other Creditors by the Agent.

     

    
      	
              3.6.2  

            	
              During
      the period of ten (10) days after any Determination Notice has been given
      by the Agent under clause .1, the Account Bank shall certify an
      alternative basis (the “Alternative Basis”) for
      maintaining the Overdraft.  The Alternative Basis may at the
      Account Bank’s sole and unfettered discretion (without limitation) include
      alternative interest periods, alternative currencies or alternative rates
      of interest but shall include a margin above the cost of funds to the
      Account Bank equivalent to the Margin.  The Agent shall certify
      the Alternative Basis to the Borrower, the Banks and the Account
      Bank.  The Alternative Basis so certified shall be binding upon
      the Borrower and shall take effect in accordance with its terms from the
      date specified in the Determination Notice until such time as the Agent
      notifies the Borrower that none of the circumstances specified in
      clause .1 continues to exist whereupon the normal interest rate
      fixing provisions of this Agreement shall
apply.

            

    

     

    
      	
              3.7  

            	
              Reference
      Bank quotations

            

    

     

    If any
Reference Bank is unable or otherwise fails to furnish a quotation for the
purposes of calculating LIBOR or (as the case may be) EURIBOR the interest rate
shall be determined, subject to clause 3.6, on the basis of quotations furnished
by the other Reference Banks.

     

    
      	
              4  

            	
              Indemnities;
      cancellations; pre-payments on Total
Loss

            

    

     

    
      	
              4.1  

            	
              Borrower's
      indemnity

            

    

     

    The
Borrower undertakes:

     

    
      	
              (a)  

            	
              to
      pay to the Agent (for the account of the Issuing Bank) upon demand by the
      Agent an amount equal to each amount and in the same currency as demanded
      from or paid by the Issuing Bank under any L/C and not otherwise fully
      paid or repaid by the Borrower under this
  Agreement;

            

    

     

    
      	
              (b)  

            	
              to
      pay to the Agent (for the account of the Account Bank) upon demand by the
      Agent an amount equal to each amount and in the same currency made
      available by the Account Bank to the Borrower under the Overdraft and not
      fully repaid by the Borrower at the time when it falls due under this
      Agreement;

            

    

     

    
      
         

      

      
        26

        
          

        

      

      
         

      

    

    
      	
              (c)  

            	
              to
      pay to the Agent (for the account of the Banks rateably in accordance with
      their respective Percentages) upon demand by the Agent an amount equal to
      each amount paid by the Banks under any of clauses 2.14, 4.2.1 and 4.2.2
      and any part of the Margin which has not been paid by the Borrower to the
      Account Bank when due under this Agreement;
and

            

    

     

    
      	
              (d)  

            	
              to
      indemnify the Issuing Bank, the Account Bank and the Banks and each of
      them severally on demand against all actions, claims, demands,
      liabilities, costs, losses, damages and expenses of whatsoever nature and
      howsoever incurred or any penalty or other expenditure which may result or
      which the Issuing Bank or any Bank may incur, suffer or sustain in
      connection with or arising in any way whatsoever out of this Agreement or
      the Overdraft or the issuing of the
L/Cs.

            

    

     

    
      	
              4.1.2  

            	
              The
      Issuing Bank and each Bank shall be entitled to pay immediately any amount
      for which a demand or request has been made at any time under any L/C
      without any reference to or further authority from the Borrower and
      neither the Agent, the Issuing Bank nor any Bank shall be under any duty
      to investigate or enquire whether any claim or demand on the Issuing Bank
      or any Bank shall have been properly made notwithstanding that the
      Borrower may dispute the validity of such claim or demand.  The
      liabilities of the Borrower under this Agreement shall be in no way
      prejudiced, affected or diminished by the fact that the Issuing Bank or
      any Bank was or might have been justified in refusing payment of any
      amount claimed or demanded.

            

    

     

    
      	
              4.2  

            	
              Banks'
      indemnities

            

    

     

    
      	
              4.2.1  

            	
              Each
      Bank severally undertakes that it will upon demand by the Agent indemnify
      the Issuing Bank in an amount equal to such Bank's Percentage of any
      amount payable by the Borrower to or for the account of the Issuing Bank
      pursuant to this Agreement but unpaid (save that in respect of any such
      amount which is described in clause 2.14.1, the indemnity of that clause
      2.14.1 prevails over the indemnity of this clause 4.2.1).  Each
      Bank undertakes to pay to the Agent (for the account of the Issuing Bank)
      interest upon any amounts payable by such Bank pursuant to this clause
      4.2.1 from the date of demand in relation to any sum demanded of such Bank
      pursuant to this clause 4.2.1 to the date of actual payment by such
      Bank at a rate equal to the Issuing Bank's cost of funding such amount
      (expressed as a percentage of such amount).  Such interest shall
      be payable from time to time on demand by the
  Agent.

            

    

     

    
      	
              4.2.2  

            	
              Each
      Bank severally undertakes that it will upon demand by the Agent indemnify
      the Account Bank in an amount equal to such Bank's Percentage of any
      amount payable by the Borrower to or for the account of the Account Bank
      pursuant to this Agreement but unpaid (save that in respect of any such
      amount which is described in clause 2.14.2, the indemnity of that clause
      2.14.2 prevails over the indemnity of this clause 4.2.2). Each Bank
      undertakes to pay to the Agent (for the account of the Account Bank)
      interest upon any amounts payable by such Bank pursuant to this clause
      4.2.2 from the date of demand in relation to any sum demanded of such Bank
      pursuant to this clause 4.2.2 to the date of actual payment by such
      Bank at a rate equal to the Account Bank's cost of funding such amount
      (expressed as a percentage of such amount).  Such interest shall
      be payable from time to time on demand by the
  Agent.

            

    

     

    
      	
              4.2.3  

            	
              The
      Issuing Bank shall be entitled to pay immediately any amount for which a
      demand or request has been made at any time under any L/C, without any
      reference to or further authority from the Banks and, subject as provided
      in clause 4.2.4, the Issuing Bank shall not be under any duty to
      investigate or enquire whether any claim or demand on the Issuing Bank
      shall have been properly made notwithstanding that a Bank may dispute the
      validity of such claim or demand.  Subject as provided in clause
      4.2.4, the liabilities of each Bank under this Agreement shall be in no
      way prejudiced, affected or diminished by the fact that the Issuing Bank
      was or might have been justified in refusing payment of any amount claimed
      or demanded.

            

    

     

    
      
         

      

      
        27

        
          

        

      

      
         

      

    

    
      	
              4.2.4  

            	
              The
      Banks shall not be liable to indemnify the Issuing Bank in respect of any
      losses, damages, costs or expenses suffered or incurred by the Issuing
      Bank by reason of the Issuing Bank failing to examine documents presented
      under an L/C with reasonable care to ascertain that they appear on their
      face to be in accordance with the terms and conditions of such
      L/C.

            

    

     

    
      	
              4.2.5  

            	
              If
      any Bank fails to make any payment to the Agent for the account of the
      Issuing Bank pursuant to clauses 2.14 or 4.2 on the due date (for the
      purposes of this clause 4.2.5, any such unpaid amount, an “overdue amount”) then
      until such Bank's failure has been remedied in full, the Issuing Bank
      shall be entitled to (a) in respect of any overdue amount, the benefit of
      such Bank's share of the Borrower's indemnity under clause 4.1 and the
      benefit of all security then existing or thereafter created to secure the
      obligations of the Borrower under this Agreement to which such Bank would
      have been entitled had it performed its obligations in full as aforesaid,
      (b) such Bank's rights to letter of credit commissions under this
      Agreement in respect of the L/C in respect of which it has failed to
      perform its obligations and (c) such Bank's Percentage as corresponds to
      each overdue amount for the purpose of determining the Majority
      Banks.  The rights conferred upon the Issuing Bank by this
      clause 4.2.5 shall be in addition and without prejudice to its other
      rights against such Bank under this
  clause 4.2.

            

    

     

    
      	
              4.2.6  

            	
              If
      any Bank fails to make any payment to the Agent for the account of the
      Account Bank pursuant to clauses 2.14 or 4.2 on the due date (for the
      purposes of this clause 4.2.6, any such unpaid amount, an “overdue amount”) then
      until such Bank's failure has been remedied in full, the Account Bank
      shall be entitled to (a) in respect of any overdue amount, the benefit of
      such Bank's share of the Borrower's indemnity under clause 4.1 and the
      benefit of all security then existing or thereafter created to secure the
      obligations of the Borrower under this Agreement to which such Bank would
      have been entitled had it performed its obligations in full as aforesaid,
      (b) such Bank’s right to the Margin in respect of the part of the
      Overdraft in respect of which it has failed to perform its obligations and
      (c) such Bank's Percentage as corresponds to each overdue amount for the
      purpose of determining the Majority Banks.  The rights conferred
      upon the Account Bank by this clause 4.2.6 shall be in addition and
      without prejudice to its other rights against such Bank under this
      clause 4.2.

            

    

     

    
      	
              4.3  

            	
              Prepayments,
      reductions and cash-collateralisations on Total
  Loss

            

    

     

    
      	
              4.3.1  

            	
              Before
      utilisation

            

    

     

    On a Ship
becoming a Total Loss or suffering damage or being involved in an incident
which, in the opinion of the Agent, may result in that Ship being subsequently
determined to be a Total Loss, before any drawing is made under this Agreement
or any L/C is issued, the Overdraft Facility Limit and the Guarantee Facility
Commitment will be reduced by such amount as the Agent (acting on the
instructions of the Majority Banks in their absolute discretion) may
require.

     

    
      	
              4.3.2  

            	
              After
      utilisation

            

    

     

    If a
Mortgaged Ship becomes a Total Loss after any drawing is made or L/C issued
under this Agreement,
then:

     

    
      	
              (a)  

            	
              forthwith
      after the occurrence of such Total Loss, the Overdraft Facility Limit and
      the Guarantee Facility Commitment shall be reduced by such amounts as the
      Agent (acting on the instructions of the Majority Banks in their absolute
      discretion) may require; and

            

    

     

    
      	
              (b)  

            	
              forthwith
      following the Agent’s request, the Borrower shall repay such part of the
      Overdraft, and shall place funds to the credit of the Cash Collateral
      Account in such amount and in such currency, as the Agent (acting on the
      instructions of the Majority Banks in their absolute discretion) may
      require.

            

    

     

    
      
         

      

      
        28

        
          

        

      

      
         

      

    

    
      	
              4.3.3
       

            	
              Interpretation

            

    

     

    For the
purpose of this Agreement, a Total Loss in respect of a Ship shall be deemed to
have occurred:

     

    
      	
              (a)  

            	
              in
      the case of an actual total loss of a Ship, on the actual date and at the
      time such Ship was lost or, if such date is not known, on the date on
      which such Ship was last reported;

            

    

     

    
      	
              (b)  

            	
              in
      the case of a constructive total loss of a Ship, upon the date and at the
      time notice of abandonment of such Ship is given to the insurers of such
      Ship for the time being;

            

    

     

    
      	
              (c)  

            	
              in
      the case of a compromised or arranged total loss of a Ship, on the date
      upon which a binding agreement as to such compromised or arranged total
      loss has been entered into by the insurers of such
  Ship;

            

    

     

    
      	
              (d)  

            	
              in
      the case of Compulsory Acquisition of such Ship, on the date upon which
      the relevant requisition of title or other compulsory acquisition occurs;
      and

            

    

     

    
      	
              (e)  

            	
              in
      the case of hijacking, theft, condemnation, capture, seizure, arrest,
      detention or confiscation of a Ship (other than where the same amounts to
      Compulsory Acquisition of such Ship) by any Government Entity, or by
      persons purporting to act on behalf of any Government Entity, which
      deprives the relevant Owner of the use of such Ship for more than thirty
      (30) days, upon the expiry of the period of thirty (30) days after the
      date upon which the relevant hijacking, theft, condemnation, capture,
      seizure, arrest, detention or confiscation
  occurred.

            

    

     

    
      	
              5  

            	
              Fees,
      commissions and expenses

            

    

     

    
      	
              5.1  

            	
              Fees

            

    

     

    The
Borrower shall pay to the Agent:

     

    
      	
               
      5.1.1  

            	
              for
      the account of the Arranger (and for sharing and distribution between the
      Arranger and the Banks in such manner as has been separately agreed
      between them), on the date of this Agreement, an arrangement fee in the
      amount of $450,000;

            

    

     

    
      	
               
      5.1.2  

            	
              for
      the account of the Agent, on the date of this Agreement and at twelve (12)
      monthly intervals thereafter until all moneys owing under the Security
      Documents have been repaid in full, an annual agency and administration
      fee in the amount of $50,000 per
annum;

            

    

     

    
      	
              5.1.3  

            	
              for
      the account of the Banks pro rata in accordance with their Percentages, on
      each of the dates falling at three (3) monthly intervals after the date of
      this Agreement until the last day of the Availability Period, and on such
      day, commitment commission computed from the date of this Agreement (in
      the case of the first payment of commission) and from the due date of the
      preceding payment of commission (in the case of each subsequent payment)
      at the rate of zero point two five per cent (0.25%) per annum on (a) the
      daily undrawn amount of the Overdraft Facility Limit and (b) the daily
      balance of the unutilised Guarantee Facility
  Commitment;

            

    

     

    
      	
              5.1.4  

            	
              for
      the account of the Banks pro rata in accordance with their Percentages, in
      respect of each L/C, on the last day of each calendar month up to the
      Expiry Date of such L/C and on the Expiry Date of such L/C, letter of
      credit commission on the daily Outstanding Amount of such L/C, computed in
      respect of that L/C from its Issue Date (in the case of the first payment
      of commission) and from the due date of the preceding payment of
      commission (in the case of each subsequent payment) at the following
      respective rates in respect of each type of
L/C:

            

    

     

    
      	
              (a)  

            	
              in
      respect of Documentary L/Cs, zero point two five per cent (0.25%) per
      annum;

            

    

     

    
      
         

      

      
        29

        
          

        

      

      
         

      

    

    
      	
              (b)  

            	
              in
      respect of Transaction Related Standby L/Cs, zero point six two five per
      cent (0.625%) per annum; and

            

    

     

    
      	
              (c)  

            	
              in
      respect of Direct Credit Substitutes, one point two five per cent (1.25%)
      per annum; and

            

    

     

    
      	
              5.1.3  

            	
              for
      an account of the Issuing Bank, on the Issue Date for an L/C, a processing
      fee of $500 in respect of each L/C so issued on such
  date.

            

    

     

    The fees
and the commissions referred to in this clause 5.1 shall be payable by the
Borrower whether or not any drawing is ever made under the Overdraft Facility
or, except in the case of clauses 5.1.4 and 5.1.5, any L/C is ever
issued.  All monies payable pursuant to this clause are
non-refundable.

     

    
      	
              5.2  

            	
              Expenses

            

    

     

    The
Borrower shall pay to the Agent on a full indemnity basis on demand all expenses
(including legal, printing and out-of-pocket expenses) incurred by any
Creditor:

     

    
      	
              5.2.1  

            	
              in
      connection with the negotiation, preparation, execution and, where
      relevant, registration of the Security Documents and of any amendment or
      extension of or the granting of any waiver or consent under, any of the
      Security Documents; and

            

    

     

    
      	
              5.2.2  

            	
              in
      contemplation of, or otherwise in connection with, the enforcement of, or
      preservation of any rights under, any of the Security Documents, or
      otherwise in respect of the moneys owing under any of the Security
      Documents

            

    

     

    together
with interest at the rate referred to in clause  from the date on which
such expenses were incurred, in each case to the date of payment (as well after
as before judgment).

     

    
      	
              5.3  

            	
              Value
      added tax

            

    

     

    All fees,
commissions and expenses payable pursuant to this clause 5 shall be paid
together with value added tax or any similar tax (if any) properly chargeable
thereon.  Any value added tax chargeable in respect of any services
supplied by any of the Creditors under this Agreement shall, on delivery of the
value added tax invoice, be paid in addition to any sum agreed to be paid
hereunder.

     

    
      	
              5.4  

            	
              Stamp
      and other duties

            

    

     

    The
Borrower shall pay all stamp, documentary, registration or other like duties or
taxes (including any duties or taxes payable by any of the Creditors) imposed on
or in connection with any of the Security Documents, the Underlying Documents,
the Overdraft, the L/Cs or any amount owing pursuant to clauses 2.10.2 or 4.1.1
and shall indemnify the Creditors against any liability arising by reason of any
delay or omission by the Borrower to pay such duties or taxes.

     

    
      	
              5.5  

            	
              Distribution
      of Margin

            

    

     

    On
receipt by the Account Bank from the Borrower (whether by debiting of the
Overdraft Account or otherwise) of the portion of each interest payment on the
Overdraft equivalent to the Margin (whether on its due date or otherwise), the
Account Bank shall pay such amounts to the Agent for the account of the Banks
rateably in accordance with their Percentages.

     

    
      
         

      

      
        30

        
          

        

      

      
         

      

    

    

     

    
      	
              6  

            	
              Payments
      and taxes; accounts and
calculations

            

    

     

    
      	
              6.1  

            	
              No
      set-off or counterclaim

            

    

     

    The
Borrower acknowledges that in performing their obligations under this Agreement
the Banks will be incurring liabilities to third parties in relation to the
funding of amounts to the Borrower, such liabilities matching the liabilities of
the Borrower to the Banks and that it is reasonable for the Banks to be entitled
to receive payments from the Borrower gross on the due date in order that the
Banks are put in a position to perform their matching obligations to the
relevant third parties. All payments to be made by the Borrower under any of the
Security Documents shall be made in full, without any set-off or counterclaim
whatsoever and, subject as provided in clause , free and clear of any
deductions or withholdings, in Dollars or the relevant Optional Currency in
which they are denominated (except for changes or expenses which shall be paid
in the currency in which they are incurred) on the due date (for value on the
day on which payment is due) and, except in respect of repayments of principal
under, and payments of interest on, the Overdraft which shall be payable to the
Overdraft Account (or otherwise to such account of the Account Bank as it may
advise the Borrower in writing) shall be made to the account of the Agent as
follows:

     

    
      	
              6.1.1  

            	
              if
      in Dollars:

            

    

     

    
      	
              (a)  

            	
              by
      not later than 11.00 a.m. (New York time) on the due
  date;

            

    

     

    
      	
              (b)  

            	
              in
      same day Dollar funds settled through the New York Clearing House
      Interbank Payments System (or in such other Dollar funds and/or settled in
      such other manner as the Agent shall specify as being customary at the
      time for the settlement of international transactions of the type
      contemplated by this Agreement);
and

            

    

     

    
      	
              (c)  

            	
              to
      the account of the Agent at American Express Bank Limited, 23rd Floor,
      American Express Tower, 200 Vesey Street, New York, NY 10285-2300, U.S.A.
      (Account No 000261123), or to such other account with such other bank as
      the Agent may from time to time notify to the
  Borrower;

            

    

     

    
      	
              6.1.2  

            	
              if
      in an Optional Currency (other than euros and
  Sterling):

            

    

     

    
      	
              (a)  

            	
              by
      not later than 11.00 a.m. local time in the place for payment (or such
      other time as may be required law or practice for the settlement of
      foreign exchange transactions in the place of payment) on the due date;
      and

            

    

     

    
      	
              (b)  

            	
              in
      lawful money of the country of that currency which is freely transferable
      and convertible into Dollars and in immediately available funds to the
      account of such bank in such place in the country of that currency as the
      Agent shall from time to time notify to the
  Borrower;

            

    

     

    
      	
              6.1.3  

            	
              if
      in Sterling:

            

    

     

    
      	
              (a)  

            	
              by
      not later than 11.00 a.m. (London time) on the due
  date;

            

    

     

    
      	
              (b)  

            	
              in
      immediately available funds; and

            

    

     

    
      	
              (c)  

            	
              to
      such account of the Agent with such bank as the Agent shall from time to
      time notify to the Borrower; and

            

    

     

    
      
         

      

      
        31

        
          

        

      

      
         

      

    

    

    
      	
              6.1.4  

            	
              if
      in euros:

            

    

     

    
      	
              (a)  

            	
              by
      not later than 11.00 a.m. (Greek time) on the due
  date;

            

    

     

    
      	
              (b)  

            	
              in
      immediately available funds; and

            

    

     

    
      	
              (c)  

            	
              to
      such account of the Agent with such bank as the Agent shall from time to
      time notify to the Borrower.

            

    

     

    Save for
all payments of principal and interest under the Overdraft Facility (excluding
the Margin to which clause 5.4 shall apply) which shall be for the account of
the Account Bank and save as otherwise provided in this Agreement or any
relevant Security Documents, such payments shall be for the account of all the
Banks and the Agent shall forthwith distribute such payments in like funds as
are received by the Agent to the Banks rateably in accordance with their
respective Percentage.

     

    
      	
              6.2  

            	
              Payment
      by the Account Bank and the Banks

            

    

     

    
      	
              6.2.1  

            	
              All
      sums to be made available to the Borrower under this Agreement in respect
      of the Overdraft shall be paid in Dollars in accordance with the
      Borrower’s instructions pursuant to clause
2.2.1

            

    

     

    
      	
              6.2.2  

            	
              All
      payments to be made by a Bank to or for the account of the Issuing Bank or
      the Agent or the Account Bank under this Agreement shall be made in full,
      without any set-off or counterclaim whatsoever and, subject as provided in
      clause 6.6.2, free and clear of any deductions or withholdings, in Dollars
      (if the relevant payment is due in Dollars) or in the relevant Optional
      Currency (if the relevant payment is due in an Optional Currency) on the
      due date to the account of the Agent at such bank as the Agent may from
      time to time specify for this purpose and, in the case of payments for the
      account of the Issuing Bank or the Account Bank, shall be paid by the
      Agent on such date in like funds as are received by the Agent to the
      Issuing Bank or the Account Bank.

            

    

     

    
      	
              6.3  

            	
              Non-Banking
      Days

            

    

     

    When any
payment under any of the Security Documents would otherwise be due on a day
which is not a Banking Day, the due date for payment shall be extended to the
next following Banking Day unless such Banking Day falls in the next calendar
month in which case payment shall be made on the immediately preceding Banking
Day.

     

    
      	
              6.4  

            	
              Calculations

            

    

     

    All
interest and other payments of an annual nature under any of the Security
Documents shall accrue from day to day and be calculated on the basis of actual
days elapsed and:

     

    
      	
              (a)  

            	
              in
      the case of payments denominated in Dollars or an Optional Currency other
      than Sterling or Hong Kong Dollars, on the basis of a three hundred and
      sixty (360) day year; or

            

    

     

    
      	
              (b)  

            	
              in
      the case of payments denominated in Sterling or Hong Kong Dollars, on the
      basis of a three hundred and sixty five (365) day
  year.

            

    

     

    
      
         

      

      
        32

        
          

        

      

      
         

      

    

    

    
      	
              6.5  

            	
              Certificates
      conclusive

            

    

     

    Any
certificate or determination of the Agent or the Issuing Bank or the Account
Bank as to any rate of interest or any other amount pursuant to and for the
purposes of any of the Security Documents shall, in the absence of manifest
error, be conclusive and binding on the Borrower.

     

    
      	
              6.6  

            	
              Grossing-up
      for Taxes 

            

    

     

    
      	
              6.6.1  

            	
              If
      at any time the Borrower is required to make any deduction or withholding
      in respect of Taxes from any payment due under any of the Security
      Documents for the account of any Creditor or if the Agent or the Security
      Agent is required to make any deduction or withholding from a payment to
      another Creditor or withholding in respect of Taxes from any payment due
      under any of the Security Documents, the sum due from the Borrower in
      respect of such payment shall be increased to the extent necessary to
      ensure that, after the making of such deduction or withholding, the
      relevant Creditor receives on the due date for such payment (and retains,
      free from any liability in respect of such deduction or withholding), a
      net sum equal to the sum which it would have received had no such
      deduction or withholding been required to be made and the Borrower shall
      indemnify each Creditor against any losses or costs incurred by it by
      reason of any failure of the Borrower to make any such deduction or
      withholding or by reason of any increased payment not being made on the
      due date for such payment.  The Borrower shall promptly deliver
      to the Agent any receipts, certificates or other proof evidencing the
      amounts (if any) paid or payable in respect of any deduction or
      withholding as aforesaid.

            

    

     

    
      	
              6.6.2  

            	
              If
      at any time any Bank is required to make any deduction or withholding in
      respect of Taxes from any payment due under this Agreement for the account
      of the Agent or the Issuing Bank or the Account Bank, the sum due from
      such Bank in respect of such payment shall be increased to the extent
      necessary to ensure that, after the making of such deduction or
      withholding, the Agent, the Issuing Bank or the Account Bank (as the case
      may be) receives on the due date for such payment (and retains free from
      any liability in respect of such deduction or withholding) a net sum equal
      to the sum which it would have received had no such deduction or
      withholding been required to be made and each Bank shall indemnify the
      Agent, the Issuing Bank or the Account Bank against any losses or costs
      incurred by either of them by reason of any failure of such Bank to make
      any such deduction or withholding or by reason of any increased payment
      not being made on the due date for such
payment.

            

    

     

    
      	
              6.7  

            	
              Loan
      account

            

    

     

    Each of
the Banks, the Issuing Bank and the Account Bank shall maintain, in accordance
with its usual practice, an account or accounts evidencing the amounts from time
to time lent by, owing to and paid to it under the Security
Documents.  Each of the Agent and the Security Agent shall maintain a
control account (which shall be the “account current” referred to
in each Mortgage which shall be in statutory form), showing the Overdraft, any
amounts owing under clauses 2.10.2 or 4.1.1, the Outstandings of all the Banks
and other sums owing to the Banks, the Issuing Bank and the Account Bank under
the Security Documents and all payments in respect thereof made from time to
time. Each such control account shall, in the absence of manifest error, be
conclusive as to the amount from time to time owing by the Borrower under the
Security Documents.

     

    
      
         

      

      
        33

        
          

        

      

      
         

      

    

    

     

    
      	
              6.8  

            	
              Agent
      may assume receipt

            

    

     

    Where any
sum is to be paid under any of the Security Documents to the Agent, the Account
Bank or, as the case may be, the Security Agent for the account of another
person, the Agent, the Account Bank or, as the case may be, the Security Agent
may assume that the payment will be made when due and the Agent, the Account
Bank or, as the case may be, the Security Agent may (but shall not be obliged
to) make such sum available to the person so entitled.  If it proves
to be the case that such payment was not made to the Agent, the Account Bank or,
as the case may be, the Security Agent, then the person to whom such sum was so
made available shall on request refund such sum to the Agent, the Account Bank
or, as the case may be, the Security Agent together with interest thereon
sufficient to compensate the Agent, the Account Bank or, as the case may be, the
Security Agent for the cost of making available such sum up to the date of such
repayment and the person by whom such sum was payable shall indemnify the Agent,
the Account Bank or, as the case may be, the Security Agent for any and all loss
or expense which the Agent, the Account Bank or, as the case may be, the
Security Agent may sustain or incur as a consequence of such sum not having been
paid on its due date.

     

    
      	
              6.9  

            	
              Partial
      payments

            

    

     

    If, on
any date on which a payment is due to be made by the Borrower under any of the
Security Documents, the amount received by the Agent or the Account Bank from
the Borrower falls short of the total amount of the payment due to be made by
the Borrower on such date then, without prejudice to any rights or remedies
available to the Creditors or any of them under any of the Security Documents,
then, in the case of moneys received by the Account Bank, in the Overdraft
Account, it may, if requested by the Agent (acting on the instructions of the
Majority Banks) pay such funds to the Agent and, in any such case the Agent
shall apply the amount actually received from the Borrower in or towards
discharge of the obligations of the Borrower under the Security Documents in the
following order, notwithstanding any appropriation made, or purported to be
made, by the Borrower:

     

    
      	
              6.9.1  

            	
              firstly,
      in or towards payment, on a pro rata basis, of any unpaid costs and
      expenses of the Creditors or any of them under any of the Security
      Documents;

            

    

     

    
      	
              6.9.2  

            	
              secondly,
      in or towards payment, on a pro rata basis, of any fees payable to the
      Arranger, the Agent, the Issuing Bank, the Account Bank or any other
      Creditor under, or in relation to, the Security Documents which remain
      unpaid;

            

    

     

    
      	
              6.9.3  

            	
              thirdly,
      in or towards payment to the Banks, on a pro rata basis, of any accrued
      commissions payable under clause 5.1 which shall have become due but
      remain unpaid;

            

    

     

    
      	
              6.9.4  

            	
              fourthly,
      in or towards payment to the Banks, the Issuing Bank and the Account Bank,
      on a pro rata basis, of any accrued interest which shall have become due
      under any of the Security Documents but remains unpaid (including any part
      of the Margin payable by the Account Bank to the Agent for the account of
      the Banks under clause 5.5);

            

    

     

    
      	
              6.9.5  

            	
              fifthly,
      in or towards payment to the Banks, the Issuing Bank and the Account Bank,
      on a pro rata basis, of any amounts of principal in respect of the
      Overdraft or owing under clauses 2.10.2 or 4.1.1, which shall have become
      due but remains unpaid;

            

    

     

    
      
         

      

      
        34

        
          

        

      

      
         

      

    

    

    
      	
              6.9.6  

            	
              sixthly,
      in or towards payment to any Bank for any loss suffered by reason of any
      payment in respect of principal not being effected on an Interest Payment
      Date relating to the part of principal so repaid and which amounts are so
      payable under this Agreement; and

            

    

     

    
      	
              6.9.7  

            	
              seventhly,
      in or towards payment to the relevant person of any other sum which shall
      have become due under any of the Security Documents but remains unpaid
      (and, if more than one such sum so remains unpaid, on a pro rata
      basis).

            

    

     

    The order
of application set out in clauses  to 6.9.7 may be varied by the Agent
if all the Banks so direct without any reference to, or consent or approval from
the Borrower.

     

    
      	
              6.10  

            	
              Types
      of L/C

            

    

     

    For all
purposes of this Agreement, the Issuing Bank shall determine, which
determination shall be conclusive and binding on the Borrower and the other
Creditors, whether an L/C is to be classified as a Documentary L/C, a
Transaction Related Standby L/C or a Direct Credit Substitute.

     

    
      	
              7  

            	
              Representations and warranties

            

    

     

    
      	
              7.1  

            	
              Continuing
      representations and warranties

            

    

     

    The
Borrower represents and warrants to each Creditor that:

     

    
      	
              7.1.1  

            	
              Due
      incorporation

            

    

     

    the
Borrower and each of the other Security Parties are duly incorporated and
validly existing in good standing under the laws of their respective countries
of incorporation as corporations or (as the case may be) as companies with
limited liability and have power to carry on their respective businesses as they
are now being conducted and to own their respective property and other
assets;

     

    
      	
              7.1.2  

            	
              Corporate
      power

            

    

     

    the
Borrower has power to execute, deliver and perform its obligations under the
Borrower’s Security Documents and the Underlying Documents to which it is or is
to be a party and to borrow the Overdraft and any other borrowings and
liabilities under this Agreement, and each of the other Security Parties has
power to execute and deliver and perform its obligations under the Security
Documents and the Underlying Documents to which it is or is to be a party; all
necessary corporate, shareholder and other action has been taken to authorise
the execution, delivery and performance of the same and no limitation on the
powers of the Borrower to borrow will be exceeded as a result of borrowing the
Overdraft or any other borrowings and liabilities under this Agreement or any
other transaction contemplated by this Agreement or the other Security
Documents;

     

    
      	
              7.1.3  

            	
              Binding
      obligations

            

    

     

    the
Underlying Documents and the Security Documents constitute or will, when
executed, constitute valid and legally binding obligations of the relevant
Security Parties enforceable in accordance with their respective
terms;

     

    
      
         

      

      
        35

        
          

        

      

      
         

      

    

    
      	
              7.1.4  

            	
              No
      conflict with other obligations

            

    

     

    the
execution and delivery of, the performance of their obligations under, and
compliance with the provisions of, the Underlying Documents and the Security
Documents by the relevant Security Parties, will not (a) contravene any existing
applicable law, statute, rule or regulation or any judgment, decree or permit to
which the Borrower or any other Security Party is subject, (b) conflict
with, or result in any breach of any of the terms of, or constitute a default
under, any agreement or other instrument to which the Borrower or any other
Security Party is a party or is subject or by which it or any of its property is
bound, (c) contravene or conflict with any provision of the constitutional
documents of the Borrower or any other Security Party or (d) result in the
creation or imposition of or oblige the Borrower or any other Security Party to
create any Encumbrance (other than a Permitted Encumbrance) on any of the
undertakings, assets, rights or revenues of the Borrower or any other Security
Party;

     

    
      	
              7.1.5  

            	
              No
      litigation

            

    

     

    no
litigation, arbitration or administrative proceeding is taking place, pending
or, to the knowledge of any of the officers of the Borrower, threatened against
the Borrower or any other Security Party which could have a material adverse
effect on the business, assets or financial condition of the Borrower or any of
its Related Companies or any other Security Party;

     

    
      	
              7.1.6  

            	
              No
      filings required

            

    

     

    save for
the registration of each Mortgage through the relevant Registry, it is not
necessary to ensure the legality, validity, enforceability or admissibility in
evidence of any of the Security Documents or any of the Underlying Documents
that they or any other instrument be notarised, filed, recorded, registered or
enrolled in any court, public office or elsewhere in any Relevant Jurisdiction
or that any stamp, registration or similar tax or charge be paid in any Relevant
Jurisdiction on or in relation to the Security Documents and the Underlying
Documents and each of the Security Documents and the Underlying Documents is in
proper form for its enforcement in the courts of each Relevant
Jurisdiction;

     

    
      	
              7.1.7  

            	
              Choice
      of law

            

    

     

    the
choice of English law to govern the Underlying Documents and the Security
Documents (other than the Mortgages and the Account Pledges), the choice of the
law of the relevant Flag State to govern each Mortgage and the choice of Greek
law to govern the Account Pledges, and the submissions by the Security Parties
to the non-exclusive jurisdiction of the English courts, are valid and
binding;

     

    
      	
              7.1.8  

            	
              No
      immunity

            

    

     

    neither
the Borrower nor any other Security Party nor any of their respective assets is
entitled to immunity on the grounds of sovereignty or otherwise from any legal
action or proceeding (which shall include, without limitation, suit, attachment
prior to judgement, execution or other enforcement);

     

    
      	
              7.1.9  

            	
              Consents
      obtained

            

    

     

    every
consent, authorisation, licence or approval of, or registration with or
declaration to, governmental or public bodies or authorities or courts required
by any Security Party to authorise, or required by any Security Party in
connection with, the execution, delivery, validity, enforceability or
admissibility in evidence of each of the Underlying Documents and the Security
Documents or the performance by each Security Party of its obligations under the
Underlying Documents and the Security Documents has been obtained or made and is
in full force and effect and there has been no default in the observance of any
of the conditions or restrictions (if any) imposed in, or in connection with,
any of the same; and

     

    
      
         

      

      
        36

        
          

        

      

      
         

      

    

    
      	
              7.1.10  

            	
              Shareholdings

            

    

     

    
      	
              (a)  

            	
              each
      of the Borrower, each Owner and the Manager are wholly-owned direct or
      indirect Subsidiaries of the Corporate Guarantor;
  and

            

    

     

    
      	
              (b)  

            	
              no
      less than 32% of the total issued voting share capital of the Corporate
      Guarantor is ultimately beneficially owned by Mr Dimitrios Melissanidis;
      and

            

    

     

    
      	
              (c)  

            	
              no
      person or persons acting in concert (other than Mr Dimitrios Melissanidis)
      are the ultimate beneficial owners of more than 50% (or of any other
      percentage higher than that owned by Mr Dimitrios Melissanidis), of the
      total issued voting share capital of the Corporate Guarantor or have the
      control of the Corporate Guarantor or of its board of directors (and
      “control” shall
      have the meaning given to it in the definition of “Subsidiary” in clause
      1.2); and

            

    

     

    
      	
              7.1.11  

            	
              Financial
      statements correct and complete

            

    

     

    the
unaudited consolidated financial statements of the Group in respect of the
financial half-year ended on 30 June 2007 as delivered to the Agent have been
prepared in accordance with the Applicable Accounting Principles and present
fairly and accurately the consolidated financial position of the Group as at
such date and the consolidated results of the operations of the Group for the
financial year ended on such date and, as at such date neither the Group nor any
member thereof had any significant liabilities (contingent or otherwise) or any
unrealised or anticipated losses which are not disclosed by, or reserved against
or provided for in, such financial statements.

     

    
      	
              7.2  

            	
              Initial
      representations and warranties

            

    

     

    The
Borrower further represents and warrants to each Creditor that:

     

    
      	
              7.2.1  

            	
              Pari
      passu

            

    

     

    the
obligations of the Borrower under this Agreement are direct, general and
unconditional obligations of the Borrower and rank at least pari passu with all
other present and future unsecured and unsubordinated Indebtedness of the
Borrower (with the exception of any obligations which are mandatorily preferred
by law and not by contract);

     

    
      	
              7.2.2  

            	
              No
      default under other Indebtedness

            

    

     

    neither
the Borrower nor any of its Related Companies nor any other Security Party is
(nor would with the giving of notice or lapse of time or the satisfaction of any
other condition or combination thereof be) in breach of or in default under any
agreement relating to Indebtedness to which it is a party or by which it may be
bound;

     

    
      	
              7.2.3  

            	
              Information

            

    

     

    the
information, exhibits and reports furnished by any Security Party to the Agent
or the Banks in connection with the negotiation and preparation of the Security
Documents are true and accurate in all material respects and not misleading, do
not omit material facts and all reasonable enquiries have been made to verify
the facts and statements contained therein; there are no other facts the
omission of which would make any fact or statement therein
misleading;

     

    
      
         

      

      
        37

        
          

        

      

      
         

      

    

    

     

    
      	
              7.2.4  

            	
              No
      withholding Taxes

            

    

     

    no Taxes
are imposed by withholding or otherwise on any payment to be made by any
Security Party under the Underlying Documents or the Security Documents or are
imposed on or by virtue of the execution or delivery by the Security Parties of
the Underlying Documents or the Security Documents or any other document or
instrument to be executed or delivered under any of the Security
Documents;

     

    
      	
              7.2.5  

            	
              No
      Default

            

    

     

    no
Default has occurred and is continuing;

     

    
      	
              7.2.6  

            	
              The
      Ships

            

    

     

    
      	
              (a)  

            	
              each
      Additional Ship will be on the Additional Mortgage Date for that Ship;
      and

            

    

     

    
      	
              (b)  

            	
              each
      Ship (other than the Additional Ships) will be on the date of this
      Agreement:

            

    

     

    
      	
              (i)  

            	
              in
      the absolute ownership of the relevant Owner who will, on and after such
      date, be the sole, legal and beneficial owner of such
  Ship;

            

    

     

    
      	
              (ii)  

            	
              registered
      in the name of the relevant Owner through the relevant Registry as a ship
      under the laws and flag of the relevant Flag
  State;

            

    

     

    
      	
              (iii)  

            	
              operationally
      seaworthy and in every way fit for service;
and

            

    

     

    
      	
              (iv)  

            	
              classed
      with the relevant Classification free of all requirements and
      recommendations of the relevant Classification
  Society;

            

    

     

    
      	
              7.2.7  

            	
              Ships’
      employment

            

    

     

    none of
the Ships will be:

     

    
      	
              (a)  

            	
              in
      the case of an Additional Ship, on the Additional Mortgage Date for that
      Ship; or

            

    

     

    
      	
              (b)  

            	
              in
      the case of each Ship (other than an Additional Ship), on the date of this
      Agreement,

            

    

     

    subject
to any charter or contract or to any agreement to enter into any charter or
contract which, if entered into after the date of the relevant Ship Security
Documents would have required the consent of the Creditors or any of them and on
the date of this Agreement, there will not be any agreement or arrangement
whereby the Earnings of any Ship may be shared with any other
person;

     

    
      	
              7.2.8  

            	
              Freedom
      from Encumbrances

            

    

     

    no Ship
nor its Earnings, Insurances or Requisition Compensation nor any other
properties or rights which are or are to be the subject of any of the Ship
Security Documents relating to that Ship, nor any of the Accounts nor the
Receivables nor any part thereof will be, on the date of this Agreement, subject
to any Encumbrances (other than Permitted Encumbrances);

     

     

     

    
      
         

      

      
        38

        
          

        

      

      
         

      

    

    
      	
              7.2.9  

            	
              Compliance
      with Environmental Laws and
Approvals

            

    

    except as
may already have been disclosed by the Borrower in writing to, and acknowledged
in writing by, the Agent:

     

    
      	
              (a)  

            	
              the
      Borrower and the other Relevant Parties and, to the best of the Borrower’s
      knowledge and belief (having made due enquiry), their respective
      Environmental Affiliates have complied with the provisions of all
      Environmental Laws;

            

    

     

    
      	
              (b)  

            	
              the
      Borrower and the other Relevant Parties and, to the best of the Borrower’s
      knowledge and belief (having made due enquiry), their respective
      Environmental Affiliates have obtained all Environmental Approvals and are
      in compliance with all such Environmental Approvals;
  and

            

    

     

    
      	
              (c)  

            	
              neither
      the Borrower nor any other Relevant Party nor, to the best of the
      Borrower’s knowledge and belief (having made due enquiry), any of their
      respective Environmental Affiliates has received notice of any
      Environmental Claim that the Borrower or any other Relevant Party or any
      such Environmental Affiliate is not in compliance with any Environmental
      Law or any Environmental Approval;

            

    

     

    
      	
              7.2.10  

            	
              No
      Environmental Claims

            

    

     

    except as
may already have been disclosed by the Borrower in writing to, and acknowledged
in writing by, the Agent, there is no Environmental Claim pending or, to the
best of the Borrower’s knowledge and belief, threatened against any of the
Owners or any of the Ships or any other Relevant Party or any other Relevant
Ship or, to the best of the Borrower’s knowledge and belief (having made due
enquiry), any of their respective Environmental Affiliates;

     

    
      	
              7.2.11  

            	
              No
      potential Environmental Claims

            

    

     

    except as
may already have been disclosed by the Borrower in writing to, and acknowledged
in writing by, the Agent, there has been no emission, spill, release or
discharge of a Pollutant from any of the Ships or any other Relevant Ship owned
by, managed or crewed by or chartered to any of the Owners nor, to the best of
the Borrower’s knowledge and belief (having made due enquiry), from any Relevant
Ship owned by, managed or crewed by or chartered to any other Relevant Party
which could give rise to an Environmental Claim;

     

    
      	
              7.2.12  

            	
              No
      material adverse change

            

    

     

    there has
been no material adverse change in the financial position of the Borrower or the
Owners or the Corporate Guarantor or any other Relevant Party or the
consolidated financial position of the Group, from that described by the
Borrower to the Agent and the Banks in the negotiation of this
Agreement;

     

    
      	
              7.2.13  

            	
              ISPS
      Code

            

    

     

    on the
date of this Agreement, the Owner of each Ship, shall have a valid and current
ISSC in respect of its Ship and each such Ship shall be in compliance with the
ISPS Code;

     

    
      	
              7.2.14  

            	
              Copies
      true and complete - commissions

            

    

     

    the
copies of each of the Underlying Documents delivered or to be delivered to the
Agent pursuant to clause 9.1 or under any other term of this Agreement are,
or will when delivered be, true and complete copies of such documents; each of
such document constitutes valid and binding obligations of the parties thereto
enforceable in accordance with its terms and there will have been no amendments
or variations thereof or defaults thereunder;

     

     

    
      
         

      

      
        39

        
          

        

      

      
         

      

    

     

    
      	
              7.2.15  

            	
              Application
      for DOC and SMC

            

    

     

    the
Operator of each Ship has applied for a DOC for itself and an SMC in respect of
each Ship and neither the Borrower nor the Operator of any Ship is aware of any
reason why any such application may be refused; and

     

    
      	
              7.2.16  

            	
              Borrower’s
      own account

            

    

     

    in
relation to the borrowing by the Borrower of the Overdraft and any other amounts
under this Agreement, the performance and discharge of its obligations and
liabilities under the Security Documents and the transactions and other
arrangements effected or contemplated by this Agreement, the Borrower is acting
for its own account and that 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 by any relevant regulatory authority or
otherwise to combat “money
laundering” (as defined in Article 1 of the Directive (91/308/EEC)
of the Council of the European Communities (as amended)).

     

    
      	
              7.3  

            	
              Repetition
      of representations and warranties

            

    

     

    
      	
              7.3.1  

            	
              On
      and as of the date of this Agreement and each Issue Date of an L/C and
      (except in relation to the representations and warranties in
      clause 7.2) on each Interest Payment Date, the Borrower shall (a) be
      deemed to repeat the representations and warranties in clauses 7.1
      and 7.2 as if made with reference to the facts and circumstances existing
      on such day and (b) be deemed to further represent and warrant to
      each Creditor that the then latest audited consolidated financial
      statements of the Group delivered to the Agent or the Security Agent (if
      any) have been prepared in accordance with the Applicable Accounting
      Principles which have been consistently applied and present fairly and
      accurately the consolidated financial position of the Group as at the end
      of the financial period to which the same relate and the consolidated
      results of the operations of the Group for the financial period to which
      the same relate, respectively, and, as at the end of such financial
      period, neither the Corporate Guarantor nor any other member of the Group
      had any significant liabilities (contingent or otherwise) or any
      unrealised or anticipated losses which are not disclosed by, or reserved
      against or provided for in, such financial
  statements.

            

    

     

    
      	
              8  

            	
              Undertakings

            

    

     

    
      	
              8.1  

            	
              General

            

    

     

    The
Borrower undertakes with each Creditor that, from the date of this Agreement and
so long as any moneys are owing under any of the Security Documents, whether
actually or contingently, and while all or any part of the Overdraft Facility or
the Guarantee Facility Commitment is available, it will:

     

    
      	
              8.1.1  

            	
              Notice
      of Default

            

    

     

    promptly
inform the Agent of any occurrence of which it becomes aware which might
adversely affect the ability of any Security Party to perform its obligations
under any of the Security Documents or the Underlying Documents and, without
limiting the generality of the foregoing, will inform the Agent of any Default
forthwith upon becoming aware thereof and will from time to time, if so
requested by the Agent, confirm to the Agent in writing that, save as otherwise
stated in such confirmation, no Default has occurred and is
continuing;

     

    
      	
              8.1.2  

            	
              Consents
      and licences

            

    

     

    without
prejudice to clauses 7.1 and 9, obtain or cause to be obtained, maintain in
full force and effect and comply in all material respects with the conditions
and restrictions (if any) imposed in, or in connection with, every consent,
authorisation, licence or approval of governmental or public bodies or
authorities or courts and do, or cause to be done, all other acts and things
which may from time to time be necessary or desirable under applicable law for
the continued due performance of all the obligations of the Security Parties
under each of the Security Documents and the Underlying Documents;

     

    
      
         

      

      
        40

        
          

        

      

      
         

      

    

    
      	
              8.1.3  

            	
              Use
      of proceeds

            

    

     

    
      	
              (a)  

            	
              without
      prejudice to paragraph (b) below, use the Overdraft and the L/Cs
      exclusively for the relevant purposes specified in clauses 1.1 and 2.1;
      and

            

    

     

    
      	
              (b)  

            	
              (in
      view of the fact that the Overdraft Facility is to be used for (inter
      alia) working capital purposes), ensure that there are fluctuating debit
      balances in the Overdraft Account at all
times;

            

    

     

    
      	
              8.1.4  

            	
              Pari
      passu and subordination of intra-Group
loans

            

    

     

    
      	
              (a)  

            	
              ensure
      that the obligations of the Borrower, each Owner and the Corporate
      Guarantor under this Agreement, each Owner’s Guarantee and the Corporate
      Guarantee, respectively, shall, without prejudice to the provisions of
      clause 8.3 and the security intended to be created by the Security
      Documents, at all times rank at least pari passu with all their other
      respective present and future unsecured and unsubordinated Indebtedness
      with the exception of any obligations which are mandatorily preferred by
      law and not by contract; and

            

    

     

    
      	
              (b)  

            	
              ensure
      that, to the extent that the proceeds of the Overdraft Facility are
      on-lent by the Borrower to the Corporate Guarantor or any Owner or any
      other member of the Group in accordance with the specified purpose of the
      Overdraft Facility pursuant to clauses 1.1 and
  2.1:

            

    

     

    
      	
              (i)  

            	
              the
      relevant loan or loans shall be made on an unsecured basis and shall be
      fully subordinated towards any moneys owing to the Creditors, whether
      actually or contingently, under this Agreement and the other Security
      Documents; and

            

    

     

    
      	
              (ii)  

            	
              neither
      the relevant loan or loans nor any part thereof nor any interest accrued
      or accruing thereon shall be repaid or paid to the Borrower unless any and
      all moneys owing to the Creditors, whether actually or contingently, under
      this Agreement and the other Security Documents (including the Aggregate
      Liabilities) have been repaid in
full;

            

    

     

    
      	
              8.1.5  

            	
              Financial
      statements

            

    

     

    prepare
or cause to be prepared consolidated financial statements of the Group in
accordance with the Applicable Accounting Principles consistently applied in
respect of each financial year and cause the same to be reported on by the
Group’s auditors and prepare or cause to be prepared unaudited consolidated
financial statements of the Group in respect of each financial half-year on the
same basis as the annual financial statements, and deliver to the Agent as many
copies of the same as the Agent may reasonably require as soon as practicable
but not later than ninety (90) days (in the case of annual financial statements)
and sixty (60) days (in the case of semi-annual financial statements) after the
end of the financial period to which they relate;

     

    
      	
              8.1.6  

            	
              Delivery
      of reports

            

    

     

    deliver
to the Agent as many copies as the Agent may reasonably require of every report,
circular, notice or like document issued by the Borrower, the Corporate
Guarantor, each Owner, any other member of the Group or any of their respective
Related Companies to their shareholders or creditors generally, in each case at
the time of issue thereof;

     

    
      
         

      

      
        41

        
          

        

      

      
         

      

    

    

     

    
      	
              8.1.7  

            	
              Provision
      of further information

            

    

     

    provide
the Agent with such financial and other information concerning the Group, the
Corporate Guarantor, the Borrower, the other Security Parties, the other
Relevant Parties and their respective affairs, at the earliest possible
opportunity and in any event at regular intervals of not more than three (3)
months and at all other times as the Agent may from time to time require,
including, without limitation, any management information, information relating
to the position, trading and/or employment of the Ships and any actual or
proposed purchase of vessels by any member of the Group, copies of all documents
required of the Corporate Guarantor to file with the Securities and Exchange
Commission of the U.S.A. or pursuant to the Sarbanes-Oxley Act of the U.S.A. and
any other documents or information as may be reasonably required by the
Agent;

     

    
      	
              8.1.8  

            	
              Obligations
      under Security Documents

            

    

     

    and will
procure that each of the other Security Parties will, duly and punctually
perform each of the obligations expressed to be assumed by it under the Security
Documents and the Underlying Documents;

     

    
      	
              8.1.9  

            	
              Compliance
      with Code

            

    

     

    and will
procure that any Operator will, comply with, and ensure that each Ship and any
Operator at all times complies with, the requirements of the Code, including
(but not limited to) the maintenance and renewal of valid certificates pursuant
thereto throughout the Security Period;

     

    
      	
              8.1.10  

            	
              Withdrawal
      of DOC and SMC

            

    

     

    and will
procure that any Operator will, immediately inform the Agent if there is any
threatened or actual withdrawal of such Operator’s DOC or the SMC in respect of
any Ship;

     

    
      	
              8.1.11  

            	
              Issuance
      of DOC and SMC

            

    

     

    and will
procure that any Operator will, promptly inform the Agent upon the issuance to
any Operator of a DOC and to each Ship of an SMC or the receipt by any of the
Owners or any Operator of notification that its application for the same has
been refused;

     

    
      	
              8.1.12  

            	
              ISPS
      Code compliance

            

    

     

    and will
procure that the Manager or any Operator will:

     

    
      	
              (a)  

            	
              from
      the date of this Agreement and at all times thereafter, maintain a valid
      and current ISSC in respect of each
Ship;

            

    

     

    
      	
              (b)  

            	
              immediately
      notify the Agent in writing of any actual or threatened withdrawal,
      suspension, cancellation or modification of the ISSC in respect of any
      Ship; and

            

    

     

    
      	
              (c)  

            	
              procure
      that each Ship will comply at all times with the ISPS
  Code;

            

    

     

    
      
         

      

      
        42

        
          

        

      

      
         

      

    

    

    
      	
              8.1.13  

            	
              “KYC”
      requirements

            

    

     

    deliver
to the Agent such documents and evidence as any Creditor shall from time to time
require, based on applicable law and regulations and such Creditor’s own
internal guidelines from time to time, in each case, relating to the
verification of identity and knowledge of such Creditor’s customers and to the
opening of bank accounts by any Security Party (including the Accounts);
and

     

    
      	
              8.1.14  

            	
              Collateral
      Ships

            

    

     

    within
seven (7) days following a relevant request by the Agent (acting on the
instructions of the Majority Banks) to the Borrower and the relevant Collateral
Owner(s), in respect of one or more Collateral Ships, deliver to the Agent,
and/or procure that the relevant Collateral Owner(s) (as the case may be)
execute(s) and deliver(s) to the Agent, the documents and evidence set out in
schedule 9, Part 1 in respect of such Collateral Ship(s), in form and substance
satisfactory to the Agent and at the cost and expense of the
Borrower.

     

    
      	
              8.2  

            	
              Security
      value maintenance

            

    

     

    
      	
              8.2.1  

            	
              Security
      shortfall

            

    

     

    If at any
time the Security Value shall be less than the Security Requirement, the Agent
(acting on the instructions of the Majority Banks) shall give notice to the
Borrower requiring that such deficiency be remedied and then the Borrower shall
either:

     

    
      	
              (a)  

            	
              prepay
      within a period of two (2) days of the date of receipt by the Borrower of
      the Agent's said notice such sum of the Overdraft in Dollars as will
      result in the Security Requirement after such prepayment of the Overdraft
      being equal to the Security Value;
or

            

    

     

    
      	
              (b)  

            	
              within
      two (2) days of the date of receipt by the Borrower of the Agent's said
      notice:

            

    

     

    
      	
              (i)  

            	
              provide
      in accordance with clause 2.4 further Receivables which are Qualifying
      Receivables by delivering to the Agent a Schedule of Receivables with such
      Receivables together with copies of documents, receipts and invoices of
      the type specified in clause 2.4 and relating to such Receivables;
      and/or

            

    

     

    
      	
              (ii)  

            	
              place
      further funds to the credit of the cash of the Cash Collateral Account;
      and/or

            

    

     

    
      	
              (iii)  

            	
              constitute
      to the satisfaction of the Agent such further security for the Aggregate
      Liabilities as shall be acceptable to the
Banks,

            

    

     

    in each
case having a value for security purposes (as determined by the Agent in its
absolute discretion) at the date upon which such further security shall be
constituted which, when added to the Security Value, shall not be less than the
Security Requirement as at such date or which would remedy the deficiency
referred to above.

     

    The Agent
shall test the Borrower’s compliance with this clause 8.2.1 at the end of each
financial quarter and at any other times as and when the Agent (acting on the
instructions of the Majority Banks) shall require (but not more frequently than
once per week) and, in any event, on each Reset Date.

     

    The
provisions of clause 4.4 and any relevant provision of clause 4.5 shall
apply to prepayments made under clause .

     

    
      
         

      

      
        43

        
          

        

      

      
         

      

    

    

     

    
      	
              8.2.2  

            	
              Valuation
      of Mortgaged Ships

            

    

     

    
      	
              (a)  

            	
              Each
      Mortgaged Ship shall, for the purposes of this clause 8.2, be valued
      in Dollars at the end of every financial quarter and at any other times as
      and when the Agent (acting on the instructions of the Majority Banks)
      shall require.  Subject to paragraph (b) below, each such
      valuation shall be made by an independent firm of shipbrokers nominated by
      the Borrower and approved by the Agent (acting on the instructions of the
      Majority Banks in their sole discretion) or, failing such nomination or
      approval, appointed by the Agent (acting on the instructions of the
      Majority Banks in their sole discretion).  Each such valuation
      of a Mortgaged Ship shall be addressed to the Agent and made without,
      unless required by the Agent, physical inspection and on the basis of a
      sale for prompt delivery for cash at arm’s length on normal commercial
      terms, as between a willing buyer and a willing seller and without taking
      into account the benefit of any charterparty or other engagement
      concerning the relevant Mortgaged Ship.  Such valuation shall
      constitute the value of such Mortgaged Ship for the purposes of this
      clause 8.2 unless the Agent (acting on the instructions of the
      Majority Banks in their sole discretion) objects to the valuation of the
      relevant Mortgaged Ship provided by the shipbroker nominated by the
      Borrower within seven (7) days of receipt of such valuation, in which
      event the value of such Mortgaged Ship shall be the arithmetic mean of the
      value specified in such valuation and the value specified in a further
      valuation issued by an independent firm of shipbrokers appointed by the
      Agent (acting on the instructions of the Majority Banks in their sole
      discretion) and made on the same basis as specified
  above.

            

    

     

    
      	
              (b)  

            	
              In
      the case of a Ship which is a single hull vessel, its market value for the
      purposes of this clause 8.2 shall be the then prevailing scrap value of
      such Ship as determined by the Agent in its sole
    discretion.

            

    

     

    
      	
              (c)  

            	
              The
      value of each Mortgaged Ship determined in accordance with the provisions
      of this clause 8.2.2 shall be binding upon the parties hereto until
      such further date when the market value of such Mortgaged Ship is
      determined by the Agent pursuant to this clause
  8.2.2.

            

    

     

    
      	
              8.2.3  

            	
              Information

            

    

     

    The
Borrower undertakes with the Creditors to supply to the Agent and to any such
shipbrokers such information concerning each Mortgaged Ship and its condition as
such shipbrokers may reasonably require for the purpose of making any such
valuation and will supply the Agent with such other information, including
without limitation about any Schedules of Receivables as the Agent shall from
time to time require for the purposes of giving effect to clause
8.2.1.

     

    
      	
              8.2.4  

            	
              Costs

            

    

     

    All costs
in connection with the Agent obtaining any valuation of each of the Mortgaged
Ships referred to in clause 8.2.2 and in schedule 2, and any valuation
either of any additional security for the purposes of ascertaining the Security
Value at any time or necessitated by the Borrower electing to constitute
additional security pursuant to clause 8.2.1(b), shall be borne by the
Borrower.

     

    
      
         

      

      
        44

        
          

        

      

      
         

      

    

    

     

    
      	
              8.2.5  

            	
              Valuation
      of additional security

            

    

     

    For the
purposes of this clause 8.2, the market value of any additional security
provided or to be provided to the Security Agent and/or the other Creditors
shall be determined by the Agent in its absolute discretion without any
necessity for the Agent assigning any reason thereto.

     

    
      	
              8.2.6  

            	
              Documents
      and evidence

            

    

     

    In
connection with any additional security provided in accordance with this
clause 8.2, the Agent shall be entitled to receive such evidence and
documents of the kind referred to in schedule 2 as may in the Agent’s opinion be
appropriate and such favourable legal opinions as the Agent shall in its
absolute discretion require.

     

    
      	
              8.3  

            	
              Negative
      undertakings

            

    

     

    The
Borrower undertakes with each Creditor that, from the date of this Agreement and
so long as any moneys are owing under the Security Documents, whether actually
or contingently, and while all or any part of the Overdraft Facility or the
Guarantee Facility Commitment remains available, it will not, without the prior
written consent of the Agent (acting on the instructions of the Majority
Banks):

     

    
      	
              8.3.1  

            	
              Negative
      pledge

            

    

     

    permit
any Encumbrance (other than a Permitted Encumbrance) to subsist, arise or be
created or extended over all or any part of its present or future undertaking,
assets, rights or revenues in order to secure or prefer any present or future
Indebtedness or other liability or obligation of the Borrower or any Security
Party or any other person;

     

    
      	
              8.3.2  

            	
              No
      merger

            

    

     

    merge or
consolidate with any other person or enter into any demerger, amalgamation,
corporate reconstruction or redomiciliation of any type;

     

    
      	
              8.3.3  

            	
              Disposals

            

    

     

    sell,
transfer, abandon, lend or otherwise dispose of or cease to exercise direct
control over any part (being either alone or when aggregated with all other
disposals falling to be taken into account pursuant to this clause 8.3.3
material in the opinion of the Agent in relation to the undertaking, assets,
rights and revenues of the Borrower taken as a whole) of its present or future
undertaking, assets, rights or revenues (otherwise than by transfers, sales or
disposals for full consideration in the ordinary course of trading) whether by
one or a series of transactions related or not;

     

    
      	
              8.3.4  

            	
              Other
      business

            

    

     

    undertake
any business other than the business carried out by it or the Group on the date
of this Agreement;

     

    
      
         

      

      
        45

        
          

        

      

      
         

      

    

    

     

    
      	
              8.3.5  

            	
              Acquisitions

            

    

     

    acquire
any further assets other than in the ordinary course of its business or
contracts for the sale of oil bunkers and lubricants;

     

    
      	
              8.3.6  

            	
              Other
      obligations

            

    

     

    incur any
obligations except for obligations arising under the Underlying Documents or the
Security Documents or contracts entered into in the ordinary course of its
business or contracts for the sale of oil bunkers and lubricants;

     

    
      	
              8.3.7  

            	
              No
      borrowing

            

    

     

    the
Borrower will not incur any Borrowed Money except for Borrowed Money pursuant to
the Security Documents;

     

    
      	
              8.3.8  

            	
              Repayment
      of borrowings

            

    

     

    repay the
principal of, or pay interest on or any other sum in connection with any of its
Borrowed Money except for Borrowed Money pursuant to the Security
Documents;

     

    
      	
              8.3.9  

            	
              Loans

            

    

     

    make any
loans or grant any credit (save for normal trade credit in the ordinary course
of business) to any person or agree to do so;

     

    
      	
              8.3.10  

            	
              Sureties

            

    

     

    permit
any of its Indebtedness to any person (other than the Creditors) to be
guaranteed by any person save in the ordinary course of its business or by the
Issuing Bank by way of L/Cs;

     

    
      	
              8.3.11  

            	
              Share
      capital and distribution

            

    

     

    declare
or pay any dividends to any of its shareholders if an Event of Default has
occurred or will or, in the opinion of the Agent, is likely to occur as a result
of, or following, the declaration or payment of dividends;

     

    
      
         

      

      
        46

        
          

        

      

      
         

      

    

    
      	
              8.3.12  

            	
              Subsidiaries

            

    

     

    form or
acquire any Subsidiaries save in the ordinary course of its
business;

     

    
      	
              8.3.13  

            	
              Manager

            

    

     

    permit
the appointment of any manager of any of the Ships other than the Manager or the
termination or amendment of the terms of any of the Management Agreements;
or

     

    
      	
              8.4  

            	
              Cash
      collateralisation of L/Cs

            

    

     

    Without
prejudice to clause 2.13, forthwith upon, or at any time following the
occurrence of an Event of Default, the Agent (acting on the instructions of the
Majority Banks) shall be entitled (but not obliged) to demand payment by the
Borrower of, and the Borrower forthwith upon such demand shall pay to the
Account Bank for credit to the Cash Collateral Account, such amount as shall be
the aggregate of the total Outstanding Amounts for all L/Cs.  Such
payment shall be made in Dollars, except in the case of any part of the said
Outstanding Amounts which is a Settlement Amount outstanding in an Optional
Currency and unpaid, which shall be made in the relevant Optional
Currency.

     

    
      	
              8.5  

            	
              Additional
      tonnage

            

    

     

    If any
member of the Group (excluding the Security Parties) acquires a vessel (other
than the Ships), the relevant member of the Group shall be entitled to arrange
for the financing of the acquisition of such vessel by bank debt and to agree
that such vessel shall be mortgaged in favour of the relevant lender or lenders,
subject to no Event of Default having occurred and be continuing at such time
and the Borrower and the other Security Parties being in compliance with all of
their undertakings and obligations under this Agreement and the other Security
Documents.

     

    
      	
              8.5.1  

            	
              The
      Borrower shall be entitled however to procure that any such vessel is
      mortgaged (at the expense of the Borrower) in favour of the Security Agent
      as security for the Borrower’s obligations under this Agreement, subject
      to satisfactory documentation being received by the Agent in respect of
      such security at the cost and expense of the Borrower pursuant to clause
      8.5.3 below, so that such vessel becomes an “Additional Ship” for the
      purpose of this Agreement.

            

    

     

    
      	
              8.5.2  

            	
              The
      Borrower shall be entitled by written notice to the Agent at any time to
      request that a vessel owned by a member of the Group (and which is not
      then already a Ship under this Agreement) becomes an “Additional Ship” for the
      purposes of this Agreement.  The Agent (acting on the
      instructions of the Majority Banks in their absolute discretion) shall be
      entitled to accept or decline such request (without any need to assign any
      reason to such decision) and shall notify the Borrower of the Banks’
      decision within twenty (20) days of the Borrower’s relevant request in
      respect of a vessel.  If the Agent notifies the Borrower that
      the Banks accept its request in respect of a vessel, the Borrower shall
      deliver to the Agent, not later than (ten) 10 days after the Agent’s
      notice of acceptance to the Borrower in respect of a vessel, the documents
      and evidence set out in schedule 9, Part 2 in respect of the relevant
      vessel, in form and substance satisfactory to the Agent and at the cost
      and expense of the Borrower.

            

    

     

    
      	
              9  

            	
              Conditions

            

    

     

    
      	
              9.1  

            	
              Documents
      and evidence

            

    

     

    The
obligation of the Banks to make available the Overdraft Facility and the
Guarantee Facility or to permit any drawing on the Overdraft Account or the
issuing of any L/C, shall be subject to the condition that the Agent or its duly
authorised representative shall have received, not later than two (2) Banking
Days before the date of this Agreement, the documents and evidence specified in
schedule 5, in form and substance satisfactory to the Agent.

     

    
      
         

      

      
        47

        
          

        

      

      
         

      

    

    
      	
              9.2  

            	
              General
      conditions precedent

            

    

     

    The
obligations of the Banks to make the Overdraft Facility available or to permit
the issuing of any L/C (as the case may be) shall be subject to the further
conditions that, at the time of the relevant drawing request under the Overdraft
Facility or the relevant Issue Request in respect of the relevant L/C (as the
case may be) and at the time of the making of the relevant drawing under the
Overdraft Facility or on the Issue Date of the relevant L/C (as the case may
be):

     

    
      	
              9.2.1  

            	
              the
      representations and warranties contained in (i) clauses 7.1, 7.2 and
      7.3(b), (ii) clause 4 of the Corporate Guarantee and (iii)
      clause 4 of each Owner’s Guarantee, are true and correct on and as of
      each such time as if each was made with respect to the facts and
      circumstances existing at such time;
and

            

    

     

    
      	
              9.2.2  

            	
              no
      Default shall have occurred and be continuing or would result from the
      making of the relevant drawing or the issuing of the relevant L/C (as the
      case may be).

            

    

     

    
      	
              9.3  

            	
              Waiver
      of conditions precedent

            

    

     

    The
conditions specified in this clause 9 are inserted solely for the benefit
of the Creditors and may be waived by the Agent (acting on the instructions of
the Majority Banks) in whole or in part and with or without
conditions.

     

    
      	
              9.4  

            	
              Further
      conditions precedent

            

    

     

    Not later
than five (5) Banking Days prior to each Issue Date and not later than five (5)
Banking Days prior to each Interest Payment Date or each Reset Date, the Agent
may request and the Borrower shall, not later than two (2) Banking Days prior to
such date, deliver to the Agent on such request further favourable certificates
and/or opinions as to any or all of the matters which are the subject of
clauses 7, 8, 9 and 10 of this Agreement.

     

    
      	
              10  

            	
              Events of Default

            

    

     

    
      	
              10.1  

            	
              Events

            

    

     

    There
shall be an Event of Default if:

     

    
      	
              10.1.1  

            	
              Non-payment: any
      Security Party fails to pay any sum payable by it under any of the
      Security Documents or the Underlying Documents at the time, in the
      currency and in the manner stipulated in the Security Documents or the
      Underlying Documents (and so that, for this purpose, sums payable on
      demand shall be treated as having been paid at the stipulated time if paid
      within three (3) Banking Days of demand);
or

            

    

     

    
      	
              10.1.2  

            	
              Breach of Insurances and
      certain other obligations: any of the Owners or the Manager fails
      to obtain and/or maintain the Insurances (in accordance with the
      requirements of the Security Documents) for any of the Mortgaged Ships or
      if any insurer in respect of such Insurances cancels any of such
      Insurances or disclaims liability by reason, in either case, of
      mis-statement in any proposal for any of such Insurances or for any other
      failure or default on the part of the Owners or any of them or any other
      person or the Borrower or the Corporate Guarantor or any of the Owners
      commit any breach of or omit to observe any of the obligations or
      undertakings expressed to be assumed by them under clauses 8.1.3, 8.1.14,
      8.2, 8.3 or 8.4 of this Agreement or clauses 5.2 or 5.3 of the Corporate
      Guarantee or clause 5 of any Owner’s Guarantee, respectively;
      or

            

    

     

    
      
         

      

      
        48

        
          

        

      

      
         

      

    

    

    
      	
              10.1.3  

            	
              Breach of other
      obligations: any Security Party commits any breach of or omits to
      observe any of its obligations or undertakings expressed to be assumed by
      it under any of the Security Documents or any of the Underlying Documents
      (other than those referred to elsewhere in this clause 10.1) and, in
      respect of any such breach or omission which in the opinion of the Agent
      (acting on the instructions of the Majority Banks) is capable of remedy,
      such action as the Agent (acting on the instructions of the Majority
      Banks) may require shall not have been taken within fourteen (14) days of
      the Agent notifying the relevant Security Party of such default and of
      such required action; or

            

    

     

    
      	
              10.1.4  

            	
              Misrepresentation: any
      representation or warranty made or deemed to be made or repeated by or in
      respect of any Security Party in or pursuant to any of the Security
      Documents or in any notice, certificate or statement referred to in or
      delivered under any of the Security Documents is or proves to have been
      incorrect or misleading in any material respect;
  or

            

    

     

    
      	
              10.1.5  

            	
              Cross-default: any
      Indebtedness of any Relevant Party is not paid when due or any
      Indebtedness of any Relevant Party becomes (whether by declaration or
      automatically in accordance with the relevant agreement or instrument
      constituting the same) due and payable prior to the date when it would
      otherwise have become due (unless as a result of the exercise by the
      relevant Relevant Party of a voluntary right of prepayment), or any
      creditor of any Relevant Party becomes entitled to declare any such
      Indebtedness due and payable or any facility or commitment available to
      any Relevant Party relating to Indebtedness, is withdrawn, suspended or
      cancelled by reason of any default (however described) of the person
      concerned unless the relevant Relevant Party shall have satisfied the
      Agent that such withdrawal, suspension or cancellation will not affect or
      prejudice in any way the relevant Relevant Party’s ability to pay its
      debts as they fall due and fund its commitments, or any guarantee given by
      any Relevant Party in respect of Indebtedness is not honoured when due and
      called upon; or

            

    

     

    
      	
              10.1.6  

            	
              Legal process: any
      judgment or order made against any Relevant Party is not stayed or
      complied with within seven (7) days or a creditor attaches or takes
      possession of, or a distress, execution, sequestration or other process is
      levied or enforced upon or sued out against, any of the undertakings,
      assets, rights or revenues of any Relevant Party and is not discharged
      within seven (7) days; or

            

    

     

    
      	
              10.1.7  

            	
              Insolvency: any Relevant
      Party is unable or admits inability to pay its debts as they fall due;
      suspends making payments on any of its debts or announces an intention to
      do so; becomes insolvent; has assets the value of which is less than the
      value of its liabilities (taking into account contingent and prospective
      liabilities); or suffers the declaration of a moratorium in respect of any
      of its Indebtedness; or

            

    

     

    
      	
              10.1.8  

            	
              Reduction or loss of
      capital: a meeting is convened by any Relevant Party for the
      purpose of passing any resolution to purchase or reduce its share capital
      or to redeem any of its shares; or

            

    

     

    
      	
              10.1.9  

            	
              Winding up: any
      corporate action, legal proceedings or other procedure or step is taken
      for the purpose of winding up any Relevant Party or an order is made or
      resolution passed for the winding up of any Relevant Party or a notice is
      issued convening a meeting for the purpose of passing any such resolution;
      or

            

    

     

    
      
         

      

      
        49

        
          

        

      

      
         

      

    

    

    
      	
              10.1.10  

            	
              Administration: any
      petition is presented, notice given or step is taken for the purpose of
      the appointment of an administrator of any Relevant Party or the Agent
      believes that any such petition or other step is imminent or an
      administration order is made in relation to any Relevant Party;
      or

            

    

     

    
      	
              10.1.11  

            	
              Appointment of receivers and
      managers: any administrative or other receiver is appointed of any
      Relevant Party or any part of its assets and/or undertaking or any other
      steps are taken to enforce any Encumbrance over all or any part of the
      assets of any Relevant Party; or

            

    

     

    
      	
              10.1.12  

            	
              Compositions: any
      corporate action, legal proceedings or other procedures or steps are
      taken, or negotiations commenced, by any Relevant Party or by any of its
      creditors with a view to the general readjustment or rescheduling of all
      or part of its indebtedness or to proposing any kind of composition,
      compromise or arrangement involving such company and any of its creditors;
      or

            

    

     

    
      	
              10.1.13  

            	
              Analogous proceedings:
      there occurs, in relation to any Relevant Party, in any country or
      territory in which any of them carries on business or to the jurisdiction
      of whose courts any part of their assets is subject, any event which, in
      the reasonable opinion of the Agent, appears in that country or territory
      to correspond with, or have an effect equivalent or similar to, any of
      those mentioned in clauses 10.1.6 to 10.1.12 (inclusive) or any
      Relevant Party otherwise becomes subject, in any such country or
      territory, to the operation of any law relating to insolvency, bankruptcy
      or liquidation; or

            

    

     

    
      	
              10.1.14  

            	
              Cessation of business:
      any Relevant Party suspends or ceases or threatens to suspend or cease to
      carry on its business; or

            

    

     

    
      	
              10.1.15  

            	
              Seizure: all or a
      material part of the undertaking, assets, rights or revenues of, or shares
      or other ownership interests in, any Relevant Party are seized,
      nationalised, expropriated or compulsorily acquired by or under the
      authority of any government; or

            

    

     

    
      	
              10.1.16  

            	
              Invalidity: any of the
      Security Documents shall at any time and for any reason become invalid or
      unenforceable or otherwise cease to remain in full force and effect, or if
      the validity or enforceability of any of the Security Documents shall at
      any time and for any reason be contested by any Security Party which is a
      party thereto, or if any such Security Party shall deny that it has any,
      or any further, liability thereunder;
or

            

    

     

    
      	
              10.1.17  

            	
              Unlawfulness: it becomes
      impossible or unlawful at any time for any Security Party, to fulfil any
      of the covenants and obligations expressed to be assumed by it in any of
      the Security Documents or for the Agent to exercise the rights or any of
      them vested in it under any of the Security Documents or otherwise;
      or

            

    

     

    
      	
              10.1.18  

            	
              Repudiation: any
      Security Party repudiates any of the Security Documents or does or causes
      or permits to be done any act or thing evidencing an intention to
      repudiate any of the Security Documents;
or

            

    

     

    
      	
              10.1.19  

            	
              Encumbrances
      enforceable: any Encumbrance (other than Permitted Liens) in
      respect of any of the property (or part thereof) which is the subject of
      any of the Security Documents becomes enforceable;
  or

            

    

     

    
      
         

      

      
        50

        
          

        

      

      
         

      

    

    

    
      	
              10.1.20  

            	
              Material adverse change:
      there occurs, in the reasonable opinion of the Agent (acting on the
      instructions of the Majority Banks), a material adverse change in the
      financial condition of any Security Party or the Group or by reference to
      the financial position of that Security Party or (as the case may be) the
      Group as described by or on behalf of the Borrower or any Security Party
      to the Agent and/or the Banks in the negotiation of this Agreement;
      or

            

    

     

    
      	
              10.1.21  

            	
              Arrest: any Mortgaged
      Ship is arrested, confiscated, seized, taken in execution, impounded,
      forfeited, detained in exercise or purported exercise of any possessory
      lien or other claim or otherwise taken from the possession of the relevant
      Owner and such Owner shall fail to procure the release of such Mortgaged
      Ship within a period of two (2) days thereafter;
  or

            

    

     

    
      	
              10.1.22  

            	
              Registration: the
      registration of any Mortgaged Ship under the laws and flag of the relevant
      Flag State is cancelled or terminated without the prior written consent of
      the Agent (acting on the instructions of the Majority Banks) or if such
      registration of any Mortgaged Ship is not renewed at least forty five (45)
      days prior to the expiry of such registration;
  or

            

    

     

    
      	
              10.1.23  

            	
              Unrest: the
      Flag State in respect of a Mortgaged Ship becomes involved in hostilities
      or civil war or there is a seizure of power in any Flag State in
      respect of a Mortgaged Ship by unconstitutional means if, in any such
      case, such event could in the opinion of the Agent (acting on the
      instructions of the Majority Banks) reasonably be expected to have a
      material adverse effect on the security constituted by any of the Security
      Documents; or

            

    

     

    
      	
              10.1.24  

            	
              Environment: the
      Borrower and/or any other Relevant Party and/or any of their respective
      Environmental Affiliates fails to comply with any Environmental Law or any
      Environmental Approval or the Borrower and/or any other Relevant Party
      and/or any of their respective Environmental Affiliates or any Ship or any
      other Relevant Ship is involved in any incident which gives rise or may
      give rise to an Environmental Claim if, in any such case, such
      non-compliance or incident or the consequences thereof could, in the
      opinion of the Agent reasonably be expected to have a material adverse
      effect on the business, assets, operations, property or financial
      condition of the Borrower or the Corporate Guarantor or any other Security
      Party or the Group or on the security constituted by any of the Security
      Documents; or

            

    

     

    
      	
              10.1.25  

            	
              P&I: any Owner or
      the Manager or any other person fails or omits to comply with any
      requirements of the protection and indemnity association or other insurer
      with which a Ship is entered for insurance or insured against protection
      and indemnity risks (including oil pollution risks) to the effect that any
      cover (including, without limitation, any cover in respect of liability
      for Environmental Claims arising in jurisdictions where such Ship operates
      or trades) is or may be liable to cancellation, qualification or exclusion
      at any time; or

            

    

     

    
      	
              10.1.26  

            	
              Shareholdings:

            

    

     

    
      	
              (a)  

            	
              there
      is any change in the legal and/or ultimate beneficial ownership of any of
      the shares in the Corporate Guarantor from that existing on the date of
      this Agreement, which results in (i) Mr Dimitrios Melissanidis being the
      ultimate beneficial owner of less than 32% of the total issued voting
      share capital of the Corporate Guarantor at any relevant time or (ii) any
      person or persons acting in concert (other than Mr Dimitrios Melissanidis)
      becoming at any relevant time the ultimate beneficial owners of more than
      50% (or of a percentage higher than that then owned by Mr Dimitrios
      Melissanidis), of the total issued voting share capital of the Corporate
      Guarantor or having the control of the Corporate Guarantor or of its board
      of directors (and “control” shall have the
      meaning given to it in the definition of “Subsidiary” in clause 1.2);
      or

            

    

     

    
      
         

      

      
        51

        
          

        

      

      
         

      

    

    

    
      	
              (b)  

            	
              there
      is any change in the legal and/or beneficial ownership of any of the
      shares in the Borrower or any Owner or the Manager which results in any
      such Security Party ceasing to be a wholly-owned direct or indirect
      Subsidiary of the Corporate Guarantor;
or

            

    

     

    
      	
              10.1.27  

            	
              Accounts: moneys are
      withdrawn from any of the Accounts other than in accordance with
      clause 14; or

            

    

     

    
      	
              10.1.28  

            	
              Listing: the shares of
      the Corporate Guarantor are de-listed or suspended from trading on, or
      cease to trade (whether temporarily for longer than ten (10) consecutive
      days, or permanently) on, the New York Stock Exchange;
  or

            

    

     

    
      	
              10.1.29  

            	
              Licences,
      etc:  any licence, authorisation, consent or approval at
      any time necessary to enable any Security Party to comply with its
      obligations under the Security Documents or the Underlying Documents is
      revoked or withheld or modified or is otherwise not granted or fails to
      remain in full force and effect or if any exchange control or other law or
      regulation shall exist which would make any transaction under the Security
      Documents or the Underlying Documents or the continuation thereof,
      unlawful or would prevent the performance by any Security Party of any
      term of any of the Security Documents or the Underlying Documents;
      or

            

    

     

    
      	
              10.1.30  

            	
              Material events: any
      other event occurs or circumstance arises which, in the reasonable opinion
      of the Agent (acting on the instructions of the Majority Banks), is likely
      materially and adversely to affect either (i) the ability of any
      Security Party to perform all or any of its obligations under or otherwise
      to comply with the terms of any of the Security Documents or (ii) the
      security created by any of the Security
  Documents.

            

    

     

    
      	
              10.2  

            	
              Acceleration

            

    

     

    The Agent
shall, if so requested by the Majority Banks, without prejudice to any other
rights of the Agent, at any time after the happening of an Event of Default by
notice to the Borrower:

     

    
      	
              10.2.1  

            	
              declare
      that the obligation of each Bank to make the Overdraft Facility and the
      Guarantee Facility available shall be terminated, whereupon the Overdraft
      Facility Limit and the Guarantee Facility Commitment shall be reduced to
      zero forthwith; and/or

            

    

     

    
      	
              10.2.2  

            	
              declare
      that the Overdraft and all interest and commissions accrued and all other
      sums payable under the Security Documents have become due and payable,
      whereupon the same shall, immediately or in accordance with the terms of
      such notice, become due and payable;
and/or

            

    

     

    
      	
              10.2.3  

            	
              make
      a demand on the Borrower pursuant to clause 8.4 for payment of cash
      collateral to the Account Bank for credit to the Cash Collateral Account
      forthwith and/or at any other time specified by the Agent (acting on the
      instructions of the Majority Banks), whereupon any such amount shall
      become due and payable immediately or in accordance with each such notice
      (it being understood that the Agent (acting on the instructions of the
      Majority Banks) shall be entitled to give multiple such notices for
      further payment of moneys by the Borrower to the Cash Collateral Account,
      at any time and from time to time following an Event of Default,
      notwithstanding that the Borrower may have complied with one or more
      earlier notices).

            

    

     

    
      
         

      

      
        52

        
          

        

      

      
         

      

    

    

    
      	
              10.3  

            	
              Demand
      basis

            

    

     

    If,
pursuant to clause 10.2.2, the Agent declares the Overdraft to be due and
payable on demand, the Agent may (and if so requested by the Majority Banks
shall) by written notice to the Borrower:

     

    
      	
              10.3.1  

            	
              call
      for repayment of the Overdraft on such date as may be specified whereupon
      the Overdraft shall become due and payable on the date so specified
      together with all interest and commissions accrued and all other sums
      payable under this Agreement; or

            

    

     

    
      	
              10.3.2  

            	
              withdraw
      such declaration with effect from the date specified in such
      notice.

            

    

     

    
      	
              10.4  

            	
              Negotiation
      with Beneficiaries after Default

            

    

     

    The
Borrower:

     

    
      	
              10.4.1  

            	
              irrevocably
      authorises the Agent (acting on the instructions of the Majority Banks)
      negotiate with any Beneficiary at any time after the occurrence of any
      Default with a view to arranging for the prepayment by the Issuing Bank,
      for the account of the Borrower, of any moneys outstanding under any L/C;
      and

            

    

     

    
      	
              10.4.2  

            	
              agrees
      that at any time after the occurrence of any Default the Issuing Bank
      shall be entitled (but not, so far as the Borrower is concerned, bound) to
      and, if directed by the Agent (acting on the instructions of the Majority
      Banks), it shall pay to a Beneficiary, in such manner and upon such terms
      as the Issuing Bank and the Beneficiary shall agree, any moneys
      outstanding under any L/C.

            

    

     

    
      	
              10.5  

            	
              Conversion
      into Dollars

            

    

     

    
      	
              10.5.1  

            	
              The
      Agent (acting on the instructions of all the Banks) may, following a
      notice given to the Borrower under clause 10.2, declare that the part (if
      any) of the Outstandings of the Banks which is then outstanding and/or
      denominated in one or more Optional Currencies, be converted into, and
      outstanding in, Dollars with effect from the date of conversion selected
      by the Agent (acting on the instructions of all the Banks in their
      discretion) and notified by the Agent to the Issuing Bank, the Banks and
      the Borrower.  In making such conversion the Agent shall use the
      Issuing Bank’s spot rate(s) of exchange referred to in clause 2.8 as of
      the date of such conversion (as advised to it by the Issuing Bank), and
      the amount of the Outstandings so converted and outstanding in Dollars
      shall be such amount of Dollars as is required for the purchase of the
      amount of the total Outstandings of all Banks in the relevant Optional
      Currencies by applying such rate(s) on the relevant date of
      conversion.

            

    

     

    
      	
              10.5.2  

            	
              With
      effect on and from the date when the conversion has taken place (as
      notified by the Agent to the Borrower, the Banks and the Issuing Bank
      pursuant to clause 10.5.1), all the Outstandings of all Banks shall be
      denominated in Dollars and the liabilities of the Borrower to the Banks,
      the Agent, the Security Agent and the Issuing Bank under this Agreement in
      respect of the Outstandings shall also be denominated and owing in
      Dollars.

            

    

     

    
      
         

      

      
        53

        
          

        

      

      
         

      

    

    

    
      	
              11  

            	
              Indemnities

            

    

     

    
      	
              11.1  

            	
              Miscellaneous
      indemnities

            

    

     

    The
Borrower shall on demand indemnify each Creditor, without prejudice to any of
such Creditor’s other rights under any of the Security Documents, against any
loss (including loss of Margin) or expense which such Creditor shall certify as
sustained or incurred by it as a consequence of:

     

    
      	
              11.1.1  

            	
              any
      default in payment of any sum under any of the Security Documents when
      due;

            

    

     

    
      	
              11.1.2  

            	
              the
      occurrence of any other Event of
Default;

            

    

     

    
      	
              11.1.3  

            	
              applying
      any sum standing to the credit of the Cash Collateral Account otherwise
      than on the last day of a deposit period relating
  thereto;

            

    

     

    
      	
              11.1.4  

            	
              any
      L/C not being issued for any reason (excluding any default by any
      Creditor) after the Issue Request for such L/C has been
    given,

            

    

     

    including,
in any such case, but not limited to, any loss or expense sustained or incurred
in maintaining or funding the Overdraft or any part thereof or any amount owing
under clauses 2.10.2 or 4.1.1 or in liquidating or re-employing deposits from
third parties acquired to effect or maintain the Overdraft or any part thereof
or any amount owing under clauses 2.10.2 or 4.1.1.

     

    
      	
              11.2  

            	
              Currency
      indemnity

            

    

     

    If any
sum due from the Borrower under any of the Security Documents or any order or
judgment given or made in relation thereto has to be converted from the currency
(the “first currency”)
in which the same is payable under the relevant Security Document or under such
order or judgment into another currency (the “second currency”) for the
purpose of:

     

    
      	
              11.2.1  

            	
              making
      or filing a claim or proof against the
Borrower;

            

    

     

    
      	
              11.2.2  

            	
              obtaining
      an order or judgment in any court or other tribunal;
  or

            

    

     

    
      	
              11.2.3  

            	
              enforcing
      any order or judgment given or made in relation to any of the Security
      Documents,

            

    

     

    the
Borrower shall indemnify and hold harmless each Creditor from and against any
loss suffered as a result of any difference between:

     

    
      	
              (a)  

            	
              the
      rate of exchange used for such purpose to convert the sum in question from
      the first currency into the second currency;
and

            

    

     

    
      
         

      

      
        54

        
          

        

      

      
         

      

    

    
      	
              (b)  

            	
              the
      rate or rates of exchange at which the relevant Creditor may in the
      ordinary course of business purchase the first currency with the second
      currency upon receipt of a sum paid to it in satisfaction, in whole or in
      part, of any such order, judgment, claim or
  proof.

            

    

     

    Any
amount due from the Borrower under this clause  shall be due as a separate
debt and shall not be affected by judgment being obtained for any other sums due
under or in respect of any of the Security Documents and the term “rate of exchange” includes any
premium and costs of exchange payable in connection with the purchase of the
first currency with the second currency.

     

    
      	
              11.3  

            	
              Environmental
      indemnity

            

    

     

    The
Borrower shall indemnify each Creditor on demand and hold it harmless from and
against all costs, expenses, payments, charges, losses, demands, liabilities,
actions, proceedings (whether civil or criminal), penalties, fines, damages,
judgements, orders, sanctions or other outgoings of whatever nature which may be
suffered, incurred or paid by, or made or asserted against such Creditor at any
time, whether before or after the repayment in full of principal and interest
under this Agreement, relating to, or arising directly or indirectly in any
manner or for any cause or reason whatsoever out of an Environmental Claim made
or asserted against such Creditor if such Environmental Claim would not have
been, or been capable of being, made or asserted against such Creditor if it had
not entered into any of the Security Documents and/or exercised any of its
rights, powers and discretions thereby conferred and/or performed any of its
obligations thereunder and/or been involved in any of the transactions
contemplated by the Security Documents.

     

    
      	
              12  

            	
              Unlawfulness
      and increased costs

            

    

     

    
      	
              12.1  

            	
              Unlawfulness

            

    

     

    If any
law, regulation or regulatory requirement or any judgment, order or direction of
any court, tribunal or authority binding upon the Issuing Bank, the Account Bank
or, as the case may be, a Bank in the jurisdiction in which it is formed or has
its principal or lending office or in which any action is required to be
performed by it for the purposes of this Agreement (whether or not in force
before the date of this Agreement):

     

    
      	
              12.1.1  

            	
              renders
      it unlawful for the Issuing Bank to issue any or any further L/Cs, or for
      a Bank to perform its obligations under clauses 2.14.1 or 4.2.1 in respect
      of any further L/Cs to be issued by the Issuing Bank, the Issuing Bank or
      (as the case may be) the relevant Bank shall promptly inform the Agent and
      the Agent shall notify the Borrower, and the obligations of the Issuing
      Bank to issue any or any further L/Cs under this Agreement shall forthwith
      terminate and the Borrower shall within ten (10) Banking Days after such
      notice pay to the Account Bank for credit to the Illegality Security
      Account for each issued and outstanding L/C, an amount (in the currency of
      the relevant L/C) equal to the difference between (a) the Outstanding
      Amount of such L/C and (b) the amount then standing to the credit of the
      Illegality Security Account for that L/C (less any amount already standing
      to the credit of such account as a result of a previous payment in respect
      of a Bank pursuant to this clause 12.1);
or

            

    

     

    
      	
              12.1.2  

            	
              renders
      it unlawful for a Bank to perform its obligations under clauses 2.14.1 or
      4.2.1 in respect of any L/C which has previously been opened, then that
      Bank shall promptly inform the Agent and the Agent shall notify the
      Borrower, and the Borrower shall within ten (10) Banking Days after such
      notice pay to the Account Bank for credit to the Illegality Security
      Account for each issued and outstanding L/C an amount (and in the currency
      of the relevant L/C) equal to such Bank's Percentage of the difference
      between (a) the Outstanding Amount of such L/C and (b) the amount then
      standing to the credit of the Illegality Security Account for such L/C
      (less any amount standing to the credit of such account as a result of
      payment in respect of another Bank under this clause 12.1.2);
      or

            

    

     

    
      
         

      

      
        55

        
          

        

      

      
         

      

    

    
      	
              12.1.3  

            	
              renders
      it unlawful for the Account Bank to maintain or fund the Overdraft, the
      Account Bank shall promptly inform the Agent and the Agent shall forthwith
      notify the Borrower.  If it shall so be unlawful for the Account
      Bank to maintain or fund the Overdraft, the Account Bank shall promptly
      inform the Agent and the Agent shall notify the Borrower and the
      obligation of the Banks to make the Overdraft Facility available, shall
      forthwith terminate and the Agent shall, at the request and on behalf of
      the Account Bank, give notice to the Borrower requiring the Borrower to
      prepay the Overdraft either (a) forthwith or (b) on a future specified
      date and the Borrower shall prepay the Overdraft in full in accordance
      with and subject to such notice; or

            

    

     

    
      	
              12.1.4  

            	
              renders
      it unlawful for a Bank to perform its obligations under clauses 2.14.2 or
      4.2.2, that Bank shall promptly inform the Agent and the Agent shall
      notify the Borrower accordingly and the Overdraft Facility Limit shall be
      reduced forthwith by an amount equal to the Percentage of such Bank over
      the Overdraft Facility Limit.

            

    

     

    If the
Borrower has made the payment to one or more Illegality Security Accounts
required of it in respect of an L/C under clause 12.1.2, the Percentage of the
Bank in respect of which such payment was made of the liabilities of the Banks
for such L/C shall be reduced to zero.  To the extent that the
Borrower has not made such payment, such Bank shall continue to be liable to the
Issuing Bank under clauses 2.14.1 and 4.2.1 for an amount equal to its
Percentage of such L/C less the amount of any such payment by the Borrower to
the relevant Illegality Security Account for such L/C.  For the
avoidance of doubt, the reduction of the “Percentage” of a Bank under this
paragraph shall be made only in connection with a specific L/C as referred to
above and only for the purpose of the calculation of the commissions under
clauses 5.1.3 and 5.1.4 for such L/C and also for the purpose of any indemnities
given under this Agreement by that Bank to the Issuing Bank in connection with
such L/C or in relation to the Guarantee Facility but insofar as such
indemnities relate to the relevant L/C for which moneys have been paid to an
Illegality Security Account in respect of that Bank under clause
12.1.2.

     

    
      	
              12.2  

            	
              Increased
      costs

            

    

     

    If the
result of any change in, or in the interpretation or application of, or the
introduction of, any law or any regulation, request or requirement (whether or
not having the force of law, but, if not having the force of law, with which a
Bank or the Issuing Bank or the Account Bank or, as the case may be, their
respective holding company habitually complies), including (without limitation)
those relating to Taxation, capital adequacy, liquidity, reserve assets, cash
ratio deposits and special deposits, is to:

     

    
      	
              12.2.1  

            	
              subject
      any Bank or the Issuing Bank or the Account Bank to Taxes or change the
      basis of Taxation of such Bank or the Issuing Bank or the Account Bank
      with respect to any payment under any of the Security Documents (other
      than Taxes or Taxation on the overall net income, profits or gains of such
      Bank or the Issuing Bank or the Account Bank imposed in the jurisdiction
      in which its principal or lending office under this Agreement is located);
      and/or

            

    

     

    
      	
              12.2.2  

            	
              increase
      the cost to, or impose an additional cost on (a) a Bank or the Account
      Bank or their respective holding company in maintaining or funding all or
      part of the Overdraft or any amounts owing under clauses 2.10.2 or 4.1.1
      or 4.2 or (b) the Issuing Bank or its holding company in making or keeping
      available its obligation to issue any L/C or to maintain or fund all or
      part of any amounts owing under clauses 2.10.2 or 4.1.1 or 4.2;
      and/or

            

    

     

    
      	
              12.2.3  

            	
              reduce
      the amount payable or the effective return to a Bank or the Issuing Bank
      or the Account Bank under any of the Security Documents;
      and/or

            

    

     

    
      	
              12.2.4  

            	
              reduce
      a Bank’s or the Issuing Bank’s or the Account Bank’s or their respective
      holding company’s rate of return on its overall capital by reason of a
      change in the manner in which it is required to allocate capital resources
      to such Bank’s or the Issuing Bank’s or the Account Bank’s obligations
      under any of the Security Documents;
and/or

            

    

     

    
      
         

      

      
        56

        
          

        

      

      
         

      

    

    
      	
              12.2.5  

            	
              require
      a Bank or the Issuing Bank or the Account Bank or their respective holding
      company to make a payment or forego a return on or calculated by reference
      to any amount received or receivable by such Bank or the Issuing Bank or
      the Account Bank under any of the Security Documents;
    and/or

            

    

     

    
      	
              12.2.6  

            	
              require
      a Bank or the Issuing Bank or the Account Bank or their respective holding
      company to incur or sustain a loss (including a loss of future potential
      profits) by reason of being obliged to deduct, all or part of the
      Overdraft or any amount owing under clauses 2.10.2, 4.1.1 or 4.2, all or
      part of the amount that will be guaranteed by an L/C when it is issued or
      the Outstanding Amount or any amount owing under clauses 2.10.2, 4.1.1 or
      4.2, from its capital for regulatory
purposes,

            

    

     

    then and
in each such case (subject to clause ):

     

    
      	
              (a)  

            	
              such
      Bank or the Issuing Bank, as the case may be, the Account Bank shall
      (through the Agent) notify the Borrower in writing of such event promptly
      upon its becoming aware of the same;
and

            

    

     

    
      	
              (b)  

            	
              the
      Borrower shall on demand pay to the Agent for the account of such Bank or
      the Issuing Bank, as the case may be, the Account Bank the amount which
      such Bank, Account Bank or, as the case may be, the Account Bank specifies
      (in a certificate setting forth the basis of the computation of such
      amount but not including any matters which such Bank or the Issuing Bank
      or, as the case may be, the Account Bank or their respective holding
      company regards as confidential)  is required to compensate such
      Bank and/or the Issuing Bank and/or the Account Bank and/or (as the case
      may be) their respective holding company for such liability to Taxes,
      cost, reduction, payment , forgone return or
  loss.

            

    

     

    For the
purposes of this clause  and clause 12.4 “holding company” means, in
relation to a Bank or the Issuing Bank or the Account Bank, the company or
entity (if any) within the consolidated supervision of which such Bank or the
Issuing Bank or, as the case may be, the Account Bank is included.

     

    
      	
              12.3  

            	
              Exception

            

    

     

    Nothing
in clause  shall entitle a Bank or the Issuing Bank or the Account Bank to
receive any amount in respect of compensation for any such liability to Taxes,
increased or additional cost, reduction, payment, foregone return or loss to the
extent that the same is the subject of an additional payment under clause
..

     

    
      	
              13  

            	
              Security,
      set-off and pro-rata payments

            

    

     

    
      	
              13.1  

            	
              Application
      of moneys

            

    

     

    All
moneys received by the Agent and/or the Security Agent under or pursuant to any
of the Security Documents and expressed to be applicable in accordance with the
provisions of this clause  shall be applied in the following
manner:

     

    
      	
              13.1.1  

            	
              first,
      in or towards payment of all unpaid costs and expenses which may be owing
      to the Creditors or any of them under any of the Security
      Documents;

            

    

     

    
      	
              13.1.2  

            	
              secondly,
      in or towards payment, on a pro rata basis, of any unpaid fees and
      commissions payable to the Creditors or any of
  them;

            

    

     

    
      	
              13.1.3  

            	
              thirdly,
      in or towards payment, on a pro rata basis, of any arrears of interest
      owing in respect of the Overdraft or any part thereof or in respect of the
      Guarantee Facility (including under clause
  4.1.1);

            

    

     

    
      
         

      

      
        57

        
          

        

      

      
         

      

    

    
      	
              13.1.4  

            	
              fourthly,
      in or towards repayment, on a pro rata basis, of any amounts of principal
      in respect of the Overdraft (including any part of the Margin payable by
      the Account Bank to the Agent for the account of the Banks under clause
      5.5) or in respect of the Guarantee Facility (including under clause
      4.1.1) (whether the same is due and payable or
  not);

            

    

     

    
      	
              13.1.5  

            	
              fifthly,
      in or towards payment to the Cash Collateral Account of any amounts so
      payable pursuant to the terms of this Agreement or the other Security
      Documents;

            

    

     

    
      	
              13.1.6  

            	
              sixthly,
      in or towards payment to any Bank for any loss suffered by reason of any
      payment in respect of principal not being effected on an Interest Payment
      Date relating to the part of the principal so repaid and which amounts are
      so payable under this Agreement;

            

    

     

    
      	
              13.1.7  

            	
              seventhly,
      in or towards payment to any Creditor of any other sums owing to it under
      any of the Security Documents; and

            

    

     

    
      	
              13.1.8  

            	
              eighthly,
      the surplus (if any) shall be paid to the Borrower or to whomsoever else
      may be entitled to receive such
surplus,

            

    

     

    Provided
however that amounts standing to the credit of an Illegality Security Account
shall be applied first, in accordance with clause 14.8 and, if there is a
surplus following such application, secondly, and as to such surplus, in
accordance with the order specified in this clause 13.1 above.

     

    
      	
              13.2  

            	
              Set-off

            

    

     

    The
Borrower authorises each Creditor (without prejudice to any of such Creditor’s
rights at law, in equity or otherwise), at any time and without notice to the
Borrower, to apply any credit balance to which the Borrower is then entitled
standing upon any account of the Borrower with any branch of such Creditor in or
towards satisfaction of any sum due and payable from the Borrower to such
Creditor under any of the Security Documents.  For this purpose, each
Creditor is authorised to purchase with the moneys standing to the credit of
such account such other currencies as may be necessary to effect such
application.  No Creditor shall be obliged to exercise any right given
to it by this clause .  Each Creditor shall notify the Agent and
the Borrower forthwith upon the exercise or purported exercise of any right of
set-off giving full details in relation thereto and the Agent shall inform the
other Creditors.  Nothing in this clause  shall be effective
to create a charge or other Encumbrance.

     

    
      	
              13.3  

            	
              Pro
      rata payments

            

    

     

    
      	
              13.3.1  

            	
              If
      at any time any Bank (the “Recovering Bank”)
      receives or recovers any amount owing to it by the Borrower under this
      Agreement by direct payment, set-off or in any manner other than by
      payment through the Agent pursuant to clause  or 6.9 (not being, in
      the case of a Bank, a payment received from a Transferee Bank or a
      sub-participant in such Bank’s participation under this Agreement or any
      other payment of an amount due to the Recovering Bank for its sole account
      pursuant to clauses , 5, , , , , or ) the Recovering Bank shall, within
      two (2) Banking Days of such receipt or recovery (a “Relevant Receipt”)
      notify the Agent of the amount of the Relevant Receipt. If the Relevant
      Receipt exceeds the amount which the Recovering Bank would have received
      if the Relevant Receipt had been received by the Agent and distributed
      pursuant to clauses  or 6.9 (as the case may be)
      then:

            

    

     

    
      	
              (a)  

            	
              within
      two (2) Banking Days of demand by the Agent, the Recovering Bank shall pay
      to the Agent an amount equal (or equivalent) to the
  excess;

            

    

     

    
      	
              (b)  

            	
              the
      Agent shall treat the excess amount so paid by the Recovering Bank as if
      it were a payment made by the Borrower and shall distribute the same to
      the Banks (other than the Recovering Bank) in accordance with clause 6.9;
      and

            

    

     

    
      
         

      

      
        58

        
          

        

      

      
         

      

    

    
      	
              (c)  

            	
              as
      between the Borrower and the Recovering Bank the excess amount so
      re-distributed shall be treated as not having been paid but the
      obligations of the Borrower to the other Banks shall, to the extent of the
      amount so re-distributed to them, be treated as
  discharged.

            

    

     

    
      	
              13.3.2  

            	
              If
      any part of the Relevant Receipt subsequently has to be wholly or partly
      refunded by the Recovering Bank (whether to a liquidator or otherwise)
      each Bank to which any part of such Relevant Receipt was so re-distributed
      shall on request from the Recovering Bank repay to the Recovering Bank
      such Bank’s pro-rata share of the amount which has to be refunded by the
      Recovering Bank.

            

    

     

    
      	
              13.3.3  

            	
              Each
      Bank shall on request supply to the Agent such information as the Agent
      may from time to time request for the purpose of this
      clause 13.3.

            

    

     

    
      	
              13.3.4  

            	
              Notwithstanding
      the foregoing provisions of this clause , no Recovering Bank shall be
      obliged to share any Relevant Receipt which it receives or recovers
      pursuant to legal proceedings taken by it to recover any sums owing to it
      under this Agreement with any other party which has a legal right to, but
      does not, either join in such proceedings or commence and diligently
      pursue separate proceedings to enforce its rights in the same or another
      court (unless the proceedings instituted by the Recovering Bank are
      instituted by it without prior notice having been given to such party
      through the Agent).

            

    

     

    
      	
              13.4  

            	
              No
      release

            

    

     

    For the
avoidance of doubt it is hereby declared that failure by any Recovering Bank to
comply with the provisions of clause  shall not release any other
Recovering Bank from any of its obligations or liabilities under
clause 13.3.

     

    
      	
              13.5  

            	
              No
      charge

            

    

     

    The
provisions of this clause 13 shall not, and shall not be construed so as
to, constitute a charge by a Bank over all or any part of a sum received or
recovered by it in the circumstances mentioned in clause 13.3.

     

    
      	
              13.6  

            	
              Further
      assurance

            

    

     

    The
Borrower undertakes with the Creditors that the Security Documents shall both at
the date of execution and delivery thereof and so long as any moneys are owing
under any of the Security Documents be valid and binding obligations of the
respective parties thereto and rights of the Agent and the other Creditors
enforceable in accordance with their respective terms and that it will, at its
expense, execute, sign, perfect and do and will procure the execution, signing,
perfecting and doing by each of the other Security Parties of, any and every
such further assurance, document, act or thing as in the reasonable opinion of
the Agent may be necessary or desirable for perfecting the security contemplated
or constituted by the Security Documents.

     

    
      	
              13.7  

            	
              Conflicts

            

    

     

    In the
event of any conflict between this Agreement and any of the other Borrower’s
Security Documents, the provisions of this Agreement shall prevail.

     

    
      	
              14  

            	
              Accounts

            

    

     

    
      	
              14.1  

            	
              General

            

    

     

    The
Borrower undertakes with each Creditor that:

     

    
      	
              14.1.1  

            	
              on
      or before the date of this Agreement, it will open the Operating Account,
      the Overdraft Account and the Cash Collateral
  Account;

            

    

     

    
      
         

      

      
        59

        
          

        

      

      
         

      

    

    
      	
              14.1.2  

            	
              on
      or before the date of this Agreement, it will procure that the Manager
      will open the Manager’s Operating
Account;

            

    

     

    
      	
              14.1.3  

            	
              it
      will procure that all moneys payable to each Owner in respect of the
      Earnings of such Owner’s Ship shall, unless and until the Security Agent
      directs to the contrary pursuant to the provisions of the relevant Deed of
      Covenant, be paid at all times to the Manager’s Operating Account;
      and

            

    

     

    
      	
              14.1.4  

            	
              it
      will procure that all Receivables shall be paid at all times to the
      Operating Account.

            

    

     

    
      	
              14.2  

            	
              Borrower’s
      Accounts: withdrawals

            

    

     

    The
Borrower shall not be entitled to withdraw moneys from any of its own Accounts
provided however that, unless and until a Default shall occur and the Agent
(acting on the instructions of the Majority Banks) shall direct to the
contrary:

     

    
      	
              14.2.1  

            	
              the
      Borrower may withdraw moneys from the Overdraft Account for the purposes
      specified in clause 1.1.1 subject always to clause
    8.1.3(b);

            

    

     

    
      	
              14.2.2  

            	
              the
      Borrower may withdraw moneys from the Cash Collateral Account for any
      purpose not expressly prohibited by the terms of this Agreement or any
      other Security Document provided that there are and, following any such
      withdrawal, there will be sufficient funds in the Cash Collateral Account
      to ensure that the Borrower is in compliance with this Agreement;
      and

            

    

     

    
      	
              14.2.3  

            	
              the
      Borrower may withdraw moneys from the Operating Account only for the
      following purposes:

            

    

     

    
      	
              (a)  

            	
              to
      make payments to the credit of the Cash Collateral Account;
      and

            

    

     

    
      	
              (b)  

            	
              provided
      that there are and, following any such withdrawal there will be,
      sufficient funds in the Cash Collateral Account to ensure that the
      Borrower is in compliance with this Agreement;
  and

            

    

     

    
      	
              (c)  

            	
              for
      any other purpose not expressly prohibited by the terms of this Agreement
      or the other Security Documents.

            

    

     

    
      	
              14.3  

            	
              Interest

            

    

     

    Amounts
standing to the credit of each Account of the Borrower (other than the Overdraft
Account) shall bear interest at the rate (unless otherwise agreed between the
Account Bank and the Borrower) which is certified by the Account Bank to the
Borrower to be the rate quoted by the Account Bank to its customers for deposits
in the relevant account currency or currencies for such period as the Account
Bank may determine and in an amount comparable with the amount for the time
being standing to the credit of that Account, such interest to be credited to
such Account at the expiry of each such period of deposit and to accrue from day
to day and to be calculated on the basis of a three hundred and sixty (360) day
year and the actual number of days elapsed Provided however that the
Overdraft Account shall be a non-interest bearing account.

     

    
      	
              14.4  

            	
              Set-off

            

    

     

    Without
in any way affecting the rights of the Creditors under clause 13.2, upon the
occurrence of a Default or at any time thereafter the Agent (acting on the
instructions of the Majority Banks)  shall be entitled (but not
obliged) to instruct the Account Bank to set-off and apply all sums standing to
the credit of any Account of the Borrower and accrued interest (if any) thereon
without notice to the Borrower in the manner specified in
clause 13.1.

     

    
      
         

      

      
        60

        
          

        

      

      
         

      

    

    
      	
              14.5  

            	
              Deductions

            

    

     

    The Agent
(acting on the instructions of the Majority Banks) shall be entitled (but not
obliged) at any time to instruct the Account Bank to deduct from the balance for
the time being standing to the credit of any Account of the Borrower all other
moneys which may fall due to be paid to the Creditors or any of them under the
terms of this Agreement and the other Security Documents or otherwise howsoever
in connection with the Aggregate Liabilities.

     

    
      	
              14.6  

            	
              Pledging
      of Accounts

            

    

     

    The
Accounts and all amounts from time to time standing to the credit thereof shall
be subject to the security constituted and the rights conferred by the Account
Pledges.

     

    
      	
              14.7  

            	
              Illegality
      Security Accounts

            

    

     

    The Agent
shall, at such time as it considers appropriate or following a request by the
Issuing Bank (and it is hereby irrevocably authorised by the Borrower to),
instruct the Account Bank to open in its books an Illegality Security Account in
relation to each L/C to which shall be credited all sums required to be paid to
the Account Bank under clause 12.1 for credit to the Illegality Security Account
for such L/C and the Borrower undertakes to execute on demand by the Agent an
Illegality Security Account Pledge for such account.

     

    
      	
              14.8  

            	
              Payments
      out of Illegality Security Accounts

            

    

     

    The Agent
shall (and it is hereby irrevocably authorised by the Borrower to) instruct the
Account Bank to pay to the Issuing Bank and debit to the Illegality Security
Account for an L/C, on the date on which the Issuing Bank makes any payment to
the relevant Customer under an L/C, an amount equal to the amount of such
payment (or the amount standing to the credit of such Illegality Security
Account, if less).

     

    
      	
              14.9  

            	
              Payments
      into Illegality Security Accounts

            

    

     

    Any
amount which the Borrower has paid to the Account Bank for credit to an
Illegality Security Account pursuant to clause 12.1 shall be applied solely in
or towards the discharge of the obligations of the Borrower which, but for such
payment, would have fallen to be satisfied by the Bank in respect of which the
Borrower has paid that amount for credit to such Illegality Security
Account.  However, the payment of funds to the credit of an Illegality
Security Account in respect of a Bank (and any application thereof under clause
14.8), shall not affect the obligations of the other Banks to the Issuing Bank
under this Agreement in respect of the L/C relevant to such account or the
Guarantee Facility or any relevant claims of the Issuing Bank against such other
Banks.

     

    
      	
              15  

            	
              Assignment,
      transfer
and lending office

            

    

     

    
      	
              15.1  

            	
              Benefit
      and burden

            

    

     

    This
Agreement shall be binding upon, and enure for the benefit of, the Creditors and
the Borrower and their respective successors in title.

     

    
      	
              15.2  

            	
              No
      assignment by Borrower

            

    

     

    The
Borrower may not assign or transfer any of its rights or obligations under this
Agreement.

     

    
      
         

      

      
        61

        
          

        

      

      
         

      

    

    

     

    
      	
              15.3  

            	
              Transfers
      by Banks

            

    

     

    Subject
to the prior written consent of the Agent (such consent not to be unreasonably
withheld), any Bank (the “Transferor Bank”) may at any
time cause all or any part of its rights, benefits and/or obligations under this
Agreement and the Security Documents to be transferred to any other bank or
financial institution (a “Transferee Bank”) by
delivering to the Agent a Transfer Certificate duly completed and duly executed
by the Transferor Bank and the Transferee Bank.  No such transfer is
binding on, or effective in relation to, the Borrower or the Agent unless (i) it
is effected or evidenced by a Transfer Certificate which complies with the
provisions of this clause  and is signed by or on behalf of the Transferor
Bank, the Transferee Bank and the Agent (on behalf of itself, the Borrower and
the other Creditors) and (ii) such transfer of rights under the other Security
Documents as the Agent or the Transferee Bank may deem necessary has been
effected and registered.  Upon signature of any such Transfer
Certificate by the Agent, which signature shall be effected as promptly as is
practicable after such Transfer Certificate has been delivered to the Agent, and
subject to the terms of such Transfer Certificate, such Transfer Certificate
shall have effect as set out below.

     

    The
following further provisions shall have effect in relation to any Transfer
Certificate:

     

    
      	
              15.3.1  

            	
              a
      Transfer Certificate may be in respect of a Bank’s rights in respect of
      all, or part of, its rights and obligations under this
      Agreement;

            

    

     

    
      	
              15.3.2  

            	
              a
      Transfer Certificate shall only be in respect of rights and obligations of
      the Transferor Bank in its capacity as a Bank and shall not transfer its
      rights and obligations as the Agent, or in any other capacity, as the case
      may be and such other rights and obligations may only be transferred in
      accordance with any applicable provisions of this
    Agreement;

            

    

     

    
      	
              15.3.3  

            	
              a
      Transfer Certificate shall take effect in accordance with English law as
      follows:

            

    

     

    
      	
              (a)  

            	
              to
      the extent specified in the Transfer Certificate, the Transferor Bank’s
      payment rights and all its other rights (other than those referred to in
      clause 15.3.2 above) under this Agreement are assigned to the Transferee
      Bank absolutely, free of any defects in the Transferor Bank’s title and of
      any rights or equities which the Borrower had against the Transferor
      Bank;

            

    

     

    
      	
              (b)  

            	
              the
      Transferor Bank’s obligations are discharged to the extent specified in
      the Transfer Certificate;

            

    

     

    
      	
              (c)  

            	
              the
      Transferee Bank becomes a Bank with a Percentage specified in the Transfer
      Certificate;

            

    

     

    
      	
              (d)  

            	
              the
      Transferee Bank becomes bound by all the provisions of this Agreement and
      the Security Documents which are applicable to the Banks generally,
      including those about pro-rata sharing and the exclusion of liability on
      the part of, and the indemnification of, the Agent, the Security Agent and
      the Arranger in accordance with the provisions of clause 16 and to the
      extent that the Transferee Bank becomes bound by those provisions, the
      Transferor Bank ceases to be bound by
them;

            

    

     

    
      	
              (e)  

            	
              a
      payment which the Transferee Bank makes under this Agreement after the
      Transfer Certificate comes into effect ranks in point of priority and
      security in the same way as it would have ranked had it been made by the
      Transferor Bank, assuming that any defects in the Transferor Bank’s title
      and any rights or equities of any Security Party against the Transferor
      Bank had not existed; and

            

    

     

    
      
         

      

      
        62

        
          

        

      

      
         

      

    

    

    
      	
              (f)  

            	
              the
      Transferee Bank becomes entitled to all the rights under this Agreement
      which are applicable to the Banks generally, including but not limited to
      those relating to the Majority Banks and those under clauses 3.6, 5 and 12
      and to the extent that the Transferee Bank becomes entitled to such
      rights, the Transferor Bank ceases to be entitled to
  them;

            

    

     

    
      	
              15.3.4  

            	
              the
      rights and equities of the Borrower or of any other Security Party
      referred to above include, but are not limited to, any right of set-off
      and any other kind of cross-claim;
and

            

    

     

    
      	
              15.3.5  

            	
              the
      Borrower, the Account Bank, the Security Agent, the Issuing Bank and the
      Banks hereby irrevocably authorise and instruct the Agent to sign any such
      Transfer Certificate on their behalf and undertake not to withdraw, revoke
      or qualify such authority or instruction at any time.  Promptly
      upon its signature of any Transfer Certificate, the Agent shall notify the
      Borrower, the Transferor Bank, the Transferee Bank and the other
      Creditors.

            

    

     

    
      	
              15.4  

            	
              Reliance
      on Transfer Certificate

            

    

     

    
      	
              15.4.1  

            	
              The
      Agent shall be entitled to rely on any Transfer Certificate believed by it
      to be genuine and correct and to have been presented or signed by the
      persons by whom it purports to have been presented or signed, and shall
      not be liable to any of the parties to this Agreement and the Security
      Documents for the consequences of such
reliance.

            

    

     

    
      	
              15.4.2  

            	
              The Agent shall
      at all times during the continuation of this Agreement maintain a register
      in which it shall record the name, Percentages and administrative details
      (including the lending office) from time to time of the Banks holding a
      Transfer Certificate and the date at which the transfer referred to in
      such Transfer Certificate held by each Bank was transferred to such Bank,
      and the Agent shall make the said register available for inspection by any
      Bank, the Issuing Bank and the Account Bank or the Borrower during normal
      banking hours upon receipt by the Agent of reasonable prior notice
      requesting the Agent to do so.

            

    

     

    
      	
              15.4.3  

            	
              The
      entries on the said register shall, in the absence of manifest error, be
      conclusive in determining the identities, the Percentages and the Transfer
      Certificates held by the Banks from time to time and the principal amounts
      of such Transfer Certificates and may be relied upon by the Agent and the
      other Security Parties for all purposes in connection with this Agreement
      and the Security Documents.

            

    

     

    
      	
              15.5  

            	
              Transfer
      fees and expenses

            

    

     

    If any
Bank causes the transfer of all or any part of its rights, benefits and/or
obligations under the Security Documents, it shall pay to the Agent and/or the
Security Agent on demand all costs, fees and expenses (including, but not
limited to, legal fees and expenses), and all value added tax thereon, verified
by the Agent or, as the case may be, the Security Agent as having been incurred
by it or any other Creditor in connection with such transfer.

     

    
      	
              15.6  

            	
              Documenting
      transfers

            

    

     

    If any
Bank assigns all or any part of its rights or transfers all or any part of its
rights, benefits and/or obligations as provided in clauses , the Borrower
undertakes, immediately on being requested to do so by the Agent and at the cost
of the Transferor Bank, to enter into, and procure that the other Security
Parties shall (at the cost of the relevant Transferor Bank) enter into, such
documents as may be necessary or desirable to transfer to the Transferee Bank,
all or the relevant part of such Bank’s interest in the Security Documents and
all relevant references in this Agreement to such Bank shall thereafter be
construed as a reference to the Transferor Bank and/or its Transferee Bank (as
the case may be) to the extent of their respective interests.

     

    
      
         

      

      
        63

        
          

        

      

      
         

      

    

    

     

    
      	
              15.7  

            	
              Sub-participation

            

    

     

    A Bank
may sub-participate all or any part of its rights and/or obligations under the
Security Documents without the consent of, or notice to, the
Borrower.

     

    
      	
              15.8  

            	
              Lending
      office

            

    

     

    Each Bank
shall lend through its office at the address specified in schedule 1 or, as
the case may be, in any relevant Transfer Certificate or through any other
office of such Bank selected from time to time by it through which such Bank
wishes to lend for the purposes of this Agreement.  If the office
through which a Bank is lending is changed pursuant to this clause , such
Bank shall notify the Agent promptly of such change and the Agent shall notify
the Borrower, the Security Agent, the Account Bank, the Issuing Bank and the
other Banks.

     

    
      	
              15.9  

            	
              Disclosure
      of information

            

    

     

    A Bank
may (having obtained the consents required (if any) by clause 15.3) disclose to
a prospective Transferee Bank or to any other bank or financial institution who
may propose entering into contractual relations with such Bank in relation to
this Agreement such information about the Borrower or the other Security Parties
as such Bank shall consider appropriate.

     

    
      	
              16  

            	
              Arranger,
      Agent, Security Agent and Reference
Banks

            

    

     

    
      	
              16.1  

            	
              Appointment
      of the Agent

            

    

     

    Each
Bank, the Issuing Bank and the Account Bank irrevocably appoints the Agent as
its agent for the purposes of this Agreement and such of the Security Documents
to which it may be appropriate for the Agent to be party. By virtue of such
appointment, each of the Banks, the Issuing Bank and the Account Bank hereby
authorises the Agent:

     

    
      	
              16.1.1  

            	
              to
      execute such documents as may be approved by the Majority Banks for
      execution by the Agent; and

            

    

     

    
      	
              16.1.2  

            	
              (whether
      or not by or through employees or agents) to take such action on such
      Bank’s, the Issuing Bank’s or the Account Bank’s behalf and to exercise
      such rights, remedies, powers and discretions as are specifically
      delegated to the Agent by this Agreement and/or any other Security
      Document, together with such powers and discretions as are reasonably
      incidental thereto.

            

    

     

    
      	
              16.2  

            	
              Agent’s
      actions

            

    

     

    Any
action taken by the Agent under or in relation to this Agreement or any of the
other Security Documents whether with requisite authority or on the basis of
appropriate instructions, received from the Banks and/or the Issuing Bank and/or
the Account Bank (or as otherwise duly authorised) shall be binding on all the
Banks, the Issuing Bank and the Account Bank.

     

    
      	
              16.3  

            	
              Agent’s
      duties

            

    

     

    The Agent shall:

     

    
      	
              16.3.1  

            	
              promptly
      notify each Bank, the Issuing Bank and the Account Bank of the contents of
      each notice, certificate or other document received by it from the
      Borrower under or pursuant to clauses .1, .5 and .6;
    and

            

    

     

    
      
         

      

      
        64

        
          

        

      

      
         

      

    

    

    
      	
              16.3.2  

            	
              (subject
      to the other provisions of this clause 16) take (or instruct the
      Security Agent to take) such action or, as the case may be, refrain from
      taking (or authorise the Security Agent to refrain from taking) such
      action with respect to the exercise of any of its rights, remedies, powers
      and discretions as agent, as the Majority Banks may
  direct.

            

    

     

    
      	
              16.4  

            	
              Agent’s
      rights

            

    

     

    The Agent
may:

     

    
      	
              16.4.1  

            	
              in
      the exercise of any right, remedy, power or discretion in relation to any
      matter, or in any context, not expressly provided for by this Agreement or
      any of the other Security Documents, act or, as the case may be, refrain
      from acting (or authorise the Security Agent to act or refrain from
      acting) in accordance with the instructions of the Banks and/or the
      Issuing Bank and/or the Account Bank, and shall be fully protected in so
      doing;

            

    

     

    
      	
              16.4.2  

            	
              unless
      and until it shall have received directions from the Majority Banks, take
      such action or, as the case may be, refrain from taking such action (or
      authorise the Security Agent to take or refrain from taking such action)
      in respect of a Default of which the Agent has actual knowledge as it
      shall deem advisable in the best interests of the Banks, the Issuing Bank
      and the Account Bank (but shall not be obliged to do
  so);

            

    

     

    
      	
              16.4.3  

            	
              refrain
      from acting (or authorise the Security Agent to refrain from acting) in
      accordance with any instructions of the Banks and/or the Issuing Bank
      and/or the Account Bank to institute any legal proceedings arising out of
      or in connection with this Agreement or any of the other Security
      Documents until it and/or the Security Agent has been indemnified and/or
      secured to its satisfaction against any and all costs, expenses or
      liabilities (including legal fees) which it would or might incur as a
      result;

            

    

     

    
      	
              16.4.4  

            	
              deem
      and treat each Bank as the person entitled to the benefit of any amounts
      owing to such Bank under clause 4.1.1 for all purposes of this Agreement
      unless and until a notice shall have been filed with the Agent pursuant to
      clause 15.3 and shall have become effective, and (iii) the office set
      opposite the name of each of the Banks in schedule 1 as such Bank’s
      lending office under this Agreement unless and until a written notice of
      change of lending office shall have been received by the Agent and the
      Agent may act upon any such notice unless and until the same is superseded
      by a further such notice;

            

    

     

    
      	
              16.4.5  

            	
              rely
      as to matters of fact which might reasonably be expected to be within the
      knowledge of any Security Party upon a certificate signed by any director
      or officer of the relevant Security Party on behalf of the relevant
      Security Party; and

            

    

     

    
      	
              16.4.6  

            	
              do
      anything which is in its opinion necessary or desirable to comply with any
      law or regulation in any
jurisdiction.

            

    

     

    
      
         

      

      
        65

        
          

        

      

      
         

      

    

    

    
      	
              16.5  

            	
              No
      liability of Arranger or Agent

            

    

     

    Neither
the Arranger nor the Agent nor any of their respective employees and agents
shall:

     

    
      	
              16.5.1  

            	
              be
      obliged to make any enquiry as to the use of any of the proceeds of the
      Overdraft Facility or the use of any L/C issued unless (in the case of the
      Agent) so required in writing by a Bank, in which case the Agent shall
      promptly make the appropriate request to the Borrower;
  or

            

    

     

    
      	
              16.5.2  

            	
              be
      obliged to make any enquiry as to any breach or default by the Borrower or
      any other Security Party in the performance or observance of any of the
      provisions of this Agreement or any of the other Security Documents or as
      to the existence of a Default unless (in the case of the Agent) the Agent
      has actual knowledge thereof or has been notified in writing thereof by a
      Bank, the Issuing Bank or the Account Bank, in which case the Agent shall
      promptly notify the Banks, the Issuing Bank and the Account Bank of the
      relevant event or circumstance; or

            

    

     

    
      	
              16.5.3  

            	
              be
      obliged to enquire whether or not any representation or warranty made by
      the Borrower or any other Security Party pursuant to this Agreement or any
      of the other Security Documents is true;
or

            

    

     

    
      	
              16.5.4  

            	
              be
      obliged to do anything (including, without limitation, disclosing any
      document or information) which would, or might in its opinion, be contrary
      to any law or regulation or be a breach of any duty of confidentiality or
      otherwise be actionable or render it liable to any person;
    or

            

    

     

    
      	
              16.5.5  

            	
              be
      obliged to account to any Bank, the Issuing Bank or the Account Bank for
      any sum or the profit element of any sum received by it for its own
      account; or

            

    

     

    
      	
              16.5.6  

            	
              be
      obliged to institute any legal proceedings arising out of or in connection
      with this Agreement or any of the other Security Documents other than on
      the instructions of the Majority Banks;
or

            

    

     

    
      	
              16.5.7  

            	
              be
      liable to any Bank, the Issuing Bank or the Account Bank for any action
      taken or omitted under or in connection with this Agreement or any of the
      other Security Documents unless caused by its gross negligence or wilful
      misconduct.

            

    

     

    For the
purposes of this clause 16, neither the Arranger nor the Agent shall be
treated as having actual knowledge of any matter of which the corporate finance
or any other division outside the agency or loan administration department of
the Arranger or the person for the time being acting as the Agent may become
aware in the context of corporate finance, advisory or lending activities from
time to time undertaken by the Arranger or, as the case may be, the Agent for
any Security Party or any other person which may be a trade competitor of any
Security Party or may otherwise have commercial interests similar to those of
any Security Party.

     

    
      
         

      

      
        66

        
          

        

      

      
         

      

    

    

     

    
      	
              16.6  

            	
              Non-reliance
      on Arranger or Agent

            

    

     

    Each
Bank, the Issuing Bank and the Account Bank acknowledges that it has not relied
on any statement, opinion, forecast or other representation made by the Arranger
or the Agent to induce it to enter into this Agreement or any of the other
Security Documents and that it has made and will continue to make, without
reliance on the Arranger or the Agent and based on such documents as it
considers appropriate, its own appraisal of the creditworthiness of the Security
Parties and its own independent investigation of the financial condition,
prospects and affairs of the Security Parties in connection with the making and
continuation by such Bank of banking facilities under this
Agreement.  Neither the Arranger nor the Agent shall have any duty or
responsibility, either initially or on a continuing basis, to provide any Bank,
the Issuing Bank or the Account Bank with any credit or other information with
respect to any Security Party whether coming into its possession before the
making of the facilities hereunder or the issuing of L/Cs, or at any time or
times thereafter other than as provided in clause 16.3.1.

     

    
      	
              16.7  

            	
              No
      responsibility on Arranger or Agent for Borrower’s
    performance

            

    

     

    Neither
the Arranger nor the Agent shall have any responsibility or liability to any
Bank, the Issuing Bank or the Account Bank:

     

    
      	
              16.7.1  

            	
              on
      account of the failure of any Security Party to perform its obligations
      under any of the Security Documents;
or

            

    

     

    
      	
              16.7.2  

            	
              for
      the financial condition of any Security Party;
  or

            

    

     

    
      	
              16.7.3  

            	
              for
      the completeness or accuracy of any statements, representations or
      warranties in any of the Security Documents or any document delivered
      under any of the Security Documents;
or

            

    

     

    
      	
              16.7.4  

            	
              for
      the execution, effectiveness, adequacy, genuineness, validity,
      enforceability or admissibility in evidence of any of the Security
      Documents or of any certificate, report or other document executed or
      delivered under any of the Security Documents;
  or

            

    

     

    
      	
              16.7.5  

            	
              to
      investigate or make any enquiry into the title of the Borrower or any
      other Security Party to the Ships or any other security or any part
      thereof; or

            

    

     

    
      	
              16.7.6  

            	
              for
      the failure to register any of the Security Documents with any official or
      regulatory body or office or elsewhere;
or

            

    

     

    
      	
              16.7.7  

            	
              for
      taking or omitting to take any other action under or in relation to any of
      the Security Documents or any aspect of any of the Security Documents;
      or

            

    

     

    
      	
              16.7.8  

            	
              on
      account of the failure of the Security Agent to perform or discharge any
      of its duties or obligations under the Security Documents;
    or

            

    

     

    
      	
              16.7.9  

            	
              otherwise
      in connection with this Agreement or its negotiation or for acting (or, as
      the case may be, refraining from acting) in accordance with the
      instructions of the Banks, the Issuing Bank or the Account
      Bank.

            

    

     

    
      
         

      

      
        67

        
          

        

      

      
         

      

    

    

    
      	
              16.8  

            	
              Reliance
      on documents and professional
advice

            

    

     

    Each of
the Arranger and the Agent shall be entitled to rely on any communication,
instrument or document believed by it to be genuine and correct and to have been
signed or sent by the proper person and shall be entitled to rely as to legal or
other professional matters on opinions and statements of any legal or other
professional advisers selected or approved by it (including those in the
Arranger’s or, as the case may be, the Agent’s employment).

     

    
      	
              16.9  

            	
              Other
      dealings

            

    

     

    Each of
the Arranger and the Agent may, without any liability to account to the Banks,
the Issuing Bank or the Account Bank, accept deposits from, lend money to, and
generally engage in any kind of banking or other business with, and provide
advisory or other services to, any Security Party or any of its Related
Companies or any of the Banks, the Issuing Bank or the Account Bank as if it
were not the Arranger or, as the case may be, the Agent.

     

    
      	
              16.10  

            	
              Rights
      of Agent as Bank; no partnership

            

    

     

    With
respect to its own participation (if any) to the Overdraft Facility or the
Guarantee Facility the Agent shall have the same rights and powers under the
Security Documents as any other Bank and may exercise the same as though it were
not performing the duties and functions delegated to it under this Agreement and
the term “Banks” shall,
unless the context clearly otherwise indicates, include the Agent in its
individual capacity as a Bank. This Agreement shall not and shall not be
construed so as to constitute a partnership between the parties or any of
them.

     

    
      	
              16.11  

            	
              Amendments
      and waivers

            

    

     

    
      	
              16.11.1  

            	
              Subject
      to clause 16.11.2, the Agent may, with the consent of the Majority
      Banks (or if and to the extent expressly authorised by the other
      provisions of any of the Security Documents) and, if so instructed by the
      Majority Banks, shall:

            

    

     

    
      	
              (a)  

            	
              agree
      (or authorise the Security Agent to agree) amendments or modifications to
      any of the Security Documents with the Borrower and/or any other Security
      Party; and/or

            

    

     

    
      	
              (b)  

            	
              vary
      or waive breaches of, or defaults under, or otherwise excuse performance
      of, any provision of any of the other Security Documents by the Borrower
      and/or any other Security Party (or authorise the Security Agent to do
      so).

            

    

     

    Any such action so authorised and effected by the Agent shall be
documented in such manner as the Agent shall (with the approval of the Majority
Banks) determine, shall be promptly notified to the Banks, the Issuing Bank and
the Account Bank by the Agent and (without prejudice to the generality of
clause ) shall be binding on the Banks, the Issuing Bank and the Account
Bank (and the other Creditors).

     

    
      
         

      

      
        68

        
          

        

      

      
         

      

    

    
      	
              16.11.2  

            	
              Except
      with the prior written consent of all the Banks, the Agent shall have no
      authority on behalf of the Banks, the Issuing Bank or the Account Bank to
      agree (or authorise the Security Agent to agree) with the Borrower and/or
      any other Security Party any amendment or modification to any of the
      Security Documents or to grant (or authorise the Security Agent to grant)
      waivers in respect of breaches or defaults or to vary or excuse (or
      authorise the Security Agent to vary or excuse) performance of or under
      any of the Security Documents by the Borrower and/or any other Security
      Party, if the effect of such amendment, modification, waiver or excuse
      would be to:

            

    

     

    
      	
              (a)  

            	
              reduce
      the Margin;

            

    

     

    
      	
              (b)  

            	
              postpone
      the due date or reduce the amount of any payment of principal or interest
      (including amounts owing under clauses 2.10.2, 2.14, 4.1.1, 4.2.1 or
      4.2.2), interest  or other amount payable by any Security Party
      under any of the Security
Documents;

            

    

     

    
      	
              (c)  

            	
              change
      the currency in which any amount is payable by any Security Party under
      any of the Security Documents;

            

    

     

    
      	
              (d)  

            	
              increase
      any Bank’s Percentage or the Guarantee Facility Commitment or the
      Overdraft Facility Limit;

            

    

     

    
      	
              (e)  

            	
              extend
      the Final Maturity Date;

            

    

     

    
      	
              (f)  

            	
              change
      any provision of any of the Security Documents which expressly or
      impliedly requires the approval or consent of all the Banks such that the
      relevant approval or consent may be given otherwise than with the sanction
      of all the Banks;

            

    

     

    
      	
              (g)  

            	
              change
      the order of distribution under clauses 6.9 or  or any clauses
      concerning application of funds standing to the credit of the Cash
      Collateral Account or any Illegality Security
  Account;

            

    

     

    
      	
              (h)  

            	
              change
      this clause 16.;

            

    

     

    
      	
              (i)  

            	
              change
      clause 10.2;

            

    

     

    
      	
              (j)  

            	
              change
      clause 8.1.5 of this Agreement or clause 5.1.4 of the Corporate
      Guarantee;

            

    

     

    
      	
              (k)  

            	
              change
      the definitions of “Majority Banks”, “Outstandings” and “Outstanding Amount” in
      clause ;

            

    

     

    
      	
              (l)  

            	
              change
      any provisions regarding the payment of cash collateral to the credit of
      the Cash Collateral Account or any Illegality Security Account;
      or

            

    

     

    
      	
              (m)  

            	
              release
      any Security Party from the security constituted by any Security Document
      (except as required by the terms thereof or by law) or change the terms
      and conditions upon which such security or guarantee may be, or is
      required to be, released.

            

    

     

    
      
         

      

      
        69

        
          

        

      

      
         

      

    

    

    
      	
              16.12  

            	
              Reimbursement
      and indemnity by Banks

            

    

     

    Each Bank
shall reimburse the Agent (rateably in accordance with such Bank’s Percentage),
to the extent that the Agent is not reimbursed by the Borrower, for the costs,
charges and expenses incurred by the Agent which are expressed to be payable by
the Borrower under clause 5.1 including (in each case) the fees and
expenses of legal or other professional advisers. Each Bank shall on demand
indemnify the Agent (rateably in accordance with such Bank’s Percentage) against
all liabilities, damages, costs and claims whatsoever incurred by the Agent in
connection with any of the Security Documents or the performance of its duties
under any of the Security Documents or any action taken or omitted by the Agent
under any of the Security Documents, unless such liabilities, damages, costs or
claims arise from the Agent’s own gross negligence or wilful
misconduct.

     

    
      	
              16.13  

            	
              Retirement
      of Agent

            

    

     

    
      	
              16.13.1  

            	
              The
      Agent may, having given to the Borrower and each of the Banks, the Issuing
      Bank and the Account Bank not less than fifteen (15) days’ notice of its
      intention to do so, retire from its appointment as Agent under this
      Agreement, provided that no such retirement shall take effect unless there
      has been appointed by the Banks, the Issuing Bank and the Account Bank as
      a successor agent:

            

    

     

    
      	
              (a)  

            	
              a
      Related Company of the Agent nominated by the Agent which the Banks, the
      Issuing Bank and the Account Bank hereby irrevocably and unconditionally
      agree to appoint or, failing such
nomination,

            

    

     

    
      	
              (b)  

            	
              a
      Bank nominated by the Majority Banks or, failing such a
      nomination,

            

    

     

    
      	
              (c)  

            	
              any
      reputable and experienced bank or financial institution nominated by the
      retiring Agent.

            

    

     

    Any
corporation into which the retiring Agent may be merged or converted or any
corporation with which the Agent may be consolidated or any corporation
resulting from any merger, conversion, amalgamation, consolidation or other
reorganisation to which the Agent shall be a party shall, to the extent
permitted by applicable law, be the successor Agent under this Agreement and the
other Security Documents without the execution or filing of any document or any
further act on the part of any of the parties to this Agreement and the other
Security Documents save that notice of any such merger, conversion,
amalgamation, consolidation or other reorganisation shall forthwith be given to
each Security Party and the Banks, the Issuing Bank and the Account
Bank.  Prior to any such successor being appointed, the Agent agrees
to consult with the Borrower as to the identity of the proposed successor and to
take account of any reasonable objections which the Borrower may raise to such
successor being appointed.

     

    
      	
              16.13.2  

            	
              Upon
      any such successor as aforesaid being appointed, the retiring Agent shall
      be discharged from any further obligation under the Security Documents
      (but shall continue to have the benefit of this clause 16 in respect
      of any action it has taken or refrained from taking prior to such
      discharge) and its successor and each of the other parties to this
      Agreement shall have the same rights and obligations among themselves as
      they would have had if such successor had been a party to this Agreement
      in place of the retiring Agent. The retiring Agent shall (at its own
      expense) provide its successor with copies of such of its records as its
      successor reasonably requires to carry out its functions under the
      Security Documents.

            

    

     

    
      
         

      

      
        70

        
          

        

      

      
         

      

    

    

    
      	
              16.14  

            	
              Appointment
      and retirement of Security Agent

            

    

     

    
      	
              16.14.1  

            	
              Appointment

            

    

     

    Each of
the Banks, the Agent, the Issuing Bank and the Account Bank irrevocably appoints
the Security Agent as its security agent and trustee for the purposes of this
Agreement and the Security Documents, in each case on the terms set out in this
Agreement. By virtue of such appointment, each of the Banks, the Agent, the
Issuing Bank and Account Bank hereby authorises the Security Agent (whether or
not by or through employees or agents) to take such action on its behalf and to
exercise such rights, remedies, powers and discretions as are specifically
delegated to the Security Agent by this Agreement and/or the Security Documents,
together with such powers and discretions as are reasonably incidental
thereto.

     

    
      	
              16.14.2  

            	
              Retirement

            

    

     

    Without
prejudice to clause 16.13, the Security Agent may, having given to the Borrower
and each of the Banks, the Issuing Bank and the Account Bank not less than
fifteen (15) days’ notice of its intention to do so, retire from its appointment
as Security Agent under this Agreement and any Trust Deed, provided that no such
retirement shall take effect unless there has been appointed by the Banks, the
Agent, Issuing Bank and the Account Bank as a successor security agent and
trustee:

     

    
      	
              (a)  

            	
              a
      Related Company of the Security Agent nominated by the Security Agent
      which the Banks, the Account Bank and the Issuing Bank hereby irrevocably
      and unconditionally agree to appoint or, failing such
      nomination,

            

    

     

    
      	
              (b)  

            	
              a
      bank or trust corporation nominated by the Majority Banks or, failing such
      a nomination,

            

    

     

    
      	
              (c)  

            	
              any
      bank or trust corporation nominated by the retiring Security
      Agent,

            

    

     

    and, in
any case, such successor security agent and trustee shall have duly accepted
such appointment by delivering to the Agent (i) written confirmation (in a form
acceptable to the Agent) of such acceptance agreeing to be bound by this
Agreement in the capacity of Security Agent as if it had been an original party
to this Agreement and (ii) a duly executed Trust Deed.

     

    Any
corporation into which the retiring Security Agent may be merged or converted or
any corporation with which the Security Agent may be consolidated or any
corporation resulting from any merger, conversion, amalgamation, consolidation
or other reorganisation to which the Security Agent shall be a party shall, to
the extent permitted by applicable law, be the successor Security Agent under
this Agreement, any Trust Deed and the other Security Documents without the
execution or filing of any document or any further act on the part of any of the
parties to this Agreement, any Trust Deed and the other Security Documents save
that notice of any such merger, conversion, amalgamation, consolidation or other
reorganisation shall forthwith be given to each Security Party and the Banks,
the Issuing Bank and the Account Bank.  Prior to any such successor
being appointed, the Security Agent agrees to consult with the Borrower as to
the identity of the proposed successor and to take account of any reasonable
objections which the Borrower may raise to such successor being
appointed.

     

    
      
         

      

      
        71

        
          

        

      

      
         

      

    

    

     

    Upon any
such successor as aforesaid being appointed, the retiring Security Agent shall
be discharged from any further obligation under the Security Documents (but
shall continue to have the benefit of this clause 16 in respect of any
action it has taken or refrained from taking prior to such discharge) and its
successor and each of the other parties to this Agreement shall have the same
rights and obligations among themselves as they would have had if such successor
had been a party to this Agreement in place of the retiring Security Agent. The
retiring Security Agent shall (at its own expense) provide its successor with
copies of such of its records as its successor reasonably requires to carry out
its functions under the Security Documents.

     

    
      	
              16.15  

            	
              Powers
      and duties of the Security Agent

            

    

     

    
      	
              16.15.1  

            	
              The
      Security Agent shall have no duties, obligations or liabilities to any of
      the Banks, the Agent, the Issuing Bank or the Account Bank beyond those
      expressly stated in any of the Security Documents.  Each of the
      Banks, the Agent, the Issuing Bank and the Account Bank hereby authorises
      the Security Agent to enter into and
execute:

            

    

     

    
      	
              (a)  

            	
              each
      of the Security Documents to which the Security Agent is or is intended to
      be a party; and

            

    

     

    
      	
              (b)  

            	
              any
      and all such other Security Documents as may be approved by the Agent in
      writing (acting on the instructions of the Majority Banks) for entry into
      by the Security Agent,

            

    

     

    and, in
each and every case, to hold any and all security thereby created upon trust for
the other Creditors in the manner contemplated by this Agreement.

     

    
      	
              16.15.2  

            	
              Subject
      to clause 16.15.3 the Security Agent may, with the prior consent of
      the Majority Banks communicated in writing by the Agent, concur with any
      of the Security Parties to:

            

    

     

    
      	
              (a)  

            	
              amend,
      modify or otherwise vary any provision of the Security Documents to which
      the Security Agent is or is intended to be a party;
  or

            

    

     

    
      	
              (b)  

            	
              waive
      breaches of, or defaults under, or otherwise excuse performance of, any
      provision of the Security Documents to which the Security Agent is or is
      intended to be a party.

            

    

     

    Any such action so authorised and effected by the Security Agent shall
be promptly notified to the Banks, the Agent, the Issuing Bank and the Account
Bank by the Security Agent and shall be binding on the other
Creditors.

     

    
      	
              16.15.3  

            	
              The
      Security Agent shall not concur with any Security Party with respect to
      any of the matters described in clause 16.11.2 without the consent of
      the Banks communicated in writing by the
Agent.

            

    

     

    
      
         

      

      
        72

        
          

        

      

      
         

      

    

    

    
      	
              16.15.4  

            	
              The
      Security Agent shall (subject to the other provisions of this
      clause 16) take such action or, as the case may be, refrain from
      taking such action, with respect to any of its rights, powers and
      discretions as security agent and trustee, as the Agent may
      direct.  Subject as provided in the foregoing provisions of this
      clause, unless and until the Security Agent shall have received such
      instructions from the Agent, the Security Agent may, but shall not be
      obliged to, take (or refrain from taking) such action under or pursuant to
      the Security Documents referred to in clause 16.14 as the Security
      Agent shall deem advisable in the best interests of the Creditors provided
      that (for the avoidance of doubt), to the extent that this
      clause might otherwise be construed as authorising the Security Agent
      to take, or refrain from taking, any action of the nature referred to in
      clause 16.15.2 - and for which the prior consent of the Banks is
      expressly required under clause 16.15.3 - clauses 16.15.2 and 16.15.3
      shall apply to the exclusion of this
clause.

            

    

     

    
      	
              16.15.5  

            	
              None
      of the Banks nor the Agent nor the Issuing Bank nor the Account Bank shall
      have any independent power to enforce any of the Security Documents
      referred to in clause 16.15.1 or to exercise any rights, discretions
      or powers or to grant any consents or releases under or pursuant to such
      Security Documents or any of them or otherwise have direct recourse to the
      security and/or guarantees constituted by such Security Documents or any
      of them except through the Security
Agent.

            

    

     

    
      	
              16.15.6  

            	
              For
      the purpose of this clause 16, the Security Agent may rely, and act
      in reliance, upon any information from time to time furnished to the
      Security Agent by the Agent (whether pursuant to clause 16.15.7 or
      otherwise) unless and until the same is superseded by further such
      information, so that the Security Agent shall have no liability or
      responsibility to any party as a consequence of placing reliance on and
      acting in reliance upon any such information unless the Security Agent has
      actual knowledge that such information is inaccurate or
      incorrect.

            

    

     

    
      	
              16.15.7  

            	
              Without
      prejudice to the foregoing each of the Agent, the Issuing Bank, the
      Account Bank and the Banks (whether directly or through the Agent) shall
      provide the Security Agent with such written information as it may
      reasonably require for the purpose of carrying out its duties and
      obligations under the Security Documents referred to in
      clause 16.15.1.

            

    

     

    
      	
              16.16  

            	
              Trust
      provisions

            

    

     

    
      	
              16.16.1  

            	
              The
      trusts constituted or evidenced in or by this Agreement and the Trust Deed
      shall remain in full force and effect until whichever is the earlier
      of:

            

    

     

    
      
         

      

      
        73

        
          

        

      

      
         

      

    

    

    
      	
              (a)  

            	
              the
      expiration of a period of eighty (80) years from the date of this
      Agreement; and

            

    

     

    
      	
              (b)  

            	
              receipt
      by the Security Agent of confirmation in writing by the Agent that there
      is no longer outstanding any Indebtedness (actual or contingent) which is
      secured or guaranteed or otherwise assured by or under any of the Security
      Documents,

            

    

     

    and the
parties to this Agreement declare that the perpetuity period applicable to this
Agreement and the trusts declared by the Trust Deed shall for the purposes of
the Perpetuities and Accumulations Act 1964 be the period of eighty (80) years
from the date of this Agreement.

     

    
      	
              16.16.2  

            	
              In
      its capacity as trustee in relation to the Security Documents specified in
      clause 16.15.1, the Security Agent shall, without prejudice to any of
      the powers, discretions and immunities conferred upon trustees by law (and
      to the extent not inconsistent with the provisions of any of those
      Security Documents), have all the same powers and discretions as a natural
      person acting as the beneficial owner of such property and/or as are
      conferred upon the Security Agent by any of those Security
      Documents.

            

    

     

    
      	
              16.16.3  

            	
              It
      is expressly declared that, in its capacity as trustee in relation to the
      Security Documents specified in clause 16.15.1, the Security Agent
      shall be entitled to invest moneys forming part of the security and which,
      in the opinion of the Security Agent, may not be paid out promptly
      following receipt in the name or under the control of the Security Agent
      in any of the investments for the time being authorised by law for the
      investment by trustees of trust moneys or in any other property or
      investments whether similar to the aforesaid or not or by placing the same
      on deposit in the name or under the control of the Security Agent as the
      Security Agent may think fit without being under any duty to diversify its
      investments and the Security Agent may at any time vary or transpose any
      such property or investments for or into any others of a like nature and
      shall not be responsible for any loss due to depreciation in value or
      otherwise of such property or investments. Any investment of any part or
      all of the security may, at the discretion of the Security Agent, be made
      or retained in the names of
nominees.

            

    

     

    
      	
              16.17  

            	
              Independent
      action by Creditors

            

    

     

    No
Creditor shall enforce, exercise any rights, remedies or powers or grant any
consents or releases under or pursuant to, or otherwise have a direct recourse
to the security and/or guarantees constituted by any of the Security Documents
without the prior written consent of the Majority Banks but, Provided such
consent has been obtained, it shall not be necessary for any other Creditor to
be joined as an additional party in any proceedings for this
purpose.

     

    
      	
              16.18  

            	
              Common
      Agent and Security Agent

            

    

     

    The Agent
and the Security Agent have entered into the Security Documents in their
separate capacities (a) as agent for the Banks, the Issuing Bank and the Account
Bank under and pursuant to this Agreement (in the case of the Agent) and (b) as
security agent and trustee for the Banks, the Agent, the Issuing Bank and the
Account Bank under and pursuant to this Agreement, to hold the guarantees and/or
security created by the Security Documents specified in clause 16.15.1 on
the terms set out in such Security Documents (in the case of the Security
Agent). However, from time to time the Agent and the Security Agent may be the
same entity. When the Agent and the Security Agent are the same entity and any
Security Document provides for the Agent to communicate with or provide
instructions to the Security Agent (and vice versa), it will not be necessary
for there to be any such formal communications or instructions on those
occasions.

     

    
      
         

      

      
        74

        
          

        

      

      
         

      

    

    
      	
              16.19  

            	
              Co-operation
      to achieve agreed priorities of
application

            

    

     

    The
Banks, the Agent, the Issuing Bank and the Account Bank shall co-operate with
each other and with the Security Agent and any receiver under the Security
Documents in realising the property and assets subject to the Security Documents
and in ensuring that the net proceeds realised under the Security Documents
after deduction of the expenses of realisation are applied in accordance with
clause 13.1.

     

    
      	
              16.20  

            	
              Prompt
      distribution of proceeds

            

    

     

    Moneys
received by any of the Creditors (whether from a receiver or otherwise) pursuant
to the exercise of (or otherwise by virtue of the existence of) any rights and
powers under or pursuant to any of the Security Documents shall (after providing
for all costs, charges, expenses and liabilities and other payments ranking in
priority) be paid to the Agent for distribution (in the case of moneys so
received by any of the Creditors other than the Agent or the Security Agent) and
shall be distributed by the Agent or, as the case may be, the Security Agent (in
the case of moneys so received by the Agent or, as the case may be, the Security
Agent) in each case in accordance with clause 13.1.  The Agent
or, as the case may be, the Security Agent shall make each such application
and/or distribution as soon as is practicable after the relevant moneys are
received by, or otherwise become available to, the Agent or, as the case may be,
the Security Agent save that (without prejudice to any other provision contained
in any of the Security Documents) the Agent or, as the case may be, the Security
Agent (acting on the instructions of the Majority Banks) or any receiver may
credit any moneys received by it to a suspense account for so long and in such
manner as the Agent or such receiver may from time to time determine with a view
to preserving the rights of the Agent or, as the case may be, the Security Agent
and/or the Account Bank and/or the Arranger and/or the Banks and/or the Issuing
Bank and/or the Account Bank or any of them to provide for the whole of their
respective claims against the Borrower or any other person liable.

     

    
      	
              17  

            	
              Notices
      and other matters

            

    

     

    
      	
              17.1  

            	
              Notices

            

    

     

    Every
notice, request, demand or other communication under this Agreement or (unless
otherwise provided therein) under any of the other Security Documents
shall:

     

    
      	
              17.1.1  

            	
              be
      in writing delivered personally or by first-class prepaid letter (airmail
      if available) or facsimile transmission or other means of
      telecommunication in permanent written
form;

            

    

     

    
      	
              17.1.2  

            	
              be
      deemed to have been received, subject as otherwise provided in the
      relevant Security Document, in the case of a letter, when delivered
      personally or five (5) days after it has been put in to the post and, in
      the case of a facsimile transmission or other means of telecommunication
      in permanent written form, at the time of despatch (provided that if the
      date of despatch is not a business day in the country of the addressee or
      if the time of despatch is after the close of business in the country of
      the addressee it shall be deemed to have been received at the opening of
      business on the next such business day);
and

            

    

     

    
      
         

      

      
        75

        
          

        

      

      
         

      

    

    

    
      	
              17.1.3  

            	
              be
      sent:

            

    

     

    
      	
              (a)  

            	
              if
      to the Borrower at:

            

    

     

    c/o
Aegean Marine Petroleum S.A.

    42
Hatzikiriakou Street

    185 38
Piraeus

    Greece

     

    Fax
no:                        +30
210 458 6243

    Attention:                        Theodora
Papadogianni

     

    if to the
Agent and/or the Account Bank and/or the Security Agent and/or the Issuing Bank
and/or the Arranger at:

     

    The Royal
Bank of Scotland plc

    Piraeus
Branch

    45 Akti
Miaouli

    185 36
Piraeus

    Greece

     

    Fax
No:                        +30
210 459 6600

    Attention:                        Shipping
Department

     

    
      	
              (b)  

            	
              if
      to a Bank, to its address or fax number specified in schedule 1 or in any
      relevant Transfer Certificate,

            

    

     

    or, in
any case, to such other address and/or numbers as is notified by one party to
the other parties under this Agreement.

     

    
      	
              17.2  

            	
              Notices
      through the Agent

            

    

     

    Every
notice, request, demand or other communication under this Agreement to be given
by the Borrower to any other party shall be given to the Agent for onward
transmission as appropriate and if such notice, request, demand or other
communication is to be given to the Borrower it shall (except if otherwise
provided in the Security Documents) be given through the Agent.

     

    
      	
              17.3  

            	
              No
      implied waivers, remedies
cumulative

            

    

     

    No
failure or delay on the part of any Creditor to exercise any power, right or
remedy under any of the Security Documents shall operate as a waiver thereof,
nor shall any single or partial exercise by any Creditor of any power, right or
remedy preclude any other or further exercise thereof or the exercise of any
other power, right or remedy.  The remedies provided in the Security
Documents are cumulative and are not exclusive of any remedies provided by
law.

     

    
      	
              17.4  

            	
              English
      language

            

    

     

    All
certificates, instruments and other documents to be delivered under or supplied
in connection with any of the Security Documents shall be in the English
language or shall be accompanied by a certified English translation upon which
the Creditors shall be entitled to rely.

     

    
      
         

      

      
        76

        
          

        

      

      
         

      

    

    

     

    
      	
              18  

            	
              Governing law and jurisdiction

            

    

     

    
      	
              18.1  

            	
              Law

            

    

     

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

     

    
      	
              18.2  

            	
              Submission
      to jurisdiction

            

    

     

    The
Borrower agrees, for the benefit of each of the Creditors, that any legal action
or proceedings arising out of or in connection with this Agreement against the
Borrower or any of its assets may be brought in the English
courts.  The Borrower irrevocably and unconditionally submits to the
jurisdiction of such courts and irrevocably designates, appoints and empowers
Riches Consulting at present of Old Jarretts Farmhouse, Brantridge Lane,
Balcombe, West Sussex RH17 6JR, England to receive for it and on its behalf,
service of process issued out of the English courts in any such legal action or
proceedings.  The submission to such jurisdiction shall not (and shall
not be construed so as to) limit the right of any Creditor to take proceedings
against the Borrower in the courts of any other competent jurisdiction nor shall
the taking of proceedings in any one or more jurisdictions preclude the taking
of proceedings in any other jurisdiction, whether concurrently or
not.

     

    The
parties further agree that only the Courts of England and not those of any other
State shall have jurisdiction to determine any claim which the Borrower may have
against any Creditor arising out of or in connection with this
Agreement.

     

    
      	
              18.3  

            	
              Contracts
      (Rights of Third Parties) Act 1999

            

    

     

    No term
of this Agreement is enforceable under the provisions of the Contracts (Rights
of Third Parties) Act 1999 by a person who is not a party to this
Agreement.

     

    IN WITNESS whereof the
parties to this Agreement have caused this Agreement to be duly executed on the
date first above written.

     

    
      
         

      

      
        77

        
          

        

      

      
         

      

    

    

     

    Schedule 1

     

    The
Banks and their Percentages

     

    

     

    
      	
              Name

            	
              Lending
      Office

            	
              Address
      for Notices

            	
              Percentage

               

            
	
               

              The
      Royal Bank of Scotland plc

            	
               

              45
      Akti Miaouli

              185
      36 Piraeus

              Greece

            	
               

              45
      Akti Miaouli

              185
      36 Piraeus

              Greece

               

              Fax
      no:+30 210 459
      6600

              Att:Shipping
      Department

               

            	
               

              50%

            
	
               

              HSH
      Nordbank AG

            	
               

              Gerhart-Hauptmann-

              Platz
      50

              20095
      Hamburg

              Germany

            	
               

              Gerhart-Hauptmann-

              Platz
      50

              20095
      Hamburg

              Germany

               

              Fax no:+49 40 3333
      610100

              Att:Mr Dirk
      Wahlers

               

            	
               

              50%

            

    

    

     

    
      
         

      

      
        78

        
          

        

      

      
         

      

    

    

     

    Schedule 2

     

    Documents
and evidence required as conditions precedent

     

    (referred
to in clause 9.1)

     

    

     

    
      	
              1  

            	
              Constitutional
      documents

            

    

     

    Copies,
certified by an officer of each Security Party as true, complete and up to date
copies of all documents which contain or establish or relate to the constitution
of that Security Party;

     

    
      	
              2  

            	
              Corporate
      authorisations

            

    

     

    copies of
resolutions of the directors and, if required, shareholders of each Security
Party approving such of the Underlying Documents and the Security Documents to
which such Security Party is, or is to be, party and authorising the signature,
delivery and performance of such Security Party’s obligations thereunder,
certified (in a certificate dated no earlier than five (5) Banking Days prior to
the date of this Agreement) by an officer of such Security Party
as:

     

    
      	
              (i)  

            	
              being
      true and correct;

            

    

     

    
      	
              (ii)  

            	
              being
      duly passed at meetings of the directors of such Security Party and, if
      required, of the shareholders of such Security Party each duly convened
      and held;

            

    

     

    
      	
              (iii)  

            	
              not
      having been amended, modified or revoked;
and

            

    

     

    
      	
              (iv)  

            	
              being
      in full force and effect,

            

    

     

    together
with originals or certified copies of any powers of attorney issued by any such
Security Party pursuant to such resolutions;

     

    
      	
              3  

            	
              Specimen
      signatures

            

    

     

    copies of
the signatures of the persons who have been authorised on behalf of each
Security Party to sign such of the Underlying Documents and the Security
Documents to which such Security Party is, or is to be, party and to give
notices and communications, including notices of drawing, under or in connection
with the Security Documents, certified (in a certificate dated no earlier than
five (5) Banking Days prior to the date of this Agreement) by an officer of such
Security Party as being the true signatures of such persons;

     

    
      	
              4  

            	
              Certificates
      of incumbency

            

    

     

    a list of
directors and officers of each Security Party specifying the names and positions
of such persons, certified (in a certificate dated no earlier than five (5)
Banking Days prior to the date of this Agreement) by an officer of such Security
Party to be true, complete and up to date;

     

    
      	
              5  

            	
              Borrower’s
      consents and approvals

            

    

     

    a
certificate (dated no earlier than five (5) Banking Days prior to the date of
this Agreement) from an officer of the Borrower that no consents,
authorisations, licences or approvals are necessary for the Borrower to
authorise or are required by the Borrower in connection with the borrowing by
the Borrower of the Overdraft or any other borrowings or obligations under the
Security Documents or the execution, delivery and performance of the Borrower’s
Security Documents;

     

    
      
         

      

      
        79

        
          

        

      

      
         

      

    

    
      	
              6  

            	
              Other
      consents and approvals

            

    

     

    a
certificate (dated no earlier than five (5) Banking Days prior to the date of
this Agreement) from an officer of each Security Party that no consents,
authorisations, licences or approvals are necessary for such Security Party to
guarantee and/or grant security for the borrowing by the Borrower of the
Overdraft or other borrowings or obligations under the Security Documents
pursuant to this Agreement and execute, deliver and perform the Security
Documents insofar as such Security Party is a party thereto;

     

    
      	
              7  

            	
              Underlying
      Documents

            

    

     

    a copy,
certified (in a certificate dated no earlier than five (5) Banking Days prior to
the date of this Agreement) as a true and complete copy by an officer of the
Borrower of the Management Agreements in respect of the Ships;

     

    
      	
              8  

            	
              Accounts

            

    

     

    evidence
that the Accounts have been opened and duly completed mandate forms in respect
thereof have been delivered to the Account Bank and that the amount of $10 is
standing to the credit of each Account (other than the Overdraft
Account);

     

    
      	
              9  

            	
              Security
      Documents

            

    

     

    the
Corporate Guarantee, the Owner’s Guarantee in respect of each Ship, the Mortgage
in respect of each Ship (other than the Collateral Ships), the Deed of Covenant
in respect of each Ship, the Manager’s Undertaking in respect of each Ship, the
Receivables Assignment, the Operating Account Pledge and the Cash Collateral
Account Pledge, each duly executed;

     

    
      	
              10  

            	
              Fees

            

    

     

    evidence
that the arrangement fee due under clause 5.1.1 has been paid in
full;

     

    
      	
              11  

            	
              Due
      diligence

            

    

     

    evidence
that all information required in relation to any Security Party in order for the
each Creditor to complete its due diligence formalities in connection with this
Agreement and the other Security Documents has been provided and is satisfactory
in all respects to the such Creditor;

     

    
      	
              12  

            	
              Existing
      loan agreement

            

    

     

    evidence
that the overdraft and guarantee facility made available under the facility
agreement dated 19 December 2006 (as amended and supplemented) made (a) between
The Royal Bank of Scotland plc as lender and (b) the Borrower and the Corporate
Guarantor as joint and several borrowers, has been terminated and any amounts of
such overdraft facility have been paid in full to the satisfaction of The Royal
Bank of Scotland plc, and that any L/Cs (as defined therein) issued under such
guarantee facility have been transferred, and deemed issued by the Issuing Bank,
under this Agreement;

     

    
      	
              13  

            	
              Light
      displacement tonnage

            

    

     

    evidence
of the light displacement tonnage of each Ship;

     

    
      	
              14  

            	
              Registration
      forms

            

    

     

    such
statutory forms duly signed by the Borrower and the other Security Parties as
may be required by the Agent to perfect the security contemplated by the
Security Documents;

     

    
      
         

      

      
        80

        
          

        

      

      
         

      

    

    
      	
              15  

            	
              Ship
      conditions

            

    

     

    evidence
that each Ship:

     

    
      	
              (a)  

            	
              Registration
      and Encumbrances

            

    

     

    is
permanently registered in the name of the relevant Owner under the laws and flag
of the relevant Flag State through the relevant Registry and that such Ship and
its Earnings, Insurances and Requisition Compensation are free of Encumbrances
(other than Permitted Encumbrances) (such evidence to include notices of
re-assignment of Insurances of such Ship from previous assignees (as such term
is defined in the relevant Ship Security Documents));

     

    
      	
              (b)  

            	
              Classification

            

    

     

    maintains
the relevant Classification free of all requirements and recommendations of the
relevant Classification Society; and

     

    
      	
              (c)  

            	
              Insurance

            

    

     

    is
insured in accordance with the provisions of the relevant Ship Security
Documents and all requirements of such Ship Security Documents in respect of
such insurance have been complied with (including without limitation,
confirmation from the protection and indemnity association or other insurer with
which such Ship is, or is to be, entered for insurance or insured against
protection and indemnity risks (including oil pollution risks) that any
necessary declarations required by the association or insurer for the removal of
any oil pollution exclusion have been made and that any such exclusion does not
apply to such Ship);

     

    
      	
              16  

            	
              Mortgage
      registration

            

    

     

    evidence
that the Mortgage in respect of each Ship (other than the Collateral Ships) has
been provisionally registered against each such Ship under the laws and flag of
the relevant Flag State through the relevant Registry;

     

    
      	
              17  

            	
              Notice
      of assignment and acknowledgements

            

    

     

    copies of
duly executed notices of assignment and acknowledgements thereof in the forms
prescribed by the Ship Security Documents;

     

    
      	
              18  

            	
              SMC/DOC

            

    

     

    a copy,
certified (in a certificate dated no earlier than five (5) Banking Days prior to
the date of this Agreement) as a true and complete copy by an officer of the
Borrower of the DOC issued to the Operator of each Ship and the SMC for each
such Ship;

     

    
      	
              19  

            	
              ISPS
      Code compliance

            

    

     

    
      	
              (a)  

            	
              evidence
      satisfactory to the Agent that each Ship is subject to a ship security
      plan which complies with the ISPS Code;
and

            

    

     

    
      	
              (b)  

            	
              a
      copy, certified (in a certificate dated no earlier than five (5) Banking
      Days prior to the date of this Agreement) as a true and complete copy by
      an officer of the Borrower of the ISSC for each such
  Ship;

            

    

     

    
      	
              20  

            	
              Insurance
      Letter

            

    

     

    the
Insurance Letter for each Ship duly executed;

     

    
      
         

      

      
        81

        
          

        

      

      
         

      

    

    
      	
              21  

            	
              Maltese
      opinion

            

    

     

    an
opinion of Ganado & Associates, special legal advisers on matters of Maltese
law to the Agent;

     

    
      	
              22  

            	
              Gibraltar
      opinion

            

    

     

    an
opinion of Triay & Triay, special legal advisers on matters of Gibraltar law
to the Agent;

     

    
      	
              23  

            	
              Singapore
      opinion

            

    

     

    an
opinion of Robert Wang & Woo LLC, special legal advisers on matters of
Singapore law to the Agent;

     

    
      	
              24  

            	
              Panamanian
      opinion

            

    

     

    an
opinion of Patton, Moreno & Asvat, special legal advisers on matters of
Panamanian law to the Agent;

     

    
      	
              25  

            	
              Marshall
      Islands and Liberian opinion

            

    

     

    an
opinion of Reeder & Simpson P.C., special legal advisers on matters of
Marshall Islands and Liberian law to the Agent;

     

    
      	
              26  

            	
              United
      Arab Emirates opinion

            

    

     

    an
opinion of such special legal advisers on matters of United Arab Emirates law to
the Agent, as are acceptable to the Agent in its discretion;

     

    
      	
              27  

            	
              Insurance
      opinion

            

    

     

    an
opinion (at the expense of the Borrower) from insurance consultants to the Agent
on the insurances effected or to be effected in respect of each Ship upon and
following the date of this Agreement;

     

    
      	
              28  

            	
              Borrower’s
      process agent

            

    

     

    a letter
from the Borrower’s agent for receipt of service of proceedings referred to in
clause 18.2 accepting its appointment under the said clause and under each of
the other Security Documents in which it is or is to be appointed as the
Borrower’s agent; and

     

    
      	
              29  

            	
              Security
      Parties’ process agent

            

    

     

    a letter
from each Security Party’s agent for receipt of service of proceedings referred
to in each of the Security Documents to which such Security Party is a party,
accepting its appointment under each such Security Document.

     

    
      
         

      

      
        82

        
          

        

      

      
         

      

    

    

     

    Schedule 3

    The
Owners and their Ships

    Part
A

    The
Owners

     

     

     

    
      
        	 
      	
                (1)

                Owner

              	
                (2)

                Country
      of Incorporation

              	
                (3)

                Registered
      office

              
	
                1

              	
                Evian
      Enterprises Co.

              	
                Marshall
      Islands

              	
                Trust
      Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands
      MH96960

              
	
                2

              	
                Carmel
      Investment Corp.

              	
                Marshall
      Islands

              	
                Trust
      Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands
      MH96960

              
	
                3

              	
                Clyde
      I Shipping Corp.

              	
                Marshall
      Islands

              	
                Trust
      Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands
      MH96960

              
	
                4

              	
                Baltic
      Navigation Company

              	
                Marshall
      Islands

              	
                Trust
      Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands
      MH96960

              
	
                5

              	
                Carnaby
      Navigation Inc.

              	
                Liberia

              	
                80
      Broad Street, Monrovia, Republic of Liberia

              
	
                6

              	
                Mare
      Vision S.A.

              	
                Marshall
      Islands

              	
                Trust
      Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands
      MH96960

              
	
                7

              	
                Aegean
      Tanking S.A.

              	
                Liberia

              	
                80
      Broad Street, Monrovia, Republic of Liberia

              
	
                8

              	
                Ouranos
      Tanking S.A.

              	
                Liberia

              	
                80
      Broad Street, Monrovia, Liberia

              
	
                9

              	
                Sea
      Breezer Marine S.A.

              	
                Marshall
      Islands

              	
                Trust
      Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands
      MH96960

              
	
                10

              	
                Aegean
      Breeze Shipping Pte. Ltd.

              	
                Singapore

              	
                4
      Shenton Way, SGX Centre II # 04-03, Singapore 068807

              
	
                11

              	
                Aegean
      Tiffany Shipping Pte. Ltd.

              	
                Singapore

              	
                4
      Shenton Way, SGX Centre II # 04-03, Singapore 068807

              
	
                12

              	
                Aegean
      X Maritime Inc.

              	
                Marshall
      Islands

              	
                Trust
      Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands
      MH96960

              
	
                13

                 

                 

              	
                Pontos
      Navigation Inc.

              	
                Marshall
      Islands

              	
                Trust
      Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands
      MH96960

              
	
                14

              	
                Aegean
      Marine Petroleum LLC

                (Collateral
      Owner A)

              	
                United
      Arab Emirates

              	
                P.O.
      Box 2688,

                Khorfakkan,

                Emirate
      of Sharjah,

                United
      Arab Emirates

              
	
                15

              	
                Aegean
      VII Shipping Ltd. (Collateral Owner B)

              	
                Malta

              	
                13/16
      Vincenti Buildings, Strait Street, Valletta, Malta

              
	
                16

              	
                Venus
      Holding Company (Collateral Owner C)

              	
                Marshall
      Islands

              	
                Trust
      Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands
      MH96960

              

      

      
        
           

        

        
          83

          
            

          

        

        
           

        

      

    

    Part
B

    The
Ships and their details

     

     

    

      
        	 
      	
                (1)

                Name/Hull
      Number

              	
                (2)

                Flag
      State

              	
                (3)

                IMO
      No.

              	
                (4)

                Owning
      Company

              
	
                1

              	
                Aegean
      Daisy

              	
                Gibraltar

              	
                7729007

              	
                Evian
      Enterprises Co.

              
	
                2

              	
                Aegean
      Rose

              	
                Gibraltar

              	
                7729019

              	
                Carmel
      Investment Corp.

              
	
                3

              	
                Aegean
      Tulip

              	
                Liberia

              	
                8111257

              	
                Clyde
      I Shipping Corp.

              
	
                4

              	
                Aegean
      Force

              	
                Liberia

              	
                8007080

              	
                Baltic
      Navigation Company

              
	
                5

              	
                Aegean
      Pride I

              	
                Liberia

              	
                8027195

              	
                Carnaby
      Navigation Inc.

              
	
                6

              	
                Aegean
      XI

              	
                Liberia

              	
                8411255

              	
                Mare
      Vision S.A.

              
	
                7

              	
                Fos

              	
                Liberia

              	
                8033314

              	
                Aegean
      Tanking S.A.

              
	
                8

              	
                Ouranos

              	
                Liberia

              	
                8138683

              	
                Ouranos
      Tanking S.A.

              
	
                9

              	
                Aegean
      Princess

              	
                Liberia

              	
                8821759

              	
                Sea
      Breezer Marine S.A.

              
	
                10

              	
                Aegean
      Breeze I

              	
                Singapore

              	
                9314466

              	
                Aegean
      Breeze Shipping Pte. Ltd.

              
	
                11

              	
                Aegean
      Tiffany

              	
                Singapore

              	
                9314478

              	
                Aegean
      Tiffany Shipping Pte. Ltd.

              
	
                12

              	
                Aegean
      X

              	
                Panama

              	
                8209664

              	
                Aegean
      X Maritime Inc.

              
	
                13

              	
                Leader

              	
                Panama

              	
                8400000

              	
                Pontos
      Navigation Inc.

              
	
                14

              	
                Aegean
      Flower

                (Collateral
      Ship A)

              	
                United
      Arab Emirates

              	
                8978394

              	
                Aegean
      Marine Petroleum LLC

              
	
                15

              	
                Aegean VII (Collateral
      Ship B)

              	
                Malta

              	
                8313544

              	
                Aegean
      VII Shipping Ltd.

              
	
                16

              	
                Aegean IX (Collateral
      Ship C)

              	
                Panama

              	
                7402623

              	
                Venus
      Holding Company

              
	
                17

              	
                Sara

                (Additional
      Ship A)

              	
                N/A

              	
                N/A

              	
                Baldwin
      Management Co.

              
	
                18

              	
                Hope

                (Additional
      Ship B)

              	
                N/A

              	
                N/A

              	
                Milos
      I Maritime Inc.

              
	
                19

              	
                Vera

                (Additional
      Ship C)

              	
                N/A

              	
                N/A

              	
                Vera
      Navigation S.A.

              

      

      
        
           

        

        
          84

          
            

          

        

        
           

        

      

    

    Schedule 4

    Transfer
Certificate

    (referred
to in clause )

    

    TRANSFER
CERTIFICATE

     

    Banks
are advised not to employ Transfer Certificates or otherwise to assign or
transfer interests in the Facility Agreement without further ensuring that the
transaction complies with all applicable laws and regulations, including the
Financial Services and Markets Act 2000 and regulations made thereunder and
similar statutes which may be in force in other jurisdictions

     

    
      	
              To:

            	
              THE
      ROYAL BANK OF SCOTLAND PLC as agent on its own behalf and on behalf of the
      Borrower, the Account Bank, the Security Agent, the Issuing Bank and the
      Banks defined in the Facility Agreement referred to
  below.

            

    

    [Date]

     

    Attention:                      [·]

     

    This
certificate (“Transfer
Certificate”) relates to a facility agreement dated [·] December 2007 (the “Facility Agreement”) and made
between (1) Aegean Marine Petroleum S.A. (the “Borrower”), (2) the banks and
financial institutions defined therein as banks (the “Banks”) and (3) The Royal Bank
of Scotland plc as Arranger, Agent, Security Agent, Issuing Bank and Account
Bank, in relation to an overdraft, guarantee and letter of credit facility of up
to Three hundred million Dollars ($300,000,000).  Terms defined in the
Facility Agreement shall, unless otherwise defined herein, have the same
meanings herein as therein.

     

    In this
Certificate:

     

    the
“Transferor” means
[full name] of [lending office];
and

     

    the
“Transferee” means
[full name] of [lending office].

     

    
      	
              1  

            	
              The
      Transferor with full title guarantee assigns to the Transferee absolutely
      all rights and interests (present, future or contingent) which the
      Transferor has as a Bank under or by virtue of the Facility Agreement and
      all the Security Documents in relation to [   ] per centum
      ([   ]%) of the participation of the Transferor (or its
      predecessors in title) in the Facility Agreement details of which are set
      out in the schedule.

            

    

     

    
      	
              2  

            	
              By
      virtue of this Transfer Certificate and clause 15 of the Facility
      Agreement, the Transferor is discharged [entirely from its participation]
      [from [   ] per centum ([   ]%) of its
      participation].

            

    

     

    
      	
              3  

            	
              The
      Transferee hereby requests the Agent (on behalf of itself, the Borrower,
      the Account Bank, the Security Agent, the Issuing Bank and the Banks) to
      accept the executed copies of this Transfer Certificate as being delivered
      pursuant to and for the purposes of clause  of the Facility Agreement
      so as to take effect in accordance with the terms thereof on [date of
      transfer].

            

    

     

    
      	
              4  

            	
              The
      Transferee:

            

    

     

    
      	
              4.1  

            	
              confirms
      that it has received a copy of the Facility Agreement and the other
      Security Documents together with such other documents and information as
      it has required in connection with the transaction contemplated
      thereby;

            

    

     

    
      	
              4.2  

            	
              confirms
      that it has not relied and will not hereafter rely on the Transferor, the
      Agent, the Account Bank, the Security Agent, the Issuing Bank or the Banks
      to check or enquire on its

            

    

     

    
      
         

      

      
        85

        
          

        

      

      
         

      

    

    
      	
              4.3  

            	
              behalf
      into the legality, validity, effectiveness, adequacy, accuracy or
      completeness of the Facility Agreement, any of the Security Documents or
      any such documents or information;

            

    

     

    
      	
              4.4  

            	
              agrees
      that it has not relied and will not rely on the Transferor, the Agent, the
      Account Bank, the Security Agent, the Issuing Bank or the Banks to assess
      or keep under review on its behalf the financial condition,
      creditworthiness, condition, affairs, status or nature of the Borrower, or
      any other Security Party (save as otherwise expressly provided
      therein);

            

    

     

    
      	
              4.5  

            	
              warrants
      that it has power and authority to become a party to the Facility
      Agreement and has taken all necessary action to authorise execution of
      this Transfer Certificate and to obtain all necessary approvals and
      consents to the assumption of its obligations under the Facility Agreement
      and the Security Documents; and

            

    

     

    
      	
              4.6  

            	
              if
      not already a Bank, appoints (i) the Agent to act as its agent and (ii)
      the Security Agent as its security agent and trustee, as provided in the
      Facility Agreement and the Security Documents and agrees to be bound by
      the terms of the Facility Agreement and the Security
      Documents.

            

    

     

    
      	
              5  

            	
              The
      Transferor:

            

    

     

    
      	
              5.1  

            	
              warrants
      to the Transferee that it has full power to enter into this Transfer
      Certificate and has taken all corporate action necessary to authorise it
      to do so;

            

    

     

    
      	
              5.2  

            	
              warrants
      to the Transferee that this Transfer Certificate is binding on the
      Transferor under the laws of England, the country in which the Transferor
      is incorporated and the country in which its lending office is located;
      and

            

    

     

    
      	
              5.3  

            	
              agrees
      that it will, at its own expense, execute any documents which the
      Transferee reasonably requests for perfecting in any relevant jurisdiction
      the Transferee’s title under this Transfer Certificate or for a similar
      purpose.

            

    

     

    
      	
              6  

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

            

    

     

    
      	
              7  

            	
              By
      execution of this Transfer Certificate on their behalf by the Agent and in
      reliance upon the representations and warranties of the Transferee, the
      Borrower, the Agent, the Security Agent, the Account Bank, the Issuing
      Bank and the Banks accept the Transferee as a party to the Facility
      Agreement and the Security Documents with respect to all those rights
      and/or obligations which by the terms of the Facility Agreement and the
      Security Documents will be assumed by the Transferee (including those
      about pro-rata sharing and the exclusion of liability on the part of, and
      the indemnification of, the Agent, the Account Bank, the Issuing Bank and
      the Security Agent as provided by the Facility Agreement) after delivery
      of the executed copies of this Transfer Certificate to the Agent and
      satisfaction of the conditions (if any) subject to which this Transfer
      Certificate is expressed to take
effect.

            

    

     

    
      	
              8  

            	
              None
      of the Transferor, the Agent, the Security Agent, the Account Bank, the
      Issuing Bank or the Banks:

            

    

     

    
      	
              8.1  

            	
              makes
      any representation or warranty nor assumes any responsibility with respect
      to the legality, validity, effectiveness, adequacy or enforceability of
      the Facility Agreement or any of the Security Documents or any document
      relating thereto; or

            

    

     

    
      	
              8.2  

            	
              assumes
      any responsibility for the financial condition of the Borrower or any
      other Security Party or any party to any such other document or for the
      performance and observance by the Borrower or any other Security Party or
      any party to any such other document (save as otherwise expressly provided
      therein) and any and all such conditions and warranties, whether express
      or implied by law or otherwise, are hereby excluded (except as
      aforesaid).

            

    

     

    
      
         

      

      
        86

        
          

        

      

      
         

      

    

    
      	
              9. 

            	
              The
      Transferor and the Transferee each undertake that they will on demand
      fully indemnify the Agent in respect of any claim, proceeding, liability
      or expense which relates to or results from this Transfer Certificate or
      any matter concerned with or arising out of it unless caused by the
      Agent’s gross negligence or wilful misconduct, as the case may
      be.

            

    

     

    
      	
              10. 

            	
              The
      agreements and undertakings of the Transferee in this Transfer Certificate
      are given to and for the benefit of and made with each of the other
      parties to the Facility Agreement and the Security
    Documents.

            

    

     

    
      	
              11  

            	
              This
      Transfer Certificate is governed by, and shall be construed in accordance
      with, English law.

            

    

     

    
      	
              Transferor

            	
              Transferee

            
	
               

              By:
      ......................................................

            	
               

              By:
      ......................................................

            
	
               

              Dated:
      ..................................................

            	
               

              Dated:
      ..................................................

            

    

    

     

    Agent

     

    Agreed
for and on behalf of itself as Agent, the Borrower, the Security Agent, the
Account Bank, the Issuing Bank and the Banks

    

     

    THE
ROYAL BANK OF SCOTLAND PLC

     

    By:                      .............................................

     

    Dated:                 .............................................

     

    Note:                      The
execution of this Transfer Certificate alone may not transfer a proportionate
share of the Transferor’s interest in the security constituted by the Security
Documents in the Transferor’s or Transferee’s jurisdiction.  It is the
responsibility of the Transferee to ascertain whether any other documents are
required to perfect a transfer of such a share in the Transferor’s interest in
such security in any such jurisdiction and, if so, to seek appropriate advice
and arrange for execution of the same.

     

    
      
         

      

      
        87

        
          

        

      

      
         

      

    

    

     

    

     

    The
Schedule

     

    Outstandings
of Transferor: $[·]

    Percentage:
[·]%

    Portion
Transferred: [·]%

     

    Administrative
Details of Transferee

     

    Name of
Transferee:

    Lending
Office:

     

    Contact
Person

    (Loan
Administration Department):

    Telephone:

    Telefax
No:

     

    Contact
Person

    (Credit
Administration Department):

    Telephone:

    Telefax
No:

    Account
for payments:

     

    
      
         

      

      
        88

        
          

        

      

      
         

      

    

    

     

    Schedule 5

     

    Form
of Issue Request

     

    (referred
to in clause 2.3)

     

    

    To:       The
Royal Bank of Scotland plc

    45 Akti Miaouli

    185 36 Piraeus

    Greece

    (as Agent and Issuing
Bank)

    
      	
               
      

            	
               [·] 200[·]

            

    

     

    Overdraft,
Guarantee and Letter of Credit Facility of up to US$300,000,000

    Facility
Agreement dated [·]
December 2007 (the “Facility Agreement”)

     

    We refer
to the Facility Agreement and hereby request that the Issuing Bank issues an L/C
in the form attached as follows:

     

    
      	
              (a)  

            	
              currency
      and amount of the L/C: [·];

            

    

     

    
      	
              (b)  

            	
              Issue
      Date of the L/C: [·];

            

    

     

    
      	
              (c)  

            	
              Expiry
      Date of the L/C: [·];
  and

            

    

     

    
      	
              (d)  

            	
              delivery
      instructions: [·].

            

    

     

    We
confirm that:

     

    
      	
              (a)  

            	
              no
      event or circumstance has occurred and is continuing which constitutes a
      Default;

            

    

     

    
      	
              (b)  

            	
              the
      representations and warranties contained in (i) clauses 7.1, 7.2 and
      7.3(b) of the Facility Agreement, (ii) clause 4 of the Corporate Guarantee
      and (iii) clause 4 of each Owner’s Guarantee, are true and correct at the
      date hereof as if made with respect to the facts and circumstances
      existing at such date; and

            

    

     

    
      	
              (c)  

            	
              there
      has been no material adverse change in our financial position or the
      financial position of the Owners or the Corporate Guarantor or any other
      Relevant Party or the consolidated financial position of the Group from
      that described by or on behalf of ourselves to the Agent and the Banks in
      the negotiation of the Facility
Agreement.

            

    

     

    Words and
expressions defined in the Facility Agreement shall have the same meanings where
used herein.

    

    

    

    ........................................................

    For and
on behalf of

    AEGEAN
MARINE PETROLEUM S.A.

    

    
      
         

      

      
        89

        
          

        

      

      
         

      

    

    

     

    Schedule 6

     

    Mandatory
Cost formula

     

    
      	
              1  

            	
              The
      Mandatory Cost is an addition to the interest rate to compensate the
      Account Bank for the cost of compliance with (a) the requirements of the
      Bank of England and/or the Financial Services Authority (or, in either
      case, any other authority which replaces all or any of its functions) or
      (b) the requirements of the European Central
  Bank.

            

    

     

    
      	
              2  

            	
              On
      the first day of each Interest Period (or as soon as possible thereafter)
      the Agent shall calculate, as a percentage rate per annum, a rate for the
      Account Bank, in accordance with the paragraphs set out
    below.

            

    

     

    
      	
              3  

            	
              The
      Mandatory Cost for the Account Bank when lending from a lending office in
      a Participating Member State will be the percentage notified by the
      Account Bank to the Agent.  This percentage will be certified by
      the Account Bank in its notice to the Agent to be its reasonable
      determination of the cost (expressed as a percentage of the Overdraft or
      the relevant unpaid sum in respect of the Overdraft made available from
      that lending office) of complying with the minimum reserve requirements of
      the European Central Bank in respect of loans made from that lending
      office.

            

    

     

    
      	
              4  

            	
              The
      Mandatory Cost for the Account Bank when lending from a lending office in
      the United Kingdom will be calculated by the Agent as
    follows:

            

    

     

    E x 0.01 

    ----------  
per cent per annum.

           300

     

     

    Where
E is designed to
compensate banks for amounts payable under the Fees Rules and is calculated by
the Agent as being the most recent rate of charge notified by the Account Bank
to the Agent to be payable by the Account Bank to the Financial Services
Authority pursuant to the Fees Rules in respect of the relevant financial year
of the Financial Services Authority (calculated for this purpose by the Account
Bank as being the average of the Fee Tariffs applicable to the Account Bank for
that financial year) and expressed in pounds per £1,000,000 of the Tariff Base
of the Account Bank.

     

    
      	
              5  

            	
              For
      the purposes of this Schedule:

            

    

     

    
      	
              (a)  

            	
              "Fees Rules" means the
      rules on periodic fees contained in the FSA Supervision Manual or such
      other law or regulation as may be in force from time to time in respect of
      the payment of fees for the acceptance of
  deposits;

            

    

     

    
      	
              (b)  

            	
              "Fee Tariffs" means the
      fee tariffs specified in the Fees Rules under the activity group A.1
      Deposit acceptors (ignoring any minimum fee or zero rated fee required
      pursuant to the Fees Rules but taking into account any applicable discount
      rate); and

            

    

     

    
      	
              (c)  

            	
              "Tariff Base" has the
      meaning given to it in, and will be calculated in accordance with, the
      Fees Rules.

            

    

     

    
      	
              6  

            	
              The
      resulting figures will be rounded to four decimal
  places.

            

    

     

    
      	
              7  

            	
              The
      Account Bank shall supply any information required by the Agent for the
      purpose of calculating the Mandatory Cost.  In particular, but
      without limitation, the Account Bank shall supply the following
      information on or prior to the date of this
  Agreement:

            

    

     

    
      	
              (a)  

            	
              the
      jurisdiction of its lending office;
and

            

    

     

    
      
         

      

      
        90

        
          

        

      

      
         

      

    

    
      	
              (b)  

            	
              any
      other information that the Agent may reasonably require for such
      purpose.

            

    

     

    The
Account Bank shall promptly notify the Agent of any change to the information
provided by it pursuant to this paragraph.

     

    
      	
              8  

            	
              The
      Agent shall have no liability to any person if such determination results
      in the Mandatory Cost which over or under compensates the Account Bank and
      shall be entitled to assume that the information provided by the Account
      Bank pursuant to paragraphs 3, 4 and 7 above is true and correct in all
      respects.

            

    

     

    
      	
              9  

            	
              The
      Agent shall distribute the additional amounts received as a result of the
      Mandatory Cost to the Account Bank based on the information provided by
      the Account Bank pursuant to paragraphs 3, 4 and 7
  above.

            

    

     

    
      	
              10  

            	
              Any
      determination by the Agent pursuant to this schedule in relation to a
      formula, the Mandatory Cost or any amount payable to the Account Bank
      shall, in the absence of manifest error, be conclusive and binding on all
      parties to this Agreement.

            

    

     

    
      	
              11  

            	
              The
      Agent may from time to time, after consultation with the Borrower and the
      Account Bank, determine and notify to all parties to this Agreement any
      amendments which are required to be made to this schedule in order to
      comply with any change in law, regulation or any requirements from time to
      time imposed by the Bank of England, the Financial Services Authority or
      the European Central Bank (or, in any case, any other authority which
      replaces all or any of its functions) and any such determination shall, in
      the absence of manifest error, be conclusive and binding on all parties to
      this Agreement.

            

    

     

    

    
      
         

      

      
        91

        
          

        

      

      
         

      

    

    

     

    Schedule 7

     

    Form
of Insurance Letter

     

    To:                   [P&I
Club]

    [·]

    [·]

    [·]

    [·]

    

    From:               [·]

      
[Insert relevant Owner’s name]

      
[insert relevant Owner’s registered address]

     

    [·] 200[·]

    

    

    Dear
Sirs

    

    m.v.
[·] (the “Ship”)

    

    Certain
of our affiliates are obtaining finance from The Royal Bank of Scotland plc (the
“Bank”) secured by a
first ship mortgage over the Ship.  The Ship's insurances will also be
assigned to the Bank.

    

    You are
hereby authorised to send a copy of the Certificate of Entry for the Ship to the
Bank, c/o their lawyers, namely, Norton Rose of 126 Kolokotroni Street, 185 35
Piraeus, Greece.  Further, you are also irrevocably authorised to
provide the Bank from time to time with any other information whatsoever which
they may require relating to the entry of the Ship in the
association.

    

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

    

    

    

    

    

    

    

    ..............................................

    For and
on behalf of

    [·]

    [OWNER’S
NAME]

    

     

    
      
         

      

      
        92

        
          

        

      

      
         

      

    

    

     

    Schedule 8

     

    Form
of Trust Deed

     

    

    

    THIS DECLARATION OF TRUST made
by THE ROYAL BANK OF SCOTLAND
PLC (the “Security
Agent”) is made on [·] 2007 and is supplemental
to (and made pursuant to the terms of) a Facility Agreement dated [·] 2007 (the “Agreement”) and made between
(1) Aegean Marine Petroleum S.A. as Borrower, (2) the banks and financial
institutions mentioned in schedule 1 to the Agreement as the Banks and (3) The
Royal Bank of Scotland plc as Arranger, Agent, Security Agent, Issuing Bank and
Account Bank.   Words and expressions defined in the Agreement
shall have the same meaning when used in this Deed.

     

    NOW THIS DEED WITNESSETH as
follows:

     

    
      	
              1  

            	
              The
      Security Agent hereby acknowledges and declares that, from the date of
      this Deed, it holds and shall hold the Trust Property on trust for certain
      of the other Creditors on the terms and basis set out in the
      Agreement.

            

    

     

    
      	
              2  

            	
              The
      declaration and acknowledgement contained in paragraph 1 above shall
      be irrevocable.

            

    

     

    IN WITNESS whereof the
Security Agent has executed this Deed the day and year first above
written.

     

    
       

      
        	 	 	 
	
                EXECUTED as a DEED

              	)	 
	
                by

              	
                )

              	 
      
	
                for
      and on behalf of

              	
                )

              	 
      
	
                THE
      ROYAL BANK OF SCOTLAND PLC

              	
                )

              	
                ...............................

              
	
                as
      Security Agent

              	
                )

              	
                Attorney-in-fact

              
	
                in
      the presence of:

              	
                )

              	 
      
	 
      	 
      	 
      

      

      
        
           

        

        
          93

          
            

          

        

        
           

        

      

     

    Schedule 9

     

    Conditions
subsequent

     

    Part
1 - Collateral Ships

     

    

    
      	
              1  

            	
              Updated
      corporate authorisations/certificates of
  incumbency

            

    

     

    A list of
directors and officers of the Collateral Owner of the relevant Collateral Ship
specifying the names and positions of such persons and copies of the signatures
of the persons who have been authorised on behalf of such Collateral Owner to
sign such of the Security Documents referred to in this Part 1 and to which such
Collateral Owner is, or is to be, party and to give notices and communications,
including notices of drawing, under or in connection with such Security
Documents, certified (in a certificate dated no earlier than five (5) Banking
Days prior to the relevant Collateral Mortgage Date) by an officer of such
Collateral Owner to be, in the case of the list of directors and officers, true
complete and up to date and, in the case of the specimen signatures, true
signatures of such persons or a certificate by an officer of each of such
Collateral Owner that the list provided in respect of such Collateral Owner
pursuant to paragraph 4 of schedule 2, and that the specimen signatures
provided in respect of such Collateral Owner pursuant to paragraph 3 of
schedule 2, remain true, complete and up to date;

     

    
      	
              2  

            	
              Security
      Documents

            

    

     

    the
Collateral Mortgage for the relevant Collateral Ship (and any deed of covenant
collateral thereto as the Agent may in its absolute discretion require) duly
executed;

     

    
      	
              3  

            	
              Collateral
      Ship conditions

            

    

     

    evidence
that the relevant Collateral Ship:

     

                 
(a)  Registration
and Encumbrances

     

    is
permanently registered in the name of the relevant Collateral Owner under the
laws and flag of the relevant Flag State through the relevant Registry and that
the Collateral Ship and its Earnings, Insurances and Requisition Compensation
are free of Encumbrances (other than Permitted Encumbrances);

     

    
      	
              (b)  

            	
              Classification

            

    

     

    maintains
the relevant Classification free of all requirements and recommendations of the
relevant Classification Society; and

     

    
      	
              (c)  

            	
              Insurance

            

    

     

    is
insured in accordance with the provisions of the relevant Ship Security
Documents and all requirements of such Ship Security Documents in respect of
such insurance have been complied with (including without limitation,
confirmation from the protection and indemnity association or other insurer with
which the relevant Collateral Ship is, or is to be, entered for insurance or
insured against protection and indemnity risks (including oil pollution risks)
that any necessary declarations required by the association or insurer for the
removal of any oil pollution exclusion have been made and that any such
exclusion does not apply to such Collateral Ship);

     

    
      
         

      

      
        94

        
          

        

      

      
         

      

    

    
      	
              4  

            	
              Mortgage
      registration

            

    

     

    evidence
that the Mortgage of the relevant Collateral Ship has been registered against
such Collateral Ship under the laws and flag of the relevant Flag State through
the relevant Registry;

     

    
      	
              5  

            	
              Registration
      forms

            

    

     

    such
statutory forms duly signed by the Collateral Owner of the relevant Collateral
Ship as may be required by the Agent to perfect the security contemplated by the
Security Documents to be executed under this Part 1;

     

    
      	
              6  

            	
              Notices
      of assignment and acknowledgements

            

    

     

    copies of
duly executed notices of assignment and acknowledgements thereof in the forms
prescribed by the Ship Security Documents for the relevant Collateral
Ship;

     

    
      	
              7  

            	
              Owner’s
      opinion

            

    

     

    an
opinion of special legal advisers to the Agent on matters of the laws of the
country of incorporation of the Collateral Owner of the relevant Collateral
Ship;

     

    
      	
              8  

            	
              Flag
      State opinion

            

    

     

    an
opinion of special legal advisers to the Agent on matters of the laws of the
Flag State of the relevant Collateral Ship;

     

    
      	
              9  

            	
              Security
      Parties’ process agent

            

    

     

    a letter
from each Security Party’s agent for receipt of service of proceedings referred
to in each of the Security Documents referred to in this Part 1 and to which
such Security Party is a party, accepting its appointment under each such
Security Document; and

     

    
      	
              10  

            	
              Further
      opinions or conditions

            

    

     

    any such
further opinions or conditions as may be required by the Agent.

     

    
      
         

      

      
        95

        
          

        

      

      
         

      

    

    

     

    Part
2 - Additional Ships

    

     

    
      	
              1  

            	
              Constitutional
      documents

            

    

     

    Copies,
certified by an officer of the Additional Owner of the relevant Additional Ship
as true, complete and up to date copies of all documents which contain or
establish or relate to the constitution of that Additional Owner;

     

    
      	
              2  

            	
              Corporate
      authorisations

            

    

     

    copies of
resolutions of the directors and, if required, shareholders of the Additional
Owner of the relevant Additional Ship approving such of the Underlying Documents
and the Security Documents to which such Additional Owner is, or is to be, party
and authorising the signature, delivery and performance of such Additional
Owner’s obligations thereunder, certified (in a certificate dated no earlier
than five (5) Banking Days prior to the Additional Mortgage Date for such Ship)
by an officer of such Additional Owner as:

     

    
      	
              (i)  

            	
              being
      true and correct;

            

    

     

    
      	
              (ii)  

            	
              being
      duly passed at meetings of the directors of such Additional Owner and, if
      required, of the shareholders of such Additional Owner each duly convened
      and held;

            

    

     

    
      	
              (iii)  

            	
              not
      having been amended, modified or revoked;
and

            

    

     

    
      	
              (iv)  

            	
              being
      in full force and effect,

            

    

     

    together
with originals or certified copies of any powers of attorney issued by any such
Additional Owner pursuant to such resolutions;

     

    
      	
              3  

            	
              Specimen
      signatures

            

    

     

    copies of
the signatures of the persons who have been authorised on behalf of the
Additional Owner of the relevant Additional Ship to sign such of the Underlying
Documents and the Security Documents to which such Additional Owner is, or is to
be, party and to give notices and communications, including notices of drawing,
under or in connection with the Security Documents, certified (in a certificate
dated no earlier than five (5) Banking Days prior to the Additional Mortgage
Date for the relevant Additional Ship) by an officer of such Additional Owner as
being the true signatures of such persons;

     

    
      	
              4  

            	
              Certificates
      of incumbency

            

    

     

    a list of
directors and officers of Additional Owner of the relevant Additional Ship
specifying the names and positions of such persons, certified (in a certificate
dated no earlier than five (5) Banking Days prior to the Additional Mortgage
Date for the relevant Additional Ship) by an officer of such Additional Owner to
be true, complete and up to date;

     

    
      	
              5  

            	
              Other
      consents and approvals

            

    

     

    a
certificate (dated no earlier than five (5) Banking Days prior to the Additional
Mortgage Date for the relevant Additional Ship) from an officer of the relevant
Additional Owner that no consents, authorisations, licences or approvals are
necessary for such Additional Owner to guarantee and/or grant security for the
borrowing by the Borrower of the Overdraft or other borrowings or obligations
under the Security Documents pursuant to this Agreement and execute, deliver and
perform the Security Documents insofar as such Additional Owner is a party
thereto;

     

    
      
         

      

      
        96

        
          

        

      

      
         

      

    

    
      	
              6  

            	
              Underlying
      Documents

            

    

     

    a copy,
certified (in a certificate dated no earlier than five (5) Banking Days prior to
the Additional Mortgage Date for the relevant Additional Ship) as a true and
complete copy by an officer of the Borrower of the Management Agreement in
respect of such Ship;

     

    
      	
              7  

            	
              Security
      Documents

            

    

     

    the
Mortgage, the Deed of Covenant and the Manager’s Undertaking for the relevant
Additional Ship and the Owner’s Guarantee of the Additional Owner owning such
Additional Ship, each duly executed;

     

    
      	
              8  

            	
              Additional
      Ship conditions

            

    

     

    evidence
that the relevant Additional Ship:

     

    
      	
              (a)  

            	
              Registration
      and Encumbrances

            

    

     

    is
permanently registered in the name of the relevant Additional Owner under the
laws and flag of the relevant Flag State through the relevant Registry and that
the relevant Additional Ship and its Earnings, Insurances and Requisition
Compensation are free of Encumbrances (other than Permitted
Encumbrances);

     

    
      	
              (b)  

            	
              Classification

            

    

     

    maintains
the relevant Classification free of all requirements and recommendations of the
relevant Classification Society; and

     

    
      	
              (c)  

            	
              Insurance

            

    

     

    is
insured in accordance with the provisions of the relevant Ship Security
Documents and all requirements of such Ship Security Documents in respect of
such insurance have been complied with (including without limitation,
confirmation from the protection and indemnity association or other insurer with
which the relevant Additional Ship is, or is to be, entered for insurance or
insured against protection and indemnity risks (including oil pollution risks)
that any necessary declarations required by the association or insurer for the
removal of any oil pollution exclusion have been made and that any such
exclusion does not apply to the relevant Additional Ship);

     

    
      	
              9  

            	
              Mortgage
      registration

            

    

     

    evidence
that the Mortgage over the relevant Additional Ship has been registered against
such Ship under the laws and flag of the relevant Flag State through the
relevant Registry;

     

    
      	
              10  

            	
              Light
      displacement tonnage

            

    

     

    evidence
of the light displacement tonnage of the relevant Additional Ship;

     

    
      	
              11  

            	
              Registration
      forms

            

    

     

    such
statutory forms duly signed by the Additional Owner of the relevant Additional
Ship and the other Security Parties as may be required by the Agent to perfect
the security contemplated by the Security Documents to be executed under this
Part 2;

     

    
      	
              12  

            	
              Notices
      of assignment and acknowledgements

            

    

     

    copies of
duly executed notices of assignment and acknowledgements thereof in the forms
prescribed by the Ship Security Documents for the relevant Additional
Ship;

     

    
      
         

      

      
        97

        
          

        

      

      
         

      

    

    
      	
              13  

            	
              SMC/DOC

            

    

     

    a copy,
certified (in a certificate dated no earlier than five (5) Banking Days prior to
the Additional Mortgage Date for the relevant Additional Ship) as a true and
complete copy by an officer of the Borrower of the DOC issued to the Operator of
such Ship and the SMC for such Ship;

     

    
      	
              14  

            	
              ISPS
      Code compliance

            

    

     

    
      	
              (a)  

            	
              evidence
      satisfactory to the Agent that the relevant Additional Ship is subject to
      a ship security plan which complies with the ISPS Code;
  and

            

    

     

    
      	
              (b)  

            	
              a
      copy, certified (in a certificate dated no earlier than five (5) Banking
      Days prior to the Additional Mortgage Date for the relevant Additional
      Ship) as a true and complete copy by an officer of the Borrower of the
      ISSC for such Additional Ship;

            

    

     

    
      	
              15  

            	
              Insurance
      opinion

            

    

     

    an
insurance opinion (at the cost of the Borrower) from insurance consultants to
the Agent on the insurances effected or to be effected in respect of the
relevant Additional Ship;

     

    
      	
              16  

            	
              Insurance
      Letter

            

    

     

    the
Insurance Letter for the relevant Additional Ship duly executed;

     

    
      	
              17  

            	
              Owner’s
      opinion

            

    

     

    an
opinion of special legal advisers to the Agent on matters of the laws of the
country of incorporation of the Additional Owner of the relevant Additional
Ship;

     

    
      	
              18  

            	
              Flag
      State opinion

            

    

     

    an
opinion of special legal advisers to the Agent on matters of the laws of the
Flag State of the relevant Additional Ship;

     

    
      	
              19  

            	
              Security
      Parties’ process agent

            

    

     

    a letter
from each Security Party’s agent for receipt of service of proceedings referred
to in each of the Security Documents referred to in this Part 2 and to which
such Security Party is a party, accepting its appointment under each such
Security Document; and

     

    
      	
              20  

            	
              Further
      opinions or conditions

            

    

     

    any such
further opinions or conditions as may be required by the Agent.

     

    

     

    

    

     

    
      
         

      

      
        98

        
          

        

      

      
         

      

    

    

     

    
      	
              SIGNED
by

            	
              )

            	 
      
	
              for
      and on behalf of

            	
              )

            	
              .........................................

            
	
              AEGEAN
      MARINE PETROLEUM S.A.

            	
              )

            	
              Attorney-in-fact

            
	
              as
      Borrower

            	
              )

            	 
      

    

    

    

    

    
      	
              SIGNED
by

            	
              )

            	 
      
	
              for
      and on behalf of

            	
              )

            	 
      
	
              THE
      ROYAL BANK OF SCOTLAND PLC

            	
              )

            	
              .........................................

            
	
              as
      Arranger, Agent, Security Agent,

            	
              )

            	
              Attorney-in-fact

            
	
              Issuing
      Bank and Account Bank

            	
              )

            	 
      

    

    

    

    

    

    
      	
              SIGNED
by

            	
              )

            	 
      
	
              for
      and on behalf of

            	
              )

            	 
      
	
              THE
      ROYAL BANK OF SCOTLAND PLC

            	
              )

            	
              .........................................

            
	
              as
      Bank

            	
              )

            	
              Attorney-in-fact

            

    

    

    

    

    

    
      	
              SIGNED
by

            	
              )

            	 
      
	
              for
      and on behalf of

            	
              )

            	 
      
	
              HSH
      NORDBANK AG

            	
              )

            	
              .........................................

            
	
              as
      Bank

            	
              )

            	
              Attorney-in-fact

            
	 
      	 
      	 
      

    

    

    SK 23250 0002
870521

    
      
         

      

      
        99

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