Document:

d803364_ex4-72.htm

    
 

    Exhibit
4.72

    
 

    EXECUTION
VERSION

    

    

     

    

    
      
         

        
          
            
              	
                    	
                       

                    	
                       

                    

            

          

        

         

         

      

      

    

    CREDIT
FACILITY PROVIDING FOR A

    

    SENIOR
SECURED TERM LOAN

    

    OF UP TO
US$95,000,000

    

    TO BE
MADE AVAILABLE TO

    

    JEKE
SHIPPING COMPANY LIMITED,

    NOIR
SHIPPING S.A.,

     

    AND

     

    AMALFI
SHIPPING COMPANY LIMITED,

    as joint
and several Borrowers,

    

    BY

    

    HSH
NORDBANK AG,

    as
Mandated Lead Arranger, Underwriter, Administrative Agent and Security
Trustee,

    

    and the
Banks and Financial Institutions

    identified
on Schedule 1, as Lenders

     

    

    
      
        

        
          
             

            
              
                
                  	
                        	
                           

                        	
                           

                        

                

              

            

             

             

          

        

      

    

    

    

    

    November
8, 2007

    

    

    

    

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    CONTENTS

    

     PAGE

     

    
      	
              1.

            	
              DEFINITIONS 

            	
              1

            

    

     

    
      	
               
      

            	
              1.1

            	
              Specific
      Definitions 

            	
              1

            

    

     

    
      
        	
                 
      

              	
                1.2

              	Computation
      of Time Periods; Other Definitional Provisions	
                16

              

      

    

     

    
      	
               
      

            	
              1.3

            	
              Accounting
      Terms 

            	
              16

            

    

     

    
      	
               
      

            	
              1.4

            	
              Certain
      Matters Regarding Materiality 

            	
              17

            

    

     

    
      	
               
      

            	
              1.5

            	
              Forms
      of Documents 

            	
              17

            

    

     

    
      	
              2.

            	
              REPRESENTATIONS
      AND WARRANTIES 

            	
              17

            

    

     

    
      	
               
      

            	
              2.1

            	
              Representations
      and Warranties 

            	
              17

            

    

     

    
      	
               
      

            	
              (a)

            	
              Due
      Organization and Power 

            	
              17

            

    

    
      	
               
      

            	
              (b)

            	
              Authorization
      and Consents 

            	
              17

            

    

    
      	
               
      

            	
              (c)

            	
              Binding
      Obligations 

            	
              17

            

    

    
      	
               
      

            	
              (d)

            	
              No
      Violation 

            	
              17

            

    

    
      	
               
      

            	
              (e)

            	
              Filings;
      Stamp Taxes 

            	
              18

            

    

    
      	
               
      

            	
              (f)

            	
              Litigation 

            	
              18

            

    

    
      	
               
      

            	
              (g)

            	
              No
      Default 

            	
              18

            

    

    
      	
               
      

            	
              (h)

            	
              Vessels 

            	
              18

            

    

    
      	
               
      

            	
              (i)

            	
              Insurance 

            	
              18

            

    

    
      	
               
      

            	
              (j)

            	
              Financial
      Information 

            	
              18

            

    

    
      	
               
      

            	
              (k)

            	
              Tax
      Returns 

            	
              19

            

    

    
      	
               
      

            	
              (l)

            	
              Chief
      Executive Office 

            	
              19

            

    

    
      	
               
      

            	
              (m)

            	
              Foreign
      Trade Control Regulations; OFAC 

            	
              19

            

    

    
      	
               
      

            	
              (n)

            	
              Equity
      Ownership 

            	
              19

            

    

    
      	
               
      

            	
              (o)

            	
              Environmental
      Matters and Claims 

            	
              19

            

    

    
      	
               
      

            	
              (p)

            	
              Compliance
      with ISM Code, the ISPS Code, the MTSA and Annex VI 

            	
              20

            

    

    
      	
               
      

            	
              (q)

            	
              No
      Threatened Withdrawal of DOC, ISSC, SMC or IAPPC 

            	
              20

            

    

    
      	
               
      

            	
              (r)

            	
              Liens 

            	
              20

            

    

    
      	
               
      

            	
              (s)

            	
              Financial
      Indebtedness 

            	
              21

            

    

    
      	
               
      

            	
              (t)

            	
              No
      Proceedings to Dissolve 

            	
              21

            

    

    
      	
               
      

            	
              (u)

            	
              Solvency 

            	
              21

            

    

    
      	
               
      

            	
              (v)

            	
              Pari
      Passu Ranking 

            	
              21

            

    

    
      	
               
      

            	
              (w)

            	
              Taxes
      on Payments 

            	
              21

            

    

    
      	
               
      

            	
              (x)

            	
              Jurisdiction/Governing
      Law 

            	
              21

            

    

    
      	
               
      

            	
              (y)

            	
              Charters 

            	
              21

            

    

    
      	
               
      

            	
              (z)

            	
              Compliance
      with Laws 

            	
              21

            

    

    
      	
               
      

            	
              (aa)

            	
              Survival 

            	
              21

            

    

    

      
        
          	
                  3.

                	
                  THE
      ADVANCES 

                	
                  22

                

        

      

       

    

    
      
         

      

      
        i

        
          

        

      

      
         

      

    

     

    
      
        	
                 
      

              	
                3.1

              	
                (a)

              	
                Purposes 

              	
                22

              

         

        	 	 	 (b)	Making
      of the Advances 	
                 22

              

      

    

     

    
      	
               
      

            	
              3.2

            	
              Drawdown
      Notice 

            	
              23

            

    

     

    
      	
               
      

            	
              3.3

            	
              Effect
      of Drawdown Notice 

            	
              23

            

    

     

    
      	
               
      

            	
              3.4

            	
              Notation
      of Advances 

            	
              23

            

    

     

     

    
      	
              4.

            	
              CONDITIONS 

            	
              24

            

    

     

     

    
      	
               
      

            	
              4.1

            	
              Conditions
      Precedent to the Effectiveness of this Credit Facility
      Agreement 

            	
              24

            

    

     

    
      	
               
      

            	
              (a)

            	
              Corporate
      Authority 

            	
              24

            

    

    
      	
               
      

            	
              (b)

            	
              The
      Credit Facility Agreement and the Note 

            	
              24

            

    

    
      	
               
      

            	
              (c)

            	
              Guarantor
      Documents 

            	
              25

            

    

    
      	
               
      

            	
              (d)

            	
              Solvency 

            	
              25

            

    

    
      	
               
      

            	
              (e)

            	
              Approved
      Manager Documents 

            	
              25

            

    

    
      	
               
      

            	
              (f)

            	
              Environmental
      Claims 

            	
              25

            

    

    
      	
               
      

            	
              (g)

            	
              Fees 

            	
              25

            

    

    
      	
               
      

            	
              (h)

            	
              Accounts 

            	
              25

            

    

    
      	
               
      

            	
              (i)

            	
              Compliance
      Certificate 

            	
              25

            

    

    
      	
               
      

            	
              (j)

            	
              Vessel
      Appraisal and Inspection 

            	
              25

            

    

    
      	
               
      

            	
              (k)

            	
              Money
      Laundering Due Diligence 

            	
              26

            

    

    
      	
               
      

            	
              (l)

            	
              Legal
      Opinions 

            	
              26

            

    

    
      	
               
      

            	
              (m)

            	
              Know
      Your Customer Requirements 

            	
              26

            

    

     

    
      	
               
      

            	
              4.2

            	
              Conditions
      Precedent re Delivery Advances 

            	
              26

            

    

     

    
      	
               
      

            	
              (a)

            	
              The
      Vessels 

            	
              27

            

    

    
      	
               
      

            	
              (b)

            	
              Vessel
      Documents 

            	
              27

            

    

    
      	
               
      

            	
              (c)

            	
              Additional
      Documents 

            	
              27

            

    

    
      	
               
      

            	
              (d)

            	
              Vessel
      Liens 

            	
              28

            

    

    
      	
               
      

            	
              (e)

            	
              ISM
      DOC 

            	
              28

            

    

    
      	
               
      

            	
              (f)

            	
              Process
      Agent 

            	
              28

            

    

    
      	
               
      

            	
              (g)

            	
              Legal
      Opinions 

            	
              28

            

    

     

     

    
      	
               
      

            	
              4.3

            	
              Further
      Conditions Precedent 

            	
              28

            

    

     

    
      	
               
      

            	
              (a)

            	
              Drawdown
      Notice 

            	
              29

            

    

    
      	
               
      

            	
              (b)

            	
              Representations
      and Warranties 

            	
              29

            

    

    
      	
               
      

            	
              (c)

            	
              No
      Event of Default 

            	
              29

            

    

    
      	
               
      

            	
              (d)

            	
              No
      Change in Laws 

            	
              29

            

    

    
      	
               
      

            	
              (e)

            	
              No
      Material Adverse Effect 

            	
              29

            

    

     

     

    
      	
               
      

            	
              4.4

            	
              Breakfunding
      Costs 

            	
              29

            

    

     

    
      	
               
      

            	
              4.5

            	
              Satisfaction
      after Drawdown 

            	
              29

            

    

    
       

      
        
          	
                  5.

                	
                  REPAYMENT
      AND PREPAYMENT 

                	
                  29

                

        

      

       

    

    
      
         

      

      
        ii

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              5.1

            	
              Repayment 

            	
              29

            

    

     

    
      	
               
      

            	
              5.2

            	
              Voluntary
      Prepayment; No Re-Borrowing 

            	
              30

            

    

     

    
      	
               
      

            	
              5.3

            	
              Mandatory
      Prepayment 

            	
              30

            

    

     

    
      	
               
      

            	
              (a)

            	
              Sale
      or Loss of Vessel 

            	
              30

            

    

    
      	
               
      

            	
              (b)

            	
              Guarantor
      Share Offering 

            	
              31

            

    

     

    
      	
               
      

            	
              5.4

            	
              Interest
      and Costs with Prepayments/Application of
Prepayments 

            	
              31

            

    

     

    
      	
              6.

            	
              INTEREST
      AND RATE 

            	
              31

            

    

     

    
      	
               
      

            	
              6.1

            	
              Applicable
      Rate 

            	
              31

            

    

     

    
      	
               
      

            	
              6.2

            	
              Default
      Rate 

            	
              31

            

    

     

    
      	
               
      

            	
              6.3

            	
              Interest
      Periods 

            	
              31

            

    

     

    
      	
               
      

            	
              6.4

            	
              Interest
      Payments 

            	
              32

            

    

     

    
      	
              7.

            	
              PAYMENTS 

            	
              32

            

    

     

    
      	
               
      

            	
              7.1

            	
              Place
      of Payments, No Set Off 

            	
              32

            

    

     

    
      	
               
      

            	
              7.2

            	
              Tax
      Credits 

            	
              32

            

    

     

    
      	
               
      

            	
              7.3

            	
              Sharing
      of Setoffs 

            	
              32

            

    

     

    
      	
               
      

            	
              7.4

            	
              Computations;
      Banking Days 

            	
              33

            

    

     

    
      	
              8.

            	
              EVENTS
      OF DEFAULT 

            	
              33

            

    

     

    
      	
               
      

            	
              8.1

            	
              Events
      of Default 

            	
              33

            

    

     

    
      	
               
      

            	
              (a)

            	
              Non-Payment
      of Principal 

            	
              33

            

    

    
      	
               
      

            	
              (b)

            	
              Non-Payment
      of Interest or Other Amounts 

            	
              33

            

    

    
      	
               
      

            	
              (c)

            	
              Representations 

            	
              33

            

    

    
      	
               
      

            	
              (d)

            	
              Impossibility;
      Illegality 

            	
              33

            

    

    
      	
               
      

            	
              (e)

            	
              Mortgage 

            	
              33

            

    

    
      	
               
      

            	
              (f)

            	
              Covenants 

            	
              33

            

    

    
      	
               
      

            	
              (g)

            	
              Debt 

            	
              34

            

    

    
      	
               
      

            	
              (h)

            	
              Ownership
      of Borrowers 

            	
              34

            

    

    
      	
               
      

            	
              (i)

            	
              Bankruptcy 

            	
              34

            

    

    
      	
               
      

            	
              (j)

            	
              Termination
      of Operations; Sale of Assets 

            	
              34

            

    

    
      	
               
      

            	
              (k)

            	
              Judgments 

            	
              34

            

    

    
      	
               
      

            	
              (l)

            	
              Inability
      to Pay Debts 

            	
              34

            

    

    
      	
               
      

            	
              (m)

            	
              Change
      in Financial Position 

            	
              34

            

    

    
      	
               
      

            	
              (n)

            	
              Change
      in Control 

            	
              34

            

    

    
      	
               
      

            	
              (o)

            	
              Cross-Default 

            	
              35

            

    

    
       

      
        
          	 	8.2 	Indemnification	
                   35

                

        

      

    

    
      
         

      

      
        iii

        
          

        

      

      
         

      

    

    
      
      

    

     

    
      
        	 	 	 	 
	
                 
      

              	
                8.3

              	
                Application
      of Moneys 

              	
                35

              

      

    

     

    
      	
              9.

            	
              COVENANTS 

            	
              36

            

    

     

    
      	
               
      

            	
              9.1

            	
              Affirmative
      Covenants 

            	
              36

            

    

     

    
      	
               
      

            	
              (a)

            	
              Performance
      of Agreements 

            	
              36

            

    

    
      	
               
      

            	
              (b)

            	
              Notice
      of Default, etc 

            	
              36

            

    

    
      	
               
      

            	
              (c)

            	
              Obtain
      Consents 

            	
              36

            

    

    
      	
               
      

            	
              (d)

            	
              Financial
      Information 

            	
              36

            

    

    
      	
               
      

            	
              (e)

            	
              Vessel
      Valuations 

            	
              37

            

    

    
      	
               
      

            	
              (f)

            	
              Corporate
      Existence 

            	
              38

            

    

    
      	
               
      

            	
              (g)

            	
              Books
      and Records 

            	
              38

            

    

    
      	
               
      

            	
              (h)

            	
              Taxes
      and Assessments 

            	
              38

            

    

    
      	
               
      

            	
              (i)

            	
              Inspection 

            	
              38

            

    

    
      	
               
      

            	
              (j)

            	
              Inspection
      and Survey Reports 

            	
              38

            

    

    
      	
               
      

            	
              (k)

            	
              Compliance
      with Statutes, Agreements, etc 

            	
              38

            

    

    
      	
               
      

            	
              (l)

            	
              Environmental
      Matters 

            	
              38

            

    

    
      
        	
                 
      

              	
                (m)

              	
                Vessel
      Management 

              	
                39

              
	 	(n) 	ISM
      Code, ISPS Code, MTSA and Annex VI Matters 	
                 39

              

      

    

    
      
      

    

    
      	
               
      

            	
              (o)

            	
              Brokerage
      Commissions, etc 

            	
              39

            

    

    
      	
               
      

            	
              (p)

            	
              Deposit
      Accounts; Assignment 

            	
              39

            

    

    
      	
               
      

            	
              (q)

            	
              Insurance 

            	
              39

            

    

    
      
        	
                 
      

              	
                (r)

              	
                Interest
      Rate Agreements 

              	
                40

              
	 	(s) 	Compliance
      with Anti-Money Laundering and OFAC 	
                 40

              

      

    

    
      
      

    

     

    
      	
               
      

            	
              9.2

            	
              Negative
      Covenants 

            	
              41

            

    

     

    
      	
               
      

            	
              (a)

            	
              Liens 

            	
              41

            

    

    
      
        	
                 
      

              	
                (b)

              	
                Debt 

              	
                41

              
	 	(c)	Change
      of Flag, Class, Management or Ownership	
                 41

              

      

    

    
      
      

    

    
      	
               
      

            	
              (d)

            	
              Chartering 

            	
              41

            

    

    
      	
               
      

            	
              (e)

            	
              Change
      in Business 

            	
              41

            

    

    
      	
               
      

            	
              (f)

            	
              Sale
      or Pledge of Shares 

            	
              41

            

    

    
      	
               
      

            	
              (g)

            	
              Sale
      of Assets 

            	
              41

            

    

    
      	
               
      

            	
              (h)

            	
              Changes
      in Offices 

            	
              42

            

    

    
      	
               
      

            	
              (i)

            	
              Consolidation
      and Merger 

            	
              42

            

    

    
      	
               
      

            	
              (j)

            	
              Change
      Fiscal Year 

            	
              42

            

    

    
      	
               
      

            	
              (k)

            	
              Limitations
      on Ability to Make Distributions 

            	
              42

            

    

    
      	
               
      

            	
              (l)

            	
              Use
      of Corporate Funds 

            	
              42

            

    

    
      	
               
      

            	
              (m)

            	
              Issuance
      of Shares 

            	
              42

            

    

    
      	
               
      

            	
              (n)

            	
              No
      Money Laundering 

            	
              42

            

    

    
      	
               
      

            	
              (o)

            	
              Accounts 

            	
              42

            

    

    
      	
               
      

            	
              (p)

            	
              Dividends
      and Distributions to the Guarantor 

            	
              43

            

    

    
      	
               
      

            	
              (q)

            	
              Use
      of Proceeds 

            	
              43

            

    

    
      	
               
      

            	
              (r)

            	
              Guarantor’s
      Chief Executive Officer 

            	
              43

            

    

    
       

      
        	
                 
      

              	
                9.3

              	
                Financial
      Covenants 

              	
                43

              

      

       

    

     

    
      
        
        

      

      
        iv

        
          

        

      

      
        
        

      

    

    
      	
               
      

            	
              (a)

            	
              Adjusted
      Net Worth 

            	
              43

            

    

    
      	
               
      

            	
              (b)

            	
              EBITDA
      to Fixed Charges 

            	
              43

            

    

    
      	
               
      

            	
              (c)

            	
              Minimum
      Liquidity 

            	
              43

            

    

     

    
      	
               
      

            	
              9.4

            	
              Asset
      Maintenance 

            	
              43

            

    

     

    
      	
              10.

            	
              ASSIGNMENT 

            	
              44

            

    

     

    
      	
              11.

            	
              ILLEGALITY,
      INCREASED COST, NON-AVAILABILITY, ETC 

            	
              44

            

    

     

    
      	
               
      

            	
              11.1

            	
              Illegality 

            	
              44

            

    

     

    
      	
               
      

            	
              11.2

            	
              Increased
      Costs 

            	
              44

            

    

     

    
      	
               
      

            	
              11.3

            	
              Nonavailability
      of Funds 

            	
              45

            

    

     

    
      	
               
      

            	
              11.4

            	
              Lender's
      Certificate Conclusive 

            	
              46

            

    

     

    
      	
               
      

            	
              11.5

            	
              Compensation
      for Losses 

            	
              46

            

    

     

    
      	
              12.

            	
              CURRENCY
      INDEMNITY 

            	
              46

            

    

     

    
      	
               
      

            	
              12.1

            	
              Currency
      Conversion 

            	
              46

            

    

     

    
      	
               
      

            	
              12.2

            	
              Change
      in Exchange Rate 

            	
              46

            

    

     

    
      	
               
      

            	
              12.3

            	
              Additional
      Debt Due 

            	
              46

            

    

     

    
      	
               
      

            	
              12.4

            	
              Rate
      of Exchange 

            	
              46

            

    

     

    
      	
              13.

            	
              FEES
      AND EXPENSES 

            	
              46

            

    

     

    
      	
               
      

            	
              13.1

            	
              Fees 

            	
              46

            

    

     

    
      	
               
      

            	
              13.2

            	
              Expenses 

            	
              47

            

    

     

    
      	
              14.

            	
              APPLICABLE
      LAW, JURISDICTION AND WAIVER 

            	
              47

            

    

     

    
      	
               
      

            	
              14.1

            	
              Applicable
      Law 

            	
              47

            

    

     

    
      	
               
      

            	
              14.2

            	
              Jurisdiction 

            	
              47

            

    

     

    
      	
               
      

            	
              14.3

            	
              Waiver
      of Jury Trial 

            	
              48

            

    

     

    
      	
              15.

            	
              THE
      AGENTS 

            	
              48

            

    

     

    
      	
               
      

            	
              15.1

            	
              Appointment
      of Agents 

            	
              48

            

    

     

    
      	
               
      

            	
              15.2

            	
              Security
      Trustee as Trustee 

            	
              48

            

    

     

    
      	
               
      

            	
              15.3

            	
              Distribution
      of Payments 

            	
              48

            

    

     

    
      	
               
      

            	
              15.4

            	
              Holder
      of Interest in Note 

            	
              49

            

    

     

    
      
        	
                 
      

              	
                15.5

              	
                No
      Duty to Examine, Etc.

              	
                49

              

      

       

      
        
          	
                   
      

                	
                  15.6

                	
                  Agents
      as Lenders

                	
                  49

                

        

         

        
          
             

          

          
            v

            
              

            

          

          
             

          

        

    

     

    
      
        
          
            	
                     
      

                  	
                    15.7

                  	
                    Acts
      of the Agents

                  	
                    49

                  

          

        

      

    

     

    
      
        	
                 
      

              	
                15.8

              	
                Certain
      Amendments

              	
                50

              

      

    

     

    
      
        	
                 
      

              	
                15.9

              	
                Assumption
      re Event of Default

              	
                51

              

      

    

     

    
      
        	 	15.10	Limitations
      of Liability 	
                 51

              

      

    

     

    
      
        	
                 
      

              	15.11	Indemnification
      of the Agents 	
                51

              

      

    

     

    
      
        	
                 
      

              	15.12 	Consultation
      with Counsel 	
                51

              

      

    

     

    
      
        	
                 
      

              	15.13 	Resignation 	
                52

              

      

    

     

    
      
        	
                 
      

              	15.14 	Representations
      of Lenders 	
                52

              

      

    

     

    
      
        	
                 
      

              	15.15 	Notification
      of Event of Default 	
                52

              

      

    

     

    
      
        	
                 
      

              	15.16 	No
      Agency or Trusteeship if not Syndicated 	
                52

              

      

    

     

    
      
        	
                 
      

              	15.17 	Nature
      of Duties 	
                52

              

      

    

     

    
      
        	
                 
      

              	15.18 	Delegation
      of Power 	
                53

              

      

    

     

    
      	
              16.

            	
              NOTICES
      AND DEMANDS 

            	
              53

            

    

     

    
      	
               
      

            	
              16.1

            	
              Notices 

            	
              53

            

    

     

    
      	
              17.

            	
              MISCELLANEOUS 

            	
              53

            

    

     

    
      	
               
      

            	
              17.1

            	
              Time
      of Essence 

            	
              53

            

    

     

    
      	
               
      

            	
              17.2

            	
              Unenforceable,
      etc., Provisions–Effect 

            	
              53

            

    

     

    
      	
               
      

            	
              17.3

            	
              References 

            	
              53

            

    

     

    
      	
               
      

            	
              17.4

            	
              Further
      Assurances 

            	
              54

            

    

     

    
      	
               
      

            	
              17.5

            	
              Prior
      Agreements, Merger 

            	
              54

            

    

     

    
      	
               
      

            	
              17.6

            	
              Entire
      Agreement; Amendments 

            	
              54

            

    

     

    
      	
               
      

            	
              17.7

            	
              Indemnification 

            	
              54

            

    

     

    
      	
               
      

            	
              17.8

            	
              Headings 

            	
              55

            

    

     

    
      
        	
                 
      

              	
                17.9

              	
                Waiver
      of Immunity 

              	
                55

              
	 	 	 	 
	 	17.10 	USA
      Patriot Act Notice; OFAC and Bank Secrecy Act  	
                 55

              

      

    

     

    
      
      

    

    
      
         

      

      
        vi

        
          

        

      

      
         

      

    

    

    
      	
               
      

            	
              SCHEDULE

            

    

    

    
      	
              1

            	
              The
      Lenders and the Initial Commitments

            

    

    
      	
              2

            	
              The
      Vessels

            

    

    
      	
              3

            	
              Financial
      Indebtedness

            

    

    

    EXHIBITS

     

    

      
        
          
            	 
      	
                    A

                  	
                    Form
      of Note

                  
	 
      	
                    B

                  	
                    Form
      of Guaranty

                  
	 
      	
                    C-1

                  	
                    Form
      of Retention Account Pledge

                  
	 
      	
                    C-2

                  	
                    Form
      of Earnings Account Pledge

                  
	 
      	
                    C-3

                  	
                    Form
      of Debt Service Reserve Account Pledge

                  
	 
      	
                    D

                  	
                    Form
      of Mortgage

                  
	 
      	
                    E

                  	
                    Form
      of Earnings Assignment

                  
	 
      	
                    F

                  	
                    Form
      of Insurances Assignment

                  
	 
      	
                    G

                  	
                    Form
      of Assignment and Assumption Agreement

                  
	 
      	
                    H

                  	
                    Form
      of Compliance Certificate

                  
	 
      	
                    I

                  	
                    Form
      of Drawdown Notice

                  
	 
      	
                    J

                  	
                    Form
      of Interest Notice

                  
	 
      	
                    K

                  	
                    Form
      of Approved Manager’s
Undertaking

                  

          

        

      

      
        
           

        

        
          vii

          
            

          

        

        
           

        

      

    

    

    SENIOR SECURED TERM CREDIT
FACILITY

     

    THIS
SENIOR SECURED TERM CREDIT FACILITY AGREEMENT (this “Credit Facility Agreement”)
is made as of the __ day of September, 2007, by and among (1) JEKE
SHIPPING COMPANY LIMITED (“Jeke”), a corporation organized and existing under
the laws of the Republic of Liberia, NOIR SHIPPING S.A. (“Noir”), a corporation
organized and existing under the laws of the Republic of the Marshall Islands
and AMALFI SHIPPING COMPANY LIMITED (“Amalfi”), a corporation organized and
existing under the laws of the Republic of the Marshall Islands, as joint and
several borrowers (together the “Borrowers” and each a “Borrower”), (2) the
banks and financial institutions listed on Schedule 1, as lenders (together with
any bank or financial institution which becomes a Lender pursuant to Section 10,
the “Lenders”) and (3) HSH NORDBANK AG (“HSH”), as mandated lead arranger
(in such capacity, the “Mandated Lead Arranger”), underwriter (in such capacity,
the “Underwriter”), administrative agent for the Lenders (in such capacity, the
“Administrative Agent”) and security trustee for the Lenders (in such capacity,
the “Security Trustee”).

     

    WITNESSETH
THAT:

     

    WHEREAS,
at the request of the Borrowers, HSH has agreed to serve in its capacities as
Mandated Lead Arranger, Underwriter, Administrative Agent and Security Trustee
under the terms of this Credit Facility Agreement and the Lenders have agreed to
provide to the Borrowers a senior secured credit facility for a term loan to be
made available in three tranches, one per Vessel (as defined below), in the
aggregate amount of the lesser of US$95,000,000 or 65% of the Fair Market Value
of the Vessels, to partly finance the acquisition of the Vessels;

     

    NOW,
THEREFORE, in consideration of the premises set forth above, the covenants and
agreements hereinafter set forth, and other good and valuable consideration, the
receipt and adequacy of which are hereby acknowledged, the parties hereto agree
as set forth below:

     

    
      	
              1.

            	
              DEFINITIONS

            

    

     

    1.1           Specific
Definitions.  In this Credit Facility Agreement the words and
expressions specified below shall, except where the context otherwise requires,
have the meanings attributed to them below:

     

    
      	
              “Acceptable
      Accounting Firm”

            	
              means
      Deloitte & Touche, or such other recognized international accounting
      firm as shall be approved by the Administrative Agent, such approval not
      to be unreasonably withheld;

            	 
      

       

      	
              “Account
      Pledge(s)”

            	
              means
      each of the pledge agreements to be executed by the Borrowers in favor of
      the Finance Parties in respect of the Earnings Accounts, Debt Service
      Reserve Account and Retention Account, each pursuant to
      Section 4.1(h), and substantially in the form set out in Exhibits
      C-1, C-2 and C-3 respectively;

            	 
      

       

       

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

       

      
        
          	
                  “Accounting
      Period”

                	
                  means
      each consecutive period of three months falling during the period (ending
      on the last day in March, June, September and December of each year) for
      which quarterly accounting information is required to be provided to the
      Administrative Agent hereunder;

                   

                	 
      
	
                  “Adjusted
      Net Worth”

                	
                  means,
      measured at the end of an Accounting Period, the amount of Total Assets
      (as adjusted to include the aggregate Fair Market Value of each of the
      vessels owned by the Guarantor and each of its Subsidiaries) less
      Consolidated Debt as stated in then most recent accounting information
      delivered to the Administrative Agent hereunder;

                   

                	 
      
	
                  “Administrative
      Agent”

                	
                  shall
      have the meaning ascribed thereto in the preamble;

                   

                	 
      
	
                  “Advance(s)”

                	
                  means
      any amount advanced to the Borrowers with respect to the Facility or (as
      the context may require) the aggregate amount of all such Advances for the
      time being outstanding, provided, however, that
      only one Advance shall be made per Tranche and that no Advance shall be
      made available after the Final Availability Date;

                   

                	 
      
	
                  “Affiliate”

                	
                  means
      with respect to any Person, any other Person directly or indirectly
      controlled by or under common control with such Person.  For the
      purposes of this definition, “control” (including, with correlative
      meanings, the terms “controlled by” and “under common control with”) as
      applied to any Person means the possession directly or indirectly of the
      power to direct or cause the direction of the management and policies of
      that Person whether through ownership of voting securities or by contract
      or otherwise;

                   

                	 
      
	
                  “Agents”

                	
                  means
      each of the Administrative Agent and the Security Trustee;

                   

                	 
      
	
                  “Amalfi”

                	
                  shall
      have the meaning ascribed thereto in the preamble;

                   

                	 
      
	
                  “Annex
      VI”

                	
                  means
      Regulations for the Prevention of Air Pollution from Ships to the
      International Convention for the Prevention of Pollution from Ships 1973
      (as modified in 1978 and 1997);

                   

                	 
      
	
                  “Applicable
      Rate”

                	
                  means
      any rate of interest applicable to  the Facility from time to
      time pursuant to Section 6.1;

                   

                	 
      

        

         

         

        
          
            
            

          

          
            2

            
              

            

          

          
            
            

          

        

         

         

        	
                “Approved
      Manager”

              	
                means
      a direct or indirect wholly-owned subsidiary of the Guarantor or any other
      company approved by the Lenders from time to time as the manager of a
      Vessel, which approval shall not unreasonably be withheld;

                 

              	 
      
	
                “Approved
      Manager’s Undertaking(s)”

              	
                means
      each of the undertakings made or to be made by an Approved Manager in
      favor of the Lenders in respect of a Vessel, substantially in the form set
      out in Exhibit K;

                 

              	 
      
	
                “Assigned
      Moneys”

              	
                means
      sums assigned to or received by the Agents pursuant to any Security
      Document;

                 

              	 
      
	
                “Assignment
      and Assumption Agreement(s)”

              	
                means
      the Assignment and Assumption Agreement(s) executed pursuant to
      Section 10 substantially in the form set out in
      Exhibit G;

                 

              	 
      
	
                “Assignment
      Notices”

              	
                means notices
      with respect to the Earnings Assignments substantially in the form set out
      in Exhibit 1 thereto and notices with respect to the Insurances
      Assignments substantially in the form set out in Exhibit 3
      thereto;

                 

              
	
                “Assignments”

              	
                means
      the Earnings Assignments and the Insurances Assignments;

                 

              	 
      
	
                “Banking
      Day(s)”

              	
                means
      day(s) on which banks are open for the transaction of business in London,
      England, New York, New York (United States of America), Piraeus, Greece
      and Hamburg, Germany;

                 

              	 
      
	
                “Borrower(s)”

              	
                shall
      have the meaning ascribed thereto in the preamble;

                 

              	 
      
	
                “Change
      of Control”

              	
                means
      (a) any “person” (as such term is used in Sections 13(d) and 14(d) of the
      Exchange Act), other than a member of the immediate family of Evangelos
      Pistiolis, becomes the beneficial owner (as defined in Rules 13d-3 and
      13d-5 under the Exchange Act), directly or indirectly, of more than 35% of
      the total voting power or ownership interest of the Guarantor or (b) 
      the Board of Directors of the Guarantor ceases to consist of a majority of
      the directors existing on the date hereof or directors nominated by at
      least two-thirds (2/3) of the then existing directors;

                 

              	 
      
	
                “Charterer(s)”

              	
                shall
      mean any bareboat charterer or time charterer who has entered into a
      Charter Party Agreement with any of the Borrowers;

                 

              	 
      
	
                “Charter
      Party Agreement(s)”

              	
                shall
      mean any bareboat charter agreement or any time 

              	 
      

         

        
          
            
            

          

          
            3

            
              

            

          

          
            
            

          

        

         

         

        
          	 	
                  charter
      agreement with any of the Borrowers, having a duration of longer than
      eleven (11) months including but not limited to the existing charters with
      respect to each Vessel; 

                	 
	
                  “Classification
      Society”

                	
                  means
      Lloyd’s Register or any other member of the International Association of
      Classification Societies, as approved by the Administrative Agent, with
      whom any of the Vessels are entered and who conducted periodic physical
      surveys and/or inspections of any of the Vessels;

                   

                	 
      
	
                  “CLO"

                	
                  shall
      have the meaning ascribed thereto in Section 10;

                   

                	 
      
	
                  “Code”

                	
                  means
      the Internal Revenue Code of 1986, as amended, and any successor statute
      and regulation promulgated thereunder;

                   

                	 
      
	
                  “Collateral”

                   

                	
                  means
      all property or other assets, real or personal, tangible or intangible,
      whether now owned or hereafter acquired in which any Agent or any Lender
      has been granted a security interest pursuant to a Security
      Document;

                   

                	 
      
	
                  “Commitment(s)”

                	
                  means
      in relation to a Lender, the portion of the Facility set out opposite its
      name in Schedule 1 or, as the case may be, as reduced by or set out
      in any relevant Assignment and Assumption Agreement, as such amount shall
      be reduced from time to time pursuant to Section 5;

                   

                	 
      
	
                  “Commitment
      Fee”

                	
                  shall
      have the meaning ascribed thereto in Section 13.1;

                   

                	 
      
	
                  “Commitment
      Termination Date”

                	
                  shall
      mean February 28, 2008;

                   

                	 
      
	
                  “Compliance
      Certificate”

                	
                  means
      a certificate certifying the compliance by each of the Borrowers and/or
      the Guarantor, as the case may be, with all of its respective covenants
      contained herein and showing the calculations thereof in reasonable
      detail,  executed and delivered by the chief financial officer
      of the Guarantor to the Administrative Agent from time to time pursuant to
      Section 9.1(d) in the form set out in Exhibit H, or in such
      other form as the Administrative Agent may agree;

                   

                	 
      
	
                  “Consent
      and Agreement”

                	
                  means
      the consent and agreement relating to this Credit Facility Agreement to be
      executed by the Guarantor in the form attached hereto;

                   

                	 
      

        

         

         

        
          
            
            

          

          
            4

            
              

            

          

          
            
            

          

        

         

        	
                “Consolidated
      Debt”

              	
                means,
      measured at the end of an Accounting Period for the Guarantor and its
      Subsidiaries on a consolidated basis, the aggregate amount of Debt due by
      the Security Parties as stated in the then most recent accounting
      information delivered to the Administrative Agent hereunder;

                 

              	 
      
	
                “Consolidated
      Financial Indebtedness”

              	
                means,
      measured at the end of each Accounting Period, the aggregate amount of
      Financial Indebtedness (including current maturities) of the Guarantor and
      its Subsidiaries on a consolidated basis as stated in the then most recent
      accounting information delivered to the Administrative Agent
      hereunder;

                 

              	 
      
	
                “Credit
      Facility Agreement”

              	
                means
      this agreement, as the same shall be amended, modified or supplemented
      from time to time;

                 

              	 
      
	
                “Current
      Assets”

              	
                means,
      measured at the end  of each Accounting Period, the aggregate of
      the cash and marketable securities, trade and other receivables of the
      Guarantor and its Subsidiaries on a consolidated basis from persons which
      can be realized within one year, inventories and prepaid expenses which
      are to be charged to income within one year less any doubtful debts and
      any discounts or allowances given as stated in the then most recent
      accounting information delivered to the Administrative Agent
      hereunder;

                 

              	 
      
	
                “Debt”

              	
                means,
      in relation to the Guarantor and its Subsidiaries (the
      “debtor”):  (a) Financial Indebtedness of the debtor; (b)
      liability for any credit to the debtor from a supplier of goods or
      services or under any installment purchase or payment plan or similar
      arrangement; (c) contingent liabilities of the debtor (including without
      limitation any taxes or other payments under dispute) which have been or,
      under GAAP, should be recorded in the notes to the accounting information;
      (d) deferred tax of the debtor; and (e) liability under a guarantee,
      indemnity or similar obligation entered into by the debtor in respect of a
      liability of another person who is not a Security Party which would fall
      within (a) to (d) if the references to the debtor referred to the other
      Person;

                 

              	 
      
	
                “Debt
      Service Deposit”

              	
                shall
      have the meaning ascribed thereto in Section 4.1(h);

                 

              	 
      
	
                “Debt
      Service Reserve Account”

              	
                shall
      have the meaning ascribed thereto in Section 4.1(h);

                 

              	 
      
	
                “Default
      Rate”

              	
                shall
      have the meaning ascribed thereto in Section 6.2;

                 

              	 
      

         

         

         

        
          
            
            

          

          
            5

            
              

            

          

          
            
            

          

        

         

        
          	
                  “Delivery
      Advance”

                	
                  means
      with respect to each Tranche, the Advance to be made to the Borrowers in
      respect of the delivery of the Vessel to which such Tranche
      relates;

                   

                	 
      
	
                  “Delivery
      Date”

                	
                  means
      with respect to each Vessel the date on which Vessel is delivered to the
      respective Borrower;

                   

                	 
      
	
                  “DOC”

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

                   

                	 
      
	
                  “Dollars”
      and the sign “$”

                	
                  means
      the legal currency, at any relevant time hereunder, of the United States
      of America and, in relation to all payments hereunder, in same day funds
      settled through the New York Clearing House Interbank Payments System (or
      such other Dollar funds as may be determined by the Administrative Agent
      to be customary for the settlement in New York City of banking
      transactions of the type herein involved);

                   

                	 
      
	
                  “Drawdown
      Date(s)”

                	
                  means
      the dates, each being a Banking Day, upon which the Borrowers have
      requested that an Advance be made available to the Borrowers, and such
      Advance is made, as provided in Section 3; provided, that
      no Drawdown Date shall occur after the Commitment Termination
      Date;

                   

                	 
      
	
                  “Drawdown
      Notice”

                	
                  shall
      have the meaning ascribed thereto in Section 3.2;

                   

                	 
      
	
                  “EBITDA”

                	
                  means,
      in respect of an Accounting Period, the aggregate amount of consolidated
      pre-tax profits of the Guarantor and its Subsidiaries before extraordinary
      or exceptional items, depreciation, interest, rentals under finance leases
      and similar charges payable but after the deduction of payments made under
      bareboat charters in each case as stated in the then most recent
      accounting information;

                   

                	 
      
	
                  “Earnings
      Account”

                	
                  shall
      have the meaning ascribed thereto in Section 4.1(h);

                   

                	 
      
	
                  “Earnings
      Assignment(s)”

                	
                  means
      the assignments in respect of the earnings of each Vessel from any and all
      sources, to be executed by the relevant Borrower in favor of the Security
      Trustee pursuant to Section 4.2(b), substantially in the form set out
      in Exhibit E;

                   

                	 
      
	
                  “Environmental
      Affiliate(s)”

                	
                  means
      any person or entity, the liability of which for Environmental Claims any
      Security Party or Subsidiary of any Security Party may have assumed by
      contract or operation of law;

                   

                	 
      

           

           

          
            
              
              

            

            
              6

              
                

              

            

            
              
              

            

          

           

          	
                  “Environmental
      Approval(s)”

                	
                  shall
      have the meaning ascribed thereto in Section 2.1(o);

                   

                	 
      
	
                  “Environmental
      Claim(s)”

                	
                  shall
      have the meaning ascribed thereto in Section 2.1(o);

                   

                	 
      
	
                  “Environmental
      Law(s)”

                	
                  shall
      have the meaning ascribed thereto in Section 2.1(o);

                   

                	 
      
	
                  “Event(s)
      of Default”

                	
                  means
      any of the events set out in Section 8.1;

                   

                	 
      
	
                  “Exchange
      Act”

                	
                  shall
      mean the Securities and Exchange Act of 1934, as amended;

                   

                	 
      
	
                  “Facility”

                	
                  means
      the term loan facility to be made available by the Lenders to the
      Borrowers hereunder in three Tranches, each comprised of one (1) Advance
      to be made available upon or following the delivery of the respective
      Vessel, pursuant to Section 3; and being, in the aggregate, no more than
      the lesser of (i) Ninety-Five Million Dollars ($95,000,000) or (ii)
      sixty-five percent (65%) of the Fair Market Value of the
      Vessels;

                   

                	 
      
	
                  “Fair
      Market Value”

                   

                   

                	
                  means
      in relation to a Vessel, her sale value (determined as the average of two
      valuations prior to the Drawdown Date relating to such Vessel, and
      thereafter one valuation per year at twelve month intervals on each
      anniversary of such Drawdown Date, each valuation to be not older than six
      weeks from any of Simpson, Spence and Young, London, England or Astrup
      Fearnley A/S, Oslo, Norway or AC Shipping, London, England or R.S. Platou
      Shipbrokers A/S, Oslo, Norway or Galbraith’s Limited, London, England or
      H. Clarksons & Co. Ltd., London, England) with or without physical
      inspection (as the Lender may require) in United States Dollars on the
      basis of the sale of the Vessel (i) for prompt delivery, (ii) for cash,
      (iii) without taking into account any charter party relating to the
      Vessel, and (iv) at arm's length on normal commercial terms between a
      willing seller and a willing buyer. If the two valuations obtained prior
      to the Drawdown Date differ by a margin of more than fifteen percent (15%)
      then a third appraiser from the aforementioned firms selected by the
      Administrative Agent shall make an independent appraisal at the Borrowers’
      expense, and the Fair Market Value of the Vessel shall be considered to be
      the average of all three valuations obtained;

                   

                	 
      
	
                  “Fee
      Letter”

                	
                  means
      that certain fee letter of even date herewith, entered into by the
      Guarantor and HSH in respect of the Facility;

                   

                	 
      

           

           

          
            
              
              

            

            
              7

              
                

              

            

            
              
              

            

          

           

          	
                  “Final
      Availability Date”

                	
                  means
      the earlier of (i) that date which is the Delivery Date of the third
      Vessel delivered to a Borrower and financed hereunder and (ii) February
      28, 2008;

                   

                	 
      
	
                  “Final
      Tranche A Payment Date”

                	
                  means,
      that date which is seven (7) years after the Delivery Date of the VOC
      GALLANT, but not later than February 28, 2015;

                   

                	 
      
	
                  “Final
      Tranche B Payment Date”

                	
                  means,
      that date which is seven (7) years after the Delivery Date of the SALMAS,
      but not later than February 28, 2015;

                   

                	 
      
	
                  “Final
      Tranche C Payment Date”

                	
                  means,
      that date which is seven (7) years after the Delivery Date of the OCEAN
      SPIRIT, but not later than February 28, 2015;

                   

                	 
      
	
                  “Finance
      Parties”

                	
                  means
      (i) HSH as the Mandated Lead Arranger, Underwriter, Administrative Agent
      and Security Trustee, (ii) the Lenders and (iii) the Swap
      Provider;

                   

                	 
      
	
                  “Financial
      Indebtedness”

                	
                  means,
      in relation to the Guarantor and its Subsidiaries (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 (in each case, other than in
      respect of assets or services obtained on normal commercial terms in the
      ordinary course of business) or any other agreement having the commercial
      effect of a borrowing or raising of money by the debtor; (e) under any
      foreign exchange transaction, 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; or (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;

                   

                	 
      
	
                  “Fixed
      Charges”

                	
                  means,
      measured at the end  of an Accounting Period, the aggregate of
      Interest Expenses and the portion of Consolidated Financial Indebtedness
      (other than balloon repayments) in respect of the Guarantor and its
      Subsidiaries falling due during that period, as stated in the
    

                	 
      

           

           

          
            
              
              

            

            
              8

              
                

              

            

            
              
              

            

          

           

          
            	 	
                    then
      most recent accounting information provided to the Administrative Agent
      hereunder;

                     

                  	 
	
                    “GAAP”

                  	
                    shall
      have the meaning ascribed thereto in Section 1.3;

                     

                  	 
      
	
                    “Guarantor”

                  	
                    means
      Top Tankers Inc., a corporation organized and existing under the laws of
      the Republic of the Marshall Islands;

                     

                  	 
      
	
                    “Guaranty”

                  	
                    means
      the unconditional and irrevocable guaranty to be executed by the Guarantor
      in respect of the obligations of the Borrowers under and in connection
      with this Credit Facility Agreement and the Note in favor of the Security
      Trustee pursuant to Section 4.l(c), substantially in the set out in
      form of Exhibit B;

                     

                  	 
      
	
                    “HSH”

                  	
                    shall
      have the meaning ascribed thereto in the preamble;

                     

                  	 
      
	
                    “Hull
      Cover Ratio”

                  	
                    shall
      mean the ratio, expressed as a percentage, of the Fair Market Value of the
      Vessels then mortgaged hereunder divided by the outstanding principal
      amount under Facility;

                     

                  	 
      
	
                    “IAPPC”

                  	
                    means
      a valid international air pollution prevention certificate for a Vessel
      issued under Annex VI;

                     

                  	 
      
	
                    “Indemnitee”

                  	
                    shall
      have the meaning ascribed thereto in Section 17.7;

                     

                  	 
      
	
                    “Initial
      Advance”

                  	
                    means
      the first Advance of a Tranche to be made under the Facility;

                     

                  	 
      
	
                    “Insurances
      Assignment”

                  	
                    means
      the assignments in respect of the insurances over each of the Vessels to
      be executed by the relevant Borrower in favor of the Security Trustee
      pursuant to Section 4.2(b), substantially in the form set out in Exhibit
      F;

                     

                  	 
      
	
                    “Interest
      Expense”

                  	
                    means,
      measured at the end of an Accounting Period, the aggregate on a
      consolidated basis of all interest incurred by the Guarantor and its
      Subsidiaries and any net amounts payable under interest rate hedge
      agreements, as stated in the then most recent accounting information
      provided to the Administrative Agent hereunder;

                     

                  	 
      
	
                    “Interest
      Notice”

                  	
                    means
      a notice from the Borrowers to the Administrative Agent specifying the
      duration of any relevant Interest Period, each substantially in the form
      set out in Exhibit J;

                     

                  	 
      

          

           

           

          
            
              
              

            

            
              9

              
                

              

            

            
              
              

            

          

           

          	
                  “Interest
      Payment Date”

                	
                  means
      each date on which accrued interest on the Facility shall be payable
      pursuant to Section 6.4;

                   

                	 
      
	
                  “Interest
      Period(s)”

                	
                  means
      period(s) of one (1), three (3), six (6) or twelve (12) months as selected
      by the Borrowers, or as otherwise agreed by the Lenders and the Borrowers,
      provided, however, that the Borrowers may only select the one (1) month
      option up to three (3) times per year;

                   

                	 
      
	
                  “Interest
      Rate Agreement”

                	
                  means
      any interest rate protection agreement, interest rate future agreement,
      interest rate option agreement, interest rate swap agreement, interest
      rate cap agreement, interest rate collar agreement, interest rate hedge
      agreement or other similar agreement or arrangement entered into between
      the Borrowers with the Swap Provider, which is designed to protect the
      Borrowers against fluctuations in interest rates applicable under this
      Agreement, to or under which the Borrowers, the Guarantor or any of the
      Guarantor’s Subsidiaries is a party or a beneficiary on the date of this
      Agreement or becomes a party or a beneficiary hereafter;

                   

                	 
      
	
                  “ISM
      Code”

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

                   

                	 
      
	
                  “ISPS
      Code”

                	
                  means
      the International Ship and Port Facility Security Code adopted by the
      International Maritime Organization (as the same may be amended from time
      to time);

                   

                	 
      
	
                  “ISSC”

                	
                  means
      a valid and current International Ship Security Certificate issued under
      the ISPS Code;

                   

                	 
      
	
                  “Jeke”

                	
                  shall
      have the meaning ascribed thereto in the preamble;

                   

                	 
      
	
                  “Lender(s)”

                	
                  shall
      have the meaning ascribed thereto in the preamble;

                   

                	 
      
	
                  “LIBOR”

                	
                  means
      the rate for deposits of Dollars for a period equivalent to the relevant
      Interest Period at or about 11:00 a.m. (London time) on the second
      London Banking Day before the first day of such period as displayed on
      Telerate page 3750 (British Bankers’ Association Interest Settlement
      Rates) (or such other page as may replace such 

                	 
      

           

          
            
              
              

            

            
              10

              
                

              

            

            
              
              

            

          

           

          
            	 	
                    page
      3750 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) dated
      August 1985)), provided that if on such date no such rate is so displayed
      for the relevant Interest Period, LIBOR for such period shall be the rate
      quoted to the Administrative Agent by the Reference Bank at the request of
      the Administrative Agent as the offered rate for deposits of Dollars in an
      amount approximately equal to the amount in relation to which LIBOR is to
      be determined for a period equivalent to the relevant Interest Period to
      prime banks in the London Interbank Market at or about 11:00 a.m.
      (London time) on the second Banking Day before the first day of such
      period;

                     

                  	 
	
                    “Liquid
      Funds”

                  	
                    means,
      measured at the end of an Accounting Period:  (a) cash in hand
      or held with banks or other financial institutions of the Guarantor and/or
      any other Security Party in Dollars or another currency freely convertible
      into Dollars, which is free of any security interest (other than a
      permitted security interest and other than ordinary bankers’ liens which
      have not been enforced or become capable of being enforced); or (b) any
      other short-term financial investments which is free of any Security
      Interest (other than a permitted security interest), as stated in the then
      most recent accounting information delivered to the Administrative Agent
      hereunder;

                     

                  	 
      
	
                    “Loan-to-Value
      Ratio”

                  	
                    shall
      mean the ratio of the outstanding amount of the Facility over the
      aggregate Fair Market Value of the Vessels;

                     

                  	 
      
	
                    “Majority
      Lenders”

                  	
                    means,
      at any time, Lenders holding an aggregate of more than 60% of the Advances
      then outstanding;

                     

                  	 
      
	
                    “Mandated
      Lead Arranger”

                  	
                    shall
      have the meaning ascribed thereto in the preamble;

                     

                  	 
      
	
                    “Mandatory
      Costs”

                  	
                    means
      the cost of complying with any applicable regulatory requirements of any
      relevant regulatory authority;

                     

                  	 
      
	
                    “Margin”

                  	
                    shall
      mean (a) 1.00% per annum while the Vessels are employed under time charter
      party agreements acceptable to the Agent for periods of at least twelve
      (12) months and (b) 1.125% per annum at all other times;

                     

                  	 
      

          

           

           

          
            
              
              

            

            
              11

              
                

              

            

            
              
              

            

          

           

          
            
              
                
                  	
                          “Material
      Adverse Effect”

                        	
                          shall
      mean a material adverse effect on (i) the ability of the Borrowers to
      repay the Advances or perform any of its obligations hereunder or under
      the Note, (ii) the ability of any Security Party to perform its
      obligations under any Security Documents or (iii) the business,
      property, assets, liabilities, operations, condition (financial or
      otherwise) or prospects of the Security Parties taken as a
      whole;

                           

                        	 
      
	
                          “Minimum
      Liquidity Amount”

                        	
                          shall
      have the meaning ascribed thereto in Section 9.3(c);

                           

                        	 
      
	
                          “Mortgage(s)”

                        	
                          means
      each of the first preferred cross-collateralized ship mortgages on each of
      the Vessels, to be executed under the laws of a Permitted Jurisdiction by
      the respective Borrower, as owner, as listed in Schedule 2 in favor of the
      Security Trustee (as trustee for the Lenders) pursuant to
      Section 4.2(b), substantially in the form set out in Exhibit
      D;

                           

                        	 
      
	
                          “MTSA”

                        	
                          means
      the Maritime and Transportation Security Act, 2002, as amended, inter alia, by Public
      Law 107-295;

                           

                        	 
      
	
                          “Noir”

                        	
                          shall
      have the meaning ascribed thereto in the preamble;

                           

                        	 
      
	
                          “Note”

                        	
                          means
      the promissory note to be executed by the Borrowers to the order of the
      Administrative Agent pursuant to Section 4.1(b), to evidence the
      Facility, substantially in the form set out in
Exhibit A;

                           

                        	 
      
	
                          “OCEAN
      SPIRIT”

                        	
                          means
      that certain Vessel to be owned by Amalfi and to be renamed AMALFI, the
      details of which are set forth on Schedule 2 hereto, to be delivered with
      a time charter contract with China Ocean Shipping (Group) Company with a
      maturity date of not less than 14 months from its Delivery Date at a net
      rate of not less than $22,000 per day, such charter party agreement to be
      subject to the approval of the Mandated Lead Arranger;

                           

                        	 
      
	 
      	 
      	 
      
	
                          “Operator”

                        	
                          means,
      in respect of any Vessel, the Person who is concerned with the operation
      of such Vessel and falls within the definition of “Company” set out in
      rule 1.1.2 of the ISM Code;

                        	 
      

                   

                   

                  
                    
                      
                      

                    

                    
                      12

                      
                        

                      

                    

                    
                      
                      

                    

                  

                   

                  	
                          “Payment
      Dates”

                        	
                          means
      the Initial Payment Date and the dates falling at three month intervals
      thereafter, the last of which is the Final Payment Date;

                           

                        	 
      
	
                          “Permitted
      Jurisdiction”

                        	
                          means
      the Republic of the Marshall Islands, the Republic of Liberia [, the
      Republic of Greece] or such other jurisdiction as may be approved in
      writing by the Majority Lenders;

                           

                        	 
      
	
                          “Person”

                        	
                          means
      any individual, sole proprietorship, corporation, partnership (general or
      limited), limited liability company, business trust, bank, trust company,
      joint venture, association, joint stock company, trust or other
      unincorporated organization, whether or not a legal entity, or any
      government or agency or political subdivision thereof;

                           

                        	 
      
	
                          “Proceeding”

                        	
                          shall
      have the meaning ascribed thereto in Section 8.1(i);

                           

                        	 
      
	
                          “Reference
      Bank”

                        	
                          means
      HSH;

                           

                        	 
      
	
                          “Regulation
      T”

                        	
                          means
      Regulation T of the Board of Governors of the Federal Reserve System, as
      in effect from time to time;

                           

                        	 
      
	
                          “Regulation
      U”

                        	
                          means
      Regulation U of the Board of Governors of the Federal Reserve System, as
      in effect from time to time;

                           

                        	 
      
	
                          “Regulation
      X”

                        	
                          means
      Regulation X of the Board of Governors of the Federal Reserve System, as
      in effect from time to time;

                           

                        	 
      
	
                          “Required
      Percentage”

                        	
                          means,
      until the fourth anniversary of this Credit Facility Agreement, one
      hundred and thirty percent (130%), and thereafter, one hundred and thirty
      five percent (135%) of the amount of the outstanding Facility and the
      notional cost or actual cost (if any) as determined by the Lender of
      terminating any interest rate swap entered into by the
      Borrowers;

                           

                        	 
      
	
                          “Retention
      Account”

                        	
                          shall
      have the meaning ascribed thereto in Section 4.1(h);

                           

                        	 
      
	
                          “Retention
      Amount”

                        	
                          shall
      mean an amount equal to one third (1/3) of the next quarterly principal
      payment due in accordance with Section 5 hereof and the relevant fraction
      of interest accruing on the Facility during the next month in
    

                        	 
      

                   

                   

                  
                    
                      
                      

                    

                    
                      13

                      
                        

                      

                    

                    
                      
                      

                    

                  

                   

                  
                    	 	
                            accordance
      with Section 6 hereof;

                             

                          	 
	
                            “Retention
      Date”

                          	
                            shall
      mean the date one month after the respective Drawdown Date and at monthly
      intervals thereafter;

                             

                          	 
      
	
                            “SALMAS”

                          	
                            means
      that certain Vessel to be owned by Noir and to be renamed BERTRAM, the
      details of which are set forth on Schedule 2 hereto, to be delivered with
      a time charter contract with Korea Line Corporation with a maturity date
      of a minimum of 24 months and a maximum of 28 months from its Delivery
      Date at a net rate of not less than $29,680 per day, such charter party
      agreement to be subject to the approval of the Mandated Lead
      Arranger;

                             

                          	 
      
	
                            “Security
      Document(s)”

                          	
                            means
      the Guaranty, the Mortgages, the Assignments, the Account Pledges and any
      other documents that may be executed as security for the Facility and the
      Borrowers’ obligations in connection therewith;

                             

                          	 
      
	
                            “Security
      Party(ies)”

                          	
                            means
      each of the Borrowers and the Guarantor;

                             

                          	 
      
	
                            “Security
      Trustee”

                          	
                            shall
      have the meaning ascribed thereto in the preamble;

                             

                          	 
      
	
                            “SMC”

                          	
                            means
      the safety management certificate issued in respect of each Vessel in
      accordance with rule 13 of the ISM code;

                             

                          	 
      
	
                            “Subsidiary(ies)”

                          	
                            means,
      with respect to any Person, any business entity of which more than 50% of
      the outstanding voting stock or other equity interest is owned directly or
      indirectly by such Person and/or one or more other Subsidiaries of such
      Person;

                             

                          	 
      
	
                            “Swap
      Provider”

                          	
                            shall
      mean HSH or such other Lender as may enter into an Interest Rate
      Agreement;

                             

                          	 
      
	
                            “Tangible
      Fixed Assets”

                          	
                            means,
      measured at the end  of an Accounting Period, the value (less
      depreciation computed in accordance with GAAP) on a consolidated basis of
      all tangible fixed assets of the Security Parties as stated in the then
      most recent accounting information delivered to the Administrative Agent
      hereunder;

                             

                          	 
      
	
                            “Taxes”

                          	
                            means
      any present or future income or other taxes, levies, duties, charges,
      fees, deductions or withholdings of any nature now or hereafter imposed,
      levied, collected, withheld or assessed by any taxing authority
      whatsoever, except for taxes on or measured by the overall net income of
      each Lender imposed by its jurisdiction of incorporation 

                          	 
      

                  

                   

                   

                  
                    
                      
                      

                    

                    
                      14

                      
                        

                      

                    

                    
                      
                      

                    

                  

                   

                  
                    	 	
                            or
      applicable lending office, the United States of America, the State or City
      of New York or any governmental subdivision or taxing authority of any
      thereof or by any other taxing authority having jurisdiction over such
      Lender (unless such jurisdiction is asserted by reason of the activities
      of any of the Security Parties);

                             

                          	 
	
                            “Total
      Assets”

                          	
                            means,
      measured at the end  of an Accounting Period, the aggregate of
      Current Assets and Tangible Fixed Assets as stated in the then most recent
      financial information delivered to the Administrative Agent
      hereunder;

                             

                          	 
      
	
                            “Total
      Loss”

                          	
                            shall
      have the meaning ascribed thereto in the Mortgages;

                             

                          	 
      
	
                            “Tranche(s)”

                          	
                            means
      any, all or any combination, as the context requires, of Tranche A,
      Tranche B and Tranche C;

                             

                          	 
      
	
                            “Tranche
      A”

                          	
                            means
      the lesser of Thirty Five Million Seventy Eight Thousand Forty Seven
      Dollars ($35,078,047) and sixty-five percent (65%) of the Fair Market
      Value of the VOC GALLANT, to be made available to the Borrowers in one (1)
      Advance;

                             

                          	 
      
	
                            “Tranche
      B”

                          	
                            means
      the lesser of Twenty Nine Million Six Hundred Seventy One Thousand Three
      Hundred Forty Three Dollars ($29,671,343) and sixty-five percent (65%) of
      the Fair Market Value of the SALMAS, to be made available to the Borrowers
      in one (1) Advance;

                             

                          	 
      
	
                            “Tranche
      C”

                          	
                            means
      the lesser of Thirty Million Two Hundred Fifty Thousand Six Hundred Ten
      Dollars ($30,250,610) and sixty-five percent (65%) of the Fair Market
      Value of the OCEAN SPIRIT, to be made available to the Borrowers in one
      (1) Advance;

                             

                          	 
      
	
                            “Underwriter”

                          	
                            shall
      have the meaning ascribed thereto in the preamble;

                             

                          	 
      
	
                            “Vessel(s)”

                          	
                            each
      of the VOC GALLANT, SALMAS and OCEAN SPIRIT, registered or to be
      registered in the name of the relevant Borrower, as owner, as set forth in
      Schedule 2 hereto, but excluding any Vessel for which a mandatory
      prepayment is made pursuant to Section 5.3; and

                             

                          	 
      
	
                            “VOC
      GALLANT”

                          	
                            means
      that certain Vessel to be owned by Jeke, the details of which are set
      forth on Schedule 2 hereto, to be delivered with a bareboat charter with
      Harren & Partner Schiffahrts GmbH & Co. KG, as charterer, with a
      maturity date 

                          	 
      

                  

                

              

            

          

        

      

    

     

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

    
       

      	
               

            	
              
                between
      May 1, 2009 and June 30, 2009 at a net rate of not less than $25,650 per
      day, such bareboat charter party agreement and charterer to be subject to
      the approval of the Mandated Lead Arranger.

              

            	 
      

       

    

    1.2           Computation of Time Periods;
Other Definitional Provisions.  In this Credit Facility
Agreement, the Note and the Security Documents, in the computation of periods of
time from a specified date to a later specified date, the word “from” means
“from and including” and the words “to” and “until” each mean “to but
excluding”; words importing either gender include the other gender; references
to “writing” include printing, typing, lithography and other means of
reproducing words in a tangible visible form; the words “including,” “includes”
and “include” shall be deemed to be followed by the words “without limitation”;
references to articles, sections (or subdivisions of sections), exhibits,
annexes or schedules are to this Credit Facility Agreement, the Note or such
Security Document, as applicable; references to agreements and other contractual
instruments (including this Credit Facility Agreement, the Note and the Security
Documents) shall be deemed to include all subsequent amendments, amendments and
restatements, supplements, extensions, replacements and other modifications to
such instruments (without, however, limiting any prohibition on any such
amendments, extensions and other modifications by the terms of this Credit
Facility Agreement, the Note or any Security Document); references to any matter
that is “approved” or requires “approval” of a party shall mean approval given
in the sole and absolute discretion of such party unless otherwise
specified.

     

    1.3           Accounting
Terms.  Unless otherwise specified herein, all accounting terms
used in this Credit Facility Agreement, the Note and in the Security Documents
shall be interpreted, and all financial statements and certificates and reports
as to financial matters required to be delivered to the Administrative Agent or
to the Lenders under this Credit Facility Agreement shall be prepared, in
accordance with generally accepted accounting principles for the United States
(“GAAP”) as
from time to time in effect.

     

    1.4           Certain Matters Regarding
Materiality.  To the extent that any representation, warranty,
covenant or other undertaking of any of the Borrowers or the Guarantor in this
Credit Facility Agreement is qualified by reference to those which are not
reasonably expected to result in a “Material
Adverse Effect” or language of similar import, no inference shall be drawn
therefrom that any Agent or Lender has knowledge or approves of any
noncompliance by any of the Borrowers or the Guarantor with any governmental
rule.

     

    1.5           Forms of
Documents.  Except as otherwise expressly provided in this
Credit Facility Agreement, references to documents or certificates
“substantially in the form” of Exhibits to another document shall mean that such
documents or certificates are duly completed in the form of the related Exhibits
with substantive changes subject to the provisions of Section 17.6 of this
Credit Facility Agreement, as the case may be, or the correlative provisions of
the Security Documents.

     

    
      	
              2.

            	
              REPRESENTATIONS AND
      WARRANTIES

            

    

     

    2.1           Representations and
Warranties.  In order to induce the Agents and the Lenders to
enter into this Credit Facility Agreement and to induce the Lenders to make the
Facility available, each of the Borrowers (and the Guarantor by its execution of
the Consent and Agreement annexed hereto) 

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

    hereby
represents and warrants to the Agents and the Lenders (which representations and
warranties shall survive the execution and delivery of this Credit Facility
Agreement and the Note and the drawdown of each Advance hereunder)
that:

     

    (a)           Due Organization and
Power.  each Security Party is duly formed and is validly
existing in good standing under the laws of its jurisdiction of incorporation or
formation, has full power to carry on its business as now being conducted and to
enter into and perform its obligations under this Credit Facility Agreement, the
Note and the Security Documents to which it is a party, and has complied with
all statutory, regulatory and other requirements relative to such business and
such agreements;

     

    (b)           Authorization and
Consents.  all necessary corporate action has been taken to
authorize, and all necessary consents and authorities have been obtained and
remain in full force and effect to permit, each Security Party to enter into and
perform its obligations under this Credit Facility Agreement, the Note and the
Security Documents, to which it is a party, and, in the case of the Borrowers,
to borrow, service and repay the Advances and, as of the date of this Credit
Facility Agreement, no further consents or authorities are necessary for the
service and repayment of the Advances or any part thereof;

     

    (c)           Binding
Obligations.  this Credit Facility Agreement, the Note and the
Security Documents constitute or will, when executed and delivered, constitute
the legal, valid and binding obligations of each Security Party as is a party
thereto enforceable against such Security Party in accordance with their
respective terms, except to the extent that such enforcement may be limited by
applicable bankruptcy, insolvency, reorganization, moratorium or other laws
affecting generally the enforcement of creditors' rights;

     

    (d)           No
Violation.  the execution and delivery of, and the performance
of the provisions of, this Credit Facility Agreement, the Note and those of the
Security Documents to which it is to be a party by each Security Party do not
contravene any applicable law or regulation existing at any date this
representation is given or any contractual restriction binding on such Security
Party or the certificate of incorporation or by-laws (or equivalent instruments)
thereof and that the
proceeds of the Advances shall be used by the Borrowers exclusively for their
own account or for the account of a Subsidiary or Affiliate of the
Borrowers;

     

    (e)           Filings; Stamp
Taxes.  other than the recording of the Mortgages with the
appropriate authorities for the flag state of the Vessel to which such Mortgage
relates, and the filing of UCC Financing Statements in the District of Columbia
in respect of the Assignments, and the payment and filing or recording fees
consequent thereto, it is not necessary for the legality, validity,
enforceability or admissibility into evidence of this Credit Facility Agreement,
the Note or the Security Documents that any of them or any document relating
thereto be registered, filed, recorded or enrolled with any court or authority
in any relevant jurisdiction or that any stamp, registration or similar Taxes be
paid on or in relation to this Agreement, the Note or any of the Security
Documents;

     

    (f)           Litigation.  except
as has been publicly disclosed by the Guarantor, no action, suit or proceeding
is pending or threatened against the Guarantor or any Subsidiary before any

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

    court, board of arbitration or administrative agency which is
reasonably likely to result in a Material Adverse Effect;

     

    (g)           No
Default.  neither the Borrowers, the Guarantor nor any of their
Subsidiaries is in default under any material agreement by which it is bound, or
is in default in respect of any financial commitment or obligation;

     

    (h)           Vessels.  upon
the date of the making of each Advance, each of the Vessels :

     

    
      	
               
      

            	
              (i)

            	
              will
      be in the sole and absolute ownership of the respective Borrower as set
      forth in Schedule 2 and duly registered in such Borrower's name under
      the flag of a Permitted Jurisdiction, unencumbered, save and except for
      the Mortgage recorded against it and as permitted
  thereby;

            

    

     

    
      	
               
      

            	
              (ii)

            	
              will
      be classed in the highest classification and rating for vessels of the
      same age and type with the respective Classification Society as set forth
      in Schedule 2 without any outstanding recommendations affecting class
      and without any qualifications;

            

    

     

    
      	
               
      

            	
              (iii)

            	
              will
      be operationally seaworthy and in every way fit for its intended service;
      and

            

    

     

    
      	
               
      

            	
              (iv)

            	
              will
      be insured in accordance with the provisions of the Mortgage recorded
      against it and the requirements thereof in respect of such insurances will
      have been complied with;

            

    

     

    (i)           Insurance.  each
of the Security Parties has insured its properties and assets against such risks
and in such amounts as are customary for companies engaged in similar
businesses;

     

    (j)           Financial
Information.  on or prior to the date hereof, all financial
statements, information and other data furnished by the Guarantor to the
Administrative Agent are complete and
correct, such financial statements have been prepared in accordance with GAAP
and accurately and fairly present the financial condition of the parties covered
thereby as of the respective dates thereof and the results of the operations
thereof for the period or respective periods covered by such financial
statements, and, since the date of the Guarantor’s financial statements most
recently delivered to the Administrative Agent, there has been no Material
Adverse Effect as to any of such parties and none thereof has any contingent
obligations, liabilities for taxes or other outstanding financial obligations,
except as disclosed in such statements, information and data;

     

    (k)           Tax
Returns.  the Guarantor and each of its Subsidiaries have filed
all tax returns required to be filed by them and have paid all taxes payable by
them which have become due, other than those not yet delinquent and except for
those taxes being contested in good faith and by appropriate proceedings or
other acts and for which adequate reserves shall have been set aside on its
books; 

     

    (l)           Chief Executive
Office.  the chief executive office of the Security Parties and
chief place of business and the office in which the records relating to the
earnings and other 

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

    receivables of each Subsidiary are kept is located at 1
Vassillissis Sofias Str. & Meg. Alexandrou Str. 151 24, Maroussi,
Greece;

     

    (m)           Foreign Trade Control
Regulations.  none of the transactions contemplated herein will
violate the provisions of any statute or regulation enacted to prohibit or limit
economic transactions with foreign Persons including, without limitation, the
Foreign Assets Control Regulations of the United States of America
(Title 31, Code of Federal Regulations, Chapter V, Part 500, as
amended), any of the provisions of the Cuban Assets Control Regulations of the
United States of America (Title 31, Code of Federal Regulations,
Chapter V, Part 515, as amended), any of the provisions of the Iranian
Transaction Regulations of the United States of America (Title 31, Code of
Federal Regulations, Chapter V, Part 560, as amended) or any of the provisions
of the Regulations of the United States of America Governing Transactions in
Foreign Shipping of Merchandise (Title 31, Code of Federal Regulations,
Chapter V, Part 505, as amended).  ;

     

    (n)           Equity
Ownership.  each of the Borrowers is a wholly owned subsidiary
of the Guarantor; 

     

    (o)           Environmental Matters and
Claims.  (a) except as heretofore disclosed in writing to
the Administrative Agent and the Lenders (i) the Guarantor, each of its
Subsidiaries and their Affiliates will be in compliance with all applicable
United States federal and state, local, foreign and international laws,
regulations, conventions and agreements relating to pollution prevention or
protection of human health or the environment (including, without limitation,
ambient air, surface water, ground water, navigable waters, waters
of  the contiguous zone, ocean waters and international waters),
including, without limitation, laws, regulations, conventions and agreements
relating to (1) emissions, discharges, releases or threatened releases of
chemicals, pollutants, contaminants, wastes, toxic substances, hazardous
materials, oil, hazardous substances, petroleum and petroleum products and
by-products (“Materials of Environmental Concern”), or (2) the manufacture,
processing, distribution, use, treatment, storage, disposal, transport or
handling of Materials of Environmental Concern (“Environmental Laws”);
(ii) the Guarantor, each of its Subsidiaries and their Affiliates will have
all permits, licenses, approvals, rulings, variances, exemptions,
clearances, consents or other authorizations required under applicable
Environmental Laws (“Environmental Approvals”) and will, when required, be in
compliance with all Environmental Approvals required to operate their business
as then being conducted; (iii) none of the Guarantor, any Subsidiary
(including, for the avoidance of doubt, the Borrowers) nor any Affiliate thereof
has received any notice of any claim, action, cause of action, investigation or
demand by any person, entity, enterprise or government, or any political
subdivision, intergovernmental body or agency, department or instrumentality
thereof, alleging potential liability for, or a requirement to incur, material
investigator costs, cleanup costs, response and/or remedial costs (whether
incurred by a governmental entity or otherwise), natural resources damages,
property damages, personal injuries, attorneys' fees and expenses, or fines or
penalties, in each case arising out of, based on or resulting from (1) the
presence, or release or threat of release into the environment, of any Materials
of Environmental Concern at any location, whether or not owned by such person,
or (2) circumstances forming the basis of any violation, or alleged
violation, of any Environmental Law or Environmental Approval (“Environmental
Claim”) (other than Environmental Claims that have been fully and finally
adjudicated or otherwise determined and all fines, penalties and other costs, if
any, payable by the Security Parties in respect thereof have been paid in full
or which are fully covered by insurance (including permitted deductibles)); and

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

    (iv) there are no circumstances that may prevent or interfere
with such full compliance in the future; and (b) except as heretofore
disclosed in writing to the Administrative Agent there is no Environmental Claim
pending or threatened against the Guarantor, any Subsidiary or any Affiliate
thereof and there are no past or present actions, activities, circumstances,
conditions, events or incidents, including, without limitation, the release,
emission, discharge or disposal of any Materials of Environmental Concern, that
could form the basis of any Environmental Claim against such persons the adverse
disposition of which may result in a Material Adverse Effect; 

     

    (p)           Compliance with ISM Code,
the ISPS Code, the MTSA and Annex VI.  each Vessel complies and
each Operator complies with the requirements of the ISM Code, the ISPS Code, the
MTSA and Annex VI including (but not limited to) the maintenance and renewal of
valid certificates pursuant thereto;

     

    (q)           No Threatened Withdrawal of
DOC, ISSC, SMC or IAPPC.  there is no actual or, to the best of
each Security Parties’ knowledge, threatened withdrawal of any Operator’s DOC or
any Vessel’s ISSC or SMC or other certification or documentation related to the
ISM Code, Annex VI or otherwise required for the operation of such vessels in
respect of any of the Vessels;

     

    (r)           Liens.  other
than as permitted hereby, there are no liens of any kind on any property owned
by the Guarantor or any Subsidiary of the Guarantor other than liens occurring
in the ordinary course of business and paid in a timely manner;

     

    (s)           Financial
Indebtedness.  neither the Borrowers nor the Guarantor has, on
the date hereof, Financial Indebtedness  other than as set out on
Schedule 3 hereto; 

     

    (t)           No Proceedings to
Dissolve.  there are no proceedings or actions pending or
contemplated by any Security Party, or, contemplated by any third party, to
dissolve or terminate any Security Party;

     

    (u)           Solvency.  in
the case of each of the Security Parties, (a) the sum of its assets, at a fair
valuation, does and will exceed its liabilities, including, to the extent they
are reportable as such in accordance with GAAP, contingent liabilities, (b) the
present fair market salable value of its assets is not and shall not be less
than the amount that will be required to pay its probable liability on its then
existing debts, including, to the extent they are reportable as such in
accordance with GAAP, contingent liabilities, as they mature, (c) it does not
and will not have unreasonably small working capital with which to continue its
business and (d) it has not incurred, does not intend to incur and does not
believe it will incur, debts beyond its ability to pay such debts as they
mature;

     

    (v)           Pari Passu
Ranking.  each of the Security Parties’ obligations under this
Credit Facility Agreement, the Note and the Security Documents rank at least
pari passu with all its
other present and future unsecured and unsubordinated payment obligations,
except for obligations mandatorily preferred by law applying to companies
generally;

     

    (w)           Taxes on
Payments.  all amounts payable by each of the Security Parties
to the Administrative Agent under this Facility Agreement and the Security
Documents may be made without any deduction for Taxes;

     

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

     

    (x)           Jurisdiction/Governing
Law.  (a) the irrevocable submission by each of the Borrowers
under this Credit Facility Agreement to the jurisdiction of the courts of the
State of New York and the United States District Court for the Southern District
of New York, agreement that this Credit Facility is governed by New York law,
and agreement not to claim any immunity to which it or its assets may be
entitled are legal, valid and binding under the laws of its jurisdiction of
incorporation; and (b) any judgment obtained in the courts of the State of New
York and the United States District Court for the Southern District of New York
will be recognized and enforceable by the courts of its jurisdiction of
incorporation, subject to any statutory or other conditions of such
jurisdiction;

     

    (y)           Charters.  none
of the Borrowers has received prepayments of hire for a duration of longer than
one month;

     

    (z)           Compliance with
Laws.  each of the Security Parties is in compliance with all
applicable laws except where the failure to comply would not alone or in the
aggregate result in a Material Adverse Effect; and

     

    (aa)           Survival.  all
representations, covenants and warranties made herein and in any certificate or
other document delivered pursuant hereto or in connection herewith shall survive
the making of the Advances and the issuance of the Note.

     

    
      	
              3.

            	
              THE
      ADVANCES

            

    

     

    3.1                           (a)   
       Purposes.  The
Lenders shall make the Advances available to the Borrowers for the purpose of
financing the acquisition of the Vessels.

     

    (b)           Making of the
Advances.  

     

    
      
        	 	(i) 	
                Each
      of the Lenders, relying upon each of the representations and warranties
      set out in Section 2, hereby severally and not jointly agrees with
      the Borrowers that, subject to and upon the terms of this Credit Facility
      Agreement, it will, not later than 11:00 A.M. (New York City time) on the
      Drawdown Date of Advance in respect of each Tranche (except as provided in
      subsection (ii) of this Section), make its portion of the relevant
      Advance, in Federal or other funds immediately available in New York City,
      to the Administrative Agent at its address and to such account as set
      forth on Schedule 1 or to such account of the Administrative Agent most
      recently designated by it for such purpose by notice to the
      Lenders.  Unless the Administrative Agent determines that any
      applicable condition specified in Section 4.1, 4.2, 4.3 or 4.4 has not
      been satisfied, the Administrative Agent will make the funds so received
      from the Lenders available to the Borrowers at the aforesaid address,
      subject to the receipt of the funds by the Administrative Agent as
      provided in the immediately preceding sentence, not later than 10:00A.M.
      (New York City time) on the date of such Advance, and in any event as soon
      as practicable after receipt. All Advances, subject to the other terms and
      conditions hereof, shall 

              
	 	 	 

         

         

        
          
            
            

          

          
            21

            
              

            

          

          
            
            

          

        

        	 	 	
                be
      in a minimum amount of One Million Dollars ($1,000,000) and in multiples
      of Two Hundred Fifty Thousand Dollars ($250,000). The Facility and each
      Tranche hereunder shall be repayable as provided in Section
      5.  The Lenders’ obligation to make any Advance in respect of
      any Tranche hereunder shall terminate if the Vessel to which such Tranche
      relates is not delivered to the Borrowers by the Commitment Termination
      Date. 

                 

              
	
                 
      

              	
                (ii)

              	
                Unless
      the Administrative Agent shall have received notice from a Lender prior to
      the Drawdown Date of any Advance that such Lender will not make available
      to the Administrative Agent such Lender’s share of such Advance, the
      Administrative Agent may assume that such Lender has made such share
      available to the Administrative Agent on the date of such Advance in
      accordance with this Section 3.1 and the Administrative Agent may, in
      reliance upon such assumption, make available to the Borrowers on such
      date a corresponding amount.  If and to the extent that such
      Lender shall not have so made such share available to the Administrative
      Agent, such Lender and the Borrowers (but without duplication and not if
      such Lender is an affiliate of the Administrative Agent) severally agree
      to repay to the Administrative Agent forthwith on demand such
      corresponding amount together with interest thereon, for each day from the
      date such amount is made available to the Borrowers until the date such
      amount is repaid to the Administrative Agent, at (i) in the case of
      the Borrowers, a rate per annum equal to the higher of (y) the LIBOR rate
      for overnight or weekend deposits plus the Margin and (z) the interest
      rate applicable thereto pursuant to Section 6.1 and (ii) in the
      case of such Lender, the LIBOR rate for overnight or weekend
      deposits.  If such Lender shall repay to the Administrative
      Agent such corresponding amount, such amount so repaid shall constitute
      such Lender’s Advance included in such Advance for purposes of this Credit
      Facility Agreement as of the date such Advance was
      made.  Nothing in this subsection (b)(ii) shall be deemed
      to relieve any Lender of its obligation to make Advances to the extent
      provided in this Credit Facility Agreement.  In the event that
      the Borrowers are required to repay an Advance to the Administrative Agent
      pursuant to this Section 3.1(b)(ii), as between the Borrowers and the
      defaulting Lender, the liability for any breakfunding costs as described
      in Section 4.4 shall be borne by the defaulting Lender.  If the
      defaulting Lender has not paid any such breakage costs upon demand by the
      Administrative Agent therefor, the Borrowers shall pay such breakage costs
      upon demand by the Administrative Agent and the Borrowers shall be
      entitled to recover any such payment for breakfunding costs made by the
      Borrowers from the defaulting
Lender.

              

      

    

     

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

    
      
      

    

     

    3.2           Drawdown
Notice.  The Borrowers shall, at least three (3) Banking
Days before a Drawdown Date, serve a notice (a “Drawdown Notice”), substantially
in the form of Exhibit I, on the Administrative Agent, which notice shall
(a) be in writing addressed to the Administrative Agent, (b) be
effective on receipt by the Administrative Agent, (c) specify the amount of
such Advance to be drawn, (d)  specify the Banking Day on which such
Advance is to be drawn and, subject to the terms of Section 6.3 hereof, the
Interest Period, (e) specify the disbursement instructions and (f) be
irrevocable.  The Administrative Agent shall deliver the Drawdown
Notice to Lenders as soon as practicable after its receipt thereof.

     

    3.3           Effect of Drawdown
Notice.  Such Drawdown Notice shall be deemed to constitute a
warranty by the Borrowers (a) that the representations and warranties
stated in Section 2 (updated mutatis mutandis) are true
and correct on and as of the date of such Drawdown Notice and will be true and
correct on and as of the relevant Drawdown Date as if made on such date, and
(b) that no Event of Default nor any event which with the giving of notice
or lapse of time or both would constitute an Event of Default has occurred and
is continuing.

     

    3.4           Notation of
Advances.  Each Advance made by the Lenders to the Borrowers
may be evidenced by a notation of the same made by the Administrative Agent on
the grid attached to the Note, which notation, absent manifest error, shall be
prima facie evidence of
the amount of the relevant Advance.

     

    
      	
              4.

            	
              CONDITIONS

            

    

     

    4.1           Conditions Precedent to the
Effectiveness of this Credit Facility Agreement.  The
obligation of the Lenders to make the Initial Advance available to the Borrowers
under this Credit Facility Agreement shall be expressly subject to the following
conditions precedent:

     

    (a)           Corporate
Authority.  the Administrative Agent shall have received the
following documents in form and substance satisfactory to the Administrative
Agent:

     

    
      	
               
      

            	
              (i)

            	
              copies, certified as
      true and complete by an officer of each of the Borrowers, of the
      resolutions of their respective board of directors evidencing approval of
      this Credit Facility Agreement, the Note and those Security Documents to
      which it is to be a party and authorizing an appropriate officer or
      officers or attorney-in-fact or attorneys-in fact to
      execute the same on its behalf, or other evidence of such approvals and
      authorizations;

            

    

     

    
      	
               
      

            	
              (ii)

            	
              copies,
      certified as true and complete by an officer of the Guarantor, of the
      resolutions of the board of directors evidencing approval of this Credit
      Facility, the Guaranty and those Security Documents to which it is to be a
      party and authorizing an appropriate officer or officers or
      attorney-in-fact or attorneys-in-fact to execute the same on its behalf,
      or other evidence of such approvals and
  authorizations;

            

    

     

    
      	
               
      

            	
              (iii)

            	
              copies,
      certified as true and complete by an officer of each Security Party, of
      all documents evidencing any other necessary action
  

            

    

     

     

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

     

    
      
        	 	 	
                (including
      actions by such parties thereto other than the Security Parties as may be
      required by the Administrative Agent), approvals or consents with respect
      to this Credit Facility Agreement, the Note and the Security
      Documents;

                 

              
	
                 
      

              	
                (iv)

              	
                copies,
      certified as true and complete by an officer of each Security Party, of
      the certificate of incorporation and by-laws, certificate of formation and
      operating agreement, or equivalent instruments
  thereof;

              

      

    

     

    
      	
               
      

            	
              (v)

            	
              certificate
      of an authorized officer of the Guarantor certifying that it legally and
      beneficially owns, directly or indirectly, all of the issued and
      outstanding capital stock, or limited liability company membership
      interests, as the case may be, of each of the Borrowers and that such
      capital stock or membership interests are free and clear of any liens,
      claims, pledges or other encumbrances whatsoever and have been paid in
      full; and

            

    

     

    
      	
               
      

            	
              (vi)

            	
              certificates
      of the jurisdiction of incorporation or formation, as the case may be, of
      each Security Party as to the good standing
  thereof;

            

    

     

    (b)           The Credit Facility
Agreement and the Note.  each of the Borrowers shall have duly
executed and delivered to the Administrative Agent this Credit Facility
Agreement, the Note, its respective Account Pledge and the Account Pledge
relating to the Debt Service Reserve Account;

     

    (c)           Guarantor
Documents.  the Guarantor shall have duly executed and
delivered the Guaranty, the Consent and Agreement hereto and its respective
Account Pledge.

     

    (d)           Solvency.  the
Administrative Agent shall have received a certificate of an officer of the
Guarantor confirming the representations and warranties with respect to solvency
set forth in the Guaranty and containing conclusions as to the solvency of each
of the Security Parties;

     

    (e)           Approved Manager
Documents.  each Approved Manager shall have duly executed and
delivered the Approved Manager’s Undertaking relating to the Vessels to the
Administrative Agent;

     

    (f)           Environmental
Claims.  the Administrative Agent shall be satisfied that none
of the Security Parties nor any of their Subsidiaries or their Affiliates is
subject to any Environmental Claim;

     

    (g)           Fees.  the
Administrative Agent shall have received payment in full of all fees and
expenses then due to the Agents and/or the Lenders under
Section 13;

     

    (h)           Accounts.  (i)
each of the Borrowers shall have established an earnings account into which such
Borrower shall have agreed that Assigned Moneys are to be paid (the “Earnings
Accounts”) with the Administrative Agent and each of the Borrowers shall have
pledged its interest in such account to the Finance Parties pursuant to an
Account Pledge, and each of the Borrowers shall have agreed that all Assigned
Moneys be paid into the Earnings Account(s), (ii) the 

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

    

    Borrowers
shall have established a debt service reserve account (the “Debt Service Reserve
Account”) into which the Borrowers shall make a deposit of $750,000 per Vessel
(each a “Debt Service Deposit”), each Debt Service Deposit to be made prior to
the Drawdown Date of the Tranche relating to the respective Vessel and to be
maintained in the Debt Service Reserve Account until the last payment of the
relevant Tranche and (iii) the Borrowers shall have established a retention
account with the Administrative Agent which, on each Retention Date, amounts
equal to the Retention Amount shall be transferred each month from the Earnings
Accounts or other accounts of each of the Borrowers (the “Retention Account) and
each of the Borrowers shall have pledged its interest in such Retention Account
to the Finance Parties pursuant to an Account Pledge;

     

    (i)           Compliance
Certificate.  the Administrative Agent having received a
Compliance Certificate with respect to the most recently ended fiscal quarter;

     

    (j)           Vessel Appraisal and
Inspection.  the Administrative Agent having received (i) two
(three if the first two received differ by more than fifteen percent) recent
(not older than six weeks) independently appraised valuations evidencing the
Fair Market Value of the relevant Vessel(s), to be provided at the expense of
the Borrowers, and (ii) inspection reports acceptable to the Administrative
Agent by a surveyor appointed by the Administrative Agent at the Borrowers’
expense, of the physical inspection of each of the Vessels, provided, however,
that the Administrative Agent may waive this requirement and reserve the right
to have the relevant Vessel(s) inspected after the relevant Advance, if the
Borrowers deliver to the Administrative Agent, prior to the relevant Advance,
its in-house survey report of the relevant Vessel(s) in form and substance
satisfactory to the Administrative Agent, however, all surveys must be done
without undue interference with the operation of the Vessel(s);

     

    (k)           Money Laundering Due
Diligence.  the Administrative Agent having received such
documentation and other evidence as is reasonably requested by the
Administrative Agent in order for each of the Lenders to carry out and be
satisfied with the results of all necessary “know your client” or other checks
which is required to carry out in relation to the transactions contemplated by
this Credit Facility Agreement, the Notes and the Security
Documents;

     

    (l)           Legal
Opinions.  the Administrative Agent, on behalf of the Agents
and the Lenders, shall have received legal opinions addressed to the
Administrative Agent from (i) G.C. Economou & Associates, counsel for the
Security Parties in respect of, inter alia, no material
litigation
or breach of contract by the Security Parties and no filings are required in
Greece and (ii) Seward & Kissel LLP, special United States, New
York, Liberian and Marshall Islands counsel to the Agents and Lenders in respect
of inter alia, the corporate
authority of the Security Parties and the enforceability of this Agreement, the
Notes and the relevant Security Documents, in each case in such form as the
Administrative Agent may require, as well as such other legal opinions as the
Administrative Agent shall have required as to all or any matters under the laws
of the United States of America, the State of New York, the Republic of Greece,
the Republic of Liberia and the Republic of the Marshall Islands covering the
representations and conditions which are the subjects of Section 2 and this
Section 4; and

     

    (m)           Know Your Customer
Requirements.  the Administrative Agent shall have received
documentation to its satisfaction in connection with its know your customer
requirements, including but not limited to:

     

     

    
      
        
        

      

      
        25

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              (i)

            	
              completed
      bank account opening mandates with telephone and fax indemnities to
      include the list of the Borrowers’ authorized signatories and specimens of
      their signatures;

            

    

     

    
      	
               
      

            	
              (ii)

            	
              certified
      list of directors, including titles, business and residential addresses
      and dates of birth;

            

    

     

    
      	
               
      

            	
              (iii)

            	
              certified
      true copy of photo identification (i.e. passport or driving license) and
      evidence of residential address (i.e. utility bill or bank statement) for
      all authorized signatories;

            

    

     

    
      	
               
      

            	
              (iv)

            	
              certificate
      of ultimate beneficial ownership, certified by the respective secretary of
      such entity, from the Borrowers with respect to each other Security Party;
      and

            

    

    
       

      
        	
                 
      

              	
                (v)

              	
                non-resident
      declaration forms.

              

      

           

    

    4.2           Conditions Precedent re
Delivery Advances.  The obligation of the Lenders to make each
Advance in respect of a Tranche available to the Borrowers under this Agreement
shall be expressly and separately subject to the following further conditions
precedent on the relevant Drawdown Date:

     

    (a)           The
Vessels.  the Administrative Agent shall have received evidence
satisfactory to it that the relevant Vessel:

     

    
      	
               
      

            	
              (i)

            	
              has
      been delivered to the relevant Borrower and that the relevant Borrower has
      paid its equity portion of the purchase price of the Vessel to the sellers
      of the Vessel;

            

    

     

    
      	
               
      

            	
              (ii)

            	
              is
      in the sole and absolute ownership of the relevant Borrower and duly
      registered in such Borrower’s name under the flag of a Permitted
      Jurisdiction, respectively, unencumbered, save and except for the
      Mortgage, recorded against it and as otherwise permitted
      thereby;

            

    

     

    
      	
               
      

            	
              (iii)

            	
              is
      classed in the highest classification and rating for vessels of the same
      age and type with the respective Classification Society as set forth in
      Schedule 2 without any material outstanding
    recommendations;

            

    

     

    
      	
               
      

            	
              (iv)

            	
              is
      operationally seaworthy and in every way fit for its intended service;
      and

            

    

     

    
      	
               
      

            	
              (v)

            	
              is
      insured in accordance with the provisions of the Mortgage recorded against
      it and the requirements thereof in respect of such insurance have been
      complied with;

            

    

     

    (b)           Vessel
Documents.  Upon the delivery of its respective Vessel, each
Borrower shall have duly executed and delivered to the Administrative Agent:

     

     

    
      
        
        

      

      
        26

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              (i)

            	
              the
      Mortgage over its Vessel;

            

    

     

    
      	
               
      

            	
              (ii)

            	
              an
      Insurances Assignment with respect to its
  Vessel;

            

    

     

    
      	
               
      

            	
              (iii)

            	
              an
      Earnings Assignment with respect to its
Vessel;

            

    

     

    
      	
               
      

            	
              (iv)

            	
              the
      Assignment Notices with respect to the above-indicated Insurances
      Assignments and Earnings Assignments;
and

            

    

     

    
      	
               
      

            	
              (v)

            	
              Uniform
      Commercial Code Financing Statements for filing with the District of
      Columbia and in such other jurisdictions as the Administrative Agent may
      reasonably require;

            

    

     

    (c)           Additional
Documents.  Upon the delivery of its respective Vessel, each
Borrower shall, where applicable, deliver each of the following documents to the
Administrative Agent:

     

    
      	
               
      

            	
              (i)

            	
              a
      management agreement with an Approved
Manager;

            

    

     

    
      	
               
      

            	
              (ii)

            	
              any
      Charter Party Agreement entered into in respect of the
    Vessel;

            

    

     

    
      	
               
      

            	
              (iii)

            	
              the
      memorandum of agreement entered into in respect of the
    Vessel;

            

    

     

    
      	
               
      

            	
              (iv)

            	
              a
      copy of the bill of sale for the
Vessel;

            

    

     

    
      	
               
      

            	
              (v)

            	
              a
      copy of the protocol of delivery for the Vessel;
  and

            

    

     

    
      	
               
      

            	
              (vi)

            	
              a
      transcript of registry and a certificate of ownership and encumbrance
      indicating the Vessel’s registration in the name of such Borrower free and
      clear of all registered encumbrances other than the Mortgage
      thereon;

            

    

     

     

    (d)    Vessel
Liens.  the Administrative Agent shall have received evidence
satisfactory to it and to its legal advisor that, save for the liens created by
the Mortgage and the Assignments relating to such Vessel, there are no liens,
charges or encumbrances of any kind whatsoever on such Vessel or on its earnings
except as permitted hereby or by any of the Security Documents;

     

    (e)           ISM
DOC.  the Administrative Agent shall have received a copy of
the DOC for the Vessel to which such Delivery Advance relates;

     

    (f)           Process
Agent.  the Administrative Agent shall have received evidence
that each of the Security Parties have appointed CT Corporation System, having
an address at 111 Eighth Avenue, New York, NY 10011, as its true and lawful
attorney-in-fact and duly authorized agent for the limited purpose of accepting
service of legal process and that each Security Party has agreed that service of
process upon such party shall constitute personal service of such process upon
such Security Party.  Each of the Security Parties shall have agreed
that such appointment shall be maintained for the duration of this Credit
Facility Agreement and that if such agent shall cease to 

     

    
      
        
        

      

      
        27

        
          

        

      

      
        
        

      

    

    act, the Security Parties shall immediately designate and appoint
another such agent satisfactory to the Administrative Agent evidence in writing
of such other agent’s acceptance of such appointment;

     

    (g)           Legal
Opinions.  the Administrative Agent, on behalf of the Agents
and the Lenders, shall have received legal opinions addressed to the
Administrative Agent from (i) G.C. Economou & Associates, counsel for the
Security Parties in respect of, inter alia, no material
litigation or breach of contract by the Security Parties and no filings are
required in Greece, and (ii) Seward & Kissel LLP, special United States, New
York, Liberian and Marshall Islands counsel to the Agents and Lenders in respect
of, inter alia, the corporate
authority of the relevant Borrower and the enforceability of the relevant
Security Documents, in each case in such form as the Administrative Agent may
require, as well as such other legal opinions as the Administrative Agent shall
have required as to all or any matters under the laws of the United States of
America, the Republic of Greece, the State of New York, the Republic of Liberia
and the Republic of the Marshall Islands or any other relevant Permitted
Jurisdiction covering the representations and conditions which are the subjects
of Sections 2 and this Section 4.2.

     

    4.3           Further Conditions
Precedent.  The obligation of the Lenders to make any Advance
available to the Borrower under this Credit Facility Agreement shall be
expressly and separately subject to the following further conditions precedent
on the relevant Drawdown Date:

     

    (a)           Drawdown
Notice.  the Administrative Agent having received a Drawdown
Notice in accordance with the terms of Section 3.2;

     

    (b)           Representations and
Warranties.  the representations stated in
Section 2  (updated mutatis mutandis to such date) being true and
correct as if made on and as of that date;

     

    (c)           No Event of
Default.  no Event of Default having occurred and being
continuing and no event having occurred and being continuing which, with the
giving of notice or lapse of time, or both, would constitute an Event of
Default;

     

    (d)           No Change in
Laws.  the Administrative Agent being satisfied that no change
in any applicable laws, regulations, rules or in the interpretation thereof
shall have occurred which make it unlawful for any Security Party to make any
payment as required under the terms of this Credit Facility Agreement, the Note,
the Security Documents or any of them; and

     

    (e)           No Material Adverse
Effect.  there having been no Material Adverse Effect since the
date hereof.

     

    4.4           Breakfunding
Costs.  In the event that, on the date specified for the making
of an Advance in any Drawdown Notice, the Lenders shall not be obliged under
this Credit Facility Agreement to make such Advance available, the Borrowers
shall indemnify and hold the Lenders fully harmless against any losses which the
Lenders (or any thereof) may sustain as a result of borrowing or agreeing to
borrow funds to meet the drawdown requirement of such Drawdown Notice and the
certificate of the relevant Lender or Lenders shall, absent manifest error, be
conclusive and binding on the Borrowers as to the extent of any such
losses.

     

     

    
      
        
        

      

      
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    4.5           Satisfaction after
Drawdown.  Without prejudice to any of the other terms and
conditions of this Credit Facility Agreement, in the event the Lenders, in their
sole discretion, make any Advance prior to the satisfaction of all or any of the
conditions referred to in Sections 4.1, 4.2 or 4.3, each of the Borrowers
hereby covenants and undertakes to satisfy or procure the satisfaction of such
condition or conditions within fourteen (14) days after the relevant
Drawdown Date (or such longer period as the Lenders, in their sole discretion,
may agree).

     

    
      	
              5.

            	
              REPAYMENT AND
      PREPAYMENT

            

    

     

    5.1           Repayment.  Subject
to the provisions of this Section 5 regarding prepayments and the
application thereof, the Borrowers shall, on the Payment Dates, repay the
principal amount of that portion of the Facility attributable to:

     

    (a)           Tranche
A in twenty-eight (28) consecutive installments payable quarterly in arrears
commencing on the date occurring three (3) months after the Delivery Date of the
VOC GALLANT.  The amount of each of the installments shall be as
follows: (i) installments one through four shall each be in the amount of One
Million Six Hundred Thousand Dollars ($1,600,000); (ii) installments five
through eight shall each be in the amount of Eight Hundred Fifty Thousand
Dollars ($850,000); (iii) installments nine through twenty-eight shall each be
in the amount of Five Hundred Thousand Dollars ($500,000); and (iv) a balloon
payment of Fifteen Million Two Hundred Seventy Eight Thousand Forty Seven
Dollars ($15,278,047), or such other amount as remains outstanding, shall be
payable together with the twenty-eighth installment.  The amount of
each installment shall be reduced pro rata in the event less than the maximum
amount of Tranche A is drawn down;

     

    (b)           Tranche
B in twenty-eight (28) consecutive installments payable quarterly in arrears
commencing on the date occurring three (3) months after the Delivery Date of the
SALMAS.  The amount of each of the installments shall be as follows:
(i) installments one through eight shall each be in the amount of One Million
Five Hundred Seventy Five Thousand Dollars ($1,575,000); (ii) installments nine
through twenty-eight shall each be in the amount of Seven Hundred
Fifty Thousand Dollars ($750,000); and (iii) a balloon payment of Two Million
Seventy One Thousand Three Hundred Forty Three Dollars ($2,071,343), or such
other amount as remains outstanding, shall be payable together with the
twenty-eighth installment.  The amount of each installment shall be
reduced pro rata in the event less than the maximum amount of Tranche B is drawn
down; and

     

    (c)           Tranche
C in twenty-eight (28) consecutive installments payable quarterly in arrears
commencing on the date occurring three (3) months after the Delivery Date of the
OCEAN SPIRIT.  The amount of each of the installments shall be as
follows: (i) installments one through four shall each be in the amount of Nine
Hundred Sixty-Two Thousand Five Hundred Dollars ($962,500); (ii) installments
five through twenty-eight shall each be in the amount of Five Hundred Thirty
Seven Thousand Five Hundred Dollars ($537,500); and (iii) a balloon payment of
Thirteen Million Five Hundred Thousand Six Hundred Ten Dollars ($13,500,610), or
such other amount as remains outstanding, shall be payable together with the
twenty-eighth installment.  The amount of each installment shall be
reduced pro rata in the event less than the maximum amount of Tranche C is drawn
down;.

     

     

    
      
        
        

      

      
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    5.2           Voluntary Prepayment; No
Re-Borrowing.  The Borrowers may prepay, upon ten (10) Banking
Days written notice, any outstanding Advance or any portion thereof, without
penalty, provided that if such prepayment is made on a day other than the last
day of the Interest Period of such Advance such prepayment shall be made
together with the costs and expenses provided for in Section
5.4.  Each prepayment shall be in a minimum amount of One Million
Dollars ($1,000,000) plus any One Million Dollar ($1,000,000) multiple thereof
or the full amount of the then outstanding Tranches.  Prepayments
shall be applied to the remaining payments on a pro-rata basis and will not be
available for re-borrowing.

     

    5.3           Mandatory
Prepayment.  

     

    (a)           Sale or Loss of
Vessel.  On (i) any sale of a Vessel or (ii) the earlier of (x)
one hundred eighty (180) days after the Total Loss of a Vessel or (y) the date
on which the insurance proceeds in respect of such loss are received by the
Borrowers or the Security Trustee as assignee thereof or (iii) any of the
Borrowers is released from its obligations hereunder, the Borrowers shall prepay
the Facility and/or any commitment of the Lenders under the Facility will be
reduced in an amount equal to the greater of (i) any amounts outstanding under
the Facility associated with such Vessel and (ii) the amount required to ensure
that the Hull Cover Ratio in relation to the remaining Vessels is not less than
the Required Percentage.   Any prepayment under this Section 5.3
shall be applied towards the remaining scheduled installments in inverse order
of maturity.

     

    (b)           Guarantor Share
Offering.  Following one or more controlled share offerings or
marketed offerings in which the Guarantor has raised an aggregate minimum of
Twenty Five Million Dollars ($25,000,000), the Borrowers shall prepay the
Facility once in an amount equal to Five Million Dollars ($5,000,000), such
prepayment to be made from the offering proceeds within [thirty (30)] days after
the completion of the offering in which (combined with any previous offerings)
the aggregate minimum of Twenty Five Million Dollars ($25,000,000) is
raised.  Such prepayment is to be applied against the balloon
installments of each outstanding Tranche on a pro rata
basis.  Within [five (5)] days after the completion of the offering in
which the Twenty Five Million Dollar ($25,000,000) threshold is met, the
Guarantor shall provide the Administrative Agent with written notice of its
intention to make a prepayment under this Section 5.3(b).

     

    5.4           Interest and Costs with
Prepayments/Application of Prepayments.  Any prepayment of the
Advances made hereunder (including, without limitation, those made pursuant to
Sections 5 and 9.4) shall be subject to the condition that on the date of
prepayment all accrued interest to the date of such prepayment shall be paid in
full with respect to the Advances or portions thereof being prepaid, together
with any and all costs or expenses incurred by any Lender in connection with any
breaking of funding (as certified by such Lender, which certification shall,
absent any manifest error, be conclusive and binding on the
Borrowers).  

     

    
      	
              6.

            	
              INTEREST AND
      RATE

            

    

     

    6.1           Applicable
Rate.  Each Advance shall bear interest at the Applicable Rate,
which shall be defined as the rate per annum which is equal to the aggregate of
(a) LIBOR for the relevant Interest Period, plus (b) Mandatory Costs,
plus (c) the Margin.  The Applicable Rate shall be determined by the
Administrative Agent two (2) Banking Days prior to the first (1st) day of the
relevant Interest  

     

     

    
      
        
        

      

      
        30

        
          

        

      

      
        
        

      

    

    Period and the Administrative Agent shall promptly notify the
Borrowers in writing of the Applicable Rate as and when
determined.  Each such determination, absent manifest error, shall be
conclusive and binding upon the Borrowers. 

     

    6.2           Default
Rate.  Any amounts due under this Credit Facility Agreement,
not paid when due, whether by acceleration or otherwise, shall bear interest
thereafter from the due date thereof until the date of payment at a rate per
annum equal to (i) the Applicable Rate, plus two percent (2%) per annum
(the “Default Rate”).  In addition, following the occurrence of any
Event of Default  and until such Event of Default is cured to the
satisfaction of the Majority Lenders, the Facility shall bear interest at the
Default Rate.

     

    6.3           Interest
Periods.  The Borrowers shall give the Administrative Agent an
Interest Notice specifying the Interest Period selected for the next subsequent
Interest Period at least three (3) Banking Days prior to the end of any
then existing Interest Period, which notice the Administrative Agent agrees to
forward on to all Lenders on a same day basis or as soon as
practicable.  If at the end of any then existing Interest Period the
Borrowers fail to give an Interest Notice, the relevant Interest Period shall be
three (3) months.  The Borrowers’ right to select an Interest
Period shall be subject to the restriction that no selection of an Interest
Period shall be effective unless each Lender is satisfied that the necessary
funds will be available to such Lender for such period and that no Event of
Default or event which, with the giving of notice or lapse of time, or both,
would constitute an Event of Default shall have occurred and be continuing, in
which case the Interest Period shall be determined by the Administrative Agent
in its sole discretion.  Interest Periods for each Tranche hereunder
shall be consolidated as soon as practicable, but in no event later than thirty
(30) days after the delivery of the Vessel to which such Tranche
relates.  The Borrowers shall reimburse the Lenders for any and all
costs or expenses incurred by the Lenders in connection with any breaking of
funding (as certified by each Lender, which certification, absent manifest
error, shall be conclusive and binding on the Borrowers) as a consequence of
such consolidation.

    
6.4           Interest
Payments.  Accrued interest on the Facility shall be payable in
arrears on the last day of each Interest Period, except that if the Borrowers
shall select an Interest Period in excess of three (3) months, accrued interest
shall be payable during such Interest Period on each three (3) month anniversary
of the commencement of such Interest Period and upon the end of such Interest
Period (each an “Interest Payment Date”). 

     

    
      	
              7.

            	
              PAYMENTS

            

    

     

    7.1           Place of Payments, No Set
Off.  All payments to be made hereunder by the Borrowers shall
be made to the Administrative Agent, not later than 10 a.m. New York time (any
payment received after 10 a.m. New York time shall be deemed to have been paid
on the next Banking Day) on the due date of such payment, at its office located
at Gerhart-Hauptmann-Platz 50, 20095 Hamburg, Germany, or to such other office
of the Administrative Agent as the Administrative Agent may direct, without
set-off or counterclaim and free from, clear of, and without deduction or
withholding for, any Taxes, provided, however, that if the Borrowers shall at
any time be compelled by law to withhold or deduct any Taxes from any amounts
payable to the Lenders hereunder, then the Borrowers shall pay such additional
amounts in Dollars as may be necessary in order that the net amounts received
after withholding or deduction shall equal the amounts which would have been
received if such withholding or deduction were not required and, in the event
any withholding or 

     

    
      
        
        

      

      
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    deduction is made, whether for Taxes or otherwise, the Borrowers
shall promptly send to the Administrative Agent such documentary evidence with
respect to such withholding or deduction as may be required from time to time by
the Lenders, including evidence that the Borrowers have duly paid the
withholding or deductions as required.

     

    7.2           Tax
Credits.  If any Lender obtains the benefit of a credit against
the liability thereof for federal income taxes imposed by any taxing authority
for all or part of the Taxes as to which the Borrowers have paid additional
amounts as aforesaid in Section 7.1, then such Lender shall pay an amount
to the Borrowers which that Lender determines will leave it (after such payment)
in the same position as it would have been had the Tax payment not been made by
the Borrowers.  

     

    7.3           Sharing of
Setoffs.  Each Lender agrees that if it shall, through the
exercise of a right of banker's lien, setoff or counterclaim or pursuant to a
secured claim under Section 506 of the Federal Bankruptcy Code or other security
or interest arising from, or in lieu of, such secured claim, exercised or
received by such Lender under any applicable bankruptcy, insolvency or other
similar law or otherwise, or by any other means, obtain payment (voluntary or
involuntary) in respect of any Advance or Advances as a result of which its
funded Commitment shall be proportionately less than the funded Commitment of
any other Lender, it shall be deemed simultaneously to have purchased from such
other Lender at face value, and shall promptly pay to such other Lender the
purchase price for, a participation in the funded Commitment of such other
Lender so that the aggregate funded Commitment of each Lender shall be in the
same proportion to the aggregate funded Commitments then outstanding as its
funded Commitment prior to such exercise of banker's lien, setoff or
counterclaim or other event was to the principal amount of all funded
Commitments outstanding prior to such exercise of banker's lien, setoff or
counterclaim or other event; provided, however, that, if any
such purchase or purchases or adjustments shall be made pursuant to this Section
7.3 and the payment giving rise thereto shall thereafter be recovered, such
purchase or purchases or adjustments shall be rescinded to the extent of such
recovery and the purchase price or prices or
adjustment restored without interest.  Any Lender holding a
participation in a funded Commitment deemed to have been so purchased may
exercise any and all rights of banker's lien, setoff or counterclaim with
respect to any and all moneys owing to such Lender by reason thereof as fully as
if such Lender had made an Advance in the amount of such
participation.  Each of the Borrowers expressly consent to the
foregoing arrangement.

     

    7.4           Computations; Banking
Days.  (a) All computations of interest and fees shall be made
by the Administrative Agent or the Lenders, as the case may be, on the basis of
a 360-day year, in each case for the actual number of days (including the first
day but excluding the last day) occurring in the period for which interest or
fees are payable.  Each determination by the Administrative Agent or
the Lenders of an interest rate or fee hereunder shall be conclusive and binding
for all purposes, absent manifest error;

     

    (b)           Whenever
any payment hereunder or under the Note shall be stated to be due on a day other
than a Banking Day, such payment shall be due and payable on the next succeeding
Banking day unless the next succeeding Banking Day falls in the following
calendar month, in which case it shall be payable on the immediately preceding
Banking Day.

     

     

    
      
        
        

      

      
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              8.

            	
              EVENTS OF
      DEFAULT

            

    

     

    8.1           Events of
Default.  The occurrence of any of the following events shall
be an Event of Default:

     

    (a)           Non-Payment of
Principal.  any payment of principal is not paid when due;
or

     

    (b)           Non-Payment of Interest or
Other Amounts.  any interest or any other amount becoming
payable to the Administrative Agent or any Lender under this Credit Facility
Agreement, under the Note or under any of the Security Documents is not paid
within three (3) Banking Days of the due date or date of demand (as the case may
be); or

     

    (c)           Representations.  any
representation, warranty or other statement made by any of the Borrowers in this
Credit Facility Agreement or by any Security Party in any of the Security
Documents or in any other instrument, document or other agreement delivered in
connection herewith or therewith proves to have been untrue or misleading in any
material respect as at the date as of which made or confirmed; or

     

    (d)           Impossibility;
Illegality.  it becomes impossible or unlawful for any of the
Borrowers or the Guarantor to fulfill any of its covenants or obligations
hereunder, under the Note or under any of the Security Documents or for any of
the Lenders to exercise any of the rights vested in any of them hereunder, under
the Note or under any of the Security Documents; or

     

    (e)           Mortgage.  there
is an event of default under any Mortgage; or

     

    (f)           Covenants.  any
Security Party (i) defaults in the due and punctual observance or performance of
Sections 9.1(c), 9.1(h), 9.1(j), 9.1(k), 9.1(m), 9.1(n), 9.2(h) or 9.2(k) and
such default continued unremedied for a period of sixty (60) days or (ii)
defaults under any other term, covenant or agreement contained in this Credit
Facility Agreement, in the Note, in any of the
Security Documents or in any other instrument, document or other agreement
delivered in connection herewith or therewith, or there occurs any other event
which constitutes a default under this Credit Facility Agreement, under the Note
or under any of the Security Documents, in each case other than an Event of
Default referred to elsewhere in this Section 8.1; or

     

    (g)           Debt.  any
Security Party shall default in the payment when due of any Debt or of any other
debt, in either case, in the outstanding principal amount equal to or exceeding
Five Hundred Thousand Dollars ($500,000) or such debt or debt is, or by reason
of such default is subject to being, accelerated or any party becomes entitled
to enforce the security for any such Debt or debt and such party shall take
steps to enforce the same, unless such default or enforcement is being contested
in good faith and by appropriate proceedings or other acts and the Security
Party, Subsidiary or Affiliate of the Guarantor, as the case may be, shall set
aside on its books adequate reserves with respect thereto; or

     

    (h)           Ownership of
Borrowers.  the Guarantor shall cease to own directly or
indirectly, one hundred percent (100%) of any of the Borrowers; or

     

    (i)           Bankruptcy.  any
of the Borrowers, any Security Party, any Subsidiary or any Affiliate of the
Guarantor commences any proceeding under any reorganization, arrangement or

     

    
      
        
        

      

      
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    readjustment of debt, dissolution, winding up, adjustment,
composition, bankruptcy or liquidation law or statute of any jurisdiction,
whether now or hereafter in effect (a “Proceeding”), or there is commenced
against any thereof any Proceeding and such Proceeding remains undismissed or
unstayed for a period of thirty (30) days or any receiver, trustee, liquidator
or sequestrator of, or for, any thereof or any substantial portion of the
property of any thereof is appointed and is not discharged within a period of
thirty (30) days or any thereof by any act indicates consent to or approval of
or acquiescence in any Proceeding or the appointment of any receiver, trustee,
liquidator or sequestrator of, or for, itself or of, or for, any substantial
portion of its property; or

     

    (j)           Termination of Operations;
Sale of Assets.  except as expressly permitted under this
Credit Facility Agreement, any Security Party ceases its operations or sells or
otherwise disposes of all or substantially all of its assets or all or
substantially all of the assets of any Security Party are seized or otherwise
appropriated; or

     

    (k)           Judgments.  any
judgment or order is made, the effect whereof would be to render ineffective or
invalid this Credit Facility Agreement, the Note or any of the Security
Documents or any material provision thereof, or any Security Party asserts that
any such agreement or provision thereof is invalid; or

     

    (l)           Inability to Pay
Debts.  any of the Borrowers, any Security Party, any
Subsidiary or any Affiliate of the Guarantor is unable to pay or admits its
inability to pay its debts as they fall due or a moratorium shall be declared in
respect of any material indebtedness of any Security Party or any Affiliate of
the Guarantor; or

     

    (m)           Change in Financial
Position.  any change in the financial position of any Security
Party or any Affiliate of the Guarantor which, in the opinion of the Majority
Lenders, shall have a Material Adverse Effect; or

     

    (n)           Change in
Control.  a Change of Control shall occur with respect to the
Guarantor; or 

     

    (o)           Cross-Default.  any
of the Borrowers, any Security Party, any Subsidiary or any Affiliate of the
Guarantor defaults under any material contract or material agreement to which it
is a party or by which it is bound.

     

    Upon and
during the continuance of any Event of Default, the Lenders' obligation to make
any Advance available shall cease and the Administrative Agent may, and on the
instructions of the Majority Lenders shall, by notice to the Borrowers, declare
the entire unpaid balance of the then outstanding Advances, accrued interest and
any other sums payable by the Borrowers hereunder or under the Note due and
payable, whereupon the same shall forthwith be due and payable without
presentment, demand, protest or notice of any kind, all of which are hereby
expressly waived; provided that upon the happening of an event specified in
subsections (i) or (l) of this Section 8.1 with respect to the
Borrowers, the Note shall be immediately due and payable without declaration or
other notice to the Borrowers.  In such event, the Lenders may proceed
to protect and enforce their rights by action at law, suit in equity or in
admiralty or other appropriate proceeding, whether for specific performance of
any covenant contained in this Credit Facility Agreement, in the Note or in any
Security Document, or in aid of the exercise of any power granted herein or
therein, or the 

     

    
      
        
        

      

      
        34

        
          

        

      

      
        
        

      

    

    Lenders may proceed to enforce the payment of the Note or to
enforce any other legal or equitable right of the Lenders, or proceed to take
any action authorized or permitted under the terms of any Security Document or
by applicable law for the collection of all sums due, or so declared due, on the
Note.  Without limiting the foregoing, each of the Borrowers agree
that during the continuance of any Event of Default each of the Lenders shall
have the right to appropriate and hold or apply (directly, by way of set-off or
otherwise) to the payment of the obligations of the Borrowers to the Lenders
hereunder and/or under the Note (whether or not then due) all moneys and other
amounts of the Borrowers then or thereafter in possession of any Lender, the
balance of any deposit account (demand or time, mature or unmatured) of the
Borrowers then or thereafter with any Lender and every other claim of the
Borrowers then or thereafter against any of the Lenders.

     

    8.2           Indemnification.  Each
of the Borrowers agrees to, and shall, indemnify and hold the Agents and the
Lenders harmless against any loss, as well as against any costs or expenses
(including legal fees and expenses), which any of the Agents or the Lenders
sustains or incurs as a consequence of any default in payment of the principal
amount of the Facility, interest accrued thereon or any other amount payable
hereunder, under the Note or under any Security Documents, including, but not
limited to, all actual losses incurred in liquidating or re-employing fixed
deposits made by third parties or funds acquired to effect or maintain the
Facility or any portion thereof.  Any Lenders' certification of such
costs and expenses shall, absent any manifest error, be conclusive and binding
on the Borrowers.

     

    8.3           Application of
Moneys.  Except as otherwise provided in any Security Document,
all moneys received by the Agents or the Lenders under or pursuant to this
Credit Facility Agreement, the Note or any of the Security Documents after the
happening of any Event of Default (unless cured to the satisfaction of the
Majority Lenders) shall be applied by the Administrative Agent in the following
manner:

     

    
      (a)           first,
in or towards the payment or reimbursement of any expenses or liabilities
incurred by the Agents, or the Lenders in connection with the ascertainment,
protection or enforcement of their rights and remedies hereunder, under the Note
and under any of the Security Documents,

    

     

    (b)           second,
in or towards payment of any interest owing in respect of the
Facility,

     

    (c)           third,
in or towards repayment of principal owing in respect of the
Facility,

     

    (d)           fourth,
in or towards payment of all other sums which may be owing to the Finance
Parties under this Credit Facility Agreement, under the Note or under any of the
Security Documents,

     

    (e)           fifth,
in or towards payments of any amounts then owed under any Interest Rate
Agreement, including, but not limited to, any costs associated with unwinding
any Interest Rate Agreement, on a pari passu basis, and

     

    (f)           sixth,
the surplus (if any) shall be paid to the Borrowers or to whosoever else may be
entitled thereto.

     

     

    
      
        
        

      

      
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              9.

            	
              COVENANTS

            

    

     

    9.1           Affirmative
Covenants.  Each of the Borrowers (and the Guarantor by its
execution of the Consent and Agreement annexed hereto), hereby covenant and
undertake with the Lenders that, from the date hereof and so long as any
principal, interest or other moneys are owing in respect of this Credit Facility
Agreement, under the Note or under any of the Security Documents, it
will:

     

    (a)           Performance of
Agreements.  duly perform and observe, and procure the
observance and performance by all other parties thereto (other than the Agents
and the Lenders) of, the terms of this Credit Facility Agreement, the Note and
the Security Documents;

     

    (b)           Notice of Default,
etc.  promptly upon, and in any event no later than three (3)
Banking Days after, obtaining knowledge thereof, inform the Administrative Agent
of the occurrence of (a) any Event of Default or of any event which, with
the giving of notice or lapse of time, or both, would constitute an Event of
Default, (b) any litigation or governmental proceeding pending or
threatened against it or against any of its Subsidiaries which could reasonably
be expected to have a Material Adverse Effect, including but not limited to, in
respect of any Environmental Claim, (c) the withdrawal of any Vessel's rating by
its Classification Society or the issuance by the Classification Society of any
material recommendation or notation affecting class and (d) any other event
or condition which is reasonably likely to have a Material Adverse
Effect;

     

    (c)           Obtain
Consents.  without prejudice to Section 2.1 and this
Section 9.1, obtain and maintain every consent and do all other acts and
things which may from time to time be necessary or advisable for the continued
due performance of all its and the other Security Parties’ respective
obligations under this Credit Facility Agreement, under the Note and under the
Security Documents;

     

    (d)           Financial
Information.  deliver to each Lender:

     

    
      
        	 	(i) 	
                as
      soon as available but not later than one hundred twenty (120) days after
      the end of each fiscal year of the Guarantor, complete copies of the
      consolidated financial reports of the Guarantor and its Subsidiaries
      (together with a Compliance Certificate and a detailed reconciliation of
      all of the differences between GAAP as at December 31, 2006 and as at the
      time of delivery), all in reasonable detail, which shall include at least
      the consolidated balance sheet of the Guarantor and its Subsidiaries as of
      the end of such year and the related consolidated statements of income and
      sources and uses of funds for such year, which shall be audited reports
      prepared by an Acceptable Accounting Firm, and each of the Borrowers shall
      provide to each Lender as soon as available but not later than one hundred
      eighty (180) days after the end of each fiscal year of such Borrower and
      any Charterers, complete copies of the consolidated financial reports of
      each of the Borrowers and any Charterers; 

              
	
                 

              	 	 

         

        
          
            
            

          

          
            36

            
              

            

          

          
            
            

          

        

        	
                 
      

              	
                (ii)

              	
                as
      soon as available but not later than forty-five (45) days after the
      end of each of the first three quarters of each fiscal year of the
      Guarantor, a quarterly interim consolidated balance sheet of the Guarantor
      and its Subsidiaries and the related consolidated profit and loss
      statements and sources and uses of funds (together with a Compliance
      Certificate and a detailed reconciliation of all of the differences
      between GAAP as at December 31, 2006 and as at the time of delivery), all
      in reasonable detail, unaudited, but certified to be true and complete by
      the chief financial officer of the
Guarantor;

              

      

    

     

    
      	
               
      

            	
              (iii)

            	
              within
      ten (10) days of the filing thereof at the email addresses set forth in
      Schedule 1, electronic copies of all registration statements and reports
      on Forms 10-K, 10-Q and 8-K (or their equivalents) and other material
      filings which the Guarantor shall have filed with the Securities and
      Exchange Commission or any similar governmental
  authority;

            

    

     

    
      	
               
      

            	
              (iv)

            	
              promptly
      upon the mailing thereof to the shareholders of the Guarantor, copies of
      all financial statements, reports, proxy statements and other
      communications provided to the Guarantor’s
  shareholders;

            

    

     

    
      	
               
      

            	
              (v)

            	
              within
      ten (10) days of the Security Parties’ receipt thereof, copies of all
      audit letters or other correspondence from any external auditors including
      material financial information in respect of the Security
      Parties;

            

    

     

    
      	
               
      

            	
              (vi)

            	
              such
      other statements (including, without limitation, monthly consolidated
      statements of operating revenues and expenses), lists of assets and
      accounts, budgets, forecasts, reports and other financial information with
      respect to its business as the Administrative Agent may from time to time
      request, certified to be true and complete by the chief financial officer
      of each of the Guarantor;

            

    

     

     

    (e)    Vessel
Valuations.  reimburse the Administrative Agent for the cost of
appraisals of the Fair Market Value of the Vessels.  The
Administrative Agent shall be entitled to obtain such valuations from two ship
brokers approved by the Lenders one time per Vessel in each calendar year, to be
delivered on each anniversary of the Drawdown Date relating to such Vessel, and
upon the occurrence of an Event of Default;

     

    (f)           Corporate
Existence.  do or cause to be done, and procure that each
Subsidiary of the Guarantor shall do or cause to be done, all things necessary
to preserve and keep in full force and effect its corporate existence, or
limited liability company existence, as the case may be, and all licenses,
franchises, permits and assets necessary to the conduct of its
business;

     

    (g)           Books and
Records.  at all times keep, and cause each Subsidiary of the
Guarantor to keep, proper books of record and account into which full and
correct entries shall be made in accordance with GAAP;

     

     

    
      
        
        

      

      
        37

        
          

        

      

      
        
        

      

    

     

    (h)           Taxes and
Assessments.  pay and discharge, and cause each Subsidiary of
the Guarantor to pay and discharge, all taxes, assessments and governmental
charges or levies imposed upon it or upon its income or property prior to the
date upon which penalties attach thereto; provided, however, that it shall not
be required to pay and discharge, or cause to be paid and discharged, any such
tax, assessment, charge or levy so long as the legality thereof shall be
contested in good faith and by appropriate proceedings or other acts and it
shall set aside on its books adequate reserves with respect
thereto;

     

    (i)           Inspection.  allow,
and cause each Subsidiary to allow, upon ten (10) Banking Days notice from the
Administrative Agent, any representative or representatives designated by the
Administrative Agent, subject to applicable laws and regulations, to visit and
inspect any of its properties, and, on request, to examine its books of account,
records, reports, agreements and other papers and to discuss its affairs,
finances and accounts with its officers, all at such times and as often as the
Administrative Agent requests;

     

    (j)           Inspection and Survey
Reports.  if the Lenders shall so request, the Borrowers shall
permit the Lenders to inspect the Vessels and shall provide the Lenders with
copies of all internally generated inspection or survey reports on the Vessels,
provided, however, that if the Vessels are found in satisfactory condition, the
cost of such inspections shall be borne by the Borrowers not more than once a
year;

     

    (k)           Compliance with Statutes,
Agreements, etc.  do or cause to be done, and cause each
Subsidiary to do and cause to be done, all things necessary to comply with all
contracts or agreements to which it, or any Subsidiary is a party, and all laws,
and the rules and regulations thereunder, applicable to the Borrowers, the
Guarantor or such Subsidiary, including, without limitation, those laws, rules
and regulations relating to employee benefit plans and environmental
matters;

     

    (l)           Environmental
Matters.  promptly upon the occurrence of any of the following
conditions, provide to the Administrative Agent a certificate of an executive
officer thereof, specifying in detail the nature of such condition and its
proposed response or the response of its Environmental
Affiliates:  (a) its receipt or the receipt by any other Security
Party or any Environmental Affiliates of the Borrowers or any other Security
Party of any written communication whatsoever that alleges that such person is
not in compliance with any applicable Environmental Law or Environmental
Approval, if such noncompliance could reasonably be expected to have a Material
Adverse Effect, (b) knowledge by it, or by any other Security Party or any
Environmental Affiliates of the Borrowers or any other Security Party that there
exists any Environmental Claim pending or threatened against any such person,
which could reasonably be expected to have a Material Adverse Effect, or
(c) any release, emission, discharge or disposal of any material that could
form the basis of any Environmental Claim against it, any other Security Party
or against any Environmental Affiliates of the Borrowers or any other Security
Party, if such Environmental Claim could reasonably be expected to have a
Material Adverse Effect.  Upon the written request by the
Administrative Agent, it will submit to the Administrative Agent at reasonable
intervals, a report providing an update of the status of any issue or claim
identified in any notice or certificate required pursuant to this subsection;

     

     

    
      
        
        

      

      
        38

        
          

        

      

      
        
        

      

    

     

    (m)           Vessel
Management.  cause each of the Vessels to be managed
commercially by the Top Tanker Management Inc., which may subcontract the
technical management of the Vessels to V. Ships or Hanseatic or any other
management company acceptable to the Majority Lenders;

     

    (n)           ISM Code, ISPS Code, MTSA
and Annex VI Matters.  (i) procure that the Operator will
comply with and ensure each of the Vessels will comply with the requirements of
the ISM Code, ISPS Code, MTSA and Annex VI in accordance with the implementation
schedule thereof, including (but not limited to) the maintenance and renewal of
valid certificates and when required, security plans, pursuant thereto; and (ii)
will procure that the Operator will immediately inform the Administrative Agent
if there is any threatened or actual withdrawal of its DOC, SMC, the ISSC or
IAPPC in respect of any Vessel; and upon the request of the Administrative Agent
(iii) will procure that the Operator will promptly inform the Administrative
Agent upon the issuance to the Borrowers or Operator of a DOC and the issuance
to any Vessel of an SMC, ISSC or IAPPC;

     

    (o)           Brokerage Commissions,
etc.  indemnify and hold each of the Agents and the Lenders
harmless from any claim for any brokerage commission, fee, or compensation from
any broker or third party resulting from the transactions contemplated
hereby;

     

    (p)           Deposit Accounts;
Assignment.  (i) each of the Borrowers shall maintain an
Earnings Account, (ii) the Borrowers shall maintain the Debt Service Reserve
Account and agree to deposit and maintain funds therein in accordance with
Section 4.1(h) hereof and (iii) the Borrowers shall maintain a Retention Account
and shall transfer the Retention Amount each month from the Earnings Accounts to
the Retention Account;

     

    (q)           Insurance.  maintain,
and cause each other Security Party to maintain, with financially sound and
reputable insurance companies satisfactory to the Administrative Agent,
insurance on all their respective properties and against all such risks and in
at least such amounts as are
usually insured against by companies of established reputation engaged in the
same or similar business from time to time, including, but not limited to (i)
hull and machinery insurance (fire, marine and other risks, including excess
risks and war risks) in an amount of not less than 120% of the Facility of the
Fair Market Value of the Vessels, whichever is higher, (ii) protection and
indemnity insurance at the highest possible cover available (as of the date of
this Credit Facility Agreement, $1,000,000,000) and with a P&I club
satisfactory to the Administrative Agent, and (iii) mortgagee’s interest
insurance (“MII”) in an amount of not less than 120% and mortgagee’s additional
perils pollution insurance (“MAP”) in an  amount of not less than 110%
of the Facility; and

     

    (r)           Interest Rate
Agreements.  HSH shall be entitled to provide the Borrowers
with a quote for any interest rate derivatives product to be entered into by the
Borrowers in connection with the Facility and the Borrowers agree to grant HSH a
right of first refusal in respect thereof.  The Borrowers further
undertake with HSH to hedge at least 60% of the amount of the Facility not later
than the Commitment Termination Date for the first five (5) years of the
Facility (the “Hedging”), and the Borrowers shall deliver to the Administrative
Agent an interest rate hedging strategy for the Hedging, with the assistance of
the Administrative Agent in the definition of that strategy.

     

     

    
      
        
        

      

      
        39

        
          

        

      

      
        
        

      

    

     

    9.2           Negative
Covenants.  Each of the Borrowers (and the Guarantor by its
execution of the Consent and Agreement annexed hereto) hereby covenants and
undertakes with the Lenders that, from the date hereof and so long as any
principal, interest or other moneys are owing in respect of this Credit Facility
Agreement, under the Note or under any of the Security Documents, it will not,
without the prior written consent of the Majority Lenders (or all of the Lenders
if required by Section 15.8): 

     

    (a)           Liens.  create,
assume or permit to exist, any mortgage, pledge, lien, charge, encumbrance or
any security interest whatsoever upon any Collateral or other property
except:

     

    
      	
               
      

            	
              (i)

            	
              the
      Mortgages, the Assignments and other liens in favor of the Security
      Trustee; and

            

    

     

    
      	
               
      

            	
              (ii)

            	
              liens,
      charges and encumbrances against their respective Vessels permitted to
      exist under the terms of the
Mortgages;

            

    

     

    (b)           Debt.  (i)
with respect to each of the Borrowers, incur any Debt, excluding Debt to the
Agents or any of the Lenders hereunder, other than in the ordinary course of
business, and with respect to the Guarantor, incur any Debt that would violate
Section 9.3, (ii) permit any Subsidiary of the Guarantor to incur any Debt that
would cause the Guarantor to be in default under any provision of Section 9.3 or
(iii) permit the Guarantor to make advances or extend credit to, or become
obligated, contingently or otherwise, in respect of any Debt of, any
Subsidiary;

     

    (c)           Change of Flag, Class,
Management or Ownership.  change the flag of any Vessel other
than to a Permitted Jurisdiction, their Classification Society other than to
another member of the International Association of Classification Societies
designated by the Borrowers and approved by the Administrative Agent, the
technical management of any Vessel other than to one or
more technical management companies acceptable to the Majority Lenders or the
immediate or ultimate ownership of any Vessel;

     

    (d)           Chartering.  enter
into any bareboat charter with any party other than a Subsidiary or an Affiliate
thereof, with respect to any of the Vessels having a duration of, including any
options to extend such charter, more than twelve (12) months without the prior
consent of the Administrative Agent (acting on behalf of the Majority Lenders);

     

    (e)           Change in
Business.  materially change the nature of its business or
commence any business materially different from its current
business;

     

    (f)           Sale or Pledge of
Shares.  with respect to the Guarantor, sell, assign, transfer,
pledge or otherwise convey or dispose of any of the shares (including by way of
spin-off, installment sale or otherwise) of the capital stock, or limited
liability company interests, as the case may be of any of the
Borrowers;

     

    (g)           Sale of
Assets.  with respect to each of the Borrowers, sell, or
otherwise dispose of, any Vessel (unless otherwise in accordance with this
Credit Facility Agreement) or any other asset (including  by way of
spin-off, installment sale or otherwise) which is substantial in relation to its
assets taken as a whole, other than such sales by the one Borrower to
another;

     

     

    
      
        
        

      

      
        40

        
          

        

      

      
        
        

      

    

     

    (h)           Changes in
Offices.  change the location of the chief executive office of
any Security Party, the office of the chief place of business of any such
parties or the office of the Security Parties in which the records relating to
the earnings or insurances of any Vessel are kept unless the Lenders shall have
received thirty (30) days prior written notice of such change;

     

    (i)           Consolidation and
Merger.  consolidate with, or merge into, any corporation or
other entity, or merge any corporation or other entity into it; 

     

    (j)           Change Fiscal
Year.  change its fiscal year;

     

    (k)           Limitations on Ability to
Make Distributions.  create or otherwise cause or permit to
exist or become effective any consensual encumbrance or restriction on the
ability of any Borrower to (i) pay dividends or make any other
distributions on its capital stock or limited liability company interests, as
the case may be, to the Guarantor or any Borrower or pay any Debt owed to the
Guarantor, (ii) make any loans or advances to the Guarantor, or
(iii) transfer any of its property or assets to the Guarantor;

     

    (l)           Use of Corporate
Funds.  permit any Borrower to pay out any funds to any company
or person except (i) in the ordinary course of business in connection with
the management of the business of the Guarantor and its Subsidiaries, including
the operation and/or repair of any of the Vessels and other vessels owned or
operated by such parties and (ii) the servicing of the Debt permitted
hereunder;

     

    (m)           Issuance of
Shares.  permit any Borrower to issue or dispose of any shares
of its own capital stock or limited liability company interests, as the case may
be, to any person other than the Guarantor;

     

    (n)           No Money
Laundering.  in connection with this Credit Facility Agreement
or any of the Security Documents, contravene or permit any Borrower or any
Subsidiary of the Guarantor to contravene, any law, official requirement or
other regulatory measure or procedure implemented to combat “money laundering”
(as defined in Article 1 of the Directive (91/308/EEC) of the Council of the
European Communities) and comparable United States Federal and state
laws.  In addition, each of the Borrowers confirm that they are the
beneficiary (within the meaning of Section 8 of the German Money Laundering Act
(Gesetz über das Aufspüren von Gewinnen aus schweren Straftaten
(Geldwäschegesetz)) for each Advance made or to be made available to it. The
Borrowers will promptly inform the Lenders (by written notice to the
Administrative Agent) if any of the Borrowers are not or ceases to be the
beneficiary and will provide in writing the name and address of the
beneficiary.  Each of the Borrowers agrees that it will submit any
documentation on request, if such documentation is required by any of the
Lenders to comply with their Anti-Money Laundering/legal identification
requirements;

     

    (o)           Accounts.  will
not establish any operating accounts or earnings accounts in respect of the
Assigned Moneys with any Lender or with any other financial institution other
than the Administrative Agent;

     

    (p)           Dividends and Distributions
to the Guarantor.  with respect to the Borrowers, declare or
pay dividends or make any distributions to its shareholders in any form
whatsoever in 

    
      
        
        

      

      
        41

        
          

        

      

      
        
        

      

    

     

    excess of
70% of its net income per year, as evidenced by such Borrower’s relevant
financial statements;

     

    (q)           Use of
Proceeds.  will not use the proceeds of Advances in violation
of Regulation T, U or X; and

     

    9.3           Financial
Covenants.  The Guarantor, by its execution of the Consent and
Agreement annexed hereto, hereby covenants and undertakes with the Lenders that,
from the date hereof and so long as any principal or interest are outstanding or
other moneys are owing in respect of this Credit Facility Agreement, under the
Note or under any of the Security Documents, the Guarantor will:

     

    (a)           Adjusted Net
Worth.  maintain at all times an Adjusted Net Worth of not less
than Two Hundred Fifty Million Dollars ($250,000,000) and such Adjusted Net
Worth shall not be less than Thirty Five Percent (35%) of the Total
Assets;

     

    (b)           EBITDA to Fixed
Charges.  ensure that EBITDA shall at all times exceed 120% of
the aggregate amount of Fixed Charges; and

     

    (c)           Minimum
Liquidity.  at all times maintain Liquid Funds in the greater
of Twenty Five Million Dollars ($25,000,000), or Five Hundred Thousand Dollars
($500,000) per vessel directly or indirectly owned or bareboat chartered-in
and/or leased-back by the Guarantor (the “Minimum Liquidity”).

     

    Each of
the financial covenants set forth in this Section 9.3 shall be tested on the
basis of the quarterly, semi-annual and annual financial statements of the
Guarantor and shall be accompanied by a Compliance Certificate, substantially in
the form of Exhibit H hereto, detailing all appropriate calculations, prepared
and signed by a duly authorized representative of the Guarantor.  In
addition, the
Guarantor shall provide any information on their financial condition,
commitments and operations which any Lender may reasonably require.

     

    9.4           Asset
Maintenance.  If at any time during the term of the Credit
Facility Agreement, the Fair Market Value of Vessels is less than the Required
Percentage, the Borrowers shall, within a period of thirty (30) days
following receipt by the Borrowers of written notice from the Administrative
Agent notifying the Borrowers of such shortfall and specifying the amount
thereof (which amount shall, in the absence of manifest error, be deemed to be
conclusive and binding on the Borrowers), either (i) deliver to the
Security Trustee such additional collateral as may be satisfactory to the
Lenders in their sole discretion of sufficient value to make the aggregate Fair
Market Value of said Vessel plus the additional collateral, equal to the
Required Percentage of the outstanding amount of the Tranche relating to that
Vessel or (ii) the Borrowers shall prepay such amount of the Facility
(together with interest thereon and any other monies payable in respect of such
prepayment pursuant to Section 5.4) as shall result in the Fair Market Value of
that Vessels being not less than the Required Percentage. 

     

    
      	
              10.

            	
              ASSIGNMENT

            

    

     

    This
Credit Facility Agreement shall be binding upon, and inure to the benefit of,
the Borrowers and the Lenders, the Agents and their respective successors and
assigns, except that the Borrowers may 

     

    
      
        
        

      

      
        42

        
          

        

      

      
        
        

      

    

    not
assign any of its rights or obligations hereunder.  Each Lender shall
be entitled to assign its rights and obligations under this Credit Facility
Agreement or grant participation(s) in the Facility to any subsidiary, holding
company or other affiliate of such Lender, to any subsidiary or other affiliate
company of any thereof or to any other bank or financial institution or
collateralized loan obligation trust or fund (a “CLO”) without the consent of
the Borrowers.  Each Lender may transfer all or any part of its
rights, benefits and its obligations under this Credit Facility Agreement and
any of the other Security Documents to any subsidiary or other affiliate company
of any thereof or to any other bank or financial institution or CLO (the
“Transferee”) if the Transferee, by delivery of such undertaking, becomes bound
by the terms of this Credit Facility Agreement and agrees to perform all or, as
the case may be, part of such Lender’s obligations under this Credit Facility
Agreement.  Each Lender may disclose to a prospective assignee,
transferee or to any other person who may propose entering into contractual
relations with such Lender in relation to the Credit Facility Agreement and such
information about each if the Borrowers and the Guarantor as such Lender shall
consider appropriate.  The Borrowers will take all actions requested
by the Agents or any Lender to effect such assignment, including, without
limitation, the execution of a written consent to any Assignment and Assumption
Agreement.

     

    
      	
              11.

            	
              ILLEGALITY, INCREASED
      COST, NON-AVAILABILITY, ETC.

            

    

     

    11.1           Illegality.  In
the event that by reason of any change in any applicable law, regulation or
regulatory requirement or in the interpretation thereof, a Lender has a basis to
conclude that it has become unlawful for any Lender to maintain or give effect
to its obligations as contemplated by this Credit Facility Agreement, such
Lender shall inform the Administrative Agent and the Borrowers to that effect,
whereafter the liability of such Lender to make its Commitment available shall
forthwith cease and the Borrowers shall be required either to repay to such
Lender that portion of the Facility advanced by such Lender immediately or, if
such Lender so agrees, to repay such portion of the Facility
to such Lender on the last day of any then current Interest Period in accordance
with and subject to the provisions of Section 11.5.  In any such
event, but without prejudice to the aforesaid obligations of the Borrowers to
repay such portion of the Facility, the Borrowers and the relevant Lender shall
negotiate in good faith with a view to agreeing on terms for making such portion
of the Facility available from another jurisdiction or otherwise restructuring
such portion of the Facility on a basis which is not unlawful.

     

    11.2           Increased
Costs.  If as a result of the implementation of the
International Convergence of Capital Measurement and Capital Standards: A
Revised Framework (Basel II) or any other change in applicable law, regulation
or regulatory requirement (including any applicable law, regulation or
regulatory requirement which relates to capital adequacy or liquidity controls
or which affects the manner in which any Lender allocates capital resources
under this Credit Facility Agreement), or in the interpretation or application
thereof by any governmental or other authority, shall:

     

    
      	
               
      

            	
              (i)

            	
              subject
      any Lender to any Taxes with respect to its income from the Facility, or
      any part thereof; or

            

    

     

    
      	
               
      

            	
              (ii)

            	
              change
      the basis of taxation to any Lender of payments of principal or interest
      or any other payment due or to become due pursuant to this Credit Facility
      Agreement (other than a change in the basis effected by the jurisdiction
      of organization of such Lender, the jurisdiction of
  

            

    

     

     

    
      
        
        

      

      
        43

        
          

        

      

      
        
        

      

    

     

    
      
        	 	 	
                the
      principal place of business of such Lender, the United States of America,
      the State or City of New York or any governmental subdivision or other
      taxing authority having jurisdiction over such Lender  (unless
      such jurisdiction is asserted by reason of the activities of the Borrowers
      or any of the other Security Parties) or such other jurisdiction where the
      Facility may be payable); or

                 

              
	
                 
      

              	
                (iii)

              	
                impose,
      modify or deem applicable any reserve requirements or require the making
      of any special deposits against or in respect of any assets or liabilities
      of, deposits with or for the account of, or loans by, a Lender;
      or

              

      

    

     

    
      	
               
      

            	
              (iv)

            	
              impose
      on any Lender any other condition affecting the Facility or any part
      thereof;

            

    

     

    and the
result of the foregoing is either to increase the cost to such Lender of making
available or maintaining its Commitment or any part thereof or to reduce the
amount of any payment received by such Lender, then and, in any such case, if
such increase or reduction, in the opinion of such Lender, materially affects
the interests of such Lender under or in connection with this Credit Facility
Agreement:

     

    
      	
               
      

            	
              (i)

            	
              the
      Lender shall notify the Administrative Agent and the Borrowers of the
      happening of such event, and

            

    

     

    
      	
               
      

            	
              (ii)

            	
              the
      Borrowers agree forthwith upon demand to pay to such Lender such amount as
      such Lender certifies to be necessary to compensate such Lender for such
      additional cost or such reduction.

            

    

     

    11.3           Nonavailability of
Funds.  If the Administrative Agent shall determine that, by
reason of circumstances affecting the London Interbank Market generally,
adequate and reasonable means do not or will not exist for ascertaining the
Applicable Rate for the Facility for any Interest Period, the Administrative
Agent shall give notice of such determination to the Borrowers.  The
Majority Lenders shall then determine the interest rate and/or Interest Period
to be substituted for those which would otherwise have applied under this Credit
Facility Agreement.  If the Majority Lenders are unable to agree upon
such a substituted interest rate and/or Interest Period within thirty (30)
days of the giving of such determination notice, the Administrative Agent shall
set an interest rate and Interest Period to take effect from the expiration of
the Interest Period in effect at the date of determination, which rate shall be
equal to the Margin plus the cost to the Lenders (as certified by each Lender)
of funding the Facility.  In the event the state of affairs referred
to in this Section 11.3 shall extend beyond the end of the Interest Period,
the foregoing procedure shall continue to apply until circumstances are such
that the Applicable Rate may be determined pursuant to
Section 6.

     

    11.4           Lender's Certificate
Conclusive.  A certificate or determination notice of any
Lender as to any of the matters referred to in this Section 11 shall,
absent manifest error, be conclusive and binding on the Borrowers.

     

     

    
      
        
        

      

      
        44

        
          

        

      

      
        
        

      

    

     

    11.5           Compensation for
Losses.  Where the Facility or any portion thereof is to be
repaid by the Borrowers pursuant to this Section 11, the Borrowers agree
simultaneously with such repayment to pay to the relevant Lender all accrued
interest to the date of actual payment on the amount repaid and all other sums
then payable by the Borrowers to the relevant Lender pursuant to this Credit
Facility Agreement, together with such amounts as may be certified by the
relevant Lender to be necessary to compensate such Lender for any actual loss,
premium or penalties incurred or to be incurred thereby on account of funds
borrowed to make, fund or maintain its Commitment or such portion thereof for
the remainder (if any) of the then current Interest Period or Interest Periods,
if any, but otherwise without penalty or premium.

     

    
      	
              12.

            	
              CURRENCY
      INDEMNITY

            

    

     

    12.1           Currency
Conversion.  If, for the purpose of obtaining or enforcing a
judgment in any court in any country, it becomes necessary to convert into any
other currency (the “judgment currency”) an amount due in Dollars under this
Credit Facility Agreement, the Note or any of the Security Documents, then the
conversion shall be made, in the discretion of the Administrative Agent, at the
rate of exchange prevailing either on the date of default or on the day before
the day on which the judgment is given or the order for enforcement is made, as
the case may be (the “conversion date”), provided that the Administrative Agent
shall not be entitled to recover under this section any amount in the judgment
currency which exceeds at the conversion date the amount in Dollars due under
this Credit Facility Agreement, the Note, the Guaranty and/or any of the
Security Documents.

     

    12.2           Change in Exchange
Rate.  If there is a change in the rate of exchange prevailing
between the conversion date and the date of actual payment of the amount due,
the Borrowers shall pay such additional
amounts (if any, but, in any event, not a lesser amount) as may be necessary to
ensure that the amount paid in the judgment currency, when converted at the rate
of exchange prevailing on the date of payment, will produce the amount then due
under this Credit Facility Agreement, the Note and/or any of the Security
Documents in Dollars; any excess over the amount due received or collected by
the Lenders shall be remitted to the Borrowers.

     

    12.3           Additional Debt
Due.  Any amount due from the Borrowers under this
Section 12 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 this
Credit Facility Agreement, the Note and/or any of the Security
Documents.

     

    12.4           Rate of
Exchange.  The term “rate of exchange” in this Section 12
means the rate at which the Administrative Agent  in accordance with
its normal practices is able on the relevant date to purchase Dollars with the
judgment currency and includes any premium and costs of exchange payable in
connection with such purchase.

     

    
      	
              13.

            	
              FEES AND
      EXPENSES

            

    

     

    13.1           Fees.  During
the period beginning on the date of this Credit Facility Agreement and ending on
the Commitment Termination Date, the Borrowers shall pay, quarterly in arrears,
with the final payment to be made on the Commitment Termination Date, to the
Administrative Agent (for the account of the Lenders), a commitment fee (the
“Commitment Fee”) of thirty-five hundredths 

     

    
      
        
        

      

      
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    of one percent (0.35%) per annum payable on the average undrawn
amount of the Facility.  The Borrowers shall also pay the Lenders such
fees as the parties have agreed pursuant to the Fee Letter. 

     

    13.2           Expenses.  The
Borrowers agree, whether or not the transactions hereby contemplated are
consummated, on demand to pay, or reimburse the Agents for their payment of, the
expenses of the Agents and (after the occurrence and during the continuance of
an Event of Default) the Lenders incident to said transactions (and in
connection with any supplements, amendments, waivers or consents relating
thereto or incurred in connection with the enforcement or defense of any of the
Agents' and the Lenders' rights or remedies with respect thereto or in the
preservation of the Agent's and the Lenders' priorities under the documentation
executed and delivered in connection therewith), including, without limitation,
all costs and expenses of preparation, negotiation, execution and administration
of this Credit Facility Agreement and the documents referred to herein
(including, but not limited to, Value Added Tax imposed on any Lender related to
those expenses), the fees and disbursements of the Agents' and Lenders' counsel
in connection therewith, as well as the fees and expenses of any independent
appraisers, surveyors, engineers, inspectors and other consultants retained by
the Agents in connection with this Agreement and the transactions contemplated
hereby and under the Security Documents, all costs and expenses, if any, in
connection with the enforcement of this Credit Facility Agreement, the Note and
the Security Documents and stamp and other similar taxes, if any, incident to
the execution and delivery of the documents (including, without limitation, the
Note) herein contemplated and to hold the Agents and the Lenders free and
harmless in connection with any liability arising from the nonpayment of any
such stamp or other similar taxes.  Such taxes and, if any, interest
and penalties related thereto as may become payable after the date hereof shall
be paid immediately by the Borrowers to the Agents or the Lenders, as the case
may be, when liability therefor is no longer contested by such party or
parties
or reimbursed immediately by the Borrowers to such party or parties after
payment thereof (if the Agents or the Lenders, at their sole discretion, chooses
to make such payment).

     

    
      	
              14.

            	
              APPLICABLE LAW,
      JURISDICTION AND WAIVER

            

    

     

    14.1           Applicable
Law.  This Credit Facility Agreement shall be governed by, and
construed in accordance with, the laws of the State of New York.

     

    14.2           Jurisdiction.  Each
of the Borrowers hereby irrevocably submits to the jurisdiction of the courts of
the State of New York and of the United States District Court for the Southern
District of New York in any action or proceeding brought against the Borrowers
by any of the Lenders or the Agents under this Credit Facility Agreement or
under any document delivered hereunder and hereby irrevocably agrees that valid
service of summons or other legal process on it may be effected by serving a
copy of the summons and other legal process in any such action or proceeding on
the Borrowers, or its agent as designated in Section 4.2(f), by mailing or
delivering the same by hand to the Borrowers at the address indicated for
notices in Section 16.1 or to its agent at the address indicated in Section
4.2(f).  The service, as herein provided, of such summons or other
legal process in any such action or proceeding shall be deemed personal service
and accepted by the Borrowers as such, and shall be legal and binding upon the
Borrowers for all the purposes of any such action or
proceeding.  Final judgment (a certified or exemplified copy of which
shall be conclusive evidence of the fact and of the amount of any indebtedness
of the Borrowers to the Lenders or the Administrative Agent) against the
Borrowers in any such legal action or proceeding shall be conclusive and may be
enforced in other jurisdictions by suit on the judgment.  The
Borrowers will 

    
      
        
        

      

      
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    advise the Administrative Agent promptly of any change of address
for the purpose of service of process.  Notwithstanding anything
herein to the contrary, the Lenders may bring any legal action or proceeding in
any other appropriate jurisdiction.

     

    14.3           Waiver of Jury
Trial.  IT IS
MUTUALLY AGREED BY AND AMONG THE BORROWERS, THE OTHER SECURITY PARTIES, THE
ADMINISTRATIVE AGENT AND THE LENDERS THAT EACH OF
THEM HEREBY WAIVES TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM
BROUGHT BY ANY PARTY HERETO AGAINST ANY OTHER PARTY HERETO ON ANY MATTER
WHATSOEVER ARISING OUT OF OR IN ANY WAY CONNECTED WITH THIS AGREEMENT, THE NOTE
OR THE SECURITY DOCUMENTS.

     

    
      	
              15.

            	
              THE
      AGENTS

            

    

     

    15.1           Appointment of
Agents.  Each of the Lenders irrevocably appoints and
authorizes the Agents severally each to take such action as agent on its behalf
and to exercise such powers under this Credit Facility Agreement, the Note and
the Security Documents as are delegated to such Agent by the terms hereof and
thereof.  No Agent nor any of their respective directors, officers,
employees or agents shall be liable for any action taken or omitted to be taken
by it or them under this Credit Facility Agreement, the Note or the Security
Documents or in connection therewith, except for its or their own gross
negligence or willful misconduct.  No party to this Credit Facility
Agreement (other than the respective Agent) may take any action or institute any
proceeding against any current or former director, officer, employee or agent of
such Agent in respect of any claim it may have against
such Agent or in respect of any act or omission of any kind by that current or
former director, officer, employee or agent in relation to this Credit Facility
Agreement, the Note, any Security Document or any other documents in connection
therewith, and any current or former director, officer, employee or agent of the
Agents may rely on this Section 15.1.

     

    15.2           Security Trustee as
Trustee.  Each of the Lenders irrevocably appoints the Security
Trustee as trustee on its behalf with regard to (i) the security, powers,
rights, titles, benefits and interests (both present and future) constituted by
and conferred on the Lenders or any of them or for the benefit thereof under or
pursuant to this Credit Facility Agreement, the Note or any of the Security
Documents (including, without limitation, the benefit of all covenants,
undertakings, representations, warranties and obligations given, made or
undertaken to any Lender in the Agreement, the Note or any Security
Document),  (ii) all moneys, property and other assets paid or
transferred to or vested in any Lender or any agent of any Lender or received or
recovered by any Lender or any agent of any Lender pursuant to, or in connection
with, this Credit Facility Agreement, the Note or the Security Documents whether
from any Security Party or any other person and (iii) 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 any Lender or any agent of any Lender in respect of the same (or
any part thereof).  The Security Trustee hereby accepts such
appointment.

     

    15.3           Distribution of
Payments.  Whenever any payment is received by the
Administrative Agent from the Borrowers or any other Security Party for the
account of the Lenders, or any of them, whether of principal or interest on the
Note, commissions, fees under Section 13 or otherwise, it will thereafter
cause to be distributed on the same day if received before 3 p.m. Hamburg
time, or 

     

    
      
        
        

      

      
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    on the next day if received thereafter, like funds relating to
such payment ratably to the Lenders according to their respective Commitments,
in each case to be applied according to the terms of this Credit Facility
Agreement.  The Administrative Agent shall not be liable for any delay
(or any related consequences ) in crediting an account with an amount required
under the Credit Facility Agreement to be paid by the Administrative Agent if
the Administrative Agent has taken all necessary steps to comply with the
regulations or operating procedures of any recognized clearing or settlement
system used by the Agent for that purpose.

     

    15.4           Holder of Interest in
Note.  The Agents may treat each Lender as the holder of all of
the interest of such Lender in the Note.

     

    15.5           No Duty to Examine,
Etc.  The Agents shall not be under a duty to examine or pass
upon the validity, enforceability, sufficiency, effectiveness or genuineness of
any of this Credit Facility Agreement, the Note, the Security Documents or any
instrument, document or communication furnished pursuant to this Credit Facility
Agreement or in connection therewith or in connection with the Note or any
Security Document, and the Agents shall be entitled to assume that the same are
valid, effective and genuine, have been signed or sent by the proper parties and
are what they purport to be. Nothing contained in this Credit Facility Agreement
shall oblige any Agent to carry out any "know your customer" or other checks in
relation to any person on behalf of any Lender and each Lender confirms to the
Agents that it is solely responsible for such checks and may not rely on any
statement in relation thereto made by any Agent.

    
15.6           Agents as
Lenders.  With respect to that portion of the Facility made
available by it, each Agent shall have the same rights and powers hereunder as
any other Lender and may exercise the same as though it were not an Agent, and
the term “Lender” or “Lenders” shall include each Agent in its capacity as a
Lender.  Each Agent and its affiliates may accept deposits from, lend
money to and generally engage in any kind of business with, the Borrowers and
the other Security Parties, as if it was not an Agent.

     

    15.7           Acts of the
Agents.  Each Agent shall have duties and reasonable
discretion, and shall act as follows:

     

    (a)           Obligations of the
Agents.  The obligations of each Agent under this Credit
Facility Agreement, under the Note and under the Security Documents are only
those expressly set forth herein and therein.

     

    (b)           No Duty to
Investigate.  No Agent shall at any time be under any duty to
investigate whether an Event of Default, or an event which, with the giving of
notice or lapse of time, or both, would constitute an Event of Default, has
occurred or to investigate the performance of this Credit Facility Agreement,
the Note or any Security Document by any Security Party.

     

    (c)           Discretion of the
Agents.  Each Agent shall be entitled to use its discretion
with respect to exercising or refraining from exercising any rights which may be
vested in it by, and with respect to taking or refraining from taking any action
or actions which it may be able to take under or in respect of, this Credit
Facility Agreement, the Note and the Security Documents, unless the
Administrative Agent shall have been instructed by the Majority Lenders to
exercise such rights or to take or refrain from taking such action; provided, however, that no
Agent shall be required to 

     

    
      
        
        

      

      
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    take any action which exposes such Agent to personal liability or
which is contrary to this Credit Facility Agreement or applicable law. Each
Agent may refrain from acting in accordance with the instructions of the
Majority Lenders (or, if appropriate, all of the Lenders) until such Agent has
received such security as it may require for any costs, loss or liability
(together with any associated VAT) which it may incur in complying with said
instructions.

     

    (d)           Instructions of Majority
Lenders.  Each Agent shall in all cases be fully protected in
acting or refraining from acting under this Credit Facility Agreement, under the
Note, or under any Security Document in accordance with the instructions of the
Majority Lenders, and any action taken, or failure to act pursuant to such
instructions, shall be binding on all of the Lenders any instructions given
by the Majority Lenders will be binding on all of the Lenders.

     

    (e)           Power of
Attorney.  Each Agent has the right to delegate by power of
attorney or otherwise to any person or persons all or any of the rights, trusts,
powers, authorities and discretions vested in it by this Agreement or any other
agreement relating hereto on such terms and conditions as such Agent shall think
fit and such Agent shall not be bound to supervise the proceedings or be in any
way responsible for any loss incurred by reason of any misconduct or default on
the part of any such delegate or sub-delegate provided that such Agent shall
have acted reasonably in making such delegation to such delegate and such Agent
shall promptly give notice to each of the Lenders of the appointment of any
delegate or such delegate as aforesaid.

     

    15.8           Certain
Amendments.  Neither this Credit Facility Agreement, the Note
nor any of the Security Documents nor any terms hereof or thereof may be amended
unless such amendment is approved by the Borrowers and the Majority Lenders,
provided that no such amendment shall, without the written consent of each
Lender affected thereby, (i)  reduce the interest rate or extend the time
of a scheduled payment of principal or interest or fees on the Facility, or
reduce the principal amount of the Facility or any fees hereunder,
(ii) increase or decrease the Commitment of any Lender or subject any
Lender to any additional obligation (it being understood that a waiver of any
Event of Default, other than a payment default, or any mandatory repayment of
Facility shall not constitute a change in the terms of any Commitment of any
Lender), (iii) amend, modify or waive any provision of this Section 15.8,
(iv) amend the definition of Majority Lenders or any other definition
referred to in this Section 15.8, (v) consent to the assignment or transfer
by the Borrowers of any of their rights and obligations under this Credit
Facility Agreement, (vi) accept payment for the obligations of the Security
Parties under this Credit Facility Agreement in any currency other than Dollars,
(vii) waive the requirements regarding the delivery of audited financial
statements under Section 9.1(d), (viii) release any Security Party from any
of its obligations under any Security Document except as expressly provided
herein or in such Security Document or (vii) amend any provision relating
to the maintenance of collateral under Section 9.4; provided, further, that
approval by all Lenders shall be required for any amendment or waivers with
respect to Section 5.3 of this Credit Facility Agreement.  All
amendments approved by the Majority Lenders under this Section 15.8 must be
in writing and signed by the Borrowers, each of the Lenders comprising the
Majority Lenders and, if applicable, each Lender affected thereby and any such
amendment shall be binding on all the Lenders; provided, however, that any
amendments or waivers with respect to Section 5.3 of this Credit Facility
Agreement must be in writing and signed by the Borrowers and all of the
Lenders.

     

     

    
      
        
        

      

      
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    15.9           Assumption re Event of
Default.  Except as otherwise provided in Section 15.15,
the Administrative Agent shall be entitled to assume that no Event of Default,
or event which with the giving of notice or lapse of time, or both, would
constitute an Event of Default, has occurred and is continuing, unless the
Administrative Agent has been notified by any Security Party of such fact, or
has been notified by a Lender that such Lender considers that an Event of
Default or such an event (specifying in detail the nature thereof) has occurred
and is continuing.  In the event that the Administrative Agent shall
have been notified, in the manner set forth in the preceding sentence, by any
Security Party or any Lender of any Event of Default or of an event which with
the giving of notice or lapse of time, or both, would constitute an Event of
Default, the Administrative Agent shall notify the Lenders and shall take action
and assert such rights under this Credit Facility Agreement, under the Note and
under Security Documents as the Majority Lenders shall request in
writing.

     

    15.10         Limitations of
Liability.  Neither any Agent nor any of the Lenders shall be
under any liability or responsibility whatsoever:

     

    (a)           to
any Security Party or any other person or entity as a consequence of any failure
or delay in performance by, or any breach by, any other Lenders or any other
person of any of its or their obligations under this Credit Facility Agreement
or under any Security Document;

     

    (b)           to
any Lender or Lenders as a consequence of any failure or delay in performance
by, or any breach by, any Security Party of any of its respective obligations
under this Credit Facility Agreement, under the Note or under the Security
Documents; or

     

    (c)           to
any Lender or Lenders for any statements, representations or warranties
contained in this Credit Facility Agreement, in any Security Document or in any
document or instrument delivered in connection with the transaction hereby
contemplated; or for the validity, effectiveness, enforceability or sufficiency
of this Credit Facility Agreement, the Note, any Security Document or any
document or instrument delivered in connection with the transactions hereby
contemplated.

     

    15.11         Indemnification of the
Agents.  The Lenders agree to indemnify each Agent (to the
extent not reimbursed by the Security Parties or any thereof), pro rata
according to the respective amounts of their Commitments, from and against any
and all liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs, expenses or disbursements of any kind or nature
whatsoever (including legal fees and expenses incurred in investigating claims
and defending itself against such liabilities) which may be imposed on, incurred
by or asserted against, such Agent in any way relating to or arising out of this
Credit Facility Agreement, the Note or any Security Document, any action taken
or omitted by such Agent thereunder or the preparation, administration,
amendment or enforcement of, or waiver of any provision of, this Credit Facility
Agreement, the Note or any Security Document, except that no Lender shall be
liable for any portion of such liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, costs, expenses or disbursements resulting
from such Agent's gross negligence or willful misconduct.

     

    15.12         Consultation with
Counsel.  Each of the Agents may consult with legal counsel
reasonably selected by such Agent and shall not be liable for any action taken,
permitted or omitted by it in good faith in accordance with the advice or
opinion of such counsel.

     

     

     

    
      
        
        

      

      
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    15.13         Resignation.  Any
Agent may resign at any time by giving thirty (30) days' written notice thereof
to the other Agents, the Lenders and the Borrowers.  Upon any such
resignation, the Lenders shall have the right to appoint a successor
Agent.  If no successor Agent shall have been so appointed by the
Lenders and shall have accepted such appointment within thirty (30) days after
the retiring Agent's giving notice of resignation, then the retiring Agent may,
on behalf of the Lenders, appoint a successor Agent which shall be a bank or
trust company of recognized standing.  Any resignation by an Agent
pursuant to this Section 15.13 shall be effective only upon the appointment of a
successor Agent. After any retiring Agent's resignation as Agent hereunder, the
provisions of this Section 15 shall continue in effect for its benefit with
respect to any actions taken or omitted by it while acting as
Agent.  

     

    15.14         Representations of
Lenders.  Each Lender represents and warrants to each other
Lender and each Agent that:

     

    (a)           in
making its decision to enter into this Credit Facility Agreement and to make its
Commitment available hereunder, it has independently taken whatever steps it
considers necessary to evaluate the financial condition and affairs of the
Security Parties, that it has made an independent
credit judgment and that it has not relied upon any statement, representation or
warranty by any other Lender or any Agent; and

     

    (b)           so
long as any portion of its Commitment remains outstanding, it will continue to
make its own independent evaluation of the financial condition and affairs of
the Security Parties.

     

    15.15         Notification of Event of
Default.  The Administrative Agent hereby undertakes to
promptly notify the Lenders, and the Lenders hereby promptly undertake to notify
the Administrative Agent and the other Lenders, of the existence of any Event of
Default, which shall have occurred and be continuing, of which the
Administrative Agent or Lender has actual knowledge which, for purposes of this
Section 15.15, shall mean the actual knowledge of an officer having
responsibility for the transactions contemplated by this Credit Facility
Agreement.

     

    15.16         No Agency or Trusteeship if
not Syndicated.  Unless and until the Loan is syndicated or at
any other time HSH is the only Lender, all references to the terms “Agent” and
“Security Trustee” shall be deemed to be references to HSH as Lender and not as
agent or security trustee.

     

    15.17         Nature of
Duties.  The Agents shall have no duties or responsibilities
except those expressly set forth in this Agreement and the Security
Documents.  Neither the Agents nor any of their respective officers,
directors, agents, employees or affiliates shall be liable for any action taken
or omitted by it or them hereunder or under any of the Security Documents or in
connection herewith or therewith, unless caused by such Person’s gross
negligence or willful misconduct (any such liability limited to the applicable
Agent to whom such Person relates).  The duties of each of the Agents
shall be mechanical and administrative in nature; neither of the Agents shall
have by reason of this Credit Facility Agreement or any of the Security
Documents, any fiduciary relationship in respect of any Lender or the holder or
any Note; and nothing in this Credit Facility Agreement or any of the Security
Documents, expressed or implied, is intended to or shall be construed as to
impose upon either of the Agents any obligations in respect of this Credit
Facility Agreement or any of the Security Documents except as expressly set
forth herein or therein.

     

     

    
      
        
        

      

      
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    15.18         Delegation of
Power.  The Agents shall be entitled at any time and as often
as may be expedient to delegate all or any of the powers and discretions vested
in it by this Credit Facility Agreement and each of the Security Documents in
such manner and upon such terms and to such persons as the Agents in their
absolute discretion may deem advisable.

     

    
      	
              16.

            	
              NOTICES AND
      DEMANDS

            

    

     

    16.1           Notices.  All
notices, requests, demands and other communications to any party hereunder shall
be in writing (including prepaid overnight courier, facsimile transmission or
similar writing) and shall be given to the Borrowers at the address or facsimile
number set forth below and to the Lenders and the Agents at their address and
facsimile numbers set forth in Schedule 1 or at such other address or
facsimile numbers as such party may hereafter specify for the purpose by notice
to each other party hereto.  Each such notice, request or other
communication shall be effective (i) if given by facsimile, within two (2)
hours of the dispatch of notice (provided that if the date of dispatch of notice
is not a Banking Day in the country of the party receiving the notice, or the
time of
dispatch of notice is after the close of business in the country of the party
receiving the notice, it shall be effective at the opening of business on the
next business day, or (ii) if given by mail, prepaid overnight courier or
any other means, when received at the address specified in this Section or when
delivery at such address is refused.

     

    If to the
Borrowers:

     

    c/o Top Tanker Management
Inc.

    1
Vassillissis Sofias Str. & Meg. Alexandrou Str.

    151 24,
Maroussi, Greece

     

    

    
      	
              17.

            	
              MISCELLANEOUS

            

    

     

    17.1           Time of
Essence.  Time is of the essence with respect to this Credit
Facility Agreement but no failure or delay on the part of any Lender or any
Agent to exercise any power or right under this Credit Facility Agreement shall
operate as a waiver thereof, nor shall any single or partial exercise by any
Lender or any Agent of any power or right hereunder preclude any other or
further exercise thereof or the exercise of any other power or
right.  The remedies provided herein are cumulative and are not
exclusive of any remedies provided by law.

     

    17.2           Unenforceable, etc.,
Provisions–Effect.  In case any one or more of the provisions
contained in this Credit Facility Agreement, the Note or in any Security
Document would, if given effect, be invalid, illegal or unenforceable in any
respect under any law applicable in any relevant jurisdiction, said provision
shall not be enforceable against the relevant Security Party, but the validity,
legality and enforceability of the remaining provisions herein or therein
contained shall not in any way be affected or impaired thereby.

     

    17.3           References.  References
herein to Sections, Exhibits and Schedules are to be construed as references to
sections of, exhibits to, and schedules to, this Credit Facility Agreement,
unless the context otherwise requires.

     

     

     

    
      
        
        

      

      
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    17.4           Further
Assurances.  Each of the Borrowers agrees that if this Credit
Facility Agreement or any Security Document shall, in the reasonable opinion of
the Lenders, at any time be deemed by the Lenders for any reason insufficient in
whole or in part to carry out the true intent and spirit hereof or thereof, it
will execute or cause to be executed such other and further assurances and
documents as in the opinion of the Lenders may be required in order to more
effectively accomplish the purposes of this Credit Facility Agreement, the Note
or any Security Document.

     

    17.5           Prior Agreements,
Merger.  Any and all prior understandings and agreements
heretofore entered into between the Security Parties on the one part, and the
Agents or the Lenders, on the other part, whether written or oral, other than
the Fee Letter, are superseded by and merged into this Credit Facility Agreement
and the other agreements (the forms of which are exhibited hereto) to be
executed and delivered in connection herewith to which the Security Parties, the
Agents and/or the Lenders are parties, which alone fully and completely express
the agreements between the Security Parties, the Agents and the Lenders.

     

    17.6           Entire Agreement;
Amendments.  This Credit Facility Agreement constitutes the
entire agreement of the parties hereto, including all parties added hereto
pursuant to an Assignment and Assumption Agreement.   Subject to
Section 15.8, any provision of this Credit Facility Agreement, the Note or any
Security Document may be amended or waived if, but only if, such amendment or
waiver is in writing and is signed by the Borrowers, the Agents and the Majority
Lenders.  This Credit Facility Agreement may be executed in any number
of counterparts, each of which shall be deemed an original, but all such
counterparts together shall constitute one and the same
instrument.  

     

    17.7           Indemnification.  Each
of the Borrowers and, by its execution and delivery of the Consent and Agreement
set forth below, the Guarantor, jointly and severally agree to indemnify each
Lender and each Agent, their respective successors and assigns, and their
respective officers, directors, employees, representatives and agents (each an
“Indemnitee”) from, and hold each of them harmless against, any and all losses,
liabilities, claims, damages, expenses, obligations, penalties, actions,
judgments, suits, costs or disbursements of any kind or nature whatsoever
(including, without limitation, the fees and disbursements of counsel for such
Indemnitee in connection with any investigative, administrative or judicial
proceeding commenced or threatened, whether or not such Indemnitee shall be
designated a party thereto) that may at any time (including, without limitation,
at any time following the payment of the obligations of the Borrowers hereunder)
be imposed on, asserted against or incurred by, any Indemnitee as a result of,
or arising out of or in any way related to or by reason of, (a) any
violation by any Security Party (or any charterer or other operator of any
Vessel) of any applicable Environmental Law, (b) any Environmental Claim
arising out of the management, use, control, ownership or operation of property
or assets by any Security Party (or, after foreclosure, by any Lender or any
Agent or any of their respective successors or assigns), (c) the breach of
any representation, warranty or covenant set forth in Sections 2.1 (p) or
9.1(l), (d) the Facility (including the use of the proceeds of the Facility
and any claim made for any brokerage commission, fee or compensation from any
Person), or (e) the execution, delivery, performance or non-performance of
this Credit Facility Agreement, the Note, any Security Document, or any of the
documents referred to herein or contemplated hereby (whether or not the
Indemnitee is a party thereto).  If and to the extent that the
obligations of the Security Parties under this Section are unenforceable for any
reason, the Borrowers and, by its execution and delivery of the Consent and
Agreement set forth below, the Guarantor, jointly and severally agree to make
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    under applicable law.  The obligations of the Security
Parties under this Section 17.7 shall survive the termination of this
Credit Facility Agreement and the repayment to the Lenders of all amounts owing
thereto under or in connection herewith.

     

    17.8           Headings.  In
this Credit Facility Agreement, section headings are inserted for convenience of
reference only and shall not be taken into account in the interpretation of this
Credit Facility Agreement.

     

    17.9           Waiver of
Immunity.  TO THE EXTENT THAT ANY SECURITY PARTY HAS OR
HEREAFTER MAY ACQUIRE ANY IMMUNITY FROM SUIT, JURISDICTION OF ANY COURT OR ANY
LEGAL PROCESS (WHETHER THROUGH ATTACHMENT PRIOR TO JUDGMENT, ATTACHMENT IN AID
OF EXECUTION, EXECUTION OF A JUDGMENT, OR FROM ANY OTHER LEGAL PROCESS OR
REMEDY) WITH RESPECT TO ITSELF OR ITS PROPERTY, SUCH SECURITY PARTY HEREBY
IRREVOCABLY WAIVES SUCH IMMUNITY
IN RESPECT OF ITS OBLIGATIONS UNDER THIS CREDIT FACILITY AGREEMENT AND THE OTHER
SECURITY DOCUMENTS.

     

    

     

    

    

     

    
      
         

      

      
        54

        
          

        

      

      
         

      

    

    IN
WITNESS whereof, the parties hereto have caused this Credit Facility Agreement
to be duly executed by their duly authorized representatives as of the day and
year first above written.

     

    JEKE SHIPPING COMPANY
LIMITED

    

    By: /s/ Gary Wolfe        

    Name: Gary Wolfe

    Title: 
Attorney-in-Fact

    

    

    NOIR SHIPPING S.A.

    

    
      

      By: /s/ Gary Wolfe        

      Name: Gary Wolfe

      Title: 
Attorney-in-Fact

    

    AMALFI SHIPPING COMPANY
LIMITED

     

    
      

      By:/s/ Gary Wolfe        

      Name: Gary Wolfe

      Title: 
Attorney-in-Fact

    

    HSH NORDBANK AG,

    as
Mandated Lead Arranger, Underwriter,

    Administrative
Agent and Security Trustee

     

     

    
      By: /s/Amanda K. Brown    

      Name:  Amanda K.
Brown

      Title: 
Attorney-in-Fact

    

    
       

      
        The
Lenders:

        
 

        HSH NORDBANK AG

         

        
          

          By: /s/Amanda K. Brown    

          Name:  Amanda K.
Brown

          Title: 
Attorney-in-Fact

      

      
 

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    CONSENT AND
AGREEMENT

     

    The
undersigned, referred to in the foregoing Credit Facility Agreement as the
“Guarantor”, hereby consents and agrees to said Credit Facility Agreement and to
the documents contemplated thereby and to the provisions contained therein
relating to conditions to be fulfilled and obligations to be performed by the
undersigned pursuant to or in connection with said Credit Facility Agreement and
agrees particularly to be bound by the representations, warranties and covenants
relating to the undersigned contained in Sections 2 and 9 of said Credit
Facility Agreement to the same extent as if the undersigned were a party to said
Credit Facility Agreement, and expressly agrees to the grant of a security
interest in favor of the Security Trustee pursuant to Section 9.1(q) of
said Credit Facility Agreement.

     

     

    
 

    
      
        	 	TOP
      TANKERS INC.
	 	
                 

                 

              
	
                 
      

              	
                By:/s/ Gary Wolfe        

              

      

    

    
      	
               
      

            	
              Name: 
      Gary Wolfe

            

    

    
      	
               
      

            	
              Title: 
      Attorney-in-Fact

            

    

    

    

     

    

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Schedule
1

     

                                                                                                             

    
      	
               

              Lenders 
      

            	 
      	
               

              Commitment
    

            
	
               

              HSH
      Nordbank AG

              Gerhart-Hauptmann-Platz
      50

              20095
      Hamburg, Germany

              Attn:
      Shipping, Greek Clients

              Fax:  +
      49 40 3333 34118

               

               

            	 
      	
               

              $95,000,000

            
	 
      	 
      	 
      
	 
      	 
      	 
      
	
               

               

              Agents

               

              HSH
      Nordbank AG

              Gerhart-Hauptmann-Platz
      50

              20095
      Hamburg, Germany

              Attn:
      Shipping, Greek Clients

              Fax:  +
      49 40 3333 34118

               

            	 
      	 
      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Schedule
2

    

    THE
VESSELS

     

    

    
      
        
          
            	
                    Name of Vessel

                  	
                     

                     

                    Owner

                  	
                    Official Number

                  	 	
                    
                    

                    IMO Number

                  	 	
                    Flag

                  	 	
                    
                    

                     

                    DWT

                  	 	
                    Year Built

                  
	
                     

                    VOC
      GALLANT

                  	
                    Jeke
      Shipping Company Limited

                  	 
      	 	 	9257072	 	
                    Liberia

                  	 	 	51,201	 	
                    2002

                  
	
                     

                    SALMAS
      (tbr BERTRAM)

                  	
                    Noir
      Shipping S.A.

                  	 
      	 	 	9087269	 	
                    Marshall
      Islands

                  	 	 	73,506	 	
                    1995

                  
	
                     

                    OCEAN
      SPIRIT (tbr AMALFI)

                  	
                    Amalfi
      Shipping Company Limited

                  	 
      	 	 	9218337	 	
                    Marshall
      Islands

                  	 	 	45,526	 	
                    2000

                  

          

        

      

    

    

    

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Schedule
3

    

    Indebtedness of each
Security Party as of September __,
2007d1007425_ex4-73.htm

    Exhibit
4.73

     

     

    DATED 17
December 2007

     

     

     

    JAPAN
III SHIPPING COMPANY LIMITED

    (as
Borrower)

    

    

    -
and -

    

    ALPHA
BANK A.E.

    (as
Lender)

     

    
      	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	
               

              US$48,000,000
      SECURED

              LOAN
      AGREEMENT

               

            	 
      
	 
      	 
      	 
      

    

    

     

    STEPHENSON
HARWOOD

    One
St. Paul's Churchyard

    London
EC4M 8SH

    Tel:
020 7329 4422

    Fax:
020 7329 7100

    Ref:
28.037

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    CONTENTS

    Page

    
      	
              1

            	
              Definitions
      and Interpretation

            	
              1

            
	
              2

            	
              The
      Loan and its Purpose

            	
              10

            
	
              3

            	
              Conditions
      of Utilisation

            	
              11

            
	
              4

            	
              Advance

            	
              11

            
	
              5

            	
              Repayment

            	
              12

            
	
              6

            	
              Prepayment

            	
              12

            
	
              7

            	
              Interest

            	
              14

            
	
              8

            	
              Indemnities

            	
              16

            
	
              9

            	
              Fees

            	
              20

            
	
              10

            	
              Security
      and Application of Moneys

            	
              23

            
	
              11.

            	
              Representations

            	
              23

            
	
              12

            	
              Undertakings
      and Covenants

            	
              26

            
	
              13

            	
              Events
      of Default

            	
              34

            
	
              14

            	
              Assignment
      and Sub-Participation

            	
              38

            
	
              15

            	
              Set-Off

            	
              38

            
	
              16

            	
              Payments

            	
              39

            
	
              17

            	
              Notices

            	
              40

            
	
              18

            	
              Partial
      Invalidity

            	
              41

            
	
              19

            	
              Remedies
      and Waivers

            	
              42

            
	
              20

            	
              Miscellaneous

            	
              42

            
	
              21

            	
              Law
      and jurisdiction.

            	
              43

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      	
              SCHEDULE
      1: Conditions Precedent and Subsequent

            	
              45

            
	
              Part
      I: Conditions precedent

            	
              45

            
	
              Part
      II Conditions subsequent

            	
              50

            
	
               

              SCHEDULE
      3: Form of Drawdown Notice

            	
              51

            
	
               

              JAPAN
      III SHIPPING COMPANY LIMITED SCHEDULE 4: Form of Compliance
      Certificate

            	
              51

            
	 
      	 
      
	
              SCHEDULE
      4: Form of Compliance Certificate

            	
              52

            

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    LOAN
AGREEMENT

     

    Dated:
17 December 2007

     

    BETWEEN:

     

    
      	
              (1)

            	
              JAPAN III SHIPPING COMPANY
      LIMITED, a company incorporated under the laws of the Republic of
      Liberia whose registered office is at 80 Broad Street Monrovia, Liberia
      (the "Borrower");
      and

               

            

    

    
      	
              (2)

            	
              ALPHA BANK A.E., acting
      through its office at 89 Akti Miaouli, GR 185 38 Piraeus, Greece (the
      "Lender").

               

            

    

    WHEREAS:

     

    
      	
              (A)

            	
              The
      Borrower has agreed to purchase the Vessel from the Seller on the terms of
      the MOA and intends to register the Vessel under the flag of the Republic
      of Liberia.

               

            

    

    
      	
              (B)

            	
              The
      Lender has agreed to advance to the Borrower an amount not exceeding forty
      eight million Dollars ($48,000,000) representing sixty five per centum
      (65%) of the Purchase Price to assist the Borrower to finance part of the
      Purchase Price.

               

            

    

    IT IS AGREED as
follows:

     

    1            
Definitions and Interpretation

     

    
      	
               
      

            	
              1.1

            	
              In
      this Agreement:

               

            

    

    "Accounting Information" means
the financial statements and information to be provided by the Borrower and the
Guarantor to the Lender in accordance with Clause 12.1.1.

     

    "Administration" has the
meaning given to it in paragraph 1.1.3 of the ISM Code.

     

    "Annex VI" means Annex VI
(Regulations for the Prevention of Air Pollution from Ships) to the
International Convention for the Prevention of Pollution from Ships 1973 (as
modified in 1978 and 1997).

     

    "Assignment" means the deed or
deeds of assignment referred to in Clause 10.1.2 (Security
Documents).

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    "Availability Termination Date"
means 31 December 2007 or such later date as the Lender may in its
discretion agree.

     

    "Business Day" means a day
(other than a Saturday or Sunday) on which banks are open for general business
in New York, London and Piraeus.

     

    "Charter" means any time
charterparty made between the Borrower (as owner) and a Charterer (as charterer)
in respect of the Vessel with a duration exceeding twelve (1 2)
months.

     

    "Charterer" means the company
that has entered into a Charter with the Borrower.

     

    "Break Costs" means all sums
payable by the Borrower from time to time under Clause 8.3 (Break Costs).

     

    "Compliance Certificate" means
a certificate substantially in the form set out in Schedule 4 (Form of Compliance
Certificate).

     

    "Consolidated Indebtedness"
means, in respect of the relevant financial period, the aggregate amount
of Financial Indebtedness (including current maturities) due by the members of
the Group (other than any such Financial Indebtedness owing by any member of the
Group to another member of the Group) as shown in the relevant Accounting
Information.

     

    "Currency of Account" means,
in relation to any payment to be made
to the Lender under a Finance Document, the currency in which that payment is
required to be made by the terms of that Finance Document.

     

    "Default" means an Event of
Default or any event or circumstance specified in Clause 13.1 (Events of Default) which
would (with the expiry of a grace period, the giving of notice, the making of
any determination under the Finance Documents or any combination of any of the
foregoing) be an Event of Default.

     

    "DOC" means, in relation to the
ISM Company, a valid Document of Compliance for the ISM Company by the
Administration under paragraph 13.2 of the ISM Code.

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

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

     

    "Drawdown Date" means the date
on which the Loan is advanced under Clause 4 (Advance).

     

    "Drawdown Notice" means a
notice substantially in the form set out in Schedule 3 (Form of Drawdown
Notice).

     

    "Earnings" means all hires,
freights, pool income and other sums payable to or for the account of the
Borrower in respect of the Vessel including (without limitation) all
remuneration for salvage and towage services, demurrage and detention moneys,
contributions in general average, compensation in respect of any requisition for
hire, and damages and other payments (whether awarded by any court or arbitral
tribunal or by agreement or otherwise) for breach, termination or variation of
any contract for the operation, employment or use of the Vessel.

     

    "Earnings Account" means a
bank account to be opened in the name of the Borrower with the Lender and
designated "Japan III Shipping Company Limited -Earnings Account".

     

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

     

    "Event of Default" means any
of the events or circumstances set out in Clause 13.1 (Events of
Default).

     

    "Facility Period" means the
period beginning on the date of this Agreement and ending on the date when the
whole of the Indebtedness has been paid in full and the Security Parties have
ceased to be under any further actual or contingent liability to the Lender
under or in connection with the Finance Documents.

     

    "Fee Letter" means any letter
or letters dated on or about the date of this Agreement between the Lender and
the Borrower setting out any of the fees referred to in Clause 9 (Fees).

     

    "Final Maturity Date" means 18
March 2016.

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    "Finance Documents" means this
Agreement, the Security Documents, any Fee Letter and any other document
designated as such by the Lender and the Borrower and "Finance Document" means any
one of them.

     

    "Financial Indebtedness" means
any obligation for the payment or repayment of money, whether present or future,
actual or contingent, in respect of:

     

    
      	
               
      

            	
              (a)

            	
              moneys
      borrowed;

               

            

    

    
      	
               
      

            	
              (b)

            	
              any
      acceptance credit;

               

            

    

    
      	
               
      

            	
              (c)

            	
              any
      bond, note, debenture, loan stock or similar instrument;

               

            

    

    
      	
               
      

            	
              (d)

            	
              any
      finance or capital lease;

               

            

    

    
      	
               
      

            	
              (e)

            	
              receivables
      sold or discounted (other than on a non-recourse basis);

               

            

    

    
      	
               
      

            	
              (f)

            	
              deferred
      payments for assets or services;

               

            

    

    
      	
               
      

            	
              (g)

            	
              any
      derivative transaction protecting against or benefiting from fluctuations
      in any rate or price (and, when calculating the value of any derivative
      transaction, only the marked to market value shall be taken into
      account);

               

            

    

    
      	
               
      

            	
              (h)

            	
              any
      amount raised under any other transaction (including any forward sale or
      purchase agreement) having the commercial effect of a
      borrowing;

               

            

    

    
      	
               
      

            	
              (i)

            	
              any
      counter-indemnity obligation in respect of a guarantee, indemnity, bond,
      standby or documentary letter of credit or any other instrument issued by
      a bank or financial institution; and

               

            

    

    
      	
               
      

            	
              (j)

            	
              the
      amount of any liability in respect of any guarantee or indemnity for any
      of the items referred to in paragraphs (a) to (i) above.

               

            

    

    "GAAP" means generally accepted
accounting principles in the United States of America.

     

    "Guarantee" means the
guarantee and indemnity referred to in Clause 10.13 (Security
Documents).

     

    
      	
               
      

            	
              "Guarantor" means Top
      Tankers Inc., a company incorporated under the laws of the Marshall
      Islands, having its registered office at the Trust Company Complex,
      

            

    

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

     

    Ajeltake
Road, Ajeltake Islands, Majuro, Marshall Islands MH96960 and/or (where the
context permits) any other person who shall at any time during the Facility
Period give to the Lender a guarantee and/or indemnity for the repayment of all
or part of the Indebtedness.

    "Group" means the Guarantor and
its Subsidiaries (whether direct or indirect and including, but not limited to,
the Borrower) from time to time during the Facility Period and "member of the Group" shall be
construed accordingly.

     

    "IAPPC" means a valid
international air pollution prevention certificate for the Vessel issued under
Annex VI.

     

    "Indebtedness" means the
aggregate from time to time of: the amount of the Loan outstanding; all accrued
and unpaid interest on the Loan; and all other sums of any nature (together with
all accrued and unpaid interest on any of those sums) payable to the Lender
under all or any of the Finance Documents.

     

    "Insurances" means all
policies and contracts of insurance (including all entries in protection and
indemnity or war risks associations) which are from time to time taken out or
entered into in respect of or in connection with the Vessel or her increased
value or the Earnings and (where the context permits) all benefits under such
contracts and policies, including all claims of any nature and returns of
premium.

     

    "Interest Payment Date" means
each date for the payment of interest in accordance with Clause 7.7 (Accrual and payment of
interest).

     

    "Interest Period" means each
period for the determination and payment of interest selected by the Borrower or
agreed or selected by the Lender pursuant to Clause 7 (Interest).

     

    "ISM Code" means the
International Management Code for the Safe Operation of Ships and for Pollution
Prevention.

     

    "ISM Company" means, at any
given time, the company responsible for the Vessel's compliance with the ISM
Code under paragraph 1.1.2 of the ISM Code.

     

    "ISPS" Code" means the
International Ship and Port Facility Security Code.

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    "ISPS Company" means, at any
given time, the company responsible for the Vessel's compliance with the ISPS
Code.

     

    "ISSC" means a valid
international ship security certificate for the Vessel issued under the ISPS
Code.

     

    "LIBOR" means:

     

    
      	
               
      

            	
              (a)

            	
              the
      applicable Screen Rate; or

               

            

    

    
      	
               
      

            	
              (b)

            	
              (if
      no Screen Rate is available for any Interest Period) the arithmetic mean
      of the rates (rounded upwards to the nearest whole multiple of
      one-sixteenth of one per centum) quoted to the Lender in the London
      interbank market,

               

            

    

    at 11.00
a.m. two (2) Business Days before the first day of the relevant Interest Period
for the offering of deposits in Dollars in an amount comparable to the Loan (or
any relevant part of the Loan) and for a period comparable to the relevant
Interest Period.

     

    "Loan" means the aggregate
amount advanced or to be advanced by the Lender to the Borrower under Clause 4
(Advance) or, where the
context permits, the amount advanced and for the time being
outstanding.

     

    "Management Agreement" means
the agreement(s) for the commercial and/or technical management of the Vessel
between the Borrower and the Managers.

     

    "Managers" means Top Tanker
Management Inc., a company organised and existing under the laws of the Republic
of Marshall Islands, having its registered office at Trust Company Complex,
Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands with an office in
Maroussi (1 Vas. Sofias and Meg. Alexandrou Street) Attiki, Greece or such other
commercial and/or technical managers of the Vessel nominated by the Borrower as
the Lender may approve.

     

    "Margin" means one point thirty
per cent (1.30%) per annum.

     

    "Market Value" means the market value
of the Vessel to be conclusively determined on the basis of a valuation provided
by an international, reputable, independent and first class firm of shipbrokers
appointed by the Lender at the expense of the Borrower (in respect of one such
valuation per calendar year that is obtained to determine the market value of
the Vessel, unless there is an Event of Default, 

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

     

    which is continuing in which case
all costs shall be borne by the Borrower) and addressed to the Lender on the
basis of a charter-free sale for prompt delivery for cash at arm's length on
normal commercial terms as between a willing seller and a willing
buyer.

     

    "Maximum Loan Amount" means an amount
not exceeding forty eight million Dollars ($48,000,000).

     

    "Minimum Equity" means, in
respect of the relevant financial period, "total assets", as shown in the
relevant Accounting Information, less the Consolidated
Indebtedness.

     

    "Minimum Liquidity" means, in
respect of the relevant financial period, "cash" and "cash equivalents", which
are free from any Encumbrances, as shown in the relevant Accounting
Information.

     

    "Minimum Adjusted Net Worth"
means, in respect of the relevant financial period, the Group's "total
assets" as shown in the relevant Accounting Information adjusted to "fair market
value" (on a consolidated basis) of the Group, as shown in the relevant
Accounting Information, excluding "current and long term debt obligations" as
shown in the relevant Accounting Information.

     

    "MOA" means the memorandum of agreement
dated 7 August 2007 on the terms and subject to the conditions of which the
Seller will sell the Vessel to the Borrower for the Purchase Price.

     

    "Mortgage" means the first
preferred mortgage referred to in Clause 10.1.1 (Security
Documents).

     

    "Original Financial Statements"
means the audited financial statements of the Borrower and the Guarantor
for the financial year ended 31 December
2007.

     

    "Purchase Price" in respect of
the Vessel means seventy four million Dollars ($74,000,000).

     

    "Relevant Documents" means the
Finance Documents, the MOA, the Charter, the Management Agreement, and the
Managers' confirmation specified in Part I of Schedule 1 (Conditions
precedent).

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    "Repayment Date" means the
date for payment of any Repayment Instalment in accordance with Clause 5.1 (Repayment of
Loan).

     

    "Repayment Instalment" means
any instalment of the Loan to be repaid by the Borrower under Clause 5.1 (Repayment of
Loan).

     

    "Requisition Compensation"
means all compensation or other money which may from time to time be
payable to the Borrower as a result of the Vessel being requisitioned for title
or in any other way compulsorily acquired (other than by way of requisition for
hire).

     

    "Screen Rate" means in
relation to LIBOR, the British Bankers' Association Interest Settlement Rate for
the relevant currency (rounded upwards to the nearest whole multiple of
one-sixteenth of one per centum) and period displayed on the appropriate page of
the Reuters screen. If the agreed page is replaced or the service ceases to be
available, the Lender may specify another page or service displaying the
appropriate rate after consultation with the Borrower.

     

    "Security Documents" means the
Mortgage, the Assignment, the Guarantee, or (where the context permits) any one
or more of them and any other agreement or document which may at any time be
executed by any person as security for the payment of all or any part of the
Indebtedness and "Security
Document" means any one of them.

     

    "Security Parties" means the
Borrower, the Guarantor, and any other person who may at any time during the
Facility Period be liable for, or provide security for, all or any part of the
Indebtedness, and "Security
Party" means any one of them.

     

    "Seller" means Ratu Shipping
Co., of the Republic of Panama.

     

    "SMC" means a valid safety
management certificate issued for the Vessel by or on behalf of the
Administration under paragraph 13.7 of the ISM Code.

     

    "SMS" means a safety management
system for the Vessel developed and implemented in accordance with the ISM
Code.

     

    "Subsidiaries" 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) 

     

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

     

    of such
company or entity or the power to direct its policies and management, whether by
contract or otherwise and "Subsidiary" means any one of
them.

     

    "Tax" means any tax, levy,
impost, duty or other charge or withholding of a similar nature (including any
penalty or interest payable in connection with any failure to pay or any delay
in paying any of the same).

     

    "Total Loss"
means:

     

    
      	
               
      

            	
              (a)

            	
              an
      actual, constructive, arranged, agreed or compromised total loss of the
      Vessel; or

               

            

    

    
      	
               
      

            	
              (b)

            	
              the
      requisition for title or compulsory acquisition of the Vessel by any
      government or other competent authority (other than by way of requisition
      for hire); or

               

            

    

    
      	
               
      

            	
              (c)

            	
              the
      capture, seizure, arrest, detention or confiscation of the Vessel by any
      government or by persons acting or purporting to act on behalf of any
      government, unless the Vessel is released and returned to the possession
      of the Borrower within forty five (45) days after the capture, seizure,
      arrest, detention or confiscation in question.

               

            

    

    "Vessel" means the 2000-built
panamax bulk carrier vessel "SEATTLE TRADER" of approximately 75,681 dwt
currently registered under the flag of the Republic of Panama in the ownership
of the Seller and intended to be sold by the Seller to the Borrower on the terms
of the MOA, and registered under the flag of the Republic of Liberia in the
ownership of the Borrower with the name ''CYCLADES", and everything now or in
the future belonging to her on board and ashore.

     

    
      	
               
      

            	
              1.2

            	
              In
      this Agreement:

               

            

    

    
      	
               
      

            	
              1.2.1

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

               

            

    

    
      	
               
      

            	
              1.2.2

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

               

            

    

    
      	
               
      

            	
              1.2.3

            	
              references
      to Recitals, Clauses and Schedules are references to recitals, clauses and
      schedules to or of this Agreement;

               

            

    

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              1.2.4

            	
              references
      to this Agreement include the Recitals and the Schedules;

               

            

    

    
      	
               
      

            	
              1.2.5

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

               

            

    

    
      	
               
      

            	
              1.2.6

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

               

            

    

    
      	
               
      

            	
              1.2.7

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

               

            

    

    
      	
               
      

            	
              1.2.8

            	
              references
      to the Lender include its successors, transferees and assignees;
      and

               

            

    

    
      	
               
      

            	
              1.2.9

            	
              a
      time of day (unless otherwise specified) is a reference to London
      time.

               

            

    

    
      	
               
      

            	
              1.3

            	
              Offer
letter

               

            

    

    This
Agreement supersedes the terms and conditions contained in any correspondence
relating to the subject matter of this Agreement exchanged between the Lender
and the Borrower or their representatives prior to the date of this
Agreement.

     

    2           The
Loan and its Purpose

     

    
      	
               
      

            	
              2.1

            	
              Amount Subject to the
      terms of this Agreement, the Lender agrees to make available to the
      Borrower a term loan in an aggregate amount not exceeding the Maximum Loan
      Amount.

               

            

    

    
      	
               
      

            	
              2.7

            	
              Purpose The Borrower
      shall apply the Loan for the purposes referred to in Recital
      (B).

               

            

    

    
      	
               
      

            	
              2.3

            	
              Monitoring The Lender
      shall not be bound to monitor or verify the application of any amount
      borrowed under this Agreement.

               

            

    

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    3           Conditions
of Utilisation

     

    
      	
               
      

            	
              3.1

            	
              Conditions precedent The
      Borrower is not entitled to have the Loan advanced unless the Lender has
      received all of the documents and other evidence listed in Part I of
      Schedule 1 (Conditions
      precedent).

               

            

    

    
      	
               
      

            	
              3.2

            	
              Further conditions precedent
      The Lender will only be obliged to advance the Loan if on the date
      of the Drawdown Notice and on the proposed Drawdown Date:

               

            

    

    
      	
               
      

            	
              3.2.1

            	
              no
      Default is continuing or would result from the advance of the Loan:
      and;

               

            

    

    
      	
               
      

            	
              3.2.2

            	
              the
      representations made by the Borrower under Clause I1 (Representations) are
      true in all material respects.

               

            

    

    
      	
               
      

            	
              3.3

            	
              Conditions subsequent
      The Borrower undertakes to deliver or to cause to be delivered to
      the Lender on, or as soon as practicable after, the Drawdown Date the
      additional documents and other evidence listed in Part II of Schedule I
      (Conditions
      subsequent).

               

            

    

    
      	
               
      

            	
              3.4

            	
              No Waiver If the Lender
      in its sole discretion agrees to advance all or any part of the Loan to
      the Borrower before all of the documents and evidence required by Clause
      3.1 (Conditions
      precedent) have been delivered to or to the order of the Lender,
      the Borrower undertakes to deliver all outstanding documents and evidence
      to or to the order of the Lender no later than thirty (30) days after the
      Drawdown Date or such other date specified by the Lender.

               

            

    

    The
advance of all or any part of the Loan under this Clause 3.4 shall not be taken
as a waiver of the Lender's right to require production of all the documents and
evidence required by Clause 3.1 (Conditions
precedent).

     

    
      	
               
      

            	
              3.5

            	
              Form and content All
      documents and evidence delivered to the Lender under this Clause 3
      shall:

               

            

    

    
      	
               
      

            	
              3.5.1

            	
              be
      in form and substance acceptable to the Lender; and

               

            

    

    
      	
               
      

            	
              3.5.2

            	
              if
      required by the Lender, be certified, notarised, legalised or attested in
      a manner acceptable to the Lender.

               

            

    

     

    
      4.    Advance

       

    

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    The
Borrower may request the Loan to be advanced in one amount on any Business Day
prior to the Availability Termination Date by delivering to the Lender a duly
completed Drawdown Notice not more than ten (10) and not fewer than two (2)
Business Days before the proposed Drawdown Date.

     

    5         
   Repayment

     

    
      	
               
      

            	
              5.1

            	
              Repayment of Loan The
      Borrower agrees to repay the Loan to the Lender by thirty two (32)
      consecutive quarterly instalments, the first four such instalments
      (1st-4th) each in the sum of two million seven hundred and fifty thousand
      Dollars ($2,750,000), the following four such instalments (5th-8th) each
      in the sum of two million two hundred and fifty thousand Dollars
      ($2,250,000), the following four such instalments (9th-12th) each in the
      sum of one million two hundred and fifty thousand Dollars ($1,250,000) and
      the following nineteen such instalments (13th-31st) each in the amount of
      seven hundred and fifty thousand Dollars ($750,000) and the thirty second
      (32nd) and final instalment in the amount of eight million seven hundred
      and fifty thousand Dollars ($8,750,000) (consisting of an instalment of
      seven hundred and fifty thousand Dollars ($750,000) and a balloon payment
      of eight million Dollars ($8,000,000) (the "Balloon Payment") the
      first instalment falling due on the date which is three calendar months
      after the Drawdown Date and subsequent instalments falling due at
      consecutive intervals of three calendar months thereafter with the last
      instalment falling due on the Final Maturity Date.

               

            

    

    
      	
               
      

            	
              5.2

            	
              Reduction of Repayment
      Instalments If the aggregate amount advanced to the Borrower is
      less than the Maximum Loan Amount, the amount of each Repayment Instalment
      shall be reduced pro rata to the amount actually advanced.

               

            

    

    
      	
               
      

            	
              5.3

            	
              Reborrowing The Borrower
      may not reborrow any part of the Loan which is repaid or
      prepaid.

               

            

    

    6           Prepayment

     

    
      	
               
      

            	
              6.1

            	
              Illegality If it becomes
      unlawful in any jurisdiction for the Lender to perform any of its
      obligations as contemplated by this Agreement or to fund or maintain the
      Loan:

               

            

    

    
      	
               
      

            	
              6.1.1

            	
              the
      Lender shall promptly notify the Borrower of that event; and

               

            

    

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              6.1.2

            	
              the
      Borrower shall repay the Loan (to the extent already advanced) on the last
      day of the current Interest Period or, if earlier, the date. specified by
      the Lender in the notice delivered to the Borrower (being no earlier than
      the last day of any applicable grace period permitted by
law).

               

            

    

    
      	
               
      

            	
              6.2

            	
              Voluntary prepayment of Loan
      The Borrower may prepay the. whole or any part of the Loan (but, if
      in part, being an amount that reduces the Loan by a minimum amount of five
      hundred thousand Dollars ($500,000) or integral multiples thereof) subject
      as follows:

               

            

    

    
      	
               
      

            	
              6.2.1

            	
              it
      gives the Lender not less than fifteen (15) Business Days' (or such
      shorter period as the Lender may agree) prior notice;

               

            

    

    
      	
               
      

            	
              6.2.2

            	
              no
      prepayment may be made until after the Availability Termination Date;
      and

               

            

    

    
      	
               
      

            	
              6.2.3

            	
              any
      prepayment under this Clause 6.2 shall satisfy the obligations under
      Clause 5.1 (Repayment of
      Loan) as follows:

               

            

    

    
      	
               
      

            	
              (a)

            	
              if
      prepayment is made within two years after the Drawdown Date, fifty per
      cent (50%) of such prepayment shall be applied in reducing pro rata any
      unpaid part of the first eight (1st-8th) Repayment Instalments and the
      other fifty per cent (50%) of such prepayment shall he applied in reducing
      pro rata the following twenty four (9th-32nd) Repayment
      Instalments;

               

            

    

    
      	
               
      

            	
              (b)

            	
              if
      prepayment is made following the repayment of the eighth (8th) Repayment
      Instalment, such prepayment shall be applied in reducing pro rata the
      outstanding Repayment Instalments including the Balloon
      Payment.

               

            

    

    
      	
               
      

            	
              6.3

            	
              Mandatory prepayment on sale
      or Total Loss
      If the Vessel is sold by the Borrower or becomes a Total Loss, the
      Borrower shall, simultaneously with any such sale or within one hundred
      and fifty (150) days after any such Total Loss, prepay the whole of the
      Loan.

               

            

    

    
      	
               
      

            	
              6.4

            	
              Restrictions Any notice
      of prepayment given under this Clause 6 shall be irrevocable and, unless a
      contrary indication appears in this Agreement, shall
  

            

    

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

     

    specify the date or dates upon which the relevant
prepayment is to be made and the amount of that prepayment.

     

    Any
prepayment under this Agreement shall be made together with accrued interest on
the amount prepaid and, subject to any Break Costs, without premium or
penalty.

     

    7           Interest

     

    
      	
               
      

            	
              7.1

            	
              Interest Periods The
      period during which the Loan shall be outstanding under this Agreement
      shall be divided into consecutive Interest Periods of one, three or six
      months' duration or longer duration subject to the Lender's consent and
      market availability, as selected by the Borrower by written notice to the
      Lender not later than 11.00 a.m. on the third Business Day before the
      beginning of the Interest Period in question, or such other duration as
      may be agreed by the Lender.

               

            

    

    
      	
               
      

            	
              7.2

            	
              Beginning and end of Interest
      Periods Each Interest Period shall start on the Drawdown Date or
      (if the Loan is already made) on the last day of the preceding Interest
      Period and end on the date which numerically corresponds to the Drawdown
      Date or the last day of the preceding Interest Period in the relevant
      calendar month except that, if there is no numerically corresponding date
      in that calendar month, the Interest Period shall end on the last Business
      Day in that month.

               

            

    

    
      	
               
      

            	
              7.3

            	
              Interest Periods to meet
      Repayment Dates If an Interest Period would otherwise expire after
      the next Repayment Date, there shall be a separate Interest Period for a
      part of the Loan equal to the relevant Repayment Instalment which shall
      expire on the next Repayment Date and the interest Period determined shall
      apply only to the balance of the Loan.

               

            

    

    
      	
               
      

            	
              7.4

            	
              Non-Business Days If an Interest Period would
      otherwise end on a day which is not a Business Day, that Interest Period
      will instead end on the next Business Day in that calendar month (if there
      is one) or the preceding Business Day (if there is not).

               

            

    

    
      	
               
      

            	
              7.5

            	
              Interest rate During
      each Interest Period interest shall accrue on the Loan at the rate
      determined by the Lender to be the aggregate of (a) the Margin, and (b)
      LIBOR.

               

            

    

    
      	
               
      

            	
              7.6

            	
              Failure to select Interest Period If the
      Borrower at any time fails to select or agree an Interest Period in
      accordance with Clause 7.1 (Interest Periods), the
      interest rate 

            

    

    

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

     

    applicable shall be the rate determined by the
Lender in accordance with Clause 7.5 (Interest rate) for an
Interest Period of such duration (not exceeding three months) as the Lender may
select.

     

    
      	
               
      

            	
              7.7

            	
              Accrual and payment of interest
      Interest shall accrue from day to day, shall be calculated on the
      basis of a 360 day year and the actual number of days elapsed (or, in any
      circumstance where market practice differs, in accordance with the
      prevailing market practice) and shall be paid by the Borrower to the
      Lender on the last day of each Interest Period and, if the Interest Period
      is longer than three months, on the dates falling at three monthly
      intervals after the first day of that Interest Period.

               

            

    

    
      	
               
      

            	
              7.8

            	
              Default interest If the
      Borrower fails to pay any amount payable by it under a Finance Document on
      its due date, interest shall accrue on the overdue amount from the due
      date up to the date of actual payment (both before and after judgment) at
      a rate which is two per cent (2%) higher than the rate which would have
      been payable if the overdue amount had, during the period of non-payment,
      constituted the Loan in the currency of the overdue amount for successive
      Interest Periods, each selected by the Lender (acting reasonably). Any
      interest accruing under this Clause 7.8 shall be immediately payable by
      the Borrower on demand by the Lender. If unpaid, any such interest will be
      compounded with the overdue amount at the end of each Interest Period
      applicable to that overdue amount but will remain immediately due and
      payable.

               

            

    

    
      	
               
      

            	
              7.9

            	
              Changes in market circumstances
      If at any time the Lender determines (which determination shall be
      final and conclusive and binding on the Borrower) that, by reason of
      changes affecting the London interbank market, adequate and fair means do
      not exist for determining the rate of interest on the Loan for any
      Interest Period:

               

            

    

    
      	
               
      

            	
              7.9.1

            	
              the
      Lender shall give notice to the Borrower of the occurrence of such event;
      and

               

            

    

    
      	
               
      

            	
              7.9.2

            	
              the
      rate of interest on the Loan for that Interest Period shall be the rate
      per annum which is the sum of:

               

            

    

    
      	
               
      

            	
              (a)

            	
              the
      Margin; and

               

            

    

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (b)

            	
              the
      rate which expresses as a percentage rate per annum the cost to the Lender
      of funding the Loan from whatever source it may reasonably
      select,

               

            

    

    PROVIDED
THAT if the resulting rate of interest is not acceptable to the
Borrower:

     

    
      	
               
      

            	
              7.9.3

            	
              the
      Lender will negotiate with the Borrower in good faith with a view to
      modifying this Agreement to provide a substitute basis for determining the
      rate of interest which is financially a substantial equivalent to the
      basis provided for in this Agreement;

               

            

    

    
      	
               
      

            	
              7.9.4

            	
              any
      substitute basis agreed pursuant to Clause 7.9.3 shall be binding on the
      parties to this Agreement; and

               

            

    

    
      	
               
      

            	
              7.9.5

            	
              if,
      within thirty (30) days of the giving of the notice referred to in Clause
      7.9.1, the Borrower and the Lender fail to agree in writing on a
      substitute basis for determining the rate of interest, the Borrower will
      immediately prepay the Loan, together with any Break Costs.

               

            

    

    
      	
               
      

            	
              7.10

            	
              Determinations conclusive
      The Lender shall promptly notify the Borrower of the determination
      of a rate of interest under this Clause 7 and each such determination
      shall (save in the case of manifest error) be final and
      conclusive.

               

            

    

    8           Indemnities

     

    
      	
               
      

            	
              8.1

            	
              Transaction expenses The
      Borrower will, within fourteen (14) days of the Lender's written demand,
      pay the Lender the amount of all costs and expenses (including legal fees
      and Value Added Tax or any similar or replacement tax if applicable)
      incurred by the Lender in connection with:

               

            

    

    
      	
               
      

            	
              8.1.1

            	
              the
      negotiation, preparation, printing, execution and registration of the
      Finance
      Documents (whether or not any Finance Document is actually executed or
      registered and whether or not all or any part of the Loan is
      advanced);

               

            

    

    
      	
               
      

            	
              8.1.2

            	
              any
      amendment, addendum or supplement to any Finance Document (whether or not
      completed); and:

               

            

    

    
      
         

      

      
        16

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              8.1.3

            	
              any
      other document which may at any time be required by the Lender to give
      effect to any Finance Document or which the Lender is entitled to call for
      or obtain under any Finance Document.

               

            

    

    
      	
               
      

            	
              8.2

            	
              Funding costs The
      Borrower shall indemnify the Lender on the Lender's written demand against
      all losses and costs incurred or sustained by the Lender if, for any
      reason, the Loan is not advanced to the Borrower after the relevant
      Drawdown Notice has been given to the Lender, or is advanced on a date
      other than that requested in the Drawdown Notice (unless, in either case,
      as a result of any default by the Lender).

               

            

    

    
      	
               
      

            	
              8.3

            	
              Break Costs The Borrower
      shall indemnify the Lender on the Lender's written demand against all
      costs, losses, premiums or penalties incurred by the Lender as a result of
      its receiving any prepayment of all or any part of the Loan (whether
      pursuant to Clause 6 (Prepayment) or
      otherwise) on a day other than the last day of an Interest Period for the
      Loan or relevant part of the Loan, or any other payment under or in
      relation to the Finance Documents on a day other than the due date for
      payment of the sum in question, including (without limitation) any losses
      or costs incurred in liquidating or re-employing deposits from third
      parties acquired to effect or maintain all or any part of the Loan, and
      any liabilities, expenses or losses incurred by the Lender in terminating
      or reversing, or otherwise in connection with, any interest rate andlor
      currency swap, transaction or arrangement entered into by the Lender to
      hedge any exposure arising under this Agreement, or in terminating or
      reversing, or otherwise in connection with, any open position arising
      under this Agreement.

               

            

    

    
      	
               
      

            	
              8.4

            	
              Currency indemnity In
      the event of the Lender receiving or recovering any amount payable under a
      Finance Document in a currency other than the Currency of Account, and if
      the amount received
      or recovered is insufficient when converted into the Currency of
      Account at the date of receipt to satisfy in full the amount due, the
      Borrower shall, on the Lender's written demand, pay to the Lender such
      further amount in the Currency of Accountt as is sufficient to satisfy in
      full the amount due and that further amount shall be due to the Lender as
      a separate debt under this Agreement.

               

            

    

    
      	
               
      

            	
              8.5

            	
              Increased costs (subject to Clause 8.6 (Exceptions to increased costs))
      If, by reason of the introduction of any law, or any change in any
      law, or any change in the interpretation or administration of any law, or
      compliance with any request or 

            

    

    
      
         

      

      
        17

        
          

        

      

      
         

      

    

     

    requirement from any central bank or any fiscal,
monetary or other authority occuring after the date of this Agreement:

     

    
      	
               
      

            	
              8.5.1

            	
              the
      Lender (or the holding company of the Lender) shall be subject to any Tax
      with respect to payment of all or any part of the Indebtedness (other than
      Tax on overall net income); or

               

            

    

    
      	
               
      

            	
              8.5.2

            	
              the
      basis of Taxation of payments to the Lender in respect of all or any part
      of the Indebtedness shall be changed; or

               

            

    

    
      	
               
      

            	
              8.5.3

            	
              any
      reserve requirements shall be imposed, modified or deemed applicable
      against assets held by or deposits in or for the account of or loans by
      any branch of the Lender; or

               

            

    

    
      	
               
      

            	
              8.5.4

            	
              the
      manner in which the Lender allocates capital resources to its obligations
      under this Agreement or any ratio (whether cash, capital adequacy,
      liquidity or otherwise) which the Lender is required or requested to
      maintain shall be affected; or

               

            

    

    
      	
               
      

            	
              8.5.5

            	
              there
      is imposed on the Lender (or on the holding company of the Lender) any
      other condition in relation to the Indebtedness or the Finance
      Documents;

               

            

    

    and the
result of any of the above shall be to increase the cost to the Lender (or to
the holding company of the Lender) of the Lender making or maintaining the Loan,
or to cause the Lender to suffer (in its opinion) a material reduction in the
rate of return on its overall capital below the level which it reasonably
anticipated at the date of this Agreement and which it would have been able to
achieve but for its entering into this Agreement and/or performing its
obligations under this Agreement, then, subject to Clause 8.6 (Exceptions to increased costs),
the Lender shall notify the
Borrower and the Borrower shall from time to time pay to the Lender on demand
the amount which shall compensate the Lender (or the holding company of the
Lender) for such additional cost or reduced return. A certificate signed by an
authorised signatory of the Lender setting out the amount of that payment and
the basis of its calculation shall be submitted to the Borrower and shall be
conclusive evidence of such amount save for manifest error or on any question of
law.

     

    
      	
               
      

            	
              8.6

            	
              Exceptions to increased
      costs  Clause 8.5 (Increased costs) does
      not apply to the extent any additional costs or reduced return referred to
      in that Clause is:

               

            

    

    

    
      
         

      

      
        18

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              8.6.1

            	
              compensated
      for by a payment made under Clause 8.10 (Taxes);
or

               

            

    

    
      	
               
      

            	
              8.6.2

            	
              compensated
      for by a payment made under Clause 16.3 (Grossing-up);
      or

               

            

    

    
      	
               
      

            	
              8.6.3

            	
              attributable
      to the wilful breach by the Lender (or the holding company of the Lender)
      of any law or regulation.

               

            

    

    
      	
               
      

            	
              8.7

            	
              Events of Default The
      Borrower shall indemnify the. Lender from time to time on the Lender's
      written demand against all losses, costs and liabilities incurred or
      sustained by the Lender as a consequence of any Event of
      Default.

               

            

    

    
      	
               
      

            	
              8.8

            	
              Enforcement costs The
      Borrower shall pay to the Lender on the Lender's written demand the amount
      of all costs and expenses (including legal fees) incurred by the Lender in
      connection with the enforcement of, or the preservation of any rights
      under, any Finance Document including (without limitation) any losses,
      costs and expenses which the Lender may from time to time sustain, incur
      or become liable for by reason of the Lender being mortgagee of the Vessel
      and/or a lender to the Borrower, or by reason of the Lender being deemed
      by any court or authority to be an operator or controller, or in any way
      concerned in the operation or control, of the Vessel.

               

            

    

    
      	
               
      

            	
              8.9

            	
              Other costs The Borrower
      shall pay to the Lender on the Lenders written demand the amount of all
      sums which the Lender may pay or become actually or contingently liable
      for on account of the Borrower in connection with the Vessel (whether
      alone or jointly or jointly and severally with any other person) including
      (without limitation) all sums which the Lender may pay or guarantees which
      it may give in respect of the Insurances, any expenses incurred by the
      Lender in connection with the maintenance or repair of the Vessel or in
      discharging any lien, bond or other claim relating in any way to the
      Vessel, and any sums which the Lender may pay or guarantees which it may
      give to procure the release of the Vessel from arrest or
      detention.

               

            

    

    
      	
               
      

            	
              8.10

            	
              Taxes The Borrower shall
      pay all Taxes to which all or any part of the indebtedness or any Finance
      Document may be at any time subject (other than Tax on the Lender's
      overall net income) and shall indemnify the Lender on the Lender's written
      demand against all liabilities, costs, claims and expenses resulting from
      any omission to pay or delay in paying any such Taxes.

               

            

    

    

    
      
         

      

      
        19

        
          

        

      

      
         

      

    

    9           Fees

     

    
      	
               
      

            	
              9.1

            	
              Commitment fee The
      Borrower shall pay to the Lender a fee computed at the rate of zero point
      twenty five per cent (0.25%) per annum on the undrawn amount of the. Loan
      from time to time from 22nd October 2007 until the earlier to occur of the
      Drawdown Date and the Availability Termination Date (both dates
      inclusive). The accrued commitment fee is payable on the last day of each
      successive period of three months from the date of this Agreement and on
      the Availability Termination Date.

               

            

    

    
      	
               
      

            	
              9.2

            	
              Arrangement fee The
      Borrower shall pay to the Lender an arrangement fee in the amount of zero
      point fifty per cent (0.50%) of the Maximum Loan Amount of which half was
      due and payable on the date of acceptance of the offer letter and the
      other half is due and payable within 30 days from the Drawdown
      Date.

               

            

    

    10           Security
and Application of Moneys

     

    
      	
               
      

            	
              10.1

            	
              Security Documents As
      security for the payment of the Indebtedness, the Borrower shall execute
      and deliver to the Lender or cause to be executed and delivered to the
      Lender the following documents in such forms and containing such terms and
      conditions as the Lender shall require:

               

            

    

    
      	
               
      

            	
              10.1.1

            	
              a
      first preferred mortgage over the Vessel;

               

            

    

    
      	
               
      

            	
              10.1.2

            	
              a
      first priority deed or deeds of assignment of the Insurances, Earnings,
      any Charter and Requisition Compensation; and

               

            

    

    
      	
               
      

            	
              10.1.3

            	
              a
      guarantee and indemnity from the Guarantor.

               

            

    

    
      
        	
                 
      

              	
                10.2

              	
                Earnings Account The
      Borrower shall maintain the Earnings Account with the Lender for the.
      duration of the Facility Period free of Encumbrances and rights of set off
      other than those created by or under the Finance Documents. Interest shall
      accrue on a daily basis on any balance from time to time on the Earnings
      Account at a rate of interest determined by the Lender in its discretion
      as the rate of interest payable to its customers on deposits in thc same
      currency and of similar amount and maturity, and shall be credited to the
      Earnings Account.

                 

              
	 	10.3 	
                Earnings The
      Borrower shall procure that all Earnings and any Requisition Compensation
      are credited to the Earnings Account. 

                 

              

      

    

    
      
      

    

    

    
      
         

      

      
        20

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              10.4

            	
              Application of Earnings Account
      The Borrower shall procure that there is transferred from the
      Earnings Account to the Lender:

               

            

    

    
      	
               
      

            	
              10.4.1

            	
              on
      each Repayment Date, the amount of the Repayment Instalment then due;
      and

               

            

    

    
      	
               
      

            	
              10.4.2

            	
              on
      each Interest Payment Date, the amount of interest then due, and
      the Borrower irrevocably authorises the Lender to make those
      transfers.

               

            

    

    
      	
               
      

            	
              10.5

            	
              Borrower's obligations not
      affected If for any reason the amount standing to the credit of the
      Earnings Account is insufficient to pay any Repayment Instalment or to
      make any payment of interest when due, the Borrower's obligation to pay
      that Repayment Instalment or to make that payment of interest shall not be
      affected.

               

            

    

    
      	
               
      

            	
              10.6

            	
              Release of surplus Any
      amount remaining to the credit of the Earnings Account following the
      making of any transfer required by Clause 10.4 {Application of Earnings
      Account) shall (unless a Default shall have occurred and be
      continuing) be released to or to the order of the Borrower.

               

            

    

    
      	
               
      

            	
              10.7

            	
              Restriction on withdrawal
      During the Facility Period no sum may be withdrawn from the
      Earnings Account (except in accordance with this Clause 10) without the
      prior written consent of the Lender.

               

            

    

    
      	
               
      

            	
              10.8

            	
              Relocation of Earnings Account
      At any time following the occurrence and during the continuation of
      a Default, the Lender may without the consent of the Borrower relocate the
      Earnings Account to any other branch of the Lender, without prejudice
      to the continued
      application of this Clause 10 and the rights of the Lender under the
      Finance Documents.

               

            

    

    
      	
               
      

            	
              10.9

            	
              Application after acceleration
      From and after the giving of notice to the Borrower by the Lender
      under Clause 13.2 (Acceleration),
      the Borrower shall procure that all sums from time to time standing to the
      credit of the Earnings Account are immediately transferred to the Lender
      for application in accordance with Clause 10.10 (General application of
      moneys) and the Borrower irrevocably authorises the Lender to make
      those transfers.

               

            

    

    
      
         

      

      
        21

        
          

        

      

      
         

      

    

    
      	
              10.10

            	
              General application of moneys
      The. Borrower, subject to Clause 10.11 (Application of moneys on sale
      or Total Loss), irrevocably authorises the Lender to apply all sums
      which the Lender may receive:

               

            

    

    
      	
               
      

            	
              10.10.1

            	
              pursuant
      to a sale or other disposition of the Vessel or any right, title or
      interest in the Vessel; or

               

            

    

    
      	
               
      

            	
              10.10.2

            	
              by
      way of payment of any sum in respect of the Insurances, Earnings, Charter
      or Requisition Compensation; or

               

            

    

    
      	
               
      

            	
              10.10.3

            	
              by
      way of transfer of any sum from the Earnings Account; or

               

            

    

    
      	
               
      

            	
              10.10.4

            	
              otherwise
      arising under or in connection with any Security Document,

               

            

    

    in or
towards satisfaction, or by way of retention on account, of the Indebtedness, in
such manner as the Lender may determine.

     

    
      	
              10.11

            	
              Application of moneys on sale
      or Total Loss The Borrower irrevocably authorises the Lender to
      apply all sums which the Lender may receive pursuant to a sale by the
      Borrower of the Vessel or a Total Loss in or towards satisfaction of the
      prepayment due and payable by virtue of that sale or Total Loss under
      Clause 6.3 (Mandatory
      prepayment on sale or Total Loss), but the Borrower's obligation to
      make that prepayment shall not be affected if those sums are insufficient
      to satisfy that obligation.

               

            

    

    
      	
              10.12

            	
              Additional security If
      at any time the aggregate of the market value of the Vessel (such market
      value to be conclusively determined at least once during each calendar
      year by a reputable, independent and first class firm of shipbrokers
      appointed by the Lender on the basis of a charter-free sale for prompt
      delivery for cash at arm's length on normal commercial terms as between a
      willing seller and a willing buyer) and the value of any additional
      security (such value to be the face amount of
      the deposit (in the case of cash), determined conclusively by appropriate
      advisers appointed by the Lender (in the case of other charged assets),
      and determined by the Lender in its discretion (in all other cases)) for
      the time being provided to the. Lender under this Clause 10.12 is less
      than one hundred and thirty per cent (130%) of the Loan the Borrower
      shall. within thirty (30) days of the Lender's request, at the Borrower's
      option:

               

            

    

    
      
         

      

      
        22

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              10.12.1

            	
              pay
      to the Lender or to its nominee a cash deposit in the amount of the
      shortfall to be secured in favour of the Lender as additional security for
      the payment of the Indebtedness; or

               

            

    

    
      	
               
      

            	
              10.12.2

            	
              give
      to the Lender other additional security in amount and form acceptable to
      the Lender in its discretion; or

               

            

    

    
      	
               
      

            	
              10.12.3

            	
              prepay
      the amount of the Indebtedness which will ensure that the aggregate of the
      market value of the Vessel (determined as stated above) and the value of
      any such additional security is not less than one hundred and thirty per
      cent (130%) of the Loan.

               

            

    

    Clauses
5.3 (Reborrowing),
6.2.3 (Voluntary
prepayment of Loan) and 6.4 (Restrictions) shall apply,
mutatis mutandis, to
any prepayment made under this Clause 10.12 and the value of any additional
security provided shall be determined as stated above.

     

    11            Representations

     

    
      	
               
      

            	
              11.1

            	
              Representations The
      Borrower makes the representations and warranties set out in this Clause
      11.1 to the Lender on the date of this Agreement except as otherwise
      disclosed by the Borrower to the Lender in writing before the date of this
      Agreement with specific reference to this Agreement.

               

            

    

    
      	
               
      

            	
              11.1.1

            	
              Status Each Security
      Party (which is not an individual) is a corporation, duly incorporated and
      validly existing under the law of its jurisdiction of incorporation and
      has the power to own its assets and carry on its business as it is being
      conducted.

               

            

    

    
      	
               
      

            	
              11.1.2

            	
              Binding obligations The
      obligations expressed to be assumed by each Security Party in each Finance
      Document to which it is a party are, subject to any general principles of
      law limiting its obligations which are specifically referred to in any
      legal opinion delivered pursuant to Clause 3 (Conditions of Utilisation),
      legal, valid, binding and enforceable obligations.

               

            

    

    
      
         

      

      
        23

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              11.1.3

            	
              Non-conflict with other
      obligations The entry into and performance by each Security Party
      of, and the transactions contemplated by, the Finance Documents do not
      conflict with:

               

            

    

    
      	
               
      

            	
              (a)

            	
              any
      law or regulation applicable to that Security Party;

               

            

    

    
      	
               
      

            	
              (b)

            	
              the
      constitutional documents of that Security Party; or

               

            

    

    
      	
               
      

            	
              (c)

            	
              any
      document binding on that Security Party or any of its assets, and in
      borrowing the Loan, the Borrower is acting for its own
      account.

               

            

    

    
      	
               
      

            	
              11.1.4

            	
              Power and authority Each
      Security Party has the power to enter into, perform and deliver, and has
      taken all necessary action to authorise its entry into, performance and
      delivery of, the Finance Documents to which it is a party and the
      transactions contemplated by those Finance Documents.

               

            

    

    
      	
               
      

            	
              11.1.5

            	
              Validity and admissibility in
      evidence All consents, licences, approvals, authorisations, filings
      and registrations required or desirable:

               

            

    

    
      	
               
      

            	
              (a)

            	
              to
      enable each Security Party lawfully to enter into, exercise its rights and
      comply with its obligations in the Finance Documents to which it is a
      party or to enable the Lender to enforce and exercise all its rights under
      the Finance Documents; and

               

            

    

    
      	
               
      

            	
              (b)

            	
              to
      make the Finance Documents to which any Security Party is a party
      admissible in evidence in its jurisdiction of incorporation,

               

            

    

    have been
obtained or effected and are in full force and effect, with the exception only
of the registrations referred to in Part II of Schedule 1 (Conditions
subsequent).

     

    
      	
               
      

            	
              11.1.6

            	
              Governing law and enforcement
      The choice of English law as the governing law of any Finance
      Document expressed to be governed by English law will be recognised and
      enforced in the jurisdiction of incorporation of each relevant Security
      Party, and any judgment obtained in England in relation to any such
      Finance Document will be recognised and enforced in the jurisdiction of
      incorporation of each relevant Security Party.

               

            

    

    

    
      
         

      

      
        24

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              11.1.7

            	
              Deduction of Tax No
      Security Party is required under the law of its jurisdiction of
      incorporation to make any deduction for or on account of Tax
      from any payment it may make under any Finance Document.

               

            

    

    
      	
               
      

            	
              11.1.8

            	
              No filing or stamp taxes
      Under the law of jurisdiction of incorporation of each relevant
      Security Party it is not necessary that the Finance Documents (other than
      the Security Documents) be filed, recorded or enrolled with any court or
      other authority in that jurisdiction or that any stamp, registration or
      similar tax be paid on or in relation to the Finance Documents or the
      transactions contemplated by the Finance Documents.

               

            

    

    
      	
               
      

            	
              11.1.9

            	
              No default No Event of
      Default is continuing or might reasonably be expected to result from the
      advance of the Loan.

               

            

    

    
      	
               
      

            	
              11.1.10

            	
              No misleading information
      Any factual information provided by any Security Party to the
      Lender was true and accurate in all material respects as at the date it
      was provided.

               

            

    

    
      	
               
      

            	
              11.1.11

            	
              Pari passu ranking The
      payment obligations of each Security Party under the Finance Documents to
      which it is a party rank at least pari passu with the claims of all its
      other unsecured and unsubordinated creditors, except for obligations
      mandatorily preferred by law applying to companies generally.

               

            

    

    
      	
               
      

            	
              11.1.12

            	
              No proceedings pending or
      threatened No litigation, arbitration or administrative proceedings
      of or before any court, arbitral body or agency have been started or (to
      the best of the Borrower's knowledge threatened) which, if adversely
      determined, might reasonably be expected to have a materially adverse
      effect on the business, assets, financial condition or credit worthiness
      of any Security Party.

               

            

    

    
      	
               
      

            	
              11.1.13

            	
              Disclosure of material facts
      The Borrower is not aware of any material facts or circumstances
      which have not been disclosed to the Lender and which might, if disclosed,
      have adversely affected the decision of a person considering whether or
      not to make loan facilities of the nature contemplated by this Agreement
      available to the Borrower.

            

    

    

    
      
         

      

      
        25

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              11.1.14

            	
              No established place of
      business in the UK or US No Security Party has an established place
      of business in the United Kingdom or the United States of
      America.

               

            

    

    
      	
               
      

            	
              11.1.15

            	
              Completeness of Relevant
      Documents The copies of any Relevant Documents provided or to be
      provided by the Borrower to the Lender in accordance with Clause 3 (Conditions of Utilisation)
      are, or will be, true and accurate copies of the originals and
      represent, or will represent, the full agreement between the parties to
      those Relevant Documents in relation to the subject matter of those
      Relevant Documents and there are no commissions, rebates, premiums or
      other payments due or to become due in connection with the subject matter
      of those Relevant Documents other than in the ordinary course of business
      or as disclosed to, and approved in writing by, the Lender.

               

            

    

    
      	
               
      

            	
              11.2

            	
              Repetition Each
      representation and warranty in Clause 11.1 (Representations) is
      deemed to be repeated by the Borrower by reference to the facts and
      circumstances then existing on the date of the Drawdown Notice and the
      first day of each Interest Period.

               

            

    

    12           Undertakings
and Covenants

     

    The
undertakings and covenants in this Clause 12 remain in force for the duration of
the Facility Period.

     

    
      	
               
      

            	
              12.1

            	
              Information
      Undertakings

               

            

    

    
      	
               
      

            	
              12.1.1

            	
              Financial statements The
      Borrower shall supply and procure that the Guarantor supplies, to the
      Lender as soon as the same become available, but in any event within 180
      days after the end of each of its financial years, its audited financial
      statements for that financial year, together with a Compliance
      Certificate, signed by one director of the Guarantor, setting out (in
      reasonable detail) computations as to compliance with Clause 12.2 (Financial covenants)
      as at the date as at which those financial statements were drawn
      up.

               

            

    

    
      	
               
      

            	
              12.1.2

            	
              Requirements as to financial
      statements Each set of financial statements delivered by the
      Borrower or the Guarantor, under Clause 12.1.1 (Financial
      statements):

               

            

    

    
      
         

      

      
        26

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (a)

            	
              shall
      be certified by a director of the Borrower or the Guarantor (as the
      context may require), as fairly representing its financial condition as at
      the date as at which those financial statements were drawn up;
      and

               

            

    

    
      	
               
      

            	
              (b)

            	
              shall
      be prepared using GAAP, accounting practices and financial reference
      periods consistent with those applied in the preparation of the Original
      Financial Statements unless, in Marion. to any set of financial
      statements, the Borrower notifies the Lender that there has been a change
      in GAAP, the accounting practices or reference periods and the Borrower's
      auditors deliver to the Lender:

               

            

    

    
      	
               
      

            	
              (i)

            	
              a
      description of any change necessary for those financial statements to
      reflect the GAAP, accounting practices and reference periods upon which
      the Original Financial Statements were prepared; and

               

            

    

    
      	
               
      

            	
              (ii)

            	
              sufficient
      information, in form and substance as may be reasonably required by the
      Lender, to enable the Lender to make an accurate comparison between the
      financial position indicated in those financial statements and that
      indicated in the Original Financial Statements.

               

            

    

    
      	
               
      

            	
              12.1.3

            	
              Information: miscellaneous
      The Borrower shall supply to the Lender:

               

            

    

    
      	
               
      

            	
              (a)

            	
              all
      documents dispatched by the Borrower to its shareholders (or any class of
      them) or its creditors generally at the same time as they are
      dispatched;

               

            

    

    
      	
               
      

            	
              (b)

            	
              promptly
      upon becoming aware of them, details of any litigation, arbitration or
      administrative proceedings which are current, threatened or pending
      against any Security Party, and which might, if adversely determined, have
      a materially adverse effect on the business, assets, financial condition
      or credit worthiness of that Security Party; and

               

            

    

    
      	
               
      

            	
              (c)

            	
              promptly.
      such further information regarding the financial condition, business and
      operations of any Security Party as the

            

    

    
      
         

      

      
        27

        
          

        

      

      
         

      

    

     

    Lender may reasonably request including, without
limitation, cash flow analyses and details of the operating costs of the
Vessel.

     

    
      	
               
      

            	
              12.1.4

            	
              Notification
      of default

               

            

    

    
      	
               
      

            	
              (a)

            	
              The
      Borrower shall notify the Lender of any Default (and the steps, if any,
      being taken to remedy it) promptly upon becoming aware of its
      occurrence.

               

            

    

    
      	
               
      

            	
              (b)

            	
              Promptly
      upon a request by the Lender, the Borrower shall supply to the Lender a
      certificate signed by two of its directors or senior officers on its
      behalf certifying that no Default is continuing (or if a Default is
      continuing, specifying the Default and the steps, if any, being taken to
      remedy it).

               

            

    

    
      	
               
      

            	
              12.1.5

            	
              "Know your customer"
      checks If:

               

            

    

    
      	
               
      

            	
              (a)

            	
              the
      introduction of or any change in (or in the interpretation, administration
      or application of) any law or regulation made after the date of this
      Agreement;

               

            

    

    
      	
               
      

            	
              (b)

            	
              any
      change in the status of the Borrower after the date of this Agreement;
      or

               

            

    

    
      	
               
      

            	
              (c)

            	
              a
      proposed assignment or transfer by the Lender of any of its rights and
      obligations under this Agreement,

               

            

    

    obliges
the Lender (or, in the case of (c) above, any prospective new Lender) to comply
with "know your customer" or similar identification procedures in circumstances
where the necessary information is not already available to it, the Borrower
shall promptly upon the request of the Lender supply, or procure the supply of,
such documentation and other evidence as is reasonably requested by the Lender
(for itself or, in the case of (c) above, on behalf of any prospective new
Lender) in order for the Lender (or, in the case of (c) above, any prospective
new Lender) to carry out and be satisfied it has complied with all necessary
"know your customer" or other similar checks under all applicable laws and
regulations pursuant to the transactions contemplated in the Finance
Documents.

    

    
      
         

      

      
        28

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              12.2

            	
              Financial
      covenants

               

            

    

    The
Borrower shall procure that the Guarantor shall at all times during the Facility
Period on a consolidated basis (assessed semi-annually and certified in
accordance with Clause 12.1.2 (a) commencing from the date of this
Agreement):-

     

    
      	
               
      

            	
              12.2.1

            	
              maintain
      a Minimum Liquidity of not less than twenty five million Dollars
      ($25,000,000); and

               

            

    

    
      	
               
      

            	
              12.2.2

            	
              maintain
      a Minimum Adjusted Net Worth of not less than two hundred and fifty
      million Dollars ($250,000,000) : and

               

            

    

    
      	
               
      

            	
              12.2.3

            	
              maintain
      Minimum Equity of not less than one hundred million Dollars
      ($100,000,000).

               

            

    

    
      	
               
      

            	
              12.3

            	
              General
      undertakings

               

            

    

    
      	
               
      

            	
              12.3.1

            	
              Authorisations The
      Borrower shall promptly:

               

            

    

    
      	
               
      

            	
              (a)

            	
              obtain,
      comply with and do all that is necessary to maintain in full force and
      effect; and

               

            

    

    
      	
               
      

            	
              (b)

            	
              supply
      certified copies to the Lender of,

               

            

    

    any
consent, licence, approval or authorisation required under any law or regulation
to enable each Security Party to perform its obligations under the Finance
Documents to which it is a party and to ensure the legality, validity,
enforceability or admissibility in evidence in the jurisdiction of incorporation
of each relevant Security Party of any Finance Document.

     

    
      	
               
      

            	
              12.3.2

            	
              Compliance with laws The
      Borrower shall comply in all respects with all laws to which it may be
      subject, if failure so to comply would materially impair its ability to
      perform its obligations under the Finance Documents.

               

            

    

    
      	
               
      

            	
              12.3.3

            	
              Conduct of business The
      Borrower shall carry on and conduct its business in a proper and efficient
      manner, file all requisite tax returns and pay all tax which becomes due
      and payable (except where contested in good
      faith).

               

            

    

    
      
         

      

      
        29

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              12.3.4

            	
              Evidence of good standing
      The Borrower will from time to time if requested by the Lender
      provide the Lender with evidence in form and substance satisfactory to the
      Lender that the Security Parties and all corporate shareholders of any
      Security Party remain in good standing.

               

            

    

    
      	
               
      

            	
              12.3.5

            	
              Negative pledge and no
      disposals The Borrower shall not without the prior written consent
      of the Lender create nor permit to subsist any Encumbrance or other third
      party rights over any of its present or future assets or undertaking nor
      dispose of any those assets or of all or part of that
      undertaking.

               

            

    

    
      	
               
      

            	
              12.3.6

            	
              Merger The Borrower
      shall not without the prior written consent of the Lender enter into any
      amalgamation, demerger, merger or corporate reconstruction.

               

            

    

    
      	
               
      

            	
              12.3.7

            	
              Change of business The
      Borrower shall not without the prior written consent of the Lender make
      any substantial change to the general nature of its business from that
      carried on at the date of this Agreement.

               

            

    

    
      	
               
      

            	
              12.3.8

            	
              No other business The
      Borrower shall not without the prior written consent of the Lender engage
      in any business other than the ownership, operation, chartering and
      management of the Vessel.

               

            

    

    
      	
               
      

            	
              12.3.9

            	
              No place of business in UK or
      US The Borrower shall not have an established place of business in
      the United Kingdom or the United States of America at any time during the
      Facility Period.

               

            

    

    
      	
               
      

            	
              12.3.10

            	
              No borrowings The
      Borrower shall not without the prior written consent of the Lender borrow
      any money (except for the Loan and unsecured Financial Indebtedness
      subordinated to the Loan and arising in the Borrowers normal course of
      operating the Vessel) nor incur any obligations under leases.

               

            

    

    
      	
               
      

            	
              12.3.11

            	
              No substantial liabilities
      Except in the ordinary course of business, the Borrower shall not
      without the prior written consent of the Lender incur any liability to any
      third party which is in the Lender's opinion of a substantial
      nature.

               

            

    

    
      
         

      

      
        30

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              12.3.12

            	
              No loans or other financial
      commitments The Borrower shall not without the prior written
      consent of the Lender make any loan nor enter into any guarantee or
      indemnity or otherwise voluntarily assume any actual or contingent
      liability in respect of any obligation of any other person except for
      loans made in the ordinary course of business in connection with the
      chartering, operation or repair of the. Vessel.

               

            

    

    
      	
               
      

            	
              12.3.13

            	
              No dividends The
      Borrower shall not without the prior written consent of the Lender pay any
      dividends or make any other distributions to shareholders or issue any new
      shares following the occurrence of a Default.

               

            

    

    
      	
               
      

            	
              12.3.14

            	
              Inspection of records
      The Borrower will permit the inspection of its financial records
      and accounts from time to time by the Lender or its nominee.

               

            

    

    
      	
               
      

            	
              12.3.15

            	
              No change in Relevant Documents
      The Borrower shall procure that, without the prior written consent
      of the Lender, there shall be no termination of, alteration to, or waiver
      of any term of, any of the Relevant Documents which are not Finance
      Documents.

               

            

    

    
      	
               
      

            	
              12.3.16

            	
              No change in ownership or
      control The Borrower shall not permit any change in its beneficial
      ownership and control from that advised to the Lender at the date of this
      Agreement without the prior written consent of the Lender.

               

            

    

    
      	
               
      

            	
              12.4

            	
              Vessel
      undertakings

               

            

    

    
      	
               
      

            	
              12.4.1

            	
              No sale of Vessel The
      Borrower shall not sell or otherwise dispose of the Vessel or any shares
      in the Vessel nor agree to do so without the prior written consent of the
      Lender.

               

            

    

    
      	
               
      

            	
              12.4.2

            	
              No chartering after Event of
      Default Following the occurrence and during the continuation of an
      Event of Default the Borrower shall not without the prior written consent
      of the Lender let the Vessel on charter or renew or extend any charter or
      other contract of employment of the Vessel (nor agree to do
      so).

               

            

    

    
      
         

      

      
        31

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              12.4.3

            	
              No change in management
      The Borrower shall procure that, without the prior written consent
      of the Lender, there shall be no termination of, alteration to, or waiver
      of any term of, the Management Agreement and the Borrower shall not
      without the prior written consent of the Lender permit the Managers to
      sub-contract or delegate the commercial or technical management of the
      Vessel to any third party.

               

            

    

    
      	
               
      

            	
              12.4.4

            	
              Registration of Vessel
      The Borrower undertakes to maintain the registration of the Vessel
      under the flag stated in Recital (A) for the duration of the Facility
      Period unless the Lender agrees otherwise in writing.

               

            

    

    
      	
               
      

            	
              12.4.5

            	
              Evidence of current COFR
      The Borrower will, if and for so long as the Vessel trades in the
      United States of America and Exclusive Economic Zone (as defined in the
      United States Oil Pollution Act 1990), obtain, retain and provide the
      Lender with a copy of, a valid Certificate of Financial Responsibility for
      the Vessel under that Act and will comply strictly with the requirements
      of that Act.

               

            

    

    
      	
               
      

            	
              12.4.6

            	
              ISM Code compliance The
      Borrower will:

               

            

    

    
      	
               
      

            	
              (a)

            	
              procure
      that the Vessel remains for the duration of the Facility Period subject to
      a SMS;

               

            

    

    
      	
               
      

            	
              (b)

            	
              maintain
      a valid and current SMC for the Vessel throughout the Facility Period and
      provide a copy to the Lender;

               

            

    

    
      	
               
      

            	
              (c)

            	
              procure
      that the ISM Company maintains a valid and current DOC throughout the
      Facility Period and provide a copy to the Lender; and

               

            

    

    
      	
               
      

            	
              (d)

            	
              immediately
      notify the Lender in writing of any actual or threatened withdrawal,
      suspension, cancellation or modification of the SMC of the Vessel or of
      the DOC of the ISM. Company.

               

            

    

    
      	
               
      

            	
              12.4.7

            	
              ISPS Code Compliance The
      Borrower will:

               

            

    

    
      	
               
      

            	
              (a)

            	
              for
      the duration of the Facility Period comply with the ISPS Code in relation
      to the Vessel and procure that the Vessel and the ISPS Company comply with
      the ISPS Code;

            

    

    
      
         

      

      
        32

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (b)

            	
              maintain
      a valid and current ISSC for the Vessel throughout the Facility Period and
      provide a copy to the Lender; and

               

            

    

    
      	
               
      

            	
              (c)

            	
              immediately
      notify the Lender in writing of any actual or threatened withdrawal,
      suspension, cancellation or modification of the ISSC.

               

            

    

    
      	
               
      

            	
              12.4.8

            	
              Annex VI compliance The
      Borrower will:

               

            

    

    
      	
               
      

            	
              (a)

            	
              for
      the duration of the Facility Period comply with Annex VI in relation to
      the Vessel and procure that the Vessel's master and crew are familiar
      with, and that the Vessel complies with, Annex VI;

               

            

    

    
      	
               
      

            	
              (b)

            	
              maintain
      a valid and current IAPPC for the Vessel throughout the Facility Period
      and provide a copy to the Lender; and

               

            

    

    
      	
               
      

            	
              (c)

            	
              immediately
      notify the Lender in writing of any actual or threatened withdrawal,
      suspension, cancellation or modification of the IAPPC.

               

            

    

    
      	
               
      

            	
              12.4.9

            	
              Chartering agreement The
      Borrower (as owner) shall, by not later than six (6) months after the
      Drawdown Date, enter into a Charter whereby the Vessel is employed for a
      period of at least twelve (12) months' duration, such Charter to be in
      form and substance, and on terms and conditions, satisfactory to the
      Lender in all respects.

               

            

    

    13           Events
of Default

     

    
      	
               
      

            	
              13.1

            	
              Events of Default Each
      of the events or circumstances set out in this Clause 13.1 is an Event of
      Default.

               

            

    

    
      	
               
      

            	
              13.1.1

            	
              Non-payment The Borrower
      does not pay on the due date any amount payable by it under a Finance
      Document at the place at and in the currency in which it is expressed to
      he payable.

               

            

    

    
      	
               
      

            	
              13.1.2

            	
              Other obligations A
      Security Party or any other person (except the Lender) does not comply
      with any provision of any of the Relevant Documents to which that Security
      Party or person is a party (other than as referred to in Clause 13.1.1
      (Non-payment))

               

            

    

    
      
         

      

      
        33

        
          

        

      

      
         

      

    

    No Event
of Default under this Clause 13.1.2 will occur if the failure to comply is
capable of remedy and is remedied within ten (10) Business Days of the Lender
giving notice to the Borrower or the Borrower becoming aware of the failure to
comply.

     

    
      	
               
      

            	
              13.1.3

            	
              Misrepresentation Any
      representation, warranty or statement made or deemed to be repeated by a
      Security Party in any Finance Document or any other document delivered by
      or on behalf of a Security Party under or in connection with any Finance
      Document is or proves to have been incorrect or misleading in any material
      respect when made or deemed to be repeated.

               

            

    

    
      	
               
      

            	
              13.1.4

            	
              Cross default Any
      Financial Indebtedness of a Security Party:

               

            

    

    
      	
               
      

            	
              (a)

            	
              is
      not paid when due or within any originally applicable grace period;
      or

               

            

    

    
      	
               
      

            	
              (b)

            	
              is
      declared to be, or otherwise becomes, due and payable before its specified
      maturity as a result of an event of default (however described);
      or

               

            

    

    
      	
               
      

            	
              (c)

            	
              is
      capable of being declared by a creditor to be due and payable before its
      specified maturity as a result of such an event.

               

            

    

    
      	
               
      

            	
              13.1.5

            	
              Insolvency

               

            

    

    
      	
               
      

            	
              (a)

            	
              A
      Security Party is unable or admits inability to pay its debts as they fall
      due, suspends making payments on any of its debts or, by reason of actual
      or anticipated financial difficulties, commences negotiations with one or
      more of its creditors with a view to rescheduling any of its Financial
      Indebtedness.

               

            

    

    
      	
               
      

            	
              (b)

            	
              The
      value of the assets of a Security Party is less than its liabilities
      (taking into account contingent and prospective liabilities).

               

            

    

    
      	
               
      

            	
              (c)

            	
              A
      moratorium is declared in respect of any Financial Indebtedness of a
      Security Party.

               

            

    

    
      	
               
      

            	
              13.1.6

            	
              Insolvency proceedings
      Any corporate action, legal proceedings or other procedure or step is
      taken for:

               

            

    

    
      
         

      

      
        34

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (a)

            	
              the
      suspension of payments, a moratorium of any Financial Indebtedness,
      winding-up, dissolution, administration, bankruptcy or reorganisation (by
      way of voluntary arrangement, scheme of arrangement or otherwise) of a
      Security Party;

               

            

    

    
      	
               
      

            	
              (b)

            	
              a
      composition, compromise, assignment or arrangement with any creditor of a
      Security Party;

               

            

    

    
      	
               
      

            	
              (c)

            	
              the
      appointment of a liquidator, receiver, administrative receiver,
      administrator, compulsory manager, or trustee or other similar officer
      in respect of any Security Party
      or any of its assets; or

               

            

    

    
      	
               
      

            	
              (d)

            	
              enforcement
      of any Encumbrance over any assets of a Security Party,

               

            

    

    
      	
               
      

            	
              or
      any analogous procedure or step is taken in any jurisdiction.

               

            

    

    
      	
               
      

            	
              13.1.7

            	
              Creditors' process Any
      expropriation, attachment, sequestration, distress or execution affects
      any asset or assets of a Security Party.

               

            

    

    
      	
               
      

            	
              13.1.8

            	
              Change in ownership or control
      of the Borrower There is any change in the beneficial ownership or
      control of the Borrower from that advised to the Lender by the Borrower at
      the date of this Agreement.

               

            

    

    
      	
               
      

            	
              13.1.9

            	
              Repudiation A Security
      Party or any other person (except the Lender) repudiates any of the
      Relevant Documents to which that Security Party or person is a party or
      evidences an intention to do so.

               

            

    

    
      	
               
      

            	
              13.1.10

            	
              Impossibility or
      illegality Any event occurs which would, or would with the passage
      of time, render performance of any of the Relevant Documents by a Security
      Party or any other party to any such document impossible, unlawful or
      unenforceable by the Lender or a Security Party.

               

            

    

    
      	
               
      

            	
              13.1.11

            	
              Conditions subsequent
      Any of the conditions referred to in Clause 3.3 (Conditions subsequent)
      is not satisfied within the time reasonably required by the
      Lender.

               

            

    

    
      	
               
      

            	
              13.1.12

            	
              Revocation or modification of
      authorisation  Any consent, licence, approval,
      authorisation, filing, registration or other requirement of any
      

            

    

    
      
         

      

      
        35

        
          

        

      

      
         

      

    

     

    governmental, judicial or other public body or
authority which is now, or which at any time during the Facility Period becomes,
necessary to enable a Security Party or any other person (except the Lender) to
comply with any of its obligations under any of the Relevant Documents is not
obtained, is revoked, suspended, withdrawn or withheld, or is modified in a
manner which the Lender considers is, or may be, prejudicial to the. interests
of the Lender, or ceases to remain in full force and effect.

     

    
      	
               
      

            	
              13.1.13

            	
              Curtailment of business
      A Security Party ceases, or threatens to cease, to carry on all or
      a substantial part of its business or, as a result of intervention. by or
      under the authority of any government, the business of a Security Party is
      wholly or partially curtailed or suspended, or ail or a substantial part
      of the assets or undertaking of a Security Party is seized, nationalised,
      expropriated or compulsorily acquired.

               

            

    

    
      	
               
      

            	
              13.1.14

            	
              Reduction of capital
      A Security Party
      reduces its authorised or issued or subscribed capital.

               

            

    

    
      	
               
      

            	
              13.1.15

            	
              Loss of Vessel The
      Vessel suffers a Total Loss or is otherwise destroyed, abandoned,
      confiscated, forfeited or condemned as prize, or a similar event occurs in
      relation to any other vessel which may from time to time be mortgaged to
      the Lender as security for the payment of all or any part of the
      Indebtedness, except that a Total Loss, or event similar to a Total Loss
      in relation to any other vessel, shall not be an Event of Default
      if:

               

            

    

    
      	
               
      

            	
              (a)

            	
              the
      Vessel or other vessel is insured in accordance with the Security
      Documents; and

               

            

    

    
      	
               
      

            	
              (b)

            	
              no
      insurer has refused to meet or has disputed the claim for Total Loss and
      it is not apparent to the Lender in its discretion that any such refusal
      or dispute is likely to occur; and

               

            

    

    
      	
               
      

            	
              (c)

            	
              payment
      of all insurance proceeds in respect of the Total Loss is made in full to
      the Lender within one hundred and eighty (180) days of the occurrence of
      the casualty giving rise to the Total Loss in Question or such longer
      period as the Lender may in its discretion agree.

               

            

    

    
      
         

      

      
        36

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              13.1.16

            	
              Challenge to registration
      The registration of the Vessel or the Mortgage is contested or
      becomes void or voidable or liable to cancellation or termination, or the
      validity or priority of the Mortgage is contested.

               

            

    

    
      	
               
      

            	
              13.1.17

            	
              War The country of
      registration of the. Vessel becomes involved in war (whether or not
      declared) or civil war or is occupied by any other power and the Lender in
      its discretion considers that, as a result, the security conferred by the
      Security Documents is materially prejudiced.

               

            

    

    
      	
               
      

            	
              13.1.18

            	
              Notice of termination
      The Guarantor gives notice to the Lender to terminate its
      obligations under the Guarantee.

               

            

    

    
      	
               
      

            	
              13.1.19

            	
              Material adverse change
      Any event or series of events occurs which, in the opinion of the
      Lender, is likely to have a materially adverse effect on the business,
      assets, financial condition or credit worthiness of a Security
      Party.

               

            

    

    
      	
               
      

            	
              13.2

            	
              Acceleration If an Event
      of Default is continuing the Lender may by notice to the
      Borrower:

               

            

    

    
      	
               
      

            	
              13.2.1

            	
              declare
      that the Loan, together with accrued interest, and all other amounts
      accrued or outstanding under the Finance Documents are immediately due and
      payable, whereupon they become immediately due and payable;
      and/or

               

            

    

    
      	
               
      

            	
              13.2.2

            	
              declare
      that the Loan is payable on demand, whereupon it shall immediately become
      payable on demand by the Lender.

               

            

    

    14           Assignment
and Sub-Participation

     

    
      	
               
      

            	
              14.1

            	
              Lender's rights The
      Lender may assign any of its rights under this Agreement or transfer by
      novation any of its rights and obligations under this Agreement to any
      other branch of the Lender or to any other bank or financial institution,
      and may grant sub-participations in all or any part of the
      Loan.

               

            

    

    
      	
               
      

            	
              14.2

            	
              Borrower's co-operation
      The Borrower will co-operate fully with the Lender in connection
      with any assignment, transfer or sub-participation; will execute and
      procure the execution of such documents as the Lender may require in that
      connection; and irrevocably authorises the Lender to disclose to any
      proposed assignee, transferee or sub-participant (whether before or after
      any assignment, 

            

    

    
      
         

      

      
        37

        
          

        

      

      
         

      

    

    transfer or sub-participation and whether or not
any assignment, transfer or sub-participation shall take place) all information
relating to the Security Parties, the Loan, the Relevant Documents and the
Vessel which the Lender may in its discretion consider necessary or
desirable.

     

    
      	
               
      

            	
              14.3

            	
              Rights of assignee or
      transferee Any assignee or transferee of the Lender shall (unless
      limited by the express terms of the assignment or novation) take the full
      benefit of every provision of the Finance Documents benefitting the
      Lender.

               

            

    

    
      	
               
      

            	
              14.4

            	
              No assignment or transfer by
      the Borrower The Borrower may not assign any of its rights or
      transfer any of its rights or obligations under the Finance
      Documents.

               

            

    

    15           Set-Off

     

    
      	
               
      

            	
              15.1

            	
              Set-off The Lender may
      set off any matured obligation due from the Borrower under any Finance
      Document against any matured obligation owed by the Lender to the Borrower,
      regardless of the place of payment, booking branch or currency of either
      obligation. If the obligations are in different currencies, the Lender may
      convert either obligation at a market rate of exchange in its usual course
      of business for the purpose of the set-off.

               

            

    

    16           Payments

     

    
      	
               
      

            	
              16.1

            	
              Payments Each amount
      payable by the Borrower under a Finance Document shall be paid to such
      account at such bank as the Lender may from time to time direct to the
      Borrower in the Currency of Account and in such funds as are customary at
      the time for settlement of transactions in the relevant currency in the
      place of payment. Payment shall be deemed to have been received by the
      Lender on the date on which the Lender receives authenticated advice of
      receipt, unless that advice is received by the Lender on a day other than
      a Business Day or at a time of day (whether on a Business Day or not) when
      the Lender in its discretion considers that it is impossible or
      impracticable for the Lender to utilise the amount received for value that
      same day, in which event the payment in question shall be deemed to have
      been received by the Lender on the Business Day next following the date of
      receipt of advice by the Lender.

               

            

    

    
      	
               
      

            	
              16.2

            	
              No deductions or
      withholdings  Each payment (whether of principal or
      interest or otherwise) to be made by the Borrower under a Finance Document
      shall, subject only 

            

    

    
      
         

      

      
        38

        
          

        

      

      
         

      

    

     

    to Clause 16.3 (Grossing-up), be made free
and clear of and without deduction for or on account of any Taxes or other
deductions, withholdings, restrictions, conditions or counterclaims of any
nature.

     

    
      	
               
      

            	
              16.3

            	
              Grossing-up If at any
      time any law requires (or is interpreted to require) the Borrower to make
      any deduction or withholding from any payment, or to change the rate or
      manner in which
      any required deduction or withholding is made, the Borrower will promptly
      notify the Lender and, simultaneously with making that payment, will pay
      to the Lender whatever additional amount (after taking into account any
      additional Taxes on, or deductions or withholdings from, or restrictions
      or conditions on, that additional amount) is necessary to ensure that,
      after making the deduction or withholding, the Lender receives a net sum
      equal to the sum which the Lender would have received had no deduction or
      withholding been made.

               

            

    

    
      	
               
      

            	
              16.4

            	
              Evidence of deductions
      If at any time the Borrower is required by law to make any
      deduction or withholding from any payment to be made by it under a Finance
      Document, the Borrower will pay the amount required to be deducted or
      withheld to the relevant authority within the time allowed under the
      applicable law and will, no later than thirty (30) days after making that
      payment, deliver to the Lender an original receipt issued by the relevant
      authority, or other evidence acceptable to the Lender, evidencing the
      payment to that authority of all amounts required to be deducted or
      withheld.

               

            

    

    
      	
               
      

            	
              16.5

            	
              Adjustment of due dates
      If any payment or transfer of funds to be made under a Finance
      Document, other than a payment of interest on the Loan, shall be due on a
      day which is not a Business Day, that payment shall be made on the next
      succeeding Business Day (unless the next succeeding Business Day falls in
      the next calendar month in which event the payment shah be made on the
      next preceding Business Day). Any such variation of time shall be taken
      into account in computing any interest in respect of that
      payment.

               

            

    

    
      	
               
      

            	
              16.6

            	
              Control Account The
      Lender shall open and maintain on its books a control account in the name
      of the Borrower showing the advance of the Loan and the computation and
      payment of interest and all other sums due under this
      Agreement.  The Borrower's obligations to repay the Loan and to
      pay interest and all other sums due under this Agreement shall be
      evidenced by the entries from time to time made

            

    

    
      
         

      

      
        39

        
          

        

      

      
         

      

    

     

    in the control account opened and maintained
under this Clause 16.6 and those entries will, in the absence of manifest error,
be conclusive and binding.

     

    17           Notices

     

    
      	
               
      

            	
              17.1

            	
              Communications in writing
      Any communication to be made under or in connection with this
      Agreement shall be made in writing and, unless otherwise stated, may be
      made by fax or letter.

               

            

    

    
      	
               
      

            	
              17.2

            	
              Addresses The address
      and fax number (and the department or officer, if any, for whose attention
      the communication is to be made) of each party to this Agreement for any
      communication or document to be made or delivered under or in
      connection with this Agreement are:

               

            

    

    
      	
               
      

            	
              17.2.1

            	
              in
      the case of the Borrower, c/o Top Tanker Management Inc., 1 Vassilissis
      Sofias Str. & Meg. Alexandrou Str. 151 24 Marousi, Greece (fax no: +30
      210 614 1204) marked for the attention of Mr Stamatios Tsantanis;
      and

               

            

    

    
      	
               
      

            	
              17.2.2

            	
              in
      the case of the Lender, to the Lender at its address at the head of this
      Agreement (fax no: 210 429 0348 telex no: 212435) marked for the attention
      of Shipping Division branch 960);

               

            

    

    or any
substitute address. fax number, department or officer as either party may notify
to the other by not less than five (5) Business Days' notice.

     

    
      	
               
      

            	
              17.3

            	
              Delivery Any
      communication or document made or delivered by one party to this Agreement
      to the other under or in connection this Agreement will only be
      effective:

               

            

    

    
      	
               
      

            	
              17.3.1

            	
              if
      by way of fax, when received in legible form; or

               

            

    

    
      	
               
      

            	
              17.3.2

            	
              if
      by way of letter, when it has been left at the relevant address or five
      (5) Business Days after being deposited in the post postage prepaid in an
      envelope addressed to it at that address;

               

            

    

    and, if a
particular department or officer is specified as part of its address details
provided under Clause 17.2 (Addresses), if addressed to
that department or officer.

    
      
         

      

      
        40

        
          

        

      

      
         

      

    

    Any
communication or document to be made or delivered to the Lender will be
effective only when actually received by the Lender.

     

    
      	
               
      

            	
              17.4

            	
              English language Any
      notice given under or in connection with this Agreement must be in
      English. All other documents provided under or in connection with this
      Agreement must be:

               

            

    

    
      	
               
      

            	
              17.4.1

            	
              in
      English; or

               

            

    

    
      	
               
      

            	
              17.4.2

            	
              if
      not in English, and if so required by the Lender, accompanied by a
      certified English translation and, in this case, the English translation
      will prevail unless the document is a constitutional, statutory or other
      official document.

               

            

    

    18           Partial
Invalidity

     

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

     

    19           Remedies
and Waivers

     

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

     

    20           Miscellaneous

     

    
      	
               
      

            	
              20.1

            	
              No
      oral variations No variation or amendment of a Finance Document shall be
      valid unless in writing and signed on behalf of the Lender.

               

            

    

    
      	
               
      

            	
              20.2

            	
              Further Assurance If any
      provision of a Finance Document shall be invalid or unenforceable in whole
      or in part by reason of any present or future law or any decision of any
      court, or if the documents at any time held by or on behalf of the Lender
      are considered by the Lender for any reason insufficient to carry out the
      terms 

            

    

    
      
         

      

      
        41

        
          

        

      

      
         

      

    

     

    of this Agreement, then from time to time the
Borrower will promptly, on demand by the Lender, execute or procure the
execution of such further documents as in the opinion of the Lender are
necessary to provide adequate security for the repayment of the
Indebtedness.

     

    
      	
               
      

            	
              20.3

            	
              Rescission of payments etc.
      Any discharge, release or reassignment by the Lender of any of the
      security constituted by, or any of the obligations of a Security Party
      contained in, a Finance Document shall be (and be deemed always to have
      been) void if any act (including, without limitation, any payment) as a
      result of which such discharge, release or reassignment was given or made
      is subsequently wholly or partially rescinded or avoided by operation of
      any law.

               

            

    

    
      	
               
      

            	
              20.4

            	
              Certificates Any
      certificate or statement signed by an authorised signatory of the Lender
      purporting to show the amount of the Indebtedness (or any part of the
      Indebtedness) or any other amount referred to in any Finance Document
      shall, save for manifest error or on any question of law, be conclusive
      evidence as against the Borrower of that amount.

               

            

    

    
      	
               
      

            	
              20.5

            	
              Counterparts This
      Agreement may be executed in any number of counterparts each of which
      shall be original but which shall together constitute the same
      instrument.

               

            

    

    
      	
               
      

            	
              20.6

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

               

            

    

    21           Law
and Jurisdiction

     

    
      	
               
      

            	
              21.1

            	
              Governing law This Agreement shall in all respects
      be governed by and interpreted in accordance with English
law.

               

            

    

    
      	
               
      

            	
              21.2

            	
              Jurisdiction For the
      exclusive benefit of the Lender, the parties to this Agreement irrevocably
      agree that the courts of England are to have jurisdiction to settle any
      disputes which may arise out of or in connection with this Agreement and
      that any proceedings may be brought in those courts.

               

            

    

    
      	
               
      

            	
              21.3

            	
              Alternative jurisdictions
      Nothing contained in this Clause 21 shall limit the right of the
      Lender to commence any proceedings against the Borrower in any other court
      of competent jurisdiction nor shall the commencement of any proceedings
      against the 

            

    

    
      
         

      

      
        42

        
          

        

      

      
         

      

    

     

    Borrower in one or more jurisdictions preclude
the commencement of any proceedings in any other jurisdiction, whether
concurrently or not.

     

    
      	
               
      

            	
              21.4

            	
              Waiver of objections The
      Borrower irrevocably waives any objection which it may now or in the
      future have to the laying of the venue of any proceedings in any court
      referred to in this Clause 21, and any claim that those proceedings have
      been brought in an inconvenient or inappropriate forum, and irrevocably
      agrees that a judgment in any proceedings commenced in any such court
      shall be conclusive and binding on it and may be enforced in the courts of
      any other jurisdiction.

               

            

    

    
      	
               
      

            	
              21.5

            	
              Service of process
      Without prejudice to any other mode of service allowed under any
      relevant law, the Borrower:

               

            

    

    
      	
               
      

            	
              21.5.1

            	
              irrevocably
      appoints Top Tankers (UK) Limited of 8 Duke Street , W1U 3EW London, UK as
      its agent for service of process in relation to any proceedings before the
      English courts in connection with this Agreement; and

               

            

    

    
      	
               
      

            	
              21.5.2

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

               

            

    

    
      
         

      

      
        43

        
          

        

      

      
         

      

    

    SCHEDULE
1: Conditions Precedent and Subsequent

     

    Part
1: Conditions precedent

    1           Security
Parties

     

    
      	
               
      

            	
              (a)

            	
              Constitutional Documents
      Copies of the constitutional documents of each Security Party
      together with such other evidence as the Lender may reasonably require
      that each Security Party is duly incorporated in its country of
      incorporation and remains in existence with power to enter into, and
      perform its obligations under, the Relevant Documents to which it is or is
      to become a party.

               

            

    

    
      	
               
      

            	
              (b)

            	
              Certificates of good standing
      A certificate of good standing in respect of each Security Party
      (if such a certificate can be obtained).

               

            

    

    
      	
               
      

            	
              (c)

            	
              Board resolutions A copy
      of a resolution of the board of directors of each Security
      Party:

               

            

    

    
      	
               
      

            	
              (i)

            	
              approving
      the terms of, and the transactions contemplated by, the Relevant Documents
      to which it is a party and resolving that it execute those Relevant
      Documents: and

               

            

    

    
      	
               
      

            	
              (ii)

            	
              authorising
      a specified person or persons to execute those Relevant Documents (and all
      documents and notices to be signed and/or despatched under those
      documents) on its behalf.

               

            

    

    
      	
               
      

            	
              (d)

            	
              Shareholder resolutions
      A copy of a resolution signed by all the holders of the issued
      shares in each Security Party, approving the terms of, and the
      transactions contemplated by, the Relevant Documents to which that
      Security Party is a party.

               

            

    

    
      	
               
      

            	
              (e)

            	
              Officer's certificates A
      certificate of a duly authorised officer of each Security Party certifying
      that each copy document relating to it specified in this Part I of
      Schedule I is correct, complete and in full force and effect as at a date
      no earlier than the date of this Agreement and setting out tiro names of
      the directors, officers and shareholders of that Security Party and the
      proportion of shares held by each
      shareholder.

               

            

    

    
      	
               
      

            	
              (f)

            	
              Evidence of registration
      Where such registration is required or permitted under the laws of
      the relevant jurisdiction, evidence that the names of the directors,
      officers and shareholders of each Security Party are duly registered in
      the companies registry or other registry in the country of incorporation
      of that Security Party.

            

    

    
      
         

      

      
        44

        
          

        

      

      
         

      

    

    officers
and shareholders of each Security Party are duly registered in the companies
registry or other registry in the country of incorporation of that Security
Party.

     

    
      	
               
      

            	
              (g)

            	
              Powers of attorney The
      notarially attested and legalised power of attorney of each Security Party
      under which any documents are to be executed or transactions undertaken by
      that Security Party.

               

            

    

    2           Security
and related documents

     

    
      	
               
      

            	
              (a)

            	
              Vessel documents
      Photocopies, certified as true, accurate and complete. by a
      director or the secretary or the legal advisers of the Borrower,
      of:

               

            

    

    
      	
               
      

            	
              (i)

            	
              the
      MOA;

               

            

    

    
      	
               
      

            	
              (ii)

            	
              such
      documents as the Lender may reasonably require to evidence the nomination
      of the Borrower as purchaser of the Vessel pursuant to the
      MOA;

               

            

    

    
      	
               
      

            	
              (iii)

            	
              the
      bill of sale transferring title in the Vessel to the Borrower free of all
      encumbrances, maritime liens or other debts;

               

            

    

    
      	
               
      

            	
              (iv)

            	
              the
      protocol of delivery and acceptance evidencing the unconditional physical
      delivery of the
      Vessel by the Seller to the Borrower pursuant to the MOA;

               

            

    

    
      	
               
      

            	
              (v)

            	
              any
      charterparty or other contract of employment of the Vessel which will be
      in force on the Drawdown Date including, without limitation, the
      Charter;

               

            

    

    
      	
               
      

            	
              (vi)

            	
              the
      Management Agreement;

               

            

    

    
      	
               
      

            	
              (vii)

            	
              the
      Vessel's current Safety Construction, Safety Equipment, Safety Radio and
      Load Line Certificates;

               

            

    

    
      	
               
      

            	
              (viii)

            	
              the
      Vessel's current Certificate of Financial Responsibility issued pursuant
      to the United States Oil Pollution Act 1990;

               

            

    

    
      	
               
      

            	
              (ix)

            	
              the
      Vessel's current SMC;

               

            

    

    
      	
               
      

            	
              (x)

            	
              the
      ISM Company's current DOC;

               

            

    

    
      	
               
      

            	
              (xi)

            	
              the
      Vessel's current ISSC;

               

            

    

    
      
         

      

      
        45

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (xii)

            	
              the
      Vessel's current IAPPC;

               

            

    

    
      	
               
      

            	
              (xiii)

            	
              the
      Vessel's current Tonnage Certificate;

               

            

    

    
      	
               
      

            	
              (xiv)

            	
              the
      Borrower's current Carrier Initiative Agreement with the United States'
      Customs Service;

               

            

    

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

     

    
      	
               
      

            	
              (b)

            	
              Evidence of Seller's title
      Certificate of ownership and encumbrance (or equivalent) issued by
      the Registrar of Ships (or equivalent official) of the Vessel's current
      flag confirming that the Vessel is owned by the Seller and free of
      registered Encumbrances and an undertaking by the Seller to delete the
      Vessel from its current flag.

               

            

    

    
      	
               
      

            	
              (c)

            	
              Evidence of Borrower's title
      Evidence that on the Drawdown Date (i) the Vessel will be at least
      provisionally registered under the flag stated in Recital (A) in the
      ownership of the Borrower and (ii) the Mortgage will be capable of being
      registered against the Vessel with first priority.

               

            

    

    
      	
               
      

            	
              (d)

            	
              Evidence of insurance
      Evidence that the Vessel is insured in the manner required by the
      Security .Documents and that letters of undertaking wilt be issued in the
      manner required by the Security Documents, together with (if required by
      the Lender) the written approval of the Insurances by an insurance adviser
      appointed by the Lender and at the expense of the Borrower.

               

            

    

    
      	
               
      

            	
              (e)

            	
              Confirmation of class A
      Certificate of Confirmation of Class for hull and machinery confirming
      that the Vessel is classed with the highest class applicable to vessels of
      her type with Lloyds Register or such other classification society as may
      be acceptable to the Lender free of recommendations affecting
      class.

               

            

    

    
      	
               
      

            	
              (f)

            	
              Instruction to classification
      society A letter of instruction from the Borrower to the Vessel's
      classification society.

               

            

    

    
      	
               
      

            	
              (g)

            	
              Survey report A report
      by a surveyor instructed by the Lender to inspect the Vessel confirming
      that the condition of the Vessel is in all respects acceptable to the
      Lender and at the expense of the Borrower.

               

            

    

    
      
         

      

      
        46

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (h)

            	
              Valuation A valuation of
      the Vessel addressed to the Lender from an independent broker acceptable
      to the Lender certifying a value for the Vessel, assessed in such manner
      as the Lender may require in its discretion, acceptable to the Lender and
      at the expense of the Borrower,

               

            

    

    
      	
               
      

            	
              (i)

            	
              Security Documents The
      Security Documents, together with all other documents required by any of
      them, including, without limitation, all notices of assignment and/or
      charge and evidence that those notices will be duly acknowledged by the
      recipients.

               

            

    

    
      	
               
      

            	
              (i)

            	
              Mandates Such duly
      signed forms of mandate, and/or other evidence of the opening of the
      Earnings Account, as the Lender may require.

               

            

    

    
      	
               
      

            	
              (k)

            	
              Managers' confirmation
      The written confirmation of the Managers that, throughout the
      Facility Period unless otherwise agreed by the Lender, they will remain
      the commercial and technical managers of the Vessel and that they will
      not, without the prior written consent of the Lender, sub-contract or
      delegate the commercial or technical management of the Vessel to any third
      party and confirming in terms acceptable to the Lender that, following the
      occurrence of an Event of Default, all claims of the Managers against the
      Borrower shall be subordinated to the claims of the Lender under the
      Finance Documents.

               

            

    

    
      	
               
      

            	
              (1)

            	
              No disputes The written
      confirmation of the Borrower that there is no dispute under any of the
      Relevant Documents as between the parties to any such
      document.

               

            

    

    
      	
               
      

            	
              (m)

            	
              Other Relevant Documents
      Copies of each of the Relevant Documents not otherwise comprised in
      the documents listed in this Part I of Schedule I.

               

            

    

    3           Legal
opinions

     

    
      	
               
      

            	
              (a)

            	
              If
      a Security Party is incorporated in a jurisdiction other than England and
      Wales or if any Finance Document is governed by the laws of a jurisdiction
      other than England and Wales, a legal opinion of the legal advisers to the
      Lender in each relevant jurisdiction, substantially in the form or forms
      provided to the Lender prior to signing this Agreement or confirmation
      satisfactory to the Lender that such an opinion will be
    given.

            

    

    

    
      
         

      

      
        47

        
          

        

      

      
         

      

    

    4           Other
documents and evidence

     

    
      	
               
      

            	
              (a)

            	
              Drawdown Notice A duly
      completed Drawdown Notice.

               

            

    

    
      	
               
      

            	
              (b)

            	
              Process agent Evidence
      that any process agent referred to in Clause 21.5 (Service of process)
      and any process agent appointed under any other Finance Document
      has accepted its appointment.

               

            

    

    
      	
               
      

            	
              (c)

            	
              Other authorisations A copy of any other
      consent, licence, approval, authorisation or other document, opinion or
      assurance which the Lender considers to be necessary or desirable (if it
      has notified the Borrower accordingly) in connection with the entry into
      and performance of the transactions contemplated by any of the Relevant
      Documents or for the validity and enforceability of any of the Relevant
      Documents.

               

            

    

    
      	
               
      

            	
              (d)

            	
              Financial statements
      Copies of the Original Financial Statements.

               

            

    

    
      	
               
      

            	
              (e)

            	
              Fees Evidence that the
      fees, costs and expenses then due from the Borrower under Clause 8 (Indemnities) and
      Clause 9 (Fees)
      have been paid or will be paid by the Drawdown Date.

               

            

    

    
      	
               
      

            	
              (f)

            	
              "Know your customer" documents
      Such documentation and other evidence as is reasonably requested by
      the. Lender in order for the Lender to comply with all necessary "know
      your customer" or similar identification procedures in relation to the
      transactions contemplated in the Finance
  Documents.

            

    

    
      
         

      

      
        48

        
          

        

      

      
         

      

    

    Part II:
Conditions subsequent

     

     

    
      	
              1

            	
              Evidence of Borrower's title
      Certificate of ownership and encumbrance (or equivalent) issued by
      the Registrar of Ships (or equivalent official) of the flag stated in
      Recital (A) confirming that (a) the Vessel is permanently registered under
      that flag in the ownership of the Borrower, (b) the Mortgage has been
      registered with first priority against the Vessel and (c) there are no
      further Encumbrances registered against the Vessel.

               

            

    

    
      	
              2

            	
              Deletion by Seller
      Evidence that the Vessel has been deleted from its current
      flag.

               

            

    

    
      	
              3

            	
              Letters of undertaking
      Letters of undertaking in respect of the Insurances as required by
      the Security Documents together with copies of the relevant policies or
      cover notes or entry certificates duly endorsed with the interest of the
      Lender.

               

            

    

    
      	
              4

            	
              Acknowledgements of notices
      Acknowledgements of all notices of assignment and/or charge given
      pursuant to the Security Documents.

               

            

    

    
      	
              5

            	
              Legal opinions Such of
      the legal opinions specified in Part I of this Schedule 1 as have not
      already been provided to the Lender.

               

            

    

    
      	
              6

            	
              Companies Act registrations
      Evidence that the prescribed particulars of the Security Documents
      have been delivered to the Registrar of Companies within the statutory
      time limit.

               

            

    

    
      	
              7

            	
              Master's receipt The
      master's receipt for the Mortgage.

               

            

    

    
      	
              8

            	
              Chartering agreement A
      copy of the Charter in accordance with the requirements of Clause
      12.4.9.

            

    

    
      
         

      

      
        49

        
          

        

      

      
         

      

    

    SCHEDULE
3: Form of Drawdown Notice

     

    To
:            Alpha Bank A.E.

     

    From:
JAPAN III SHIPPING COMPANY
LIMITED

     

    2007

     

    Dear
Sirs

     

    Drawdown
Notice

     

    We refer to the Loan
Agreement
dated               2007
made between ourselves and yourselves (the "Agreement").

     

    Words and
phrases defined in the Agreement have the same meaning when used in this
Drawdown Notice.

     

    Pursuant
to Clause 4 of the Agreement, we irrevocably request that you advance the sum of
forty eight million Dollars ($48,000,000) to us
on                          
2007, which is a Business Day, by paying the amount of the advance in accordance
with the MOA.

     

    We
warrant that the representations and warranties contained in Clause 11.1 of the
Agreement are true and correct at the date of this Drawdown Notice and will be
true and correct
on                       
2007, that no Default has occurred and is continuing, and that no Default will
result from the advance of the sum requested in this Drawdown
Notice.

     

    We select
the period of [     ] months as the first Interest
Period.

     

     

    Yours
faithfully

    

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

    For and
on behalf of

    JAPAN
III SHIPPING COMPANY LIMITED

    
      
         

      

      
        50

        
          

        

      

      
         

      

    

    SCHEDULE
4: Form of Compliance Certificate

     

    To:             Alpha Bank A.E.

     

    From:
JAPAN III SHIPPING COMPANY
LIMITED

     

    Dated:

     

    Dear
Sirs

     

    Japan III Shipping Company Limited -
[             ]
Loan Agreement
dated [                    
] 2007 (the "Agreement")

     

    We refer
to the Agreement. This is a Compliance Certificate. Terms defined in the
Agreement have the same meaning when used in this Compliance Certificate unless
given a different meaning in this Compliance Certificate.

     

    We
confirm that: [Insert details of covenants to be certified]

     

    [We
confirm that no Default is continuing.]*

     

     

    
      	 
      	 
      	 
      	 
      
	
              Signed:

            	 
      	 
      	 
      
	 
      	
              Director

            	 
      	
              Director

            
	 
      	
              of

            	 
      	
              of

            
	 
      	
              JAPAN
      III SHIPPING COMPANY LIMITED

            	 
      	
              JAPAN
      III SHIPPING COMPANY LIMITED

            
	 
      	 
      	 
      	 
      

    

    

    

    

      

    

      
      
        	
                *

              	
                If
      this statement cannot be made, the certificate should identify any Default
      that is continuing and the steps, if any, being taken to remedy
      it.

              

      

    

    
      
         

      

      
        51

        
          

        

      

      
         

      

    

    IN WITNESS of which the
parties to this Agreement have executed this Agreement the day and year first
before written.

     

    
      	
              SIGNED by Theodora
      Hitropetrou

            	
              )

            	 
      
	
              duly
      authorised for and on behalf

            	
              )

            	
              /s/
      Theodora Hitropetrou

            
	
              of
      JAPAN III SHIPPING
      COMPANY

            	
              )

            	 
      
	
              LIMITED

            	
              )

            	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	
              SIGNED Constantine
      Flokos, Grigorios Kondilis

            	
              )

            	 
      
	
              duly
      authorised for and on behalf

            	
              )

            	
              /s/
      Constantine Flokos

            
	
              of
      ALPHA BANK
      A.E.

            	
              )

            	
              /s/
      Grigorios Kondilis

            
	 
      	 
      	 
      

    

    

    
      	 
      

    

    SK 23116
0005 1007425

    
      
         

      

      
        52

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