ASSIGNMENT OF INSURANCES

This ASSIGNMENT OF INSURANCES, dated as of November 16, 2006, is entered into by and between [Mortgagor], a Panamanian company duly organized and existing under the laws of the Republic of Panama (the “Assignor”), and WILMINGTON TRUST COMPANY, as trustee under the Indenture referred to below (acting in such capacity, together with its successors and assigns, the “Trustee”).

Recitals

A. Britannia Bulk plc, a company registered in England and Wales (the “Company”), as issuer, and the Trustee, as trustee for the benefit of the holders of the Notes (as such term is hereinafter defined), are parties to that certain Indenture dated as of November 16, 2006 (said Indenture, as amended, modified, supplemented, renewed, restated or replaced, in whole or part, from time to time, being herein called the “Indenture”), pursuant to which the Company will issue notes in an aggregate principal sum of US$185,000,000 (One Hundred Eighty-Five Million United States Dollars) (as amended, modified, supplemented, renewed, restated or replaced, in whole or part, from time to time, the “Notes”).

B. The Assignor is a wholly-owned subsidiary of the Company. Accordingly, the Assignor and the Company share a common interest as members of a group of companies that will derive substantial direct and indirect economic and other benefits from the issuance of the Notes under the Indenture.

C. The Assignor has agreed to execute and deliver to the Trustee on behalf of the holders of the Notes this Assignment of Insurances in order to secure the payment in full of the Notes and other Note Obligations (as such term is hereinafter defined).

Agreement

In consideration of the premises herein and to induce the holders of the Notes to enter into the Indenture and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

	ARTICLE I
	DEFINITIONS

Section 1.01 Definitions.

As used herein:

(a) terms defined above have the meanings given such terms above;

(b) unless otherwise defined herein, terms defined in the Indenture and used herein have the meanings given to them in the Indenture;

(c) unless otherwise defined herein, terms defined in the Uniform Commercial Code (as defined herein) and used herein have the same meanings herein as specified therein;

provided, however, that if a term is defined in Article 9 of the Uniform Commercial Code differently than in another Article of the Uniform Commercial Code, then such term has the meaning specified in Article 9; and

(d) the following terms have the following meanings:

“Assignment” means this Assignment of Insurances, as the same may be amended, supplemented or otherwise modified from time to time.

“Collateral” has the meaning given such term in Section 2.01.

“Insurances” has the meaning given such term in Section 2.01.

“Lien” means any mortgage, pledge, security interest, encumbrance, lien or charge of any kind (including any conditional sale or other title retention agreement or lease in the nature thereof, a ship or vessel mortgage or encumbrance, any option or other agreement to sell or give a security interest in any property).

“Note Documents” means, collectively, the Notes, the Indenture, and the Security Documents.

“Note Obligations” means (a) all principal, interest, premium, fees, reimbursements, indemnifications, and other amounts now or hereafter owed by any Obligor under the Note Documents; (b) all amounts now or hereafter owed by the Assignor under this Assignment and the other Security Documents; and (c) any increases, extensions, renewals, replacements, and rearrangements of the foregoing obligations under any amendments, supplements, and other modifications of the agreements creating the foregoing obligations, in each case, whether direct or indirect, absolute or contingent.

“Obligor” means each of the Company, the Assignor, any Person that now is or hereafter becomes a guarantor of the Notes, and any other Person that has granted a Lien upon any of such Person’s property as security for the Note Obligations.

“Security Documents” means this Assignment and any other security agreements, pledge agreements, collateral assignments, mortgages, vessel mortgages, marine mortgages, deeds of covenants, assignments of earnings, assignments of insurances, share pledges, collateral agency agreements, intercreditor agreements, deeds of trust or other grants or transfers for security executed and delivered by the Assignor, the Company and/or any other Obligor creating, or purporting to create, a Lien upon any Collateral in favor of the Trustee for the benefit of the holders of the Notes, in each case as amended, modified, supplemented, renewed, restated or replaced, in whole or part, from time to time.

“Uniform Commercial Code” means the Uniform Commercial Code as from time to time in effect in the State of New York; provided, however, that, in the event that, by reason of mandatory provisions of law, any of the attachment, perfection or priority of the Trustee’s security interest in any Collateral is governed by the Uniform Commercial Code as in effect in a jurisdiction other than the State of New York, the term “Uniform Commercial Code” shall mean the Uniform Commercial Code as in effect in such other jurisdiction for purposes of the

provisions hereof relating to such attachment, perfection, the effect thereof or priority and for purposes of definitions related to such provisions.

“Vessel” means the vessel described in Exhibit A.

Section 1.02 Rules of Construction.

Section 1.04 of the Indenture is hereby incorporated herein by reference and shall apply to this Assignment, mutatis mutandis.

	ARTICLE II
	ASSIGNMENT

Section 2.01 Assignment.

As collateral security for the prompt and complete payment and performance when due (whether at the stated maturity, by acceleration or otherwise) of the Note Obligations, the Assignor does hereby assign, transfer and convey to the Trustee, its successors and assigns, and does hereby grant to the Trustee, its successors and assigns, a first priority continuing security interest in, lien on and right of setoff against, all of the following property, wherever located, whether now owned or at any time hereafter acquired by the Assignor or in which the Assignor now has or at any time in the future may acquire any right, title or interest (collectively, the “Collateral”): all policies and contracts of insurance, including, without limitation, the Assignor’s rights under all entries in any protection and indemnity or war risks associations or clubs, which are from time to time taken out by or for the Assignor in respect of the Vessel, its hull, machinery, freights, disbursements, profits or otherwise, and all the benefits thereof and all other rights of the Assignor in respect thereof, including, without limitation, all claims of whatsoever nature, as well as return premiums (all of which are herein collectively called the “Insurances”), and in and to all moneys and claims for moneys in connection therewith and all proceeds and products of all of the foregoing.

In addition to the rights granted to the Trustee, the Assignor hereby further transfers and assigns to the Trustee by way of security any and all such Liens, financing statements or similar interests of the Assignor attributable to its interest in the Collateral arising under or created by any statutory provision, judicial decision or otherwise.

Section 2.02 Payments.

During the continuance of an Event of Default, the Trustee shall be entitled to receive all payments of Insurances in respect of the Vessel payable to the Assignor and assigned hereby. The Assignor shall cause all sums so payable to the Assignor and assigned hereby to be paid directly to the Trustee to an account designated by the Trustee for such purpose. THE ASSIGNOR AGREES TO INDEMNIFY AND HOLD HARMLESS ANY AND ALL PARTIES (INCLUDING FOR SUCH PERSONS’ OWN ORDINARY NEGLIGENCE) MAKING PAYMENTS TO THE TRUSTEE UNDER THE ASSIGNMENT CONTAINED HEREIN, AGAINST ANY AND ALL LIABILITIES, ACTIONS, CLAIMS, JUDGMENTS, COSTS, CHARGES AND ATTORNEYS’ FEES RESULTING FROM THE DELIVERY OF SUCH PAYMENTS TO THE TRUSTEE, AND ALL SUCH

AMOUNTS TOGETHER WITH SUCH INTEREST THEREON SHALL BE PART OF THE NOTE OBLIGATIONS. THE INDEMNITY AGREEMENT CONTAINED IN THE PREVIOUS SENTENCE IS MADE FOR THE DIRECT BENEFIT OF AND SHALL BE ENFORCEABLE BY ALL SUCH PERSONS. Should the Trustee bring suit against any third party for collection of any amount or sums included within this Assignment (and the Trustee shall have the right to bring any such suit), it may sue either in its own name, in the names of the holders of the Notes or in the name of the Assignor, or any of the foregoing. As used in this Section 2.02, the term Trustee shall collectively mean and include not only the Trustee described herein but also any holder of a Note, and any respective Persons owned or controlled by or affiliated with the Trustee.

Section 2.03 Performance under Insurances; No Duty of Inquiry.

The Assignor hereby undertakes that it shall punctually perform all of its obligations under all Insurances to which it is a party pertaining to the Vessel. It is hereby expressly agreed that, anything contained herein to the contrary notwithstanding, the Assignor shall remain liable under all Insurances pertaining to the Vessel to perform the obligations assumed by it thereunder, and the Trustee shall have no obligation or liability of any nature whatsoever under any such Insurances (including, without limitation, any obligation or liability with respect to the payment of premiums, calls or assessments) by reason of, or arising out of, this Assignment, nor shall the Trustee be required to assume or be obligated in any manner to perform or fulfill any obligation of the Assignor under or pursuant to any such Insurances. Nothing in this Assignment shall be deemed or construed to create a delegation to or assumption by the Trustee, of the duties and obligations of the Assignor under any agreement or contract relating to the Vessel or the Insurances. All of the parties to any such Insurances or contracts shall continue to look to the Assignor for performance of all covenants and other obligations and the satisfaction of all representations and warranties of the Assignor thereunder, notwithstanding the assignment herein made or the exercise by the Trustee of any of its rights hereunder or under applicable law. The Trustee shall not be required to make any payment or make any inquiry as to the nature or sufficiency of any payment received by the Trustee, or, unless and until indemnified to its satisfaction, to present or file any claim, or to take any other action to collect or enforce the payment of any amounts which may have been assigned to it or to which it may be entitled hereunder or pursuant hereto at any time or times.

Section 2.04 No Modification of Note Obligations.

Nothing herein contained shall modify or otherwise alter the obligation of the Assignor to make prompt payment of all Note Obligations, including principal and interest owing thereon, when and as the same become due regardless of whether the Collateral is sufficient to pay the same and the rights provided in accordance with the foregoing assignment provision shall be cumulative of all other security of any and every character now or hereafter existing to secure payment of the Note Obligations. Nothing in this Assignment is intended to be an acceptance of collateral in satisfaction of or in discharge of the Note Obligations.

Section 2.05 Affirmative Covenants.

Until all of the Note Obligations have been fully and finally paid and the Indenture and the other Note Documents have been terminated, the Assignor hereby covenants and agrees with the Trustee to:

(a) do, cause to be done or permit to be done each and every act or thing which the Trustee may from time to time reasonably require to be done for the purpose of enforcing the Trustee’s rights under this Assignment and the Assignor will allow its name to be used as and when required by the Trustee for that purpose; and

(b) forthwith give notice in the form set out in Exhibit D attached hereto, or cause its insurance brokers to give notice, of this Assignment to all insurers, underwriters, clubs and associations providing insurance in connection with the Vessel and procure that such notice is endorsed on all the policies and entries of insurances in respect of the Vessel and are endorsed to provide that the Trustee shall be named in a manner such that it is afforded the stature of additional insured, as its interest may appear, and the Trustee shall be named loss payee.

Section 2.06 Negative Pledge.

The Assignor does hereby warrant and represent that it has not assigned or pledged, and hereby covenants that it will not assign or pledge so long as this Assignment shall remain in effect, any of its right, title or interest in the whole or any part of the Collateral hereby assigned to anyone other than the Trustee, and it will not take or omit to take any action, the taking or omission of which might result in an alteration or impairment of the rights hereby assigned or any of the rights created in this Assignment.

Section 2.07 Notices; Loss Payable Clauses.

(a) All Insurances, except entries in protection and indemnity associations or clubs or insurances effected in lieu of such entries, relating to the Vessel shall contain a loss payable and notice of cancellation clause in the form of Exhibit B hereto or in such other form as the Trustee may agree; and

(b) All entries in protection and indemnity associations or clubs or insurances effected in lieu of such entries relating to the Vessel shall contain a loss payable and notice of cancellation clause in the form of Exhibit C hereto or in such other form as the Trustee may agree.

Section 2.08 Attorney-in-Fact.

The Trustee shall not be liable for any delay, neglect, or failure to effect collection of any proceeds or to take any other action in connection therewith or hereunder; but the Trustee shall have the right, at its election, in the name of the Assignor or otherwise, to prosecute and defend any and all actions or legal proceedings deemed advisable by the Trustee in order to collect such funds and to protect the interests of the Trustee and the holders of the Notes, and/or the Assignor, with all reasonable costs, expenses and attorneys’ fees incurred in connection therewith being paid by the Assignor. The Assignor does hereby irrevocably appoint and constitute the Trustee

as the Assignor’s true and lawful attorney-in-fact with full power (in the name of the Assignor or otherwise), to ask, require, demand, receive, compound, and give acquittance for any and all moneys and claims for moneys assigned hereby, to endorse any checks or other instruments or orders in connection therewith, to file any claims or take any action or institute any proceedings which the Trustee may deem to be necessary or advisable in the premises, and to file, without the signature of the Assignor, any and all financing statements or similar documents, other instruments, documents or agreements or renewals thereof arising from this Assignment which the Trustee may deem to be reasonably necessary or advisable in order to perfect or maintain the security interest granted hereby; provided, however, the Trustee shall not take any action pursuant to the power granted by this Section 2.08 unless an Event of Default shall have occurred and be continuing. Such appointment of the Trustee as attorney-in-fact is irrevocable and is coupled with an interest. Nothing contained in this Section 2.08 shall be deemed or considered as creating any obligation on the part of the Trustee to take any of the actions described herein.

Section 2.09 Application of Proceeds.

All moneys collected or received by the Trustee pursuant to this Assignment shall be applied as provided in Section 6.10 of the Indenture.

Section 2.10 Remedies Cumulative and Not Exclusive; No Waiver.

Each and every right, power and remedy given herein, in the Indenture and the other Note Documents to the Trustee shall be cumulative and shall be in addition to every other right, power and remedy of the Trustee now or hereafter existing at law, in equity or by statute, and each and every right, power and remedy, whether herein given or otherwise existing, may be exercised from time to time, in whole or in part, and as often and in such order as may be deemed expedient by the Trustee, and the exercise or the commencement of the exercise of any right, power or remedy shall not be construed to be a waiver of the right to exercise at the same time or thereafter any other right, power or remedy. Without limitation of the foregoing, during the continuation of an Event of Default, the Trustee shall have the rights and remedies of a secured party under the Uniform Commercial Code. No delay or omission by the Trustee in the exercise of any right or power in the pursuance of any remedy accruing upon any breach or default by the Assignor shall impair any such right, power or remedy or be construed to be a waiver of any such right, power or remedy or to be an acquiescence therein; nor shall the acceptance by the Trustee of any security or of any payment of or on account of any of the amounts due from the Assignor to the Trustee and maturing after any breach or default or of any payment on account of any past breach or default be construed to be a waiver of any right to take advantage of any future breach or default or of any past breach or default not completely cured thereby.

Section 2.11 Invalidity.

If any provision of this Assignment shall at any time for any reason be declared or decided to be invalid, void or otherwise inoperative by a court of competent jurisdiction, such declaration or decision shall not affect the validity of any other provision or provisions of this Assignment, or the validity of this Assignment as a whole. In the event that by reason of any law or regulation in force or to become in force, or by reason of a ruling of any court of competent jurisdiction, or

by any other reason whatsoever, this Assignment is rendered either wholly or partly defective, the Assignor shall furnish the Trustee with an alternative assignment or security and do all such other acts as are reasonably required in order to ensure and give effect to the full intent of this Assignment.

Section 2.12 Continued Security.

It is declared and agreed that the security created by this Assignment shall be held by the Trustee as a continuing security for the payment of all moneys which may at any time and from time to time be or become payable by the Assignor in connection with the Note Obligations and that the security so created shall not be satisfied by any intermediate payment or satisfaction of any part of the amount hereby secured and that the security so created shall be in addition to and shall not in any way be prejudiced or affected by any collateral or other security now or hereafter held by the Trustee for all or any part of the moneys hereby secured.

Section 2.13 Termination.

The Trustee shall terminate this Assignment and release the Collateral only in compliance with the provisions of Section 10.03 of the Indenture and the relevant provisions of this Agreement. Except as may be expressly applicable pursuant to Section 9-620 of the UCC, no action taken or omission to act by the Trustee or the holders of the Notes hereunder shall be deemed to constitute a retention of the Collateral in satisfaction of the Note Obligations or otherwise to be in full satisfaction of the Note Obligations, and the Note Obligations shall remain in full force and effect, until the Trustee and the holders of the Notes shall have applied payments (including, without limitation, collections from Collateral) towards the Note Obligations in the full amount then outstanding or until such subsequent time as is provided in the Indenture. If this Assignment has terminated and any payment actually received by the Trustee is subsequently invalidated, rescinded, declared to be fraudulent or preferential or set aside and is required to be repaid under any bankruptcy or other similar law, then this Assignment shall be reinstated and its provisions will continue in effect for the benefit of the Trustee and the Noteholders until such amounts are fully and finally paid in cash.

Section 2.14 Notices.

Any notices or communications hereunder shall be made in accordance with Section 12.02 of the Indenture.

Section 2.15 Waiver; Amendment.

No amendment, modification, or waiver of any provision of this Assignment, and no consent with respect to any departure of the Assignor therefrom, shall be effective unless the same is in writing and conforms to the requirements set forth in Article IX of the Indenture.

Section 2.16 Further Assurances.

The Assignor agrees that at any time and from time to time, upon the written request of the Trustee, the Assignor will promptly and duly execute and deliver any and all such further instruments and documents as the Trustee may deem reasonably necessary in obtaining the full

benefits of this Assignment (including, without limitation, in connection with the perfection of the security interest created hereby) and of the rights and powers herein granted.

Section 2.17 Governing Law.

This Assignment shall be governed by and construed in accordance with, the internal laws of the State of New York.

	[MORTGAGOR]


	By:
	Name:
	Title:

	WILMINGTON TRUST COMPANY, as
	Trustee


	By:
	Name:
	Title:

Name of Vessel	:

Permanent Patent Number	:

Call Sign	:

Registered Length	:

Registered Breadth	:

Registered Depth	:

Gross Tonnage	:

Net Tonnage	:

	[MORTGAGOR]


	By:
	Name:
	Title:

EXHIBIT C

LOSS PAYABLE CLAUSE