<SUBMISSION>
<ACCESSION-NUMBER>0000950135-08-007102
<TYPE>10-Q
<PUBLIC-DOCUMENT-COUNT>7
<PERIOD>20080930
<FILING-DATE>20081110
<DATE-OF-FILING-DATE-CHANGE>20081110
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>Arlington Tankers Ltd.
<CIK>0001305507
<ASSIGNED-SIC>4412
<IRS-NUMBER>000000000
<STATE-OF-INCORPORATION>D0
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>10-Q
<ACT>34
<FILE-NUMBER>000-53296
<FILM-NUMBER>081176285
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>FIRST FLOOR, THE HAYWARD BUILDING
<STREET2>22 BERMUDIANA ROAD
<CITY>HAMILTON
<STATE>D0
<ZIP>HM11
<PHONE>441-292-7405
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>FIRST FLOOR, THE HAYWARD BUILDING
<STREET2>22 BERMUDIANA ROAD
<CITY>HAMILTON
<STATE>D0
<ZIP>HM11
</MAIL-ADDRESS>
</FILER>
<DOCUMENT>
<TYPE>10-Q
<SEQUENCE>1
<FILENAME>b72632ate10vq.htm
<DESCRIPTION>ARLINGTON TANKERS LTD.
<TEXT>
<HTML>
<HEAD>
<TITLE>e10vq</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 1pt solid black; font-size: 1pt">&nbsp;</DIV>




<DIV align="center" style="font-size: 14pt; margin-top: 12pt"><B>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION</B>
</DIV>

<DIV align="center" style="font-size: 12pt"><B>Washington, D.C. 20549</B>
</DIV>

<DIV align="center" style="font-size: 18pt; margin-top: 12pt"><B>FORM 10-Q</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">(Mark One)
</DIV>

<DIV align="center">
<TABLE cellspacing="0" border="0" cellpadding="0" width="100%" style="font-size: 12pt">
<TR style="font-size: 6pt">
    <TD width="7%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="88%">&nbsp;</TD>
</TR>
<TR valign="top">
    <TD align="center"><FONT face="Wingdings">&#254;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><B>QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES AND EXCHANGE ACT OF 1934.</B></TD>
</TR>
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 12%"><B><B>For the quarterly period ended September&nbsp;30, 2008</B>
</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>OR</B></DIV>


<DIV align="center">
<TABLE cellspacing="0" border="0" cellpadding="0" width="100%" style="font-size: 12pt">
<TR style="font-size: 6pt">
    <TD width="7%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="88%">&nbsp;</TD>
</TR>
<TR valign="top">
    <TD align="center"><FONT face="Wingdings">&#111;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><B>TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES AND EXCHANGE ACT OF 1934.</B></TD>
</TR>
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 12%"><B><B>For the period from &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; to </B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>Commission file number: 001-32343</B></DIV>

<DIV align="center" style="font-size: 24pt; margin-top: 12pt"><B>Arlington Tankers Ltd.</B>
</DIV>

<DIV align="center" style="font-size: 10pt"><I>(Exact name of Registrant as specified in its charter)</I></DIV>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="47%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top"><B>Bermuda</B><BR>
<I>(Jurisdiction of incorporation or organization)</I>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>98-0460376</B><BR>
<I>(I.R.S. Employer Identification No.)</I></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>First Floor, The Hayward Building<BR>
22 Bermudiana Road<BR>
Hamilton HM 11, Bermuda</B><BR>
<I>(Address of principal executive offices)</I></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt">Registrant&#146;s telephone number, including area code: <B>(441)&nbsp;292-4456</B></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt">Former name, former address and former fiscal year, if changes since last report: <B>Not applicable.</B></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Indicate by check mark whether the registrant (1)&nbsp;has filed all reports required to be filed by
Section&nbsp;13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12&nbsp;months (or for
such shorter period that the registrant was required to file such reports), and (2)&nbsp;has been
subject to such filing requirements for the past 90&nbsp;days.
Yes <FONT face="Wingdings">&#254;</FONT>&nbsp;&nbsp;&nbsp;No <FONT face="Wingdings">&#111;</FONT>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See the definitions of &#147;large accelerated filer,&#148; &#147;accelerated filer&#148; and &#147;smaller reporting company&#148; in Rule 12b-2 of the Exchange Act. (Check one):</DIV>

<TABLE width="100%" style="font-size: 10pt; margin-top: 0pt"><TR><TD>Large accelerated filer&nbsp;<FONT face="Wingdings">&#111;</FONT></TD><TD align="center">Accelerated filer&nbsp;<FONT face="Wingdings">&#254;</FONT>&nbsp;</TD><TD align="center"><br>Non-accelerated filer&nbsp;<FONT face="Wingdings">&#111;</FONT><BR>(Do not check if a smaller reporting company)</TD><TD align="right">Smaller reporting company&nbsp;<FONT face="Wingdings">&#111;</FONT></TD></TR>
</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Indicate by check mark whether the registrant is a shell company (as defined in Rule&nbsp;12b-2 of the
Exchange Act)
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt">Yes<FONT face="Wingdings">&#111;</FONT>&nbsp;&nbsp;&nbsp;No <FONT face="Wingdings">&#254;</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>THE
NUMBER OF SHARES OUTSTANDING OF EACH OF THE ISSUER&#146;S CLASSES OF
COMMON STOCK, AS OF NOVEMBER 7, 2008: </B>Common Stock, par value $0.01 per share: 15,500,000 shares
</DIV>


<DIV style="width: 100%; border-bottom: 1pt solid black; margin-top: 10pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">





<DIV align="left">
<!-- TOC -->
</DIV>
<DIV align="left">
<A name="tocpage"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARLINGTON TANKERS LTD. AND SUBSIDIARIES<BR>
INDEX</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="86%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="86%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>PART I:</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>FINANCIAL INFORMATION</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#102"><B>ITEM 1.</B></A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><A href="#102"><B>Financial Statements</B></A></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">3</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><A href="#103">Condensed Consolidated Balance Sheets as of September 30, 2008 (unaudited) and December 31, 2007</A></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">3</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><A href="#104">Condensed Consolidated Statements of Operations (unaudited) for the three and nine months ended</A></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="margin-left:15px"><A href="#104">September 30, 2008 and 2007</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">4</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><A href="#105">Condensed Consolidated Statement of Shareholders&#146; Equity (unaudited) for the nine months ended</A></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="margin-left:15px"><A href="#105">September 30, 2008</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">5</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><A href="#106">Condensed Consolidated Statements of Cash Flows (unaudited) for the nine months ended September</A></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="margin-left:15px"><A href="#106">30, 2008 and 2007</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">6</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><A href="#107">Notes to Condensed Consolidated Financial Statements (unaudited)</A></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">7</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#108"><B>ITEM 2.</B></A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><A href="#108"><B>Management&#146;s Discussion and Analysis of Financial Condition and Results of Operations</B></A></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">21</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#109"><B>ITEM 3.</B></A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><A href="#109"><B>Quantitative and Qualitative Disclosures About Market Risk</B></A></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">32</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#110"><B>ITEM 4.</B></A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><A href="#110"><B>Controls and Procedures</B></A></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">33</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#111"><B>PART II:</B></A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><A href="#111"><B>OTHER INFORMATION</B></A></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">34</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#112"><B>ITEM 1.</B></A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><A href="#112"><B>Legal Proceedings</B></A></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">34</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#113"><B>ITEM 1A.</B></A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><A href="#113"><B>Risk Factors</B></A></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">34</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#114"><B>ITEM 2.</B></A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><A href="#114"><B>Unregistered Sales of Equity Securities and Use of Proceeds</B></A></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">45</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#115"><B>ITEM 3.</B></A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><A href="#115"><B>Defaults Upon Senior Securities</B></A></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">45</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#116"><B>ITEM 4.</B></A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><A href="#116"><B>Submission of Matters to a Vote of Security Holders</B></A></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">45</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#117"><B>ITEM 5.</B></A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><A href="#117"><B>Other Information</B></A></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">45</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#118"><B>ITEM 6.</B></A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><A href="#118"><B>Exhibits</B></A></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">45</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD colspan="3" align="left"><A href="#119"><B>SIGNATURES</B></A></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">46</TD>
</TR>
<TR valign="bottom">
    <TD colspan="3" align="left"><B>EXHIBIT INDEX</B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="b72632atexv10w1.htm">Ex-10.1 Letter Agreement, dated as of August 5, 2008</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="b72632atexv10w2.htm">Ex-10.2 Executive Retention Agreement, dated as of October 17, 2008</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="b72632atexv12w1.htm">Ex-12.1 Statement re: Computation of Ratio of Earnings to fixed charges</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="b72632atexv31w1.htm">Ex-31.1 Section 302 Certification of the CEO & CFO</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="b72632atexv32w1.htm">Ex-32.1 Section 906 Certification of the CEO & CFO</A></FONT></TD></TR>
</TABLE>
</DIV>

<DIV align="left">
<!-- /TOC -->
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->2<!-- /Folio -->
</DIV>



<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left">
<A name="102"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;1. Financial Statements</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company&#146;s condensed consolidated financial statements are prepared in accordance with U.S.
generally accepted accounting principles. The Company&#146;s condensed consolidated financial statements
are expressed in U.S. dollars. In this report, references to &#147;dollars,&#148; &#147;U.S. $&#148; or &#147;$&#148; are to
United States dollars.
</DIV>
<DIV align="left">
<A name="103"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARLINGTON TANKERS LTD. AND SUBSIDIARIES<BR>
CONDENSED CONSOLIDATED BALANCE SHEETS<BR>
(DOLLARS IN THOUSANDS, EXCEPT SHARE DATA)</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Sept. 30,</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>December 31,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>2007</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px"><!-- Blank Space -->
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>(UNAUDITED)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">ASSETS</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">CURRENT ASSETS:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cash and cash equivalents</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">15,268</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">6,274</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Short-term investments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,500</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Prepaid expenses and accrued income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">92</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">184</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other receivables</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,167</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">304</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total current assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,527</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19,262</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">NONCURRENT ASSETS:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Vessels, net</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">317,829</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">329,330</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Deferred debt issuance costs, net</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">539</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">717</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">TOTAL ASSETS</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">334,895</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">349,309</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">LIABILITIES AND SHAREHOLDERS&#146; EQUITY</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">CURRENT LIABILITIES:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Accrued expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,804</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">451</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Unearned charter revenue</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,409</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,693</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total current liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,213</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,144</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">NONCURRENT LIABILITIES:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest rate swap at fair value</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,552</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,453</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Long-term debt</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">229,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">229,500</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">TOTAL LIABILITIES</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">243,265</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">243,097</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SHAREHOLDERS&#146; EQUITY:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Founder shares, $1.00 par value per share, 12,000 authorized, none issued or outstanding</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Preference shares, $0.01 par value per share, 4,000,000 authorized, none issued or
outstanding</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Common stock, $0.01 par value per share, 60,000,000 authorized, 15,500,000 shares
issued and outstanding</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">155</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">155</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Additional paid-in capital</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">91,475</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">106,734</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Accumulated deficit</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(677</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">TOTAL SHAREHOLDERS&#146; EQUITY</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">91,630</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">106,212</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">TOTAL LIABILITIES AND SHAREHOLDERS&#146; EQUITY</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">334,895</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">349,309</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">See notes to condensed consolidated financial statements.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->3<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left">
<A name="104"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARLINGTON TANKERS LTD. AND SUBSIDIARIES<BR>
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS<BR>
(DOLLARS IN THOUSANDS, EXCEPT SHARE DATA)<BR>
(UNAUDITED)</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>FOR THE THREE MONTHS</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>FOR THE NINE MONTHS</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>ENDED SEPTEMBER 30,</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>ENDED SEPTEMBER 30,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>2007</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>2007</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">OPERATING REVENUES:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Charter revenues</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">17,851</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">17,512</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">52,847</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">52,630</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">OPERATING EXPENSES:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Vessel operating expenses, other</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,138</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,937</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,568</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,901</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Depreciation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,891</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,861</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,501</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,456</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Administrative expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,748</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">564</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,205</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,707</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">TOTAL OPERATING EXPENSES</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,777</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,362</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31,274</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28,064</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">OPERATING INCOME</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,074</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,150</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,573</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24,566</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">OTHER INCOME (EXPENSE):</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">68</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">216</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">266</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">645</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest (expense), other</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(3,452</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(3,452</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(10,282</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(10,244</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Unrealized (loss)&nbsp;on interest rate swap</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(269</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(4,955</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(99</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,624</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">OTHER INCOME (EXPENSE), NET</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(3,653</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(8,191</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(10,115</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(12,223</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">NET INCOME (LOSS)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,421</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(41</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">11,458</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">12,343</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="15" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Earnings (loss)&nbsp;per common share, basic and diluted</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.16</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(0.00</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.74</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.80</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="15" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Weighted average shares outstanding, basic and diluted</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,500,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,500,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,500,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,500,000</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">See notes to condensed consolidated financial statements.
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->4<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left">
<A name="105"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARLINGTON TANKERS LTD. AND SUBSIDIARIES<BR>
CONDENSED CONSOLIDATED STATEMENT OF SHAREHOLDERS&#146; EQUITY<BR>
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2008<BR>
(DOLLARS IN THOUSANDS)<BR>
(UNAUDITED)</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Common</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Paid-in</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Accumulated</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Stock</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Capital</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Deficit</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Total</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Balance as of January&nbsp;1, 2008</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">155</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">106,734</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">$</TD>
    <TD align="right">(677</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">106,212</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,458</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,458</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cash dividends paid</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(15,259</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(10,781</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(26,040</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" nowrap align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" nowrap align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Balance at September&nbsp;30, 2008 (unaudited)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">155</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">91,475</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">91,630</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="15" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">See notes to condensed consolidated financial statements.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->5<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left">
<A name="106"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARLINGTON TANKERS LTD. AND SUBSIDIARIES<BR>
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS<BR>
(DOLLARS IN THOUSANDS)<BR>
(UNAUDITED)</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>FOR THE NINE MONTHS</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #ffffff"><B>ENDED SEPTEMBER 30,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>2007</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">OPERATING ACTIVITIES:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Net income</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">11,458</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">12,343</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Adjustments to reconcile net income to net cash provided by operating activities:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Depreciation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,501</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,456</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Unrealized loss on interest rate swap</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">99</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,624</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Amortization of debt issuance costs</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">178</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">178</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">CHANGE IN OPERATING ASSETS AND LIABILITIES:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Other receivables</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(863</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(216</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Prepaid expenses and accrued income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">92</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;546</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Accrued expenses and other current liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,353</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">90</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Unearned charter revenue</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,284</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Net cash provided by operating activities</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,534</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27,021</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">INVESTING ACTIVITIES:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Sale of short-term investments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31,400</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Purchase of short-term investments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(30,900</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Net cash provided by investing activities</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">500</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">FINANCING ACTIVITIES:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Dividend payments from retained earnings</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(10,781</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(17,258</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Dividend payments from paid in capital</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(15,259</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(9,712</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Net cash used by financing activities</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(26,040</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(26,970</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Net increase in cash</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,994</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">551</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cash and cash equivalents, beginning of period</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,274</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,210</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cash and cash equivalents, end of period</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">15,268</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">3,761</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Supplemental Cash Flow Information &#151; Cash paid for interest</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">10,282</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">10,244</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">See notes to condensed consolidated financial statements.
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->6<!-- /Folio -->
</DIV>



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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left">
<A name="107"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARLINGTON TANKERS LTD. AND SUBSIDIARIES</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>Notes to the Condensed Consolidated Financial Statements<BR>
(Unaudited)</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>1. GENERAL</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Arlington Tankers Ltd. (the &#147;Company&#148; or &#147;Arlington&#148;) was incorporated in September&nbsp;2004 under
the laws of Bermuda for the purpose of acquiring six tanker vessels (the &#147;Initial Vessels&#148;)
consisting of two V-MAX VLCCs from Concordia Maritime AB (&#147;Concordia&#148;), two Product tankers from
Stena AB (&#147;Stena&#148;), and two Panamax tankers from subsidiaries of Stena, Concordia and two companies
owned 75% by Stena and 25% by Fram Shipping Co. Ltd (&#147;Fram&#148;). In November&nbsp;2004, the Company
completed its initial public offering by issuing and selling to the public 11,450,000 common
shares, par value $0.01 per share, at a price to the public of $20.00 per share, raising gross
proceeds of $229&nbsp;million before the deduction of underwriting discounts, commissions and expenses
of approximately $17.7&nbsp;million. Simultaneously, the Company issued a total of 4,050,000 common
shares at a price of $20.00 per share to Stena, Concordia and Fram, for total consideration of $81
million, as part of the settlement of the purchase price of the Initial Vessels. On that date the
Company also raised $135&nbsp;million of secured debt (before expenses of approximately $0.8&nbsp;million) as
part of the financing of the Initial Vessels. On acquisition of the Initial Vessels, the excess of
the purchase price of $426.5&nbsp;million over the historical book value of $283.2&nbsp;million at which the
predecessor shareholders carried the Initial Vessels on their books was considered a deemed
distribution of $143.3&nbsp;million to those predecessor shareholders. An aggregate of 1,717,500 of
these shares were sold in the initial public offering in connection with the underwriters&#146; exercise
of their over-allotment option. The Company did not receive any proceeds from the sale of shares by
Stena, Concordia, and Fram. Concurrent with the closing of the initial public offering, the Company
completed the acquisition of the Initial Vessels.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In December&nbsp;2005, the Company entered into a five-year term loan agreement with The Royal Bank
of Scotland. The term loan agreement provides for a facility of up to $229.5&nbsp;million. The purpose
of the term loan agreement was to (1)&nbsp;refinance the Company&#146;s previous debt facility, (2)&nbsp;finance
the purchase price of two new Product tankers from Stena and (3)&nbsp;general corporate purposes. The
Company completed the refinancing of its previous debt facility in December&nbsp;2005 and completed the
acquisition of the two Stena Product tankers in January&nbsp;2006. The term loan agreement matures on
January&nbsp;5, 2011. All amounts outstanding under the term loan agreement must be repaid on that
maturity date. There is no principal amortization required prior to maturity. Borrowings under the
term loan agreement bear interest at the London Inter-Bank Offer Rate (&#147;LIBOR&#148;) plus a margin of 75
basis points. The margin would increase to 85 basis points if the ratio of the fair market value of
the Company&#146;s Vessels to the amount outstanding under the loan facility falls below 2.0 (the
&#147;Ratio&#148;). The increased interest margin is equivalent to approximately $229,500 per year in
increased interest costs in the event the Ratio falls below 2.0. In connection with the term loan
agreement, the Company entered into an interest rate swap agreement with The Royal Bank of
Scotland. As a result of this swap, the Company has effectively fixed the interest rate on the term
loan agreement at 5.7325%, or 5.8325% if the Ratio falls below 2.0.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On January&nbsp;5, 2006, the Company entered into a series of agreements with certain Stena
subsidiaries, Stena Bulk, Northern Marine Management Ltd. (&#147;Northern Marine&#148;), and Stena Maritime
(the &#147;Stena Parties&#148;), pursuant to which the Company, through wholly owned subsidiaries, purchased
from subsidiaries of Stena Maritime two Product tankers known as the <I>Stena Concept </I>and the <I>Stena
Contest </I>(the &#147;Additional Vessels&#148;) for a purchase price per Additional Vessel of $46,000,000. In
connection with the acquisition of the Additional Vessels, the Company and the Stena Parties also
entered into certain related agreements with the Stena Parties and amended certain of its
agreements with the Stena Parties related to the Initial Vessels. At the closing of this
acquisition, the Company&#146;s subsidiaries that purchased the Additional Vessels and Stena Bulk
entered into new time charter party agreements with respect to the Additional Vessels. Under the
new time charter parties, which are substantially similar to the time charter parties that the
Company&#146;s subsidiaries have entered into for the Initial Vessels, the Company&#146;s subsidiaries that
purchased the Additional Vessels time chartered the Additional Vessels to Stena Bulk for an initial
period of three years at the fixed daily Basic Hire without any Additional Hire provision. In May
2008, Stena Bulk exercised its option to extend the time charters for an additional 30&nbsp;months,
effective January&nbsp;5, 2009. As a result, beginning on January&nbsp;5, 2009, the Company will become
eligible to earn Additional Hire on the <I>Stena Concept </I>and <I>Stena Contest </I>and Stena Bulk has two
additional one-year charter options following the 30&nbsp;month extension, at the fixed daily Basic Hire
set forth below, but without an Additional Hire provision.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At the closing of the acquisition of the Additional Vessels, the time charter parties for the
Company&#146;s existing Product tankers and Panamax tankers were amended. These amendments modified the
charter periods for the Company&#146;s previously-acquired Product tankers and Panamax tankers and
provided certain changes to the calculation of Additional Hire under these time charter parties.
The amendments to the terms of the charters provided that (1)&nbsp;the five-year fixed term for one of
the Product tankers (<I>Stena Consul</I>) and one of the Panamax tankers (<I>Stena Compatriot</I>) were extended
to November&nbsp;2010, followed by three one-year options exercisable by Stena Bulk and (2)&nbsp;the
five-year fixed term for one of the Product tankers (<I>Stena Concord</I>) and one of the Panamax tankers
(<I>Stena</I>
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->7<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>Companion</I>) were reduced so that it expired in November&nbsp;2008, followed by three one-year
options exercisable by Stena Bulk. In May&nbsp;2008, Stena Bulk exercised the first of its three
one-year options for the <I>Stena Concord </I>and the <I>Stena Companion</I>, effective November&nbsp;11, 2008. The
term of the charters for the V-MAX tankers was not amended. The amendments to the Additional Hire
provisions provided for certain favorable adjustments to fuel consumption metrics used in the
calculation of Additional Hire for the Product tankers and Panamax tankers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At the closing of the acquisition of the Additional Vessels, the ship management agreements
for the Company&#146;s Initial Vessels were also amended. These amendments included modifications to the
provisions relating to drydocking of the Vessels. Specifically, the amendments provided that all
drydockings that occur during the term of the ship management agreements are to be at the sole cost
and expense of Northern Marine. Under the terms of the amended ship management agreements, the
cost of these intermediate and special surveys is covered by a portion of the monthly vessel
management fees that the Company pays to Northern Marine. Such portion of the vessel management
fees is referred to as the &#147;Drydocking Provision.&#148; Upon redelivery of the Vessels to the Company
at the expiration of the ship management agreements, Northern Marine has agreed to return to the
Company any Drydocking Provision paid, but not used, from the completion of the last drydocking
during the term of the applicable Ship Management Agreement (or if no drydocking occurs during the
term of such agreement, from the date of commencement of such agreement), to the date of
redelivery. The amount of the Drydocking Provision that may be due to the Company will be paid at
the daily rates specified in the applicable ship management agreement. No amounts will be
recognized in the Company&#146;s financial statements for the potentially refundable portion of the
Drydocking Provision until such time as it has been determined that a subsequent drydocking will
occur after redelivery of a Vessel to the Company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Based on their filings with the SEC, as of May&nbsp;7, 2008, Stena and Concordia directly and
indirectly owned an aggregate of approximately 18.0% of the Company&#146;s outstanding common shares.
As a result of Stena&#146;s purchase of additional common shares in 2007, Stena and Concordia may be
considered &#147;interested shareholders&#148; for purposes of the Company&#146;s bye-laws. Stena and Concordia&#146;s
ownership interest in the Company can have a significant influence over the Company, including the
outcome of shareholder votes and the Company&#146;s ability to conduct future business or modify
existing agreements with Stena or Concordia.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On August&nbsp;5, 2008, the Company entered into a definitive Agreement and Plan of Merger and
Amalgamation (the &#147;Merger Agreement&#148;) with General Maritime Corporation (&#147;General Maritime&#148;). The
Merger Agreement provides that, upon the terms and subject to the conditions set forth in the
Merger Agreement, Galileo Merger Corporation, a wholly-owned subsidiary of Galileo Holding
Corporation ( &#147;New Parent&#148;), a newly-formed subsidiary of the Company and General Maritime, will
merge with and into General Maritime, with General Maritime continuing as the surviving corporation
of such merger (the &#147;Merger&#148;), and the Company will amalgamate with Archer Amalgamation Limited, a
wholly owned subsidiary of New Parent, with the resulting amalgamated company continuing as the
surviving entity (the &#147;Amalgamation&#148;). As a result of the Merger and the Amalgamation: (i)&nbsp;the
Company and General Maritime will each become a wholly-owned subsidiary of New Parent, which will
be renamed &#147;General Maritime Corporation&#148;; and (ii)&nbsp;the Company&#146;s shareholders will receive 1 share
in New Parent for each Company share held, and General Maritime&#146;s shareholders will receive 1.34
shares in New Parent for each General Maritime share held. Upon consummation of the transactions
contemplated by the Merger Agreement, including the Merger and the Amalgamation, shareholders of
the Company will hold approximately 27% of the outstanding common stock of New Parent and
shareholders of General Maritime will hold approximately 73% of the outstanding common stock of New
Parent. The Merger Agreement is subject to approval by the respective shareholders of the Company
and General Maritime, and other customary closing conditions. The Company has entered into an
agreement with the Royal Bank of Scotland pursuant to which certain provisions of the Company&#146;s
term loan agreement will be amended if the transaction closes. See Note 8. Although the
transaction is expected to be completed by the end of the fourth quarter of 2008, there can be no
assurance that the transaction will be completed during such timeframe, or at all.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company&#146;s eight vessels (the &#147;Vessels&#148;) are currently owned by eight wholly-owned
subsidiaries of the Company (each, a &#147;Vessel Subsidiary&#148;). The primary activity of each of the
Vessel Subsidiaries is the ownership and operation of a Vessel. The flag state of each of the
Company&#146;s Vessels is Bermuda.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->8<!-- /Folio -->
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets out the details of the Vessels included in these consolidated
financial statements:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="16%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Initial Charter</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Latest Charter</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Vessel Type</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Year Built</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Dwt</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Date Acquired</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Expiration Date(1)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Expiration Date (1)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>V-MAX</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><I>Stena Victory</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2001</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">314,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">November 10, 2004</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">November 9, 2009</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">November 9, 2012</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><I>Stena Vision</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2001</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">314,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">November 10, 2004</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">November 9, 2009</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">November 9, 2012</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Panamax</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><I>Stena Companion</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2004</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">72,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">November 10, 2004</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">November 9, 2008</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">November 9, 2011</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><I>Stena Compatriot</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2004</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">72,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">November 10, 2004</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">November 9, 2010</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">November 9, 2013</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Product</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><I>Stena Concord</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2004</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47,400</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">November 10, 2004</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">November 9, 2008</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">November 9, 2011</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><I>Stena Consul</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2004</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47,400</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">November 10, 2004</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">November 9, 2010</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">November 9, 2013</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><I>Stena Concept</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2005</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47,400</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">January 5, 2006</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">January 4, 2009</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">July 4, 2011</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><I>Stena Contest</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2005</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47,400</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">January 5, 2006</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">January 4, 2009</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">July 4, 2011</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>Each of the charters contains renewal options described in greater detail below.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Effective November&nbsp;10, 2004 for the Initial Vessels and January&nbsp;5, 2006 for the Additional
Vessels, the Company has chartered the Vessels to subsidiaries of Stena and Concordia (the
&#147;Charterers&#148;) under three, four and five-year fixed rate charters, increasing annually by an amount
equal to the annual increase in the fees under the Company&#146;s ship management agreements. Under the
charters, in addition to the fixed rate Basic Hire, certain Vessels have the possibility of
receiving Additional Hire from the Charterers through profit sharing arrangements related to the
performance of the tanker markets on specified geographic routes, or from actual time charter
rates. Additional Hire is not guaranteed except Additional Hire related to the Sun International
sub-charter, and correlates to weighted average historical voyage rates for the specified routes.
The charters contain options on the part of the Charterers to extend the terms of the charters.
Stena and Concordia have each agreed to guarantee the obligations of their respective subsidiaries
under the charters.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Effective November&nbsp;10, 2004 for the Initial Vessels and January&nbsp;5, 2006 for the Additional
Vessels, the Company has also entered into ship management agreements with Northern Marine. The
ship management agreements provide for the technical management of the Vessels.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Basic Hire rate for each of the Vessels is payable to the Company monthly in advance and
will increase annually by an amount equal to the annual increase in the fee payable under the
applicable ship management agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth the daily Basic Hire, daily base operating costs and operating
margin for the Company&#146;s two V-MAX vessels, the <I>Stena Vision </I>and the <I>Stena Victory</I>. The operating
margin is calculated by subtracting the amount of the base operating costs from the amount of Basic
Hire.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Period</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Basic Hire</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Base Operating Costs</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Operating Margin</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Nov. 11, 2007 &#151; Nov. 10, 2008</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">36,882</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">8,682</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">28,200</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Nov. 11, 2008 &#151; Nov. 10, 2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">37,316</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,116</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28,200</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Nov. 11, 2009 &#151; Nov. 10, 2010</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">37,772</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,572</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28,200</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">(Option Year 1)(1)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Nov. 11, 2010 &#151; Nov. 10, 2011</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">38,251</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,051</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28,200</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">(Option Year 2)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Nov. 11, 2011 &#151; Nov. 10, 2012</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">38,753</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,553</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28,200</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">(Option Year 3)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left"><SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>The Charterer has the option to extend these Charters on a vessel-by-vessel
basis for 3 additional 1&nbsp;year terms. There can be no assurance that the Charterer will exercise any
such option.</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio -->9<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">






<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth the daily Basic Hire, daily base operating costs and operating
margin for two of the Company&#146;s vessels, the <I>Stena Companion </I>and the <I>Stena Concord</I>, with initial
charter expiration dates in 2008.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="34%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="11" style="border-bottom: 1px solid #000000"><B><I>Stena Companion</I></B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="11" style="border-bottom: 1px solid #000000"><B><I>Stena Concord</I></B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Base</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Base</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Operating</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Operating</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Operating</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Operating</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Period</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Basic Hire</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Costs</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Margin</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Basic Hire</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Costs</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Margin</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Nov. 11, 2007 &#151;
Nov. 10, 2008</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">18,306</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">6,656</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">11,650</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">16,335</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">6,135</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">10,200</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Nov. 11, 2008 &#151;
Nov. 10, 2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,639</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,989</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,650</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,642</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,442</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,200</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">(Option Year 1)(1)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Nov. 11, 2009 &#151;
Nov. 10, 2010</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,989</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,339</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,650</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,964</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,764</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,200</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">(Option Year 2)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Nov. 11, 2010 &#151;
Nov. 10, 2011</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19,356</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,706</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,650</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,303</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,103</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,200</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">(Option Year 3)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left"><SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>The Charterer has the option to extend these Charters on a vessel-by-vessel
basis for 3 additional 1&nbsp;year terms. In May&nbsp;2008, the Charterer exercised the first of these
one-year options for both vessels. There can be no assurance that the Charterer will exercise any
additional options.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth the daily Basic Hire, daily base operating costs and operating
margin for two of the Company&#146;s vessels, the <I>Stena Compatriot </I>and the <I>Stena Consul</I>, with initial
charter expiration dates in 2010.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="34%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="11" style="border-bottom: 1px solid #000000"><B><I>Stena Compatriot</I></B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="11" style="border-bottom: 1px solid #000000"><B><I>Stena Consul</I></B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Base</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Base</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Operating</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Operating</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Operating</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Operating</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Period</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Basic Hire</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Costs</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Margin</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Basic Hire</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Costs</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Margin</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Nov. 11, 2007 &#151;
Nov. 10, 2008</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">18,306</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">6,656</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">11,650</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">16,335</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">6,135</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">10,200</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Nov. 11, 2008 &#151;
Nov. 10, 2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,639</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,989</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,650</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,642</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,442</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,200</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Nov. 11, 2009 &#151;
Nov. 10, 2010</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,989</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,339</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,650</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,964</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,764</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,200</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Nov. 11, 2010 &#151;
Nov. 10, 2011</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19,356</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,706</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,650</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,303</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,103</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,200</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">(Option Year 1)(1)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Nov. 11, 2011 &#151;
Nov. 10, 2012</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19,741</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,091</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,650</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,658</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,458</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,200</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">(Option Year 2)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Nov. 11, 2012 &#151;
Nov. 10, 2013</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,145</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,495</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,650</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,031</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,831</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,200</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">(Option Year 3)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>The Charterer has the option to extend these Charters on a vessel-by-vessel basis for 3
additional 1&nbsp;year terms. There can be no assurance that the Charterer will exercise any such
option.</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio -->10<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">






<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth the daily Basic Hire, daily base operating costs and operating
margin for the Company&#146;s two Additional Vessels, the <I>Stena Concept </I>and the <I>Stena Contest</I>.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="55%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Base Operating</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Period</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Basic Hire</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Costs</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Operating Margin</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Jan. 5, 2007 &#151; Jan 4, 2008
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">$</TD>
    <TD align="right" valign="top">20,043</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">$</TD>
    <TD align="right" valign="top">5,843</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">$</TD>
    <TD align="right" valign="top">14,200</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Jan. 5, 2008 &#151; Jan. 4, 2009
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">20,335</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">6,135</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">14,200</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Jan. 5, 2009 &#151; Jan. 4, 2010
(Option Period 1)(1)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">17,942</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">6,442</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">11,500</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Jan. 5, 2010 &#151; Jan. 4, 2011
(Option Period 1)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">18,264</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">6,764</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">11,500</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Jan. 5, 2011 &#151; July&nbsp;4, 2011
(Option Period 1)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">18,603</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">7,103</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">11,500</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">July&nbsp;5, 2011 &#151; July&nbsp;4, 2012
(Option Period 2) (2)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">21,158</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">7,458</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">13,700</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">July&nbsp;5, 2012 &#151; July&nbsp;4, 2013
(Option Period 3)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">21,531</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">7,831</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">13,700</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>In May&nbsp;2008, the Charterer exercised its option to extend these Charters for an
additional 30-month period expiring on July&nbsp;4, 2011. As a result, the Company will be eligible to
earn Additional Hire in addition to Basic Hire during this 30-month period.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>This period is the first for which the Charterer has the option to extend these Charters
as a result of exercising the option described in Footnote 1 above. The Company would not be
eligible to earn Additional Hire over the term of any extension. There can be no assurance that
the Charterer will exercise any such option.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition to the Basic Hire, the Charterers may pay the Company quarterly in arrears an
Additional Hire payment for the Initial Vessels. Under the charters, the Additional Hire, if any,
in respect of each Initial Vessel, is payable on the 25th day following the end of each calendar
quarter.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Additional Hire, if any, payable in respect of an Initial Vessel, other than the V-MAX
tankers as described below, for any calendar quarter is an amount equal to 50% of the weighted
average hire, calculated as described below, for the quarter after deduction of the Basic Hire in
effect for that quarter. The weighted average hire is a daily rate equal to the weighted average of
the following amounts:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a weighted average of the time charter hire per day received by the Charterer for any
periods during the calculation period, determined as described below, that the Initial
Vessel is sub-chartered by the Charterer under a time charter, less ship broker commissions
paid by the Charterer in an amount not to exceed 2.5% of such time charter hire and
commercial management fees paid by the Charterer in an amount not to exceed 1.25% of such
time charter hire; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the time charter equivalent hire for any periods during the calculation period that the
Vessel is not sub-chartered by the Charterer under a time charter.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The calculation period is the twelve-month period ending on the last day of each calendar
quarter, except that in the case of the first three full calendar quarters following the
commencement of the Company&#146;s charters, the calculation period is the three, six and nine month
periods, respectively, ending on the last day of such calendar quarter and the first calendar
quarter also includes the period from the date of the commencement of the Company&#146;s charters to the
commencement of the first full calendar quarter.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As a result of Stena Bulk exercising its option to extend the Charters for the Additional
Vessels, the Company will become eligible to earn Additional Hire for those Vessels during the
30-month period commencing January&nbsp;5, 2009.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At the time the Company acquired its two V-MAX Vessels, these Vessels were sub-chartered by
Concordia to Sun International. The sub-charter with Sun International relating to the <I>Stena
Victory </I>expired on October&nbsp;20, 2007. The sub-charter with Sun International relating to the <I>Stena
Vision </I>expired on September&nbsp;11, 2008.
</DIV>


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</DIV>



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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The sub-charter rate that Concordia received from Sun International with respect to the <I>Stena
Victory </I>and the <I>Stena Vision </I>was greater than the Basic Hire rate that the Company received from
Concordia. Therefore, the Company earned Additional Hire revenue while the <I>Stena Victory </I>and the
<I>Stena Vision </I>were sub-chartered to Sun International. The amount of this Additional Hire was equal
to the difference between the amount paid by Sun International under its sub-charters with
Concordia and the Basic Hire rate in effect, less ship broker commissions paid by the Charterer in
an amount not to exceed 2.5% of the charterhire received by the Charterer and commercial management
fees paid by the Charterer in an amount not to exceed 1.25% of the charterhire received by the
Charterer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Immediately following the expiration of the sub-charter of the <I>Stena Victory </I>with Sun
International, on October&nbsp;20, 2007, the Vessel commenced operating under a new two-year sub-charter
agreement between Concordia and Eiger Shipping, S.A. (&#147;Eiger Shipping&#148;), an affiliate of the
shipping branch of LukOil commonly known as Litasco. In addition, immediately following the
expiration of the sub-charter of the <I>Stena Vision </I>with Sun International on September&nbsp;11, 2008, the
Vessel commenced operating under a new two-year sub-charter agreement between Concordia and Eiger
Shipping. The sub-charter rate that Eiger Shipping is obligated to pay to Concordia is greater than
the Basic Hire rate that the Company will receive from Concordia. Therefore, the Company expects to
earn Additional Hire revenue while the V-MAX vessels are under the Eiger Shipping sub-charters in
addition to the guaranteed Basic Hire. The Additional Hire revenue will not be exposed to
fluctuations in spot market rates. Additional Hire for the V-MAX tankers under the Eiger Shipping
sub-charters will be based on the time charter hire received by Concordia under the sub-charters.
Additional Hire revenues under the Eiger Shipping sub-charters are not guaranteed, meaning that the
Company will earn Additional Hire only when the Vessels are in service. In the event that the
V-MAX tankers are off-hire, the Company will not be eligible to earn Additional Hire revenue from
the profit sharing provisions on the days that the Vessel is off-hire. Based on the time charter
rates under the Eiger Shipping sub-charters and assuming that both V-MAX vessels operate for 90
days per quarter, the Company expects the V-MAX tankers to generate Additional Hire revenues of
approximately $350,000 per Vessel per quarter in addition to the guaranteed Basic Hire levels,
while the Vessels are sub-chartered to Eiger Shipping.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Vessel Subsidiaries have entered into fixed-rate ship management agreements with Northern
Marine. Under the ship management agreements, Northern Marine is responsible for all technical
management of the Vessels, including crewing, maintenance, repair, drydockings, vessel taxes and
other vessel operating and voyage expenses. Northern Marine has outsourced some of these services
to third-party providers. The Company has agreed to guarantee the obligations of each of the
Company&#146;s Vessel Subsidiaries under the ship management agreements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under the ship management agreements, Northern Marine has agreed to return the Vessels
in-class and in the same good order and condition as when delivered, except for ordinary wear and
tear.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Northern Marine is also obligated under the ship management agreements to maintain insurance
for each of the Company&#146;s Vessels, including marine hull and machinery insurance, protection and
indemnity insurance (including pollution risks and crew insurances), war risk insurance and
off-hire insurance. Under the ship management agreements, the Company pays Northern Marine a fixed
fee per day per Vessel for all of the above services, which increases 5% per year, for so long as
the relevant charter is in place. Under the ship management agreements, Northern Marine has agreed
to indemnify the Company for the loss of the Basic Hire for each of the Vessels in the event, for
circumstances specified under the charters, the Vessel is off-hire or receiving reduced hire for
more than five days during any twelve-month period, or six days during a leap year, net of amounts
received by us from off-hire insurance. Stena has agreed to guarantee this indemnification by
Northern Marine. Both the Company and Northern Marine have the right to terminate any of the ship
management agreements if the relevant charter has been terminated.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tables setting forth the daily base operating costs, which are payable by the Company monthly
in advance, for each of the Company&#146;s Vessels are set forth above. For the Initial Vessels, the
first charter year commenced on November&nbsp;10, 2004 and ended on November&nbsp;10, 2005. Each subsequent
charter year will begin on November&nbsp;11 of the applicable year and end on the subsequent November
10. For the Additional Vessels, the first charter year commenced on January&nbsp;5, 2006 and ended on
January&nbsp;4, 2007. Each subsequent charter year will begin on January 5 of the applicable year and
end on the subsequent January 4. As a result of the exercise of the 30-month charter extension
options for the Additional Vessels, the final six months of the 30-month option term will expire on
July&nbsp;4, 2011. If subsequent extension options are exercised, charter years will begin on July 5
and end on July 4.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company has also agreed to pay to Northern Marine an incentive fee for each day a Vessel
is on hire in excess of 360&nbsp;days during any twelve-month period following the date the applicable
Vessel was delivered to the Company in an amount equal to the daily Basic Hire for such Vessel. If
the Company terminates its ship management agreements with Northern Marine because Northern Marine
has failed to perform its obligations under such agreements, Stena has agreed to provide a
replacement ship manager to perform the obligations set forth in the ship management agreements on
the same terms and for the same fixed amounts payable to Northern Marine.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Northern Marine provides technical and crewing management and payroll and support services to
the Stena Sphere shipping divisions and several other clients, including ChevronTexaco Corporation,
Technip Offshore UK and Gulf Marine Management. Northern Marine has offices in Glasgow, Aberdeen,
Mumbai, Kiel, Houston, Manila, Rotterdam and Singapore and has over 4,400 seafarers employed on
approximately 90 vessels.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>2. ACCOUNTING POLICIES</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Basis of accounting and presentation</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The unaudited condensed consolidated interim financial statements are prepared in accordance
with accounting principles generally accepted in the United States and the Securities and Exchange
Commission&#146;s instructions to Form 10-Q. In the opinion of management, all adjustments (consisting
only of normal recurring adjustments) necessary for a fair presentation of the financial position
and results of operations for the periods presented have been included. The condensed consolidated
financial statements should be read in conjunction with the consolidated financial statements and
notes thereto contained in the Company&#146;s Annual Report on Form 10-K for the year ended December&nbsp;31,
2007. The results of operations for the interim periods ended September&nbsp;30, 2008, are not
necessarily indicative of the results for the entire year ending December&nbsp;31, 2008. The condensed
consolidated financial statements include the assets and liabilities, results of operations and
cash flows of the Company and its wholly-owned subsidiaries. All intercompany balances and
transactions have been eliminated upon consolidation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Cash and cash equivalents and short-term investments</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company considers all demand and time deposits and all highly liquid investments with an
original maturity of three months or less as of the date of purchase to be cash equivalents. The
Company considers all demand and time deposits and all highly liquid investments with an original
maturity of greater than three months as of the date of purchase to be short-term investments. Cash
and cash equivalents of $15.3&nbsp;million as of September&nbsp;30, 2008 are pledged as described in Note 8
and are held at a single financial institution with a Standard &#038; Poor&#146;s rating of A-1&#043;. The
carrying value of cash and cash equivalents approximates its fair value. The Company had no
short-term investments as of September&nbsp;30, 2008.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Drydocking provisions</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition to vessel acquisition, other major expenditures include the monthly funding of the
Company&#146;s maintenance program of regularly scheduled intermediate surveys or special surveys
necessary to preserve the quality of the Company&#146;s Vessels as well as to comply with international
shipping standards and environmental laws and regulations. Management anticipates that the Vessels
will undergo intermediate surveys 2.5&nbsp;years after special surveys and that the Vessels will undergo
special surveys every five years. In the three months ended September&nbsp;30, 2008, no vessels
completed an intermediate survey or a special survey. Under the terms of the Company&#146;s ship
management agreements with Northern Marine, the cost of these intermediate and special surveys is
covered by a portion of the vessel management fees that the Company pays to Northern Marine.
During the duration of these intermediate and special surveys, the Company will not have the
opportunity to earn Additional Hire revenues from profit-sharing arrangements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Estimates and concentrations</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The preparation of financial statements in accordance with accounting principles generally
accepted in the United States requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities at the date of the financial statements and reported
amounts of revenues and expenses during the reporting period. Actual results could differ from such
estimates.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company operates in the shipping industry which historically has been cyclical with
corresponding volatility in profitability and vessel values. Vessel values are strongly influenced
by charter rates which in turn are influenced by the level and pattern of global economic growth
and the world-wide supply and demand for vessels. The spot market for tankers is highly competitive
and charter rates are subject to significant fluctuations. Dependence on the spot market may result
in lower utilization. Each of the aforementioned factors are important considerations associated
with the Company&#146;s assessment of whether the carrying amount of its owned Vessels are recoverable.
The Company seeks to mitigate the effect of such factors by various means such as by obtaining long
term charter contracts. There is a concentration of credit risk because all revenues are due solely
from the Charterers. See Note 4.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Earnings (loss)&nbsp;per share</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Earnings (loss)&nbsp;per share are based on the weighted average number of common shares
outstanding for the period presented. For all periods presented, the Company had no potentially
dilutive securities outstanding and therefore basic and diluted earnings (loss)&nbsp;per share are the
same.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Distributions to shareholders</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company has paid a quarterly cash distribution denominated in U.S. dollars to the holders
of its common shares in amounts substantially equal to the charter hire received from the
Charterers, less cash expenses and less any cash reserves established by the Company&#146;s Board of
Directors. The Company has generally declared those dividends in January, April, July and October
of each year and paid those dividends in the subsequent month. Distributions to shareholders are
applied first to retained earnings. When retained earnings are not sufficient, distributions are
applied to additional paid-in capital.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>3. RECENTLY ISSUED ACCOUNTING STANDARDS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In September&nbsp;2006, the Financial Accounting Standards Board (&#147;FASB&#148;) issued Statement of
Financial Accounting Standards (&#147;SFAS&#148;) No.&nbsp;157, <I>&#147;Fair Value Measurements&#148; </I>(&#147;SFAS 157&#148;). SFAS 157
establishes a single definition of fair value and a framework for measuring fair value, sets out a
fair value hierarchy to be used to classify the source of information used in fair value
measurements, and requires new disclosures of assets and liabilities measured at fair value based
on their level in the hierarchy. This statement applies under other accounting pronouncements that
require or permit fair value measurements. In February&nbsp;2008, the FASB issued Staff Positions (FSPs)
No.&nbsp;157-1 and No.&nbsp;157-2, which, respectively, remove leasing transactions from the scope of SFAS
157 and defer its effective date for one year relative to certain nonfinancial assets and
liabilities. As a result, the application of the definition of fair value and related disclosures
of SFAS 157 (as impacted by these two FSPs) was effective for the Company beginning January&nbsp;1, 2008
on a prospective basis with respect to fair value measurements of all financial assets and
liabilities. This adoption did not have a material impact on the Company&#146;s consolidated results of
operations or financial condition. The remaining aspects of SFAS 157 for which the effective date
was deferred under FSP No.&nbsp;157-2 are currently being evaluated by the Company. Areas impacted by
the deferral relate to nonfinancial assets and liabilities that are measured at fair value, but are
recognized or disclosed at fair value on a nonrecurring basis. This deferral applies to items such
as long-lived asset groups measured at fair value for an impairment assessment. The effects of the
remaining aspects of SFAS 157 are to be applied by the Company to fair value measurements
prospectively beginning January&nbsp;1, 2009. The Company does not expect them to have a material impact
on its consolidated results of operations or financial condition. In October&nbsp;2008, the FASB issued
Staff Position No.&nbsp;FAS 157-3, <I>&#147;Determining the Fair Value of a Financial Asset When the Market for
That Asset is Not Active&#148; </I>(&#147;FSP 157-3&#148;). FSP 157-3 clarifies the application of SFAS 157, which
the Company adopted as of January&nbsp;1, 2008, in cases where a market is not active. The Company has
considered the guidance provided by FSP 157-3 and determined that the impact was not material on
estimated fair values as of September&nbsp;30, 2008. See Note 10 for disclosures required by this new
pronouncement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In December&nbsp;2007 the FASB issued SFAS No.&nbsp;160, &#147;<I>Noncontrolling Interests in Consolidated
Financial Statements &#151; an amendment of ARB No.&nbsp;51</I>&#148; (&#147;SFAS 160&#148;). SFAS 160 is intended to improve
the relevance, comparability and transparency of financial information that a reporting entity
provides in its consolidated financial statements with reference to a noncontrolling interest in a
subsidiary. Such a noncontrolling interest, sometimes called a minority interest, is the portion of
equity in a subsidiary not attributable, directly or indirectly, to the parent entity. SFAS 160 is
effective for fiscal years beginning on or after December&nbsp;15 2008. The Company does not expect the
adoption of SFAS 160 to have a material impact on its financial statements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In December&nbsp;2007 the FASB issued SFAS No.&nbsp;141 (revised 2007), &#147;<I>Business Combinations</I>&#148; (&#147;SFAS
141R&#148;). The objective of SFAS 141R is to improve the relevance, representational faithfulness and
comparability of the information that a reporting entity provides in its financial reports about a
business combination and its effects. To accomplish this, SFAS 141R establishes principles and
requirements for how the acquirer a) recognizes and measures in its financial statements the
identifiable assets acquired, the liabilities assumed and any non-controlling interest in the
acquiree, b) recognizes and measures the goodwill acquired in the business combination or a gain
from a bargain price, and c) determines what information to disclose to enable users of the
financial statements to evaluate the nature and financial effects of the business combination. SFAS
141R is effective for fiscal years beginning on or after December&nbsp;15, 2008. The Company does not
expect the adoption of SFAS 141R to have a material impact on its financial statements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In March&nbsp;2008, the FASB issued SFAS No.&nbsp;161, <I>&#147;Disclosures about Derivative Instruments and
Hedging Activities&#151;An Amendment of FASB Statement No.&nbsp;133&#148; </I>(&#147;SFAS 161&#148;). SFAS 161 applies to all
derivative instruments and related hedged items accounted for under SFAS No.&nbsp;133, <I>&#147;Accounting for
Derivative Instruments and Hedging Activities&#148; </I>(&#147;SFAS 133&#148;), and requires
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->14<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">entities to provide greater transparency about (a)&nbsp;how and why an entity uses derivative
instruments, (b)&nbsp;how derivative instruments and related hedged items are accounted for under SFAS
133 and its related interpretations, and (c)&nbsp;how derivative instruments and related hedged items
affect an entity&#146;s financial position, results of operations, and cash flows. SFAS 161 is
effective for fiscal years and interim periods beginning after November&nbsp;15, 2008. This standard is
not expected to have a material impact on the Company&#146;s future consolidated financial statements.
Additionally, because SFAS 161 applies only to financial statement disclosures, it will not have a
material impact on the Company&#146;s consolidated financial position, results of operations, and cash
flows.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In May&nbsp;2008, the FASB issued SFAS No.&nbsp;162, <I>&#147;The Hierarchy of Generally Accepted Accounting
Principles&#148; </I>(&#147;SFAS 162&#148;). SFAS 162 is intended to improve financial reporting by identifying a
consistent framework, or hierarchy, for selecting accounting principles to be used in preparing
financial statements that are presented in conformity with generally accepted accounting principles
in the United States for non-governmental entities. SFAS 162 is effective 60&nbsp;days following
approval by the SEC of the Public Company Accounting Oversight Board&#146;s amendments to AU Section
411, <I>&#147;The Meaning of Present Fairly in Conformity with
Generally Accepted Accounting Principles&#148;</I>.
The Company does not expect SFAS 162 to have a material impact on the Company&#146;s consolidated
financial statements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>4. CHARTER REVENUES</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The future revenues that the Company expects to receive under the time charters in effect as
of September&nbsp;30, 2008, are $295.8&nbsp;million. This estimate represents the Basic Hire under the time
charters in effect between the Company and Stena and Concordia that expire in November&nbsp;2008 with
respect to two of the Company&#146;s Vessels, in 2009 with respect to four of the Company&#146;s Vessels and
in 2010 with respect to two of the Company&#146;s Vessels. This estimate also includes future revenues
that the Company may receive if the Charterers exercise all of their options to extend the charters
and forecasted Additional Hire revenue related to Concordia&#146;s sub-charters of the two V-MAX vessels
to Sun International and Eiger Shipping. As discussed further in Note 1, the sub-charter relating
to the <I>Stena Victory </I>expired on October&nbsp;20, 2007 and the sub-charter relating to the <I>Stena Vision</I>
expired on September&nbsp;11, 2008. Immediately following the expiration of the respective Sun
International sub-charters of the <I>Stena Victory </I>and the <I>Stena Vision</I>, each Vessel commenced
operating under a new two-year sub-charter agreement with Eiger Shipping. During the term of these
new sub-charters, the Company will continue to earn guaranteed Basic Hire from Concordia and will
also earn Additional Hire under the profit sharing provisions of the Charters. The table below
assumes that Additional Hire of approximately $350,000 per Vessel per quarter is paid on the V-MAX
Vessels throughout the term of the Eiger Shipping sub-charters, and assumes that the V-MAX Vessels
operate for 90&nbsp;days per quarter.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Minimum Future</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Year</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Charter Revenue</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>(In thousands of $)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2008</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,756</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">68,818</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2010</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">68,062</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2011</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">67,401</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2012</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">53,764</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Thereafter</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19,954</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>5. OTHER RECEIVABLES</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>September 30,</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>December 31,</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2007</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7"><B>(In thousands of $)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Additional hire revenue due from Stena and Concordia</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">1,167</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">304</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">1,167</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">304</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of September&nbsp;30, 2008 and December&nbsp;31, 2007 other receivables represent amounts due under
the Additional Hire profit share arrangement. These amounts are calculated quarterly in arrears.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->15<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>6. VESSELS, NET</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>September 30,</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>December 31,</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2007</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7"><B>(In thousands of $)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Vessels</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Cost</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">402,426</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">402,426</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Accumulated depreciation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(84,597</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(73,096</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" nowrap align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net book value at end of period</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">317,829</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">329,330</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Spare parts</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Vessels, net</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">317,829</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">329,330</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There have been no drydocking costs capitalized through September&nbsp;30, 2008.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>7. DEFERRED DEBT ISSUANCE COST</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred debt issuance cost represents debt arrangement fees that are capitalized and
amortized on a straight-line basis to interest expense over the term of the relevant debt.
Amortization is included in other interest expense. As of September&nbsp;30, 2008 and December&nbsp;31, 2007
the balance relates entirely to the Company&#146;s $229.5&nbsp;million secured credit facility with The Royal
Bank of Scotland. Deferred debt issuance cost is comprised of the following amounts.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>September 30,</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>December 31,</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2007</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7"><B>(In thousands of $)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Debt arrangement fees</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,200</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,200</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Accumulated amortization</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(661</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(483</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan="2" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan="2" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Deferred debt issuance cost</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">539</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">717</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>8. DEBT</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>September 30,</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>December 31,</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>2007</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7"><B>(In thousands of $)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Secured credit facility</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">229,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">229,500</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total debt</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">229,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">229,500</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of September&nbsp;30, 2008 and December&nbsp;31, 2007, the Company had $229.5&nbsp;million in debt
outstanding under its facility with The Royal Bank of Scotland plc. In December&nbsp;2005, the Company
entered into a five-year term loan agreement with The Royal Bank of Scotland for a facility of
$229.5&nbsp;million. The term loan agreement is secured by first priority mortgages over each of the
eight Vessels, assignment of earnings and insurances and the Company&#146;s rights under the time
charters for the Vessels and the ship management agreements, a pledge of the shares of the
Company&#146;s wholly-owned subsidiaries and a security interest in certain of the Company&#146;s bank
accounts. The term loan agreement with The Royal Bank of Scotland matures on January&nbsp;5, 2011. All
amounts outstanding under the term loan agreement must be repaid on that maturity date. There is no
principal amortization prior to maturity. Borrowings under the term loan agreement bear interest
at LIBOR plus a margin of 75 basis points. The margin would increase to 85 basis points if the
Ratio falls below 2.0. The increased interest margin is equivalent to approximately $229,500 per
year in increased interest costs in the event the Ratio falls below 2.0. In connection with the
term loan agreement, the Company has entered into an interest rate swap agreement with The Royal
Bank of Scotland. As a result of this swap, the Company has effectively fixed the interest rate on
the term loan agreement at 5.7325%, or 5.8325% if the ratio falls below 2.0.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The term loan agreement provides that if at any time the aggregate fair value of the Company&#146;s
Vessels that secure the obligations under the loan agreement is less than 125% of the loan amount,
the Company must either provide additional security or prepay a portion of the loan to reinstate
such percentage. The term loan agreement also contains financial covenants requiring that at the
end of each financial quarter (1)&nbsp;the Company&#146;s total assets (adjusted to give effect to the market
value of the Vessels) less total liabilities is equal to or greater than 30% of such total assets
and (2)&nbsp;the Company has positive working capital. At September&nbsp;30, 2008 and December&nbsp;31, 2007 the
Company was in compliance with the financial covenants of the loan agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On September&nbsp;25, 2008, the Company, The Royal Bank of Scotland and certain subsidiaries of the
Company entered into an agreement (the &#147;Agreement&#148;) under which The Royal Bank of Scotland
consented to the proposed transactions contemplated by the Merger Agreement. In accordance with
the terms of the Merger Agreement, General Maritime has consented to the modification of the Loan
Agreement on the terms set forth in the Agreement. The Agreement provides The Royal Bank of
Scotland&#146;s consent to the
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">transactions contemplated by the Merger Agreement, subject to the terms and conditions set
forth in the Agreement. In particular, pursuant to the terms of the Agreement, among other things,
the Margin (as defined in the term loan agreement) is increased to 1.25% and the Company is
required to pay a one percent prepayment fee if the secured credit facility is prepaid within two
years of the Company&#146;s acceptance of the Agreement. The foregoing provisions of the Agreement will
become effective only upon the closing of the transactions contemplated by the Merger Agreement.
Except as specifically set forth in the Agreement, the provisions in the term loan agreement remain
unchanged and the loan agreement remains in full force and effect.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>9. FINANCIAL INSTRUMENTS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Derivative instruments and hedging activities</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SFAS No.&nbsp;133, <I>&#147;Accounting for Derivative Instruments and Hedging Activities&#148; </I>(&#147;SFAS 133&#148;)
requires that all derivative instruments be recorded on the balance sheet at their fair value.
Changes in the fair value of each derivative is recorded each period in current earnings or other
comprehensive income, depending on whether the derivative is designated as part of a hedge
transaction and, if it is, the type of hedge transaction.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of September&nbsp;30, 2008 and December&nbsp;31, 2007 the Company had not designated any derivatives
as part of a hedge transaction.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In December&nbsp;2005, the Company entered into a $229.5&nbsp;million secured credit facility with The
Royal Bank of Scotland. In conjunction with the credit facility, the Company entered into an
interest rate swap to change the characteristics of the interest payments on its secured debt
facility from LIBOR to a fixed rate of 5.7325%, or 5.8325% if the Ratio falls below 2.0. The
interest rate swap agreement was not designated nor qualified as a cash flow hedge pursuant to SFAS
133, accordingly changes in the fair value of this swap are recorded in current earnings. The fair
value of the swap at September&nbsp;30, 2008 was a liability of $7.6&nbsp;million. The fair value of the
swap at December&nbsp;31, 2007 was a liability of $7.5&nbsp;million. Accordingly, the Company recorded a
non-cash decrease in the fair value of the interest rate swap of $99,000 in current earnings as an
unrealized loss for the nine months ended September&nbsp;30, 2008 and the Company recorded a non-cash
decrease in the fair value of the interest swap of $269,000 in current earnings as an unrealized
loss the three months ended September&nbsp;30, 2008. The fair market value of the Company&#146;s interest
rate swap will generally fluctuate based on the implied forward interest rate curve for the 3-month
LIBOR. If the implied forward interest rate curve decreases, the fair market value of the interest
rate swap will decrease which will result in an unrealized loss in current earnings. If the
implied forward interest rate curve increases, the fair market value of the interest rate swap will
increase and result in an unrealized gain in current earnings. In either case, changes in the
unrealized gain or loss as a result of fluctuations in the fair value of the interest rate swap did
not impact the Company&#146;s cash dividend payments.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The base floating rate of three-month LIBOR plus margin of 75 basis points for the quarters
ended September&nbsp;30, 2008 and 2007 were 2.8% and 5.36%, respectively. For the nine months ended
September&nbsp;30, 2008 the Company had approximately $2.7&nbsp;million of reclassifications to increase
interest expense. For the nine months ended September&nbsp;30, 2007 the Company had approximately
$653,000 of reclassifications to decrease interest expense. These reclassifications did not impact
the Company&#146;s obligations under its credit facility. These amounts represent the net payments made
under the swap agreement that represent interest costs paid in excess of the variable interest
incurred or interest benefit realized under the interest rate swap agreement. The following table
summarizes interest expense incurred under the Company&#146;s credit facility and interest rate swap
agreement for the nine months ended September&nbsp;30, 2008 and September&nbsp;30, 2007, exclusive of
amortized deferred debt issuance costs and other interest costs:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Nine months ended</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Nine months ended</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">September 30, 2008</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">September 30, 2007</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7">(In thousands of $)</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest related to floating rate debt facility</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">7,319</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">10,630</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest cost (benefit)&nbsp;related to swap agreement</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,694</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(653</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" nowrap align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total interest incurred under debt facility and interest rate swap</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">10,013</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">9,977</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" align="left" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except for the interest rate swap, the Company had no other outstanding derivative instruments
as of September&nbsp;30, 2008 and December&nbsp;31, 2007.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company is exposed to credit risk in the event of non-performance by the counter-parties
to its swap contracts. The Company minimizes its credit risk on these transactions by endeavoring
to only deal with credit-worthy financial institutions, and therefore the Company views the risk of
non-performance by the counter-parties as low.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>10. FAIR VALUE MEASUREMENT</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under SFAS 157, fair value is defined as the exit price, or the amount that would be received
to sell an asset or paid to transfer a liability in an orderly transaction between market
participants as of the measurement date. SFAS 157 also establishes a hierarchy for inputs used in
measuring fair value that maximizes the use of observable inputs and minimizes the use of
unobservable inputs by requiring that the most observable inputs be used when available.
Observable inputs are inputs market participants would use in valuing the asset or liability
developed based on market data obtained from sources independent of the Company. Unobservable
inputs are inputs that reflect the Company&#146;s assumptions about the factors market participants
would use in valuing the asset or liability developed based upon the best information available in
the circumstances. The hierarchy is broken down into three levels. Level 1 inputs are quoted
prices (unadjusted)&nbsp;in active markets for identical assets or liabilities. Level 2 inputs include
quoted prices for similar assets or liabilities in active markets, quoted prices for identical or
similar assets or liabilities in markets that are not active, and inputs (other than quoted prices)
that are observable for the asset or liability, either directly or indirectly. Level 3 inputs are
unobservable inputs for the asset or liability.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Categorization within the valuation hierarchy is based upon the lowest level of input that is
significant to the fair value measurement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For the Company, effective January&nbsp;1, 2008, fair value under SFAS 157 (as impacted by FSP Nos.
157-1 and 157-2) principally applied to a certain derivative instrument, namely the interest rate
swap. Interest rate swaps were previously and will continue to be marked-to-market at each
reporting period; however, the definition of fair value used for these marks-to-market are now
applied using SFAS 157.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company considers interest rate swaps as level 2 measurements. For level 2 derivatives,
Arlington uses inputs other than quoted prices that are observable for the asset or liability. The
level 2 derivative positions are valued using standard calculations/models that use as their basis
readily observable market parameters. The resulting valuations are validated through a
counterparty and third party quotes on a quarterly basis. As discussed in Note 9, the fair value
of the swap at September&nbsp;30, 2008 was a liability of $7.6&nbsp;million.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>11. SHARE CAPITAL</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of September&nbsp;30, 2008 and December&nbsp;31, 2007, the Company&#146;s authorized share capital is
comprised of 12,000 founder shares, par value $1.00 per share, which have been authorized but not
issued, 60,000,000 common shares, par value $0.01 per share, and 4,000,000 preference shares, par
value $0.01 per share. In June&nbsp;2008, in connection with the Rights Agreement described below, the
Company designated 60,000 of such preference shares as &#147;Series&nbsp;A Junior Participating Preference
Shares.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Effective June&nbsp;26, 2008, the Board of Directors of the Company declared a dividend of one
right (collectively, the &#147;Rights&#148;) to buy one one-thousandth of a Series&nbsp;A Junior Participating
Preferred Share for each outstanding common share to shareholders of record at the close of
business on July&nbsp;7, 2008. Initially, the Rights are not exercisable and will be attached to all
certificates representing outstanding common shares, and no separate Rights Certificates will be
distributed. The Rights will expire at the close of business on June&nbsp;26, 2018 unless earlier
redeemed or exchanged. Until a Right is exercised, the holder thereof, as such, will have no
rights as a shareholder of the Company, including the right to vote or to receive dividends. The
rights are not immediately exercisable. Subject to the terms and conditions of the Rights Agreement
entered into by the Company with American Stock Transfer &#038; Trust Company, LLC, as Rights Agent (the
&#147;Rights Agreement&#148;), the Rights will become exercisable upon the earlier of (1)&nbsp;10 business days
following the later of (a)&nbsp;the first date of a public announcement that a person or group (an
&#147;Acquiring Person&#148;) acquires, or obtained the right to acquire, beneficial ownership of 20% or more
of the outstanding common shares or (b)&nbsp;the first date on which an executive officer of the Company
has actual knowledge that an Acquiring Person has become such or (2)&nbsp;10 business days following the
commencement of a tender offer or exchange offer that would result in a person or group
beneficially owning 20% or more of the outstanding common shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each right entitles the holder to purchase one one-thousandth of a Series&nbsp;A Junior Preferred
Share at an initial purchase price of $95.00 in cash, subject to adjustment. In the event that any
person or group becomes an Acquiring Person, unless the event causing the 20% threshold to be
crossed is an offer permitted pursuant to the Rights Agreement, each Right not owned by the
Acquiring Person will entitle its holder to receive, upon exercise, that number of common shares
(or in certain circumstances, cash, property or other
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">securities of the Company), which equals the exercise price of the Right divided by 50% of the
current market price (as defined in the Rights Agreement) per common share at the date of the
occurrence of the event. In the event that, at any time after any person or group becomes an
Acquiring Person, (i)&nbsp;the Company is consolidated with, or merged with and into, another entity and
the Company is not the surviving entity of such consolidation or merger (other than a consolidation
or merger which follows an offer permitted pursuant to the Rights Agreement) or if the Company is
the surviving entity, but its outstanding common shares are changed or exchanged for shares or
securities (of any other person) or cash or any other property, or (ii)&nbsp;more than 50% of the
Company&#146;s assets or earning power is sold or transferred, each holder of a Right (except Rights
which previously have been voided as set forth in the Rights Agreement) shall thereafter have the
right to receive, upon exercise, that number of common shares of the acquiring company which equals
the exercise price of the Right divided by 50% of the current market price of such common shares at
the date of the occurrence of the event.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prior to the execution of the Merger Agreement, the Company entered into an amendment to the
Rights Agreement. Such amendment, among other things, renders the Rights Agreement inapplicable to
the Amalgamation and the Merger.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of September&nbsp;30, 2008 and December&nbsp;31, 2007, the Company had 15,500,000 common shares
issued, outstanding and fully paid. There were no founder or preference shares issued and
outstanding.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>12. COMMITMENTS AND CONTINGENCIES</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>September 30, 2008</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>December 31, 2007</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7"><B>(In thousands of $)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Ship mortgages</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">229,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">229,500</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of September&nbsp;30, 2008 and December&nbsp;31, 2007, ship mortgages represent first mortgages on
the eight Vessels as collateral for amounts outstanding under the secured credit facility with a
maturity date of January&nbsp;11, 2011.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The minimum future Vessel operating expenses to be paid by the Company under the ship
management agreements in effect as of September&nbsp;30, 2008 that will expire in 2008, 2009, and 2010,
and which increase 5% per year on November 9<SUP style="font-size: 85%; vertical-align: text-top">th</SUP>, and assuming that the charter options
will be exercised through 2011, 2012, and 2013 is $97.6&nbsp;million. Below is a summary by year of the
minimum future Vessel operating expenses:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Year</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Minimum Future Vessel Operating Expenses</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>(In thousands of $)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2008</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,189</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,275</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2010</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,339</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2011</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,792</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2012</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,972</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Thereafter</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,024</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company has guaranteed the obligations of each of the Vessel Subsidiaries under the
charters and ship management agreements described in Note 1.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company has entered into a registration rights agreement with subsidiaries of Stena and
Concordia and the companies owned by Stena and Fram pursuant to which the Company has agreed to
register the shares owned by such companies for sale to the public. The Company&#146;s expenses under
this agreement are limited to the first $0.5&nbsp;million and 50% of the expenses thereafter. As of
September&nbsp;30, 2008 no such expenses had been incurred.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Effective July&nbsp;12, 2005, the Company adopted a tax-qualified employee savings plan (the
&#147;Savings Plan&#148;). Pursuant to Section 401(k) of the Internal Revenue Code of 1986, as amended,
eligible employees of the Company are able to make deferral contributions, subject to limitations
under applicable law. Participants&#146; accounts are self-directed and the Company bears all costs
associated with administering the Savings Plan. The Company matches 100% eligible compensation
deferred by employees. All of the Company&#146;s employees are eligible to participate in the Savings
Plan. The Company has elected to operate the Savings Plan under
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->19<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">applicable safe harbor provisions of the Code, whereby among other things, the Company must
make contributions for all eligible employees and all matches contributed by the Company
immediately vest 100%. For the nine months ended September&nbsp;30, 2008 the Company&#146;s matching
contribution was $32,300.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>13. RELATED PARTY TRANSACTIONS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As described in Note 1, the Company was formed for the purpose of acquiring the six Initial
Vessels from subsidiaries of Stena, Concordia and companies owned jointly by Stena and Fram. The
acquisition was completed in November&nbsp;2004. In January&nbsp;2006 the Company acquired the two Additional
Vessels from Stena. Prior to their acquisitions, the Vessels were traded in the spot market. The
Company has entered into time charters for the eight Vessels with subsidiaries of Stena and
Concordia that expire in 2008 with respect to two of the Vessels, in 2009 with respect to four of
the Vessels and in 2010 with respect to two of the Vessels. The revenue received from Stena and
Concordia for the nine months ended September&nbsp;30, 2008 under these contracts was $52.8&nbsp;million.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company has also entered into ship management arrangements with a subsidiary of Stena that
expire in 2008, 2009, and 2010. The amounts charged by this Stena subsidiary under these agreements
for the nine months ended September&nbsp;30, 2008 was $15.6&nbsp;million.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>14. SUBSEQUENT EVENTS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On October&nbsp;21, 2008, the Company declared a cash dividend of $8,835,000, or $0.57 per share,
and paid that dividend on November&nbsp;4, 2008 to shareholders of record as of October&nbsp;31, 2008.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->20<!-- /Folio -->
</DIV>




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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left">
<A name="108"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;2. Management&#146;s Discussion and Analysis of Financial Condition and Results of Operations</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">Forward Looking Statements
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Quarterly Report on Form 10-Q contains certain forward-looking statements and information
relating to us that are based on beliefs of our management as well as assumptions made by us and
information currently available to us, in particular in this &#147;Item&nbsp;2. Management&#146;s Discussions and
Analysis of Financial Condition and Results of Operations.&#148; When used in this document, words such
as &#147;believe,&#148; &#147;intend,&#148; &#147;anticipate,&#148; &#147;estimate,&#148; &#147;project,&#148; &#147;forecast,&#148; &#147;plan,&#148; &#147;potential,&#148;
&#147;will,&#148; &#147;may,&#148; &#147;should,&#148; and &#147;expect&#148; and similar expressions are intended to identify
forward-looking statements but are not the exclusive means of identifying such statements. All
statements in this document that are not statements of historical fact are forward-looking
statements. Forward-looking statements include, but are not limited to, such matters as:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our ability to consummate our pending combination with General Maritime Corporation;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>future operating or financial results;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>future payments of quarterly dividends and the availability of cash for payment of
quarterly dividends;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>statements about future, pending or recent acquisitions, business strategy, areas of
possible expansion, and expected capital spending or operating expenses;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>statements about tanker market trends, including charter rates and factors affecting
vessel supply and demand;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>expectations about future revenues from sub-charters;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>expectations about the availability of vessels to purchase, the time which it may take to
construct new vessels, or vessels&#146; useful lives; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our ability to repay our secured credit facility at maturity, to obtain additional
financing and to obtain replacement charters for our Vessels.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Such statements reflect our current views with respect to future events and are subject to
certain risks, uncertainties and assumptions. Many factors could cause our actual results,
performance or achievements to be materially different from any future results, performance or
achievements that may be expressed or implied by such forward-looking statements, including, among
others, the factors described in Part&nbsp;II, Item&nbsp;1A below under the heading &#147;Risk Factors&#148; and the
factors otherwise referenced in this report. Should one or more of these risks or uncertainties
materialize, or should underlying assumptions prove incorrect, actual results may vary materially
from those described in the forward-looking statements included herein. We do not intend, and do
not assume any obligation, to update these forward-looking statements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You should read this information together with our consolidated financial statements and
related notes included in &#147;Item&nbsp;1. Financial Statements.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>OVERVIEW</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are an international seaborne transporter of crude oil and petroleum products. We were
incorporated in September&nbsp;2004 under the laws of Bermuda.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In November&nbsp;2004, we completed our initial public offering by issuing and selling to the
public 11,450,000 common shares, par value $0.01 per share, at a price to the public of $20.00 per
share, raising gross proceeds of $229&nbsp;million before the deduction of underwriting discounts,
commissions and expenses of approximately $17.7&nbsp;million. Affiliates of Stena, Concordia and Fram
sold an additional 1,717,500 shares in the initial public offering in connection with the
underwriters&#146; exercise of their over-allotment option. We did not receive any proceeds from the
sale of these shares by Stena, Concordia, and Fram. Concurrently with the closing of our initial
public offering, we completed the acquisition of our six initial vessels, which we refer to as the
Initial Vessels. In order to fund a portion of the purchase price of our Initial Vessels, we
issued a total of 4,050,000 common shares at a price of $20.00 per share to Stena, Concordia and
Fram, for total consideration of $81&nbsp;million. We financed the remainder of the purchase price of
our Initial Vessels through a secured debt financing of $135&nbsp;million, before expenses of
approximately $0.8&nbsp;million, which we terminated in
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->21<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">December of 2005. On the date that we purchased our Initial Vessels, we made a deemed
distribution of $143.3&nbsp;million to Stena, Concordia and Fram which consisted of the difference
between the $426.5&nbsp;million purchase price of our Initial Vessels and the historical book value of
$283.2&nbsp;million at which Stena, Concordia and Fram carried the Initial Vessels on their books.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stena and Concordia continue to be shareholders of the Company and, based on their filings
with the SEC, purchased an additional 3.6% of our outstanding common shares in 2007 such that, as
of May&nbsp;7, 2008, they directly and indirectly owned an aggregate of approximately 18.0% of our
outstanding common shares. As a result of Stena&#146;s purchase of additional common shares in 2007,
Stena and Concordia may be considered &#147;interested shareholders&#148; for purposes of our bye-laws.
Please see &#147;Part&nbsp;II. Item&nbsp;1A. Risk Factors &#151; Company Specific Risk Factors &#151; Stena and
Concordia&#146;s ownership interest in our company can have significant influence over our company,
including the outcome of shareholder votes and our ability to conduct future business or modify
existing agreements with Stena or Concordia.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In December&nbsp;2005, we entered into a five-year term loan agreement with The Royal Bank of
Scotland in order to (1)&nbsp;refinance our indebtedness under our prior debt facility, (2)&nbsp;finance the
purchase price of our two additional vessels, which we refer to as the Additional Vessels, from
Stena and (3)&nbsp;general corporate purposes. We completed the refinancing of our previous debt
facility in December&nbsp;2005 and completed the acquisition of the Additional Vessels in January&nbsp;2006.
The term loan agreement provides for a credit facility of $229.5&nbsp;million. The term loan agreement
matures on January&nbsp;5, 2011. All amounts outstanding under the term loan agreement must be repaid on
that maturity date. There is no principal amortization prior to maturity. Borrowings under the
term loan agreement bear interest at LIBOR plus a margin of 75 basis points. The margin would
increase to 85 basis points if the ratio of the fair market value of our Vessels to the amount
outstanding under the loan facility falls below 2.0, which we refer to as the Ratio. The increased
interest margin is equivalent to approximately $229,500 per year in increased interest costs in the
event the Ratio falls below 2.0. In connection with the term loan agreement, we entered into an
interest rate swap agreement with The Royal Bank of Scotland. As a result of this swap, we have
effectively fixed the interest rate on the term loan agreement at 5.7325%, or 5.8325% if the Ratio
falls below 2.0.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On January&nbsp;5, 2006, we entered into a series of agreements with Stena Maritime, certain
subsidiaries of Stena, Stena Bulk and Northern Marine, pursuant to which we, through our
wholly-owned subsidiaries, purchased two Additional Vessels, the <I>Stena Concept </I>and the <I>Stena
Contest</I>, from subsidiaries of Stena Maritime for a purchase price per Additional Vessel of $46
million. In connection with the acquisition of our Additional Vessels, we also entered into certain
related agreements with the Stena Parties relating to our Additional Vessels and amended certain of
our prior agreements with the Stena Parties relating to our six Initial Vessels which are described
in greater detail below under the headings &#147;Our Charters&#148; and &#147;Our Ship Management Agreements&#148;.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our eight Vessels are currently owned by eight subsidiaries that we wholly own. The primary
activity of each Vessel Subsidiary is the ownership and operation of a Vessel. The flag state of
each of our Vessels is Bermuda.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets out certain details relating to our Vessels:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Initial Charter</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Latest Charter</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Vessel Type</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Year Built</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Dwt</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Date Acquired</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Expiration Date(1)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Expiration Date (1)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>V-MAX</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><I>Stena Victory</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2001</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">314,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap  colspan="3" align="center">November 10, 2004</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">November 9, 2009</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">November 9, 2012</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><I>Stena Vision</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2001</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">314,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">November 10, 2004</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">November 9, 2009</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">November 9, 2012</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Panamax</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><I>Stena Companion</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2004</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">72,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">November 10, 2004</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">November 9, 2008</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">November 9, 2011</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><I>Stena Compatriot</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2004</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">72,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">November 10, 2004</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap>November 9, 2010</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap>November 9, 2013</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Product</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><I>Stena Concord</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2004</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47,400</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">November 10, 2004</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">November 9, 2008</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">November 9, 2011</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><I>Stena Consul</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2004</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47,400</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">November 10, 2004</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">November 9, 2010</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">November 9, 2013</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><I>Stena Concept</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2005</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47,400</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">January 5, 2006</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">January 4, 2009</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">July 4, 2011</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><I>Stena Contest</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2005</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47,400</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">January 5, 2006</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">January 4, 2009</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">July 4, 2011</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>Each of the charters contains renewal options described in greater detail below.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>PENDING MERGER WITH GENERAL MARITIME</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On August&nbsp;5, 2008, we entered into a definitive Agreement and Plan of Merger and Amalgamation
(the &#147;Merger Agreement&#148;) with General Maritime Corporation (&#147;General Maritime&#148;). The Merger
Agreement provides that, upon the terms and subject to the
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->22<!-- /Folio -->
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">conditions set forth in the Merger Agreement, Galileo Merger Corporation, a wholly-owned
subsidiary of Galileo Holding Corporation (which we refer to as &#147;New Parent&#148;), a newly-formed
subsidiary of us and General Maritime, will merge with and into General Maritime, with General
Maritime continuing as the surviving corporation of such merger, and we will amalgamate with Archer
Amalgamation Limited, a wholly owned subsidiary of New Parent, with the resulting amalgamated
company continuing as the surviving entity. As a result of such merger and amalgamation: (i)&nbsp;we
and General Maritime will each become a wholly-owned subsidiary of New Parent, which will be
renamed &#147;General Maritime Corporation&#148;; and (ii)&nbsp;our shareholders will receive 1 share in New
Parent for each of our common shares held, and General Maritime&#146;s shareholders will receive 1.34
shares in New Parent for each General Maritime share held. Upon consummation of the transactions
contemplated by the Merger Agreement, including the merger and the amalgamation, our shareholders
will hold approximately 27% of the outstanding common stock of New Parent and shareholders of
General Maritime will hold approximately 73% of the outstanding common stock of New Parent. The
Merger Agreement is subject to approval by our shareholders and by General Maritime&#146;s shareholders,
and other customary closing conditions. We have entered into an agreement with the Royal Bank of
Scotland pursuant to which certain provisions of our term loan agreement will be amended if the
transaction closes. See &#147;&#151;Liquidity and Capital Resources.&#148; Although the transaction is expected
to be completed by the end of the fourth quarter of 2008, there can be no assurance that the
transaction will be completed in a timely manner, or at all.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>OUR CHARTERS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Effective November&nbsp;10, 2004 for the Initial Vessels and January&nbsp;5, 2006 for the Additional
Vessels, we have chartered our Vessels to subsidiaries of Stena and Concordia, who we refer to as
the Charterers, under fixed rate charters with initial periods of three, four and five-years.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At the closing of the purchase of the Additional Vessels, our subsidiaries that purchased the
Additional Vessels and Stena Bulk entered into new time charter party agreements with respect to
the Additional Vessels. Under the new time charter parties, which are substantially similar to the
time charter parties that our subsidiaries have entered into for the Initial Vessels, our
subsidiaries that purchased the Additional Vessels time chartered the Additional Vessels to Stena
Bulk for an initial period of three years at a fixed daily Basic Hire without any Additional Hire
provision. In May&nbsp;2008, Stena Bulk exercised its option to extend the time charters for both
Additional Vessels for an additional 30&nbsp;months, at the fixed daily Basic Hire. As a result, there
will be an Additional Hire provision during the 30-month period. Furthermore, as a result of Stena
Bulk exercising the 30-month option, there are two additional one-year options, exercisable by
Stena Bulk, at the fixed daily Basic Hire set forth below, but without an Additional Hire
provision.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At the closing of the acquisition of the Additional Vessels, we also amended the time charter
parties for our four previously acquired Product tankers and Panamax tankers. These amendments
modified the charter periods for these four Vessels and made changes to the calculation of
Additional Hire under these time charter parties. The amendments to the terms of the charters
provided that (1)&nbsp;the initial five-year fixed term for one of the Product tankers (<I>Stena Consul</I>)
and one of the Panamax tankers (<I>Stena Compatriot</I>) was extended to November&nbsp;2010, followed by three
one-year options exercisable by Stena Bulk and (2)&nbsp;the initial five-year fixed term for one of the
Product tankers (<I>Stena Concord</I>) and one of the Panamax tankers (<I>Stena Companion</I>) was reduced so
that it expired in November&nbsp;2008, followed by three one-year options exercisable by Stena Bulk. In
May&nbsp;2008, Stena Bulk exercised the first of its three one-year options for the <I>Stena Concord </I>and
the <I>Stena Companion</I>, effective November&nbsp;11, 2008. The term of the charters for the V-MAX tankers
was not amended. The amendments to the Additional Hire provisions provided for certain favorable
adjustments to fuel consumption metrics used in the calculation of Additional Hire for the Product
tankers and Panamax tankers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Basic Hire under Our Charters</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Charters provide for the payment of Basic Hire fees that increase annually by an amount
equal to the annual increase in the fees under our ship management agreements, which are described
below under the heading &#147;Our Ship Management Agreements.&#148; The Basic Hire rate for each of the
Vessels is payable monthly in advance and will increase annually by an amount equal to the annual
increase in the fee payable under the applicable ship management agreement. Stena and Concordia
have each agreed to guarantee the obligations of their respective subsidiaries under the Charters.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->23<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth the daily Basic Hire, daily base operating costs and operating
margin for our two V-MAX vessels, the <I>Stena Vision </I>and the <I>Stena Victory</I>. The operating margin is
calculated by subtracting the amount of the base operating costs from the amount of Basic Hire.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Base</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Basic</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Operating</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Operating</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Period</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Hire</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Costs</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Margin</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Nov. 11, 2007 &#151; Nov. 10, 2008</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">36,882</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">8,682</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">28,200</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Nov. 11, 2008 &#151; Nov. 10, 2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">37,316</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,116</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28,200</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Nov. 11, 2009 &#151; Nov. 10, 2010
(Option Year 1)(1)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">37,772</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,572</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28,200</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Nov. 11, 2010 &#151; Nov. 10, 2011
(Option Year 2)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">38,251</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,051</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28,200</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Nov. 11, 2011 &#151; Nov. 10, 2012
(Option Year 3)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">38,753</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,553</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28,200</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>The Charterer has the option to extend these Charters on a vessel-by-vessel basis for 3
additional 1&nbsp;year terms. There can be no assurance that the Charterer will exercise any such
option.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth the daily Basic Hire, daily base operating costs and operating
margin for two of our vessels, the <I>Stena Companion </I>and the <I>Stena Concord</I>, with initial charter
expiration dates in 2008<I>.</I>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="28%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="11" style="border-bottom: 1px solid #000000"><B><I>Stena Companion</I></B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="11" style="border-bottom: 1px solid #000000"><B><I>Stena Concord</I></B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Base</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Base</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Basic</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Operating</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Operating</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Basic</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Operating</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Operating</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Period</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Hire</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Costs</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Margin</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Hire</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Costs</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Margin</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Nov. 11, 2007 &#151;
Nov. 10, 2008</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">18,306</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">6,656</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">11,650</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">16,335</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">6,135</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">10,200</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Nov. 11, 2008 &#151;
Nov. 10, 2009<BR>
(Option Year 1)(1)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,639</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,989</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,650</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,642</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,442</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,200</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Nov. 11, 2009 &#151;
Nov. 10, 2010 (Option Year 2)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,989</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,339</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,650</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,964</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,764</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,200</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Nov. 11, 2010 &#151;
Nov. 10, 2011 (Option Year 3)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19,356</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,706</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,650</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,303</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,103</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,200</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>The Charterer has the option to extend these Charters on a vessel-by-vessel basis for 3
additional 1&nbsp;year terms. In May&nbsp;2008, the Charterer exercised the first of these one-year options
for both vessels. There can be no assurance that the Charterer will exercise any additional
options.</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio -->24<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">






<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth the daily Basic Hire, daily base operating costs and operating
margin for two of our vessels, the <I>Stena Compatriot </I>and the <I>Stena Consul, </I>with initial charter
expiration dates in 2010<I>.</I>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="28%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>

<TD nowrap align="center" colspan="11" style="border-bottom: 1px solid #000000"><B><I>Stena
Compatriot</I></B></TD>
    <TD>&nbsp;</TD>

<TD nowrap align="center" colspan="11" style="border-bottom: 1px solid #000000"><B><I>Stena
Consul</I></B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Base</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Base</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Basic</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Operating</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Operating</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Basic</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Operating</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Operating</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Period</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Hire</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Costs</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Margin</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Hire</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Costs</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Margin</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Nov. 11, 2007 &#151;
Nov. 10, 2008</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">18,306</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">6,656</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">11,650</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">16,335</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">6,135</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">10,200</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Nov. 11, 2008 &#151;
Nov. 10, 2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,639</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,989</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,650</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,642</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,442</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,200</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Nov. 11, 2009 &#151;
Nov. 10, 2010</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,989</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,339</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,650</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,964</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,764</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,200</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Nov. 11, 2010 &#151;
Nov. 10, 2011 (Option Year 1)(1)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19,356</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,706</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,650</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,303</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,103</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,200</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Nov. 11, 2011 &#151;
Nov. 10, 2012 (Option Year 2)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19,741</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,091</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,650</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,658</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,458</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,200</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Nov. 11, 2012 &#151;
Nov. 10, 2013 (Option Year 3)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,145</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,495</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,650</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,031</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,831</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,200</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>The Charterer has the option to extend these Charters on a vessel-by-vessel basis for 3
additional 1&nbsp;year terms. There can be no assurance that the Charterer will exercise any such
option.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth the daily Basic Hire, daily base operating costs and operating
margin for our two Additional Vessels, the <I>Stena Concept </I>and the <I>Stena Contest.</I>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Base</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Basic</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Operating</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Operating</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Period</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Hire</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Costs</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Margin</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Jan. 5, 2007 &#151; Jan 4, 2008</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">20,043</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">5,843</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">14,200</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Jan. 5, 2008 &#151; Jan. 4, 2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,335</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,135</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,200</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Jan. 5, 2009 &#151; Jan. 4, 2010
(Option Period 1)(1)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,942</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,442</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,500</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Jan. 5, 2010 &#151; Jan. 4, 2011
(Option Period 1)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,264</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,764</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,500</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Jan. 5, 2011 &#151; July&nbsp;4, 2011
(Option Period 1)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,603</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,103</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,500</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">July&nbsp;5, 2011 &#151; July&nbsp;4, 2012
(Option Period 2) (2)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,158</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,458</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,700</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">July&nbsp;5, 2012 &#151;  July&nbsp;4, 2013
(Option Period 3)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,531</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,831</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,700</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>In May&nbsp;2008, the Charterer exercised its option to extend these Charters for an
additional 30-month period expiring on July&nbsp;4, 2011. As a result, we will be eligible to earn
Additional Hire in addition to Basic Hire during this 30-month period.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>This period is the first for which the Charterer has the option to extend these Charters
as a result of exercising the option described in Footnote 1 above. We would not be eligible to
earn Additional Hire over the term of any extension. There can be no assurance that the Charterer
will exercise any such option.</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio -->25<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">






<DIV align="left" style="font-size: 10pt; margin-top: 12pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Additional Hire under Our Charters</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under the Charters, in addition to the fixed rate Basic Hire, each Initial Vessel has the
possibility of receiving Additional Hire from the Charterers through profit sharing arrangements
related to the performance of the tanker markets on specified geographic routes, or from actual
time charter rates. The Additional Hire, if any, in respect of each Initial Vessel, is payable on
the 25th day following the end of each calendar quarter. Additional Hire is not guaranteed under
our Charters.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Additional Hire, if any, payable in respect of an Initial Vessel, other than the V-MAX
tankers as described below, for any calendar quarter is an amount equal to 50% of the weighted
average hire, calculated as described below, for the quarter after deduction of the Basic Hire in
effect for that quarter. The weighted average hire is a daily rate equal to the weighted average of
the following amounts:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a weighted average of the time charter hire per day received by the Charterer for any
periods during the calculation period, determined as described below, that the Initial
Vessel is sub-chartered by the Charterer under a time charter, less ship broker commissions
paid by the Charterer in an amount not to exceed 2.5% of such time charter hire and
commercial management fees paid by the Charterer in an amount not to exceed 1.25% of such
time charter hire; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the time charter equivalent hire for any periods during the calculation period that the
Vessel is not sub-chartered by the Charterer under a time charter.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The calculation period is the twelve-month period ending on the last day of each calendar
quarter, except that in the case of the first three full calendar quarters following the
commencement of our Charters, the calculation period is the three, six and nine month periods,
respectively, ending on the last day of such calendar quarter and the first calendar quarter also
includes the period from the date of the commencement of our charters to the commencement of the
first full calendar quarter.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As a result of Stena Bulk exercising its option to extend the Charters for the Additional
Vessels, we will become eligible to earn Additional Hire for those Vessels during the 30-month
period commencing January&nbsp;5, 2009.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At the time we acquired our two V-MAX tankers, these Vessels were sub-chartered by Concordia
to Sun International Limited Bermuda, which we refer to as Sun International, an indirect wholly
owned subsidiary of Sunoco, Inc.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The sub-charter with Sun International relating to the <I>Stena Victory </I>expired on October&nbsp;20,
2007. The sub-charter with Sun International relating to the <I>Stena Vision </I>expired on September&nbsp;11,
2008.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The sub-charter rate that Concordia received from Sun International with respect to the <I>Stena
Victory </I>and the <I>Stena Vision </I>was greater than the Basic Hire rate that we received from Concordia.
Therefore, we earned Additional Hire revenue while the <I>Stena Victory </I>and <I>Stena Vision </I>were
sub-chartered to Sun International. The amount of this Additional Hire was equal to the difference
between the amount paid by Sun International under its sub-charters with Concordia and the Basic
Hire rate in effect, less ship broker commissions paid by the Charterer in an amount not to exceed
2.5% of the charterhire received by the Charterer and commercial management fees paid by the
Charterer in an amount not to exceed 1.25% of the charterhire received by the Charterer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Immediately following the expiration of the respective Sun International sub-charter of the
<I>Stena Victory </I>and the <I>Stena Vision</I>, each Vessel commenced operating under a new two-year
sub-charter agreement between Concordia and Eiger Shipping S.A. (&#147;Eiger Shipping&#148;), an affiliate of
the shipping branch of LukOil commonly know as Litasco. The sub-charter rate that Eiger Shipping
is obligated to pay to Concordia is greater than the Basic Hire rate that we will receive from
Concordia. Therefore, we expect to earn Additional Hire revenue while the V-MAX vessels are under
the Eiger Shipping sub-charters in addition to the Basic Hire. The Additional Hire revenue will not
be exposed to fluctuations in spot market rates. Additional Hire for the V-MAX tankers under the
Eiger Shipping sub-charters will be based on the time charter hire received by Concordia under the
sub-charters. Additional Hire revenues under the Eiger Shipping sub-charters are not guaranteed,
meaning that we will earn Additional Hire only when the Vessels are in service. In the event that
the V-MAX tankers are off-hire, we will not be eligible to earn Additional Hire revenue from the
profit sharing provisions on the days that the Vessel is off-hire. Based on the time charter rates
under the Eiger Shipping sub-charters and assuming that both V-MAX vessels operate for 90&nbsp;days per
quarter, we expect the V-MAX tankers to generate Additional Hire revenues of approximately $350,000
per Vessel per quarter in addition to the Basic Hire levels, while the Vessels are sub-chartered to
Eiger Shipping.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->26<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>OUR SHIP MANAGEMENT AGREEMENTS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our Vessel Subsidiaries have entered into fixed-rate ship management agreements with Northern
Marine. Under the ship management agreements, Northern Marine is responsible for all technical
management of the Vessels, including crewing, maintenance, repair, drydockings, vessel taxes and
other vessel operating and voyage expenses. Northern Marine has outsourced some of these services
to third-party providers. We have agreed to guarantee the obligations of each of our Vessel
Subsidiaries under the ship management agreements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At the closing of the acquisition of the Additional Vessels, the ship management agreements
for our Initial Vessels were amended. These amendments included modifications to the provisions
relating to drydocking of the Vessels. Specifically, the amendments provided that all drydockings
that occur during the term of the ship management agreements are to be at the sole cost and expense
of Northern Marine. Under the terms of the amended ship management agreements, the cost of these
intermediate and special surveys is covered by a portion of the monthly vessel management fees that
we pay to Northern Marine. We refer to such portion of the vessel management fees as the
&#147;Drydocking Provision.&#148; Upon redelivery of the Vessels to us at the expiration of the ship
management agreements, Northern Marine has agreed to return to us any Drydocking Provision paid,
but not used, from the completion of the last drydocking during the term of the applicable Ship
Management Agreement (or if no drydocking occurs during the term of such agreement, from the date
of commencement of such agreement), to the date of redelivery. The amount of the Drydocking
Provision that may be paid to us will be paid at the daily rates specified in the applicable ship
management agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under the ship management agreements, Northern Marine has agreed to return the Vessels
in-class and in the same good order and condition as when delivered, except for ordinary wear and
tear.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Northern Marine is also obligated under the ship management agreements to maintain insurance
for each of our Vessels, including marine hull and machinery insurance, protection and indemnity
insurance (including pollution risks and crew insurances), war risk insurance and off-hire
insurance. Under the ship management agreements, we pay Northern Marine a fixed fee per day per
Vessel for all of the above services, which increases 5% per year, for so long as the relevant
charter is in place. Under the ship management agreements, Northern Marine has agreed to indemnify
us for the loss of the Basic Hire for each of the Vessels in the event, for circumstances specified
under the charters, the Vessel is off-hire or receiving reduced hire for more than five days during
any twelve-month period, net of amounts received by us from off-hire insurance. Stena has agreed
to guarantee this indemnification by Northern Marine. Both we and Northern Marine have the right
to terminate any of the ship management agreements if the relevant charter has been terminated.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tables setting forth the daily base operating costs for each of our Vessels can be found above
in the section entitled &#147;&#151;Basic Hire under Our Charters.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have also agreed to pay to Northern Marine an incentive fee for each day a Vessel is on
hire for over 360&nbsp;days during any twelve-month period following the date the applicable Vessel was
delivered to us in amount equal to the daily Basic Hire for such Vessel. If we terminate the ship
management agreements with Northern Marine because Northern Marine has failed to perform its
obligations under such agreements, Stena has agreed to provide a replacement ship manager to
perform the obligations set forth in the ship management agreements on the same terms and for the
same fixed amounts payable to Northern Marine.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Northern Marine provides technical and crewing management and payroll and support services to
the Stena Sphere shipping divisions and several other clients, including ChevronTexaco Corporation,
Technip Offshore UK and Gulf Marine Management. Northern Marine has offices in Glasgow, Aberdeen,
Mumbai, Kiel, Houston, Manila, Rotterdam and Singapore and has over 4,400 seafarers employed on
approximately 90 vessels.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>DIVIDEND POLICY</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have paid quarterly cash dividends on our common shares since our initial public offering
in November&nbsp;2004 in amounts substantially equal to the charterhire received by us under the
Charters, less cash expenses and any cash reserves established by our Board of Directors. We have
generally declared these dividends in January, April, July and October of each year and made
payments in the subsequent month. Distributions to shareholders are applied first to retained
earnings. When retained earnings are not sufficient, distributions are applied to additional
paid-in capital.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There are restrictions that limit our ability to declare dividends, including those
established under Bermuda law and under our existing secured term loan agreement. The terms of any
future indebtedness we may enter into, including indebtedness that refinances our existing secured
credit facility, may have stricter restrictions on our ability to pay dividends. Furthermore,
higher interest rates or different repayment terms of future indebtedness, such as principal
amortization requirements, may reduce the amount of cash that we would have available to pay future
dividends. In addition to the discussion below, please see &#147;Part&nbsp;II. Item&nbsp;1A. Risk Factors &#151;
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Company Specific Risk Factors &#151; We cannot assure you that we will pay any dividends,&#148; &#147;&#151; If
we cannot refinance our secured credit facility, or in the event of a default under the facility,
we may have to sell our Vessels, which may leave no additional funds for distributions to
shareholders&#148; and &#147;&#151;We may not be able to re-charter our Vessels profitably after they expire,
unless they are extended at the option of the Charterers.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under Bermuda law a company may not declare or pay dividends if there are reasonable grounds
for believing either that the company is, or would after the payment be, unable to pay its
liabilities as they become due, or that the realizable value of its assets would thereby be less
than the sum of its liabilities and its issued share capital, which is the par value of our shares
and share premium accounts, which is the amount of consideration paid for the subscription of
shares in excess of the par value of those shares. As a result, in future years, if the realizable
value of our assets decreases, our ability to pay dividends may require our shareholders to approve
resolutions reducing our share premium account by transferring an amount to our contributed surplus
account.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The declaration and payment of any dividends must be approved by our Board of Directors.
Under the terms of our credit facility, we may not declare or pay any dividends if we are in
default under the credit facility.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There can be no assurance that we will not have other cash expenses, including extraordinary
expenses, which could include the costs of claims and related litigation expenses. There can be no
assurance that we will not have additional expenses or liabilities, that the amounts currently
anticipated for the items set forth above will not increase, that we will not have to fund any
required capital expenditures for our Vessels or that our Board of Directors will not determine to
establish cash reserves. The vessel operating expenses payable under our ship management
agreements are fixed over the periods specified in those agreements. However, our cash
administrative expenses, primarily related to salaries and benefits, travel and entertainment
expenses, office costs, general insurance and other administrative costs, are not fixed, and may
increase or decrease each year based on the factors described above in this paragraph.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company is not providing dividend guidance for the remainder of 2008 and beyond because
future dividends will be the responsibility of the combined company in the pending combination with
General Maritime, assuming the transaction closes before the end of 2008.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In January&nbsp;2008, we declared a dividend of $0.56 per share, and paid that dividend on February
12, 2008 to shareholders of record as of February&nbsp;8, 2008. The January&nbsp;2008 dividend was based on
our operating results for the fourth quarter ended December&nbsp;31, 2007. In that period, we earned
Additional Hire of $900,000, including Additional Hire on our V-MAX vessels of approximately
$600,000 and Additional Hire of approximately $300,000 on our two Product tankers and our two
Panamax tankers that are currently eligible to earn Additional Hire. In April&nbsp;2008, we declared a
dividend of $0.56 per share and paid that dividend on May&nbsp;6, 2008 to shareholders of record as of
May&nbsp;2, 2008. The April&nbsp;2008 dividend was based on our operating results for the first quarter
ended March&nbsp;31, 2008. In that period, we earned Additional Hire of $800,000, including Additional
Hire on our V-MAX vessels of approximately $600,000 and Additional Hire of approximately $200,000
on our two Product tankers and our two Panamax tankers that are currently eligible to earn
Additional Hire. In July&nbsp;2008, we declared a dividend of $0.56 per share and paid that dividend on
August&nbsp;5, 2008 to shareholders of record as of August&nbsp;1, 2008. The July&nbsp;2008 dividend was based on
our operating results for the second quarter ended June&nbsp;30, 2008. In that period, we earned
Additional Hire of $900,000, including Additional Hire on our V-MAX vessels of approximately
$600,000 and Additional Hire of approximately $300,000 on our two Product tankers and our two
Panamax tankers that are currently eligible to earn Additional Hire. In October&nbsp;2008, we declared a
dividend of $0.57 per share and paid that dividend on November&nbsp;4, 2008 to shareholders of record as
of October&nbsp;31, 2008. The October&nbsp;2008 dividend was based on our operating results for the third
quarter ended September&nbsp;30, 2008 and the draw down of $2.2&nbsp;million of cash reserves that were
previously established by our Board of Directors. In that period, we earned Additional Hire of
$1.2&nbsp;million, including Additional Hire on our V-MAX vessels of approximately $700,000 and
Additional Hire of approximately $500,000 on our two Panamax tankers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In January&nbsp;2007, we declared a dividend of $0.57 per share, and paid that dividend on February
12, 2007 to shareholders of record as of February&nbsp;9, 2007. The January&nbsp;2007 dividend was based on
our operating results for the fourth quarter ended December&nbsp;31, 2006. In that period, we earned
Additional Hire of $1.0&nbsp;million, including Additional Hire on our V-MAX vessels of $600,000 and
Additional Hire of $400,000 on our Product and Panamax tankers. In April&nbsp;2007, we declared a
dividend of $0.58 per share, and paid that dividend on May&nbsp;7, 2007 to shareholders of record as of
May&nbsp;4, 2007. The April&nbsp;2007 dividend was based on our operating results for the first quarter ended
March&nbsp;31, 2007. In that period, we earned Additional Hire of $1.1&nbsp;million, including Additional
Hire on our V-MAX vessels of $539,000 and Additional Hire of $514,000 on our two Product tankers
and our two Panamax tankers that are currently eligible to earn Additional Hire. In July&nbsp;2007, we
declared a dividend of $0.59 per share, and paid that dividend on August&nbsp;6, 2007 to shareholders of
record as of August&nbsp;3, 2007. The July&nbsp;2007 dividend was based on our operating results for the
second quarter ended June&nbsp;30, 2007. In that period, we earned Additional Hire of $1.3&nbsp;million,
including Additional Hire on our V-MAX vessels of $545,000 and Additional Hire of $751,000 on our
two Product tankers and our two Panamax tankers that are
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">currently eligible to earn Additional Hire. In October&nbsp;2007, we declared a dividend of $0.59
per share, and paid that dividend on November&nbsp;6, 2007 to shareholders of record as of November&nbsp;2,
2007. The October&nbsp;2007 dividend was based on our operating results for the third quarter ended
September&nbsp;30, 2007. In that period, we earned Additional Hire of $1.0&nbsp;million, including Additional
Hire on our V-MAX vessels of approximately $600,000 and Additional Hire of approximately $400,000
on our two Product tankers and our two Panamax tankers that are currently eligible to earn
Additional Hire.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>RESULTS OF OPERATIONS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>Three Months Ended September&nbsp;30, 2008 Compared to the Three Months Ended September&nbsp;30, 2007</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 1%"><B>Total operating revenues</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating revenues were $17.9&nbsp;million for the three months ended September&nbsp;30, 2008
compared to $17.5&nbsp;million for the three months ended September&nbsp;30, 2007. Revenues for the three
months ended September&nbsp;30, 2008 consisted of $16.7&nbsp;million in Basic Hire and approximately $1.2
million in Additional Hire. During the three months ended September&nbsp;30, 2008, the Charterers
operated our two Panamax tankers, both of which are eligible to earn Additional Hire, on time
charters at a rate of $27,000 per day. These operations resulted in payment to us of approximately
$500,000 of Additional Hire. In addition, the two V-MAX tankers generated approximately $700,000 of
Additional Hire during the third quarter.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We expect that total operating revenues for 2008, including anticipated Additional Hire
revenues from our V-MAX tankers in 2008, and September&nbsp;2008&nbsp;year-to-date Additional Hire revenues
from our profit sharing arrangements for the two Product and two Panamax tankers, will be
approximately $70.0&nbsp;million.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Vessels had 7.81&nbsp;days and 7&nbsp;days, respectively, off-hire during the three months ended
September&nbsp;30, 2008 and 2007.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 1%"><B>Total vessel operating expenses</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total vessel operating expenses were $5.1&nbsp;million for the three months ended September&nbsp;30,
2008 compared to $4.9&nbsp;million for the three months ended September&nbsp;30, 2007. The increase in vessel
operating expenses reflects the increase in the vessel management fees under the vessel management
agreements with Northern Marine. We expect vessel operating expenses in 2008 to be approximately
$20.3&nbsp;million principally due to the annual increases in vessel management fees to Northern Marine.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 1%"><B>Depreciation</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation was $3.9&nbsp;million for the three months ended September&nbsp;30, 2008 and 2007. We
estimate that depreciation in 2008 will be approximately $15.6&nbsp;million.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 1%"><B>Administrative expenses</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Administrative expenses were $2.7&nbsp;million for the three months ended September&nbsp;30, 2008
compared to $564,000 for the three months ended September&nbsp;30, 2007. The administrative expenses in
the third quarter of 2008 were higher than in the third quarter of 2007, primarily as a result of
costs associated with our entering into the Merger Agreement. During the third quarter of 2008, we
incurred approximately $2.3&nbsp;million in administrative expenses related to our pending combination
with General Maritime. We estimate that administrative expenses for 2008 will be approximately
$5.4&nbsp;million. This estimate includes $3.2&nbsp;million of advisory and legal fees related to the
pending General Maritime combination.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 1%"><B>Net Other Expense</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net other expense represents interest expense, net of interest income and other financial
items. Net other expense was $3.7&nbsp;million for the three months ended September&nbsp;30, 2008, compared
to $8.2&nbsp;million for the three months ended September&nbsp;30, 2007. For the three months ended September
30, 2008, net other expense includes $3.4&nbsp;million in interest expense related to our credit
facility with The Royal Bank of Scotland, which matures in January&nbsp;2011 and an unrealized loss of
$269,000 on our interest rate swap, offset by $68,000 of interest income. Net other expense of $8.2
million for the three months ended September&nbsp;30, 2007 reflects interest expense of $3.4&nbsp;million on
our credit facility with The Royal Bank of Scotland and an unrealized loss of $5.0&nbsp;million on our
interest rate swap, offset by $216,000 of interest income.
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;With respect to our $229.5&nbsp;million term loan credit facility, by entering into an interest
rate swap agreement, we have effectively fixed the interest rate under the facility at 5.7325%
(5.8325% if the ratio of the value of our Vessels to the amount outstanding under the loan facility
falls below 2.0) for the five-year term. The interest rate swap agreement was not designated nor
qualified as a cash flow hedge pursuant to SFAS No.&nbsp;133. Accordingly, changes in the fair value of
this swap are recorded in current earnings. The fair value of the swap at September&nbsp;30, 2008 was a
liability of $7.6&nbsp;million. The fair value of the swap at June&nbsp;30, 2008 was a liability of $7.3
million. Accordingly, we recorded a non-cash decrease in the fair value of the interest rate swap
of $269,000 in current earnings as an unrealized loss in the third quarter of 2008. In the third
quarter of 2007, we recorded a non-cash decrease in the fair value of the interest rate swap of
$5.0&nbsp;million in current earnings as an unrealized loss.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Based upon the effectively fixed interest rate under the terms of the swap agreement, we
estimate that interest expense under the $229.5&nbsp;million secured credit facility with The Royal Bank
of Scotland plc, which matures in January&nbsp;2011, will be approximately $13.2&nbsp;million per year.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B><I>Nine Months Ended September&nbsp;30, 2008 Compared to the Nine Months Ended September&nbsp;30, 2007</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 1%"><B>Total operating revenues</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating revenues were $52.8&nbsp;million for the nine months ended September&nbsp;30, 2008
compared to $52.6&nbsp;million for the nine months ended September&nbsp;30, 2007. Revenues for the nine
months ended September&nbsp;30, 2008 consisted of $49.9&nbsp;million in Basic Hire and $2.9&nbsp;million in
Additional Hire. During the nine months ended September&nbsp;30, 2008, the Charterers operated our two
Product tankers that are currently eligible to earn Additional Hire in the spot market. Beginning
in January&nbsp;2008, the Charterers operated our two Panamax tankers pursuant to time charters at a
rate of $27,000 per day. This resulted in payment to us of $1.0&nbsp;million of Additional Hire. In
addition, the two V-MAX tankers generated $1.9&nbsp;million of Additional Hire for the nine months ended
September&nbsp;30, 2008.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Vessels had 15.61&nbsp;days and 7&nbsp;days, respectively, off-hire during the nine months ended
September&nbsp;30, 2008 and 2007.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 1%"><B>Total vessel operating expenses</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total vessel operating expenses were $15.6&nbsp;million for the nine months ended September&nbsp;30,
2008 compared to $14.9&nbsp;million for the nine months ended September&nbsp;30, 2007. Vessel operating
expenses for the nine months ended September&nbsp;30, 2008 were higher than the same period in 2007
reflecting the annual increase in daily vessel management fees under our ship management
agreements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 1%"><B>Depreciation</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation was $11.5&nbsp;million for the nine months ended September&nbsp;30, 2008 and 2007.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 1%"><B>Administrative expenses</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Administrative expenses were $4.2&nbsp;million for the nine months ended September&nbsp;30, 2008
compared to $1.7&nbsp;million for the nine months ended September&nbsp;30, 2007. The $2.5&nbsp;million increase in
administrative expenses reflects higher costs in the first nine months of 2008 associated with our
strategic alternatives analysis and our pending combination with General Maritime.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 1%"><B>Net Other Expense</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net other expense represents interest expense, net of interest income and other financial
items. Net other expense was $10.1&nbsp;million for the nine months ended September&nbsp;30, 2008, compared
to $12.2&nbsp;million for the nine months ended September&nbsp;30, 2007. For the nine months ended September
30, 2008, net other expense includes $10.3&nbsp;million in interest expense related to our credit
facility with The Royal Bank of Scotland, and an unrealized loss of $99,000 on our interest rate
swap offset by $266,000 of interest income. Net other expense for the nine months ended September
30, 2007 includes $10.2&nbsp;million in interest expense related to our credit facility with The Royal
Bank of Scotland, plc., and an unrealized loss of $2.6&nbsp;million on our interest rate swap offset by
$645,000 of interest income.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The fair value of the swap at September&nbsp;30, 2008 was a liability of $7.6&nbsp;million. The fair
value of the swap at December&nbsp;31, 2007 was a liability of $7.5&nbsp;million. Accordingly, we recorded a
non-cash decrease in the fair value of the interest rate swap of $99,000 in
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">current earnings as an unrealized loss for the nine months ended September&nbsp;30, 2008. For the
nine months ended September&nbsp;30, 2007, we recorded a non-cash decrease in the fair value of the
interest rate swap of $2.6&nbsp;million in current earnings as an unrealized loss.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>LIQUIDITY AND CAPITAL RESOURCES</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We operate in a capital intensive industry. Our liquidity requirements relate to our
operating expenses, including payments under our ship management agreements, quarterly payments of
interest and the payment of principal at maturity under our $229.5&nbsp;million secured credit facility
and maintaining cash reserves to provide for contingencies.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In December&nbsp;2005, we entered into a five-year term loan agreement with The Royal Bank of
Scotland. The term loan agreement provides for a facility of $229.5&nbsp;million. The purpose of the
term loan agreement was to (1)&nbsp;refinance our existing indebtedness, (2)&nbsp;finance the purchase price
of two Product tankers from Stena and (3)&nbsp;general corporate purposes. We completed the refinancing
of our indebtedness in December&nbsp;2005 and completed the Additional Vessel acquisition in January
2006. The term loan agreement matures on January&nbsp;5, 2011. All amounts outstanding under the term
loan agreement must be repaid on that maturity date. There is no principal amortization prior to
maturity. Borrowings under the term loan agreement bear interest at LIBOR plus a margin of 75
basis points. The margin would increase to 85 basis points if the ratio of the fair market value of
our Vessels to the amount outstanding under the credit facility, which we refer to as the Ratio,
falls below 2.0. The increased interest margin is equivalent to approximately $229,500 per year in
increased interest costs in the event the Ratio falls below 2.0. In connection with the term loan
agreement, we have entered into an interest rate swap agreement with The Royal Bank of Scotland. As
a result of this swap, we effectively fixed the interest rate on the term loan agreement at
5.7325%. The term loan agreement provides that if at any time the aggregate market value of our
Vessels that secure the obligations under the Loan Agreement is less than 125% of the loan amount,
we must either provide additional security or prepay a portion of the loan to reinstate such
percentage. The term loan agreement also contains financial covenants requiring that at the end of
each financial quarter (1)&nbsp;our total assets (adjusted to give effect to the market value of the
Vessels) less total liabilities is equal to or greater than 30% of such total assets and (2)&nbsp;we
have positive working capital.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We had outstanding long term debt of $229.5&nbsp;million as of September&nbsp;30, 2008 and December&nbsp;31,
2007. This amount reflects outstanding borrowings under our secured credit facility, which matures
in January&nbsp;2011. By entering into an interest rate swap agreement, we have effectively fixed the
interest rate under the facility at approximately 5.7325% per year.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We anticipate that we will seek to refinance our secured credit facility at or prior to its
maturity. There can be no assurance that we will be able to do so on acceptable terms. Interest
rates may be higher than current rates at the time we seek to refinance our secured credit facility
and the prevailing market terms for loans such as the type we would need to refinance our secured
credit may require periodic payments to amortize the outstanding principal. Such higher rates,
principal amortization requirements or other terms could prevent our ability to complete a
refinancing or could adversely impact our future results, including the amount of cash available
for future dividends. Please see &#147;Part&nbsp;II. Item&nbsp;1A. Risk Factors &#151; Company Specific Risk Factors
&#151; We cannot assure you that we will pay any dividends,&#148; &#147;&#151; If we cannot refinance our secured
credit facility, or in the event of a default under the facility, we may have to sell our Vessels,
which may leave no additional funds for distributions to shareholders&#148; and &#147;&#151; We may not be able
to recharter our Vessels profitably after they expire, unless they are extended at the option of
the Charterers.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On September&nbsp;25, 2008, we and certain of our subsidiaries entered into an Agreement with The
Royal Bank of Scotland under which The Royal Bank of Scotland consented to the proposed
transactions contemplated by the Merger Agreement. In accordance with the terms of the Merger
Agreement, General Maritime has consented to the modification of the term loan agreement on the
terms set forth in the Agreement. The Agreement provides The Royal Bank of Scotland&#146;s consent to
the transactions contemplated by the Merger Agreement, subject to the terms and conditions set
forth in the Agreement. In particular, pursuant to the terms of the Agreement, among other things,
the Margin (as defined in the term loan agreement) is increased to 1.25% and we are required to pay
a one percent prepayment fee if the secured credit facility is prepaid within two years of our
acceptance of the Agreement. The foregoing provisions of the Agreement will become effective only
upon the closing of the transactions contemplated by the Merger Agreement. Except as specifically
set forth in the Agreement, the provisions in the term loan agreement remain unchanged and the term
loan agreement remains in full force and effect.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of September&nbsp;30, 2008, we had cash and cash equivalents of $15.3&nbsp;million. Net cash
provided by operating activities for the nine months ended September&nbsp;30, 2008 was $22.5&nbsp;million.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by investing activities for the nine months ended September&nbsp;30, 2008 was
12.5&nbsp;million. This amount relates to the sale of $12.5&nbsp;million in marketable securities during the
nine months ended September&nbsp;30, 2008 with original maturities greater than 90&nbsp;days. We did not
purchase any marketable securities during the first nine months of 2008.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in financing activities for the nine months ended September&nbsp;30, 2008 was $26.0
million, which consisted solely of dividend payments made in February, May, and August&nbsp;2008.
</DIV>


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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We collect our Basic Hire monthly in advance and pay our ship management fees monthly in
advance. We receive Additional Hire payable quarterly in arrears. We expect charter revenues will
be sufficient to cover our ship management fees, interest payments, administrative expenses and
other costs and to continue to pay quarterly dividends as described above under the caption
&#147;Dividend Policy&#148;.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We believe that our cash flow from our Charters and our cash reserves will be sufficient to
fund our interest payments under our secured credit facility and our working capital requirements
until the anticipated closing of our pending combination with General Maritime. If the transaction
is not completed, our longer term liquidity requirements will include repayment of the principal
balance of our secured credit facility in January&nbsp;2011. We would require new borrowings, issuances
of equity, or funds from a combination of these sources to meet this repayment obligation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>CRITICAL ACCOUNTING POLICIES AND ESTIMATES</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our accounting policies are more fully described in Note 2 to the Notes to Condensed
Consolidated Financial Statements included elsewhere in this report. As disclosed in Note 2 to the
Notes to Consolidated Financial Statements, the preparation of financial statements in conformity
with accounting principles generally accepted in the United States requires management to make
estimates and assumptions about future events that affect the amounts reported in the financial
statements and accompanying notes. Future events and their effects cannot be determined with
absolute certainty. Therefore, the determination of estimates requires the exercise of judgment.
The process of determining significant estimates is fact specific and takes into account factors
such as historical experience, current and expected economic and industry conditions, present and
expected conditions in the financial markets, and in some cases, the credit worthiness of
counterparties to contracts. We regularly reevaluate these significant factors and make adjustments
where facts and circumstances dictate. The following is a discussion of the accounting policies
that we apply and that we consider to involve a higher degree of judgment in their application.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B><I>Revenue Recognition</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Revenues are generated from time charters and the spot market. Charter revenues are earned
over the term of the charter as the service is provided. Probable losses on voyage charters are
accrued in full at the time such losses can be estimated.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B><I>Vessels, Depreciation and Impairment</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our Vessels represent our most significant assets and we state them at cost less accumulated
depreciation. Depreciation of our Vessels is computed using the straight-line method over their
estimated useful lives of 25&nbsp;years. This is a common life expectancy applied in the shipping
industry. Significant vessel improvement costs are capitalized as additions to the vessel rather
than being expensed as a repair and maintenance activity. Should certain factors or circumstances
cause us to revise our estimate of vessel service lives, depreciation expense could be materially
lower or higher. If circumstances cause us to change our assumptions in making determinations as to
whether vessel improvements should be capitalized, the amounts we expense each year as repairs and
maintenance costs could increase, partially offset by a decrease in depreciation expense.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We review long-lived assets used in our business on an annual basis for impairment, or
whenever events or changes in circumstances indicate that the carrying amount of an asset or a
group of assets may not be recoverable. We assess recoverability of the carrying value of the asset
by estimating the future net cash flows expected to result from the asset, including eventual
disposition. If the future undiscounted net cash flows are less than the carrying value of the
asset, an impairment loss is recorded equal to the difference between the asset&#146;s carrying value
and its fair value. We estimate fair value based on sales price negotiations, active markets, if
available, and projected future cash flows discounted at a rate determined by management to be
commensurate with our business risk. The estimation of fair value using these methods is subject to
numerous uncertainties which require our significant judgment when making assumptions of revenues,
operating costs, selling and administrative expenses, interest rates and general economic business
conditions, among other factors.
</DIV>
<DIV align="left">
<A name="109"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;3. Quantitative and Qualitative Disclosures about Market Risk</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are exposed to market risk arising from changes in interest rates, primarily resulting from
the floating rate of our borrowings. We use interest rate swaps to manage such interest rate risk.
We have not entered into any financial instruments for speculative or trading purposes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At September&nbsp;30, 2008 and December&nbsp;31, 2007, we had $229.5&nbsp;million outstanding under our debt
facility. The borrowings under our debt facility bear interest at LIBOR (reset quarterly) plus a
margin of 0.75%, or 0.85% if the Ratio falls below 2.0. We have
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">entered into an interest rate swap agreement that has effectively fixed the interest rate
under the facility at approximately 5.7325% per year. Periodic cash settlements under the swap
agreements occur quarterly corresponding with interest payments under the secured credit facility.
The fair value of the interest rate swap agreement as of September&nbsp;30, 2008 was a liability of $7.6
million. The fair value of the interest rate swap agreement as of December&nbsp;31, 2007 was a
liability of $7.5&nbsp;million.
</DIV>
<DIV align="left">
<A name="110"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;4. Controls and Procedures</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our Chief Executive Officer and Chief Financial Officer evaluated the effectiveness of our
disclosure controls and procedures as of September&nbsp;30, 2008. The term &#147;disclosure controls and
procedures,&#148; as defined in Rules&nbsp;13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934,
or Exchange Act, means controls and other procedures of a company that are designed to ensure that
information required to be disclosed by a company in the reports that it files or submits under the
Exchange Act is recorded, processed, summarized and reported within the time periods specified in
the SEC&#146;s rules and forms. Disclosure controls and procedures include, without limitation, controls
and procedures designed to ensure that information required to be disclosed by a company in the
reports that it files or submits under the Exchange Act is accumulated and communicated to the
company&#146;s management, including its principal executive and principal financial officers, as
appropriate to allow timely decisions regarding required disclosure. Our management recognizes that
any controls and procedures, no matter how well designed and operated, can provide only reasonable
assurance of achieving their objectives and management necessarily applies its judgment in
evaluating the cost-benefit relationship of possible controls and procedures. Based on the
evaluation of our disclosure controls and procedures as of September&nbsp;30, 2008, our Chief Executive
Officer and Chief Financial Officer concluded that, as of such date, our disclosure controls and
procedures were effective at the reasonable assurance level.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No change in our internal control over financial reporting (as defined in Rules&nbsp;13a-15(f) and
15d-15(f) under the Exchange Act) occurred during the fiscal quarter ended September&nbsp;30, 2008 that
has materially affected, or is reasonably likely to materially affect, our internal control over
financial reporting.
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<A name="111"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>PART II: OTHER INFORMATION</B>
</DIV>

<DIV align="left">
<A name="112"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Item&nbsp;1. Legal Proceedings</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The nature of our business, i.e., the acquisition, chartering and ownership of our Vessels,
exposes us to the risk of lawsuits for damages or penalties relating to, among other things,
personal injury, property casualty and environmental contamination. Under rules related to maritime
proceedings, certain claimants may be entitled to attach charterhire payable to us in certain
circumstances. There are no actions or claims pending against us as of the date of this Quarterly
Report on Form 10-Q.
</DIV>
<DIV align="left">
<A name="113"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;1A. Risk Factors</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Risk Factors</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>The following important factors, among others, could cause actual results to differ materially
from those contained in forward-looking statements made in this report or presented elsewhere by
management from time to time.</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Company Specific Risk Factors</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 1%"><B><I>We cannot assure you that we will pay any dividends</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If our pending combination with General Maritime is completed, future dividends will be the
responsibility of the combined company. If the combination is not completed, we currently intend
to pay dividends on a quarterly basis in amounts determined by our Board of Directors. Our
dividends have historically been substantially equal to the charterhire received by us under the
Charters, less cash expenses and any cash reserves established by our Board of Directors. Such
expenses consist primarily of fees under our ship management agreements, directors&#146; fees, salaries
and benefits of our employees, payment of interest under our secured credit facility, and other
administrative costs and other expenses. There can be no assurance that we will not have other cash
expenses, including extraordinary expenses, which could include the costs of claims and related
litigation expenses. There can be no assurance that we will not have additional expenses or
liabilities, that the amounts currently anticipated for the items set forth above will not increase
or that we will not have to fund any required capital expenditures for our Vessels. Other than the
fees under our ship management agreements, none of our fees or expenses is fixed.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We anticipate that, as a stand-alone company independent from General Maritime, our cash
available for dividends in 2009 would decline from the cash available in 2008. In addition, we
anticipate that our cash available for dividends would decline in each year after 2009. Therefore,
we expect that, as a stand-alone company independent from General
Maritime, our dividend level would
likely remain materially below the range of dividends paid in all prior years. Furthermore, due to
the expected refinancing of our term loan agreement with amortizing debt prior to 2011, as a
stand-alone company independent from General Maritime, a decline in dividends of more than 40% is
expected to occur in 2011.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The amount of future dividends, if any, could also be affected by various factors, including
the loss of a Vessel, the number of days a Vessel is off-hire, the timing of the commencement or
expiration of any sub-charters for our Vessels, the effect of global demand for tanker capacity on
Additional Hire calculations, required capital expenditures, cash reserves established by our Board
of Directors, increased or unanticipated expenses, a change in our dividend policy, increased
borrowings, more restrictive debt covenants, higher interest rates, principal amortization
requirements or future issuances of securities, many of which are beyond our control. As a result,
the amount of dividends actually paid may vary from period to period and such variations may be
material.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The amount of dividends we may be able to pay can also be affected by the terms of our
current, or any future, indebtedness. Our existing secured credit facility provides that we may
not pay dividends if an event of default under the facility agreement has occurred and continues or
if the market value of our Vessels is less than 140% of our borrowings under the facility (or, if
at the time of the proposed dividend, all of our Vessels are on time charter for a remaining period
of 12&nbsp;months, less than 125% of the loan amount). The terms of any future indebtedness we may
enter into, including indebtedness that refinances our existing secured credit facility, may have
stricter restrictions on our ability to pay dividends. Furthermore, higher interest rates or
different repayment terms of future indebtedness, such as principal amortization requirements, may
reduce the amount of cash that we would have available to pay future dividends.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The declaration of dividends is subject to current and future debt covenants, compliance with
Bermuda law and is subject at all times to the discretion of our Board of Directors. There can be
no assurance that dividends will be paid in amounts anticipated or at all.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 1%"><B><I>We are highly dependent on the Charterers and their guarantors, Stena and Concordia</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All of our Vessels are chartered to the Charterers, which are subsidiaries of Stena and
Concordia. The Charterers&#146; payments to us under these Charters are our sole source of revenue. We
are highly dependent on the performance by the Charterers of their obligations under the Charters
and by their guarantors, Stena and Concordia, of their obligations under their respective
guarantees. Any failure by the Charterers or the guarantors to perform their obligations would
materially and adversely affect our business and financial position. Our shareholders do not have
any recourse against the Charterers or the guarantors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 1%"><B><I>If we cannot refinance our secured credit facility, or in the event of a default under the
facility, we may have to sell our Vessels, which may leave no additional funds for distributions
to shareholders</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under the terms of the Loan Agreement providing for our secured credit facility, we are
required to repay the total amount outstanding at maturity, January&nbsp;5, 2011. Borrowings under the
facility are guaranteed by each of our Vessel Subsidiaries and are secured by mortgages over all of
our Vessels; assignments of earnings, insurances and requisition compensation with respect to our
Vessels; and assignments of our interests in the Charters and our ship management agreements.
Whether or not the Charterers renew the Charters, the Loan Agreement will mature in January&nbsp;2011
and we will be obligated to repay or refinance the total amount due under the loan at that time.
There is no assurance that we will be able to repay or refinance this amount. In addition, even if
the Charterers renew the Charters for one or more of our Vessels, if we are unable to refinance our
secured credit facility on acceptable terms, we may be forced to attempt to sell some or all of our
Vessels. Interest rates may be higher than current rates at the time we seek to refinance our
secured credit facility and the prevailing market terms for loans such as the type we would need to
refinance our secured credit may require periodic payments to amortize the outstanding principal.
Such higher rates, principal amortization requirements or other terms could prevent our ability to
complete a refinancing or could adversely impact our future results, including the amount of cash
available for future dividends. In such event, we may conclude that such a refinancing is not on
acceptable terms. In addition, in the event of a default under our secured credit facility all of
our Vessels could be sold to satisfy amounts due to the lender under our secured credit facility.
Depending on the market value for our Vessels at the time, it is possible that after payment of the
amounts outstanding under our secured credit facility there would not be any funds to distribute to
our shareholders. In addition, under our bye-laws, any sale of a Vessel would require the approval
of at least a majority of our shareholders voting at a meeting. Furthermore, our current Charters
provide that we may not sell the related Vessel without the Charterer&#146;s consent, which consent may
be withheld in the Charterer&#146;s sole discretion. Accordingly, there can be no assurance that we
would be able to sell a Vessel at a time when we would need to do so to satisfy the obligations
under our secured credit facility.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Because we currently intend to distribute dividends to our shareholders in an amount
substantially equal to our charterhire, less cash expenses and any cash reserves established by our
Board of Directors, we do not believe we will be able to repay our secured credit facility in
January&nbsp;2011 without either refinancing our debt or selling some or all of our Vessels. As a
result, we anticipate that we will seek to refinance our secured credit facility at or prior to its
maturity. There can be no assurance that we will be able to do so on acceptable terms.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 1%"><B><I>We may not be able to re-charter our Vessels profitably after their Charters expire, unless they
are extended at the option of the Charterers</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Two of our Charters have initial expiration dates in 2008, four have initial expiration dates
in 2009 and two have initial expiration dates in 2010. The Charterers have options to extend the
terms of the Charters for each of our Vessels. In May&nbsp;2008, the options for four of our Vessels
were exercised. The Charterers have the sole discretion as to exercising their options. Notice
that the Charterer is exercising its option to extend the term of a Charter is required to be
delivered no later than six months prior to the expiration of the charter period in effect at that
time. We cannot predict whether the Charterers will exercise any additional extension options
under one or more of the Charters. The Charterers do not owe any fiduciary or other duty to us or
our shareholders in deciding whether to exercise their extension options, and the Charterers&#146;
decision may be contrary to our interests or those of our shareholders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We cannot predict any of the factors that the Charterers will consider in deciding whether to
exercise any of their extension options under the Charters. It is likely, however, that the
Charterers would consider a variety of factors, which may include the age and
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">specifications of the particular Vessel, whether a Vessel is surplus or suitable to the
Charterers&#146; requirements and whether competitive charterhire rates are available to the Charterers
in the open market at that time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the Charterers decide not to extend our current Charters, we may not be able to re-charter
our Vessels with terms similar to the terms of our Charters, or at all. We may also directly employ
the Vessels on the spot charter market, which is subject to greater rate fluctuation than the time
charter market.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under our ship management agreements, Northern Marine, a wholly owned subsidiary of Stena, is
responsible for all of the technical and operational management of our Vessels for a fixed
management fee that increases 5% annually. Northern Marine has also agreed to indemnify us against
specified off-hire and reduced hire for our Vessels in excess of five days per year. However, this
indemnification only extends to the amount payable to us as Basic Hire and would not extend to any
amounts that would otherwise be payable to us as Additional Hire if the Vessels were not off-hire.
Our ship management agreements with Northern Marine may be terminated by either party if the
relevant Charter is terminated or expires. If our ship management agreements with Northern Marine
were to terminate, we may not be able to obtain similar fixed rate terms or indemnification for
off-hire and reduced hire periods from another ship manager.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If we receive lower charter rates under replacement charters, are unable to re-charter all of
our Vessels or we incur greater expenses under replacement management agreements, the amounts
available, if any, to pay distributions to our shareholders may be significantly reduced or
eliminated.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under our Charters, there is no obligation to pay Additional Hire, during any period when the
obligation to pay Basic Hire is suspended under the Charter if due to technical reasons the Vessel
is off-hire, unless the Vessel is off-hire as a result of a class condition or recommendation
determined by the Vessel&#146;s classification society during the inspection of the Vessel undertaken by
us in connection with the purchase of the Vessel and such condition or recommendation cannot be
remedied or complied with during a regularly scheduled drydocking without increasing the duration
of such drydocking.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 1%"><B><I>Stena and Concordia&#146;s ownership interest in our company can have significant influence over the
Company, including the outcome of shareholder votes and our ability to conduct future business or
modify existing agreements with Stena or Concordia</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Based on their filings with the SEC, as of May&nbsp;7, 2008, Stena and Concordia directly and indirectly
owned an aggregate of approximately 18.0% of our outstanding common shares. As a result of their
share ownership and for so long as either Stena or Concordia directly or indirectly owns a
significant percentage of our outstanding common shares, Stena and Concordia are able to influence
us, including the outcome of any shareholder vote, such as the election of directors. In addition,
as a result of Stena&#146;s purchase of additional common shares in 2007, Stena and Concordia may be
considered &#147;interested shareholders&#148; for purposes of our bye-laws. Under our &#147;interested
shareholder&#148; bye-law, in addition to any other approval that may be required by applicable law, any
&#147;business combination&#148; with an interested shareholder within a period of three years after the date
of the transaction in which the person became an interested shareholder must be approved by our
board and authorized at an annual or special general meeting by the affirmative vote of at least 66
2/3% of our issued and outstanding voting shares that are not owned by the interested shareholder,
unless:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>prior to the date of the transaction that resulted in the shareholder becoming an
interested shareholder, our board of directors approved either the business combination
or the transaction that resulted in the shareholder becoming an interested shareholder;
or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>upon consummation of the transaction that resulted in the shareholder becoming an
interested shareholder, the interested shareholder owned at least 85% of our issued and
outstanding voting shares at the time the transaction commenced.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For purposes of these provisions, &#147;business combinations&#148; include specified mergers,
amalgamations, consolidations and specified sales, leases, exchanges, mortgages, pledges, transfers
and other dispositions of assets having an aggregate market value equal to 10% or more of either
the aggregate market value of all of our assets determined on a consolidated basis or the aggregate
market value of all of our issued and outstanding shares. Accordingly, our interested shareholder
bye-law may make it more difficult for us to conduct future business or modify existing agreements
with Stena or Concordia.
</DIV>


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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 1%"><B><I>We are leveraged and subject to restrictions in our financing agreements that impose constraints
on our operating and financing flexibility</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have a secured credit facility under which we have borrowed $229.5&nbsp;million as of September
30, 2008, to finance a portion of the cash purchase price for our Additional Vessels and refinance
pre-existing debt. We are required to apply a substantial portion of our cash flow from operations
to the payment of interest on borrowings under the facility. Our facility, which is secured by,
among other things, mortgages on our Vessels, pledges of our time charters and assignments of
earnings, insurances and requisition compensation in respect to our Vessels, requires that we
comply with various operating covenants and maintain certain financial ratios including that the
market value of our Vessels exceeds 125% of the total facility amount outstanding and that the
market value of our Vessels exceeds 140% of our borrowings (or 125% if the loan amount at the time
of such dividend all of our Vessels are on time charter for a remaining period of at least 12
months) in order for us to pay dividends. The facility also requires that Northern Marine remain as
technical manager for our Vessels.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have a floating rate of interest under our secured credit facility. However, we have
entered into an interest rate swap agreement that effectively fixes the interest rate at 5.7325%,
or 5.8325% per year, based upon the ratio of the fair market value of the Company&#146;s Vessels to the
amount outstanding under the loan facility, through maturity of the facility in January&nbsp;2011. By
utilizing this interest rate swap, we potentially forego benefits that might result from declines
in interest rates.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 1%"><B><I>Our combination with General Maritime may not be completed</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In June&nbsp;2008, we announced that we were engaged in a process to review and evaluate strategic
alternatives to enhance shareholder value. As a result of that process, on August&nbsp;5, 2008, we
entered into the Merger Agreement with General Maritime. Pursuant to the Merger Agreement our
business and the business of General Maritime will be combined. Upon consummation of the
transactions contemplated by the Merger Agreement, our shareholders will hold approximately 27% of
the outstanding common stock of the combined company and shareholders of General Maritime will hold
approximately 73% of the outstanding common stock of the combined company. The Merger Agreement is
subject to approval by our shareholders and by General Maritime&#146;s shareholders, and other customary
closing conditions. There can be no assurance that the transaction will be completed in a timely
manner, or at all. In addition, even if the transaction is completed, there can be no assurance
that it will ultimately prove to be beneficial to our shareholders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 1%"><B><I>We are a holding company, and we depend on the ability of our subsidiaries to distribute funds to
us in order to satisfy our financial and other obligations</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are a holding company, and have no significant assets other than the equity interests in
our subsidiaries. Our subsidiaries own all of our Vessels, and payments under our Charters are made
to our subsidiaries. As a result, our ability to pay dividends depends on the performance of our
subsidiaries and their ability to distribute funds to us. The ability of a subsidiary to make these
distributions could be affected by a claim or other action by a third party, including a creditor,
or by Bermuda law which regulates the payment of dividends by companies. If we are unable to obtain
funds from our subsidiaries, we will not be able to pay dividends unless we obtain funds from other
sources. We cannot assure you that we will be able to obtain funds from other sources.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 1%"><B><I>U.S. tax authorities could treat us as a &#147;passive foreign investment company,&#148; which could have
adverse U.S. federal income tax consequences to U.S. shareholders</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A foreign corporation will be treated as a &#147;passive foreign investment company,&#148; or PFIC, for
U.S. federal income tax purposes if either (1)&nbsp;at least 75% of its gross income for any taxable
year consists of certain types of &#147;passive income&#148; or (2)&nbsp;at least 50% of the average value of the
corporation&#146;s assets produce or are held for the production of those types of &#147;passive income.&#148; For
purposes of these tests, &#147;passive income&#148; includes dividends, interest, and gains from the sale or
exchange of investment property and rents and royalties other than rents and royalties which are
received from unrelated parties in connection with the active conduct of a trade or business. For
purposes of these tests, income derived from the performance of services does not constitute
&#147;passive income.&#148; U.S. shareholders of a PFIC are subject to a disadvantageous U.S. federal income
tax regime with respect to the income derived by the PFIC, the distributions they receive from the
PFIC and the gain, if any, they derive from the sale or other disposition of their shares in the
PFIC.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Based on our method of operation, we do not believe that we were a PFIC for our most recent
taxable year or that we will become a PFIC with respect to any future taxable year. In this regard,
we treat the gross income we derive or are deemed to derive from our time chartering activities as
services income, rather than rental income. Accordingly, we believe that our income from our time
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">chartering activities does not constitute &#147;passive income,&#148; and the assets that we own and
operate in connection with the production of that income do not constitute passive assets.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There is, however, no direct legal authority under the PFIC rules addressing our method of
operation. Accordingly, no assurance can be given that the U.S. Internal Revenue Service, or IRS,
or a court of law will accept our position, and there is a risk that the IRS or a court of law
could determine that we are a PFIC. Moreover, no assurance can be given that we would not
constitute a PFIC for any future taxable year if there were to be changes in the nature and extent
of our operations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the IRS were to find that we are or have been a PFIC for any taxable year, our U.S.
shareholders would face adverse U.S. tax consequences. Under the PFIC rules, unless those
shareholders make an election available under the Internal Revenue Code of 1986, as amended, or the
Code, such shareholders would be liable to pay U.S. federal income tax at the then prevailing
income tax rates on ordinary income plus interest upon certain distributions and upon any gain from
the disposition of our common shares, as if the distribution or gain had been recognized ratably
over the shareholder&#146;s holding period of our common shares. In addition, a step-up in the tax basis
of our shares may not be available upon the death of an individual shareholder, and the
preferential U.S. federal income tax rates currently applicable to qualified dividend income of
certain U.S. investors would not apply.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 1%"><B><I>Our operating income could fail to qualify for an exemption from U.S. federal income taxation,
which would reduce our cash flow</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A foreign corporation is subject to U.S. federal income taxation at a rate of 4% on its U.S.
source shipping income, including, unless exempt as income from the international operation of
ships, 50% of its shipping income that is attributable to transportation that begins or ends in the
United States. Under Code Section&nbsp;883 and applicable U.S. Treasury regulations, a foreign
corporation&#146;s U.S. source income from the international operation of ships is exempt from U.S.
federal income taxation if: (1)&nbsp;the corporation is organized in a foreign country that grants an
&#147;equivalent exemption&#148; from taxation to U.S. corporations and (2)&nbsp;either (A)&nbsp;its common shares are
&#147;primarily and regularly traded on an established securities market&#148; in that same foreign country,
in the United States or in another country that grants an &#147;equivalent exemption&#148; to U.S.
corporations or (B)&nbsp;more than 50% of the value of its shares is treated as owned, directly or
indirectly, for at least half of the number of days in the taxable year by one or more &#147;qualified
shareholders.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bermuda, our country of organization, is a foreign country that grants an &#147;equivalent
exemption&#148; from taxation to U.S. corporations with respect to income from the international
operation of ships. In addition, our common shares are currently &#147;primarily and regularly traded&#148;
on the New York Stock Exchange, which is an established securities market in the United States.
Therefore, we believe that our time chartering income qualifies for the exemption from U.S. federal
income taxation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our qualification for the exemption, however, is based upon certain complex factual
determinations that are not completely within our control and, therefore, there can be no assurance
that we will qualify for the exemption either now or in the future. If we were not to qualify for
the exemption, our income from the international operation of ships, to the extent characterized as
U.S. source income, would be subject to a 4% U.S. federal income tax on a gross basis without
allowance for deduction. In addition, if we were to generate U.S. source income of a type that does
not qualify for the exemption, such as income that is attributable to transportation that both
begins and ends in the United States, it would also be subject to U.S. federal income taxation. If
we were subject to U.S. federal income taxation, our cash available for distributions to
shareholders would be correspondingly reduced.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 1%"><B><I>U.S. investors who own our common shares may have more difficulty in protecting their interests
than U.S. investors who own shares of a Delaware corporation</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Companies Act 1981 of Bermuda, which applies to us, differs in certain material respects
from laws generally applicable to U.S. corporations and their shareholders. Set forth below is a
summary of certain significant provisions of the Companies Act which differ in certain respects
from provisions of Delaware corporate law. Because the following statements are summaries, they do
not discuss all aspects of Bermuda law that may be relevant to us and our shareholders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Interested Directors. </I>Bermuda law and our bye-laws provide that if a director has an interest
in a material contract or proposed material contract with us or any of our subsidiaries or has a
material interest in any person that is a party to such a contract, the director must disclose the
nature of that interest at the first opportunity either at a meeting of directors or in writing to
the directors. Our bye-laws provide that, after a director has made such a declaration of interest,
he is allowed to be counted for purposes of determining whether a quorum is present and to vote on
a transaction in which he has an interest, unless disqualified from doing so by the chairman of the
relevant board meeting. Under Delaware law such transaction would not be voidable if:
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the material facts as to such interested director&#146;s relationship or interests were
disclosed or were known to the Board of Directors and the board had in good faith authorized
the transaction by the affirmative vote of a majority of the disinterested directors;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>such material facts were disclosed or were known to the stockholders entitled to vote on
such transaction and the transaction was specifically approved in good faith by vote of the
majority of shares entitled to vote thereon; or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the transaction was fair as to the corporation as of the time it was authorized, approved
or ratified.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under Delaware law, the interested director could be held liable for a transaction in which
the director derived an improper personal benefit.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Shareholders&#146; Suits. </I>Class actions and derivative actions are generally not available to
shareholders under Bermuda law. The Bermuda courts, however, would ordinarily be expected to permit
a shareholder to commence an action in the name of a company to remedy a wrong to the company where
the act complained of is alleged to be beyond the corporate power of the company or illegal, or
would result in the violation of the company&#146;s memorandum of association or bye-laws. Furthermore,
consideration would be given by a Bermuda court to acts that are alleged to constitute a fraud
against the minority shareholders or, for instance, where an act requires the approval of a greater
percentage of the company&#146;s shareholders than that which actually approved it.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;When the affairs of a company are being conducted in a manner which is oppressive or
prejudicial to the interests of some part of the shareholders, one or more shareholders may apply
to the Supreme Court of Bermuda, which may make such order as it sees fit, including an order
regulating the conduct of the company&#146;s affairs in the future or ordering the purchase of the
shares of any shareholders by other shareholders or by the company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our bye-laws contain a provision by virtue of which our shareholders waive any claim or right
of action that they have, both individually and on our behalf, against any director or officer in
relation to any action or failure to take action by such director or officer, except in respect of
any fraud or dishonesty of such director or officer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Class actions and derivative actions generally are available to stockholders under Delaware
law for, among other things, breach of fiduciary duty, corporate waste and actions not taken in
accordance with applicable law. In such actions, the court has discretion to permit the winning
party to recover attorneys&#146; fees incurred in connection with such action.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Indemnification of Directors. </I>Section&nbsp;98 of the Companies Act provides generally that a
Bermuda company may indemnify its directors, officers and auditors against any liability which by
virtue of any rule of law would otherwise be imposed on them in respect of any negligence, default,
breach of duty or breach of trust, except in cases where such liability arises from fraud or
dishonesty of which such director, officer or auditor may be guilty in relation to the company.
Section&nbsp;98 further provides that a Bermuda company may indemnify its directors, officers and
auditors against any liability incurred by them in defending any proceedings, whether civil or
criminal, in which judgment is awarded in their favor or in which they are acquitted or granted
relief by the Supreme Court of Bermuda pursuant to section 281 of the Companies Act.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have adopted provisions in our bye-laws that provide that we shall indemnify our officers
and directors in respect of their actions and omissions, except in respect of their fraud or
dishonesty. Our bye-laws provide that the shareholders waive all claims or rights of action that
they might have, individually or in right of the company, against any of the company&#146;s directors or
officers for any act or failure to act in the performance of such director&#146;s or officer&#146;s duties,
except in respect of any fraud or dishonesty of such director or officer. Section&nbsp;98A of the
Companies Act permits us to purchase and maintain insurance for the benefit of any officer or
director in respect of any loss or liability attaching to him in respect of any negligence,
default, breach of duty or breach of trust, whether or not we may otherwise indemnify such officer
or director. We have purchased and maintain a directors&#146; and officers&#146; liability policy for such a
purpose.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under Delaware law, a corporation may indemnify a director or officer of the corporation
against expenses (including attorneys&#146; fees), judgments, fines and amounts paid in settlement
actually and reasonably incurred in defense of an action, suit or proceeding by reason of such
position if such director or officer acted in good faith and in a manner he or she reasonably
believed to be in or not be opposed to the best interests of the corporation and, with respect to
any criminal action or proceeding, such director or officer had no reasonable cause to believe his
or her conduct was unlawful.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 1%"><B><I>Bermuda law and our bye-laws permit our Board of Directors to establish preference shares having
terms which could reduce or eliminate dividends payable to our common shareholders</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bermuda law and our bye-laws permit our Board of Directors to issue preference shares with
dividend rates, relative voting rights, conversion or exchange rights, redemption rights,
liquidation rights and other relative participation, optional or other special rights,
qualifications, limitations or restrictions as may be determined by resolution of the board without
shareholder approval. Such preference shares could have terms that provide for the payment of
dividends prior to the payment of dividends in respect of the common shares. As a result, the
issuance of these preference shares could reduce or eliminate dividends payable to common
shareholders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 1%"><B><I>Our bye-laws restrict shareholders from bringing certain legal action against our officers and
directors</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our bye-laws contain a broad waiver by our shareholders of any claim or right of action, both
individually and on our behalf, against any of our officers or directors. The waiver applies to any
action taken by an officer or director, or the failure of an officer or director to take any
action, in the performance of his or her duties, except with respect to any matter involving any
fraud or dishonesty on the part of the officer or director. This waiver limits the right of
shareholders to assert claims against our officers and directors unless the act or failure to act
involves fraud or dishonesty.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 1%"><B><I>We have anti-takeover provisions in our bye-laws that may discourage a change of control</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our bye-laws contain provisions that could make it more difficult for a third party to acquire
us without the consent of our Board of Directors. These provisions provide for:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a classified Board of Directors with staggered three-year terms, elected without
cumulative voting;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>directors can only be removed for cause and only with the affirmative vote of holders of
at least 80% of the common shares issued and outstanding;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>advance notice for nominations of directors by shareholders and for shareholders to
include matters to be considered at annual meetings;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our Board of Directors to determine the powers, preferences and rights of our preference
shares and to issue the preference shares without shareholder approval; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a requirement that amalgamations, sales of assets and certain other transactions with
persons owning 15% or more of our voting securities, which we refer to as interested
shareholders, be approved by holders of at least 66 2/3% of our issued and outstanding
voting shares not owned by the interested shareholder, subject to certain exceptions.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;These provisions could make it more difficult for a third party to acquire us, even if the
third party&#146;s offer may be considered beneficial by many shareholders. As a result, shareholders
may be limited in their ability to obtain a premium for their shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 1%"><B><I>Our shareholder rights plan could prevent a change in control of us in instances in which some
shareholders may believe a change in control is in their best interests</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under the rights agreement that establishes our shareholder rights plan, we issued to each of
our shareholders one preferred share purchase right for each outstanding common share. Each right,
when exercisable, will entitle its holder to purchase from us one one-thousandth of a Series&nbsp;A
Junior Participating Preferred Share at a purchase price of $95 in cash, subject to adjustment.
Our shareholder rights plan is intended to protect shareholders in the event of an unfair or
coercive offer to acquire us and to provide our Board of Directors with adequate time to evaluate
unsolicited offers. We also believe that our shareholder rights plan will allow us to proceed with
our strategic alternatives analysis in an orderly manner. The rights plan may have anti-takeover
effects. The rights plan will cause substantial dilution to a person or group that attempts to
acquire us on terms that our Board of Directors does not believe are in our best interests and
those of our shareholders and may discourage, delay or prevent a merger or acquisition that
shareholders may consider favorable.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Industry Specific Risk Factors</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 1%"><B><I>The highly cyclical nature of the tanker industry may lead to volatile changes in charter rates
and vessel values which may adversely affect our earnings</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the tanker industry, which has been highly cyclical, is depressed in the future when our
Charters expire or at a time when we may want to sell a Vessel, our earnings and available cash
flow may decrease. Our ability to re-charter our Vessels on the expiration or termination of the
Charters and the charter rates that we may receive under any renewal or replacement charters will
depend upon, among other things, economic conditions in the tanker market at that time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fluctuations in charter rates and vessel values result from changes in the supply and demand
for tanker capacity and changes in the supply and demand for oil and oil products. For example,
charter rates and vessel values were at a high level during 2004. Charter rates declined from that
high level during 2005 and 2006, and have remained at these lower rates during 2007 and 2008. There
can be no assurance that charter rates and Vessel values will not decline further in the future.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our Vessels are operated under time charters with the Charterers. We receive a fixed minimum
daily base charter rate and may receive Additional Hire under the Charters. Additional Hire is not
guaranteed under our Charters. Additional Hire, if any, is paid quarterly in arrears. The amount of
Additional Hire is subject to variation depending on the charterhire received by the Charterers
under time charters, spot charters and on general tanker market conditions. The amount of
Additional Hire that we may earn is based on a formula of notional voyages and expenses on routes
that we agreed to with the Charterers. The payment of Additional Hire, if any, has no correlation
to our potential future time charter equivalent earnings. If a Vessel is off-hire, that Vessel is
not eligible to earn Additional Hire during the off-hire period. We cannot assure you that we will
receive Additional Hire for any quarter.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 1%"><B><I>Factors beyond our control may adversely affect the value of our Vessels</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The factors affecting the supply and demand for tanker vessels are outside of our control, and
the nature, timing and degree of changes in industry conditions are unpredictable and may adversely
affect the value of our Vessels. The factors that influence the demand for tanker capacity include:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>demand for oil and oil products, which affect the need for tanker capacity;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>global and regional economic and political conditions which among other things, could
impact the supply of oil as well as trading patterns and the demand for various types of
vessels;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>changes in the production of crude oil, particularly by OPEC members and other key
producers, which impact the need for tanker capacity;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>developments in international trade;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>changes in seaborne and other transportation patterns, including changes in the distances
that cargoes are transported;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>environmental concerns and regulations;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>weather; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>competition from alternative sources of energy.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The factors that influence the supply of tanker capacity include:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the number of newbuilding deliveries;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>restrictions on vessels from entering into certain trades based upon their age, safety or
other factors;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the scrapping rate of older vessels; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the number of vessels that are out of service.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->41<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 1%"><B><I>An over supply of new vessels may adversely affect charter rates and vessel values</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the number of new ships delivered exceeds the number of tankers being scrapped and lost,
tanker capacity will increase. In addition, according to Clarkson Research Studies Ltd. in a report
published at the end of 2007, the total newbuilding order book for vessels with capacity of 20,000
dwt or more scheduled to enter the fleet through 2010 currently equals 29% of the existing fleet
and we cannot assure you that the order book will not increase further in proportion to the
existing fleet. If the supply of tanker capacity increases and the demand for tanker capacity does
not increase correspondingly, charter rates could materially decline and the value of our Vessels
could be adversely affected.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 1%"><B><I>Terrorist attacks and international hostilities can affect the tanker industry, which could
adversely affect our business</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Additional attacks like those of September&nbsp;11, 2001 or longer-lasting war or international
hostilities, including those currently underway in Iraq and the Middle East, could damage the world
economy, adversely affect the availability of and demand for crude oil and petroleum products and
adversely affect our ability to re-charter our Vessels on the expiration or termination of the
Charters and the charter rates payable under any renewal or replacement charters. We conduct our
operations outside the United States, and our business, financial condition and results of
operations may be adversely affected by changing economic, political and government conditions in
the countries and regions where our Vessels are employed. Moreover, we operate in a sector of the
economy that is likely to be adversely impacted by the effects of political instability, terrorist
or other attacks, war or international hostilities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 1%"><B><I>The value of our Vessels may fluctuate and adversely affect our liquidity and may result in
breaches under our secured credit facility</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tanker values have generally experienced high volatility. Investors can expect the fair market
value of our tankers to fluctuate, depending on general economic and market conditions affecting
the tanker industry and competition from other shipping companies, types and sizes of vessels and
other modes of transportation. In addition, although our Panamax and Product tankers were built in
2004 and 2005 and our V-MAX tankers were built in 2001, they generally decline in value as they
age. These factors will affect the value of our Vessels at the termination of their Charters or
earlier at the time of any sale, which during the term of the Charters will require the consent of
the Charterer and the lenders under our secured credit facility. Borrowings under our credit
agreement bear interest at LIBOR plus a 75 basis points margin, which would increase to 85 basis
points if the ratio of the fair market value of the Company&#146;s Vessels to the amount outstanding
under the loan facility falls below 2.0. The increased interest margin is equivalent to
approximately $229,500 per year in increased interest costs in the event the ratio falls below 2.0.
In the event of the sale or loss of a Vessel, we might be required to repay a percentage of the
loan earlier than we planned or increase our payments under the facility, which could affect our
financial condition and ability to make payments to our shareholders. Declining tanker values could
adversely affect our ability to refinance our secured credit facility at its maturity in January
2011 and thereby adversely impact our business and operations and liquidity. Due to the cyclical
nature of the tanker market, if for any reason we sell tankers at a time when tanker prices have
fallen, the sale may be at less than the tanker&#146;s carrying amount on our financial statements, with
the result that we would also incur a loss and a reduction in earnings.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 1%"><B><I>We operate in the highly competitive international tanker market which could affect our position
if the Charterers do not renew our Charters</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The operation of tanker vessels and transportation of crude oil and petroleum products are
extremely competitive. Competition arises primarily from other tanker owners, including major oil
companies, as well as independent tanker companies, some of which have substantially larger fleets
and substantially greater resources than we do. Competition for the transportation of oil and oil
products can be intense and depends on price, location, size, age, condition and the acceptability
of the tanker and its operators to the charterers. During the term of our Charters with the
Charterers we are not exposed to the risk associated with this competition. However, if the
Charterers do not exercise their options to renew the Charters, we will have to compete with other
tanker owners, including major oil companies and independent tanker companies for charterers. Due
in part to the fragmented tanker market, competitors with greater resources could enter and operate
larger fleets through acquisitions or consolidations and may be able to offer better prices and
fleets than us, which could result in our achieving lower revenues from our Vessels.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 1%"><B><I>Compliance with environmental laws or regulations may adversely affect our business</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The shipping industry is affected by numerous regulations in the form of international
conventions, national, state and local laws and national and international regulations in force in
the jurisdictions in which such tankers operate, as well as in the country or
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">countries in which such tankers are registered. These regulations include the U.S. Oil
Pollution Act of 1990, or OPA, the International Convention on Civil Liability for Oil Pollution
Damage of 1969, International Convention for the Prevention of Pollution from Ships, the IMO
International Convention for the Safety of Life at Sea of 1974, or SOLAS, the International
Convention on Load Lines of 1966 and the U.S. Marine Transportation Security Act of 2002. In
addition, vessel classification societies also impose significant safety and other requirements on
our Vessels. We believe our tankers, two of which were built in 2005, four of which were built in
2004 and two of which were built in 2001, are maintained in compliance with present regulatory and
class requirements relevant to areas in which they operate, and are operated in compliance with
applicable safety and environmental laws and regulations. However, regulation of tankers,
particularly in the areas of safety and environmental impact, may change in the future and require
significant capital expenditures be incurred on our Vessels to keep them in compliance. Although
the Charterers will be responsible for all capital expenditures required due to changes in law,
classification society or regulatory requirements in an amount less than $100,000 per year per
Vessel, all other required capital expenditures during the charter period will be split between us
and the applicable Charterer based on the remaining charter period and the remaining depreciation
period of the Vessel, which is calculated as 25&nbsp;years from the year the Vessel was built.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 1%"><B><I>The shipping industry has inherent operational risks, which may not be adequately covered by
insurance</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our tankers and their cargoes are at risk of being damaged or lost because of events such as
marine disasters, bad weather, mechanical failures, human error, war, terrorism, piracy and other
circumstances or events. In addition, transporting crude oil across a wide variety of international
jurisdictions creates a risk of business interruptions due to political circumstances in foreign
countries, hostilities, labor strikes and boycotts, the potential for changes in tax rates or
policies, and the potential for government expropriation of our Vessels. Any of these events may
result in loss of revenues, increased costs and decreased cash flows to the Charterer, which could
impair its ability to make payments to us under our Charters.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the event of a casualty to a vessel or other catastrophic event, we will rely on our
insurance to pay the insured value of the vessel or the damages incurred. Under our ship management
agreements, Northern Marine is responsible for obtaining insurance for our fleet against those
risks that we believe the shipping industry commonly insures against. These insurances include
marine hull and machinery insurance, protection and indemnity insurance, which includes pollution
risks and crew insurances and war risk insurance. Northern Marine has also obtained off-hire
insurance in respect of each of our Vessels. Currently, the amount of coverage for liability for
pollution, spillage and leakage available to us on commercially reasonable terms through protection
and indemnity associations and providers of excess coverage is $1&nbsp;billion per vessel per
occurrence. We cannot assure you that we will be adequately insured against all risks. Under the
ship management agreements, Northern Marine performs all technical management, including crewing
and providing insurance for a fixed management fee. However, we may not be able to obtain adequate
insurance coverage at reasonable rates for our fleet in the future in the event our existing
Charters are not renewed at the expiration of their terms. Additionally, our insurers may refuse to
pay particular claims. Any significant loss or liability for which we are not insured could have a
material adverse effect on our financial condition. In addition, the loss of a Vessel would
adversely affect our cash flows and results of operations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 1%"><B><I>Maritime claimants could arrest our tankers, which could interrupt the Charterers&#146; or our cash
flow</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Crew members, suppliers of goods and services to a vessel, shippers of cargo and other parties
may be entitled to a maritime lien against that vessel for unsatisfied debts, claims or damages. In
many jurisdictions, a maritime lien holder may enforce its lien by arresting a vessel through
foreclosure proceedings. The arrest or attachment of one or more of our Vessels could interrupt the
Charterers&#146; or our cash flow and require us to pay a significant amount of money to have the arrest
lifted. In addition, in some jurisdictions, such as South Africa, under the &#147;sister ship&#148; theory of
liability, a claimant may arrest both the vessel which is subject to the claimant&#146;s maritime lien
and any &#147;associated&#148; vessel, which is any vessel owned or controlled by the same owner. Claimants
could try to assert &#147;sister ship&#148; liability against one vessel in our fleet for claims relating to
another vessel in our fleet.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 1%"><B><I>Governments could requisition our Vessels during a period of war or emergency without adequate
compensation</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The government of the United Kingdom, the country under which our Bermuda flagged Vessels
would fall, could requisition or seize our Vessels. Under requisition for title, a government takes
control of a vessel and becomes its owner. Under requisition for hire, a government takes control
of a vessel and effectively becomes its charterer at dictated charter rates. Generally,
requisitions occur during periods of war or emergency. Although we would be entitled to
compensation in the event of a requisition, the amount and timing of payment would be uncertain.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->43<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 1%"><B><I>Rising or high oil prices may affect demand for oil, and subsequently demand for oil tankers may
fall</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Crude oil and oil products are commodities that experience price volatility. Prices for these
commodities are set in an open market. We are an independent transporter of cargoes of crude oil
and oil products and have no control over the price of the cargoes that we carry. We depend on
circumstances where there are suitable cargoes available for our Vessels to transport. In a rising
or high oil price environment, demand for crude oil and oil products may be reduced, which could
reduce demand for our tanker Vessels. Such a reduction in demand for our tanker Vessels could
adversely affect our results of operations, possibly materially.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Risks Related To Our Common Shares</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 1%"><B><I>If a significant number of our common shares are sold in the market, the market price of our
common shares could significantly decline, even if our business is doing well</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The market price of our common shares could decline due to sales of a large number of shares
in the market including sales of shares by our large shareholders, or the perception that these
sales could occur. These sales or the perception that these sales could occur could also make it
more difficult or impossible for us to sell equity securities in the future at a time and price
that we deem appropriate.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stena, Concordia and Fram were not eligible to sell the remaining shares that they held after
our initial public offering until their lock-up agreements expired on August&nbsp;1, 2005. We have
entered into registration rights agreements with them that entitle them to have all or a portion of
their remaining shares registered for sale in the public market following that lock-up period. In
addition, these shares became eligible for sale into the public market pursuant to Rule&nbsp;144 under
the Securities Act on November&nbsp;10, 2005. Any sales under Rule&nbsp;144 would be subject to certain
volume and manner of sale limitations prescribed by the Rule.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->44<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<A name="114"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;2. Unregistered Sales of Equity Securities and Use of Proceeds.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Not applicable.
</DIV>
<DIV align="left">
<A name="115"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;3. Defaults Upon Senior Securities.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Not applicable.
</DIV>
<DIV align="left">
<A name="116"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;4. Submission of Matters to a Vote of Security Holders.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Not applicable.
</DIV>
<DIV align="left">
<A name="117"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;5. Other Information.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Not applicable.
</DIV>
<DIV align="left">
<A name="118"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;6. Exhibits.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(A)&nbsp;Exhibits:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="7%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="90%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Exhibit</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Number</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Description of Exhibit(1)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Letter agreement, dated as of
August&nbsp;5, 2008 and countersigned by the Company on
September&nbsp;25, 2008, as amended by the letters dated
September&nbsp;2, 2008 and September&nbsp;23, 2008, by and among the
Company, The Royal Bank of Scotland plc and certain subsidiaries of
the Company
</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.2
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Executive Retention Agreement,
dated as of October&nbsp;17, 2008, by and between the Company and Edward Terino</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">12.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Statement re: Computation of Ratio of Earnings to Fixed Charges.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">31.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Certification of Chief Executive Officer and Chief Financial Officer pursuant to Rule&nbsp;13a-14(a)
under the Securities Exchange Act of 1934.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">32.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. 1350,
as adopted pursuant to Section&nbsp;906 of the Sarbanes Oxley Act of 2002.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>Unless otherwise noted, each exhibit is filed herewith.</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio -->45<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left">
<A name="119"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SIGNATURES</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused
this report to be signed on its behalf by the undersigned thereunto duly authorized.
</DIV>


<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">ARLINGTON TANKERS LTD.<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ EDWARD TERINO
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">Edward Terino&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">Chief Executive Officer, Chief Financial Officer and
President&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Date: November&nbsp;10, 2008

</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->46<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="7%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="90%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Exhibit</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Number</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Description of Exhibit(1)</B></TD>
</TR>

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<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Letter agreement, dated as of
August&nbsp;5, 2008 and countersigned by the Company on
September&nbsp;25, 2008, as amended by the letters dated
September&nbsp;2, 2008 and September&nbsp;23, 2008, by and among the
Company, The Royal Bank of Scotland plc and certain subsidiaries of
the Company</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.2
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Executive Retention Agreement,
dated as of October&nbsp;17, 2008, by and between the Company and Edward Terino</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">12.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Statement re: Computation of Ratio of Earnings to Fixed Charges</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">31.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Certification of Chief Executive Officer and Chief Financial Officer pursuant to Rule&nbsp;13a-14(a)
under the Securities Exchange Act of 1934.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">32.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. 1350,
as adopted pursuant to Section&nbsp;906 of the Sarbanes Oxley Act of 2002.</TD>
</TR>
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</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>Unless otherwise noted, each exhibit is filed herewith.</TD>
</TR>

</TABLE>




<P align="center" style="font-size: 10pt"><!-- Folio -->47<!-- /Folio -->
</DIV>




</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.1
<SEQUENCE>2
<FILENAME>b72632atexv10w1.htm
<DESCRIPTION>EX-10.1 LETTER AGREEMENT, DATED AS OF AUGUST 5, 2008
<TEXT>
<HTML>
<HEAD>
<TITLE>exv10w1</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Exhibit&nbsp;10.1</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="65%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="20%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><IMG src="b72632atb7263201.gif" alt="(RBS LOGO)"></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">To:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Arlington Tankers Ltd<BR>
Contest Ltd, Concept Ltd, Consul Ltd<BR></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Concord Ltd, Compatriot Ltd, Companion Ltd<BR>
Victory Ltd and Vison Ltd<BR>
each of Hayward Building<BR>
22 Bermudian Road<BR>
Hamilton<BR>
HM11<BR>
Bermuda
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" valign="top"><b>Global Banking &#038; Markets</b><BR>
5-10 Great Tower Street<BR>
6th Floor<BR>
London EC3P 3HX <BR>
Telephone: &#043; 44 (0)&nbsp;207 085 5000<BR>
Facsimile: &#043; 44 (0)&nbsp;207 085 7130<BR>
www.rbs.com/gbm</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Fax No.: &#043;1 441 292 4258 <BR>
Attn: Grant Gibbons</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">cc:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Arlington Tankers LLC <BR>
191 Post Road <BR>Westport <BR>
CT068 80 USA</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Fax No.: &#043;1 203 221 2763<BR>
Attn: Ed Terino</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">5 August&nbsp;2008
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Dear Sirs
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Loan Agreement dated 12 December&nbsp;2005 (the &#147;Loan Agreement&#148;) made between Arlington Tankers
Ltd as Borrower and The Royal Bank of Scotland plc as Lender relating to a loan facility of
US$229,500,000</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">You have advised us that you have entered into an exclusivity arrangement with General
Maritime Corporation (&#147;<B>GMC</B>&#148;) for the merger of the Borrower and GMC (the &#147;<B>Merger</B>&#148;) with
ownership of the combined entities split 27%:73% between the Borrower&#146;s current shareholders
and the current shareholders of GMC respectively.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">You have requested our approval to the Merger and to the Change of Control arising from the
Merger as required under Clause 19.1(k) of the Loan Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We write to record our consent to the Merger and the said Change of Control subject to the
following conditions: -
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>1</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>confirmation by the Borrower and the Guarantors of the terms of this letter by the
Borrower and the Guarantors signing the acknowledgement at the foot of this letter and
returning the same to us by no later than 8 August&nbsp;2008 together with such evidence as
we may require in relation to the due authorisation and execution by the Borrower and
the
Guarantors of this letter.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>2</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>there is no further Change of Control following the implementation of the Merger without
our prior written consent.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>3</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>with effect from the end of the current Interest Period (being 30 September&nbsp;2008) the
Margin shall be increased to 1.25% per annum.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>4</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>upon signing the acceptance of this letter below the Borrower shall pay to ourselves a
fee of US$344,250 (being 0.15% of the current outstanding amount of the Loan)</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>5</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>in the event that any prepayment of the Loan is made under Clause 7.5 of the Loan
Agreement within a 2&nbsp;year period following the date of your signing the acceptance of</TD>
</TR>

</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio --><!-- /Folio -->
</DIV>


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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>this letter below the Borrower shall pay to us on such prepayment a prepayment fee in
the amount of 1% of the amount prepaid (unless such prepayment fee is waived at our
absolute discretion).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">6</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the Borrower and the other relevant Security Parties shall enter into such
documentation
supplemental to the Loan Agreement and the other Finance Documents as the Lender
may reasonably require to modify the terms of the Loan Agreement and the other Finance
Documents to reflect the consequential changes to the Group upon the implementation of
the Merger.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">7</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the Borrower shall reimburse to us on demand all costs, fees and expenses and Taxes
thereon incurred by us in connection with the preparation and execution of this letter
and
in connection with the implementation of the supplemental documentation referred to at
6 above.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">This letter shall constitute a Finance Document
for the purposes of the Loan Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Save for the amendments referred to in this
letter, the terms of the Loan Agreement and the
Finance Documents shall remain unchanged and in full force and effect.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Words and expressions defined in the Loan Agreement shall have the same meaning when used in
this letter.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The provisions of Clause 30 (law and jurisdiction) of the Loan Agreement shall apply to this
letter as if incorporated herein with the logical changes.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Yours faithfully
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="48%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="46%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/ Christopher Patrick
<DIV style="width: 100%; border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV>for and on behalf of
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>The Royal Bank of Scotland plc</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">accepted and agreed this 25&nbsp;day of September&nbsp;2008
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="48%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="46%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/ Edward Terino
<DIV style="width: 100%; border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV>for and on behalf of<BR>
<B>Arlington Tankers Ltd</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/ Edward Terino
<DIV style="width: 100%; border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV>for and on behalf of<BR>
<B>Contest Ltd</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/ Edward Terino
<DIV style="width: 100%; border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV>for and on behalf of<BR>
<B>Concept Ltd</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->2<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="48%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="46%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/ Edward Terino
<DIV style="width: 100%; border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV>for and on behalf of<BR>
<B>Consul Ltd</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/ Edward Terino
<DIV style="width: 100%; border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV>for and on behalf of<BR>
<B>Concord Ltd</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/ Edward Terino
<DIV style="width: 100%; border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV>for and on behalf of<BR>
<B>Compatriot Ltd</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/ Edward Terino
<DIV style="width: 100%; border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV>for and on behalf of<BR>
<B>Companion Ltd</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/ Edward Terino
<DIV style="width: 100%; border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV>for and on behalf of<BR>
<B>Victory Ltd</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/ Edward Terino
<DIV style="width: 100%; border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV>for and on behalf of<BR>
<B>Vision Ltd</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->3<!-- /Folio -->
</DIV>



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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="70%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="20%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><IMG src="b72632atb7263201.gif" alt="(RBS LOGO)"></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">2 September&nbsp;2008</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><BR><BR><BR>Arlington Tankers Ltd<BR>
Contest Ltd, Concept Ltd, Consul Ltd<BR>
Concord Ltd, Compatriot Ltd, Companion Ltd<BR>
Victory Ltd and Vision Ltd<BR>
each of Hayward Building<BR>
22 Bermudian Road<BR>
Hamilton<BR>
HM11<BR>
Bermuda
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" valign="top"><B>Global Banking &#038; Markets</B><BR>
Shipping Business Centre<BR>
5-10 Great Tower Street<BR>
London EC3P 3HX<BR>
Telephone: &#043;44 (0)20 7833 2121<BR>
Facsimile: &#043;44 (0)20 7085 7134<BR><BR>
www.rbs.com/gbm</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Attn: Grant Gibbons

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">cc Arlington Tankers LLC<BR>
191 Post Road<BR>
Westport<BR>
CT068 80 USA

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Attn: Ed Terino

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Dear Sirs

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Loan Agreement dated 12 December&nbsp;2005 (the &#147;Loan Agreement&#148;) made between Arlington
Tankers Ltd as Borrower and The Royal Bank of Scotland plc as Lender relating to a loan facility
of US$229,500,000</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We refer to our letter dated 5 August&nbsp;2008 and condition 1 contained therein. Please accept this
letter as our confirmation that we agree to extend the date for the signing of the acknowledgement to no
later than 12 September&nbsp;2008.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">All other terms and conditions referred to in the 5 August&nbsp;2008 letter remain unchanged.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Yours faithfully
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">/s/ Christopher Patrick<DIV style="width: 40%; border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV>
Christopher Patrick<BR>
Director, Ship Finance Portfolio Management<BR>
Shipping Business Centre

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Direct tel: &#043;44 207 085 7022&nbsp;&nbsp;&nbsp;Direct fax: &#043;44 207 085 7142<BR>
Email: christopher.patrick@rbs.com

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Royal Bank of Scotland plc. Registered
in Scotland No.&nbsp;90312. Registered Office. 36 St Andrew Square, Edinburgh EH2 2YB.<BR>
Authorised and regulated by the Financial Services Authority

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Royal Bank of Scotland plc is an authorised agent of ABN AMRO Bank N. V.

</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="70%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="20%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><IMG src="b72632atb7263201.gif" alt="(RBS LOGO)"></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">23 September&nbsp;2008</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><BR><BR><BR>Arlington Tankers Ltd<BR>
Contest Ltd, Concept Ltd, Consul Ltd<BR>
Concord Ltd, Compatriot Ltd, Companion Ltd<BR>
Victory Ltd and Vision Ltd<BR>
each of Hayward Building<BR>
22 Bermudian Road<BR>
Hamilton<BR>
HM 11<BR>
Bermuda
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" valign="top"><B>Global Banking &#038; Markets</B><BR>
Shipping Business Centre<BR>
5-10 Great Tower Street<BR>
London EC3P 3HX<BR>
Telephone: &#043;44 (0)20 7833 2121<BR>
Facsimile: &#043;44 (0)20 7085 7134<BR><BR>
www.rbs.com/gbm</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Attn: Grant Gibbons

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">cc Arlington Tankers LLC<BR>
191 Post Road<BR>
Westport<BR>
CT068 80 USA

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Attn: Ed Terino

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Dear Sirs

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Loan Agreement dated 12
December&nbsp;2005 (the &#147;Loan </B><B>Agreement&#148;) </B><B>made between Arlington
Tankers Ltd as Borrower and The Royal Bank of Scotland plc as Lender relating to a loan facility
of US$229,500,000</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We refer to our letters dated 5 August&nbsp;2008 and 2 September&nbsp;2008 and condition 1 contained
therein. Please accept this letter as our confirmation that we agree to extend the date for the
signing of the acknowledgement to no later than 26 September&nbsp;2008.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Additionally, in relation to points 2 to 6 contained in our letter dated 5 August&nbsp;2008 please
note that they will become effective upon closing of the Merger.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">All other terms and conditions referred to in the 5 August&nbsp;2008 letter remain unchanged.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Yours faithfully
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">/s/ Christopher Patrick<DIV style="width: 40%; border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV>
Christopher Patrick<BR>
Director, Ship Finance Portfolio Management<BR>
Shipping Business Centre

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Direct tel: &#043;44 207 085 7022&nbsp;&nbsp;&nbsp;Direct fax: &#043;44 207 085 7142<BR>
Email: christopher.patrick@rbs.com

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Royal Bank of Scotland plc. Registered in
Scotland No.&nbsp;90312. Registered Office. 36 St Andrew Square, Edinburgh EH2 2YB.<BR>
Authorised and regulated by the Financial Services Authority

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Royal Bank of Scotland plc is an authorised agent of ABN AMRO Bank N.V.

</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>



</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.2
<SEQUENCE>3
<FILENAME>b72632atexv10w2.htm
<DESCRIPTION>EX-10.2 EXECUTIVE RETENTION AGREEMENT, DATED AS OF OCTOBER 17, 2008
<TEXT>
<HTML>
<HEAD>
<TITLE>exv10w2</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Exhibit&nbsp;10.2</B>
</DIV>

<DIV align="right" style="font-size: 10pt; margin-top: 12pt">Execution Version
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 9pt"><B>ARLINGTON TANKERS LTD.</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><U>Executive Retention Agreement</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 18pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THIS EXECUTIVE RETENTION AGREEMENT (this &#147;<U>Agreement</U>&#148;) by and between Arlington Tankers
Ltd., a company incorporated in the Islands of Bermuda (the &#147;<U>Company</U>&#148;), and Edward Terino
(the &#147;<U>Executive</U>&#148;) is made as of October&nbsp;17, 2008.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, the Executive and the Company have entered into that certain Executive Change in
Control Agreement, dated as of October&nbsp;24, 2005 (the &#147;<U>Change in Control Agreement</U>&#148;),
pursuant to which the Executive would be entitled to the following benefits if the Executive&#146;s
employment with the Company is terminated by the Company without Cause (as defined in the Change in
Control Agreement) or by the Executive for Good Reason (as defined in the Change in Control
Agreement) within 12&nbsp;months following a Change in Control (as defined in the Change in Control
Agreement): (i)&nbsp;a payment equal to 12&nbsp;months of the Executive&#146;s base salary, (ii)&nbsp;a payment equal
to the highest bonus paid to the Executive in any of the three years prior to the date of the
Change in Control (as defined in the Change in Control Agreement), (iii)&nbsp;benefits for the Executive
and the Executive&#146;s family for 12&nbsp;months and (iv)&nbsp;certain outplacement services.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, the Executive is a &#147;Participant&#148; under the Company&#146;s 2006 Bonus Plan (the &#147;<U>2006
Bonus Plan</U>&#148;) pursuant to which the Executive has received an equity-based award.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, the Executive is a &#147;Participant&#148; under the Company&#146;s 2008 Bonus Plan (the &#147;<U>2008
Bonus Plan</U>&#148;) pursuant to which the Executive is eligible to be awarded cash incentive bonuses
if specified performance objectives are achieved, and such objectives are the Qualified Transaction
Objective, Other Approved Transaction Objective, and general &#038; administrative budget achievement
objective (each as defined in the 2008 Bonus Plan).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, the Company has entered into an Agreement and Plan of Merger and Amalgamation, dated
as of August&nbsp;5, 2008 (the &#147;<U>Merger Agreement</U>&#148;), with General Maritime Corporation and the
other parties thereto, pursuant to which General Maritime Corporation will combine with the
Company. Capitalized terms used herein and not otherwise defined shall have the meanings ascribed
to them in the Merger Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, the Executive and the Company agree that if the Executive&#146;s employment with the
Company is terminated by the Company without Cause (as defined in the Change in Control Agreement)
or by the Executive for Good Reason (as defined in the Change in Control Agreement) within 12
months following the Closing of the Combinations, the amount that would be payable to the Executive
pursuant to clauses (i)&nbsp;and (ii)&nbsp;in the first recital above would equal $500,000.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, the Compensation Committee of the Board has determined that the Combinations do not
constitute Qualified Transactions as defined in and pursuant to the 2008 Bonus Plan.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, in connection with entering into the Merger Agreement, the Board has determined that
additional steps should be taken to reinforce and encourage the continued employment and dedication
of the Executive and to recognize the efforts of the Executive in connection with the consummation
of the transactions contemplated by the Merger Agreement, including the granting by the
Compensation Committee of the Board to the Executive of a $750,000 discretionary cash bonus.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, the Executive and the Company desire for the Executive to receive the benefits set
forth herein upon Closing of the Combinations and upon the termination of the Executive under
certain circumstances.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOW, THEREFORE, in consideration of the foregoing and the respective covenants and agreements
set forth below, the Company and the Executive agree as follows:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;<U>Key Definitions</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As used herein, the following terms shall have the following respective meanings:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 &nbsp;&nbsp;&#147;<u>Cause</u>&#148; means:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) &nbsp;&nbsp;the Executive&#146;s willful and continued failure to substantially perform his reasonable
assigned duties as an officer of the Company (other than any such failure resulting from incapacity
due to physical or mental illness or any failure after the Executive gives notice of termination
for Good Reason), which failure is not cured within 30&nbsp;days after a written demand for substantial
performance is received by the Executive from the Board of Directors of the Company which
specifically identifies the manner in which the Board of Directors believes the Executive has not
substantially performed the Executive&#146;s duties; or
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) &nbsp;&nbsp;the Executive&#146;s willful engagement in illegal conduct or gross misconduct which is
materially and demonstrably injurious to the Company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For purposes of this Section&nbsp;1.1, no act or failure to act by the Executive shall be
considered &#147;willful&#148; unless it is done, or omitted to be done, in bad faith and without reasonable
belief that the Executive&#146;s action or omission was in the best interests of the Company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2 &nbsp;&nbsp;&#147;<U>Disability</U>&#148; means the Executive&#146;s absence from the full-time performance of the
Executive&#146;s duties with the Company for 180 consecutive calendar days as a result of incapacity due
to mental or physical illness which is determined to be total and permanent by a physician selected
by the Company or its insurers and acceptable to the Executive or the Executive&#146;s legal
representative.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3 &nbsp;&nbsp;&#147;<U>Good Reason</U>&#148; means the occurrence, without the Executive&#146;s written consent, of
any of the events or circumstances set forth in clauses (a)&nbsp;through (e)&nbsp;below. Notwithstanding the
occurrence of any such event or circumstance, such occurrence shall not be deemed to constitute
Good Reason if, prior to the Date of Termination specified in the Notice of Termination (each as
defined in Section&nbsp;3.2(a)) given by the Executive in respect thereof, such event or circumstance
has been fully corrected and the Executive has been reasonably compensated for any losses or
damages resulting therefrom (provided that such right of
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->2<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">correction by the Company shall only apply to the first Notice of Termination for Good Reason
given by the Executive).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) &nbsp;&nbsp;the assignment to the Executive of duties inconsistent in any material respect with the
Executive&#146;s position, authority or responsibilities in effect immediately prior to the date of the
Merger Agreement (the &#147;<U>Measurement Date</U>&#148;), or any other action or omission by the Company
which results in a material diminution in such position, authority or responsibilities;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) &nbsp;&nbsp;a material reduction in the Executive&#146;s annual base salary as in effect on the Measurement
Date or as the same was or may be increased thereafter from time to time;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) &nbsp;&nbsp;the failure by the Company to (i)&nbsp;continue in effect any material compensation or benefit
plan or program (including without limitation any life insurance, medical, health and accident or
disability plan and any vacation or automobile program or policy) (a &#147;<U>Benefit Plan</U>&#148;) in
which the Executive currently participates or which is applicable to the Executive immediately
prior to the Measurement Date, unless an equitable arrangement (embodied in an ongoing substitute
or alternative plan) has been made with respect to such plan or program or (ii)&nbsp;continue the
Executive&#146;s participation therein (or in such substitute or alternative plan) on a basis not
materially less favorable, both in terms of the amount of benefits provided and the level of the
Executive&#146;s participation relative to other participants, than the basis existing immediately prior
to the Measurement Date;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) &nbsp;&nbsp;a change by the Company in the location at which the Executive performs his principal
duties for the Company to a new location that is outside of the New York City metropolitan area;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) &nbsp;&nbsp;any material failure of the Company to pay or provide to the Executive any portion of the
Executive&#146;s compensation or benefits due under any Benefit Plan within seven days of the date such
compensation or benefits are due, or any material breach by the Company of this Agreement or any
employment agreement with the Executive.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding the foregoing provisions of this Section&nbsp;1.3, Good Reason shall not exist
unless (i)&nbsp;the Executive notifies the Company within 30&nbsp;days of the date on which a condition
giving rise to Good Reason first existed, and (ii)&nbsp;the Company fails to resolve the condition
within 30&nbsp;days following receipt of such notice. The Executive&#146;s right to terminate his employment
for Good Reason shall not be affected by his incapacity due to physical or mental illness. The
Executive acknowledges and agrees that neither the Board nor any committee of the Board
contemplates adopting a 2009 Bonus Plan or the payment of any other bonuses in respect of calendar
year 2009 and that such failure to adopt a bonus plan or pay any other bonuses shall not constitute
&#147;Good Reason&#148; under this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.4 &nbsp;&nbsp;&#147;<U>Triggering Event</U>&#148; means the first to occur (if at all) of any of the following:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. &nbsp;&nbsp;the Executive&#146;s employment with the Company is terminated by the Company (other than for
Cause, Disability or death) or by the Executive for Good Reason, in
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->3<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">each case prior to the first to occur of (i)&nbsp;termination of the Merger Agreement at any time
prior to the Effective Time or (ii)&nbsp;the Closing of the Combinations, or
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. &nbsp;&nbsp;the Closing of the Combinations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. &nbsp;&nbsp;<U>Term of Agreement</U>. This Agreement, and all rights and obligations of the parties
hereunder, shall take effect upon the date hereof and shall expire upon the first to occur of (a)
the termination of the Merger Agreement at any time prior to the Effective Time, (b)&nbsp;the date 12
months after the Closing Date, if the Executive is still employed by the Company as of such later
date, or (c)&nbsp;the fulfillment by the Company of all of its obligations under Section&nbsp;4 if the
Executive&#146;s employment with the Company terminates within 12&nbsp;months following the Closing Date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. &nbsp;&nbsp;<U>Employment Status; Termination</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 &nbsp;&nbsp;<U>Not an Employment Contract</U>. The Executive acknowledges that this Agreement does
not constitute a contract of employment or impose on the Company any obligation to retain the
Executive as an employee and that this Agreement does not prevent the Executive from terminating
employment at any time. If the Executive&#146;s employment with the Company terminates for any reason,
the Executive shall not be entitled to any payments or benefits hereunder except as otherwise
provided pursuant to Section&nbsp;4.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 &nbsp;&nbsp;<U>Termination of Employment</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) &nbsp;&nbsp;Any termination of the Executive&#146;s employment by the Company or by the Executive (other
than due to the death of the Executive) shall be communicated by a written notice to the other
party hereto (the &#147;<U>Notice of Termination</U>&#148;), given in accordance with Section&nbsp;7. Any Notice
of Termination shall: (i)&nbsp;indicate the specific termination provision (if any) of this Agreement
relied upon by the party giving such notice, (ii)&nbsp;to the extent applicable, set forth in reasonable
detail the facts and circumstances claimed to provide a basis for termination of the Executive&#146;s
employment under the provision so indicated and (iii)&nbsp;specify the Date of Termination (as defined
below). The effective date of an employment termination (the &#147;<U>Date of Termination</U>&#148;) shall
be the close of business on the date specified in the Notice of Termination, in the case of a
termination other than one due to the Executive&#146;s death, or the date of the Executive&#146;s death, as
the case may be. In the event the Company fails to satisfy the requirements of this Section&nbsp;3.2(a)
regarding a Notice of Termination, the purported termination of the Executive&#146;s employment pursuant
to such Notice of Termination shall not be effective for purposes of this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) &nbsp;&nbsp;The failure by the Executive or the Company to set forth in the Notice of Termination any
fact or circumstance which contributes to a showing of Good Reason or Cause shall not waive any
right of the Executive or the Company, respectively, hereunder or preclude the Executive or the
Company, respectively, from asserting any such fact or circumstance in enforcing the Executive&#146;s or
the Company&#146;s rights hereunder.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) &nbsp;&nbsp;Any Notice of Termination for Cause given by the Company must be given within 30&nbsp;days of
the occurrence of the event(s) or circumstance(s) which constitute(s) Cause. Prior to any Notice
of Termination for Cause being given (and prior to any termination
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">for Cause being effective), the Executive shall be entitled to a hearing before the Board at
which he may, at his election, be represented by counsel and at which he shall have a reasonable
opportunity to be heard. Such hearing shall be held on not less than 15&nbsp;days prior written notice
to the Executive stating the Board&#146;s intention to terminate the Executive for Cause and stating in
detail the particular event(s) or circumstance(s) which the Board believes constitutes Cause for
termination.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) &nbsp;&nbsp;Any Notice of Termination for Good Reason given by the Executive must be given within 30
days of the occurrence of the event(s) or circumstance(s) which constitute(s) Good Reason.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. &nbsp;&nbsp;<U>Benefits to Executive</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1 &nbsp;&nbsp;<U>Bonus Payment</U>. Upon the occurrence of a Triggering Event, then, subject to the
Executive timely delivering an executed release substantially in the form attached hereto as
<U>Exhibit&nbsp;A</U> (the &#147;<U>Release</U>&#148;) and provided that the Executive does not revoke the
Release, no earlier than eight days after the date of execution of the Release and no later than 35
days after the Date of Termination (in the case of clause (a)&nbsp;of the definition of Triggering
Event) or the Closing Date (in the case of clause (b)&nbsp;of the definition of Triggering Event), but
in either case, no earlier than January&nbsp;2, 2009, the Company shall pay to the Executive a lump sum
cash payment equal to $1,250,000.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2 &nbsp;&nbsp;<U>2006 Bonus Plan Payment</U>. Upon the occurrence of a Triggering Event prior to the
Vesting Date (as defined in the 2006 Bonus Plan), then, subject to the Executive timely delivering
an executed Release and provided that the Executive does not revoke the Release, no earlier than
eight days after the date of execution of the Release and no later than 30&nbsp;days after the Date of
Termination (in the case of clause (a)&nbsp;of the definition of Triggering Event) or the Closing Date
(in the case of clause (b)&nbsp;of the definition of Triggering Event), but in either case, no earlier
than January&nbsp;2, 2009, the Company shall pay to the Executive a cash payment equal to the product of
(A)&nbsp;the average daily per share closing price of the Company&#146;s common shares on the New York Stock
Exchange during the 30 trading days preceding the Closing Date, times (B)&nbsp;3,537 (which represents
the Reference Number of Shares (as defined in the 2006 Bonus Plan)).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3 &nbsp;&nbsp;<U>Compensation for Termination Without Cause or for Good Reason</U>. If (i)&nbsp;the
Executive&#146;s employment with the Company is terminated prior to the first to occur of (A)
termination of the Merger Agreement at any time prior to the Effective Time or (B)&nbsp;the date that is
12&nbsp;months after the Closing Date and (ii)&nbsp;Executive&#146;s employment with the Company is terminated by
the Company (other than for Cause, Disability or death) or by the Executive for Good Reason, then,
in addition to any payments set forth in Sections&nbsp;4.1 and 4.2, subject to the Executive delivering
an executed Release and provided that the Executive does not revoke the Release the Executive shall
be entitled to the following benefits:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) &nbsp;&nbsp;for 12&nbsp;months after the Date of Termination, or such longer period as may be provided by
the terms of the appropriate plan, program, practice or policy, the Company shall continue to
provide benefits (including the Company&#146;s 401(k) matching contribution) to the Executive and the
Executive&#146;s family at least equal to those which would
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">have been provided to them if the Executive&#146;s employment had not been terminated, in
accordance with the applicable Benefit Plans in effect on the Measurement Date or, if more
favorable to the Executive and his family, in effect generally at any time thereafter with respect
to other peer executives of the Company and its affiliated companies; provided, that (A)&nbsp;if the
Executive becomes reemployed with another employer and is eligible to receive a particular type of
benefits (e.g., health insurance benefits) from such employer on terms at least as favorable to the
Executive and his family as those being provided by the Company, then the Company shall no longer
be required to provide those particular benefits to the Executive and his family, (B)&nbsp;in the event
continuation of such benefits is not permitted under such Benefit Plans or is deemed by the Company
to be too costly, the Company shall pay to Employee the cash equivalent of such benefits, and (C)
the aggregate amount of expense incurred by the Company in providing the benefits under this
Section&nbsp;4.3(a) shall not exceed $75,000;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) &nbsp;&nbsp;for purposes of determining eligibility (but not the time of commencement of benefits) of
the Executive for retiree benefits to which the Executive is entitled in accordance with this
Section&nbsp;4.3(b), the Executive shall be considered to have remained employed by the Company until 12
months after the Date of Termination; and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) &nbsp;&nbsp;within six months following the Date of Termination, the Company shall provide
outplacement services through one or more outside firms of the Executive&#146;s choosing up to an
aggregate of $20,000, with such services to extend until the earlier of (i)&nbsp;12&nbsp;months following the
termination of Executive&#146;s employment or (ii)&nbsp;the date the Executive secures full time employment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4 &nbsp;&nbsp;<U>Termination of Employment Following Termination of Merger Agreement</U>. In the event
that the Merger Agreement terminates at any time prior to the Effective Time and the Executive&#146;s
employment with the Company is terminated by the Company (other than for Cause, Disability or
death) or by the Executive for Good Reason prior to the Vesting Date (as defined in the 2006 Bonus
Plan), subject to the Executive delivering an executed Release and provided that the Executive does
not revoke the Release, the Executive shall be entitled to the following benefit, payable in a lump
sum no earlier than eight days after the date of execution of the Release and no later than 30&nbsp;days
after the Date of Termination: payment of a cash payment equal to the product of (A)&nbsp;the average
daily per share closing price of the Company&#146;s common shares on the New York Stock Exchange during
the 30 trading days preceding the Date of Termination, times (B)&nbsp;3,537 (which represents the
Reference Number of Shares (as defined in the 2006 Bonus Plan)). Notwithstanding any other
provision of this Agreement to the contrary, this Section&nbsp;4.4 will survive the termination of this
Agreement if this Agreement is terminated under clause (a)&nbsp;of Section&nbsp;2 hereof while the Executive
is still employed by the Company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.5 &nbsp;&nbsp;<U>Termination for Death or Disability</U>. Notwithstanding anything herein to the
contrary, if the Executive&#146;s employment with the Company is terminated by reason of the Executive&#146;s
death or Disability, then the Executive shall not be entitled to any payments or benefits under
this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6 &nbsp;&nbsp;<U>Resignation without Good Reason; Termination for Cause</U>. Notwithstanding anything
herein to the contrary, if the Company terminates the Executive&#146;s
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">employment with the Company for Cause, or if the Executive voluntarily terminates his
employment with the Company (other than a termination for Good Reason), then the Executive shall
not be entitled to any payments or benefits under this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.7 &nbsp;&nbsp;<U>Gross-up</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) &nbsp;&nbsp;Anything in this Agreement to the contrary notwithstanding, in the event it shall be
determined (as hereafter provided) that any payment, benefit or distribution to or for the
Executive&#146;s benefit, whether paid or payable or distributed or distributable pursuant to the terms
of this Agreement or otherwise (a &#147;<U>Payment</U>&#148;), would be subject to the excise tax imposed by
Section&nbsp;4999 of the Internal Revenue Code of 1986, as amended (the &#147;<U>Code</U>&#148;) (or any
successor provision thereto), or any interest or penalties with respect to such excise tax (such
tax, together with any such interest and penalties, hereafter collectively referred to as the
&#147;<U>Excise Tax</U>&#148;), then the Executive shall be entitled to receive an additional payment or
payments (a &#147;<U>Gross-Up Payment</U>&#148;) in an amount such that, after payment by the Executive of
all taxes (including any interest or penalties imposed with respect to such taxes), including any
Excise Tax, imposed upon the Gross-Up Payment, the Executive retains an amount of the Gross-Up
Payment equal to the Excise Tax imposed upon the Payments. For purposes of determining the amount
of the Gross-Up Payment, the Executive shall be deemed to pay federal income taxes at the highest
marginal rates of federal income taxation applicable to individuals in the calendar year in which
the Gross-Up Payment is to be made and state and local income taxes at the highest marginal rates
of taxation applicable to individuals as are in effect in the state and locality of the Executive&#146;s
residence in the calendar year in which the Gross-Up Payment is to be made, net of the maximum
reduction in federal income taxes that can be obtained from deduction of such state and local
taxes, taking into account any limitations applicable to individuals subject to federal income tax
at the highest marginal rates.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) &nbsp;&nbsp;All determinations required to be made under this Section&nbsp;4.7, including whether an Excise
Tax is payable by the Executive, the amount of such Excise Tax, whether a Gross-Up Payment is
required, and the amount of such Gross-Up Payment, shall be made by mutual agreement between the
Executive and the Company. If the parties are not able to reach an agreement with respect to such
determinations, then an independent auditor (the &#147;<U>Firm</U>&#148;) selected by the Executive and the
Company shall make such determinations. The Firm shall be a nationally-recognized United States
public accounting firm which has not, during the two years preceding the date of its selection,
acted in any way for the Company or any affiliate thereof. Either the Company or the Executive may
request that a determination be made. The Firm shall submit its determination and detailed
supporting calculations to the Executive and the Company as promptly as practicable. If the Firm
determines that any Excise Tax is payable by the Executive and that a Gross-Up Payment is required,
the Company shall pay the Executive the required Gross-Up Payment within thirty (30)&nbsp;days of
receipt of such determination and calculations. If the Firm determines that no Excise Tax is
payable by the Executive, it shall, at the same time it makes such determination, furnish the
Executive with an opinion that the Executive has substantial authority not to report any Excise Tax
on the Executive&#146;s federal income tax return. Any determination by the Firm as to the amount of
the Gross-Up Payment shall be binding upon the Executive and the Company.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) &nbsp;&nbsp;As a result of the uncertainty in the application of Section&nbsp;4999 of the Code (or any
successor provision thereto) at the time of the initial determination by the Firm hereunder, it is
possible that Gross-Up Payments which will not have been made by the Company should have been made
(an &#147;<U>Underpayment</U>&#148;). If the Executive thereafter is required to make a payment of any
Excise Tax, the Firm shall determine the amount of the Underpayment (if any) that has occurred and
submit its determination and detailed supporting calculations to the Executive and the Company as
promptly as possible. Any such Underpayment shall be promptly paid by the Company to the
Executive, or for the Executive&#146;s benefit, within thirty (30)&nbsp;days of receipt of such determination
and calculations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) &nbsp;&nbsp;In the event that the Internal Revenue Service makes any claim, gives notice of any
potential claim or institutes a proceeding against the Executive asserting that any Excise Tax or
additional Excise Tax is due in respect of the Payments, the Executive shall promptly give the
Company notice of any such claim, potential claim or proceeding. The Company shall have the right
to conduct all discussions, negotiations, defenses, actions and proceedings, to the extent
reasonably requested by the Company. The Executive will not settle any claim or proceeding
relating solely to the Excise Tax payable in respect of the Payments without the consent of the
Company, which consent shall not be unreasonably withheld. The Executive shall file, at the
Company&#146;s expense, all requests for refunds of the Gross-Up Amount, or any portion thereof, paid to
any taxing authority as shall be reasonably requested by the Company and shall pay over to the
Company (net of any tax payable thereon) any such refunds, together with any interest thereon, when
and as such refunds and interest are received by the Executive.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.8 &nbsp;&nbsp;<U>Payments subject to Section&nbsp;409A</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) &nbsp;&nbsp;Subject to this Section&nbsp;4.8, payments or benefits due under Sections&nbsp;4.1 and 4.2 as a
result of the occurrence of clause (a)&nbsp;in the definition of Triggering Event and under Sections&nbsp;4.3
and 4.4 shall begin only upon the date of a &#147;separation from service&#148; of the Executive (determined
as set forth below) which occurs on or after the termination of the Executive&#146;s employment. The
following rules shall apply with respect to distribution of the payments or benefits, if any, to be
provided to the Executive under Sections&nbsp;4.1, 4.2, 4.3 and 4.4 as applicable:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) &nbsp;&nbsp;&nbsp;It is intended that each installment of the payments and benefits due under Sections&nbsp;4.1,
4.2, 4.3 and 4.4 shall be treated as a separate &#147;payment&#148; for purposes of Section&nbsp;409A of the Code
and the guidance issued thereunder (&#147;<U>Section&nbsp;409A</U>&#148;). Neither the Company nor the Executive
shall have the right to accelerate or defer the delivery of any such payments or benefits except to
the extent specifically permitted or required by Section&nbsp;409A.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) &nbsp;&nbsp;&nbsp;If, as of the date of the &#147;separation from service&#148; of the Executive from the Company,
the Executive is not a &#147;specified employee&#148; (within the meaning of Section&nbsp;409A), then each
installment of the payments and benefits shall be made on the dates and terms set forth in Sections
4.1, 4.2, 4.3 and 4.4.
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;If, as of the date of the &#147;separation from service&#148; of the Executive from the Company,
the Executive is a &#147;specified employee&#148; (within the meaning of Section&nbsp;409A), then:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) &nbsp;&nbsp;Each installment of the payments and benefits due under Sections&nbsp;4.1, 4.2, 4.3 and 4.4
that, in accordance with the dates and terms set forth herein, will in all circumstances,
regardless of when the separation from service occurs, be paid within the Short-Term Deferral
Period (as hereinafter defined) shall be treated as a short-term deferral within the meaning of
Treasury Regulation&nbsp;Section&nbsp;1.409A-1(b)(4) to the maximum extent permissible under Section&nbsp;409A.
For purposes of this Agreement, the &#147;Short-Term Deferral Period&#148; means the period ending on the
later of the 15<SUP style="font-size: 85%; vertical-align: text-top">th</SUP> day of the third month following the end of the Executive&#146;s tax year
in which the separation from service occurs and the 15<SUP style="font-size: 85%; vertical-align: text-top">th</SUP> day of the third month
following the end of the Company&#146;s tax year in which the separation from service occurs; and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) &nbsp;&nbsp;Each installment of the payments and benefits due under Sections&nbsp;4.1, 4.2, 4.3 and 4.4
that is not described in Section&nbsp;4.8(a)(iii)(1) and that would, absent this subsection, be paid
within the six-month period following the &#147;separation from service&#148; of the Executive from the
Company shall not be paid until the date that is six months and one day after such separation from
service (or, if earlier, the Executive&#146;s death), with any such installments that are required to be
delayed being accumulated during the six-month period and paid in a lump sum on the date that is
six months and one day following the Executive&#146;s separation from service and any subsequent
installments, if any, being paid in accordance with the dates and terms set forth herein;
<U>provided</U>, <U>however</U>, that the preceding provisions of this sentence shall not apply
to any installment of payments and benefits if and to the maximum extent that that such installment
is deemed to be paid under a separation pay plan that does not provide for a deferral of
compensation by reason of the application of Treasury Regulation&nbsp;1.409A-1(b)(9)(iii) (relating to
separation pay upon an involuntary separation from service). Any installments that qualify for the
exception under Treasury Regulation&nbsp;Section&nbsp;1.409A-1(b)(9)(iii) must be paid no later than the last
day of the Executive&#146;s second taxable year following his taxable year in which the separation from
service occurs.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) &nbsp;&nbsp;The determination of whether and when a separation from service of the Executive from the
Company has occurred shall be made and in a manner consistent with, and based on the presumptions
set forth in, Treasury Regulation&nbsp;Section&nbsp;1.409A-1(h). Solely for purposes of this Section&nbsp;4.8(b),
&#147;Company&#148; shall include all persons with whom the Company would be considered a single employer
under Section 414(b) and 414(c) of the Code.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) &nbsp;&nbsp;All reimbursements and in-kind benefits provided under the Agreement shall be made or
provided in accordance with the requirements of Section&nbsp;409A to the extent that such reimbursements
or in-kind benefits are subject to Section&nbsp;409A.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.9 &nbsp;&nbsp;<U>Mitigation</U>. The Executive shall not be required to mitigate the amount of any
payment or benefits provided for in this Section&nbsp;4 by seeking other employment or otherwise.
Further, except as provided in Section&nbsp;4.3(a), the amount of any payment or benefits provided for
in this Section&nbsp;4 shall not be reduced by any compensation earned by the Executive
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">as a result of employment by another employer, by retirement benefits, by offset against any
amount claimed to be owed by the Executive to the Company or otherwise.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. &nbsp;&nbsp;<U>Settlement of Disputes; Arbitration</U>. All claims by the Executive for benefits
under this Agreement shall be directed to and determined by the Board and shall be in writing. Any
denial by the Board of a claim for benefits under this Agreement shall be delivered to the
Executive in writing and shall set forth the specific reasons for the denial and the specific
provisions of this Agreement relied upon. The Board shall afford a reasonable opportunity to the
Executive for a review of the decision denying a claim. Any further dispute or controversy arising
under or in connection with this Agreement shall be settled exclusively by arbitration in New York,
New York, in accordance with the rules of the American Arbitration Association then in effect.
Judgment may be entered on the arbitrator&#146;s award in any court having jurisdiction.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. &nbsp;&nbsp;<U>Successors</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1 &nbsp;&nbsp;<U>Successor to Company</U>. The Company shall require any successor (whether direct or
indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the
business or assets of the Company expressly to assume and agree to perform this Agreement to the
same extent that the Company would be required to perform it if no such succession had taken place.
Failure of the Company to obtain an assumption of this Agreement at or prior to the effectiveness
of any succession shall be a breach of this Agreement and shall constitute Good Reason if the
Executive elects to terminate employment, except that for purposes of implementing the foregoing,
the date on which any such succession becomes effective shall be deemed the Date of Termination.
As used in this Agreement, &#147;Company&#148; shall mean the Company as defined above and any successor to
its business or assets as aforesaid which assumes and agrees to perform this Agreement, by
operation of law or otherwise.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2 &nbsp;&nbsp;<U>Successor to Executive</U>. This Agreement shall inure to the benefit of and be
enforceable by the Executive&#146;s personal or legal representatives, executors, administrators,
successors, heirs, distributees, devisees and legatees. If the Executive should die while any
amount would still be payable to the Executive or his family hereunder if the Executive had
continued to live, all such amounts, unless otherwise provided herein, shall be paid in accordance
with the terms of this Agreement to the executors, personal representatives or administrators of
the Executive&#146;s estate.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. &nbsp;&nbsp;<U>Notice</U>. All notices, instructions and other communications given hereunder or in
connection herewith shall be in writing. Any such notice, instruction or communication shall be
sent either (i)&nbsp;by registered or certified mail, return receipt requested, postage prepaid, or (ii)
prepaid via a reputable nationwide overnight courier service, in each case addressed to the
Company, at Arlington Tankers Ltd., c/o Arlington Tankers LLC, 191 Post Road West, Westport,
Connecticut, 06880 United States and to the Executive at the Executive&#146;s address indicated on the
signature page of this Agreement (or to such other address as either the Company or the Executive
may have furnished to the other in writing in accordance herewith). Any such notice, instruction
or communication shall be deemed to have been delivered five business days after it is sent by
registered or certified mail, return receipt requested, postage prepaid, or one business day after
it is sent via a reputable nationwide overnight courier service. Either party may give any notice,
instruction or other communication hereunder using any other
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">means, but no such notice, instruction or other communication shall be deemed to have been
duly delivered unless and until it actually is received by the party for whom it is intended.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. &nbsp;&nbsp;<U>Miscellaneous</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1 &nbsp;&nbsp;<U>Employment by Subsidiary</U>. For purposes of this Agreement, the Executive&#146;s
employment with the Company shall not be deemed to have terminated solely as a result of the
Executive continuing to be employed by a wholly-owned subsidiary of the Company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2 &nbsp;&nbsp;<U>Severability</U>. The invalidity or unenforceability of any provision of this
Agreement shall not affect the validity or enforceability of any other provision of this Agreement,
which shall remain in full force and effect.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.3 &nbsp;&nbsp;<U>Injunctive Relief</U>. The Company and the Executive agree that any breach of this
Agreement by the Company is likely to cause the Executive substantial and irrevocable damage and
therefore, in the event of any such breach, in addition to such other remedies which may be
available, the Executive shall have the right to specific performance and injunctive relief.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.4 &nbsp;&nbsp;<U>Governing Law</U>. The validity, interpretation, construction and performance of this
Agreement shall be governed by the internal laws of the State of New York, United States, without
regard to conflicts of law principles.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.5 &nbsp;&nbsp;<U>Waivers</U>. No waiver by the Executive at any time of any breach of, or compliance
with, any provision of this Agreement to be performed by the Company shall be deemed a waiver of
that or any other provision at any subsequent time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.6 &nbsp;&nbsp;<U>Counterparts</U>. This Agreement may be executed in counterparts, each of which shall
be deemed to be an original but both of which together shall constitute one and the same
instrument.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.7 &nbsp;&nbsp;<U>Tax Withholding</U>. Any payments provided for hereunder shall be paid net of any
applicable tax withholding required under federal, state or local law.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.8 &nbsp;&nbsp;<U>Expenses</U>. Each party hereto shall bear its own costs and expenses (including
legal fees and expenses) incurred in connection with entering into this Agreement and performing
its obligations hereunder.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.9 &nbsp;&nbsp;<U>Entire Agreement</U>. This Agreement sets forth the entire agreement of the parties
hereto in respect of the subject matter contained herein and supersedes all prior agreements,
promises, covenants, arrangements, communications, representations or warranties, whether oral or
written, by any officer, employee or representative of any party hereto in respect of the subject
matter contained herein, including the Change in Control Agreement and the 2008 Bonus Plan; and any
prior agreement of the parties hereto in respect of the subject matter contained herein is hereby
terminated and cancelled. Notwithstanding the foregoing, in the event that this Agreement expires
as a result of the occurrence of clause (a)&nbsp;of Section&nbsp;2, the Change in Control Agreement and the
2008 Bonus Plan shall not be superseded and shall continue in full force and effect in accordance
with its terms.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.10 &nbsp;&nbsp;<U>Amendments</U>. This Agreement may be amended or modified only by a written
instrument executed by both the Company and the Executive.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.11 &nbsp;&nbsp;<U>Executive&#146;s Acknowledgements</U>. The Executive acknowledges that he: (a)&nbsp;has read
this Agreement and the Release; (b)&nbsp;has been represented in the preparation, negotiation, and
execution of this Agreement by legal counsel of the Executive&#146;s own choice or has voluntarily
declined to seek such counsel; (c)&nbsp;understands the terms and consequences of this Agreement; and
(d)&nbsp;understands that the law firm of Wilmer Cutler Pickering Hale and Dorr LLP is acting as counsel
to the Company in connection with the transactions contemplated by this Agreement, and is not
acting as counsel for the Executive.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.12 &nbsp;&nbsp;<U>Section&nbsp;409A</U>. This Agreement is intended to comply with the provisions of
Section&nbsp;409A and the Agreement shall, to the extent practicable, be construed in accordance
therewith. The Company makes no representation or warranty and shall have no liability to the
Executive or any other person if any provisions of this Agreement are determined to constitute
deferred compensation subject to Section&nbsp;409A and do not satisfy an exemption from, or the
conditions of, Section&nbsp;409A.
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year
first set forth above.
</DIV>



<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left"><BR>
<B>ARLINGTON TANKERS LTD.</B><BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ E. GRANT GIBBONS
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">E. Grant Gibbons&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">Director&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
</TABLE>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" style="border-bottom: 1px solid #000000" align="left">/s/ EDWARD TERINO
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left"><B>EDWARD TERINO</B>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
</TABLE>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">Address:<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" style="border-bottom: 1px solid #000000" align="left">17 CANTERBURY ROAD
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left">&nbsp;</TD>

<TD colspan="3" style="border-bottom: 1px solid #000000" align="left">WINDHAM, NH 03087&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" style="border-bottom: 1px solid #000000" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>




<DIV align="center" style="font-size: 10pt; margin-top: 36pt">&#091;Signature Page to Executive Retention Agreement&#093;</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio --><!-- /Folio -->
</DIV>




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<DIV align="right" style="font-size: 10pt; margin-top: 12pt">Exhibit&nbsp;A to Executive Retention Agreement
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>FORM OF</B></U>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 9pt"><U><B>RELEASE</B></U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">&#091;NOTE: FORM INCLUDES OPTIONS IF EXECUTIVE IS NOT TERMINATED AND RELEASE IS BEING EXECUTED UPON
PAYMENT OF BONUS.&#093;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This RELEASE (this &#147;<U>Release</U>&#148;) is entered into by and between Arlington Tankers Ltd.
(the &#147;<U>Company</U>&#148;) and Edward Terino (the &#147;<U>Executive</U>&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The parties have entered into that certain Executive Retention Agreement, dated as of October
17, 2008 (the &#147;<U>Retention Agreement</U>&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company has entered into an Agreement and Plan of Merger and Amalgamation, dated as of
August&nbsp;5, 2008 (the &#147;<U>Merger Agreement</U>&#148;), with General Maritime Corporation and the other
parties thereto.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#091;INCLUDE IF NO TERMINATION: The Executive is entitled to a bonus payment pursuant to the
Retention Agreement subject to his timely execution and delivery of this Release and provided he
does not timely revoke such acceptance.&#093;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#091;INCLUDE IF TERMINATION: The parties wish to resolve amicably the Executive&#146;s separation from
the Company and establish the terms of the Executive&#146;s severance arrangement.&#093;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOW, THEREFORE, in consideration of the promises and conditions set forth herein, the
sufficiency of which is hereby acknowledged, the Company and the Executive agree as follows:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&#091;INCLUDE IF TERMINATION: <U>Termination Date</U>. The Executive&#146;s effective date of
termination from the Company is &#95;&#95;&#95;, 20_.&#093;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;<U>Consideration</U>. In return for the execution of this Release and it becoming binding
upon the Executive, the Company agrees to pay the Executive the amounts and provide the Executive
the benefits set forth in &#091;INSERT APPLICABLE SECTIONS: Section&nbsp;4.1 &#091;,/and&#093; Section&nbsp;4.2 &#091;and&#093;
Section&nbsp;4.3&#093; of the Retention Agreement (the &#147;<U>Release Benefits</U>&#148;), less applicable taxes and
withholdings.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;<U>Release</U>. In consideration of the payment of the Release Benefits, which the
Executive acknowledges he would not otherwise be entitled to receive, the Executive hereby fully,
forever, irrevocably and unconditionally releases, remises and discharges the Company and General
Maritime Corporation and their respective officers, directors, stockholders, corporate affiliates,
subsidiaries, parent companies, agents and Executives (each in their
individual and corporate capacities), all executive benefit plans and plan fiduciaries (hereinafter, the
&#147;<U>Released Parties</U>&#148;) from any and all claims, charges, complaints, demands, actions, causes
of action, suits, rights, debts, sums of money, costs, accounts, reckonings, covenants, contracts,
agreements, promises, doings, omissions, damages, executions, obligations, liabilities, and
expenses
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(including attorneys&#146; fees and costs), of every kind and nature which the Executive ever
had or now has against the Released Parties, including but not limited to, any and all claims
arising out of the Executive&#146;s employment with &#091;INCLUDE IF TERMINATION and/or separation from&#093; the
Company, including, but not limited to, &#091;INCLUDE IF APPLICABLE: all claims for any payment in
connection with the Closing (as defined in the Merger Agreement) of the Combinations (as defined in
the Merger Agreement),&#093; all employment discrimination claims under Title VII of the Civil Rights
Act of 1964, 42 U.S.C. &#167; 2000e <U>et</U> <U>seq.</U>, the Age Discrimination in Employment Act, 29 U.S.C.
&#167; 621 <U>et</U> <U>seq.</U>, the Americans With Disabilities Act of 1990, 42 U.S.C., &#167; 12101
<U>et</U> <U>seq.</U>, the Family and Medical Leave Act, 29 U.S.C. &#167; 2601 <U>et</U>
<U>seq.</U>, <B>&#091;Note: If Employer receives any federal funds, insert the Rehabilitation Act of
1973, 29 U.S.C. &#167; 701 </B><U><B>et</B></U> <U><B>seq.</B></U><B>&#093; </B>and the Connecticut Human Rights and Opportunities
Act, Conn. Gen. Stat. &#167; 46a-51 <U>et</U> <U>seq.</U>, the Connecticut Equal Pay Law, Conn. Gen. Stat. &#167;
31-75 <U>et</U> <U>seq.</U>, the Connecticut Family and Medical Leave
Law, Conn. Gen. Stat. &#167; 31-51kk <U>et</U> <U>seq.</U>, Conn. Gen. Stat. &#167; 31-51m (Connecticut whistleblower protection law), all as amended;
all common law claims including, but not limited to, actions in tort, defamation and breach of
contract; all claims to any non-vested ownership interest in the Company, contractual or otherwise,
including but not limited to claims to stock or stock options; and any claim or damage arising out
of the Executive&#146;s employment with &#091;INCLUDE IF TERMINATION or separation from&#093; the Company
(including a claim for retaliation) under any common law theory or any federal, state or local
statute or ordinance not expressly referenced above; provided, however, that nothing in this
Release prevents the Executive from filing, cooperating with, or participating in any proceeding
before the EEOC or a state Fair Employment Practices Agency (except that the Executive acknowledges
that he may not be able to recover any monetary benefits in connection with any such claim, charge
or proceeding).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;&#091;INCLUDE IF TERMINATION:<U> Return of Company Property</U>. The Executive agrees to
return all Company property and equipment in his possession or control, including, but not limited
to, all Company files and documents. The Executive further agrees to leave intact all electronic
Company documents including those which he developed or helped develop during his employment.&#093;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;&#091;INCLUDE IF TERMINATION: <U>Cooperation</U>. The Executive agrees to cooperate fully with
the Company in the defense or prosecution of any claims or actions now in existence or which may be
brought in the future against or on behalf of the Company, provided such requests are made by the
Company with reasonable notice to the Executive and at reasonable times designated by the Company.
The Executive&#146;s full cooperation in connection with such claims or actions shall include, but not
be limited to, his being available to meet with Company counsel to prepare for trial or discovery
or an administrative hearing and to act as a witness when requested by the Company. The Company
shall pay the Executive a reasonable hourly rate and reimburse the Executive for all reasonable
expenses and out-of-pocket costs incurred in connection with fulfilling the Executive&#146;s obligations
under this Section&nbsp;5.&#093;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;<U>Nature of Agreement</U>. The Executive understands and agrees that this Release is a
&#091;INCLUDE IF TERMINATION: severance and&#093; settlement agreement and does not constitute an admission
of liability or wrongdoing on the part of the Company.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.&nbsp;<U>Amendment</U>. This Release shall be binding upon the parties and may not be
abandoned, supplemented, changed or modified in any manner, orally or otherwise, except by an
instrument in writing of concurrent or subsequent date signed by a duly authorized representative
of the parties hereto. This Release is binding upon and shall inure to the benefit of the parties
and their respective agents, assigns, heirs, executors, successors and administrators.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.&nbsp;<U>Validity</U>. Should any provision of this Release be declared or be determined by any
court of competent jurisdiction to be illegal or invalid, the validity of the remaining parts,
terms, or provisions shall not be affected thereby and said illegal and invalid part, term or
provision shall be deemed not to be a part of this Release.&#093;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.&nbsp;<U>Confidentiality</U>. The Executive acknowledges that as a result of his employment
with the Company, he has come into possession of non-public and/or confidential and/or proprietary
information relating to the Company, General Maritime Corporation and their respective affiliates,
including their respective practices, directors, officers, agents and employees. Except as
otherwise required by court order or subpoena, the Executive agrees that he will not directly or
indirectly use or disclose to any person, firm, or entity such non-public and/or confidential
and/or other proprietary information acquired during his employment unless authorized in writing to
do so by the Company. The Executive further agrees and understands that he is prohibited from
disclosing any terms of this Release to anyone, except that he may disclose the terms of this
Release and the Retention Agreement to his attorneys, accountants, or other advisors, or as
otherwise required by law.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.&nbsp;<U>&#091;</U>INCLUDE IF TERMINATION: <U>Non-Disparagement</U>. In return for the execution
of this Release and it becoming binding upon the Executive, and as a condition for payment to the
Executive of the monetary consideration herein, the Executive and the Company agree not to make any
false, disparaging or derogatory statements in public or private to any person or media outlet
regarding each other or any of each other&#146;s directors, officers, executives, agents,
representatives, business affairs or financial condition.&#093;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.&nbsp;<U>Tax Acknowledgement</U>: In connection with the payments and consideration provided
to the Executive pursuant to this Release, the Company shall withhold and remit to the tax
authorities the amounts required under applicable law, and the Executive shall be responsible for
all applicable taxes with respect to such payments and consideration under applicable law. The
Executive acknowledges that he is not relying upon the advice or representation of the Company with
respect to the tax treatment of any of the payments set forth in this Release.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.&nbsp;<U>Entire Agreement</U>. This Release contains and constitutes the entire understanding
and agreement between the parties hereto with respect to the matters set forth herein and cancels
all previous oral and written negotiations, agreements, commitments, and writings in connection
therewith.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.&nbsp;<U>Applicable Law and Consent to Jurisdiction.</U> This Release shall be interpreted and
construed by the laws of the State of Connecticut, without regard to conflict of laws provisions.
The Executive hereby irrevocably submits to and acknowledges and recognizes the jurisdiction of the
courts of the State of Connecticut, or if appropriate, a federal court located in Connecticut
(which courts, for purposes of this Release, are the only courts of competent jurisdiction) over
any suit, action or other proceeding arising out of, under or in connection with this Release or
the subject matter hereof.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.&nbsp;<U>Acknowledgments</U>. The Executive acknowledges that he has been given twenty-one
(21)&nbsp;days to consider this Release and that the Company advised him to consult with any attorney of
him own choosing prior to signing this Release. The Executive may revoke this Release for a period
of seven (7)&nbsp;days after the execution of this Release, and the Agreement shall not be effective or
enforceable until the expiration of this seven (7)&nbsp;day revocation period.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.&nbsp;<U>Voluntary Assent</U>. The Executive affirms that no other promises or agreements of
any kind have been made to or with him by any person or entity whatsoever to cause him to sign this
Release, and that he fully understands the meaning and intent of this Release. The Executive
states and represents that he has had an opportunity to fully discuss and review the terms of this
Release with an attorney. The Executive further states and represents that he has carefully read
this Release, understands the contents herein, freely and voluntarily assents to all of the terms
and conditions hereof, and signs his name of his own free act.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->-4-<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN WITNESS WHEREOF, all parties have set their hand and seal to this Release as of the date
written below.
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="44%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD align="left"><B>EDWARD TERINO</B></TD>
    <TD valign="top">&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">Date:
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left" >&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left" style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR>
    <TD align="left"><B>ARLINGTON TANKERS LTD.</B></TD>
    <TD valign="top">&nbsp;&nbsp;</TD>
    <TD colspan="2">&nbsp;
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD align="left"><B>&nbsp;</B></TD>
    <TD valign="top">&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">Date:
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" style="border-bottom: 1px solid #000000">By:&nbsp;</TD>
    <TD valign="top">&nbsp;&nbsp;</TD>
    <TD colspan="2" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name:&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">&nbsp;&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title:&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">&nbsp;&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>






<P align="center" style="font-size: 10pt"><!-- Folio -->-5-<!-- /Folio -->
</DIV>



</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-12.1
<SEQUENCE>4
<FILENAME>b72632atexv12w1.htm
<DESCRIPTION>EX-12.1 STATEMENT RE: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
<TEXT>
<HTML>
<HEAD>
<TITLE>exv12w1</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">EXHIBIT 12.1
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">RATIO
OF EARNINGS TO FIXED CHARGES
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Our consolidated ratio of earnings to fixed charges for each
of the periods indicated is set forth below:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="28%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">NINE MONTHS</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="18">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">ENDED</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="18" style="border-bottom: 1px solid #000000">YEAR ENDED DECEMBER 31,</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>

<TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">SEPTEMBER 30, 2008</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">2007</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">2006</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">2005</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">2004</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">2003</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="22">(DOLLARS IN THOUSANDS)</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">FIXED CHARGES:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Interest costs</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">10,282</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">13,696</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">13,620</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">6,766</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">6,711</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">4,692</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Capitalized interest</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">260</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,558</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:45px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total fixed charges</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">10,282</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">13,696</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">13,620</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">6,766</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,971</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,250</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:45px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">EARNINGS:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">11,458</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">11,707</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">21,464</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">21,913</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">20,351</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">5,913</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Add fixed charges per above</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,282</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,696</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,620</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,766</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,971</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,250</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Less capitalized interest per
above</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(260</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,558</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total earnings, as adjusted</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">21,740</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">25,403</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">35,084</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">28,679</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">27,062</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">10,605</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:45px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">RATIO OF EARNINGS TO FIXED
CHARGES</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.11</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.85</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.58</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.24</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.88</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.70</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio --><!-- /Folio -->
</DIV>



</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31.1
<SEQUENCE>5
<FILENAME>b72632atexv31w1.htm
<DESCRIPTION>EX-31.1 SECTION 302 CERTIFICATION OF THE CEO & CFO
<TEXT>
<HTML>
<HEAD>
<TITLE>exv31w1</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Exhibit&nbsp;31.1</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U>CERTIFICATION</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">I, Edward Terino, certify that:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">1.&nbsp;I have reviewed this Quarterly Report on Form 10-Q for the quarter ended September
30, 2008 of Arlington Tankers, Ltd.;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">2.&nbsp;Based on my knowledge, this report does not contain any untrue statement of a
material fact or omit to state a material fact necessary to make the statements made, in light of
the circumstances under which such statements were made, not misleading with respect to the period
covered by this report;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">3.&nbsp;Based on my knowledge, the financial statements, and other financial information
included in this report, fairly present in all material respects the financial condition, results
of operations and cash flows of the registrant as of, and for, the periods presented in this
report;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">4.&nbsp;I am responsible for establishing and maintaining disclosure controls and
procedures (as defined in Exchange Act Rules&nbsp;13a-15(e) and 15d-15(e)) and internal control over
financial reporting (as defined in Exchange Act Rules&nbsp;13a-15(f) and 15d-15(f)) for the registrant
and have:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(a)&nbsp;Designed such disclosure controls and procedures, or caused such disclosure controls
and procedures to be designed under my supervision, to ensure that material information relating to
the registrant, including its consolidated subsidiaries, is made known to me by others within those
entities, particularly during the period in which this report is being prepared;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(b)&nbsp;Designed such internal control over financial reporting, or caused such internal
control over financial reporting to be designed under my supervision, to provide reasonable
assurance regarding the reliability of financial reporting and the preparation of financial
statements for external purposes in accordance with generally accepted accounting principles;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(c)&nbsp;Evaluated the effectiveness of the registrant&#146;s disclosure controls and procedures and
presented in this report my conclusions about the effectiveness of the disclosure controls and
procedures, as of the end of the period covered by this report based on such evaluation; and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(d)&nbsp;Disclosed in this report any change in the registrant&#146;s internal control over financial
reporting that occurred during the registrant&#146;s most recent fiscal quarter (the registrant&#146;s fourth
fiscal quarter in the case of an annual report) that has materially affected, or is reasonably
likely to materially affect, the registrant&#146;s internal control over financial reporting; and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">5.&nbsp;I have disclosed, based on my most recent evaluation of internal control over
financial reporting, to the registrant&#146;s auditors and the audit committee of the registrant&#146;s board
of directors (or persons performing the equivalent functions):
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(a)&nbsp;All significant deficiencies and material weaknesses in the design or operation of
internal control over financial reporting which are reasonably likely to adversely affect the
registrant&#146;s ability to record, process, summarize and report financial information; and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(b)&nbsp;Any fraud, whether or not material, that involves management or other employees who
have a significant role in the registrant&#146;s internal control over financial reporting.
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">Date:  November 10, 2008&nbsp;</TD>
    <TD colspan="3" style="border-bottom: 1px solid #000000" align="left">
/s/ EDWARD TERINO
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD colspan="2" align="left">Edward Terino&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD colspan="2" align="left">Chief Executive Officer and Chief Financial Officer&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-32.1
<SEQUENCE>6
<FILENAME>b72632atexv32w1.htm
<DESCRIPTION>EX-32.1 SECTION 906 CERTIFICATION OF THE CEO & CFO
<TEXT>
<HTML>
<HEAD>
<TITLE>exv32w1</TITLE>
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<DIV style="font-family: 'Times New Roman',Times,serif">


<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>

</TABLE>

<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Exhibit&nbsp;32.1</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Certificate Pursuant to 18 U.S.C. Section&nbsp;1350, As Adopted Pursuant to Section&nbsp;906 of the Sarbanes Oxley Act of 2002</B>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In connection with Arlington Tankers Ltd.&#146;s (the &#147;Company&#148;) quarterly report on Form 10-Q for the
three months ending September&nbsp;30, 2008, as filed with the Securities and Exchange Commission on the
date hereof (the &#147;Report&#148;), the undersigned, Edward Terino, Chief Executive Officer and Chief
Financial Officer, hereby certifies pursuant to 18 U.S.C. &#167; 1350, as adopted pursuant to Section
906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(1)&nbsp;The Report fully complies with the requirements of Section 13(a) or 15(d) of the
Securities Exchange Act of 1934; and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(2)&nbsp;The information contained in the Report fairly presents, in all material respects, the
financial condition and results of operations of the Company.
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">Date:  November 10, 2008&nbsp;</TD>
    <TD colspan="3" style="border-bottom: 1px solid #000000" align="left">/s/ EDWARD TERINO
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD colspan="2" align="left">Edward Terino&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD colspan="2" align="left">Chief Executive Officer and Chief
Financial Officer&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>



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