Common use of ACKNOWLEDGMENT OF DEBT; GOVERNING LAW Clause in Contracts

ACKNOWLEDGMENT OF DEBT; GOVERNING LAW. (a) The Shipowner hereby acknowledges that pursuant to its Guarantee, it is justly indebted (i) pursuant to its Guarantee to the Holders of the Notes in the principal amount of up to One Hundred Million United States Dollars (U.S. $100,000,000) and (ii) pursuant to its Working Capital Guarantee to the Working Capital Facility Provider in the principal amount of up to $7,000,000 and will pay or cause to be paid the Indebtedness hereby secured. The Shipowner will observe, perform and comply with the covenants, terms and conditions herein, express or implied, on its part to be observed, performed or complied with.