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   &lt;div align="justify" style="font-size: 12pt; margin-top: 12pt"&gt;&lt;b&gt;(3)&lt;/b&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&lt;b&gt;IMPAIRMENT CHARGE&lt;/b&gt;
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   &lt;div align="justify" style="font-size: 12pt; margin-top: 12pt"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;In March&amp;#160;2009, we notified a shipyard building three of the vessels in our new build program
   that they were in default under the construction contract. The default arose as a result of non
   performance under the terms of the contract caused by financial difficulties of the shipyard.
   Construction on these vessels has stopped and we are evaluating our remedies under the contract and
   under applicable law. We determined that we had a material impairment and recognized a charge of
   $46.2&amp;#160;million in the first quarter of 2009 pertaining to the construction in progress related to
   this contract. That charge represented the full amount of our investment in these vessels. The
   shipyard building the three vessels is in chapter 11 bankruptcy proceedings.
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      <ElementReferences>Reference 1: http://www.xbrl.org/2003/role/presentationRef
 -Publisher FASB
 -Name Statement of Financial Accounting Standard (FAS)
 -Number 144
 -Paragraph 26

Reference 2: http://www.xbrl.org/2003/role/presentationRef
 -Publisher SEC
 -Name Staff Accounting Bulletin (SAB)
 -Number Topic 5
 -Section CC
 -Subsection 3

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