# EDGAR Filing Document

**Accession Number:** 0001043186
**File Stem:** 0001437749-26-007090
**Filing Date:** 2026-3
**Character Count:** 760323
**Document Hash:** 6e0302715f9368e6db0a9d36084ed78f
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001437749-26-007090.hdr.sgml**: 20260305

**ACCESSION NUMBER**: 0001437749-26-007090

**CONFORMED SUBMISSION TYPE**: 10-K

**PUBLIC DOCUMENT COUNT**: 104

**CONFORMED PERIOD OF REPORT**: 20251231

**FILED AS OF DATE**: 20260305

**DATE AS OF CHANGE**: 20260305

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Stabilis Solutions, Inc.
- **CENTRAL INDEX KEY:** 0001043186
- **STANDARD INDUSTRIAL CLASSIFICATION:** NATURAL GAS DISTRIBUTION [4924]
- **ORGANIZATION NAME:** 01 Energy & Transportation
- **EIN:** 593410234
- **STATE OF INCORPORATION:** FL
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-40364
- **FILM NUMBER:** 26727349

**BUSINESS ADDRESS:**
- **STREET 1:** 11750 KATY FREEWAY
- **STREET 2:** SUITE 900
- **CITY:** HOUSTON
- **STATE:** TX
- **ZIP:** 77079
- **BUSINESS PHONE:** 8324566500

**MAIL ADDRESS:**
- **STREET 1:** 11750 KATY FREEWAY
- **STREET 2:** SUITE 900
- **CITY:** HOUSTON
- **STATE:** TX
- **ZIP:** 77079

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Stabilis Energy, Inc.
- **DATE OF NAME CHANGE:** 20190724

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** American Electric Technologies Inc
- **DATE OF NAME CHANGE:** 20070516

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** AMERICAN ACCESS TECHNOLOGIES INC
- **DATE OF NAME CHANGE:** 19971117

?xml version='1.0' encoding='ASCII'? slng20251231_10k.htm

[**Table of Contents**](#toc)

------

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

------

**FORM 10-K**

------

☒ **ANNUAL REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**For the Fiscal Year Ended December 31, 2025**

**or**

☐ **TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**For the transition period from to**

**Commission file number 001-40364**

------

![pic1.jpg](pic1.jpg)

**STABILIS SOLUTIONS, INC.**

**(Exact name of registrant as specified in its charter)**

------

---

| | |
|:---|:---|
| **Florida** | **59-3410234** |
| **(State or other jurisdiction of incorporation or organization)** | **(I.R.S. Employer Identification No.)** |

---

**11750 Katy Freeway, Suite 900, Houston, TX 77079**

**(Address of principal executive offices, including zip code)**

**(832) 456-6500**

**(Registrant**'**s telephone number, including area code)**

**Securities registered pursuant to Section 12(b) of the Act:**

---

| | | |
|:---|:---|:---|
| **Title of each class** | **Trading Symbol** | **Name of each exchange on which registered** |
| Common Stock, $.001 par value | SLNG | The Nasdaq Stock Market LLC |

---

**Securities registered pursuant to Section 12(g) of the Act: None**

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☐ No ☒

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Act. Yes ☐ No ☒

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.&nbsp;&nbsp;&nbsp;&nbsp;Yes ☒&nbsp;&nbsp;&nbsp;&nbsp;No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§. 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).&nbsp;&nbsp;&nbsp;&nbsp;Yes ☒&nbsp;&nbsp;&nbsp;&nbsp;No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Act:

---

| | | | |
|:---|:---|:---|:---|
| Large accelerated filer | ☐ | Accelerated filer | ☐ |
| Non-accelerated filer | ☒ | Smaller reporting company | ☒ |
|  |  | Emerging growth company | ☐ |

---

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐&nbsp;&nbsp;&nbsp;&nbsp;

Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☐

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant's executive oﬃcers during the relevant recovery period pursuant to §240.10D-1(b). ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).&nbsp;&nbsp;&nbsp;&nbsp;Yes ☐&nbsp;&nbsp;&nbsp;&nbsp;No ☒

The aggregate market value of the registrant's common stock held by non-affiliates of the registrant on June 30, 2025 was $24,699,074 based on the closing sale price, as reported by The Nasdaq Stock Market LLC.

As of March 2, 2026, there were 18,596,301 outstanding shares of our common stock, par value $.001 per share.

Documents Incorporated by Reference: None

------

[**Table of Contents**](#toc)

STABILIS SOLUTIONS, INC. AND SUBSIDIARIES

ANNUAL REPORT ON FORM 10-K

For the Fiscal Year Ended December 31, 2025

**TABLE OF CONTENTS**

---

| | | |
|:---|:---|:---|
| | | Page |
| [Cautionary Statement Regarding Forward-Looking Statements](#cautionary) | [Cautionary Statement Regarding Forward-Looking Statements](#cautionary) | [3](#cautionary) |
| [Part I.](#part1) | [Part I.](#part1) | [Part I.](#part1) |
| Item 1. | [Business](#item1) | [4](#item1) |
| Item 1A. | [Risk Factors](#item1a) | [10](#item1a) |
| Item 1B. | [Unresolved Staff Comments](#item1b) | [23](#item1b) |
| Item 1C. | [Cybersecurity](#item1c) | [23](#item1c) |
| Item 2. | [Properties](#item2) | [23](#item2) |
| Item 3. | [Legal Proceedings](#item3) | [23](#item3) |
| Item 4. | [Mine Safety Disclosures](#item4) | [23](#item4) |
| [Part II.](#part2) | [Part II.](#part2) | [Part II.](#part2) |
| Item 5. | [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](#item5) | [24](#item5) |
| Item 6. | [Reserved](#item6) | [24](#item6) |
| Item 7. | [Management's Discussion and Analysis of Financial Condition and Results of Operations](#item7) | [25](#item7) |
| Item 7A. | [Quantitative and Qualitative Disclosures about Market Risk](#item7a) | [35](#item7a) |
| Item 8. | [Financial Statements and Supplementary Data](#item8) | [36](#item8) |
| Item 9. | [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](#item9) | [61](#item9) |
| Item 9A. | [Controls and Procedures](#item9a) | [61](#item9a) |
| Item 9B. | [Other Information](#item9b) | [61](#item9b) |
| Item 9C. | [Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](#item9c) | [61](#item9c) |
| [Part III.](#part3) | [Part III.](#part3) | [Part III.](#part3) |
| Item 10. | [Directors, Executive Officers and Corporate Governance](#item10) | [62](#item10) |
| Item 11. | [Executive Compensation](#item11) | [64](#item11) |
| Item 12. | [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](#item12) | [68](#item12) |
| Item 13. | [Certain Relationships and Related Transactions and Director Independence](#item13) | [69](#item13) |
| Item 14. | [Principal Accountant Fees and Services](#item14) | [70](#item14) |
| [Part IV.](#part4) | [Part IV.](#part4) | [Part IV.](#part4) |
| Item 15. | [Exhibits and Financial Statement Schedules](#item15) | [71](#item15) |
| Item 16. | [Form 10-K Summary](#item16) | [71](#item16) |
| [Signatures](#sigs) | [Signatures](#sigs) | [73](#sigs) |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2

------

[**Table of Contents**](#toc)

**CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS**

This document includes statements that constitute forward-looking statements within the meaning of the federal securities laws. Forward-looking statements represent intentions, plans, expectations, assumptions and beliefs about future events and are subject to risks and uncertainties and other factors. These statements may relate to, but are not limited to, information or assumptions about us, our capital and other expenditures, dividends, financing plans, capital structure, cash flow, pending legal and regulatory proceedings and claims, including environmental matters, future economic performance, operating income, cost savings, and management's plans, strategies, goals and objectives for future operations and growth. These forward-looking statements generally are accompanied by words such as "intend," "anticipate," "believe," "estimate," "expect," "should," "seek," "project," "plan" or similar expressions. Any statement that is not a historical fact is a forward-looking statement. It should be understood that these forward-looking statements are necessary estimates reflecting the best judgment of senior management, not guarantees of future performance. Many of the factors that impact forward-looking statements are outside of our control and could cause actual results to differ materially from the results expressed or implied by those forward-looking statements. When considering forward-looking statements, you should keep in mind the risk factors as further described in Part I. "Item 1A. Risk Factors" in this document.

We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws. All forward-looking statements included in this document are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. This cautionary statement should also be considered in connection with any subsequent written or oral forward-looking statements that we or persons acting on our behalf may issue.

In this Annual Report on Form 10-K, we may rely on and refer to information from market research reports, analyst reports and other publicly available information. Although we believe that this information is reliable, we cannot guarantee the accuracy and completeness of this information, and we have not independently verified it.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3

------

[**Table of Contents**](#toc)

**PART I**

**ITEM 1. BUSINESS**

**OVERVIEW**

***Our Company***

Stabilis Solutions, Inc. and its subsidiaries (the "Company", "Stabilis", "our", "us" or "we") provide turnkey clean energy production, storage, transportation and fueling solutions using liquefied natural gas ("LNG") to multiple end markets. We have safely delivered over 580 million gallons of LNG through more than 60,000 truck deliveries during our 22 year operating history, which we believe makes us one of the largest and most experienced small-scale LNG providers in North America. We define "small-scale" LNG production to include liquefiers that produce less than 1.7 million LNG gallons per day (or approximately 1.0 million tonnes per annum ("MTPA")) and "small-scale" LNG distribution to include distribution by trailer or tank container of up to 10,000 LNG gallons or by marine vessels that carry less than 8.0 million LNG gallons (approximately 30,000 cubic meters). The Company provides LNG solutions to customers in diverse end markets, including aerospace, agriculture, industrial, marine bunkering, mining, oil and gas, pipeline, remote power and utility markets.

The Company also builds power and control systems for the energy industry in China through its 40% owned Chinese joint venture, BOMAY Electric Industries, Inc ("BOMAY"). BOMAY is accounted for under the equity method of accounting.

***Our Industry***

LNG can be used to replace a variety of alternative fuels, including distillate fuel oil and propane, among others, to provide environmental and economic benefits. LNG can also be used to deliver natural gas to locations where pipeline service is unavailable, has been interrupted, or needs to be supplemented. Increasingly, LNG is being utilized as a transportation fuel in the marine industry and as a propellant in the private rocket launch sector. Additionally, LNG can be used to generate electrical power for data centers where the data center either does not have adequate access to the electrical grid, or a gas pipeline or to provide a redundant source of power. We believe that these fuel markets are large and provide significant opportunities for LNG usage.

We believe that LNG provides an important balance between environmental sustainability, security and accessibility, and economic viability when compared to both renewables and other traditional hydrocarbon-based fuels and will play a key role in the energy transition.

**OUR BUSINESS**

The Company generates revenue by selling and delivering LNG to our customers, renting cryogenic equipment and providing engineering and field support services. We sell our products and services separately or as a bundle depending on the customer's needs. Pricing depends on market pricing for natural gas and competing fuel sources (such as diesel, fuel oil, and propane among others), as well as the customer's purchased volume, contract duration and credit profile.

*LNG Production and Sales*—Stabilis builds and operates cryogenic natural gas processing facilities, called "liquefiers," which convert natural gas into LNG through a purification and multiple stage cooling process. We currently own and operate a liquefier that can produce up to 100,000 LNG gallons per day in George West, Texas and a liquefier that can produce up to 30,000 LNG gallons per day in Port Allen, Louisiana. We are developing a proposed waterfront LNG liquefaction facility along the Texas Gulf Coast which is expected to be a 350,000 gallon-per-day facility, increasing the Company's liquefaction capacity to 480,000 gallons per day. This liquefaction facility will be strategically located in Galveston, Texas to serve cruise vessel customers and additional marine end markets such as container ships, car carriers, tankers and bulk carriers in the Port of Galveston, Port of Houston and surrounding Gulf Coast markets.

We also purchase LNG from third-party production sources, which allows us to support customers in markets where we do not own liquefiers. We make the determination of LNG supply sources based on the cost of LNG, the transportation cost to deliver to regional customer locations, and the reliability of the supply source. Revenues earned from the production and sales of LNG are included within LNG Product revenue.

*Transportation and Logistics Services*—Stabilis offers our customers a "virtual natural gas pipeline" by providing turnkey LNG transportation and logistics services in North America. We deliver LNG to our customers' work sites from both our own production facilities and our network of approximately 31 third-party production sources located throughout North America. We own a fleet of cryogenic trailers to transport and deliver LNG. We also outsource similar equipment and transportation services for LNG from qualified third-party providers as required to support our customer base. Revenues earned from the transportation and logistical services of LNG to our customers are included within LNG Product revenue.

*Cryogenic Equipment Rental*—Stabilis operates a fleet of over 170 mobile LNG storage and vaporization assets, including: transportation trailers, electric and gas-fired vaporizers, ambient vaporizers, storage tanks, and mobile vehicle fuelers. We also own several stationary storage and regasification assets. We believe this is one of the largest fleets of small-scale LNG equipment in North America. Our fleet consists primarily of trailer-mounted mobile assets, making delivery to and between customer locations more efficient. We deploy these assets on job sites to provide our customers with the equipment required to transport, store, and consume LNG in their operations. Revenues earned from cryogenic equipment rental are included within Rental revenue.

*Engineering and Field Support Services*—Stabilis has experience in the safe, cost effective, and reliable use of LNG in multiple customer applications. We have also developed many processes and procedures that we believe improve our customers' use of LNG in their operations. Our engineers help our customers design and integrate LNG into their operations and our field service technicians help our customers mobilize, commission and reliably operate on the job site. Revenues earned from engineering and field support services are included within Service revenue.

Stabilis believes that our extensive operating experience positions us to be a leader in the North American small-scale LNG markets. We plan to leverage this experience to grow our business by investing in new production and distribution assets throughout North America.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4

------

[**Table of Contents**](#toc)

***Market for Small-Scale LNG in North America***

LNG can serve as a partner fuel for renewable energy sources and provides an important balance between environmental sustainability, security and access, and economic viability as a source of fuel. LNG can also be used to deliver natural gas to locations where pipeline service is unavailable, has been interrupted, or needs to be supplemented and to replace a variety of other carbon-based fuels. We believe that the current and future markets for LNG are significant and will continue to grow for a number of years. We believe the following expanding markets could drive significant small-scale LNG market growth in North America over the next decade: 

*Marine Bunkering:* There is limited LNG bunkering infrastructure currently available in North America. The marine industry is expected to drive additional demand for domestically produced LNG in the coming years. The International Maritime Organization ("IMO") has imposed a global sulfur cap of 0.5% on ships trading outside of established emission control areas starting in January 2020, a level that could be difficult to achieve using common marine fuels, such as heavy fuel oil, but could be achieved using LNG. Increasingly, more stringent global carbon emission targets are also fueling the adoption of LNG as a marine fuel. Large marine vessels, such as cruise ships and container ships, can take between several hundred thousand gallons up to several million gallons of LNG in a single fuel bunkering event. The Company expects that additional marine bunkering opportunities will become available as newly constructed marine vessels that use LNG as the primary fuel of choice are delivered to vessel fleets and commence routine operations in North America. At December 31, 2025, there were 851 LNG fueled marine vessels in the global fleet with 670 more new build vessels on order for delivery by 2033, a 79% increase in the number of LNG fueled vessels by 2033. New build container ships represent the largest sector with 411 vessels on order by 2033.

During 2025, the Company executed two, ten-year LNG supply bunkering agreements with cruise vessel operators to supply LNG beginning in 2027 to anchor development of a proposed new 350,000 gallon-per-day, waterfront LNG liquefaction facility in Galveston, Texas (the "Galveston LNG liquefaction facility"). Conditions precedent to the LNG supply bunkering agreements include the Company successfully finalizing project financing by the first quarter 2026 and completing construction of the above Galveston LNG liquefaction facility by the second quarter 2028. With the construction of the facility, the Company also plans to commission a dedicated Jones Act-compliant LNG bunkering vessel to serve the Port of Galveston to transport LNG from the facility directly to customer vessels. Together, the proposed Galveston LNG liquefaction facility and new marine bunkering vessel are expected to create a fully integrated, last-mile LNG delivery solution to customers for years to come. The new facility will be strategically located to serve cruise vessel customers as well as additional marine end markets such as container ships, car carriers, tankers, and bulk carriers in the Port of Galveston, Port of Houston, and surrounding Gulf Coast markets. The Company continues to advance its proposed Galveston liquefaction facility along with a Jones Act-compliant LNG bunkering vessel toward an expected Final Investment Decision ("FID"). The Company has secured customer commitments for approximately 56% of the project's proposed 350,000 gallons-per-day ("gpd") capacity and is engaged in late-stage discussions with multiple potential customers to secure the remaining available offtake. The total capital required for the project is estimated at $350 million to $400 million. Financing for the project is progressing with counterparties conducting detailed due diligence and active negotiations on definitive documentation and key commercial terms. Upon completion, the proposed Galveston LNG liquefaction facility is anticipated to increase Stabilis' liquefaction capacity from 130,000 gallons per day to 480,000 gallons per day.

*Aerospace / Rocket Propulsion:* LNG is increasingly becoming the fuel of choice for reusable rocket propulsion systems due to its higher energy density, safety, and ease and cost to produce. The Company continues to service aerospace customers with two new aerospace customers added in 2025. The commercial satellite industry is expected to drive a significant increase in launches and demand for LNG to support this growth.

*Remote Power Generation including Data Centers:* Data centers require a significant amount of electrical power and redundancy in their power systems including the ability to self generate power when the electrical grid is unable to deliver the power needed in a timely manner. The Company believes that LNG offers speed to market and the ability to store significant volumes of natural gas in the event the data center is unable to access the electrical grid or natural gas delivered by a pipeline. The data center market is expected to drive a significant increase in the demand for multi-year remote power generation. In February 2026, the Company executed a multi-year take-or-pay contract to supply LNG for behind-the-meter power generation for a provider of remote and temporary power generation and energy services at a data center. LNG deliveries are expected to commence during the first quarter of 2027 and continue through the first quarter of 2029. Total revenue under the initial term of the contract is estimated to be approximately $200 million. This contract represents the Company's first contract in support of data center behind-the-meter power generation, consistent with its strategic focus on growing, high-value vertical markets.

***Other Beneficial Attributes that Should Continue to Increase the Market for LNG***

*Lower Emissions than Alternative Fossil Fuels.* Natural gas contains less carbon than most other fossil fuels and, as a result, produces fewer carbon dioxide emissions when burned. The National Energy Technology Laboratory indicates that new natural gas power plants emit between 50% and 60% less carbon dioxide compared with emissions from a typical coal plant. The Argonne National Laboratory indicates that natural gas vehicles produce between 13% and 21% fewer greenhouse gas emissions than comparable gasoline and diesel fueled vehicles. Additional studies indicate that natural gas also produces lower particulate matter and sulfur emissions than other fossil fuels. We believe the relative environmental benefits of natural gas as a fuel are becoming increasingly important as our customers expand their corporate sustainability mandates to lower greenhouse gas emissions and increase decarbonization initiatives.

*LNG Remains Less Expensive than Other Traditional Fuels.* The cost of natural gas compared to other energy sources is a significant driver for the future demand for natural gas and LNG. Technological advances in natural gas production have unlocked significant new gas reserves in North America. We believe that these proven, abundant and growing reserves of natural gas have the potential to produce among the highest volumes of natural gas in the world. This abundant supply of natural gas has supported relatively low natural gas prices in North America. The cost of natural gas in the United States and Canada currently is less than the cost of crude oil on an energy equivalent basis. In addition, because the price of the natural gas commodity makes up a smaller portion of the total cost of LNG relative to the commodity portion of competing fuels, the price of LNG is less sensitive to variations in the underlying commodity cost. These factors have made LNG more economical than competing fuel sources, and we believe that LNG will maintain this cost advantage into the foreseeable future.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5

------

[**Table of Contents**](#toc)

The following chart illustrates the lower cost and decreased price sensitivity of LNG compared to propane and diesel, by comparing the historical wholesale price of Propane, Ultra-Low No. 2 Diesel, Indicative Liquefied Natural Gas and Natural Gas (Henry Hub).

**ULSD, Propane & LNG pricing- December 31, 2015 to December 31, 2025**

![screenshot2026-0206b.jpg](screenshot2026-0206b.jpg)

*Better Safety than Alternative Fuels.* The physical characteristics of LNG make it a safer and more environmentally friendly fuel when compared to diesel and propane because it boils and dissipates rapidly into the air when spilled instead of pooling on or near the ground. If released, LNG is also less combustible than diesel and propane because it ignites at relatively high temperatures and within a narrow flammability range when mixed with air. In addition, LNG fuel tanks and systems used in natural gas applications are subjected to a number of required federal and state safety tests, such as fire, environmental hazard, burst pressure and crash testing that enhance their safety.

*Established LNG Production and Distribution Technology.* Small-scale LNG production and distribution technologies have been proven and are now widely available from multiple vendors. Small-scale liquefiers are available in modular formats from several vendors and many of them have established track records of reliable and safe operating performance. LNG transport trailers, storage vessels, and vaporization equipment are also available from multiple vendors, and most of this equipment also comes with an established operating track record. We believe that the availability of proven small-scale LNG production and distribution technologies reduces the technology risk in growing the industry, but it also places a premium on the owner's or operator's construction and operating capabilities.

**Our Customers**

Stabilis serves customers in a variety of end markets, including aerospace, agriculture, industrial, marine bunkering, mining, oil and gas, pipeline, remote power and utility markets within North America. We believe these customer markets are well suited to use LNG because they consume relatively high volumes of fuel, operate in mobile, temporary or off-pipeline locations, have limited access to alternative fuel sources, and/or are facing increasingly stringent emissions or other environmental requirements. We currently serve approximately 20 customers. For the year ended December 31, 2025, Carnival Corporation, Aggreko Plc and Space Exploration Technologies Corp each accounted for more than 10% of our revenues. During such period, no other purchaser accounted for 10% or more of our revenue.

*Aerospace / Rocket Propulsion.* The Aerospace industry utilizes LNG as a propellant for rocket propulsion systems and LNG provides an economical, clean burning, and easily stored fuel for rocket engines. Aerospace firms may also utilize LNG for power generation at remote facilities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6

------

[**Table of Contents**](#toc)

*Agriculture.* The Agriculture industry utilizes LNG to power high horsepower engines, greenhouses and also for agricultural dryers for generating heat as LNG has a clean and consistent burn that makes heating operations more predictable.

*Oil and Gas.* Oil and Gas producers use high horsepower engines and turbines to power their drilling and pressure pumping operations. LNG displaces some of the total diesel fuel consumption in these applications using dual-fuel engine technology. We believe that oil and gas producers can use LNG to reduce fuel costs and to meet environmental emissions requirements.

*Industrial.* Industrial applications for LNG include sand and aggregate producers, asphalt plants, food processers, paper mills, and general manufacturing facilities. LNG often replaces propane, fuel oil, or diesel fuel in these applications. These customers often cannot justify the cost of new pipeline infrastructure and using LNG requires minimal up-front costs, regulatory approvals, and lead times. We believe LNG is optimal for these applications because it is cost-effective with stable pricing, offers consistent supply without curtailments, provides an energy density that minimizes storage requirements, and has a clean and consistent burn that makes heating operations more predictable.

*Marine Bunkering of LNG*. Vessels such as container ships, tankers and cruise ships increasingly use LNG as a fuel source. Using LNG allows vessel operators to meet strict emission requirements that are better achieved using LNG instead of using common marine fuels, such as heavy fuel oil. Large marine vessels such as container ships can take several hundred thousand gallons of LNG in a single fuel bunkering event. During the fourth quarter of 2025, the Company concluded a multi-year customer LNG supply bunkering contract in accordance with its terms. The completed contract was for truck-to-vessel LNG marine bunkering services in Galveston, Texas. The marine customer did not extend the agreement due to the unavailability of a suitable Jones Act-compliant LNG bunkering vessel during the contemplated extension period. The contract accounted for approximately 32% of 2025 revenues.

The Company is working to replace this contract and has executed two, ten-year LNG supply bunkering agreements with cruise vessel operators to supply LNG beginning in 2027 and to anchor development of a proposed new 350,000 gallon-per-day, waterfront LNG liquefaction facility in Galveston, Texas (the "Galveston LNG liquefaction facility"). Conditions precedent to the LNG supply bunkering agreements include the Company successfully finalizing project financing by the first quarter 2026 and completing construction of the above proposed Galveston LNG liquefaction facility by the second quarter 2028. With the construction of the facility, the Company also plans to commission a dedicated Jones Act-compliant LNG bunkering vessel to serve the Port of Galveston to transport LNG from the facility directly to customer vessels. Together, the proposed Galveston LNG liquefaction facility and new bunkering vessel are expected to create a fully integrated, last-mile LNG delivery solution for customers for years to come. The new facility will be strategically located to serve cruise vessel customers as well as additional marine end markets such as container ships, car carriers, tankers, and bulk carriers in the Port of Galveston, Port of Houston, and surrounding Gulf Coast markets. The Company continues to advance its proposed Galveston liquefaction facility, along with a Jones Act-compliant LNG bunkering vessel, toward an expected FID. The Company has secured customer commitments for approximately 56% of the project's proposed 350,000 gallons-per-day ("gpd") capacity and is engaged in late-stage discussions with multiple potential customers to secure the remaining available offtake. The total capital required for the project is estimated at $350 million to $400 million. Financing for the project is progressing with counterparties conducting detailed due diligence and active negotiations on definitive documentation and key commercial terms. Upon completion, the proposed Galveston LNG liquefaction facility is anticipated to increase Stabilis' liquefaction capacity from 130,000 gallons per day to 480,000 gallons per day.

*Mining*. Mines, including those producing metals, rare earth materials, and coal, are often located in remote locations that are off the electrical grid and do not have natural gas pipeline access. Mines use LNG to fuel electrical generators and to produce heat for their processing activities. Mines also use LNG as a fuel for their mine trucks and other high horsepower engine equipment. In addition to fuel cost benefits, LNG can help reduce emissions at mines that are often located in environmentally sensitive areas.

*Pipeline and Utilities*. LNG usage in utility and pipeline applications varies by project type. North America has an expansive network of pipelines that, based on age and increasingly more stringent regulations, require routine testing and maintenance. During such events LNG fueling solutions can provide flow assurance to address natural gas supply interruptions during pipeline hydrostatic testing, repairs, gas distribution system curtailments, or unplanned outages. Such solutions can also provide a bridge for large industrial or utility customers before permanent pipelines are installed.

*Remote Power including for Data Centers*. Data centers require a significant amount of electrical power and redundancy including the ability to self generate power when the electrical grid is unable to deliver the power needed in a timely manner. LNG can provide rapid deployable clean distributed power when access to an electrical grid is limited, additional power is needed during times of peak load, delays in construction of infrastructure, or power infrastructure is damaged due to storms such as hurricanes or wildfires. During the fourth quarter of 2025, the Company concluded a multi-year contract for temporary remote power in Louisiana in accordance with its terms. The contract accounted for approximately 19% of 2025 revenues. However, in February 2026 the Company executed a multi-year take-or-pay contract to supply LNG for behind-the-meter power generation for a world-leading provider of remote and temporary power generation and energy services at a data center. LNG deliveries are expected to commence during the first quarter of 2027 and continue through the first quarter of 2029. Total revenue under the initial multi-year term of the contract is estimated to be approximately $200 million. This contract represents the Company's first contract in support of data center behind-the-meter power generation, consistent with its strategic focus on growing, high-value vertical markets.

*China.* Through our 40% interest in BOMAY, we provide power and control systems for the energy market in China.

**Competitive Strengths**

Stabilis believes that we are well positioned to execute our business strategies based on the following competitive strengths:

*LNG is an economically and environmentally attractive product.* Stabilis believes that many of our customers use LNG because it can significantly reduce harmful carbon dioxide, nitrogen oxide, sulfur, particulate matter, and other emissions as compared to other hydrocarbon-based fuels. We also believe that the combination of cost and environmental benefits makes LNG a compelling fuel source for many energy consumers. We believe that LNG can be delivered to customers at prices that are lower and more stable than what they would pay for distillate fuels or propane. In addition, LNG as a fuel may decrease operating costs by reducing equipment maintenance requirements and providing more consistent burn characteristics. U.S. natural gas supplies are price advantaged and face less price volatility versus natural gas from outside the U.S.

*Demonstrated ability to execute LNG projects safely and cost effectively.* Stabilis has produced and delivered over 580 million gallons of LNG to our customers throughout our 22-year operating history. Our experience includes building and operating LNG production facilities, delivering LNG from third-party sources to our customers, and designing and executing a wide-variety of turnkey LNG fueling solutions for our customers using our cryogenic equipment fleet supported by our engineers and field service teams. We have experience serving customers in multiple end markets including aerospace, agriculture, industrial, marine bunkering, mining, oil and gas, pipeline, remote power and utilities. We also have experience exporting LNG to Mexico, Canada and Europe. Finally, we believe our team is among the most experienced in the small-scale LNG industry. We believe that we can leverage this proven LNG execution experience to grow our business in existing markets and expand our business into new markets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7

------

[**Table of Contents**](#toc)

*Comprehensive provider of* "*virtual natural gas pipeline*" *solutions throughout North America.* Stabilis offers our customers a comprehensive off-pipeline natural gas solution by providing the supply infrastructure, transportation and logistics, and field service support necessary to deliver LNG in a program that is tailored to their consumption needs. We believe we own one of the largest fleets of small-scale cryogenic transportation, storage, and vaporization equipment in North America. We can provide our customers LNG and related services for a wide variety of applications almost anywhere in the United States, Canada and Mexico. We believe that our ability to be a "one stop shop" for all of our customers' off-pipeline natural gas requirements throughout North America is unique among LNG providers.

*Ability to leverage existing LNG production and delivery capabilities into new markets.* Stabilis believes that our experience producing and distributing LNG can be leveraged to grow into new geographic and service end markets. Since our founding we have expanded our service area across the United States, northern Mexico, and western Canada. We have also expanded our industry coverage to include multiple new end markets and customers. We accomplished this expansion into new markets by leveraging our LNG production and distribution expertise, in combination with our cryogenic engineering and project development capabilities, to meet new customer needs.

**Competition**

The market for LNG is highly competitive and we have multiple competitors for fuel. Stabilis believes the biggest competition for LNG in many applications is distillate fuels, such as diesel and marine gas oil, and propane as they power the majority of engines and generators in our target markets. We also compete with other fuel sources including pipeline natural gas and compressed natural gas ("CNG").

Stabilis competes with other natural gas companies, as well as other fossil fuel sources, based on a variety of factors, including, among others, cost, supply, availability, quality, emissions, and safety of the fuel. Location is often a primary competitive factor as transportation costs limit the distance LNG can be transported at competitive prices. We believe we compare favorably with many of our competitors on the basis of these factors. However, some of our competitors have longer operating histories and market-based experience, larger customer bases, more expansive brand recognition, deeper market penetration and substantially greater financial, marketing and other resources than our business. As a result, they may be able to respond more quickly to changes in customer preferences, legal requirements or other industry or regulatory trends, devote greater resources to the development, promotion and sale of their products, adopt more aggressive pricing policies, dedicate more effort to infrastructure and systems development in support of their business or product development activities and exert more influence on the regulatory landscape that impacts the natural gas fuel market. Additionally, utilities and their affiliates typically have unique competitive advantages, including a lower cost of capital, substantial and predictable cash flows, long-standing customer relationships, greater brand awareness, and large sales and marketing organizations.

Within Stabilis' predominately land-based commercial and industrial (C&I) markets, Stabilis does not believe that we compete with mid-scale and world-scale LNG liquefiers that produce more than 1,700,000 gallons per day (approximately 2,700 tonnes per day or 1.0 MTPA). These large LNG production facilities typically are designed and permitted to fill large marine vessels that deliver cargos of 26.5 million gallons (approximately 42,200 tonnes) of LNG or more to large import terminals in foreign markets. We do not believe that any of them currently have or plan to have truck loading facilities that would be required to supply LNG to small-scale LNG customers.

**Sales and Marketing**

Stabilis markets our products and services primarily through our direct sales force, which includes sales representatives covering all of our major geographic and customer vertical markets, as well as attendance at trade shows and participation in industry conferences and events. Our technical, sales and marketing teams also work closely with federal, state and local government agencies to provide education about the value of natural gas as a fuel and to keep abreast of proposed and newly adopted regulations that affect our industry.

**Seasonality**

We did not experience significant seasonal variations in volume of LNG delivered to our customers during 2025, and we do not expect future volumes to be significantly impacted by seasonal variations. However, our revenues are susceptible to variations due to changes in the price of natural gas. The price of natural gas can fluctuate at any time during the year due to isolated factors, but on average, natural gas prices tend to be higher in peak winter and peak summer months when heating and cooling demand is seasonally higher.

**Government Regulation and Environmental Matters**

Stabilis is subject to a variety of federal, international, state, provincial and local laws and regulations relating to the environment, health and safety, labor and employment, building codes and construction, zoning and land use, public reporting and taxation, among others. Any changes to existing laws or regulations, the adoption of new laws or regulations, or failure by us to comply with applicable laws or regulations could result in significant additional expense to us or our customers or a variety of administrative, civil and criminal enforcement measures, any of which could have a material adverse effect on our business, reputation, financial condition and results of operations. Regulations that significantly affect our operating activities are described below. We cannot estimate the costs that may be required for us to comply with potential new laws or changes to existing laws, and these unknown costs are not contemplated by our existing customer agreements or our budgets and cost estimates. We believe that we are in compliance with all environmental and other governmental regulations. Compliance with these regulations has not had a material effect on our capital expenditures, earnings or competitive position to date, but new laws or regulations or amendments to existing laws or regulations to make them more stringent could have such an effect in the future.

*Construction and Operation of LNG Liquefaction Plants.* To build and operate LNG liquefaction plants, Stabilis must apply for facility permits or licenses that address many factors, including building codes, storm water and wastewater discharges, waste handling, and air emissions related to production activities and equipment operation. The construction of LNG plants must also be approved by local planning boards and fire departments.

*Transportation of LNG.* International, federal and state safety standards require that LNG is moved by qualified drivers in cryogenic containers designed for LNG transportation. Drivers are subject to U.S. Department of Transportation ("USDOT") regulations, such as Federal Motor Carrier Safety Administration ("FMCSA"), Hazardous Materials Regulations, and state certification requirements, such as certifications by the Alternative Energy Division of the Railroad Commission of Texas. Cryogenic containers have to undergo annual USDOT visual inspections and periodic pressure tests. Motor vehicles equipped with an LNG container or other motor vehicles used principally for transporting LNG in portable containers in Texas have to be registered with the Railroad Commission of Texas. The U.S. Coast Guard exercises regulatory authority over waterfront facilities that handle LNG and oversees LNG-related bunkering and vessel fuel transfers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 8

------

[**Table of Contents**](#toc)

*Transfer of LNG.* Transfer of LNG occurs between transport trailers, permanent and temporary facilities as well as marine facilities and vessels. Marine transfers can occur on the shore side to or from a vessel or from vessel to vessel. International, Federal, State and local safety standards and operational regulations require the transfer of LNG to be conducted in accordance with specific written safety standards and operational procedures. These procedures require that trained, qualified personnel be in attendance and manage all transfer operations.

*Storage and Vaporization of LNG at Customer Sites.* To install and operate both temporary and permanent storage and vaporization equipment, Stabilis may apply for permits or licenses that address many factors, including waste handling and air emissions related to onsite storage and equipment operation or consult with customers so they may apply for needed permits. The operation and siting of storage and vaporization of LNG may also require approval by local planning boards and fire departments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Import & Export of LNG.* In the third quarter of 2022, Stabilis received authorization from the DOE to export domestically produced LNG to all free trade ("FTA") and non-free trade ("non-FTA") countries, for up to 51.75 billion cubic feet per year (or approximately 1.0 MTPA) of natural gas equivalent. The authorization is for shipments of LNG for a term of 28 years with approximately 25 years remaining under this authorization. In the third quarter of 2024, the Company met the initial time requirement to initiate exports to non-FTA countries. In 2024, we delivered LNG to Europe under this authorization. For exports to FTA countries, the Company has five years from the date it received the authorization with which to initiate exportation of LNG.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The DOE authorization received during the third quarter of 2022 supplements the Company's other existing import and export license from the DOE. Under this license, the Company is authorized to import and export LNG from and to Canada and Mexico, via truck. Additionally, effective September 2024, the Company can import LNG, by vessel, from various international sources to any LNG import terminal in the United States. This authorization extends through September 4, 2026. In 2024, we delivered LNG, via truck, to Mexico under this authorization.

**Human Capital Resources**

Stabilis believes that one of its key assets is the collective expertise, experience and diversity of its workforce. The Company depends on all of its employees, including its executive officers and senior management, to successfully operate its businesses and to successfully execute its strategy going forward. As of December 31, 2025, Stabilis had 85 employees, all of whom were full-time employees. We believe our relations with employees are satisfactory. None of our employees are currently subject to a collective bargaining agreement.

Stabilis seeks to attract and retain its employees by offering competitive compensation packages including base and incentive compensation, attractive benefits and opportunities for advancement and rewarding careers. The Company periodically reviews and adjusts, if needed, its employees' compensation to ensure that it is competitive within the industry and is consistent with their level of performance. Stabilis considers employee benefits to be an important part of employee total compensation. For this reason, the Company's benefits include insurance programs for medical, dental, vision, short- and long-term disability, accidental death and disability, and accident, as well as a 401(k) contribution retirement plan. The Company's ability to attract employees is also significantly influenced by our efforts to create a culture of opportunity, personal growth, respect, collaboration and an appreciation of the diverse backgrounds, skills, and contributions that its employees offer.

Stabilis strives to provide its people with all of the tools and support necessary for them to succeed and safely perform their duties. The safety of its employees, contractors, customers and communities is paramount to the Company's success. To ensure safe, reliable and efficient operations in a highly regulated environment, the Company supports and utilizes various employee training, educational programs as well as safety programs with detailed safety and health related procedures that all employees are required to follow.

**Intellectual Property**

The intellectual property portfolio of Stabilis and its subsidiaries includes patents and trademarks. The Company has a patent in the US, Canada and Mexico for the use of natural gas for well enhancement. The Company has one patent for rotary fluid processing systems and a US patent for a gas processing system. The last patent to expire in the U.S. will expire in July 2039, absent any adjustments or extensions. The Company has ten U.S. trademark registrations and one foreign trademark registration (Canada). The Company has no pending trademark applications.

**Background and History**

The Company was originally incorporated in Florida on October 21, 1996 as American Access Technologies, Inc., a Florida corporation. On May 15, 2007, American Access Technologies, Inc. completed a business combination with M&I Electric Industries, Inc. ("M&I" or "M&I Electric"), a Texas corporation, and changed its name to American Electric Technologies, Inc. On August 12, 2018, all of the U.S. business operations of American Electric Technologies, Inc. based in the United States ("U.S.") were sold to an affiliate of Myers Power Products, Inc. As a result, 100% of the company's ongoing business was from international operations conducted through a Brazilian subsidiary, and an interest in a Chinese joint venture.

On July 26, 2019 the Company completed a share exchange (the "Share Exchange") whereby the Company acquired directly 100% of the outstanding limited liability company membership interests of Stabilis Energy, LLC ("Stabilis LLC") from LNG Investment Company, LLC ("LNG Investment") and 20% of the outstanding limited liability membership interests of PEG Partners, LLC ("PEG") from AEGIS NG LLC ("AEGIS"). AEGIS owned a 20% noncontrolling interest of PEG. The remaining 80% of the outstanding limited liability company interests of PEG were owned directly by Stabilis LLC. As a result, Stabilis LLC became a direct 100% owned subsidiary of American Electric and PEG became an indirectly-owned 100% subsidiary of American Electric. Under the Share Exchange Agreement, American Electric issued 13,178,750 post-split shares of common stock to acquire Stabilis LLC, which represented approximately 90% of the total amount of common stock of American Electric, which was issued and outstanding as of July 26, 2019. Immediately following the Share Exchange, the Company declared a reverse stock split of its outstanding common stock at a ratio of one-for-eight, and changed its name to Stabilis Energy, Inc.

**Available Information**

Stabilis' principal executive office is located at 11750 Katy Freeway, Suite 900, Houston, Texas 77079. Our telephone number is 832-456-6500 and our website address is www.stabilis-solutions.com. We make our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, amendments to those reports and other information filed with or furnished to the SEC available, free of charge, through our website, as soon as reasonably practicable after those reports and other information are electronically filed with or furnished to the SEC. The reference to Stabilis' website is not intended to incorporate the information on the website into this report or any of our filings with the SEC. In addition, the SEC maintains a website that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC at http://www.sec.gov. This annual report on Form 10-K, including all exhibits and amendments, has been filed electronically with the SEC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 9

------

[**Table of Contents**](#toc)

**ITEM 1A. RISK FACTORS**

Investing in shares of our common stock involves a high degree of risk. You should carefully consider the risks described below with all of the other information included in this report in evaluating an investment in our common stock. If any of the following risks were to occur, our business, financial condition, results of operations, and cash flows could be materially adversely affected. In that case, the trading price of our common stock could decline and you could lose all or part of your investment. Additional risks not presently known to us or that we currently deem immaterial may also impair our business operations.

**Risks Related to Our Business**

***Our ability to implement our business strategy may be materially and adversely affected by many known and unknown factors.***

Our business strategy relies upon our future ability to successfully market LNG to end-users, develop and maintain cost-effective logistics in our supply chain and construct, develop and operate energy-related infrastructure in North America. Our business strategy assumes that we will be able to expand our operations further in North America; enter into strategic, long-term purchase and supply contracts with end-users, power utilities, LNG providers, transportation companies, financing counterparties and other partners; acquire and transport LNG at attractive prices; continue to develop our logistics infrastructure into efficient and profitable operations; construct or acquire liquefaction facilities; obtain approvals from all relevant federal, international, state and local authorities, as needed, for the construction and operation of these projects; and obtain long-term capital appreciation and liquidity with respect to such investments. These assumptions are subject to significant economic, competitive, regulatory and operational uncertainties, contingencies and risks, many of which are beyond our control. We may also acquire operating businesses or other assets in the future to further our business strategy. Any such acquisitions would be subject to significant risks and contingencies, including the risk of integration, and we may not be able to realize the benefits of any such acquisitions.

Our future ability to execute our business strategy is uncertain, and it can be expected that one or more of the following factors will prove to be incorrect or that we will face unanticipated events and circumstances that may adversely affect our business which may adversely affect our financial condition, results of operations and ability to execute our business strategy:

• failure to win new bids or contracts;

• failure to obtain project financing, or delays in the construction of our proposed new Galveston LNG liquefaction facility or commissioning of our Jones Act-compliant LNG marine bunkering vessel could prevent the Company from meeting conditions precedent to contracts with certain customers;

• failure to manage expanding operations in the projected time frame, including the construction of our proposed new Galveston LNG liquefaction facility and the expansion of our operations for our new contract with a customer for remote power generation at a data center commencing in 2027;

• failure to maintain compliance with covenants related to our debt, which, if not cured or waived, would give our lenders the right to accelerate payment of the Company's debt which could adversely affect our liquidity, our ability to continue expansion efforts and continue normal operations.

• inability to structure innovative and profitable energy-related transactions, maintain cost-effective logistics solutions and to optimally manage performance and counterparty risks;

• inability to attract and retain personnel in a timely and cost-effective manner as we are highly dependent on principal members of our management team and certain of our other employees, the loss of which could disrupt our operations, adversely impact the achievement of our objectives and increase our exposure to the other risks described herein;

• failure of investments in technology and machinery, such as liquefaction technology or LNG tank truck technology, to perform as expected;

• failure to maintain important pre-existing third-party relationships;

• increases in competition and/or failure to anticipate and adapt to new trends in the energy sector in North America and elsewhere; which could undermine profits;

• inability to source LNG in sufficient quantities and/or at economically attractive prices;

• increases in operating costs, including the need for capital improvements, insurance premiums, general taxes, real estate taxes and utilities, affecting our profit margins;

• inflation, depreciation of the currencies of the countries in which we operate and fluctuations in interest rates;

• failure to obtain approvals from governmental regulators and relevant local authorities for the construction and operation of potential future projects and other relevant approvals;

• existing and future governmental laws and regulations as well as potential changes in regulatory, geopolitical, social, economic, tax or monetary policies and other factors within the areas we operate or intend to operate; or

• inability, or failure, of a significant customer to perform its contractual obligations for any reason, including nonpayment and nonperformance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 10

------

[**Table of Contents**](#toc)

***Any failure to perform by our counterparties under agreements may adversely affect our operating results, liquidity and access to financing.***

Our business involves our entering into various purchase and sale and other transactions with numerous third parties (commonly referred to as "counterparties"). In such arrangements, we are exposed to the performance and credit risks of our counterparties, including the risk that one or more counterparties fails to perform its obligation to make deliveries of commodities and/or to make payments. These risks may increase during periods of commodity price volatility. Defaults by suppliers and other counterparties may adversely affect our operating results, liquidity and access to financing.

***Cyclical or other changes in the demand for and price of LNG and natural gas may adversely affect our business and the performance of our customers which could have a material adverse effect on our business, contracts, financial condition, operating results, cash flows, liquidity and ability to execute our strategy.***

Our business generally is based on assumptions about the future availability and price of natural gas and LNG markets. Natural gas and LNG prices have at various times been and may become volatile due to one or more of the following factors:

• changes in supplies of, demand for, and prices for, alternative energy sources such as coal, oil, nuclear, hydroelectric, wind and solar energy, which may reduce the demand for natural gas;

• weather conditions and natural disasters;

• reduced demand and lower prices for natural gas;

• increased natural gas production deliverable by pipelines, which could suppress demand for LNG;

• decreased oil and natural gas exploration activities, which may decrease the production of natural gas, or decrease the demand for LNG used in the oil and gas exploration and production process;

• changes in regulatory, tax or other governmental policies or requirements regarding imported or exported LNG, natural gas or alternative energy sources, which may reduce the demand for imported or exported LNG and/or natural gas;

• political conditions in natural gas producing regions; and

• imposition of tariffs by other countries on imports of LNG from the United States.

Adverse trends or developments affecting any of these factors could result in decreases in the prices at which we are able to sell LNG and natural gas and related services or increases in the prices we have to pay for natural gas or LNG, which could materially and adversely affect the performance of our customers, and could have a material adverse effect on our business, contracts, financial condition, operating results, cash flows, liquidity and ability to execute our strategy.

***Operation of our LNG infrastructure, liquefaction and other facilities involves significant risks.***

The operation of our LNG infrastructure, liquefaction and other facilities involve particular, significant risks that could involve interruption of our operations, including, among others: performing below expected levels of efficiency, breakdowns or failures of equipment, operational errors by trucks, operational errors by us or any contracted facility operator, industrial accidents, labor disputes and weather-related or natural disasters. Additional risks include, but are not limited to: failure to maintain the required license(s) or other permits required to operate our plants; failure in health and safety performance and management of health and safety risks; failure to comply with applicable laws and regulations, including environmental laws and regulations; failure to properly manage environmental risks, including pollution, contamination, and exposure to hazardous materials; the inability, or failure, of any counterparty to any plant-related agreements to perform their contractual obligations to us and planned and unplanned power outages due to maintenance, expansion and refurbishment. We cannot assure you that future occurrences of any of the events listed above or any other events of a similar or dissimilar nature would not significantly decrease or eliminate the revenues from, or significantly increase the costs of operating expenses related to our LNG infrastructure, liquefaction or other operation which could have a material adverse effect on our business, contracts, financial condition, operating results, cash flow, liquidity and ability to execute of our strategy.

Any failure in health and safety performance from our operations may result in an event that causes personal harm or injury to our employees, other persons, and/or the environment, as well as the imposition of injunctive relief and/or penalties for non-compliance with relevant regulatory requirements or litigation. Such a failure, or a similar failure elsewhere in the energy industry (including, in particular, LNG liquefaction, storage, transportation or regasification operations), could generate public concern, which may lead to new laws and/or regulations that would impose more stringent requirements on our operations, have a corresponding impact on our ability to obtain permits and approvals, and otherwise jeopardize our reputation or the reputation of our industry as well as our relationships with relevant regulatory agencies and local communities. Individually or collectively, these developments could have a material adverse effect on our business, contracts, financial condition, operating results, cash flow, liquidity and ability to execute our strategy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 11

------

[**Table of Contents**](#toc)

***Construction of new LNG infrastructure including new liquefaction and other facilities involves significant risks.***

Included in our near-term and long-term growth strategy, is the completion of the construction of our proposed Galveston LNG liquefaction facility which will require significant amounts of capital during construction and involves numerous operational, regulatory, environmental, political, legal and economic risks beyond our control and may require the expenditure of significant amounts of capital during construction and thereafter. These potential risks include, among other things, the following:

• we may be unable to complete construction projects on schedule or at the budgeted cost due to the unavailability of required construction personnel or materials, inability obtain key permits or land use approvals including those required under environmental laws, occurrence of accidents or weather conditions, changes in regulatory requirements or challenges by citizens groups or non-governmental organizations, including those opposed to fossil fuel energy sources;

• we will not receive any material increase in operating cash flows until a project is completed, even though we may have expended considerable funds during the construction phase, which may be prolonged;

• we may construct facilities to capture anticipated future energy consumption growth in a region in which such growth does not materialize;

• we may experience material cost overruns due to unforeseen additional costs incurred or material cost increases incurred, with no alternative avenues for remedy; and

• we may be unable to secure financing sufficient to commence or complete construction, or the financing terms may be uneconomic.

In the event we are unable to obtain financing to construct the proposed Galveston LNG liquefaction facility, or are unable to complete the construction on time, the counterparties to our bunkering agreements may terminate such agreements, which would have an adverse effect on our financial condition and results of operations. Even if the proposed Galveston LNG facility is completed, unanticipated additional costs, or failure to secure agreements to utilize the full capacity of the facility could have an adverse effect on our financial condition and results of operations.

***We expect to be dependent on contractors for the successful completion of our energy-related infrastructure.***

Timely and cost-effective completion of energy-related infrastructure, including maintenance and expansion of existing liquefaction facilities, as well as construction of future projects, in compliance with agreed specifications is central to our business strategy and is highly dependent on the performance of our contractors. The ability of our contractors to perform successfully under their agreements with us is dependent on a number of factors, including the contractor's ability to:

• design and engineer each of our facilities to operate in accordance with specifications;

• engage and retain third-party subcontractors and procure equipment and supplies;

• respond to difficulties such as equipment failure, delivery delays, schedule changes and failures to perform by subcontractors, some of which are beyond their control;

• attract, develop and retain skilled personnel, including engineers;

• post required construction bonds and comply with the terms thereof;

• manage the construction process generally, including coordinating with other contractors and regulatory agencies; and

• maintain their own financial condition, including adequate working capital.

Until we have entered into an Engineering, Procurement and Construction ("EPC") contract for a particular project, in which the EPC contractor agrees to meet our planned schedule and projected total costs for a project, we are subject to potential fluctuations in construction costs and other related project costs. Although some agreements may provide for liquidated damages if the contractor fails to perform in the manner required with respect to certain of its obligations, the events that trigger a requirement to pay liquidated damages may delay or impair the operation of the applicable facility, and any liquidated damages that we receive may be delayed or insufficient to cover the damages that we suffer as a result of any such delay or impairment. The obligations of our primary building contractor and other contractors to pay liquidated damages under their agreements with us are subject to caps on liability, as set forth therein. Furthermore, we may have disagreements with our contractors about different elements of the construction process, which could lead to the assertion of rights and remedies under our contracts and increase the cost of the applicable facility or result in a contractor's unwillingness to perform further work. If any contractor is unable or unwilling to perform according to the negotiated terms and timetable of its respective agreement for any reason or terminates its agreement for any reason, we would be required to engage a substitute contractor, which could be particularly difficult in certain of the markets in which we operate or plan to operate. This would likely result in significant project delays and increased costs, which could have a material adverse effect on our business, contracts, financial condition, operating results, cash flow, liquidity and ability to execute our strategy. Additionally, in certain instances, we may be jointly and severally liable for our contractor's actions or contract performance.

 ***We may be unable to integrate additions of new equipment and personnel to successfully deliver to our customers.***

Meeting our obligations to our customers, including our newly executed multi-year on-site power generation contract for a data center, will require additions of new equipment and personnel. The supply agreement will require investment of up to $25.0 million in capital additions and near-term working capital needed to fund the start-up of the project. In the event, the data center is unable to properly integrate LNG into their operations, if we are unable to integrate additions of new equipment and personnel necessary to successfully deliver LNG to the customer, or if our sources of LNG are inadequate to service this contract, we may incur losses in cash flow and loss to our reputation related to future projects.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 12

------

[**Table of Contents**](#toc)

***Our insurance may be insufficient to cover losses that may occur to our property or result from our operations.***

Our current operations and future projects are subject to the inherent risks associated with the operation of LNG infrastructure as well as liquefaction and other facilities including explosions, pollution, release of toxic substances, fires, seismic events, hurricanes and other adverse weather conditions, and other hazards, each of which could result in significant delays in commencement or interruptions of operations and/or result in damage to or destruction of our facilities and assets or damage to persons and property. In addition, such operations and the modes of transport of third parties on which our current operations and future projects may be dependent face possible risks associated with acts of aggression or terrorism. Some of the regions in which we operate are affected by hurricanes or tropical storms. We do not, nor do we intend to, maintain insurance against all of these risks and losses. In particular, we do not carry business interruption insurance for hurricanes and other natural disasters. Therefore, the occurrence of one or more significant events not fully insured or indemnified against could create significant liabilities and losses which could have a material adverse effect on our business, contracts, financial condition, operating results, cash flow, liquidity and ability to execute our strategy. In addition, our insurance may be voidable by the insurers as a result of certain of our actions.

We maintain insurance against certain risks and losses; however, the occurrence of a significant event that is either uninsured or not fully insured or indemnified against could have a material adverse effect on our business, contracts, financial condition, operating results, cash flow, liquidity and ability to execute our strategy. Further, we may be unable to procure adequate insurance coverage at commercially reasonable rates in the future.

***Existing and future environmental, health and safety laws and regulations could result in increased compliance costs or additional operating costs or construction costs and restrictions.***

Our business is now and will in the future be subject to extensive federal, international, state and local laws and regulations both in the United States and in other jurisdictions where we operate that regulate and restrict, among other things, the siting and design of our facilities, discharges to air, land and water, the handling, storage and disposal of hazardous materials, and remediation associated with the release of hazardous substances. Many of the federal and state laws with respect to these impose liability, without regard to fault or the lawfulness of the original conduct. As the owner and operator of our facilities and as generators of and arrangers for the transport and disposal of regulated wastes, we could be liable for the costs of cleaning up any such hazardous substances that may be released into the environment at or from our facilities or facilities to which wastes or hazardous substances were transported or disposed, for resulting damage to natural resources, and for certain health studies. We are also subject to laws, regulations regulatory permits, approvals and authorizations, including, but not limited to:

The Clean Air Act ("CAA") and Clean Water Act ("CWA"), and analogous state laws and regulations that restrict or prohibit the types, quantities and concentration of substances that can be emitted or discharged into the environment in connection with the construction and operation of our facilities which may also require us to obtain and maintain permits and provide governmental authorities with access to our facilities for inspection and reports related to compliance.

The Resource Conservation and Recovery Act ("RCRA") and analogous state laws which may impose detailed requirements for the generation, handling, storage, processing, treatment and disposal of nonhazardous and hazardous solid wastes. Wastes listed as hazardous wastes or that have hazardous characteristics are subject to more stringent requirements than those considered nonhazardous.

The Occupational Safety and Health Act ("OSHA") and comparable state statutes whose purpose is to protect the health and safety of workers.

The Emergency Planning and Community Right-to-Know Act, the general duty clause and Risk Management Planning regulations promulgated under section 112(r) of the CAA and comparable state statutes and any implementing regulations that require recordkeeping and disclosure of information about hazardous materials used or produced in our operations and require that this information be provided to employees, state and local governmental authorities and citizens. These laws also require the development of risk management plans for certain facilities to prevent accidental releases of extremely hazardous substances and to minimize the consequences of such releases should they occur.

*U.S. Coast Guard ("USCG").* The USCG exercises regulatory authority over waterfront facilities that handle LNG under 33 C.F.R. Part 127, which establishes detailed requirements for the siting, design, construction, equipment, operations, maintenance, personnel qualifications, fire protection, and security of marine transfer areas associated with LNG. These regulations govern both new and existing LNG waterfront facilities and prescribe standards for transfer operations, emergency shutdown systems, sensing and alarm equipment, personnel training, recordkeeping, inspections, and security protocols. The USCG also oversees LNG-related bunkering and vessel fuel transfer operations, issuing and updating risk-based guidelines through Policy Letters to address evolving alternative marine fuels. These guidelines require us to undertake structured risk assessments, provide advance notice to the Captain of the Port, and demonstrate compliance with safety, personnel qualification, and operational requirements.

*Pipeline Hazardous Materials Safety Administration ("PHMSA"). PHMSA* has promulgated detailed regulations governing LNG facilities under its jurisdiction to address LNG facility siting, design, construction, equipment, operations, maintenance, personnel qualifications and training, fire protection and security. State and local regulators can impose similar siting, design, construction and operational requirements. Additional approvals of the Department of Energy ("DOE") may be required under Section 3 of the Natural Gas Act ("NGA"). Certain federal permitting processes may trigger the requirements of the National Environmental Policy Act ("NEPA"), which requires federal agencies to evaluate major agency actions that have the potential to significantly impact the environment. We also must comply with foreign regulations regarding to the extent we transport LNG within Canada and Mexico.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 13

------

[**Table of Contents**](#toc)

*Greenhouse Gases/Climate Change.* From time to time, there may be federal and state regulatory and policy initiatives to reduce green house ("GHG") emissions in the United States from a variety of sources. Other federal and state initiatives are being considered or may be considered in the future to address GHG emissions through, for example, United States treaty commitments or other international agreements, direct regulation, a carbon emissions tax, or cap-and-trade programs. The Environmental Protection Agency ("EPA") has adopted regulations for reporting and controlling GHG emissions from certain air emissions sources under its existing authority under the CAA, and may adopt more stringent regulations in the future. In addition, some states and foreign jurisdictions have individually or in regional cooperation, imposed restrictions on GHG emissions under various policies and approaches, including establishing a cap on emissions, requiring efficiency measures, or providing incentives for pollution reduction, use of renewable energy sources, or use of replacement fuels with lower carbon content.

The adoption and implementation of any U.S. federal, state or local regulations or foreign regulations imposing obligations on, or limiting emissions of GHGs from, our equipment and operations could require us to incur significant costs to reduce emissions of GHGs associated with our operations or could adversely affect demand for natural gas and natural gas products. The potential increase in our operating costs could include new costs to operate and maintain our facilities, permit our facilities, install new emission controls on our facilities, acquire allowances to authorize our GHG emissions, pay taxes related to our GHG emissions, and administer and manage a GHG emissions program. We may not be able to recover such increased costs through increases in customer prices or rates. In addition, changes in regulatory policies that result in a reduction in the demand for hydrocarbon products that are deemed to contribute to GHGs, or restrict their use, may reduce volumes available to us for processing, transportation, marketing and storage. These developments could have a material adverse effect on our financial position, results of operations and cash flows.

*Fossil Fuels*. Our business activities depend upon a sufficient and reliable supply of natural gas feedstock, and are therefore subject to concerns in certain sectors of the public about the exploration, production and transportation of natural gas and other fossil fuels and the consumption of fossil fuels more generally. Legislative and regulatory action, and possible litigation, in response to such public concerns may also adversely affect our operations. We may be subject to future laws, regulations, or actions to address such public concern with fossil fuel generation, distribution and combustion, GHGs and the effects of global climate change. Our customers may also move away from using fossil fuels such as LNG for their power generation needs for reputational or perceived risk-related reasons. These matters represent uncertainties in the operation and management of our business, and could have a material adverse effect on our financial position, results of operations and cash flows.

Failure to comply with any of the above laws and regulations or any other future legislation and regulations could lead to substantial liabilities, fines and penalties or capital expenditures related to pollution control equipment and restrictions or curtailment of operations, which could have a material adverse effect on our business, contracts, financial condition, operating results, cash flow, and ability to execute our strategy. Further, we cannot control the outcome of any review and approval process, including whether or when any such permits, approvals and authorizations will be obtained, the terms of their issuance, or possible appeals or other potential interventions by third parties, that could interfere with our ability to obtain and maintain such permits, approvals and authorizations or the terms thereof. Accordingly, there is no assurance that we will timely obtain and maintain these governmental permits, approvals and authorizations on favorable terms, or at all. Failure to obtain and maintain any of these permits, approvals or authorizations could have a material adverse effect on our business, financial condition, operating results, cash flows and ability to execute our strategy.

***Changes in legislation and regulations could have a material adverse impact on our business, results of operations, financial condition, liquidity and ability to execute our strategy.***

Our business is subject to governmental laws, rules, and regulations, and requires permits that impose various restrictions and obligations that may have material effects on our results of operations. Future legislation and regulations or changes in existing legislation and regulations, or interpretations thereof, such as those relating to the liquefaction, storage, or regasification of LNG, or its transportation, exportation, or importation could cause additional expenditures, restrictions and delays in connection with our operations as well as other future projects, the extent of which cannot be predicted and which may require us to limit substantially, delay or cease operations in some circumstances. Revised, reinterpreted or additional laws and regulations that result in increased compliance costs or additional operating costs and restrictions could have an adverse effect on our business, results of operations, financial condition, liquidity and execution of our strategy.

We use third party LNG transportation providers that are subject to various trucking safety regulations, including those which are enacted, reviewed and amended by the Federal Motor Carrier Safety Administration ("FMCSA"). These regulatory authorities exercise broad powers, governing activities such as the authorization to engage in motor carrier operations, driver licensing, insurance requirements, financial reporting and review of certain mergers, consolidations and acquisitions, and transportation of hazardous materials. All federally regulated carriers' safety ratings are measured through a program implemented by the FMCSA known as the Compliance Safety Accountability ("CSA") program which measures a carrier's safety performance. The quantity and severity of any violations are compared to a peer group of companies of comparable size and annual mileage. If a company rises above a threshold established by the FMCSA, it is subject to action from the FMCSA and ultimately revocation of the company's operating authority if the issues are not corrected. To a large degree, intrastate motor carrier operations are subject to state and/or local safety regulations that mirror federal regulations but also regulate the weight and size dimensions of loads. Applicable regulatory requirements and limitations are subject to change, either through new regulations enacted on the federal, state or local level, or by new or modified regulations that may be implemented under existing law. Any changes in trucking operations due to changes in regulations or loss of a LNG transportation provider could have an adverse effect on our business, results of operations, financial condition, liquidity and execution of our strategy.

***Global climate change may in the future increase the frequency and severity of weather events and the losses resulting therefrom, which could have a material adverse effect on the economies in the markets in which we operate or plan to operate in the future and therefore on our business.***

There is a growing concern today that climate change increases the frequency and severity of extreme weather events and, in recent years, the frequency of major weather events appears to have increased. We cannot predict whether or to what extent damage that may be caused by natural events, such as severe tropical storms and hurricanes, will affect our operations or the economies in our current or future market areas, but the increased frequency and severity of such weather events could increase the negative impacts to economic conditions in these regions and result in a decline in the value or the destruction of our liquefiers, construction in progress and downstream facilities or affect our ability to transport LNG. In particular, if one of the regions in which we operate is impacted by such a natural catastrophe in the future, it could have a material adverse effect on our business. Further, the economies of such impacted areas may require significant time to recover and there is no assurance that a full recovery will occur. Even the threat of a severe weather event could impact our business, financial condition or the price of our common stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 14

------

[**Table of Contents**](#toc)

***Other natural or man-made disasters could result in an interruption of our operations, a delay in the completion of future facilities, higher construction costs or the deferral of the dates on which payments are due under our customer contracts, all of which could adversely affect us.***

Other disasters such as explosions, fires, seismic events, floods or accidents, could result in damage to, or interruption of operations in our supply chain, including at our facilities or related infrastructure, as well as delays or cost increases in the construction and the development of our proposed facilities or other infrastructure.

If one or more trailers, terminals, pipelines, facilities, equipment or electronic systems that we own, lease or operate or that deliver products to us or that supply our facilities and our customers' facilities are damaged by a natural or other disaster, accident, catastrophe, terrorist or cyber-attack or event, our operations could be significantly interrupted. These delays and interruptions could involve significant damage to people, property or the environment, and repairs could take a week or less for a minor incident to six months or more for a major interruption. Any event that interrupts the revenues generated by our operations, or that causes us to make significant expenditures not covered by insurance, could have a material adverse effect on our business, contracts, financial condition, operating results, cash flow, liquidity and ability to execute our strategy.

***We may not be able to purchase or receive physical delivery of natural gas in sufficient quantities and/or quality or at economically attractive prices to satisfy our delivery obligations under our commercial agreements, which could have a material adverse effect on our business.***

We may not be able to purchase or receive physical delivery of sufficient quantities and/or quality of LNG or natural gas to satisfy delivery obligations either for our own liquefaction facilities or third party LNG suppliers, or both, which may provide customers with the right to terminate our commercial agreements. In addition, price fluctuations in natural gas and LNG may make it expensive or uneconomical for us to acquire adequate supply of these items. If LNG were to become unavailable for current or future volumes of natural gas due to repairs or damage to supplier facilities or pipelines, lack of capacity or any other reason, our ability to continue delivering natural gas to end-users could be restricted, thereby reducing revenues. Any permanent interruption at any key LNG supply chains that causes a material reduction in volumes could have a material adverse effect on our business, financial condition, operating results, cash flow, liquidity and ability to execute our strategy.

***We face competition based upon market price for LNG or natural gas.***

Our business is subject to the risk of natural gas and LNG price competition which may prevent us from entering into new or replacement customer contracts on economically comparable terms to existing customer contracts, or at all which could have a material adverse effect on our business, contracts, financial condition, operating results, cash flow, liquidity and ability to execute our strategy. Factors which may negatively affect potential demand for LNG from our business are diverse and include, among others:

• increases in worldwide LNG production capacity and availability of LNG for market supply;

• increases or decreases in the cost of LNG;

• decreases in the cost of competing sources of natural gas, LNG or alternate fuels such as coal, heavy fuel oil and diesel; and

• displacement of LNG or fossil fuels more broadly by alternate fuels or energy sources or technologies (including but not limited to nuclear, wind, solar, biofuels and batteries) in locations where access to these energy sources is not currently available or prevalent.

Decreased demand for natural gas may result in significant price competition and decrease the prices we are able to charge, which would have a material adverse effect on our results of operations, financial condition and ability to execute our strategy.

***Technological innovation may render our liquefaction processes obsolete or significantly decrease the demand of LNG as a fuel source for our customers.***

The success of our current operations and future projects will depend in part on our ability to create and maintain a competitive position in the natural gas liquefaction industry. Although we plan to utilize proven technologies such as those currently in operation at our George West and Port Allen liquefiers, we do not have any exclusive rights to any of these technologies. In addition, such technologies may be rendered obsolete or uneconomical by legal or regulatory requirements, technological advances, more efficient and cost-effective processes or entirely different approaches developed by one or more of our competitors or others. Failure to keep up with the pace of technological innovation could materially and adversely affect our business, ability to realize benefits from future projects, results of operations, financial condition, liquidity and ability to execute our strategy.

S***ome of our competitors have greater financial, technological and other resources than we currently possess.***

We plan to operate in the highly competitive area of LNG production and face intense competition from independent, technology-driven companies as well as from both major and other independent oil and natural gas companies. Some of these competitors have longer operating histories, have secured access to, or are pursuing development or acquisition of LNG facilities in North America, have more development experience, greater name recognition, larger staffs and substantially greater financial, technical and marketing resources than we currently possess. We also face competition for the contractors needed to build our facilities. The superior resources that some of these competitors have available for deployment could allow them to compete successfully against us, which could have a material adverse effect on our business, ability to realize benefits from future projects, results of operations, financial condition, liquidity and ability to execute our strategy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 15

------

[**Table of Contents**](#toc)

***Failure of LNG to be a competitive source of energy in the markets in which we operate, and seek to operate, could adversely affect our expansion strategy.***

Natural gas competes with other sources of energy, including coal, oil, nuclear, hydroelectric, wind and solar energy, which may become available at a lower cost in certain markets. Our operations are, and will be, dependent upon LNG being a competitive source of energy in the markets in which we operate. In the United States, imported LNG has not developed into a significant energy source. The success of the domestic liquefaction component of our business plan is dependent, in part, on the extent to which natural gas can, for significant periods and in significant volumes, be produced in the United States at a lower cost than the cost to produce some domestic supplies of other alternative energy sources, and that it can be transported at reasonable rates through appropriately-scaled infrastructure. The failure of natural gas to be a competitive supply alternative to oil and other alternative energy sources could adversely affect our ability to deliver LNG or natural gas to our customers in North America or other locations on a commercial basis.

***Our risk management strategies cannot eliminate all LNG price and supply risks. In addition, any non-compliance with our risk management strategies could result in significant financial losses.***

Our strategy is to maintain a manageable risk balance between LNG purchases and sales or future delivery obligations. Through these transactions, we seek to earn a margin for the LNG purchased by selling LNG for physical delivery to third-party users. These strategies cannot, however, eliminate all price risks. For example, any event that disrupts our anticipated supply chain could expose us to risk of loss resulting from price changes if we are required to obtain alternative supplies to cover these transactions. We are also exposed to basis risks when LNG is purchased against one pricing index and sold against a different index. In addition, our marketing operations involve the risk of non-compliance with our risk management policies. We cannot assure you that our processes and procedures will detect and prevent all violations of our risk management strategies, particularly if deception or other intentional misconduct is involved. If we were to incur a material loss related to commodity price risks, including non-compliance with our risk management strategies, it could have a material adverse effect on our financial position, results of operations and cash flows.

***We may experience increased labor costs, and the unavailability of skilled workers or failure to attract and retain qualified personnel could adversely affect us.***

We are dependent upon the available labor pool of skilled employees. We compete with other energy companies and other employers to attract and retain qualified personnel with the technical skills and experience required to construct and operate energy-related infrastructure and to provide our customers with the highest quality service. In addition, a tightening labor market may affect our ability to hire and retain skilled labor and require us to pay increased wages.

In addition, we, and our subsidiaries in the United States who hire personnel, are also subject to the Fair Labor Standards Act, which governs such matters as minimum wage, overtime and other working conditions. We are also subject to applicable labor regulations in the other jurisdictions in which we operate, including Mexico. We may face challenges and costs in hiring, retaining and managing our employee base. A shortage in the labor pool of skilled workers or other general inflationary pressures or changes in applicable laws and regulations could make it more difficult for us to attract and retain qualified personnel and could require an increase in the wage and benefits packages that we offer, thereby increasing our operating costs. Any increase in our operating costs could materially and adversely affect our business, financial condition, operating results, liquidity and ability to execute our strategy.

***We may incur impairments to goodwill or long-lived assets.***

We test our long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of these assets may not be recoverable. We test goodwill for impairment annually, or more frequently as circumstances dictate. Significant negative industry or economic trends, and decline of market capitalization, reduced estimates of future cash flows for business segments or disruptions to business could lead to an impairment charge of the long-lived assets, including our goodwill. Our valuation methodology for assessing impairment requires management to make judgments and assumptions based on historical experience and to rely heavily on projections of future operating performance. Projections of future operating results and cash flows may vary significantly from actual results. In addition, if our analysis results in an impairment to our goodwill or long-lived assets, we may be required to record a charge to earnings in our consolidated financial statements during a period in which such impairment is determined to exist, which may negatively impact our operating results.

***Environmental, social, and governance (***"***ESG***"***) goals, programs, and reporting are being identified by capital providers and investors as a priority for the energy industry, and access to capital and investors for companies not prioritizing ESG may become limited.***

Spurred by increasing concerns regarding climate change, the energy industry faces growing demand for corporate transparency and a demonstrated commitment to sustainability goals. ESG goals and programs, which typically include extralegal targets related to environmental stewardship, social responsibility and corporate governance, have become a focus of some investors and shareholders across the industry. While reporting on ESG metrics remains voluntary, access to capital and investors is likely to favor companies with robust ESG programs in place. In addition, if ESG metrics and/or reporting become mandatory, our costs of planning, measuring, monitoring, and reporting on our operations could increase and could have a material adverse effect on our business, contracts, financial condition, operating results, cash flow, liquidity and ability to execute our strategy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 16

------

[**Table of Contents**](#toc)

***We have operations and investment in foreign countries and we could experience losses from weakening foreign economies as well as unforeseen or unexpected operating, financial, political or cultural factors in these countries.***

We currently have operations in Mexico and in China. We could experience losses resulting from weakening foreign economies (including foreign exchange losses), as well as unforeseen or unexpected operating, financial, political or cultural factors in these countries. Strained diplomatic and political relationships between the United States and these foreign countries, along with weaker legal systems, could also adversely affect our investment and business opportunities in these countries. See Note 6 of the Notes to Consolidated Financial Statements for additional information on our investment in the foreign joint venture.

**Risks Inherent in an Investment in Us**

***Investment in us is speculative.***

We will continue to incur significant capital and operating expenditures while we develop infrastructure for our supply chain and other future projects. We will need to invest significant amounts of additional capital to implement our strategy. We could experience delays beyond the expected development period, which could create operating losses and negative operating cash flows. Our future liquidity may also be affected by the timing of construction financing availability in relation to the incurrence of construction costs and other outflows and by the timing of receipt of cash flows under our customer contracts in relation to the incurrence of project and operating expenses. Our strategy may not be successful, and if unsuccessful, we may be unable to modify it in a timely and successful manner.

We cannot provide any assurance that we will be able to implement our strategy on a timely basis, if at all, or achieve our internal forecast or that our assumptions will be accurate. Accordingly, an investment in our Company is speculative and subject to a high degree of risk, and you should understand that there is a possibility of the loss of your entire investment.

***We may require additional funding from various sources, which may not be available or may only be available on unfavorable terms.***

We expect our working capital needs to increase to fund capital expenditures as we expand our operations to include construction of our proposed new Galveston LNG liquefaction facility and for our multi-year, on-site power generation for a data center beginning in 2027. Our current net working capital may not be sufficient to expand our operations in accordance with our strategy. In the future, we may pursue offerings of debt or equity securities or rely on future borrowings of debt to provide additional working capital as well as seek prepayments from customers. We also have working capital requirements driven by the delay between the purchase of and payment for natural gas and the payment terms that we offer our customers. Differences between the date when we pay our LNG supply and service providers and the date when we receive payments from our customers may adversely affect our liquidity and our cash flows.

If we are unable to secure additional funding, or if it is only available on terms that we determine are not acceptable, we may be forced to delay, reduce or eliminate parts of our expansion efforts, or we may otherwise be unable to fully execute our business plan, and our business, financial condition or results of operations may be adversely affected. Our ability to raise additional capital will depend on financial, economic and market conditions and other factors, many of which are beyond our control. We cannot assure you that such additional funding will be available on acceptable terms, or at all. A variety of factors beyond our control could impact the availability or cost of capital, including domestic or international economic conditions, increases in key benchmark interest rates and/or credit spreads, the adoption of new or amended banking or capital market laws or regulations, the re-pricing of market risks and volatility in capital and financial markets, risks relating to the credit risk of our customers and the jurisdictions in which we operate, as well as general risks, including limitations on investment capital, applicable to the energy sector, which may not be available as needed, or may be available in more limited amounts or on more expensive or otherwise unfavorable terms. In the event any of the lenders under these potential debt instruments were unable to perform on its commitments, we may need to seek replacement financing.

If we do not have sufficient working capital, we may not be able to pursue our growth strategy, respond to competitive pressures or fund key strategic initiatives which, in turn, may harm our business, financial condition and results of operations.

***We may incur losses over the next several years and may not maintain profitability.***

We may incur significant expenses and operating losses for the foreseeable future. The net results the Company incurs may fluctuate significantly from quarter to quarter. We anticipate that our expenses will increase substantially if and as we:

• seek to identify additional expansion of business operation opportunities;

• establish a sales, marketing and distribution infrastructure to commercialize our business and products; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 17

------

[**Table of Contents**](#toc)

• add operational, financial and management information systems and personnel, including personnel to support our business development and planned future commercialization efforts.

To be and remain profitable, we must develop and execute our strategy which will require us to be successful in a range of challenging activities. We may never succeed in these activities and, even if we do, may never generate revenues that are significant or large enough to achieve profitability. Our failure to become and remain profitable would decrease the value of the Company and could impair our ability to raise capital, maintain our existing business operations and development efforts, expand our business or continue our operations and may require us to raise additional capital that may dilute the ownership interest of common stock holders.

***Failure to maintain compliance with debt covenants could give our lenders the right to accelerate payment which could adversely affect our liquidity, our ability to continue expansion efforts and continue normal operations.***

The Company believes it will continue to maintain compliance with its debt covenants, however, in the event the Company is unable to maintain minimum profitability in accordance with its forecast and historical trends, it is reasonably possible that the Company could fail to maintain compliance with its consolidated debt service ratio covenant, which, if not cured or waived, would give AmeriState Bank the right to accelerate repayment of outstanding borrowings under the AmeriSate Secured Term Loan Facility, which totaled $7.2 million as of December 31, 2025. Such acceleration could adversely effect our liquidity, our ability to continue expansion efforts and continue normal operations.

***The loss of a significant customer or inability of a significant customer to perform under contract could adversely affect our operating results and ability to generate cash flows.***

We currently depend upon a limited number of customers. Our near term ability to generate cash is both dependent on the small number of customers' continued willingness and ability to perform their obligations under their respective contracts. In the event one of our significant customer fails to perform its obligations under their contracts, our operating results, cash flow and liquidity could be materially and adversely affected, even if we were ultimately successful in seeking damages from any of these customers in the event of a breach of the contract. For the year ended December 31, 2025, Carnival Corporation, Aggreko Plc and Space Exploration Technologies Corp each accounted for more than 10% of our revenues.

Any material nonpayment or nonperformance by our customers could have a materially adverse effect on our financial condition and results of operations. Risks of nonpayment and nonperformance by customers are a consideration in our businesses, and our credit procedures and policies may be inadequate to sufficiently eliminate customer credit risk. As part of our business strategy, we intend to target customers who have not been traditional purchasers of natural gas, including customers in developing countries, and these customers may have greater credit risk than typical natural gas purchasers. Therefore, we may request prepayments in advance for purchasing LNG or our services for certain customers that pose a greater customer credit risk than other companies in the industry. Further, adverse economic conditions in the energy industry increase the risk of nonpayment and nonperformance by customers, particularly customers that have sub-investment grade credit ratings or significant counterparty risks. Finally, we may be unable to collect amounts due or damages we are awarded from certain customers, and our efforts to collect such amounts may damage our customer relationships.

Finally, our customer contracts may contain various termination rights, including, without limitation:

• for no cause by giving notice as agreed in the contract;

• if we fail to secure financing for the construction of our proposed Galveston LNG liquefaction facility.

• if we fail to commence commercial operations within the agreed timeframes.

• upon the occurrence of certain events of force majeure;

• if we fail to make available specified scheduled cargo quantities;

• upon the occurrence of certain uncured payment defaults;

• upon the occurrence of an insolvency event; and

• upon the occurrence of certain uncured, material breaches; 

Contracts that we enter into in the future may contain similar provisions. If any of these current or future contracts with significant customers are terminated, such termination could have a material adverse effect on our business, contracts, financial condition, operating results, cash flows, liquidity and ability to execute our strategy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 18

------

[**Table of Contents**](#toc)

***Raising additional capital may cause dilution to our stockholders or restrict our operations.***

We expect to finance our cash needs through a combination of equity offerings and debt financings. To the extent that we raise additional capital through the sale of equity or convertible debt securities, the ownership interest of common stock holders will be diluted, and the terms of these securities may include liquidation or other preferences that adversely affect the rights of common stockholders. Debt financing and preferred equity financing, if available, may involve agreements that include covenants limiting or restricting our ability to take specific actions, such as incurring additional debt, making capital expenditures or declaring dividends. We cannot be certain that additional funding will be available on acceptable terms, or at all. If we are unable to raise additional funds when needed, we may be required to delay, limit, reduce or terminate our facility development projects, product development or future commercialization efforts.

***Our common stock is thinly traded with a limited market and volatile.***

There is currently a limited public market for our common stock. Holders of our common stock may, therefore, have difficulty selling their shares, should they decide to do so. The market price of our shares may not necessarily bear any relationship to our book value, assets, past operating results, financial condition or any other established criteria of value, and may not be indicative of the market price for our common stock in the future. Further, the purchase or sale of relatively small common stock positions may result in disproportionately large increases or decreases in the price of our common stock. There can be no assurance that a more active market for our common stock will develop, or if one should develop, that it will be sustained. There can be no assurances that any shares which are purchased will be sold without incurring a loss.

In addition to being thinly traded, market prices for securities of energy producers, distributors and other businesses in the energy generation and distribution industry have been particularly volatile. Factors that may cause the market price of our common stock to fluctuate include, but are not limited to:

• period-to-period fluctuations in our financial results from current and any future business operations;

• issues in developing and expanding our LNG infrastructure and facilities, and service and delivery operations;

• our ability to obtain regulatory approvals for LNG business expansions, and delays or failures to obtain such approvals;

• the entry into, or termination of, key agreements, including key commercial partner agreements;

• the initiation of, material developments in, or conclusion of litigation to enforce or defend any of our rights under our material contracts or defend against the rights of others;

• the introduction of technological innovations or new energy products or methods of distribution that compete with our potential products;

• the loss of key employees;

• changes in estimates or recommendations by securities analysts, if any, who cover our common stock;

• fluctuations in actual and anticipated future commodity prices; and

• general and industry-specific economic conditions that may affect our research and development expenditures.

In the past, following periods of volatility in the market price of a company's securities, stockholders have often instituted class action securities litigation against those companies. Such litigation, if instituted, could result in substantial costs and diversion of management attention and resources, which could significantly harm our profitability and reputation. Our insurance coverage may not be sufficient to cover all costs and damages.

***We are a*** "***smaller reporting company***" ***and, as a result of the reduced disclosure and governance requirements applicable to smaller reporting companies, our common stock may be less attractive to investors.***

We are a "smaller reporting company," within the meaning of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). As a "smaller reporting company," we are subject to lesser disclosure obligations in our SEC filings compared to other issuers. Specifically, "smaller reporting companies" are able to provide simplified executive compensation disclosures in their filings, are exempt from the provisions of Section 404(b) of the Sarbanes-Oxley Act requiring that independent registered public accounting firms provide an attestation report on the effectiveness of internal control over financial reporting, and have certain other decreased disclosure obligations in their SEC filings, including, among other things, only being required to provide two years of audited financial statements in annual reports. Decreased disclosures in our SEC filings due to our status a "smaller reporting company" may make it harder for investors to analyze our operating results and financial ability to execute our strategy and make our common stock less attractive to investors. If some investors find our common stock less attractive as a result, there may be a less active trading market for our common stock, and our stock price may be more volatile.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 19

------

[**Table of Contents**](#toc)

***J. Casey Crenshaw has voting control over our Company.***

As of December 31, 2025, J. Casey Crenshaw has beneficial ownership of 71.2% of the outstanding shares of our common stock. As a result, Mr. Crenshaw may control all matters that require stockholder approval, as well as our management and affairs. For example, Mr. Crenshaw may unilaterally approve the election of directors and any merger, consolidation or sale of all or substantially all of our assets. This concentration of ownership makes it unlikely that any other holder or group of holders of our common stock will be able to affect the way the Company is managed or the direction of its business. Mr. Crenshaw's interests with respect to matters potentially or actually involving or affecting the Company, such as future acquisitions, financings and other corporate opportunities and attempts to acquire the Company, may conflict with the interests of our other stockholders. This concentration of ownership control may:

• delay, defer or prevent a change in control;

• entrench management;

• involve related party transactions we cannot assure you will be in the best interest of the stockholders;

• impede a merger, consolidation, takeover or other business combination involving the company that other stockholders may desire; or

• exempt us from certain corporate governance requirements that provide protection to stockholders of other public companies.

This concentration of stock ownership may adversely affect the trading price of our common stock to the extent investors perceive a disadvantage in owning stock of a company with a significant stockholder.

***In addition to Mr. Crenshaw***'***s ability to control all matters that require stockholder approval, provisions in our corporate charter documents and under Florida law could make an acquisition of the Company, which may be beneficial to stockholders, more difficult and may prevent attempts by our stockholders to replace or remove our current management.***

Provisions in our corporate charter and bylaws may discourage, delay or prevent a merger, acquisition or other change in control of our Company that stockholders may consider favorable, including transactions in which our stockholders might otherwise receive a premium for their shares. These provisions could also limit the price that investors might be willing to pay in the future for shares of our common stock, thereby depressing the market price of our common stock. In addition, because the Board of Directors is responsible for appointing the members of our management team, these provisions may frustrate or prevent any attempts by stockholders to replace or remove the current management by making it more difficult for stockholders to replace members of the Board of Directors. Among other things, these provisions:

• allow the authorized number of our directors to be fixed only by resolution of our Board of Directors;

• establish advance notice requirements for stockholder proposals that can be acted on at stockholder meetings and nominations to our Board of Directors;

• require that stockholder actions must be effected at a duly called stockholder meeting or by our stockholders by written consent of the holders of over 50% of the votes that all our stockholders would be entitled to cast;

• authorize our Board of Directors to issue preferred stock without stockholder approval, which could be used to institute a shareholder rights plan, or so-called "poison pill," that would work to dilute the stock ownership of a potential hostile acquirer, effectively preventing acquisitions that have not been approved by our Board of Directors; and

• require the proposal of our Board of Directors and the approval of the holders of over 50% of the votes that all our stockholders would be entitled to cast to amend our charter.

Moreover, because we are incorporated in Florida, we are governed by the provisions of Section 607.0901 and 607.0902 of the Florida Business Corporation Act. In general, Section 607.0901 regulates certain transactions between a corporation and an "interested shareholder," one who beneficially owns more than fifteen percent of the corporation's outstanding voting shares. The statute provides significant protection to minority shareholders by assuring that the transactions covered by the statute are either (a) procedurally fair (i.e., the transaction is approved by disinterested directors or disinterested shareholders) or (b) substantively fair (i.e., result in a fair price to the shareholders).

In general, Section 607.0902 focuses on the acquisition of "control shares" in an issuing public corporation. When control shares are acquired in a "control share acquisition," the shares do not have voting rights. Voting rights may be restored only if the bidder files an acquiring person statement and requests a shareholder meeting to vote on whether the bidder's shares should be accorded voting rights. Voting rights are restored only to the extent approved by the disinterested shareholders (which excludes both the bidder and management shareholders). Alternatively, the bidder's shares will have voting rights if the acquisition is approved by the target company's board of directors. As a result, mergers or other takeover or change in control attempts of us may be discouraged or prevented.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 20

------

[**Table of Contents**](#toc)

***We do not anticipate that we will pay any cash dividends in the foreseeable future.***

The current expectation is that for the foreseeable future, we will retain our future earnings to fund the development and growth of our business. Any payment of future dividends will be at the discretion of our Board of Directors and will depend on, among other things, our earnings, financial condition, capital requirements, level of indebtedness, statutory and contractual restrictions applying to the payment of dividends and other considerations that the Board of Directors deems relevant. Further, we are required to obtain prior approval for payment of dividends from our lenders as part of our financial covenants with both our secured term loan with AmeriState Bank and our revolving credit agreement with Cadence Bank. As a result, capital appreciation, if any, of our common stock will be the sole source of gain, if any, for any stockholders for the foreseeable future.

***Our Chinese joint venture, BOMAY, has a limited life and is subject to risk that it may not be renewed.***

We hold a 40% interest in BOMAY Electric Industries Company, Ltd. ("BOMAY"), which builds electrical systems for sale in China. The majority partner in this foreign joint venture is Baoji Oilfield Machinery Co., Ltd. (a subsidiary of China National Petroleum Corporation), who owns 51%. The remaining 9% is owned by AA Energies, Inc. Our joint venture, BOMAY, has a finite life that is set to terminate in 2028. The joint venture may be terminated earlier for valid business reasons including force majeure. In the event the joint venture is to be terminated, either party may acquire the other parties' interests and continue the operations of the joint venture. Additionally, the term of the joint venture may be extended upon agreement of all parties subject to approval from the relevant Chinese authority six months before expiration of the venture. At this time, Stabilis has no indication that the joint venture will not be extended; however, U.S. and Chinese political relations are strained and we can provide no assurance that such an extension will occur. The balance of our investment in BOMAY at December 31, 2025 was $11.9 million accounted for using the equity method of accounting and is subject to risk. See Note 6 of the Notes to Consolidated Financial Statements for further discussion of our investment in BOMAY.

**General Risk Factors**

***Weakened global macro-economic and geopolitical conditions may adversely affect our industry, ability to access capital, business and results of operations.***

Our overall performance depends in part on worldwide macro-economic and geopolitical conditions. The United States has experienced cyclical downturns from time to time in which economic activity was impacted by falling demand for a variety of goods and services, restricted credit, poor liquidity, reduced corporate profitability, volatility in credit, equity and foreign exchange markets, bankruptcies and overall uncertainty with respect to the economy. These global macro-economic conditions can suddenly arise and the full impact of such conditions can remain uncertain. In addition, geopolitical developments, such as existing and potential trade wars and other events beyond our control, such as the COVID-19 pandemic, can increase levels of political and economic unpredictability globally and increase the volatility of global financial markets. Weakened global macro-economic conditions could cause the demand for and price of our products to decrease. In addition, restricted credit conditions could limit our ability to access capital on favorable terms, if at all. A deterioration in the macro-economic could have a material adverse effect on our business, financial position, results of operations and liquidity.

***Changes in U.S. trade policy including tariffs may have a material adverse effect on our business and results of operations.***

Escalating tariffs and the potential for additional trade restrictions by the United States have increased uncertainty regarding future economic conditions and financial markets and have, in some cases, resulted in the imposition of retaliatory tariffs by foreign governments. Although the United States Supreme Court has ruled that certain tariffs imposed by the current presidential administration exceed presidential authority, the ultimate impact of U.S. tariffs and retaliatory trade measures on economic conditions remains uncertain. The Company sources all of its natural gas used as feedstock in its liquefaction facilities and purchases most of its LNG acquired from third parties from U.S. sources. Deliveries of LNG within Mexico can be sourced from both U.S. and from third parties within Mexico. While the majority of our sales are domestic, and LNG trade between the U.S. and Mexico is not currently subject to tariffs; such tariffs or other trade restrictions may lead to continuing uncertainty and volatility in U.S. and global economies which could reduce demand for LNG and our services or increase our operating costs. Although the extent of any such impact is uncertain, it could have a material adverse effect on our business, financial condition and results of operations.

***Increased inflation or periods of prolonged inflation may adversely impact the economy, our industry and results of operations.***

While we pass a significant portion of the cost of natural gas and transportation on to our customers, we are not able to pass through all costs. No assurances can be made about future price trends, and the ultimate extent and effects of these impacts are difficult to estimate; however, continued periods of increasing costs could adversely impact our future results and operating cash flows.

***The spread of a new contagious illness such as COVID-19 or resurgence of a COVID-19 variant, may adversely affect our business, operations and financial condition.***

The responses of governmental authorities and companies across the world to reduce the spread of the COVID-19 pandemic significantly reduced global economic activity. Various containment measures resulted in the slowing of economic growth, reduced demand for crude oil and natural gas and the disruption of global manufacturing supply chains. The impacts of a new contagious illness similar to COVID-19 or resurgence of a new COVID-19 variant remain unknown, but may include, among others:

• deterioration of worldwide, regional or national economic conditions and activity, which could create temporary or sustained low energy prices, or adversely affect global demand for LNG and natural gas;

• disruptions to our operations as a result of the potential health impact on our employees and crew, and on the workforces of our customers and business partners;

• potential reduced cash flows and financial condition, including potential liquidity constraints;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 21

------

[**Table of Contents**](#toc)

• negative impact on the credit worthiness of our customers and contractual counterparties;

• reduced access to capital, including the ability to refinance any existing obligations, as a result of any credit tightening generally or due to continued declines in global financial markets;

• disruptions, delays or cancellations in the construction of new LNG and natural gas projects, which could limit or adversely affect our ability to pursue future growth opportunities; and

• potential deterioration in the financial condition and ability to deliver LNG to our customers or joint venture partners, or attempts by customers or third parties to invoke force majeure contractual clauses as a result of delays or other disruptions.

Our facilities in George West, Texas and Port Allen, Louisiana, and our 40% interest in BOMAY are critical infrastructure and continued to operate during the COVID-19 pandemic. In the event another contagious illness similar to COVID-19 were to create another pandemic, we expect that we would continue to operate which means that we would be required to keep our employees who operate our facilities safe and minimize unnecessary risk of exposure to the illness. In the past, we have taken and continue to take certain precautionary measures to protect the continued safety and welfare of our employees who continue to work at our facilities which include the modification of certain business and workforce practices and work from home policies where appropriate. These measures were taken to prevent an outbreak at our facilities but may result in increased costs. Further, if a large number of our employees in those critical facilities were to contract a contagious disease at the same time, our operations could be adversely affected.

***A cyber incident could result in information theft, data corruption, operational disruption, operational delays and/or financial loss.***

Our business has become increasingly dependent on digital technologies to conduct day-to-day operations. We depend on digital technology to manage our operations and other business processes and to record financial, operating and other sensitive data. Our business partners, including vendors, customers and financial institutions, are also dependent on digital technology. Our technologies, systems networks, and those of our business partners, may become the target of cyber-attacks or information security breaches that could result in the disruption of our business operations. As cyber threats continue to evolve, we may be required to expend significant additional resources to continue to modify or enhance our protective measures or to investigate and remediate any cyber vulnerabilities. A cyber incident could lead to losses of sensitive information, critical infrastructure, personnel, or capabilities essential to our operations and could have a material adverse effect on our reputation, business, financial condition and results of operations.

***From time to time, we may be involved in legal proceedings and may experience unfavorable outcomes.***

In the future we may be subject to material legal proceedings in the course of our business, including, but not limited to, actions relating to contract disputes, business practices, intellectual property and other commercial and tax matters. Such legal proceedings may involve claims for substantial amounts of money or for other relief or might necessitate changes to our business or operations, and the defense of such actions may be both time consuming and expensive. Further, if any such proceedings were to result in an unfavorable outcome, it could have a material adverse effect on our business, financial position and results of operations.

***We will continue to incur costs and demands upon management as a result of complying with the laws and regulations affecting public companies.***

We incur and will continue to incur significant legal, accounting and other expenses, including costs associated with public company reporting requirements. We also incur costs associated with corporate governance requirements, including requirements under the Sarbanes-Oxley Act and rules and regulations promulgated by the SEC. These rules and regulations increase our legal and financial compliance costs and make some activities more time-consuming and costly. These rules and regulations may also make it difficult and expensive for us to obtain directors' and officers' liability insurance. As a result, it may be more difficult to attract and retain qualified individuals to serve on our Board of Directors or as executive officers, which may adversely affect investor confidence in us and could cause our business or stock price to suffer.

***If we fail to maintain proper and effective internal control over financial reporting, our operating results and our ability to operate our business could be harmed.***

Ensuring that we have adequate internal financial and accounting controls and procedures in place so that we can produce accurate financial statements on a timely basis is a costly and time-consuming effort that needs to be re-evaluated frequently. Internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements in accordance with U.S. GAAP.

In addition, we are required to be compliant with public company internal control requirements mandated under Section 302 and 906 of the Sarbanes-Oxley Act and we may become subject to the requirements of Section 404b of the Sarbanes-Oxley Act at some future date. We are implementing measures designed to improve our internal controls over financial reporting, including the hiring of accounting personnel and establishing new accounting and financial reporting procedures to establish an appropriate level of internal controls over financial reporting. Implementing any appropriate changes to our internal controls may distract our officers and employees, entail substantial costs to modify existing processes and take significant time to complete. These changes may not, however, be effective in maintaining the adequacy of our internal controls, and any failure to maintain that adequacy, or consequent inability to produce accurate financial statements on a timely basis, could increase operating costs and harm the business. In addition, investors' perceptions that our internal controls are inadequate or that we are unable to produce accurate financial statements on a timely basis may harm our stock price.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 22

------

[**Table of Contents**](#toc)

**ITEM 1B. UNRESOLVED STAFF COMMENTS**

None.

**ITEM *1C.* CYBERSECURITY**

**Risk management and strategy**

Our information technologies, system networks, information technology infrastructure, enterprise applications and financial reporting platforms are critical components of our operations. Our business operations rely on the secure processing, transmitting, collecting and storage of sensitive and confidential data. We recognize the importance of assessing, identifying and managing material risks associated with cybersecurity threats, as defined in Item *106*(a) of Regulation S-K.

Identifying and assessing cybersecurity risk is integrated into our overall risk management systems and processes. We partner with a third-party information technology company to address and manage each of the critical aspects of cybersecurity risk mitigation. The user aspect is addressed by deploying endpoint detection and response software on all endpoints, as well as extensive phishing testing and training for every user. This is further reinforced with additional monitoring to identify any aberrant activity within our network or software as a service ("SaaS") tools. A *3*-*2*-*1* backup strategy is used, resulting in a copy of all backup data offsite in the unlikely event that the disaster recovery plan is required. Our backup system is regularly confirmed through routine data recoveries, test recoveries and monitoring that alert to any unexpected errors or failures with the system.

In our business operation, we utilize various third-party service providers, including credit card companies, banks and financial platform providers, to process financial transactions and implement various software and information system processes. To that effect, we seek to engage reliable, reputable service providers that maintain cybersecurity programs.

We are not aware of any risks from cybersecurity threats, nor have we experienced any cybersecurity incidents, which have materially affected or are reasonably likely to materially affect our Company, including our business strategy, results of operations, or financial condition. See Item *1A.* "Risk Factors" in this Form *10*-K for discussion of risk factors.

**Governance**

*Cybersecurity is an important part of our risk management processes. Our Board of Directors holds oversight responsibility for the Company's strategy and risk management, including material risks related to cybersecurity threats. The Audit Committee of the Board of Directors oversees the management of systemic risks, including cybersecurity threats, in accordance with its charter.*

Our management, represented by senior management, leads the cybersecurity risk assessment and mitigation processes, along with information technology management staff and our *third*-party business technology partner. Our *third*-party business technology partner has over *22* years of experience in cybersecurity and information technology. Continuous monitoring and routine meetings are conducted in order for the Company's information technology team and *third*-party business technology firm to update senior management regarding prevention, detection, mitigation and remediation of any cybersecurity threats or incidents.

**ITEM 2. PROPERTIES**

The corporate headquarters of Stabilis are located at 11750 Katy Freeway, Suite 900, Houston, TX 77079. Stabilis or its subsidiaries currently own or lease the following principal properties:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **<u>Facility</u> <u>Location</u>** | **<u>Use</u>** | **<u>Size</u>** | **<u>Leased</u> <u>or</u> <u>Owned</u>** | **<u>Expiration</u> <u>of</u> <u>Lease</u>** |
| Houston, TX | Office | 8,583 sq. ft. | Leased | January 3, 2029 |
| Monterrey, Mexico | Office | 1,888 sq. ft. | Leased | August 14, 2027 |
| George West, TX | LNG Plant | 3,400 sq. ft. on 31.04 acres | Owned | N/A |
| Port Allen, LA | LNG Plant | 2,400 sq. ft. on 18.98 acres | Owned | N/A |

---

The Company also leases marine bunkering staging sites in Texas on a short term basis to support operations. We believe that our existing facilities are adequate for our operations and their locations allow us to efficiently serve our customers.

**ITEM 3. LEGAL PROCEEDINGS**

The Company becomes involved in various legal proceedings and claims in the normal course of business. In management's opinion, the ultimate resolution of these matters will not have a material effect on our financial position or results of operations.

See Note 12 of the Notes to Consolidated Financial Statements for a discussion of our commitments and contingencies and any outstanding legal matters.

**ITEM 4. MINE SAFETY DISCLOSURES**

None.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 23

------

[**Table of Contents**](#toc)

**PART II**

**ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES.**

**Market Information**

Our common stock trades under the symbol "SLNG" on The Nasdaq Stock Market LLC.

The Company did not declare or pay cash dividends on common shares in either fiscal year 2025 and 2024. The Company anticipates that, for the foreseeable future, it will retain any earnings for use in the operations of its business.

**Holders**

As of February 25, 2026, we had 20 holders of record of our common stock and 18,596,301 shares of common stock outstanding, based on information provided by our transfer agent.

**Equity Compensation Plan**

The information relating to the Company's equity compensation plans required by Item 5 is included in Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters contained herein.

**Item 6. RESERVED**

Not applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 24

------

[**Table of Contents**](#toc)

**ITEM 7. MANAGEMENT**'**S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS**

The following discussion should be read in conjunction with the consolidated financial statements and notes thereto included in Item 8. Financial Statements and Supplementary Data of this Form 10-K. Historical results and percentage relationships set forth in the consolidated statements of operations and cash flows, including trends that might appear, are not necessarily indicative of future operations or cash flows.

**OVERVIEW**

Stabilis Solutions, Inc. and its subsidiaries provide turnkey clean energy production, storage, transportation and fueling solutions using liquefied natural gas ("LNG") to multiple end markets. We have safely delivered over 580 million gallons of LNG through more than 60,000 truck deliveries during our 22 year operating history, which we believe makes us one of the largest and most experienced small-scale LNG providers in North America. We provide LNG solutions to customers in diverse end markets, including aerospace, agriculture, industrial, marine bunkering, mining, oil and gas, pipeline, remote power and utility markets. LNG can be used to replace a variety of fuels, including distillate fuel oil, such as diesel and marine gas oil, and propane, among others, to provide environmental and economic benefits. LNG can also be used to deliver natural gas to locations where pipeline service is unavailable, has been interrupted, or needs to be supplemented. Increasingly, LNG is being utilized as a transportation fuel in the marine industry and as a propellant in the private rocket launch sector. Additionally, LNG can be used to generate electrical power for data centers where the data center either does not have adequate access to the electrical grid, a gas pipeline, or as a redundant source of power. We believe that these fuel markets are large and provide significant opportunities for LNG usage. We believe that LNG provides an important balance between environmental sustainability, security and accessibility, and economic viability when compared to both renewables and other traditional hydrocarbon-based fuels and will play a key role in the energy transition.

The Company also builds power and control systems for the energy industry in China through its 40% owned Chinese joint venture, BOMAY. BOMAY is accounted for under the equity method of accounting.

The Company generates revenue by selling and delivering LNG to our customers, renting cryogenic equipment and providing engineering and field support services. We sell our products and services separately or as a bundle depending on the customer's needs. Pricing depends on market pricing for natural gas and competing fuel sources (such as diesel, fuel oil, and propane among others), as well as the customer's purchased volume, contract duration and credit profile.

*LNG Production and Sales*—Stabilis builds and operates cryogenic natural gas processing facilities, called "liquefiers," which convert natural gas into LNG through a purification and multiple stage cooling process. We currently own and operate a liquefier that can produce up to 100,000 LNG gallons per day in George West, Texas and a liquefier that can produce up to 30,000 LNG gallons per day in Port Allen, Louisiana. The Company continues to seek expansion of its own liquefaction capacity as described in "*Current Events and Expansion Efforts"* below. We also purchase LNG from third-party production sources which allows us to support customers in markets where we do not own liquefiers. We make the determination of LNG supply sources based on the cost of LNG, the transportation cost to deliver to regional customer locations, and the reliability of the supply source. Revenues earned from the production and sales of LNG are included within LNG Product revenue.

*Transportation and Logistics Services*—Stabilis offers our customers a "virtual natural gas pipeline" by providing turnkey LNG transportation and logistics services in North America. We deliver LNG to our customers' work sites from both our own production facilities and our network of approximately 31 third-party production sources located throughout North America. We own a fleet of cryogenic trailers to transport and deliver LNG. We also outsource similar equipment and transportation services for LNG from qualified third-party providers as required to support our customer base. Revenues earned from the transportation and logistical services of LNG to our customers are included within LNG Product revenue.

*Cryogenic Equipment Rental*—Stabilis operates a fleet of over 170 mobile LNG storage and vaporization assets, including: transportation trailers, electric and gas-fired vaporizers, ambient vaporizers, storage tanks, and mobile vehicle fuelers. We also own several stationary storage and regasification assets. We believe this is one of the largest fleets of small-scale LNG equipment in North America. Our fleet consists primarily of trailer-mounted mobile assets, making delivery to and between customer locations more efficient. We deploy these assets on job sites to provide our customers with the equipment required to transport, store, and consume LNG in their operations. Revenues earned from cryogenic equipment rental are included within Rental revenue.

*Engineering and Field Support Services*—Stabilis has experience in the safe, cost effective, and reliable use of LNG in multiple customer applications. We have also developed many processes and procedures that we believe improve our customers' use of LNG in their operations. Our engineers help our customers design and integrate LNG into their operations and our field service technicians help our customers mobilize, commission and reliably operate on the job site. Revenues earned from engineering and field support services are included within Service revenue.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 25

------

[**Table of Contents**](#toc)

***Current Events and Expansion Efforts***

***Conclusion of Two, Multi-year LNG Supply Contracts***

During the fourth quarter of 2025, two multi-year customer contracts concluded in accordance with their terms. The completed contracts were for temporary remote power in Louisiana, and the Company's truck-to-vessel LNG marine bunkering services in Galveston, Texas. The marine customer elected not to extend the agreement due to the unavailability of suitable Jones Act-compliant LNG bunker vessels during the contemplated extension period. The two contracts accounted for approximately 19% and 32% of 2025 revenues, respectively.

***Proposed Galveston LNG Liquefaction Facility***

In 2025, the Company executed two, ten-year LNG supply bunkering agreements, commencing in 2027, with two global marine cruise vessel operators to supply LNG and to anchor development of a new 350,000 gallon-per-day, waterfront LNG liquefaction facility in Galveston, Texas. There are conditions precedent to the LNG supply bunkering agreements which include the Company successfully finalizing project financing by the first quarter 2026 and completing construction on the proposed Galveston LNG liquefaction facility by the second quarter 2028. The Company continues to advance its proposed Galveston liquefaction facility, along with a Jones Act-compliant LNG bunkering vessel, toward an expected Final Investment Decision ("FID"). The Company has secured customer commitments for approximately 56% of the project's proposed planned 350,000 gallons-per-day ("gpd") capacity and is engaged in late-stage discussions with multiple potential customers to secure the remaining available offtake. The total capital required for the project is estimated at $350 million to $400 million. Financing for the project is progressing with counterparties conducting detailed due diligence and active negotiations on definitive documentation and key commercial terms. If successful, the proposed Galveston LNG liquefaction facility is expected to be strategically located to continue to support and expand the Company's marine bunkering services to additional marine markets. With the construction of the facility, the Company also plans to commission a dedicated Jones Act-compliant LNG bunkering vessel to serve the Port of Galveston, Port of Houston and surrounding Gulf Coast markets. This vessel will transport LNG from the facility directly to customer vessels. Together, the new LNG facility and new bunkering vessel are expected to create a fully integrated, last-mile LNG delivery solution for customers.

During the fourth quarter 2025, the Company entered into a time charter agreement with Seaspan Energy Ltd. for the Garibaldi for a period of two years commencing in 2026. The Company has the option to extend the term of the time charter for an additional one year and an option to purchase the Garibaldi during the term of the time charter.

***Multi-year On-site Power Generation for a Data Center***

In February 2026, the Company executed a multi-year take-or-pay contract to supply LNG for behind-the-meter power generation for a provider of remote and temporary power generation at a data center. LNG deliveries are expected to commence during the first quarter of 2027 and continue through the first quarter of 2029. Total revenue under the initial term of the contract is estimated to approximately $200 million. This contract represents the Company's first-ever contract in support of data center behind-the-meter power generation, consistent with its strategic focus on growing, high-value vertical markets.

 ***U.S. Department of Energy ("DOE") Approval to Export LNG***

In the third quarter of 2022, Stabilis received authorization from the DOE to export domestically produced LNG to all free trade ("FTA") and non-free trade ("non-FTA") countries, for up to 51.75 billion cubic feet per year (or approximately 1.0 MTPA) of natural gas equivalent. The authorization is for shipments of LNG and is for a term of 28 years with a remaining term of approximately 25 years under this authorization. In the third quarter of 2024, the Company met the initial time requirement to initiate exports to non-FTA countries. In 2024, we delivered LNG to Europe under this authorization. For exports to FTA countries, the Company has five years from the date it received the authorization with which to initiate exportation of LNG.

The DOE authorization received during the third quarter of 2022 supplements the Company's other existing import and export license from the DOE. Under this license, the Company is authorized to import and export LNG from and to Canada and Mexico, via truck. Additionally, effective September 2024, the Company can import LNG, by vessel, from various international sources to any LNG import terminal in the United States.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 26

------

[**Table of Contents**](#toc)

**RESULTS OF OPERATIONS**

The comparative tables below reflect our consolidated operating results for the year ended December 31, 2025 (the "Current Year") as compared to the year ended December 31, 2024 (the "Prior Year") (amounts in thousands, except for percentages).

---

| | | | | |
|:---|:---|:---|:---|:---|
| ***Consolidated Results*** | **Year Ended December 31,** | **Year Ended December 31,** |  |  |
|  | **2025** | **2024** | **$ Change** | **% Change** |
| **Revenues:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; LNG Product | $57213 | $57351 | $(138) | (0.2)% |
| *Increase / (decrease) in gallons delivered* | *(6164)* |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Rental | 5349 | 7273 | (1924) | (26.5) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Service | 5016 | 7436 | (2420) | (32.5) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 667 | 1233 | (566) | (45.9) |
| Total revenues | 68245 | 73293 | (5048) | (6.9) |
| **Operating expenses:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cost of revenues | 50229 | 52069 | (1840) | (3.5) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Change in unrealized gain on natural gas derivatives | (24) | (310) | 286 | (92.3) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Selling, general and administrative expenses | 13189 | 11763 | 1426 | 12.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss (gain) from disposal of fixed assets | 24 | (761) | 785 | N/A |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation expense | 7345 | 7146 | 199 | 2.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total operating expenses | 70763 | 69907 | 856 | 1.2 |
| **Income (loss) from operations before equity income** | (2518) | 3386 | (5904) | N/A |
| Net equity income from foreign joint venture operations | 1242 | 1564 | (322) | (20.6) |
| Income (loss) from operations | (1276) | 4950 | (6226) | (125.8) |
| **Other income (expense):** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest income, net | 42 | 112 | (70) | (62.5) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other income (expense), net | (66) | 22 | (88) | N/A |
| Total other income (expense) | (24) | 134 | (158) | (117.9) |
| Net income (loss) before income tax expense | (1300) | 5084 | (6384) | N/A |
| **Income tax expense** | 54 | 485 | (431) | (88.9) |
| Net income (loss) | $(1354) | $4599 | $(5953) | N/A |

---

***Revenue***

During the Current Year revenues decreased $5.0 million, or 6.9%, compared to the Prior Year. The decrease in revenues primarily related to:

• Decreased rental, service and other revenues during the Current Year compared to the Prior Year due to customers requiring less rental equipment within existing contracts as well as other contracts concluding in accordance with their terms within the Current Year, resulting in a decrease in revenue of $4.9 million;

• Decreased LNG delivered to customers of 6.1 million gallons during the Current Year compared to the Prior Year, resulting in a decrease in revenue of $3.5 million; and

• Unfavorable customer mix during the Current Year compared to the Prior Year resulted in a decrease in revenue of $0.9 million;

• The above decreases were partially offset by an increase in natural gas prices during the Current Year compared to the Prior Year, resulting in an increase in revenue of $3.9 million; and

• Increase in revenues from minimum take-or-pay contracts of $0.4 million.

***Operating Expenses***

*Costs of revenues.* Cost of revenues decreased $1.8 million, or 3.5%, in the Current Year compared to the Prior Year. As a percentage of revenue, these costs were 73.6% and 71.0% in the Current Year and the Prior Year, respectively. The decrease in cost of revenues was attributable to:

• Decreased LNG delivered to customers of 6.1 million gallons during the Current Year compared to the Prior Year, resulting in decreased costs of revenues of $2.4 million;

• Decrease in rental, service and other costs of $2.2 million during the Current Year compared to the Prior Year primarily related to reduced travel and labor costs;

• Decreased net liquefaction and transportation costs of $0.6 million during the Current Year compared to the Prior Year; and

• Lower take-or-pay costs in the Current Year compared to the Prior Year, resulting in decreased cost of revenues of $0.1 million.

• The above decreases were partially offset by higher average natural gas pricing in the Current Year compared to the Prior Year, resulting in increased costs of revenues of $3.5 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 27

------

[**Table of Contents**](#toc)

*Change in unrealized loss (gain) on natural gas derivatives.* The Company incurred a gain of $24 thousand on the change in unrealized gain associated with the Company's natural gas derivatives in the Current Year compared to a gain of $0.3 million in the Prior Year. The gains in both periods were due to offsetting amortization and the maturity of natural gas derivatives.

*Selling, general and administrative*. Selling, general and administrative expense increased $1.4 million, or 12.1%, during the Current Year as compared to the Prior Year. The increase is primarily attributable to Mr. Ballard's severance related expenses of $2.1 million and higher office lease cost in the Current Year, partially offset by lower compensation expense.

*Loss (gain) on the disposal of fixed assets*. The Company recorded a loss on the disposal of fixed assets of $24 thousand in the Current Year primarily related to an asset disposition, partially offset by a gain from the disposition of a damaged trailer. Proceeds of $0.2 million were received on the disposition of the damaged trailer. In the Prior Year, a gain of $0.8 million on the disposal of assets was recorded, in which proceeds of $0.8 million were received on the sale of certain assets, consisting of vaporizers and storage tanks.

*Depreciation*. Depreciation expense in the Current Year increased $0.2 million compared to the Prior Year primarily due to new mobile assets and other capital expenditures in the Current Year. The increase was partially offset by other assets reaching the end of their depreciable lives.

*Net Equity Income From Foreign Joint Ventures' Operations.* Income from investments in foreign joint ventures decreased by $0.3 million, or 20.6%, in the Current Year compared to the Prior Year due to lower net profits from our China joint venture.

***Other Income (Expense)***

*Interest income (expense), net.* Interest income, net was $42 thousand in the Current Year compared to $0.1 million the Prior Year. In both periods, interest income related to interest earned on the Company's cash balance. Interest income was slightly lower in the Current Year due to lower cash balances in the Current Year and a lower average interest rate on cash balances in the Current Year.

*Other income (expense).* Change in other expense was primarily related to miscellaneous and foreign exchange transactions.

*Income tax expense.* The Company incurred state and foreign income tax expense of $0.1 million during the Current Year primarily related to state income taxes and foreign taxes paid in connection with the cash dividend received from our BOMAY joint venture. The Company incurred state income and foreign tax expense of $0.5 million in the Prior Year. No U.S. federal income tax expense was recorded for the Current Year or Prior Year as the Company had sufficient deferred tax assets to offset any U.S. federal taxes which were fully offset by a change in the Company's valuation allowance on utilized deferred tax assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 28

------

[**Table of Contents**](#toc)

**SEASONALITY AND INFLATION**

**Seasonality**

We did not experience significant variations in volume of LNG delivered to our customers resulting from seasonal variations during 2025. However, our revenues are susceptible to variations due to changes in the price of natural gas. The price of natural gas can fluctuate at any time during the year due to isolated factors, but generally, natural gas prices tend to be higher in peak winter and peak summer months when heating and cooling demand is seasonally higher.

**Inflation**

The Company continued to experience inflationary pressure during 2025. Specifically, costs for fuel, repairs, maintenance, electricity, wages for skilled labor and insurance continue to increase. We have responded with increasing our pricing to our customers. While we pass a significant portion of the cost of natural gas and transportation on to our customers, we are not able to pass through all costs. No assurances can be made about future price trends; the ultimate extent and effects of these impacts are difficult to estimate; however, continued periods of increasing costs could adversely impact our future results and operating cash flows.

**LIQUIDITY AND CAPITAL RESOURCES**

The Company's principal sources of liquidity in the Current Year have consisted of cash provided by our operations, cash on hand, and distributions from our BOMAY joint venture. The Company used its liquidity to invest in fixed assets to support growth as well as to pay interest and principal amounts outstanding under our debt agreements.

On March 27, 2025 the Company, entered into a Modification Agreement to the existing Loan Agreement with Cadence Bank. Under the Agreement the $10.0 million Revolving Credit Facility maturity date was extended to June 9, 2028. Additionally, the Agreement amended the Fixed Charge Coverage Ratio terms primarily related to the inclusion of excess cash. The three-year Revolving Credit Facility, as amended, contains a maximum aggregate amount of $10.0 million, subject to a borrowing base of 80% of eligible accounts receivable. The Company may request an increase in the maximum aggregate amount under the Revolving Credit Facility by up to $5.0 million, subject to the approval of Cadence Bank. All borrowings under the Revolving Credit Facility are secured by the Borrowers' accounts receivable and deposit accounts. Borrowings under the Revolving Credit Facility incur interest at the Prime Rate published by the Wall Street Journal. Any unused portion is subject to a quarterly unused commitment fee of 0.5% per annum. As of December 31, 2025, no amounts have been drawn under the Revolving Credit Facility. The Revolving Credit Facility contains various restrictions and covenants. As of December 31, 2025, the Company was in compliance with all its covenants related to the Revolving Credit Facility.

As of December 31, 2025, we had $7.5 million in cash and cash equivalents on hand and $8.8 million in outstanding debt (net of debt issuance costs) and lease obligations (of which $2.3 million is due in 2026). The Company has total availability under the Revolving Credit Facility and the AmeriState Secured Term Loan Facility of $2.7 million at December 31, 2025. Further, the Company had made no draw downs on its Revolving Credit Facility or Secured Term Loan facility during the year ended December 31, 2025.

The Company is subject to substantial business risks and uncertainties inherent in the LNG industry and there is no assurance that the Company will be able to generate sufficient cash flows in the future to sustain itself or to support future growth. Management believes the business will generate sufficient cash flows from its operations along with availability under the Company's debt agreements to fund its ongoing business for the next twelve months. While we believe we have sufficient liquidity and capital resources to fund our ongoing operations and repay our debt, we will require additional capital to fund our expansion. Our current expansion efforts include the construction of the proposed Galveston LNG liquefaction facility and ramp up of operations to service our multi-year on-site power generation customer at a data center beginning in 2027 which will require construction expenditures, additional equipment and rolling stock and near-term working capital as the Company ramps up its operations during 2026.

As of December 31, 2025, the Company was in compliance with all financial covenants under its debt agreements, including its minimum consolidated debt service ratio under its AmeriSate Secured Term Loan Facility. The Company's efforts to expand its business include anticipated significant capital expenditures, the successful deployment of a marine bunkering vessel with a time charter that commences in 2026, and a successful financing transaction associated with the proposed Galveston LNG liquefaction facility, all of which are yet to occur. The Company believes it is probable that it will continue to maintain compliance with its covenants, however, in the event the Company is unable to maintain minimum profitability in accordance with its forecast and historical trends, it is reasonably possible that the Company could fail to maintain compliance with its consolidated debt service ratio which, if not cured or waived, would give AmeriState Bank the right to accelerate repayment of outstanding borrowings under the AmeriState Secured Term Loan Facility, which totaled $7.2 million as of December 31, 2025. Such acceleration could adversely effect our liquidity, our ability to continue expansion efforts and continue normal operations.

We will continue to monitor covenant compliance closely and evaluate additional actions which may include reducing discretionary capital expenditures, delaying certain growth initiatives, or seeking alternative sources of financing if needed. The Company believes that its relations with its lenders are good and that a waiver could be obtained in the event a violation occurred; however, there can be no assurance that additional actions taken by the Company, if required, could prevent a possible covenant violation or that the Company would be successful in obtaining a covenant waiver in the event a covenant violation occurred.

**Cash Flows**

Cash flows provided by (used in) our operating, investing and financing activities are summarized below (in thousands):

---

| | | |
|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2025** | **2024** |
| **Net cash provided by (used in):** |  |  |
| Operating activities | $8603 | $13693 |
| Investing activities | (7704) | (8120) |
| Financing activities | (2446) | (1914) |
| Effect of exchange rate changes on cash | 19 | (46) |
| Net increase (decrease) in cash and cash equivalents | (1528) | 3613 |
| **Cash and cash equivalents, beginning of year** | 8987 | 5374 |
| **Cash and cash equivalents, end of year** | $7459 | $8987 |

---

*Operating Activities*

Net cash provided by operating activities totaled $8.6 million and $13.7 million for the twelve months ended December 31, 2025 and 2024, respectively. The decrease in net cash provided by operating activities of $5.1 million as compared to the Prior Year was primarily attributable to the net loss incurred in the Current Year compared to net income recognized in the Prior Year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 29

------

[**Table of Contents**](#toc)

*Investing Activities*

Net cash used in investing activities totaled $7.7 million and $8.1 million for the twelve months ended December 31, 2025 and 2024, respectively. In both the Current Year and the Prior Year, cash used in investing was primarily for investment in growth initiatives. During the Current Year, investments primarily consisted of expansion efforts related to the proposed Galveston LNG liquefaction facility and Jones Act-compliant marine bunkering vessel. In the Prior Year, investments were made for the acquisition of liquefaction assets and their subsequent deployment. During the years ended December 31, 2025 and 2024, proceeds received from the disposal of assets were $0.2 million and $0.8 million, respectively.

*Financing Activities*

Net cash used in financing activities totaled $2.4 million for the twelve months ended December 31, 2025 compared to $1.9 million for 2024. Cash used in financing activities in both years was primarily attributable to the repayment of debt. The increase in cash used by financing activities compared to the Prior Year is primarily due to increased principal payments on the AmeriState loan in the Current Year compared to Prior Year. No draws on the AmeriState Bank or Revolving Credit Facility were made in the Current Year.

**Future Cash Requirements**

*Uses of Liquidity and Capital Resources*

We require cash to fund our operating expenses and working capital requirements, including costs associated with fuel sales, capital expenditures, debt repayments, equipment purchases, maintenance of LNG production facilities, mergers and acquisitions (if any), pursuing market expansion, supporting sales and marketing activities and other general corporate purposes. Our current expansion efforts include the construction of the proposed Galveston LNG liquefaction facility and Jones Act-compliant marine bunkering vessel and the ramp up of operations for the multi-year on-site power generation customer for a data center all beginning in 2027 (discussed below). We may elect to pursue additional financing activities such as refinancing existing debt, obtaining new debt, or debt or equity offerings to provide flexibility with our cash management. Certain of these alternatives may require the consent of current lenders or stockholders, and there is no assurance that we will be able to execute any of these alternatives on acceptable terms or at all.

*Capital Expenditures*

Capital expenditures for the year ended December 31, 2025 were $8.1 million and primarily related to the preliminary work and ordering long lead time items related to the Company's proposed Galveston LNG liquefaction facility, refurbishments and upgrades to existing assets and rolling stock. Other future capital expenditures will be dependent upon business needs, value-adding investment opportunities, as well as the availability of additional capital at favorable terms which is difficult to predict. At December 31, 2025, the Company had open purchase orders and commitments related to capital expenditures of approximately $3.8 million. However, the Company anticipates future additional expenditures related to its proposed Galveston LNG liquefaction facility and Jones Act-compliant marine bunkering vessel and its multi-year on-site power generation contract for a data center. See additional discussion regarding the Company's potential expansion efforts below.

*Proposed Galveston LNG Liquefaction Facility*

The Company continues to advance its proposed Galveston liquefaction facility along with a Jones Act-compliant LNG bunkering vessel toward an expected FID. The Company has secured customer commitments for approximately 56% of the project's proposed 350,000 gallons-per-day capacity and is engaged in late-stage discussions with multiple potential customers to secure the remaining available offtake.

Additional investment in the Company's proposed Galveston liquefaction facility is estimated at $350 million to $400 million. The financing and structure of the proposed Galveston liquefaction facility is anticipated to be in the form of a separate entity with a combination of third-party equity and debt that would be nonrecourse to the Company. The financing is progressing with counterparties conducting detailed due diligence and active negotiations on definitive documentation and key commercial terms. The Company does not intend to commit to the use of significant additional funds related to the proposed Galveston LNG liquefaction facility without securing the financing. However, there is no guarantee that additional financing will be available or available at terms that would be beneficial to the Company.

The Company entered into a time charter agreement for the time charter of a liquefied natural gas bunkering vessel, the Garibaldi, for a period of two years commencing in 2026. The time charter represents an operating lease and includes an option to lease the vessel for an additional year and/or purchase the Garibaldi at the conclusion of the initial or extended term.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Multi-year, On-site Power Generation for a Data Center*

In February 2026, the Company executed a multi-year take-or-pay contract to supply LNG for a power generation behind-the-meter remote and temporary power generation and energy services at a data center. LNG deliveries are expected to commence during the first quarter of 2027 and continue through the first quarter of 2029. Total revenue under the initial term of the contract is estimated to be approximately $200 million. This contract represents the Company's first contract in support of data center behind-the-meter power generation, consistent with its strategic focus on growing, high-value vertical markets. The supply agreement will require investment of approximately $25.0 million in capital additions and near term working capital needed to fund the start-up of the project which will be funded by customer prepayments. The Company received a prepayment of $15.0 million during February 2026, and expects an additional $10.0 million during the next six months. The prepayment received is restricted as to use for equipment, commissioning and working capital requirements for this project; however the Company will not be required to repay any of the prepayment at conclusion of the contract.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 30

------

[**Table of Contents**](#toc)

*Debt Level and Debt Compliance*

We had total indebtedness, excluding leases, of $7.9 million ($7.9 million, net of debt issuance costs of $0.2 million) as of December 31, 2025. Expected maturities excluding debt issuance costs at December 31, 2025 are as follows (in thousands).

---

| | |
|:---|:---|
| 2026 | 1847 |
| 2027 | 1188 |
| 2028 | 1303 |
| 2029 | 1429 |
| 2030 | 1567 |
| Thereafter | 555 |
| Total long-term debt, including current maturities and excluding debt issuance costs | $7889 |

---

We expect our total interest payment obligations relating to the above indebtedness to be approximately $0.5 million for the year ending December 31, 2026. Certain of the agreements governing our outstanding debt, which are discussed in Note 8 of our Consolidated Financial Statements, require compliance with certain financial covenants. As of December 31, 2025, we were in compliance with all of these covenants.

**CONTRACTUAL OBLIGATIONS**

We are committed to make cash payments in the future pursuant to certain of our contracts. The following table summarizes certain contractual obligations in place as of December 31, 2025 (in thousands):

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Payments Due By Period** | **Payments Due By Period** | **Payments Due By Period** | **Payments Due By Period** | **Payments Due By Period** | **Payments Due By Period** | **Payments Due By Period** |
|  | **Total** | **2026** | **2027** | **2028** | **2029** | **2030** | **Thereafter** |
| Term Loan to AmeriState Bank <sup>(1)</sup> | $7164 | $1122 | $1188 | $1303 | $1429 | $1567 | $555 |
| Interest - AmeriState Bank <sup>(1)</sup> | 1848 | 533 | 509 | 395 | 269 | 131 | 11 |
| Finance Lease Obligations | 220 | 220 |  |  |  |  |  |
| Operating Lease Obligations | 922 | 197 | 368 | 354 | 3 |  |  |
| Insurance note payable | 725 | 725 |  |  |  |  |  |
| Total | $10879 | $2797 | $2065 | $2052 | $1701 | $1698 | $566 |

---

------

*(1)* *Obligation with AmeriState Bank to provide for an advancing term loan facility for working capital needs for our LNG liquefaction plant in Texas in the aggregate principal amount of up to $10.0 million. The term loan facility matures on April 8, 2031 and bears interest at 5.75% per annum through April 8, 2026, and changes to a variable interest rate of the U.S. prime lending rate plus 2.5% per annum thereafter. The above table estimates interest based on the most recent U.S. prime lending rate of 6.75%.*

See additional discussion of our debt and lease obligations in Notes 8 and 9 of the Notes to Consolidated Financial Statements.

**Contingencies**

In the normal course of our business, we become involved in various litigation matters. In addition, from time to time we are involved in tax and other disputes with various government agencies. Management has used estimates in determining our potential exposure to these matters and has recorded reserves in our financial statements related thereto as appropriate. It is possible that a change in estimate related to these exposures could occur, but we do not expect such changes in the estimated costs would have a material effect on our business, consolidated financial position or results of operations. See Note 12 to the Notes to Consolidated Financial Statements for further discussion of our contingencies.

**Off-Balance Sheet Arrangements**

As of December 31, 2025, we had no transactions that met the definition of off-balance sheet arrangements that have or are reasonably likely to have a material current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, cash requirements or capital resources.

**NEW ACCOUNTING STANDARDS**

See Note 1 of the Notes to Consolidated Financial Statements for further information related to new accounting standards.

**CRITICAL ACCOUNTING POLICIES AND ESTIMATES**

The discussion and analysis of our financial condition and results of operations are based on our consolidated financial statements, which have been prepared in accordance with U.S. GAAP. The preparation of these consolidated financial statements requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities known to exist at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Critical accounting policies are those policies that the Company believes are the most important to the portrayal of the Company's financial condition and results, and require difficult, subjective, or complex judgments, often as a result of the need to make estimates about the effects of matters that are inherently uncertain. We evaluate our estimates on an ongoing basis, based on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. There can be no assurance that actual results will not differ from those estimates. The Company has identified the following critical accounting policies as they require significant judgments, estimates or are inherently complex.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 31

------

[**Table of Contents**](#toc)

***Revenue Recognition***

The Company recognizes revenue from our contracts in accordance with Accounting Standards Codification ("ASC"), Topic 606 "Revenue from Contracts with Customers" ("Topic 606"). Topic 606 requires entities to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Our contracts may contain multiple performance obligations dependent upon the customer.

The Company recognizes revenue when it satisfies a performance obligation by transferring control over a product or service to a customer. Revenue associated with the sale of LNG is recognized at the point in time when the customer obtains control of the asset. In evaluating when a customer has control of the asset, the Company primarily considers whether the transfer of legal title and physical delivery has occurred, whether the customer has significant risks and rewards of ownership, and whether the customer accepted delivery and a right of payment exists. Revenues from the providing of services, transportation and equipment to customers is recognized as the service is performed. Amounts are billed upon completion of service or transfer of a product and are generally due within 30 days from receipt of the invoice. Revenue excludes any sales incentives and amounts collected on behalf of third parties. Revenues from contracts with customers are disaggregated into (1) LNG Product (2) rental (3) service and (4) other.

*LNG Product revenues:*

LNG Product revenues represent the sale of LNG from both produced and purchased sources as well as the transportation performed to deliver the LNG to our customer location. LNG Product revenues are recognized upon delivery of the LNG to the customer, at which point the customer controls the product and the Company has an unconditional right to payment. The Company acts as a principal when using third party transportation companies and therefore recognizes the gross revenue for the supply of LNG. The Company does not differentiate between the revenue from the sale of LNG production and purchased LNG as the criteria for revenue recognition are identical. Some of our contracts contain minimum take-or-pay amounts where a customer has agreed to source a minimum volume of LNG under the contract. Take or pay revenues are only recognized when the customer has failed to take the minimum contracted volumes upon completion of the time period specified within the contract and the Company has the unconditional right to receive payment for the take or pay amount. LNG product sales agreements may include both fixed and variable fees per gallon, but is representative of the stand-alone selling price for LNG at the time the contract was negotiated. We have concluded that the variable LNG fees meet the exception for allocating variable consideration to specific parts of the contract. As such, the variable consideration for these contracts is allocated to each distinct gallon of LNG and recognized when that distinct gallon of LNG is delivered to the customer. Certain of our sales contracts contain provisions that may meet the criteria of a derivative in the event delivery is not made. These contracts are accounted for under the normal purchase normal sales exclusion under U.S. GAAP and are not measured at fair value each reporting period. Our LNG contracts are generally one to 24 months in duration.

&nbsp;&nbsp;&nbsp;&nbsp;*Rental revenues*

Rental revenues are generated from the rental of cryogenic equipment to our customers. Rental revenues are not dependent upon the gallons delivered but based upon day rates or monthly rates for the use of equipment as specifically established within the contract and are disaggregated from LNG Product revenues. Revenues related to rental of equipment are recognized under Topic 606 and not ASC 842: Leases, as the Company maintains control of the equipment that the customer uses and can replace the rented equipment with similar equipment should the rented equipment become inoperable or the Company chooses to replace the equipment for maintenance purposes. Revenue is recognized as the rental period is completed and for periods that cross month end, revenue is recognized for the portion of the rental period that has been completed to date. Performance obligations for rental revenue are considered to be satisfied as the rental period is completed based upon the terms of the related contract. The stated rental rates within each contract are representative of the stand-alone rental rates at the time the contract was negotiated.

*Service revenues* 

Service revenues are generated from engineering and field support services and represent the human resources provided to the customer to support the use of LNG at the customer's job site. These include support and costs for mobilization and demobilization of equipment at customer sites as well as onsite technical support while customers are consuming LNG. Service revenues are not dependent upon the gallons delivered or rental period but based upon the specific contractual terms and can be based on an event (i.e. mobilization or demobilization) or an hourly rate as specifically established within the contract and are disaggregated from LNG Product revenues and Rental revenues. Service revenue is recognized as the event is completed or work is done. The stated hourly labor rates in each contract are representative of the stand-alone hourly rates at the time the contract was negotiated. Certain of our contracts may include rental or services that may vary upon the customer demands at stated rates within the contract and are satisfied as the work is authorized by the customer and performed by the Company.

Other revenues are items that, due to their nature, are disaggregated from the categories mentioned above such as expenses incurred by the Company on behalf of the customer that we contractually rebill to our customer on a cost-plus basis.

*Variable and other Revenue Components*

Certain of our contracts may include rental or services that may vary upon the customer demands at stated rates within the contract and are satisfied as the work is authorized by the customer and performed by the Company. LNG product sales agreements may include both fixed and variable fees per gallon of LNG, but is representative of the stand-alone selling price for LNG at the time the contract is negotiated. We have concluded that the variable LNG fees meet the exception for allocating variable consideration to specific parts of the contract. As such, the variable consideration for these contracts is allocated to each distinct gallon of LNG and recognized when that distinct gallon of LNG is delivered to the customer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 32

------

[**Table of Contents**](#toc)

Taxes assessed by a governmental authority that are directly imposed on revenue-producing transactions between the Company and its customers, such as sales, use and value-added taxes, are excluded from revenue.

***Impairment of Long-Lived Assets and Goodwill***

The determination and calculation of impairment requires significant judgment regarding estimates of fair value and the projection of future cash flows.

LNG liquefaction facilities, and other long-lived assets held and used by the Company are reviewed periodically for potential impairment whenever events or changes in circumstances indicate that a particular asset's carrying value may not be recoverable. Recoverability generally is determined by comparing the carrying value for the asset to the expected undiscounted future cash flows of the asset. If the carrying value of the asset is not recoverable, the amount of impairment loss is measured as the excess, if any, of the carrying value of the asset over its estimated fair value. The estimated undiscounted future cash flows are based on projections of future operating results; these projections contain estimates of the value of future contracts that have not yet been obtained, future commodity pricing and our future cost structure, among others. Projections of future operating results and cash flows may vary significantly from actual results. Management reviews its estimates of cash flows on an ongoing basis using historical experience, business plans, overall market conditions, and other factors.

Goodwill represents the excess of the cost of an acquired entity over the fair value of the identifiable assets acquired less liabilities assumed. Intangible assets are assets that lack physical substance (excluding financial assets). Goodwill acquired in a business combination and intangible assets with indefinite useful lives are not amortized, and intangible assets with finite useful lives are amortized. Goodwill and intangible assets not subject to amortization are tested for impairment annually or more frequently if events or changes in circumstances indicate the assets carrying value may not be recoverable. We currently test goodwill for impairment annually in the third quarter unless we determine that a triggering event has occurred requiring an earlier test. We completed our annual assessment of goodwill during 2025 and 2024, and determined no impairment of goodwill was warranted.

***Income Taxes***

The calculation of income taxes is inherently complex. Additionally, the determination of the adequacy of any needed valuation allowance requires significant judgment. Deferred income taxes are accounted for under the asset-and-liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is recorded when it is more likely than not that the deferred tax asset will not be realized.

The Company recognizes the effect of income tax positions only if those positions are more likely than not to be sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Company records interest related to unrecognized tax benefits in interest expense and penalties in selling, general and administrative expenses.

***Fair Value Measurements***

The determination of fair value requires significant judgements and estimates by management. The Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. The Company determines fair value based on assumptions that market participants would use in pricing an asset or liability in the principal or most advantageous market. When considering market participant assumptions in the fair value measurements, the fair value hierarchy distinguishes between observable and unobservable inputs, which are categorized in one of the following levels in accordance with U.S. GAAP:

Level 1 Inputs—Unadjusted quoted prices in active markets for identical assets or liabilities accessible to the reporting entity at the measurement date.

Level 2 Inputs—Other than quoted prices included in Level 1 inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability.

Level 3 Inputs—Unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not available, thereby, allowing for situations in which there is little, if any, market activity for the asset or liability at the measurement date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 33

------

[**Table of Contents**](#toc)

***Derivatives***

The Company recognizes all of its derivative instruments as either assets or liabilities which are recorded at fair value on its Consolidated Balance Sheet. The accounting for changes in the fair value of a derivative instrument depends on whether it qualifies for and has been designated as a hedge and the type of hedge. The Company did not hold any natural gas derivatives at December 31, 2025; however did have natural gas derivatives at December 31, 2024 and for portions of the year for both 2025 and 2024. The Company has not designated its derivative instruments as hedges under U.S. GAAP and all resulting gains and losses from changes in the fair value of its derivative instruments are included within the Consolidated Statements of Operations. The Company determined the fair value of its natural gas derivatives at December 31, 2024 predominantly from broker quotes and are considered a level 2 fair value measurement. The Company did not enter into any derivative transactions for speculative purposes.

The Company enters into forward sales contracts for the delivery of LNG to its customers. Certain of these sales contracts contain provisions that may meet the criteria of a derivative in the event delivery is not made. These contracts are accounted for under the normal purchase normal sales exclusion under U.S. GAAP and are not measured at fair value each reporting period.

***Fixed Assets and Capitalization of Costs***

Fixed assets are recorded at historical cost and depreciated over their useful lives on a straight-line basis. The determination of when and what amount of costs associated with the purchase or construction of new fixed assets that should be capitalized as fixed assets can be subjective. The Company's policy is to capitalize direct costs related to the purchase or construction of a fixed asset when the acquisition or completion of the asset as intended is believed probable and when construction of the asset is considered both technically feasible and economically beneficial to the Company. Direct costs for constructed fixed assets include (but are not limited to) materials, equipment, engineering designs, transportation, contractor costs (and related subcontractors), internal and external labor costs and benefits, and interest expense on qualifying debt that are directly related to the construction of the asset. Direct costs for purchased assets include the fair value of the consideration paid to the seller as well as any other legal or closing costs, brokers' fees and commissions, closing fees; transportation costs. and other fees directly incurred to buy and install the asset for its intended use.

Indirect costs including general and administrative costs and overhead costs related to support functions, including executive management, accounting, purchasing, administration, marketing, human resources, and information systems are expensed as incurred.

Capitalization of additional direct costs made for existing assets already in use occurs if the cost meets one of the following criteria:

● The cost enhances/improves the productivity or efficiency of the asset resulting in a reconditioned or modified asset with superior performance capabilities and/or improved efficiencies;

● The cost extends the life of the useful asset beyond its current useful life; or

● The cost is for required periodic inspections/maintenance that are for a period of longer than one year such as certifications and pressure tests which the Company capitalizes and amortizes over the shorter of the certification period or useful life of the asset.

Repairs and maintenance to maintain the fixed asset in its original operating condition are not capitalized to fixed assets, but expensed as incurred.

Capitalization continues from when the acquisition or construction of the asset is deemed probable until the asset has been placed in service or until the Company determines that acquisition or completion of the asset is no longer probable. Once a fixed asset is placed into service, the fixed asset is depreciated over its useful life on a straight-line basis. See also Note 5 of the Notes to Consolidated Financial Statements for the general categories of fixed assets, their useful lives and total cost.

If the construction or acquisition of a fixed asset that was previously believed to be probable of completion is then determined to no longer be probable, any capitalization of future costs ceases and the asset is assessed for impairment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 34

------

[**Table of Contents**](#toc)

**ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK**

**Quantitative and Qualitative Disclosures about Market Risk**

In the normal course of business, the Company encounters several significant types of market risks including commodity and interest rate risks.

*Commodity Price Risk*

Due to the nature of the LNG distribution business, the Company has short term agreements with suppliers to contract for LNG purchases. These contracts extend for various periods and minimums. The index rate pricing for natural gas may increase or decrease in the future based upon market conditions.

Commodity price risk is the risk of loss arising from adverse changes in market rates and prices. We are able to limit our exposure to fluctuations in natural gas prices by structuring our contract pricing with customers so that it mirrors the volatility in our supply cost with vendors. Our exposure to market risk associated with LNG price changes may adversely impact our business. The Company had certain natural gas derivative instruments as of December 31, 2025 to manage commodity price risk. The Company has not designated its derivative instruments as hedges under U.S. GAAP and all resulting gains and losses from changes in the fair value of its derivative instruments are included within the Consolidated Statements of Operations. The Company did not enter into any derivative transactions for speculative purposes.

*Foreign Currency Exchange Rate Risk*

We operate a subsidiary in Mexico and maintain an equity method investment in our Chinese joint venture, BOMAY. The functional currency of the Mexican subsidiary is the Mexican Peso. The functional currency of the Chinese joint venture is the Chinese Yuan. The assets and liabilities of the foreign equity investees and foreign subsidiary, denominated in foreign currency, are translated into United States dollars at exchange rates in effect at the Consolidated Balance Sheet date and net sales and expenses are translated at the average exchange rate for the period. The resulting cumulative translation adjustment totaling $10 thousand has been recorded as Accumulated Other Comprehensive Income (Loss), net of taxes, in our Consolidated Balance Sheet at December 31, 2025.

As of December 31, 2025, we had a non-U.S. dollar denominated negative working capital balance of approximately $0.3 million. An adverse change of 10% in the underlying foreign currency exchange rate would increase our negative working capital balance by approximately $30 thousand.

We do not currently have or intend to enter into any derivative arrangements to protect against such fluctuations.

*Market Risk*

The volatility in customer demand is greatly driven by the change in the price of oil and gas. These factors influence the release of new capital projects by our customers, which are traditionally awarded in competitive bid situations. Coordination of project start dates is matched to the customer requirements and projects may take a number of months to complete; schedules also may change during the course of any particular project.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 35

------

[**Table of Contents**](#toc)

**ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA**

**INDEX TO CONSOLIDATED FINANCIAL STATEMENTS**

**Stabilis Solutions, Inc. and Subsidiaries**

---

| | |
|:---|:---|
| Consolidated Financial Statements |  |
| [Report of Independent Registered Public Accounting Firm](#report) (Ham, Langston & Brezina, L.L.P., Houston, TX, Auditor ID: 298) | [37](#report) |
| [Consolidated Balance Sheets](#bs) | [38](#bs) |
| [Consolidated Statements of Operations](#state_of_op) | [39](#state_of_op) |
| [Consolidated Statements of Comprehensive Income](#comp_loss) | [40](#comp_loss) |
| [Consolidated Statements of Stockholders' Equity](#equity) | [41](#equity) |
| [Consolidated Statements of Cash Flows](#cf) | [42](#cf) |
| [Notes to Consolidated Financial Statements](#notes) | [43](#notes) |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 36

------

[**Table of Contents**](#toc)

**<u>REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM</u>**

To the Board of Directors and Shareholders

Stabilis Solutions, Inc.

Houston, Texas

**Opinion on the Consolidated Financial Statements**

We have audited the accompanying consolidated balance sheets of Stabilis Solutions, Inc. and subsidiaries (the "Company") as of December 31, 2025 and 2024, and the related consolidated statements of operations, comprehensive income (loss), stockholders' equity and cash flows for each of the two years in the period ended December 31, 2025, and the related notes (collectively, referred to as the "consolidated financial statements"). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2025 and 2024, and the results of their operations and their cash flows for each of the two years in the period ended December 31, 2025, in conformity with accounting principles generally accepted in the United States of America.

**Basis for Opinion**

These consolidated financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

**Critical Audit Matters**

The critical audit matters are matters arising from the current-period audit of the consolidated financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the consolidated financial statements and (2) represented especially challenging, subjective or complex judgments. We determined that there are no critical audit matters.

/s/ Ham, Langston and Brezina, L.L.P.

We have served as Stabilis Solutions, Inc.'s auditor since 2007.

Houston, Texas

March 5, 2026

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 37

------

[**Table of Contents**](#toc)

**Stabilis Solutions, Inc. and Subsidiaries**

**Consolidated Balance Sheets**

(in thousands, except share and per share data)

---

| | | |
|:---|:---|:---|
|  | ***December 31,*** | ***December 31,*** |
|  | ***2025*** | ***2024*** |
| **Assets** |  |  |
| Current assets: |  |  |
| Cash and cash equivalents | $7459 | $8987 |
| Accounts receivable, net | 3130 | 6239 |
| Inventories, net | 342 | 345 |
| Prepaid expenses and other current assets | 1976 | 1902 |
| Total current assets | 12907 | 17473 |
| Property, plant and equipment: |  |  |
| Cost | 125613 | 117246 |
| Less accumulated depreciation | (72666) | (65518) |
| Property, plant and equipment, net | 52947 | 51728 |
| Goodwill | 4314 | 4314 |
| Investments in foreign joint ventures | 11946 | 11659 |
| Right-of-use assets and other noncurrent assets | 996 | 410 |
| **Total assets** | $83110 | $85584 |
| **Liabilities and Stockholders' Equity** |  |  |
| Current liabilities: |  |  |
| Accounts payable | $4750 | $5667 |
| Accrued liabilities | 2859 | 3566 |
| Current portion of long-term notes payable | 1931 | 2010 |
| Current portion of finance and operating lease obligations | 417 | 384 |
| Total current liabilities | 9957 | 11627 |
| Long-term notes payable, net of current portion and debt issuance costs | 5755 | 6848 |
| Long-term portion of operating lease obligations | 726 | 101 |
| **Total liabilities** | 16438 | 18576 |
| **Commitments and contingencies (Note 12)** |  |  |
| **Stockholders' Equity:** |  |  |
| Preferred stock; $0.001 par value, 1,000,000 shares authorized, no shares issued and outstanding at December 31, 2025 and December 31, 2024 |  |  |
| Common stock; $0.001 par value, 37,500,000 shares authorized, 18,596,301 and 18,585,014 shares issued and outstanding at December 31, 2025 and December 31, 2024, respectively | 19 | 19 |
| Additional paid-in capital | 103644 | 103214 |
| Accumulated other comprehensive income (loss) | 10 | (578) |
| Accumulated deficit | (37001) | (35647) |
| Total stockholders' equity | 66672 | 67008 |
| **Total liabilities and stockholders' equity** | $83110 | $85584 |

---

The accompanying notes are an integral part of the Consolidated Financial Statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 38

------

[**Table of Contents**](#toc)

**Stabilis Solutions, Inc. and Subsidiaries**

**Consolidated Statements of Operations**

(in thousands, except per share data)

---

| | | |
|:---|:---|:---|
|  | ***Year Ended December 31,*** | ***Year Ended December 31,*** |
|  | ***2025*** | ***2024*** |
| **Revenues:** |  |  |
| &nbsp;&nbsp;&nbsp; Revenues | $68245 | $73293 |
| **Operating expenses:** |  |  |
| &nbsp;&nbsp;&nbsp; Cost of revenues | 50229 | 52069 |
| &nbsp;&nbsp;&nbsp; Change in unrealized gain on natural gas derivatives | (24) | (310) |
| &nbsp;&nbsp;&nbsp; Selling, general and administrative expenses | 13189 | 11763 |
| &nbsp;&nbsp;&nbsp; Loss (gain) from disposal of fixed assets | 24 | (761) |
| &nbsp;&nbsp;&nbsp; Depreciation expense | 7345 | 7146 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total operating expenses | 70763 | 69907 |
| **Income (loss) from operations before equity income** | (2518) | 3386 |
| **Net equity income from foreign joint venture operations:** |  |  |
| &nbsp;&nbsp;&nbsp; Income from equity investment in foreign joint venture | 1453 | 1770 |
| &nbsp;&nbsp;&nbsp; Foreign joint venture operating related expenses | (211) | (206) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net equity income from foreign joint venture operations | 1242 | 1564 |
| **Income (loss) from operations** | (1276) | 4950 |
| **Other income (expense):** |  |  |
| &nbsp;&nbsp;&nbsp; Interest income, net | 42 | 112 |
| &nbsp;&nbsp;&nbsp; Other income (expense), net | (66) | 22 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total other income (expense) | (24) | 134 |
| **Net income (loss) before income tax expense** | (1300) | 5084 |
| Income tax expense | 54 | 485 |
| **Net income (loss)** | $(1354) | $4599 |
| **Net income (loss) per common share (Note 15):** |  |  |
| Basic and diluted per common share | $(0.07) | $0.25 |

---

The accompanying notes are an integral part of the Consolidated Financial Statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 39

------

[**Table of Contents**](#toc)

**Stabilis Solutions, Inc. and Subsidiaries**

**Consolidated Statements of Comprehensive Income (loss)**

(in thousands)

---

| | | |
|:---|:---|:---|
|  | ***Year Ended December 31,*** | ***Year Ended December 31,*** |
|  | ***2025*** | ***2024*** |
| Net income (loss) | $(1354) | $4599 |
| &nbsp;&nbsp;&nbsp; Foreign currency translation adjustment, net of tax | 588 | (560) |
| Total comprehensive income (loss) | $(766) | $4039 |

---

The accompanying notes are an integral part of the Consolidated Financial Statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 40

------

[**Table of Contents**](#toc)

**Stabilis Solutions, Inc. and Subsidiaries**

**Consolidated Statements of Stockholders**' **Equity**

(in thousands, except share data)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | ***Common Stock*** | ***Common Stock*** | ***Additional Paid-in*** | ***Accumulated Other Comprehensive Income*** | ***Accumulated*** |  |
|  | ***Shares*** | ***Amount*** | ***Capital*** | ***(Loss)*** | ***Deficit*** | ***Total*** |
| **Balance at December 31, 2023** | 18573391 | $19 | $102057 | $(18) | $(40246) | $61812 |
| &nbsp;&nbsp;&nbsp; Common stock issued from vesting of stock-based awards | 13588 |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Stock-based compensation | *—* |  | 1166 |  |  | 1166 |
| &nbsp;&nbsp;&nbsp; Employee tax payments from stock-based withholding | (1965) |  | (9) |  |  | (9) |
| &nbsp;&nbsp;&nbsp; Net income | *—* |  |  |  | 4599 | 4599 |
| &nbsp;&nbsp;&nbsp; Other comprehensive loss, net of tax | *—* |  |  | (560) |  | (560) |
| **Balance at December 31, 2024** | 18585014 | 19 | 103214 | (578) | (35647) | 67008 |
| &nbsp;&nbsp;&nbsp; Common stock issued from vesting of stock-based awards | 13589 |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Stock-based compensation | *—* |  | 447 |  |  | 447 |
| &nbsp;&nbsp;&nbsp; Employee tax payments from stock-based withholding | (2302) |  | (17) |  |  | (17) |
| &nbsp;&nbsp;&nbsp; Net loss | *—* |  |  |  | (1354) | (1354) |
| Other comprehensive income, net of tax | *—* |  |  | 588 |  | 588 |
| **Balance at December 31, 2025** | 18596301 | $19 | $103644 | $10 | $(37001) | $66672 |

---

The accompanying notes are an integral part of the Consolidated Financial Statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 41

------

[**Table of Contents**](#toc)

**Stabilis Solutions, Inc. and Subsidiaries**

**Consolidated Statements of Cash Flows**

(in thousands)

---

| | | |
|:---|:---|:---|
|  | ***Year Ended December 31,*** | ***Year Ended December 31,*** |
|  | ***2025*** | ***2024*** |
| **Cash flows from operating activities:** |  |  |
| Net income (loss) | $(1354) | $4599 |
| &nbsp;&nbsp;&nbsp; Adjustments to reconcile net income (loss) to net cash provided by operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation | 7345 | 7146 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock-based compensation expense | 447 | 1166 |
| Provision for credit losses | 315 | 102 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss (gain) on disposal of assets | 24 | (761) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income from equity investment in joint venture | (1453) | (1770) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Distributions from equity investment in joint venture | 1637 | 1716 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash settlements from natural gas derivatives, net | 178 | (359) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Realized and unrealized losses from natural gas derivatives, net | 202 | 152 |
| Changes in operating assets and liabilities: |  |  |
| Accounts receivable | 2794 | 1390 |
| Prepaid expenses and other current assets | 563 | 820 |
| Accounts payable and accrued liabilities | (2275) | (678) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 180 | 170 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Net cash provided by operating activities** | 8603 | 13693 |
| **Cash flows from investing activities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acquisition of fixed assets | (8141) | (9146) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from sale of fixed assets | 211 | 841 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from notes receivable, related to prior sale of Brazil operations | 226 | 185 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Net cash used in investing activities** | (7704) | (8120) |
| **Cash flows from financing activities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payments on short- and long-term notes payable and finance leases | (2387) | (1905) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payment of debt issuance costs | (42) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Employee tax payments from stock-based withholding | (17) | (9) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Net cash used in financing activities** | (2446) | (1914) |
| Effect of exchange rate changes on cash | 19 | (46) |
| **Net increase (decrease) in cash and cash equivalents** | (1528) | 3613 |
| **Cash and cash equivalents, beginning of year** | 8987 | 5374 |
| **Cash and cash equivalents, end of year** | $7459 | $8987 |

---

The accompanying notes are an integral part of the Consolidated Financial Statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 42

------

[**Table of Contents**](#toc)

**STABILIS SOLUTIONS, INC. AND SUBSIDIARIES**

Notes to Consolidated Financial Statements

***1.* BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

**Description of Business**

Stabilis Solutions, Inc. and its subsidiaries (the "Company", "Stabilis", "our", "us" or "we") is an energy transition company that provides turnkey clean energy production, storage, transportation and fueling solutions primarily using liquefied natural gas ("LNG") to multiple end markets.

The Company serves customers in diverse end markets, including aerospace, agriculture, industrial, marine bunkering, mining, oil and gas, pipeline, remote power and utility markets. LNG can be used to deliver natural gas to locations where pipeline service is unavailable, has been interrupted, or needs to be supplemented. Additionally, LNG can be used as a partner fuel for renewable energy, and as an alternative to traditional fuel sources, such as distillate fuel oil (including diesel fuel and other fuel oils) and propane, among others to provide both environmental and economic benefits.

The Company also builds power and control systems for the energy industry in China through its 40% owned Chinese joint venture, BOMAY Electric Industries, Inc ("BOMAY"). BOMAY is accounted for under the equity method of accounting.

**Basis of Presentation and Consolidation**

The accompanying consolidated financial statements ("Consolidated Financial Statements") include our accounts and those of our subsidiaries and, have been prepared in accordance with U.S. GAAP and pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). All intercompany accounts and transactions have been eliminated in consolidation.

**Summary of Significant Accounting Policies**

*(a) Use of Estimates in the Preparation of the Consolidated Financial Statements*

The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant items subject to such estimates include the fair value of natural gas derivatives, the carrying amount of contingencies, valuation allowances for receivables, deferred income tax assets, valuations assigned to assets and liabilities in business combinations, and impairments of long-lived assets. Actual results could differ from those estimates, and these differences could be material to the consolidated financial statements.

*(b) Cash and Cash Equivalents*

The Company considers all highly liquid investments with maturities of *three* months or less, when purchased, to be cash and cash equivalents. Cash equivalents consist principally of money market accounts held with major financial institutions. The Company is exposed to credit risk from its deposits of cash and cash equivalents in excess of amounts insured by the Federal Deposit Insurance Corporation. The Company has *not* experienced any losses on its deposits of cash and cash equivalents.

*(c) Accounts Receivable*

Accounts receivable are recognized when products are sold. The Company extends credit to many of its customers in the ordinary course of business. Generally, these sales are unsecured. Accounts receivable are stated at the amount the Company expects to collect (cost, net of any allowances for credit losses). The Company maintains allowances for credit losses for estimated losses resulting from the inability of its customers to make required payments. Management considers the following factors when determining the collectability of specific customer accounts: customer credit-worthiness, past transaction history with the customer and current economic industry trends. Our allowance for credit losses was $0.3 million at *December 31, 2025* and was immaterial at *December 31, 2024*. For the years ended *December 31, 2025* and *2024*, the Company recorded a provision for credit losses of $0.3 million and $0.1 million, respectively.

*(d) Inventories*

LNG inventory consists of LNG produced that is either (*1*) in a storage container at our plants or (*2*) in a storage trailer that is in transit to a customer. Inventory quantities are measured at each reporting period and are valued at the lower of cost or net realizable value, determined on a *first*-in, *first*-out basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *43*

------

[**Table of Contents**](#toc)

*(e) Derivative Instruments*

At *December 31, 2025*, the Company had *no* derivative instruments. The Company had certain natural gas derivative instruments during *2025* and *2024*. The Company recognizes all of its derivative instruments as either assets or liabilities which are recorded at fair value on its Consolidated Balance Sheets. The accounting for changes in the fair value of a derivative instrument depends on whether it qualifies for and has been designated as a hedge as well as the type of hedge. The Company has *not* designated its derivatives as hedges under U.S. GAAP and all resulting gains and losses from changes in the fair value of its derivative instruments are included within the Consolidated Statements of Operations. The Company did *not* enter into any derivative transactions for speculative purposes.

The Company enters into forward sales contracts for the delivery of LNG to its customers. Certain of these sales contracts contain provisions that *may* meet the criteria of a derivative in the event delivery is *not* made. These contracts are accounted for under the normal purchase normal sales exclusion under U.S. GAAP and are *not* measured at fair value each reporting period.

*(f) Property, Plant and Equipment*

Property, plant and equipment are stated at cost, net of accumulated depreciation and amortization. Significant additions, renewals, and capital improvements are capitalized. The determination of when and what amount of costs associated with the purchase or construction of new fixed assets should be capitalized as fixed assets can be subjective. The Company's policy is to capitalize direct costs related to the purchase or construction of a fixed asset when the acquisition or completion of the asset as intended is believed probable and when construction of the asset is considered both technically feasible and economically beneficial to the Company.

Direct costs for constructed fixed assets include (but are *not* limited to) materials, equipment, engineering designs, transportation, contractor costs (and related subcontractors), internal and external labor costs and benefits, and interest expense on qualifying debt that are directly related to the construction of the asset. Direct costs for purchased assets include the fair value of the consideration paid to the seller as well as any other any legal or closing costs, brokers' fees and commissions, closing fees; transportation costs. and other fees directly incurred to buy and install the asset for its intended use.

Indirect costs including general and administrative costs and overhead costs related to support functions, including executive management, accounting, purchasing, administration, marketing, human resources, and information systems are expensed as incurred.

Capitalization of additional direct costs made for existing assets already in use occurs if the cost meets *one* of the following criteria:

● The cost enhances/improves the productivity or efficiency of the asset resulting in a reconditioned or modified asset with superior performance capabilities and/or improved efficiencies;

● The cost extends the life of the useful asset beyond its current useful life; or

● The cost is for required periodic inspections/maintenance that are for a period of longer than *one* year such as certifications and pressure tests which the Company capitalizes and amortizes over the shorter of the certification period or useful life of the asset.

Repairs and maintenance to maintain the fixed asset in its original operating condition are *not* capitalized to fixed assets, but expensed as incurred.

Capitalization continues from when the acquisition or construction of the asset is deemed probable until the asset has been placed in service or until the Company determines that acquisition or completion of the asset is *no* longer probable. Once a fixed asset is placed into service, the fixed asset is depreciated over its useful life on a straight-line basis. See also Note *5* of the Notes to Consolidated Financial Statements for the general categories of fixed assets, their useful lives and total cost.

Leasehold improvements are amortized over the shorter of the applicable remaining lease term or the estimated useful life of the related assets. The cost and related accumulated depreciation of assets retired or sold are removed from the appropriate asset and depreciation accounts, and the resulting gain or loss is reflected in income. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the assets.

If the construction or acquisition of a fixed asset that was previously believed to be probable of completion is then determined to *no* longer be probable, any capitalization of future costs ceases and the asset is assessed for impairment.

Property, plant, and equipment, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset *may not* be recoverable. If circumstances require a long-lived asset or asset group be tested for possible impairment, the Company *first* compares undiscounted cash flows expected to be generated by that asset or asset group to its carrying amount. If the carrying amount of the long-lived asset or asset group is *not* recoverable on an undiscounted cash flows basis, an impairment is recognized to the extent that the carrying amount exceeds its fair value. Fair value is determined through various valuation techniques including discounted cash flows models, quoted market values and *third*-party independent appraisals, as considered necessary. There were no impairments of the Company's long-lived assets in the years ended *December 31, 2025* and *2024*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *44*

------

[**Table of Contents**](#toc)

*(g) Goodwill*

Goodwill represents the excess of the cost of an acquired entity over the fair value of the assets acquired less liabilities assumed. Intangible assets are assets that lack physical substance (excluding financial assets). Goodwill acquired in a business combination and intangible assets with indefinite useful lives are *not* amortized, and intangible assets with finite useful lives are amortized. All of our goodwill was recognized from business acquisitions during the *third* quarter of *2019* and is *not* amortized. We test goodwill for impairment annually or more frequently if a triggering event occurs. A triggering event occurs when there are changes in circumstances or events that indicate the assets carrying value *may not* be recoverable. The Company tested its remaining goodwill for impairment during the years ended *December 31, 2025* and *2024* and based upon a qualitative assessment, it determined a quantitative assessment was *not* required and no impairments of goodwill were identified.

*(h) Leases*

We determine if an arrangement is a lease at inception. Leases with an initial term of *12* months or less are *not* recorded in our Consolidated Balance Sheets unless we are reasonably certain at inception of the lease that we will renew the lease for a period that extends the initial term longer than *12* months. All leases with an initial term greater than *12* months, whether classified as operating or finance, are recorded on our Consolidated Balance Sheets based on the present value of lease payments over the lease term, determined at lease commencement. Determination of the present value of lease payments requires a discount rate. We use the implicit rate in the lease agreement when available. Most of our leases do *not* provide an implicit interest rate; therefore, we use a weighted average borrowing rate based on the information available at the commencement date. Certain of our leases contain non-lease components which are *not* separated from the lease components when calculating the right-of-use asset and lease liability per our use of the practical expedient to combine both components of an arrangement for all classes of leased assets. See also Note *9* for a further discussion of our leases.

*(i) Revenue Recognition*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Company recognizes revenue from our contracts in accordance with Accounting Standards Codification ("ASC"), Topic *606* "Revenue from Contracts with Customers" ("Topic *606"*). Topic *606* requires entities to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Revenues from contracts with customers are disaggregated into (*1*) LNG product (*2*) rental, (*3*) service, and (*4*) other.

The Company recognizes revenue when it satisfies a performance obligation by transferring control over a product or service to a customer. Revenue associated with the sale of LNG is recognized at the point in time when the customer obtains control of the asset. In evaluating when a customer has control of the asset, the Company primarily considers whether the transfer of legal title and physical delivery has occurred, whether the customer has significant risks and rewards of ownership, and whether the customer accepted delivery and a right of payment exists. Revenues from the providing of services, transportation and equipment to customers is recognized over time as the service is performed. Revenue is measured as consideration specified in a contract with a customer and excludes any sales incentives and amounts collected on behalf of *third* parties. Amounts are billed upon completion of service or transfer of a product and are generally due within *30* days. See also Note *2* for a further discussion of our accounting policy for revenue recognition.

*(j) Income Taxes*

The Company recognizes income taxes under the asset-and-liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis and operating loss and tax credit carryforwards for each tax jurisdiction in which we operate. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is recorded when it is more likely than *not* that the net deferred tax asset will *not* be realized.

The Company recognizes the effect of income tax positions only if those positions are more likely than *not* to be sustained. Recognized income tax positions are measured at the largest amount that is greater than *50%* likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Company records interest related to unrecognized tax benefits in interest expense and penalties in selling, general and administrative expenses. As of *December 31, 2025* and *2024*, the Company had no uncertain tax positions that required recognition. See Note *11* for a further discussion of our accounting policy related to income taxes.

The Company files income tax returns in the United States of America with the federal government and various state taxing authorities, in Mexico, Canada and China. With few exceptions, the Company is subject to examination by the applicable taxing authorities for years after *2020.*

*(k) Earnings Per Share (*"*EPS*"*)*

Basic earnings per share, or EPS, is computed by dividing net income (loss) available to stockholders by the weighted average shares outstanding during the period. Diluted EPS takes into account the potential dilution that could occur if securities or other contracts to issue shares, such as stock options and warrants were exercised. The Company had no dilutive securities for the year ended *December 31, 2025*. The Company included dilutive securities within its computation of earnings per share for the year ended *December 31, 2024*. See Note *15* for further discussion of the earnings per share calculation.

*(l) Commitments and Contingencies*

Liabilities for loss contingencies arising from claims, assessments, litigation, fines, penalties and other sources are recorded when it is probable that a liability has been incurred and the amount can be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *45*

------

[**Table of Contents**](#toc)

*(m) Fair Value Measurements*

The Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. The Company determines fair value based on assumptions that market participants would use in pricing an asset or liability in the principal or most advantageous market. When considering market participant assumptions in the fair value measurements, the following fair value hierarchy distinguishes between observable and unobservable inputs, which are categorized in *one* of the following levels in accordance with U.S. GAAP:

Level *1* Inputs —Unadjusted quoted prices in active markets for identical assets or liabilities accessible to the reporting entity at the measurement date.

Level *2* Inputs — Other than quoted prices included in Level *1* inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability.

Level *3* Inputs — Unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are *not* available, thereby, allowing for situations in which there is little, if any, market activity for the asset or liability at the measurement date.

The carrying value of cash and cash equivalents, accounts receivable, inventory, accounts payable and accrued liabilities approximate their respective fair values due to their relative short maturities. The Company estimated the fair value of its fixed and variable rate debt approximates the $7.0 million carrying value (See Note *8*) at *December 31, 2025*. For the years ended *December 31, 2025* and *2024*, the fair value of our fixed and variable rate debt was estimated by discounting the future cash flows using the Company's estimate of its incremental borrowing rate (within Level *2* of the fair value hierarchy). The Company's estimate of fair value was subjective in nature and was dependent on a number of important assumptions, including discount rates. Different market assumptions and estimation methodologies could result in different estimations of fair value.

Nonfinancial assets and liabilities measured at fair value on a nonrecurring basis include certain nonfinancial assets and liabilities acquired in a business combination, are measured at fair value using quoted market prices or, to the extent that there are *no* available quoted market prices, market prices for similar assets or liabilities.

*(n) Foreign Currency Gains and Losses*

Foreign currency translations are included as a separate component of comprehensive income (loss). The Company has determined the local currency of its foreign subsidiaries and foreign joint ventures to be the functional currency. In accordance with Accounting Standards Codification ("ASC *830"*), the assets and liabilities of the foreign equity investees and foreign subsidiaries, denominated in foreign currency, are translated into United States dollars at exchange rates in effect at the consolidated balance sheet date and net sales and expenses are translated at the average exchange rate for the period. Related translation adjustments are reported as comprehensive income (loss), net of deferred income taxes, which is a separate component of stockholders' equity, whereas gains and losses resulting from foreign currency transactions are included in results of operations. In the event of liquidation of a foreign subsidiary, amounts included within accumulated other comprehensive income (loss) ("AOCI") and related to cumulative foreign currency translation gains and losses are reclassified out of AOCI and into net income (loss) upon sale.

*(o) Stock-based Compensation*

The Company accounts for stock-based compensation in accordance with ASC Topic *718,* Compensation — Stock Compensation ("ASC *718"*). Compensation expense for stock-based awards expected to vest is recognized on a straight-line basis over the requisite service period of the award based on their grant date fair value. See also Note *13* for further discussion of our stock-based compensation.

*(p) Segment Reporting*

In accordance with ASC Topic *280* - "Segment Reporting (ASC *280*)" the Company has determined that it has a single operating and reporting segment. As a result, the Company's segment accounting policies are the same as described herein and the Company does *not* have any material intra-segment sales and transfers of assets. The Company's Chief Operating Decision Maker ("CODM") is the Chief Executive Officer (the "CEO"). The CEO, with the Chief Financial Officer assesses the performance and makes operating decisions of the Company on a consolidated basis, based on the Company's net increase in shareholder's equity resulting from operations ("net income (loss)"). Company assets are *not* reviewed by the CODM at a different asset level or category, but at the consolidated level. As the Company's operations are comprised of a single operating segment, the segment assets are reflected on the accompanying Consolidated Balance Sheets as "total assets" and the significant segment expenses are listed on the accompanying Consolidated Statements of Operations.

**Recent Accounting Pronouncements** 

In *July 2025,* the Financial Accounting Standards Board ("FASB") issued ASU *2025*-*05,* "Financial Instruments - Credit Losses (Topic *326*): Measurement of Credit Losses for Accounts Receivables and Contract Assets". Under ASU *2025*-*05,* which provides a practical expedient related to the estimation of expected credit losses for current accounts receivable and current contract assets arising from transactions accounted for under ASC *606.* The ASU is effective for companies for annual reporting periods beginning after *December 15, 2025.* The requirements should be applied prospectively. Although early adoption is permitted, the Company is assessing the impact of this standard and will adopt the pronouncement when the pronouncement becomes effective on *January 1, 2026.* The Company does *not* expect the adoption of ASU *2025*-*05* to have a significant impact on its consolidated financial statements.

In *November 2024,* the Financial Accounting Standards Board ("FASB") issued ASU *2024*-*03,* "Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic *220*-*40*): Disaggregation of Income Statement Expenses". Under ASU *2024*-*03* companies are required to disclose disaggregated information about certain costs and expenses in the notes to the financial statements. The amendments in this update require disaggregated disclosure of income statement expense captions into specific categories within the footnotes to the financial statements. ASU *2024*-*03* is effective for companies for annual reporting periods beginning after *December 15, 2026.* The requirements can be applied either prospectively or retrospectively. Although early adoption is permitted, the Company will adopt the pronouncement when the pronouncement becomes effective on *January 1, 2027.* The Company does *not* expect the adoption of ASU *2023*-*09* to have a significant impact on its consolidated financial statements.

In *December 2023,* the FASB issued ASU *2023*-*09*" Income Taxes (Topic *740*): Improvements to Income Tax Disclosures," which establishes new income tax disclosure requirements in addition to modifying and eliminating certain existing requirements. Under ASU *2023*-*09,* companies must consistently categorize and provide greater disaggregation of information in the rate reconciliation and further disaggregate income taxes paid. ASU *2023*-*09* is effective for companies for annual reporting periods beginning after *December 15, 2024.* The requirements can be applied either prospectively or retrospectively. The Company adopted ASU *2023*-*09* effective *December 31, 2025* on a retrospective basis which did *not* have a significant impact to its consolidated financial statements. See Notes *11* and *14* for additional tax disclosures required under ASU *2023*-*09.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *46*

------

[**Table of Contents**](#toc)

***2.* REVENUE RECOGNITION**

We recognize revenues when the transfer of promised goods or services are delivered to our customers in accordance with the applicable customer contract and we are entitled to be paid by the customer. Revenues are measured as consideration specified in the contract and exclude any sales incentives and amounts collected on behalf of *third* parties. Revenues from contracts with customers are disaggregated into (*1*) LNG Product (*2*) rental (*3*) service and (*4*) other. Certain contracts *may* include multiple goods or services such as the usage of equipment and delivery of field support services that are bundled into an all-in price to the customer for each gallon of LNG delivered. Revenue recognition under these contracts requires significant judgment by the Company in order to determine the appropriate accounting for these transactions, including whether performance obligations should be accounted for separately versus together, how the price should be allocated among the performance obligations, and when to recognize revenue for each performance obligation. The Company has determined that these contracts have multiple performance obligations and the Company allocates the contract price to each performance obligation using its best estimates of the respective standalone selling price of each distinct good or service at the time the contract was negotiated.

**LNG Product revenues**

LNG Product revenues represent the sale of LNG from both produced and purchased sources as well as the transportation performed to deliver the LNG to our customer location. LNG Product revenues are recognized upon delivery of the LNG to the customer, at which point the customer controls the product and the Company has an unconditional right to payment. The Company acts as a principal when using *third* party transportation companies and therefore recognizes the gross revenue for the supply of LNG. The Company does *not* differentiate between the revenue from the sale of LNG production and purchased LNG as the criteria for revenue recognition are identical. Some of our contracts contain minimum take-or-pay amounts where a customer has agreed to source a minimum volume of LNG under the contract. Take or pay revenues are only recognized when the customer has failed to take the minimum contracted volumes upon completion of the time period specified within the contract and the Company has the unconditional right to receive payment for the take or pay amount. Certain of our sales contracts contain provisions that *may* meet the criteria of a derivative in the event delivery is *not* made. These contracts are accounted for under the normal purchase normal sales exclusion under U.S. GAAP and are *not* measured at fair value each reporting period. Our LNG contracts are generally *one* to *24* months in duration.

**Rental revenues**

Rental revenues are generated from the rental of cryogenic equipment to our customers. Rental revenues are *not* dependent upon the gallons delivered but based upon day rates or monthly rates for the use of equipment as specifically established within the contract and are disaggregated from LNG Product revenues. Revenues related to rental of equipment are recognized under Topic *606* and *not* ASC *842:* Leases, as the Company maintains control of the equipment that the customer uses and can replace the rented equipment with similar equipment should the rented equipment become inoperable or the Company chooses to replace the equipment for maintenance purposes. Revenue is recognized as the rental period is completed and for periods that cross month end, revenue is recognized for the portion of the rental period that has been completed to date. Performance obligations for rental revenue are considered to be satisfied as the rental period is completed based upon the terms of the related contract. The stated rental rates within each contract are representative of the stand-alone rental rates at the time the contract was negotiated.

**Service revenues**

Service revenues are generated from engineering and field support services and represent the human resources provided to the customer to support the use of LNG at the customer's job site. These include support and costs for mobilization and demobilization of equipment at customer sites as well as onsite technical support while customers are consuming LNG. Service revenues are *not* dependent upon the gallons delivered or rental period but based upon the specific contractual terms and can be based on an event (i.e. mobilization or demobilization) or an hourly rate as specifically established within the contract and are disaggregated from LNG Product revenues and Rental revenues. Service revenue is recognized as the event is completed or work is done. The stated hourly labor rates in each contract are representative of the stand-alone hourly rates at the time the contract was negotiated.

**Other revenues**

Other revenues are items that, due to their nature, are disaggregated from the categories mentioned above such as expenses incurred by the Company on behalf of the customer that we contractually rebill to our customers on a cost-plus basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *47*

------

[**Table of Contents**](#toc)

**Disaggregated revenues**

The table below presents revenue disaggregated by source, for the years ended *December 31, 2025* and *2024* (in thousands):

---

| | | |
|:---|:---|:---|
|  | ***Year Ended December 31,*** | ***Year Ended December 31,*** |
|  | ***2025*** | ***2024*** |
| **Revenues:** |  |  |
| &nbsp;&nbsp;&nbsp; LNG Product | $57213 | $57351 |
| &nbsp;&nbsp;&nbsp; Rental | 5349 | 7273 |
| &nbsp;&nbsp;&nbsp; Service | 5016 | 7436 |
| &nbsp;&nbsp;&nbsp; Other | 667 | 1233 |
| Total revenues | $68245 | $73293 |

---

The table below presents revenue disaggregated by geographic location, for the years ended *December 31, 2025* and *2024* (in thousands):

---

| | | |
|:---|:---|:---|
|  | ***Year Ended December 31,*** | ***Year Ended December 31,*** |
|  | ***2025*** | ***2024*** |
| **Revenues:** |  |  |
| &nbsp;&nbsp;&nbsp; United States | $64736 | $69007 |
| &nbsp;&nbsp;&nbsp; Mexico | 3509 | 4286 |
| Total revenues | $68245 | $73293 |

---

**Variable and other Revenue Components**

Certain of our contracts *may* include rental or services that *may* vary upon the customer demands at stated rates within the contract and are satisfied as the work is authorized by the customer and performed by the Company. LNG product sales agreements *may* include both fixed and variable fees per gallon of LNG, but is representative of the stand-alone selling price for LNG at the time the contract is negotiated. We have concluded that the variable LNG fees meet the exception for allocating variable consideration to specific parts of the contract. As such, the variable consideration for these contracts is allocated to each distinct gallon of LNG and recognized when that distinct gallon of LNG is delivered to the customer.

Taxes assessed by a governmental authority that are directly imposed on revenue-producing transactions between the Company and its customers, such as sales, use and value-added taxes, are excluded from revenue.

***3.* SIGNIFICANT CUSTOMERS AND CONCENTRATION OF RISKS**

**Significant Customers**

A material part of the Company's business is dependent on a few customers, the loss of which could have a material adverse effect on the Company. The tables below present customers representing greater than *10%* of total revenues and/or outstanding accounts receivable as of and for the years ended *December 31, 2025* and *2024* (in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | ***For the Year Ended December 31,*** | ***For the Year Ended December 31,*** | ***For the Year Ended December 31,*** | ***For the Year Ended December 31,*** |
| **Revenue** | ***2025*** | *%*** | ***2024*** | *%*** |
| Customer 1 | $22425 | 32.9% | $24599 | 33.6% |
| Customer 2 | 13248 | 19.4% | 14115 | 19.3% |
| Customer 3 | 9896 | 14.5% | 6082 | 8.3% |
|  | $45569 | 66.8% | $44796 | 61.1% |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | ***At December 31,*** | ***At December 31,*** | ***At December 31,*** | ***At December 31,*** |
| **Accounts Receivable** | ***2025*** | *%*** | ***2024*** | *%*** |
| Customer 1 | $479 | 15.3% | $238 | 3.8% |
| Customer 2 | 426 | 13.6% | 1077 | 17.3% |
| Customer 3 | 399 | 12.7% | 846 | 13.6% |
| Customer 4 | 117 | 3.7% | 1278 | 20.5% |
|  | $1421 | 45.4% | $3439 | 55.1% |

---

*No* other customer represented more than *10%* of the Company's total revenue or accounts receivable as of and for the years ended *December 31, 2025* and *2024*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *48*

------

[**Table of Contents**](#toc)

***4.* PREPAID EXPENSES AND OTHER CURRENT ASSETS**

The Company's prepaid expenses and other current assets as of *December 31, 2025* and *2024*, consisted of the following (in thousands):

---

| | | |
|:---|:---|:---|
|  | ***December 31,*** | ***December 31,*** |
|  | ***2025*** | ***2024*** |
| Prepaid insurance | $999 | $1044 |
| Prepaid supplier expenses | 254 | 167 |
| Other receivables | 447 | 204 |
| Natural gas derivatives at fair value, current |  | 207 |
| Deposits | 99 | 129 |
| Other | 177 | 151 |
| &nbsp;&nbsp;&nbsp; Total prepaid expenses and other current assets | $1976 | $1902 |

---

***5.* PROPERTY, PLANT AND EQUIPMENT, NET**

**Property, Plant and Equipment**

The Company's property, plant and equipment, net as of *December 31, 2025* and *2024*, consisted of the following (in thousands):

---

| | | | |
|:---|:---|:---|:---|
|  | ***Estimated*** |  |  |
|  | ***Useful Life*** | ***December 31,*** | ***December 31,*** |
|  | ***(years)*** | ***2025*** | ***2024*** |
| Liquefaction plants and systems | 10 - 15 | $57341 | $56752 |
| Real property and buildings | 3 - 25 | 2082 | 2082 |
| Vehicles and tanker trailers and equipment | 2 - 10 | 50316 | 49754 |
| Computer and office equipment | 2 - 7 | 897 | 545 |
| Construction in progress | *—* | 14946 | 8082 |
| Leasehold improvements | *—* | 31 | 31 |
| Total |  | 125613 | 117246 |
| Less: accumulated depreciation |  | (72666) | (65518) |
| Net |  | $52947 | $51728 |

---

Depreciation expense for the years ended *December 31, 2025* and *2024* totaled $7.3 million and $7.1 million respectively, of which all is included in the Consolidated Statements of Operations as its own line item.

Construction in progress of $14.9 million and $8.1 million at *December 31, 2025* and *2024*, respectively, primarily relate to the deployment and build-out of liquefaction assets and the purchase of additional liquefaction assets, in the prior year, and in the current year, investment in growth initiatives, related to proposed expansion efforts in Galveston, Texas.

***6.* INVESTMENTS IN FOREIGN JOINT VENTURES**

**BOMAY**

We hold a 40% interest in BOMAY Electric Industries Company, Ltd. ("BOMAY"), which builds electrical systems for sale in China. The majority partner in this foreign joint venture is Baoji Oilfield Machinery Co., Ltd. (a subsidiary of China National Petroleum Corporation), who owns 51%. The remaining 9% is owned by AA Energies, Inc. The Company made no sales to its joint venture during *2025* and *2024*.

We account for our investment in BOMAY using the equity method of accounting. Under the equity method, the Company's share of the joint venture operations earnings or losses is recognized in the Consolidated Statements of Operations as equity income (loss) from foreign joint venture operations. Joint venture income increases the carrying value of the joint venture and joint venture losses reduce the carrying value. Dividends received from the joint venture reduce the carrying value. The Company considers dividend distributions received from its equity method investments which do *not* exceed cumulative equity in earnings subsequent to the date of investment to be a return on investment and classifies these distributions as operating activities in the accompanying Consolidated Statements of Cash Flows.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *49*

------

[**Table of Contents**](#toc)

The tables below present a summary of BOMAY's assets and liabilities and its operational results as of and for the years ended *December 31, 2025* and *2024* in U.S. dollars (in thousands):

---

| | | |
|:---|:---|:---|
|  | ***Year Ended December 31,*** | ***Year Ended December 31,*** |
|  | ***2025*** | ***2024*** |
| Revenues | $107340 | $117459 |
| Gross profit | 13646 | 14458 |
| Earnings | 3309 | 4101 |

---

---

| | | |
|:---|:---|:---|
|  | ***December 31,*** | ***December 31,*** |
|  | ***2025*** | ***2024*** |
| **Assets:** |  |  |
| &nbsp;&nbsp;&nbsp; Total current assets | $98619 | $124253 |
| &nbsp;&nbsp;&nbsp; Total non-current assets | 4154 | 9496 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total assets | $102773 | $133749 |
| **Liabilities and equity:** |  |  |
| &nbsp;&nbsp;&nbsp; Total liabilities | $70145 | $101562 |
| &nbsp;&nbsp;&nbsp; Total joint ventures' equity | 32628 | 32187 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total liabilities and equity | $102773 | $133749 |

---

The following is a summary of activity in our investment in BOMAY for the years ended *December 31, 2025* and *2024* in U.S. dollars (in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | ***Initial Investment at Merger (1), (2)*** | ***Undistributed Earnings*** | ***Cumulative Foreign Exchange Translation Adj*** | ***Investment in BOMAY*** |
| **Balance at December 31, 2023** | $9333 | $2967 | $(291) | $12009 |
| Equity in earnings | *—* | 1770 | *—* | 1770 |
| Less: dividend distributions | *—* | (1716) | *—* | (1716) |
| Foreign currency translation loss | *—* | *—* | (404) | (404) |
| **Balance at December 31, 2024** | 9333 | 3021 | (695) | 11659 |
| Equity in earnings | *—* | 1453 | *—* | 1453 |
| Less: dividend distributions | *—* | (1637) | *—* | (1637) |
| Foreign currency translation gain | *—* | *—* | 471 | 471 |
| **Balance at December 31, 2025** | $9333 | $2837 | $(224) | $11946 |

---

------

*(*1*)* *Accumulated statutory reserves in equity method investments of $2.66 million at *December 31, 2025* and *2024* is included in our investment in BOMAY. In accordance with the People*'*s Republic of China, (*"*PRC*"*), regulations on enterprises with foreign ownership, an enterprise established in the PRC with foreign ownership is required to provide for certain statutory reserves, namely (i) General Reserve Fund, (ii) Enterprise Expansion Fund and (iii) Staff Welfare and Bonus Fund, which are appropriated from net profit as reported in the enterprise*'*s PRC statutory accounts. A non-wholly-owned foreign invested enterprise is permitted to provide for the above allocation at the discretion of its board of directors. The aforementioned reserves can only be used for specific purposes and are *not* distributable as cash dividends.*

*(*2*)* *The Company's initial investment in BOMAY differed from the Company's 40% share of BOMAY's equity as a result of applying fair value accounting pursuant to ASC *805.* The basis difference is being accreted over *eight* years (the expected life of the joint venture). The Company's accretion during the years ended *December 31, 2025* and *2024* were both approximately $0.1 million, and is included in income from equity investments in foreign joint ventures in the accompanying Consolidated Statements of Operations. The remaining basis difference is summarized in the following table at *December 31, 2025* and *2024* (amounts in thousands):*

---

| | | |
|:---|:---|:---|
|  | ***December 31,*** | ***December 31,*** |
|  | ***2025*** | ***2024*** |
| Original basis difference | $1165 | $1165 |
| Less accumulated accretion | (831) | (702) |
| Net remaining basis difference, net at end of period | $334 | $463 |

---

In accordance with our long-lived asset policy, when events or circumstances indicate the carrying amount of an asset *may not* be recoverable, management tests long-lived assets for impairment. If the estimated future cash flows are projected to be less than the carrying amount, an impairment write-down (representing the carrying amount of the long-lived asset which exceeds the present value of estimated expected future cash flows) would be recorded as a period expense. In making this evaluation, a variety of quantitative and qualitative factors are considered including national and local economic, political and market conditions, industry trends and prospects, liquidity and capital resources and other pertinent factors. There were *no* impairments recognized in the years ended *December 31, 2025* and *2024*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *50*

------

[**Table of Contents**](#toc)

***7.* ACCRUED LIABILITIES**

The Company's accrued liabilities as of *December 31, 2025* and *2024* consisted of the following (in thousands):

---

| | | |
|:---|:---|:---|
|  | ***December 31,*** | ***December 31,*** |
|  | ***2025*** | ***2024*** |
| Compensation and benefits | $2573 | $2408 |
| Customer deposits and prepayments | 127 | 294 |
| Other taxes payable |  | 268 |
| Other accrued liabilities | 159 | 596 |
| &nbsp;&nbsp;&nbsp; **Total accrued liabilities** | $2859 | $3566 |

---

***8.* DEBT**

The Company's carrying value of debt, net of debt issuance costs, at *December 31, 2025* and *2024* consisted of the following (in thousands):

---

| | | |
|:---|:---|:---|
|  | ***December 31,*** | ***December 31,*** |
|  | ***2025*** | ***2024*** |
| Secured term note and credit facility, net of debt issuance costs | $6961 | $7975 |
| Insurance and other notes payable | 725 | 883 |
| Total | 7686 | 8858 |
| Less: amounts due within one year | (1931) | (2010) |
| **Total long-term debt, net of debt issuance costs** | $5755 | $6848 |

---

**Revolving Credit Facility**

On *March 27, 2025* the Company, along with its subsidiaries, Stabilis LNG Eagle Ford LLC, Stabilis GDS, Inc. and Stabilis LNG Port Allen, LLC (collectively, the "Borrowers") entered into a Modification Agreement (the "Agreement") to the existing Loan Agreement (the "Loan Agreement") with Cadence Bank. Under the Agreement, the $10.0 million revolving credit facility ("Revolving Credit Facility") maturity date was extended to *June 9, 2028.* Additionally, the Agreement amended the Fixed Charge Coverage Ratio terms primarily related to the inclusion of excess cash. For the years ended *December 31, 2025* and *2024*, *no* amounts were drawn under the Revolving Credit Facility.

The Revolving Credit Facility, as amended, contains a maximum aggregate borrowing amount of $10.0 million, subject to a borrowing base of *80%* of eligible accounts receivable. As of *December 31, 2025*, the Company has $1.7 million availability under the Revolving Credit Facility. The Company *may* request an increase in the maximum aggregate amount under the Revolving Credit Facility by up to $5.0 million, subject to the approval of Cadence Bank. All borrowings under the Revolving Credit Facility are secured by the Company's accounts receivable and deposit accounts. Borrowings under the Revolving Credit Facility incur interest at the Prime Rate published by the Wall Street Journal. Any unused portion is subject to a quarterly unused commitment fee of 0.5% per annum.

The Revolving Credit Facility contains various restrictions and covenants. Among other requirements, the Borrowers must maintain a consolidated net worth of at least $52.4 million as of *December 31, 2025*, such minimum amount increasing on *December 31* of each fiscal year thereafter by 50% of the Borrowers' positive net income for that fiscal year, and must maintain a minimum Fixed Charge Coverage Ratio of 1.2 to *1.0* on a consolidated basis, as defined in the Revolving Credit Facility, as of the last day of each fiscal quarter, on a trailing *twelve* (*12*) months basis. The Revolving Credit Facility also contains customary events of default. If an event of default under the Revolving Credit Facility occurs and is continuing, then Cadence Bank *may* declare any outstanding obligations under the Revolving Credit Facility to be immediately due and payable. In addition, if any of the Borrowers become the subject of voluntary or involuntary proceedings under any bankruptcy, insolvency or similar law, then any outstanding obligations under the Loan Agreement will automatically become immediately due and payable. As of *December 31, 2025*, the Company was in compliance with all its covenants related to the Revolving Credit Facility.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *51*

------

[**Table of Contents**](#toc)

**Secured Term Note**

On *April 8, 2021,* the Company entered into a loan agreement (the "Loan Agreement") with AmeriState Bank ("Lender"), as lender, pursuant to the United States Department of Agriculture, Business & Industry Loan Program, to provide for an advancing loan facility in the aggregate principal amount of up to $10.0 million (the "AmeriState Loan"). As of *December 31, 2025* and *2024*, the amount drawn totaled $9.0 million and the amount outstanding at *December 31, 2025* and *2024* was $7.2 million and $8.3 million, respectively. The AmeriState Loan, which is in the form of a term loan facility, matures on *April 8, 2031* and bears interest at 5.75% per annum through *April 8, 2026,* and the U.S. prime lending rate plus 2.5% per annum thereafter. The AmeriState Loan provides that proceeds from borrowings *may* be used for working capital purposes at the Company's liquefaction plant in George West, Texas and related fees and costs associated with the AmeriState Loan. Upon an Event of Default (as defined in the Loan Agreement), the Lender *may (*i) terminate its commitment, (ii) declare the outstanding principal amount of the Advancing Notes (as defined in the Loan Agreement) due and payable, or (iii) exercise all rights and remedies available to Lender under the Loan Agreement.

On *April 8, 2021,* Mile High LNG LLC, Stabilis GDS, Inc., Stabilis LNG Eagle Ford LLC and Stabilis Energy Services, LLC, each a wholly owned subsidiary of the Company (collectively, "Debtor"), entered into a Security Agreement and Assignment (the "Security Agreement") in favor of the Lender. The Security Agreement grants to Lender a *first* priority security interest in the collateral identified therein, which includes specific equipment owned by the Company. The Loan Agreement requires the Company to meet certain financial covenants which include a debt-to-net-worth ratio of *not* more than 9.1 to *1.0* and a debt service coverage ratio of *not* less than 1.2 to *1.0.* At *December 31, 2025*, the Company was in compliance with all of its debt covenants. Monthly payments are based upon a *seven*-year amortization in the amount of $0.1 million of principal per month plus accrued interest.

**Insurance Notes Payable**

The Company finances its annual commercial insurance premiums for its business and operations. For the *2025*-*2026* policies, the amount financed was $1.2 million. The outstanding principal balance on the premium finance note was $0.7 million at *December 31, 2025*. The renewal occurs each *September* and covers a period of up to *one* year. The Company makes equal monthly payments of principal and interest over the term of the note. The interest rate for the insurance financing on the *2025*-*2026* policy is 7.95%. At *December 31, 2024*, the outstanding balance related to the *2024*-*2025* policy was $0.9 million, with an interest rate of 7.95%.

**Debt Maturities and Interest Expense**

We had total indebtedness, excluding debt issuance costs, and excluding leases of $7.9 million as of *December 31, 2025*. Expected maturities at *December 31, 2025* are as follows (in thousands).

---

| | |
|:---|:---|
| **Year Ended December 31,** |  |
| 2026 | 1847.0 |
| 2027 | 1188.0 |
| 2028 | 1303.0 |
| 2029 | 1429.0 |
| 2030 | 1567.0 |
| Thereafter | 555.0 |
| **Total long-term debt, including current maturities** | $7889.0 |

---

During the years ended *December 31, 2025* and *2024*, the Company recorded interest expense related to the above indebtedness and related to leases (see Note *9* below) as follows (in thousands):

---

| | | |
|:---|:---|:---|
|  | ***December 31,*** | ***December 31,*** |
|  | ***2025*** | ***2024*** |
| Secured term note | $104 | $166 |
| Secured credit facility | 112 | 87 |
| Insurance and other notes payable | 57 | 38 |
| Interest from leases | 21 | 9 |
| **Total interest expense** | $294 | $300 |

---

During the years ended *December 31, 2025* and *2024*, the Company capitalized interest of $0.4 million and $0.4 million, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *52*

------

[**Table of Contents**](#toc)

***9.* LEASES**

Our leases primarily consist of operating leases for certain facilities and office spaces, and financing leases for equipment. Our leases have remaining terms of 1 to 3.2 years and *may* include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Operating lease assets also include any upfront lease payments made and exclude lease incentives and initial direct cost incurred. Lease expense for operating leases is recognized on a straight-line basis over the lease term.

The following table summarizes our operating and finance lease assets and liabilities as of *December 31, 2025* and *2024* (in thousands):

---

| | | | |
|:---|:---|:---|:---|
|  |  | ***December 31,*** | ***December 31,*** |
|  | ***Balance sheet line item classification*** | ***2025*** | ***2024*** |
| **Assets** |  |  |  |
| &nbsp;&nbsp;&nbsp; Operating lease assets | *Right-of-use assets and other noncurrent assets* | $929 | $149 |
| &nbsp;&nbsp;&nbsp; Finance lease assets | *Property and equipment, net of accumulated depreciation* | 301 | 349 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total lease assets |  | $1230 | $498 |
| **Liabilities** |  |  |  |
| &nbsp;&nbsp;&nbsp; Current |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating lease obligation | *Current portion of finance and operating lease obligations* | $197 | $70 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Finance lease obligation | *Current portion of finance and operating lease obligations* | 220 | 314 |
| &nbsp;&nbsp;&nbsp; Noncurrent |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating lease obligation | *Long-term portion of operating lease obligations* | 726 | 101 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total lease liabilities** |  | $1143 | $485 |

---

The following table summarizes the components of lease expense for the years ended *December 31, 2025* and *2024* (in thousands):

---

| | | | |
|:---|:---|:---|:---|
|  |  | ***Year Ended December 31,*** | ***Year Ended December 31,*** |
| **Lease Cost** | ***Classification*** | ***2025*** | ***2024*** |
| Operating lease cost | *Selling, general and administrative expenses* | $337 | $192 |
| Finance lease cost: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of leased assets | *Depreciation expense* | 46 | 18 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest on lease liabilities | *Interest expense* | 21 | 9 |
| **Net lease cost** |  | $404 | $219 |

---

**Other Leases/Rentals**

The Company leases certain buildings and facilities, including office space in Houston, Texas and Monterrey, Mexico. The Company also leases marine bunkering and staging sites in Galveston, Texas, along with certain equipment on a short term basis. Leases which are less than *twelve* months and have *no* cancellation penalties are *not* recorded on the Consolidated Balance Sheets.

Office rent expense totaled approximately $0.3 million and $0.2 million for the years ended *December 31, 2025* and *2024*, respectively.

The following schedule presents the future minimum lease payments for our operating and finance lease obligations at *December 31, 2025* (in thousands):

---

| | | | |
|:---|:---|:---|:---|
|  | ***Operating Leases*** | ***Finance Leases*** | ***Total*** |
| 2026 | $267 | $220 | $487 |
| 2027 | 408 |  | 408 |
| 2028 | 360 |  | 360 |
| 2029 and Thereafter | 3 |  | 3 |
| Total lease payments | 1038 | 220 | 1258 |
| Less: Interest | (115) |  | (115) |
| **Present value of lease liabilities** | $923 | $220 | $1143 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *53*

------

[**Table of Contents**](#toc)

Lease term and discount rates for our operating and finance lease obligations are as follows:

---

| | | |
|:---|:---|:---|
|  | ***December 31,*** | ***December 31,*** |
| **Lease Term and Discount Rate** | ***2025*** | ***2024*** |
| Weighted-average remaining lease term (years) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating leases | 2.5 | 1.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Finance leases | *—* | 1 |
| Weighted-average discount rate |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating leases | 8.2% | 9.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Finance leases | —% | 8.5% |

---

The following table summarizes the supplemental cash flow information related to leases as of *December 31, 2025* and *2024* (in thousands):

---

| | | |
|:---|:---|:---|
| **Other information** | ***December 31, 2025*** | ***December 31, 2024*** |
| Cash paid for amounts included in the measurement of lease liabilities |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating cash flows from operating leases | $337 | $187 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financing cash flows from finance leases | 94 | 76 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest paid | 21 | 9 |
| Noncash activities from right-of-use assets obtained in exchange for lease obligations: |  |  |
| Operating leases | $877 | $167 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financing leases |  | 347 |

---

**Time Charter Agreement - Marine Bunkering Vessel**

On *December 12, 2025,* the Company entered into a multi-year time charter agreement for a marine bunkering vessel, the Garibaldi, commencing in *2026.* The Company determined that the time charter agreement represents an operating lease with commencement beginning on the delivery date of the Garibaldi, on or about *March 1, 2026.* At *December 31, 2025*, no amount was reported on our Consolidated Balance Sheets, as lease commencement had *not* occurred.

***10.* RELATED PARTY TRANSACTIONS**

J. Casey Crenshaw (our Chairman of the Board) is the beneficial owner of 50% of The Modern Group and is deemed to jointly control The Modern Group with family members.

**Office Rent, Purchases of Services and Supplies and Sales**

From *January 1, 2025* through *September 30, 2025,* the Company subleased office space from The Modern Group. The Company and The Modern Group mutually canceled the sublease during the quarter ended *September 30, 2025* and the Company entered into an office lease directly with the landlord ("new office lease") for its corporate office in Houston, Texas. The new office lease is effective *October 1, 2025,* for approximately $28 thousand per month through *January 31, 2029.* The new office lease qualifies as an operating lease under U.S. GAAP resulting in a right-of-use asset ("ROU" asset) and operating lease liability of $0.9 million which is included on the Company's Consolidated Balance Sheet at *December 31, 2025*. The corresponding remaining ROU asset and lease liability of $0.2 million associated with the sublease with The Modern Group were reversed with *no* further lease charges recorded after *September 30, 2025.*

The Company also purchases supplies and services from subsidiaries of The Modern Group. For the years ended *December 31, 2025* and *2024*, the Company had total purchases and lease payments with The Modern Group of $0.2 million and $0.2 million, respectively. The Company had no sales to The Modern Group during the years ended *December 31, 2025* and *2024*. As of *December 31, 2025* and *2024*, the Company had no accounts receivable due from The Modern Group and accounts payable due to The Modern Group were immaterial.

Chart Energy and Chemicals, Inc. ("Chart E&C") beneficially owns 7.9% of our outstanding common stock at *December 31, 2025*. For the years ended *December 31, 2025* and *2024*, the Company had total purchases from Chart E&C of $0.1 million and $0.6 million, respectively. The Company had no sales to Chart E&C during the years ended *December 31, 2025* and *2024*. The Company had no accounts receivable due from Chart E&C at *December 31, 2025* and *2024* and accounts payable due to Chart E&C at *December 31, 2025* and *2024* were immaterial.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *54*

------

[**Table of Contents**](#toc)

***11.* INCOME TAXES**

The Company is subject to income taxes in the U.S. (both federal and state) and in foreign jurisdiction, specifically for Mexico, Canada and China. Changes in the tax laws or regulations in these jurisdictions, or in positions by the relevant authorities regarding their application, admistration or interpretation, *may* affect our tax liability, return on investments and business operations. On *July 4, 2025,* the One Big Beautiful Bill Act ("OBBBA") was signed into U.S. law, which includes significant changes to the federal income tax system. The Company has recorded the OBBBA tax impact in the provision for income taxes for the years ended *December 31, 2025* and *2024*. The OBBBA tax impact did *not* have a material effect on our financial statements.

The Company adopted the provisions required by ASU *2023*-*09* on a retrospective basis effective *December 31, 2025.* ASU *2023*-*09* requires additional and disaggregated tax disclosures. The Company has presented its *2025* and *2024* income tax disclosures to comply with ASU *2023*-*09* below and in Note *14* (in thousands).

---

| | | |
|:---|:---|:---|
|  | ***December 31, 2025*** | ***December 31, 2024*** |
| U.S. income (loss) | $(1232) | $5415 |
| Non-U.S. loss | (68) | (331) |
| **Worldwide income (loss) before tax** | $(1300) | $5084 |

---

The components for income tax expense included in the accompanying Consolidated Statements of Operations for the years ended *December 31, 2025* and *2024* are as follows (in thousands):

---

| | | |
|:---|:---|:---|
|  | ***December 31, 2025*** | ***December 31, 2024*** |
| Current state income tax expense | $(110) | $313 |
| Current foreign income tax expense | 164 | 172 |
| Deferred income tax expense (federal, foreign and state) |  |  |
| &nbsp;&nbsp;&nbsp; **Income tax expense** | $54 | $485 |

---

A reconciliation of income taxes computed using the 21% U.S. federal statutory rate to the amount reflected in the accompanying consolidated statement of operations within net income for the years ended *December 31, 2025* and *2024* is as follows (in thousands):

---

| | | |
|:---|:---|:---|
|  | ***December 31, 2025*** | ***December 31, 2024*** |
| Income tax benefit using U.S. federal statutory rate | $(273) | $1067 |
| State income tax expense, net | 91 | 222 |
| Foreign Tax Effects: |  |  |
| Foreign tax rate differential - Mexico | 14 | 70 |
| Effect of Cross-Border Tax Laws: |  |  |
| Foreign taxes, net | 129 | 136 |
| Foreign dividend | 344 | 360 |
| Change in valuation allowance | (112) | (1511) |
| Non-taxable or Non-deductible Items: |  |  |
| Officer's compensation | 208 | 269 |
| Dividend received deduction | (344) | (360) |
| Meals and entertainment | 49 | 59 |
| Other | (52) | 173 |
| **Total income tax expense** | $54 | $485 |

---

The effects of temporary differences and carryforwards that give rise to deferred tax assets (liabilities) are as follows (in thousands):

---

| | | |
|:---|:---|:---|
|  | ***December 31, 2025*** | ***December 31, 2024*** |
| Federal net operating loss carryforward | $10278 | $11163 |
| Stock compensation | 339 | 337 |
| Accrued compensation | 427 | 57 |
| Basis of intangible assets | 120 | 132 |
| Capital loss carryforward | 1532 | 1631 |
| Other | 73 | 5 |
| Valuation allowance | (7784) | (7896) |
| &nbsp;&nbsp;&nbsp; **Total deferred tax assets** | 4985 | 5429 |
| Basis of property, plant and equipment | 2201 | 3189 |
| Prepaid expenses | 215 | 219 |
| Basis in foreign entity | 2569 | 2021 |
| &nbsp;&nbsp;&nbsp; Total deferred tax liabilities | 4985 | 5429 |
| **Net deferred tax liabilities** | $— | $— |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *55*

------

[**Table of Contents**](#toc)

At *December 31, 2025*, the Company has net operating loss carry forwards of approximately $48.6 million which *may* be used to offset future taxable income. This excludes net operating loss carry forwards of $81.1 million it believes will *not* be eligible to offset future income. The $81.1 million is excluded from the Company's calculation of deferred tax assets prior to the establishment of a valuation allowance. The Company experienced a change in ownership significantly limiting its recognition of net operating loss carryforwards of an acquired subsidiary at *July 26, 2019* due to its change in ownership.

The Company's net operating loss carryforwards include $26.9 million of losses arising prior to *December 31, 2017* that expire in *2028* through *2037.* Those arising in tax years after *2017* can be carried forward indefinitely. Also, for losses arising in taxable years beginning after *December 31, 2017* the operating loss deduction is limited to *80%* of taxable income (determined without regard to the deduction). The Company has established a valuation allowance to fully reserve the Company's net deferred tax assets at *December 31, 2025* based upon its assessment of whether it is more likely than *not* that the Company will realize its deferred tax assets which includes consideration of the nature and amount of the Company's net losses arising from prior periods. The Company has generated net income from operations for the years ended *December 31, 2024* and *2023* and the Company's assessment of the amount of valuation allowance needed could change in future periods.

The Company recognizes the tax benefit or obligation from an uncertain tax position only if it is more likely than *not* that the tax position will be sustained on examination by the taxing authorities, based *not* only on the technical merits of the tax position based on tax law, but also past administrative practices and precedents of the taxing authority. The tax benefits or obligations are recognized in our financial statements if there is a greater than *50%* likelihood of the tax benefit or obligation being realized upon ultimate resolution. As of *December 31, 2025* and *2024*, the Company had *no* uncertain tax positions that required recognition.

As of *December 31, 2025,* the Company's federal income tax return for the year ended *December 31, 2022* was under examination by the Internal Revenue Service (IRS). The Company does *not* anticipate any additional amounts to be owed as a result of this examination. Tax returns for years *2022* to *2024* remain subject to examination for both federal and state filings.

***12.* COMMITMENTS AND CONTINGENCIES**

**Environmental Matters**

The Company is subject to federal, state and local environmental laws and regulations. The Company does *not* anticipate any expenditures to comply with such laws and regulations that would have a material impact on the Company's consolidated financial position, results of operations or liquidity. The Company believes that its operations comply, in all material respects, with applicable federal, state and local environmental laws and regulations.

**Litigation, Claims and Contingencies**

The Company *may* become party to various legal actions that arise in the ordinary course of its business. The Company is also subject to audit by tax and other authorities for varying periods in various federal, state and local jurisdictions, and disputes *may* arise during the course of these audits. It is impossible to determine the ultimate liabilities that the Company *may* incur resulting from any of these lawsuits, claims, proceedings, audits, commitments, contingencies and related matters or the timing of these liabilities, if any. If these matters were to ultimately be resolved unfavorably, it is possible that such an outcome could have a material adverse effect upon the Company's consolidated financial position, results of operations, or liquidity. The Company does *not,* however, anticipate such an outcome and it believes the ultimate resolution of these matters will *not* have a material adverse effect on the Company's consolidated financial position, results of operations, or liquidity. Additionally, the Company currently expenses all legal costs as they are incurred.

**Other**

Future capital expenditures will be dependent upon investment needs as well as the availability of additional capital at favorable terms. At *December 31, 2025*, we had open purchase orders of approximately $1.6 million related to future commitments for capital expenditures.

**Time Charter Agreement**

On *December 12, 2025,* the Company entered into a time charter agreement with Seaspan Energy Ltd. for the time charter of the Garibaldi, a LNG bunkering vessel, commencing in *2026.* Pursuant to the time charter agreement, Stabilis GDS will pay the owners a daily rate of $32,400 for *730* days (two years) beginning on the delivery date of the Garibaldi to the Company which is anticipated in early *2026.*

***13.* STOCKHOLDERS**' **EQUITY AND STOCK-BASED COMPENSATION**

**Stock-Based Compensation**

The Company includes stock compensation expense within general and administrative expenses in the Consolidated Statements of Operations. The Company recognized total stock-based compensation costs, net of forfeitures, of $0.4 million and $1.2 million for the years ended *December 31, 2025* and *2024*, respectively. Stock-based compensation expense is related to equity awards to executives and other employees, awarded from the Company's Amended and Restated long-term incentive plan.

**Issuance of Stock-based Awards**

The Company has a long-term incentive plan, originally approved by the Board of Directors in *2019.* In *July 2021* and in *August 2023,* the plan was amended (the "Amended and Restated Plan") to increase the maximum number of shares of common stock available for issuance from its original 1,675,000 shares to 4,000,000 (in *July 2021)* and to 5,500,000 (in *August 2023).* The plan provides for the award of stock options, stock appreciation rights, restricted stock, restricted stock units, performance awards, dividend equivalents, substitute awards, other stock-based awards, cash awards and/or any combination of the foregoing which *may* be granted to employees, officers and directors of the Company and affiliates or to any other person who performs services to the Company and affiliates, including independent contractors and consultants of the Company and its subsidiaries. At *December 31, 2025*, the number of shares of common stock available for issuance under the Amended and Restated Plan is 3,872,379 shares.

*No* participant *may* receive a grant covering more than 2,000,000 shares of our common stock in any year and a non-employee member of the Board *may not* be granted more than 100,000 shares in any year. In the event of certain changes in the Company's common stock such as recapitalization, reclassification, stock split, combination or exchange of shares, stock dividends or the like, appropriate adjustment will be made in the number and kind of shares available for issuance under the Amended and Restated Plan as well as the purchase price, if any, per share.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *56*

------

[**Table of Contents**](#toc)

***(a) Restricted Stock Units ("RSU's")***

*No* RSUs were granted during the years ended *December 31, 2025* and *2024*. All remaining RSU's vested in *2025* and there are no RSU's outstanding at *December 31, 2025.* A summary of the Company's RSUs activity during the fiscal years ended *December 31, 2025* and *2024* are presented in the following table:

---

| | | |
|:---|:---|:---|
|  | ***# of Restricted Stock Awards and Units*** | ***Weighted Average Grant Date Fair Value per Share*** |
| **Unvested at 12/31/2023** | 27177 | 4.11 |
| &nbsp;&nbsp;&nbsp; Vested | (13588) | 4.11 |
| **Unvested at 12/31/2024** | 13589 | 4.11 |
| &nbsp;&nbsp;&nbsp; Vested | (13589) | 4.11 |
| **Unvested at 12/31/2025** |  |  |

---

During the years ended *December 31, 2025* and *2024*, the Company expensed stock based compensation related to restricted stock units of $7 thousand and $0.1 million, respectively.

***(b) Stock Options***

On *February 18, 2022,* the Company granted executives 774,505 stock options under the *2019* plan to purchase an equal number of shares of the Company's common stock, with a strike price equal to $6.00 per share. The stock options vested equally over a three-year vesting period. The Company estimated the value of the options using a valuation model. The full aggregate fair value determined was $1.5 million using observable inputs from trading values of the Company's shares of stock. The stock options were expensed over the vesting period. Assumptions used in determining the valuation of the options included the following:

• A strike price of $6.00 with 3 year vesting terms and the closing price of the common stock of $4.11;

• The risk free rate assumed the average return of a U.S. Treasury bill of *3* years (the vesting period), which was approximately 0.7% at *February 18, 2022;*

• $0 dividends, as we have *not* historically paid dividends;

• A term of 6.5 years, which was determined as the midpoint between the vesting period of *3* years with an anticipated expiration date of 10 years; and

• Volatility of approximately 44%.

 **Management Transition**

Effective *January 31, 2025,* the Company appointed the Company's Chairman of the Board, J. Casey Crenshaw, as its Executive Chairman, and interim President and Chief Executive Officer. Mr. Crenshaw replaced Westervelt T. Ballard, Jr., who mutually agreed with the Company to terminate his employment as the Company's President and Chief Executive Officer and voluntarily resigned his position as a director. As part of Mr. Ballard's separation, the Company entered into a release and consulting agreement with Mr. Ballard whereby the Company will paid Mr. Ballard separation pay of $1.0 million over a *twelve*-month period, and will pay additional pay of $41 thousand representing an amount equal to a prorated bonus at "target" performance that Mr. Ballard would have received for his *2025* performance and reimbursement of COBRA premiums over what Mr. Ballard would normally pay for Company provided insurance up to a maximum of 18 months. Additionally, Mr. Ballard received a payment of $49 thousand per month for the remainder of *2025* for his consulting services all of which was included in selling, general and administrative expenses in the accompanying Consolidated Statement of Operations for the year ended *December 31, 2025.* 

Effective *January 31, 2025,* the Company and Mr. Ballard additionally agreed that 7,765 unvested restricted stock units and 147,525 unvested stock options granted under the Company's Amended and Restated Long-Term Incentive Plan would vest as of the date of Mr. Ballard's separation of employment. The exercise period of these options plus 1.6 million options which had vested prior to Mr. Ballard's separation, was amended to expire *December 31, 2025.* The amendment of the exercise period represents a modification of an equity award under U.S. GAAP and the Company recognized $0.4 million in additional non-cash stock compensation expense related to the adjustment of the exercise period of his options to *December 31, 2025.* The assumptions included in estimating the additional expense include:

• The risk free rate assumed the average return of a U.S. Treasury bill for 6 months, which was approximately 4% at *January 31, 2025;*

• $0 dividends, as we have *not* historically paid dividends;

• An expected option term of 5.5 months; and

• Volatility of approximately 50%.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *57*

------

[**Table of Contents**](#toc)

On *December 31, 2025*, in accordance with Mr. Ballard's release and consulting agreement, Mr. Ballard's 1,742,574 stock options expired unexercised. At *December 31, 2025*, all remaining stock options were out-of-the money with strike prices in excess of market prices and remain unexercised. These options have a weighted average remaining term of 6.1 years at *December 31, 2025*. A summary of the Company's stock option awards activity during the fiscal years *2025* and *2024* are presented in the following table:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | ***Number of Options*** | ***Weighted Average Exercise Price per Share*** | ***Weighted Average Grant Date Value per Option*** | ***Weighted Average Remaining Contractual Term (in years)*** |
| **Outstanding at December 31, 2023** | 2074505 | $8.51 | $2.11 | 7.9 |
| &nbsp;&nbsp;&nbsp; Granted |  |  |  | *—* |
| **Outstanding at December 31, 2024** | 2074505 | 8.51 | 2.11 | 6.8 |
| &nbsp;&nbsp;&nbsp; Expired | (1742574) | 8.98 | 2.14 | *—* |
| **Outstanding at December 31, 2025** | 331931 | 6.00 | 1.95 | 6.1 |
| **Options vested and exercisable at December 31, 2025** | 331931 | $6.00 | $1.95 | 6.1 |

---

During the years ended *December 31, 2025* and *2024*, the Company expensed stock based compensation related to stock options of $0.4 million and $1.1 million, respectively, which is included in general and administrative expenses in the Consolidated Statements of Operations. The stock based expense incurred during the year ended *2025* primarily included a $0.4 million charge for the modification of Mr. Ballard's *2021* and *2022* stock option grants, related to Mr. Ballard's separation.

 **Unrecognized Stock-Based Compensation**

As of *December 31, 2025*, the Company had no unrecognized compensation costs. The Company has no remaining unvested equity awards.

**Common Stock**

The Company is authorized to issue up to 37,500,000 shares of Common Stock, $0.001 par value per share. The following table summarizes issuances of shares of our common stock for the years ended *December 31, 2025* and *2024* (amounts in thousands):

---

| | | | |
|:---|:---|:---|:---|
|  |  | ***Year Ended December 31,*** | ***Year Ended December 31,*** |
| **Issuance** | ***Additional disclosure*** | ***2025*** | ***2024*** |
| Vesting of employee stock awards <sup>(1)</sup> | *Stock-Based Compensation discussion above* | 11287 | 11623 |

---

------

*(*1*)* *Amounts are net of shares withheld to cover employee tax payments. Amounts vested are for various employees.*

**Preferred Stock**

Our Board of Directors has the authority, without stockholder approval, to issue up to 1,000,000 shares of Preferred Stock, $0.001 par value. The authorized Preferred Stock *may* be issued by the Board of Directors in *one* or more series and with the rights, privileges and limitations of the Preferred Stock determined by the Board of Directors. The rights, preferences, powers and limitations of different series of Preferred Stock *may* differ with respect to dividend rates, amounts payable on liquidation, voting rights, conversion rights, redemption provisions, sinking fund provisions, and other matters. As of *December 31, 2025*, we have *no* Preferred Stock issued or outstanding.

**Employee *401*(k) Plan**

The Company has established a savings plan ("Savings Plan") which is qualified under Section *401*(k) of the Internal Revenue Code. Eligible employees *may* elect to make contributions to the Savings Plan through salary deferrals of up to *90%* of their base pay, subject to Internal Revenue Code limitations. The Company contributes to the Savings Plans, subject to limitations. For the years ended *December 31, 2025* and *2024*, the Company contributed $0.3 million and $0.3 million, respectively, in matching contributions to the Savings Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *58*

------

[**Table of Contents**](#toc)

***14.* SUPPLEMENTAL CASH FLOW INFORMATION**

Additional income taxes paid disclosures have been provided below as required under ASU *2023*-*09* on a retrospective basis. The Company's supplemental disclosure of cash flow information for the years ended *December 31, 2025* and *2024* is as follows (in thousands):

---

| | | |
|:---|:---|:---|
|  | ***Year Ended December 31,*** | ***Year Ended December 31,*** |
|  | ***2025*** | ***2024*** |
| **Supplemental disclosure of cash flow information:** |  |  |
| Income taxes paid, net: |  |  |
| U.S. Federal | $— | $— |
| U.S. State | 174 | 367 |
| Foreign |  |  |
| China | 164 | 172 |
| Mexico |  |  |
| Interest paid | 613 | 575 |
| **Non-cash investing and financing activities:** |  |  |
| Acquisitions of fixed assets included within accounts payable and accrued expenses | $972 | $175 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Right-of-use asset acquired under operating leases | 877 | 167 |
| Equipment acquired under finance lease |  | 347 |
| Insurance premium financing | 1026 | 1042 |

---

Income taxes paid, net of refunds, exceeding *five* percent of total income taxes paid, net of refunds, in each jurisdiction for the years ended *December 31, 2025* and *2024* is as follows (in thousands):

---

| | | |
|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2025** | **2024** |
| U.S. Federal | $— \* | $— \* |
| U.S. State |  |  |
| Florida | — \* | 31 |
| Louisiana | 32 | 264 |
| Texas | 118 | 46 |
| Foreign |  |  |
| China | 164 | 172 |
| Mexico | — \* | — \* |

---

------

*\**&nbsp;&nbsp;&nbsp;&nbsp;*Jurisdiction below threshold for the period presented.*

***15.* NET INCOME (LOSS) PER SHARE**

The calculation of net income (loss) per common share for the years ended *December 31, 2025* and *2024* are presented below. For the year ended *December 31, 2025*, there were no dilutive securities outstanding, as all RSUs were vested at *December 31, 2025*. Outstanding stock options of 331,931 that were vested and unexercised at *December 31, 2025* were excluded, as the exercise price exceeded the market price at *December 31, 2025*. For the year ended *December 31, 2024*, dilutive securities consist of RSUs of 11,981, under the treasury method. At *December 31, 2024*, outstanding stock options that were vested and unexercised were excluded, as the exercise prices exceeded the market price at *December 31, 2024*. Stock appreciation rights ("SARS") of 658,437 were excluded at *December 31, 2024*, as the SARs expired unexercised on *December 31, 2024*.

---

| | | |
|:---|:---|:---|
|  | ***Year Ended*** | ***Year Ended*** |
|  | ***December 31,*** | ***December 31,*** |
|  | ***2025*** | ***2024*** |
| **Weighted average shares:** |  |  |
| Basic weighted average number of common shares outstanding | 18595086 | 18583485 |
| Dilutive securities |  | 11981 |
| Total shares including dilutive securities | 18595086 | 18595466 |
| **Net income (loss)** | $(1354) | $4599 |
| **Net income (loss) per common share:** |  |  |
| Basic and diluted per common share | $(0.07) | $0.25 |
| **Weighted average number of common shares outstanding:** |  |  |
| Basic | 18595086 | 18583485 |
| Diluted | 18595086 | 18595466 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *59*

------

[**Table of Contents**](#toc)

***16.* SUBSEQUENT EVENTS**

**Time Charter Agreement**

On *December 12, 2025,* the Company entered into a time charter agreement with Seaspan Energy Ltd. for the the Garibaldi, a LNG bunkering vessel, commencing in *2026.* See also discussion of terms of the lease in Note *9.*

**Multi-year, On-site Power Generation for a Data Center**

In *February 2026,* the Company executed a multi-year take-or-pay contract to supply LNG for behind-the-meter power generation for a world-leading provider of remote and temporary power generation and energy services at a data center. LNG deliveries are expected to commence during the *first* quarter of 2027 and continue through the *first* quarter of *2029.* Total revenue under the initial multi-year term of the contract is estimated to be approximately $200 million. This contract represents the Company's *first* contract in support of data center behind-the-meter power generation, consistent with its strategic focus on growing, high-value vertical markets. The supply agreement will require investment of approximately $25.0 million in capital additions and near term working capital needed to fund the start-up of the project which is to be funded by payments from the customer. The Company received a prepayment of $15.0 million during *February 2026,* and expects an additional $10.0 million during the next *six* months. The prepayment received is restricted as to use for equipment and working capital requirements for this project; however the Company will *not* be required to repay any of the prepayments at conclusion of the contract.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *60*

------

[**Table of Contents**](#toc)

**ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE.**

None.

**ITEM 9A. CONTROLS AND PROCEDURES**

**Evaluation of Disclosure Controls and Procedures**

As required by Rule 13a-15(b) of the Exchange Act, we have evaluated, under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of the end of the period covered by this report. Our disclosure controls and procedures are designed to provide reasonable assurance that the information required to be disclosed by us in reports that we file or submit under the Exchange Act is accumulated and communicated to our management, including our principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure and is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the SEC. Based upon the evaluation, our principal executive officer and principal financial officer have concluded that our disclosure controls and procedures were effective at December 31, 2025 at the reasonable assurance level.

**Management**'**s Report on Internal Control over Financial Reporting**

Our management is responsible for establishing and maintaining adequate internal control over financial reporting, as defined in Rule 13a-15(f) under the Exchange Act. Our management assessed the effectiveness of our internal control over financial reporting as of December 31, 2025. In making this assessment, our management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission on Internal Control-Integrated Framework. Our management has concluded that our internal control over financial reporting was effective as of December 31, 2025 based on these criteria. This annual report does not include an attestation report of our independent registered public accounting firm regarding internal control over financial reporting. Management's report was not subject to attestation by our independent registered public accounting firm pursuant to section 404(c) of the Sarbanes-Oxley Act of 2002, as amended, that permits the Company, as a smaller reporting company, to provide only management's report in this annual report.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

**Changes in Internal Control over Financial Reporting**

There have been no changes in our internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act) that occurred during our last fiscal quarter that have materially affected or are reasonably likely to materially affect our internal control over financial reporting.

**ITEM *9B.* OTHER INFORMATION**

None of the Company's officers or directors adopted, modified or terminated a Rule *10b5*-*1* trading arrangement or a non-Rule *10b5*-*1* trading arrangement during the Company's fiscal quarter ended *December 31, 2025*, as such terms are defined under Item *408*(a) of Regulation S-K.

**ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS**

None.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 61

------

[**Table of Contents**](#toc)

**PART III**

**ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE**

**Directors and Executive Officers of Stabilis Solutions, Inc.**

The following table sets forth the names, ages (as of February 25, 2026) and titles of our current executive officers and directors.

---

| | | |
|:---|:---|:---|
| **Name** | **Age** | **Position** |
| J. Casey Crenshaw | 51 | Executive Chairman and Interim President and Chief Executive Officer |
| Andrew L. Puhala | 56 | Chief Financial Officer |
| Benjamin J. Broussard | 46 | Director |
| Stacey B. Crenshaw | 49 | Director |
| Edward L. Kuntz | 81 | Director |
| Peter C. Mitchell | 70 | Director |
| Matthew W. Morris | 54 | Director |

---

**J. Casey Crenshaw**

**Executive Chairman and Interim President and Chief Executive Officer**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;J. Casey Crenshaw, age 51, is the Interim President and Chief Executive Officer and Executive Chairman, effective January 31, 2025. Mr. Crenshaw served as Non-Executive Chairman of the Board of Directors of Stabilis from August 23, 2021 to January 31, 2025 and as Executive Chairman from July 26, 2019 until August 23, 2021. He served on the Board of Directors of American Electric Technologies, Inc. from 2012 to July 2019 and as the Executive Chairman of the Board of Directors of Stabilis Energy, LLC from November 2018 until July 2019. Mr. Crenshaw served as President, CEO, and Chairman of the Board of Stabilis Energy, LLC from its formation in February 2013 until November 2018. Mr. Crenshaw also serves as President and a member of the Board of Directors of The Modern Group, Ltd., a privately-owned diversified manufacturing, parts and distribution, rental/leasing and finance business headquartered in Beaumont, Texas. Mr. Crenshaw has held various executive positions with The Modern Group since 1997, including over 10 years as Chief Financial Officer. Mr. Crenshaw holds a B.A. in Finance from Texas A&M University. Mr. Crenshaw is the spouse of director Stacey B. Crenshaw.

**Andrew L. Puhala**

**Chief Financial Officer**

Andrew L. Puhala, age 56, has been Chief Financial Officer of Stabilis since November 2018. From August 2017 until November 2018, Mr. Puhala served as VP of Finance for The Modern Group, Ltd. From September 2015 to June 2017 he served as Chief Financial Officer of ERA Group Inc. (NYSE:ERA), a provider of helicopter transport services primarily to the energy industry. Mr. Puhala served as Chief Financial Officer of American Electric Technologies, Inc. from January 2013 to September 2015 and CFO of AccessESP from 2011- 2012. Mr. Puhala held a variety of senior financial roles at Baker Hughes, Inc. from 1996 - 2011 including VP finance - Middle East Region, Division Controller and Assistant Treasurer. Mr. Puhala is a Certified Public Accountant and received a B.B.A. in Accounting and an M.P.A. from the University of Texas at Austin.

**Benjamin J. Broussard**

**Director**

Benjamin J. Broussard, age 46, was appointed to the Board of Directors of Stabilis on July 26, 2019. Mr. Broussard has been the Chief Financial Officer for The Modern Group, Ltd. since March 2021. Since joining The Modern Group in 2013 until March 2021 he served as the Director of Finance. Mr. Broussard began his career as a commercial banker with Washington Mutual Bank in 2001. After leaving the bank in 2008, he worked at T-Mobile until 2011 and as a consultant to Microsoft's Global Procurement Group from 2011 to 2013. Mr. Broussard holds a B.A. from the University of Notre Dame and J.D. from South Texas College of Law Houston.

**Stacey B. Crenshaw**

**Director**

Stacey B. Crenshaw, age 49, was appointed to the Board of Directors of Stabilis on February 4, 2020. She co-founded Stabilis Energy, LLC in 2013. Prior to her role with Stabilis she was a practicing attorney with Germer Gertz, LLP from 2002 to 2004. Mrs. Crenshaw is the owner of ClaraVaille, a designer and retailer of custom jewelry. Mrs. Crenshaw is also actively involved in her local community through leadership roles at the Neches River Festival and the Symphony League of Beaumont. From 2006 to 2011 she was the founder and director of CHAD's Place, a non-profit that held conferences and provided support groups for the bereaved. Mrs. Crenshaw has also served or is serving on several boards including Family Services of Southeast Texas, All Saints Episcopal School, the advisory board of the Art Museum of Southeast Texas and as a Trustee of Episcopal High School in Houston, Texas. Mrs. Crenshaw received a Bachelor of Liberal Arts degree in Journalism from Texas A&M University and a Doctor of Jurisprudence degree from the University of Houston Law Center. Mrs. Crenshaw is the spouse of director and officer J. Casey Crenshaw.

**Edward L. Kuntz**

**Director**

Edward L. Kuntz, age 81, was appointed to the Board of Directors of Stabilis on July 26, 2019. Mr. Kuntz is the former Chairman and Chief Executive Officer of Kindred Healthcare, formerly a diversified provider of post-acute care services in the United States. From 1998 through May 2014 he served as Chairman of the Board of Directors of Kindred and as Chief Executive Officer from 1998 to 2004. Mr. Kuntz was also the Chairman of the Board of Directors of U.S Physical Therapy, Inc., a publicly held operator of physical therapy clinics and related businesses, where he was a director from 2014 to May 2024. From 2000 through 2016, Mr. Kuntz served as a director of Rotech Healthcare, Inc., one of the largest providers of home medical equipment and related products and services in the United States. He served on the Board of Directors and as Chairman of the Audit Committee of American Electric Technologies, Inc. from September 2013 to July 2019. Mr. Kuntz received B.A., J.D. and L.L.M. degrees from Temple University.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 62

------

[**Table of Contents**](#toc)

**Peter C. Mitchell**

**Director**

Peter C. Mitchell, age 70, was appointed to the Board of Directors of Stabilis on July 26, 2019. Mr. Mitchell currently is a member of the Board of Directors and Audit Committee Chair of Northcliff Resources Ltd.and Taseko Mines Limited. He was most recently Senior Vice President and Chief Financial Officer of Coeur Mining, Inc. a leading precious metals producer, which owns and operates mines throughout North America, including the Palmarejo complex in Mexico, one of the world's largest silver mines. Peter joined Coeur as CFO in 2013, and was responsible for investor relations, financial planning and analysis, financial reporting, information technology, tax and compliance, in addition to serving as a key team member on acquisition and divestiture activities and leading all capital markets activity in multiple equity and debt financings. Previously, he held executive leadership positions in finance and operations with a variety of U.S. and Canadian companies both public and private equity sponsored, among them Taseko Mines Ltd., Vatterott Education Centers, Von Hoffmann Corporation and Crown Packaging Ltd. Mr. Mitchell is a former member of the Board of Directors and Audit Committee Chair for Northern Dynasty Minerals Ltd. and Montage Gold Corporation, where he was also non-executive Chairman. He was also on the Board of Directors and Special Committee Chairman of Bear Creek Mining Corporation. He earned a B.A. in Economics from Western University, an MBA from the University of British Columbia, and is a Chartered Accountant (CPA-CA).

**Matthew W. Morris**

**Director**

Matthew W. Morris, age 54, was appointed to the Board of Directors of Stabilis on November 2, 2021. Mr. Morris has served as a director for Cornerstone Strategic Value Fund, Inc., and Cornerstone Total Return Fund, Inc. since November 2017, and is a member of the Audit Committee and Nominating and Corporate Governance Committee for both companies. Mr. Morris also serves as a director of Stewart Information Services Corporation where he previously served as CEO from 2011 to September 9, 2019. Prior to serving as CEO, he served in various executive management positions for Stewart Information Services Corporation, Stewart Title Company and Stewart Title Guaranty Company. He previously served as director for a strategic litigation consulting firm, offering trial, and settlement sciences, crisis management and communications strategy. In addition to his board service, Mr. Morris is the founder and CEO of Lutroco, LLC, a private investment and advisory firm engaging purpose driven entrepreneurs for growth and impact. He received a Bachelor of Business Administration in organizational behavior and business policy from Southern Methodist University, and a Master of Business Administration with a concentration in finance from The University of Texas.

**Director Independence**

The Board has determined that Messrs. Peter C. Mitchell, Edward L. Kuntz and Matthew W. Morris are currently the Company's independent directors as defined by the rules and regulations of The NASDAQ Stock Market LLC ("NASDAQ") and SEC.

The NASDAQ definition of independence includes a series of objective tests, such as that the director is not an employee of the Company and has not engaged in various types of business dealings involving the Company, which would prevent a director from being independent.

**Board Committees**

The Company has appointed certain non-employee Board members to the Audit Committee and the Compensation Committee. Both Committees are governed by charters adopted by the Board. The charters establish the purposes of the Committees as well as membership guidelines. They also define the authority, responsibilities and procedures of each Committee in relation to the Committee's role in supporting the Board and assisting the Board in discharging its duties in supervising and governing the Company.

The Audit Committee consist of Messrs. Peter C. Mitchell (Chair), Edward L. Kuntz and Matthew W. Morris. The Board has determined that Mr. Mitchell satisfies the definition of "audit committee financial expert" and is independent, as defined by the rules and regulations of NASDAQ.

The Audit Committee oversees, reviews, acts on and reports on various auditing and accounting matters to the Board, including the selection of our independent registered public accounting firm, the scope of our annual audits, fees to be paid to the independent registered public accounting firm, the performance of our independent registered public accounting firm and our accounting practices. In addition, the Audit Committee oversees our compliance programs relating to legal and regulatory requirements. The Audit Committee also reviews any potential related party transactions between the Company and its executive officers and directors.

The Compensation Committee consist of Messrs. J. Casey Crenshaw (Chair), Peter C. Mitchell, Edward L. Kuntz and Matthew W. Morris.

The Compensation Committee has the responsibility for developing and maintaining an executive compensation policy that creates a direct relationship between pay levels and corporate performance and returns to stockholders. The Board monitors the results of such policy to assure that the compensation payable to our executive officers provides overall competitive pay levels, creates proper incentives to enhance stockholder value, rewards superior performance, and is justified by the returns available to stockholders. Additionally, the Board administers compensation plans in a manner consistent with the terms of such plans (including, as applicable, the granting of stock options, restricted stock, stock units and other awards, the review of performance goals established for the relevant plan year, and the determination of performance compared to the goals at the end of the plan year). None of our executive officers served as a director or member of the Compensation Committee of any entity that has one or more executive officers serving on our Board.

**Business Ethics and Conduct Policy**

We have adopted a Code of Business Ethics and Conduct that is applicable to all employees, officers and members of our Board. The Company has made the Code of Business Ethics and Conduct available on its website at www.stabilis-solutions.com.

**Delinquent Section 16(a) Reports**

Section 16(a) of the Exchange Act requires our officers and directors and persons who own more than 10% of our common stock to file reports of ownership and changes in ownership of our common stock with the SEC. Based on our review of the copies of such reports, we believe that all such reports required by Section 16(a) of the Exchange Act were in compliance with such filing requirements during the fiscal year ended December 31, 2025.

**Insider Trading Policy**

The Company has an Insider Trading Policy governing the purchase, sale and/or other dispositions of the Company's securities that applies to all directors, officers and employees. The policy is designed to promote compliance with insider trading laws, rules and regulations, and listing standards applicable to the Company. A copy of the Insider Trading Policy is filed with the annual report on Form 10-K as Exhibit *19.1.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 63

------

[**Table of Contents**](#toc)

**ITEM 11. EXECUTIVE COMPENSATION**

**Overview & Oversight of Compensation Program**

We believe our success depends on the continued contributions of our named executive officers. We have established our executive compensation program to attract, motivate, and retain our key employees in order to enable us to maximize our profitability and value over the long term. Our policies are also intended to support the achievement of our strategic objectives by aligning the interests of our executive officers with those of our shareholders through operational and financial performance goals and equity-based compensation. We expect that our compensation program will continue to be focused on building long-term shareholder value by attracting, motivating and retaining talented, experienced executives and other key employees. Currently, our Principal Executive Officer oversees the compensation programs for our executive officers.

**Named Executive Officers**

We are currently considered a smaller reporting company within the meaning of the Securities Act, for purposes of the SEC's executive compensation disclosure rules. In accordance with such rules, we are required to provide a Summary Compensation Table and an Outstanding Equity Awards at Fiscal Year End Table, as well as limited narrative disclosures regarding executive compensation for our last completed fiscal year. Further, our reporting obligations extend only to our "named executive officers" ("NEO"), who are the individual who served as our principal executive officer during the last completed fiscal year, and the individuals who served as our principal financial officer during the last completed fiscal year.

Our named executive officers and their principal positions as of December 31, 2025 are:

---

| | |
|:---|:---|
| **Name** | **Principal Position** |
| J. Casey Crenshaw <sup>(1)</sup> | Chief Executive Officer, President (Current / Interim) |
| Westervelt T. Ballard, Jr. <sup>(1)</sup> | Chief Executive Officer, President (Former) |
| Andrew L. Puhala | Chief Financial Officer |

---

*(1)* *In January 2025 we announced changes to our management team. Effective January 31, 2025, Mr. Crenshaw became interim Chief Executive Officer and President and Mr. Ballard and the Company mutually agreed to terminate his employment as Chief Executive Officer and President.*

**Summary Compensation Table**

The following table sets forth information concerning compensation of our named executive officers who served during the years ended December 31, 2025 and 2024:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Name and Principal Position** | **Year** | **Salary ($)** | **Bonus ($)(1)** | **Stock Awards ($)** | **Option Awards ($)** | **Non-Equity Incentive Plan Compensation ($)(2)** | **All other compensation ($)** | **Total ($)** |
| J. Casey Crenshaw | 2025 | $459969 | $— | $– $|  | $— | $— | $459969 |
| Interim Chief Executive Officer (Effective 1/31/2025) | 2024 |  |  | – |  |  |  |  |
| Westervelt T. Ballard, Jr., | 2025 | 50623 |  | – |  |  | *1483070 <sup>(3)</sup>* | 1533693 |
| Chief Executive Officer (Former) | 2024 | 540000 |  | – |  |  | *11872 <sup>(4)</sup>* | 551872 |
| Andrew Puhala, | 2025 | 350414 | *30000 <sup>(5)</sup>* | – |  | 142363 | *13309 <sup>(4)</sup>* | 536086 |
| Chief Financial Officer | 2024 | 340200 |  | – |  | 122472 | *13520 <sup>(4)</sup>* | 476192 |

---

------

<sup>*(1)*</sup> *No bonus was earned for the fiscal year 2024.*

<sup>*(2)*</sup> *Mr. Crenshaw's pay structure does not include a non-equity incentive pay component. Mr. Puhala earned performance awards of $142,363 for 2025 performance and $122,472 for 2024 performance, respectively. Mr. Ballard separated from the Company January 31, 2025 and did not earn the performance award for 2025 performance. Mr. Ballard did not earn the performance award for 2024 performance because he separated from the Company prior to the payout. See "Employment, Severance or Change of Control Agreements - Release and Consulting Agreement for Mr. Ballard" below for further information.* 

<sup>(3)</sup> *Includes separation pay of $884,615, consulting fees of $534,600 and other pay of $61, 060 pursuant to the "Release and Consulting Agreement" (see below "Release and Consulting Agreement for Mr. Ballard"), and employer contributed 401 (k) contributions of $2,795.* 

<sup>*(4)*</sup> *Consist of employer contributed 401 (k) contributions.*

<sup>*(5)*</sup> *Represents $30,000 paid in 2025 to Mr. Puhala, that related to the 2025 management transition.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 64

------

[**Table of Contents**](#toc)

**Outstanding Equity Awards**

The following table below provides information regarding outstanding restricted stock unit and stock option awards held by the named executive officers as of December 31, 2025:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Option Awards** | **Option Awards** | **Option Awards** | **Option Awards** | **Option Awards** | **Stock Awards** | **Stock Awards** |
| **Name** | **Number of shares or units of stock Underlying Unexercised Options (#) Exercisable** | **Number of shares or units of stock Underlying Unexercised Options (#) Unexercisable** | **Equity incentive plan awards: Number of securities Underlying Unexercised Unearned Options (#)** | **Option Exercise Price ($)** | **Option Expiration Date** | **Equity incentive plan awards: Number of unearned shares or units of stock that have not vested (#)** | **Market value of unearned shares or units of stock that have not vested ($)** |
| J. Casey Crenshaw |  |  |  |  |  |  |  |
| Westervelt T. Ballard, Jr., |  |  |  |  |  |  |  |
| Andrew Puhala | 88515 |  |  | 6.00 | 2/18/2032 |  |  |

---

**Employment, Severance or Change in Control Agreements**

***Employment and Separation Arrangements for Mr. Ballard***

The Company entered into an Employment Agreement with Mr. Ballard on August 23, 2021 (the "Employment Agreement") pursuant to which it agreed for a term of three years (unless terminated earlier pursuant to the terms of the Employment Agreement), subject to successive one-year extensions, to employ Mr. Ballard as its President and Chief Executive Officer.

In consideration of his services, the Company agreed to pay Mr. Ballard an annualized base salary of not less than $500,000. Mr. Ballard was entitled to participate in the Company's Annual Bonus Plan, with a target bonus based on performance to be determined by the Compensation Committee of the Board of Directors and to initially range from 50% of Mr. Ballard's base salary for "threshold" performance, to 100% of his base salary for "target" performance, and 150% of his base salary for "maximum" performance. Additionally, the Company granted Mr. Ballard 500,000 restricted stock units ("RSUs") under the Company's 2019 Long Term Incentive Plan, of which (i) 250,000 RSUs vested on August 23, 2021, (ii) 125,000 RSUs vested on August 23, 2022, and (iii) 125,000 RSUs vested on August 23, 2023. The Company also agreed to grant Mr. Ballard 1,300,000 options to purchase the Company's common stock under the 2019 Long Term Incentive Plan, with a strike price equal to $10.00 per share, of which (i) 442,000 options vested on August 23, 2022, (ii) 429,000 options vested on August 23, 2023, and (iii) 429,000 options vested on August 23, 2024. Mr. Ballard was also eligible to participate in all of the Company's discretionary short-term and long-term incentive compensation plans and programs and other employee benefit plans which are generally made available to other similarly situated senior executives of the Company.

***Release and Consulting Agreement for Mr. Ballard***

Effective January 31, 2025, the Company entered into a release and consulting agreement with Mr. Ballard pursuant to which the Company and Mr. Ballard mutually agreed to terminate his employment as President and Chief Executive Officer and Mr. Ballard transitioned to a consultant of the Company. Additionally, Mr. Ballard voluntarily resigned as a member of the Company's Board of Directors. Under the release and consulting agreement, the Company paid Mr. Ballard separation pay of $1.0 million, paid in equal or near equal installments over a twelve month period, and additional pay of $41 thousand representing an amount equal to a prorated bonus at "target" performance the Mr. Ballard would have received for his 2025 performance. Additionally, Mr. Ballard received a payment of $49 thousand per month for the remainder of 2025 for his consulting services. The Company and Mr. Ballard agreed that 7,765 unvested restricted stock units and 147,525 unvested stock options granted under the Company's long-term incentive plan would vest as of the date of separation of employment, and that Mr. Ballard's stock options expired exercised on or before December 31, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 65

------

[**Table of Contents**](#toc)

**Policies and Practices for Granting Equity Awards**

The Compensation Committee has the responsibility for developing and maintaining an executive compensation policy including the granting of equity awards, consisting of stock appreciation rights, stock options, restricted stock units, restricted stock awards and similar instruments. The Board monitors the results of such policies.

As such, The Company does not grant and has *not* granted equity awards in anticipation of the release of material nonpublic information, nor timed the release of material nonpublic information based on grant dates of such instruments for the purpose of affecting the value of executive compensation.

**Elements of Compensation**

Historically, we have compensated our named executive officers with annual base salaries, non-equity annual cash incentive compensation and employee benefits. We expect that these elements will continue to constitute the primary elements of our compensation program, although the relative proportions of each element, and the specific plan and award designs, will likely evolve. Additionally, our named executive officers may be awarded long-term equity incentives in the form of restricted stock awards and stock options.

***Base Salary***

Base salary is the fixed annual compensation we pay to each of our named executive officers for carrying out their specific job responsibilities. Base salaries are a major component of the total annual cash compensation paid to our named executive officers. Base salaries are determined after taking into account many factors, including (a) the responsibilities of the officer, the level of experience and expertise required for the position and the strategic impact of the position; (b) the need to recognize each officer's unique value and demonstrated individual contribution, as well as future contributions; (c) the performance of the company and each officer; and (d) salaries paid for comparable positions in similarly-situated companies.

For the amounts of base salary that our named executive officers received in 2025 and 2024, see "Executive Compensation-Summary Compensation Table."

Our Board reviews the base salaries for each named executive officer periodically as well as at the time of any promotion or significant change in job responsibilities and, in connection with each review, our Board considers individual and company performance over the course of the relevant time period. The Board may make adjustments to base salaries for named executive officers upon consideration of any factors that it deems relevant, including but not limited to: (a) any increase or decrease in the named executive officer's responsibilities, (b) the named executive officer's job performance, and (c) the level of compensation paid to senior executives of other companies with whom we compete for executive talent, as estimated based on publicly available information and the experience of our directors.

***Annual Cash Bonuses and Annual Non-equity Incentive Plan Compensation***

For the year ended December 31, 2025, Mr. Ballard separated from the Company and was not awarded the performance award for 2025 performance. Mr. Ballard was not awarded the performance award for 2024 performance because he separated from the Company prior to the payout. See "Employment, Severance or Change of Control Agreements - Release and Consulting Agreement for Mr. Ballard" for further information. Mr. Puhala earned non-equity incentive plan compensation of $142,363 and $122,472 for the years ended December 31, 2025 and 2024, respectively. Mr. Crenshaw's pay structure did not include a non-equity incentive pay component for 2025.

***Other Benefits***

We offer participation in broad-based retirement, health and welfare plans to all of our employees.

***Risk Considerations***

The Compensation Committee considers whether the Company's compensation policies and practices for both executives and other employees encourage unnecessary or excessive risk taking.

Base salaries are not believed to encourage excessive risk taking. The Company's Executive Performance Bonus Program does focus on achievement of annual Company and/or individual performance goals, but both the Company and individual goals are considered appropriate for achievement without unnecessary and excess risk taking.

***Pension Benefits***

We have not maintained and do not currently maintain a defined benefit pension plan or a supplemental executive retirement plan. Instead, our employees, including our named executive officers, may participate in a retirement plan intended to provide benefits under section 401(k) of the Internal Revenue Code of 1986 (the "401(k) Plan") pursuant to which employees are allowed to contribute a portion of their base compensation to a tax-qualified retirement account in a defined safe harbor 401(k) Plan, subject to limitations.

***Non-Qualified Defined Contribution and Other Non-Qualified Deferred Compensation Plans***

We have not had and do not currently have any defined contribution or other plan that provides for the deferral of compensation on a basis that is not tax-qualified.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 66

------

[**Table of Contents**](#toc)

***Amended and Restated 2019 Long Term Incentive Plan***

The Company has a long-term incentive plan which was approved by the Board of Directors on December 9, 2019 (the "2019 Plan"). In July 2021 and in August 2023, the plan was amended (the "Amended and Restated Plan") to increase the maximum number of shares of common stock available for issuance from its original 1,675,000 shares to 4,000,000 shares (in July 2021) and to 5,500,000 (in August 2023).

Awards under the Amended and Restated Plan may be granted to employees, officers and directors of the Company and affiliates, and any other person who provides services to the Company and its affiliates (including independent contractors and consultants of the Company and its subsidiaries). Awards may be granted in the form of stock options, stock appreciation rights, restricted stock, restricted stock units, performance awards, dividend equivalents, substitute awards, other stock-based awards, cash awards and/or any combination of the foregoing. No participant may receive a grant covering more than 2,000,000 shares of our common stock in any year and a non-employee member of the Board may not be granted more than 100,000 shares in any year.

**Director Compensation**

Our Board of Directors believes that attracting and retaining qualified non-employee directors will be critical to the future value growth and governance of our company. The Company established the fee for service as an independent director at the rate of $125,000 per year payable 100% in cash.

The members of the Board of Directors are also eligible for reimbursement of their expenses incurred in attending board meetings in accordance with our policies.

Directors who are not determined to be independent do not receive any additional compensation for their service on our Board of Directors.

The following table describes the compensation earned by each individual who served as an independent director during 2025:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Name** | **Fees Earned or Paid in Cash ($)** | **Stock Awards ($)** | **All Other Compensation ($)** | **Totals ($)** |
| Edward L. Kuntz | $125000 | $– $|  | $125000 |
| Peter C. Mitchell | 125000 | – |  | 125000 |
| Matthew W. Morris | 125000 | – |  | 125000 |
| Total | $375000 | $– $|  | $375000 |

---

------

*<sup>(1)</sup>* *Fees presented represent amounts earned and expensed under generally accepted accounting principles in the United States for the year ended December 31, 2025.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 67

------

[**Table of Contents**](#toc)

**ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS**

The table below sets forth information, as of February 25, 2026, the amount and percentage of our outstanding shares of common stock beneficially owned by (i) each person known by us to own beneficially more than 5% of our outstanding common stock, (ii) each director, (iii) each of our named executive officers, and (iv) all of our directors and executive officers as a group. Unless otherwise noted, the following table is based on 18,596,301 shares outstanding as of February 25, 2026.

---

| | | |
|:---|:---|:---|
|  | **Common Stock** | **Common Stock** |
| **Name** | **Number of Shares** | **Percent of Class** |
| J. Casey Crenshaw <sup>(1)</sup> | 13249730 | 71.2% |
| Stacey B. Crenshaw <sup>(1)</sup> | 13249730 | 71.2% |
| LNG Investment Company, LLC | 12580808 | 67.7% |
| Chart Energy & Chemicals, Inc. <sup>(2)</sup> | 1470807 | 7.9% |
| Andrew L. Puhala <sup>(3) (4)</sup> | 129101 | \* |
| Westervelt T. Ballard, Jr. <sup>(3), (5)</sup> | 413740 | 2.2% |
| Edward L. Kuntz <sup>(3)</sup> | 62172 | \* |
| Peter C. Mitchell <sup>(3)</sup> | 25000 | \* |
| Matthew W. Morris <sup>(3)</sup> | 16000 | \* |
| Benjamin J. Broussard <sup>(3)</sup> | 3000 | \* |
| All directors and officers as a group of (7) persons | 13485011 | 72.2% |

---

------

*\**&nbsp;&nbsp;&nbsp;&nbsp;*Indicates less than 1%.*

*(1)* *Consists of (i) 12,580,808 shares owned by LNG Investment Company, LLC; (ii) 657,922 shares owned by JCH Crenshaw Holdings, LLC (*"*JCH*"*); (iii) 11,000 shares of Common Stock currently held by Mr. Crenshaw. Mr. Crenshaw may be deemed to have voting and dispositive power over the securities held by each of LNG Investment Company, LLC and JCH by virtue of being the sole manager of LNG Investment Company, LLC and the sole managing member of JCH; thus, he may also be deemed to be the beneficial owner of these securities. Mrs. Crenshaw, as the spouse of Mr. Crenshaw, may be deemed to share voting and dispositive power over the securities held by each Mr. Crenshaw, JCH and LNG Investment Company, LLC. Mr. and Mrs. Crenshaw each disclaim any beneficial ownership of the securities owned by LNG Investment Company, LLC, JCH and their respective spouses in excess of their pecuniary interest in such securities.*

*(2)* *Chart Energy & Chemicals, Inc. is a wholly owned subsidiary of Chart Industries, Inc. which manages the investments of Chart Energy & Chemicals, Inc. The business address of Chart Energy & Chemicals, Inc. is 8665 New Trails Drive, Suite 100, The Woodlands, Texas 77381. The business address of Chart Industries, Inc. is 3055 Torrington Drive, Ball Ground, Georgia 30107.*

*(3)* *Unless otherwise noted, the address of the stockholders is c/o Stabilis Solutions, Inc. 11750 Katy Freeway, Suite 900, Houston, Texas 77079.*

*(4)* *Includes stock options vested but unexercised.*

*(5)* *Pursuant to a Schedule 13D/A filed January 20, 2026. Mr. Ballard is the former Chief Executive Officer of the Company.*

**Equity Compensation Plan**

***Amended and Restated 2019 Long Term Incentive Plan***

On December 9, 2019, the Board of Directors of the Company adopted the 2019 Long Term Incentive Plan (the "2019 Plan"). In July 2021 and in August 2023, the plan was amended (the "Amended and Restated Plan") to increase the maximum number of shares of common stock available for issuance from its original 1,675,000 shares to 4,000,000 shares (in July 2021) and to 5,500,000 (in August 2023). Awards under the Amended and Restated Plan may be granted to employees, officers and directors of the Company and affiliates, and any other person who provides services to the Company and its affiliates (including independent contractors and consultants of the Company and its subsidiaries). Awards may be granted in the form of stock options, stock appreciation rights, restricted stock, restricted stock units, performance awards, dividend equivalents, substitute awards, other stock-based awards, cash awards and/or any combination of the foregoing. No participant may receive a grant covering more than 2,000,000 shares of our common stock in any year and a non-employee member of the Board may not be granted more than 100,000 shares in any year.

At December 31, 2025, the number of shares of common stock available for issuance under the Amended and Restated Plan is 3,872,379 shares. In the event of certain changes in the Company's common stock such as recapitalization, reclassification, stock split, combination or exchange of shares, stock dividends or the like, appropriate adjustment will be made in the number and kind of shares available for issuance under the Amended and Restated Plan as well as the purchase price, if any, per share.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 68

------

[**Table of Contents**](#toc)

The following table summarizes information about the outstanding equity plan as of December 31, 2025.

---

| | | | |
|:---|:---|:---|:---|
| **Plan Category** | **Number of securities to be issued upon exercise of outstanding options, warrants and rights <sup>(1)</sup>** | **Weighted-average exercise price of outstanding options <sup>(2)</sup>** | **Number of securities remaining available under equity compensation plans (excluding securities reflected in column <sup>(1))</sup> (3)(a)** |
| Equity compensation plans approved by security holders | 331931 | $6.00 | 3872379 |
| Equity compensation plans not approved by security holders |  |  |  |
| Total | 331931 | $6.00 | 3872379 |

---

------

*(1)* *Includes shares of common stock issuable upon exercise of outstanding stock options.*

*(2)* *The weighted average exercise price represents the exercise price for 331,931 unexercised stock options.*

*(3)* *Consists of the shares available for future issuance under the Amended and Restated Plan for services by eligible employees, board members, independent contractors and consultants. See above "Equity Compensation Plan" in Item 12 and Note 12 of the Notes to Consolidated Financial Statements for further information.*

**ITEM 13. CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS, AND DIRECTOR INDEPENDENCE**

In the ordinary course of our business, we may enter into transactions with our directors, officers and 5% or greater stockholders.

**Operating Lease Obligations and Other Purchases**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;J. Casey Crenshaw (our Chairman of the Board) is the beneficial owner of 50% of the Modern Group, Ltd. ("The Modern Group"), and is deemed to jointly control The Modern Group with family members. Stacey Crenshaw (a member of our Board) is the spouse of J. Casey Crenshaw. Additionally, the following individuals serve in various leadership capacities for The Modern Group: J. Casey Crenshaw (our Chairman of the Board) as President and Ben Broussard (a member of our Board) as Chief Financial Officer of both The Modern Group as well as its subsidiary, MG Finance Co., Ltd.

From January 1, 2025 through September 30, 2025, the Company subleased office space from The Modern Group. The Company also purchases supplies and services from a subsidiary of The Modern Group. During the years ended December 31, 2025 and 2024, lease payments and purchases from The Modern Group totaled $0.2 million and $0.2 million, respectively. The Company had no sales to The Modern Group in 2025 or 2024. There was no receivable due from The Modern Group as of December 31, 2025 and 2024. As of December 31, 2025 and 2024, amounts due to The Modern Group were immaterial, and are included in accounts payable on the Consolidated Balance Sheets.

Chart Energy & Chemicals, Inc. ("Chart E&C") beneficially owns 7.9% of our outstanding common stock. The Company purchases services from Chart E&C. During the years ended December 31, 2025 and 2024, purchases from Chart E&C totaled $0.1 million and $0.6 million, respectively. As of December 31, 2025 and 2024, amounts due to Chart E&C were immaterial, and included in accounts payable on the Consolidated Balance Sheets.

**Indemnification Agreements**

Currently there are no indemnification agreements in place with our directors of officers.

**Review, Approval or Ratification of Transactions with Related Persons**

The Audit Committee, which is comprised solely of independent directors, is responsible for reviewing related party transactions involving directors and executive officers. In addition, our Board is responsible for approving all related party transactions between us and any officer or director that would potentially require disclosure. The Board expects that any transactions in which related persons have a direct or indirect interest will be presented to the Board for review and approval but we have no written policy in place at this time.

***Director Independence***

The Board has determined that Messrs. Peter C. Mitchell, Matthew W. Morris and Edward L. Kuntz are currently the Company's independent directors as defined by the rules and regulations of The NASDAQ Stock Market LLC ("NASDAQ") and SEC.

The NASDAQ definition of independence includes a series of objective tests, such as that the director is not an employee of the Company and has not engaged in various types of business dealings involving the Company, which would prevent a director from being independent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 69

------

[**Table of Contents**](#toc)

**ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES**

The following table shows the aggregate fees billed to us for professional services rendered by Ham, Langston & Brezina, L.L.P., our independent registered public accounting firm, during the periods presented:

---

| | | |
|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** |
| **Types of Fees** | **2025** | **2024** |
| Audit Fees <sup>(1)</sup> | $283000 | $262000 |
| Audit-Related Fees <sup>(2)</sup> |  |  |
| Tax Fees <sup>(3)</sup> |  |  |
| Other Fees <sup>(4)</sup> |  |  |
| Total Fees | $283000 | $262000 |

---

------

*(1)* *Audit fees consist of fees billed for professional services rendered for the audit of our annual consolidated financial statements and review of our interim condensed consolidated financial statements included in our quarterly reports, professional services rendered in connection with our filing of various registration statements (such as registration statements on Form S-8 and Form S-1, including related comfort letters) and other services that are normally provided by Ham, Langston & Brezina, L.L.P. in connection with statutory and regulatory filings or engagements.*

*(2)* *Audit-related fees consist of fees billed for assurance and related services that are reasonably related to the performance of the audit or review of our consolidated financial statements and are not reported as audit fees. Ham, Langston & Brezina, L.L.P. rendered no such services for us in 2025 or 2024.*

*(3)* *Tax fees consist of fees billed for professional services rendered for tax compliance, tax advice and tax planning (domestic and international). Ham, Langston & Brezina, L.L.P. rendered no such services for us in 2025 or 2024.*

*(4)* *All other fees consist of fees billed for products and services other than the services described in notes (1), (2) and (3) above. Ham, Langston & Brezina, L.L.P. rendered no such services for us in 2025 or 2024.*

**Audit Committee**'**s Pre-Approval Policies**

The Audit Committee's policy is to pre-approve all audit services and all permitted non-audit services (including the fees and terms thereof) to be provided by the Company's independent registered public accounting firm; provided, however, pre-approval requirements for non-audit services are not required if all such services (1) do not aggregate to more than five percent of total revenues paid by the Company to its independent registered public accounting firm in the fiscal year when services are provided; (2) were not recognized as non-audit services at the time of the engagement; and (3) are promptly brought to the attention of the Audit Committee and approved prior to the completion of the audit by the Audit Committee.

• The Audit Committee pre-approved all of the fees described above.

• The Audit Committee considers whether the provision of the above services other than audit services is compatible with maintaining auditor independence; however, no such non-audit services were performed by Ham, Langston & Brezina, L.L.P. in 2025 or 2024.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 70

------

[**Table of Contents**](#toc)

**PART IV**

**ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The following documents are filed as part of this report:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Consolidated Financial Statements

The following items are filed in Item 8. Financial Statements and Supplementary Data of this report:

Report of Independent Registered Public Accounting Firm

Consolidated Balance Sheets

Consolidated Statements of Operations

Consolidated Statements of Comprehensive Income

Consolidated Statements of Stockholders' Equity

Consolidated Statements of Cash Flows

Notes to Consolidated Financial Statements

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Financial Statement Schedules

All financial statement schedules have been omitted, since the required information is not applicable or is not present in amounts sufficient to require submission of the schedule, or because the information required is included in the Consolidated Financial Statements and Notes thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Index to Exhibits

The information required by this Item 15(a)(3) is set forth on the exhibit index, which immediately precedes the signature page to this report and is incorporated herein by reference.

**ITEM 16. FORM 10-K SUMMARY**

We have elected not to provide summary information.

**EXHIBIT INDEX**

---

| | |
|:---|:---|
| **Exhibit No.** | **Exhibit Description** |
| 3.1 | [<u>Amended and Restated Articles of Incorporation of the Registrant (Incorporated by Reference to Exhibit 3.1 to Registrant'</u><u>s Current Report on Form</u> <u>8-K</u> <u>filed October 15, 2020)</u>](http://www.sec.gov/Archives/edgar/data/1043186/000104318620000061/ex31-amendedandrestate.htm) |
| 3.2 | [<u>Amended and Restated Bylaws of the Registrant (Incorporated by Reference to Exhibit 3.2 to Registrant'</u><u>s Current Report on Form</u> <u>8-K</u> <u>filed September 18, 2020)</u>](http://www.sec.gov/Archives/edgar/data/1043186/000104318620000056/ex32-amendedbyxlaws.htm) |
| 4.1 | [<u>Registration Rights Agreement dated July</u> <u>26, 2019, by and among Registrant, LNG Investment Company, LLC, and AEGIS NG LLC (Incorporated by Reference to Exhibit 10.1 to Registrant</u><u>'</u><u>s Current Report on</u> <u>Form</u> <u>8-K</u> <u>filed August</u> <u>1, 2019)</u>](http://www.sec.gov/Archives/edgar/data/1043186/000156459019027937/aeti-ex101_109.htm) |
| 4.2 | [<u>Registration Rights Agreement dated as of August</u> <u>20, 2019, by and among Registrant and the Investors named therein (Incorporated by Reference to Exhibit 4.9 to Registrant's</u> <u>Annual Report on Form 10-K filed March 16, 2020)</u>](http://www.sec.gov/Archives/edgar/data/1043186/000119312519242344/d732686dex49.htm) |
| 4.3 | [<u>Registration Rights Agreement, dated June 1, 2021, among TGB Equipment Leasing, LLC and Stabilis (Incorporated by reference to Exhibit 10.5 to Registrant's Quarterly Report on Form 10-Q filed on August 5, 2021)</u>](http://www.sec.gov/Archives/edgar/data/1043186/000162828021015937/a09mardigras-registrationr.htm) |
| 4.5 | [\* Description of Securities](ex_892270.htm) |

---

---

| | |
|:---|:---|
| 10.1 | [<u>Exchange Agreement dated August</u> <u>5, 2019, by and among Chart Energy</u> <u>& Chemicals, Inc., Stabilis Energy, Inc., Stabilis Energy, LLC and Stabilis LNG Eagle Ford LLC (Incorporated by reference to Exhibit 10.1 to Registrant</u><u>'</u><u>s Current Report on Form</u> <u>8-K</u> <u>filed August</u> <u>9, 2019)</u>](http://www.sec.gov/Archives/edgar/data/1043186/000156459019031141/aeti-ex101_19.htm) |
| 10.2 | [<u>Amendment No. 1 to Exchange Agreement dated September 11, 2019 by and among Chart Energy & Chemicals, Inc., Stabilis Energy, Inc., Stabilis Energy, LLC and Stabilis LNG Eagle Ford LLC (Incorporated by Reference to Exhibit 10.19 to Registrant's Amendment No. 1 to Registration Statement on Form S-1/A filed October 22, 2019)</u>](http://www.sec.gov/Archives/edgar/data/1043186/000119312519270934/d732686dex1019.htm) |
| 10.3 | [<u>Secured Promissory Note dated August 16, 2019, by and between the Registrant and MG</u> <u>Finance Co., Ltd. (Incorporated by Reference to Exhibit 10.19 to Registrant's Registration Statement on Form S-1 filed September 11, 2019)</u>](http://www.sec.gov/Archives/edgar/data/1043186/000119312519242344/d732686dex1019.htm) |
| 10.4 | [<u>Pledge and Security Agreement dated August 16, 2019, by and between the Registrant and MG</u> <u>Finance Co., Ltd. (Incorporated by Reference to Exhibit 10.20 to Registrant's Registration Statement on Form S-1 filed September 11, 2019)</u>](http://www.sec.gov/Archives/edgar/data/1043186/000119312519242344/d732686dex1020.htm) |
| 10.5 | [<u>Loan Agreement, dated April 8, 2021, between Stabilis Solutions, Inc., as borrower, and AmeriState Bank, as lender (Incorporated by Reference to Exhibit 10.1 to Registrant's Current Report on Form 8-K filed April 13, 2021)</u>](http://www.sec.gov/Archives/edgar/data/1043186/000104318621000015/ex101ameristateloanagreeme.htm) |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 71

------

[**Table of Contents**](#toc)

---

| | |
|:---|:---|
| **Exhibit No.** | **Exhibit Description** |
| 10.6 | [<u>Form of Advancing Note, dated April 8, 2021, executed by Stabilis Solutions, Inc., as borrower, and made payable to AmeriState Bank, as lender (Incorporated by Reference to Exhibit 10.2 to Registrant's Current Report on Form 8-K filed April 13, 2021)</u>](http://www.sec.gov/Archives/edgar/data/1043186/000104318621000015/ex102formofadvancingnote.htm) |
| 10.7 | [<u>Security Agreement and Assignment, dated April 8, 2021, among Mile High LNG LLC, Stabilis GDS, Inc., Stabilis LNG Eagle Ford LLC and Stabilis Energy Services, LLC, to and in favor of AmeriState Bank, as the secured party (Incorporated by Reference to Exhibit 10.3 to Registrant's Current Report on Form 8-K filed on April 13, 2021)</u>](http://www.sec.gov/Archives/edgar/data/1043186/000104318621000015/ex103securityagreementanda.htm) |
| 10.8 | [<u>† Employment Agreement, dated August 23, 2021 between Stabilis Solutions, Inc. and Westervelt T. Ballard, Jr. (Incorporated by reference to Exhibit 10.1 to Registrant's Current Report on Form 8-K filed on August 24, 2021)</u> †](http://www.sec.gov/Archives/edgar/data/1043186/000162828021017508/employmentagreement-stabil.htm) |
| 10.9 | [<u>Amendment to Secured Promissory Note - MG Finance Co., Ltd, dated September 20, 2021 (incorporated by reference to Exhibit 10.6 to Registrant's Form 10-Q filed on November 10, 2021)</u>](http://www.sec.gov/Archives/edgar/data/1043186/000162828021022898/a9302021amendment1tosecure.htm) |
| 10.10 | [<u>† Amended and Restated 2019 Stabilis Solutions, Inc. Long Term Incentive Plan, dated August 16, 2023 (Incorporated by reference to Exhibit 10.1 to Registrant's Current Report on Form 8-K filed on August 18, 2023)</u>](http://www.sec.gov/Archives/edgar/data/1043186/000162828021018696/stabilissolutionsinc2019lo.htm) |
| 10.11 | [First Amendment to Loan Agreement, made effective as of September 19, 2023, between Stabilis Solutions, Inc. and Ameristate Bank (Incorporated by reference to Exhibit 10.2 to Registrant's Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2023).](http://www.sec.gov/Archives/edgar/data/1043186/000143774923031026/ex_575985.htm) |
| 10.12 | [Loan Agreement, dated as of June 9, 2023, among Registrant, Stabilis LNG Eagle Ford LLC, Stabilis GDS, Inc. and LNG Stabilis Port Allen, LLC and Cadence Bank (Incorporated by Reference to Exhibit 4.1 to Registrant's Current Report on Form 8-K filed June 13, 2023).](http://www.sec.gov/Archives/edgar/data/1043186/000162828023021888/loanagreement-stabilisx230.htm) |
| 10.13 | [Revolving Line of Credit Note, dated as of June 9, 2023, among Registrant, Stabilis LNG Eagle Ford LLC, Stabilis GDS, Inc. and LNG Stabilis Port Allen, LLC and Cadence Bank (Incorporated by Reference to Exhibit 1.2 to Registrant's Current Report on Form 8-K filed June 13, 2023).](http://www.sec.gov/Archives/edgar/data/1043186/000162828023021888/note-revolvingxstabilis230.htm) |
| 10.14 | [Security Agreement, dated as of June 9, 2023, among Registrant, Stabilis LNG Eagle Ford LLC, Stabilis GDS, Inc. and LNG Stabilis Port Allen, LLC and Cadence Bank (Incorporated by Reference to Exhibit 4.3 to Registrant's Current Report on Form 8-K filed June 13, 2023).](http://www.sec.gov/Archives/edgar/data/1043186/000162828023021888/securityagreement-stabilis.htm) |
| 10.15 | [† Release and Consulting Agreement (Incorporated by Reference to Exhibit 10.1 to Registrant's Current Report on Form 8-K filed February 3, 2025).](http://www.sec.gov/Archives/edgar/data/1043186/000143774925002592/ex_773722.htm) |
| 10.16 | [\* Time Charter Agreement, dated December 12, 2025, by and between the Registrant with Seaspan Energy Ltd.](ex_915218.htm) |
| 19.1 | [\* Insider Trading Policy and Procedures](ex_892271.htm) |
| 21.1 | [\*Stabilis Solutions, Inc. Subsidiary List.](ex_892272.htm) |
| 23.1 | [\*Consent of Independent Registered Public Accounting Firm](ex_892273.htm) |
| 31.1 | [\*Rule 13a-14(a) / 15d-14(a) Certification of Principal Executive Officer.](ex_892274.htm) |
| 31.2 | [\*Rule 13a-14(a) / 15d-14(a) Certification of Principal Financial Officer.](ex_892275.htm) |
| 32.1 | [\*Section 1350 Certifications of Principal Executive Officer and Principal Financial Officer.](ex_892276.htm) |
| 97.1 | [\* Stabilis Solutions, Inc. Incentive Compensation Recovery (Clawback) Policy.](ex_892277.htm) |
| 101 | \*Interactive XBRL Instance Document (XBRL tags are embedded within the Inline XBRL document). |

---

---

| | |
|:---|:---|
| 104 | \*Cover Page Interactive Data File (formatted as iXBRL and contained in Exhibit 101). |

---

------

\*&nbsp;&nbsp;&nbsp;&nbsp;Filed herewith.

† Indicates management contract or compensatory plan, contract or arrangement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 72

------

[**Table of Contents**](#toc)

**SIGNATURES**

Pursuant to the requirements of Section 13 or 15(d) 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.

Date: March 5, 2026

STABILIS SOLUTIONS, INC.

---

| | |
|:---|:---|
| By: | /s/ J. Casey Crenshaw |
|  | J. Casey Crenshaw |
|  | Executive Chairman and Director<br> Interim President and Chief Executive Officer<br> (Principal Executive Officer) |

---

---

| | |
|:---|:---|
| By: | /s/ Andrew L. Puhala |
|  | Andrew L. Puhala |
|  | Chief Financial Officer<br> (Principal Financial Officer) |

---

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities indicated on March 5, 2026.

---

| | |
|:---|:---|
| **Signature** | **Title** |
| /s/ J. Casey Crenshaw | Executive Chairman |
| J. Casey Crenshaw | Interim President, Chief Executive Officer and Director |
|  | (Principal Executive Officer) |
| /s/ Andrew L. Puhala | Senior Vice President and Chief Financial Officer |
| Andrew L. Puhala | (Principal Financial Officer and |
|  | Principal Accounting Officer) |
| /s/ Benjamin J. Broussard | Director |
| Benjamin J. Broussard |  |
| /s/ Stacey B. Crenshaw | Director |
| Stacey B. Crenshaw |  |
| /s/ Edward L. Kuntz | Director |
| Edward L. Kuntz |  |
| /s/ Peter C. Mitchell | Director |
| Peter C. Mitchell |  |
| /s/ Matthew W. Morris | Director |
| Matthew W. Morris |  |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 73

## Exhibit 4.5

**Exhibit 4.5**

**DESCRIPTION OF REGISTRANT**'**S SECURITIES**

The following description sets forth certain material terms and provisions of our capital stock and also summarizes relevant provisions of Florida law. The following summary does not purport to be complete and is subject to, and is qualified in its entirety by reference to, the applicable provisions of Florida law and our articles of incorporation and our bylaws, copies of which are incorporated by reference as exhibits to this Annual Report on Form 10-K of which this Exhibit 4.5 is a part.

***Authorized and outstanding capital stock***

Stabilis Solutions, Inc., a Florida corporation ("we", or the "Company"), has authorized common stock consisting of 37,500,000 shares of common stock, $0.001 par value, and 1,000,000 shares of preferred stock, $0.001 par value.

***Common Stock***

Our common stock is listed on The Nasdaq Stock Market LLC under the symbol "SLNG".

The holders of our common stock are entitled to one vote for each share held of record on all matters to be voted on by shareholders. There is no cumulative voting with respect to the election of directors. In an election of directors where the number of nominees exceeds the number of directors to be elected, the nominees receiving the highest number of votes of the shares entitled to vote for them, up to the number of directors to be elected by such shares, will be elected.

The holders of our common stock are entitled to receive dividends when, as and if declared by the Board of Directors of the Company (the "Board") out of funds legally available therefor. In the event of liquidation, dissolution or winding up of the Company, the holders of common stock are entitled to share ratably in all assets remaining which are available for distribution to them after payment of liabilities and after provision has been made for each class of stock, if any, having preference over the common stock.

***Other Rights***

Holders of shares of our common stock, as such, have no conversion, preemptive or other subscription rights, and there are no redemption provisions applicable to the common stock.

***Preferred Stock***

Our Board has the authority, without shareholder approval, to issue up to 1,000,000 shares of Preferred stock, $0.001 par value. The authorized preferred stock may be issued by the Board in one or more series and with the rights, privileges and limitations of the preferred stock determined by the Board. The rights, preferences, powers and limitations of different series of preferred stock may differ with respect to dividend rates, amounts payable on liquidation, voting rights, conversion rights, redemption provisions, sinking fund provisions, and other matters.

***Registration Rights***

We agreed to provide certain registration rights to certain holders of our common stock pursuant to the terms of the agreements filed as Exhibits 4.1, 4.2, and 4.3 to this Annual Report on Form 10-K.

***Anti-Takeover Effects of Provisions of Florida Law and Our Articles of Incorporation and Bylaws***

Our Articles of Incorporation and our Amended and Restated Bylaws (the "Bylaws") contain certain provisions that are intended to enhance the likelihood of continuity and stability in the composition of the Board and which may have the effect of delaying, deferring or preventing a future takeover or change in control of the Company unless such takeover or change in control is approved by the Board. These provisions include:

***Blank Check Preferred stock***

The availability of the 1,000,000 authorized preferred stock for issuance under our Articles of Incorporation provides the Board with flexibility in addressing corporate issues that may arise. Having these authorized shares available for issuance allows the Company to issue shares of preferred stock without the expense and delay of a special shareholders' meeting. The authorized shares of preferred stock will be available for issuance without further action by the Company's shareholders, with the exception of any actions required by applicable law or the rules of any stock exchange on which our securities may be listed. The Board has the power, subject to applicable law, to issue classes or series of preferred stock that could, depending on the terms of the class or series, impede the completion of a merger, tender offer or other takeover attempt.

------

***Advance Notice Procedure***

Our Bylaws provide an advance notice procedure for shareholders to nominate director candidates for election or to bring business before an annual meeting of shareholders, including proposed nominations of persons for election to the Board.

Our Bylaws provide that as to the notice of shareholder proposals of business to be brought at the annual meeting of shareholders, notice must be delivered to our corporate secretary not later than the close of business on the 60th day and not earlier than the close of business on the 90th day prior to the first anniversary of the preceding year's annual meeting (or if the date of the annual meeting is more than 30 days before or 60 days after such anniversary date, such notice must be so received not earlier than the close of business on the 90th day and not later than the close of business on the later of the 60th day prior to such annual meeting or the tenth day following the day on which the notice of the date of the annual meeting was mailed or public disclosure thereof was made). The procedures set forth in our Bylaws for business to be properly brought before an annual meeting by a shareholder are in addition to, and not in lieu of, the requirements set forth in Rule 14a-8 under Section 14 of the Securities Exchange Act of 1934, as amended.

Nominations for the election of directors may be made by any shareholder of record entitled to vote for the election of directors at an annual or special meeting of shareholders; provided, however, that a shareholder may nominate persons for election as directors only if written notice of such shareholder's intention to make such nominations is received by the Secretary not later than (i) with respect to an election to be held at an annual meeting of shareholders, not later than the close of business on the 60th day and not earlier than the close of business on the 90th day prior to the first anniversary of the preceding year's annual meeting (or if the date of the annual meeting is more than 30 days before or 60 days after such anniversary date, such notice must be so received not earlier than the close of business on the 90th day and not later than the close of business on the later of the 60th day prior to such annual meeting or the tenth day following the day on which notice of the date of the annual meeting was mailed or public disclosure thereof was made) and (ii) with respect to an election to be held at a special meeting of shareholders for the election of directors, the close of business on the seventh business day following the date on which notice of such meeting is first given to shareholders. Any such shareholder's notice shall set forth (a) the name and address of the shareholder who intends to make a nomination; (b) a representation that the shareholder is entitled to vote at such meeting and a statement of the number of shares of the corporation that are beneficially owned by the shareholder; (c) a representation that the shareholder intends to appear in person or by proxy at the meeting to nominate the person or persons specified in the notice; (d) as to each person the shareholder proposes to nominate for election or re-election as a director, the name and address of such person and such other information regarding such nominee as would be required in a proxy statement filed pursuant to the proxy rules of the Securities and Exchange Commission had such nominee been nominated by the Board, and a description of any arrangements or understandings, between the shareholder and such nominee and any other persons (including their names), pursuant to which the nomination is to be made; and (e) the consent of each such nominee to serve as a director if elected.

***Section 607.0901 of the Florida Statutes***

We are subject to Section 607.0901 of the Florida Statutes. In general, Section 607.0901 regulates certain transactions between a corporation and an "interested shareholder," one who beneficially owns more than ten percent of the corporation's outstanding voting shares. The statute provides significant protection to minority shareholders by assuring that the transactions covered by the statute are either (a) procedurally fair (i.e., the transaction is approved by disinterested directors or disinterested shareholders) or (b) substantively fair (i.e., result in a fair price to the shareholders).

***Section 607.0902 of the Florida Statutes***

We are subject to Section 607.0902 of the Florida Statutes. In general, Section 607.0902 focuses on the acquisition of "control shares" in an issuing public corporation. When control shares are acquired in a "control share acquisition," the shares do not have voting rights. Voting rights may be restored only if the bidder files an acquiring person statement and requests a shareholder meeting to vote on whether the bidder's shares should be accorded voting rights. Voting rights are restored only to the extent approved by the disinterested shareholders (which excludes both the bidder and management shareholders). Alternatively, the bidder's shares will have voting rights if the acquisition is approved by the target company's board of directors. As a result, mergers or other takeover or change in control attempts of us may be discouraged or prevented.

***Transfer Agent and Registrar***

The transfer agent and registrar for our common stock is Computershare Trust Company, N.A.

## Exhibit 10.16

**Exhibit 10.16**

**SHELLLNGTIME 2.1** 

**Time Charter Party for LNG Bunker Vessel** 

**PART I NEGOTIATED CHARTERING TERMS** 

*(Together with Parts II, III and Appendices shall form the entirety of the agreement)* 

IT IS THIS DAY AGREED between

---

| | | |
|:---|:---|:---|
| Seaspan Energy Ltd. | Seaspan Energy Ltd. | Seaspan Energy Ltd. |
| Hereinafter referred to as "Owners"  | Hereinafter referred to as "Owners"  | Hereinafter referred to as "Owners"  |
| Stabilis GDS, Inc. | Stabilis GDS, Inc. | Stabilis GDS, Inc. |
| Hereinafter referred to as "Charterers"  | Hereinafter referred to as "Charterers"  | Hereinafter referred to as "Charterers"  |
| *For the charter of:*  | *For the charter of:*  | *For the charter of:*  |
| SEASPAN GARIBALDI | SEASPAN GARIBALDI | SEASPAN GARIBALDI |
| Hereinafter referred to as "the Vessel"  | Hereinafter referred to as "the Vessel"  | Hereinafter referred to as "the Vessel"  |
| This charter dated | 12<sup>th</sup> December 2025 | 12<sup>th</sup> December 2025 |
| IMO Number | 9974319 | 9974319 |
| Flag | Panama | Panama |
| Classification Society | Bureau Veritas | Bureau Veritas |
| Year Built | 2024 | 2024 |
| Ship Management | Bernhard Schulte Ship Management (Deutschland) GmbH & Co. | Bernhard Schulte Ship Management (Deutschland) GmbH & Co. |
| Gross Capacity of LNG Tanks in cubic metres | 7606.95 | 7606.95 |
| Laydays/Cancelling | The Vessel shall not be delivered to Charterers before: | 00:01 hours on January 31, 2026 |
| Laydays/Cancelling | The Vessel must be delivered to<br> Charterers no later than: | 23:59 hours on March 1, 2026 |
| Laydays/Cancelling | The times and dates above shall be in local time at the place of Delivery.<br>Charterers will provide notice to Owners by December 15, 2025 narrowing the delivery window to a 5-day window. Charterers will narrow to a specific delivery date upon receipt of the 30-day approximate delivery notice from Owners or as otherwise mutually agreed between the Parties.<br>Charterers shall have the option of cancelling this charter if the Vessel is not ready and at their disposal prior to 23:59 hours on March 1, 2026. | The times and dates above shall be in local time at the place of Delivery.<br>Charterers will provide notice to Owners by December 15, 2025 narrowing the delivery window to a 5-day window. Charterers will narrow to a specific delivery date upon receipt of the 30-day approximate delivery notice from Owners or as otherwise mutually agreed between the Parties.<br>Charterers shall have the option of cancelling this charter if the Vessel is not ready and at their disposal prior to 23:59 hours on March 1, 2026. |
| Charter Period | (a) There will be a firm charter period of 730 days (the "Firm Period"),subject to adjustment in accordance with paragraph (c) below.<br>(b) Charterers' shall have the option to extend the Firm Period by anadditional 365 days (the "Extension Period"), subject to adjustment in accordance with paragraph (c) below. If Charterers wish to exercise this option, they must notify Owners in writing no later than 180 days prior to the expiry of the Firm Period, failing which this option will expire.<br>(c) To allow for redelivery date flexibility, Charterers may elect to add up to30 days to, or subtract up to 30 days from, the end of the Firm Period or the end of the Extension Period (as applicable), which must be declared by Charterers in accordance with their redelivery notices. For clarity, if Charterers exercise the extension option under paragraph (b), this +/- up to 30 days adjustment may only be applied to the end of the Extension Period and not the end of the Firm Period. | (a) There will be a firm charter period of 730 days (the "Firm Period"),subject to adjustment in accordance with paragraph (c) below.<br>(b) Charterers' shall have the option to extend the Firm Period by anadditional 365 days (the "Extension Period"), subject to adjustment in accordance with paragraph (c) below. If Charterers wish to exercise this option, they must notify Owners in writing no later than 180 days prior to the expiry of the Firm Period, failing which this option will expire.<br>(c) To allow for redelivery date flexibility, Charterers may elect to add up to30 days to, or subtract up to 30 days from, the end of the Firm Period or the end of the Extension Period (as applicable), which must be declared by Charterers in accordance with their redelivery notices. For clarity, if Charterers exercise the extension option under paragraph (b), this +/- up to 30 days adjustment may only be applied to the end of the Extension Period and not the end of the Firm Period. |

---

------

---

| | | |
|:---|:---|:---|
| Rate of Hire<br> United States Dollars<br> (US$) per day | (a) During the Firm Period: $US 32,400 pdpr (thirty-two thousand and four hundred dollars per day, pro rata), plus any applicable sales / value added taxes in accordance with Section 39 of Part III of the Time Charter Party for LNG Bunker Vessel.<br>(b) During the Extension Period: $US 34,000 pdpr (thirty-four thousand dollars per day, pro rata), plus any applicable sales / value added taxes in accordance with Section 39 of Part III of the Time Charter Party for LNG Bunker Vessel. | (a) During the Firm Period: $US 32,400 pdpr (thirty-two thousand and four hundred dollars per day, pro rata), plus any applicable sales / value added taxes in accordance with Section 39 of Part III of the Time Charter Party for LNG Bunker Vessel.<br>(b) During the Extension Period: $US 34,000 pdpr (thirty-four thousand dollars per day, pro rata), plus any applicable sales / value added taxes in accordance with Section 39 of Part III of the Time Charter Party for LNG Bunker Vessel. |
| Positioning or<br> Repositioning Costs | Lump sum equal to a notional voyage from Vancouver Canada to the place of<br> Delivery at 12 knots, calculated at 100% of hire (using the rate of hire for the<br> Firm Period), canal fees and 100% Fuel (LNG and pilot fuel) priced at the LNG Price on Delivery and Fuel Price respectively, based on LNG cargo composition at loading and using distance of the notional voyage sourced from [https://ddt.dataloy.com/]. Fuel consumption basis Vessel's Laden Form B numbers. Charterers shall pay the estimated positioning fee to Owners in advance before the Vessel commences its trip to the place of Delivery. No repositioning fee is payable by Charterers. | Lump sum equal to a notional voyage from Vancouver Canada to the place of<br> Delivery at 12 knots, calculated at 100% of hire (using the rate of hire for the<br> Firm Period), canal fees and 100% Fuel (LNG and pilot fuel) priced at the LNG Price on Delivery and Fuel Price respectively, based on LNG cargo composition at loading and using distance of the notional voyage sourced from [https://ddt.dataloy.com/]. Fuel consumption basis Vessel's Laden Form B numbers. Charterers shall pay the estimated positioning fee to Owners in advance before the Vessel commences its trip to the place of Delivery. No repositioning fee is payable by Charterers. |
| Trading Area<br> Restrictions | *Over and above those described in Part III Clause 10 (Geographical Trading Limits)*: As per Part III Clause 10 and the definition of "Place of Operation" in Part<br> III.  | *Over and above those described in Part III Clause 10 (Geographical Trading Limits)*: As per Part III Clause 10 and the definition of "Place of Operation" in Part<br> III.  |
| Delivery and<br> Redelivery Places | Owners shall deliver the Vessel to Charterers at the pilot boarding station inbound or customary waiting area, at: | Galveston Bay, Texas, USA |
|  | Charterers shall redeliver the Vessel to Owners dropping outbound pilot at: | Any safe port, subject always to Part III Clause 10. |
| Delivery Condition | State whether in a cold and ready to load/under natural gas vapour/gas free condition: | Cold and ready to load |
| Delivery Condition | If cold and ready to load, the Vessel shall be delivered with Heel in cargo tanks, measured in cubic metres, and such Heel shall be within the following min/max values: | 6,600 m3 (+/-10%), subject to the "Bunkers and LNG Bought and<br> Sold" clause below |
| Redelivery Condition | Owners shall have the option for the Vessel to be redelivered with cargo tanks containing Heel, measured in cubic metres, up to a maximum of: | 1,500 m3 |
| Redelivery Condition | Owners shall declare the Heel retention option: | On receipt of the 10-day Redelivery notice. |
| Redelivery Condition | If heel-out is required the maximum unpumpable cargo volume, (which shall be paid for by Owners at the LNG Price) at Redelivery, in cubic metres, Vessel may retain shall be: | 100 m3 |
| Bunkers at Delivery | The Vessel shall be delivered to Charterers with not less than: | The Vessel shall be delivered to Charterers with not less than: |
| Bunkers at Delivery | tonnes of fuel oil; | 0 |

---

------

---

| | | |
|:---|:---|:---|
|  | tonnes of very low sulphur fuel oil (VLSFO); | 0 |
|  | tonnes of marine gas oil; | 0 |
|  | tonnes of low sulphur marine gas oil (LSMGO); | 50 |
| Bunkers at Redelivery | The Vessel shall be redelivered to Owners with not less than: | The Vessel shall be redelivered to Owners with not less than: |
| Bunkers at Redelivery | tonnes of fuel oil; | 0 |
| Bunkers at Redelivery | tonnes of very low sulphur fuel oil (VLSFO; | 0 |
| Bunkers at Redelivery | tonnes of marine gas oil; | 0 |
| Bunkers at Redelivery | tonnes of low sulphur marine gas oil (LSMGO); | 50 |
| *The Parties may address Heel and bunkers used during the charter in either one of the following ways:*  | *The Parties may address Heel and bunkers used during the charter in either one of the following ways:*  | *The Parties may address Heel and bunkers used during the charter in either one of the following ways:*  |
| (a) | Bunkers and Heel Bought and Sold | I. <u>Heel (LNG)</u> <br> <u>On Delivery</u>:<br> Owners shall deliver and sell to Charterers, and Charterers shall accept and pay for (at the LNG Price at Delivery set out below), 6,600 m3 (+ or – 10%) of Heel on board the Vessel at the time of Delivery (the "Delivery Cargo"), on the following terms:<br> (i) <u>Price</u>: The price payable for the Delivery Cargo is $10.75 USD/mmbtu (the "Delivery Cargo Price") plus any applicable sales taxes. Charterers shall pay the Delivery Cargo Price to Owners within 10 days of Delivery.<br> (ii) <u>Quality</u>: Charterers' obligation to purchase the Delivery Cargo is subject to such LNG complying with ISO 23306 (*Specification of liquefied natural gas as a fuel for marine applications*) with a minimum methane number of 72 determined by the PKI method (the "Specifications"). Owners shall provide Charterers with a quality analysis from the loading terminal before loading the Delivery Cargo. If, based on such analysis, the Delivery Cargo does not meet or exceed the Specifications, Charterers may as their sole remedy cancel the order for the Delivery Cargo by giving notice of cancellation to Owners, provided that Charterers must deliver such notice of cancellation to Owners within 48 hours of receiving the quality analysis.<br> (iii) <u>Cancellation</u>: If the order for the Delivery Cargo is cancelled for quality reasons pursuant to the foregoing provision, then, provided the LNG to be used as Heel is suitable for the purpose, the Vessel will be delivered cold and ready to load with up to 500 m3 of Heel on board. Such Heel will be purchased by Charterers at the documented price Owners paid to purchase the LNG from the supplier in Vancouver at the date of loading in USD/MMBtu plus the Owners' jetty fee (the "Seaspan Energy Purchase Price").<br> (iv) <u>Title</u>: Title to the Delivery Cargo will transfer to Charterers concurrently with Delivery of the Vessel.<br> <u>On Redelivery</u>:<br> (i) Owners shall have the option for the Vessel to be redelivered with up to a maximum of 1,500 m3 of Heel, to be paid for at the LNG Price at Redelivery.<br> (ii) Owners shall declare the amount of Heel they wish to remain on board at Redelivery (subject to a maximum of 1,500 m3) on the receipt of Charterers' 10-day Redelivery notice. If heel-out is required, the maximum unpumpable cargo volume the Vessel may retain free of charge to Owners shall be 100 m3. II. <u>Liquid Fuel Bunkers</u> <br> Charterers shall accept and pay for all Liquid Fuels on board at the time of Delivery, valued at the Fuel Price at Delivery, and Owners shall upon Redelivery (whether it occurs at the end of the charter or on the earlier termination of this charter) accept and pay for all Liquid Fuels remaining on board, valued at the Fuel Price at Redelivery. |

---

------

(b) Bunker and Heel Reconciliation Not used – (a) above to apply.

---

| | | |
|:---|:---|:---|
| Fuel Price | US Dollars (US$) per tonne: | Basis LIFO. |
| Secondary Fuel Price | US Dollars (US$) per tonne: | Not used. |
| LNG Price | At Delivery, US Dollars (US$) per Mmbtu: | Either the Delivery Cargo Price or the Seaspan Energy Purchase Price (as determined per the "Bunkers and Heel Bought and Sold" section above). |
| | At Redelivery, US Dollars (US$) per Mmbtu: | The ex-ship price of LNG in United<br> States Dollars/Mmbtu (US<br> $/Mmbtu), at the last port where the<br> LNG was discharged prior to<br> Redelivery of the Vessel |

---

*Notes* <br> *1. In the case of option (b) above, Bunker Reconciliation, the Parties must use only one LNG price. In the absence of agreement to the contrary, the LNG Price shall apply.* <br> *2. Wherever an* "*LNG Price*" *is referred to in Part III of this charter, the LNG Price At Redelivery shall apply, save: (i) where a term of the charter specifies an alternative method; or (ii) as per Appendix A (Performance Calculation) as applicable.* <br>

---

| | | |
|:---|:---|:---|
| Delivery Notices | Owners shall provide notice of<br> Delivery at these number of days: | Owners shall provide 45 and 30 days approximate notice and 25, 20, 15, 10, 7, 5, 4, 3, 2, 1 days firm notice of Delivery (date and place). |
| Redelivery Notices | Charterers shall provide notice of<br> Redelivery at these number of days: | Charterers shall provide 60, 45 and 30 days approximate notice and 25, 20, 15, 10, 7, 5, 4, 3, 2, 1 days firm notice of Redelivery (date and place). |

---

<u> Banking Details</u> <u> To be provided by written notice by each Party to the other Party. From time to time, either Party may change their banking details by giving written notice to the other Party. </u>

---

| | | |
|:---|:---|:---|
| Pollution and<br> Emergency Response | Notice to Owners' Pollution and Emergency Response Department shall be directed to: | Brodie Verhiel<br> bverhiel@seaspan.com +1 778 828 8468 |
|  | Notice to Charterers' Pollution and Emergency Response Department shall be directed to: | Joseph Parks <u>jparks@stabilis-solutions.com</u> <br> +1 832-242-2429 +1 832-456-6500 |
|  |  | Amanda C. Collins<br> acollins@stabilis-solutions.com |

---

*The Parties are to include organisational details, names of personnel, relevant telephone numbers and e-mail, addresses including 24 hour contact details of relevant persons and, where OPA 90 applies, that of the Qualified Individual.* <br> *Either Party must advise the other immediately as soon as they are aware of any venting, oil spill, casualty or other emergency directly or indirectly associated with the charter or Vessel in accordance with Part III, Clause 6 (Incident Reporting).* <br>

---

| | | |
|:---|:---|:---|
| Notices | Notice to Owners: | Seaspan Energy Ltd.<br> 10 Pemberton Ave.<br> North Vancouver, BC, Canada<br> V7P 2R1<br> Attention: President<br> Email: hpenner@seaspan.com, cc. legalnoticesmarinea@seaspan.com |
|  | Notice to Owners' Operations Department: | Email:<br> zack.garland@seaspan.com, cc.<br> tech.energy@seaspan.com |
|  | Notice to Charterers: | Stabilis GDS, Inc.<br> 11750 Katy Frwy., Suite 900<br> Houston, TX 77079<br> Attention: Legal Department Email: Legal@stabilissolutions.com |
|  | Notice to Charterers' Operations Department: | Email: MarineOps@stabilissolutions.com |

---

*Notices under this charter shall be in accordance with Part III Clause 68 (Notices) to the above addresses.* <br>

------

*Performance Insertions:* 

---

| | | |
|:---|:---|:---|
|  |  |  |
| Maximum Daily<br> Boil-Off Rate | Laden; % per day of Gross Capacity of LNG Tanks: | 0.24% at 98% fill. Tank temp at –160\*C. |
| Maximum Daily<br> Boil-Off Rate | Ballast; % per day of Gross Capacity of LNG Tanks: | Data Not<br> available |
| Maximum Effective Daily Boil-Off Rate<br> (*net Boil-Off rate where reliq or other equipment is used)*  | Effective Laden; % per day of Gross Capacity of LNG Tanks: | 0% |
| Maximum Effective Daily Boil-Off Rate<br> (*net Boil-Off rate where reliq or other equipment is used)*  | Effective Ballast; % per day of Gross Capacity of LNG Tanks: | 0% |
| FOE | Fuel Oil Equivalent Factor shall be: | TBA |
| Guaranteed Service Speed | Laden speed in knots: | 12 |
| Guaranteed Service Speed | Ballast speed in knots: | 12.5 |
| Guaranteed Service Speed | Minimum Speed in knots: | 9.5 |
| Off-Hire Extensions | Pursuant to Clause 34(e) (Off-Hire) whereby Charterers have the right to extend the charter period by any period of off-hire, Charterers shall give notice to Owners exercising such right, no less than the following number of days prior to the date when the charter would otherwise have expired: | 60 days |
| Off-Hire<br> Termination Rights | Pursuant to Clause 34(i) (Off-Hire), whereby Charterers may terminate this charter, the number of days the Vessel has been off-hire, either consecutively or cumulatively, that would permit Charterers to exercise such right, shall be: | 60 days |
| Gas-Up, Cool-Down | *Where the Parties have agreed to either of these operations under Part III Clause 23(c)(i) (Gas-Up, Cool-Down, LNG Retention):*  | *Where the Parties have agreed to either of these operations under Part III Clause 23(c)(i) (Gas-Up, Cool-Down, LNG Retention):*  |
| Gas-Up, Cool-Down | The estimated number of hours for Gas-Up: | 8 hrs |
| Gas-Up, Cool-Down | The estimated number of hours for Cool-Down: | 38 hrs |
| Gas-Up, Cool-Down | The estimated LNG required for Gas-Up in cubic metres: | 40 |
| Gas-Up, Cool-Down | The estimated LNG required for Cool-Down in cubic metres: | 190 |
| Drydock | Pursuant to Clause 35(a) notice of Drydock interval in months: | N/A |
| Drydock | Pursuant to Clause 35(b) prior notice of Drydock in days: | N/A |

---

------

---

| | | |
|:---|:---|:---|
| LNG Form B | ShellLNGTime2.1 Part II, (LNG Form B) as attached is included in the terms of this charter and represents Owners' guarantees and warranties unless otherwise stated in this Part I.<br> The Parties acknowledge that an interim Part II has been attached as of the date of this charter pending completion of the Speed / Consumption tables for alternative fuelling modes for the Vessel under section 6 of Part II. Within one Business Day of the date of this charter, Owners will provide Charterers with an updated Part II with the tables under section 6 of Part II completed so as to align with Appendix A (Peformance Calculations) of Part III. Upon written confirmation of receipt and approval of the updated Part II by Charterers, it will replace the interim Part II. | ShellLNGTime2.1 Part II, (LNG Form B) as attached is included in the terms of this charter and represents Owners' guarantees and warranties unless otherwise stated in this Part I.<br> The Parties acknowledge that an interim Part II has been attached as of the date of this charter pending completion of the Speed / Consumption tables for alternative fuelling modes for the Vessel under section 6 of Part II. Within one Business Day of the date of this charter, Owners will provide Charterers with an updated Part II with the tables under section 6 of Part II completed so as to align with Appendix A (Peformance Calculations) of Part III. Upon written confirmation of receipt and approval of the updated Part II by Charterers, it will replace the interim Part II. |
| Charter Party<br> Administration | The agreed terms and conditions of this charter shall be recorded and evidenced by the production of this ShellLNGTime2.1 Part I signed by both Charterers and Owners, together with the attached Part II, LNG Form B and attached Part III, Standard Chartering Terms (as amended by the Parties). No further written and signed Charter Party documentation shall be produced unless specifically requested by Charterers or Owners, or as may be required by additional clauses of this charter.ٻ | The agreed terms and conditions of this charter shall be recorded and evidenced by the production of this ShellLNGTime2.1 Part I signed by both Charterers and Owners, together with the attached Part II, LNG Form B and attached Part III, Standard Chartering Terms (as amended by the Parties). No further written and signed Charter Party documentation shall be produced unless specifically requested by Charterers or Owners, or as may be required by additional clauses of this charter.ٻ |
| Clause Priority (Construction) | If any inconsistency arises between the provisions of Part I, Part II, Part III, and Appendix A of this charter, and in the absence of any express provision to the contrary, the order or priority for interpreting the validity and meaning of the different parts shall be:<br> Part I, Negotiated Chartering Terms<br> Part II LNG Form B<br> Part III Standard Chartering Terms (as amended) Appendix A, Performance Calculations | If any inconsistency arises between the provisions of Part I, Part II, Part III, and Appendix A of this charter, and in the absence of any express provision to the contrary, the order or priority for interpreting the validity and meaning of the different parts shall be:<br> Part I, Negotiated Chartering Terms<br> Part II LNG Form B<br> Part III Standard Chartering Terms (as amended) Appendix A, Performance Calculations |
| Brokers | Fearnleys AS shall be the brokers for this charter party and shall be paid by Owners:<br> (a) 1.25% of all hire earned and received during the charter, including the hire element of the positioning fee;<br> (b) if Charterers' exercise the Purchase Option described further below, 1% of the purchase price for the Vessel, subject to the successful completion of the sale and receipt of the purchase price by Owners. | Fearnleys AS shall be the brokers for this charter party and shall be paid by Owners:<br> (a) 1.25% of all hire earned and received during the charter, including the hire element of the positioning fee;<br> (b) if Charterers' exercise the Purchase Option described further below, 1% of the purchase price for the Vessel, subject to the successful completion of the sale and receipt of the purchase price by Owners. |
| Other Terms | **<u>Parent Guarantee:</u>** <br> Concurrently with the execution and delivery of the charter, Charterers shall provide Owners with a guarantee from Charterers' parent company, Stabilis Solutions, Inc., guaranteeing the performance of Charterers' obligations under the charter, in the form attached as Exhibit A to this Part I. | **<u>Parent Guarantee:</u>** <br> Concurrently with the execution and delivery of the charter, Charterers shall provide Owners with a guarantee from Charterers' parent company, Stabilis Solutions, Inc., guaranteeing the performance of Charterers' obligations under the charter, in the form attached as Exhibit A to this Part I. |
|  | **<u>Purchase Option:</u>** <br> Charterers shall have the option to purchase the Vessel during the Charter Period on the terms and conditions set out in Exhibit B to this Part I.<br>**<u>Transfer of Vessel Ownership to Affiliate:</u>** <br> Owners may transfer title to the Vessel to an Affiliate at any time prior to or during the charter period, upon giving written notice of the same to Charterers. In the event of such transfer, Owners shall concurrently assign their rights and obligations under this charter and the MOA (as defined in Exhibit B) to such Affiliate. Charterers agree to the foregoing on the condition that Owners remain jointly liable with the applicable Affiliate for the performance of Owners' obligations under the charter and the MOA. | **<u>Purchase Option:</u>** <br> Charterers shall have the option to purchase the Vessel during the Charter Period on the terms and conditions set out in Exhibit B to this Part I.<br>**<u>Transfer of Vessel Ownership to Affiliate:</u>** <br> Owners may transfer title to the Vessel to an Affiliate at any time prior to or during the charter period, upon giving written notice of the same to Charterers. In the event of such transfer, Owners shall concurrently assign their rights and obligations under this charter and the MOA (as defined in Exhibit B) to such Affiliate. Charterers agree to the foregoing on the condition that Owners remain jointly liable with the applicable Affiliate for the performance of Owners' obligations under the charter and the MOA. |
| *The Subjects*' *requirements listed below must be satisfied by the times and dates indicated in order that this charter becomes binding between the Parties.*  | *The Subjects*' *requirements listed below must be satisfied by the times and dates indicated in order that this charter becomes binding between the Parties.*  | *The Subjects*' *requirements listed below must be satisfied by the times and dates indicated in order that this charter becomes binding between the Parties.*  |
| Subjects | None. | None. |
| Signed for Owners | Full Name: | Harly Penner |
| Signed for Owners | Position: | P<u>resident</u> |
| Signed for Owners | Signature: | /s/ Harly Penner |
| Signed for Charterers | Full Name: | Casey Crenshaw |
| Signed for Charterers | Position: | CEO |
| Signed for Charterers | Signature: | &nbsp;&nbsp;&nbsp;&nbsp;/s/ Casey Crenshaw |

---

**EXHIBIT A: FORM OF PARENT GUARANTEE** 

**[see attached]** 

------

![ex_915218img001.jpg](ex_915218img001.jpg)

To: Seaspan Energy Ltd.

10 Pemberton Avenue

North Vancouver, BC V7P 2R1

Canada

Date: December 12, 2025

Dear Sirs:

&nbsp;&nbsp;&nbsp;&nbsp;1. We refer to the time charter dated as of  ***December 12, 2025*** (as amended or supplemented at any time, the "**Charter**") and made between Seaspan Energy Ltd. (the "**Owners**") as owners of the vessel presently known as *SEASPAN GARIBALDI* (the "**Vessel**") and Stabilis GDS, Inc. (the "**Charterers**") as time charterers of the Vessel. Expressions used in this Guarantee with initial capitals and not defined in this Guarantee shall have the meaning given to them in the Charter.

&nbsp;&nbsp;&nbsp;&nbsp;2. In consideration of the Owners agreeing to accept this Guarantee under Clause 37(h) of the Charter as a security for the performance of the Charterers' obligations under the Charter, and other good and valuable consideration (the receipt and adequacy of which we hereby acknowledge), at the request of the Charterers we hereby undertake to be responsible for and hereby unconditionally and irrevocably:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) guarantee to the Owners the due and punctual payment of all sums from time to time payable by the Charterers under and in connection with the Charter (including, without limitation, sums due as hire, sums due for positioning the Vessel, sums due pursuant to the indemnity provisions of the Charter, any sums payable by way of damages for breach of Charter by Charterers, and any interest payable by Charterers) against the Owners' simple written demand specifying (a) the amount claimed by the Owners, and (b) the account to which the amount demanded should be paid;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) undertake to the Owners that (a) payment will be made by us forthwith upon our receipt of any simple written demand from the Owners, without any counterclaim, deductions, set-off, withholdings or any objection whatsoever, and (b) if we are required by law to make any deduction or withholding from any payment to the Owners under this Guarantee, our payment to the Owners will be increased by such amount as may be necessary to ensure that, after all of the required deductions and withholdings have been made, the Owners receive a payment equal to the amount they would have received had no such deductions or withholdings been made; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) guarantee the due and punctual performance of all obligations to be performed by the Charterers under and in connection with the Charter.

&nbsp;&nbsp;&nbsp;&nbsp;3. Our obligations under this Guarantee are those of a sole primary obligor (as and for our own debt and independent from any obligations of the Charterers) and not merely as surety, and we agree that the Owners shall not be not obliged to make any prior demand of the Charterers under the Charter or to seek to enforce any remedies against the Charterers before making a claim under this Guarantee. It being understood, that no claim may be made under this Guarantee unless and until such time as the same claim could have been made against the Charterers, subject always to any disputed amounts being determined in accordance with the arbitration provisions of the Charter. We also agree that the Owners may make one or more demands under this Guarantee.

------

![ex_915218img002.jpg](ex_915218img002.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;4. Our obligations under this Guarantee shall not be in any respect discharged, impaired, limited or otherwise affected by reason of any events or circumstances whatsoever including without limitation (i) any invalidity, irregularity or unenforceability of any of the Charterers' obligations under or in connection with the Charter, (ii) the granting to the Charterers of any time, waiver, consent, indulgence or other forbearance in relation to the Charter, (iii) any bankruptcy, insolvency or similar proceedings related to any party to the Charter, (iv) any amendments or supplements to the Charter, (v) any claims by the Charterers under or in connection with the Charter, or (vi) any other events or circumstances that might otherwise constitute a legal or equitable discharge of or defence to a surety or guarantor under applicable law, and we hereby irrevocably and unconditionally waive any and all defences at law or in equity that may be available to us by reason of any such events or circumstances.

&nbsp;&nbsp;&nbsp;&nbsp;5. This Guarantee shall be in addition to any other security that is at any time granted or procured by or on behalf of the Charterers in favour of the Owners under the Charter, and we agree that our obligations under this Guarantee shall not be affected by any action taken or not taken by the Owners under or with respect to any such other security.

&nbsp;&nbsp;&nbsp;&nbsp;6. This Guarantee may be assigned by the Owners to their successors, financiers or to any Affiliate to whom Owners assigns their rights under and in accordance with Clause 36(c) of the Charter.

&nbsp;&nbsp;&nbsp;&nbsp;7. We unconditionally and irrevocably agree the application of English law to this Guarantee (including in relation to any non-contractual obligations); and Clause 63 (Law and Litigation) of the Charter shall be deemed to be incorporated into this Guarantee (to apply LMAA arbitration as the method for the resolution of any disputes between us and Owners arising under this Guarantee).

&nbsp;&nbsp;&nbsp;&nbsp;8. All correspondence, claims and demands under or in connection with this Guarantee shall be marked for the attention of **Legal Department** and delivered to us at **11750 Katy Freeway, Suite 900, Houston, TX 77079** and copy by email to **Legal@stabilis-solutions.com**.

Yours faithfully

**For and on behalf of Stabilis Solutions, Inc.** <br>

By:<br>

/s/ Casey Crenshaw………………………………………………..<br>

Name: Casey Crenshaw

Authority: CEO

------

**EXHIBIT B: PURCHASE OPTION TERMS** 

&nbsp;&nbsp;&nbsp;&nbsp;1. Owners hereby grant to Charterers the option to purchase the Vessel for the price of US$60,000,000 (United States Dollars sixty million) (the "Purchase Option") on the terms and conditions set out in this Exhibit B.

&nbsp;&nbsp;&nbsp;&nbsp;2. The exercise of the Purchase Option is subject to the following conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If Charterers wish to exercise the Purchase Option during the Firm Period (as defined in Part I of the charter in box titled "Charter Period"), Charterers' must provide a written option exercise notice to Owners stating that they are exercising the Purchase Option under this section 2(a), expressing their intention to enter into a memorandum of agreement on amended Norwegian Saleform 2012 terms in the form attached to EXHIBIT C of this Part I as a working copy draft (the "MOA"), and stating a requested date for completing the transfer of ownership of the Vessel, which date must be at least 180 days from the date on which the option exercise notice is delivered to Owners and must be no later than the end of the Firm Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If Charterers elect to extend the charter period for the Extension Period (in accordance with and as defined in Part I of the charter in box titled "Charter Period") and further wish to exercise the Purchase Option during the Extension Period, Charterers' must provide a written option exercise notice to Owners by no later than the first day of the Extension Period, stating that they are exercising the Purchase Option under this section 2(b), expressing their intention to enter into the MOA, and stating a requested date for completing the transfer of ownership of the Vessel, which date must be immediately following redelivery of the Vessel upon expiry of the Extension Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Charterers may not deliver any Purchase Option exercise notice under subsection 2(a) or 2(b) above until after the Vessel has been delivered in the charter by Owners and the charter period has commenced.

&nbsp;&nbsp;&nbsp;&nbsp;3. The Purchase Option will expire and be of no further force or effect unless exercised by Charterers in accordance with subsection 2(a) or 2(b) of this Exhibit B. Charterers' exercise of the Purchase Option shall be irrevocable, once the Purchase Option exercise notice has been given.

&nbsp;&nbsp;&nbsp;&nbsp;4. Within 14 days following the exercise of the Purchase Option by Charterers in accordance with subsection 2(a) or 2(b) of this Exhibit B, the Parties will enter into the final fully negotiated MOA, which will establish the terms and conditions for the sale and purchase of the Vessel. For clarity, Owners are not obligated to agree to any changes to the form of MOA attached as Exhibit C that Owners, in their reasonable discretion, determine to be a material change from the terms and conditions set out in Exhibit C.

&nbsp;&nbsp;&nbsp;&nbsp;5. The Parties may negotiate and agree in writing on adjustments to the MOA, provided that the MOA will be deemed signed by the Parties in the form attached as EXHIBIT C (with dates completed as per the Purchase Option exercise notice given by Charterers in accordance with section 2 of this Exhibit B) if the MOA has not been signed by the Parties with the 14-day period set out in the previous provision. The Parties agree to endeavour to finalize negotiations on the MOA in a good and timely manner, subject to the proviso at the end of section 4 above.

------

&nbsp;&nbsp;&nbsp;&nbsp;6. Hire shall continue to accrue and be payable under the charter until the date and time that sale and purchase of the Vessel is completed under the MOA ("Closing"). Upon Closing (and, for clarity, immediately prior to the transfer of title in the Vessel by Owners as sellers to Charterers as buyers), the Charter Period will automatically be deemed to end and the charter will terminate, and neither Party will have any further rights or obligations under the charter, other than with respect to any rights or obligations, including without limitation payment obligations, that arose or accrued under the charter prior to Closing or with respect to any provisions that expressly or would reasonably be expected to survive the expiry or termination of the charter. For greater clarity, if Charterers exercise the Purchase Option:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. the provisions in the charter pertaining to the sending of Redelivery notices will not apply;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. the Vessel will be redelivered wherever she is (always in accordance with the Trading Area Restrictions) at the time of Closing (and the place of Redelivery in Part I of this charter shall be deemed amended accordingly); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. the provisions in the charter pertaining to Redelivery Condition / Heel and measurement and transfer of bunkers at Redelivery will not apply, and all bunkers and Heel on board the Vessel will remain the property of Charterers at Closing.

&nbsp;&nbsp;&nbsp;&nbsp;7. Charterers shall maintain the Vessel's flag registry for the purposes of registration of transfer of ownership under the MOA unless otherwise agreed between the Parties upon Charterers' request which to be expressed with the Purchase Option notice.

------

**EXHIBIT C: FORM OF AGREEMENT FOR SALE AND PURCHASE OF VESSEL** 

**The file titled** "**ShellLNGTime2.1 Part I Seaspan Garabaldi Exhibit C** – **MOA**"**, as attached to the e-mail from Harly Penner of the Owners to Amanda Collins of the Charterers dated December 12, 2025, in incorporated into this Exhibit C.SHELLLNGTIME 2** 

------

**<u>PART II</u>** <u> </u>**<u>LNG FORM B - PARTICULARS OF BUNKER VESSEL</u>** 

(a) Ship's Name Seaspan Garibaldi

(b) Builder and Yard Nantong CIMC Sinopacific Offshore & Engineering Co. Ltd.

(c) Hull No. S1061

(d) Year Built 2024

(e) Port of Registry and Flag Panama City, Panama

(f) IMO Number 9974319

(g) Call Sign HOA3298

(h) Classification Society Bureau Veritas

(i) Protection and Indemnity Club Lloyds

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Principal Particulars

(a) Length overall 112.80 m

(b) Length Between Perpendiculars 107.81 m

(c) Breadth moulded 18.60 m

(d) Depth moulded 11.40 m

(e) Draught at summer freeboard (Extreme) 5.50 m

(f) Height overall — keel to highest fixed point 35.40 m

(g) Maximum air draught (with full ballast and half bunkers) (corresponding draughts) 29.9 m

(h) Gross Tonnage (International) 7,976 MT

(i) Net Tonnage (International) 2,392 MT

(j) Gross Tonnage (Suez) 8,859 MT

(k) Net Tonnage (Suez) 7,532 MT

(l) Net Tonnage (Panama) 6,748 MT

(m) Light Ship Displacement 4,428 MT

(n) Displacement (maximum) 8,864 MT

(o) Windage in normal ballast conditions: Lateral 988.6 m2

(p) Longitudinal 266.3 m2

(r) Classification designation I ✠HULL ✠MACH LNG BUNKER SHIP IG-SUPPLY, BOG AUT-UMS, INWATERSURVEY

(s) Conditions of Carriage (as defined on Certificate of Fitness): Product: LNG Maximum pressure: 4.0 barg Minimum pressure: -0.25 barg Minimum temperature: -165°C Maximum cargo density: 450 kg/m3 Cargo tank(s) filling limit: 98%

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Operating Draught and Deadweight

(a) Draught filling to 98.5% (@ cargo density 0.47 kg/m3) 5.173 m

(b) Deadweight filling to 98.5%(@ cargo density 0.47 kg/m3) 3,944 MT

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Ballast System

(a) Total capacity of ballast water tanks 1,850 m3

(b) Number, capacity and head of pumps for handling ballast 2 x 75 m3/hr, 0.3 MPa

(c) Is Bunker Vessel able to ballast / de-ballast within the cargo loading/discharging period? Yes

(d) Can the Bunker Vessel undertake ballast exchange at sea within 24 hours Yes

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Details of Principal Certification

(List conventions complied with / Certificates obtained, including protocols, amendments and date of issue)

(a) Loadline International Load Line Certificate Aug 15, 2024

(b) SOLAS Record of Equipment for Compliance with SOLAS Form E Record of Equipment of Radio Facilities for Compliance with SOLAS Form R Aug 15, 2024

(c) IGC Code International Certificate of Fitness for the Carriage of Liquified Gases in Bulk Aug 15, 2024

(d) Tonnage International Tonnage Certificate Panama Canal Tonnage Certificate Suez Canal Tonnage Certificate Aug 15, 2024

(e) Marine Pollution (MARPOL) International Oil Pollution Prevention Certificate International Sewage Pollution Prevention Certificate International Air Pollution Certificate International Energy Efficiency Certificate Aug 15, 2024

(f) I. M. O. Certificate of Fitness N/A – IGC Certificate of Fitness in place

(g) USCG Certificate of Compliance N/A – attestations in place Attestation for USCG 33 CFR Part 155, 159 & 164 "Pollution prevention" Attestation for USCG 46 CFR Part 39 "Vapour emission control system" Attestation for USCG 46 CFR Part 154 "Gas attestation regarding the ship design" Aug 15, 2024

(h) Independent Sworn Measurer Certificate Yes, independent verification by SGS

(i) SIRE Inspection Yes

(j) Port state control Yes

Is certification held indicating compliance with the following?

(k) ISPS Code Yes

(l) Rules and Regulations of Suez Canal Authorities Yes

(m) ISM Yes

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Propulsion

(a) Type and make of propulsion plant MAN/STX: 3 x dual fuel generators Schottel/elkon: DC propulsion grid Schottel: 2 x SRE 430 azimuthing thrusters

(b) Maximum rated power and RPM 2 x 1600 kW, 266 RPM (propeller)

(c) Proposed service power and RPM 2 x 1325 kW, 248 RPM (propeller)

(d) Grade of Fuel NG, MDO, LSDO

(e) Dual Fuel Burning Yes

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Speed / Consumption

***As an alternative to the above table, and where Appendix A of Part III applies, there are various fuelling modes according to the Boil-Off management system being deployed:***

Mode 1 – Not Applicable

------

Mode 2 – Min Gas Laden

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| Operating<br> Condition | Ship Speed | GCU<br> Consumption | Total gas<br> consumption | Total Fuel Consumption, MT/Day<br> (FOE) | Total Fuel Consumption, MT/Day<br> (FOE) | Total Fuel Consumption, MT/Day<br> (FOE) | Total Fuel Consumption, MT/Day<br> (FOE) |
| ALS<br> on/Subcooler<br> off | Knots | MT/day<br> (FOE) | Fuel gas<br> MT/day | Fuel gas | Fuel oil | Pilot Oil | Total |
|  | 9.5 |  | 5.32 |  | 5.86 | 0.55 | 6.41 |
|  | 10 |  | 5.86 |  | 6.45 | 0.55 | 7.00 |
|  | 10.5 |  | 6.47 |  | 7.12 | 0.56 | 7.68 |
|  | 11 |  | 7.24 |  | 7.96 | 0.56 | 8.53 |
|  | 11.5 |  | 8.00 |  | 8.80 | 0.58 | 9.38 |
|  | 12 |  | 8.87 |  | 9.76 | 0.83 | 10.59 |
|  | 12.5 |  | 9.82 |  | 10.81 | 0.84 | 11.64 |
|  | 13 |  | 10.88 |  | 11.98 | 0.85 | 12.82 |

---

Mode 2 – Min Gas Ballast

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| Operating<br> Condition | Ship<br> Speed | GCU<br> Consumption | Total gas<br> consumption | Total Fuel Consumption, MT/Day<br> (FOE) | Total Fuel Consumption, MT/Day<br> (FOE) | Total Fuel Consumption, MT/Day<br> (FOE) | Total Fuel Consumption, MT/Day<br> (FOE) |
| ALS<br> on/Subcooler<br> off | Knots | MT/day<br> (FOE) | Fuel gas<br> MT/day | Fuel gas | Fuel oil | Pilot Oil | Total |
|  | 9.5 |  | 5.11 |  | 5.62 | 0.55 | 6.18 |
|  | 10 |  | 5.57 |  | 6.13 | 0.55 | 6.68 |
|  | 10.5 |  | 6.18 |  | 6.80 | 0.55 | 7.35 |
|  | 11 |  | 6.80 |  | 7.48 | 0.56 | 8.04 |
|  | 11.5 |  | 7.57 |  | 8.33 | 0.57 | 8.90 |
|  | 12 |  | 8.33 |  | 9.17 | 0.59 | 9.75 |
|  | 12.5 |  | 9.25 |  | 10.17 | 0.83 | 11.01 |
|  | 13 |  | 10.16 |  | 11.18 | 0.84 | 12.02 |

---

------

Mode 3 – Fuel Oil only – Laden

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| Operating<br> Condition | Ship<br> Speed | GCU<br> Consumption | Total gas<br> consumption | Total Fuel Consumption, MT/Day<br> (FOE) | Total Fuel Consumption, MT/Day<br> (FOE) | Total Fuel Consumption, MT/Day<br> (FOE) | Total Fuel Consumption, MT/Day<br> (FOE) |
| ALS<br> on/Subcooler<br> off | Knots | MT/day<br> (FOE) | Fuel gas<br> MT/day | Fuel gas | Fuel oil | Pilot Oil | Total |
|  | 9.5 |  |  |  |  |  | 6.96 |
|  | 10 |  |  |  |  |  | 7.60 |
|  | 10.5 |  |  |  |  |  | 8.34 |
|  | 11 |  |  |  |  |  | 9.31 |
|  | 11.5 |  |  |  |  |  | 10.32 |
|  | 12 |  |  |  |  |  | 11.60 |
|  | 12.5 |  |  |  |  |  | 12.78 |
|  | 13 |  |  |  |  |  | 14.14 |

---

Mode 3 – Fuel Oil only – Ballast

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| Operating<br> Condition | Ship<br> Speed | GCU<br> Consumption | Total gas<br> consumption | Total Fuel Consumption, MT/Day<br> (FOE) | Total Fuel Consumption, MT/Day<br> (FOE) | Total Fuel Consumption, MT/Day<br> (FOE) | Total Fuel Consumption, MT/Day<br> (FOE) |
| ALS<br> on/Subcooler<br> off | Knots | MT/day<br> (FOE) | Fuel gas<br> MT/day | Fuel gas | Fuel oil | Pilot Oil | Total |
|  | 9.5 |  |  |  |  |  | 6.70 |
|  | 10 |  |  |  |  |  | 7.24 |
|  | 10.5 |  |  |  |  |  | 7.96 |
|  | 11 |  |  |  |  |  | 8.73 |
|  | 11.5 |  |  |  |  |  | 9.71 |
|  | 12 |  |  |  |  |  | 10.73 |
|  | 12.5 |  |  |  |  |  | 12.02 |
|  | 13 |  |  |  |  |  | 13.16 |

---

(b) Trial Speed at Maximum Power 14 Knots

(c) Service Speed, Laden and Ballast (Available power for propulsion with gas plant ON) 12.8 Knots (Laden) 13.2 Knots (Ballast)

(d) In Port (cargo operations, including subcooler, single cargo pump and using two generators for redundancy) 5.91 MT/Day

(e) In Port (idle, including subcooler) 4.48 MT/Day

(f) For Inert Gas Generation N/A

(g) For Reliquifaction of the cargo N/A

(h) For Ballast exchange Ballast pump capacity only 11kW each. No impact to overall consumption

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. Boilers and Steam Capacity

(a) Number and type of boilers N/A

(b) Maximum steam output available N/A

(c) Normal service output corresponding to 5(b) N/A

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. Cargo Tanks

(a) Number of tanks 2

------

(b) Capacity of LNG tanks at normal filling level (98%) No 1 Tank No 2 Tank Total 3,748.42 m3 3,744.43 m3 7,492.85 m3

(c) Gross Capacity of LNG tanks at 100% No 1 Tank No 2 Tank Total 3,805.50 m3 3,801.45 m3 7,606.95 m3

(d) Partial loading / filling restrictions None

(e) The Bunker Vessel's cargo tanks can be cooled down from ambient in: 38 Hours

(f) Maximum filling rate 1,000 m3 per hour

(g) Relief valve settings (MARVS) 4,000 mb (gauge)

(h) Loaded Boil-Off rate (98% loaded) 0.20% of gross capacity per day (theoretical)

(i) Ballast Boil-Off rate Currently not available

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. Cargo Discharge

(a) Number of cargo pumps per tank 1

(b) Make and type of cargo pumps Svanehøj, deepwell 3 stage centrifugal

(c) Design rated capacity of each cargo pump and corresponding discharge head 140 – 800 m3/hr, 200 mLC (variable speed)

(d) Number of spray (stripping) pumps per tank 1

(e) Make and type of spray (stripping) pumps Vanzetti, 2 stage centrifugal

(f) Design rated capacity of each spray pump and corresponding discharge head 4.5 – 15 m3/hr, 210 mLC

(g) Number, Make and Capacity of Auxiliary Pumps N/A

(h) Minimum hourly pumping rate and pressure for discharge of cargo during Bunkering Operations 63 m3/hr, pressure dependent upon line losses and restrictions on LBV and client vessel

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. Cryogenic Systems

(a) Type of LNG containment system Type C

(b) Design temperature -165°C

(c) Make and type of vapour return compressors Burckhardt, labyrinth piston

(d) Number and rated capacity of vapour return compressors and corresponding discharge head x2, 294 kg/hr, 8 barg discharge pressure

(e) Is a steam dump system provided? If so, is the capacity sufficient to deal with all excess steam generated by the boilers at max designed Boil- Off rate with engines stopped according to Class & USCG Rules? N/A

(f) Total capacity of liquid nitrogen storage tanks (if nitrogen generator not fitted) N/A

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. LNG Measurement and Tank Calibration

(a) Are all tanks calibrated and certified by a qualified agency? (Specify agency) Yes, SGS

(b) Make and type of primary system for measuring cargo level, temperature and pressure Level measuring system accuracy and range Temperature measuring system accuracy and range Pressure measuring system accuracy and range Kongsberg – K Gauge CTS Radar level gauge +/-5.0 mm +/- 0.1°C @ -165°C +/- 0.2°C @ -145°C +/- 0.2°C @ -100°C +/- 1.5°C @ 0°C +/- 30 mbar or +/- 0.5% of FSR **Vessel CTS system accurate** **within specified tolerances set by** **ISO 10976:2023** 

(c) Is secondary system for measuring LNG liquid level fitted and, if so, state type and measuring accuracy Yes, Float Level Gauge +/- 10.0 mm **Vessel also equipped with dCTS from Endress** **Hauser comprising of Coriolis flow meters and a RAMAN** **analyser** 

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. Cargo Manifolds

(a) Do manifolds follow requirements of Vol Category "B" of OCIMF "*Recommendations for Manifolds for Refrigerated Liquefied Natural Gas Carriers (LNG)* "*2nd Edition* — *1994*? (If "No", state variations) No, the manifolds follow requirements as prescribed in "Recommendations for Manifolds for Refrigerated Liquefied Natural Gas Carriers (LNG)" 2nd Edition — 2018

(b) State layout of liquid and vapour connections Port (elevated manifold) L-V, 12", ANSI 150, RF Stbd (lower manifold) L-V-L, 8", ANSI 150, RF Port (bow manifold) L-V, 8" ANSI 150, RF

(c) Distance of the centre of manifolds from amidships Port (elevated manifold) 0 m Stbd (lower manifold) 0 m Port (bow manifold) 32.84 m

(d) Distance of presentation flange from ship's side Port (elevated manifold) 2.64 m Stbd (lower manifold) 2.50 m Port (bow manifold) 2.50 m

(e) Distance of presentation flange from ship's rail Port (elevated manifold) 2.41 m Stbd (lower manifold) 2.27 m Port (bow manifold) 2.27 m

(f) Height of manifold centre above keel Port (elevated manifold) 22.00 m Stbd (lower manifold) 15.50 m Port (bow manifold) 16.90 m

(g) Size and location of liquid nitrogen loading connection

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. Emergency Shutdown System and Ship/Shore Compatibility

(a) At what cargo level (%) is overflow protection activated? 98.5%

(b) Does overflow protection activate the following: Trip ESD system? Close manifold valves? Trip cargo pumps? Trip ship/shore link system? Yes

(c) What ship/shore link systems are installed: Optical Fibre Link Electric Links — Pyle-National / Miyake connector Pneumatic ESD Link Fiber-optic OR Electric OR Pneumatic

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. Bunkers

(a) Capacity of fuel oil bunker tanks @ 98% (SG 0.99) N/A

(b) Capacity of gas oil bunker tanks @ 98% (SG 0.86) 119.60 MT

(c) Maximum bunker loading rate 80 MT/hr

(d) Segregated low sulphur fuel oil storage capacity N/A

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. Fresh Water Capacity

(a) Capacity of fresh water generators 20 MT per day

(b) Distilled capacity N/A

(c) Domestic capacity 46.66 MT

(d) Distilled consumption N/A

(e) Domestic consumption 2.5 MT per day

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. Inert Gas Generation

(a) Type and make of equipment N/A

(b) Capacity N/A

(c) Quality of gas O2 Max N/A

(d) Quality of gas CO Max N/A

(e) Quality of gas SO2 Max N/A

(f) Quality of gas NOx Max N/A

(g) Dew point N/A

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. Nitrogen

(a) Type and capacity of nitrogen generation system Atlas Copco – Membrane

(b) Consumption Variable based on operational needs

(c) Liquid nitrogen storage N/A

(d) Nitrogen generator capacity 120 Nm3/hr

(e) Pressure tank 1 x 20m3 @ 10 bar 1 x 5m3 @ 10 bar

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. Gas Compressors

(a) Low duty (fuel gas compressor): No. and capacity Refer to section 10

(b) Low duty (fuel gas compressor): make Refer to section 10

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19. Electrical Generating

(a) Number of electric generators Main: x3 Auxiliary: N/A Emergency: x1

(b) Type of electric generators Main: STX-MAN 8L23/30DF ABB AMG 0500MK08 LAP Auxiliary: N/A Emergency: Volvo D13C2-B MG LSA M47.2 VS2

(c) Output of electric generators Main: 1254 kWe Auxiliary: N/A Emergency: 300 kWe

(d) Fuel type and quantity at full load of electric generators Main: 12.4 GJ/hr (Gas) Emergency: 48 litres/hr (MDO)

(e) Power required for discharge / de-ballasting at full rate 58 kWe

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20. Deck Machinery

(a) Winches No: 6 split drum winches Pull Type: Electro-hydraulic Brake Holding Force: 20.8 tons rendering load

(b) Wires Diameter – 28 mm LDBF – 34.62 tonnes TDBF – 43.3 tonnes SWL – 34.62 tonnes WLL – 20.8 tonnes

(c) No. Wires Forward 6

(d) No. Wires Aft 6

(e) Wires Fitted with Synthetic Tails 12 P/PE + PES LDBF – 45.2 tonnes TDBF – 56.5 tonnes SWL – 27.1 tonnes WLL – 22.6 tonnes

(f) Derricks, Cranes – Type and SWL Midship 1 x telescopic hose handling crane 25 m outreach and 4.5 MT SWL Bow 1 x jib hose handling crane 25 m outreach and 4.5 MT SWL

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21. Navigation and Communications

(a) Type and number of radar sets fitted 1 x X-BAND JMR-9296-6X 9 1 x S-BAND JMR-9298-S

(b) Is an approved GMDSS installed? (Type?) Yes 1 x Jotron EPIRB (Tron 60AIS) 2 x Radar Transponder (TRAN SART 20) 3 x Entel two-way radios (HT649)

(c) Is an additional SatCom system installed? (Type?) Yes, V-Sat, Saylor, Starlink

(d) Is Suez Canal Projector fitted? Yes

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22. Crew

(a) The Officers may be of the following Nationalities Any

(b) Number of Officers (Minimum) 6

(c) Number of Crew (Minimum) 7

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23. List of Compatible LNG Terminals:

---

| | |
|:---|:---|
| **Load Ports**  | **Discharge Ports**  |
| Tilbury LNG terminal (Canada) |  |
| Galveston Pier 37, Galveston, TX\* |  |
| Costa Norte, Colon, Panana |  |

---

\*Subject to dredging to allow for 1m of under keel clearance

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24. List of Visited LNG Terminals at the Date of Bunker Vessel Delivery:

---

| | |
|:---|:---|
| **Load Ports**  | **Discharge Ports**  |
| Tilbury LNG terminal (Canada) |  |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25. List of Compatible LNG-fueled Vessels

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Carnival Excel Class vessels

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Carnival Sphere Class vessels

------

**SHELLLNGTIME 2.1** 

**Time Charter Party for LNG Bunker Vessel** 

**Dated:** 

**PART I NEGOTIATED CHARTERING TERMS** *as attached* 

**PART II LNG FORM B - PARTICULARS OF VESSEL** *as attached* 

**PART III STANDARD CHARTERING TERMS (AS AMENDED)** 

**Appendix A Performance Calculations, Effective Boil-Off Systems Appendix B Indemnity Agreement for Boarding Vessel Appendix C Safety and Environmental Monthly Reporting Template** 

------

**SHELLLNGTIME 2.1** 

**PART III STANDARD CHARTERING TERMS** 

**INDEX** 

&nbsp;&nbsp;&nbsp;&nbsp;**1.** **DESCRIPTION AND CONDITION OF VESSEL ................................................................... 4** 

&nbsp;&nbsp;&nbsp;&nbsp;**2.** **DUTY TO MAINTAIN ........................................................................................................ 6** 

&nbsp;&nbsp;&nbsp;&nbsp;**3.** **SHIPBOARD PERSONNEL ................................................................................................. 7** 

&nbsp;&nbsp;&nbsp;&nbsp;**4.** **SAFETY MANAGEMENT ................................................................................................... 8** 

&nbsp;&nbsp;&nbsp;&nbsp;**5.** **DRUGS AND ALCOHOL .................................................................................................. 10** 

&nbsp;&nbsp;&nbsp;&nbsp;**6.** **INCIDENT REPORTING................................................................................................... 10** 

&nbsp;&nbsp;&nbsp;&nbsp;**7.** **VESSEL INSPECTION ...................................................................................................... 10** 

&nbsp;&nbsp;&nbsp;&nbsp;**8.** **NEW-BUILD CLAUSE ..................................................................................................... 11** 

&nbsp;&nbsp;&nbsp;&nbsp;**9.** **SAFE PLACES AND COMPATIBILITY ............................................................................. 11** 

&nbsp;&nbsp;&nbsp;&nbsp;**10.** **GEOGRAPHICAL TRADING LIMITS ............................................................................... 13** 

&nbsp;&nbsp;&nbsp;&nbsp;**11.** **INSTRUCTIONS AND LOGS ............................................................................................. 14** 

&nbsp;&nbsp;&nbsp;&nbsp;**12.** **WEATHER ROUTEING ................................................................................................... 15** 

&nbsp;&nbsp;&nbsp;&nbsp;**13.** **ICE .................................................................................................................................. 15** 

&nbsp;&nbsp;&nbsp;&nbsp;**14.** **SHIP TO SHIP TRANSFERS (OTHER THAN BUNKERING OPERATIONS) ....................... 16** 

&nbsp;&nbsp;&nbsp;&nbsp;**15.** **TRADING TO EUROPE EU: ADVANCE CARGO DECLARATION ................................... 17** 

&nbsp;&nbsp;&nbsp;&nbsp;**16.** **TRADING TO THE UNITED STATES OF AMERICA OR CANADA: CUSTOMS ................. 18** 

&nbsp;&nbsp;&nbsp;&nbsp;**17.** **TRADING TO THE UNITED STATES OF AMERICA: COMPLIANCE ............................... 19** 

&nbsp;&nbsp;&nbsp;&nbsp;**18.** **TRADING TO JAPAN ....................................................................................................... 21** 

&nbsp;&nbsp;&nbsp;&nbsp;**19.** **TERMINAL RULES AND CONDITIONS OF USE .............................................................. 21** 

&nbsp;&nbsp;&nbsp;&nbsp;**20.** **SPACE AVAILABLE, CARGO CAPACITY, CONTAMINATION ........................................ 21** 

&nbsp;&nbsp;&nbsp;&nbsp;**21.** **GRADE OF BUNKERS ..................................................................................................... 22** 

&nbsp;&nbsp;&nbsp;&nbsp;**22.** **QUANTITY DETERMINATION OF BUNKERS AND HEEL ............................................... 24** 

&nbsp;&nbsp;&nbsp;&nbsp;**23.** **GAS-UP, COOL-DOWN, LNG RETENTION ................................................................... 24** 

&nbsp;&nbsp;&nbsp;&nbsp;**24.** **BOIL-OFF AND HEEL MANAGEMENT ........................................................................... 26** 

&nbsp;&nbsp;&nbsp;&nbsp;**25.** **CARGO AND HEEL MEASUREMENT .............................................................................. 27** 

&nbsp;&nbsp;&nbsp;&nbsp;**26.** **CARGO TRANSFER INSPECTION AND SYSTEM CALIBRATION .................................... 28** 

&nbsp;&nbsp;&nbsp;&nbsp;**27.** **VAPOUR PRESSURE, CARGO TEMPERATURE .............................................................. 28** 

&nbsp;&nbsp;&nbsp;&nbsp;**28.** **CARGO RECEIVING AND DISCHARGING RATES .......................................................... 30** 

&nbsp;&nbsp;&nbsp;&nbsp;**29.** **BALLAST WATER TREATMENT .................................................................................... 30** 

&nbsp;&nbsp;&nbsp;&nbsp;**30.** **AGENCY .......................................................................................................................... 31** 

&nbsp;&nbsp;&nbsp;&nbsp;**31.** **PILOTS AND TUGS .......................................................................................................... 31** 

&nbsp;&nbsp;&nbsp;&nbsp;**32.** **MOORING LINES ............................................................................................................ 31** 

&nbsp;&nbsp;&nbsp;&nbsp;**33.** **HULL FOULING .............................................................................................................. 32** 

------

&nbsp;&nbsp;&nbsp;&nbsp;**34.** **OFF-HIRE ....................................................................................................................... 33** 

&nbsp;&nbsp;&nbsp;&nbsp;**35.** **DRYDOCK ....................................................................................................................... 37** 

&nbsp;&nbsp;&nbsp;&nbsp;**36.** **SUB-LETTING, ASSIGNMENT, NOVATION .................................................................... 37** 

&nbsp;&nbsp;&nbsp;&nbsp;**37.** **HIRE PAYMENT AND DEDUCTIONS ............................................................................... 37** 

&nbsp;&nbsp;&nbsp;&nbsp;**38.** **FINAL VOYAGE .............................................................................................................. 39** 

&nbsp;&nbsp;&nbsp;&nbsp;**39.** **TAXES AND GROSS-UP .................................................................................................. 40** 

&nbsp;&nbsp;&nbsp;&nbsp;**40.** **LIEN ................................................................................................................................ 41** 

&nbsp;&nbsp;&nbsp;&nbsp;**41.** **OWNERS TO PROVIDE ................................................................................................... 41** 

&nbsp;&nbsp;&nbsp;&nbsp;**42.** **CHARTERERS TO PROVIDE ........................................................................................... 41** 

&nbsp;&nbsp;&nbsp;&nbsp;**43.** **SUPERNUMERARIES ....................................................................................................... 42** 

&nbsp;&nbsp;&nbsp;&nbsp;**44.** **INSURANCE AND ITOPF 42** 

&nbsp;&nbsp;&nbsp;&nbsp;**45.** **ISPS CODE AND UNITED STATES MTSA 2002 ............................................................ 43** 

&nbsp;&nbsp;&nbsp;&nbsp;**46.** **BILLS OF LADING .......................................................................................................... 44** 

&nbsp;&nbsp;&nbsp;&nbsp;**47.** **CLAUSE PARAMOUNT .................................................................................................... 46** 

&nbsp;&nbsp;&nbsp;&nbsp;**48.** **ELECTRONIC BILLS OF LADING ................................................................................... 47** 

&nbsp;&nbsp;&nbsp;&nbsp;**49.** **EXCEPTIONS................................................................................................................... 47** 

&nbsp;&nbsp;&nbsp;&nbsp;**50.** **EXPORT RESTRICTIONS ................................................................................................ 48** 

&nbsp;&nbsp;&nbsp;&nbsp;**51.** **TRADE CONTROLS ......................................................................................................... 48** 

&nbsp;&nbsp;&nbsp;&nbsp;**52.** **REQUISITION .................................................................................................................. 49** 

&nbsp;&nbsp;&nbsp;&nbsp;**53.** **OUTBREAK OF WAR ...................................................................................................... 49** 

&nbsp;&nbsp;&nbsp;&nbsp;**54.** **WAR RISKS .................................................................................................................... 50** 

&nbsp;&nbsp;&nbsp;&nbsp;**55.** **ADDITIONAL WAR EXPENSES ....................................................................................... 51** 

&nbsp;&nbsp;&nbsp;&nbsp;**56.** **PIRACY ........................................................................................................................... 51** 

&nbsp;&nbsp;&nbsp;&nbsp;**57.** **LOSS OF VESSEL ............................................................................................................ 53** 

&nbsp;&nbsp;&nbsp;&nbsp;**58.** **SALVAGE ........................................................................................................................ 53** 

&nbsp;&nbsp;&nbsp;&nbsp;**59.** **WAITING ........................................................................................................................ 54** 

&nbsp;&nbsp;&nbsp;&nbsp;**60.** **BOTH TO BLAME COLLISION ........................................................................................ 54** 

&nbsp;&nbsp;&nbsp;&nbsp;**61.** **NEW JASON CLAUSE ..................................................................................................... 54** 

&nbsp;&nbsp;&nbsp;&nbsp;**62.** **ANTI-BRIBERY AND CORRUPTION ............................................................................... 55** 

&nbsp;&nbsp;&nbsp;&nbsp;**63.** **BUSINESS PRINCIPLES ................................................................................................... 56** 

&nbsp;&nbsp;&nbsp;&nbsp;**64.** **LAW AND LITIGATION ................................................................................................... 56** 

&nbsp;&nbsp;&nbsp;&nbsp;**65.** **NO PARTNERSHIP OR AGENCY ..................................................................................... 57** 

&nbsp;&nbsp;&nbsp;&nbsp;**66.** **MITIGATION................................................................................................................... 57** 

&nbsp;&nbsp;&nbsp;&nbsp;**67.** **CONSTRUCTION ............................................................................................................. 57** 

&nbsp;&nbsp;&nbsp;&nbsp;**68.** **NOTICES ......................................................................................................................... 58** 

&nbsp;&nbsp;&nbsp;&nbsp;**69.** **CONFIDENTIALITY......................................................................................................... 58** 

&nbsp;&nbsp;&nbsp;&nbsp;**70.** **HIMALAYA CLAUSE / RIGHTS OF THIRD PARTIES ...................................................... 59** 

------

&nbsp;&nbsp;&nbsp;&nbsp;**71.** **TIME-BAR ...................................................................................................................... 59** 

&nbsp;&nbsp;&nbsp;&nbsp;**72.** **EXCLUSION OF CONSEQUENTIAL LOSS ....................................................................... 60** 

&nbsp;&nbsp;&nbsp;&nbsp;**73.** **EMISSIONS ...................................................................................................................... 60** 

&nbsp;&nbsp;&nbsp;&nbsp;**74.** **KYC (KNOW YOUR CUSTOMER).................................................................................. 60** 

&nbsp;&nbsp;&nbsp;&nbsp;**75.** **DEFINITIONS .................................................................................................................. 60** 

**APPENDIX A. PERFORMANCE CALCULATIONS ............................................................. 68**

**APPENDIX B. INDEMNITY AGREEMENT FOR BOARDING VESSEL ............................... 77**

**APPENDIX C. SAFETY AND ENVIRONMENTAL REPORTING TEMPLATE ...................... 78**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.** **Description and Condition of Vessel** 

At the date of Delivery under this charter and throughout the charter period the Owners shall ensure that the Vessel shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) be in every way equipped and fit to carry, handle and measure Liquefied Natural Gas ("LNG");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) subject to the terms of this charter (including without limitation Clause 9 (Safe Places and Compatibility), be in every way equipped and fit to (i) load LNG as cargo at a Primary Terminal, (ii) transfer LNG for use as marine fuel to a Receiving Vessel's fuel tank via a dedicated transfer system fitted permanently on the Vessel, in each case within the Place of Operation (the services in (i) and (ii), together, "Bunkering Operations"), and (iii) transfer LNG for cargo shipment and/or cargo repositioning operations to a Primary Terminal within the Place of Operation ("Transport of Cargo");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) be classed by a Classification Society, which is a member of the International Association of Classification Societies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) be tight, staunch, strong, in good order and condition, and in every way fit for the service with machinery, boilers, engines, hull, cargo systems, cargo tanks, cargo handling equipment, Emergency Shutdown System ("ESD"), inert gas generator, hull stress calculator, radar, computers and computer systems, and other equipment in a good and efficient state, and operating according to the relevant guidelines of SIGTTO and OCIMF;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) have all cargo measuring equipment and instrumentation, and gas flowmeters to engines, in working order and calibrated and certified in accordance with a recognised calibration company and, if Charterers require, verified by the relevant inspectorate at any load port;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) be equipped with such modern and efficient communication systems including email capability, VHF radiotelephone, satellite communications, radio teletypewriter, and such other radio telecommunications equipment and data collection management systems as may be required by this charter, the Vessel's Classification Society, the country of registry, or international and port state regulations, and which Owners shall maintain in good working order;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) if fifteen (15) years old or over, or if she becomes fifteen (15) years old or older during the charter period, be subject to an LNG Condition Assessment Programme ("CAP") maintained by Owners, of not less than rating 2, covering hull structure, cargo containment and all machinery and electrical systems which are essential for the propulsion, navigation, cargo operation and safety of the Vessel and crew. The CAP shall be issued by a Classification Society which is a member of the International Association of Classification Societies and shall be renewed at intervals of not more than three (3) years;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) have tanks, valves and pipelines in a liquid and gas-tight condition;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) be in every way fitted for burning, in accordance with the grades specified in Clause 21 (Grade of Bunkers), Liquid Fuels combined in any proportion (within the Vessel's technical capabilities) with Boil-Off for both main propulsion and auxiliary machinery as ordered by Charterers (except where safety or relevant legislation requires otherwise, or for transiting and manoeuvring in restricted waters where dual fuel mode only is permitted), and for storing fuels of such grades in segregated storage tanks;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) in all cases be able to maintain continuous safe operation of all equipment during switch-over between different types of fuel in the boilers or engines;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) have insulation spaces prepared as per the Vessel's containment system design parameters;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) have on board all certificates, documents and equipment required from time to time by any applicable law or regulation to enable performance of the charter service without delay;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) comply with all applicable conventions, laws, rules and regulations of any international, national, state or local government entity having jurisdiction, and shall not be prevented for any reason whatsoever from trading to and from the ports and places permitted in Clause 10 (Geographical Trading Limits), subject always to Clause 10(e) and the constraints of Clause 51 (Trade Controls) of this charter;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) comply with the regulations in force so as to enable the Vessel, size permitting, to pass through the Suez Canal and the Panama Canal by day and by night without delay;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) comply with the description in Part I and Part II (LNG Form B) of this charter as attached;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) not have her ownership structure, flag state, registry, Classification Society and technical management company ("Technical Managers") changed during the period of the charter, save with Charterers' prior consent (not to be unreasonably withheld). Notwithstanding the foregoing, Owners may, upon delivering at least five (5) days' prior written notice to the Charterers: transfer title to the Vessel to an Affiliate in conjunction with an assignment of this charter to that Affiliate in accordance with Clause 36; and (2) elect at any time to self-perform technical management instead of having a third party Technical Manager do so.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.** **Duty to Maintain** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Throughout the charter service Owners shall, whenever the passage of time, wear and tear, or any event, whether or not coming within Clause 49 (Exceptions), requires steps to be taken to maintain or restore the conditions stipulated in Clause 1 (Description and Condition of Vessel) and Clause 3(a) (Shipboard Personnel), exercise due diligence so as to maintain or restore the Vessel and shipboard personnel to the appropriate standard as required under those clauses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If at any time whilst on-hire under this charter the Vessel fails to comply with the requirements of Clause 1 (Description and Condition of Vessel) or Clause 3(a) (Shipboard Personnel) then hire shall be reduced to the extent necessary to indemnify Charterers for such failure. To the extent that such failure affects the time taken by the Vessel to perform any services under this charter, hire shall be reduced by an amount equal to the value, calculated at the rate of hire, of the time so lost.

Any reduction of hire under this sub-clause (b) shall be without prejudice to any other remedy available to Charterers, but where such reduction of hire is in respect of time lost, such time shall be excluded from any calculation under Appendix A or (Performance Calculations).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If Owners are in breach of their obligations under sub-clause (a) above then without prejudice to any other rights under this charter, Charterers may so notify Owners in writing and if, after the expiry of thirty (30) days following the receipt by Owners of any such notice, Owners have failed to demonstrate to Charterers' reasonable satisfaction that they have exercised the due diligence required in sub-clause (a) above, then the Vessel shall be off-hire, and no further hire payments shall be due until Owners have demonstrated that they are exercising the required due diligence Any service given or distance made good by the Vessel whilst off-hire shall be taken into account in assessing the amount to be deducted from hire. Where this charter is for a single voyage or where no more than two (2) loadings are envisaged, then the terms of this sub-clause (c) shall apply immediately upon receipt of notice by Owners from Charterers, and without any notice period thereafter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Owners shall advise Charterers immediately in writing should there be a substantial finding or a failure of an inspection of the Vessel. This shall apply where such inspection is required for the purposes of calling at a port or terminal, and is carried out by any competent party, including a governmental or port state authority, a terminal or a major charterer of similar tonnage. Owners shall at the same time inform Charterers of their proposed course of action to remedy the defects which gave rise to the substantial finding or caused the Vessel to fail the inspection.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) If, with regard to sub-clause (d) above, in Charterers reasonably held view either:

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a failure of an inspection; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a substantive finding of an inspection or report,

prevents normal commercial operations or, in Charterers' reasonable opinion, will have a detrimental impact on the operation or tradability of the Vessel, then Charterers shall have the option to place the Vessel off-hire from the date and time that the Vessel fails such inspection, or becomes commercially inoperable, and the Vessel shall remain off-hire until the date and time that the Vessel passes a re-inspection by the same organisation (which shall not be unduly delayed), becomes commercially operable, or in Charterers' reasonable opinion the findings of the inspection report cease to have a detrimental impact on the operation or tradability of the Vessel, whichever is the earliest. In such case the Vessel shall only come back onhire at a position no less favourable to Charterers than at which the Vessel went off-hire.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Furthermore, at any time while the Vessel is off-hire under this Clause 2, or subject to a reduction of hire under sub-clause (b), Charterers shall have the option to terminate the charter by giving notice in writing, with effect from the date on which such notice of termination is received by Owners, or from any later date stated in such notice. Upon such termination Owners shall reimburse Charterers with any hire paid in advance and not earned, the cost of bunkers or bunker reconciliation cost (as the case may be), and the value of any Heel on board the Vessel, valued respectively at the Fuel Price and the LNG Price, and any other amount for which Owners are, or are estimated by Charterers to be, liable to Charterers under the terms of the charter. This sub-clause (f) is without prejudice to any rights or obligations either Party may have under this charter or otherwise, including, without limitation, Charterers' rights under Clause 34 (Off-Hire).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) If at any time during the charter period the Vessel becomes unacceptable to any Primary Terminal operator, governmental or port state, flag or similar, for a reason that would permit Charterers to terminate the charter under subclause (f) above, Charterers shall have the right to terminate the charter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.** **Shipboard Personnel** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) At the date of Delivery under this charter and throughout the charter period, the Owners shall ensure that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Vessel shall have a full and efficient complement of master, officers and crew for a vessel of her size, who shall in any event be not less than the number required by the laws of the Vessel's flag state, and who shall be trained to operate the Vessel and her equipment safely, competently, efficiently and in accordance with standards of a first-class Vessel Operator of LNG bunker vessels engaged in international trade;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) all shipboard personnel shall hold valid certificates of competence in accordance with the requirements of the law of the Vessel's flag state;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) all shipboard personnel shall be trained in accordance with the relevant provisions of the International Convention on Standards of Training, Certification and Watch-keeping for Seafarers 1995, as amended by the Manila Amendments 2010, SIGTTO LNG Shipping Suggested Competency Standards 2008, or any additions, modifications or subsequent versions of these Standards;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) there shall be on board sufficient personnel with a good working knowledge of the English language to enable cargo operations at loading and discharging places to be carried out safely and efficiently, and to enable communications between the Vessel and those loading the Vessel, or accepting discharge from the Vessel, to be carried out quickly and efficiently;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) the terms of employment of the Vessel's staff and crew shall always remain acceptable to the International Transport Workers' Federation and the Vessel will, if required, at all times carry a Blue Card or equivalent; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) the nationality of the Vessel's officers as given in Part II (LNG Form B) will not change without Charterers' prior agreement, which shall not be unreasonably withheld.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Owners guarantee that throughout the charter service the master shall, with the Vessel's officers and crew, unless otherwise ordered by Charterers:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) prosecute all voyages with the utmost despatch;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) render all customary assistance; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) load and discharge cargo as rapidly as possible when required by Charterers or their agents to do so, by night or by day, and always in accordance with the laws of the place of loading or discharging, as the case may be, and in each case in accordance with any applicable laws of the flag state and any applicable laws limiting the hours of work of the master, officers and crew on board the Vessel, and always subject to the master's discretion as to safety.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Owners shall at all times have responsibility for the proper stowage and management of the cargo and shall keep a strict account of all cargo loaded, Boil-Off, commencement and termination of forced cargo vaporisation, and cargo discharged in accordance with the terms of this charter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If Charterers make a complaint in respect of the conduct of the master or any of the officers or crew, Owners shall immediately investigate the complaint. If the complaint proves to be well founded Owners shall, without delay, take appropriate action, which may, depending on the severity of the issue and findings of the investigation, include making a change in the relevant onboard appointments. Owners shall in any event communicate the result of their investigations to Charterers as soon as possible.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.** **Safety Management** 

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) It is a condition of this charter that Owners will, throughout the charter, service operate:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a safety management system certified to comply with the International Safety Management Code ("ISM Code") for the Safe Operation of Ships and for Pollution Prevention;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a documented safe working procedures system (including procedures for the identification and mitigation of risks);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) a documented environmental management system to protect environmental resources by applying best available techniques to minimise or, where possible, eliminate any direct or indirect impact on the environment from operations; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) a documented accident and incident reporting system compliant with flag state requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Owners shall maintain Health, Safety, Security, and Environmental ("HSSE") records sufficient to demonstrate compliance with the requirements of their HSSE system and of this charter. Charterers reserve the right to confirm compliance with HSSE requirements by audit at Owners' offices.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Owners shall have a valid operational SIRE report at the time of Delivery and Owners shall arrange at their own expense for a SIRE inspection to be carried out at intervals of no more than six months (independently of any inspection carried out by Charterers). Charterers shall reasonably co-operate with Owners to facilitate the scheduling of SIRE inspections.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Owners shall undertake a self-assessment review according to the OCIMF Tanker Management and Self-Assessment Programme (TMSA), and the latest revisions thereto, on not less than an annual basis, including when reasonably requested to do so by Charterers, or where changes or updates are required by reason of changes or amendments to the Vessel or the TMSA requirements. Such TMSA will, on a continuous basis, accurately reflect the status of the Technical Managers' safety and management systems.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Charterers shall have the right, no more frequently than once each year, to visit Owners' or Technical Managers' offices to undertake a review, the aim of which is to ensure these provisions are being met. However, where Charterers have grounds to consider such review findings as inconclusive or unsatisfactory, they shall in the first instance notify this to Owners in writing. Owners shall within seven (7) days respond to Charterers' notice with a full explanation. If, in the reasonable opinion of Charterers, Owners' explanation does not remedy the inconclusive or unsatisfactory review findings, Charterers may undertake a further or intermediate review at any time to confirm Owners' continuing compliance with these provisions and/or verify that appropriate remedial action has been taken.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Where the period of this charter is for six (6) months or more Owners shall submit to Charterers a monthly written report detailing all accidents and incidents and environmental reporting requirements, in accordance with Appendix C (Safety and Environmental Monthly Reporting Template), appended hereto.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The Vessel shall be capable of undertaking all operations without venting any Boil-Off to atmosphere. The Vessel shall not vent cargo except where there is an immediate safety issue and venting is the most prudent course of action. Any venting of the cargo shall immediately be reported to Charterers in accordance with Clause 6 (Incident Reporting), with a full explanation as to why the venting operation was required, an estimate of duration of venting, and quantity of Boil-Off vented. Owners are responsible for reporting any venting of Boil-Off to the relevant authorities. Owners shall pay Charterers at the LNG Price for any Boil-Off lost by venting as a result of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) breach of this charter by Owners' Group; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any fault or cause attributable to Owners' Group (including but not limited to breakdown or inefficiency of the Vessel).

Payment for Boil-Off so lost shall be made irrespective of the provisions in Performance Appendix A relating to Boil-Off claims or Excluded Periods, but not to the extent that Charterers can double count Boil-Off lost.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.** **Drugs and Alcohol** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Owners warrant that they have in force an active policy which meets or exceeds the standards set out in the "Guidelines for the Control of Drugs and Alcohol On Board Ship" as published by OCIMF June 2020 (or any subsequent modification, version, or variation of these guidelines) and that this policy will remain in force throughout the charter period. Owners will exercise due diligence to ensure the policy is complied with by the Vessel's crew.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Persons who test positive under the aforementioned Guidelines, or refuse to be tested, or are unfit for duty (being apparently impaired because of drug or alcohol use), shall be removed promptly from the Vessel for the remainder of the charter period. Further, Charterers may apply the terms of Clause 34 (Off-Hire) where there is any net loss of time arising out of or in connection with any failure to comply with this Clause.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.** **Incident Reporting** 

Owners shall immediately report to Charterers, as per the details advised in Part I of this charter (Pollution and Emergency Response), and in accordance with Clause 4(a)(iv) (Safety Management), any event or circumstance that has resulted in personal injury, serious or otherwise, or fatality, any incident of Environmental Damage, any unforeseen activity or event which could have led to Environmental Damage, a spillage of oil or cargo on deck or into water, release or venting of hydrocarbons, breaches or potential breaches of environmental regulations, or complaint from local groups or organisations, including from enforcement agencies or individuals.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.** **Vessel Inspection** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Charterers shall have the right to undertake an inspection of the Vessel at any time during the charter period as they consider necessary. This right may be exercised as often and at such intervals as Charterers in their absolute discretion may determine and whether the Vessel is in port or on passage.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Owners shall afford all necessary co-operation and accommodation on board and any inspection carried out by Charterers shall be made without interference with, or hindrance to, the Vessel's safe and efficient operation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Neither the exercise nor the non-exercise, nor anything done or not done in the exercise or non-exercise by Charterers of such right shall in any way reduce the master's or Owners' authority over, or responsibility to Charterers or third parties, for the Vessel and every aspect of her operation, nor increase Charterers' responsibilities to Owners or third parties for the same.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Charterers shall not be liable for any act, neglect or default by themselves, their servants or agents in the exercise or non-exercise of their right of inspection.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Any cost incurred by such inspection shall be for Charterers' account provided always that, so long as Charterers have given Owners sufficient advance notice of an inspection to permit Owners a reasonable amount of time to identify and disclose anticipated inspection-related costs, such costs have been disclosed to, and approved by, Charterers in advance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Any inspection shall be limited to a maximum of two (2) persons, which may include a representative of Charterers' customer, and any overnight stays shall be subject to the terms as set out in Clause 43 (Supernumeraries).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Owners shall ensure that all visitors to the Vessel (including their own subcontractors) shall receive a briefing and information on the parts of the safety management system relevant to their visit, and shall comply with Owners' HSSE policies and procedures during the visit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Charterers and their agents and invitees shall sign an "Indemnity Agreement for Boarding Vessel" in the format shown in Appendix B (Indemnity Agreement for Boarding Vessel), in order to obtain permission to board the Vessel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.** **New-Build Clause** 

Not Used.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.** **Safe Places and Compatibility** 

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Charterers shall use due diligence to ensure that the Vessel is only employed between and at Safe Places where she can safely lie, always afloat. Subject to the foregoing, Safe Places shall include ports, berths, jetties, wharves, docks, anchorages, alongside vessels, Floating Storage Units ("FSU"), Floating Storage and Regasification Units ("FSRU"), Floating LNG Liquefaction Units ("FLNG") barges, submarine lines, lighters, bunker barges, and other safe locations, including locations at sea. Notwithstanding anything contained in this or any other clause of this charter, Charterers do not warrant the safety of any place to which they order the Vessel and shall be under no liability in respect thereof except for loss or damage caused by their failure to exercise due diligence as aforesaid. Subject to the above and the other terms of this charter, the Vessel shall be loaded and shall discharge at any place as Charterers may direct.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Owners warrant that the Vessel is, and subject to the terms of this charter will remain throughout the charter, compatible with: (1) the LNG terminals listed as being compatible in Part II (LNG Form B) table 23 "List of Compatible LNG Terminals" (each, a "Primary Terminal") and will meet all Primary Terminal requirements for berthing, unberthing, and loading and discharging cargo; and (2) the LNG-fuelled vessels listed as being compatible in Part II (LNG Form B) table 25 "List of Compatible LNGfuelled Vessels" for Bunkering Operations (each, a "Receiving Vessel"), and that the Vessel has all the requisite equipment to do so, without any modifications, provided in each case that the design and configuration of the Primary Terminals and/or Receiving Vessels so listed do not materially alter following the date of this charter so as to affect the Vessel's ability to berth, unberth, load or discharge cargo, or to perform Transport of Cargo and/or Bunkering Operations, as the case may be.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In the event that a modification to the Vessel becomes necessary as a result of changes in international regulations or standards, or is required by the Vessel's Classification Society or flag state, the cost of such modification shall be for Owners' account, including any additional Ship-Shore Compatibility Studies (SSCS), and the Vessel shall be off-hire for the time required to effect such modifications, unless this can be achieved without affecting the performance of the Vessel under this charter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Where Charterers wish to order the Vessel to a terminal or vessel not listed as compatible with the Bunker Vessel in Part II (LNG Form B), then Owners shall promptly take the steps required to ascertain whether the Vessel is compatible. This shall include acting expeditiously in the exchange of information with the terminal or vessel in question and undertaking mooring, or any other studies as required. Charterers shall support Owners where required in communicating with terminal or vessel operators with a view to expediting this process. If Owners ascertain that the proposed terminal or vessel is compatible with the Vessel, it will be added to the "List of Compatible LNG Terminals" or "List of Compatible LNG-fuelled Vessels" in Part II (LNG Form B), as applicable. Where Owners ascertain that modifications would be required to ensure the compatibility of the Vessel, they shall undertake such modifications if directed by Charterers to do so, and the reasonable cost and time of the required modifications, including any additional Ship-Shore/Ship-Ship Compatibility Studies ("SSCS"), shall, subject to Charterers' approval, be for Charterers' account.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Following the completion of any modifications required pursuant to subclause (d) above, the applicable terminal or vessel will be added to the "List of Compatible LNG Terminals" or "List of Compatible LNG-fuelled Vessels" in Part II (LNG Form B), as applicable. For the avoidance of doubt, (i) costs of all SSCS as a result of an order from Charterers' pursuant to this Clause 9 shall be for Charterers' account and (ii) Charterers shall give notice to Owners sufficiently in advance (where possible) of intended Bunkering Operations to allow for SSCS and provide all required documentation and information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.** **Geographical Trading Limits; Governmental Authorizations** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Owners agree to let and Charterers agree to hire the Vessel for the purpose of carrying out international Bunkering Operations and/or international Transport of Cargo in the Place of Operation, subject to the limits of the current International Navigating Conditions Area Limits, and any subsequent amendments thereof. For the avoidance of doubt, Charterers shall not be entitled to order the Bunker Vessel to engage in domestic carriage or cabotage operations within the Place of Operation ("Cabotage Services") unless the Parties have first agreed the costs (for Charterers in accordance with sub-clause (c) below) of, and responsibility for compliance with, any additional legal or regulatory requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding the foregoing, and subject to Clause 51 (Trade Controls) and Clause 54 (War Risks), Charterers may order the Vessel beyond the limits of the International Navigating Conditions Area Limits provided that Owners consent thereto (such consent not to be unreasonably withheld, conditioned or delayed), and that Charterers shall pay for any additional insurance premium (net of any rebates due to Owners and provided such premium is in line with market rates) required by the Vessel's underwriters as a consequence of such order.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Charterers acknowledge that the Rate of Hire is based on the crew complement, licensing requirements and operating costs for the international trade of the Vessel under the Panama flag. If, during the charter period, the Vessel requires any flag changes, crewing changes or additional licences, permits or other governmental approvals due to Charterers use or intended use of the Vessel, and/or if Owners incur any other reasonable costs to meet additional legal or regulatory requirements in any place where Charterers order the Vessel, including without limitation in relation to any requested Cabotage Services, all documented costs directly related to any such changes or additional requirements will be for Charterers' account, notwithstanding anything else in this charter. Owners and Charterers will work together to minimize any such costs, and Owners shall, to the extent possible, notify Charterers of any such costs which are material in advance.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Subject subclause (e) below, at all times during this charter Owners warrant that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Vessel shall be in all respects eligible under all applicable conventions, laws and regulations for trading to and from the ports and places permitted under this Clause 10, and shall not be prevented from doing so for any reason whatsoever; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the Vessel shall comply with all applicable conventions, laws, rules and regulations of any international, national, state or local government entity having jurisdiction and shall have on board for inspection by the authorities all necessary certificates, records, letters and other documents evidencing such compliance including, but not limited to, certificates evidencing compliance with international standards, SOLAS 1974, as amended, and MARPOL 1973/1978.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Notwithstanding anything else in this charter, Owners are responsible only for obtaining and maintaining any licences, permits or other governmental authorizations for the Vessel which are either (i) required by the laws and regulations of the Vessel's flag state (including those required to ensure the Vessel is fit for its intended use under this charter) or (ii) expressly identified in this charter by name and issuing authority (collectively, "Owners Authorizations"). Charterers are responsible for obtaining and maintaining any bunkering licences and any other licences, permits or other governmental authorizations for the Vessel that may be required by the port authorities or other governmental authorities where Charterers order the Vessel, other than the Owner Authorizations (collectively, "Charterers Authorizations"). Owners shall provide all reasonable assistance requested by Charterers for the purpose of obtaining and maintaining any applicable Charterer Authorizations, at Charterers' cost.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11.** **Instructions and Logs** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Charterers shall from time to time give the master all requisite instructions and sailing directions, confirmed in writing. The master shall keep a full and correct log of the Voyage or Voyages (including properly completed logs for transport of cargo and delivery of bunkers), which Charterers or their agents may inspect as required. The master shall, when required, furnish Charterers or their agents with a true copy of such log and with properly completed loading and discharging port sheets, bunker delivery receipts/notes, and voyage reports for each Voyage and other returns as Charterers may require. The Vessel will be fitted with a computer capable of maintaining and transmitting logs and other shipboard documents (including attachments) by email, at Owners' expense, as required by Charterers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Owners may request that they are copied in on all orders and messages to the master.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The master shall provide any ETA notices, at any given intervals, as required by Charterers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) A controlled copy of Charterers' instructions will be emailed to or otherwise placed on board the Vessel. Subject to the other terms of this charter, the standing instructions in this document shall be followed by the master. If the master or Vessel cannot comply with such instructions, then the master or Owners shall, as soon as reasonably possible, notify Charterers. In the event of any conflict between Charterers' instructions and this charter, this charter shall prevail.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Subject to Clause 3(b) (Shipboard Personnel) and Clause 10 (Geographical Trading Limits), and except in the particular case of dangers from piracy, where the terms of Clause 56 (Piracy) shall apply, Owners undertake to instruct the Vessel's master to comply with Charterers' policy regarding routing as may be communicated in writing. The master may follow alternative routings provided that, if in his opinion, adherence to Charterers' policy would endanger the Vessel under the given circumstances prevailing on any particular Voyage. In any event the master shall always keep Charterers informed of his intended routing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Save where the Vessel is deviating from Charterers' voyage instructions as a result of the master acting reasonably to ensure the safety of the Vessel and its crew, or to comply with subclause (g) below, or where permitted by any other provisions in this charter, Owners shall be responsible for any time, cost, delay or loss whatsoever and arising howsoever from the Vessel deviating from Charterers' voyage instructions. If a discrepancy arises between Charterers' voyage instructions and instructions from a Primary Terminal, Receiving Vessel or pilot having authority, the master shall notify Charterers as soon as reasonably possible and in any event before loading or discharging as the case may be, to obtain further instructions which Charterers shall provide as soon as reasonably possible. Owners shall not be responsible for any time lost awaiting response from Charterers. Owners shall be responsible for any resultant or additional expenses arising from non-compliance with this Clause 11.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Owners shall instruct the master to observe regulations and recommendations as to traffic separation and routing as issued from time to time by responsible organisations or regulating authorities including, but not limited to, the IMO, the UK Chamber of Shipping (or equivalent), or as promulgated by the state of the flag of the Vessel or the state from which management of the Vessel is exercised.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Owners shall have fitted a comprehensive data collection management system (at their own expense) acceptable to Charterers, and Charterers shall have access, from Delivery onwards, to all the data produced by such system.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.** **Weather Routing** 

------

Charterers may supply an independent weather bureau's advice to the master for Voyages as specified by Charterers during the charter period. The master shall comply with the advice (subject to his own judgment as to the safe navigation of the Vessel) and reporting procedures of the routing service selected by Charterers. Evidence of weather conditions shall be taken from the Vessel's logs and the independent weather bureau's reports. In the event of a discrepancy between the deck logs and the independent weather bureau's reports, the independent weather bureau's data shall prevail.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**13.** **Ice** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Vessel shall not be sent to icebound waters without Owners' prior consent, acting reasonably, and shall not be, or become, obliged to force ice or to follow ice-breakers. Irrespective of Owners' approval, if the port at which the Vessel is ordered by Charterers is or will, prior to the anticipated port call, become inaccessible owing to ice and the master has notified Charterers, then Charterers shall be bound to order the Vessel to an alternative port that is free from ice and at which the Vessel can load or discharge the cargo.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If, on account of ice, the master reasonably considers it dangerous for the Vessel to enter or remain at any place for fear of the Vessel being frozen in or damaged, and the master so advises Charterers, Charterers shall provide the master with orders to proceed to an alternative port that is free from ice. If no orders are received by the master from Charterers prior to the time when the master must deviate to avoid ice, the master shall proceed to the nearest safe ice-free anchorage to await further orders from Charterers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Any delay or deviation caused by or resulting from ice shall be for Charterers' account and the Vessel shall remain on-hire.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Any additional premiums or calls required by the Vessel's underwriters due to the Vessel entering or remaining in any icebound port or area shall be for Charterers' account.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**14.** **Ship to Ship Transfers (Other than Bunkering Operations)** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except for subclause (c) below, this Clause 14 only applies to LNG cargo transfers that do not fall within the Bunkering Operations contemplated by this charter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Charterers may request Owners to perform a transhipment of the cargo or any part of it, including transfers of cargo for lightering purposes, for loading and discharging LNG alongside an FSU, FSRU, or an FLNG, or offshore, or while the Vessel is at sea. Charterers shall pay for reasonable additional operating costs, including any additional insurance premia, relating to any such transhipment subject to them being approved before being incurred. Owners shall only be required to perform such an operation where:

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the proposed vessel, terminal, or facility, to or from which the cargo or part of it is to be transhipped, and any contractors proposed to assist in the conduct of the operation, are approved by Owners, whose approval shall not be unreasonably withheld; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Owners reasonably consider the proposed transhipment operation to be one which can be conducted safely taking into account the environment and the safety of the crew, cargo and Vessel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If the cargo is transhipped, the transhipment operation shall be carried out in accordance with the latest recommendations for ship to ship transfer operations as contained in the Ship to Ship Transfer Guide for Petroleum, Chemicals and Liquefied Gases, 2013 jointly published by CDI, ICS, OCIMF and SIGTTO, as amended from time to time, in addition to any procedures reasonably required by Charterers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Any additional equipment required for transhipment operations shall be arranged by Charterers, and be for the account of Charterers. The time and costs for any Vessel modification required and any additional equipment, including hoses, fenders, reducers, saddles and other associated equipment, shall be for Charterers' account. Such equipment shall remain on board during the charter period and shall be removed from the Vessel by Charterers at their discretion and cost prior to Redelivery. Owners shall permit, at Charterers' expense, up to five (5) representatives of Charterers on board to observe any ship to ship operations, noting that all such operations will always be carried out by, and be the responsibility of, Owners. Such representatives shall comply with the terms of Clause 43 (Supernumeraries), save for the number of representatives allowed on board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) If Owners are obliged to extend any of their existing insurance policies to cover any transhipment operation they shall present documentation to Charterers evidencing Owners' Protection & Indemnity (P&I) or other insurers' requirement to extend cover that incurs an additional premium and detailing the costs of the same. Charterers shall reimburse Owners for any documented additional premium, provided such additional premium is reasonable and in line with market rates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) For the avoidance of doubt LNG cargo operations to or from vessels across a dock or jetty shall fall within the definition of "Safe Place" within Clause 9 (Safe Places and Compatibility), and for the purpose of this charter such cargo operations shall be deemed as being at an LNG terminal and this Clause 14 shall not apply.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**15.** **Trading to Europe EU: Advance Cargo Declaration** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If the Vessel loads cargo in any European Union ("EU") port or place destined for a port or place outside the EU, or loads cargo outside the EU destined for an EU port or place, or is passing through EU ports or places in transit, Owners shall comply with the current EU's Union Customs Code (Regulation (EU) no. 952/2013 (UCC)), the UCC Delegated Act (Regulation 2015/2446) and the UCC Implementing Act (Regulation 2015/2447) or any subsequent replacements thereof or amendments thereto, and shall undertake the role of carrier for the purposes of such regulations and shall, in their own name, and at their own time and expense:

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) have in place an EORI (Economic Operator Registration and Identification) number; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) submit an ENS (Entry Summary Declaration) cargo declaration electronically to the EU Member States' customs prior to the first port of call in the EU under this charter and provide Charterers at the same time with a copy thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Charterers shall provide all necessary information to Owners or their agents to enable Owners to submit a timely and accurate cargo declaration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Charterers shall assume liability for, and shall indemnify, defend and hold Owners harmless against any loss or damage whatsoever, or expenses, fines, penalties and all other claims of whatever nature, including but not limited to legal costs, arising directly from Charterers' failure to comply with the provisions of sub-clause (b) above. Should such failure result in any delay then notwithstanding any provision in this charter to the contrary, the Vessel shall remain on hire. Such liability shall be limited in value to two hundred percent (200%) of the delivered value of the cargo carried on board and shall terminate at 24:00 hours on the day thirty-six (36) calendar months after the date of discharge unless, prior to that time, written notice of a claim pursuant to this indemnity has been received by Charterers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Owners shall assume liability for, and shall indemnify, defend and hold Charterers harmless against any loss or damage whatsoever, and any expenses, fines, penalties and all other claims of whatever nature, including but not limited to legal costs, arising from Owners' failure to comply with any of the provisions of this Clause. Such liability shall be limited in value to two hundred percent (200%) of the delivered value of the cargo carried on board and shall terminate at 24:00 hours on the day thirty-six (36) calendar months after the date of discharge unless, prior to that time, written notice of a claim pursuant to this indemnity has been received by Owners. Should such failure result in any delay then, notwithstanding any provision in this charter to the contrary, the Vessel shall be off-hire for the period of that delay.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The assumption of the role of carrier by Owners pursuant to this Clause 15, and for the purpose of the EU Advance Cargo Declaration Regulations, shall be without prejudice to the identity of the carrier under any Bill of Lading, other contract, law or regulation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Save where Clause 16 applies, the provisions of this Clause 15, apply, with logical amendments, in the case of any other country or jurisdiction where similar advance cargo declarations apply at the commencement or during the course of the Charter period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**16.** **Trading to the United States of America or Canada: Customs** 

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If the Vessel loads in, or carries cargo destined for, the United States of America ("US") or Canada, or is passing through US or Canadian ports in transit, Owners shall comply with the current U.S. Customs Regulations (19

CFR 4.7), or the Canada Border Services Agency Regulations (Memorandum D3-5-2), or any subsequent amendments thereto, and shall undertake the role of carrier for the purposes of such regulations and shall, in their own name, and at their time and expense:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) have in place a Standard Carrier Alpha Code ("SCAC") or Canadian Customs Carrier Code;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) have in place for US trade an International Carrier Bond ("ICB"); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) submit a cargo declaration by Automated Manifest System ("AMS") to the U.S. Customs, or by Automated Commercial Information ("ACI") to the Canadian customs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Charterers shall provide all necessary information to Owners or their agents to enable Owners to submit a timely and accurate cargo declaration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Charterers shall assume liability for and shall indemnify, defend and hold harmless Owners against any loss or damage whatsoever, and any expenses, fines, penalties and all other claims of whatever nature, including but not limited to legal costs, arising directly from Charterers' failure to comply with the provisions of sub-clause (b) above. Should such failure result in any delay then notwithstanding any provision in this charter to the contrary, the Vessel shall remain on hire. Such liability shall be limited in value to two hundred percent (200%) of the delivered value of the cargo carried on board and shall terminate at 24:00 hours on the day thirty-six (36) calendar months after the date of discharge unless, prior to that time, written notice of a claim pursuant to this indemnity has been received by Charterers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Owners shall assume liability for and shall indemnify, defend and hold harmless Charterers against any loss or damage whatsoever and any expenses, fines, penalties, and all other claims of whatever nature, including but not limited to legal costs, arising from Owners' failure to comply with the provision of sub-clause (a) above. Such liability shall be limited in value to two hundred percent (200%) of the delivered value of the cargo carried on board and shall terminate at 24:00 hours on the day thirty-six (36) calendar months after the date of discharge unless, prior to that time, written notice of a claim pursuant to this indemnity has been received by Owners. Should such failure result in any delay then, notwithstanding any provision in this charter to the contrary, the Vessel shall be off-hire for the period of that delay.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The assumption of the role of carrier by Owners pursuant to this Clause 16 and for the purpose of the U.S. Customs Regulations (19 CFR 4.7), or Canada Border Services Agency Regulations (Memorandum D3-5-2), shall be without prejudice to the identity of the carrier under any Bill of Lading, other contract, law or regulation.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**17.** **Trading to the United States of America: Compliance** 

If the Vessel loads in, or carries cargo destined for, the United States of America ("US"), the following terms shall apply.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Vessel shall comply fully with all applicable US Federal law, US Department of Labor Safety and Health Regulations, U.S. Coast Guard and State laws, rules, orders, regulations, guidelines and circulars now in effect and which may be promulgated (and subsequent amendments and successors thereto) including, but not limited to, the following provisions relating to maritime safety and oil pollution response:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the U.S. Federal Water Pollution Control Act as amended by the Clean Water Act of 1977 (Water Pollution);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the U.S. Oil Pollution Act of 1990 and the governmental regulations issued thereunder ("OPA 90");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the U.S. Comprehensive Environmental Response, Compensation and Liability Act of 1980;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the U.S. Port and Tanker Safety Act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) the U.S. Coast Guard Navigational and Vessel Inspection Circular No. 8-92; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) the Code of Federal Regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Vessel shall have on board throughout the charter all certificates or other applicable documentation required under the said laws, rules, orders, regulations, guidelines and circulars evidencing such compliance, including, but not limited to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) U.S. Coast Guard Certificate of Financial Responsibility for Oil Pollution ("COFR"); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) U.S. Coast Guard Certificate of Compliance ("CoC"), as set out in sub-clause (e) below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Prior to Delivery Owners or Technical Managers shall have in place a response plan for the Vessel ("VRP") approved by the U.S. Coast Guard, and shall provide a copy of the same to the Charterers upon request. The VRP shall meet in full the requirements of OPA 90 and of the U.S. Coast Guard. The Vessel shall at all times be operated in accordance with the VRP. Charterers shall reimburse Owners for all port specific OPA 90 charges (including, but not limited to, additional premium to maintain P&I cover) directly incurred by the Vessel calling at ports in the US in accordance with Charterers' orders. Requirements of a similar nature imposed by other countries after the date of this charter shall be treated in the same way.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) To the extent that the Vessel does not at any time comply with any U.S. Coast Guard regulation now in effect or to be promulgated, all necessary waivers will be upheld. Owners will advise Charterers of all such waivers, including period of validation, and reasons for the waiver.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Owners shall ensure that the Vessel is free to trade to the US and if a Certificate of Compliance ("CoC"), as required in US waters, is not available at the commencement of the charter then an inspection shall be carried out prior to arrival at the first US port or on arrival at the first US port. Any delay incurred carrying out this initial inspection that exceeds twenty-four (24) hours shall be deemed off-hire. Charterers shall provide sufficient notice to Owners to allow Owners to comply with the rules and regulations in any US ports.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Owners are required to install an Automatic Identification System ("AIS") Pilot Plug as defined by SOLAS regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The Vessel shall be off-hire for any time lost due to a breach of this Clause 17 and any delays, losses, expenses, or damages incurred due to such breach (including bunkers used and Boil-Off) shall be for Owners' account.

Charterers acknowledge that the Vessel is not an eligible or compliant vessel under the Jones Act (also known as Section 27 of the Merchant Marine Act of 1920) and shall not order the Vessel to perform any activities that would violate the Jones Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**18.** **Trading to Japan** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If Charterers so instruct, Owners shall arrange for Social Responsibility Insurance ("SRI") to be in place prior to calling at any Japanese ports. Owners shall advise Charterers of, and seek their consent to, the premium due prior to procuring SRI. Charterers shall reimburse Owners with the applicable insurance premium, upon Charterers' receipt of documentation evidencing the same.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Where so required by Charterers, Owners shall ensure that the Vessel's CTMS and cargo tank tables comply in all respects with the requirements of the Japanese Customs Authorities, the Classification Society Nippon Kaiji Kyokai, and any other relevant authorities in Japan having jurisdiction over the measurement or discharge of LNG in Japan. If no customs approval is in place Owners shall, upon receipt of notice from Charterers of an intention to call at a port in Japan, immediately take steps to obtain such customs approval.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**19.** **Terminal Rules and Conditions of Use** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Vessel shall comply with any Terminal Rules as presented at any port of call (subject to sub-clause (b) below where the COU are incorporated in the Terminal Rules).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Owners shall sign any Conditions of Use ("COU") agreement, Port Liability Agreement (PLA), or similar required at a load port or discharge port.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Owners shall not be required to order the Vessel to enter into any port or terminal whereby a COU or PLA, or equivalent, would prevent Owners from obtaining appropriate cover from the Vessel's P&I Club. Any reasonable and documented additional insurance premium required as a result of agreeing to terms within such COU or PLA shall be for Charterers' account, provided notified in advance to Charterer, and payable upon Owners presenting documentation to Charterers evidencing Owners' P&I, or other insurers' requirement for an additional premium and detailing the cost of same.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**20.** **Space Available, Cargo Capacity, Contamination** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The whole reach, burthen and decks on the Vessel and any passenger accommodation (including Owners' suite) shall be at Charterers' disposal, reserving only proper and sufficient space for the Vessel's master, officers, crew, tackle, apparel, furniture, provisions and stores, provided that the weight of stores on board shall not, unless especially agreed, exceed two hundred (200) metric tonnes at any time during the charter period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Owners warrant that the Vessel shall have the Cargo Capacity specified in Part II (LNG Form B) table 8, "Cargo Tanks", and shall be capable of safely undertaking any Voyage that Charterers direct under this charter (subject to the other terms and conditions of this charter), with her cargo tanks loaded in an amount within the tolerances permitted by the Classification Society, Vessel builder and cargo containment manufacturer. Charterers agree not to cause the Vessel to be nominated for the loading of cargo outside the limits specified by the Classification Society, or the laws or regulations of the Vessel's country of registry, or the Vessel builder, or the cargo containment manufacturer which, among other consequences, might result in damage to the cargo tanks or their insulation by reason of the movement of liquid in the cargo tanks. Furthermore Charterers shall not give voyage orders such that, due to Boil-Off, cargo levels do not remain within such limits for the duration of any Voyage or following any Bunkering Operation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If for any reason the Cargo Capacity of the Vessel is reduced, including due to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) breach of this charter by Owners, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any fault or cause attributable to Owners' Group (including but not limited to breakdown or inefficiency of the Vessel),

and the Vessel loads a lesser quantity than that instructed by Charterers, and such instruction was within the permissible tolerances, then notwithstanding Clause 2(b) (Duty to Maintain), Charterers shall have the option of putting the Vessel off-hire or to continue using the Vessel. If Charterers elect to continue using the Vessel then hire shall be reduced pro rata to the reduction in the Vessel's Cargo Capacity, and this shall apply from the commencement of loading at the loading port until the Vessel is again ready to load without such reduction in Cargo Capacity.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The LNG loaded and shipped as cargo under this charter shall not contain contaminants or foreign matter in such quantities as could reasonably be expected to be injurious to the Vessel and her equipment and machinery. Owners shall not knowingly permit the loading of any such Cargo and shall advise Charterers as soon as reasonably possible in the event that Owners determine that any such Cargo violates this Clause 20 (d). Any damage to the Vessel directly caused by the presence of any such contaminants or foreign matter in the LNG loaded, including delays and interruptions in discharge caused by foreign matter in strainers and losses caused by such

delays at discharge or receiver refusing to accept cargo, and the time taken to repair any damage, shall be for Charterers' account.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**21.** **Grade of Bunkers** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Where Charterers arrange for bunkers to be supplied to the Vessel, they shall supply fuel oil whose properties comply with those set out in ISO Standard 8217:2005 for RMG380 (unless later specifications are available at place of bunkering) with maximum sulphur content 0.50% m/m and, subject to sub-clause (f) below, diesel oil with maximum sulphur content 0.50% m/m whose properties comply with the same ISO standard for 8217:2005 DMB (unless later specifications are available at place of bunkering) or marine gas oil with maximum sulphur content 0.50% m/m whose properties comply with ISO Standard 8217:2005 for ISO-F-DMA or DMZ (unless later specifications are available at place of bunkering) and low sulphur marine gas oil whose properties comply with ISO standard 8217:2005 for ISO-F-DMA grade (unless later specifications are available at place of bunkering).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Owners and Charterers shall each ensure no non-IMO 2020 Compliant Fuels are put on board at any time during the charter. Further, Owners shall ensure that the Vessel will not be delivered with fuels that do not comply with any future IMO requirements, or those of any other authorised body, that will apply at the time of Delivery.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If Owners require the Vessel to be supplied with more expensive bunkers Owners shall be liable for the extra cost thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Any bunkering operations for the supply of bunkers to the Vessel, including the location and equipment used, are subject to Owners' approval, and such approval shall not be unreasonably withheld.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) At Charterers' request, Owners shall arrange for the taking and retention of properly sealed and identified samples of each grade of fuel received for any given bunkering operation for the supply of bunkers to the Vessel, and shall hold same, subject to Charterers' written instructions, for one hundred and eighty (180) days.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Should Charterers trade the Vessel into a SOx Emission Control Area ("ECA") either as defined in Annex VI of MARPOL, or where national legislation imposes an ECA, or into a Member State of the EU where EU Directive 2005/33/EC of 6th July 2005 or any subsequent amendments, updates or revisions (the "Directive") is in force, then Charterers shall supply or pay for fuels:

------

&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) of such specifications and grades, sufficient for the Vessel's needs whilst in the restricted area, that are compliant with the maximum sulphur content requirements of the ECA or Directive as applicable, except that in the case of the Directive Charterers shall only be obliged to supply compliant gas oil, and in the case of the ECA, Boil-Off, ultra-low sulphur fuel oil, marine gas oil, or ultra-low sulphur marine gas oil; and

&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) from bunker suppliers, and bunker craft who comply with Regulations 14 and 18 of MARPOL Annex VI, including the Guidelines in respect of sampling and the provision of bunker delivery notes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Owners warrant, in the event the Vessel trades in an ECA, or into a Member State of the EU, that the Vessel:

&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) complies with the requirements of the ECA, Regulations 14 and 18 of MARPOL Annex VI, and any other national legislation imposing an ECA, or the Directive as applicable;

&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) is able to consume fuels of the required maximum sulphur content when ordered by Charterers to trade within an ECA or in a Member State of the EU in which the Directive applies; and

&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) will provide segregated storage and pipework for this fuel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Subject to having supplied the Vessel with or paid for fuels in accordance with this Clause 21, Charterers shall not be liable for any loss, delay, fines, costs or expenses arising or resulting from the Vessel's non-compliance with Regulations 14 and 18 of MARPOL Annex VI, or other national legislation imposing an ECA, or the Directive, or any subsequent annex or directive, save where attributable to the fuel so supplied.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**22.** **Quantity Determination of Bunkers and Heel** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Throughout the charter the Vessel shall operate with at least a quantity of bunkers or Fuel Oil Equivalent on board, as determined within Part I of this charter, sufficient to safely prosecute each Voyage or reach the nearest safe bunkering port or location. This amount shall be in addition to a safety reserve of fuel oil which would enable the Vessel to steam at the Service Speed for no less than five (5) days.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding anything contained in this charter all bunkers and Heel on board the Vessel shall be, from Delivery and throughout the duration of this charter, the property of Charterers or their nominee and can only be purchased or reconciled on the terms specified in Part I of this charter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Vessel's figures shall be used to ascertain the quantity of all bunkers and Heel on Delivery and Redelivery and the master shall provide an on-hire and off-hire certificate containing the Remaining On Board ("ROB") figures for Heel and bunkers upon both Delivery and Redelivery of the Vessel. Should Charterers so request, an independent surveyor, acceptable to Owners, shall be appointed at Charterers' cost to verify the Vessel's figures.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Parties shall provide documentation, including copies of original invoices, in support of any fuel price or, where the terms of a cargo sale permits, the cargo realisation price or LNG Price, if requested to do so, unless a fixed price or price formula for the LNG Price has been agreed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Vessel shall be entitled to use Natural Boil-Off from the LNG being transported at no cost to Owners.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**23.** **Gas-Up, Cool-Down, LNG Retention** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In the case where the Vessel is not due for Redelivery immediately after discharge then, unless Charterers stipulate otherwise, Owners shall retain on board the Vessel, following completion of discharge, sufficient Heel (which quantity will be agreed with Charterers) to enable the Vessel to arrive at the next load port in a cold and ready to load condition and to remain in that condition for not less than twenty-four (24) hours after arrival or after the nominated load date whichever the later.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Subject to agreement of the quantity of Heel retained following discharge between Owners and Charterers in sub-clause (a) above and subject also to sub-clauses (c) and (d) below, if the Vessel presents for loading at any load port or terminal with tank temperatures in any tank, other than that which would allow bulk loading to commence within half (½) an hour of cooling of the loading arms, then any time lost as a consequence thereof, including without limitation any time lost in additional cooling of tanks prior to loading, shall count as off-hire and the cost of any LNG supplied for such additional cooling shall be paid for by Owners at the actual purchase price paid for the LNG required.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Charterers shall provide and pay for LNG required and any Fuel consumed for purging, gassing up and cooling the Vessel's cargo tanks and handling systems to the temperatures necessary to commence loading only in the following circumstances:

&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) where the Parties have agreed that Delivery of the Vessel will be with cargo tanks under natural gas vapours, or in an inert condition, and that the Vessel shall remain on-hire during the necessary GasUp and Cool-Down. In such case the Parties shall agree the hours allowed for such operations and enter them either separately, or in aggregate, in Part I of this charter (Performance Insertions). If the period for either Gas-Up or Cool-Down, or for both operations together, exceeds the hours there shown, for reasons attributable to the Vessel, then the Vessel shall be off-hire for time in excess of the agreed hours;

------

&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) in the event that the quantity of Heel retained on board pursuant to sub-clause (a) above is not sufficient to enable the Vessel to arrive at the next loading port in a cold and ready to load condition, unless such insufficiency is the result of an act or omission on the part of Owners' Group;

&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) if LNG is required by reason of strikes, quarantine restrictions, seizure under legal process, restraint of labour, (none of which arise in connection with the Vessel or crew), an act of God, act of war, lock outs, or civil unrest;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) if LNG is required by reason of any Excluded Period as defined in Appendix A (Performance Calculations), Article 2(b) (Ordered Speed), or by reason of Charterers changing the SAT whilst on the ballast passage, or by reason of Charterers ordering the Vessel to steam at any speed other than at a Guaranteed Speed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) upon return of the Vessel to the first load port after any lay-up ordered by Charterers pursuant to Clause 59 (Laying-Up), after any underwater cleaning ordered under Clause 33 (Hull Fouling), or after the Vessel has been withdrawn from service at the request or convenience of Charterers, and as a result of which the Vessel has warmed up or is gas-free;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) where Charterers direct the Vessel to Heel out; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) where the want of LNG is caused by Charterers' breach of this charter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) In all other circumstances Charterers shall provide and Owners shall pay for LNG required for cooling the Vessel's cargo tanks, and any Fuel consumed during cooling down operations. Owners shall pay at the actual purchase price paid for the LNG required. Any Fuel used shall be charged at the Fuel Price. Such circumstances shall include, but not be limited to:

&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) following periods of off-hire;

&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) following periodical drydocking under Clause 35 (Drydock);

&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) where Charterers instruct the Vessel after a drydock at an offered port under Clause 35 (Drydock), to take LNG for purposes of gassing-up or cooling-down at any port other than the first scheduled loading port then all costs associated with the port call shall be borne by Charterers, and Owners will remain liable for LNG or gas purchased for Gas-Up and Cool-Down, Fuel consumed, and any time spent undertaking these operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) following requisition under Clause 52 (Requisition); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) where the want of LNG is caused by Owners' breach of this charter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Natural gas vapours remaining in cargo tanks at Redelivery shall be at no cost to Owners.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**24.** **Boil-Off and Heel Management** 

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Vessel's guaranteed maximum daily Natural Boil-Off (laden or ballast as the case may be) and Effective Boil-Off rates shall be as shown in Part I (Performance Insertions) and Part II (Speed/Consumption), or relevant table in Part II, respectively. In addition:

&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) on a laden passage, where not all cargo tanks are used, the applicable maximum warranted daily laden Boil-Off shall be the warranted laden Boil-Off rate multiplied by the total capacity at

100% of only those cargo tanks used;

&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) on a ballast passage, where the previous voyage was partially laden and not all cargo tanks were used, the applicable maximum warranted daily ballast Boil-Off shall be pro-rated by the ratio of the number of cargo tanks previously used to the total number of cargo tanks;

&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) on a laden passage, when cargo conditioning is required either by Charterers or by Charterers' instructed discharge terminal, then the Vessel shall be deemed to comply with the Boil-Off warranties for that Voyage; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) during Bunkering Operations, the Vessel shall be deemed to comply with the Boil-Off warranties for the period of such operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Owners warrant that the Boil-Off management system (sub-cooler system), where fitted, can be used to achieve the consumption values as set out in the "Effective Boil-Off" section in Part I. The master shall be responsible for using any Boil-Off management equipment as required with a view to minimising Fuel consumption and optimising cargo outturn, commensurate with Charterers' voyage orders. Nevertheless Charterers shall be entitled to intervene in this regard and instruct the Vessel to use the Boil-Off management system in voyage orders should they wish to do so.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If the Effective Boil-Off rate at any speed listed in Part II exceeds the values stated in the corresponding Effective Boil-Off Value column, then Charterers will be compensated for the excess Boil-Off as per Appendix A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Charterers may request the Vessel to consolidate Heel in one or more tanks and spray-cool as necessary in a manner consistent with Owners' or Charterers' requirements so as to maximise the use of the available Boil-Off for propulsion. The Vessel shall use due diligence to avoid the generation of any excess Boil-Off.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Without prejudice to any of Owners' or Charterers' obligations under this Clause 24, if Owners intend to order spray-cooling at any time during the charter period, they shall do so only after discussing with Charterers the reasons and technical basis for doing so.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) In accordance with Clause 4(h) (Safety Management) the Vessel shall be capable of operating without venting, and in accordance with Clause 6 (Incident Reporting), any venting shall be reported immediately.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**25.** **Cargo and Heel Measurement** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) For the purposes of measuring cargo volumes loaded and discharged the master shall ascertain the contents of all tanks before and after loading, and before and after discharge, and shall prepare custody transfer reports of the cargo on board using the Vessel's CTMS. Such CTMS reports shall promptly be made available to Charterers or their agents. Each report shall show tank volumes corrected for trim and list, and the representative temperatures of the cargo in each tank. All quantities shall be expressed in cubic metres (m3) and corrected to minus one hundred and sixty degrees Celsius (-160ºC).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Heel volume upon Delivery shall be the volume of LNG contained in the Vessel's cargo tanks measured immediately before Delivery. The Heel volume upon Redelivery shall be the volume of LNG contained in the Vessel's cargo tanks measured immediately upon Redelivery, and in both cases the Vessel's CTMS tank measuring devices shall be used.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Heel volume prior to commencement of loading, at the end of a ballast voyage, shall be the volume of LNG contained in the Vessel's cargo tanks measured promptly before the opening of the Vessel's manifold vapour return valve.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The cargo volume after loading at the start of a laden voyage shall be the volume of LNG contained in the Vessel's cargo tanks measured immediately after the closing of the Vessel's manifold vapour return valve in the loading port and measured with the Vessel's CTMS tank measuring devices.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The cargo volume upon commencement of discharge, at the end of a laden voyage, shall be the volume of LNG contained in the Vessel's cargo tanks measured immediately after closing the gas supply valve to the engine room and measured with the Vessel's CTMS tank measuring devices.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The Heel volume remaining on board after completion of discharge by way of Transport of Cargo, prior to a ballast voyage, shall be the volume of LNG contained in the Vessel's cargo tanks measured immediately after the closing of the Vessel's manifold vapour return valve in the discharging port, and, measured with the Vessel's CTMS tank measuring devices.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The cargo volume remaining on board after completion of a Bunkering Operation shall be the volume of LNG contained in the Vessel's cargo tanks measured immediately after the closing of the Vessel's manifold vapour return valve connected to the Receiving Vessel's bunker manifold measured with the Vessel's CTMS tank measuring devices

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**26.** **Cargo Transfer Inspection and System Calibration** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Charterers may, at their option and expense, place one or more cargo transfer inspection representatives (which may include representative(s) of a customer of Charterers) on board to observe preparation for loading or discharging of cargo during periods when the Vessel is in port. Such representative will not under any circumstances order or direct the taking of any particular action by the Vessel or crew or interfere in any way with the master's exercise of his authority. Such representative(s) shall sign an "Indemnity Agreement for Boarding Vessel" in the format shown in Appendix C (Indemnity Agreement for Boarding Vessel), in order to obtain permission to board the Vessel.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Owner shall ensure (at no additional cost to Charterer) that the CTMS is installed and maintained in accordance with the stricter of the recommendations of the manufacturer of such CTMS or any applicable published industry standards. The CTMS shall undergo a calibration check by a recognised calibration company at intervals consistent with the standards set forth in the previous sentence, but in any event at intervals of no more than thirty-six (36) months. Charterers shall have the right to order more frequent calibration checks by notice to Owners; provided that Charterers will reimburse Owners for any out-of-pocket costs incurred by Owners with respect to each such more frequent calibration check unless the CTMS is found to be measuring inaccurately by an amount of one half of one percent (0.5%) or more of the operational accuracy tolerance provided by the manufacturer, in which case, the cost of such more frequent calibration check shall be borne by Owners. Each check shall include a full calibration of the primary gauging system, secondary gauging system, in-tank temperature monitoring system, tank pressure monitoring system, and independent high-level tank alarms. The calibration check shall be done without entry into cargo tanks unless the tank in question is gas-free. Owners shall make available to Charterers the calibration check reports and certification. Charterer shall have the right to require that any test or calibration performed under this Clause 26(b) be performed in front of a representative of Charterer and a representative of its customer(s), if applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Vessel's CTMS shall have the functionality to change unit settings such that different, but equivalent, units of measurements are shown for pressure readings on any reports. Further the CTMS shall have the functionality to alter the number of decimal places and the rounding protocol for all readings and measurements taken, and the zero setting for volume and temperature at given parameters. This shall be done to allow Charterers to meet differing sales and purchase agreements, or as required by terminal procedures.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**27.** **Vapour Pressure, Cargo Temperature** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Owners undertake that the Vessel will arrive at each discharge port or terminal or Receiving Vessel with the Vessel's tanks, lines and cargo in such a condition that the saturated vapour pressure in the Vessel's cargo tanks meets the requirements of the discharging port or terminal or Receiving Vessel as notified in a timely manner by Charterers to Owners ("Notified Vapour Pressure"), so long as the voyage instructions, or ordered speed, allows the Vessel to manage the cargo tank pressures and temperatures to achieve the discharge port or terminal or Receiving Vessel requirements (always within the parameters of the Vessel's installed equipment, including use of the sub-cooler system, and without venting). If solely as a result of Charterers' voyage instructions, and provided the Vessel is otherwise in good working order and condition, the Vessel is prevented from arriving at the discharge port or terminal or Receiving Vessel with cargo tank pressures and temperatures within the requirement parameters of the discharge port or terminal or Receiving Vessel, the procedures as described in sub-clause (c) below shall apply. In any case, the master will notify Charterers as soon as the master reasonably expects the Vessel will not arrive at the discharging port or terminal or Receiving Vessel with vapour pressure above the Notified Vapour Pressure, and the Charterers shall determine whether the voyage instructions provided to Owners shall be modified in order to avoid the Vessel arriving in a condition where the pressure or temperature will prevent

------

the loading, discharging or transfer of LNG and will notify Owners accordingly.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Owners will follow the notification received from Charterers and will not allow vapour pressure to increase beyond the Notified Vapour Pressure, provided that the Notified Vapour Pressure is within the Vessel's allowable operating ranges as specified in the Vessel's Certificate of Fitness. If the Vessel on arrival at the discharge port or terminal or Receiving Vessel, as the case may be, is unable to commence discharging without delay as a consequence of the vapour pressure in the Vessel's cargo tanks being in excess of the Notified Vapour Pressure, then any time lost shall count as offhire. This provision shall not apply where:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the vapour pressure on completion of loading, which shall be the vapour pressure measured after the closing of the Vessel's manifold vapour return valve in the loading port, and before the opening of the gas supply valve to the engine room, in accordance with Clause 25(c) (Cargo and Heel Measurement), was in excess of the Notified Vapour Pressure; and/or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the Bunker Vessel encounters heavy weather (wind exceeding Beaufort force five (5) for a period of more than twelve (12) hours in any twenty-four (24) hour period during any laden voyage which prevents effective gas management).

In the circumstances described in sub-clause 27(b)(i) and (ii), the Bunker Vessel will be deemed to comply with the Boil-Off warranty.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Charterers may require the Vessel to manage Boil-Off by causing an increase in the vapour pressure of the cargo tanks. Notwithstanding the terms of subclauses (a) and (b) above, if as a consequence of this action the cargo temperature rises, then, provided the master keeps Charterers promptly informed on an ongoing basis of the relevant tank vapour pressures and cargo temperatures, Owners shall not be liable for any delay at discharge port caused as a result of the cargo temperature being higher than that required by the receiving terminal or Receiving Vessel, as applicable.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**28.** **Cargo Receiving and Discharging Rates** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Owners warrant that the Vessel shall have a bulk cargo receiving rate as set out in Form B, provided that the terminal is capable of receiving all return vapour from the Vessel that may be generated whilst receiving cargo at this rate. Time for connecting, disconnecting, cooling down, ramping up, topping up, ramping down and custody transfer measurement shall be excluded from the calculation of this warranty.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Owners warrant that the Vessel shall be able to deliver LNG as marine fuel to a Receiving Vessel and/or cargo to a Primary Terminal for Transport of Cargo operations according to the minimum hourly pumping rate and pressure shown in Part II (LNG Form B) table "Cargo Discharge", excluding the time for connecting, disconnecting, cooling down, starting up pumps, ramping-up, ramping-down for stripping at end of discharge, stripping, and custody transfer measurement. This pumping warranty shall be valid provided that the Receiving Vessel or discharge Primary Terminal (as applicable) is capable of receiving LNG at such rate and back pressure. The Vessel shall be capable of receiving vapour return from the Receiving Vessel or discharge Primary Terminal (as applicable).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**29.** **Ballast Water Treatment** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Owners shall ensure that the Vessel will be equipped with ballast water treatment facilities, which are fully efficient and operational. The Vessel shall have a ballast water management plan, a ballast water record book and a ballast water management certificate and comply with any applicable laws or regulations. Owners warrant that the Vessel shall comply with all mandatory ballast water and sediments requirements, including but not limited to:

&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) any requirements arising from The International Convention for the Control and Management of Ships' Ballast Water and Sediments effective 8<sup>th</sup> September 2017, or implementing legislation (or any amendments, updates or revisions), and

&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) any requirements (including those of the U.S. Coast Guard) for trade to or from any part of the US.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Owners shall be responsible for the installation of any new equipment or changes to existing equipment which may become necessary during the course of the charter to comply with such requirements and at their own time and expense.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Owners shall require the master to make available to Charterers, on request, any and all ballast water exchange records.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**30.** **Agency** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Charterers shall nominate and appoint the Vessel's agents at all ports and places which the Vessel visits during the charter period. Such agents shall be paid for by Charterers. This shall not prevent the same agents, under separate arrangement, from providing assistance or services to the Vessel, master, crew or Owners, in which case Owners shall instruct and pay such agents, who shall solely represent Owners and the Vessel for that service. Except as set forth in paragraph (b) below, Charterers shall be permitted to appoint such agents as it requires in connection with the charter of the Vessel, loading and discharging of cargo during the charter period, and provision of bunkers to the Vessel, without the Owners' consent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Charterers' appointment of port agents shall be subject to Owners' approval not to be unreasonably withheld, conditioned or delayed. It shall not be unreasonable to withhold such approval on the grounds that the proposed port agent, upon review, does not meet Owners' counterparty KYC due diligence requirements or processes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**31.** **Pilots and Tugs** 

Subject to Charterers' employment of pilots and tugboats on terms which are generally acceptable to the International Group of P&I Clubs for poolable cover, Owners hereby indemnify Charterers, their servants and agents, against all losses, claims, responsibilities and liabilities arising in any way whatsoever from the employment of pilots or tugboats, who although employed by Charterers, shall be deemed to be the servants of, and in the service of Owners and under their instructions (even if such pilots or tugboat personnel are in fact the servants of Charterers or their agents, or any affiliated company). The amount indemnified shall not exceed the amount to which Owners would have been entitled to limit their liability if they had themselves directly employed such pilots or tugboats.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**32.** **Mooring Lines** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Owners shall, at all times throughout the charter, have on board the Vessel adequate and appropriate mooring equipment and fittings for safe mooring operations as required under provisions of SOLAS regulation II-1/3-8, as amended by resolution MSC. 474(102) including recommendations under OCIMF's Mooring Equipment Guidelines (MEG4), and any succeeding regulations or amendments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Vessel's mooring equipment shall include eleven metre (11m) mooring tails in good order and condition for berths, always compliant with MEG4 and terminal requirements, and also compliant with the SOLAS regulations and OCIMF Guidelines mentioned in sub-clause (a) above. For any other specific mooring tails required by Charterers, Owners shall advise the availability and costs of arranging and procuring such mooring tails and, upon Charterers' confirmation, Owners shall seek to procure them, at Charterers' expense.<sup></sup>

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**33.** **Hull Fouling** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Charterers may request Owners at any time throughout the charter period to arrange for the cleaning afloat of the Vessel's propeller and underwater hull, whereupon Owners shall arrange for the said cleaning to take place, provided that:

&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) the location selected for the cleaning has been approved by Charterers for the purpose;

&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) the Vessel is free of cargo, (but may retain Heel or be under vapour if permitted by the port authority where the intended cleaning will take place);

&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) in Owners' opinion such cleaning will not damage the Vessel's underwater hull coatings; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) such cleaning can be carried out safely at a place approved by Owners and where the water is sufficiently clear for an underwater

survey to be made of cleanliness of the Vessel's propeller and hull immediately after cleaning.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The cost of such propeller and underwater hull cleaning, and any associated underwater survey immediately prior to or following the cleaning, shall be for Charterers' account, and the Vessel shall remain on-hire for the duration of these activities. If the underwater survey conducted after the cleaning shows that both the Vessel's propeller and underwater hull are clean and free of marine growth, a successful cleaning shall be deemed to have occurred.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Where Charterers require the Vessel to wait at anchorage or to use the Vessel for the purposes of providing floating storage in cargo, and order the Vessel to wait at such anchorage or drifting for more than fifteen (15) consecutive days for such purpose on any one occasion and, if as a result of such waiting, Owners have good reason to believe that the Vessel's speed or fuel warranties can no longer be met because of potential fouling, then:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Owners may request Charterers, (to which Charterers shall not unreasonably withhold consent), to instruct the Vessel to undertake speed runs, being short periods of steaming, according to an agreed routine between the Parties and in line with any applicable hull coatings manufacturers' recommendations, sufficient to prevent excessive marine growth; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) upon notice to Charterers, and with Charterers' consent, Owners may order an underwater inspection at Charterers' expense, to ascertain whether there is fouling of the propeller or hull.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If as a result of the inspection undertaken as per sub-clause (c) (ii) above, Owners consider that there is evidence of such fouling then Charterers may request Owners to arrange and carry out cleaning afloat of the Vessel's propeller and underwater hull provided that the provisions of sub-clause (a) above apply. The cost of underwater inspection, and hull and propeller cleaning, shall be for Charterers' account and the Vessel shall remain on-hire for the duration of these activities.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) If on the other hand the underwater inspection shows that both the Vessel's propeller and underwater hull are sufficiently clean and free of marine growth, then no cleaning of the underwater hull or propeller shall be undertaken and Owners shall pay the cost of the underwater inspection.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) If any inspection pursuant to sub-clause (c) above reveals the presence of propeller or hull fouling, or if Charterers do not request an inspection following receipt of a notice from Owners under sub-clause (c) above, then from the time Owners have given written notice that performance is affected by fouling, Owners shall be deemed to have complied with the speed and fuel warranties in Part II (LNG Form B) table 6, "Speed/Consumption", until the completion of the next periodic drydocking, or until the completion of a successful cleaning, whichever first occurs.

&nbsp;&nbsp;&nbsp;&nbsp;**34. Off-Hire** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) On each and every occasion that there is a loss of time, whether by way of interruption in the Vessel's service or from reduction in the Vessel's performance, or in any other manner due to one or more of the following:

&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) deficiency of personnel or stores, repairs, gas-freeing for repairs, time in dock and waiting to enter dock for repairs, breakdown (whether partial or total) of machinery, boilers, engines, compressors or sub coolers, IT equipment, or other parts of the Vessel or her equipment, overhaul, maintenance or survey, collision, allision, stranding, accident or damage to the Vessel, or any other similar cause preventing the efficient working of the Vessel, and such loss continues for more than three (3) consecutive hours (if it is the result of an interruption in the Vessel's service) or accumulates to more than three (3) hours during any single voyage (if it is the result of partial loss of service);

&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) industrial action, refusal to sail, breach of orders or neglect of duty on the part of the master, officers or crew;

&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) as a result of strikes, labour boycott, or any other industrial action by the Owners' agents or servants, including the crew of the Vessel, or for the employment of the Vessel in any carriage, or trade, or on any voyage other than under this charter;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) for the purpose of obtaining medical advice or treatment for, or landing any sick or injured person, other than a Charterers' representative carried under Clause 43 (Supernumeraries) or for the purpose of landing the body of any person (other than a Charterers' representative), and such loss continues for more than five (5) consecutive hours;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) any delay in quarantine arising from the master, officers or crew having had communication with the shore at any infected area without the written consent or instructions (which, in each case, shall not be unreasonably withheld) of Charterers or their agents;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) any detention by customs or other authorities caused by smuggling or other infraction of local law on the part of the master, officers, or crew;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) detention of the Vessel by authorities at home or abroad attributable to legal action against the Vessel, or breach of regulations by the Vessel, Owners, or Managers (unless brought about by the act or neglect of Charterers);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) restraint or interference in the Vessel's operation by any governmental authority in connection with the ownership, registration, or obligations of Owners or Managers or the Vessel, or stowaways, or in connection with other prohibited activities unless such restraint or interference involves a cargo carried under this charter or was brought about solely by the act or neglect of Charterers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) pre-docking and repair procedure including warming, gas-freeing and inerting (unless under instructions by Charterers to make modifications pursuant to Clause 9(d));

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) maintaining, overhauling, intermediate in-water survey, repairing or drydocking the Vessel and submitting her for survey; waiting for any of the aforesaid purposes, or proceeding to or from, and whilst at, any port or place for any of the aforesaid purposes (unless under instructions by Charterers to make modifications pursuant to Clause 9(d));

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi) post-docking or repair procedure including inerting, gassing-up and cooling in excess of that undertaken for normal loading (unless under instructions by Charterers to make modifications pursuant to Clause 9(d));

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xii) reduction of cargo capacity as per Clause 20 (Space Available, Cargo Capacity, Contamination);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiii) as a consequence of tank temperature being too high at the place of loading and in breach of Clause 23 (Gas-Up, Cool-Down, LNG Retention);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiv) as a consequence of tank pressure being too high at the place of discharge and in breach of Clause 27(b) (Vapour Pressure, Cargo Temperature);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xv) as a consequence of the cargo temperature being higher than that which is required by the receiving terminal (except in the case where the actual loaded temperature, as recorded in the CTMS, was greater than the required discharge temperature), or where the master is in breach of the circumstances described in Clause (27)(c) (Vapour Pressure, Cargo Temperature); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xvi) any other circumstances where the Vessel is off-hire under another clause in this charter,

then without prejudice to Charterers' rights under Clause 2 (Duty to Maintain), or to any other rights of Charterers hereunder or otherwise, the Vessel shall be off-hire from the commencement of such loss of time until she is again ready and in an efficient state to resume her service from a position no less favourable to Charterers than that at which such loss of time commenced. Any service given or distance made good by the Vessel whilst off-hire shall be taken into account in assessing the amount to be deducted from hire.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If the Vessel fails to proceed at any Guaranteed Speed or such Ordered Speed as Charterers are permitted to order the Vessel, as defined in Part II (LNG Form B) and Appendix A (Performance Calculations), and such failure arises wholly from any of the causes set out in sub-clause (a) above, then the following provisions shall apply:

&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) if the Vessel is unable to maintain a speed of at least eighty-five percent (85%) of the Guaranteed Speed stated in Part II (LNG Form B), in wind and sea states not exceeding Beaufort force five (5), Charterers shall have the option of placing the Vessel off-hire, accepting that any distance made good by the Vessel whilst off-hire shall be taken into account in accordance with sub-clause (a) above; and

&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) except where Charterers have placed the Vessel off-hire pursuant to sub-clause (b)(i) above, failure of the Vessel to proceed at any Guaranteed Speed shall be addressed under Appendix A applicable (Performance Calculations), and the Vessel will not be off-hire under this Clause 34.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Further, and without prejudice to the foregoing, and subject to clause 12 (Weather Routeing) in the event the Vessel deviates (which expression includes, without limitation, putting back, or putting into any port or place other than that to which she is bound under the instructions of Charterers) for any cause or purpose mentioned in sub-clause (a) above, then the Vessel shall be off-hire from the commencement of such deviation until the time when she is again ready and in an efficient state to resume her service from a position no less favourable to Charterers than that at which the deviation commenced, provided, however, that any service given or distance made good by the Vessel whilst off-hire shall be taken into account in assessing the amount to be deducted from hire. If the Vessel, for any cause or purpose mentioned in sub-clause (a) above, puts into any port or place other than the port or place to which she is bound on the instructions of Charterers, the port charges, pilotage and other expenses at such port or place shall be borne by Owners. Should the Vessel be driven into any port or anchorage by stress of weather hire shall continue to be due and payable for any time lost thereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Time during which the Vessel is off-hire under this charter shall count as part of the charter period. Nevertheless Charterers shall have the option to declare that any time during which the Vessel is off-hire may be added to the charter period, up to the total amount of time spent off-hire. In such cases the rate of hire will be that prevailing at the time the Vessel would, but for the provisions of this Clause 34, have been redelivered, provided such rate of hire shall be no greater than the rate of hire applicable hereunder. Charterers shall exercise this option no later than the number of days noted in Part I of this charter (Performance Insertions) "Off-Hire Extensions", being the number of days before the date on which the charter would otherwise terminate.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Any periods of off-hire occurring after the time and date on which Charterers have declared their option in sub-clause (d) above may be added to the charter period as long as Charterers have promptly declared at the end of the relevant period of off-hire that the time lost will be added to the total charter period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) On any occasion where Charterers rightfully deduct an amount for off-hire from the hire payment, Charterers shall also be entitled to deduct the cost of all fuels, priced at the Fuel Price, used by the Vessel during that period of off-hire.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) If any LNG is lost as Boil-Off during periods of off-hire then Owners shall reimburse Charterers for the LNG lost at the Charterers' realised sale price at the last port of discharge. Boil-Off shall be measured using the Vessel's

CTMS or flow mass meters, if fitted, provided they have a valid calibration or verification certificate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Where CTMS or flow mass meters are not calibrated in accordance with paragraph (g) or otherwise not able to determine the Boil-Off during any offhire period, the LNG lost as Boil-Off shall be assumed to have occurred at a constant rate equal to that obtained by measurement between official gauging operations of the cargo in question in accordance with Appendix A or Article 6(b) (Boil-Off Performance). Where, due to the off-hire having occurred during a ballast passage all Heel is lost as Boil-Off prior to the Vessel's next commencement of loading, then such Boil-Off shall be deemed to have occurred at the greater of the Maximum Daily Boil-Off Rate Ballast as shown in Part I of this charter (Performance Insertions), or at a constant rate equal to that which occurred during the Vessel's most recent ballast voyage.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) In the event that the Vessel is off-hire for any reason other than in connection with periodical drydocking, pursuant to Clause 35 (Drydock), in-water survey, or underwater inspection in lieu of drydock, modifications pursuant to Clause 9 (Safe Places and Compatibility) or requisition of the Vessel pursuant to Clause 52 (Requisition), for any period in excess of that shown in Part I of this charter (Performance Insertions), "Off-Hire Termination Rights", then Charterers shall have the option to terminate the charter by giving notice in writing with effect from the date stated in such notice. Such notice shall be capable of becoming immediately effective provided that the Vessel is free of cargo (other than Heel). This sub-clause (i) is without prejudice to any other rights or obligations of Owners or Charterers under this charter. For the purposes of this sub-clause (i), in the event of partial loss of service, the period of off-hire shall be the total period during which the Vessel is not fully efficient rather than the net resultant loss of time.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) In the event that the Vessel is off-hire for a reason in connection with periodical dry-docking pursuant to Clause 35 (Drydock), for in-water survey, or for underwater inspection in lieu of drydock, modifications pursuant to Clause 9 (Safe Places and Compatibility) or requisition of the Vessel pursuant to Clause 52 (Requisition), for any period in excess of thirty (30) days over and above Owners' estimated time allowed for such periodical drydocking or survey or inspection as advised beforehand by Owners, then Charterers shall have the option to terminate this charter by giving notice in writing with effect from the date stated in such notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) Where for a canal transit the Vessel has a loss of queue position, or arrives late for an allocated transit slot and such loss of position or late arrival is due to Owners' Group negligence or Vessel breakdown, then, apart from the offhire event that initially caused the delay, the Vessel will be additionally offhire from no later than arrival at the canal anchorage until the Vessel reaches the originally scheduled position in the queue or until the Vessel is given the next available transit slot as stated by the canal authority, whichever is sooner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**35.** **Drydock** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) No periodical drydocking is anticipated during this charter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**36.** **Sub-Letting, Assignment, Novation** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Charterers may sub-let the Vessel to any Affiliate of Charterers without Owners' permission. Charterers shall nevertheless remain fully responsible to Owners for due fulfilment of this charter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Charterers may sub-let the Vessel to any non-Affiliate or third-party company with Owners' permission, such permission shall not be unreasonably withheld, conditioned or delayed. Charterers shall nevertheless remain fully responsible to Owners for due fulfilment of this charter. Nonapproval by Owners of such intended sub-charterer on the grounds that such entity would not meet Owners' counterparty due diligence requirements or KYC processes for a direct contractual relationship, shall be deemed to be reasonable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Where a sub-charter is permitted Charterers shall include a clause in that subcharter requiring the sub-charterer to provide full style contact details, including twenty-four (24) hour emergency contact number, directly to both master and Owners.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Either Party may assign their rights under this charter to any of their Affiliates. Neither Party may assign their rights to a non-Affiliate without the written consent of the other Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Neither Party may novate this charter.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**37.** **Hire Payment and Deductions** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Charterers shall pay for the use and hire of the Vessel at the daily rate stated in Part I of this charter (Rate of Hire), and pro rata for any part of a day, from the date and time (GMT) of her Delivery to Charterers until the date and time (GMT) of Redelivery to Owners. Charterers shall pay for any positioning fees, repositioning fees and other fees agreed in Part I.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Subject to other terms herein provided Owners shall invoice Charterers monthly in advance for the payment of hire.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Subject to Clause 2(c) and 2(e) (Duty to Maintain), Clause 20 (Space Available, Cargo Capacity, Contamination), and timely receipt of Owners' invoice (being no later than five (5) Business Days prior to the relevant payment date), payment of hire shall be made in immediately available funds but never later than the last Business Day prior to the start of the hire period, and thereafter, the last Business Day prior to the start of subsequent months. Payment shall be made in United States Dollars per calendar month in advance free of any bank charges or fees, or for the entire period of the

charter where such period is no more than forty-five (45) days firm remaining, less the following deductions which Charterers may make:

&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) any hire paid, or cost of fuel, or Boil-Off which Charterers

reasonably estimate to relate to off-hire periods;

&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) any amounts disbursed on Owners' behalf, any advances and commission thereon, and charges which are for Owners' account pursuant to any provision of this charter; and

&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) any amounts due, or reasonably estimated to become due, to Charterers under Clause 2(b) (Duty to Maintain) or Appendix A (Performance Calculations).

Any such deductions are to be made at the due date for the next monthly payment after the facts have been ascertained.

Payment for positioning fees, repositioning fees or other fees agreed in Part I will be due when specified in Part I, and payment for any other reimbursable costs incurred by Owners hereunder will be due from Charterers within thirty (30) days of delivery of Owners' invoice for the same together with reasonable documentation substantiating the costs incurred.

For clarity, if Owners issues an invoice less than five (5) Business Days prior to the relevant payment date, Owners will continue to have the right to claim payment of such invoice but the time allowed for Charterers to make payment will be extended accordingly.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Charterers shall substantiate all deductions from hire by the submission of supporting documentation, corresponding to a given deduction, within thirty (30) days of the applicable deduction being made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Charterers shall not be responsible for any delay or error by Owners' bank in crediting Owners' account, provided that Charterers have made proper and timely payment, and can demonstrate same, if required, with SWIFT or equivalent record.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) If Charterers are in default of such proper and timely payment:

&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) Owners shall notify Charterers of such default and Charterers shall, within ten (10) days of receipt of such notice, pay to Owners the amount due, including interest, failing which Owners may withdraw the Vessel from the service of Charterers until such amounts are paid together with any applicable interest, and if such payment default remains unremedied within thirty (30) days of receipt of such notice, Owners may immediately terminate the charter by giving notice of termination to Charterers at any time thereafter, and any such suspension or termination of the charter will be without prejudice to any other rights Owners may have under this charter or otherwise; and

&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) interest on any amount due but not paid on the due date shall accrue from the due date up to but excluding the day when payment is made, at a rate per annum which shall be two percent (2%) above

SOFR. Interest shall be calculated on the basis of a three hundred and sixty (360) day year and shall be paid on the date when payment of the sum due is made. If SOFR is not available, then a benchmark rate which has been formally designated, nominated or recommended as the replacement for SOFR by any applicable central bank, regulator or other supervisory authority or a group of them, or any working group or committee sponsored or chaired by, or constituted at the request of any of them (the "Replacement Rate") shall replace SOFR , provided that if no Replacement Rate is available, the Party not in breach of this charter shall select another equivalent rate acting reasonably.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) In the event that Charterers receive any request for payment to Owners to be made to a bank account which is different from that shown in Part I of this charter (Banking Details), Charterers shall be required promptly to verify and re-confirm the request before any payment is made by Charterers to the requested bank account.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Concurrently with the execution and delivery of this charter, Charterers shall procure the issue of the Parent Guarantee in favour of Owners. If Charterers do not deliver the Parent Guarantee to Owners when required pursuant to this clause, Owners may terminate the charter without prejudice to Owners' right to claim damages from Charterers. The Parent Guarantee will remain in force and will not be prejudiced by any sub-letting or assignment of the charter by Charterers pursuant to Clause 36.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**38.** **Final Voyage** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If when a payment of hire is due hereunder, Charterers reasonably expect that Redelivery of the Vessel will take place before the next payment of hire after that one would fall due, then the hire payable shall be assessed on Charterers' reasonable estimate of the time necessary to complete Charterers' programme up to Redelivery, and from which estimate Charterers may, in addition to their deduction entitlements under Clause 37(c) (Hire Payment and Deductions), deduct amounts due, or reasonably expected to become due, for:

------

&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) disbursements on Owners' behalf or charges for Owners' account pursuant to any provision of this charter; and

&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) bunkers and Heel on board at Redelivery in accordance with Clause 22 (Quantity Determination of Bunkers and Heel).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Promptly, and in any event not later than 10 days after Redelivery, any overpayment shall be refunded by Owners or any underpayment made good by Charterers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Charterers shall not commence any final voyage which they cannot reasonably expect to complete within the maximum period of the charter. If however at the time this charter would otherwise terminate in accordance with the Period stipulated in Part I of this charter, and any extension under Clause 34(d) and (e) (Off-Hire), the Vessel is on a ballast voyage to a port of Redelivery, or is upon a laden voyage, then Charterers shall continue to have the use of the Vessel at the same rate and conditions as stated in this charter for as long as necessary to complete such ballast voyage or to complete such laden voyage and return to a port of Redelivery, as provided by this charter, as the case may be. This sub-clause (c) shall not in any way reduce Charterers' obligations in respect of Redelivery of the Vessel within the agreed Period as stated in Part I of this charter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**39.** **Taxes and Gross-Up** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to the underlying tax returns and tax assessments being timely provided by Owners to Charterers in appropriate form, all and any local, state, national or supranational taxes and/or other governmental charges and/or duties of whatsoever kind ("Taxes") assessed on or in respect of the Bunker Vessel, Owners, cargo, hire, sub-hire, sub-freight and/or any other income or sums arising in connection with Owners' performance of Charterers' instructions under this charter and/or the performance, operations, nationality or residency of Charterers (whenever assessed) shall be for Charterers' sole account, except the following Taxes ("Excluded Taxes"): (i) Taxes levied upon Owners by any tax authority in the country of the flag of the Bunker Vessel or by any tax authority in the country of Owners' legal or commercial domicile or tax residence or by any tax authority in any country in which a permanent establishment of Owners is located or (ii) Taxes relating to any costs or expenses that Owners have agreed in this charter to pay and (iii) any Tax that would not have been incurred but for (A) the failure of Owners to perform or comply with their obligations under this charter or under any applicable law, regulation or rule having the force of law, or (B) the negligence or intentional misconduct of Owners..

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) For the avoidance of doubt, and without limitation to the generality of the foregoing: (i) any Taxes payable under section 887 of the United States Internal Revenue Code of 1986, as amended (providing for US Gross Transportation Income Tax) or equivalent legislation in any other jurisdiction which is or becomes applicable to the performance of this charter, in each case levied solely as a result of the Bunker Vessel travelling through or being located in such jurisdiction in accordance with Charterers' instructions given under this charter, shall be for Charterers' account and, to the extent that Owners are held liable to pay such taxes, Charterers shall reimburse Owners subject to provision of proof of assessment and payment; and (ii) the amount of hire and any other amounts payable by Charterers under this charter are exclusive of any applicable sales, value-added or other indirect taxes, which Charterers will be required to pay if applicable. Owners agree to cooperate with Charterers to support any claim in a timely and proper manner for any applicable exemption related to the Taxes described in clause (i) of this paragraph (b).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If at any time throughout the charter period, Charterers are required to make any deduction or withholding in respect of taxes from any payment due under this charter, then the sum due from Charterers in respect of such payment shall be increased to the extent necessary to ensure that, after the making of such deduction or withholding, Owners receive on the due date for such payment (and retain, free from any liability in respect of such deduction or withholding), a net sum equal to the sum which would have been received had no such deduction or withholding been required, provided that Charterers shall have no obligation to pay any increased amount to compensate for the withholding of an Excluded Tax.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If Charterers make a gross-up payment (a "Tax Payment") under sub-clause (c) of this Clause 39 in respect of any sums paid to Owners, and should Owners be entitled to either a refund of tax or a credit against tax (a "Tax Credit") which Owners are able in their sole discretion to identify as attributable to that Tax Payment, then Owners shall reimburse Charterers such amount of that Tax Credit as will leave Charterers (after that reimbursement in Owners' sole discretion) in no better or worse position than they would have been had no Tax Payment been required. Such reimbursement will be provided to Charterers within thirty (30) days of Owners becoming entitled to the aforementioned Tax Credit. Nothing in this Clause 39(d) is intended to interfere with the right of Owners to arrange their tax affairs in whatever manner they think fit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Owners shall deliver to Charterers, before the date on which Charterers execute this charter and thereafter upon request, a properly completed and executed US Internal Revenue Service ("IRS") Form W-8BEN-E or W8ECI, whichever is applicable accurately stating Owners' status for US federal tax withholding purposes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) If Owners receive any notice or other communication from any tax authority with respect to any Tax for which Charterers are responsible under this charter, Owners shall give Charterers prompt written notice thereof and shall cooperate with Charterers in taking such action as Charterers may reasonably request to respond to the tax authority's notice or other communication, without prejudicing any of Owners' rights hereunder and subject to Charterers reimbursing Owners for any reasonable fees and expenses paid by Owners to obtain advice and services from professional tax advisors in connection with the applicable matter.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**40.** **Lien** 

Owners shall have a lien upon all cargoes and all hire (or hire under sub-charters) for any amounts due under this charter and Charterers shall have a lien on the Vessel for all monies paid in advance and not earned, and for all claims for damages arising from any breach by Owners of this charter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**41.** **Owners to Provide** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Owners shall provide and pay for:

&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) all provisions, wages, including but not limited to all overtime payments, travel costs, and all other expenses of the master, officers and crew;

&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) all liabilities for customs or import duties arising at any time during the performance of this charter in relation to the personal effects of the master, officers and crew, and in relation to the stores, provisions and other matters aforesaid which Owners are to provide and pay for. Owners shall refund to Charterers any sums Charterers or their agents may have paid or been compelled to pay in respect of any such liability;

&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) all insurance on the Vessel, except as provided in Clause 10 (Geographical Trading Limits), Clause 19 (Terminal Rules and Conditions of Use), Clause 55 (Additional War Expenses) and Clause 56 (Piracy);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) all deck, cabin and engine-room stores, and lubricating oil;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) all urea, caustic soda or other material required for exhaust gas management system or for ballast water treatment systems here fitted;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) all drydocking, overhaul, maintenance and repairs to the Vessel; (vii) all fumigation expenses and de-ratting certificates; and (viii) all communication costs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any amounts allowable in general average for wages and provisions and stores shall be credited to Charterers insofar as such amounts are in respect of a period when the Vessel is on-hire. Owners shall pay for any fuel used, including Boil-Off, in connection with a general average sacrifice or expenditure.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**42.** **Charterers to Provide** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Charterers shall provide and pay for:

&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) all fuel, which must be supplied from a bunker supplier who applies the standards required of a first-class operator, acceptable to Owners, acting reasonably. In respect of bunkers consumed for Owners purposes these will be charged to Owners on each occasion by Charterers at the Fuel Price;

&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) all Boil-Off, which in accordance with Charterers' instructions, shall be used as fuel. In respect of Boil-Off consumed for Owners' purposes Owners will be charged on each occasion by Charterers at the Charterers' realised sale price at the last port of discharge, but always subject to Clause 23(d) (Gas-Up, Cool-Down, LNG

Retention);

&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) all fuel consumed for the production of nitrogen and, where fitted, sub-cooler system, ballast water treatment system, air lubrication, exhaust gas pre or post treatment consumption (EGR, SCR, ICER, VCR or similar), or for any other systems aboard the Vessel; and]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) towage and pilotage, agency fees, port charges, commissions, expenses of loading and unloading cargoes (the vapour return compressors returning vapour from the shore during discharging shall be operated at no expense to Owners), canal dues and all charges other than those payable by Owners in accordance with Clause 41 (Owners to Provide).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The above mentioned items shall be for Owners' account in the case where such items are consumed, employed or incurred for Owners' purposes, or while the Vessel is off-hire, unless such items reasonably relate to any service given or distance made good and taken into account under Clause 34 (Off-Hire).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**43.** **Supernumeraries** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Charterers may place up to two (2) representatives on board the Vessel on any Voyage undertaken during this charter. In such case Owners shall provide accommodation, provisions and all requisites as supplied to the Vessel's Officers, except alcohol.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Charterers shall pay at the rate of United States Dollars fifty (US $50), per day for each representative whilst on board the Vessel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Owners shall ensure that all visitors to the Vessel shall receive a safety briefing and information on the parts of the safety management system relevant to their stay on board, and that all visitors shall comply with Owners' HSSE policies and procedures whilst onboard.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Charterers and their agents shall sign an "Indemnity Agreement for Boarding Vessel" in the format shown in Appendix B (Indemnity Agreement for Boarding Vessel), in order to obtain permission to board the Vessel.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**44.** **Insurance and ITOPF** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) It is a condition of this charter that the Vessel is now, and will throughout the duration of the charter:

&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) be owned or demise chartered by a member of the International Tanker Owners Pollution Federation Limited ("ITOPF");

&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) be properly entered in the Protection and Indemnity ("P&I") Club as shown in Part II (LNG Form B), being a member of the International Group of P&I Clubs;

&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) have in place insurance cover for oil pollution for the maximum limit provided by a full entry with an International Group of P&I Clubs' member but always to a minimum of United States Dollars one thousand million (US$1,000,000,000);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) have in full force and effect Hull and Machinery ("H&M") insurance on Institute Time Clauses, or their equivalent, to a value as would be procured by a first-class vessel operator of similar such vessels and covering the value of the Vessel against physical loss or damage, including collision liability and including coverage for perils of the sea, fire, explosion, piracy, and other customary risks;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) have in place H&M and P&I War Risk insurance each to the value of the Vessel; and

Owners shall promptly provide, following a request from Charterers to do so, documented evidence of compliance with this Clause 44.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Charterers shall have in place, and provide evidence of same if so requested, third party liability insurance. The insurance shall be in place before the commencement of this charter, and remain so throughout the performance of this charter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) All of the insurance policies that each Party is required to maintain (or cause to be maintained) under this Clause 44 shall, to the extent of the liabilities and indemnities assumed by such Party, be primary and not seek contribution to any other insurance coverage maintained by the other Party or the Persons whom such Party is required to indemnify hereunder, and will be endorsed to include a waiver of any right of subrogation or recourse by the insurers against the other Party and such Persons. For the avoidance of doubt, a waiver of any right of subrogation or recourse by the insurers against the other Party and such Persons shall be given only insofar as these relate to liabilities which are properly the responsibility of the assureds of the relevant insurers under the terms of this charter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) For clarity, notwithstanding any other provision in this Clause 44, nothing in this Clause 44 and no insurance obtained by Owners shall relieve or be construed to relieve Charterers, Charterers' Affiliates, or anyone for whom Charterers or their Affiliates' are responsible, from any claims, damages or liabilities for which they are legally at fault.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**45.** **ISPS Code and United States MTSA 2002** 

This Clause 45 makes reference to the International Ship and Port Facility Security Code and the relevant amendments to Chapter XI of SOLAS ("ISPS Code") and the US Maritime Transportation Security Act 2002 ("MTSA").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) During the currency of this charter Owners shall procure that both the Vessel and "the company" (as defined by the ISPS Code) and the "owner" (as defined by the MTSA) shall comply with the requirements of the ISPS Code (including all requirements related to AIS (Automatic Identification System) equipment and reporting) relating to the Vessel and "the company" and the requirements of MTSA relating to the Vessel and the "owner". Upon request Owners shall provide documentary evidence of compliance with this subclause (a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Except as otherwise provided in this charter, loss, damage, expense or delay, caused by failure on the part of Owners or "the company"/"owner" to comply with the requirements of the ISPS Code or MTSA or this Clause 45, shall be for Owners' account.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Charterers shall provide Owners with their full style contact details and shall ensure that the contact details of all sub-charterers, where sub-letting is permitted in accordance with Clause 36 (Sub-Letting, Assignment, Novation), are likewise provided to Owners and to the master. Except as otherwise provided in this charter, any loss, damage, expense or delay caused by failure on the part of Charterers to comply with this sub-clause (c) shall be for Charterers' account.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Notwithstanding anything else contained in this charter, costs or expenses related to security regulations or measures required by a port facility or any relevant authority in accordance with the ISPS Code/MTSA including, but not limited to, security guards, launch services, tug escorts, port security fees or inspections shall be for Charterers' account, unless such costs or expenses result solely from Owners' Group's negligence or non-compliance with the ISPS Code or the MTSA, in which case such costs or expenses shall be for Owners' account. All measures that Owners are obliged to take in order to comply with the security plan required by the ISPS Code or MTSA shall be for Owners' account.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Notwithstanding any other provision of this charter, the Vessel shall not be off-hire where there is a loss of time caused by Charterers' failure to comply with the ISPS Code or MTSA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) If either Party makes any payment which is for the other Party's account according to this Clause 45, the other Party shall indemnify the paying Party.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**46.** **Bills of Lading** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The master (though appointed by Owners) shall be under the orders and direction of Charterers as regards employment of the Vessel, agency and other arrangements, and shall sign Bills of Lading as Charterers or their agents may direct, subject always to Clause 50 (Export Restrictions), Clause 51 (Trade Controls) and Clause 54(a) (War Risks), without prejudice to this charter. Charterers hereby indemnify Owners against all consequences or liabilities that may arise:

&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) from signing Bills of Lading in accordance with the directions of Charterers or their agents, to the extent that the terms of such Bills of Lading fail to conform to the requirements of this charter, or, except as provided in sub-clause (b) below, from the master otherwise complying with Charterers' or their agents' orders; and

&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) from any irregularities in papers supplied by Charterers or their agents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If Charterers by email, or other form of written communication that specifically refers to this Clause 46, request Owners to discharge a quantity

of cargo either without Bills of Lading or at a discharge place other than that named in a Bill of Lading or that is different from the Bill of Lading quantity, then Owners shall discharge such cargo in accordance with Charterers' instructions in consideration of receiving the following indemnity, which shall be deemed to be given by Charterers on each and every such occasion, and which is limited in value to two hundred percent (200%) of the delivered value of the cargo carried on board:

&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) Charterers shall indemnify Owners and Owners' servants and agents in respect of any liability, loss, or damage of whatever nature (including legal costs as between attorney or solicitor and client and associated expenses), which Owners may sustain by reason of delivering such cargo in accordance with Charterers' request;

&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) if any proceeding is commenced against Owners or any of Owners' servants or agents in connection with the Vessel having delivered cargo in accordance with such request, Charterers shall provide to Owners or any of Owners' servants or agents, from time to time on demand, sufficient funds to defend the said proceedings;

&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) if the Vessel or any other vessel or property belonging to Owners should be arrested or detained, or if the arrest or detention thereof should be threatened, by reason of discharge in accordance with Charterers' instruction as aforesaid, Charterers shall provide on demand such bail or other security as may be required to prevent such arrest or detention or to secure the release of such vessel or property. Charterers shall indemnify Owners in respect of any loss, damage or expenses caused by such arrest or detention whether or not same may be justified;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Charterers shall, if called upon to do so at any time while such cargo is in Charterers' possession, custody or control, redeliver the same to Owners;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) as soon as all original Bills of Lading for the above cargo, which name as discharge port the place where delivery actually occurred, shall have arrived or come into Charterers' possession, Charterers shall produce and deliver the same to Owners whereupon

Charterers' liability hereunder shall cease.

Provided however, if Charterers have not received all such original Bills of Lading by 24:00 hours Coordinated Universal Time ("UTC") on the day thirty-six (36) calendar months after the date of discharge, then this indemnity shall terminate at that time unless before that time Charterers have received from Owners written notice that:

aa) some person is making a claim in connection with Owners delivering cargo pursuant to Charterers' request or,

bb) legal proceedings have been commenced against Owners or carriers, or Charterers, or any of their respective servants or agents, or the Vessel, for the same reason.

When Charterers have received such a notice, then this indemnity shall continue in force until such claim or legal proceedings are settled. Termination of this indemnity shall not prejudice any legal rights a Party may have outside of this indemnity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) Owners shall promptly notify Charterers if any person (other than a person to whom Charterers ordered cargo to be delivered) claims to be entitled to such cargo or if the Vessel or any other property belonging to Owners is arrested by reason of any such discharge of cargo; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) this indemnity shall be governed and construed in accordance with English law and each and any dispute arising out of or in connection with this indemnity shall be subject to the jurisdiction of the High Court of Justice of England.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Owners warrant that the master will comply with orders to carry and discharge against one or more Bills of Lading from a set of original negotiable Bills of Lading should Charterers so require.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If required by customs, or any other authority, Charterers will provide Owners, at their request, and to the extent of Charterers' knowledge, with a declaration of final cargo destination with respect to cargo discharged or to be discharged, as the case may be, by STS transfer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**47.** **Clause Paramount** 

Charterers shall procure that all Bills of Lading issued pursuant to this charter shall contain the following:

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to sub-clause (b) or (c) below, this Bill of Lading shall be governed by, and have effect subject to, the rules contained in the International Convention for the Unification of Certain Rules relating to Bills of Lading signed at Brussels on 25th August 1924 (hereafter the "Hague Rules") as amended by the Protocol, signed at Brussels on 23rd February 1968 (hereafter the "Hague-Visby Rules"). Nothing contained herein shall be deemed to be either a surrender by the carrier of any of his rights or immunities or an increase of any of his responsibilities or liabilities under the Hague-Visby Rules.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If there is governing legislation which applies the Hague Rules compulsorily to this Bill of Lading, to the exclusion of the Hague-Visby Rules, then this Bill of Lading shall have effect subject to the Hague Rules. Nothing therein contained shall be deemed to be either a surrender by the carrier of any of his rights or immunities or an increase of any of his responsibilities or liabilities under the Hague Rules.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If there is governing legislation which applies the United Nations Convention on the Carriage of Goods by Sea 1978 (hereafter the "Hamburg Rules") compulsorily to this Bill of Lading, to the exclusion of the Hague-Visby Rules, then this Bill of Lading shall have effect subject to the Hamburg Rules. Nothing therein contained shall be deemed to be either a surrender by

the carrier of any of his rights or immunities or an increase of any of his responsibilities or liabilities under the Hamburg Rules.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If any term of this Bill of Lading is repugnant to the Hague-Visby Rules or Hague Rules or Hamburg Rules as applicable, then such term shall be void to that extent but no further.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Nothing in this Bill of Lading shall be construed as in any way restricting, excluding or waiving the right of any relevant party or person to limit his liability under any available legislation or law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**48.** **Electronic Bills of Lading** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Notwithstanding anything contained in this charter, Charterers may, at their sole discretion, require Owners to issue and sign in electronic form, and transmit electronically, any Bill of Lading to be issued pursuant to Clause 46 (Bills of Lading), provided that the system employed must at all times be one acceptable to the International Group of P&I Clubs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) It is expressly agreed that any applicable requirement of law, contract, custom or practice that any Bill of Lading issued pursuant to this charter shall be made or evidenced in writing, signed or sealed, shall be satisfied by such electronic form, and the Parties agree not to contend, in any dispute arising out of or in connection with any such electronic form, or any electronic form which has been converted to paper, that such is invalid on the grounds that it is not in writing or that it is not equivalent to an original paper document signed by hand, or, as the case may be, sealed.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**49.** **Exceptions** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Vessel, her master and Owners shall not, unless otherwise in this charter expressly provided, be liable for any loss or damage or delay or failure arising or resulting from any act, neglect or default of the master, pilots, mariners or other servants of Owners in the navigation or management of the Vessel, fire, unless caused by the actual fault or privity of Owners, collision or stranding, dangers and accidents of the sea, explosion, bursting of boilers, breakage of shafts or any latent defect in hull, equipment or machinery, provided, however, that Clause 1 (Description and Condition of Vessel), Clause 2 (Duty to Maintain), Clause 3 (Shipboard Personnel), Clause 4 (Safety Management), and Part II (LNG Form B) hereof shall be unaffected by the foregoing. Further, neither the Vessel, her master or Owners, nor Charterers shall, unless otherwise in this charter expressly provided, be liable for any loss or damage or delay or failure in performance hereunder arising or resulting from act of God, act of war, seizure under legal process, quarantine restrictions, strikes, lock-outs, riots, restraints of labour, civil commotions or arrest or restraint of princes, rulers or people.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Vessel shall have liberty to sail with or without pilots, to tow or go to the assistance of vessels in distress and to deviate for the purpose of saving life or property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Sub-clause (a) above shall not apply to, or affect any liability of, Owners or the Vessel or any other relevant person in respect of:

&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) loss or damage caused to any berth, jetty, dock, dolphin, buoy, mooring line, pipe loading and discharging arms, or crane or other works or equipment whatsoever at or near any place to which the Vessel may proceed under this charter, whether or not such works or equipment belong to Charterers; or

&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) any claim (whether brought by Charterers or any other person) arising out of any loss of or damage to or in connection with cargo. Any such claim shall be subject to the Hague-Visby Rules or the Hague Rules or the Hamburg Rules, as the case may be, which ought, pursuant to Clause 47 (Clause Paramount) hereof, to have been incorporated in the relevant Bill of Lading (whether or not such Rules were so incorporated) or, if no such Bill of Lading is issued, to the Hague-Visby Rules unless the Hamburg Rules compulsorily apply, in which case such claim shall be subject to the Hamburg Rules.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) In particular and without limitation, the foregoing sub-clauses (a) and (b) of this Clause 49 shall not apply to, or in any way affect any provision in this charter, relating to off-hire or to reduction of hire or Boil-Off or bunkers consumed during periods of off-hire.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**50.** **Export Restrictions** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The master shall not be required or bound to sign Bills of Lading for the carriage of cargo to any place to which export of such cargo is prohibited under the laws, rules or regulations of the country in which the cargo was produced or shipped.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Charterers shall procure that all Bills of Lading issued under this charter shall contain the following clause:

"If any laws rules or regulations applied by the government of the country in which the cargo was produced or shipped, or any relevant agency thereof, impose a prohibition on export of the cargo to the place of discharge designated in or ordered under this Bill of Lading, carriers shall be entitled to require cargo owners forthwith to nominate an alternative discharge place for the discharge of the cargo, or such part of it as may be affected, which alternative place shall not be subject to the prohibition, and carriers shall be entitled to accept orders from cargo owners to proceed to and discharge at such alternative place."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The foregoing provision shall apply mutatis mutandis to this charter, the references to a Bill of Lading being deemed to be references to this charter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**51.** **Trade Controls** (a) General:

Owners and Charterers confirm that they are knowledgeable about Trade Controls Laws applicable to the performance of this charter including the list of Restricted Parties. Owners and Charterers shall comply with all applicable Trade Controls Laws in the performance of this charter and in particular Owners and Charterers shall not, and shall procure that their contractors and agents shall not, do anything which is inconsistent with or which may cause the other Party to be in breach of (or expose such Party to punitive measures) under, Trade Controls Laws.

Each Party represents and warrants that no person assigned by it to perform any material part of its obligations under this charter is: (i) ordinarily resident in, or exclusively a citizen of, countries or territories subject to comprehensive sanctions and/or export restrictions under Trade Controls Laws (collectively, "Sanctioned Countries")), except that this representation and warranty will not apply to the masters, officers or crew of the Vessel; (ii) included on any of the restricted party lists maintained under Trade Controls Laws, including but not limited to the Specially Designated Nationals ("SDN") List, Sectoral Sanctions Identification ("SSI") List, the Non-SDN Menu-Based Sanctions ("NS-MBS") List, and Foreign Sanctions Evaders List maintained by OFAC, the Entity List, Unverified List or Denied Persons List maintained by BIS, United Nations Consolidated List, the European Union Consolidated List, the Her Majesty's Treasury Consolidated List, or the Australia Foreign Affairs Consolidated List; or (iii) owned (individually or in the aggregate at 50% or greater level) or controlled, directly or indirectly, by, or acting on behalf of, any individual, entity that is described in (i) or (ii) above. In performance of this charter, neither Party will use products, commodities, materials or other supplies sourced, manufactured in or otherwise obtained directly or indirectly, in whole or in part, from or through (A) Sanctioned Countries, (B) any Restricted Party, or (C) a person described in subsections (i)-(iii) above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Territorial Restrictions:

------

Charterers shall not use the Vessel to export, re-export, transfer divert, trade, ship, import, transport, store, sell, deliver or re-deliver any cargo on-board to a Restricted Jurisdiction or a Restricted Party, unless specifically authorised to do so in writing by Owners.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Limitation of Liability:

Notwithstanding anything to the contrary herein, nothing in this charter is intended, and nothing herein should be interpreted or construed, to induce or require either Party to act or refrain from acting (or agreeing to act or refrain from acting) in any manner which is inconsistent with, penalized or prohibited under Trade Controls Laws applicable to such Party or which, in the reasonable judgement of Owners (or in the reasonable judgement of Owners' insurers) would expose the Vessel to any applicable sanction or prohibition imposed under Trade Controls Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Suspension/Termination:

Owners and Charterers shall not be obliged to perform any obligation under this charter and shall not be liable for damages or costs of any kind (including but not limited to penalties) for any delay or non-performance and either Owners or Charterers may terminate this charter at any time upon written notice to the other, if in their reasonable judgment supported by credible evidence that such performance would be in violation of or inconsistent with, or would expose them to any negative consequences under Trade Controls Laws. The timing of this entitlement (which shall be at the non-breaching Party's discretion) is either:

&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) with immediate effect at any time prior to commencement of

loading; or

&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) if the laden voyage has not been completed and the cargo discharged, then once the laden voyage has been completed and the cargo discharged.

This right shall be without prejudice to any other rights the non-breaching Party may have in respect of such breach.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Charterers shall procure that this Clause 51 shall be incorporated into any sub-charters permitted under this charter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**52.** **Requisition** 

Should the Vessel be requisitioned by any government, de facto or de jure, during the period of this charter then the Vessel shall be off-hire during the period of such requisition, and any hire paid by governments in respect of such requisition period shall be for Owners' receipt. Any such requisition period shall count as part of the charter period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**53.** **Outbreak of War** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If war or hostilities break out between any two or more of the following countries: United States of America, The Russian Federation, People's Republic of China, United Kingdom, Canada, the flag state or country of registry of the Vessel, then either Party shall have the right to cancel this charter, provided that such war or hostilities materially and adversely affect the trading of the Vessel for a period of at least 10 (ten) days.<sup></sup>

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If the Vessel's flag state becomes engaged in hostilities, and Charterers in consequence of such hostilities find it commercially impracticable to employ the Vessel, they may give Owners written notice thereof. In such case, then from the date of receipt by Owners of such notice, until the termination of such commercial impracticability, the Vessel shall be off-hire. Owners shall have the right to employ the Vessel on their own account during this period. Any such period shall count as part of the charter period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**54.** **War Risks** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The master shall not be required or bound to sign Bills of Lading for any place which in his or Owners' reasonable opinion is dangerous or impossible for the Vessel to enter or reach, owing to any blockade, war, hostilities,

warlike operations, civil war, civil commotions, revolutions, acts of piracy, acts of terrorists, acts of hostility or malicious damage.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If in the reasonable opinion of the master or Owners it becomes, for any of the reasons set out in sub-clause (a) above, or by the operation of international law, dangerous, impossible or prohibited for the Vessel, or Owners through their use of the Vessel, to reach or enter or to load or discharge cargo at any place to which the Vessel has been ordered pursuant to this charter (a "Place of Peril"), then Charterers or their agents shall be immediately notified in writing, email, or by radio message and Charterers shall thereupon have the right to order the cargo, or such part of it as may be affected, to be loaded or discharged, as the case may be, at any other place allowed within Clause 10 (Geographical Trading Limits), provided such other place is not itself a Place of Peril. If any place of discharge is or becomes a Place of Peril then Owners shall not be required to continue to or remain at such Place of Peril. The Vessel may procced to a Safe Place and await further orders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Vessel shall have liberty to comply with any directions or recommendations as to departure, arrival, routes, ports of call, stoppages, destinations, zones, waters, delivery or otherwise whatsoever given by the government of the state under whose flag the Vessel sails, or any other government or local authority, or by any person or body acting or purporting to act with the authority of any such government or local authority, including any de facto government or local authority, or by any person or body acting, or purporting to act, as or with the authority of, any such government or local authority or by any committee or person, having under the terms of the war risks insurance on the Vessel, the right to give any such directions or recommendations. If by reason of, or in compliance with, any such directions or recommendations anything is done or is not done, such shall not be deemed a deviation. If by reason of, or in compliance with any such direction or recommendation, the Vessel does not proceed to any place of discharge to which she has been ordered pursuant to this charter, then the Vessel may proceed to any Safe Place and await further orders from Charterers.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Charterers shall procure that all Bills of Lading issued under this charter shall contain provisions equivalent to this Clause 54.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**55.** **Additional War Expenses** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If the Vessel is ordered to trade in areas where there is war (de facto or de jure), or threat of war, Charterers shall reimburse Owners for any reasonable additional insurance premiums, crew bonuses and other expenses which are reasonably incurred by Owners as a consequence of such orders, provided that Charterers are given notice of such expenses as soon as practicable and in any event before such expenses are incurred, and provided that Owners seek from their insurers a waiver of any subrogated rights against Charterers in respect of any claims by Owners under their war risk insurance arising out of compliance with such orders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any payments by Charterers under this Clause 55 will only be made against proven documentation. Any discount or rebate refunded to Owners, for whatever reason, in respect of additional war risk premium, shall be passed to Charterers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**56.** **Piracy** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If the Vessel proceeds to or through an area in which there is a current risk of piracy, verified by a competent international authority, Owners will at all times adhere to the latest version of Best Management Practices ("BMP"), including with respect to routing. Owners shall be entitled:

&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) to take reasonable preventive measures to protect the Vessel, her crew and cargo, by proceeding in convoy, using escorts, avoiding day or night navigation, adjusting speed or course;

&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) to follow any orders given by the flag state, any governmental or supra-governmental organisation; and

&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) where there is an actual, or imminent act of piracy, and only after giving Charterers reasonable advance notice of the same where practicable, to take a safe and reasonable alternative route in place of the normal direct or intended route to the next port of call, provided that such alternative route does not, in the case of the Gulf of Aden, physically extend beyond the transit of the Gulf of Aden. In such case Owners shall give Charterers reasonable advance notice of the alternative route, an estimate of time and bunker consumption, and a revised estimated time of arrival.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Subject to sub-clause (e) below, shall pay Owners' reasonable documented costs and expenses (having given Charterers notice of such expenses as soon as practicable and in any event before such expenses are incurred), in respect of any additional hull and machinery, or, if applicable, war risks insurance premiums, or additional reasonable and contractual crew costs, including crew bonus, arising out of actual or threatened acts of piracy, or any preventive or other measures taken by Owners pursuant to sub-clause (a) above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Vessel shall remain on-hire for any time lost taking the measures referred to in sub-clause (a) above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Where, notwithstanding the taking of any of the measures referred to in subclause (a) above, and where not caused by a lack of due diligence on Owners' part, and where Charterers have not exercised the option to require Owners to purchase off-hire insurance pursuant to sub-clause (e) below, the Vessel is captured by pirates, hire shall be payable at one hundred percent (100%) of the hire rate for the duration of any such capture.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Charterers shall have the option, where the Vessel is scheduled to transit the Gulf of Aden, or other areas of known piracy risk, to require Owners to either extend existing war risk insurance or purchase off-hire insurance, which in

either case shall cover loss of hire. The cost of such insurance shall be reimbursed by Charterers provided always that:

&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) Owners obtain from their insurers a waiver of any subrogated rights against Charterers in respect of any claims by Owners under the foregoing insurances arising out of compliance with Charterers' orders;

&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) the terms of cover and cost have been disclosed to, and agreed by Charterers prior to the purchase of such insurance; and

&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) that following the exercise of such option, the Vessel shall be offhire for any time lost as a result of capture by pirates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The safety and protection of the crew and the Vessel is the obligation of Owners and it is for Owners to determine the level of threat and the measures considered appropriate to discharge that obligation. If Owners deploy government-supplied military armed guards or private armed guards, then it is an express condition of this charter that Owners will, on a voyage-byvoyage basis:

&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) give Charterers advance notice of such intended deployment as soon as reasonably practicable but not less than five (5) days prior to such deployment, and throughout such voyage Owners will adhere to the responses submitted in the Vessel Security Questionnaire;

&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) confirm in advance of deployment that such deployment has been notified to Owners' P&I and war risks underwriters without objection (with evidence, satisfactory to Charterers, of Owners' exchanges with underwriters);

------

&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) ensure, in advance of and throughout any deployment, that such deployment complies with all flag state requirements, laws of the flag state, and any other applicable laws; and (iv) continue to adhere to the latest BMP.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) All reasonable costs and expenses directly associated with the deployment of government-supplied military armed guards or private armed guards or unarmed guards, shall be paid by Charterers, capped at United States Dollars one hundred thousand (US $100,000), per voyage, and subject always to Owners supplying documentary evidence of such total costs. Save as aforesaid, Owners will indemnify and hold Charterers harmless against all claims, liabilities, costs and expenses of whatever nature which arise directly in connection with the deployment of government-supplied military armed guards or private armed guards or unarmed guards.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**57.** **Loss of Vessel** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Should the Vessel be lost this charter shall terminate and hire shall cease at noon on the day of her loss. Should the Vessel be a constructive total loss this charter shall terminate and hire shall cease at noon on the day on which the Vessel's underwriters agree that the Vessel is a constructive total loss.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Should the Vessel be missing, this charter shall terminate and hire shall cease at noon on the day on which she was last heard from. Any hire paid in advance and not earned shall be returned to Charterers and, where the Parties have opted for Part I, (a) "Bunkers and Heel Bought and Sold" Owners shall reimburse Charterers for the value of the estimated quantity of bunkers on board at the time of termination, at the price paid by Charterers at the last bunkering port. In the case where the Parties have elected to reconcile bunkers under this charter as per Part I, (b) "Bunker and Heel Reconciliation", Charterers are obliged only to pay for bunkers consumed up to the time of termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Notwithstanding Clause 49 (Exceptions), if the Vessel is lost or missing Owners shall also reimburse Charterers for the value of the estimated Heel remaining on board, if any, valued at the LNG Price agreed in Part I, or if no LNG Price has been agreed in Part I, at Charterers' realised sale price at the last port of discharge.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**58.** **Salvage** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to the provisions of Clause 34 (Off-Hire), all loss of time and all expenses (excluding any damage to or loss of the Vessel or tortious liabilities to third parties), incurred in saving or attempting to save life (including the Vessel deviating for the rescue of, or delivery of, rescued persons to any safe landing), or in successful or unsuccessful attempts at salvage, shall be borne equally by Owners and Charterers provided that Charterers shall not be liable to contribute towards any salvage payable by Owners arising in any way out of services rendered under this Clause 58.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) All salvage and all proceeds from derelicts shall be divided equally between Owners and Charterers after deducting the master's, officers' and crew's share, and reimbursing the hire of the Vessel to Charterers for time lost and the cost of fuel and Boil-Off used or lost at the Fuel Price and the LNG Price shown in Part I at Redelivery respectively If no LNG Price At Redelivery has been agreed in Part I, then at Charterers' realised sale price at the last port of discharge

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**59.** **Waiting** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If the Vessel is instructed by Charterers to wait at anchorage or adrift for whatever reason, for a period exceeding twenty (20) consecutive days, Charterers shall pay for any reasonable boat service required for provisions, personnel, or similar.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**60.** **Both to Blame Collision** 

If the liability for any collision in which the Vessel is involved while performing this charter falls to be determined in accordance with the laws of the United States of America, the following provision shall apply:

If the ship comes into collision with another ship as a result of the negligence of the other ship and any act, neglect or default of the master, mariner, pilot or the servants of the carrier in the navigation or in the management of the ship, the owners of the cargo carried hereunder will indemnify the carrier against all loss, or liability to the other or non-carrying ship or her owners in so far as such loss or liability represents loss of, or damage to, or any claim whatsoever of the owners of the said cargo, paid or payable by the other or non-carrying ship or her owners to the owners of the said cargo and set off, recouped or recovered by the other or non-carrying ship or her owners as part of their claim against the carrying ship or carrier.

The foregoing provisions shall also apply where the owners, vessel operators, or those in charge of any ship or ships or objects other than, or in addition to, the colliding ships or objects are at fault in respect of a collision or contact.

Charterers shall procure that all Bills of Lading issued under this charter shall contain a provision in the foregoing terms to be applicable where the liability for any collision in which the Vessel is involved falls to be determined in accordance with the laws of the United States of America.

&nbsp;&nbsp;&nbsp;&nbsp;**61. New Jason Clause** 

General average contributions shall be payable according to York-Antwerp Rules 1994, as amended from time to time, and shall be adjusted in London in accordance with English law and practice, but should adjustment be made in accordance with the law and practice of the United States of America, the following provision shall apply:

------

In the event of accident, danger, damage or disaster before or after the commencement of a voyage, resulting from any cause whatsoever, whether due to negligence or not, for which, or for the consequence of which, the carrier is not responsible by statute, contract or otherwise, the cargo, shippers, consignees or owners of the cargo shall contribute with the carrier in general average to the payment of any sacrifices, losses or expenses of a general average nature that may be made or incurred and shall pay salvage and special charges incurred in respect of the cargo.

If a salving ship is owned or operated by the carrier, salvage shall be paid for as fully as if the said salving ship or ships belonged to strangers. Such deposit as the carrier or his agents may deem sufficient to cover the estimated contribution of the cargo and any salvage and special charges thereon shall, if required, be made by the cargo, shippers, consignees or owners of the cargo to the carrier before delivery.

Charterers shall procure that all Bills of Lading issued under this charter shall contain a provision in the foregoing terms, to be applicable where adjustment of general average is made in accordance with the laws and practice of the United States of America.

&nbsp;&nbsp;&nbsp;&nbsp;**62. Anti-Bribery and Corruption** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Owners and Charterers (either directly or through any of their Affiliates, directors, officers, employees, masters, crewmembers, agents, Technical Managers, representatives or parties acting for or on behalf of them or their Affiliates) represent, warrant, and covenant that, in connection with this charter or the business resulting therefrom, they:

&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) are aware of and will comply with any applicable Anti-Corruption Laws;

&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) whether directly or indirectly, have not made, offered, authorised, or accepted and will not make, offer, authorise, or accept any payment, gift, promise, or other advantage, to or for the use or benefit of any government official or any other person where that payment, gift, promise, or other advantage would comprise a facilitation payment or otherwise violate Anti-Corruption Laws;

&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) have maintained and will maintain adequate written policies and procedures to comply with Anti-Corruption Laws;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) have maintained and will maintain adequate internal controls, including but not limited to using reasonable efforts to ensure that all transactions are accurately recorded and reported in its books and records to reflect truly the activities to which they pertain, such as the purpose of each transaction, with whom it was entered into, for whom it was undertaken, or what was exchanged;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) will, to its knowledge, retain such books and records for the period required by applicable law or a Party's own retention policies, whichever is longer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) will, in the event that they become aware it has breached an obligation in this Clause, promptly notify the other Party, subject to the preservation of legal privilege;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) have used and will use reasonable efforts to require any subcontractors, agents, or any other third parties to also comply with the foregoing requirements in this Clause; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) will provide information (which unless publicly available will include documentary evidence) in support of the other/requesting Party's ongoing KYC process requirements, about its ownership, officers, and corporate structure (including any changes thereto).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Only a Party (and not its Affiliates or a third party) shall make payments to the other Party, except with that other Party's prior written consent. Subject to the preservation of legal privilege, during the charter and for two (2) years thereafter and on reasonable notice, each Party shall have a right, at its expense, and the other Party shall take reasonable steps to enable this right, to audit the other Party's relevant books and records with respect to compliance with this Clause.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Without limitation to any other available remedies provided in this charter, where a Party (the First Party) fails, or its subcontractors, agents, or other third parties fail, to comply with this Clause, the other Party (the Second Party), acting in good faith, shall have a right to notify the First Party in writing of such failure to comply and, if the written notice contains reasonable detail about the failure to comply then, if the failure is incapable of being cured or, if capable of cure and the First Party does not cure the failure to comply within sixty (60) calendar days following receipt of the written notice, the Second Party shall have the right to terminate the charter on further written notice to the First Party; provided that where such sixty

&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;(60) calendar days expires and the Vessel is laden and the cargo has not yet discharged at a terminal, then such termination shall take effect once that laden voyage has been completed and the cargo discharged at a terminal.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Nothing in this charter shall require a Party to perform any part of this charter or take any actions if, by doing so, the Party would not comply with AntiCorruption Laws. The obligations in this paragraph shall survive the termination or expiry of this charter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**63.** **Business Principles** Not used.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**64.** **Law and Litigation** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) This charter shall be construed and the relations between the Parties determined in accordance with the laws of England.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) All disputes arising out of this charter shall be referred to Arbitration in London in accordance with the Arbitration Act 1996 (or any re-enactment or modification thereof for the time being in force). The arbitration shall be conducted in accordance with the London Maritime Arbitrators Association (LMAA) terms current at the time when the arbitration proceedings are commenced subject to the following appointment procedure:

------

&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) the Parties shall jointly appoint a sole arbitrator not later than twenty-eight (28) days after service of a request in writing by either Party to do so;

&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) if the Parties are unable or unwilling to agree the appointment of a sole arbitrator in accordance with (i) above then each Party shall appoint one arbitrator, in any event not later than fourteen (14) days after receipt of a further request in writing by either Party to do so. The two arbitrators so appointed shall appoint a third arbitrator before any substantive hearing or forthwith if they cannot agree on a matter relating to the arbitration;

&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) if a Party fails to appoint an arbitrator within the time specified in (ii) above (the "Party in Default"), the Party who has duly appointed their arbitrator shall give notice in writing to the Party in Default that they propose to appoint their arbitrator to act as sole arbitrator;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) if the Party in Default does not within seven (7) days of the notice given pursuant to (iii) above make the required appointment and notify the other Party that they have done so, the other Party may appoint their arbitrator as sole arbitrator whose award shall be binding on both Parties as if that sole arbitrator had been so appointed by agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) any Award of the arbitrator(s) shall be final and binding and not subject to appeal; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) for the purposes of this sub-clause (b) any requests or notices in writing shall be sent by e-mail and shall be deemed received on the day of transmission.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) It shall be a condition precedent to the right of any Party to a stay of any legal proceedings in which maritime property has been, or may be, arrested in connection with a dispute under this charter, that that Party furnishes to the other Party security to which that other Party would have been entitled in such legal proceedings in the absence of a stay.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) In cases where neither the claim nor any counterclaim exceeds the sum of United States Dollars one hundred thousand (US $100,000), or such other sum as the Parties may agree, the arbitration shall be conducted in accordance with LMAA Small Claims Procedure current at the time when the arbitration proceedings are commenced.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**65.** **No Partnership or Agency** 

Nothing in this charter and no action taken by the Parties pursuant to this charter shall constitute, or be deemed to create or constitute, a trust, agency, employment relationship, joint venture, partnership, unincorporated association or other cooperative entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**66.** **Mitigation** 

Both Parties agree that each has a duty to mitigate losses, damages, costs and expenses resulting from the default, breach or negligence of the other Party.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**67.** **Construction** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If any inconsistency arises between the provisions of Part I, Part II, Part III, and Appendix A as applicable, of this charter, and in the absence of any express provision to the contrary, the order or priority for interpreting the validity and meaning of the different parts shall be:

Part I, Negotiated Chartering Terms

Part II LNG Form B

Part III Standard Chartering Terms (As Amended

Appendix A, Performance Calculations

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) This charter may be executed in two copies – one for each Party. In the event that this charter is executed in counterpart, each copy constitutes an original and both copies together constitute one and the same instrument.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**68.** **Notices** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Whenever written notices are required to be given by either Party to the other Party, such notices shall be sent by registered mail, e-mail or registered

airmail or by hand or tracked courier to the Parties as per the details completed in Part I of this charter (Notices), or to such other addresses as the Parties may respectively from time to time designate by notice in writing. Provided always that notice is given to Owners' or Charterers' primary designated address, any failure to transmit any other copy of a notice to another party listed as entitled to receive a copy of such notice, shall not in any way affect the validity of any notice otherwise properly given as provided in this Clause 68.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any notice required under this charter to be given in writing shall be deemed to be duly received only:

&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) in the case of a letter, whether delivered in course of the post or by hand or by courier, at the date and time of its actual delivery, if within normal business hours on a working day at the place of receipt, otherwise at the commencement of normal business on the next such working day; and

&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) in the case of an e-mail, at the time of transmission recorded on the message if such time is within normal business hours (09:00-17:00) at the place of receipt, otherwise at the commencement of normal business hours on the next working day at the place of receipt.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**69.** **Confidentiality** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All terms and conditions of this charter, and the negotiations that led to it, and any information provided for KYC purposes, are to remain private and confidential between the Parties and must not be communicated to any third party, except where such information is required to be disclosed by either Party:

&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) to its employees, Technical Managers, agents, brokers, auditors, insurers, lawyers and Affiliates who need to know it in connection with the negotiation or performance of this charter (collectively, "Representatives");

&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) to any court or governmental authority requiring it pursuant to proper process; or

&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) to any other appropriate third party to the extent necessary to comply with any legal or governmental requirement, including all reporting requirements (and public disclosure requirements) applicable to Charterers of the Securities and Exchange Commission.

Notwithstanding the foregoing, Owners and Charterers may announce the existence of this Charter, the parties hereto, the duration hereof in a press release (subject to agreement by the Parties on the text of any press releases).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In all cases the information disclosed shall be on such terms that, to the fullest possible extent, preserve confidentiality.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Each Party will be responsible and liable for any unauthorized use or disclosure of the other Party's confidential information by their Representatives.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**70.** **Himalaya Clause / Rights of Third Parties** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) No person falling within the Owners' Group shall in any circumstances whatsoever be under any liability whatsoever for any loss, damage or delay of any kind arising or resulting directly or indirectly from any act, neglect or default on that person's part while acting in the course of, or in connection with, the performance of this charter, howsoever caused.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Without prejudice to the generality of the foregoing, every exemption, limitation, indemnity, defence and immunity of whatsoever nature applicable to Owners or to which Owners are entitled hereunder shall also be available to and shall extend to every person falling within the Owners' Group, who shall be entitled to enforce the same against Charterers or Owners may enforce the same as agent or trustee for and on behalf of such persons.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Save pursuant to Clause 70(a), no provision of this charter shall, under the Contract (Rights of Third Parties) Act 1999, confer any benefit on, nor be enforceable by, any person who is not a Party to this charter.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**71.** **Time-Bar** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to (b) below, any claims arising under this charter must be brought by a Party within twelve (12) months of the date such Party discovered the event that gave rise to such claim (which event, in the case of any performance claim under Appendix A, shall be deemed to be the end of the relevant Performance Period or if later than the end of the Performance Period, the date on which the Parties have an agreed Speed/Consumption Table in place). Each Party is discharged and released from all liability in respect of any claim under this charter unless the claim, with all reasonable substantiating documentation, has been presented to that Party within twelve (12) months of the event that gave rise to such claim.<sup></sup>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The twelve (12) month limitation period shall not apply to any claim that arises as a direct consequence of any indemnity given pursuant to the terms of Clauses 15 (Trading to Europe EU: Advance Cargo Declaration), or 16 (Trading to the United States of America or Canada: Customs), or any claim that arises under a letter of indemnity provided under Clause 46 (Bills of Lading); and any claim subject to the Hague-Visby Rules, the Hague Rules or the Hamburg Rules, or a claim under Clause 21 (Grade of Bunkers) where the time limitations stated therein shall apply.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**72.** **Exclusion of Consequential Loss** 

Notwithstanding anything else in this charter (but subject to the final paragraph in this provision), in no circumstances shall Owners or Charterers have any liability (including without limitation, with respect to Owners, by incurring a loss or reduction of hire) for: (a) any indirect or consequential losses or damages;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any loss or deferment of profit, income, revenue or opportunity; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) with respect to Owners, any penalties, damages or other amounts payable by Charterers or their Affiliates to their customers or any other third party due to any delay, shortfall or failure to deliver by the Vessel,

in each case whether directly or indirectly incurred and irrespective of any negligence, breach of duty (whether statutory or otherwise), breach of contract, or any other failure or default on the part of Owners or Charterers or any person falling within the Owners' Group or Charterers' Group.

Each Party is also entitled to the benefit of all limitations and exceptions accorded by applicable law.

This Clause 72 will not limit or exclude Charterers' liability for payment of hire or any other fees or expenses payable by Charterers to Owners hereunder, or that would be payable but for a breach or default by Charterers, including without limitation in the event this charter is lawfully terminated by the Owners for breach or default by the Charterers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**73.** **Emissions** 

------

The Parties acknowledge that throughout the charter period, new regulations, legislation, laws, requirements, levies, taxes, fees and/or other measures of whatsoever nature and howsoever arising are likely to be imposed on the Vessel and/or one or both of the Parties (including their agents) by applicable lawful authorities of any national, regional, international, supranational or intergovernmental body in respect of: (i) the emission of carbon dioxide, greenhouse gases or harmful substances arising out of or in connection with the Vessel, its flag, design, operation, trade or cargo carried ("Emissions"); and/or (ii) which attribute a monetary value to and/or tax Emissions and/or place restrictions on Emissions and/or otherwise cap lawful quantities of or regulate the issuance, allocation or trading of Emissions via quotas / permits, allowances or similar; and/or (iii) regulations such as FuelEU Maritime (all of the foregoing together "Emissions Regulations" and individually "Emissions Regulation"). For every Emissions Regulation, the Parties shall cooperate to agree to a suitable provision to add to this charter to reflect Owners' obligation to monitor and report the relevant greenhouse gas emissions of the Vessel and Charterers' obligation to pay for the costs thereof (including, without limitation, the cost and procurement of any allowances), in each case in accordance with the requirements of the applicable Emissions Regulation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**74.** **KYC (Know Your Customer)** 

Each of Owners and Charterers acknowledge that the other Party may be required to undertake on-going KYC checks (including but not limited to credit checks) in relation to ownership, creditworthiness and any changes in ownership structure during the charter period to ensure compliance with Trade Controls Laws and Anti-Corruption Laws. Each Party shall comply with all such reasonable KYC requests for information from the other Party reasonably made from time to time relating to the above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**75.** **Definitions** 

In this charter, save where the context otherwise requires, the following words and expressions shall have the meanings respectively assigned to them in this Clause 75;

**Achieved Speed:** the actual Average Speed on any given Voyage net of all Excluded Periods.

**Affiliate:** any company which is from time to time directly or indirectly controlled by a Party. For the purposes of this charter:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) a company is directly controlled by another company or companies if that latter company beneficially owns or those latter companies together beneficially own fifty per cent (50%) or more of the voting rights attached to the issued share capital of the first mentioned company; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) a company is indirectly controlled by another company or companies if a series of companies can be specified, beginning with that latter company or companies and ending with the first mentioned company, so related that each company of the series (except the latter company or companies) is directly controlled by one or more of the companies earlier in the series.

**Anti-Corruption Laws**: shall mean (a) the United States Foreign Corrupt Practices Act of 1977; (b) the United Kingdom Bribery Act 2010; (c) the Canadian Corruption of Foreign Public Officials Act; and (d) all applicable national, regional, provincial, state, municipal or local laws and regulations that prohibit tax evasion, money laundering or otherwise dealing in the proceeds of crime or the bribery of, or the providing of unlawful gratuities, facilitation payments, or other benefits to any government official or any other person.

------

**Average Liquid Fuel Price:** the weighted average purchase price of all of bunker types for each Voyage stated in United Stated Dollars per tonne (US $/mt), including HSFO, LSFO, ULSFO, MGO, LSMGO and any other Liquid Fuels used in the boilers, main engines and auxiliary engines. Boil-Off is not included. Actual invoices shall be made available in support of any individual Liquid Fuel Price.

**Average Speed:** the speed for a given Voyage, which is calculated by taking the distance travelled divided by the duration of the Voyage. The data on distance travelled and Voyage duration of the Vessel for any specific date will be extracted from the noon reports, log abstracts or voyage summaries submitted or transmitted by the master, validated by an automated data system.

**Boil-Off:** the vapour which results from vaporisation of LNG in the cargo tanks which shall, for the purposes of this charter, be considered as pure methane (CH<sub>4</sub>), subject to evidence of nitrogen being present.

**Bunkering Operations:** has the meaning given in Clause 1(b).

**Business Day:** any day on which banks are normally open in New York, New York, Houston, Texas and Vancouver, British Columbia.

**Cabotage Services**: has the meaning given in Clause 10(a).

**Cargo Capacity**: the maximum safe LNG loading limit of the Vessel as per Part II (LNG Form B) table 8, "Cargo Tanks (b) Capacity of LNG tanks at normal filling level".

**Certificate of Financial Responsibility:** a certificate of financial responsibility as required by the US Oil Pollution Act 1990.

**Charterers**' **Group:** means (i) Charterers' Affiliates; (ii) any contractors, customers and subcontractors (of any tier) of Charterers or their Affiliates; and (iii) the directors, officers and employees of Charterers or any person falling within (i) or (ii).

**Conditions of Use:** (also known as **Port Liability Agreement**): a form of indemnity that a terminal will require the master of the Vessel to sign that includes certain conditions, obligations, and liabilities that apply whilst the Vessel is at that terminal.

**Cool-Down:** the process by which LNG is sprayed into cargo tanks that have a methane or nitrogen atmosphere with the aim of attaining a cargo temperature such that LNG can be safely loaded, and according to the Vessel builders' recommended highest temperature that would permit cargo to be loaded.

**CTMS:** A Custody Transfer Measurement System, providing level, temperature, pressure and volume measurement of the LNG cargo.

**Daily Fuel Consumption:** the consumption of all the fuels including Boil-Off, and all kinds of Liquid Fuels, or any other fuel consumed by the Vessel during laden or ballast Voyages, for a given period of twenty-four (24) hours measured from noon to noon.

------

**Delivery:** delivery of the Vessel from Owners to Charterers pursuant to the terms of this charter.

**DLOP:** Dropping Last Outward Pilot.

**DOP:** Dropping Outward Pilot.

**Effective Boil-Off:** the rate of Boil-Off from the cargo or Heel that is within the design expectation of the Vessel builder and containment manufacturer using any Boil-Off management equipment. This is guaranteed by Owners to be no more per day than that entered in Part I and Part II of this charter, Effective Boil-Off, EBOG column in respect of each of the following conditions: Max Gas Laden, Min. Gas Laden, Min. Gas Ballast and Fuel (to include fuel oil or gas oil or any Liquid Fuel) (the "**Effective Boil-Off Values**"). It includes net Boil-Off where the initial rate of Boil-Off is reduced due to the use of a sub-cooler system or similar. ****

**Environmental Damage:** means the discharge, release or emission of, or contamination by, any substance or material which may cause damage to any living organism, land (including the sea or riverbed), water or air or any structures including but not limited to a spillage of oil or cargo on deck or into water, or releasing or venting of hydrocarbons.

**EOP:** the time at which the Vessel records End of Passage on arrival at Pilot Boarding Station, or normal waiting area of a port after any Voyage.

**Excluded Periods:** the periods where the Vessel is ordered to proceed outside of the range of Guaranteed Speeds, or where any of the exceptions in Appendix A (Performance Calculations), and Article 2 (Ordered Speed), apply.

**FAOP:** the time at which the Vessel records Full Away On Passage from Dropping Outward Pilot or other appropriate departure point on a Voyage.

**FOE, Fuel Oil Equivalent:** the heating value equivalent that one metric tonne of fuel oil has to the heating value of one cubic metre (m<sup>3</sup>) of Boil-Off in its liquid state. For all purposes throughout this charter the Boil-Off shall be assumed to be pure methane (CH<sub>4</sub>). Cubic metres of Boil-Off multiplied by Fuel Oil Equivalent Factor shall equal a deemed equivalent of fuel oil in metric tonnes.

m<sup>3</sup> BO x FOE Factor = MT FO

BO =Boil-Off

FOE Factor =Fuel Oil Equivalent Factor

**FOE Factor** (**Fuel Oil Equivalent Factor**): the numeric value that shall be equal to methane density in the liquid state, multiplied by the lower (or net) methane heating value and divided by the fuel oil lower (or net) heating value. The heating value shall be measured in megajoules.

Factor = <u>419.8 Kg m3 x 50.035 MJ Kg FOE</u> <br> / <br> FO LHV, MJ Kg x 1000 Where:

419.8 = density of pure liquid methane in kilogrammes per cubic metre (m<sup>3</sup>) at minus one hundred and fifty-nine point five degrees Celsius(-159.5ºC) using the revised Klosek-McKinley method, the physical constants from ISO 6976:2005 and ISO 6578:1991, and an observed temperature of 159.5ºC.

------

---

| | |
|:---|:---|
| 50.035 | = lower heating value of pure liquid methane at fifteen degrees Celsius (15ºC) in megajoules per kilogramme as specified in ISO 6976:2005 (table G.2). |
| FO | = fuel oil for the Voyage in question. This may be substituted by marine gas oil with the respective heating value. |
| LHV | = applicable lower heating value in megajoules per kilogramme, as set out against the relevant FO in the definitions of Fuel Heating Values. |

---

**Force Boil-Off:** a condition where the Vessel's staff uses the Vessel's equipment to increase the Boil-Off rate over above the Natural Boil-Off rate. Charterers have the right to order the Vessel to undertake any period of steaming or a Voyage with Force Boil-Off where it is safe to do so.

**FLNG:** means a Floating Liquified Natural Gas unit where LNG is produced on a permanently moored offshore structure and offloaded to trading LNG carriers.

**FSRU:** means a Floating Storage and Regasification Unit which is permanently moored and LNG is received from trading LNG carriers, stored and regasified before it is sent ashore to feed a natural gas grid or power plant.

**FSU:** means a Floating Storage Unit which is permanently moored and LNG is received from trading LNG carriers and stored onboard until it is transferred to a regasification facility.

**Fuel:** means collectively its two components, fuel oil and Boil-Off, measured in tonnes of Fuel Oil Equivalent (FOE), while "fuel oil" refers only to the oil component of Fuel. Further, where it is specified and warranted in Part II (LNG Form B) that the Vessel uses marine gas oil for main propulsion (but not as a pilot fuel), this is to be considered Fuel or fuel oil for the purposes of calculating the applicable FOE and performance calculations under Appendix A.

**Fuel Consumption Values**: means the values comprising Total Fuel Consumption as referred to in the fuel consumption tables in Part II (LNG Form B) table 6, "Speed/Consumption" of this charter.

**Fuel Heating Values**: in the formula above, under "FOE Factor", the following heating values shall be used for LHV calculation:

---

| | |
|:---|:---|
| **Fuel**  | **Mj/Kg**  |
| HFO | 40.2 |
| LSF | 41 |
| VLSFO | 41.025 |
| MGO | 42.71 |
| MDO | 42.7 |
| LSMGO | 42.8 |

---

**Fuel Price:** the price to be paid for all Liquid Fuels on board in United States Dollars as stated in Part I of this charter. In lieu of any such price being there agreed, the LIFO principle of "Last-In, First-Out" shall apply: the invoiced price of the most recently bunkered fuels, excluding LNG, shall be used such that the quantity of the most recently bunkered fuel shall be considered as used first and the fuel bunkered earliest used last. The price for fuels paid by one Party to the other shall be adjusted accordingly in order to arrive at the Fuel Price, which shall be stated in United States Dollars per metric tonne (US $/mt).

------

**Fuel Price at Delivery**: for the purposes of pricing Liquid Fuels at Delivery under Part I of this charter ((a) Bunkers and Heel Bought and Sold), and in lieu of any Fuel Oil Price being agreed therein, then the methodology described above in "Fuel Price" shall apply to mean the LIFO cost of all Liquid Fuels on board at the time of Delivery.

**Fuel Price at Redelivery**: for the purposes of pricing Liquid Fuels at Redelivery under Part I of this charter ((a) Bunkers and Heel Bought and Sold), and in lieu of any Fuel Oil Price being agreed therein, then the methodology described above in "Fuel Price" shall apply to mean the LIFO cost of all Liquid Fuels on board at the time of Redelivery.

**Gas-Free:** a condition where the Vessel's cargo tanks are free of all natural gas vapour and under an atmosphere of inert gas, being either nitrogen gas, or flue gas generated by the Vessel, or air.

**Gas Only:** a speed order requiring the Vessel to proceed at the speed that results from using only Natural Boil-Off in the Vessel's boilers or engines**.** 

**Gas-Up:** the process by which an inerted atmosphere in cargo tanks is replaced with a methane atmosphere to a sufficient concentration such that a Cool-Down can take place.

**Government:** in respect of any country: (i) any supranational, national, regional, state, municipal, local or other government; (ii) any subdivision, agency, commission or authority thereof, including any port authority; or (iii) any quasi-governmental organisation, in each case acting within its legal authority.

**Gross Capacity of LNG Tanks:** the capacity of the Vessel's LNG tanks referred to in Part II (LNG Form B) table 8, "Cargo Tanks (c) Gross Capacity of LNG tanks at 100%". This value is irrespective of Vessel's actual filling limits.

**Guaranteed Fuel Consumption:** the contractual maximum daily tonnes of Fuel that may be consumed by the Vessel which are to be used in, and as, calculated in accordance with Article 4 of Appendix A (Performance Calculations).

**Guaranteed Periods**: all the periods in any Voyage which are not Excluded Periods and are used to measure Guaranteed Fuel Consumption.

**Guaranteed Service Speed:** the Laden Speed in knots or the Ballast Speed in knots as set out in Part I of this charter (Performance Insertions).

**Guaranteed Speed:** any Ordered Speed that is listed with a corresponding fuel consumption in Part II (LNG Form B) table 6, "Speed/Consumption", including all incremental speeds between such listed speeds.

**Heel:** LNG cargo retained in the cargo tanks on completion of discharge sufficient to allow the Vessel to remain cold for the anticipated ballast passage.

**ICS:** International Chamber of Shipping.

**IMO:** International Maritime Organization.

**KYC:** the process of identifying and verifying the identity of a party (Know Your Customer).

------

**Liquid Fuel Consumption:** the sum of consumption of all Liquid Fuels.

**Liquid Fuel Price**: the price of actual Liquid Fuel consumed by the Vessel during a Performance Period as provided in Article 7 of Appendix A.

**Liquid Fuels:** all the HSFO, LSFO, ULSFO, MGO, LSMGO and any other liquid fuels consumed in boilers, main engines and auxiliary engines. The definition excludes Boil-Off.

**LNG:** natural gas liquefied by cooling and which is in a liquid state at or near atmospheric pressure.

**LNG Price:** means LNG Price at Redelivery save: (i) where a term of the charter specifies an alternative method; or (ii) as per Appendix A (Performance Calculation).

**LNG Price at Delivery**: means the price payable by Charterers for the Heel on the Vessel at the time of Delivery, as stated in Part I of this charter (LNG Price).

**LNG Price at Redelivery:** means, unless otherwise stated in Part I of this charter and save as otherwise provided in Article 7(b)(ii) (Pricing) of Appendix A (Performance Calculation), the ex-ship price of LNG in United States Dollars/Mmbtu (US $/Mmbtu), at the last port where the LNG was discharged prior to Redelivery of the Vessel, based upon the composition of LNG as measured at that final discharge port. No contractual price formula for the derivation underlying that price is to be shared between the Parties.

**MARPOL:** International Convention for the Prevention of Pollution from Ships, including all protocols and annexes thereto, as promulgated by the IMO.

**Mmbtu**: one (1) million British Thermal Units.

**Natural Boil-Off:** the rate of Boil-Off from the cargo or Heel that is within the design expectation of the Vessel builder and containment manufacturer, expressed as a percentage of the gross tank capacity, and is guaranteed by Owners to be no more per day than that entered into Part I of this charter, (Performance Insertions) "Maximum Daily Boil-Off Rate". This excludes any period where the Vessel is ordered to Force Boil-Off.

**OCIMF:** Oil Companies International Marine Forum.

**Ordered Speed:** has the meaning given in Article 1 (Guaranteed Speed) or deemed by Article 2 (Ordered Speed) in Appendix A (Performance Calculations).

**Owners**' **Group:** means (i) Owners' Affiliates; (ii) the Technical Managers and any other contractors and subcontractors (of any tier) of Owners or their Affiliates; (iii) the directors, officers and employees of Owners or any person falling within (i) or (ii); and (iv) to the extent not already included in the foregoing, the master, officers and crew of the Vessel.

**Parent Guarantee:** a guarantee from Charterers' parent company, Stabilis Solutions, Inc., guaranteeing the performance of Charterers' obligations under the charter, in the form attached to Part I.

**Party:** means either the Owners or the Charterers, as applicable, and **Parties** means Owners and Charterers.

**Performance Period:** means:

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) for charters where the period is less than one year in total, the whole period of the charter;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) where the charter period is greater than one year the Performance Period shall mean a period of 12 months with a tolerance to allow the next cargo discharge after a 12 month period to be included, such that any Performance Period shall only include whole Voyages and shall end on completion of a cargo discharge; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) where applicable, the period from the end of the last Performance Period to Redelivery of the Vessel.

**Performance Period Calculation:** the sum of the claim value of all the Voyages in the Performance Period.

**Personal Data:** means information related to an identified, or directly or indirectly identifiable individual.

**Place of Operation:** lawful trades as an LNG bunker vessel for international shipping worldwide provided that the Vessel may not trade to, from, or within, any ports on (i) the west coast of Canada, (ii) the west coast of the United States and/or (iii) the west coast of Mexico, and otherwise subject to the terms and conditions of this charter. 

**Primary Terminal:** has the meaning given in Clause 9(b).

**Receiving Vessel:** has the meaning given in Clause 9(b).

**Redelivery:** redelivery of the Vessel from Charterers to Owners pursuant to the terms of this charter.

**Restricted Jurisdiction:** means a country, state, territory, or region which is subject to comprehensive economic or trade restrictions under Trade Controls Laws applicable to either Party to the charter as of the date of this charter or coming into force during the duration of this charter. Restricted Jurisdictions as at the date of this charter include Russia, Cuba, Crimea and Sevastopol and other non-government-controlled territories of Ukraine, Iran, North Korea, and Syria. It is Owners and Charterers' responsibility to remain aware of such restrictions at all times during the duration of this charter.

**Restricted Party:** means any individual, legal person, entity or organisation: (i) targeted by national, regional or multilateral trade or economic sanctions under Trade Controls Laws; or (ii) directly or indirectly owned or controlled or acting on behalf of such persons, entities or organisations and including their directors, officers or employees.

**Safe Places**: has the meaning given in Part III Clause 9(a) (Safe Places and Compatibility).

**Service Speed:** shall mean the guaranteed applicable speed shown in Part I of this charter (Performance Insertions), "Guaranteed Service Speed".

**SIGTTO:** Society of International Gas Tanker and Terminal Operators.

**SIRE:** a ship inspection report from the Ship Inspection Report Programme run by OCIMF.

------

**SOFR:** means the Secured Overnight Financing Rate of the Federal Reserve Bank of New York, (or a successor administrator) published period average for the period closest in duration to the late payment period, as published on the Federal Reserve Bank of New York's Website five (5) days before the date that payment in full is made. In the event the period average is not published on any calendar day, the period average published on the preceding Business Day shall be used. If the Federal Reserve Bank of New York ceases to publish a period average, the annual SOFR rate will be calculated by compounding in arrears the SOFR rate during the late payment period, with a five (5) business day lookback. If SOFR is negative for any calculation period, it shall be treated as zero for such period.

**SOLAS:** International Convention for the Safety of Life at Sea, 1974, and the related Protocol of 1978, both as supplemented by amendments entering into force from time to time, and as promulgated by the IMO.

**Sulphur Content Requirements:** means any sulphur content and related requirements as stipulated in MARPOL Annex VI (as amended from time to time) or by any other applicable lawful authority.

**Technical Managers (or Managers):** such person or party as may be appointed by Owners and approved by Charterers to maintain the Vessel, her machinery and equipment, and to ensure the Vessel is correctly and competently manned, such that the Vessel is able to comply with the terms of this charter. This person or party may be Owners or contracted by Owners.

**Time:** in the sense of a period of time: All references to time in this charter party in this sense shall mean actual net time irrespective of the differences between time zones or local time differences.

**Time:** in the sense of a point in time: All references to "time" in this charter party shall be references to local time except where otherwise stated.

**Terminal Rules:** all the rules and regulations, which may include Conditions of Use, applicable at loading or discharge ports, as issued by either the proper port authorities or by the terminal operator acting as a reasonable and prudent operator.

**Trade Controls Laws**: means any applicable trade or economic sanctions or embargoes, Restricted Party lists, controls on the imports, export, re-export, use, sale, transfer, trade, or otherwise disposal of goods, services or technology, anti-boycott legislation or similar laws or regulations, rules, restrictions, licences, orders or requirements in force from time to time, including without limitation those of the United Nations, the European Union, the United Kingdom, the United States of America or other government laws applicable to a Party to the charter.

**Transport of Cargo:** has the meaning given in Clause 1(b).

**Vessel Operator:** the same meaning as Technical Managers.

**Voyage:** a voyage, or sea passage, steamed by the Vessel from FAOP to EOP, subject to the caveat in Appendix A, Article 2(a)(ii) (Ordered Speed), which allows for the subdivision of a Voyage into separate legs, and except for the purposes of excess BoilOff calculation under Appendix A, Article 6 (Boil-Off Performance), in which the voyage is defined in terms of CTMS measurement as per Clause 25 (Cargo and Heel Measurement).

------

**SHELLLNGTIME 2.................................................1** 

**Appendix A. Performance Calculations** 

**..................................................................................................**

**1. GUARANTEED SPEED.................................................78** 

**2. ORDERED SPEED.................................................78** 

**3. HIRE DEDUCTION FOR NOT ACHIEVING ORDERED SPEED.................................................80** 

**4. CALCULATION OF FUEL CONSUMPTION WARRANTY ................................................. 80**

**5. EFFECTIVE BOIL-OFF ................................................................................................... 84**

**6. BOIL-OFF PERFORMANCE ............................................................................................ 84 7.**

**PRICING .......................................................................................................................... 86**

*In this Appendix A,* "*Article*" *shall mean an Article of this Appendix A, and* "*Clause*" *shall mean a Clause in Parts I and III of SHELLLNGTIME 2.1 (as amended)* 

&nbsp;&nbsp;&nbsp;&nbsp;**1.** **Guaranteed Speed** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Owners guarantee that the Vessel is capable of steaming, and subject to

Article 1(b) below, shall steam, at the Laden Speed in knots or the Ballast Speed in knots as set out in Part I of this charter (Guaranteed Service Speed), as applicable. This shall include whilst having Vessel's shaft generators fully engaged if the Vessel is fitted with shaft generators.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Charterers may order the Vessel to steam at the Guaranteed Service Speed or at any other speed between the minimum speed and maximum speed guaranteed in the Speed/Consumption table in Part II Form B (such speed ordered by Charterers being the "Ordered Speed"). The Ordered Speed shall be within the lowest and highest Guaranteed Speed in order for the Voyage to be included for the purposes of any speed or consumption claim.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Charterers may order the Vessel to steam at a lesser speed than the minimum speed, or greater speed than the maximum speed shown in the applicable Speed/Consumption table, with Owners' consent, which shall not be unreasonably withheld. Nevertheless Owners may, for reasons of prudence and safety, decline orders to steam at any lesser average speed or at any greater average speed than those shown in the applicable Speed/Consumption table.

&nbsp;&nbsp;&nbsp;&nbsp;**2.** **Ordered Speed** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Prior to each Voyage, Charterers may, subject to Article 1 (Guaranteed Speed), instruct the Vessel to proceed so as to arrive at a given pilot boarding station at each port at a given date and time (the "Scheduled Arrival Time" or "SAT"). From this will be imputed an average speed that must be attained by the Vessel over the Voyage in order to meet that SAT (an "Ordered Speed"). It is this Ordered Speed (subject to Article 5(b) below), that will be used throughout these terms and in a Guaranteed Fuel Consumption calculation, provided however that:

------

&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) in the event that Charterers fail to provide a SAT to Owners the Ordered Speed shall be deemed to be the applicable Guaranteed Service Speed and it shall be deemed that the Vessel proceeds by the shortest safe route on that Voyage, as per Dataloy Distance Tables, unless Charterers specify a different route;

&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) Charterers may amend the Ordered Speed and Fuel Consumption Modes as per Article 4 (Calculation of Fuel Consumption Warranty) below, from time to time, during or prior to each passage (port to port). For any Voyage where there is either a change of Ordered Speed or a change of Fuel Consumption Mode, then from the time of that change there shall be a new separate Voyage for the purposes of lost time and Guaranteed Fuel Consumption Calculation; and

&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) where necessary if, in order to meet the required SAT, the Vessel is to steam at an average speed that is in between two speeds stated in the "Speed/Consumption" table in Part II (LNG Form B), "Speed/Consumption", then the Guaranteed Fuel Consumption shall be calculated by linear interpolation between those two speeds, and the average speed required to meet that SAT shall be an Ordered Speed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Achieved Speed for any Voyage is the average speed performed by the Vessel over the relevant Voyage for the observed distance steamed excluding distance covered during, and the duration of:

&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) any days, noon to noon, when winds exceed force three (3) on the Beaufort Scale for more than 12 hours;

&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) any period of poor visibility where visibility is less than 3 nautical miles;

&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) any period where speed has to be adjusted for congested water, canal transits and convoys;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) any period spent at a waiting area following arrival;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) any period spent in saving of life (or the attempts at saving life) or, with Charterers' consent, property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) any period where the Vessel is required to change route, or a delay is caused, by any applicable law or Governmental imposition; and (vii) all off-hire periods.

Each of the above shall constitute an "Excluded Period" and for each of which the master shall record in his daily noon report the time lost in the previous twenty-four (24) hours.

------

&nbsp;&nbsp;&nbsp;&nbsp;**3.** **Hire Deduction For Not Achieving Ordered Speed** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If the Vessel arrives at the pilot station of a port at the end of a Voyage not later than three (3) hours after the SAT, the Vessel shall be deemed to have

arrived "On Time". If the Vessel arrives at the pilot station more than three (3) hours after the SAT, the Vessel shall be deemed to have arrived "Late".

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Where the Vessel arrives Late, Charterers shall be entitled to make a deduction from hire in respect of any lapsed time between the point in time three (3) hours after the required SAT and the actual arrival at the pilot station.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Charterers shall not be entitled to make any deduction from hire if the Vessel arrives Late to the extent that such late arrival is caused by one or more of the Excluded Periods.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) This Article 3 deals only with the Vessel being Late, and to the extent that Clause 34 (Off-Hire) does not apply. Further, any deduction made under Clause 34 (Off-Hire) shall be excluded from any calculation under this Article 3.

**4. Calculation of Fuel Consumption Warranty** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) For each Voyage the Guaranteed Fuel Consumption shall be calculated by applying the applicable maximum daily fuel consumption in the Speed/Consumption table in Part II Form B, to the given or deemed Ordered Speed. Daily Actual fuel consumption is the sum of all fuel consumed by the main engine, auxiliaries, and boilers and is calculated as described in subarticle (e) below. The calculation of both the Guaranteed Fuel Consumption and the actual fuel consumption shall be net of any periods of off-hire or other Excluded Periods as listed in Article 2(b) (Ordered Speed) of this Appendix A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Charterers shall furnish Owners with reporting forms that reflect the reporting requirement of this Article, including details of the relevant meter readings, which the master is obliged to complete on a daily basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Where the Achieved Speed is higher than the Ordered Speed, the Guaranteed Fuel Consumption will be calculated based on Ordered Speed. Where the Achieved Speed is lower than the Ordered Speed the Guaranteed Fuel Consumption will be calculated based on the Achieved Speed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Owners confirm that the Bunker Vessel does not have a GCU.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The actual fuel consumption for any given Voyage, laden or ballast, shall be calculated in one of three ways depending on fuelling instructions provided by Charterers or as circumstances dictate for each Voyage:  **<u>Mode 1</u>** <u>: Where Vessel is fuelled entirely by Boil-Off</u> 

------

Not applicable to the Vessel.

**<u>Mode 2</u>**<u>: Where the Vessel is fuelled by Boil-Off and supplemented by</u> <u>compliant Liquid Fuel</u>

In such cases: (1) Charterers shall have the right to require the master to minimise Boil-Off consumption in voyage orders; (2) Charterers may require the reliquefaction unit to be used at any given setting up to the maximum reliquefaction rate: and (3) the actual daily fuel consumption shall be the sum of:

&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) All Boil-Off used by the main engine and auxiliaries. These values shall be tallied. The resultant metric tonne figure shall be converted into a FOE by applying the constant defined under FOE Factor, and Fuel Heating Values as stated in Clause 72 (Definitions). An adjustment may be made at Owners' election to allow for the case where the Boil-Off used has a different heating value, and where the heating value of such Boil-Off has been measured and documented.

&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) All Liquid Fuel used by the main engines and auxiliaries, and measured in metric tonnes with the applicable heating value applied such that the metric tonnes are converted into metric tonnes equivalent of heating value for each Liquid Fuel as defined in Fuel Heating Values table in Clause 72 (Definitions). An adjustment may be made at Owners' election to allow for the case where the Liquid Fuel used has a different heating value, and where the heating value of such Liquid Fuel has been measured and documented.

&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) The sum of both Boil-Off and Liquid Fuels now measured at heating value as per (i) and (ii) above shall be compared to the FOE column in the Speed/Consumption table in Part II (LNG Form B). "Maximum Liquid Fuel daily consumption" for the appropriate given or deemed Ordered Speed.

Where the Vessel has no option but to use a compliant Liquid Fuel, as a result of equipment breakdown or failure, partial or full, including as described in Clause 34, (Off-Hire), and Charterers would otherwise not have chosen such Liquid Fuel, then Charterers shall be entitled to recover, where applicable, the differential fuel price to the preferred fuel (including the FOE of BoilOff) for using such fuel.

**<u>Mode 3</u>**<u>: Where Vessel fuelled entirely by Liquid Fuel</u>

In such cases the actual daily fuel consumption shall be the sum of all Liquid Fuel used by the main engines and auxiliaries, and measured in metric tonnes with the applicable heating value applied such that the metric tonnes are converted into metric tonnes equivalent of heating value for each Liquid Fuel as defined in Fuel Heating Values table in Clause 72 (Definitions). An adjustment may be made to allow for the case where the Liquid Fuel used has a different heating value, and where the heating value of such Liquid Fuel has been measured and documented.

Where the Vessel has no option but to use a compliant Liquid Fuel, as a result of equipment breakdown or failure, partial or full, including as described in Clause 34, (Off-Hire), and Charterers would otherwise not have chosen such Liquid Fuel, then Charterers shall be entitled to recover, where applicable, the differential fuel price to the preferred fuel (including the FOE of BoilOff) for using such fuel.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Subject as hereinafter provided and for each of the 3 Modes described in Article 4(e):

&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) there shall be a saving of fuel for a given Voyage where the Guaranteed Fuel Consumption is greater than the actual measured fuel consumption, and the saving shall be equal to that difference; and

&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) there shall be an excess of fuel consumption for a given Voyage where the Guaranteed Fuel Consumption is less than the actual measured fuel consumption and the excess shall be equal to that difference.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The calculated saving or excess of fuel consumption for a Voyage, whichever the case, shall be applied, pro rata according to distance steamed, to the total distance steamed for the whole laden or ballast passage, FAOP to EOP. The latter will include any periods that count as Excluded Periods under Article 2 (Ordered Speed). The resultant total excess or saving shall be used in the Performance Period calculation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) For any given Performance Period the quantities of excess fuel used and the quantities of fuel saved under each of the 3 Modes described in Article 4(e) on all Voyages in the Performance Period shall be individually totalled such that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Not applicable;

&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) Across all Voyages in the Performance Period where Mode 2 applies, there shall be a calculated quantity of Liquid Fuel either saved or in excess of the Liquid Fuel warranty. This quantity shall be priced in a ratio according to each of the fuels actually used, Boil-Off and Liquid Fuel, using the LNG Price and Liquid Fuel Price respectively.

&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) Across all Voyages in the Performance Period where Mode 3 applies, there shall be a quantity of Fuel either saved or in excess of the Fuel warranty. This quantity shall be priced at the Fuel Price.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The lump sum values under (h)(i), (ii) and (iii) above shall be totalled and there shall be a resultant priced net excess or net saving against Guaranteed Fuel Consumption for the Performance Period. If the balance is zero or a net saving Owners shall be deemed to have complied with the Guaranteed Fuel Consumption obligations for the Performance Period. If the balance is a priced excess over the Guaranteed Fuel Consumption then Charterers shall deduct such amount from hire due under Clause 37 (Hire Payment and Deductions) or make the appropriate claim.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) Notwithstanding the definition of Voyage, for the purpose of fuel consumption calculations, a Voyage may start:

&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) immediately after an off-hire period;

&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) at the time the Vessel alters speed having received a new Ordered Speed (or a revised SAT which implies a new Ordered Speed) as per Article 2(a)(ii) (Ordered Speed), or effects a change in ordered Fuel Mode.

And end:

&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) immediately before an off-hire period; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) at the time the Vessel alters speed having received a new Ordered Speed (or a revised SAT which implies a new Ordered Speed), as per Article 2(a)(ii) (Ordered Speed), or effects a change in ordered Fuel Mode.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) If on any Voyage the Vessel is required to steam faster or slower than a Guaranteed Speed pursuant to an Ordered Speed (and provided this is not attributable to any failure of performance of the Vessel), the Vessel shall be deemed to have complied with the fuel consumption guarantees for the duration of such Voyage. "Voyage" shall be interpreted according to Article 2, "Ordered Speed" above, to mean a given passage leg at a given speed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) Owners' warranties relating to speed and fuel consumption shall not apply to the period between the end of the last Voyage on a laden or ballast passage (EOP) and the start of the next Voyage (FAOP), being in-port time or as described in Article 4 (g) above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) The Guaranteed Fuel Consumption for given speeds whilst at sea, Laden or Ballast, as shown in the Speed/Consumption table in Part II (LNG Form B), shall be inclusive of all requirements on board unless otherwise stated in this Appendix.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) In the case where the Vessel is fitted with a shaft generator, the values set out in the Speed/Consumption table in Part II Form B require the Vessel to be able to use all the shaft generator power available and maintain 18 knots either laden or ballast, and in all conditions other than during Excluded Periods.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) In all above cases where pilot fuel is required this shall be subject to Owners' guaranteed maximum pilot fuel consumption as per the Speed/Consumption table in Part II Form B. Any claim that Charterers make for use of excess pilot fuel over Owners' pilot fuel warranty shall be without reference to a primary fuel claim. An operational tolerance of 5% shall be allowed for pilot fuel.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) Charterers shall be entitled to deduct from hire, or make a claim for, any excess daily in-port fuel or Boil-Off consumption. In-port consumption, for the purposes of this Article, and unless otherwise stated, shall be deemed as warranted by Owners to be no greater in aggregate than the guaranteed Maximum Daily Boil-Off Rate or the FOE thereof. The period for which such in in-port performance shall be measured shall be the period during which the Vessel spends waiting after EOSP, and all time spent from all-fast at berth until unberthing (an "In-Port Performance Period"). Any excess Boil-Off so lost during an In-Port Performance Period shall be calculated and deducted or claimed using the LNG Price. Any excess fuel so consumed shall be calculated and deducted or claimed using the Fuel Price. This in-Port consumption guarantee is deemed to have been met where the provisions of Article 6, (c), (d), (e), (f) or (g) apply.

&nbsp;&nbsp;&nbsp;&nbsp;**5.** **Effective Boil-Off** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Owners guarantee that the Boil-Off management system can be used to achieve consumption values equivalent to or lower than those set out the EOBG column in the applicable table in Part II of this charter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The master shall use any Boil-Off management equipment as required with a view to minimising fuel, including Boil-Off consumption commensurate with Charterers' voyage orders. Primary responsibility for use of Boil-Off management remains with the master, but nevertheless Charterers shall be entitled to instruct the Vessel as to the use the boil-off management system in voyage orders should they wish to do so.

&nbsp;&nbsp;&nbsp;&nbsp;**6.** **Boil-Off Performance** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Owners guarantee that the Boil-Off rates shall not exceed the Natural BoilOff specified in Part I Performance Insertions ("Maximum Daily Boil-Off Rates") and Effective Boil-Off rates (EOBG) specified in Part II, subject to the qualifications in Clause 24 (Boil-Off and Heel Management).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any Boil-Off in excess of that specified in Part I, including Effective BoilOff (EOBG) rates in Part II shall be accounted for under Article 4 (Calculation of Fuel Consumption Warranty) of this Appendix A. In the case of excess Boil-Off for which Charterers are unable to make any claim under Article 4 above, such as where mass-flow meters or other equipment has failed, or where Owners are deemed to have complied with the Guaranteed Fuel Consumption obligations but there is an excess Boil-Off quantity unaccounted for in a given Performance Period, then Charterers may deduct from hire due under Clause 37 (Hire Payment and Deductions), an amount calculated by applying the LNG Price to such excess.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If a Voyage is less than thirty-six (36) hours in duration, the Boil-Off guarantee shall be deemed to have been complied with for that Voyage.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Boil-Off guarantee shall be deemed to have been met, irrespective of the Achieved Speed, for any twenty-four (24) hour period, measured noon to noon, within which Charterers order the Vessel to:

------

&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) Force Boil-Off; or

&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) condition the cargo such that the cargo temperature is reduced or the saturated vapour pressure of a cargo is reduced, prior to arriving at a discharge port.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) If Charterers give orders that require the master to undertake tank transfers of Heel to maximise Heel deployment during a ballast Voyage, the Boil-Off guarantee shall be deemed to have been complied with for the period of that transfer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Following any tank transfers under (e) above, if Charterers then order the Vessel to undertake spray cooling in cargo tanks, the Boil-Off guarantee shall be deemed to have been complied with for the duration of that spraying.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Notwithstanding Clause 24(c) (Boil-Off and Heel Management) the Boil-Off guarantee shall be deemed to have been met, irrespective of the Achieved Speed, where the loaded temperature of the cargo was warmer than minus one hundred and fifty-eight point five degrees Celsius -158.5ºC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) None of the sub-articles above that would disqualify or modify a potential hire deduction or claim from Charterers for excess Boil-Off within this Article 6 shall apply where venting has occurred under the circumstances described in Clause 6 (Incident Reporting) of Part III of this charter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Charterers shall be entitled to deduct from hire or otherwise recover an amount equivalent to the value, at the LNG Price in Part I, or failing that the delivered realisation price received for the balance of the cargo, of any BoilOff that has to be disposed of via a GCU or steam dumping system as a direct result of equipment failure, and where no recovery by Charterers is otherwise made under any other clause under this charter.

&nbsp;&nbsp;&nbsp;&nbsp;**7.** **Pricing** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Where the period of this charter is intended to cover no more than ninety (90) days or three (3) cargo loadings and discharges, then the prices agreed in Part I of this charter for all fuel oil and secondary fuel, and LNG Price at Delivery and Redelivery, and also the FOE agreed in Part I, shall be applied to all performance claims for excess fuel used, or excess Boil-Off. Loss of time shall be calculated at the Rate of Hire prevailing at the point of Redelivery under this charter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) For charter periods greater than ninety (90) days or more than three (3) cargo loadings:

&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) the price of all Liquid Fuels shall be at that paid for the last bunkering operation for such fuels in the Performance Period or, should the Parties agree otherwise, the Average Liquid Fuel Price;

&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) irrespective of any single LNG Price stated in Part I of this charter, the price of LNG shall be the arithmetic average of the price paid by Charterers for all cargoes discharged by the Vessel in the Performance Period; and

------

&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) the FOE shall be that agreed for the charter, or should the Parties agree otherwise, the arithmetic average of each FOE for all the cargoes discharged during the Performance Period.

**SHELLLNGTIME 2.1** 

**Appendix B. Indemnity Agreement for Boarding Vessel** 

Letter of Indemnity for Boarding Vessel

To the Master of Vessel: Date:

With respect to this charter in relation to the vessel named I hereby request you to allow me as the supervisor/inspector/supernumerary/representative supercargo on board your Vessel during the forthcoming voyage/loading/discharging operations.

In consideration of your complying with this request I hereby assume all risk of loss of life, personal injury, loss or damage to personal effect or luggage or other property, whilst on board or whilst embarking or disembarking unless caused by the gross negligence and/or wilful misconduct of you and/or (*insert name of Owners, Managers, Vessel Operators and Charterers, as applicable*) and/or your subsidiary, affiliated or associated companies and/or your contract partners. Furthermore, I hereby waive all rights against you and/or your subsidiary, affiliated or associated companies and/or your contract partners, in respect of any such loss, damage, illness, injury or death except where caused by your gross negligence and/or wilful misconduct.

I recognise that the Vessel is not a passenger ship and there is no warranty that the Vessel is fit for the carriage of passengers, any undertaking as to seaworthiness that might otherwise exist being hereby expressly waived.

I agree that this letter shall be governed by and construed in accordance with English law, and any dispute, controversy or claim arising or resulting out of or relating to this letter, or the breach, termination, or invalidity thereof, shall be settled by arbitration in accordance with the London Maritime Arbitrators Association ("LMAA") Rules currently in force. The number of arbitrators shall be three. The Parties shall attempt to jointly appoint an arbitrator within twenty-eight (28) days of a request in writing to do so by either Party. If a sole arbitrator cannot be agreed then arbitrators shall be appointed as per the LMAA Rules currently in force.

The place of the arbitration shall be London, England. The arbitration proceedings, including the making of the award, shall be conducted in English and in accordance with the Arbitration Act 1996 as amended from time to time.

Name of person :

Company :

Title :

Address of residence :

Passport number :

Signed by :

------

**SHELLLNGTIME 2.1** 

**Appendix C. Safety and Environmental Reporting Template** 

**<u>Safety and Environmental Monthly Reporting Template</u>**

---

| | |
|:---|:---|
| **<u>Safety and Environmental</u> <u>Monthly Reporting</u>**<br> **<u>Template</u>** | Return to: <br> Fax: Charterers marked for the attention of: <br> Phone: <br> Email:  |

---

Time Chartered Vessel Name   <br> <u> Management Company </u>   <br> <u> Month </u>  

---

| | |
|:---|:---|
| **OIL** <br>| **SPILL INCIDENTS** <br> (Any amount entering the water)<br> Approximate volume in<br> barrels and brief<br> details |
| **ANY** <br>| **OTHER INCIDENTS** <br> resulting in or having potential for injury, damage or loss |

---

FOR DEFINITIONS OF INCIDENT CLASSIFICATION AND EXPOSURE HOURS PLEASE SEE OIL COMPANIES INTERNATIONAL MARINE FORUM (OCIMF) BOOKLET "Marine Injury Reporting Guidelines" (February 1997) or any subsequent version, amendment, or variation to them

------

---

| |
|:---|
| A. No. Of crew: |
| B. Days in month / period: |
| **EXPOSURE HOURS** (A x B x 24): |

---

**LOST TIME INJURIES (LTI**'**S)** including brief details / any treatments<br>

**TOTAL RECORDABLE CASE INJURIES (TRC**'**S)** including brief details / any treatments<br>

**PLEASE CONFIRM YOUR RETURN CONTACT DETAILS:** 

---

| |
|:---|
| Name:  |
| Phone:  |
| Fax:  |
| Email:  |

---

------

Return for each calendar month – by 10<sup>th</sup> of following month.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **<u>Safety and Environmental</u> <u>Monthly Reporting</u>** <br> **<u>Template</u>** <br>| Return | Charterers Fax:<br> Phone:<br> Email:<br>| marked<br>| to: for<br>| the<br>| attention<br>| of: <br>|

---

Time Chartered Vessel Name   <br> <u> Management Company </u>   <br> <u> Month </u>  

Notes: Please enter zero i.e. "0" where any amount is nil (rather than entering "Nil" or N/A") Please do not enter a % sign in the entry boxes for Fuel Sulphur content i.e. if it is 3% then just enter "3".

Cargo loaded for LNG vessels should also be reported as tonnes and not as m<sup>3</sup>.

---

| |
|:---|
| Monthly Consumption – Fuel Oil mt<br>|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Sulphur content of Fuel Oil (percentage weight)<br>|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Monthly Consumption –Gas Oil mt<br>|
| Monthly Consumption (LNG ships only)<br> – Fuel Gases mt |

---

Please do not enter a % sign in the entry boxes for Fuel Sulphur content i.e. if it is 3% then just enter 3". Cargo loaded for LNG vessels should also be reported as tonnes and not as m3.

Monthly Distance Steamed   <br> <u> Monthly Cargo Loaded - mt </u>  

Refrigerant Gas Consumption - Type   <br> <u> Refrigerant Gas Consumption – Quantity (litres) </u>  

Garbage Disposal m3 – At Sea   <br> <u> Garbage Disposal m3 – Incinerated on Board </u>   <br> <u> Garbage Disposal m3 – Sent Ashore </u>  

OIL SPILL INCIDENTS <br> <u> (Other </u> <u> than those entering the water) Approx. volume & brief details </u>  

Return for each calendar month – by 10<sup>th</sup> of the month

## Exhibit 19.1

**Exhibit 19.1**

**STABILIS SOLUTIONS, INC.**

**PROCEDURES AND GUIDELINES GOVERNING**

**SECURITIES TRANSACTIONS BY COMPANY PERSONNEL**

**Revised June 4, 2020**

**I. PURPOSE**

It is against the policy of Stabilis Solutions, Inc. including any of its subsidiaries ("**STABILIS**" or the ****"***Company***") for any director, officer, employee, agent or adviser of the Company to trade in the securities of the Company while in the possession of material nonpublic information about the Company. This Policy also applies to material, nonpublic information relating to any other company with publicly-traded securities, including our customers or suppliers, obtained in the course of employment by or association with Stabilis.

It is also against the policy of the Company for any director, officer or employee of the Company to take any action to take advantage of or pass on to others any such information. In order to comply with federal and state securities laws governing (i) trading in Company securities while in the possession of material nonpublic information described above, (ii) tipping or disclosing material nonpublic information to outsiders; and in order to prevent the appearance of improper trading or tipping, STABILIS has adopted this policy for all of its directors, officers and employees, members of their families and others living in their households, and venture capital and other entities (such as trusts and corporations) over which such directors, officers or employees have or share voting or investment control.

**II. SCOPE**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. This policy covers all directors, officers, employees, agents and advisers of the Company and its subsidiaries, members of their families and others living in their households and venture capital and other entities (such as trusts and corporations) over which such directors, officers, or employees have or share voting or investment control (collectively referred to herein as "***directors, officers and employees***"). ****Directors, officers and employees are responsible for ensuring compliance by their families and other members of their households and entities over which they exercise voting or investment control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The policy applies to any and all transactions in the Company's securities, including options to purchase Common Stock (as described in more detail in Section VI.D below), and any other type of securities that the Company may issue, such as preferred stock, convertible debentures, warrants and exchange-traded options or other derivative securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. The policy will be delivered to all directors, officers, employees, agents and advisers upon its adoption by the Company, and to all new directors, officers, employees, agents and advisers at the start of their employment or relationship with the Company. Upon first receiving a copy of the policy or any revised versions, each director, officer and employee must sign a certification and agreement that he or she has received a copy and agrees to comply with the policy's terms substantially as set forth in Exhibit A below. This certification and agreement will constitute consent for the Company to impose sanctions for violation of the policy and to issue any necessary stop-transfer orders to the Company's transfer agent to enforce compliance with this policy. Sanctions for individuals may include demotion or other disciplinary actions, up to and including termination of employment or other affiliation if the Company has a reasonable basis to conclude that its policy has been violated. Section 16 Parties, as defined below, may be required to certify compliance with the policy on an annual basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. The Company may change these procedures or adopt such other procedures in the future as it considers appropriate in order to carry out the purposes of its policy.

**III. SECTION 16 PARTIES; ACCESS PERSONS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. ***Section 16 Parties.*** The Company has designated those persons listed on <u>Exhibit B</u> as the directors and officers who are subject to the reporting provisions and trading restrictions of Section 16 of the Securities Exchange Act of 1934, as amended (the "***Exchange Act***"), ****and the underlying rules and regulations promulgated by the Securities and Exchange Commission (the "***SEC***"), ****and entities known by the Company to be affiliated or associated with such officers or directors (each party a "***Section 16 Party***"). Section 16 Parties must provide information for prior review of all trades and transfers of Company securities in accordance with the procedures set forth in Section VI.C below. The Company will amend <u>Exhibit B</u> from time to time as necessary to update the list of Section 16 Parties, and may amend the procedures as necessary to comply with governing laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The Company has designated those persons listed on Exhibit B who have regular access to material nonpublic information in the normal course of their duties for the Company (each person an "***Access Person***"). The Company will promptly notify any Access Person in writing if the Company independently determines that such Access Person no longer has access to material nonpublic information about the Company. Access Persons must provide information for prior review of all trades and transfers of Company securities in accordance with the procedures set forth in Section VI.C below. The Company will amend <u>Exhibit B</u> from time to time as necessary to update the list of Access Persons,and may amend the procedures as necessary to comply with governing laws.

**IV. INSIDER TRADING COMPLIANCE OFFICERS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. The Company has designated its Chief Financial Officer as its Insider Trading Compliance Officer (the "***Compliance Officer***"). ****The Compliance Officer will review all proposed trades and transfers by Section 16 Parties in accordance with the procedures set forth in Section VI.C below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The duties of the Compliance Officer will include the following:

&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. Administering and interpreting, responding to all inquiries relating to, and monitoring and enforcing, compliance with this policy and procedures.

&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. Providing copies of this policy and other appropriate materials to all current and new directors, officers and employees, and such other persons who the Compliance Officer determines may have access to material nonpublic information concerning the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Administering, monitoring and enforcing compliance with all federal and state insider trading laws and regulations, including without limitation, Sections 10(b), 16, 20A and 21A of the Exchange Act and the rules and regulations promulgated thereunder, and Rule 144 under the Securities Act of 1933 (the "***Securities Act***")*;* ****and assisting in the preparation and filing of all required SEC reports relating to insider trading in Company securities, including without limitation Forms 3, 4, 5 and 144 and Schedules 13D and 13G. Revising the policy as necessary to reflect changes in federal or state insider trading laws and regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Monitoring the maintenance as Company records originals or copies of all documents required by this policy, and copies of all required SEC reports relating to insider trading, including without limitation Forms 3, 4, 5 and 144 and Schedules 13D and 13G.

5*.* Updating the list of Section 16 Parties as attached on <u>Exhibit B</u> and the list of Access Persons, periodically as necessary to reflect additions or deletions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Designating and announcing special trading blackout periods during which no directors, officers or Access Persons may trade in Company securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. The Compliance Officer may designate one or more individuals who may perform the Compliance Officer's duties in the event that the Compliance Officer is unable or unavailable to perform such duties and may consult with the Company's legal counsel in connection with the procedures.

V. **DEFINITION OF** "**MATERIAL NONPUBLIC INFORMATION**"

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. "MATERIAL" INFORMATION

Information about a company is "material" if it would be expected to affect the investment or voting decisions of a reasonable stockholder or investor, or if the disclosure of the information would be expected to significantly alter the total mix of the information in the marketplace about such company. Material information is any type of information that could reasonably be expected to affect the market price of the company's securities. Both positive and negative information may be material. While it is not possible to identify all information that would be deemed "material," the following types of information ordinarily would be considered material:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Significant changes in financial performance or liquidity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Positive or negative financial results that have not yet been announced;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Success or lack of success of new products;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Signing of a major new agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Potential material mergers and acquisitions or material sales of the company's assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Loss of a major customer or supplier;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Initiation or resolution of a significant lawsuit; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Significant changes in senior management.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. "NONPUBLIC" INFORMATION

Material information is "nonpublic" if it has not received widespread publication to the public by a major financial newswire service, national financial news service or major internet financial news service. For the purposes of this policy, information will be considered public (and no longer "nonpublic") at the beginning of the second full trading day following the widespread publication of the information. If in doubt about the status of information, consult the Compliance Officer for guidance.

**VI. STATEMENT OF COMPANY POLICY AND PROCEDURES**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. PROHIBITED ACTIVITIES

&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. No director, officer, employee, agent or adviser may trade in Company securities while possessing material nonpublic information concerning the Company. ***It does not matter that there is an independent, justifiable reason for a purchase or sale; if the director, officer, employee, agent or advisor has material nonpublic information, the prohibition still applies.***

&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. No director, officer, Section 16 Party or Access Person may trade in Company securities outside of the applicable "trading windows" described in Section VI.B, and no person listed on any special transactional list may trade during any special trading blackout periods designated by the Compliance Officer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. No director or officer may enter into a 10b-5 Trading Plan while possessing material nonpublic information concerning the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. No Section 16 Party may trade in Company securities unless the trade has been reviewed by the Compliance Officer in accordance with the procedures set forth in Section VI.C below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. No director, officer, employee, agent or adviser may disclose material nonpublic information concerning the Company to any outside person (including family members, analysts, individual investors, or members of the investment community and news media), unless required as part of that director's, officer's, employee's, agent's or adviser's regular duties for the Company or authorized by the Compliance Officer. In any instance in which such information is disclosed to outsiders, the Company will take steps to preserve the confidentiality of the information, including requiring the outsider to agree in writing to comply with the terms of this policy and/or to sign a confidentiality agreement. All inquiries from outsiders regarding material nonpublic information about STABILIS must be forwarded to the Compliance Officer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. No director, officer, employee, agent or adviser may give trading advice of any kind about STABILIS to anyone while possessing material nonpublic information about the Company, except that directors, officers, employees, agents and advisers should advise others not to trade if doing so might violate the law or this policy. STABILIS strongly discourages all directors, officers, employees, agents and advisers from giving trading advice concerning the Company to third parties even when the directors, officers, employees, agents and advisers do not possess material nonpublic information about the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. No director, officer, employee, agent or adviser may trade in any interest or position relating to the future price of Company securities, such as a put, call or short sale (including a short sale "against the box").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. No director, officer, employee, agent or adviser may (a) trade in the securities of any other public company while possessing material nonpublic information concerning that company obtained in the course of service as a director, officer or employee, (b) "tip" or disclose such material nonpublic information concerning such other public company to anyone, or (c) give trading advice of any kind to anyone concerning such other public company while possessing such material nonpublic information about that company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. No venture capital fund or other entity over which a director, officer, agent employee, agent or adviser has or shares voting or investment control may distribute securities of the Company to its general partners or shareholders during a period when the director, officer or employee is not permitted to trade, unless the general partners or shareholders have agreed in writing to hold the securities until the trading window, described in Section VI.B below, is first open.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. TRADING AND TRANSFER WINDOWS AND BLACKOUT PERIODS

&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. ***Trading and Transfer Windows for Section 16 Parties.*** After providing the Compliance Officer with proposed trading and transfer information for review in accordance with the procedures set forth in Section VI.C below, Section 16 Parties listed on <u>Exhibit B</u> attached hereto may trade and transfer Company securities only during the period <u>beginning</u> on the second trading day following the widespread publication of the Company's quarterly or year-end earnings information, and <u>ending</u> on the fifteenth day of the third month of the then-current fiscal quarter.

&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. ***Trading and Transfer Windows for Access Persons.*** All Access Persons may trade and transfer Company securities only during the period <u>beginning</u> on the second trading day following the Company's widespread public release of quarterly or year-end earnings information, and <u>ending</u> on the fifteenth day of the third month of the then-current fiscal quarter. Notwithstanding the foregoing, it is the Company's intention that there shall be a permissible trading and transfer window of no less than seven (7) trading days beginning on the second trading day following the widespread publication of the Company's quarterly or year-end earnings information for Section 16 and Access Parties who do not have Material Non-Public Information at that time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. ***No Trading and Transfer During Trading and Transfer Windows While in the Possession of Material Nonpublic Information.*** No director, officer, employee, agent or adviser possessing material nonpublic information concerning the Company may trade in Company securities even during applicable trading windows. Persons possessing such information may trade and transfer during a trading window beginning on the second trading day following the widespread publication of the information as long as such trading is otherwise permitted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. ***No Trading or Transfers During Blackout Periods.*** No director, officer, Access Person, agent, adviser or specially designated employee may trade or transfer any Company securities outside of the applicable trading windows or during any special blackout periods that the Compliance Officer may designate. No director, officer or Access Employee, specially designated employee, agent or adviser may disclose to any unauthorized person that a special blackout period has been designated. When in doubt about who is authorized under special blackout periods, contact the Compliance Officer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. PROCEDURES FOR REVIEWING TRADES AND TRANSFERS

&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. *Section 16 Parties and Access Persons.*** No Section 16 Party or Access Person may trade or transfer Company securities until such person has notified the Compliance Officer on the form annexed hereto as <u>Exhibit C</u> of the amount and nature of the proposed trade(s) or transfer(s) and certified to the Compliance Officer in writing no earlier than three business days prior to the proposed trade(s) that:

&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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Such person is not in possession of material nonpublic information concerning the Company, and

&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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the proposed trade(s) or transfer(s) comply with the Company's Procedures and Guidelines Governing Securities Transactions by Company Personnel.

For the purposes of this Section VI.C, notification and certification in writing shall include such notification and certification via e-mail or fax.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. PERMITTED TRANSACTIONS

&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. ***Company Sponsored Stock Plans.*** The trading prohibitions and restrictions set forth in this policy do not apply to purchase or receipt of Company securities from the Company pursuant to a Company sponsored plan, including acquisition of shares or share units and exercise of stock options in a compensatory transaction. Any sale of securities acquired under such plans are subject to the prohibitions and restrictions of this policy.

&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. ***10b-5 Trading Plans.*** Execution of a transaction under an approved 10b-5 Trading Plan as further described in Section VIII below is exempt from the prohibitions and restrictions set forth herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. ***Bona Fide Gifts.*** Bona fide gifts of Company securities are exempt from the prohibitions and restrictions set forth herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. ***Private Transactions Between Section 16 Parties and/or Access Persons.*** Private transactions involving restricted securities between the Company's Section 16 Parties and/or Access Persons are exempt from the prohibitions and restrictions set forth herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E. PRIORITY OF STATUTORY OR REGULATORY TRADING RESTRICTIONS

The trading and transfer prohibitions and restrictions set forth in this policy will be superseded by any greater prohibitions or restrictions prescribed by federal or state securities laws and regulations, contractual restrictions on the sale of securities, short-swing trading by Section 16 Parties or restrictions on the sale of securities subject to Rule 144 under the Securities Act of 1933. Any director, officer, employee, agent or adviser who is uncertain whether other prohibitions or restrictions apply should ask a Compliance Officer.

**VII. POTENTIAL CIVIL, CRIMINAL AND DISCIPLINARY SANCTIONS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. CIVIL AND CRIMINAL PENALTIES

The consequences of prohibited insider trading or tipping can be severe. Persons violating insider trading or tipping rules may be required to disgorge the profit made or the loss avoided by the trading, pay the loss suffered by the persons who purchased securities from or sold securities to the insider tippee, pay civil penalties up to three times the profit made or loss avoided, pay a criminal penalty of up to $1 million, and serve a jail term of up to ten years. The Company and/or the supervisors of the person violating the rules may also be required to pay major civil or criminal penalties and could under certain circumstances be subject to private lawsuits by contemporaneous traders for damages suffered as a result of illegal insider trading or tipping by persons under the Company's control.

B**.** COMPANY DISCIPLINE

Violation of this policy or federal or state insider trading or tipping laws by any director, officer, employee, agent or adviser may subject a director to dismissal proceedings, and an officer, employee, agent or adviser to disciplinary action by the Company up to and including termination for cause. A violation of the Company's policy is not necessarily the same as a violation of law. The Company's policy is intended to be broader than the law. The Company reserves the right to determine, in its own discretion and on the basis of the information available to it, whether its policy has been violated. The Company may determine that specific conduct violates its policy, whether or not the conduct also violates the law. It is not necessary for the Company to await the filing or conclusion of a civil or criminal action against the alleged violator before taking disciplinary action.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. REPORTING OF VIOLATIONS

Any director, officer, employee, agent or adviser who violates this policy or any federal or state laws governing insider trading or tipping,or knows of any such violation by any other directors, officers, employees, agents or adviser must report the violation immediately to the Compliance Officer. Upon learning of any such violation, the Compliance Officer, in consultation with the Company's outside legal counsel and Chief Executive Officer, will determine whether the Company should release any material nonpublic information, or whether the Company should report the violation to the SEC or other appropriate governmental authority.

**VIII. 10B-5 TRADING PLANS**

A 10b5-1 trading plan is a binding, written contract between you and your broker that specifies the price, amount, and date of trades to be executed in your account in the future, or provides a formula or mechanism that your broker will follow. A 10b5-1 trading plan can only be established when you do not possess material, nonpublic information. Therefore, no director, officer, Section 16 Party may enter into these plans during quarterly pre-earnings blackouts or when any other blackout period is in effect. In addition, a 10b5-1 trading plan must not permit you to exercise any subsequent influence over how, when, or whether the purchases or sales are made. The rules regarding 10b5-1 trading plans are complex and you must comply with them completely. You should consult with your legal advisor before proceeding. Prior to the establishment of a 10b5-1 trading plan, each Section 16 Party must pre-clear with the Compliance Officer their proposed plan. The Company reserves the right to withhold pre-clearance of any 10b5-1 trading plan that the Compliance Officer determines is not consistent with the rules regarding such plans. The 10b-5 trading plan must require your broker to notify the Compliance Officer before the close of business on the day after the execution of any transaction.

**IX. INQUIRIES**

This document states a policy of Stabilis Solutions, Inc. and is not intended to be regarded as the rendering of legal advice. Please direct all inquiries regarding any of the provisions or procedures of this policy to the Compliance Officer or the Chief Executive Officer.

## Exhibit 21.1

**Exhibit 21.1**

**STABILIS SOLUTIONS, INC. SUBSIDIARY LIST**

The following is a list of certain subsidiaries (greater than 50% owned) of the registrant and their respective states of incorporation.

---

| | |
|:---|:---|
| **Name of Subsidiary** | **Jurisdiction of** <br> **Incorporation** |
| Diversenergy, LLC | Delaware |
| Diversenergy Mexico S.A.P.I. de C.V. | Mexico |
| Lisbon LNG LLC | Washington |
| M&I Electric Industries, Inc. | Texas |
| Mile High LNG LLC | Delaware |
| PEG Partners, LLC | Delaware |
| Stabilis GDS, Inc. | Delaware |
| Prometheus Energy Canada Inc. | Canada |
| Prometheus Technologies, LLC | Washington |
| Stabilis Energy, LLC | Texas |
| Stabilis Energy Mexico 1, LLC | Texas |
| Stabilis Energy Mexico 2, LLC | Texas |
| Stabilis Energy Services LLC | Texas |
| Stabilis LNG Eagle Ford LLC | Delaware |
| Stabilis LNG Port Allen LLC | Texas |
| Stabilis GNL Mexico S.A.P.I. de C.V. | Mexico |

---

## Exhibit 23.1

**Exhibit 23.1**

**CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

We hereby consent to the incorporation by reference in the Registration Statements on Form S-8 (No. 333-274145); and Form S-1/A (No. 333-264229) and related prospectus of Stabilis Solutions, Inc., of our report dated March 5, 2026 relating to the consolidated financial statements, which appears in this Form 10-K.

/s/ Ham, Langston and Brezina, L.L.P.

Houston, Texas

March 5, 2026

## Exhibit 31.1

**Exhibit 31.1**

**CERTIFICATIONS**

I, J. Casey Crenshaw, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;1. I have reviewed this Annual Report on Form 10-K of Stabilis Solutions, Inc.;

&nbsp;&nbsp;&nbsp;&nbsp;2. 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;

&nbsp;&nbsp;&nbsp;&nbsp;3. 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;

&nbsp;&nbsp;&nbsp;&nbsp;4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and l5d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our 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;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our 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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) 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's ability to record, process, summarize, and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | |
|:---|:---|
| Date: | March 5, 2026 |
| By: | /s/ J. Casey Crenshaw |
|  | J. Casey Crenshaw |
|  | Principal Executive Officer |

---

## Exhibit 31.2

**Exhibit 31.2**

**CERTIFICATIONS**

I, Andrew L. Puhala, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;1. I have reviewed this Annual Report on Form 10-K of Stabilis Solutions, Inc.;

&nbsp;&nbsp;&nbsp;&nbsp;2. 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;

&nbsp;&nbsp;&nbsp;&nbsp;3. 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;

&nbsp;&nbsp;&nbsp;&nbsp;4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and l5d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our 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;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our 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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) 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's ability to record, process, summarize, and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | |
|:---|:---|
| Date: | March 5, 2026 |
| By: | /s/ Andrew L. Puhala |
|  | Andrew L. Puhala |
|  | Principal Financial Officer |

---

## Exhibit 32.1

**Exhibit 32.1**

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER AND PRINCIPAL FINANCIAL OFFICER

PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

I, J. Casey Crenshaw, as Principal Executive Officer of Stabilis Solutions, Inc. (the "Company"), certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The Annual Report on Form 10-K of the Company for the annual period ended December 31, 2025 (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

---

| | |
|:---|:---|
| Date: | March 5, 2026 |
| By: | /s/ J. Casey Crenshaw |
|  | J. Casey Crenshaw |
|  | Principal Executive Officer |

---

I, Andrew L. Puhala, as Principal Financial Officer of Stabilis Solutions, Inc. (the "Company"), certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The Annual Report on Form 10-K of the Company for the annual period ended December 31, 2025 (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

---

| | |
|:---|:---|
| Date: | March 5, 2026 |
| By: | /s/ Andrew L. Puhala |
|  | Andrew L. Puhala |
|  | Principal Financial Officer |

---

## Exhibit 97.1

**Exhibit 97.1**

**Stabilis Solutions, Inc.** 

**Policy Regarding the Mandatory Recovery of Compensation**

**Effective November 7, 2023**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**I.** **Applicability**. This Policy Regarding the Mandatory Recovery of Compensation (the "  ***Policy***") applies to any Incentive Compensation paid to Stabilis Solutions' (the "  ***Company***") Executive Officers. The Policy is intended to comply with and be interpreted in accordance with the requirements of Listing Rule 5608 ("  ***Listing Rule 5608***") of The Nasdaq Stock Market LLC ("  ***Nasdaq*** "). The provisions of Listing Rule 5608 shall prevail in the event of any conflict between the text of this Policy and such listing rule. Certain capitalized terms are defined in Section IV hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**II.** **Recovery**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. *Triggering Event*.

Except as provided herein and subject to Section II(b) below, in the event that the Company is required to prepare a Financial Restatement, the Company shall recover any Recoverable Amount of any Incentive Compensation received by a current or former Executive Officer during the Look-Back Period. The Recoverable Amount shall be repaid to the Company within a reasonably prompt time after the current or former Executive Officer is notified in writing of the Recoverable Amount as set forth in Section II(c) below, accompanied by a reasonably detailed computation thereof. For the sake of clarity, the recovery rule in this Section II(a) shall apply regardless of any misconduct, fault, or illegal activity of the Company, any Executive Officer, the Company's Board of Directors (the "***Board***") or any committee thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. *Compensation Subject to Recovery*.

&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. Incentive Compensation subject to mandatory recovery under Section II(a) includes any Incentive Compensation received by an Executive Officer:

&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;a. After beginning service as an Executive Officer;

&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;b. Who served as an Executive Officer at any time during the performance period for that Incentive Compensation;

&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;c. While the Company has a class of securities listed on a national securities exchange or a national securities association; and

&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;d. During the Look-Back Period.

&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. As used in this Section II(b), Incentive Compensation is deemed "received" in the fiscal period that the Financial Reporting Measure specified in the applicable Incentive Compensation award is attained, even if the payment or grant of the Incentive Compensation occurs after the end of that period. This Section II(b) will only apply to Incentive Compensation received in any fiscal period ending on or after the effective date of Listing Rule 5608.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. *Recoupment*.

&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. The Compensation Committee of the Board (the "  ***Compensation Committee***") shall determine, at its sole discretion, the method for recouping Incentive Compensation, which may include (A) requiring reimbursement of Incentive Compensation previously paid; (B) seeking recovery of any gain realized on the vesting, exercise, settlement, sale, transfer, or other disposition of any equity-based awards; (C) deducting the amount to be recouped from any compensation otherwise owed by the Company to the Executive Officer; and/or (D) taking any other remedial and recovery action permitted by law, as determined by the Compensation Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. *Recoverable Amount*.

&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. The Recoverable Amount is equal to the amount of Incentive Compensation received in excess of the amount of Incentive Compensation that would have been received had it been determined based on the restated amounts in the Financial Restatement, without regard to taxes paid by the Company or the Executive Officer.

&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. In the event the Incentive Compensation is based on a measurement that is not subject to mathematical recalculation, the Recoverable Amount shall be based on a reasonable estimate of the effect of the Financial Restatement, as determined by the Compensation Committee, which shall be set forth in writing. For example, in the case of Incentive Compensation based on stock price or total shareholder return, the Recoverable Amount shall be based on a reasonable estimate of the effect of the Financial Restatement on the stock price or total shareholder return.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. *Exceptions to Applicability*.

The Company must recover the Recoverable Amount of Incentive Compensation as stated above in Section II(a), unless the Compensation Committee, or in the absence of such committee, a majority of the independent directors serving on the Board makes a determination that recovery would be impracticable, and at least one of the following applies:

&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. The direct expense paid to a third party to assist in enforcing recovery would exceed the Recoverable Amount, and a reasonable attempt to recover the Recoverable Amount has already been made and documented;

&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. Recovery of the Recoverable Amount would violate home country law (provided such law was adopted prior to November 28, 2022 and that an opinion of counsel in such country is obtained stating that recoupment would result in such violation); or

&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. Recovery would likely cause an otherwise tax-qualified retirement plan, under which benefits are broadly available to employees of the Company and its subsidiaries, to fail to meet the requirements of 26 U.S.C. 401(a)(13) or 26 U.S.C. 411(a) and regulations thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**III.** **Miscellaneous.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. The Board or Compensation Committee may require that any incentive plan, employment agreement, equity award agreement, or similar agreement entered into on or after the date hereof shall, as a condition to the grant of any benefit thereunder, require an Executive Officer to agree to abide by the terms of this Policy, including the repayment of the Recoverable Amount of erroneously awarded Incentive Compensation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. The Company shall not indemnify any Executive Officer or other individual against the loss of any incorrectly awarded or otherwise recouped Incentive Compensation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. The Company shall comply with applicable compensation recovery policy disclosure rules of the Securities and Exchange Commission (the "  ***Commission*** ").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**IV.** **Definitions**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. *Incentive Compensation*. "  ***Incentive Compensation***" means any compensation that is granted, earned, or vests based wholly or in part upon the attainment of a Financial Reporting Measure, but does not include awards that are earned or vest based solely on the continued provision of services for a period of time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. *Financial Reporting Measure*. "  ***Financial Reporting Measure***" means any reporting measure that is determined and presented in accordance with the accounting principles used in preparing the Company's financial statements, and any measures that are derived wholly or in part from such measures. Stock price and total shareholder return are considered to be Financial Reporting Measures for purposes of this Policy. A financial reporting measure need not be presented within the financial statements or included in a filing with the Commission.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. *Financial Restatement*. A "  ***Financial Restatement***" means any accounting restatement due to the material noncompliance of the Company with any financial reporting requirement under applicable securities laws, including any required accounting restatement to correct an error in previously issued financial statements that (i) is material to the previously issued financial statements (commonly referred to as a "Big R" restatement), or (ii) is not material to previously issued financial statements, but would result in a material misstatement if the error were left uncorrected in the current period or the error correction were recognized in the current period (commonly referred to as a "little r" restatement). For purposes of this Policy, the date of a Financial Restatement will be deemed to be the earlier of (i) the date the Board, a committee of the Board, or officers authorized to take such action if Board action is not required, concludes, or reasonably should have concluded, that the Company is required to prepare an accounting restatement, and (ii) the date a court, regulator, or other legally authorized body directs the Company to prepare an accounting restatement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. *Executive Officer*. "  ***Executive Officer***" shall mean the Company's Chief Executive Officer, President, Chief Financial Officer, or principal accounting officer (or, if there is no such accounting officer, the Controller), any vice-president of the Company in charge of a principal business unit, division or function (such as sales, administration or finance), and any other officer or person who performs a significant policy-making function for the Company, whether such person is employed by the Company or a subsidiary thereof For the sake of clarity, "Executive Officer" includes at a minimum executive officers identified by the Board pursuant to 17 CFR 229.401(b).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. *Look-Back Period*. The "  ***Look-Back Period***" means the three completed fiscal years immediately preceding the date of a Financial Restatement and any transition period as set forth in Listing Rule 5608.