Document:

EXHIBIT
      10.29

     

    SHIPSALES
      CONTRACT

     

    FOR

     

    CONSTRUCTION
      AND SALE

     

    OF

     

    A
      87,000 MTDW SINGLE SCREW

     

    DIESEL
      DRIVEN BULK CARRIER

     

    (THE
      FUTURE-87)

     

    HULL
      NO. 3254

     

    BETWEEN

     

    ENIAPROHI
      SHIPPING CORPORATION

     

    AND

     

    ITOCHU
      CORPORATION

     

    
      
        
        

      

        I

        

        

      

      
        
        

      

    
     

    INDEX

     

    
      	 	 	
              PAGE

            
	
              PREAMBLE

            	 	
              P-1

            
	 	 	 
	
              ARTICLE
                I — SPECIFICATIONS AND CLASS OF VESSEL

            	 
	 	 
	
              1.

            	
              Specifications
                

            	
              P-2

            
	 	 	 
	
              2.

            	
              Principal
                Particulars 

            	
              P-2

            
	 	 	 
	
              3.

            	
              Class
                and Rules 

            	
              P-3

            
	 	 	 
	
              4.

            	
              Places
                of Assembly and Construction

            	
              P-4

            
	 	 	 
	
              5.

            	
              Subcontracting
                

            	
              P-4

            
	 	 	 
	
              6.

            	
              Registration
                of Vessel 

            	
              P-4

            
	 	 	 
	
              7.

            	
              Obligations
                of the Builder 

            	
              P-4

            
	 	 	 
	
              ARTICLE
                II — CONTRACT PRICE AND TERMS OF PAYMENT

            	 
	 	 
	
              1.

            	
              Contract
                Price 

            	
              P-5

            
	 	 	 
	
              2.

            	
              Adjustment
                of Contract Price 

            	
              P-5

            
	 	 	 
	
              3.

            	
              Currency
                

            	
              P-5

            
	 	 	 
	
              4.

            	
              Due
                Date and Due Amount of Payment 

            	
              P-5

            
	 	 	 
	
              5.

            	
              Method
                of Payment 

            	
              P-6

            
	 	 	 
	
              6.

            	
              Notice
                of Payment 

            	
              P-7

            
	 	 	 
	
              7.

            	
              Performance
                Guarantee 

            	
              P-7

            
	 	 	 
	
              8.

            	
              Prepayment
                

            	
              P-8

            
	 	 	 
	
              ARTICLE
                III —ADJUSTMENT OF CONTRACT PRICE

            	 
	 	 
	
              1.

            	
              Delayed
                Delivery 

            	
              P-9

            
	 	 	 
	
              2.

            	
              Insufficient
                Speed 

            	
              P-10

            
	 	 	 
	
              3.

            	
              Excessive
                Fuel Consumption 

            	
              P-10

            
	 	 	 
	
              4.

            	
              Deficiency
                in Deadweight 

            	
              P-11

            
	 	 	 
	
              5.

            	
              Duty
                to Mitigate 

            	
              P-11

            
	 	 	 
	
              6.

            	
              Expedited
                Delivery 

            	
              P-11

            

    

     

    
      
        
        

      

        II

        

        

      

      
        
        

      

    
     

    
      	
              ARTICLE
                IV — MODIFICATIONS AND CHANGES

            	 
	 	 
	
              1.

            	
              Modifications
                to Specifications 

            	
              P-13

            
	 	 	 
	
              2.

            	
              Changes
                in Class, etc 

            	
              P-13

            
	 	 	 
	
              3.

            	
              Substitution
                of Materials 

            	
              P-15

            
	 	 	 
	
              ARTICLE
                V — APPROVAL OF DRAWINGS AND INSPECTION

            	 
	 	 
	
              1.

            	
              Appointment
                of Buyer’s Representative 

            	
              P-16

            
	 	 	 
	
              2.

            	
              Approval
                of Drawings 

            	
              P-16

            
	 	 	 
	
              3.

            	
              Inspection
                by Buyer 

            	
              P-16

            
	 	 	 
	
              4.

            	
              Facilities
                

            	
              P-17

            
	 	 	 
	
              5.

            	
              Liability
                of Seller and/or Builder 

            	
              P-18

            
	 	 	 
	
              6.

            	
              Responsibility
                of Buyer 

            	
              P-18

            
	 	 	 
	
              ARTICLE
                VI — SEA TRIAL

            	 
	 	 
	
              1.

            	
              Notice
                

            	
              P-19

            
	 	 	 
	
              2.

            	
              Weather
                Condition 

            	
              P-19

            
	 	 	 
	
              3.

            	
              How
                conducted 

            	
              P-19

            
	 	 	 
	
              4.

            	
              Method
                of Acceptance or Rejection 

            	
              P-20

            
	 	 	 
	
              5.

            	
              Effect
                of Acceptance 

            	
              P-20

            
	 	 	 
	
              6.

            	
              Disposition
                of Remaining Consumable Stores

            	
              P-21

            
	 	 	 
	
              ARTICLE
                VII —DELIVERY

            	 
	 	 
	
              1.

            	
              Time
                and Place

            	
              P-22

            
	 	 	 
	
              2.

            	
              When
                and How Effected 

            	
              P-22

            
	 	 	 
	
              3.

            	
              Documents
                to be Delivered to Buyer 

            	
              P-22

            
	 	 	 
	
              4.

            	
              Title
                and Risk 

            	
              P-23

            
	 	 	 
	
              5.

            	
              Removal
                of Vessel

            	
              P-23

            
	 	 	 
	
              ARTICLE
                VIII — DELAY AND EXTENSION OF TIME FOR DELIVERY (FORCE
                MAJEURE)

            	 
	 	 
	
              1.

            	
              Clause
                of Delay 

            	
              P-24

            

    

     

    
      
        
        

      

        III

        

        

      

      
        
        

      

    
     

    
      	
              2.

            	
              Notice
                

            	
              P-24

            
	 	 	 
	
              3.

            	
              Right
                to Rescind for Excessive Permissible Delay 

            	
              P-25

            
	 	 	 
	
              4.

            	
              Right
                to Rescind for Excessive Delay 

            	
              P-25

            
	 	 	 
	
              5.

            	
              Definition
                of Permissible Delay 

            	
              P-26

            
	 	 	 
	
              ARTICLE
                IX — WARRANTY

            	 
	 	 
	
              1.

            	
              Warranty
                and Warranty Period 

            	
              P-27

            
	 	 	 
	
              2.

            	
              Notice
                of Defects 

            	
              P-27

            
	 	 	 
	
              3.

            	
              Extent
                of Seller’s and Builder’s Liability 

            	
              P-27

            
	 	 	 
	
              4.

            	
              Remedy
                of Defects Covered by Warranty 

            	
              P-28

            
	 	 	 
	
              5.

            	
              Freight
                Charges 

            	
              P-28

            
	 	 	 
	
              6.

            	
              Conditions
                of Warranty 

            	
              P-29

            
	 	 	 
	
              7.

            	
              Warranty
                to be Exclusive 

            	
              P-29

            
	 	 	 
	
              8.

            	
              Assignment
                of Rights 

            	
              P-29

            
	 	 	 
	
              9.

            	
              Arbitration
                

            	
              P-29

            
	 	 	 
	
              ARTICLE
                X — RESCISSION BY BUYER

            	 
	 	 
	
              1.

            	
              Notice
                

            	
              P-30

            
	 	 	 
	
              2.

            	
              Refund
                to Buyer 

            	
              P-30

            
	 	 	 
	
              3.

            	
              Discharge
                of Obligations 

            	
              P-30

            
	 	 	 
	
              4.

            	
              Refund
                Guarantee 

            	
              P-30

            
	 	 	 
	
              ARTICLE
                XI — BUYER’S DEFAULT

            	 
	 	 
	
              1.

            	
              Definition
                of Default 

            	
              P-32

            
	 	 	 
	
              2.

            	
              Interest
                and Charge 

            	
              P-32

            
	 	 	 
	
              3.

            	
              Effect
                of Default 

            	
              P-32

            
	 	 	 
	
              4.

            	
              Disposal
                of Vessel 

            	
              P-33

            
	 	 	 
	
              ARTICLE
                XII — BUILDER’S INSURANCE

            	 
	 	 
	
              1.

            	
              Extent
                of Insurance Coverage 

            	
              P-34

            

    

     

    
      
        
        

      

        IV

        

        

      

      
        
        

      

    
     

    
      	
              2.

            	
              Application
                of Recovered Amount 

            	
              P-34

            
	 	 	 
	
              3.

            	
              Termination
                of Seller’s and Builder’s Obligation to Insure 

            	
              P-35

            
	 	 	 
	
              ARTICLE
                XIII — DISPUTES AND ARBITRATION

            	 
	 	 
	
              1.

            	
              Disputes
                

            	
              P-36

            
	 	 	 
	
              2.

            	
              Arbitration
                

            	
              P-36

            
	 	 	 
	
              3.

            	
              Alteration
                of Expected Delivery Date 

            	
              P-36

            
	 	 	 
	
              ARTICLE
                XIV — RIGHT OF ASSIGNMENT

            	
              P-38

            
	 	 
	
              ARTICLE
                XV — TAXES AND DUTIES

            	 
	 	 
	
              1.

            	
              Taxes
                and Duties Imposed in Japan 

            	
              P-39

            
	 	 	 
	
              2.

            	
              Taxes
                and Duties Imposed outside Japan 

            	
              P39

            
	 	 	 
	
              ARTICLE
                XVI — PATENTS, TRADEMARKS AND COPYRIGHTS, ETC.

            	 
	 	 
	
              1.

            	
              Patents,
                Trademarks and Copyrights 

            	
              P-40

            
	 	 	 
	
              2.

            	
              Specifications,
                Plans and Drawings 

            	
              P-40

            
	 	 	 
	
              ARTICLE
                XVII — BUYER’S SUPPLIES

            	 
	 	 
	
              1.

            	
              Responsibility
                of Buyer 

            	
              P-41

            
	 	 	 
	
              2.

            	
              Responsibility
                of Seller and/or Builder 

            	
              P-41

            
	 	 	 
	
              3.

            	
              Running
                Spares, Stores, Provisions and Other Supplies 

            	
              P-42

            
	 	 	 
	
              ARTICLE
                XVIII — NOTICE

            	
              P-43

            
	 	 
	
              ARTICLE
                XIX — EFFECTIVE DATE OF CONTRACT

            	
              P-44

            
	 	 
	
              ARTICLE
                XX — SELLER’S AND/OR BUILDER’S DEFAULT

            	
              P-45

            
	 	 
	
              ARTICLE
                XXI — INTERPRETATION

            	 
	 	 
	
              1.

            	
              Law
                and Regulations Applicable

            	
              P-46

            
	 	 	 
	
              2.

            	
              Discrepancies
                

            	
              P-46

            
	 	 	 
	
              3.

            	
              Entire
                Agreement

            	
              P-46

            
	 	 	 
	
              END
                OF CONTRACT

            	
              P-47

            
	 	 	 
	
              EXHIBIT
                “A” — Stage Certificate

            	 

    

     

    
      
        
        

      

        V

        

        

      

      
        
        

      

    
     

    
      	
              EXHIBIT
                “B” — Performance Guarantee

            	 
	 	 
	
              EXHIBIT
                “C” — Refund Guarantee

            	 

    

     

    
      
        
        

      

        VI

        

        

      

      
        
        

      

    
     

    SHIPSALES
      CONTRACT

    FOR
      CONSTRUCTION AND SALE

    OF
      A 87,000 MTDW SINGLE SCREW

    DIESEL
      DRIVEN BULK CARRIER

    HULL
      NO. 3254

     

    THIS
      CONTRACT,
      made
      and entered into this 28th day of August, 2006 by and between ENIAPROHI
      SHIPPING CORPORATION,
      a
      corporation organized and existing under the laws of Liberia having its
      registered office at 80 Broad Street, Monrovia (hereinafter called the “Buyer”),
      the party of the first part, and ITOCHU
      CORPORATION,
      a
      corporation organized and existing under the laws of Japan, having its
      registered office at 5-1, Kita-Aoyama 2 chome, Minato-ku, Tokyo, 107-8077,
      Japan, (hereinafter called the “Seller), the party of the second
      part.

     

    WITNESSETH:

     

    In
      consideration of the mutual covenants herein contained, the Seller agrees to
      cause IHI
      MARINE UNITED INC.,
      a
      corporation organized and existing under the laws of Japan, having its
      registered office at 22-23, Kaigan 3-chome, Minato-ku, Tokyo 108-0022, Japan
      (hereinafter called the “Builder”) to construct, equip and complete one (1) unit
      of Bulk Carrier as more fully described in Article I hereof (hereinafter called
      the “Vessel”) at one of the Builder’s shipyards in Yokohama or Kure, Japan
      (hereinafter called the “Shipyard”) and sell and deliver the Vessel to the
      Buyer, and the Buyer agrees to purchase and take delivery of the Vessel from
      the
      Seller and to pay for the same, subject to and in accordance with the terms
      and
      conditions hereinafter set forth.

     

    
      
        
        

      

        1

        

        

      

      
        
        

      

    
     

    ARTICLE
      I — SPECIFICATIONS AND CLASS OF VESSEL

     

    
      	1.	
              Specifications:

            

    

     

    The
      Vessel which has been designed by the Builder shall have the Builder’s Hull No.
      3254 and shall be constructed, equipped and completed in compliance with the
      following documents:

     

    Specifications
      (Dwg. No. K0000301)

     

    General
      Arrangement (Dwg. No. K2000401)

     

    (The
      above two (2) documents are hereinafter collectively called the
“Specifications”)

     

    The
      Shipbuilding Process and Inspection Standard, 2002 (SPAIS
      2002)

     

    Quality
      & Inspection.
      Standard
      for Ship’s Painting, 2002 (QISSP
      2002)

     

    (The
      above two (2) documents are hereinafter collectively called the “Inspection
      Standards”)

     

    The
      Specifications and the Inspection standards signed by the parties hereto are
      attached hereto for identification and form an integral part
      hereof.

     

    
      	2.	
              Principal
                Particulars:

            

    

     

    The
      principal particulars of the Vessel shall be as follows:

     

    
      	
            	(a)	
              Hull:

            

    

     

    
      	
              Length
                overall

            	approx.	
              229.00
                m

            
	 	 	 
	
              Length
                between perpendiculars

            	 	
              219.90
                m

            
	 	 	 
	
              Breadth,
                moulded

            	 	
              36.50
                m

            
	 	 	 
	
              Depth,
                moulded

            	 	
              19.90
                m

            
	 	 	 
	
              Designed
                draught, moulded

            	 	
              12.40
                m

            
	 	 	 
	
              Scantling
                draught, moulded

            	 	
              14.10
                m

            

    

     

    
      	
            	(b)	
              Propelling
                Machinery:

            

    

     

    
      	
              Type

            	
              DU
                WARTSILA 6RTA58T

            
	 	 
	
              No.
                of Set

            	
              One
                (1)

            
	 	 
	
              Normal
                Output

            	
              8,550
                KW at about 89.3 RPM

            

    

     

    
      
        
        

      

        2

        

        

      

      
        
        

      

    
     

    
      	
              Maximum
                Continuous Output

            	
              10,300
                KW at about 95.0 RPM

            

    

     

    
      	
            	(c)	
              Deadweight:

            

    

     

    For
      the
      purposes of reduction or increase in the Contract Price (as defined in Paragraph
      1 of Article II hereof) or rescission by the Buyer of this Contract, only under
      Article III hereof, the Builder guarantees that the deadweight of the Vessel
      at
      the scantling draught as determined in accordance with the Specifications shall
      not be less than 86,800 metric tons (hereinafter called the “Guaranteed
      Deadweight”).

     

    The
      actual deadweight of the Vessel when completed shall be calculated by the
      Builder in accordance with the Specifications.

     

    
      	
            	(d)	
              Speed:

            

    

     

    For
      the
      purposes of reduction in the Contract Price or rescission by the Buyer of this
      Contract, only under Article III hereof, the Builder guarantees that the trial
      speed of the Vessel as determined in accordance with the Specifications shall
      not be less than 15.45 knots (hereinafter called the “Guaranteed Speed”) at a
      normal output of the main engine in clean bottom, calm and deep
      sea.

     

    In
      case
      of rough sea and/or shallow water condition at sea trial, the speed results
      shall be corrected to calm and deep sea condition according to the method
      prescribed in the Specifications.

     

    
      	
            	(e)	
              Fuel
                Consumption:

            

    

     

    For
      the
      purposed of reduction in the Contract Price or rescission by the Buyer of this
      contract, only under Article III hereof, the Builder guarantees that the fuel
      consumption of the main engine as determined in accordance with the
      Specifications shall not be more than 167.7 grams/kWh (hereinafter called the
      “Guaranteed Fuel Consumption”) at a normal output of the main engine using fuel
      oil having net calorific value of 42,700Kj/kg based on shop trial under ISO
      reference condition.

     

    
      	3.	
              Class
                and Rules:

            

    

     

    The
      Vessel, including its machinery, equipment and outfitting shall be constructed
      in accordance with the rules and requirements and under survey of Lloyd’s
      Register of Shipping (hereinafter called the “Classification Society”) and shall
      be distinguished in the register of the Classification Society by the symbols
      of
Δ100A1
      Bulk Carrier, BC-A, Strengthened for Heavy Cargoes, Holds Nos. 2, 4 & 6
      may be empty, ShipRight (SDA, FDA, CM), ESN, ESP, LI, ΔLMC,
      UMS,
      *IWS.

     

    The
      Vessel shall also comply with the rules, regulations and requirements of other
      regulatory bodies as described in the Specifications. The Seller or the Builder
      shall provide the Buyer with a copy of all correspondence e-mails
      and

     

    
      
        
        

      

        3

        

        

      

      
        
        

      

    
     

    notes
      of
      meetings with the Classification Society in respect of any particular matter
      whenever requested in writing by the Buyer.

     

    All
      the
      foregoing rules, regulations and requirements including those of the
      Classification Society applicable to the Vessel shall be those which are
      published as of the date of this Contract and which are in force or will have
      mandatory application to the Vessel.

     

    All
      fees
      and charges incidental to compliance with the foregoing rules, regulations
      and
      requirements shall be for the account of the Builder.

     

    
      	4.	
              Places
                of Assembly and Construction:

            

    

     

    Save
      as
      provided in paragraph 5 the Vessel shall be assembled, constructed,
      equipped, launched and completed at the Shipyard. The Builder may not without
      the Buyer’s prior written consent fabricate, assemble or manufacture any parts
      and/or any components of the Vessel at any places other than the Shipyard or
      at
      one of its other facilities in Japan at the Builder’s discretion and
      responsibility.

     

    
      	5.	
              Subcontracting:

            

    

     

    In
      addition to any parts of the Vessel specified and agreed in the Specification
      the Builder may also at its sole discretion and responsibility subcontract
      the
      construction of any part of the vessel in Japan. The Builder shall not
      subcontract the construction of the hull structure, superstructure and rudder
      of
      the Vessel outside Japan in excess of 250 metric tons without the Buyer’s prior
      written consent (which consent shall not be unreasonably withheld).

     

    
      	6.	
              Registration
                of Vessel:

            

    

     

    The
      Vessel shall be registered by the Buyer at its own cost and expense under the
      laws of Cyprus with its home port of Limassol.

     

    
      	7.	
              Obligations
                of the Builder:

            

    

     

    Any
      obligations hereunder of the Builder are obligations of the Seller. The Seller
      is fully responsible hereunder for the due performance of all the Builder’s
      rights and obligations as “Builder” in accordance with the terms and conditions
      of this Contract. A copy of this Contract will be provided by the Seller to
      the
      Builder and the Seller warrants that the Builder will comply with its
      obligations hereunder.

     

    (End
      of
      Article)

     

    
      
        
        

      

        4

        

        

      

      
        
        

      

    
     

    ARTICLE
      II — CONTRACT PRICE AND TERMS OF PAYMENT

     

    
      	1.	
              Contract
                Price:

            

    

     

    The
      total
      purchase price of the Vessel net receivable by the Seller and exclusive of
      the
      Buyer’s Supplies (as defined in Paragraph 1 of Article XVII hereof but inclusive
      of the cost of storing, insuring, handling and installing the same in the
      vessel) is Four Billion Two Hundred Sixty Million Japanese Yen
      (JPY4,260,000,000.-) (hereinafter called the “Contract Price”) subject only to
      upward or downward adjustment, if any, as hereinafter set forth in this
      Contract.

     

    
      	2.	
              Adjustment
                of Contract Price:

            

    

     

    Adjustment
      of the Contract Price, if any, in accordance with the provisions of this
      Contract shall be made by way of addition to or subtraction from the instalment
      due and payable upon delivery of the Vessel in the manner as hereinafter
      provided.

     

    
      	3.	
              Currency:

            

    

     

    Any
      and
      all payments by the Buyer to the Seller under this Contract shall be made in
      Japanese Yen.

     

    
      	4.	
              Due
                Date and Due Amount of Payment:

            

    

     

    The
      Contract Price shall be payable by the Buyer to the Seller on and in the
      following due dates and instalments without any deduction
      whatsoever.

     

    Any
      and
      all expenses for remittance and any other charges of any nature whatsoever
      connected with the following payments by the Buyer to the Seller shall be for
      the account of the Buyer.

     

    
      	
            	(a)	
              First
                Instalment:

            

    

     

    Five
      Hundred Fifty Million Japanese Yen (JPY550,000,000.-) shall be due and payable
      upon the later of (i) the execution of this Contract and the Performance
      Guarantee relating hereto by all parties; and (ii) the date of delivery of
      the
      original letter of Refund Guarantee specified in Article X hereof to the Buyer
      at its address as set out in Article XVIII.

     

    
      	
            	(b)	
              Second
                Instalment

            

    

     

    Four
      Hundred Million Japanese Yen (JPY400,000,000.-) shall be due and payable upon
      the later of (i) eighteen (18) months after the execution of this Contract;
      and (ii) the date of delivery of the original letter of Refund Guarantee in
      relation to the Second Instalment specified in Article X hereof to the Buyer
      at
      its address as set out in Article XVIII.

     

    
      
        
        

      

        5

        

        

      

      
        
        

      

    
     

    
      	
            	(c)	
              Third
                Instalment:

            

    

     

    Four
      Hundred Million Japanese Yen (JPY400,000,000.-) shall be due and payable upon
      the later of (i) the date of delivery to the Buyer’s Representative of a
      Stage Certificate in the form of Exhibit “A” attached hereto confirming keel
      laying of the Vessel has been completed and such Certificate being signed by
      the
      Classification Society Surveyor, the Builder and the Buyer’s Representative
      (provided however that in the event the Buyer’s Representative is absent from
      the Shipyard on the date the said Stage Certificate is to be signed, then the
      Buyer’s Representative’s signature will not be required in relation to the
      execution of such Stage Certificate); and (ii) the date of delivery of the
      original letter of Refund Guarantee in relation to the Third Instalment
      specified in Article X, paragraph 4 hereof to the Buyer at its address as set
      out in Article XVIII.

     

    
      	
            	(d)	
              Fourth
                Instalment:

            

    

     

    Four
      Hundred Million Japanese Yen (JPY400,000,000.-) shall be due and payable upon
      the later of (i) the date of delivery to the Buyer’s Representative of a Stage
      Certificate in the form of Exhibit “A” attached hereto confirming launching of
      the Vessel has been completed and such Certificate being signed by the
      Classification Society Surveyor, the Builder and the Buyer’s Representative
      (provided however that in the event the Buyer’s Representative is absent from
      the Shipyard on the date the said Stage Certificate is to be signed, then the
      Buyer’s Representative’s signature will not be required in relation to the
      execution of such Stage Certificate); and (ii) the date of delivery of the
      original letter of Refund Guarantee in relation to the Fourth Instalment
      specified in Article X, paragraph 4 hereof to the Buyer at its address as set
      out in Article XVIII.

     

    
      	
            	(e)	
              Fifth
                Instalment:

            

    

     

    Two
      Billion Five Hundred Ten Million Japanese Yen (JPY2,510,000,000.), plus any
      addition to or (as the case may be) less any deduction from the Contract Price
      due to adjustments of the Contract Price as set forth in this Contract, shall be
      due and payable upon delivery and acceptance of the Vessel by the Buyer in
      accordance with the terms of this Contract.

     

    PROVIDED
      HOWEVER,
      that
      none of the above instalments shall be payable if the Refund Guarantee referred
      to in Article X, paragraph 4 ceases to be in force and no substitute Refund
      Guarantee has been provided in accordance with the provisions of this
      Contract.

     

    The
      date
      on which any of the above instalments becomes due and payable pursuant to
      Article II, paragraph 4 of this Contract shall be herein referred to as the
“Due
      Date”.

     

    
      
        
        

      

        6

        

        

      

      
        
        

      

    
     

    
      	5.	
              Method
                of Payment:

            

    

     

    
      	
            	(a)	
              First
                Instalment:

            

    

     

    Within
      three (3) Banking days (as defined in Paragraph 1(a) of Article XI hereof)
      after
      the Due Date of the First Instalment, the Buyer shall remit the First Instalment
      by telegraphic transfer to the Seller’s account at a Japanese bank to be
      designated by the Seller (“the Seller’s Bank Account”) and advised to the Buyer
      reasonably in advance of the date of payment (such Japanese bank being
      hereinafter called “the Bank”).

     

    
      	
            	(b)	
              Second
                Instalment:

            

    

     

    Within
      three (3) Banking Days after the Due Date of the Second Instalment the Buyer
      shall remit the Second Instalment by telegraphic transfer to the Seller’s Bank
      Account.

     

    
      	
            	(c)	
              Third
                Instalment:

            

    

     

    Within
      three (3) Banking Days after the Due Date of the Third Instalment the Buyer
      shall remit the Third Instalment by telegraphic transfer to the Seller’s Bank
      Account.

     

    
      	
            	(d)	
              Fourth
                Instalment

            

    

     

    Within
      three (3) Banking Days after the Due Date of the Fourth Instalment the Buyer
      shall remit the Fourth Instalment by telegraphic transfer to the Seller’s Bank
      Account.

     

    
      	
            	(e)	
              Fifth
                Instalment:

            

    

     

    At
      least
      three (3) Banking Days prior to the anticipated delivery of the Vessel, the
      Buyer shall remit the Fifth Instalment as adjusted in accordance with the
      provisions of this Contract by telegraphic transfer to the Bank with an
      irrevocable instruction that the amount so remitted shall be paid into the
      Seller’s Bank Account upon presentation by the Seller to the Bank, of a copy of
      Protocol of Delivery and Acceptance of the Vessel executed by the Buyer and
      the
      Seller pursuant to Paragraph 2 of Article VII hereof.

     

    No
      payment under this Contract shall be delayed, suspended or withheld by the
      Buyer
      on account of any dispute or disagreement between the parties
      hereto.

     

    
      	6.	
              Notice
                of Payment:

            

    

     

    With
      exception of the First Instalment, the Seller shall give the Buyer seven (7)
      days prior notice in writing of the anticipated due date of payment of each
      instalment.

     

    
      
        
        

      

        7

        

        

      

      
        
        

      

    
     

    
      	7.	
              Performance
                Guarantee:

            

    

     

    As
      security for (i) due and punctual payments of all of the instalments of the
      Contract Price and all other sums of money due to the Seller hereunder and
      (ii) due and punctual performance of any and all other obligations of the
      Buyer whatsoever, the Buyer shall, upon signing of this Contract, furnish the
      Seller with a performance guarantee (hereinafter called the “Performance
      Guarantee”) in the form of Exhibit “B” attached to this Contract to be
      executed by a company nominated by the Buyer and approved by the
      Seller.

     

    Both
      the
      Seller and the Builder agree and undertake to safeguard, treat as confidential
      and not disclose to any person, authority or entity the existence and/or terms
      and conditions of the Performance Guarantee and this obligation of
      confidentiality shall continue even after the return of the Performance
      Guarantee to the issuer thereof.

     

    The
      Seller further agrees and undertakes to return to the issuer of the Performance
      Guarantee, the original thereof and all copies in their possession upon the
      earlier of (i) delivery and acceptance of the Vessel or (ii) rescission of
      this
      Contract by the Buyer in accordance with the terms hereof.

     

    
      	8.	
              Prepayment:

            

    

     

    Prepayment
      of any instalment shall be subject to mutual agreement between the parties
      hereto.

     

    (End
      of
      Article)

     

    
      
        
        

      

        8

        

        

      

      
        
        

      

    

    ARTICLE
      III — ADJUSTMENT OF CONTRACT PRICE

     

    The
      Contract Price shall be subject to adjustment as hereinafter set forth in the
      event of the following contingencies (it being understood by the parties hereto
      that any reduction in the Contract Price to be made hereunder is by way of
      liquidated damages and not by way of penalty):

     

    
      	1.	
              Delayed
                Delivery:

            

    

     

    
      	
              (a)

            	
              No
                adjustment shall be made and the Contract Price shall remain unchanged
                for
                the first thirty (30) days of delay in delivery of the Vessel beyond
                the
                Expected Delivery Date (as defined in Article VII hereof) as postponed
                and/or extended under the provisions of this Contract (ending as
                of twelve
                o’clock midnight of the thirtieth (30th)
                day of delay).

            
	 	 
	
              (b)

               

            	
              If
                delivery of the Vessel is delayed more than thirty (30) days after
                the
                Expected Delivery Date as postponed and/or extended under the provisions
                of this Contract, the Contract Price shall be reduced by deducting
                therefrom the amount of One Million One Hundred Eighty Three Thousand
                Japanese Yen (JPY1,183,000) for each day of delay over the aforesaid
                grace
                of thirty (30) days. However, the maximum reduction in the Contract
                Price
                shall in no event be more than the amount in the case of a delay
                of one
                hundred eighty (180) days after the aforesaid grace of thirty (30)
                days.

            
	 	 
	
              (c)

               

            	
              If
                delay in delivery of the Vessel continues for a period of one hundred
                eighty (180) days from the thirty-first (31st)
                day after the Expected Delivery Date as postponed and/or extended
                under
                the provisions of this Contract, then, the Buyer shall have the option
                either to accept the Vessel at a maximum reduction in the Contract
                Price
                as above provided or to rescind this Contract in accordance with
                the
                provisions of Article X hereof as alternative to receiving the aforesaid
                liquidated damages. At any time after the expiry of the aforementioned
                one
                hundred eighty (180) day period of delay in delivery the Seller may,
                if
                the Buyer has not served notice of rescission, propose a new delivery
                date
                and demand in writing that the Buyer shall make an election, in which
                case
                the Buyer shall, within fifteen (15) days after such proposal and
                demand
                is received by the Buyer, notify the Seller of its intention either
                to
                rescind this Contract or to consent to delivery of the Vessel at
                a future
                date to be mutually agreed failing which it will be deemed that it
                has
                elected that the delivery of the Vessel takes place on the proposed
                new
                delivery date; it being understood and agreed upon by the parties
                hereto
                that (i) if the Buyer does not elect to rescind the Contract it shall
                be
                without prejudice to its right to accrued liquidated damages; and
                (ii) if
                the Vessel is not delivered by such future date (agreed or proposed),
                the
                Buyer shall have the same right of rescission to take effect immediately
                after the said further date upon the same terms as hereinabove
                provided.

            
	 	 
	
              (d)

               

            	
              For
                the purpose of this Article, the delivery of the Vessel shall be
                deemed to
                be delayed when and if the Vessel, after taking into full account
                all
                postponements of the Expected Delivery Date by reason of
                permissible

            

    

     

    
      
        
        

      

        9

        

        

      

      
        
        

      

    
     

    
      	 	delays
              defined in Article VIII hereof and/or extension of the Expected Delivery
              Date by other reasons under this Contract, is not delivered by the
              Expected Delivery Date so postponed or
              extended.

    

     

    
      	2.	
              Insufficient
                Speed:

            

    

     

    
      	
              (a)

            	
              The
                Contract Price shall not be affected or changed by reason of the
                trial
                speed, as determined in accordance with the Specifications, being
                less
                than the Guaranteed Speed, if such deficiency is not more than
                three-tenths (3/10) of a knot.

            
	 	 
	
              (b)

               

            	
              However,
                if such deficiency is more than three-tenths (3/10) of a knot, then,
                the
                Contract Price shall be reduced by deducting therefrom the amount
                of Seven
                Million One Hundred Thousand Japanese Yen (JPY7,100,000) per one-tenth
                (1/10) of a knot or deficiency over the aforesaid grace of three-tenths
                (3/10) of a knot (fractions of one-tenth (1/10) of a knot to be prorated).
                However, the maximum reduction in the Contract Price shall in no
                event be
                more than the amount in the case of a deficiency of seven-tenths
                (7/10) of
                a knot below the Guaranteed Speed.

            
	 	 
	
              (c)

               

            	
              If
                deficiency in the trial speed of the Vessel (as so determined) is
                more
                than seven-tenths (7/10) of a knot below the Guaranteed Speed, then,
                the
                Buyer shall have the option either to accept the Vessel at a maximum
                reduction in the Contract Price as above provided or to reject the
                Vessel
                and to rescind this Contract in accordance with provisions of Article
                X
                hereof as alternative to receiving the aforesaid liquidated
                damages.

            

    

     

    
      	3.	
              Excessive
                Fuel Consumption:

            

    

     

    
      	
              (a)

            	
              The
                Contract Price shall not be affected or changed, by reason of the
                fuel
                consumption of the main engine, as determined in accordance with
                the
                Specifications, being more than the Guaranteed Fuel Consumption,
                if such
                excess is not more than three percent (3%) over the Guaranteed Fuel
                Consumption.

            
	 	 
	
              (b)

            	
              However,
                if such excess is more than three percent (3%), then, the Contract
                Price
                shall be reduced by deducting therefrom the amount of Seven Million
                One
                Hundred Thousand Japanese Yen (JPY7,100,000) for each one percent
                (1%)
                increase in fuel consumption above the aforesaid grace of three percent
                (3%) (fractions of one percent (1%) to be prorated). However, the
                maximum
                reduction in the Contract Price shall in no event be more than the
                amount
                in the case of an excess of eight percent (8%) over the aforesaid
                Guaranteed Fuel Consumption.

            
	 	 
	
              (c)

               

            	
              If
                the fuel consumption of the main engine exceeds the Guaranteed Fuel
                Consumption by more than eight percent (8%), then, the Buyer shall
                have
                the option either to accept the Vessel at a maximum reduction in
                the
                Contract Price as above provided or to reject the Vessel and to rescind
                this Contract in accordance with provisions of Article X hereof as
                alternative to receiving the aforesaid liquidated
                damages.

            

    

     

    
      
        
        

      

        10

        

        

      

      
        
        

      

    
     

    
      	4.	
              Deficiency
                in Deadweight:

            

    

     

    
      	
              (a)

            	
              The
                Contract Price shall not be affected or changed by reason of the
                deadweight of the Vessel, as determined in accordance with the
                Specifications, being less than the Guaranteed Deadweight, if such
                deficiency is not more than 800 metric tons of the Guaranteed
                Deadweight.

            
	 	 
	
              (b)

            	
              However,
                if such deficiency is more than 800 metric tons, the Contract Price
                shall
                be reduced by deducting therefrom the amount of Fifty Five Thousand
                Two
                Hundred Japanese Yen (JPY55,200) for each full metric ton of such
                deficiency over the aforesaid grace of 800 metric tons (in this case
                disregarding fractions of one (1) metric ton).

            
	 	 
	 	
              However,
                the maximum reduction in the Contract Price shall in no event be
                more than
                the amount in the case of a deficiency of 1,800 metric tons below
                the
                Guaranteed Deadweight.

            
	 	 
	
              (c)

               

            	
              In
                the event that such deficiency in the Vessel’s deadweight is more than
                1,800 metric tons the Buyer shall have the option either to accept
                the
                Vessel at a maximum reduction in the contract Price as above provided
                or
                to reject the Vessel and to rescind this Contract in accordance with
                provisions of Article X hereof as alternative to receiving the aforesaid
                liquidated damages.

            

    

     

    
      	5.	
              Duty
                to Mitigate:

            

    

     

    Notwithstanding
      the provisions of this Article III, the Seller and/or the Builder shall have
      a
      duty to investigate and if possible rectify the cause of an insufficiency in
      speed, deadweight or an excess in fuel consumption prior to the delivery of
      the
      Vessel to the Buyer. It is hereby understood and agreed by the seller and/or
      the
      Builder that the Seller will seek to deliver the Vessel by adjusting the
      Contract Price, if necessary, in accordance with the provisions of this Article
      III, only if after using their best endeavors such insufficiency or excess
      cannot be corrected.

     

    
      	6.	
              Expedited
                Delivery:

            

    

     

    
      	
              (a)

               

            	
              If
                the Buyer requests in writing that the delivery of the Vessel be
                made
                earlier than the Expected Delivery Date and if the Vessel is delivered,
                in
                response to such request of the Buyer, then, in such event, the Contract
                Price shall be increased by adding thereto the amount of One Million
                One
                Hundred Eighty Three Thousand Japanese Yen (JPY1,183,000) for each
                day
                that such earlier delivery is effected in advance of the Expected
                Delivery
                Date or from an earlier delivery date as declared in writing by the
                Seller
                to the Buyer if such earlier delivery date is already declared before
                being so requested by the Buyer; it being understood that acceptance
                by
                the Seller of the Buyer’s request for earlier delivery shall, in no way,
                be construed as change of the Expected Delivery
                Date.

            

    

     

    
      
        
        

      

        11

        

        

      

      
        
        

      

    
     

    
      	
              (b)

            	
              Should
                the Builder deliver the Vessel earlier than the Expected Delivery
                Date
                without request by the Buyer, the Buyer shall accept such earlier
                delivery
                of the Vessel, always provided that the Seller or the Builder has
                given
                the Buyer three (3) months notice in writing or by fax or telex of
                the
                proposed earlier delivery date.

            

    

     

    (End
      of
      Article)

     

    
      
        
        

      

        12

        

        

      

      
        
        

      

    

    ARTICLE
      IV — MODIFICATIONS AND CHANGES

     

    
      	1.	
              Modifications
                to Specifications:

            

    

     

    
      	
              (a)

               

            	
              Upon
                the Buyer’s request in writing, the Specifications may be modified and /or
                changed provided that such modifications or changes or an accumulation
                of
                such modifications or changes will in the Builder’s reasonable judgment
                neither adversely affect the Builder’s design of the Vessel nor adversely
                affect the Builder’s construction schedule of the Vessel or program in
                relation to the Builder’s other binding commitments, provided always that
                the Buyer shall first agree, before such modifications or changes
                are
                carried out, to adjustments reasonably required by the Seller and/or
                the
                Builder to the Contract Price, the Expected Delivery Date, the Guaranteed
                Speed, the Guaranteed Fuel Consumption, the Guaranteed Deadweight
                and/or
                other terms and conditions of this Contract and the Specifications,
                if
                any, caused by such modifications or changes. Such modifications
                or
                changes and adjustment shall be confirmed by written agreement between
                the
                parties hereto, or by exchange of fax messages and thereafter effected
                by
                the Builder. The Builder will exert its best efforts to accommodate
                such
                request of the Buyer so that the said changes and modifications shall
                be
                made at the Builder’s lowest possible cost and within the shortest period
                of time as is reasonably possible.

            
	 	 
	
              (b)

               

            	
              Without
                impairing the intent of the Specifications, the Builder may make
                minor
                modifications or changes to the Specifications if found necessary
                for the
                introduction of improved design, construction methods or otherwise,
                provided that there shall be no change in the Contract Price as a
                result
                of such changes unless otherwise agreed upon between the parties
                hereto
                and that the Seller shall first obtain the Buyer’s approval in writing
                which shall not be unreasonably
                withheld.

            

    

     

    
      	2.	
              Changes
                in Class. etc.:

            

    

     

    
      	
              (a)

               

            	
              If,
                after the date of this Contract, any requirements as to class, to
                which
                the construction of the Vessel is required to conform, are altered
                or
                changed by the Classification Society, and the classification certificate
                cannot be obtained without conformity with such alterations or changes,
                then, any Party (including the Builder) who becomes aware of the
                change
                shall forthwith transmit such information in full to the other in
                writing
                and then the Builder shall promptly incorporate such alterations
                or
                changes into the construction of the Vessel, provided that the Buyer
                shall
                first agree to adjustments reasonably required by the Seller and/or
                the
                Builder in the Contract Price, the Expected Delivery Date, the Guaranteed
                Speed, the Guaranteed Fuel Consumption, the Guaranteed Deadweight
                and
                other terms and conditions of this Contract and the Specifications,
                if
                any, caused by the application of such alterations or
                changes.

            
	 	 
	
            	
              Such
                alterations or changes and adjustments shall be confirmed by written
                agreement between the parties hereto, or by exchange of
                faxes.

            

    

     

    
      
        
        

      

        13

        

        

      

      
        
        

      

    
     

    
      	 	
              Notwithstanding
                the foregoing provisions, the Buyer may, at its sole discretion first
                apply to the Classification Society for a formal waiver of compliance
                with
                such alterations or changes provided however that the Buyer shall
                take
                into account the Builder’s request that the Buyer applies for a
                waiver.

            
	 	 
	
              (b)

               

            	
              If,
                after the date of this Contract, any requirements under the rules
                and
                regulations other than those of the Classification Society, to which
                the
                construction of the Vessel is required in the Specifications to conform,
                are altered or changed by the regulatory bodies authorized to make
                such
                alterations or changes, and the certificates of such regulatory bodies
                cannot be obtained without conformity with such alterations or changes,
                then any Party (including the Builder) who becomes aware of the change
                shall forthwith transmit such information in full to the other in
                writing
                and then the Builder shall promptly incorporate such alterations
                or
                changes into the construction of the Vessel, provided that the Buyer
                shall
                first agree to the adjustment reasonably required by the Seller and/or
                the
                Builder in the Contract Price, the Expected Delivery Date, the Guaranteed
                Speed, the Guaranteed Fuel Consumption, the Guaranteed Deadweight
                and
                other terms and conditions of this Contract and the Specifications
                if any,
                caused by the application of such alterations or
                changes.

            
	 	 
	 	
              Such
                alterations or changes and adjustments shall be confirmed by written
                agreement between the parties hereto, or by exchange of
                faxes.

            
	 	 
	 	
              Notwithstanding
                the foregoing provisions, the Buyer may, at its sole discretion first
                apply to such regulatory body or bodies for a formal waiver of compliance
                with such alterations or changes provided however that the Buyer
                shall
                take into account the Builder’s request that the Buyer applies for a
                waiver.

            
	 	 
	
              (c)

               

            	
              If,
                after the date of this Contract, any requirements as to class, or
                under
                the other rules and regulations which are irrelevant to or unnecessary
                in
                obtaining the classification certificates or the certificates of
                such
                other regulatory bodies are altered or changed by the Classification
                Society or such other regulatory bodies, and the Buyer desires to
                incorporate such alterations or changes into the construction of
                the
                Vessel, then, the Buyer shall give a written notice of such intention
                to
                the Seller and the Builder. The Builder will in the Builder’s reasonable
                judgment accept such alterations or changes, if those alterations
                or
                changes will neither adversely affect the Builder’s design of the Vessel
                nor adversely affect the Builder’s construction schedule of the Vessel
                and/or program in relation to the Builder’s other binding commitments,
                provided always that the Buyer shall first agree to adjustments reasonably
                required by the Seller and/or the Builder in the Contract Price,
                the
                Expected Delivery Date, the Guaranteed Speed, the Guaranteed Fuel
                Consumption, the Guaranteed Deadweight and other terms and conditions
                of
                this Contract and the Specifications, if any, caused by application
                of
                such alterations or changes.

            

    

     

    
      
        
        

      

        14

        

        

      

      
        
        

      

    
     

    
      	 	
              Such
                alterations or changes and adjustments shall be confirmed by written
                agreement between the parties hereto, or by exchange of letters or
                cables
                confirmed in writing.

            

    

     

    
      
        	3.	
                Substitution
                  of Materials:

              

      

    

     

    In
      the
      event that any of the materials, or machinery or equipment required by the
      Specifications or otherwise under this Contract for the construction of the
      Vessel cannot be procured to meet the Builder’s construction schedule of the
      Vessel, or are in short supply, the Builder may supply other materials or
      machinery or equipment of equivalent quality, capable of meeting the
      requirements of the Classification Society and of the other rules, regulations
      and requirements with which the construction of the Vessel must comply, provided
      that the Seller and/or the Builder shall first give the Buyer a notice to that
      effect, and shall first obtain the Buyer’s approval which shall not be
      unreasonably withheld and that there shall be no alteration to the Contract
      Price, Expected Delivery Date, the Guaranteed Speed, the Guaranteed Fuel
      Consumption or the Guaranteed Deadweight of the Vessel.

     

    (End
      of
      Article)

     

    
      
        
        

      

        15

        

        

      

      
        
        

      

    

    ARTICLE
      V — APPROVAL OF DRAWINGS AND INSPECTION

     

    
      	1.	
              Appointment
                of Buyer’s Representative:

            

    

     

    The
      Buyer
      may send to and maintain at the Shipyard, at the Buyer’s own cost and expense,
      one (1) representative who shall be duly authorized in writing by the Buyer
      (hereinafter called the “Representative” and an assistant or assistants (any
      experts appointed by the Representative are to be considered as the
      Representative’s assistants) to the Representative at the Buyer’s own cost and
      expense to act on behalf of the Buyer in connection with inspections, tests
      and
      trials, or any of them at the Buyer’s sole discretion and any other matters in
      respect of which he is specifically authorized by the Buyer in
      writing.

     

    
      	2.	
              Approval
                of Drawings:

            

    

     

    
      	
              (a)

               

            	
              The
                Builder shall submit to the Head Office of the Buyer at its address
                as set
                out in Article XVIII for its approval three (3) copies each of the
                drawings listed in the Specifications in hard copy. The Buyer shall,
                as
                soon as possible but within twenty one (21) days after dispatch thereof
                by
                the Builder at the latest, return to the Builder one (1) copy of
                such
                drawings with its approval or comments written thereon. Any alteration
                to
                the specifications resulting from such comments shall be dealt with
                in
                accordance with Article IV hereof. A list of the Plans and Drawings
                to be
                so submitted to the Buyer and the order of submission thereof shall
                be
                mutually agreed upon between the Builder and the Buyer.

            
	 	 
	
              (b)

            	
              In
                the event that the Buyer shall fail to return the drawings to the
                Builder
                within the time limit hereinabove provided, the said drawings shall
                be
                deemed to have been approved without any
                comments.

            

    

     

    
      	3.	
              Inspection
                by Buyer:

            

    

     

    The
      construction of the Vessel, its machinery, equipment and outfitting shall be
      subjected, throughout the entire period of construction, to a planned system
      of
      quality control inspections administered and recorded by a quality control
      department of the Shipyard in accordance with the Inspection Standards to ensure
      that the Vessel complies with the Specification and the Contract. The necessary
      tests and inspections of the Vessel, the machinery, equipment and outfitting
      by
      the Classification Society and other regulatory bodies concerned shall also
      be
      carried out and recorded. The Representative may attend any or all of the said
      inspections at the Buyer’s cost and expense, during construction of the Vessel;
      and/or testing and inspection of the Vessel, its machinery and equipment in
      accordance with the Inspection Standards.

     

    The
      Builder shall give to the Representative at lease twenty-four (24) hours advance
      notice stating particulars of any tests or inspections to be carried out and
      the
      date and place at which they are to be carried out, provided that in exceptional
      circumstances the manner in which such notice is given may be modified by mutual
      agreement. The Builder shall try to ensure that there is no overlapping between
      any such tests and inspections.

     

    
      
        
        

      

        16

        

        

      

      
        
        

      

    
     

    Failure
      of the Representative to be present at the tests and inspections after due
      notice to him or to one of his assistants in case of his absence shall be deemed
      to be a waiver of his right to be present.

     

    During
      working hours in the course of construction of the Vessel until delivery
      thereof, the Buyer may carry out its own inspections and the Representative
      and
      his assistant(s) shall be given free and ready access to the Vessel, its
      machinery and equipment, and to any other place where work is being done, or
      materials are being processed or stored, in connection with construction of
      the
      Vessel, including the yards, workshops, stores and offices of the Builder,
      and
      the premises of subcontractors of the Builder, who are doing work or processing
      or storing materials in connection with construction of the Vessel, save and
      except areas which are controlled for purposes of national security or
      otherwise, provided that the Representative or his assistant(s) shall not
      disturb or obstruct the Builder or its subcontractors in construction of the
      Vessel.

     

    In
      the
      event that the Representative discovers any material or workmanship which does
      not conform to the requirements of this Contract and the Specifications, the
      Representative shall promptly give the Seller and/or the Builder a notice in
      writing as to such non-conformity, upon receipt of which the Builder shall
      correct such non-conformity or if the Builder does not agree it shall respond
      in
      writing within seven (7) days of receipt of the notice stating the reasons
      why
      it does not agree.

     

    In
      the
      event that a difference of opinion between the parties hereto arises during
      construction of the Vessel or prior to delivery of the Vessel concerning
      technical matters in respect of the construction of the Vessel, its machinery
      and equipment, or in respect of the materials or workmanship thereof, or in
      respect of interpretations of the Specifications and/or the Inspection
      Standards, such difference of opinion may be referred to the Classification
      Society for disputes in respect of whether the Vessel complies with the
      classification rules and regulations or to a mutually agreed expert for any
      other issued and the opinion of the Classification Society or expert whichever
      may apply thereon shall be final and binding upon the parties
      hereto.

     

    In
      case
      agreement is not reached between the parties for a reference to the
      Classification Society or a mutually agreed expert or a reference is made but
      no
      opinion can be obtained as to the dispute then either of the parties hereto
      may
      commence an arbitration in accordance with the provisions of Article XIII
      hereof.

     

    
      	4.	
              Facilities:

            

    

     

    The
      Builder shall provide the Representative and his assistant(s) (up to a total
      of
      five (5) persons at a time) with adequate office space and necessary facilities,
      dedicated telephone services, fax lines, fixed and portable computer outlets,
      and normal office furnishings at, or in the immediate vicinity of the
      Shipyard.

     

    Long
      distance telephone, postage, cable charges and other miscellaneous expenses
      incurred by the Representative and/or his assistant(s) shall be for the Buyer’s
      account but otherwise the said office facilities shall be provided free of
      charge to the Buyer. The Builder and/or the Seller shall render all
      reasonable

     

    
      
        
        

      

        17

        

        

      

      
        
        

      

    
     

    assistance
      to the Representative and his assistants in obtaining visas for Japan and
      assisting them to familiarise themselves with the Shipyard and the
      Vessel.

     

    
      	5.	
              Liability
                of Seller and/or Builder:

            

    

     

    The
      Representative and his assistant(s) shall at all times be deemed to be the
      Buyer’s employees. The Seller and the Builder shall be under no liability
      whatsoever to the Buyer, the Representative or his assistant(s), for their
      personal injuries, including death, during the time when he, or any of them,
      is
      on the Vessel, or within the premises of either the Builder or its
      subcontractors, or are otherwise engaged in and about the construction of the
      Vessel, unless, however, such personal injuries, including death, were caused
      by
      negligence of the Seller and/or the Builder, or of any of the Seller’s and/or
      the Builder’s employees or agents or subcontractors. Nor shall the Seller and
      the Builder be under any liability whatsoever to the Buyer, the Representative
      or his assistant(s) for damage to, or loss or destruction of property of the
      Buyer, the Representative, his assistant(s), or of the Buyer’s employees or
      agents, unless such damage, loss or destruction was caused by negligence of
      the
      Seller and/or the Builder, or of any of the employees or agents or
      subcontractors of the Seller and/or the Builder.

     

    
      	6.	
              Responsibility
                of Buyer:

            

    

     

    
      	
              (a)

            	
              The
                Buyer undertakes and assures that the Representative shall attend
                tests
                and inspections in the manner provided in the Inspection Standards
                and
                also in such a way as will neither increase building costs nor cause
                delay
                or disturbance in the construction and delivery of the
                Vessel.

            
	 	 
	
              (b)

            	
              In
                the event that the Seller and/or the Builder considers any act or
                acts of
                the Representative to be an abuse of his or the Buyer’s rights under the
                terms of this Contract, the Seller and/or the Builder may request
                the
                Buyer to replace such Representative by written notice, whereupon
                the
                Buyer shall investigate the matter and if such Seller’s and/or Builder’s
                request is found justified, the Buyer shall effect such
                replacement.

            
	 	 
	
              (c)

            	
              The
                Buyer may not entrust the approval of plans and drawings or attendance
                to
                the inspections, tests and trials to any firm(s) or person(s) outside
                its
                organization unless prior written consent of the Seller and/or the
                Builder
                are given.

            

    

     

    (End
      of
      Article)

     

    
      
        
        

      

        18

        

        

      

      
        
        

      

    
     

    ARTICLE
      VI — SEA TRIAL

     

    
      	1.	
              Notice:

            

    

     

    The
      Buyer
      shall receive from the Seller and/or the Builder at least twenty-one (21) days
      prior notice by cable confirmed in writing of the time and place of the sea
      trial of the Vessel and the Buyer shall promptly acknowledge receipt of such
      notice.

     

    The
      Buyer
      shall have the right to have the Representative and/or his assistant(s)
      appointed by the Buyer on board the Vessel to witness the sea trial, and to
      ascertain that the Vessel meets the requirements of this Contract and the
      Specifications. Failure of the Representative and/or his assistant(s) to attend
      the sea trial of the Vessel after due notice to the Buyer as provided above
      shall be deemed to be a waiver by the Buyer of its right to have the
      Representative on board the vessel at the sea trial, and the Builder shall
      conduct the sea trial without the Representative being present, and in such
      case
      the Buyer shall be obligated to accept the Vessel on the basis of (i) the Sea
      Trial Report as defined in paragraph 4 of this Article; and (ii) a certificate
      of the Builder that the Vessel, upon sea trial (and subject to completion of
      alterations and corrections, if necessary, required following such sea trial)
      has been found to conform to this Contract and the Specifications. The sea
      trial
      shall be carried out with the attendance of surveyors from the Classification
      Society who must also issue a certificate that all Class requirements have
      been
      complied with.

     

    
      	2.	
              Weather
                Condition:

            

    

     

    The
      sea
      trial shall be carried out under such weather condition as the Builder in his
      reasonable judgment has deemed favourable. In the event of unfavourable weather
      on the date specified for the sea trial, the same shall take place on the first
      available day thereafter that the weather permits. It is agreed that if during
      the sea trial of the Vessel the weather should suddenly become unfavourable
      to
      continue the sea trial, the sea trial shall be discontinued and postponed until
      the first favourable day next following, unless the Buyer shall assent in
      writing to its acceptance of the Vessel on the basis of the sea trial made
      before such discontinuance has occurred.

     

    Any
      delay
      of the sea trial caused by such unfavourable weather condition shall operate
      to
      postpone the Expected Delivery Date by the period of delay involved and such
      delay shall be deemed to be a permissible delay in delivery of the
      Vessel.

     

    
      	3.	
              How
                Conducted:

            

    

     

    
      	
              (a)

            	
              All
                expenses in connection with the sea trial of the Vessel shall be
                for the
                account of the Builder who during the sea trial shall provide necessary
                crew for safe navigation. The sea trial shall be conducted by the
                Builder
                in Japanese waters in the manner prescribed in the
                Specifications.

            
	 	 
	
              (b)

            	
              Notwithstanding
                the foregoing, fuel oil, lubricating oils and greases necessary for
                the
                sea trial of the Vessel shall be supplied by the Buyer
                at

            

    

    
       

      
        
          
          

        

          19

          
  

          

        

        
          
          

        

      

       

    
    
      	 	
              the
                Shipyard at the time designated by the Builder prior to the sea trial,
                and
                the Seller shall pay to the Buyer the cost of the quantities thereof
                consumed during the sea trial at the original purchase price. In
                measuring
                the consumed quantity, lubricating oils and greases remaining in
                the main
                engine, other machinery, their sumps and pipes, stern tube and the
                like,
                shall be excluded. Payment therefore shall be effected as provided
                in
                Paragraph 2 of Article II hereof. The specifications of fuel oil,
                lubricating oils and greases shall be in accordance with the
                Specifications and also the instruction of the
                Builder.

            

    

     

    
      	4.	
              Method
                of Acceptance or Rejection:

            

    

     

    
      	
              (a)

               

            	
              Upon
                completion of the sea trial, the Builder shall give the Buyer’s
                Representative a sea trial report containing the results of all tests
                performed during such trial as per the Specification (“the Sea Trial
                Reports”). Thereafter the Buyer shall, within three (3) days after receipt
                of such report from the Builder, notify the Seller and the Builder
                by
                cable confirmed in writing of its acceptance or rejection of the
                Vessel.

            
	 	 
	
              (b)

               

            	
              If
                the Buyer rejects the Vessel, the Buyer shall indicate in its notice
                in
                what respect the Vessel or any part thereof does not conform to this
                Contract and/or the Specifications. If the Seller and the Builder
                are in
                agreement with the Buyer’s contention as to such non-conformity, the
                Builder shall make such alterations or corrections as may be necessary
                to
                rectify such non-conformity and shall arrange a further sea trial
                or test
                whichever is appropriate to demonstrate that the Vessel conforms
                to the
                Specifications to be attended by the Buyer’s Representative and/or his
                assistants and/or Class Representative. Following the Sea Trial or
                test
                the Builder shall deliver to the Buyer an amended Sea Trial Report
                or a
                report of the test results whichever is applicable. The Buyer shall,
                within three (3) Business Days after receipt of such amended Sea
                Trial
                Report notify the Seller of its acceptance or rejection of the Vessel.
                If
                the Buyer rejects the Vessel, the Buyer shall indicate in its notice
                in
                what respect the Vessel or any part thereof does not conform to this
                Contract and/or the Specifications. The Buyer shall accept the Vessel
                after repair of the Vessel and successful testing or sea trial as
                above.

            
	 	 
	
              (c)

            	
              If
                the Buyer fails to notify the Seller or the Builder in writing of
                its
                acceptance or rejection of the Vessel together with the reasons therefore
                within the period as provided in the above Sub-paragraph (a), the
                Buyer
                shall be deemed to have accepted the Vessel.

            
	 	 
	
              (d)

            	
              Any
                dispute arising between the parties hereto as the Vessel’s conformity or
                non-conformity to requirements of this Contract and/or the Specifications
                shall be resolved in accordance with the provisions of Article XIII
                hereof.

            

    

     

    
      	5.	
              Effect
                of Acceptance:

            

    

     

    The
      Buyer’s notification of acceptance of the Vessel as set forth above shall be
      final and binding so far as conformity of the Vessel with this Contract and
      the

     

    
      
        
        

      

        20

        

        

      

      
        
        

      

    
     

    Specifications
      is concerned shall preclude the Buyer from refusing the formal delivery of
      the
      Vessel, as hereinafter provided, if the Builder completes the construction
      and
      final fitting out of the Vessel as per the Contract and Specification and the
      Seller and the Builder comply with the delivery formalities as provided in
      Paragraphs 2 and 3 of Article VII hereof. However, the Buyer’s acceptance of the
      Vessel shall not affect the Buyer’s rights under this Contract and in particular
      the Buyer’s rights under Article IX hereof.

     

    
      	6.	
              Disposition
                of Remaining Consumable Stores:

            

    

     

    Should
      fresh water or other consumable stores furnished by the Builder for the sea
      trial remain on board the Vessel at the time of acceptance thereof by the Buyer,
      the Buyer shall purchase the same from the Builder at the original purchase
      price thereof. Payment therefor by the Buyer shall be effected upon delivery
      of
      the Vessel as provided in Paragraph 2, Article II hereof.

     

    (End
      of
      Article)

     

    
      
        
        

      

        21

        

        

      

      
        
        

      

    

    ARTICLE
      VII — DELIVERY

     

    
      	1.	
              Time
                and Place:

            

    

     

    The
      Vessel shall be delivered by the Seller to the Buyer at the Shipyard on or
      before 31st
      January,
      2009 (31st
      January,
      2009 being hereinafter called the “Expected Delivery Date”), subject to
      postponement and/or extension thereof as provided in this Contract.

     

    
      	2.	
              When
                and How Effected:

            

    

     

    Provided
      that the Buyer shall have effected all payments hereunder due on and before
      delivery of the Vessel and both parties hereto have fulfilled all of their
      obligations under this Contract, (including delivery to the Buyer of the
      documents specified in paragraph 3 of his Article) delivery of the Vessel shall
      be effected forthwith by the concurrent delivery by each of the parties hereto
      to the other of the Protocol of Delivery and Acceptance, acknowledging delivery
      of the Vessel by the Seller and acceptance thereof by the Buyer.

     

    
      	3.	
              Documents
                to be Delivered to Buyer:

            

    

     

    
      	
              (i)

            	
              The
                Builder shall deliver to the Buyer at least twenty-one (21) days
                prior to
                the proposed delivery date of the Vessel the duly notarized and apostilled
                Builder’s Certificate.

            
	 	 
	
              (ii)

            	
              Upon
                delivery and acceptance of the Vessel, the Seller shall deliver to
                the
                Buyer the following documents, which shall accompany the aforementioned
                Protocol of Delivery and Acceptance.

            
	 	 
	
              (a)

            	
              Protocol
                of Trials of the Vessel made in accordance with the Sea Trial Report
                pursuant to the Specifications.

            
	 	 
	
              (b)

            	
              Protocol
                of Inventory of the equipment of the Vessel, including spare parts
                and the
                like, all as specified in the Specifications.

            
	 	 
	
              (c)

            	
              Protocol
                of Stores of Consumable Nature made pursuant to Article VI
                hereof.

            
	 	 
	
              (d)

            	
              Drawings
                and Plans pertaining to the Vessel as stipulated in the
                Specifications.

            
	 	 
	
              (e)

            	
              All
                Certificates other than the Builder’s Certificate to be furnished pursuant
                to this Contract and the Specifications.

            
	 	 
	 	
              It
                is agreed that if, through no fault on the part of the Seller and
                the
                Builder, the classification certificate and/or other certificates
                are not
                available at the time of delivery of the Vessel, provisional certificates
                shall be accepted by the Buyer, provided that the Builder shall furnish
                the Buyer with the formal certificates as promptly as possible after
                such
                formal certificates have been
                issued.

            

    

     

    
      
        
        

      

        22

        

        

      

      
        
        

      

    
     

    
      	
              (f)

               

            	
              Declaration
                of Warranty of the Seller and/or the Builder that the Vessel is delivered
                to the Buyer free and clear of any liens, charges, claims, mortgages,
                or
                other encumbrances upon the Buyer’s title thereto, and in particular, that
                the Vessel is absolutely free of all burdens in the nature of imposts,
                taxes or charges imposed by any authority of the prefecture or country
                of
                the port of delivery, as well as of all liabilities of the Builder
                to its
                subcontractors, employees and crew, and of all liabilities arising
                out of
                the operation of the Vessel in the sea trial, or otherwise, prior
                to
                delivery and acceptance thereof.

            
	 	 
	
              (g)

            	
              Commercial
                Invoice

            
	 	 
	
              (h)

            	
              Bill
                of Sale duly notarized and apostilled in the form required by the
                laws of
                the country under the flag of which the Vessel is to be
                registered.

            
	 	 
	
              (i)

            	
              A
                certificate confirming that no registration of the Vessel has been
                effected by the Builder or the Seller prior to delivery and acceptance
                of
                the Vessel by the Buyer.

            
	 	 
	
              (j)

            	
              Certificate
                certifying the lightship weight of the
                Vessel.

            

    

     

    
      	4.	
              Title
                and Risk:

            

    

     

    Title
      to
      and risk of loss of the Vessel shall pass to the Buyer upon delivery and
      acceptance thereof as stated above. Prior to such delivery and acceptance title
      to and risk of loss of the Vessel and her equipment shall be vested in the
      Builder. Notwithstanding this Article title to the Buyer’s supplies shall always
      vest with the Buyer.

     

    
      	5.	
              Removal
                of Vessel:

            

    

     

    The
      Buyer
      shall take possession of the Vessel immediately upon delivery and acceptance
      thereof, and shall remove the vessel from the premises of the Shipyard within
      three (3) days after delivery and acceptance thereof is effected. If the Buyer
      shall not remove the Vessel from the premises of the Shipyard within the
      aforesaid three (3) days, then, in such event, the Buyer shall thereafter pay
      to
      the Seller or the Builder the reasonable expenses occasioned as a result of
      such
      delay over the aforesaid three (3) days. The Builder shall provide to the Buyer
      free of charge any tug, linesman and/or dock master assistance required for
      the
      Vessel to leave the Shipyard.

     

    (End
      of
      Article)

     

    
      
        
        

      

        23

        

        

      

      
        
        

      

    
     

    ARTICLE
      VIII — DELAY AND EXTENSION OF TIME FOR DELIVERY

     

    (FORCE
      MAJEURE)

     

    
      	1.	
              Clauses
                of Delay:

            

    

     

    If,
      at
      any time before actual delivery of the Vessel either the construction of the
      Vessel or any performance required as a prerequisite of delivery of the Vessel
      is delayed due to Acts of God; engagement in war or other hostilities or
      preparations therefore; civil war; civil commotions; revolutions; riots or
      insurrections; requirements of civil or governmental authorities; blockades;
      embargoes; vandalism; sabotage; plague or other epidemics, quarantines strikes;
      lockouts or other labour disturbances (in respect of which a maximum of 45
      days
      shall qualify as a force majeure event pursuant to this clause); acute labour
      shortage; earthquakes; tidal waves; landslides; floods; typhoons; storms or
      other weather condition not included in normal planning; prolonged failure,
      shortage or restrictions in supply of electric current, oil or gas; damages
      by
      lightning; explosions; collisions or strandings; fires; import restrictions;
      shortage of substitute materials, machinery or equipment or inability to obtain
      delivery thereof provided that such materials, machinery and equipment at the
      time of ordering could reasonably be expected by the Builder to be delivered
      in
      time; defects in materials, machinery and equipment which could not have been
      detected by the Builder using reasonable care; casting, forging or machining
      rejects or the like; delays caused by the Classification Society or other bodies
      whose documents are required; delays in the Builder’s other commitments
      resulting from any causes herein described which in turn delay the construction
      of the Vessel or the Builder’s performance under this Contract provided that all
      the foregoing events could not have been reasonably foreseen and avoided by
      the
      Seller or Builder; any cause of delay whatsoever whether or not of a kind
      previously specified in this Article or of a different kind reasonably to be
      considered beyond the control of the Builder always provided that these events
      occur before the Expected Delivery Date then and in any such case, the Expected
      Delivery Date shall be postponed for a period of time which shall not exceed
      the
      total accumulated time of all such delays provided always that no postponement
      shall be granted under this contract if the event causing such a delay has
      resulted from any negligence of the Builder or Seller.

     

    
      	2.	
              Notice:

            

    

     

    Within
      fifteen (15) days after the date of commencement of any events as described
      in
      the preceding Paragraph 1 of this Article on account of which the Seller and/or
      the Builder claim that it is entitled under this Contract to a postponement
      of
      the Expected Delivery Date, the Seller and/or the Builder shall advise the
      Buyer
      in writing of the date such events commenced, the nature of the cause, the
      expected duration of the delay and the steps taken to mitigate the same
      (provided such expected duration or mitigation steps can be ascertained at
      the
      time such notice is given).

     

    Likewise,
      within fifteen (15) days after such events have ceased to exist, the Seller
      shall notify the Buyer in writing or by telex or fax of the date on which such
      events ceased to exist and shall specify in such notice the period of time
      by

     

    
      
        
        

      

        24

        

        

      

      
        
        

      

    
     

    which
      the
      Expected Delivery Date shall be postponed by reason of such events. Failure
      of
      the Seller to make any of the above said notifications in time shall be deemed
      to be a waiver of the Seller’s and the Builder’s right to claim postponement of
      the Expected Delivery Date in respect of such delay. Failure of the Buyer to
      object to the Seller’s and/or the Builder’s claim for postponement of the
      Expected Delivery Date, within fifteen (15) days after receipt by the Buyer
      of
      such notice from the Seller and/or the Builder, shall be deemed to be a waiver
      by the Buyer of its right to object to such postponement of the Expected
      Delivery Date.

     

    
      	3.	
              Right
                to Rescind for Excessive Permissible Delay:

            

    

     

    If
      the
      total accumulated time for all permissible delays pursuant to paragraph 5
      excluding (i) delays due to arbitration as provided in Article XIII, (ii) delays
      due to negligence, failure or omission on the part of the Buyer including delays
      on account of the Buyer’s Supplies defined in Article XVII hereof and (iii)
      adjustment of the Expected Delivery Date due to modifications or changes of
      the
      Specifications made pursuant to Article IV hereof, amount to one hundred and
      twenty (120) days or more, then, in such event, the Buyer may at its sole option
      rescind this Contract in accordance with the provisions of Article X hereof.
      The
      Seller and the Builder may, at any time after the accumulated time of the
      aforementioned delays justifying rescission by the Buyer as above provided,
      propose a new delivery date and demand in writing that the Buyer shall make
      an
      election, in which case the Buyer shall, within thirty (30) days after such
      demand is received by the Buyer, either notify the Seller of rescission of
      this
      Contract or consent to delivery of the Vessel on an agreed specific future
      date
      provided that if it consents to a postponement it shall maintain its right
      to
      receive any liquidated damages payable under Article Ill hereof as adjustment
      of
      the Contract Price; it being understood and agreed by the parties hereto that,
      if any further delay occurs on account of causes justifying rescission as
      specified in this Article, the Buyer shall have the right of rescinding this
      Contract forthwith.

     

    
      	4.	
              Right
                to Rescind for Excessive Delay:

            

    

     

    If
      the
      total accumulated lime of all delays whether permissible pursuant to paragraph
      5
      or non permissible, excluding (i) delays due to arbitration as provided in
      Article XIII, (ii) delays due to negligence, failure or omission on the part
      of
      the Buyer including delays on account of the Buyer’s Supplies defined in Article
      XVII hereof and (iii) adjustment of the Expected Delivery Date due to
      modifications or changes of the Specifications made pursuant to Article IV
      hereof, amount to two hundred and seventy (270) days or more, then, in such
      event, the Buyer may at its sole option rescind this Contract in accordance
      with
      the provisions of Article X hereof. The Seller and the Builder may, at any
      time
      after the accumulated time of the aforementioned delays justifying rescission
      by
      the Buyer as above provided, propose a new delivery date and demand in writing
      that the Buyer shall make an election, in which case the Buyer shall, within
      thirty (30) days after such demand is received by the Buyer, either notify
      the
      Seller of rescission of this contract or consent to delivery of the Vessel
      on an
      agreed specific future date provided that if it consents to a postponement
      it
      shall maintain its right to receive any liquidated damages payable under Article
      III hereof as adjustment of the Contract Price; it being understood and agreed
      by

     

    
      
        
        

      

        25

        

        

      

      
        
        

      

    
     

    the
      parties hereto that, if any further delay occurs on account of causes justifying
      rescission as specified in this Article, the Buyer shall have the right of
      rescinding this Contract forthwith.

     

    
      	5.	
              Definition
                of Permissible Delay:

            

    

     

    Delays
      on
      account of the causes as specified in Paragraph 1 of this Article shall be
      understood to be permissible delays and are to be distinguished from
      unauthorized delays on account of which the Contract Price is subject to
      adjustment as provided in Article III hereof.

     

    (End
      of
      Article)

     

    
      
        
        

      

        26

        

        

      

      
        
        

      

    
     

    ARTICLE
      IX — WARRANTY

     

    
      	1.	
              Warranty
                and Warranty Period:

            

    

     

    For
      the
      period of twelve (12) months after the date of delivery of the Vessel to the
      Buyer (hereinafter called the “Warranty Period”), the Seller and the Builder to
      warrant the Vessel, its engines and accessories and all parts and equipment
      thereof which are manufactured or supplied by the Builder or its subcontractors
      under this Contract, but excluding the Buyer’s Supplies against defects which
      are due to defective workmanship, defective material or defective construction
      which defects are discovered within the Warranty Period shall have existed
      at
      the time of delivery of the Vessel to the Buyer (the said warranty, subject
      to
      all the terms and conditions of this Article, being hereinafter called the
      ‘Warranty”).

     

    The
      Builder and the Seller further guarantee the repairs or replacements to the
      Vessel which are made under this guarantee for a further period of twelve (12)
      months from the date of completion of such repair or replacement, provided
      however, that the Builder’s and/or the Seller’s liability hereunder shall
      terminate eighteen (18) months after the date of delivery and acceptance of
      the
      Vessel.

     

    
      	2.	
              Notice
                of Defects:

            

    

     

    The
      Buyer
      shall notify the Seller and the Builder in writing, or by cable thereafter
      confirmed in writing, as promptly as possible after discovery of any condition
      as to which a claim of defect is made under the Warranty.

     

    Such
      notice shall include full particulars as to the nature of the claimed defect.
      The Seller and the Builder shall have no obligation under the Warranty with
      respect to defects discovered after the expiration of the Warranty Period;
      nor
      shall the Seller and the Builder have any obligation under the Warranty with
      respect to defects discovered prior to the expiration of the Warranty Period,
      unless notice of such defect is received by the Seller and the Builder as
      provided herein not later than thirty (30) days after the expiration of the
      Warranty Period or in relation to repairs or replacements to the Vessel made
      under this Warranty unless notice is received under the eighteen (18) month
      period set out in paragraph 1 hereof.

     

    
      	3.	
              Extent
                of Seller’s and Builder’s Liability:

            

    

     

    
      	
              (a)

               

            	
              The
                Seller and the Builder shall in no event be liable for any special
                or
                consequential losses, expenses or damages including but not limited
                to
                loss of time, loss of profit or loss of earning (whether of the Vessel,
                its master, officers or crew, or of the Buyer, its officers, agents
                or
                employees) or demurrage or towing or pilot charges or dockage incurred
                by
                the Buyer by reason of any defects specified in Paragraph 1 of this
                Article.

            
	 	 
	
              (b)

               

            	
              The
                Seller and the Builder shall in no event be liable for any damage
                to the
                Vessel, or any part of equipment thereof, caused or aggravated by
                perils
                of the sea, inland waters or navigation, or by normal wear and tear
                or
                depreciation, or by fire or other accident on board or ashore, or
                by
                improper maintenance, negligence or willful conduct on the part of
                the

            

    

     

    
      
        
        

      

        27

        

        

      

      
        
        

      

    
     

    
      	 	
              Buyer,
                its employees or agents, or any other persons other than the Seller
                and
                the Builder, its employees or subcontractors engaged in work upon
                the
                Vessel.

            
	 	 
	
              (c)

               

            	
              The
                Seller and the Builder shall in no event be liable for any defect
                in or
                damage to the Vessel, or any part or equipment thereof, caused or
                aggravated by repairs, alterations, additions or renewals other than
                those
                made by the Builder. Promptly after making of any repairs to the
                Vessel
                during the Warranty Period by any party other than the Seller and
                the
                Builder, the Buyer shall give the Seller and the Builder prompt written
                notice containing particulars as to the nature of such repairs,
                accompanied by the report of an independent surveyor or a classification
                surveyor.

            

    

     

    
      	4.	
              Remedy
                of Defects Covered by Warranty:

            

    

     

    
      	
              (a)

            	
              The
                Seller or the Builder shall, at its expense, remedy any defects covered
                by
                the Warranty by repairing or replacing the defective part or parts
                at the
                Shipyard, or at any other repair facility of the Builder in Japan,
                at the
                Builder’s option.

            
	 	 
	
              (b)

            	
              If
                it is impracticable to bring the Vessel to Japan for remedy of defects
                under the Warranty, the Buyer may cause necessary repairs or replacements
                to be made elsewhere suitable for the purpose, provided, however,
                that the
                Builder may furnish, or cause to be furnished, replacement parts
                or
                materials at its own expense, if to do so would not unduly affect
                the
                operation of the Vessel. Prior to making of any such repairs other
                than by
                the Seller and the Builder, the Buyer shall give notice in writing
                of the
                nature of the proposed repairs and the scheduled time and place thereof
                (except in an emergency, but in such event notice shall be given
                as soon
                as possible thereafter), and, if practicable, the Seller and/or the
                Builder shall be given opportunity to verify the Buyer’s claim of defect
                under the Warranty by sending a representative at its own expense.
                If the
                Seller and/or Builder fail to send a representative having been given
                notice of the scheduled time and place of the repairs they will be
                deemed
                to have accepted them.

            
	 	 
	
              (c)

               

            	
              With
                respect to any defect covered by the Warranty which is remedied elsewhere
                than at the Shipyard or in other facility of the Builder in Japan,
                the
                Seller or Builder shall pay to the Buyer the Buyer’s cost thereof, not
                exceeding the cost of providing the same remedy at the Shipyard (deducting
                the cost of any replacement parts or materials actually furnished
                by the
                Seller and/or the Builder to the Buyer for making of such repairs),
                such
                payment to be made not later than sixty (60) days after submission
                to the
                Builder of repair invoices and other appropriate evidence to substantiate
                the claim under the Warranty.

            

    

     

    
      	5.	
              Freight
                Charges:

            

    

     

    Replacement
      parts or materials to be furnished to the Buyer by the Seller and/or the Builder
      for making of repairs under the Warranty elsewhere than at the Shipyard or
      in
      other facility of the Builder in Japan shall be transported to the

     

    
      
        
        

      

        28

        

        

      

      
        
        

      

    
     

    place
      of
      repairs at the Builder’s expense. Such transportation shall be by the most
      expeditious public surface transportation. If request is made in time by the
      Buyer, the Seller shall cause the Builder to transport heavy or bulky parts
      or
      materials by air transportation upon the Buyer paying to the Seller or the
      Builder the difference between the surface and air costs. The Seller shall
      cause
      the Builder to, in every case, use its best efforts to expedite the furnishing
      to the Buyer of replacement parts or materials required under the
      Warranty.

     

    
      	6.	
              Conditions
                of Warranty:

            

    

     

    
      	
              (a)

            	
              The
                Buyer shall exercise the care of a prudent shipowner in keeping the
                Vessel
                in good condition, working order and repairs, and shall use the Vessel,
                its machinery and equipment only for the purpose intended and as
                described
                in this Contract during the Warranty Period.

            
	 	 
	
              (b)

            	
              The
                Buyer shall follow the recommendations contained in operating and
                maintenance manuals (in English language) provided by the Builder
                prior to
                delivery of the Vessel.

            

    

     

    In
      the
      event that the Buyer or its employees or agents shall fail to operate the
      Vessel, its machinery or equipment, in accordance with the conditions specified
      herein, the Seller and the Builder shall be entitled to withdraw the Warranty
      as
      to the part or parts of the Vessel affected by such failure upon giving written
      notice to this effect to the Buyer, accompanied by substantiation of such
      claimed failure.

     

    
      	7.	
              Warranty
                to be Exclusive:

            

    

     

    The
      Warranty shall replace and exclude any and all other liability, guarantee or
      warranty, expressed or implied, pursuant to law, custom, statute or otherwise,
      by reason of the construction and sale of the Vessel to the Buyer by the
      Seller.

     

    
      	8.	
              Assignment
                of Rights:

            

    

     

    The
      Buyer
      shall have the right on or after delivery and acceptance of the Vessel to assign
      its rights under Article IX hereof to any purchaser or bareboat charterer or
      financier of the Vessel with the prior written consent of the Builder. The
      Builder retains the right to reject the assignment in its fair judgment. Notice
      of any such assignment shall be given by the Buyer to the Builder and the
      Seller.

     

    
      	9.	
              Arbitration:

            

    

     

    Any
      dispute under this Article shall be referred to Arbitration in accordance with
      the provisions of Article XIII hereof.

     

    (End
      of
      Article)

     

    
      
        
        

      

        29

        

        

      

      
        
        

      

    
     

    ARTICLE
      X — RESCISSION BY BUYER

     

    
      	1.	
              Notice:

            

    

     

    The
      payments made by the Buyer prior to delivery of the Vessel under this Contract
      shall be in the nature of advances to the Seller. In the event that the Buyer
      shall exercise its right of rescission of this Contract under and pursuant
      to
      any of the provisions of this Contract whereby the Buyer is specifically
      entitled to do so then the Buyer shall notify the Seller in writing of such
      rescission which shall be effective as of the date when notice thereof is
      received by the Seller.

     

    
      	2.	
              Refund
                to Buyer:

            

    

     

    Within
      twelve (12) Business Days from the date of receipt by the Seller of such notice
      of rescission of this Contract, unless the Seller duly contests such rescission
      by the Buyer and proceeds to arbitration within the said period pursuant to
      Article XIII hereof, the Seller shall refund by telegraphic transfer to the
      Buyer the full amount of the sums paid by the Buyer to the Seller under this
      Contract and the cost of the Buyer’s Supplies, if any. In such event, the Seller
      shall in addition pay to the Buyer interest at the rate of ten percent (10%)
      per
      annum on the amount required to be refunded to the Buyer computed from the
      respective dates on which such sums were paid by the Buyer to the Seller to
      the
      date of remittance thereof by the Seller, provided, however, that if the said
      rescission by the Buyer is made under the provisions of Paragraphs 3 and 4
      of
      Article VIII hereof, then, in such event, the Seller shall not be required
      to
      pay any interest for the period of time equal to that of the permissible
      delays.

     

    If
      the
      contract is rescinded by the Buyer under the provisions of Article III hereof,
      the Buyer shall in no event be entitled to any liquidated damages.

     

    
      	3.	
              Discharge
                of Obligations:

            

    

     

    Upon
      such
      refund pursuant to paragraph 2 hereof by the Seller to the Buyer, all
      obligations, duties and liabilities of each of the parties hereto to the other
      under this Contract shall be forthwith completely discharged.

     

    
      	4.	
              Refund
                Guarantee:

            

    

     

    Shortly
      prior to the Seller’s receipt of each of the First, Second, Third, and Fourth
      Instalment referred to in Article II (Contract Price and Terms of Payment)
      of
      this Contract, as security for refund of instalments paid prior to the delivery
      of the Vessel, the Seller shall furnish the Buyer with the original of an
      assignable letter of guarantee (the “Refund Guarantee”) in the form of Exhibit
“C” attached hereto issued by one of the first class Japanese Banks to be
      accepted by the Buyer in favour of the Buyer guaranteeing the Seller’s refund to
      the Buyer of the relevant pre-delivery instalment and interest payable thereon
      in case of contingencies as described in this Article.

     

    Each
      Refund Guarantee shall cover the relevant pre-delivery instalment plus interest
      accrued thereon as described in this Article and shall remain in full
      force

     

    
      
        
        

      

        30

        

        

      

      
        
        

      

    
     

    and
      effect throughout the duration of the Contract from the date such Refund
      Guarantee is issued until:

     

    
      	
              (a)

            	
              receipt
                by the Buyer of all sums together with interest accrued thereon guaranteed
                by the said Refund Guarantee; or

            
	 	 
	
              (b)

            	
              upon
                acceptance by the Buyer of the delivery of the Vessel at the Shipyard
                in
                accordance with the terms of this
                Contract,

            

    

     

    whichever
      comes earlier and in such event the Refund Guarantee shall be promptly returned
      to the Seller.

     

    If
      for
      whatsoever reason, other than the Buyer’s default under Article XI hereof, any
      of the Refund Guarantees ceases to be in full force and effect, or the issuing
      bank’s financial condition deteriorates, the Seller shall have the obligation to
      deliver to the Buyer within ten (10) Business Days from the date on which such
      Refund Guarantee ceased to be in full force and effect or the issuing bank’s
      financial condition deteriorated, a substitute letter of guarantee issued by
      a
      bank acceptable to the Buyer and being in a form and substance acceptable to
      the
      Buyer. In the event that the Seller fails to deliver to the Buyer such
      substitute letter of guarantee as aforesaid, the Buyer shall be entitled to
      rescind the Contract in accordance with the provisions of this Article
      X.

     

    The
      costs
      for obtaining and maintaining the Refund Guarantee and any substitute thereof
      shall be paid by the Seller on behalf of the Buyer, provided however that the
      Seller shall have no obligation to cover such costs until it receives sufficient
      funds from the Buyer in order to pay the same (and for which prior notice will
      be given to the Buyer by the Seller) and provided also however that the Seller
      shall be reimbursed by the Buyer for such cost in every six (6) months after
      the
      issuance of each Refund Guarantee and provided further that the Buyer’s
      obligation hereunder shall not exceed an amount equal to three quarters of
      one(1) per cent(0.75%) per annum of the amount of each pre-delivery instalment
      actually paid and guaranteed under the relevant Refund Guarantee or substitute
      thereof.

     

    (End
      of
      Article)

     

    
      
        
        

      

        31

        

        

      

      
        
        

      

    
     

    ARTICLE
      XI — BUYER’S DEFAULT

     

    
      	1.	
              Definition
                of Default:

            

    

     

    The
      Buyer
      shall be deemed to be in default of its obligations under this Contract in
      the
      following cases:

     

    
      	
              (a)

            	
              If
                any of the instalments due and payable before delivery of the Vessel
                is
                not paid to the Seller within five (5) Banking days (excluding Bank
                Holidays in New York, London, Athens and Tokyo) after the Due Date
                as
                provided in Article II hereof; or

            
	 	 
	
              (b)

            	
              If
                the instalment due and payable upon delivery of the Vessel is not
                paid
                concurrently with delivery of the Vessel as provided in Article
                II hereof;
                or 

            
	 	 
	
              (c)

            	
              If
                the Buyer, when the Vessel is duly tendered for delivery by the Seller
                in
                accordance with the provisions of this Contract, fails to take delivery
                of
                the Vessel without specific and valid ground therefore under this
                Contract.

            

    

     

    
      	2.	
              Interest
                and Charge:

            

    

     

    If
      the
      Buyer is in default of payment of any of the instalments, then in such event,
      the Buyer shall pay to the Seller interest on such amount unpaid at the rate
      of
      ten percent (10%) per annum from the Due Date thereof to the date of full
      payment; in the event that the Buyer shall fail to take delivery of the Vessel
      without any specific and valid ground under this Contract as provided in
      Paragraph 1 (c) of this Article, the Buyer shall be deemed to be in default
      of
      payment of the instalment due on delivery of the Vessel and shall pay interest
      thereon at the same rate as aforesaid and from the day on which the Vessel
      is
      tendered for delivery by the Seller to the day on which the Vessel has been
      delivered.

     

    Upon
      payment to the Seller of the relevant instalment or instalments together with
      interest accrued thereon and reasonable expenses incurred by the Seller for
      recovering the same, the Seller or the Builder shall have no other claim for
      damages against the Buyer.

     

    
      	3.	
              Effect
                of Default:

            

    

     

    
      	
              (a)

            	
              If
                any default by the Buyer as provided hereinbefore occurs, the Expected
                Delivery Date shall be automatically postponed for the period of
                such
                default by the Buyer.

            
	 	 
	
              (b)

            	
              If
                any default by the Buyer continues for a period of fifteen (15) days,
                the
                Seller may, at its option, rescind this Contract by giving notice
                of such
                effect to the Buyer in writing.

            
	 	 
	
            	
              Upon
                dispatch by the Seller of such notice of rescission, this Contract
                shall
                be forthwith rescinded and terminated, and the Buyer’s Supplies, if any,
                shall become the sole property of the
                Seller.

            

    

     

    
      
        
        

      

        32

        

        

      

      
        
        

      

    
     

    
      	
            	
              In
                the event of such rescission of this Contract, the Seller shall be
                entitled to retain any instalment or instalments already paid by
                the Buyer
                to the Seller under this contract provided always that in the case
                of the
                sale of the Vessel the Seller shall take into account such instalments
                in
                accordance with the provisions of Paragraph 4 of this
                Article.

            

    

     

    
      	4.	
              Disposal
                of Vessel:

            

    

     

    
      	
              (a)

            	
              In
                the event that this Contract is rescinded by the Seller under the
                provisions of Paragraph 3 of this Article, the Seller may, at its
                sole
                discretion, either complete the Vessel and sell the same, or sell
                the
                Vessel in its incompleted state, free from any right or claim of
                the
                Buyer. Such sale of the Vessel by the Seller shall be by public auction
                or
                private contract if the sale by private contract is deemed in the
                sole
                judgment of the Seller to be more advisable and shall be made on
                such
                terms and conditions as the Seller shall deem fit without any liability
                whatsoever upon the Seller for any loss or damage sustained by the
                Buyer
                as a result of such sale.

            
	 	 
	
              (b)

               

            	
              In
                the event of sale of the Vessel in its completed state, the proceeds
                of
                sale received by the Seller shall be applied firstly to payment of
                all
                expenses attending such sale or otherwise incurred by the Seller
                as a
                result of the Buyer’s default and then to payment of the unpaid
                instalments of the Contract Price and interest on such unpaid instalments
                at the rate of ten percent (10%) per annum from the respective due
                dates
                thereof to the date of receipt of the proceeds.

            
	 	 
	
              (c)

               

            	
              In
                the event of sale of the Vessel in its incompleted state, the proceeds
                of
                sale received by the Seller shall be applied firstly to all expenses
                attending such sale or otherwise incurred by the Seller as a result
                of the
                Buyer’s default and then to payment of all costs and expenses of
                construction of the Vessel incurred by the Seller less the instalments
                already paid by the Buyer and compensation to the Seller for a reasonable
                loss of profit due to rescission of this Contract.

            
	 	 
	
              (d)

               

            	
              In
                either of the above events of sale, if the proceeds of sale exceeds
                the
                total amount against which such proceeds are to be applied as aforesaid,
                the Seller shall pay the excess to the Buyer without interest, provided
                that the amount of such payment to the Buyer shall in no event exceed
                the
                total amount of instalments already paid by the Buyer to the Seller
                and
                cost of the Buyer’s Supplies, if any.

            
	 	 
	
              (e)

            	
              If
                the proceeds of sale are insufficient to pay such total amount, the
                Buyer
                shall promptly pay the deficiency to the Seller upon
                demand.

            

    

     

    (End
      of
      Article)

     

    
      
        
        

      

        33

        

        

      

      
        
        

      

    
     

    ARTICLE
      XII — BUILDER’S INSURANCE

     

    
      	1.	
              Extent
                of Insurance Coverage:

            

    

     

    The
      Seller warrants that the Builder shall, at its own cost and expense, keep the
      Vessel and all machinery, materials, equipment, appurtenances and outfit
      delivered to the Shipyard for the Vessel or built into, or installed in or
      upon
      the Vessel including the Buyer’s Supplies, fully insured with first class
      Japanese insurance companies designated by the Builder, from the date of
      keel-laying of the Vessel until the Vessel is completed, delivered to and
      accepted by the Buyer, under coverage corresponding to the Japanese Builders’
Risks Insurance Clause.

     

    The
      amount of such insurance coverage shall, up to the date of delivery of the
      Vessel, be in an amount at lease equal to, but not limited to, (i) the
      aggregated amount of all instalments of the Contract Price paid by the Buyer
      to
      the Seller and (ii) the value of the Buyer’s Supplies. The policy referred to
      hereinabove shall be taken out in the name of the Builder and all losses under
      such policy shall be payable to the Builder. The Builder shall furnish the
      Buyer
      with a copy of the said insurance policy or policies on request.

     

    
      	2.	
              Application
                of Recovered Amount:

            

    

     

    
      	
            	(a)	
              Partial
                Loss

            

    

     

    In
      the
      event that the Vessel, any parts, materials, machinery, equipment, appurtenances
      and outfits thereof shall be damaged by any insured cause whatsoever prior
      to
      acceptance thereof by the Buyer and in the further event that such damage shall
      not constitute an actual or a constructive total loss of the Vessel, the Seller
      shall cause the Builder to apply the insurance moneys recovered under said
      insurance policy to the repair of such damage, satisfactory to the
      Classification Society and the Buyer shall accept the Vessel under this Contract
      if completed in accordance with this Contract and Specifications and free of
      class recommendations and notations. The Buyer shall not, on account of any
      such
      damage or any repair thereof, make any claim for alleged consequential loss
      or
      depreciation.

     

    
      	
            	(b)	
              Total
                Loss

            

    

     

    However,
      in the event that the Vessel is determined to be an actual or constructive
      total
      loss, by the mutual agreement between the parties hereto, either:

     

    
      	 	
              (i)

            	
              the
                Builder shall proceed in accordance with the terms of this Contract,
                in
                which case the amount recovered under the said insurance policy shall
                be
                applied to the reconstruction of the Vessel’s damage, provided the parties
                hereto shall have first agreed in writing as to such reasonable
                postponement of the Expected Delivery Date and adjustment of other
                terms
                of this

            

    

     

    
      
        
        

      

        34

        

        

      

      
        
        

      

    
     

    Contract
      including the Contract Price as may be necessary for the completion of such
      reconstruction; or

     

    
      	 	
              (ii)

            	
              the
                Seller shall refund immediately to the Buyer the amount of all instalments
                paid to the Seller under this contract together with interest at
                the rate
                of five percent (5%) per annum, provided however that in the case
                of such
                total loss being due to causes described in Article VIII, Paragraph
                1 no
                interest shall be payable, whereupon this contract shall be rescinded
                and
                all rights, duties, liabilities and obligations of each of the parties
                to
                the other shall terminate
                forthwith.

            

    

     

    If
      the
      parties hereto fail to reach such agreement within two (2) months after the
      Vessel is determined to be an actual or constructive total loss, the provisions
      of sub-paragraph (b)(ii) above shall be applied.

     

    
      	3.	
              Termination
                of Seller’s and Builder’s Obligation to Insure:

            

    

     

    The
      Seller’s obligation to cause the Builder to insure the Vessel hereunder shall
      cease and terminate forthwith upon delivery thereof to the Buyer.

     

    (End
      of
      Article)

     

    
      
        
        

      

        35

        

        

      

      
        
        

      

    

    ARTICLE
      XIII — DISPUTES AND ARBITRATION

     

    
      	1.	
              Disputes:

            

    

     

    If
      any
      dispute arises between the parties hereto relating to the construction of the
      Vessel including equipment, machinery, materials and workmanship or in relation
      to compliance with the rules and regulations of the Classification Society
      or
      other applicable regulations or in relation to the contract or the
      Specifications, the parties may either by mutual agreement refer the dispute
      to
      the Classification Society for disputes in respect of whether the Vessel
      complies with the classification rules and regulations or to a mutually agreed
      expert for any other issued whose decision shall be final and binding upon
      the
      parties hereto or may refer the dispute to arbitration pursuant to paragraph
      2
      hereof.

     

    
      	2.	
              Arbitration:

            

    

     

    All
      disputes, unless settled in accordance with Paragraph 1 of this Article XIII,
      arising out of or in connection with this Contract or its rescission shall
      be
      referred to arbitration in London, in accordance with the provisions of
      Arbitration Act 1996 or any statutory modification or re-enactment thereof
      for
      the time being in force. The arbitration shall be conducted, in English language
      in accordance with the London Maritime Arbitrators Association (LMAA) Terms
      current at the time when the arbitration proceedings are commenced, with
      reference to three (3) arbitrators (hereinafter called the “Arbitration Board”),
      where each party shall appoint an arbitrator and the two arbitrators so
      appointed shall appoint a third arbitrator.

     

    Either
      party may demand arbitration of any such dispute by giving notice to the other
      party. Any demand for arbitration by either of the parties hereto shall state
      the name of the arbitrator appointed by such party. Within fourteen (14) days
      after receipt of notice of such demand for arbitration, the other party shall
      in
      turn appoint a second arbitrator and give notice in writing of such appointment
      to the party demanding arbitration. If a party fails to appoint an arbitrator
      as
      aforementioned within fourteen (14) days following receipt of notice of demand
      for arbitration by the other party, the party failing to appoint an arbitrator
      shall be deemed to have accepted and appointed, as its own arbitrator, the
      arbitrator appointed by the party demanding arbitration and the arbitration
      shall proceed before this sole arbitrator who alone in such event shall
      constitute the Arbitration Board.

     

    If
      the
      two arbitrators are unable to agree upon a third Arbitrator within twenty (20)
      days after appointment of the second arbitrator, either of the said two
      arbitrators may apply to the President for the time being of the London Maritime
      Arbitrators Association to appoint the third arbitrator.

     

    The
      award
      of the arbitrators shall be final and binding on the parties. 

     

    
      	3.	
              Alteration
                of Expected Delivery Date:

            

    

     

    In
      the
      event of reference to arbitration of any dispute arising out of matters
      occurring prior to delivery of the Vessel, the award may include
      any

     

    
      
        
        

      

        36

        

        

      

      
        
        

      

    
     

    postponement
      of the Expected Delivery Date which the Arbitration Board may deem appropriate
      and/or a determination by the Arbitration Board as to whether a delay is
      classified as permissible or non-permissible for the purposes of Article VIII
      and/or III hereof.

     

    (End
      of
      Article)

     

    
      
        
        

      

        37

        

        

      

      
        
        

      

    
     

    ARTICLE
      XIV — RIGHT OF ASSIGNMENT

     

    In
      addition to Article IX hereof, neither of the parties hereto shall assign this
      Contract to a third party unless prior consent of the other party is given
      in
      writing, provided however, that such consent will not be required in the case
      of
      the Buyer assigning this Contract to a bank or financial institution financing
      any of the instalments payable hereunder and for which prior written notice
      is
      given to the Seller and the Builder or to a company nominated and guaranteed
      by
      the Buyer and notified by the Buyer to the Seller prior to the delivery of
      the
      Vessel.

     

    In
      case
      of assignment by the Buyer, such assignment shall be notified to the Japanese
      Government, and the Buyer shall remain liable under this Contract.

     

    This
      Contract shall inure to the benefit of and shall be binding upon the lawful
      successors or the legitimate assignees of the parties hereto.

     

    (End
      of
      Article)

     

    
      
        
        

      

        38

        

        

      

      
        
        

      

    
     

    ARTICLE
      XV — TAXES AND DUTIES

     

    
      	1.	
              Taxes
                and Duties Imposed in Japan:

            

    

     

    The
      Seller shall bear and pay all taxes and duties imposed in Japan in connection
      with execution and/or performance of this Contract excluding any taxes and
      duties imposed in Japan upon the Buyer’s Supplies.

     

    
      	2.	
              Taxes
                and Duties Imposed outside Japan:

            

    

     

    The
      Buyer
      shall bear and pay all taxes and duties imposed outside Japan in connection
      with
      execution and/or performance of this Contract except for taxes and duties
      imposed upon those items and services to be procured by the Builder or the
      Seller for construction of the Vessel (and the Seller hereby agrees to indemnify
      and hold harmless the Buyer in relation to such taxes and duties).

     

    (End
      of
      Article)

     

    
      
        
        

      

        39

        

        

      

      
        
        

      

    

    ARTICLE
      XVI
      — PATENTS, TRADEMARKS AND COPYRIGHTS, ETC

     

    
      	1.	
              Patents,
                Trademarks and Copyrights:

            

    

     

    Machinery
      and equipment of the Vessel may bear the patent number, trademarks or trade
      names of the manufacturers.

     

    The
      Seller and the Builder shall indemnify and hold harmless the Buyer from patent
      liability or claims of patent infringement of any nature or kind including
      costs
      and expenses for or on account of any patented or patentable invention made
      or
      used in the performance of this Contract and from any claims for breaches of
      trademarks, copyright or design rights or any other third party rights in
      respect of the Vessel and raw materials, machines or devices used for or in
      the
      construction of the Vessel. The Seller and/or the Builder may at their
      discretion take over the defence of any such proceedings brought against the
      Buyer.

     

    Nothing
      contained herein shall be construed as transferring any patent or trademark
      rights or copyright in equipment covered by this Contract and all such rights
      are hereby expressly reserved to the true and lawful owners
      thereof.

     

    The
      Seller’s and the Builder’s warranty hereunder does not extend to the Buyer’s
      Supplies, if any.

     

    
      	2.	
              Specifications.
                Plans and Drawings:

            

    

     

    The
      Builder retains all rights in and to the Specifications, plans and drawings,
      technical descriptions, calculations, test results and other data, information
      and documents concerning the design and construction of the Vessel and the
      Buyer
      undertakes therefore not to bring them to the knowledge of any third parties
      without the prior written consent of the Builder exception where it is necessary
      for normal operation, repair and maintenance of the Vessel.

     

    (End
      of
      Article)

     

    
      
        
        

      

        40

        

        

      

      
        
        

      

    
     

    ARTICLE
      XVII — BUYER’S SUPPLIES

     

    
      	1.	
              Responsibility
                of Buyer:

            

    

     

    
      	
              (a)

               

            	
              The
                Buyer shall, at its own risk, cost and expense, supply and deliver
                to the
                Builder all items of equipment and supplies specified in the
                Specifications as being furnished by the Buyer (herein called the
“Buyer’s
                Supplies”) at warehouses or other storages of the Shipyard or other places
                designated by the Builder in the proper condition ready for installation
                in or on the Vessel in accordance with the time schedule designated
                by the
                Builder.

            
	 	 
	
              (b)

               

            	
              In
                order to facilitate installation by the Builder of the Buyer’s Supplies in
                or on the Vessel, the Buyer shall furnish the Builder with necessary
                specifications, plans, drawings, instruction books, manuals, test
                reports
                and certificates required by the rules and regulations. The Buyer,
                if so
                requested by the Builder, shall, without any charge to the Builder,
                cause
                the representative of the manufacturers of the Buyer’s Supplies to assist
                the Builder in installation thereof in or on the Vessel and/or to
                carry
                out installation thereof by themselves and/or to make necessary
                adjustments thereof at the Shipyard or other places designated by
                the
                Builder.

            
	 	 
	
              (c)

               

            	
              Any
                and all of the Buyer’s Supplies shall be subject to the Seller’s and/or
                the Builder’s reasonable right of rejection, as and if they are found to
                be unsuitable or in improper condition for installation. However,
                if so
                requested by the Buyer, the Seller may cause the Builder to repair
                or
                adjust the Buyer’s Supplies without prejudice to the Seller’s and the
                Builder’s other rights hereunder and without being responsible for any
                consequences therefrom. In such case, the Buyer shall reimburse the
                Seller
                and/or the Builder for all costs and expenses incurred by the Seller
                and/or the Builder in such repair or adjustment and the Expected
                Delivery
                Date shall be automatically extended for a period of time necessary
                for
                such repair or replacement.

            
	 	 
	
              (d)

               

            	
              Should
                the Buyer fail to deliver any of the Buyer’s Supplies within the time
                designated, and as a result of this delay the Builder cannot deliver
                the
                vessel on the Expected Delivery Date, the Expected Delivery Date
                shall be
                postponed by the period of the actual delay caused by the delay in
                delivery of the Buyer’s Supplies.

            
	 	 
	 	
              If
                delay in delivery of any of the Buyer’s Supplies exceeds thirty (30) days,
                then, the Seller and/or the Builder shall be entitled to proceed
                with
                construction of the Vessel without installation thereof in or on
                the
                Vessel and the Buyer shall accept and take delivery of the Vessel
                so
                constructed, unless otherwise mutually agreed upon between the parties
                hereto.

            

    

     

    
      	2.	
              Responsibility
                of Seller and/or Builder:

            

    

     

    The
      Builder shall be responsible for storing, insuring and handling with reasonable
      care the Buyer’s Supplies after delivery thereof at the Shipyard and shall, at
      its own cost and expense, thereafter install them in or on the
      Vessel,

     

    
      
        
        

      

        41

        

        

      

      
        
        

      

    
     

    unless
      otherwise provided herein or agreed upon by the parties hereto; provided,
      however, that the Seller and the Builder shall not be responsible for quality,
      efficiency and/or performance of any of the Buyer’s Supplies.

     

    
      	3.	
              Running
                Spares, Stores, Provisions and Other Supplies:

            

    

     

    Running
      spares, stores, provisions and other supplies necessary to be kept or stored
      on
      board the Vessel for operation of the Vessel including those provided for in
      the
      Specifications are not construed as the Buyer’s Supplies under this
      Article.

     

    These
      spares, stores, provisions and supplies shall be furnished to and placed on
      board the Vessel at the Buyer’s cost and expense.

     

    (End
      of
      Article)

     

    
      
        
        

      

        42

        

        

      

      
        
        

      

    
     

    ARTICLE
      XVIII — NOTICE

     

    Any
      and
      all notices and communications in connection with this Contact shall be
      addressed as follows:

     

    
      	
              To
                the Buyer:

               

            	
              ENIAPROHI
                SHIPPING CORPORATION

              c/o
                SAFETY MANAGEMENT OVERSEAS S.A.

              32
                AVENUE KARAMANLI

              P.O.BOX
                70837

              GR-16605
                VOULA

               

              Phone:       +30
                210 895 7070

              Fax:            +30
                210 895 6900

               

            
	
              To
                the Seller:

               

            	
              ITOCHU
                Corporation

              5-1,
                Kita-Aoyama 2-Chome, Minato-ku,

              Tokyo
                107-8077, Japan

               

              Attention:   Marine
                Group No.1 of Marine Department

                                  TOKBR
                Section

               

              Phone:       81-3-3497-2963

              Fax
                :           81-3-3497-7111

            

    

     

    Any
      and
      all notices and communications in connection with this Contract shall be written
      in English language. For the avoidance of doubt, all references to notices
      in
      writing shall include notices given by fax. Every notice, request, demand or
      other communication under this Contract shall be given by first class registered
      air-mail or other fast delivery postal service or fax or telex and be deemed
      to
      have been received (a) in the case of letter posted on the earlier of (i) actual
      receipt and (ii) five (5) days after being posted and a receipt being obtained
      from the relevant postal service and (b) in the case of a telefax at the time
      of
      dispatch thereof (provided that if the date of receipt or, as the case may
      be,
      dispatch is not a business day in the country of the addressee it shall be
      deemed to have been received at the opening of business on the next such
      business day).

     

    (End
      of
      Article)

     

    
      
        
        

      

        43

        

        

      

      
        
        

      

    
     

    ARTICLE
      XIX — EFFECTIVE DATE OF CONTRACT

     

    
      	
              1.

            	
              This
                Contract shall become effective on the date of execution hereof.
                Notwithstanding the foregoing, in the event that the Construction
                Permit
                for the Vessel is not obtained from the Japanese Government prior
                to
                keel-laying of the Vessel (i.e. the first structural assembly of
                the
                Vessel has been placed in the building dock or on the building berth),
                then, this Contract shall automatically become null and void, unless
                otherwise mutually agreed upon in writing between the parties hereto
                and
                the parties hereto shall be immediately and completely discharged
                from all
                of their obligations to each other under this Contract as though
                this
                Contract had never been entered into at all. In such event, the Seller
                shall refund to the Buyer full amount of the First Instalment as
                defined
                in Article II of this Contract together with interest at the rate
                of six
                percent (6%) per annum from the date of receipt of such amounts by
                the
                Seller until the date of refund thereof within thirty (30) days after
                the
                date on which this Contract shall have become null and
                void.

            

    

     

    (End
      of
      Article)

     

    
      
        
        

      

        44

        

        

      

      
        
        

      

    
     

    ARTICLE
      XX—
      SELLER’S AND/OR BUILDER’S DEFAULT

     

    The
      Buyer
      shall be entitled to terminate this Contract forthwith whereupon the provisions
      of Article X hereof shall apply, by the giving of notice to the Seller by letter
      or facsimile should any of the following events occur:

     

    
      	
              (a)

               

            	
              the
                cessation of the carrying on of business or the filing of a petition
                or
                the making of an order or the passing of an effective resolution
                for the
                winding-up of or the appointment of a receiver of the undertaking
                or
                property of, or the insolvency of, the Seller or the Builder unless
                (i)
                the Builder or the Seller (whichever is relevant) provide to the
                Buyer
                within forty five (45) days of written notice from the Buyer evidence
                that
                it remains able to complete the Vessel in accordance with the terms
                of
                this Contract and (ii) such evidence is accepted in the fair judgement
                of
                the Buyer, or

            
	 	 
	
              (b)

               

            	
              the
                placing of the Seller or the Builder under court protection or analogous
                proceedings or corporate reorganization unless (i) the Builder or
                the
                Seller (whichever is relevant) provide to the Buyer within one hundred
                and
                twenty (120) days of written notice from the Buyer evidence that
                it
                remains able to complete the Vessel in accordance with the terms
                of this
                Contract and (ii) such evidence is accepted in the fair judgement
                of the
                Buyer.

            

    

     

    (End
      of
      Article)

     

    
      
        
        

      

        45

        

        

      

      
        
        

      

    
     

    ARTICLE
      XXI — INTERPRETATION

     

    
      
        	1.	
                Laws
                  and Regulations Applicable:

              

      

    

     

    The
      parties hereto agree that this Contract shall be governed by, and the validity
      and interpretation of this Contract and of each Article and part thereof shall
      be construed and interpreted in accordance with, the laws of
      England.

     

    
      	2.	
              Discrepancies:

            

    

     

    All
      general language or requirements embodied in the Specifications are intended
      to
      amplify, explain and implement the requirements of this Contract. However,
      in
      the event that any language or requirements so embodied permit of an
      interpretation inconsistent with any provisions of this Contract, then, in
      each
      and every such event, the applicable provisions of this Contract shall govern.
      The Specifications and the Plans and Drawings (which expression for the purposes
      of this Paragraph shall include the Plan) are also intended to explain each
      other, and anything shown on the Plans and Drawings and not stipulated in the
      Specifications or stipulated in the Specifications and not shown on the Plans
      and Drawings shall be deemed and considered as if embodied in both.

     

    
      	3.	
              Entire
                Agreement:

            

    

     

    This
      Contract contains the entire agreement and understanding between the parties
      hereto and supersedes all prior negotiations, representations, undertakings
      and
      agreements on any matter of this Contract.

     

    (End
      of
      Article)

     

    
      
        
        

      

        46

        

        

      

      
        
        

      

    
     

    IN
      WITNESS WHEREOF,
      the
      parties hereto have caused this Contract to be duly executed on the day and
      year
      first above written.

     

    
      	
              Buyer:

            	 	
              Seller:

            
	 	 	 
	
              /s/George
                Papadopoulos

            	 	
              /s/
                Y. Nishimuro

            
	
              ENIAPROHI
                SHIPPING CORPORATION

            	 	
              ITOCHU
                CORPORATION

            
	 	 	 
	
              George
                Papadopoulos

            	 	
              Y.
                Nishimuro

            
	
              By:

            	 	
              By:

            
	 	 	 
	
              Title:
                Attorney-in-fact

            	 	
              Title:
                Attorney-in-fact

            
	 	 	 
	
              Witness:

            	 	
              Witness:

            
	 	 	 
	
              /s/
                L.N. Barbaris

            	 	
              /s/
                H. Fujimoto

            
	
              By:

            	 	
              By:

            
	 	 	 
	
              Name:
                L.N. Barbaris

            	 	
              Name:
                H. Fujimoto

            
	 	 	 
	
              Title:

            	 	
              Title:

            

    

     

    
      
        
        

      

        47

        

        

      

      
        
        

      

    
     

    EXHIBIT
      “A”

     

    STAGE
      CERTIFICATE

     

    Hull
      No.
      3254 of IHI
      MARINE UNITED INC.
      (the
“Builder”)
      under
      the Shipbuilding Contract dated the 28th day of August 2006 (the “Shipbuilding
      Contract”)
      made
      between the Builder and ITOCHU
      CORPORATION
      (the
“Seller”),
      and
      the Shipsales Contract dated the 28th day of August 2006 (the “Shipsales
      Contract”)
      made
      between ENIAPROHI
      SHIPPING CORPORATION
      (the
“Buyer”)
      and the
      Seller (both the “Contracts”)

     

    We
      hereby
      certify in connection with the Contracts of the above Vessel that
      [____________________]

     

    
      	
              The
                Builder

            	 	
              The
                Buyer

            
	 	 	 
	 	 	 
	
              Authorised
                Representative

            	 	
              Authorised
                Representative

            
	 	 	 
	 	 	
              For
                and on behalf of

              The
                Classification Society

              Dated

            

    

     

    
      
        
        

      

        48

        

        

      

      
        
        

      

    
     

    EXHIBIT
      “B”

     

    PERFORMANCE
      GUARANTEE

     

    Messrs.
      ITOCHU Corporation

     

    Dear
      Sirs

     

    We
      hereby
      irrevocably and unconditionally, and jointly and severally with ENIAPROHI
      SHIPPING CORPORATION
      (hereinafter called the “BUYER”),
      guarantee to you (i) the due and punctual payment of each instalment of the
      Contract Price and all other sums of money owing to you by the Buyer under
      the
      Shipsales Contract (hereinafter called the “Contract”)
      dated
      15 March 2006 in respect of one (1) unit of D/W 87,000M.T. Type Bulk
      Carrier bearing the Hull No.3254 (hereinafter called the “Vessel”)
      of
IHI
      MARINE UNITED INC.,
      Japan
      and (ii) the due and punctual performance of any other obligations of the Buyer
      under the Contract, and theretofore, we hereby irrevocably and unconditionally
      (save as provided below) agree that should there be any default in payment
      of
      any sum or any default of performance of any obligation thereunder, we shall,
      immediately upon your simple demand (to be addressed in writing to us at 32
      Avenue Karamanli, GR-16605 Voula, Athens, Greece, Telefax: +30-210-895-6900),
      make payment of such sum or perform such other obligation in your favour in
      accordance with the terms thereof.

     

    This
      Performance Guarantee shall become effective upon execution by us and shall
      become null and void upon rescission by the BUYER of the Contract or delivery
      to
      and acceptance by the Buyer of the Vessel, and in either case this Guarantee
      and
      any copies thereof in your possession shall be immediately returned to
      us.

     

    The
      existence of this Performance Guarantee and Its terms and conditions shall
      be
      treated by you as confidential and shall not be disclosed by you to any person,
      authority or entity and your obligation of confidentiality hereunder shall
      continue even after the return of this Performance Guarantee to
      us.

     

    This
      Performance Guarantee shall be governed by and construed in accordance with
      the
      laws of England and any dispute arising under or in connection with this
      Performance Guarantee shall be submitted to arbitration on terms similar to
      those provided pursuant to the provisions of Article XIII of the Contract,
      which
      Article shall be incorporated mutatis mutandis in this Performance
      Guarantee.

     

    
      	
              Dated:    _______________________________

            
	 
	
              By:

            
	 
	
              Title:

            

    

     

    
      
        
        

      

        49

        

        

      

      
        
        

      

    
     

    EXHIBIT
      “C”

     

    ENIAPROHI
      SHIPPING CORPORAITION

    c/o
      SAFETY MANAGEMENT OVERSEAS S.A.

     

    32
      Avenue
      Karamanli

    GR-16605
      Voula, Athens, Greece

     

    REFUND
      GUARANTEE

     

    Gentlemen:

     

    We
      hereby
      open our irrevocable Letter of Guarantee number in favour of ENIAPROHI
      SHIPPING CORPORATION
      (hereinafter called the “Buyer”)
      for
      account of ITOCHU
      CORPORATION
      (hereinafter called the “Seller’)
      as
      follows in connection with the Shipsales Contract dated
               
(hereinafter called the “Contract”)
      made by
      and between the Buyer and the Seller for the construction and sale of one (1)
      D/W 87,000 M.T. Type Bulk Carrier having Hull No. 3254 of IHI
      MARINE UNITED INC.
      (hereinafter called the “Vessel”).

     

    If
      in
      connection with the terms of the Contract the Buyer shall become entitled to
      a
      refund of the
               
instalment paid to the Seller prior to the delivery of the Vessel (not exceeding
      JP¥
      (say
               
Japanese Yen only)), we hereby irrevocably guarantee the repayment of the same
      to the Buyer within fifteen (15) business days after demand by the Buyer
      together with interest thereon at the rate of ten per cent (10%) per annum
      or,
      in relation to a period of time during which a force majeure event operated,
      without any interest for the duration of “permissible delays” pursuant to
      Article VIII, from the date following the date of receipt by the Seller to
      the
      date of remittance by telegraphic transfer of such refund.

     

    Payments
      will be made by us against Buyer’s written demand and signed statement
      certifying that Buyer’s demand for refund has been made in conformity with
      Article X of the Contract and the Seller has failed to make the
      refund.

     

    This
      Letter of Guarantee is assignable to any third party.

     

    This
      Letter of Guarantee is valid from the date of this Letter of Guarantee until
      the
      earlier of (i) receipt by the Buyer of the sum guaranteed hereby or (ii)
      acceptance by the Buyer of the delivery of the Vessel in accordance with the
      terms of the Contract.

     

    This
      Letter of guarantee shall be governed by and construed in accordance with the
      laws of England and the undersigned hereby submits to the exclusive jurisdiction
      of the High Court of Justice of England and Wales in relation to any dispute
      or
      difference arising hereunder or connected herewith.

     

    All
      demands, statements or notices in connection with this Letter of Guarantee
      shall
      be validly given if sent to us by telefax to our office at [country and town
      of
      office] as follows:

     

    [                                                              ]

     

    Fax:

     

    
      
        
        

      

        50

        

        

      

      
        
        

      

    
     

    In
      the
      event that any withholding or deduction is imposed by any law, the undersigned
      will pay such additional amount as may be necessary in order that the actual
      amount received after deduction or withholding shall be equal to the amount
      that
      would have been received if such deduction or withholding were not
      required.

     

    This
      Letter of Guarantee shall remain in full force and effect, notwithstanding
      any
      amendments made to the Contract by the parties thereto.

     

    Very
      truly yours

     

    
      
        
        

      

      
        51EXHIBIT
      10.30

     

    SHIPSALES
      CONTRACT

     

    FOR

     

    CONSTRUCTION
      AND SALE

     

    OF

     

    A
      87,000 MTDW SINGLE SCREW

     

    DIESEL
      DRIVEN BULK CARRIER

     

    (THE
      FUTURE-87)

     

    HULL
      NO. 3255

     

    BETWEEN

     

    ENIADEFHI
      SHIPPING CORPORATION

     

    AND

     

    ITOCHU
      CORPORATION

     

    
      
        
        

      

        I

        
          

        

      

      
        
        

      

    
     

    I
      N D
      E X

     

    
      	
            	 	 	
              PAGE

            
	 	 	 
	
              PREAMBLE

            	 	
              P-1

            
	 	 	 
	
              ARTICLE
                I – SPECIFICATIONS AND CLASS OF VESSEL

            	 	 
	 	 	 
	
              1.

            	
              Specifications

            	 	
              P-2

            
	 	 	 	 
	
              2.

            	
              Principal
                Particulars

            	 	
              P-2

            
	 	 	 	 
	
              3.

            	
              Class
                and Rules

            	 	
              P-3

            
	 	 	 	 
	
              4.

            	
              Places
                of Assembly and Construction

            	 	
              P-4

            
	 	 	 	 
	
              5.

            	
              Subcontracting

            	 	
              P-4

            
	 	 	 	 
	
              6.

            	
              Registration
                of Vessel

            	 	
              P-4

            
	 	 	 	 
	
              7.

            	
              Obligations
                of the Builder

            	 	
              P-4

            
	 	 	 	 
	
              ARTICLE
                II – CONTRACT PRICE AND TERMS OF PAYMENT

            	 	 
	 	 	 
	
              1.

            	
              Contract
                Price

            	 	
              P-5

            
	 	 	 	 
	
              2.

            	
              Adjustment
                of Contract Price 

            	 	
              P-5

            
	 	 	 	 
	
              3.

            	
              Currency
                

            	 	
              P-5

            
	 	 	 	 
	
              4.

            	
              Due
                Date and Due Amount of Payment 

            	 	
              P-5

            
	 	 	 	 
	
              5.

            	
              Method
                of Payment 

            	 	
              P-6

            
	 	 	 	 
	
              6.

            	
              Notice
                of Payment 

            	 	
              P-7

            
	 	 	 	 
	
              7.

            	
              Performance
                Guarantee 

            	 	
              P-7

            
	 	 	 	 
	
              8.

            	
              Prepayment
                

            	 	
              P-8

            
	 	 	 	 
	
              ARTICLE
                III – ADJUSTMENT OF CONTRACT PRICE

            	 	 
	 	 	 
	
              1.

            	
              Delayed
                Delivery 

            	 	
              P-9

            
	 	 	 	 
	
              2.

            	
              Insufficient
                Speed

            	 	
              P-10

            
	 	 	 	 
	
              3.

            	
              Excessive
                Fuel Consumption 

            	 	
              P-10

            
	 	 	 	 
	
              4.

            	
              Deficiency
                in Deadweight 

            	 	
              P-10

            
	 	 	 	 
	
              5.

            	
              Duty
                to Mitigate 

            	 	
              P-11

            
	 	 	 	 
	
              6.

            	
              Expedited
                Delivery 

            	 	
              P-11

            
	 	 	 	 
	
              ARTICLE
                IV – MODIFICATIONS AND CHANGES

            	 	 
	 	 	 
	
              1.

            	
              Modifications
                to Specifications 

            	 	
              P-12

            
	 	 	 	 
	
              2.

            	
              Changes
                in Class, etc 

            	 	
              P-12

            
	 	 	 	 
	
              3.

            	
              Substitution
                of Materials 

            	 	
              P-13

            

    

     

    
      
        
        

      

        II

        
          

        

      

      
        
        

      

    
     

    
      	
              ARTICLE
                V – APPROVAL OF DRAWINGS AND INSPECTION

            	 	 
	 	 	 
	
              1.

            	
              Appointment
                of Buyer’s Representative 

            	 	
              P-15

            
	 	 	 	 
	
              2.

            	
              Approval
                of Drawings 

            	 	
              P-15

            
	 	 	 	 
	
              3.

            	
              Inspection
                by Buyer 

            	 	
              P-15

            
	 	 	 	 
	
              4.

            	
              Facilities
                

            	 	
              P-16

            
	 	 	 	 
	
              5.

            	
              Liability
                of Seller and/or Builder 

            	 	
              P-16

            
	
               

            	 	 	 
	
              6.

            	
              Responsibility
                of Buyer 

            	 	
              P-17

            
	 	 	 	 
	
              ARTICLE
                VI – SEA TRIAL

            	 	 
	 	 	 
	
              1.

            	
              Notice
                

            	 	
              P-18

            
	 	 	 	 
	
              2.

            	
              Weather
                Condition 

            	 	
              P-18

            
	 	 	 	 
	
              3.

            	
              How
                conducted 

            	 	
              P-18

            
	 	 	 	 
	
              4.

            	
              Method
                of Acceptance or Rejection 

            	 	
              P-19

            
	 	 	 	 
	
              5.

            	
              Effect
                of Acceptance 

            	 	
              P-19

            
	 	 	 	 
	
              6.

            	
              Disposition
                of Remaining Consumable Stores 

            	 	
              P-20

            
	 	 	 	 
	
              ARTICLE
                VII – DELIVERY

            	 	 
	 	 	 
	
              1.

            	
              Time
                and Place 

            	 	
              P-21

            
	 	 	 	 
	
              2.

            	
              When
                and How Effected 

            	 	
              P-21

            
	 	 	 	 
	
              3.

            	
              Documents
                to be Delivered to Buyer 

            	 	
              P-21

            
	 	 	 	 
	
              4.

            	
              Title
                and Risk 

            	 	
              P-22

            
	 	 	 	 
	
              5.

            	
              Removal
                of Vessel 

            	 	
              P-22

            
	 	 	 	 
	
              ARTICLE
                VIII – DELAY AND EXTENSION OF TIME FOR DELIVERY
                             (FORCE
                MAJEURE)

            	 	 
	 	 	 
	
              1.

            	
              Clause
                of Delay 

            	 	
              P-23

            
	 	 	 	 
	
              2.

            	
              Notice
                

            	 	
              P-23

            
	 	 	 	 
	
              3.

            	
              Right
                to Rescind for Excessive Permissible Delay 

            	 	
              P-24

            
	 	 	 	 
	
              4.

            	
              Right
                to Rescind for Excessive Delay 

            	 	
              P-24

            
	 	 	 	 
	
              5.

            	
              Definition
                of Permissible Delay 

            	 	
              P-24

            
	 	 	 	 
	
              ARTICLE
                IX – WARRANTY

            	 	 
	 	 	 
	
              1.

            	
              Warranty
                and Warranty Period 

            	 	
              P-26

            
	 	 	 	 
	
              2.

            	
              Notice
                of Defects 

            	 	
              P-26

            
	 	 	 	 
	
              3.

            	
              Extent
                of Seller’s and Builder’s Liability 

            	 	
              P-26

            
	 	 	 	 
	
              4.

            	
              Remedy
                of Defects Covered by Warranty 

            	 	
              P-27

            

    

     

    
      
        
        

      

        III

        
          

        

      

      
        
        

      

    
     

    
      	
              5.

            	
              Freight
                Charges 

            	 	
              P-27

            
	 	 	 	 
	
              6.

            	
              Conditions
                of Warranty 

            	 	
              P-28

            
	 	 	 	 
	
              7.

            	
              Warranty
                to be Exclusive 

            	 	
              P-28

            
	 	 	 	 
	
              8.

            	
              Assignment
                of Rights 

            	 	
              P-28

            
	 	 	 	 
	
              9.

            	
              Arbitration
                

            	 	
              P-28

            
	 	 	 	 
	
              ARTICLE
                X – RESCISSION BY BUYER

            	 	 
	 	 	 
	
              1.

            	
              Notice
                

            	 	
              P-29

            
	 	 	 	 
	
              2.

            	
              Refund
                to Buyer 

            	 	
              P-29

            
	 	 	 	 
	
              4.

            	
              Discharge
                of Obligations 

            	 	
              P-29

            
	 	 	 	 
	
              5.

            	
              Refund
                Guarantee 

            	 	
              P-29

            
	 	 	 	 
	
              ARTICLE
                XI – BUYER’S DEFAULT

            	 	 
	 	 	 
	
              1.

            	
              Definition
                of Default 

            	 	
              P-31

            
	 	 	 	 
	
              2.

            	
              Interest
                and Charge 

            	 	
              P-31

            
	 	 	 	 
	
              3.

            	
              Effect
                of Default 

            	 	
              P-31

            
	 	 	 	 
	
              4.

            	
              Disposal
                of Vessel 

            	 	
              P-32

            
	 	 	 	 
	
              ARTICLE
                XII – BUILDER’S INSURANCE

            	 	 
	 	 	 
	
              1.

            	
              Extent
                of Insurance Coverage 

            	 	
              P-33

            
	 	 	 	 
	
              2.

            	
              Application
                of Recovered Amount 

            	 	
              P-33

            
	 	 	 	 
	
              3.

            	
              Termination
                of Seller’s and Builder’s Obligation to Insure 

            	 	
              P-34

            
	 	 	 	 
	
              ARTICLE
                XIII – DISPUTES AND ARBITRATION

            	 	 
	 	 	 
	
              1.

            	
              Disputes
                

            	 	
              P-35

            
	 	 	 	 
	
              2.

            	
              Arbitration
                

            	 	
              P-35

            
	 	 	 	 
	
              3.

            	
              Alteration
                of Expected Delivery Date 

            	 	
              P-35

            
	 	 	 	 
	
              ARTICLE
                XIV – RIGHT OF ASSIGNMENT

            	 	
              P-37

            
	 	 	 
	
              ARTICLE
                XV – TAXES AND DUTIES

            	 	
            
	 	 	 
	
              1.

            	
              Taxes
                and Duties Imposed in Japan 

            	 	
              P-38

            
	 	 	 	 
	
              2.

            	
              Taxes
                and Duties Imposed outside Japan 

            	 	
              P-38

            
	 	 	 	 
	
              ARTICLE
                XVI – PATENTS, TRADEMARKS AND COPYRIGHTS, ETC.

            	 	 
	 	 	 
	
              1.

            	
              Patents,
                Trademarks and Copyrights 

            	 	
              P-39

            
	 	 	 	 
	
              2.

            	
              Specifications,
                Plans and Drawings

            	 	
              P-39

            

    

     

    
      
        
        

      

        IV

        
          

        

      

      
        
        

      

    
     

    
      	
              ARTICLE
                XVII – BUYER’S SUPPLIES

            	 	 
	 	 	 
	
              1.

            	
              Responsibility
                of Buyer

            	 	
              P-40

            
	 	 	 	 
	
              2.

            	
              Responsibility
                of Seller and/or Builder

            	 	
              P-40

            
	 	 	 	 
	
              3.

            	
              Running
                Spares, Stores, Provisions and Other Supplies

            	 	
              P-41

            
	 	 	 	 
	
              ARTICLE
                XVIII – NOTICE

            	 	
              P-42

            
	 	 	 
	
              ARTICLE
                XIX – EFFECTIVE DATE OF CONTRACT

            	 	
              P-43

            
	 	 	 
	
              ARTICLE
                XX – SELLER’S AND/OR BUILDER’S DEFAULT

            	 	
              P-44

            
	 	 	 
	
              ARTICLE
                XXI – INTERPRETATION

            	 	 
	 	 	 
	
              1.

            	
              Law
                and Regulations Applicable

            	 	
              P-45

            
	 	 	 	 
	
              2.

            	
              Discrepancies

            	 	
              P-45

            
	 	 	 	 
	
              3.

            	
              Entire
                Agreement

            	 	
              P-45

            
	 	 	 	 
	END
              OF CONTRACT	 	
              P-46

            

    

     

    
      	EXHIBIT
              “A” – Stage Certificate
	 
	EXHIBIT
              “B” – Performance Guarantee
	 
	EXHIBIT
              “C” – Refund Guarantee

    

     

    
      
        
        

      

        V

        
          

        

      

      
        
        

      

    

    SHIPSALES
      CONTRACT

     

    FOR
      CONSTRUCTION AND SALE

     

    OF
      A 87,000 MTDW SINGLE SCREW

     

    DIESEL
      DRIVEN BULK CARRIER

     

    HULL
      NO. 3255

     

    THIS
      CONTRACT,
      made
      and entered into this 28th day of August, 2006 by and between ENIADEFHI
      SHIPPING CORPORATION,
      a
      corporation organized and existing under the laws of Liberia having its
      registered office at 80 Broad Street, Monrovia (hereinafter called the “Buyer”),
      the party of the first part, and ITOCHU
      CORPORATION,
      a
      corporation organized and existing under the laws of Japan, having its
      registered office at 5-1, Kita-Aoyama 2 chome, Minato-ku, Tokyo, 107-8077,
      Japan, (hereinafter called the “Seller”), the party of the second
      part.

     

     

    W
      I T N E S S E T H:

     

    In
      consideration of the mutual covenants herein contained, the Seller agrees to
      cause IHI MARINE
      UNITED INC.,
      a
      corporation organized and existing under the laws of Japan, having its
      registered office at 22-23, Kaigan 3-chome, Minato-ku, Tokyo 108-0022, Japan
      (hereinafter called the “Builder”) to construct, equip and complete one (1) unit
      of Bulk Carrier as more fully described in Article I hereof (hereinafter called
      the “Vessel”) at one of the Builder’s shipyards in Yokohama or Kure, Japan
      (hereinafter called the “Shipyard”) and sell and deliver the Vessel to the Buyer
      , and the Buyer agrees to purchase and take delivery of the Vessel from the
      Seller and to pay for the same, subject to and in accordance with the terms
      and
      conditions hereinafter set forth.

     

    
      
        
        

      

        1

        
          

        

      

      
        
        

      

    
     

    ARTICLE
      I –
      SPECIFICATIONS AND CLASS OF VESSEL

     

    
      	
              1.

            	
              Specifications
                :

            

    

     

    The
      Vessel which has been designed by the Builder shall have the Builder’s Hull No.
      3255 and shall be constructed, equipped and completed in compliance with the
      following documents:

     

    Specifications
      (Dwg. No. K0000301)

     

    General
      Arrangement (Dwg. No. K2000401)

     

    (The
      above two (2) documents are hereinafter collectively called the
“Specifications”)

     

    The
      Shipbuilding Process and Inspection Standard, 2002 (SPAIS
      2002)

     

    Quality
      & Inspection Standard for Ship’s Painting, 2002 (QISSP
      2002)

     

    (The
      above two (2) documents are hereinafter collectively called the “Inspection
      Standards”)

     

    The
      Specifications and the Inspection standards signed by the parties hereto are
      attached hereto for identification and form an integral part
      hereof.

     

    
      	
              2.

            	
              Principal
                Particulars:

            

    

     

    The
      principal particulars of the Vessel shall be as follows:

     

    
      	 	
              (a)

            	
              Hull:

            

    

    

      
        	
                Length
                  overall

              	 	
                approx.
                  229.00 m

              
	
                Length
                  between perpendiculars

              	 	
                219.90
                  m

              
	
                Breadth,
                  moulded

              	 	
                36.50
                  m

              
	
                Depth,
                  moulded

              	 	
                19.90
                  m

              
	
                Designed
                  draught, moulded

              	 	
                12.40
                  m

              
	
                Scantling
                  draught, moulded

              	 	
                14.10
                  m

              

      

    

     

    
      	 	
              (b)

            	
              Propelling
                Machinery:

            

    

     

    
      
        	
                Type

              	 	
                DU
                  WARTSILA 6RTA58T

              
	
                No.
                  of Set

              	 	
                One
                  (1)            

              
	
                Normal
                  Output

              	 	
                8,550
                  KW at about 89.3 RPM

              
	
                Maximum
                  Continuous Output

              	 	
                10,300 KW at about 95.0 RPM

              

      

    

     

    
      	 	
              (c)

            	
              Deadweight
                :

            

    

     

    For
      the
      purposes of reduction or increase in the Contract Price (as defined in Paragraph
      1 of Article II hereof) or rescission by the Buyer of this Contract, only under
      Article III hereof, the Builder guarantees that the deadweight of the Vessel
      at
      the scantling draught as determined in accordance with the
      Specifications

     

    
      
        
        

      

        2

        
          

        

      

      
        
        

      

    
     

    shall
      not
      be less than 86,800 metric tons (hereinafter called the “Guaranteed
      Deadweight”).

     

    The
      actual deadweight of the Vessel when completed shall be calculated by the
      Builder in accordance with the Specifications.

     

    
      	 	
              (d)

            	
              Speed:

            

    

     

    For
      the
      purposes of reduction in the Contract Price or rescission by the Buyer of this
      Contract, only under Article III hereof, the Builder guarantees that the trial
      speed of the Vessel as determined in accordance with the Specifications shall
      not be less than 15.45 knots (hereinafter called the “Guaranteed Speed”) at a
      normal output of the main engine in clean bottom, calm and deep
      sea.

     

    In
      case
      of rough sea and/or shallow water condition at sea trial, the speed results
      shall be corrected to calm and deep sea condition according to the method
      prescribed in the Specifications.

     

    
      	 	
              (e)

            	
              Fuel
                Consumption:

            

    

     

    For
      the
      purposed of reduction in the Contract Price or rescission by the Buyer of this
      contract, only under Article III hereof, the Builder guarantees that the fuel
      consumption of the main engine as determined in accordance with the
      Specifications shall not be more than 167.7 grams/kWh (hereinafter called the
      “Guaranteed Fuel Consumption”) at a normal output of the main engine using fuel
      oil having net calorific value of 42,700Kj/kg based on shop trial under ISO
      reference condition.

     

    
      	
              3.

            	
              Class
                and Rules:

            

    

     

    The
      Vessel, including its machinery, equipment and outfitting shall be constructed
      in accordance with the rules and requirements and under survey of Lloyd’s
      Register of Shipping (hereinafter called the “Classification Society”) and shall
      be distinguished in the register of the Classification Society by the symbols
      of
      + 100A1 Bulk Carrier, BC-A, Strengthened for Heavy Cargoes, Holds Nos.2, 4
&
6 may be empty, ShipRight (SDA, FDA, CM), ESN, ESP, LI, + LMC, UMS,
      *IWS.

     

    The
      Vessel shall also comply with the rules, regulations and requirements of other
      regulatory bodies as described in the Specifications. The Seller or the Builder
      shall provide the Buyer with a copy of all correspondence e-mails and notes
      of
      meetings with the Classification Society in respect of any particular matter
      whenever requested in writing by the Buyer.

     

    All
      the
      foregoing rules, regulations and requirements including those of the
      Classification Society applicable to the Vessel shall be those which are
      published as of the date of this Contract and which are in force or will have
      mandatory application to the Vessel.

     

    All
      fees
      and charges incidental to compliance with the foregoing rules, regulations
      and
      requirements shall be for the account of the Builder.

     

    
      
        
        

      

        3

        
          

        

      

      
        
        

      

    
     

    
      	
              4.

            	
              Places
                of Assembly and Construction :

            

    

     

    Save
      as
      provided in paragraph 5 the Vessel shall be assembled, constructed, equipped,
      launched and completed at the Shipyard. The Builder may not without the Buyer’s
      prior written consent fabricate, assemble or manufacture any parts and/or any
      components of the Vessel at any places other than the Shipyard or at one of
      its
      other facilities in Japan at the Builder’s discretion and
      responsibility.

     

    
      	
              5.

            	
              Subcontracting:

            

    

     

    In
      addition to any parts of the Vessel specified and agreed in the Specification
      the Builder may also at its sole discretion and responsibility subcontract
      the
      construction of any part of the vessel in Japan. The Builder shall not
      subcontract the construction of the hull structure, superstructure and rudder
      of
      the Vessel outside Japan in excess of 250 metric tons without the Buyer’s prior
      written consent (which consent shall not be unreasonably withheld).

     

    
      	
              6.

            	
              Registration
                of Vessel:

            

    

     

    The
      Vessel shall be registered by the Buyer at its own cost and expense under the
      laws of Cyprus with its home port of Limassol.

     

    
      	
              7.

            	
              Obligations
                of the Builder:

            

    

     

    Any
      obligations hereunder of the Builder are obligations of the Seller. The Seller
      is fully responsible hereunder for the due performance of all the Builder’s
      rights and obligations as “Builder” in accordance with the terms and conditions
      of this Contract. A copy of this Contract will be provided by the Seller to
      the
      Builder and the Seller warrants that the Builder will comply with its
      obligations hereunder.

     

    (End
      of
      Article)

     

    
      
        
        

      

        4

        
          

        

      

      
        
        

      

    
     

    ARTICLE
      II –
      CONTRACT PRICE AND TERMS OF PAYMENT

     

    
      	
              1.

            	
              Contract
                Price :

            

    

     

    The
      total
      purchase price of the Vessel net receivable by the Seller and exclusive of
      the
      Buyer’s Supplies (as defined in Paragraph 1 of Article XVII hereof but inclusive
      of the cost of storing, insuring, handling and installing the same in the
      vessel) is Four Billion Two Hundred Sixty Million Japanese Yen
      (JPY4,260,000,000.-) (hereinafter called the “Contract Price”) subject only to
      upward or downward adjustment, if any, as hereinafter set forth in this
      Contract.

     

    
      	
              2.

            	
              Adjustment
                of Contract Price :

            

    

     

    Adjustment
      of the Contract Price, if any, in accordance with the provisions of this
      Contract shall be made by way of addition to or subtraction from the instalment
      due and payable upon delivery of the Vessel in the manner as hereinafter
      provided.

     

    
      	
              3.

            	
              Currency
                :

            

    

     

    Any
      and
      all payments by the Buyer to the Seller under this Contract shall be made in
      Japanese Yen.

     

    
      	
              4.

            	
              Due
                Date and Due Amount of Payment

            

    

     

    The
      Contract Price shall be payable by the Buyer to the Seller on and in the
      following due dates and instalments without any deduction
      whatsoever.

     

    Any
      and
      all expenses for remittance and any other charges of any nature whatsoever
      connected with the following payments by the Buyer to the Seller shall be for
      the account of the Buyer.

     

    
      	 	
              (a)

            	
              First
                Instalment:

            

    

     

    Five
      Hundred Fifty Million Japanese Yen (JPY550,000,000.-) shall be due and payable
      upon the later of (i) the execution of this Contract and the Performance
      Guarantee relating hereto by all parties; and (ii) the date of delivery of
      the
      original letter of Refund Guarantee specified in Article X hereof to the Buyer
      at its address as set out in Article XVIII.

     

    
      	 	
              (b)

            	
              Second
                Instalment

            

    

     

    Four
      Hundred Million Japanese Yen (JPY400,000,000.-) shall be due and payable upon
      the later of (i) eighteen (18) months after the execution of this Contract;
      and
      (ii) the date of delivery of the original letter of Refund Guarantee in relation
      to the Second Instalment specified in Article X hereof to the Buyer at its
      address as set out in Article XVIII.

     

    
      	 	
              (c)

            	
              Third
                Instalment:

            

    

     

    Four
      Hundred Million Japanese Yen (JPY400,000,000.-) shall be due and payable upon
      the later of (i) the date of delivery to the Buyer’s Representative
      of

     

    
      
        
        

      

        5

        
          

        

      

      
        
        

      

    
     

    a
      Stage
      Certificate in the form of Exhibit “A” attached hereto confirming keel laying of
      the Vessel has been completed and such Certificate being signed by the
      Classification Society Surveyor, the Builder and the Buyer’s Representative
      (provided however that in the event the Buyer’s Representative is absent from
      the Shipyard on the date the said Stage Certificate is to be signed, then the
      Buyer’s Representative’s signature will not be required in relation to the
      execution of such Stage Certificate); and (ii) the date of delivery of the
      original letter of Refund Guarantee in relation to the Third Instalment
      specified in Article X, paragraph 4 hereof to the Buyer at its address as set
      out in Article XVIII.

     

    
      	 	
              (d)

            	
              Fourth
                Instalment:

            

    

     

    Four
      Hundred Million Japanese Yen (JPY400,000,000.-) shall be due and payable upon
      the later of (i) the date of delivery to the Buyer’s Representative of a Stage
      Certificate in the form of Exhibit “A” attached hereto confirming launching of
      the Vessel has been completed and such Certificate being signed by the
      Classification Society Surveyor, the Builder and the Buyer’s Representative
      (provided however that in the event the Buyer’s Representative is absent from
      the Shipyard on the date the said Stage Certificate is to be signed, then the
      Buyer’s Representative’s signature will not be required in relation to the
      execution of such Stage Certificate); and (ii) the date of delivery of the
      original letter of Refund Guarantee in relation to the Fourth Instalment
      specified in Article X, paragraph 4 hereof to the Buyer at its address as set
      out in Article XVIII.

     

    
      	 	
              (e)

            	
              Fifth
                Instalment:

            

    

     

    Two
      Billion Five Hundred Ten Million Japanese Yen (JPY2,510,000,000.-), plus any
      addition to or (as the case may be) less any deduction from the Contract Price
      due to adjustments of the Contract Price as set forth in this Contract, shall
      be
      due and payable upon delivery and acceptance of the Vessel by the Buyer in
      accordance with the terms of this Contract.

     

    PROVIDED
      HOWEVER,
      that
      none of the above instalments shall be payable if the Refund Guarantee referred
      to in Article X, paragraph 4 ceases to be in force and no substitute Refund
      Guarantee has been provided in accordance with the provisions of
      this Contract.

     

    The
      date
      on which any of the above instalments becomes due and payable pursuant to
      Article II, paragraph 4 of this Contract shall be herein referred to as the
“Due
      Date”.

     

    
      	
              5.

            	
              Method
                of Payment:

            

    

     

    
      	 	
              (a)

            	
              First
                Instalment:

            

    

     

    Within
      three (3) Banking days (as defined in Paragraph 1 (a) of Article XI hereof)
      after the Due Date of the First Instalment, the Buyer shall remit the First
      Instalment by telegraphic transfer to the Seller’s account at a Japanese bank to
      be designated by the Seller (“the Seller’s Bank Account”) and advised to the
      Buyer reasonably in advance of the date of payment (such Japanese bank being
      hereinafter called “the Bank”).

     

    
      
        
        

      

        6

        
          

        

      

      
        
        

      

    
     

    
      	 	
              (b)

            	
              Second
                Instalment:

            

    

     

    Within
      three (3) Banking Days after the Due Date of the Second Instalment the Buyer
      shall remit the Second Instalment by telegraphic transfer to the Seller’s Bank
      Account.

     

    
      	 	
              (c)

            	
              Third
                Instalment:

            

    

     

    Within
      three (3) Banking Days after the Due Date of the Third Instalment the Buyer
      shall remit the Third Instalment by telegraphic transfer to the Seller’s Bank
      Account.

     

    
      	 	
              (d)

            	
              Fourth
                Instalment

            

    

     

    Within
      three (3) Banking Days after the Due Date of the Fourth Instalment the Buyer
      shall remit the Fourth Instalment by telegraphic transfer to the Seller’s Bank
      Account.

     

    
      	 	
              (e)

            	
              Fifth
                Instalment:

            

    

     

    At
      least
      three (3) Banking Days prior to the anticipated delivery of the Vessel, the
      Buyer shall remit the Fifth Instalment as adjusted in accordance with the
      provisions of this Contract by telegraphic transfer to the Bank with an
      irrevocable instruction that the amount so remitted shall be paid into the
      Seller’s Bank Account upon presentation by the Seller to the Bank, of a copy of
      Protocol of Delivery and Acceptance of the Vessel executed by the Buyer and
      the
      Seller pursuant to Paragraph 2 of Article VII hereof.

     

    No
      payment under this Contract shall be delayed, suspended or withheld by the
      Buyer
      on account of any dispute or disagreement between the parties
      hereto.

     

    
      	
              6.

            	
              Notice
                of Payment:

            

    

     

    With
      exception of the First Instalment, the Seller shall give the Buyer seven (7)
      days prior notice in writing of the anticipated due date of payment of each
      instalment.

     

    
      	
              7.

            	
              Performance
                Guarantee:

            

    

     

    As
      security for (i) due and punctual payments of all of the instalments of the
      Contract Price and all other sums of money due to the Seller hereunder and
      (ii)
      due and punctual performance of any and all other obligations of the Buyer
      whatsoever, the Buyer shall, upon signing of this Contract, furnish the Seller
      with a performance guarantee (hereinafter called the “Performance Guarantee”) in
      the form of Exhibit “B” attached to this Contract to be executed by a company
      nominated by the Buyer and approved by the Seller.

     

    Both
      the
      Seller and the Builder agree and undertake to safeguard, treat as confidential
      and not disclose to any person, authority or entity the existence and/or terms
      and conditions of the Performance Guarantee and this obligation of
      confidentiality shall continue even after the return of the Performance
      Guarantee to the issuer thereof.

     

    
      
        
        

      

        7

        
          

        

      

      
        
        

      

    
     

    The
      Seller further agrees and undertakes to return to the issuer of the Performance
      Guarantee, the original thereof and all copies in their possession upon the
      earlier of (i) delivery and acceptance of the Vessel or (ii) rescission of
      this
      Contract by the Buyer in accordance with the terms hereof.

     

    
      	
              8.

            	
              Prepayment:

            

    

     

    Prepayment
      of any instalment shall be subject to mutual agreement between the parties
      hereto.

     

    (End
      of
      Article)

     

    
      
        
        

      

        8

        
          

        

      

      
        
        

      

    
     

    ARTICLE
      III –
      ADJUSTMENT OF CONTRACT PRICE

     

    The
      Contract Price shall be subject to adjustment as hereinafter set forth in the
      event of the following contingencies (it being understood by the parties hereto
      that any reduction in the Contract Price to be made hereunder is by way of
      liquidated damages and not by way of penalty):

     

    
      	
              1.

            	
              Delayed
                Delivery:

            

    

     

    
      	 	
              (a)

            	
              No
                adjustment shall be made and the Contract Price shall remain unchanged
                for
                the first thirty (30) days of delay in delivery of the Vessel beyond
                the
                Expected Delivery Date (as defined in Article VII hereof) as postponed
                and/or extended under the provisions of this Contract (ending as
                of twelve
                o’clock midnight of the thirtieth (30th) day of
                delay).

            

    

     

    
      	 	
              (b)

            	
              If
                delivery of the Vessel is delayed more than thirty (30) days after
                the
                Expected Delivery Date as postponed and/or extended under the provisions
                of this Contract, the Contract Price shall be reduced by deducting
                therefrom the amount of One Million One Hundred Eighty Three Thousand
                Japanese Yen (JPY1,183,000) for each day of delay over the aforesaid
                grace
                of thirty (30) days. However, the maximum reduction in the Contract
                Price
                shall in no event be more than the amount in the case of a delay
                of one
                hundred eighty (180) days after the aforesaid grace of thirty (30)
                days.

            

    

     

    
      	 	
              (c)

            	
              If
                delay in delivery of the Vessel continues for a period of one hundred
                eighty (180) days from the thirty-first (31st) day after the Expected
                Delivery Date as postponed and/or extended under the provisions of
                this
                Contract, then, the Buyer shall have the option either to accept
                the
                Vessel at a maximum reduction in the Contract Price as above provided
                or
                to rescind this Contract in accordance with the provisions of Article
                X
                hereof as alternative to receiving the aforesaid liquidated damages.
                At
                any time after the expiry of the aforementioned one hundred eighty
                (180)
                day period of delay in delivery the Seller may, if the Buyer has
                not
                served notice of rescission, propose a new delivery date and demand
                in
                writing that the Buyer shall make an election, in which case the
                Buyer
                shall, within fifteen (15) days after such proposal and demand is
                received
                by the Buyer, notify the Seller of its intention either to rescind
                this
                Contract or to consent to delivery of the Vessel at a future date
                to be
                mutually agreed failing which it will be deemed that it has elected
                that
                the delivery of the Vessel takes place on the proposed new delivery
                date;
                it being understood and agreed upon by the parties hereto that (i)
                if the
                Buyer does not elect to rescind the Contract it shall be without
                prejudice
                to its right to accrued liquidated damages; and (ii) if the Vessel
                is not
                delivered by such future date (agreed or proposed), the Buyer shall
                have
                the same right of rescission to take effect immediately after the
                said
                further date upon the same terms as hereinabove
                provided.

            

    

     

    
      	 	
              (d)

            	
              For
                the purpose of this Article, the delivery of the Vessel shall be
                deemed to
                be delayed when and if the Vessel, after taking into full account
                all
                postponements of the Expected Delivery Date by reason of permissible
                delays defined in Article VIII hereof and/or extension of the Expected
                Delivery Date by other reasons under this Contract, is not delivered
                by
                the Expected Delivery Date so postponed or
                extended.

            

    

     

    
      
        
        

      

        9

        
          

        

      

      
        
        

      

    
     

    
      	
              2.

            	
              Insufficient
                Speed:

            

    

     

    
      	 	
              (a)

            	
              The
                Contract Price shall not be affected or changed by reason of the
                trial
                speed, as determined in accordance with the Specifications, being
                less
                than the Guaranteed Speed, if such deficiency is not more than
                three-tenths (3/10) of a knot.

            

    

     

    
      	 	
              (b)

            	
              However,
                if such deficiency is-more than three-tenths (3/10) of a knot, then,
                the
                Contract Price shall be reduced by deducting therefrom the amount
                of Seven
                Million One Hundred Thousand Japanese Yen (JPY7,100,000) per one-tenth
                (1/10) of a knot or deficiency over the aforesaid grace of three-tenths
                (3/10) of a knot (fractions of one-tenth (1/10) of a knot to be prorated).
                However, the maximum reduction in the Contract Price shall in no
                event be
                more than the amount in the case of a deficiency of seven-tenths
                (7/10) of
                a knot below the Guaranteed Speed.

            

    

     

    
      	 	
              (c)

            	
              If
                deficiency in the trial speed of the Vessel (as so determined) is
                more
                than seven-tenths (7/10) of a knot below the Guaranteed Speed, then,
                the
                Buyer shall have the option either to accept the Vessel at a maximum
                reduction in the Contract Price as above provided or to reject the
                Vessel
                and to rescind this Contract in accordance with provisions of
                Article X hereof as alternative to receiving the aforesaid liquidated
                damages.

            

    

     

    
      	
              3.

            	
              Excessive
                Fuel Consumption:

            

    

     

    
      	 	
              (a)

            	
              The
                Contract Price shall not be affected or changed, by reason of the
                fuel
                consumption of the main engine, as determined in accordance with
                the
                Specifications, being more than the Guaranteed Fuel Consumption,
                if such
                excess is not more than three percent (3%) over the Guaranteed Fuel
                Consumption.

            

    

     

    
      	 	
              (b)

            	
              However,
                if such excess is more than three percent (3%), then, the Contract
                Price
                shall be reduced by deducting therefrom the amount of Seven Million
                One
                Hundred Thousand Japanese Yen (JPY7,100,000) for each one percent
                (1%)
                increase in fuel consumption above the aforesaid grace of three percent
                (3%) (fractions of one percent (1%) to be prorated). However, the
                maximum
                reduction in the Contract Price shall in no event be more than the
                amount
                in the case of an excess of eight percent (8%) over the aforesaid
                Guaranteed Fuel Consumption.

            

    

     

    
      	 	
              (c)

            	
              If
                the fuel consumption of the main engine exceeds the Guaranteed Fuel
                Consumption by more than eight percent (8%), then, the Buyer shall
                have
                the option either to accept the Vessel at a maximum reduction in
                the
                Contract Price as above provided or to reject the Vessel and to rescind
                this Contract in accordance with provisions of Article X hereof as
                alternative to receiving the aforesaid liquidated
                damages.

            

    

     

    
      	
              4.

            	
              Deficiency
                in Deadweight:

            

    

     

    
      	 	
              (a)

            	
              The
                Contract Price shall not be affected or changed by reason of the
                deadweight of the Vessel, as determined in accordance with the
                Specifications, being less

            

    

    
       

      
        
          
          

        

          10

          
            

          

        

        
          
          

        

      

       

      
        	 	
                 

              	
                than
                  the Guaranteed Deadweight, if such deficiency is not more than
                  800 metric
                  tons of the Guaranteed Deadweight.

              

      

       

    
    
      	 	
              (b)

            	
              However,
                if such deficiency is more than 800 metric tons, the Contract Price
                shall
                be reduced by deducting therefrom the amount of Fifty Five Thousand
                Two
                Hundred Japanese Yen (JPY55,200) for each full metric ton of such
                deficiency over the aforesaid grace of 800 metric tons (in this case
                disregarding fractions of one (1) metric
                ton).

            

    

     

    However,
      the maximum reduction in the Contract Price shall in no event be more than
      the
      amount in the case of a deficiency of 1,800 metric tons below the Guaranteed
      Deadweight.

     

    
      	 	
              (c)

            	
              In
                the event that such deficiency in the Vessel’s deadweight is more than
                1,800 metric tons the Buyer shall have the option either to accept
                the
                Vessel at a maximum reduction in the contract Price as above provided
                or
                to reject the Vessel and to rescind this Contract in accordance with
                provisions of Article X hereof as alternative to receiving the aforesaid
                liquidated damages.

            

    

     

    
      	
              5.

            	
              Duty
                to Mitigate :

            

    

     

    Notwithstanding
      the provisions of this Article Ill, the Seller and/or the Builder shall have
      a
      duty to investigate and if possible rectify the cause of an insufficiency in
      speed, deadweight or an excess in fuel consumption prior to the delivery of
      the
      Vessel to the Buyer. It is hereby understood and agreed by the seller and/or
      the
      Builder that the Seller will seek to deliver the Vessel by adjusting the
      Contract Price, if necessary, in accordance with the provisions of this Article
      III, only if after using their best endeavours such insufficiency or excess
      cannot be corrected.

     

    
      	
              6.

            	
              Expedited
                Delivery :

            

    

     

    
      	 	
              (a)

            	
              If
                the Buyer requests in writing that the delivery of the Vessel be
                made
                earlier than the Expected Delivery Date and if the Vessel is delivered,
                in
                response to such request of the Buyer, then, in such event, the Contract
                Price shall be increased by adding thereto the amount of One Million
                One
                Hundred Eighty Three Thousand Japanese Yen (JPY1,183,000) for each
                day
                that such earlier delivery is effected in advance of the Expected
                Delivery
                Date or from an earlier delivery date as declared in writing by the
                Seller
                to the Buyer if such earlier delivery date is already declared before
                being so requested by the Buyer; it being understood that acceptance
                by
                the Seller of the Buyer’s request for earlier delivery shall, in no way,
                be construed as change of the Expected Delivery
                Date.

            

    

     

    
      	 	
              (b)

            	
              Should
                the Builder deliver the Vessel earlier than the Expected Delivery
                Date
                without request by the Buyer, the Buyer shall accept such earlier
                delivery
                of the Vessel, always provided that the Seller or the Builder has
                given
                the Buyer three (3) months notice in writing or by fax or telex of
                the
                proposed earlier delivery date.

            

    

     

    (End
      of
      Article)

     

    
      
        
        

      

        11

        
          

        

      

      
        
        

      

    
     

    ARTICLE
      IV–
      MODIFICATIONS AND CHANGES

     

    
      	
              1.

            	
              Modifications
                to Specifications :

            

    

     

    
      	 	
              (a)

            	
              Upon
                the Buyer’s request in writing, the Specifications may be modified and /or
                changed provided that such modifications or changes or an accumulation
                of
                such modifications or changes will in the Builder’s reasonable judgment
                neither adversely affect the Builder’s design of the Vessel nor adversely
                affect the Builder’s construction schedule of the Vessel or program in
                relation to the Builder’s other binding commitments, provided always that
                the Buyer shall first agree, before such modifications or changes
                are
                carried out, to adjustments reasonably required by the Seller and/or
                the
                Builder to the Contract Price, the Expected Delivery Date, the Guaranteed
                Speed, the Guaranteed Fuel Consumption, the Guaranteed Deadweight
                and/or
                other terms and conditions of this Contract and the Specifications, if
                any, caused by such modifications or changes. Such modifications
                or
                changes and adjustment shall be confirmed by written agreement between
                the
                parties hereto, or by exchange of fax messages and thereafter effected
                by
                the Builder. The Builder will exert its best efforts to accommodate
                such
                request of the Buyer so that the said changes and modifications shall
                be
                made at the Builder’s lowest possible cost and within the shortest period
                of time as is reasonably possible.

            

    

     

    
      	 	
              (b)

            	
              Without
                impairing the intent of the Specifications, the Builder may make
                minor
                modifications or changes to the Specifications if found necessary
                for the
                introduction of improved design, construction methods or otherwise,
                provided that there shall be no change in the Contract Price as a
                result
                of such changes unless otherwise agreed upon between the parties
                hereto
                and that the Seller shall first obtain the Buyer’s approval in writing
                which shall not be unreasonably
                withheld.

            

    

     

    
      	
              2.

            	
              Changes
                in Class, etc.:

            

    

     

    
      	 	
              (a)

            	
              If,
                after the date of this Contract, any requirements as to class, to
                which
                the construction of the Vessel is required to conform, are altered
                or
                changed by the Classification Society, and the classification certificate
                cannot be obtained without conformity with such alterations or changes,
                then, any Party (including the Builder) who becomes aware of the
                change
                shall forthwith transmit such information in full to the other in
                writing
                and then the Builder shall promptly incorporate such alterations
                or
                changes into the construction of the Vessel, provided that the Buyer
                shall
                first agree to adjustments reasonably required by the Seller and/or
                the
                Builder in the Contract Price, the Expected Delivery Date, the Guaranteed
                Speed, the Guaranteed Fuel Consumption, the Guaranteed Deadweight
                and
                other terms and conditions of this Contract and the Specifications,
                if
                any, caused by the application of such alterations or
                changes.

            

    

     

    Such
      alterations or changes and adjustments shall be confirmed by written agreement
      between the parties hereto, or by exchange of faxes.

     

    Notwithstanding
      the foregoing provisions, the Buyer may, at its sole discretion first apply
      to
      the Classification Society for a formal waiver of compliance with

     

    
      
        
        

      

        12

        
          

        

      

      
        
        

      

    
     

    such
      alterations or changes provided however that the Buyer shall take into account
      the Builder’s request that the Buyer applies for a waiver.

     

    
      	 	
              (b)

            	
              If,
                after the date of this Contract, any requirements under the rules
                and
                regulations other than those of the Classification Society, to which
                the
                construction of the Vessel is required in the Specifications to conform,
                are altered or changed by the regulatory bodies authorized to make
                such
                alterations or changes, and the certificates of such regulatory bodies
                cannot be obtained without conformity with such alterations or changes,
                then any Party (including the Builder) who becomes aware of the change
                shall forthwith transmit such information in full to the other in
                writing
                and then the Builder shall promptly incorporate such alterations
                or
                changes into the construction of the Vessel, provided that the Buyer
                shall
                first agree to the adjustment reasonably required by the Seller and/or
                the
                Builder in the Contract Price, the Expected Delivery Date, the Guaranteed
                Speed, the Guaranteed Fuel Consumption, the Guaranteed Deadweight
                and
                other terms and conditions of this Contract and the Specifications
                if any,
                caused by the application of such alterations or
                changes.

            

    

     

    Such
      alterations or changes and adjustments shall be confirmed by written agreement
      between the parties hereto, or by exchange of faxes.

     

    Notwithstanding
      the foregoing provisions, the Buyer may, at its sole discretion first apply
      to
      such regulatory body or bodies for a formal waiver of compliance with such
      alterations or changes provided however that the Buyer shall take into account
      the Builder’s request that the Buyer applies for a waiver.

     

    
      	 	
              (c)

            	
              If,
                after the date of this Contract, any requirements as to class, or
                under
                the other rules and regulations which are irrelevant to or unnecessary
                in
                obtaining the classification certificates or the certificates of
                such
                other regulatory bodies are altered or changed by the Classification
                Society or such other regulatory bodies, and the Buyer desires to
                incorporate such alterations or changes into the construction of
                the
                Vessel, then, the Buyer shall give a written notice of such intention
                to
                the Seller and the Builder. The Builder will in the Builder’s reasonable
                judgement accept such alterations or changes, if those alterations
                or
                changes will neither adversely affect the Builder’s design of the Vessel
                nor adversely affect the Builder’s construction schedule of the Vessel
                and/or program in relation to the Builder’s other binding commitments,
                provided always that the Buyer shall first agree to adjustments reasonably
                required by the Seller and/or the Builder in the Contract Price,
                the
                Expected Delivery Date, the Guaranteed Speed, the Guaranteed Fuel
                Consumption, the Guaranteed Deadweight and other terms and conditions
                of
                this Contract and the Specifications, if any, caused by application
                of
                such alterations or changes.

            

    

     

    Such
      alterations or changes and adjustments shall be confirmed by written agreement
      between the parties hereto, or by exchange of letters or cables confirmed in
      writing.

     

    
      	
              3.

            	
              Substitution
                of Materials :

            

    

     

    In
      the
      event that any of the materials, or machinery or equipment required by the
      Specifications or otherwise under this Contract for the construction of the
      Vessel cannot

     

    
      
        
        

      

        13

        
          

        

      

      
        
        

      

    
     

    be
      procured to meet the Builder’s construction schedule of the Vessel, or are in
      short supply, the Builder may supply other materials or machinery or equipment
      of equivalent quality, capable of meeting the requirements of the Classification
      Society and of the other rules, regulations and requirements with which the
      construction of the Vessel must comply, provided that the Seller and/or the
      Builder shall first give the Buyer a notice to that effect, and shall first
      obtain the Buyer’s approval which shall not be unreasonably withheld and that
      there shall be no alteration to the Contract Price, Expected Delivery Date,
      the
      Guaranteed Speed, the Guaranteed Fuel Consumption or the Guaranteed Deadweight
      of the Vessel.

     

    (End
      of
      Article)

     

    
      
        
        

      

        14

        
          

        

      

      
        
        

      

    
     

    ARTICLE
      V–
      APPROVAL OF DRAWINGS AND INSPECTION

     

    
      	
              1.

            	
              Appointment
                of Buyer’s Representative :

            

    

     

    The
      Buyer
      may send to and maintain at the Shipyard, at the Buyer’s own cost and expense,
      one (1) representative who shall be duly authorized in writing by the Buyer
      (hereinafter called the “Representative”) and an assistant or assistants (any
      experts appointed by the Representative are to be considered as the
      Representative’s assistants) to the Representative at the Buyer’s own cost and
      expense to act on behalf of the Buyer in connection with inspections, tests
      and
      trials, or any of them at the Buyer’s sole discretion and any other matters in
      respect of which he is specifically authorized by the Buyer in
      writing.

     

    
      	
              2.

            	
              Approval
                of Drawings :

            

    

     

    
      	 	
              (a)

            	
              The
                Builder shall submit to the Head Office of the Buyer at its address
                as set
                out in Article XVIII for its approval three (3) copies each of the
                drawings listed in the Specifications in hard copy. The Buyer shall,
                as
                soon as possible but within twenty one (21) days after dispatch thereof
                by
                the Builder at the latest, return to the Builder one (1) copy of
                such
                drawings with its approval or comments written thereon. Any alteration
                to
                the specifications resulting from such comments shall be dealt with
                in
                accordance with Article IV hereof. A list of the Plans and Drawings
                to be
                so submitted to the Buyer and the order of submission thereof shall
                be
                mutually agreed upon between the Builder and the
                Buyer.

            

    

     

    
      	 	
              (b)

            	
              In
                the event that the Buyer shall fail to return the drawings to the
                Builder
                within the time limit hereinabove provided, the said drawings shall
                be
                deemed to have been approved without any
                comments.

            

    

     

    
      	
              3.

            	
              Inspection
                by Buyer :

            

    

     

    The
      construction of the Vessel, its machinery, equipment and outfitting shall be
      subjected, throughout the entire period of construction, to a planned system
      of
      quality control inspections administered and recorded by a quality control
      department of the Shipyard in accordance with the Inspection Standards to ensure
      that the Vessel complies with the Specification and the Contract. The necessary
      tests and inspections of the Vessel, the machinery, equipment and outfitting
      by
      the Classification Society and other regulatory bodies concerned shall also
      be
      carried out and recorded. The Representative may attend any or all of the said
      inspections at the Buyer’s cost and expense, during construction of the Vessel;
      and/or testing and inspection of the Vessel, its machinery and equipment in
      accordance with the Inspection Standards.

     

    The
      Builder shall give to the Representative at lease twenty-four (24) hours advance
      notice stating particulars of any tests or inspections to be carried out and
      the
      date and place at which they are to be carried out, provided that in exceptional
      circumstances the manner in which such notice is given may be modified by mutual
      agreement. The Builder shall try to ensure that there is no overlapping between
      any such tests and inspections.

     

    Failure
      of the Representative to be present at the tests and inspections after due
      notice to him or to one of his assistants in case of his absence shall be deemed
      to be a waiver of his right to be present.

     

    
      
        
        

      

        15

        
          

        

      

      
        
        

      

    
     

    During
      working hours in the course of construction of the Vessel until delivery
      thereof, the Buyer may carry out its own inspections and the Representative
      and
      his assistant(s) shall be given free and ready access to the Vessel, its
      machinery and equipment, and to any other place where work is being done, or
      materials are being processed or stored, in connection with construction of
      the
      Vessel, including the yards, workshops, stores and offices of the Builder,
      and
      the premises of subcontractors of the Builder, who are doing work or processing
      or storing materials in connection with construction of the Vessel, save and
      except areas which are controlled for purposes of national security or
      otherwise, provided that the Representative or his assistant(s) shall not
      disturb or obstruct the Builder or its subcontractors in construction of the
      Vessel.

     

    In
      the
      event that the Representative discovers any material or workmanship which does
      not conform to the requirements of this Contract and the Specifications, the
      Representative shall promptly give the Seller and/or the Builder a notice in
      writing as to such non-conformity, upon receipt of which the Builder shall
      correct such non-conformity or if the Builder does not agree it shall respond
      in
      writing within seven (7) days of receipt of the notice stating the reasons
      why
      it does not agree.

     

    In
      the
      event that a difference of opinion between the parties hereto arises during
      construction of the Vessel or prior to delivery of the Vessel concerning
      technical matters in respect of the construction of the Vessel, its machinery
      and equipment, or in respect of the materials or workmanship thereof, or in
      respect of interpretations of the Specifications and/or the Inspection
      Standards, such difference of opinion may be referred to the Classification
      Society for disputes in respect of whether the Vessel complies with the
      classification rules and regulations or to a mutually agreed expert for any
      other issued and the opinion of the Classification Society or expert whichever
      may apply thereon shall be final and binding upon the parties
      hereto.

     

    In
      case
      agreement is not reached between the parties for a reference to the
      Classification Society or a mutually agreed expert or a reference is made but
      no
      opinion can be obtained as to the dispute then either of the parties hereto
      may
      commence an arbitration in accordance with the provisions of Article XIII
      hereof.

     

    
      	
              4.

            	
              Facilities
                :

            

    

     

    The
      Builder shall provide the Representative and his assistant(s) (up to a total
      of
      five (5) persons at a time) with adequate office space and necessary facilities,
      dedicated telephone services, fax lines, fixed and portable computer outlets,
      and normal office furnishings at, or in the immediate vicinity of the
      Shipyard.

     

    Long
      distance telephone, postage, cable charges and other miscellaneous expenses
      incurred by the Representative and/or his assistant(s) shall be for the Buyer’s
      account but otherwise the said office facilities shall be provided free of
      charge to the Buyer. The Builder and/or the Seller shall render all reasonable
      assistance to the Representative and his assistants in obtaining visas for
      Japan
      and assisting them to familiarise themselves with the Shipyard and the
      Vessel.

     

    
      	
              5.

            	
              Liability
                of Seller and/or Builder: 

            

    

     

    The
      Representative and his assistant(s) shall at all times be deemed to be the
      Buyer’s employees. The Seller and the Builder shall be under no liability
      whatsoever to the

     

    
      
        
        

      

        16

        
          

        

      

      
        
        

      

    
     

    Buyer,
      the Representative or his assistant(s), for their personal injuries, including
      death, during the time when he, or any of them, is on the Vessel, or within
      the
      premises of either the Builder or its subcontractors, or are otherwise engaged
      in and about the construction of the Vessel, unless, however, such personal
      injuries, including death, were caused by negligence of the Seller and/or the
      Builder, or of any of the Seller’s and/or the Builder’s employees or agents or
      subcontractors. Nor shall the Seller and the Builder be under any liability
      whatsoever to the Buyer, the Representative or his assistant(s) for damage
      to,
      or loss or destruction of property of the Buyer, the Representative, his
      assistant(s), or of the Buyer’s employees or agents, unless such damage, loss or
      destruction was caused by negligence of the Seller and/or the Builder, or of
      any
      of the employees or agents or subcontractors of the Seller and/or the
      Builder.

     

    
      	
              6.

            	
              Responsibility
                of Buyer :

            

    

     

    
      	 	
              (a)

            	
              The
                Buyer undertakes and assures that the Representative shall attend
                tests
                and inspections in the manner provided in the Inspection Standards
                and
                also in such a way as will neither increase building costs nor cause
                delay
                or disturbance in the construction and delivery of the
                Vessel.

            

    

     

    
      	 	
              (b)

            	
              In
                the event that the Seller and/or the Builder considers any act or
                acts of
                the Representative to be an abuse of his or the Buyer’s rights under the
                terms of this Contract, the Seller and/or the Builder may request
                the
                Buyer to replace such Representative by written notice, whereupon
                the
                Buyer shall investigate the matter and if such Seller’s and/or Builder’s
                request is found justified, the Buyer shall effect such
                replacement.

            

    

     

    
      	 	
              (c)

            	
              The
                Buyer may not entrust the approval of plans and drawings or attendance
                to
                the inspections, tests and trials to any firm(s) or person(s) outside
                its
                organization unless prior written consent of the Seller and/or the
                Builder
                are given.

            

    

     

    (End
      of
      Article)

     

    
      
        
        

      

        17

        
          

        

      

      
        
        

      

    

    ARTICLE
      VI–
      SEA TRIAL

     

    
      	
              1.

            	
              Notice
                :

            

    

     

    The
      Buyer
      shall receive from the Seller and/or the Builder at least twenty-one (21) days
      prior notice by cable confirmed in writing of the time and place of the sea
      trial of the Vessel and the Buyer shall promptly acknowledge receipt of such
      notice.

     

    The
      Buyer
      shall have the right to have the Representative and/or his assistant(s)
      appointed by the Buyer on board the Vessel to witness the sea trial, and to
      ascertain that the Vessel meets the requirements of this Contract and the
      Specifications. Failure of the Representative and/or his assistant(s) to attend
      the sea trial of the Vessel after due notice to the Buyer as provided above
      shall be deemed to be a waiver by the Buyer of its right to have the
      Representative on board the vessel at the sea trial, and the Builder shall
      conduct the sea trial without the Representative being present, and in such
      case
      the Buyer shall be obligated to accept the Vessel on the basis of (i) the Sea
      Trial Report as defined in paragraph 4 of this Article; and (ii) a certificate
      of the Builder that the Vessel, upon sea trial (and subject to completion of
      alterations and corrections, if necessary, required following such sea trial)
      has been found to conform to this Contract and the Specifications. The sea
      trial
      shall be carried out with the attendance of surveyors from the Classification
      Society who must also issue a certificate that all Class requirements have
      been
      complied with.

     

    
      	
              2.

            	
              Weather
                Condition :

            

    

     

    The
      sea
      trial shall be carried out under such weather condition as the Builder in his
      reasonable judgment has deemed favourable. In the event of unfavourable weather
      on the date specified for the sea trial, the same shall take place on the first
      available day thereafter that the weather permits. It is agreed that if during
      the sea trial of the Vessel the weather should suddenly become unfavourable
      to
      continue the sea trial, the sea trial shall be discontinued and postponed until
      the first favourable day next following, unless the Buyer shall assent in
      writing to its acceptance of the Vessel on the basis of the sea trial made
      before such discontinuance has occurred.

     

    Any
      delay
      of the sea trial caused by such unfavourable weather condition shall operate
      to
      postpone the Expected Delivery Date by the period of delay involved and such
      delay shall be deemed to be a permissible delay in delivery of the
      Vessel.

     

    
      	
              3.

            	
              How
                Conducted :

            

    

     

    
      	 	
              (a)

            	
              All
                expenses in connection with the sea trial of the Vessel shall be
                for the
                account of the Builder who during the sea trial shall provide necessary
                crew for safe navigation. The sea trial shall be conducted by the
                Builder
                in Japanese waters in the manner prescribed in the
                Specifications.

            

    

     

    
      	 	
              (b)

            	
              Notwithstanding
                the foregoing, fuel oil, lubricating oils and greases necessary for
                the
                sea trial of the Vessel shall be supplied by the Buyer at the Shipyard
                at
                the time designated by the Builder prior to the sea trial, and the
                Seller
                shall pay to the Buyer the cost of the quantities thereof consumed
                during
                the sea trial at the original purchase price. In measuring the consumed
                quantity, lubricating oils and greases remaining in the main engine,
                other
                machinery, their sumps and pipes,

            

    

     

    
      
        
        

      

        18

        
          

        

      

      
        
        

      

    
    
       

      
        	 	
                 

              	
                stern
                  tube and the like, shall be excluded. Payment therefore shall be
                  effected
                  as provided in Paragraph 2 of Article II hereof. The specifications
                  of
                  fuel oil, lubricating oils and greases shall be in accordance with
                  the
                  Specifications and also the instruction of the
                  Builder.

              

      

       

    

    
      	
              4.

            	
              Method
                of Acceptance or Rejection

            

    

     

    
      	 	
              (a)

            	
              Upon
                completion of the sea trial, the Builder shall give the Buyer’s
                Representative a sea trial report containing the results of all tests
                performed during such trial as per the Specification (“the Sea Trial
                Reports”). Thereafter the Buyer shall, within three (3) days after receipt
                of such report from the Builder, notify the Seller and the Builder
                by
                cable confirmed in writing of its acceptance or rejection of the
                Vessel.

            

    

     

    
      	 	
              (b)

            	
              If
                the Buyer rejects the Vessel, the Buyer shall indicate in its notice
                in
                what respect the Vessel or any part thereof does not conform to this
                Contract and/or the Specifications. If the Seller and the Builder
                are in
                agreement with the Buyer’s contention as to such non-conformity, the
                Builder shall make such alterations or corrections as may be necessary
                to
                rectify such non-conformity and shall arrange a further sea trial
                or test
                whichever is appropriate to demonstrate that the Vessel conforms
                to the
                Specifications to be attended by the Buyer’s Representative and/or his
                assistants and/or Class Representative. Following the Sea Trial or
                test
                the Builder shall deliver to the Buyer an amended Sea Trial Report
                or a
                report of the test results whichever is applicable. The Buyer shall,
                within three (3) Business Days after receipt of such amended Sea
                Trial
                Report notify the Seller of its acceptance or rejection of the Vessel.
                If
                the Buyer rejects the Vessel, the Buyer shall indicate in its notice
                in
                what respect the Vessel or any part thereof does not conform to this
                Contract and/or the Specifications. The Buyer shall accept the Vessel
                after repair of the Vessel and successful testing or sea trial as
                above.

            

    

     

    
      	 	
              (c)

            	
              If
                the Buyer fails to notify the Seller or the Builder in writing of
                its
                acceptance or rejection of the Vessel together with the reasons therefore
                within the period as provided in the above Sub-paragraph (a), the
                Buyer shall be deemed to have accepted the
                Vessel.

            

    

     

    
      	 	
              (d)

            	
              Any
                dispute arising between the parties hereto as the Vessel’s conformity or
                non-conformity to requirements of this Contract and/or the Specifications
                shall be resolved in accordance with the provisions of Article XIII
                hereof.

            

    

     

    
      	
              5.

            	
              Effect
                of Acceptance

            

    

     

    The
      Buyer’s notification of acceptance of the Vessel as set forth above shall be
      final and binding so far as conformity of the Vessel with this Contract and
      the
      Specifications is concerned shall preclude the Buyer from refusing the formal
      delivery of the Vessel, as hereinafter provided, if the Builder completes the
      construction and final fitting out of the Vessel as per the Contract and
      Specification and the Seller and the Builder comply with the delivery
      formalities as provided in Paragraphs 2 and 3 of Article VII hereof. However,
      the Buyer’s acceptance of the Vessel shall not affect the Buyer’s rights under
      this Contract and in particular the Buyer’s rights under Article IX
      hereof.

     

    
      
        
        

      

        19

        
          

        

      

      
        
        

      

    
     

    
      	
              6.

            	
              Disposition
                of Remaining Consumable Stores :

            

    

     

    Should
      fresh water or other consumable stores furnished by the Builder for the sea
      trial remain on board the Vessel at the time of acceptance thereof by the Buyer,
      the Buyer shall purchase the same from the Builder at the original purchase
      price thereof. Payment therefor by the Buyer shall be effected upon delivery
      of
      the Vessel as provided in Paragraph 2, Article II hereof.

     

    (End
      of
      Article)

     

    
      
        
        

      

        20

        
          

        

      

      
        
        

      

    
     

    ARTICLE
      VII–
      DELIVERY

     

    
      	
              1.

            	
              Time
                and Place :

            

    

     

    The
      Vessel shall be delivered by the Seller to the Buyer at the Shipyard on or
      before 15th March, 2009 (15th March, 2009 being hereinafter called the
“Expected Delivery Date”), subject to postponement and/or extension thereof as
      provided in this Contract.

     

    
      	
              2.

            	
              When
                and How Effected :

            

    

     

    Provided
      that the Buyer shall have effected all payments hereunder due on and before
      delivery of the Vessel and both parties hereto have fulfilled all of their
      obligations under this Contract, (including delivery to the Buyer of the
      documents specified in paragraph 3 of his Article) delivery of the Vessel shall
      be effected forthwith by the concurrent delivery by each of the parties hereto
      to the other of the Protocol of Delivery and Acceptance, acknowledging delivery
      of the Vessel by the Seller and acceptance thereof by the Buyer.

     

    
      	
              3.

            	
              Documents
                to be Delivered to Buyer :

            

    

     

    
      	 	
              (i)

            	
              The
                Builder shall deliver to the Buyer at least twenty-one (21) days
                prior to
                the proposed delivery date of the Vessel the duly notarized and apostilled
                Builder’s Certificate.

            

    

     

    
      	 	
              (ii)

            	
              Upon
                delivery and acceptance of the Vessel, the Seller shall deliver to
                the
                Buyer the following documents, which shall accompany the aforementioned
                Protocol of Delivery and
                Acceptance.

            

    

     

    
      	 	
              (a)

            	
              Protocol
                of Trials of the Vessel made in accordance with the Sea Trial Report
                pursuant to the Specifications.

            

    

     

    
      	 	
              (b)

            	
              Protocol
                of Inventory of the equipment of the Vessel, including spare parts
                and the
                like, all as specified in the
                Specifications.

            

    

     

    
      	 	
              (c)

            	
              Protocol
                of Stores of Consumable Nature made pursuant to Article VI
                hereof.

            

    

     

    
      	 	
              (d)

            	
              Drawings
                and Plans pertaining to the Vessel as stipulated in the
                Specifications.

            

    

     

    
      	 	
              (e)

            	
              All
                Certificates other than the Builder’s Certificate to be furnished pursuant
                to this Contract and the
                Specifications.

            

    

     

    It
      is
      agreed that if, through no fault on the part of the Seller and the Builder,
      the
      classification certificate and/or other certificates are not available at the
      time of delivery of the Vessel, provisional certificates shall be accepted
      by
      the Buyer, provided that the Builder shall furnish the Buyer with the formal
      certificates as promptly as possible after such formal certificates have been
      issued.

     

    
      	 	
              (f)

            	
              Declaration
                of Warranty of the Seller and/or the Builder that the Vessel is delivered
                to the Buyer free and clear of any liens, charges, claims, mortgages,
                or
                other encumbrances upon the Buyer’s title thereto, and in particular, that
                the Vessel is absolutely free of all burdens in the nature of imposts,
                taxes or charges imposed by any authority of the prefecture or country
                of
                the port of delivery, as

            

    

     

    
      
        
        

      

        21

        
          

        

      

      
        
        

      

    
     

    
      
        	 	
                 

              	
                well
                  as of all liabilities of the Builder to its subcontractors, employees
                  and
                  crew, and of all liabilities arising out of the operation of the
                  Vessel in
                  the sea trial, or otherwise, prior to delivery and acceptance
                  thereof.

              

      

       

    

    
      	 	
              (g)

            	
              Commercial
                Invoice

            

    

     

    
      	 	
              (h)

            	
              Bill
                of Sale duly notarized and apostilled in the form required by the
                laws of
                the country under the flag of which the Vessel is to be
                registered.

            

    

     

    
      	 	
              (i)

            	
              A
                certificate confirming that no registration of the Vessel has been
                effected by the Builder or the Seller prior to delivery and acceptance
                of
                the Vessel by the Buyer.

            

    

     

    
      	 	
              (j)

            	
              Certificate
                certifying the lightship weight of the
                Vessel.

            

    

     

    
      	
              4.

            	
              Title
                and Risk

            

    

     

    Title
      to
      and risk of loss of the Vessel shall pass to the Buyer upon delivery and
      acceptance thereof as stated above. Prior to such delivery and acceptance title
      to and risk of loss of the Vessel and her equipment shall be vested in the
      Builder. Notwithstanding this Article title to the Buyer’s supplies shall always
      vest with the Buyer.

     

    
      	
              5.

            	
              Removal
                of Vessel :

            

    

     

    The
      Buyer
      shall take possession of the Vessel immediately upon delivery and acceptance
      thereof, and shall remove the vessel from the premises of the Shipyard within
      three (3) days after delivery and acceptance thereof is effected. If the Buyer
      shall not remove the Vessel from the premises of the Shipyard within the
      aforesaid three (3) days, then, in such event, the Buyer shall thereafter pay
      to
      the Seller or the Builder the reasonable expenses occasioned as a result of
      such
      delay over the aforesaid three (3) days. The Builder shall provide to the Buyer
      free of charge any tug, linesman and/or dock master assistance required for
      the
      Vessel to leave the Shipyard.

     

    (End
      of
      Article)

     

    
      
        
        

      

        22

        
          

        

      

      
        
        

      

    
     

    ARTICLE
      VIII–
      DELAY AND EXTENSION OF TIME FOR DELIVERY

     

    (FORCE
      MAJEURE)

     

    
      	
              1.

            	
              Clauses
                of Delay :

            

    

     

    If,
      at
      any time before actual delivery of the Vessel either the construction of the
      Vessel or any performance required as a prerequisite of delivery of the Vessel
      is delayed due to Acts of God; engagement in war or other hostilities or
      preparations therefore; civil war; civil commotions; revolutions; riots or
      insurrections; requirements of civil or governmental authorities; blockades;
      embargoes; vandalism; sabotage; plague or other epidemics, quarantines strikes;
      lockouts or other labour disturbances (in respect of which a maximum of 45
      days
      shall qualify as a force majeure event pursuant to this clause); acute labour
      shortage; earthquakes; tidal waves; landslides; floods; typhoons; storms or
      other weather condition not included in normal planning; prolonged failure,
      shortage or restrictions in supply of electric current, oil or gas; damages
      by
      lightning; explosions; collisions or strandings; fires; import restrictions;
      shortage of substitute materials, machinery or equipment or inability to obtain
      delivery thereof provided that such materials, machinery and equipment at the
      time of ordering could reasonably be expected by the Builder to be delivered
      in
      time; defects in materials, machinery and equipment which could not have been
      detected by the Builder using reasonable care; casting, forging or machining
      rejects or the like; delays caused by the Classification Society or other bodies
      whose documents are required; delays in the Builder’s other commitments
      resulting from any causes herein described which in turn delay the construction
      of the Vessel or the Builder’s performance under this Contract provided that all
      the foregoing events could not have been reasonably foreseen and avoided by
      the
      Seller or Builder; any cause of delay whatsoever whether or not of a kind
      previously specified in this Article or of a different kind reasonably to be
      considered beyond the control of the Builder always provided that these events
      occur before the Expected Delivery Date then and in any such case, the Expected
      Delivery Date shall be postponed for a period of time which shall not exceed
      the
      total accumulated time of all such delays provided always that no postponement
      shall be granted under this contract if the event causing such a delay has
      resulted from any negligence of the Builder or Seller.

     

    
      	
              2.

            	
              Notice:

            

    

     

    Within
      fifteen (15) days after the date of commencement of any events as described
      in
      the preceding Paragraph 1 of this Article on account of which the Seller and/or
      the Builder claim that it is entitled under this Contract to a postponement
      of
      the Expected Delivery Date, the Seller and/or the Builder shall advise the
      Buyer
      in writing of the date such events commenced, the nature of the cause, the
      expected duration of the delay and the steps taken to mitigate the same
      (provided such expected duration or mitigation steps can be ascertained at
      the
      time such notice is given)

     

    Likewise,
      within fifteen (15) days after such events have ceased to exist, the Seller
      shall notify the Buyer in writing or by telex or fax of the date on which such
      events ceased to exist and shall specify in such notice the period of time
      by
      which the Expected Delivery Date shall be postponed by reason of such events.
      Failure of the Seller to make any of the above said notifications in time shall
      be deemed to be a waiver of the Seller’s and the Builder’s right to claim
      postponement of the Expected Delivery Date in respect of such delay. Failure
      of
      the Buyer to object to the Seller’s and/or the Builder’s claim for

     

    
      
        
        

      

        23

        
          

        

      

      
        
        

      

    
     

    postponement
      of the Expected Delivery Date, within fifteen (15) days after receipt by the
      Buyer of such notice from the Seller and/or the Builder, shall be deemed to
      be a
      waiver by the Buyer of its right to object to such postponement of the Expected
      Delivery Date.

     

    
      	
              3.

            	
              Right
                to Rescind for Excessive Permissible
                Delay:

            

    

     

    If
      the
      total accumulated time for all permissible delays pursuant to paragraph 5
      excluding (i) delays due to arbitration as provided in Article XIII, (ii) delays
      due to negligence, failure or omission on the part of the Buyer including delays
      on account of the Buyer’s Supplies defined in Article XVII hereof and (iii)
      adjustment of the Expected Delivery Date due to modifications or changes of
      the
      Specifications made pursuant to Article IV hereof, amount to one hundred and
      twenty (120) days or more, then, in such event, the Buyer may at its sole option
      rescind this Contract in accordance with the provisions of Article X hereof.
      The
      Seller and the Builder may, at any time after the accumulated time of the
      aforementioned delays justifying rescission by the Buyer as above provided,
      propose a new delivery date and demand in writing that the Buyer shall make
      an
      election, in which case the Buyer shall, within thirty (30) days after such
      demand is received by the Buyer, either notify the Seller of rescission of
      this
      Contract or consent to delivery of the Vessel on an agreed specific future
      date
      provided that if it consents to a postponement it shall maintain its right
      to
      receive any liquidated damages payable under Article III hereof as adjustment
      of
      the Contract Price; it being understood and agreed by the parties hereto that,
      if any further delay occurs on account of causes justifying rescission as
      specified in this Article, the Buyer shall have the right of rescinding this
      Contract forthwith.

     

    
      	
              4.

            	
              Right
                to Rescind for Excessive Delay:

            

    

     

    If
      the
      total accumulated time of all delays whether permissible pursuant to
      paragraph 5 or non permissible, excluding (i) delays due to
      arbitration as provided in Article XIII, (ii) delays due to
      negligence, failure or omission on the part of the Buyer including delays on
      account of the Buyer’s Supplies defined in Article XVII hereof and
      (iii) adjustment of the Expected Delivery Date due to modifications or
      changes of the Specifications made pursuant to Article IV hereof, amount to
      two hundred and seventy (270) days or more, then, in such event, the Buyer
      may
      at its sole option rescind this Contract in accordance with the provisions
      of
      Article X hereof. The Seller and the Builder may, at any time after the
      accumulated time of the aforementioned delays justifying rescission by the
      Buyer
      as above provided, propose a new delivery date and demand in writing that the
      Buyer shall make an election, in which case the Buyer shall, within thirty
      (30)
      days after such demand is received by the Buyer, either notify the Seller of
      rescission of this contract or consent to delivery of the Vessel on an agreed
      specific future date provided that if it consents to a postponement it shall
      maintain its right to receive any liquidated damages payable under
      Article III hereof as adjustment of the Contract Price; it being understood
      and agreed by the parties hereto that, if any further delay occurs on account
      of
      causes justifying rescission as specified in this Article, the Buyer shall
      have
      the right of rescinding this Contract forthwith.

     

    
      	
              5.

            	
              Definition
                of Permissible Delay:

            

    

     

    Delays
      on
      account of the causes as specified in Paragraph 1 of this Article shall be
      understood to be permissible delays and are to be distinguished from
      unauthorized delays on account of which the Contract Price is subject to
      adjustment as provided in Article III hereof.

     

    
      
        
        

      

        24

        
          

        

      

      
        
        

      

    
     

    (End
      of
      Article)

    

    
      
        
        

      

        25

        
          

        

      

      
        
        

      

    
     

    ARTICLE
      IX –
      WARRANTY

     

    
      	
              1.

            	
              Warranty
                and Warranty Period :

            

    

     

    For
      the
      period of twelve (12) months after the date of delivery of the Vessel to the
      Buyer (hereinafter called the “Warranty Period”), the Seller and the Builder to
      warrant the Vessel, its engines and accessories and all parts and equipment
      thereof which are manufactured or supplied by the Builder or its subcontractors
      under this Contract, but excluding the Buyer’s Supplies against defects which
      are due to defective workmanship, defective material or defective construction
      which defects are discovered within the Warranty Period shall have existed
      at
      the time of delivery of the Vessel to the Buyer (the said warranty, subject
      to
      all the terms and conditions of this Article, being hereinafter called the
      “Warranty”)

     

    The
      Builder and the Seller further guarantee the repairs or replacements to the
      Vessel which are made under this guarantee for a further period of twelve (12)
      months from the date of completion of such repair or replacement, provided
      however, that the Builder’s and/or the Seller’s liability hereunder shall
      terminate eighteen (18) months after the date of delivery and acceptance of
      the
      Vessel.

     

    
      	
              2.

            	
              Notice
                of Defects :

            

    

     

    The
      Buyer
      shall notify the Seller and the Builder in writing, or by cable thereafter
      confirmed in writing, as promptly as possible after discovery of any condition
      as to which a claim of defect is made under the Warranty.

     

    Such
      notice shall include full particulars as to the nature of the claimed defect.
      The Seller and the Builder shall have no obligation under the Warranty with
      respect to defects discovered after the expiration of the Warranty Period;
      nor
      shall the Seller and the Builder have any obligation under the Warranty with
      respect to defects discovered prior to the expiration of the Warranty Period,
      unless notice of such defect is received by the Seller and the Builder as
      provided herein not later than thirty (30) days after the expiration of the
      Warranty Period or in relation to repairs or replacements to the Vessel made
      under this Warranty unless notice is received under the eighteen (18) month
      period set out in paragraph 1 hereof.

     

    
      	
              3.

            	
              Extent
                of Seller’s and Builder’s Liability
                :

            

    

     

    
      	 	
              (a)

            	
              The
                Seller and the Builder shall in no event be liable for any special
                or
                consequential losses, expenses or damages including but not limited
                to
                loss of time, loss of profit or loss of earning (whether of the Vessel,
                its master, officers or crew, or of the Buyer, its officers, agents
                or
                employees) or demurrage or towing or pilot charges or dockage incurred
                by
                the Buyer by reason of any defects specified in Paragraph 1 of this
                Article.

            

    

     

    
      	 	
              (b)

            	
              The
                Seller and the Builder shall in no event be liable for any damage
                to the
                Vessel, or any part of equipment thereof, caused or aggravated by
                perils
                of the sea, inland waters or navigation, or by normal wear and tear
                or
                depreciation, or by fire or other accident on board or ashore, or
                by
                improper maintenance, negligence or willful conduct on the part of
                the
                Buyer, its employees or agents, or

            

    

     

    
      
        
        

      

        26

        
          

        

      

      
        
        

      

    
     

    any
      other
      persons other than the Seller and the Builder, its employees or subcontractors
      engaged in work upon the Vessel.

     

    
      	 	
              (c)

            	
              The
                Seller and the Builder shall in no event be liable for any defect
                in or
                damage to the Vessel, or any part or equipment thereof, caused or
                aggravated by repairs, alterations, additions or renewals other than
                those
                made by the Builder. Promptly after making of any repairs to the
                Vessel
                during the Warranty Period by any party other than the Seller and
                the
                Builder, the Buyer shall give the Seller and the Builder prompt written
                notice containing particulars as to the nature of such repairs,
                accompanied by the report of an independent surveyor or a classification
                surveyor.

            

    

     

    
      	
              4.

            	
              Remedy
                of Defects Covered by Warranty

            

    

     

    
      	 	
              (a)

            	
              The
                Seller or the Builder shall, at its expense, remedy any defects covered
                by
                the Warranty by repairing or replacing the defective part or parts
                at the
                Shipyard, or at any other repair facility of the Builder in Japan,
                at the
                Builder’s option.

            

    

     

    
      	 	
              (b)

            	
              If
                it is impracticable to bring the Vessel to Japan for remedy of defects
                under the Warranty, the Buyer may cause necessary repairs or replacements
                to be made elsewhere suitable for the purpose, provided, however,
                that the
                Builder may furnish, or cause to be furnished, replacement parts
                or
                materials at its own expense, if to do so would not unduly affect
                the
                operation of the Vessel. Prior to making of any such repairs other than by
                the Seller and the Builder, the Buyer shall give notice in writing
                of the
                nature of the proposed repairs and the scheduled time and place thereof
                (except in an emergency, but in such event notice shall be given
                as soon
                as possible thereafter), and, if practicable, the Seller and/or the
                Builder shall be given opportunity to verify the Buyer’s claim of defect
                under the Warranty by sending a representative at its own expense.
                If the
                Seller and/or Builder fail to send a representative having been given
                notice of the scheduled time and place of the repairs they will be
                deemed
                to have accepted them.

            

    

     

    
      	 	
              (c)

            	
              With
                respect to any defect covered by the Warranty which is remedied elsewhere
                than at the Shipyard or in other facility of the Builder in Japan,
                the
                Seller or Builder shall pay to the Buyer the Buyer’s cost thereof, not
                exceeding the cost of providing the same remedy at the Shipyard (deducting
                the cost of any replacement parts or materials actually furnished
                by the
                Seller and/or the Builder to the Buyer for making of such repairs),
                such
                payment to be made not later than sixty (60) days after submission
                to the
                Builder of repair invoices and other appropriate evidence to substantiate
                the claim under the Warranty.

            

    

     

    
      	
              5.

            	
              Freight
                Charges :

            

    

     

    Replacement
      parts or materials to be furnished to the Buyer by the Seller and/or the Builder
      for making of repairs under the Warranty elsewhere than at the Shipyard or
      in
      other facility of the Builder in Japan shall be transported to the place of
      repairs at the Builder’s expense. Such transportation shall be by the most
      expeditious public surface transportation. If request is made in time by the
      Buyer, the Seller shall cause the Builder to transport heavy or bulky parts
      or
      materials by air transportation upon the Buyer paying to the Seller or the
      Builder the difference between the surface and air costs. The
      Seller

     

    
      
        
        

      

        27

        
          

        

      

      
        
        

      

    
     

    shall
      cause the Builder to, in every case, use its best efforts to expedite the
      furnishing to the Buyer of replacement parts or materials required under the
      Warranty.

     

    
      	
              6.

            	
              Conditions
                of Warranty :

            

    

     

    
      	 	
              (a)

            	
              The
                Buyer shall exercise the care of a prudent shipowner in keeping the
                Vessel
                in good condition, working order and repairs, and shall use the Vessel,
                its machinery and equipment only for the purpose intended and as
                described
                in this Contract during the Warranty
                Period.

            

    

     

    
      	 	
              (b)

            	
              The
                Buyer shall follow the recommendations contained in operating and
                maintenance manuals (in English language) provided by the Builder
                prior to
                delivery of the Vessel.

            

    

     

    In
      the
      event that the Buyer or its employees or agents shall fail to operate the
      Vessel, its machinery or equipment, in accordance with the conditions specified
      herein, the Seller and the Builder shall be entitled to withdraw the Warranty
      as
      to the part or parts of the Vessel affected by such failure upon giving written
      notice to this effect to the Buyer, accompanied by substantiation of such
      claimed failure.

     

    
      	
              7.

            	
              Warranty
                to be Exclusive :

            

    

     

    The
      Warranty shall replace and exclude any and all other liability, guarantee or
      warranty, expressed or implied, pursuant to law, custom, statute or otherwise,
      by reason of the construction and sale of the Vessel to the Buyer by the
      Seller.

     

    
      	
              8.

            	
              Assignment
                of Rights :

            

    

     

    The
      Buyer
      shall have the right on or after delivery and acceptance of the Vessel to assign
      its rights under Article IX hereof to any purchaser or bareboat charterer or
      financier of the Vessel with the prior written consent of the Builder. The
      Builder retains the right to reject the assignment in its fair judgment. Notice
      of any such assignment shall be given by the Buyer to the Builder and the
      Seller.

     

    
      	
              9.

            	
              Arbitration
                :

            

    

     

    Any
      dispute under this Article shall be referred to Arbitration in accordance with
      the provisions of Article XIII hereof.

     

    (End
      of
      Article)

     

    
      
        
        

      

        28

        
          

        

      

      
        
        

      

    
     

    ARTICLE
      X–
      RESCISSION BY BUYER

     

    
      	
              1.

            	
              Notice
                :

            

    

     

    The
      payments made by the Buyer prior to delivery of the Vessel under this Contract
      shall be in the nature of advances to the Seller. In the event that the Buyer
      shall exercise its right of rescission of this Contract under and pursuant
      to
      any of the provisions of this Contract whereby the Buyer is specifically
      entitled to do so then the Buyer shall notify the Seller in writing of such
      rescission which shall be effective as of the date when notice thereof is
      received by the Seller.

     

    
      	
              2.

            	
              Refund
                to Buyer :

            

    

     

    Within
      twelve (12) Business Days from the date of receipt by the Seller of such notice
      of rescission of this Contract, unless the Seller duly contests such rescission
      by the Buyer and proceeds to arbitration within the said period pursuant to
      Article XIII hereof, the Seller shall refund by telegraphic transfer to the
      Buyer the full amount of the sums paid by the Buyer to the Seller under this
      Contract and the cost of the Buyer’s Supplies, if any. In such event, the Seller
      shall in addition pay to the Buyer interest at the rate of ten percent (10%)
      per
      annum on the amount required to be refunded to the Buyer computed from the
      respective dates on which such sums were paid by the Buyer to the Seller to
      the
      date of remittance thereof by the Seller, provided, however, that if the said
      rescission by the Buyer is made under the provisions of Paragraphs 3 and 4
      of
      Article VIII hereof, then, in such event, the Seller shall not be required
      to
      pay any interest for the period of time equal to that of the permissible
      delays.

     

    If
      the
      contract is rescinded by the Buyer under the provisions of Article III hereof,
      the Buyer shall in no event be entitled to any liquidated damages.

     

    
      	
              3.

            	
              Discharge
                of Obligations :

            

    

     

    Upon
      such
      refund pursuant to paragraph 2 hereof by the Seller to the Buyer, all
      obligations, duties and liabilities of each of the parties hereto to the other
      under this Contract shall be forthwith completely discharged.

     

    
      	
              4.

            	
              Refund
                Guarantee

            

    

     

    Shortly
      prior to the Seller’s receipt of each of the First, Second, Third, and Fourth
      Instalment referred to in Article II (Contract Price and Terms of Payment)
      of
      this Contract, as security for refund of instalments paid prior to the delivery
      of the Vessel, the Seller shall furnish the Buyer with the original of an
      assignable letter of guarantee (the “Refund Guarantee”) in the form of Exhibit
“C” attached hereto issued by one of the first class Japanese Banks to be
      accepted by the Buyer in favour of the Buyer guaranteeing the Seller’s refund to
      the Buyer of the relevant pre-delivery instalment and interest payable thereon
      in case of contingencies as described in this Article.

     

    Each
      Refund Guarantee shall cover the relevant pre-delivery instalment plus interest
      accrued thereon as described in this Article and shall remain in full force
      and
      effect throughout the duration of the Contract from the date such Refund
      Guarantee is issued until:

     

    
      
        
        

      

        29

        
          

        

      

      
        
        

      

    
     

    
      	 	
              (a)

            	
              receipt
                by the Buyer of all sums together with interest accrued thereon guaranteed
                by the said Refund Guarantee; or

            

    

     

    
      	 	
              (b)

            	
              upon
                acceptance by the Buyer of the delivery of the Vessel at the Shipyard
                in
                accordance with the terms of this
                Contract,

            

    

     

    whichever
      comes earlier and in such event the Refund Guarantee shall be promptly returned
      to the Seller.

     

    If
      for
      whatsoever reason, other than the Buyer’s default under Article XI hereof, any
      of the Refund Guarantees ceases to be in full force and effect, or the issuing
      bank’s financial condition deteriorates, the Seller shall have the obligation to
      deliver to the Buyer within ten (10) Business Days from the date on which such
      Refund Guarantee ceased to be in full force and effect or the issuing bank’s
      financial condition deteriorated, a substitute letter of guarantee issued by
      a
      bank acceptable to the Buyer and being in a form and substance acceptable to
      the
      Buyer. In the event that the Seller fails to deliver to the Buyer such
      substitute letter of guarantee as aforesaid, the Buyer shall be entitled to
      rescind the Contract in accordance with the provisions of this Article
      X.

     

    The
      costs
      for obtaining and maintaining the Refund Guarantee and any substitute thereof
      shall be paid by the Seller on behalf of the Buyer, provided however that the
      Seller shall have no obligation to cover such costs until it receives sufficient
      funds from the Buyer in order to pay the same (and for which prior notice will
      be given to the Buyer by the Seller) and provided also however that the Seller
      shall be reimbursed by the Buyer for such cost in every six (6) months after
      the
      issuance of each Refund Guarantee and provided further that the Buyer’s
      obligation hereunder shall not exceed an amount equal to three quarters of
      one(1) per cent(0.75%) per annum of the amount of each pre-delivery instalment
      actually paid and guaranteed under the relevant Refund Guarantee or substitute
      thereof.

     

    (End
      of
      Article)

    
      
        
        

      

        30

        
          

        

      

      
        
        

      

    
     

    ARTICLE
      XI–
      BUYER’S DEFAULT

     

    
      	
              1.

            	
              Definition
                of Default :

            

    

     

    The
      Buyer
      shall be deemed to be in default of its obligations under this Contract in
      the
      following cases:

     

    
      	 	
              (a)

            	
              If
                any of the instalments due and payable before delivery of the Vessel
                is
                not paid to the Seller within five (5) Banking days (excluding Bank
                Holidays in New York, London, Athens and Tokyo) after the Due Date
                as
                provided in Article II hereof; or

            

    

     

    
      	 	
              (b)

            	
              If
                the instalment due and payable upon delivery of the Vessel is not
                paid
                concurrently with delivery of the Vessel as provided in Article II
                hereof;
                or

            

    

     

    
      	 	
              (c)

            	
              If
                the Buyer, when the Vessel is duly tendered for delivery by the Seller
                in
                accordance with the provisions of this Contract, fails to take delivery
                of
                the Vessel without specific and valid ground therefore under this
                Contract.

            

    

     

    
      	
              2.

            	
              Interest
                and Charge :

            

    

     

    If
      the
      Buyer is in default of payment of any of the instalments, then in such event,
      the Buyer shall pay to the Seller interest on such amount unpaid at the rate
      of
      ten percent (10%) per annum from the Due Date thereof to the date of full
      payment; in the event that the Buyer shall fail to take delivery of the Vessel
      without any specific and valid ground under this Contract as provided in
      Paragraph 1 (c) of this Article, the Buyer shall be deemed to be in default
      of
      payment of the instalment due on delivery of the Vessel and shall pay interest
      thereon at the same rate as aforesaid and from the day on which the Vessel
      is
      tendered for delivery by the Seller to the day on which the Vessel has been
      delivered.

     

    Upon
      payment to the Seller of the relevant instalment or instalments together with
      interest accrued thereon and reasonable expenses incurred by the Seller for
      recovering the same, the Seller or the Builder shall have no other claim for
      damages against the Buyer.

     

    
      	
              3.

            	
              Effect
                of Default :

            

    

     

    
      	 	
              (a)

            	
              If
                any default by the Buyer as provided hereinbefore occurs, the Expected
                Delivery Date shall be automatically postponed for the period of
                such
                default by the Buyer.

            

    

     

    
      	 	
              (b)

            	
              If
                any default by the Buyer continues for a period of fifteen (15) days,
                the
                Seller may, at its option, rescind this Contract by giving notice
                of such
                effect to the Buyer in writing.

            

    

     

    Upon
      dispatch by the Seller of such notice of rescission, this Contract shall be
      forthwith rescinded and terminated, and the Buyer’s Supplies, if any, shall
      become the sole property of the Seller.

     

    In
      the
      event of such rescission of this Contract, the Seller shall be entitled to
      retain any instalment or instalments already paid by the Buyer to the Seller
      under

     

    
      
        
        

      

        31

        
          

        

      

      
        
        

      

    
     

    this
      contract provided always that in the case of the sale of the Vessel the Seller
      shall take into account such instalments in accordance with the provisions
      of
      Paragraph 4 of this Article.

     

    
      	
              4.

            	
              Disposal
                of Vessel :

            

    

     

    
      	 	
              (a)

            	
              In
                the event that this Contract is rescinded by the Seller under the
                provisions of Paragraph 3 of this Article, the Seller may, at its
                sole
                discretion, either complete the Vessel and sell the same, or sell
                the
                Vessel in its incompleted state, free from any right or claim of
                the
                Buyer. Such sale of the Vessel by the Seller shall be by public auction
                or
                private contract if the sale by private contract is deemed in the
                sole
                judgment of the Seller to be more advisable and shall be made on
                such
                terms and conditions as the Seller shall deem fit without any liability
                whatsoever upon the Seller for any loss or damage sustained by the
                Buyer
                as a result of such sale.

            

    

     

    
      	 	
              (b)

            	
              In
                the event of sale of the Vessel in its completed state, the proceeds
                of
                sale received by the Seller shall be applied firstly to payment of
                all
                expenses attending such sale or otherwise incurred by the Seller
                as a
                result of the Buyer’s default and then to payment of the unpaid
                instalments of the Contract Price and interest on such unpaid instalments
                at the rate of ten percent (10%) per annum from the respective due
                dates
                thereof to the date of receipt of the
                proceeds.

            

    

     

    
      	 	
              (c)

            	
              In
                the event of sale of the Vessel in its incompleted state, the proceeds
                of
                sale received by the Seller shall be applied firstly to all expenses
                attending such sale or otherwise incurred by the Seller as a result
                of the
                Buyer’s default and then to payment of all costs and expenses of
                construction of the Vessel incurred by the Seller less the instalments
                already paid by the Buyer and compensation to the Seller for a reasonable
                loss of profit due to rescission of this
                Contract.

            

    

     

    
      	 	
              (d)

            	
              In
                either of the above events of sale, if the proceeds of sale exceeds
                the
                total amount against which such proceeds are to be applied as aforesaid,
                the Seller shall pay the excess to the Buyer without interest, provided
                that the amount of such payment to the Buyer shall in no event exceed
                the
                total amount of instalments already paid by the Buyer to the Seller
                and
                cost of the Buyer’s Supplies, if
                any.

            

    

     

    
      	 	
              (e)

            	
              If
                the proceeds of sale are insufficient to pay such total amount, the
                Buyer
                shall promptly pay the deficiency to the Seller upon
                demand.

            

    

     

    (End
      of
      Article)

    
      
        
        

      

        32

        
          

        

      

      
        
        

      

    
     

    ARTICLE
      XII–
      BUILDER’S INSURANCE

     

    
      	
              1.

            	
              Extent
                of Insurance Coverage :

            

    

     

    The
      Seller warrants that the Builder shall, at its own cost and expense, keep the
      Vessel and all machinery, materials, equipment, appurtenances and outfit
      delivered to the Shipyard for the Vessel or built into, or installed in or
      upon
      the Vessel including the Buyer’s Supplies, fully insured with first class
      Japanese insurance companies designated by the Builder, from the date of
      keel-laying of the Vessel until the Vessel is completed, delivered to and
      accepted by the Buyer, under coverage corresponding to the Japanese Builders’
Risks Insurance Clause.

     

    The
      amount of such insurance coverage shall, up to the date of delivery of the
      Vessel, be in an amount at lease equal to, but not limited to, (i) the
      aggregated amount of all instalments of the Contract Price paid by the Buyer
      to
      the Seller and (ii) the value of the Buyer’s Supplies. The policy referred to
      hereinabove shall be taken out in the name of the Builder and all losses under
      such policy shall be payable to the Builder. The Builder shall furnish the
      Buyer
      with a copy of the said insurance policy or policies on request.

     

    
      	
              2.

            	
              Application
                of Recovered Amount :

            

    

     

    
      	 	
              (a)

            	
              Partial
                Loss

            

    

     

    In
      the
      event that the Vessel, any parts, materials, machinery, equipment, appurtenances
      and outfits thereof shall be damaged by any insured cause whatsoever prior
      to
      acceptance thereof by the Buyer and in the further event that such damage shall
      not constitute an actual or a constructive total loss of the Vessel, the Seller
      shall cause the Builder to apply the insurance moneys recovered under said
      insurance policy to the repair of such damage, satisfactory to the
      Classification Society and the Buyer shall accept the Vessel under this Contract
      if completed in accordance with this Contract and Specifications and free of
      class recommendations and notations. The Buyer shall not, on account of any
      such
      damage or any repair thereof, make any claim for alleged consequential loss
      or
      depreciation.

     

    
      	 	
              (b)

            	
              Total
                Loss

            

    

     

    However,
      in the event that the Vessel is determined to be an actual or constructive
      total
      loss, by the mutual agreement between the parties hereto, either:

     

    
      	 	
              (i)

            	
              the
                Builder shall proceed in accordance with the terms of this Contract,
                in
                which case the amount recovered under the said insurance policy shall
                be
                applied to the reconstruction of the Vessel’s damage, provided the parties
                hereto shall have first agreed in writing as to such reasonable
                postponement of the Expected Delivery Date and adjustment of other
                terms
                of this Contract including the Contract Price as may be necessary
                for the
                completion of such reconstruction;
                or

            

    

     

    
      	 	
              (ii)

            	
              the
                Seller shall refund immediately to the Buyer the amount of all instalments
                paid to the Seller under this contract together with interest at
                the rate
                of five percent (5%) per annum, provided however that in the case
                of such
                total loss

            

    

     

    
      
        
        

      

        33

        
          

        

      

      
        
        

      

    
     

    
      	
            	
               

            	
              being
                due to causes described in Article VIII, Paragraph 1 no interest
                shall be
                payable, whereupon this contract shall be rescinded and all rights,
                duties, liabilities and obligations of each of the parties to the
                other
                shall terminate forthwith.

            

    

     

    If
      the
      parties hereto fail to reach such agreement within two (2) months after the
      Vessel is determined to be an actual or constructive total loss, the provisions
      of sub-paragraph (b)(ii) above shall be applied.

     

    
      	
              3.

            	
              Termination
                of Seller’s and Builder’s Obligation to Insure
                :

            

    

     

    The
      Seller’s obligation to cause the Builder to insure the Vessel hereunder shall
      cease and terminate forthwith upon delivery thereof to the Buyer.

     

    (End
      of
      Article)

     

    
      
        
        

      

        34

        
          

        

      

      
        
        

      

    
     

    ARTICLE
      XIII–
      DISPUTES AND ARBITRATION

     

    
      	
              1.

            	
              Disputes
                :

            

    

     

    If
      any
      dispute arises between the parties hereto relating to the construction of the
      Vessel including equipment, machinery, materials and workmanship or in relation
      to compliance with the rules and regulations of the Classification Society
      or
      other applicable regulations or in relation to the contract or the
      Specifications, the parties may either by mutual agreement refer the dispute
      to
      the Classification Society for disputes in respect of whether the Vessel
      complies with the classification rules and regulations or to a mutually agreed
      expert for any other issued whose decision shall be final and binding upon
      the
      parties hereto or may refer the dispute to arbitration pursuant to paragraph
      2
      hereof.

     

    
      	
              2.

            	
              Arbitration
                :

            

    

     

    All
      disputes, unless settled in accordance with Paragraph 1 of this Article XIII,
      arising out of or in connection with this Contract or its rescission shall
      be
      referred to arbitration in London, in accordance with the provisions of
      Arbitration Act 1996 or any statutory modification or re-enactment thereof
      for
      the time being in force. The arbitration shall be conducted, in English language
      in accordance with the London Maritime Arbitrators Association (LMAA) Terms
      current at the time when the arbitration proceedings are commenced, with
      reference to three (3) arbitrators (hereinafter called the “Arbitration Board”),
      where each party shall appoint an arbitrator and the two arbitrators so
      appointed shall appoint a third arbitrator.

     

    Either
      party may demand arbitration of any such dispute by giving notice to the other
      party. Any demand for arbitration by either of the parties hereto shall state
      the name of the arbitrator appointed by such party. Within fourteen (14) days
      after receipt of notice of such demand for arbitration, the other party shall
      in
      turn appoint a second arbitrator and give notice in writing of such appointment
      to the party demanding arbitration. If a party fails to appoint an arbitrator
      as
      aforementioned within fourteen (14) days following receipt of notice of demand
      for arbitration by the other party, the party failing to appoint an arbitrator
      shall be deemed to have accepted and appointed, as its own arbitrator, the
      arbitrator appointed by the party demanding arbitration and the arbitration
      shall proceed before this sole arbitrator who alone in such event shall
      constitute the Arbitration Board.

     

    If
      the
      two arbitrators are unable to agree upon a third Arbitrator within twenty (20)
      days after appointment of the second arbitrator, either of the said two
      arbitrators may apply to the President for the time being of the London Maritime
      Arbitrators Association to appoint the third arbitrator.

     

    The
      award
      of the arbitrators shall be final and binding on the parties.

     

    
      	
              3.

            	
              Alteration
                of Expected Delivery Date :

            

    

     

    In
      the
      event of reference to arbitration of any dispute arising out of matters
      occurring prior to delivery of the Vessel, the award may include any
      postponement of the Expected Delivery Date which the Arbitration Board may
      deem
      appropriate and/or a determination by the Arbitration Board as to whether a
      delay is classified as permissible or non-permissible for the purposes of
      Article VIII and/or III hereof.

     

    
      
        
        

      

        35

        
          

        

      

      
        
        

      

    
     

    (End
      of
      Article)

     

    
      
        
        

      

        36

        
          

        

      

      
        
        

      

    
     

    ARTICLE
      XIV–
      RIGHT OF ASSIGNMENT

     

    In
      addition to Article IX hereof, neither of the parties hereto shall assign this
      Contract to a third party unless prior consent of the other party is given
      in
      writing, provided however, that such consent will not be required in the case
      of
      the Buyer assigning this Contract to a bank or financial institution financing
      any of the instalments payable hereunder and for which prior written notice
      is
      given to the Seller and the Builder or to a company nominated and guaranteed
      by
      the Buyer and notified by the Buyer to the Seller prior to the delivery of
      the
      Vessel.

     

    In
      case
      of assignment by the Buyer, such assignment shall be notified to the Japanese
      Government, and the Buyer shall remain liable under this Contract.

     

    This
      Contract shall inure to the benefit of and shall be binding upon the lawful
      successors or the legitimate assignees of the parties hereto.

     

    (End
      of
      Article)

     

    
      
        
        

      

        37

        
          

        

      

      
        
        

      

    
     

    ARTICLE
      XV–
      TAXES AND DUTIES

     

    
      	
              1.

            	
              Taxes
                and Duties Imposed in Japan :

            

    

     

    The
      Seller shall bear and pay all taxes and duties imposed in Japan in connection
      with execution and/or performance of this Contract excluding any taxes and
      duties imposed in Japan upon the Buyer’s Supplies.

     

    
      	
              2.

            	
              Taxes
                and Duties Imposed outside Japan
                :

            

    

     

    The
      Buyer
      shall bear and pay all taxes and duties imposed outside Japan in connection
      with
      execution and/or performance of this Contract except for taxes and duties
      imposed upon those items and services to be procured by the Builder or the
      Seller for construction of the Vessel (and the Seller hereby agrees to indemnify
      and hold harmless the Buyer in relation to such taxes and duties).

     

    (End
      of
      Article)

     

    
      
        
        

      

        38

        
          

        

      

      
        
        

      

    
     

    ARTICLE
      XVI–
      PATENTS, TRADEMARKS AND COPYRIGHTS, ETC

     

    
      	
              1.

            	
              Patents,
                Trademarks and Copyrights :

            

    

     

    Machinery
      and equipment of the Vessel may bear the patent number, trademarks or trade
      names of the manufacturers.

     

    The
      Seller and the Builder shall indemnify and hold harmless the Buyer from patent
      liability or claims of patent infringement of any nature or kind including
      costs
      and expenses for or on account of any patented or patentable invention made
      or
      used in the performance of this Contract and from any claims for breaches of
      trademarks, copyright or design rights or any other third party rights in
      respect of the Vessel and raw materials, machines or devices used for or in
      the
      construction of the Vessel. The Seller and/or the Builder may at their
      discretion take over the defence of any such proceedings brought against the
      Buyer.

     

    Nothing
      contained herein shall be construed as transferring any patent or trademark
      rights or copyright in equipment covered by this Contract and all such rights
      are hereby expressly reserved to the true and lawful owners
      thereof.

     

    The
      Seller’s and the Builder’s warranty hereunder does not extend to the Buyer’s
      Supplies, if any.

     

    
      	
              2.

            	
              Specifications,
                Plans and Drawings :

            

    

     

    The
      Builder retains all rights in and to the Specifications, plans and drawings,
      technical descriptions, calculations, test results and other data, information
      and documents concerning the design and construction of the Vessel and the
      Buyer
      undertakes therefore not to bring them to the knowledge of any third parties
      without the prior written consent of the Builder exception where it is necessary
      for normal operation, repair and maintenance of the Vessel.

     

    (End
      of
      Article)

     

    
      
        
        

      

        39

        
          

        

      

      
        
        

      

    
     

    ARTICLE
      XVII –
      BUYER’S SUPPLIES

     

    
      	
              1.

            	
              Responsibility
                of Buyer :

            

    

     

    
      	 	
              (a)

            	
              The
                Buyer shall, at its own risk, cost and expense, supply and deliver
                to the
                Builder all items of equipment and supplies specified in the
                Specifications as being furnished by the Buyer (herein called the
“Buyer’s
                Supplies”) at warehouses or other storages of the Shipyard or other places
                designated by the Builder in the proper condition ready for installation
                in or on the Vessel in accordance with the time schedule designated
                by the
                Builder.

            

    

     

    
      	 	
              (b)

            	
              In
                order to facilitate installation by the Builder of the Buyer’s Supplies in
                or on the Vessel, the Buyer shall furnish the Builder with necessary
                specifications, plans, drawings, instruction books, manuals, test
                reports
                and certificates required by the rules and regulations. The Buyer,
                if so
                requested by the Builder, shall, without any charge to the Builder,
                cause
                the representative of the manufacturers of the Buyer’s Supplies to assist
                the Builder in installation thereof in or on the Vessel and/or to
                carry
                out installation thereof by themselves and/or to make necessary
                adjustments thereof at the Shipyard or other places designated by
                the
                Builder.

            

    

     

    
      	 	
              (c)

            	
              Any
                and all of the Buyer’s Supplies shall be subject to the Seller’s and/or
                the Builder’s reasonable right of rejection, as and if they are found to
                be unsuitable or in improper condition for installation. However,
                if so
                requested by the Buyer, the Seller may cause the Builder to repair
                or
                adjust the Buyer’s Supplies without prejudice to the Seller’s and the
                Builder’s other rights hereunder and without being responsible for any
                consequences therefrom. In such case, the Buyer shall reimburse the
                Seller
                and/or the Builder for all costs and expenses incurred by the Seller
                and/or the Builder in such repair or adjustment and the Expected
                Delivery
                Date shall be automatically extended for a period of time necessary
                for
                such repair or replacement.

            

    

     

    
      	 	
              (d)

            	
              Should
                the Buyer fail to deliver any of the Buyer’s Supplies within the time
                designated, and as a result of this delay the Builder cannot deliver
                the
                vessel on the Expected Delivery Date, the Expected Delivery Date
                shall be
                postponed by the period of the actual delay caused by the delay in
                delivery of the Buyer’s Supplies.

            

    

     

    If
      delay
      in delivery of any of the Buyer’s Supplies exceeds thirty (30) days, then, the
      Seller and/or the Builder shall be entitled to proceed with construction of
      the
      Vessel without installation thereof in or on the Vessel and the Buyer shall
      accept and take delivery of the Vessel so constructed, unless otherwise mutually
      agreed upon between the parties hereto.

     

    
      	
              2.

            	
              Responsibility
                of Seller and/or Builder : 

            

    

     

    The
      Builder shall be responsible for storing, insuring and handling with reasonable
      care the Buyer’s Supplies after delivery thereof at the Shipyard and shall, at
      its own cost and expense, thereafter install them in or on the Vessel, unless
      otherwise provided herein or agreed upon by the parties hereto; provided,
      however, that the Seller and the Builder shall not be responsible for quality,
      efficiency and/or performance of any of the Buyer’s Supplies.

     

    
      
        
        

      

        40

        
          

        

      

      
        
        

      

    
     

    
      	
              3.

            	
              Running
                Spares. Stores. Provisions and Other Supplies
                :

            

    

     

    Running
      spares, stores, provisions and other supplies necessary to be kept or stored
      on
      board the Vessel for operation of the Vessel including those provided for in
      the
      Specifications are not construed as the Buyer’s Supplies under this
      Article.

     

    These
      spares, stores, provisions and supplies shall be furnished to and placed on
      board the Vessel at the Buyer’s cost and expense.

     

    (End
      of
      Article)

     

    
      
        
        

      

        41

        
          

        

      

      
        
        

      

    
     

    ARTICLE
      XVIII–
      NOTICE

     

    Any
      and
      all notices and communications in connection with this Contact shall be
      addressed as follows:

     

    
      	To
              the Buyer :	
              ENIADEFHI
                SHIPPING CORPORATION

            

    

    c/o
      SAFETY MANAGEMENT OVERSEAS S.A.

    32
      AVENUE
      KARAMANLI

    P.O.BOX
      70837

    GR-16605
      VOULA

    
      	
            	Phone
              :	
              +30
                210 895 7070

            

    

    
      	
            	Fax
              :	
              +30
                210 895 6900

            

    

     

    
      	To
              the Seller :	
              ITOCHU
                Corporation

            

    

    5-1,
      Kita-Aoyama 2-Chome, Minato-ku,

    Tokyo
      107-8077, Japan

    
      	
            	Attention
              :	
              Marine
                Group No.1 of Marine Department

            

    

    TOKBR
      Section

    
      	
            	Phone
              :	
              81-3-3497-2963

            

    

    
      	
            	Fax
              :	
              81-3-3497-7111

            

    

     

    Any
      and
      all notices and communications in connection with this Contract shall be written
      in English language. For the avoidance of doubt, all references to notices
      in
      writing shall include notices given by fax. Every notice, request, demand or
      other communication under this Contract shall be given by first class registered
      air-mail or other fast delivery postal service or fax or telex and be deemed
      to
      have been received (a) in the case of letter posted on the earlier of (i) actual
      receipt and (ii) five (5) days after being posted and a receipt being obtained
      from the relevant postal service and (b) in the case of a telefax at the time
      of
      dispatch thereof (provided that if the date of receipt or, as the case may
      be,
      dispatch is not a business day in the country of the addressee it shall be
      deemed to have been received at the opening of business on the next such
      business day).

     

    (End
      of
      Article)

     

    
      
        
        

      

        42

        
          

        

      

      
        
        

      

    
    
ARTICLE
      XIX–
      EFFECTIVE DATE OF CONTRACT

     

    
      	
              1.

            	
              This
                Contract shall become effective on the date of execution hereof.
                Notwithstanding the foregoing, in the event that the Construction
                Permit
                for the Vessel is not obtained from the Japanese Government prior
                to
                keel-laying of the Vessel (i.e. the first structural assembly of
                the
                Vessel has been placed in the building dock or on the building berth),
                then, this Contract shall automatically become null and void, unless
                otherwise mutually agreed upon in writing between the parties hereto
                and
                the parties hereto shall be immediately and completely discharged
                from all
                of their obligations to each other under this Contract as though
                this
                Contract had never been entered into at all. In such event, the Seller
                shall refund to the Buyer full amount of the First Instalment as
                defined
                in Article II of this Contract together with interest at the rate
                of six
                percent (6%) per annum from the date of receipt of such amounts by
                the
                Seller until the date of refund thereof within thirty (30) days after
                the
                date on which this Contract shall have become null and
                void.

            

    

     

    (End
      of
      Article)

     

    
      
        
        

      

        43

        
          

        

      

      
        
        

      

    
     

    ARTICLE
      XX–
      SELLER’S AND/OR BUILDER’S DEFAULT

     

    The
      Buyer
      shall be entitled to terminate this Contract forthwith whereupon the provisions
      of Article X hereof shall apply, by the giving of notice to the Seller by letter
      or facsimile should any of the following events occur:

     

    
      	 	
              (a)

            	
              the
                cessation of the carrying on of business or the filing of a petition
                or
                the making of an order or the passing of an effective resolution
                for the
                winding-up of or the appointment of a receiver of the undertaking
                or
                property of, or the insolvency of, the Seller or the Builder unless
                (i)
                the Builder or the Seller (whichever is relevant) provide to the
                Buyer
                within forty five (45) days of written notice from the Buyer evidence
                that
                it remains able to complete the Vessel in accordance with the terms
                of
                this Contract and (ii) such evidence is accepted in the fair judgement
                of
                the Buyer, or

            

    

     

    
      	 	
              (b)

            	
              the
                placing of the Seller or the Builder under court protection or analogous
                proceedings or corporate reorganization unless (i) the Builder or
                the
                Seller (whichever is relevant) provide to the Buyer within one hundred
                and
                twenty (120) days of written notice from the Buyer evidence that
                it
                remains able to complete the Vessel in accordance with the terms
                of this
                Contract and (ii) such evidence is accepted in the fair judgement
                of the
                Buyer.

            

    

     

    (End
      of
      Article)

     

    
      
        
        

      

        44

        
          

        

      

      
        
        

      

    
    
ARTICLE
      XXI–
      INTERPRETATION

     

    
      	
              1.

            	
              Laws
                and Regulations Applicable :

            

    

     

    The
      parties hereto agree that this Contract shall be governed by, and the validity
      and interpretation of this Contract and of each Article and part thereof shall
      be construed and interpreted in accordance with, the laws of
      England.

     

    
      	
              2.

            	
              Discrepancies
                :

            

    

     

    All
      general language or requirements embodied in the Specifications are intended
      to
      amplify, explain and implement the requirements of this Contract. However,
      in
      the event that any language or requirements so embodied permit of an
      interpretation inconsistent with any provisions of this Contract, then, in
      each
      and every such event, the applicable provisions of this Contract shall govern.
      The Specifications and the Plans and Drawings (which expression for the purposes
      of this Paragraph shall include the Plan) are also intended to explain each
      other, and anything shown on the Plans and Drawings and not stipulated in the
      Specifications or stipulated in the Specifications and not shown on the Plans
      and Drawings shall be deemed and considered as if embodied in both.

     

    
      	
              3.

            	
              Entire
                Agreement : 

            

    

     

    This
      Contract contains the entire agreement and understanding between the parties
      hereto and supersedes all prior negotiations, representations, undertakings
      and
      agreements on any matter of this Contract.

     

    (End
      of
      Article)

     

    
      
        
        

      

        45

        
          

        

      

      
        
        

      

    
     

    IN
      WITNESS WHEREOF,
      the
      parties hereto have caused this Contract to be duly executed on the day and
      year
      first above written.

    

      
        	
                Buyer:

              	 	
                Seller:

              
	 	 	 
	
                /s/
                  George Papadopoulos

              	 	
                /s/
                  Y. Nishimuro

              
	
                ENIADEFHI
                  SHIPPING CORPORATION

              	 	
                ITOCHU
                  CORPORATION

              
	 	 	 
	 	 	 
	 	 	 
	
                By:
                  George Papadopoulos

              	 	
                By:
                  Y. Nishimuro

              
	 	 	 
	
                Title:
                  Attorney-in-fact

              	 	
                Title:
                  Attorney-in-fact

              
	 	 	 
	
                Witness:

              	 	
                Witness:

              
	 	 	 
	
                By:
                  /s/ L.N. Barbaris

              	 	
                By:
                  /s/ H. Fujimoto

              
	 	 	 
	
                Name:
                  L.N. Barbaris

              	 	
                Name:
                  H. Fujimoto

              
	 	 	 
	
                Title:

              	 	
                Title:

              

      

    

     

    
      
        
        

      

        46

        
          

        

      

      
        
        

      

    
    
EXHIBIT
      “A”

     

    STAGE
      CERTIFICATE

     

    Hull
      No.
      3255 of IHI
      MARINE UNITED INC.
      (the
“Builder”)
      under
      the Shipbuilding Contract dated the 28th day of August 2006 (the “Shipbuilding
      Contract”)
      made
      between the Builder and ITOCHU
      CORPORATION
      (the
“Seller”),
      and
      the Shipsales Contract dated the 28th day of August 2006 (the “Shipsales
      Contract”)
      made
      between ENIADEFHI
      SHIPPING CORPORATION
      (the
“Buyer”)
      and
      the Seller (both the “Contracts”)

     

    We
      hereby
      certify in connection with the Contracts of the above Vessel that
      [__________________]

     

    
      
        	
                The
                  Builder

              	 	
                The
                  Buyer

              	 
	 	 	 	 
	
                 

              	 	
                 

              	 
	
                Authorised
                  Representative

                 

              	 	
                Authorised
                  Representative

                 

              	 

      

    

    
    

    For
      and
      on behalf of

    The
      Classification Society 

    Dated

     

    
      
        
        

      

        47

        
          

        

      

      
        
        

      

    
    
EXHIBIT
      “B”

     

    PERFORMANCE
      GUARANTEE

     

    Messrs.
      ITOCHU Corporation

     

    Dear
      Sirs

     

    We
      hereby
      irrevocably and unconditionally, and jointly and severally with ENIADEFHI
      SHIPPING CORPORATION
      (hereinafter called the “BUYER”),
      guarantee to you (i) the due and punctual payment of each instalment of the
      Contract Price and all other sums of money owing to you by the Buyer under
      the
      Shipsales Contract (hereinafter called the “Contract”)
      dated
      15 March 2006 in respect of one (1) unit of D/W 87,000M.T. Type Bulk Carrier
      bearing the Hull No.3255 (hereinafter called the “Vessel”)
      of
IHI
      MARINE UNITED INC.,
      Japan
      and (ii) the due and punctual performance of any other obligations of the Buyer
      under the Contract, and theretofore, we hereby irrevocably and unconditionally
      (save as provided below) agree that should there be any default in payment
      of
      any sum or any default of performance of any obligation thereunder, we shall,
      immediately upon your simple demand (to be addressed in writing to us at 32
      Avenue Karamanli, GR-16605 Voula, Athens, Greece, Telefax: +30-210-895-6900),
      make payment of such sum or perform such other obligation in your favour in
      accordance with the terms thereof.

     

    This
      Performance Guarantee shall become effective upon execution by us and shall
      become null and void upon rescission by the BUYER of the Contract or delivery
      to
      and acceptance by the Buyer of the Vessel, and in either case this Guarantee
      and
      any copies thereof in your possession shall be immediately returned to
      us.

     

    The
      existence of this Performance Guarantee and its terms and conditions shall
      be
      treated by you as confidential and shall not be disclosed by you to any person,
      authority or entity and your obligation of confidentiality hereunder shall
      continue even after the return of this Performance Guarantee to
      us.

     

    This
      Performance Guarantee shall be governed by and construed in accordance with
      the
      laws of England and any dispute arising under or in connection with this
      Performance Guarantee shall be submitted to arbitration on terms similar to
      those provided pursuant to the provisions of Article XIII of the Contract,
      which
      Article shall be incorporated mutatis mutandis in this Performance
      Guarantee.

     

    Dated:
      _________________________________

     

    By:

     

    Title:

     

    
      
        
        

      

        48

        
          

        

      

      
        
        

      

    
     

    EXHIBIT
      “C”

     

    ENIADEFHI
      SHIPPING CORPORATION

    c/o
      SAFETY
      MANAGEMENT OVERSEAS S.A.

     

    32
      Avenue
      Karamanli

     

    GR-16605
      Voula, Athens, Greece

     

    REFUND
      GUARANTEE

     

    Gentlemen:

     

    We
      hereby
      open our irrevocable Letter of Guarantee number in favour of ENIADEFHI
      SHIPPING CORPORATION
      (hereinafter called the “Buyer”)
      for
      account of ITOCHU
      CORPORATION
      (hereinafter called the “Seller”)
      as
      follows in connection with the Shipsales Contract dated ______________
      (hereinafter called the “Contract”)
      made
      by and between the Buyer and the Seller for the construction and sale of one
      (1)
      D/W 87,000 M.T. Type Bulk Carrier having Hull No.3255 of IHI
      MARINE UNITED INC.
      (hereinafter called the ‘Vessel”).

     

    If
      in
      connection with the terms of the Contract the Buyer shall become entitled to
      a
      refund of the _____ instalment paid to the Seller prior to the delivery of
      the
      Vessel (not exceeding JP¥________ (say
      _____________ Japanese Yen only)),
      we
      hereby irrevocably guarantee the repayment of the same to the Buyer within
      fifteen (15) business days after demand by the Buyer together with interest
      thereon at the rate of ten per cent (10%) per annum or, in relation to a period
      of time during which a force majeure event operated, without any interest for
      the duration of “permissible delays” pursuant to Article VIII, from the date
      following the date of receipt by the Seller to the date of remittance by
      telegraphic transfer of such refund.

     

    Payments
      will be made by us against Buyer’s written demand and signed statement
      certifying that Buyer’s demand for refund has been made in conformity with
      Article X of the Contract and the Seller has failed to make the
      refund.

     

    This
      Letter of Guarantee is assignable to any third party.

     

    This
      Letter of Guarantee is valid from the date of this Letter of Guarantee until
      the
      earlier of (i) receipt by the Buyer of the sum guaranteed hereby or (ii)
      acceptance by the Buyer of the delivery of the Vessel in accordance with the
      terms of the Contract.

     

    This
      Letter of guarantee shall be governed by and construed in accordance with the
      laws of England and the undersigned hereby submits to the exclusive jurisdiction
      of the High Court of Justice of England and Wales in relation to any dispute
      or
      difference arising hereunder or connected herewith.

     

    All
      demands, statements or notices in connection with this Letter of Guarantee
      shall
      be validly given if sent to us by telefax to our office at [country and town
      of
      office] as follows:

     

    [                                                           ]

     

    Fax:

     

    
      
        
        

      

        49

        
          

        

      

      
        
        

      

    
     

    In
      the
      event that any withholding or deduction is imposed by any law, the undersigned
      will pay such additional amount as may be necessary in order that the actual
      amount received after deduction or withholding shall be equal to the amount
      that
      would have been received if such deduction or withholding were not
      required.

     

    This
      Letter of Guarantee shall remain in full force and effect, notwithstanding
      any
      amendments made to the Contract by the parties thereto.

     

    Very
      truly yours

     

    
      
        
        

      

      
        50

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