Document:

EX-10.9

 Exhibit 10.9 

Schedule A 
  

SHIPBUILDING CONTRACT 
 FOR 

CONSTRUCTION AND SALE 
 OF 

ONE (1) DEADWEIGHT 81,600 MT TYPE KAMSARMAX BULK CARRIER 

(HULL NO.            ) 

BETWEEN 
 [SUBSIDIARY] 

or its guaranteed nominee 
 AS
BUYER 
 AND 
 TSUNEISHI GROUP
(ZHOUSHAN) SHIPBUILDING INC. 
 AS BUILDER 

 INDEX 
 PAGE 

 

					
	 PREAMBLE
	  	 	1	  
		
	 ARTICLE I - DESCRIPTION AND CLASS
	  			
	 1. DESCRIPTION
	  	 	2	  
	 2. DIMENSIONS AND CHARACTERISTICS
	  	 	2	  
	 3. CLASSIFICATION, RULES AND REGULATIONS
	  	 	3	  
	 4. SUBCONTRACTING
	  	 	3	  
	 5. REGISTRATION
	  	 	3	  
		
	 ARTICLE II - CONTRACT PRICE AND TERMS OF PAYMENT
	  			
	 1. CONTRACT PRICE
	  	 	4	  
	 2. CURRENCY
	  	 	4	  
	 3. TERMS OF PAYMENT
	  	 	4	  
	 4. METHOD OF PAYMENT
	  	 	5	  
	 5. PREPAYMENT
	  	 	5	  
	 6. SPECIAL CONDITIONS
	  	 	5	  
		
	 ARTICLE III - ADJUSTMENT OF CONTRACT PRICE
	  			
	 1. DELIVERY
	  	 	6	  
	 2. SPEED
	  	 	7	  
	 3. FUEL CONSUMPTION
	  	 	7	  
	 4. DEADWEIGHT
	  	 	8	  
	 5. EFFECT OF RESCISSION
	  	 	8	  
		
	 ARTICLE IV - APPROVAL OF PLANS AND DRAWINGS AND INSPECTION

                   
       DURING CONSTRUCTION
	  			
	 1. APPOINTMENT OF BUYER’S REPRESENTATIVE
	  	 	9	  
	 2. APPROVAL OF PLANS AND DRAWINGS
	  	 	9	  
	 3. INSPECTION BY REPRESENTATIVE
	  	 	9	  
	 4. FACILITIES
	  	 	10	  
	 5. LIABILITY OF THE BUILDER
	  	 	11	  
	 6. RESPONSIBILITY OF BUYER
	  	 	11	  

  
 i 

					
	 ARTICLE V - MODIFICATIONS
	  			
	 1. MODIFICATIONS OF SPECIFICATIONS
	  	 	12	  
	 2. CHANGE IN CLASS, ETC.
	  	 	12	  
	 3. SUBSTITUTION OF MATERIALS
	  	 	13	  
		
	 ARTICLE VI - TRIALS
	  			
	 1. NOTICE
	  	 	14	  
	 2. WEATHER CONDITION
	  	 	14	  
	 3. HOW CONDUCTED
	  	 	14	  
	 4. METHOD OF ACCEPTANCE OR REJECTION
	  	 	15	  
	 5. EFFECT OF ACCEPTANCE
	  	 	16	  
	 6. DISPOSITION OF SURPLUS CONSUMABLE STORES
	  	 	16	  
		
	 ARTICLE VII - DELIVERY
	  			
	 1. TIME AND PLACE
	  	 	17	  
	 2. WHEN AND HOW EFFECTED
	  	 	17	  
	 3. DOCUMENTS TO BE DELIVERED TO BUYER
	  	 	17	  
	 4. TENDER OF VESSEL
	  	 	18	  
	 5. TITLE AND RISK
	  	 	18	  
	 6. REMOVAL OF VESSEL
	  	 	18	  
		
	 ARTICLE VIII - DELAYS AND EXTENSION OF TIME FOR DELIVERY

                   
         (FORCE MAJEURE)
	  			
	 1. CAUSES OF DELAY
	  	 	19	  
	 2. NOTICE OF DELAY
	  	 	19	  
	 3. DEFINITION OF PERMISSIBLE DELAY
	  	 	20	  
	 4. RIGHT TO RESCIND FOR EXCESSIVE DELAY
	  	 	20	  
		
	 ARTICLE IX - WARRANTY OF QUALITY
	  			
	 1. GUARANTEE
	  	 	21	  
	 2. NOTICE OF DEFECTS
	  	 	21	  
	 3. REMEDY OF DEFECTS
	  	 	21	  
	 4. EXTENT OF BUILDER’S RESPONSIBILITY
	  	 	22	  
		
	 ARTICLE X - RESCISSION BY BUYER
	  			
	 1. NOTICE
	  	 	23	  
	 2. REFUND BY BUILDER
	  	 	23	  
	 3. DISCHARGE OF OBLIGATIONS
	  	 	23	  

  
 ii 

					
	 ARTICLE XI - BUYER’S DEFAULT
	  			
	 1. DEFINITION OF BUYER’S DEFAULT
	  	 	24	  
	 2. INTEREST AND CHARGE
	  	 	24	  
	 3. EFFECT OF DEFAULT
	  	 	24	  
	 4. SALE OF VESSEL
	  	 	25	  
		
	 ARTICLE XII - INSURANCE
	  			
	 1. EXTENT OF INSURANCE COVERAGE
	  	 	26	  
	 2. APPLICATION OF RECOVERED AMOUNT
	  	 	26	  
	 3. TERMINATION OF BUILDER’S OBLIGATION TO INSURE
	  	 	27	  
		
	 ARTICLE XIII - DISPUTE AND ARBITRATION
	  			
	 1. PROCEEDINGS
	  	 	28	  
	 2. NOTICE OF AWARD
	  	 	29	  
	 3. EXPENSES
	  	 	29	  
	 4. ENTRY IN COURT
	  	 	29	  
	 5. ALTERATION OF DELIVERY DATE
	  	 	29	  
		
	 ARTICLE XIV - RIGHT OF ASSIGNMENT
	  	 	30	  
		
	 ARTICLE XV - TAXES AND DUTIES
	  			
	 1. TAXES AND DUTIES IN CHINA
	  	 	31	  
	 2. TAXES AND DUTIES OUTSIDE CHINA
	  	 	31	  
		
	 ARTICLE XVI - PATENTS, TRADEMARKS, COPYRIGHTS, ETC.
	  			
	 1. PATENTS, TRADEMARKS AND COPYRIGHTS
	  	 	32	  
	 2. GENERAL PLANS, SPECIFICATIONS AND WORKING DRAWINGS
	  	 	32	  
		
	 ARTICLE XVII - BUYER’S SUPPLIES
	  			
	 1. RESPONSIBILITY OF BUYER
	  	 	33	  
	 2. RESPONSIBILITY OF BUILDER
	  	 	34	  
		
	 ARTICLE XVIII - NOTICE
	  			
	 1. ADDRESS
	  	 	35	  
	 2. LANGUAGE
	  	 	35	  
		
	 ARTICLE XIX - EFFECTIVE DATE OF CONTRACT
	  	 	36	  

  
 iii 

					
	 ARTICLE XX - INTERPRETATION
	  			
	 1. LAWS APPLICABLE
	  	 	37	  
	 2. DISCREPANCIES
	  	 	37	  
	 3. ENTIRE AGREEMENT
	  	 	37	  
		
	 END OF CONTRACT
	  	 	38	  

  
 iv 

 THIS CONTRACT, made this      day of
            , by and between                      or its guaranteed nominee, a
corporation organized and existing under the law of Panama, having its principal office at MMG Tower 16th Floor, 53rd E. Street, Urbanization Marbella, Panama City, Republic of Panama (hereinafter called the “BUYER”), the party of the
first part, and, TSUNEISHI GROUP (ZHOUSHAN) SHIPBUILDING INC., a corporation organized and existing under the laws of the People’s Republic of China, having its principal office at Retiao Village, Xiushan Island, Daishan County, Zhoushan City,
Zhejiang Province, the People’s Republic of China (hereinafter called the “BUILDER”), the party of the second part. 

WITNESSETH 

In consideration of the mutual covenants herein contained, the BUILDER agrees to build, launch, equip and complete at the
BUILDER’s SHIPYARD in Zhoushan, Zhejiang Province the People’s Republic of China (hereinafter called the “SHIPYARD”) and sell and deliver to the BUYER after completion and successful trial, One (1) Deadweight 81,600 MT Type
Kamsarmax Bulk Carrier, more fully described in ARTICLE I hereof (hereinafter called the “VESSEL”), and the BUYER agrees to purchase and take delivery of the VESSEL from the BUILDER and to pay for the same to the BUILDER, all upon the
terms and conditions hereinafter set forth. 

 ARTICLE I - DESCRIPTION AND CLASS 

1. DESCRIPTION 

The VESSEL shall have BUILDER’s Hull No.             and
shall be constructed, equipped and completed in accordance with the provisions of this Contract, the Specifications, the General Arrangement Plan and the Maker List ( hereinafter collectively called the “Specifications” ) signed by each of
the parties hereto for identification and attached hereto and made an integral part hereof. 
 2. DIMENSIONS AND CHARACTERISTICS 

 

									
		  	Length, overall	  	 :
	  	Less than    229.00 M	  	
		  	Length, between perpendiculars	  	 :
	  	225.10 M	  	
		  	Breadth, moulded	  	 :
	  	32.26 M	  	
		  	Depth, moulded	  	 :
	  	20.00 M	  	
		  	Full loaded draft, moulded	  	 :
	  	14.40 M	  	
		  	Gross tonnage	  	 :
	  	 About 43,400
	  	
		  	Propelling machinery	  	 :
	  	 1 set of M.A.N.-B&W
                    
 Type Diesel
Engine
 Max. continuous output

            x 89.0 R.P.M.

Continuous service output

            x 81.1 R.P.M.

(75.6% M.C.O.)

				
		  	Deadweight, guaranteed	  	 :
	  	 not less than 81,582 Metric Tons, on 14.40 M full loaded draft moulded in sea water of specific gravity of 1.025.

				
		  	Trial speed, guaranteed	  	 :
	  	 not less than 14.90 Knots, at Continuous Service Output of              of Main Engine
under about 48,000 metric tons displacement condition, with clean bottom under deep water and calm sea with no wind.

				
		  	Fuel consumption, guaranteed	  	 :
	  	 not more than              gr/kW/hr, at Continuous Service Output of
             at the shop trial with fuel oil having lower calorific value of 42.7 MJ/kg under the I.S.O. condition.

  
 2 

 The details of the above particulars as well as the definitions and method of measurements and
calculations are as indicated in the Specifications. 
 3. CLASSIFICATION, RULES AND REGULATIONS 

The VESSEL, including its machinery, equipment and outfitting shall be constructed in accordance with the rules (the edition
and amendments thereto being in force as of the date of this Contract) of and under special survey of                      (hereinafter called the
“Classification Society”) and shall be distinguished in the register by the symbol of                         
Strengthened for heavy cargo loading where holds Nos. 2, 4 & 6 may be empty. 
 Decisions of the Classification Society
as to compliance or non-compliance with the classification shall be final and binding upon the parties hereto. 
 The VESSEL
shall also comply with the rules, regulations and requirements of other regulatory bodies as described in the Specifications in effect as of the date of this Contract. 

All fees and charges incidental to the classification and with respect to compliance with the above referred rules, regulations
and requirements shall be for account of the BUILDER. 
 4. SUBCONTRACTING 

The BUILDER may, at its sole discretion and responsibility, subcontract any portion of the construction work of the VESSEL.

 5. REGISTRATION 

The VESSEL shall be registered by the BUYER at its own cost and expense under the laws of the Republic of Panama with its home
port of Panama at the time of its delivery and acceptance hereunder. 
 (End of
Article)             

  
 3 

 ARTICLE II - CONTRACT PR ICE AND TERMS OF PAYMENT 

1.   CONTRACT PRICE 

The purchase price of the VESSEL is United States Dollars 

net receivable by the BUILDER ( hereinafter called the “Contract Price” ), which is exclusive of the BUYER’s
supplies as provided in ARTICLE XVII and shall be subject to upward or downward adjustment, if any, as hereinafter set forth in this Contract. 

2.   CURRENCY 

Any and all payments by the BUYER to the BUILDER under this Contract shall be made in United States Dollars. 

Banking charges including lifting charge, if any, shall be borne by the BUYER, but any charge made by the BUILDER’s bank
is to be for the account of the BUILDER. 
 3.   TERMS OF PAYMENT 

The Contract Price shall be paid by the BUYER to the BUILDER in Five (5) installments as follows; 

  (a) 1st Installment : 

  The sum of United States Dollars 

shall be paid in cash upon signing of this Contract 

  (b) 2nd Installment : 

  The sum of United States Dollars 

shall be paid in cash within one (1) year after execution of this Contract. 

  (c) 3rd Installment : 

  The sum of United States Dollars 

shall be paid in cash upon keel-laying of the VESSEL. 

(d) 4th Installment : 

  The sum of United States Dollars 

shall be paid in cash upon launching of the VESSEL. 

  (e) 5th Installment : 

  The sum of United States Dollars 

plus any increase or minus any decrease due to adjustments of the Contract Price hereunder, shall be paid in cash upon
delivery of the VESSEL. 

  
 4 

 4.   METHOD OF PAYMENT 

    (a) 1st Installment: 

The BUYER shall remit on or before
                        ,          by telegraphic transfer the amount of said Installment
to the Nominated Bank for account of the BUILDER after above mentioned signing of this Contract 
     (b) 2nd
Installment : 
 The BUYER shall remit within one (1) business earlier day of following year than the date of this
Contract by telegraphic transfer the amount of said Installment to the Nominated Bank for account of the BUILDER. 

    (c) 3rd Installment : 

The BUYER shall remit within three (3) business days by telegraphic transfer the amount of said Installment to the
Nominated Bank for account of the BUILDER after receipt of FAX or e-mail notice from the BUILDER confirming keel-laying of the VESSEL. 

    (d) 4th Installment : 

The BUYER shall remit within three (3) business days by telegraphic transfer the amount of said installment to the
Nominated Bank for account of the BUILDER after receipt of FAX or e-mail notice from the BUILDER confirming launching of the VESSEL. 

    (e) 5th Installment : 

Not later than three (3) business day prior to the date that the Vessel is ready for delivery on the part of the BUILDER,
the BUYER shall deposit cash in the Bank for the account of the BUILDER, covering the said installment as adjusted. 
 Such
payment shall be available and releasable to the BUILDER against presentation by the BUILDER to the Bank of a copy of Protocol of Delivery and Acceptance duly and mutually signed by the BUYER and the BUILDER as set forth in the Paragraph 3 of the
Article VII hereof . 
 No payment under this Contract shall be delayed or withheld by the BUYER on account of any dispute
or disagreement of whatever nature arising between the parties hereto. 
 5.   PREPAYMENT 

Prepayment of any Installment due on or before delivery of the VESSEL shall be subject to mutual agreement between the parties
hereto. 
 6.   SPECIAL CONDITIONS 

The terms “business day” as used in this Contract shall be defined as any day except Saturday, Sunday and legal bank
holidays in China, Taiwan and Japan. On the other hand “day” as used in this Contract shall be defined as a day of all days including Saturday, Sunday and a legal bank holidays. 

(End of Article)             

  
 5 

 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 that any reduction of the Contract Price is by way of liquidated damages and not by way of penalty): 
 1.
  DELIVERY  
  

	 	(a)	 No adjustment shall he made and the Contract Price shall remain unchanged for the first thirty (30) days of delay in delivery of the VESSEL
beyond the Delivery Date as defined in ARTICLE VII hereof (ending as of twelve o’clock midnight of the thirtieth (30th) day of delay). 

  

	 	(b)	 If the delivery of the VESSEL is delayed more than thirty (30) days after the Delivery Date, then, in such event, beginning at twelve
o’clock midnight of the thirtieth (30th) day after the date on which the delivery is required under this Contract, the Contract Price shall be reduced by deducting therefrom the sum of United States Dollars
                                         
                            for each day thereafter. 

However, the total reduction in the Contract Price shall not be more than United States Dollars
                                         
                                as would be the case for delay of one hundred twenty
(120) days, counting from midnight of the thirtieth (30th) day after the Delivery Date. 
  

	 	(c)	 But, if the delay in delivery of the VESSEL should continue for a period of one hundred twenty (120) days from the thirty-first
(31st) day after the Delivery Date, then in such event, and after such period has expired, the BUYER may at its option rescind this Contract in accordance with the provisions of ARTICLE X hereof. The BUILDER may, at any time after the
expiration of the aforementioned one hundred Twenty (120) days of delay in delivery, if the BUYER has not served notice of rescission as provided in ARTICLE X hereof, demand in writing that the BUYER shall make an election, in which case the
BUYER shall, within fifteen (15) days after such demand is received by the BUYER, notify the BUILDER of its intention either to rescind this Contract or to consent to the acceptance of the VESSEL at an agreed future date; it being understood by
the parties hereto that, if the VESSEL is not delivered by such future date, the BUYER shall have the same right of rescission upon the same terms and conditions as herein above 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 Delivery Date by reason of permissible delays as defined in ARTICLE VIII and/or any other reasons under this Contract, is not delivered by the date upon which delivery is required under the terms of this Contract.

  
 6 

 2.   SPEED 

 

	 	(a)	 The Contract Price shall not be affected or changed by reason of the actual speed, as determined by the trial runs, being less than three-tenths
(3/10ths) of one (1) knot below the guaranteed speed the VESSEL. 

  

	 	(b)	 However, in the event of deficiency in actual speed as determined by trial runs being more than three-tenths (3/10ths) of one (1) knot
below the aforementioned guaranteed speed of the VESSEL, the Contract Price shall be reduced for such deficiency in speed, by the following amount: 

by US$ 

by US$ 

by US$ 

by US$ 

by US$ 

by US$ 

by US$ 

by US$ 
  

	 	(c)	 If the deficiency in actual speed of the VESSEL upon trial run is more than one (1) full knot below the guaranteed speed of the VESSEL, then
the BUYER may, at its option, reject the VESSEL and rescind this Contract in accordance with the provisions of ARTICLE X hereof, or may accept the VESSEL at a reduction in the Contract Price, as above provided for one (1) full knot only, that
is, a total reduction of United States Dollars being the maximum. 

 3.   FUEL CONSUMPTION 

 

	 	(a)	 The Contract Price shall not be affected or changed by reason of the fuel consumption of the VESSEL, as determined by shop trial as per the
Specifications, being more than the guaranteed fuel consumption of the VESSEL, if such excess is not more than six percent (6%) over the guaranteed fuel consumption. 

 

	 	(b)	 However, commencing with and including an excess of six percent (6%) in the actual fuel consumption over the guaranteed fuel consumption of
the VESSEL, the Contract Price shall be reduced by the following amount, up to a maximum of ten percent (10%) over the guaranteed fuel consumption of the VESSEL: 

by US$             for 6% less than 7% 

by US$             for 7% less than 8% 

by US$             for 8% less than 9% 

by US$             for 9% less than 10% 

by US$             for 10% 

  
 7 

	 	(c)	 If such actual fuel consumption exceeds ten percent (10%) of the guaranteed fuel consumption of the VESSEL, the BUYER may, at its option,
reject the VESSEL and rescind this Contract in accordance with the provisions of ARTICLE X hereof, or may accept the VESSEL at a reduction in the Contract Price as above specified for ten percent (10%) only, that is, at a total reduction of
United States Dollars 

 4. DEADWEIGHT 

In the event that the actual deadweight tonnage of the VESSEL is less than the Guaranteed Deadweight, and if such deficiency
exceeds Eight Hundred Twenty (820) metric tons, the Contract Price of the VESSEL shall be reduced for each full metric ton (but disregarding fraction of a metric ton) of such decreased deadweight in excess of the said Eight Hundred Twenty
(820) metric tons, by the amount of United States Dollars only per metric ton. 
 If the deficiency in the actual
deadweight tonnage of the VESSEL exceeds Two Thousand Four Hundred Sixty (2,460) metric tons below the Guaranteed Deadweight of the VESSEL, then the BUYER, at its option, may reject the VESSEL and rescind this Contract or may accept the VESSEL
at a total reduction of United States Dollars 
 5. EFFECT OF RESCISSION 

It is expressly understood and agreed by the parties hereto that in any case, if the BUYER rescinds this Contract under this
Article, the BUYER shall not be entitled to any liquidated damages. 
 (End of
Article)             

  
 8 

 ARTICLE IV - APPROVAL OF PLANS AND DRAWINGS 

AND INSPECTION DURING CONSTRUCTION 

1. APPOINTMENT OF BUYER’S REPRESENTATIVE 

The BUYER shall, at the BUYER’s own cost and expense (including accommodation and meal fee), send to the SHIPYARD, the
BUYER’s Representative (hereinafter called the “Representative”), who shall act on behalf of the BUYER with Full authorization for approval of plans and drawings and inspections during construction of the Vessel. 

2. APPROVAL OF PLANS AND DRAWINGS 

	 	(a)	 The BUILDER shall submit to the Representative two (2) copies each of the plans and drawings for its approval. The Representative shall,
within twenty one (21) days after receipt thereof, send such approval or comments, if any, to the BUILDER by e-mail or fax or by other convenient written means if electric transmission is not acceptable. 

	 	(b)	 When and if the Representative shall have been sent by the BUYER to the SHIPYARD in accordance with Paragraph 1 of this Article after stage of
Steel Cutting, the BUILDER may submit the remainder, if any, of the plans and drawings in the agreed list, and all corrections, to the Representative for his approval unless otherwise agreed upon between the parties hereto. 

The Representative shall, within fourteen (14) days after receipt thereof, send such approval or comments, if any, to the
BUILDER by e-mail or fax or by other convenient written means if electric transmission is not practicable. 

	 	(c)	 In the event that the Representative shall fail to return the plans and drawings to the BUILDER within the time limit as hereinabove provided such
plans and drawings shall be deemed to have been automatically approved without any comment. It is understood that a notice by e-mail or fax accompanied with the airway bill number from the Representative within the said time limit that the plans and
drawings have been sent shall prevent the BUILDER from relying on this paragraph. 

 3. INSPECTION BY REPRESENTATIVE  

Such necessary inspections of the VESSEL its machinery, equipment and outfitting shall be carried out by the Classification
Society, other regulatory bodies and/or an inspection team of the BUILDER throughout the entire period of construction, in order to ensure that the construction of the VESSEL is duly performed in accordance with this Contract and the Specifications.

 Performance Standard for Protective Coating (PSPC) for ballast tanks required by IMO shall be applied to the VESSEL.
Inspections thereto shall be carried out by the BUILDER’s qualified inspectors and be recorded in the Coating Technical File (CTF). Paint Maker’s inspector shall also attend such inspections. No applications for inspection shall be made to
the 

  
 9 

 
Representative. However, the schedule of the inspections shall be notified to the Representative well in advance and the Representative shall be given a free access to the inspections. If any
queries on quality criteria or procedures of inspection required by IMO PSPC, then the Representative can make comments for discussion with the BUILDER’s qualified inspectors. In any event, the BUILDER’s qualified inspectors shall be
solely responsible for final judgment as to compliance with IMO PSPC of which judgment shall bind upon all the parties concerned. 
 The
Representative shall have, during construction of the vessel, the right to attend such tests and inspections of the VESSEL, its machinery and equipment as are mutually agreed between the BUYER and the BUILDER, without any disturbance in the
inspection and/or the construction schedule of the VESSEL The BUILDER shall give a notice to the Representative reasonably in advance of the date and place of such tests and inspections to be mutually agreed between the parties for attendance of
Representative. Failure of the Representative to be present at such tests and inspections after due notice of them as above provided shall be deemed to be a waiver of their right to be present. 

In the event that the Representative discovers any construction or material or workmanship which is not deemed to conform to
the requirements of this Contract and/or the Specifications, the Representative shall promptly give the BUILDER a notice in writing as to non-conformity. Upon receipt of such notice from the Representative, the BUILDER shall correct such
non-conformity, if the BUILDER agrees to their view or the BUILDER shall notify the Representative in writing of the extent to which the BUILDER does not agree such conditions requiring corrective measures. 

In all working hours during the construction of the VESSEL until delivery thereof, the Representative shall be given free and ready access to
the VESSEL, its engines and accessories, and to any other place in the SHIPYARD where work is being done, or materials are being processed or stored, in connection with the construction of the VESSEL, including the yards, workshops and stores of the
BUILDER and the premises of subcontractors of the BUILDER with prior consent of the SHIPYARD, which not be unreasonably withheld, who are doing work or storing materials in connection with the VESSEL’s construction. 

4. FACILITIES 

The BUILDER shall furnish the Representative with adequate office space, and such other reasonable facilities according to the
BUILDER’s practice at, or in the vicinity of, the SHIPYARD as may be necessary to enable them to effectively carry out their duties. 

With an ample prior notice by the BUYER, the BUILDER shall assist them to find suitable and convenient living quarters for the
Representative nearest possible to the SHIPYARD which living quarters shall be provided for the period stipulated herein at the BUYER’s expense and responsibility. 

  
 10 

 5. LIABILITY OF THE BUILDER 

The Representative shall at all times be deemed to be the employees of the BUYER and not of the BUILDER. 

The BUILDER shall not be under any liability whatsoever to the BUYER, the Representative for personal injuries, including
death, suffered during the time when he or they are 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 a gross negligence of the BUILDER, or of any of its employees or agents or subcontractors. 

The BUILDER shall not be under any liability whatsoever to the BUYER, the Representative for damage to, or loss or destruction
of property of the BUYER or of the Representative, unless such damage, loss or destruction were caused by a gross negligence of the BUILDER or of any of its employees or agents or subcontractors. 

6. RESPONSIBILITY OF BUYER 

The BUYER shall undertake and assure that the Representative shall carry out his duties hereunder in accordance with normal
shipbuilding practice of the BUILDER and in such a way as to avoid any unnecessary increase in building cost, delay in the construction of the VESSEL, and/or any disturbance in the construction schedule of the BUILDER. 

The BUILDER has the right to request the BUYER to replace the Representative who is deemed unsuitable and unsatisfactory for
the proper progress of the VESSEL’s construction. The BUYER shall investigate the situation by sending its representative(s) to the SHIPYARD if necessary, and if the BUYER considers that such BUILDER’s request is justified, the BUYER shall
effect such replacement as soon as conveniently arrangeable. 
 (End of Article)     

  
 11 

 ARTICLE V - MODIFICATIONS 

1. MODIFICATIONS OF SPECIFICATIONS 

The BUYER understands and pays the respect for the BUILDER’s policy and intention about the design of the VESSEL which is
one of the series of the BUILDER’s standard vessels as provided in ARTICLE I. 
 Therefore, the BUYER shall basically
not request any alternatives and/or modifications to the Specifications during the construction and prior to delivery and acceptance of the VESSEL except some modifications listed in Option List on the Specification. 

The Specification may be modified and/or changed only within Option List by written agreement of the parties hereto, provided
that such modifications and/or change or an accumulation thereof will not, in the BUILDER’s judgment, adversely affect the BUILDER’s planning or program in relation to the BUILDER’s other commitments, and provided, further, that the
BUYER shall first agree, before such modifications and/or changes are carried out, to alterations in the Contract Price, the Delivery Date and other terms and conditions of this Contract and Specifications occasioned by or resulting from such
modifications and/or changes. 
 Such agreement may be effected by exchange of letters signed by the authorized
representatives of the parties hereto or by a telex or a fax confirmed by such letters manifesting agreements of the parties hereto which shall constitute amendments to this Contract and/or the Specifications. The BUILDER may make minor changes to
the Specifications, if found necessary for introduction of improved production methods or otherwise, provided that the BUILDER shall first obtain the BUYER’s approval which shall not be unreasonably withheld. 

2. CHANGE IN CLASS, ETC. 

In the event that, after the date of this Contract, any requirements as to class, or as to rules and regulations to which the
construction of the VESSEL is required to conform according to Paragraph 3 of Article I hereof are altered or changed by the Classification Society or the other regulatory bodies authorized to make such alterations or changes, the following
provisions shall apply : 
  

	 	(a)	 If such alterations or changes are compulsory for the VESSEL, either of the parties hereto, upon receipt of such information from the
Classification Society or such other regulatory bodies, shall promptly transmit the same to the other in writing, and the BUILDER shall thereupon incorporate such alterations or changes into the construction of the VESSEL, provided that the BUYER
shall first agree to adjustments required by the BUILDER in the Contract Price, the Delivery Date and other terms and conditions of this Contract and the Specifications occasioned by or resulting from such alterations or changes.

  
 12 

	 	(b)	 If such alterations or changes are not compulsory for the VESSEL, but the BUYER desires to incorporate such alterations or changes into the
construction of the VESSEL, then, the BUYER shall notify the BUILDER of such intention. The BUILDER may accept such alterations or changes, provided that such alterations or changes will not, in the judgement of the BUILDER, adversely affect the
BUILDER’s planning or program in relation to the BUILDER’s other commitments, and provided, further, that the BUYER shall first agree to adjustments required by the BUILDER in the Contract Price, the Delivery Date and other terms and
conditions of this Contract and the Specifications occasioned by or resulting from such alterations or changes. 

Agreements as to such alterations or changes under this Paragraph shall be made in the same manner as provided in Paragraph 1
of this Article for modifications or changes to the Specifications. 
 3. SUBSTITUTION OF MATERIALS  

In the event that any of the materials required by the Specifications or otherwise under this Contract for the construction of
the VESSEL cannot be procured in time or are in short supply to maintain the Delivery Date of the VESSEL, the BUILDER may, provided that the BUYER shall so agree in writing, supply other materials capable of meeting the requirements of the
Classification Society and of the rules, regulations and requirements with which the construction of the VESSEL must comply. Any agreement as to such substitution of materials shall be effected in the manner provided in Paragraph 1 of this Article,
and shall, likewise, include alterations in the Contract Price and other terms and conditions of this Contract occasioned by or resulting from such substitution. 

(End of Article)             

  
 13 

 ARTICLE VI - TRIALS 

1. NOTICE 

The BUYER and the Representative shall receive from the BUILDER at least fourteen (14) days prior notice in writing or by
fax of the time and place of the trial run of the VESSEL, and the BUYER shall promptly acknowledge receipt of such notice. 

The BUYER shall have its representative on board the VESSEL to witness such trial run. Failure in attendance of the
representative of the BUYER at the trial run of the VESSEL for any reason whatsoever after due notice to the BUYER as above provided shall be deemed to be a waiver by the BUYER of its right to have its representative on board the VESSEL at the trial
run, and the BUILDER may conduct the trial run without the representative of the BUYER being present, and in such case the BUYER shall be obligated to accept the VESSEL on the basis of a result of sea trial issued by the BUILDER and duly signed by
the Classification Society’s surveyor as a witness. 
 2. WEATHER CONDITION 

The trial run shall be carried out under the weather condition which is deemed favorable enough by the judgement of the
BUILDER with the BUYER’s representative’s consent. In the event of unfavorable weather on the date specified for the trial run, the same shall take place on the first available day thereafter that the weather condition permits. It is
agreed that, if during the trial run of the VESSEL, the weather should suddenly become so unfavorable that orderly conduct of the trial run can no longer be continued, the trial run shall be discontinued and postponed until the first favorable day
next following, unless the BUYER shall assent in writing the acceptance of the VESSEL on the basis of the trial run already made before such discontinuance has occurred. 

Any delay of trial run caused by such unfavorable weather condition shall operate to postpone the Delivery Date by the period
of delay involved and such delay shall be deemed as a permissible delay in the delivery of the VESSEL. 
 3. HOW CONDUCTED 

 

	 	(a)	 All expenses in connection with the trial run are to be for the account of the BUILDER and the BUILDER shall provide at its own expense the
necessary crew to comply with conditions of safe navigation. The trial run shall be conducted in the manner prescribed in the Specifications, and shall prove fulfillment of the performance requirements for the trial run as set forth in the
Specifications. The course of trial run shall be determined by the BUILDER. 

  
 14 

	 	(b)	 Notwithstanding the foregoing lubricating oil and grease necessary for the trial run of the VESSEL shall be supplied by the BUYER at the SHIPYARD
prior to the time of trial run and the BUILDER shall pay the BUYER upon delivery of the VESSEL the cost of the quantities of lubricating oil and grease consumed during the trial run at the original purchase price. In measuring the consumed quantity,
lubricating oil and grease remaining in the main engine, other machinery and their pipes, stern tube and the like, shall be excluded. The quantity of lubricating oil and grease supplied by the BUYER shall be in accordance with the instruction of the
BUILDER. 

 4. METHOD OF ACCEPTANCE OR REJECTION  

 

	 	(a)	 Upon completion of the trial run, the BUILDER shall give the BUYER a notice by fax confirmed in writing of completion of the trial run, as and if
the BUILDER considers that the results of the trial run indicate conformity of the VESSEL to this Contract and the Specifications. The BUYER shall, within three (3) business days after receipt of such notice from the BUILDER, notify the BUILDER
by fax confirmed in writing of its acceptance of, or rejection of the VESSEL together with the reason thereof. 

  

	 	(b)	 However, should the results of the trial run indicate that the VESSEL, or any part thereof including its equipment fails to meet the full
requirements of this Contract and the Specifications, then the BUILDER shall investigate with the representative the cause of failure and the proper steps to be taken to remedy the same and shall make whatever corrections and alterations and/or
retrial as may be necessary, and upon notification by the BUILDER of completion of such alterations or corrections and/or retrial, the BUYER shall, within three (3) business days thereafter, notify the BUILDER by fax confirmed in writing of
acceptance of the VESSEL or of the rejections of the VESSEL together with the reason therefore on the basis of the alterations and corrections and/or retrial by the BUILDER. 

 

	 	(c)	 In the event that the BUYER fails to notify the BUILDER by fax confirmed in writing of the acceptance of or the rejection together with the reason
therefore of the VESSEL within the period as provided in the above Sub-paragraph (a) or (b), the BUYER shall be deemed to have accepted the VESSEL. 

  

	 	(d)	 The BUILDER may dispute the rejection of the VESSEL by the BUYER under this Paragraph, in which case the matter shall be submitted for final
decision by arbitration in accordance with Article XIII hereof. 

  
 15 

 5. EFFECT OF ACCEPTANCE 

Acceptance of the VESSEL as above provided shall be final and binding so far as conformity of the VESSEL to this Contract and
the Specifications is concerned and shall preclude the BUYER from refusing formal delivery of the VESSEL, as hereinafter provided, if the BUILDER comply with all other procedural requirements for delivery as provided in Article VII hereof. 

6. DISPOSITION OF SURPLUS CONSUMABLE STORES 

Should any consumable stores furnished by the BUILDER for the trial run remain on board the VESSEL at the time of acceptance
thereof by the BUYER, the BUYER agrees to buy the same from the BUILDER at the original purchase price thereof, and payment by the BUYER shall be effected upon delivery of the VESSEL. 

(End of Article)             

  
 16 

 ARTICLE VII - DELIVERY 

1. TIME AND PLACE 

The VESSEL shall be delivered by the BUILDER to the BUYER at the SHIPYARD on or before
                     except that, in the event of delay in the construction of the VESSEL or any performance required under this Contract due to
causes which under the terms of this Contract permit postponement of the date for delivery, the aforementioned date for delivery of the VESSEL shall be postponed accordingly. The aforementioned date, or such later date to which the requirement of
delivery is postponed pursuant to such terms, is herein called the “Delivery Date”. 
 2. WHEN AND HOW EFFECTED 

Provided that the BUYER shall have fulfilled all of its obligations stipulated under this Contract, 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 BUILDER and acceptance thereof by the BUYER. 

3. DOCUMENTS TO BE DELIVERED TO BUYER 

Upon delivery and acceptance of the VESSEL, the BUILDER shall deliver to the BUYER the following documents, which shall
accompany the PROTOCOL OF DELIVERY AND ACCEPTANCE : 
  

	 	(a)	 PROTOCOL OF TRIALS of the VESSEL made 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 referred to under Paragraph 3 (b) of Article VI hereof, including the original purchase price thereof.

	 	(d)	 ALL CERTIFICATES including the BUILDER’S CERTIFICATE, required to be furnished upon delivery of the VESSEL pursuant to this Contract and the
Specifications. It is agreed that if, through no fault on the part of 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. 

  
 17 

	 	(e)	 DECLARATION OF WARRANTY of 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 the Chinese Governmental authorities, as well as of all liabilities of the
BUILDER to its subcontractor, employees and crew, and of all liabilities arising from the operation of the VESSEL in trial runs, or otherwise, prior to delivery. 

	 	(f)	 DRAWINGS AND PLANS pertaining to the VESSEL as stipulated in the Specifications. 

	 	(g)	 COMMERCIAL INVOICE 

	 	(h)	 BILL OF SALE 

 4.
TENDER OF VESSEL 
 If the BUYER fails to take delivery of the VESSEL after completion thereof according to this
Contract and the Specifications without any justifiable reason, the BUILDER shall have the right to tender delivery of the VESSEL after compliance with all procedural requirements as above provided. 

5. TITLE AND RISK 

Title to and risk of loss of the VESSEL shall pass to the BUYER only upon delivery and acceptance thereof having been
completed as stated above; it being expressly understood that, until such delivery is effected, title to and risk of loss of the VESSEL and her equipment shall be in the BUILDER excepting risks of war, earthquakes and tidal waves. 

6. 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 including Saturday, Sunday and Holiday in Japan 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 pay to the BUILDER the reasonable mooring charges of the VESSEL. 
 (End of
Article)             

  
 18 

 ARTICLE VIII - DELAYS AND EXTENSION OF TIME 

FOR DELIVERY (FORCE MAJEURE) 

1. CAUSES OF DELAY 

If, at any time before the actual delivery, either the construction of the VESSEL or any performance required as prerequisite
of delivery of the VESSEL is delayed due to Acts of God; acts of princes or rulers; requirement of government authorities; war or other hostilities or preparations therefore; blockade; revolution, insurrections, mobilization, civil war, civil
commotion or riots; vandalism; sabotages, strikes, lockouts or other labor disturbances; plague or other epidemics; quarantines; flood; typhoons, hurricanes, storms or other weather conditions not included in normal planning; earthquakes; tidal
waves; landslides; fires, explosions, collisions or strandings; embargoes; import restrictions, inability to obtain delivery or delays in delivery of materials, machinery or equipment, provided that at the time of ordering the same could reasonably
be expected by the BUILDER to be delivered in the time; prolonged failure, shortage or restriction of electric current, oil or gas; defects in materials, machinery or equipment which could not have been defected by the BUILDER using reasonable care;
casting or foregoing rejects or the like not due to negligence, delays caused by the Classification Society or other bodies whose documents are required; destruction of or damage to the SHIPYARD or works of the BUILDER, its subcontractors or
suppliers, or of or to the VESSEL or any part thereof, by any causes herein described; 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; other causes or accidents beyond control of the BUILDER, its subcontractors or suppliers of the nature indicated by the foregoing words; then and in any such case, the Delivery Date shall be postponed for a period of
time which shall not exceed the total accumulated time of all such delays. 
 2. NOTICE OF DELAY 

Within ten (10) days after the date of occurrence of any cause of delay, on account of which the BUILDER claims that it
is entitled under this Contract to a postponement of the Delivery Date, the BUILDER shall notify the BUYER in writing or by fax confirmed in writing of the date such cause of delay occurred. Likewise, within ten (10) days after the date of
ending of such cause of delay, the BUILDER shall notify the BUYER in writing or by fax confirmed in writing of the date such cause of delay ended. The BUILDER shall also notify the BUYER of the period, by which the Delivery Date is postponed by
reason of such cause of the delay, with all reasonable dispatch after it has been determined. Failure of the BUYER to object to the BUILDER’s claim for postponement of the Delivery Date within ten (10) days after receipt by the BUYER of
such notice of claim shall be deemed to be a waiver by the BUYER of its right to object such postponement of the Delivery Date. 

  
 19 

 3. DEFINITION OF PERMISSIBLE DELAY 

Delays on account of such causes as specified in Paragraph 1 of this Article and any other delays of a nature which under the
terms of this Contract permits postponement of the Delivery Date 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 for in
Article III hereof. 
 4. RIGHT TO RESCIND FOR EXCESSIVE DELAY 

If the total accumulated time of all delays on account of the causes specified in Paragraph 1 of this Article, amounts to one
hundred eighty (180) days or more, then, in such event, the BUYER may rescind this Contract in accordance with the provisions of Article X hereof. The BUILDER may, at anytime after the accumulated time of the aforementioned delays justifying
rescission by the BUYER, demand in writing that the BUYER shall make an election, in which case the BUYER shall, within twenty (20) days after such demand is received by the BUYER, either notify the BUILDER of its intention to rescind this
Contract or consent to a postponement of the Delivery Date to a specific future date; 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 same right of rescission upon the same terms as herein above provided. 
 (End of
Article)             

  
 20 

 ARTICLE IX - WARRANTY OF QUALITY 

1. GUARANTEE 

Subject to the provisions hereinafter set forth, the BUILDER undertakes to remedy, free of charge to the BUYER, any defects in
the VESSEL which are due to defective material and/or bad workmanship on the part of the BUILDER and/or its subcontractors, provided that the defects are discovered within a period of
                     months after the date of delivery of the VESSEL and a notice thereof is duly given to the BUILDER as hereinafter provided. 

For the purpose of this Article, the VESSEL shall include her hull, machinery, equipment and gear, but excludes any parts for
the VESSEL which have been supplied by or on behalf of the BUYER. 
 2. NOTICE OF DEFECTS 

The BUYER shall notify the BUILDER in writing, or by fax or E-mail confirmed in writing, of any defects for which claim is
made under this guarantee as promptly as possible after discovery thereof. The BUYER’s written notice shall describe the nature and extent of the defects. The BUILDER shall have no obligation for any defects discovered prior to the expiry date
of the said                      months period, unless notice of such defects is received by the BUILDER not later than thirty (30) days after
such expiry date. 
 3. REMEDY OF DEFECTS 
  

	 	(a)	 The BUILDER shall remedy, at its expense, any defects, against which the VESSEL is guaranteed under this Article, by making all necessary repairs
or replacements at the SHIPYARD. 

  

	 	(b)	 However, if it is impractical to bring the VESSEL to the SHIPYARD, the BUYER may cause the necessary repairs or replacements to be made elsewhere
which is deemed suitable for the purpose, provided that, in such event, the BUILDER may forward or supply replacement parts or materials to the VESSEL, unless forwarding or supplying thereof to the VESSEL would impair or delay the operation or
working schedule of the VESSEL. In the event the BUYER proposes to cause the necessary repairs or replacements to be made to the VESSEL at any other SHIPYARD or works than the SHIPYARD, the BUYER shall first, but in all events as soon as possible,
give the BUILDER notice in writing or by fax or E-mail confirmed in writing of the time and place such repairs will be made, and if the VESSEL is not thereby delayed, or her operation or working schedule is not thereby impaired, the BUILDER shall
have the right to verify by its own representative(s) the nature and extents of the defects complained of. The BUILDER shall, in such case, promptly advise the BUYER by fax or E-mail, after such examination has been completed, of its acceptance or
rejection of the defects as ones that are covered by the guarantee herein provided. Upon the BUILDER’s acceptance of the defects as justifying 

  
 21 

	 	 
remedy under this Article, or upon award of the arbitration so determining, the BUILDER shall immediately pay to the BUYER for such repairs or replacements a sum equal to the reasonable cost of
making the same repairs or replacements in the SHIPYARD. 

  

	 	(c)	 In any case, the VESSEL shall be taken at the BUYER’s cost and responsibility to the place elected, ready in all respects for such repairs or
replacements. 

  

	 	(d)	 Any dispute under this Article shall be referred to arbitration in accordance with the provisions of Article XIII hereof. 

4. EXTENT OF BUILDER’S RESPONSIBILITY 
  

	 	(a)	 The BUILDER shall have no responsibility or liability for any other defects whatsoever in the VESSEL than the defects specified in Paragraph 1 of
this Article. The BUILDER shall not in any circumstances be responsible or liable for any consequential or special losses, damages or expenses including, but not limited to, loss of time, loss of profit or earning or demurrage directly or indirectly
occasioned to the BUYER by reason of the defects specified in Paragraph 1 of this Article or due to repairs or other works done to the VESSEL to remedy such defects. 

 

	 	(b)	 The BUILDER shall not be responsible for any defects in any part of the VESSEL which may subsequently to delivery of the VESSEL have been replaced
or in any way repaired by any other contractor, or for any defects which have been caused or aggravated by omission or improper use and maintenance of the VESSEL on the part of the BUYER, its servants or agents or by ordinary wear and tear or by any
other circumstances whatsoever beyond the control of the BUILDER. 

  

	 	(c)	 The guarantee contained as herein above in this Article replaces and excludes any other liability, guarantee, warranty and/or condition imposed or
implied by the law, customary, statutory or otherwise, by reason of the construction and sale of the VESSEL by the BUILDER for and to the BUYER. 

(End of Article)             

  
 22 

 ARTICLE X - RESCISSION BY BUYER 

1. NOTICE 
 The payments
made by the BUYER prior to the delivery of the VESSEL shall be in the nature of advances to the BUILDER. 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
specifically permitting the BUYER to do so, then the BUYER shall notify the BUILDER in writing or by fax or E-mail confirmed in writing, and such rescission shall be effective as of the date notice thereof is received by the BUILDER. 

2. REFUND BY BUILDER 

Thereupon the BUILDER shall promptly refund to the BUYER the full amount of all sums paid by the BUYER to the BUILDER on
account of the VESSEL, unless the BUILDER proceeds to the arbitration under the provisions of Article XIII hereof. (in such case the BUILDER shall give a notice in writing thereof to the BUYER within 10 business days after receipt of the
BUYER’s notice of rescission of the Contract as described in the preceding paragraph). In such event, the BUILDER shall pay the BUYER interest at the rate of five percent (5%) per annum on the amount required herein to be refunded to the
BUYER, computed from the respective dates on which such sums were paid by the BUYER to the BUILDER to the date of remittance by telegraphic transfer of such refund to the BUYER by the BUILDER provided, however, that the said rescission by the BUYER
is made under the provisions of Paragraph 4 of Article. VIII hereof then in such event the BUILDER shall not be required to pay any interest. 
 3.
DISCHARGE OF OBLIGATIONS 
 Upon such refund by the BUILDER 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. 
 (End of
Article)         

  
 23 

 ARTICLE XI - BUYER’S DEFAULT 

1. DEFINITION OF BUYER’S DEFAULT 

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

  

	 	(a)	 If the BUYER fails to pay First Installment to the BUILDER on or
before                    , after such Installment becomes due and payable under the provisions of Article II hereof; or 

 

	 	(b)	 If the BUYER fails to pay Second, Installment to the BUILDER within one (1) business earlier day of following year than the date of this Contract
under the provisions of Article II hereof; or 

  

	 	(c)	 If the BUYER fails to pay Third and Fourth Installments to the BUILDER within three (3) business days, after such Installment becomes due
and payable under the provisions of Article II hereof; or 

  

	 	(d)	 If the BUYER fails to pay the Fifth Installment to the BUILDER concurrently with the delivery of the VESSEL by the BUILDER to the BUYER as
provided in Article II hereof; or 

  

	 	(e)	 If the BUYER fails to take delivery of the VESSEL, when the VESSEL is duly tendered for delivery by the BUILDER under the provisions of Article
hereof; 

 2. INTEREST AND CHARGE 

If the BUYER is in default of payment as to any Installment as provided in Paragraph 1 (a) (b) and (c) of
this Article, the BUYER shall pay interest on such Installment at five percent (5%) per annum from the due date thereof to the date of payment to the BUILDER of the full amount including interest; in case the BUYER shall fail to take delivery
of the VESSEL as provided in Paragraph 1(d) of this Article, the BUYER shall be deemed in default of payment of the Fifth Installment and shall pay interest thereon at the same rate as aforesaid from and including the day on which the VESSEL is
tendered for delivery by the BUILDER. In any event of default by the BUYER, the BUYER shall also pay all charges and expenses incurred by the BUILDER in consequence of such default. 

3. EFFECT OF DEFAULT 
  

	 	(a)	 If any default by the BUYER occurs as provided herein above, the Delivery Date shall be automatically postponed for a period of continuance of
such default by the BUYER. 

  
 24 

	 	(b)	 If any default by the BUYER continues for a period or fifteen (15) business days, the BUILDER may, at its option, rescind this Contract by giving
notice of such effect to the BUYER by fax or E-mail confirmed in writing. Upon receipt by the BUYER of such notice of rescission, this Contract shall forthwith become null and void and any of the BUYER’s
Supplies shall become the sole property of the BUILDER. In the event of such rescission of this Contract, the BUILDER shall be entitled to retain any Installment of Installments theretofore paid by the BUYER to the BUILDER on account of this
Contract. 

 4. SALE OF VESSEL 
  

	 	(a)	 In the event of rescission of this Contract as above provided, the BUILDER shall have full right and power either to complete or not to complete
the VESSEL as it deems fit, and to sell the VESSEL at a public or private sale on such terms and conditions as the BUILDER thinks fit without being answerable for any loss or damage. 

 

	 	(b)	 In the event of the sale of the VESSEL in its completed state, the proceeds of the sale received by the BUILDER shall be applied firstly to payment
of all expenses attending such sale and otherwise incurred by the BUILDER as a result of the BUYER’s default, and then to payment of all unpaid Installments of the Contract Price and interest on such Installments at the rate of five percent
(5%) per annum from the respective due dates thereof to the date of application. 

  

	 	(c)	 In the event of the sale of the VESSEL in its incompleted state, the proceeds of sale received by the BUILDER shall be applied firstly to all
expenses attending such sale and otherwise incurred by the BUILDER as a result of the BUYER’s default, and then to payment of all costs of construction of the VESSEL less the Installments so retained by the BUILDER and compensation to the
BUILDER for a reasonable loss of profit due to the rescission of this Contract. 

  

	 	(d)	 In either of the above events of the sale, if the proceeds of sale exceeds the total of amounts to which such proceeds are to be applied as
aforesaid, the BUILDER shall promptly pay the excess to the BUYER without interest, provided, however, that the amount of such payment to the BUYER shall in no event exceed the total amount of Installments already paid by the BUYER and the cost of
the BUYER’s Supplies, if any. 

  

	 	(e)	 If the proceeds of sale are insufficient to pay such total amounts payable as aforesaid, the BUYER shall promptly pay the deficiency to the BUILDER
upon request. 

 (End of Article)         

  
 25 

 ARTICLE XII - INSURANCE 

1. EXTENT OF INSURANCE COVERAGE 

From the time of keel-laying of the VESSEL until the same is completed, delivered to and accepted by the BUYER, 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 insurance companies under coverage corresponding to the Institute Clause for BUILDER’s Risks. 
 The
amount of such insurance coverage shall, up to the date of delivery of the VESSEL, be in an amount at least equal to, but not limited to, the aggregate of the payment made by the BUYER to the BUILDER including the value of the BUYER’s Supplies.

 The policy referred to herein above shall be taken out in the name of the BUILDER and all losses under such policy shall
be payable to the BUILDER. 
 If the BUYER so requests, the BUILDER shall at the BUYER’s cost procure insurance on the
VESSEL and all parts, materials, machinery and equipment intended therefor against risks of earthquake, strikes, war peril or other risks not heretofore provided and shall make all arrangements to that end. The cost of such insurance shall be
reimbursed to the BUILDER by the BUYER upon delivery of the VESSEL. 
 2. APPLICATION OF RECOVERED AMOUNT 

(a) Partial Loss: 

In the event the VESSEL 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 BUILDER shall apply the amount recovered under the insurance policy referred to in Paragraph 1 of this Article 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. 

  
 26 

 (b) Total Loss: 

However, in the event that the VESSEL is determined to be an actual or constructive total loss, the BUILDER shall, subject
to the mutual agreement between the parties hereto, either: 
  

	 	i)	 Proceed in accordance with the terms of this Contract, in which case the amount recovered under said insurance policy shall be applied to the
reconstruction and repair of the VESSEL’s damage, provided the parties hereto shall have first agreed in writing as to such reasonable postponement of the 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)	 Refund immediately to the BUYER the amount of all Installments paid to the BUILDER under this Contract without any interest whereupon this
Contract shall be deemed to 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) as above shall be applied. 
 3. TERMINATION OF BUILDER’S OBLIGATION TO
INSURE 
 The BUILDER’s obligation to insure the VESSEL hereunder shall cease and terminate forthwith upon
delivery thereof and acceptance by the BUYER. 
 (End of Article)         

  
 27 

 ARTICLE XIII - DISPUTE AND ARBITRATION 

1. PROCEEDINGS 
 In the
event of any dispute between the parties hereto as to any matter arising out of or relating to this Contract or any stipulations herein or with respect hereto which can not be settled by the parties themselves, such dispute shall he submitted to and
settled by arbitration held in Tokyo, Japan, by the Japan Shipping Exchange, Inc. (hereinafter called the “Exchange”) in accordance with the provisions of the Rules of Maritime Arbitration of the Exchange, except as hereinafter otherwise
specifically provided. 
 Either party desiring to submit such dispute to the arbitration of the Exchange shall file with the
Exchange the written Application for Arbitration, the Statement of Claim and the notice of appointment of an arbitrator accompanied by written acceptance of such arbitrator appointed by such party. 

Within twenty (20) days after receipt of such documents as aforementioned from the Exchange, the other party shall file in
turn with the Exchange the notice of appointment of an arbitrator accompanied by written acceptance of such second arbitrator appointed by the other party. 

These two (2) arbitrators shall be deemed, in performance of office of arbitration, as the arbitrators appointed by the
Maritime Arbitration Commission (hereinafter called the “Commission”) of the Exchange. 
 The third arbitrator to
preside over the proceedings shall be appointed by the Commission from among such persons on the Panel of Members of the Commission (or in case of particular need, from among persons not so impanelled) as have no concern whatever with the parties or
in the subject of such dispute. 
 The three (3) arbitrators thus appointed shall constitute the board of arbitration
(hereinafter called the “Arbitration Board”) for the settlement of such dispute. 
 In the event, however, that the
said other party should fail to appoint a second arbitrator as aforesaid within twenty (20) days following receipt of the documents concerned from the Exchange, it is agreed that the said other party shall thereby be deemed to have accepted and
appointed as its own arbitrator the one appointed by the party demanding arbitration, and the arbitration shall proceed forthwith before this sole arbitrator who alone, in such event, shall constitute the Arbitration Board. 

The award made by the sole arbitrator or by the majority of the three (3) arbitrators, as the case may be, shall be final
and binding upon the parties hereto. If the majority of the three (3) arbitrators is not obtained, then the decision of the third arbitrator shall be final and binding upon the parties hereto. 

Notwithstanding the preceding provisions of this Paragraph, it is recognized that in the event of any dispute or difference of
opinion arising in regard to the construction of the VESSEL, her machinery or equipment, or concerning the quality of materials or workmanship thereof or thereon, such dispute maybe referred to the Classification Society upon mutual agreement of the
parties hereto as far as the Classification Society agrees to determine such dispute. The decision of the Classification Society shall be final and binding upon the parties hereto. 

  
 28 

 2. NOTICE OF AWARD 

The award shall immediately be given to the BUYER and the BUILDER in writing or by fax or E-mail confirmed in writing. 

3. EXPENSES 
 The
Arbitration Board shall determine which party shall hear the expenses of the arbitration or the portion of such expenses which each party shall bear. 

4. ENTRY IN COURT 

Judgment upon the award may be entered in any court having jurisdiction thereof. 

5. ALTERATION OF 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 Delivery Date which the Arbitration Board may deem appropriate. 
 (End of
Article)         

  
 29 

 ARTICLE XIV - RIGHT OF ASSIGNMENT 

Neither of the parties hereto shall assign this Contract to a third party unless prior consent of the other party is given in
writing. 
 In case of assignment by the BUYER, such assignment shall further be subject to the approval of the relevant
governmental authority, if any, and the BUYER shall remain liable under this Contract. 
 This Contract shall ensure to the
benefit of and shall be binding upon the lawful successors or the legitimate assigns of either of parties hereto. 
 (End of
Article)         

  
 30 

 ARTICLE XV TAXES AND DUTIES 

1. TAXES AND DUTIES IN CHINA 

The BUILDER shall bear and pay all taxes and duties imposed in China in connection with execution and/or performance of this
Contract, excluding any taxes and duties imposed upon the BUYER’s Supplies. 
 2. TAXES AND DUTIES OUTSIDE CHINA 

The BUYER shall bear and pay all taxes and duties imposed outside China in connection with execution and/or performance of
this Contract, excluding any taxes and duties imposed upon those items to be procured by the BUILDER for construction of the VESSEL. 
 (End
of Article)         

  
 31 

 ARTICLE XVI - PATENTS, TRADEMARKS, 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 BUILDER shall defend and save 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 also including costs and expenses of litigation, if any. 

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 BUILDER’s
warranty hereunder does not extend to the BUYER’s Supplies. 
 2. GENERAL PLANS, SPECIFICATIONS AND WORKING DRAWINGS 

The BUILDER retains all rights with respect to the Specifications, plans and working 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 disclose the same or divulge any information contained therein to any third parties,
without the prior written consent of the BUILDER, excepting where it is necessary for usual operation, repair and maintenance of the VESSEL. 

(End of Article)         

  
 32 

 ARTICLE XVII - BUYER’S SUPPLIES 

1. RESPONSIBILITY OF BUYER 
  

	 	(a)	 The BUYER shall, at its own risk, cost and expenses, supply and deliver to the BUILDER all of the items to be furnished by the BUYER as specified
in the Specifications (hereinafter called “BUYER’s Supplies”) at warehouse or other storage of the SHIPYARD 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
representatives 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 or to make necessary adjustments thereof at the SHIPYARD.

  

	 	(c)	 Any and all of the BUYER’s Supplies shall be subject to 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 BUILDER may repair or adjust the BUYER’s Supplies without prejudice to the BUILDER’s other rights hereunder and without being responsible for
any consequences therefrom. In such case, the BUYER shall reimburse the BUILDER for all costs and expenses incurred by the BUILDER in such repair or adjustment and the Delivery Date shall be automatically postponed 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, the Delivery Date shall be extended for a period of
such delay in delivery. In such event, the BUYER shall be responsible and pay to the BUILDER for all losses and damages incurred by the BUILDER by reason of such delay in delivery of the BUYER’s Supplies and such payment shall be made upon
delivery of the VESSEL. If delay in delivery of any of the BUYER’s Supplies exceeds thirty (30) days, then, the BUILDER shall be entitled to proceed with construction of the VESSEL without installation thereof in or on the VESSEL, without
prejudice to the BUILDER’s other rights as herein above provided, and the BUYER shall accept and take delivery of the VESSEL so constructed. 

  
 33 

 2. RESPONSIBILITY OF BUILDER 

The BUILDER shall be responsible for storing and handling with reasonable care of the BUYER’s Supplies after delivery
thereof at the SHIPYARD, and shall, at its own cost and expense, install them in or on the VESSEL, unless otherwise provided herein or agreed by the parties hereto, provided, always, that the BUILDER shall not be responsible for quality, efficiency
and/or performance of any of the BUYER’s Supplies. 
 (End of Article)         

  
 34 

 ARTICLE XVIII - NOTICE 

1. ADDRESS 
 Any and
all notices and communications in connection with this Contract shall be addressed as follows: 
  

					
		  	To the BUYER:	  	
			
		  	To the BUILDER:	  	     TSUNEISHI GROUP (ZHOUSHAN) SHIPBUILDING INC.

			
		  		  	     Retiao Village, Xiushan Island, Daishan County, Zhoushan City,

      Zhejiang Province, the People’s Republic of China

 2. LANGUAGE 

Any and all notices and communications in connection with this Contract shall be written in English. 

(End of Article)         

  
 35 

 ARTICLE XIX - EFFECTIVE DATE OF CONTRACT 

This Contract shall become effective as from the date of execution hereof by the parties hereto. 

(End of Article)         

  
 36 

 ARTICLE XX - INTERPRETATION 

1. LAWS APPLICABLE 

The parties hereto agree that the validity and interpretation of this Contract and of each Article and part thereof shall be
governed by the laws of Japan. 
 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 prevail and govern. The Specifications and Plan are also intended to explain each other, and anything shown on the Plan and not stipulated in the Specifications or stipulated in the Specifications and not shown on the Plan shall be
deemed and considered as if embodied in both. In the event of conflict between the Specifications and Plan, the Specifications shall prevail and govern. 

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 subject matter of this Contract. 
 (End of
Article)         

  
 37 

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

					
	BUYER:	 		 	BUILDER:
		 		 	TSUNEISHI GROUP (ZHOUSHAN)
		 		 	SHIPBUILDING INC.
			
	   
	 		 	   

	 By    : 
	 		 	By   : 
	 Title : 
	 		 	Title : 

  
 38EX-10.10

 Exhibit 10.10 

SHIPSALES CONTRACT 
 FOR

 CONSTRUCTION AND SALE 

OF 
 ONE
(1) DEADWEIGHT 60,200 METRIC TON TYPE 
 SINGLE SCREW MOTOR BULK CARRIER 

(HULL NO.             ) 

 
 BETWEEN 

[SUBSIDIARY] 
 AS BUYER

 AND 
 SUMITOMO
CORPORATON 
 AS SELLER 

					
	 PREAMBLE
	  	 	5	  
		
	 ARTICLE I – DESCRIPTION AND CLASS
	  	 	6	  
	 1.     Description:
	  	 	6	  
	 2.     Dimension and Characteristics:
	  	 	6	  
	 3.     Classifications, Rules and Regulations:
	  	 	7	  
	 4.     Subcontracting:
	  	 	7	  
	 5.     Registration:
	  	 	7	  
		
	 ARTICLE II – CONTRACT PRICE AND TERMS OF PAYMENT
	  	 	8	  
	 1.     CONTRACT PRICE:
	  	 	8	  
	 2.     Currency:
	  	 	8	  
	 3.     Terms of Payment:
	  	 	8	  
	 4.     Method of Payment:
	  	 	9	  
		
	 ARTICLE III – ADJUSTMENT OF CONTRACT PRICE
	  	 	11	  
	 1.     Delivery:
	  	 	11	  
	 2.     Speed:
	  	 	12	  
	 3.     Fuel Consumption:
	  	 	13	  
	 4.     Deadweight:
	  	 	13	  
	 5.     Effect of Rescission:
	  	 	14	  
		
	ARTICLE IV – APPROVAL OF PLANS AND DRAWINGS AND INSPECTION DURING CONSTRUCTION	  	 	15	  
	 1.     Approval of Plans and Drawings:
	  	 	15	  
	 2.     Appointment of BUYER’s REPRESENTATIVE:
	  	 	15	  
	 3.     Inspection by REPRESENTATIVE:
	  	 	16	  
	 4.     Facilities:
	  	 	17	  
	 5.     Liability of SELLER and/or BUILDER:
	  	 	17	  
	 6.     Responsibility of BUYER:
	  	 	18	  
		
	 ARTICLE V – MODIFICATIONS
	  	 	19	  
	 1.     Modifications of SPECIFICATIONS:
	  	 	19	  
	 2.     Change in Class, etc.:
	  	 	19	  
	 3.     Substitution of Materials:
	  	 	20	  
		
	 ARTICLE VI – TRIALS
	  	 	21	  
	 1.     Notice:
	  	 	21	  
	 2.     Weather Condition:
	  	 	21	  
	 3.     How Conducted:
	  	 	21	  
	 4.     Method of Acceptance or Rejection:
	  	 	22	  
	 5.     Effect of Acceptance:
	  	 	23	  
	 6.     Disposition of Surplus Consumable Stores:
	  	 	23	  
		
	 ARTICLE VII – DELIVERY
	  	 	24	  
	 1.     Time and Place:
	  	 	24	  
	 2.     When and How Effected:
	  	 	24	  
	 3.     Documents to be Delivered to BUYER:
	  	 	24	  
	 4.     Tender of VESSEL:
	  	 	25	  
	 5.     Title and Risk:
	  	 	25	  
	 6.     Removal of VESSEL:
	  	 	26	  

  
 2 

					
		
	ARTICLE VIII – DELAYS AND EXTENSION OF TIME FOR DELIVERY (FORCE MAJEURE)	  	 	27	  
	 1.     Causes of delay:
	  	 	27	  
	 2.     Notice of delay:
	  	 	28	  
	 3.     Definition of Permissible Delay:
	  	 	28	  
	 4.     Right to Rescind for Excessive Delay:
	  	 	28	  
		
	 ARTICLE IX – WARRANTY OF QUALITY
	  	 	30	  
	 1.     Warranty:
	  	 	30	  
	 2.     Notice of Defects:
	  	 	30	  
	 3.     Remedy of Defects:
	  	 	30	  
	 4.     Extent of SELLER’s and/or the BUILDER’s Responsibility:
	  	 	31	  
		
	 ARTICLE X – RESCISSION BY BUYER
	  	 	33	  
	 1.     Notice:
	  	 	33	  
	 2.     Definition of the SELLER’s Default:
	  	 	33	  
	 3.     Refund by SELLER:
	  	 	33	  
	 4.     Discharge of Obligations:
	  	 	34	  
		
	 ARTICLE XI – BUYER’S DEFAULT
	  	 	35	  
	 1.     Definition of Default:
	  	 	35	  
	 2.     Interest and Charge:
	  	 	35	  
	 3.     Effect of Default:
	  	 	36	  
	 4.     Sale of VESSEL:
	  	 	37	  
		
	 ARTICLE XII – INSURANCE
	  	 	39	  
	 1.     Extent of Insurance Coverage:
	  	 	39	  
	 2.     Application of Recovered Amount:
	  	 	39	  
	 3.     Termination of SELLER’s Obligation to Insure:
	  	 	40	  
		
	 ARTICLE XIII – DISPUTE AND ARBITRATION
	  	 	41	  
	 1.     Proceedings:
	  	 	41	  
	 2.     Notice of Award:
	  	 	42	  
	 3.     Expenses:
	  	 	42	  
	 4.     Entry in Court:
	  	 	42	  
	 5.     Alteration of DELIVERY DATE:
	  	 	42	  
		
	 ARTICLE XIV – RIGHT OF ASSIGNMENT
	  	 	43	  
		
	 ARTICLE XV – TAXES AND DUTIES
	  	 	44	  
	 1.     Taxes and Duties in Japan:
	  	 	44	  
	 2.     Taxes and Duties outside Japan:
	  	 	44	  
		
	 ARTICLE XVI – PATENTS, TRADEMARKS, COPYRIGHTS, ETC.
	  	 	45	  
	 1.     Patents, Trademarks and Copyrights:
	  	 	45	  
	 2.     General Plans, SPECIFICATIONS and Working Drawings:
	  	 	45	  
		
	 ARTICLE XVII – BUYER’S SUPPLIES
	  	 	46	  
	 1.     Responsibility of BUYER:
	  	 	46	  
	 2.     Responsibility of SELLER:
	  	 	47	  
		
	 ARTICLE XVIII – NOTICE
	  	 	48	  
	 1.     Address:
	  	 	48	  

  
 3 

					
	 2.    Language:
	  	 	48	  
		
	 ARTICLE XIX – EFFECTIVE DATE OF CONTRACT
	  	 	49	  
		
	 ARTICLE XX – INTERPRETATION
	  	 	50	  
	 1.    Laws Applicable:
	  	 	50	  
	 2.    Discrepancies:
	  	 	50	  
	 3.    Entire Agreement:
	  	 	50	  
		
	 ARTICLE XXI – CONFIDENTIALITY
	  	 	51	  
		
	 ARTICLE XXII – COMPLIANCE AND ANTI-BRIBERY
	  	 	52	  

  
 4 

 THIS CONTRACT, made this
                    , by and between
                    , having its principal registered office at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands,
MH96960 (hereinafter called the “BUYER”), the party of the first part and guaranteed by Scorpio Bulkers Inc. (hereinafter called the “BUYER’S GUARANTOR”), and SUMITOMO CORPORATION, a corporation organized and existing under
the laws of Japan, having its principal office at 1-8-11, Harumi, Chuo-ku, Tokyo, Japan (hereinafter called the “SELLER”), the party of the second part, 

WITNESSETH: 
 In
consideration of the mutual covenants herein contained, the SELLER, subcontracting to MITSUI ENGINEERING & SHIPBUILDING CO., LTD., a corporation organized and existing under the laws of Japan, having its principal office at 6-4, Tsukiji
5-chome, Chuo-ku, Tokyo, Japan (hereinafter called the “BUILDER”) agrees to design, build, launch, equip and complete at its Chiba Works, and sell and deliver to the BUYER one (1) DEADWEIGHT 60,200 METRIC TON TYPE SINGLE SCREW MOTOR
BULK CARRIER, more fully described in Article I hereof (hereinafter called the “VESSEL”), and the BUYER agrees to purchase and take delivery of the VESSEL from the SELLER and to pay for the same, all upon the terms and conditions
hereinafter set forth. 
 The SELLER has an option to cause the BUILDER to design, build, launch, equip and complete the VESSEL at its
Tamano Works, instead of the aforesaid Chiba Works, which shall be declared to the BUYER by the SELLER not later than                     . 

Aforesaid Chiba Works or, if so declared, Tamano Works shall hereinafter be referred to as the “SHIPYARD”. 

  
 5 

 ARTICLE I – DESCRIPTION AND CLASS 

 

	1.	 Description: 

The VESSEL shall have the BUILDER’s Hull No.             and
shall be designed, constructed, equipped and completed in accordance with the provisions of this CONTRACT, and the Specification and the General Arrangement Plan of even date herewith (hereinafter collectively called the “SPECIFICATIONS”)
signed by each of the parties hereto for the VESSEL and attached hereto and made an integral part hereof. 
  

	2.	 Dimension and Characteristics: 

The VESSEL shall have the following characteristics and dimensions: 

 

			
	 Length, overall
	  	max.199.99m
	 Length, between perpendiculars
	  	193.00m
	 Breadth, moulded
	  	32.25m
	 Depth, moulded
	  	18.50m
	 Designed load draft, moulded
	  	11.20m
	 Scantling draft, moulded
	  	12.92m
	 Gross tonnage (International)
	  	abt. 35,000
	 Propelling Machinery
	  	 One (1) set of two-stroke cycle, crosshead, direct reversible, turbocharged diesel engine, Mitsui-MAN B & W
                    
 M.C.R.
             x 99min-1

N.S.R.              x
93.8min-1

	 Deadweight, guaranteed
	  	 60,106 metric tons on an even keel scantling moulded draft of 12.92 m in sea water of specific gravity of 1.025.

	 Trial Speed, guaranteed
	  	 15.2 knots on trial condition of approx. 26,700 metric tons displacement with clean bottom, deep water, no wave, no current and no wind at
             (N.S.R.) of the main engine.

	 Fuel consumption, guaranteed
	  	         g/kW/h to be determined on the official shop trial of the engine at N.S.R. of
             based on ISO reference conditions when using such diesel oil having lower calorific value of 42.7MJ/kg of fuel.

  
 6 

 The details of the above particulars as well as the definitions and method of
measurements and calculations are as indicated in the SPECIFICATIONS. 
  

	3.	 Classifications, Rules and Regulations: 

The VESSEL, including its machinery, equipment and outfitting shall be constructed in accordance with the rules (the edition
and amendments thereto being in force as of the date of this CONTRACT) of and under special survey of                      (hereinafter called the
“CLASSIFICATION SOCIETY”), and shall be distinguished in the register by the symbol of                     , however, the VESSEL’s
design to be based on                      and to be reviewed by the CLASSIFICATION SOCIETY. 

Decisions of the CLASSIFICATION SOCIETY as to compliance or non-compliance with the classification shall be final and binding
upon both parties hereto. 
 The VESSEL shall also comply with the rules, regulations and requirements of other regulatory
bodies as described in the SPECIFICATIONS in effect as of the date of this CONTRACT. 
  

	4.	 Subcontracting: 

The SELLER may, at its sole discretion and responsibility, cause the BUILDER to subcontract any portion of the construction
work of the VESSEL provided always that the SELLER shall in all circumstances remain liable for delivery of the VESSEL to the BUYER in accordance with the terms of this CONTRACT 

 

	5.	 Registration: 

The VESSEL shall be registered by the BUYER at its own cost and expense under the laws of the Republic of Marshall Islands with
its home port of Majuro, the Marshall Islands at the time of its delivery and acceptance hereunder. 
 (End of Article) 

  
 7 

 ARTICLE II – CONTRACT PRICE AND TERMS OF PAYMENT 

 

	1.	 CONTRACT PRICE: 

The purchase price of the VESSEL is United States Dollars
                    , net receivable by the SELLER (hereinafter called the “CONTRACT PRICE”), which is exclusive of the BUYER’S
SUPPLIES as provided in Article XVII hereof and shall be subject to upward or downward adjustment, if any, as hereinafter set forth in this CONTRACT. 
  

	2.	 Currency: 

Any and all payments under this CONTRACT shall be made in United States Dollars. 

 

	3.	 Terms of Payment: 

The CONTRACT PRICE shall be paid by the BUYER to the SELLER in Installments as follows: 

 

	 	(a)	 1st Installment: 

The sum of United States Dollars
                    being 40% of the CONTRACT PRICE shall be paid upon signing of this CONTRACT and receipt by the BUYER of the Corporate Refund
Guarantee in the form attached at Schedule 1 hereto. 
  

	 	(b)	 2nd Installment: 

The sum of United States Dollars
                    shall be paid one year after the EFFECTIVE DATE of this CONTRACT (hereinafter the “EFFECTIVE DATE PLUS ONE YEAR”). 

 

	 	(c)	 3rd Installment: 

The sum of United States Dollars
                    shall be paid upon seven (7) months prior to the last day of the one (1) month delivery range of the VESSEL specified
in Paragraph 1 of Article VII of the CONTRACT. 
  

	 	(d)	 4th Installment: 

The sum of United States Dollars
                    , plus any increase or minus any decrease due to adjustment of the CONTRACT PRICE hereunder,

  
 8 

 
shall be paid upon delivery of the VESSEL to the BUYER in accordance with this CONTRACT. 
  

	4.	 Method of Payment: 

  

	 	(a)	 1st Installment: 

Within four (4) business days (business days mean days, other than Saturday, Sunday and national holidays, on which
leading banks in Japan, Netherlands, Monaco and New York are open for business of foreign exchange, remittance and lending of money (hereinafter called the “BUSINESS DAYS”)) after the date of signing of this CONTRACT and receipt by the
BUYER of the Corporate Refund Guarantee in the form attached Schedule 1, the BUYER shall remit the amount of this Installment by telegraphic transfer to a bank to be nominated by the SELLER (hereinafter called the “BANK”) for the account
of the SELLER 
  

	 	(b)	 2nd Installment: 

Within four (4) BUSINESS DAYS after the EFFECTIVE DATE PLUS ONE YEAR and receipt by the BUYER of an invoice for the
respective amount, the BUYER shall remit the amount of this Installment by telegraphic transfer to the BANK for the account of the SELLER. 
  

	 	(c)	 3rd Installment: 

Within four (4) BUSINESS DAYS after the date that is seven (7) months prior to the last day of the one (1) month
delivery range of the VESSEL specified in Paragraph 1 of Article VII of this CONTRACT and receipt by the BUYER of an invoice for the respective amount, the BUYER shall remit the amount of this Installment by telegraphic transfer to the BANK for the
account of the SELLER. 
  

	 	(d)	 4th Installment: 

For the purpose of calculating the amount due upon delivery of the VESSEL, the parties hereto agree to determine the actual
purchase price of the VESSEL within two (2) business days after the completion of sea trial (but not later than seven (7) business days prior to the scheduled delivery date of the VESSEL in accordance with Article VII hereof). 

The amount of 4th Installment with adjustment of the CONTRACT PRICE in accordance with the provisions of this CONTRACT shall be
deposited by the BUYER in cash to the SELLER’s BANK without allocation to an account three (3) BUSINESS DAYS before the scheduled date of delivery of the VESSEL and shall be released to the SELLER’s account against presentation by the
SELLER to the said BANK of a photostatic copy of PROTOCOL OF DELIVERY AND 

  
 9 

 
ACCEPTANCE for the VESSEL as set forth in Paragraph 3 of Article VII hereof duly signed by the BUYER and the SELLER. 

In addition, the BUYER shall, concurrently with delivery of the VESSEL, pay to the SELLER the amount covering any increase in
the purchase price of the VESSEL between the time of determination of the said actual purchase price and the time of delivery of the VESSEL, as well as any other expenses for the account of the BUYER pursuant to the terms of this CONTRACT. 

No payment under this CONTRACT shall be delayed or withheld by the BUYER on account of any dispute or disagreement of whatever
nature arising between the parties hereto. 
   All payments by the BUYER to SELLER hereunder shall be made by
means of telegraphic transfer. 
 With exception of 1st Installment, the SELLER shall issue the invoices for the respective
amounts. 
 (End of Article) 

  
 10 

 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 both parties that any reduction of the CONTRACT PRICE is by way of liquidated damages and not by way of penalty): 
  

	1.	 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 DELIVERY DATE as defined in Article VII hereof (ending as of twelve o’clock midnight of the thirtieth (30th) day of delay). 

  

	 	(b)	 If the delivery of the VESSEL is delayed more than thirty (30) days after the DELIVERY DATE, then, in such event, beginning at twelve
o’clock midnight of the thirtieth (30th) day after the DELIVERY DATE, the CONTRACT PRICE shall be reduced by deducting the sum of US$             for each full day of delay
thereafter. 

 However, the total reduction in the CONTRACT PRICE shall not be more than as would be the
case for a delay of one hundred and fifty (150) days, counting from midnight of the thirtieth (30th) day after the DELIVERY DATE at the above specified rate of reduction. 

 

	 	(c)	 But, if the delay in delivery of the VESSEL should continue for a period of more than one hundred and fifty (150) days from the thirty-first
(31st) day after the DELIVERY DATE, then in such event, and after such period has expired, the BUYER may at its option rescind this CONTRACT in accordance with the provisions of Article X hereof. The SELLER may, at any time after the expiration
of one hundred and eighty (180) days of delay in delivery, if the BUYER has not served notice of rescission as provided in Article X hereof, demand in writing that the BUYER shall make an election, in which case the BUYER shall, within fifteen
(15) days after such demand is received by the BUYER, notify the SELLER of its intention either to rescind this CONTRACT or to consent to the acceptance of the VESSEL at an agreed future date at a reduction in the CONTRACT PRICE as above
provided for delay of one hundred and fifty (150) days only, that is, at a total reduction of US$            ; it being understood by the parties hereto that, if the VESSEL is not
delivered by such future date, the BUYER shall have the same right of rescission upon the same terms and conditions as hereinabove provided. 

  
 11 

	 	(d)	 If the BUYER requests in writing that the delivery of the VESSEL be made earlier than the DELIVERY DATE, and if the delivery of the VESSEL is made,
in response to such request of the BUYER, more than thirty (30) days earlier than the DELIVERY DATE, then, in such event, beginning with the thirty-first (31st) day prior to the DELIVERY DATE, the CONTRACT PRICE of the VESSEL shall be
increased by adding thereto US$            .- for each full day (it being understood that the SELLER’s request for early delivery shall be in no way construed as change or alteration
of the DELIVRY DATE under this CONTRACT). 

  

	 	(e)	 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 DELIVERY DATE by reason of delays, alteration, postponement and/or extension as provided in Article VI, VIII, XIII, and/or XVII, always provided that such delays, alterations, postponement and/or extension are not caused by
SELLER/BUILDER’s default is not delivered by the DELIVERY DATE. 

  

	2.	 Speed: 

  

	 	(a)	 The CONTRACT PRICE shall not be affected or changed by reason of the actual speed of the VESSEL, as determined by trial runs in accordance with the
SPECIFICATIONS, being less than three-tenths (3/10) of a knot below the guaranteed speed of the VESSEL. 

  

	 	(b)	 However, commencing with and including such deficiency of three-tenths (3/10) of a knot in actual speed below the guaranteed speed of the
VESSEL, the CONTRACT PRICE shall be reduced as follows (fractions of one-tenth (1/10) of a knot to be prorated): 

For Three-tenths (3/10) of a knot 

A total sum of US$ 

For Four-tenths (4/10) of a knot 

A total sum of US$ 

For Five-tenths (5/10) of a knot 

A total sum of US$ 

For Six-tenths (6/10) of a knot 

A total sum of US$ 

For Seven-tenths (7/10) of a knot 

A total sum of US$ 

  
 12 

 For Eight-tenths (8/10) of a knot 

A total sum of US$ 

For Nine-tenths (9/10) of a knot 

A total sum of US$ 

For One (1) knot 

A total sum of US$ 
  

	 	(c)	 If the deficiency in the actual speed of the VESSEL as determined by trial runs is more than one (1) full knot below the guaranteed speed of
the VESSEL, then the BUYER may, at its option, reject the VESSEL and rescind this CONTRACT in accordance with the provisions of Article X hereof, or may accept the VESSEL at a reduction of
US$             in the CONTRACT PRICE as above specified for one (1) full knot only. 

  

	3.	 Fuel Consumption: 

  

	 	(a)	 The CONTRACT PRICE shall not be affected or changed by reason of the actual fuel consumption of the VESSEL, as determined by official shop trial as
per the SPECIFICATIONS, being not more than five percent (5%) over the guaranteed fuel consumption of the VESSEL. 

  

	 	(b)	 However, for each full one percent (1%) in excess of five percent (5%), fractions of one percent (1%) to be prorated, in the actual fuel
consumption over the guaranteed fuel consumption of the VESSEL, the CONTRACT PRICE shall be reduced by the sum of US$             up to maximum of nine percent (9%) over the guaranteed
fuel consumption of the VESSEL. 

  

	 	(c)	 If such actual fuel consumption exceeds nine percent (9%) over the guaranteed fuel consumption of the VESSEL, the BUYER may, at its option,
reject the VESSEL and rescind this CONTRACT in accordance with the provisions of Article X hereof, or may accept the VESSEL at a reduction in the CONTRACT PRICE as above specified for nine percent (9%) only, that is, at a total reduction of
US$            . 

  

	4.	 Deadweight: 

  

	 	(a)	 The CONTRACT PRICE shall not be affected or changed by reason of the actual deadweight of the VESSEL, as determined in accordance with the
SPECIFICATIONS, being six hundred (600) metric tons or less below the guaranteed deadweight of the VESSEL. 

  
 13 

	 	(b)	 However, if such deficiency in the actual deadweight below the guaranteed deadweight of the VESSEL is more than six hundred (600) metric tons,
the CONTRACT PRICE shall be reduced by the sum of US$            for each one (1) metric ton of such deficiency being more than six hundred (600) metric tons, up to a maximum of
one thousand eighty hundred (1,800) metric tons less than the guaranteed deadweight of the VESSEL (any fractions less than one (1) metric ton to be counted as one (1) metric ton). 

 

	 	(c)	 In the event of such deficiency in the actual deadweight of the VESSEL being more than one thousand eighty hundred (1,800) metric tons, then,
the BUYER may, at its option, reject the VESSEL and rescind this CONTRACT in accordance with the provisions of Article X hereof or accept the VESSEL at a reduction in the CONTRACT PRICE as above provided for one thousand eighty hundred
(1,800) metric tons only, that is, at a total reduction of US$            . 

  

	5.	 Effect of Rescission: 

It is expressly understood and agreed by the parties hereto that in any case, if the BUYER rescinds this CONTRACT under this
Article, the BUYER shall not be entitled to any liquidated damages arising out of this Article. 
 (End of Article) 

  
 14 

 ARTICLE IV – APPROVAL OF PLANS AND DRAWINGS AND 

INSPECTION DURING CONSTRUCTION 
  

	1.	 Approval of Plans and Drawings: 

  

	 	(a)	 The SELLER shall cause the BUILDER to submit to the BUYER one (1) copy of the plans and drawings for its approval at its address as set forth
in Article XVIII hereof. The BUYER shall, within twenty one (21) days after receipt of the same, send to the BUILDER the comment sheet(s), the format of which was agreed by the BUYER and the SELLER and/or the BUILDER, with the BUYER’s
approval or comments written thereon, if any. A list of the plans and drawings to be so submitted to the BUYER shall be mutually agreed upon between the parties hereto. 

 

	 	(b)	 In the event that the BUYER shall fail to return the said comment sheet(s) to the BUILDER within the time limit as hereinabove provided, such plans
and drawings shall be deemed to have been automatically approved without any comment. 

  

	2.	 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”) to act on behalf of the BUYER and one (1) assistant in connection with attendance to the tests and inspections relating to the VESSEL, its
machinery, equipment and outfitting, and any other matters for which he is specifically authorized by the BUYER. In the event that the BUYER should designate such REPRESENTATIVE, it shall give an advance notice to the SELLER and/or the BUILDER of
the name of the REPRESENTATIVE, the limits of his authority and any other pertinent information concerning the same. 
 The
BUYER may elect however to send up to four (4) officers to attend the sea trial of the VESSEL and ship’s crew to attend the VESSEL in the SHIPYARD after the sea trial of the VESSEL for familiarization purposes (hereinafter collectively
called the “CREW”). 
 The BUYER undertakes and assures that the BUYER’s appointed REPRESENTATIVE, the
assistant and the CREW shall not, whilst carrying out the REPRESENTATIVE’s and his assistant’s inspection as specified in this CONTRACT, obstruct the normal construction schedule of the VESSEL. The

  
 15 

 
REPRESENTATIVE, the assistant and the CREW shall observe the work’s rules prevailing at the BUILDER’s and subcontractors’ premises. 

 

	3.	 Inspection by REPRESENTATIVE: 

The necessary inspections of the VESSEL, its machinery, equipment and outfitting shall be carried out by the CLASSIFICATION
SOCIETY, other regulatory bodies and/or an inspection team of the BUILDER throughout the entire period of construction, in order to ensure that the construction of the VESSEL is duly performed in accordance with this CONTRACT and the SPECIFICATIONS.
The REPRESENTATIVE and his assistant shall have, during construction of the VESSEL, the right to attend such tests and inspections of the VESSEL, its machinery and equipment as are mutually agreed between the BUYER and the SELLER and/or the BUILDER.
The SELLER shall cause the BUILDER to give a notice to the REPRESENTATIVE reasonably in advance of the date and place of such tests and inspections to be attended by him for his convenience. Failure of the REPRESENTATIVE to be present at such tests
and inspections after due notice to him as above provided shall be deemed to be a waiver of his right to be present. 
 The
REPRESENTATIVE shall notify the SELLER and/or the BUILDER promptly, in writing, in the event that he discovers any construction or material, which he believes, does not or will not conform to the requirements of this CONTRACT or the SPECIFICATIONS;
and shall likewise advise and consult with the SELLER and/or the BUILDER in all matters pertaining to the building of the VESSEL, as may be required by the SELLER and/or the BUILDER or as the REPRESENTATIVE may deem necessary. The SELLER shall,
provided that such notice is received by the SELLER and/or the BUILDER without delay after discovery by the REPRESENTATIVE of such non-conformity as aforesaid, cause the BUILDER to comply with any such demands concerning alterations, which in the
judgment of the BUILDER are not contradictory to this CONTRACT or the SPECIFICATIONS, provided however, that any and all demands of the REPRESENTATIVE with regard to building, arrangement and outfitting of the VESSEL shall be in writing and shall be
submitted to specially authorized representatives of the BUILDER, whom the SELLER shall cause the BUILDER to designate for such purpose and that the BUYER undertakes and assures the SELLER and/or the BUILDER that the REPRESENTATIVE and his assistant
shall carry out their inspection in accordance with usual shipbuilding practice and in such a way as to avoid increase in building costs and delays in the construction of the VESSEL. However, if the REPRESENTATIVE fail to submit to the SELLER and/or

  
 16 

 
the BUILDER without delay any such demand concerning alterations with respect to the building, arrangement or outfit of the VESSEL, her engines or accessories, or any other items or matters in
connection herewith, which the REPRESENTATIVE have examined or inspected or attended at the tests thereof under this CONTRACT or the SPECIFICATIONS, the REPRESENTATIVE shall be deemed to have approved the same and shall be precluded from making any
demand for alterations or other complaints with respect thereto at a later date. In all working hours during the construction of the VESSEL until delivery thereof, the REPRESENTATIVE and his assistant shall be given free and ready access to the
VESSEL, its engines and accessories, and to other place where work is being done, or materials are being processed or stored, in connection with the construction of the VESSEL, including the yards, workshops and stores of the BUILDER, and the
premises of subcontractors of the BUILDER, who are doing work or storing materials in connection with the VESSEL’s construction. 

In the event any disputes arise between the REPRESENTATIVE and the SELLER and/or the BUILDER, the BUYER and the SELLER and/or
the BUILDER shall try to settle the dispute by negotiation. Should the dispute not be settled by the negotiation either the SELLER and/or the BUILDER or the BUYER may refer such dispute to arbitration as per Article XIII. 

 

	4.	 Facilities: 

The SELLER shall cause the BUILDER to furnish the REPRESENTATIVE and his assistant, with adequate office space, and such other
reasonable facilities according to the BUILDER’s practice at, or in the immediate vicinity of, the SHIPYARD (or the sub-contractor’s facility, as much as practically possible, if any part of the construction is sub-contracted) as may be
necessary to enable him to effectively carry out his duties. 
  

	5.	 Liability of SELLER and/or BUILDER: 

The REPRESENTATIVE, his assistant and the CREW shall at all times be deemed to be the employees of the BUYER and neither of the
SELLER nor the BUILDER. The SELLER and the BUILDER shall be under no liability whatsoever to the BUYER, the REPRESENTATIVE, his assistant and the CREW for personal injuries, including death, suffered during the time when he or they are on the
VESSEL, or within the premises of either the SELLER or 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 a gross
negligence 

  
 17 

 
and/or willful misconduct of the SELLER and/ or the BUILDER, or of any of their employees or agents or subcontractors. Nor shall the SELLER and/or the BUILDER be under any liability whatsoever to
the BUYER, the REPRESENTATIVE, his assistant and the CREW for damage to, or loss or destruction of property of the BUYER or of the REPRESENTATIVE, his assistant and the CREW, unless such damage, loss or destruction were caused by a gross negligence
and/or willful misconduct of the SELLER or the BUILDER, or of any of its employees or agents or subcontractors. 
  

	6.	 Responsibility of BUYER: 

The BUYER shall undertake and assure that the REPRESENTATIVE, his assistant and the CREW shall carry out his duties hereunder
in accordance with the normal shipbuilding practice of the BUILDER and in such a way as to avoid any unnecessary increase in building cost, delay in the construction of the VESSEL, and/or any disturbance in the construction schedule of the BUILDER.

 The SELLER has the right to request the BUYER to replace the REPRESENTATIVE, his assistant and the CREW who is/are
reasonably proven to be unsuitable and unsatisfactory for the proper progress of the VESSEL’S construction. The BUYER shall investigate the situation by sending its representative(s) to the SHIPYARD if necessary, and if the BUYER considers that
such SELLER’s and/or the BUILDER’s request is justified, the BUYER shall effect such replacement as soon as arrangeable. 
 (End of
Article) 

  
 18 

 ARTICLE V – MODIFICATIONS 

 

	1.	 Modifications of SPECIFICATIONS: 

The SPECIFICATIONS may be modified and/or changed by prior written agreement of the parties hereto, provided that such
modifications and/or changes or an accumulation thereof will not, in the SELLER’S and/or the BUILDER’s judgment, acting reasonably, adversely affect the BUILDER’s planning or program in relation to the BUILDER’s other
commitments, and provided, further, that the BUYER shall first agree, before such modifications and/or changes are carried out, to alterations in the CONTRACT PRICE, the DELIVERY DATE as defined in Article VII hereof and other terms and conditions
of this CONTRACT and the SPECIFICATIONS occasioned by or resulting from such modifications and/or changes. 
 Such agreement
may be effected by exchange of letters signed by the authorized representatives of the parties hereto or by facsimile confirmed by such letters manifesting agreements of the parties hereto which shall constitute amendments to this CONTRACT and/or
the SPECIFICATIONS. 
 The SELLER may cause the BUILDER to make minor changes to the SPECIFICATIONS, if found necessary for
introduction of improved production methods or otherwise, provided that the SELLER and/or the BUILDER shall first obtain the BUYER’s approval which shall not be unreasonably withheld. 

 

	2.	 Change in Class, etc.: 

In the event that, after the date of this CONTRACT, any requirements as to class, or as to rules and regulations to which the
construction of the VESSEL is required to conform are altered or changed by the CLASSIFICATION SOCIETY or the other regulatory bodies authorized to make such alterations or changes, the following provisions shall apply: 

 

	 	(a)	 If such alterations or changes are compulsory and the VESSEL is required to comply therewith by the time of its delivery to the BUYER, either of
the parties hereto, upon receipt of such information from the CLASSIFICATION SOCIETY or other regulatory bodies, shall promptly transmit the same to the other in writing, and the SELLER shall thereupon cause the BUILDER to incorporate such
alterations or changes into the construction of the VESSEL provided that the BUYER shall first agree to adjustments required by the SELLER and/or the BUILDER in the CONTRACT PRICE, the DELIVERY DATE as defined in Article VII hereof and other terms
and conditions of this 

  
 19 

	 	 
CONTRACT and the SPECIFICATIONS occasioned by or resulting from such alterations or changes. 

  

	 	(b)	 If such alterations or changes are not compulsory for the VESSEL, but the BUYER desires to incorporate such alterations or changes into the
construction of the VESSEL, then the BUYER shall notify the SELLER and/or the BUILDER of such intention. 

The SELLER may cause the BUILDER to accept such alterations or changes, provided that such alterations or changes will not, in
the judgment of the SELLER and/or the BUILDER, adversely affect the BUILDER’s planning or program in relation to the BUILDER’s other commitments, and provided, further, that the BUYER shall first agree to adjustments required by the SELLER
and/or the BUILDER in the CONTRACT PRICE, the DELIVERY DATE as defined in Article VII hereof and other terms and conditions of this CONTRACT and the SPECIFICATIONS occasioned by or resulting from such alterations or changes. 

Agreement as to such alterations or changes under this Paragraph shall be made in the same manner as provided in Paragraph 1 of
this Article for modifications or changes to the SPECIFICATIONS. 
  

	3.	 Substitution of Materials: 

In the event that any of the materials required by the SPECIFICATIONS or otherwise under this CONTRACT for the construction of
the VESSEL cannot be procured in time or are in short supply to maintain the DELIVERY DATE as defined in Article VII hereof of the VESSEL provided always that SELLER can evidence that the BUILDER has used reasonable endeavours to procure the same ,
the SELLER may, provided that the BUYER shall so agree in writing, cause the BUILDER to supply other materials capable of meeting the requirements of the CLASSIFICATION SOCIETY and of the rules, regulations and requirements with which the
construction of the VESSEL must comply. 
 Any agreement as to such substitution of materials shall be effected in the
manner provided in Paragraph 1 of this Article, and shall, likewise, include alterations in terms and conditions of this CONTRACT occasioned by or resulting from such substitution, however, the CONTRACT PRICE in this CONTRACT shall not be affected
by such substitution of materials unless otherwise mutually agreed by both parties hereto. 
 (End of Article) 

  
 20 

 ARTICLE VI – TRIALS 

 

	1.	 Notice: 

The BUYER shall receive from the SELLER and/or the BUILDER at least fourteen (14) days prior notice in writing or by
facsimile confirmed in writing of the time and place of the trial run of the VESSEL, and the BUYER shall promptly acknowledge receipt of such notice. The BUYER shall have its REPRESENTATIVE on board the VESSEL to witness such trial run. 

Failure in attendance of the REPRESENTATIVE of the BUYER at the trial run of the VESSEL for any reason whatsoever after due
notice to the BUYER as above provided shall be deemed to be a waiver by the BUYER of its right to have its REPRESENTATIVE on board the VESSEL at the trial run, and the SELLER may cause the BUILDER to conduct the trial run without the REPRESENTATIVE
of the BUYER being present, and in such case the BUYER shall be obliged to accept the VESSEL on the basis of a certificate of the BUILDER that the VESSEL, upon trial run, is found to conform to this CONTRACT and the SPECIFICATIONS. 

 

	2.	 Weather Condition: 

The trial run shall be carried out under the weather condition which is deemed acceptable by the SELLER acting reasonably . In
the event of unfavorable weather on the date specified for the trial run, the same shall take place on the first available day thereafter that the weather condition permits. 

It is agreed that, if during the trial run of the VESSEL, the weather should suddenly become so unfavorable that orderly
conduct of the trial run can no longer be continued, the trial run shall be discontinued and postponed until the first favorable day next following, unless the BUYER shall consent in writing to acceptance of the VESSEL on the basis of the trial run
already made before such discontinuance has occurred. 
 Any delay of trial run caused by such unfavorable weather condition
may, at the SELLER’s sole discretion, operate to postpone the DELIVERY DATE as defined in Article VII hereof up to the period of delay involved and such delay shall be deemed as a permissible delay in the delivery of the VESSEL. 

 

	3.	 How Conducted: 

  

	 	(a)	 All the expenses in connection with the trial run are to be for the account of the SELLER and the SELLER shall cause the BUILDER to provide at its
own expense the necessary crew to comply with conditions of safe navigation. The 

  
 21 

	 	 
trial run shall be conducted in the manner prescribed in the SPECIFICATIONS, and shall prove fulfillment of the performance requirements for the trial run as set forth in the SPECIFICATIONS. The
course of trial run shall be determined by the BUILDER. 

  

	 	(b)	 Notwithstanding the foregoing, lubricating oils, hydraulic oils and greases necessary for the trial run of and/or tests of machinery for the VESSEL
shall be supplied by the BUYER at the SHIPYARD or premises of the BUILDER’s subcontractors in accordance with the time schedule to be designated by the SELLER, and the SELLER shall pay the BUYER upon delivery of the VESSEL the cost of the
quantities of lubricating oils and greases consumed during the tests and trial run at the original purchase price. In measuring the consumed quantity, lubricating oils and greases remaining in the main engine, other machinery and their pipes, stern
tube and the like, shall be excluded. The quantity of lubricating oils and greases to be supplied by the BUYER shall be in accordance with the instruction of the BUILDER. 

The SELLER shall cause the BUILDER to supply necessary fuel oils for trial run in accordance with the instructions of the
BUYER. The BUYER shall take over and pay remaining fuel oil on board the VESSEL at the time of delivery at BUILDER’s original purchase price as evidenced by receipts a copy of actual invoice or estimation written in Japanese language along with
an English translation. 
  

	4.	 Method of Acceptance or Rejection: 

  

	 	(a)	 Upon completion of the trial run, the SELLER and/or the BUILDER shall give the BUYER a notice by facsimile confirmed in writing of completion of
the trial runs, as and if the SELLER considers that the results of the trial run indicate conformity of the VESSEL to this CONTRACT and/or the SPECIFICATIONS. The BUYER shall, within three (3) BUSINESS DAYS after receipt of such notice from the
SELLER and/or the BUILDER, notify the SELLER and/or the BUILDER by facsimile confirmed in writing of its acceptance or rejection of the VESSEL. 

  

	 	(b)	 However, should the results of the trial run indicate that the VESSEL, or any part or equipment thereof, does not conform to the requirement of
this CONTRACT and/or the SPECIFICATIONS, or if the SELLER is in agreement to non-conformity as specified in the BUYER’s notice of rejection, then, the SELLER shall promptly cause the BUILDER to make such alterations or changes as may be
necessary to correct such non-conformity and thereafter 

  
 22 

 
establish the fulfillment of the requirements by such tests or trials as are reasonable and necessary. Within three (3) BUSINESS DAYS after the SELLER’s or the BUILDER’s
presentation to the BUYER of all relevant results during such tests or trials, the BUYER shall again notify the SELLER and/or the BUILDER in writing of its acceptance or rejection of the VESSEL. 

 

	 	(c)	 In the event that the BUYER rejects the VESSEL, the BUYER shall indicate in its notice of rejection in what respect the VESSEL, or any part or
equipment thereof, does not conform to this CONTRACT and/or the SPECIFICATIONS. 

  

	 	(d)	 In the event that the BUYER fails to notify the SELLER and/or the BUILDER by facsimile confirmed in writing of the acceptance of or the rejection
together with the reason therefore of the VESSEL within the period as provided in the above Sub-Paragraph (a) or (b), the BUYER shall be deemed to have accepted the VESSEL. 

 

	 	(e)	 The SELLER may dispute the rejection of the VESSEL by the BUYER under this Paragraph, in which case the matter shall be submitted for final
decision by arbitration in accordance with Article XIII hereof. 

  

	5.	 Effect of Acceptance: 

Acceptance of the VESSEL as above provided shall be final and binding as far as conformity of the VESSEL to this CONTRACT
and/or the SPECIFICATIONS is concerned and shall preclude the BUYER from refusing formal delivery of the VESSEL as hereinafter provided, if the SELLER complies with all other procedural requirements for delivery as provided in Article VII hereof .

  

	6.	 Disposition of Surplus Consumable Stores: 

Should any fresh water or other consumable stores, furnished by the BUILDER for the trial run remain on board the VESSEL at the
time of acceptance thereof by the BUYER, the BUYER agrees to buy the same from the BUILDER at original purchase price thereof as evidenced by a copy of actual invoice or estimation written in Japanese language along with an English translation, and
payment by the BUYER shall be effected upon delivery of the VESSEL. 
 (End of Article) 

  
 23 

 ARTICLE VII – DELIVERY 

 

	1.	 Time and Place: 

The VESSEL shall be delivered by the SELLER to the BUYER at the SHIPYARD not later than
                    at the SELLER’s option. The SELLER shall, not later than
                    , determine the three (3) months delivery range, and not later than six (6) months prior to the first day of the said
three (3) months range, narrow down the said three (3) months range to one (1) month range. Further, not later than two (2) months prior to the first day of the said one (1) month range, the SELLER shall nominate a date for
delivery of the VESSEL from the said one (1) month range. In the event of delays in the construction of the VESSEL or any performance required under this CONTRACT due to causes which under the terms of this CONTRACT permit postponement of the
date for delivery, the aforementioned date for delivery of the VESSEL may be postponed accordingly. The aforementioned date, or such later date to which the requirement of delivery is postponed pursuant to such terms, is herein called the
“DELIVERY DATE”. 
 The SELLER shall promptly provide the BUYER with written notices, in accordance with Article
XVIII, of any determinations and/or nominations made under this Article VII paragraph 1. 
  

	2.	 When and How Effected: 

Provided that the BUYER shall have fulfilled all of its obligations stipulated under this CONTRACT, 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: 

Upon delivery and acceptance of the VESSEL, the SELLER shall deliver to the BUYER the following documents, which shall
accompany the PROTOCOL OF DELIVERY AND ACCEPTANCE: 
  

	 	(a)	 PROTOCOL OF TRIALS of the VESSEL made by the BUILDER 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 made by the
BUILDER. 

  

	 	(c)	 PROTOCOL OF STORES OF CONSUMABLE NATURE referred to under Paragraph 3 (b) and 6 of Article VI hereof, made by the BUILDER.

  
 24 

	 	(d)	 ALL CERTIFICATES including the BUILDER’S CERTIFICATE required to be furnished upon delivery of the VESSEL pursuant to this CONTRACT and the
SPECIFICATIONS. It is agreed that if, through no fault on the part of the SELLER and/or the BUILDER, the formal classification certificate and/or other certificates are not available at the time of delivery of the VESSEL, provisional certificates
including interim classification certificate shall be accepted by the BUYER, provided that the SELLER shall cause the BUILDER to furnish the BUYER with the formal certificates including formal classification certificate as promptly as possible after
such formal certificates have been issued. 

  

	 	(e)	 DECLARATION OF WARRANTY of the SELLER 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 the Japanese governmental authorities, as well as of all liabilities of the
SELLER and/or the BUILDER to its subcontractors, employees and crew, and of all liabilities arising from the operation of the VESSEL in the trial runs, or otherwise, prior to delivery, including the SELLER’s warranty of quality in accordance
with Article IX. 

  

	 	(f)	 DRAWING AND PLANS pertaining to the VESSEL as stipulated in the SPECIFICATIONS made by the BUILDER. 

 

	 	(g)	 COMMERCIAL INVOICE 

  

	 	(h)	 BILL OF SALE for the transfer of the title to the VESSEL from the SELLER to the BUYER duly notarized and appostilled. 

 

	 	(i)	 Such other documents as the BUYER may reasonably require, and which the SELLER and/or the BUILDER can reasonably provide, to obtain financing
and/or for the registration of the VESSEL. The BUYER shall reimburse any expenses incurred by the SELLER and/or the BUILDER in obtaining such documentation with supporting voucher along with English translation. 

 

	4.	 Tender of VESSEL: 

If the BUYER fails to take delivery of the VESSEL after completion thereof according to this CONTRACT and the SPECIFICATIONS
without any justifiable reason, the SELLER shall have the right to tender delivery of the VESSEL after compliance with all procedural requirements as above provided. 
  

	5.	 Title and Risk: 

Title to and risk of loss of the VESSEL shall be passed to the BUYER only upon delivery and acceptance thereof having been
completed as stated above; it being 

  
 25 

 
expressly understood that, until such delivery is effected, title to and risk of loss of the VESSEL and her equipment shall be vested in the SELLER, 

 

	6.	 Removal of VESSEL: 

The BUYER shall take possession of the VESSEL immediately upon delivery and acceptance thereof and shall, at its own risk, cost
and expense, remove the VESSEL from the premises of the SHIPYARD within three (3) BUSINESS 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) BUSINESS DAYS, then, in such event the BUYER shall pay to the SELLER the reasonable mooring charges of the VESSEL. 
 (End of
Article) 

  
 26 

 ARTICLE VIII – DELAYS AND EXTENSION OF TIME FOR DELIVERY 

(FORCE MAJEURE) 
  

	1.	 Causes of delay: 

If, at any time before the actual delivery, 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; acts of princes or rulers; requirements of government authorities; war or other hostilities or preparation therefore; terrorism; blockade; revolution, insurrections, mobilization, civil war,
civil commotion or riots; vandalism; sabotages, strikes, lockouts or other labour disturbances; labour shortage; plague or other epidemics; quarantines; flood, typhoons, hurricanes, storms or other weather conditions not included in normal planning;
earthquakes; tidal waves; landslides; fires, explosions, collisions or stranding; embargoes; delays or failure in transportation; shortage of materials, machinery or equipment only if the Builder could not physically secure same despite its diligent
efforts; import restrictions; inability to obtain delivery or delays in delivery of materials, machinery or equipment, provided that at the time of ordering the same could reasonably be expected by the BUILDER to be delivered in time; prolonged
failure, shortage or restriction of electric current, oil or gas; defects in materials, machinery or equipment which could not have been detected by the BUILDER using reasonable care; casting or forging rejects or the like not due to negligence;
delays caused by the CLASSIFICATION SOCIETY or other bodies whose documents are required; destruction of or damage to the SHIPYARD or works of the BUILDER, its subcontractors or suppliers, or of or to the VESSEL or any part thereof, by any causes
herein described; 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; and other causes or accidents
beyond control of the SELLER and/or the BUILDER, its subcontractors or suppliers of the nature whether or not indicated by the foregoing words; then and in any such case, the DELIVERY DATE shall be postponed for a period of time which shall not
exceed total accumulated time of all such delays. For the avoidance of doubt, bankruptcy, insolvency or rehabilitation proceedings of the Builder or its subcontractors does not qualify as a cause of delay under this paragraph. 

  
 27 

	2.	 Notice of delay: 

Within ten (10) days after the date of occurrence of any cause of delay, on account of which the SELLER claims that it is
entitled under this CONTRACT to a postponement of the DELIVERY DATE, the SELLER shall notify the BUYER in writing or by facsimile confirmed in writing of the date such cause of delay occurred. Likewise, within ten (10) days after the date of
ending of such cause of delay, the SELLER shall notify the BUYER in writing or by facsimile confirmed in writing of the date such cause of delay ended. 

The SELLER shall also notify the BUYER of the period, by which the DELIVERY DATE is postponed by reason of such cause of delay,
with all reasonable dispatch after it has been determined. Failure of the BUYER to object to the SELLER’s claim for postponement of the DELIVERY DATE within ten (10) days after receipt by the BUYER of such notice of claim shall be deemed
to be a waiver by the BUYER of its right to object to such postponement of the DELIVERY DATE. 
  

	3.	 Definition of Permissible Delay: 

Delays on account of such causes as specified in Paragraph 1 of this Article and any delays specified in paragraph 2 of Article
VI, paragraph 5 of Article XIII and paragraph 1 (d) of Article XVII of this CONTRACT which permits postponement of the DELIVERY DATE and always provided that such delays are not caused by SELLER/BUILDER’s default 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 for in Article III hereof. 
  

	4.	 Right to Rescind for Excessive Delay: 

If the total accumulated time of all delays on account of the causes specified in Paragraph 1 of this Article, amount to one
hundred eighty (180) days or more, then, in such event, the BUYER may rescind this CONTRACT in accordance with the provisions of Article X hereof. 

The SELLER may, at any time after the accumulated time of the aforementioned delays justifying rescission by the BUYER, demand
in writing that the BUYER shall make an election, in which case the BUYER shall, within twenty (20) days after such demand is received by the BUYER, either notify the SELLER of its intention to rescind this CONTRACT, or consent to a
postponement of the DELIVERY DATE to a specific future date; it being understood and agreed by the parties hereto that, if any further delay occurs on account of causes justifying 

  
 28 

 
rescission as specified in this Article, the BUYER shall have the same right of rescission upon the same terms as hereinabove provided. 

(End of Article) 

  
 29 

 rescission as specified in this Article, the BUYER shall have the same right of
rescission upon the same terms as hereinabove provided. 
 (End of Article) 

  
 29 

 ARTICLE IX – WARRANTY OF QUALITY 

 

	1.	 Warranty: 

Subject to the provisions hereinafter set forth, the SELLER undertakes to remedy, free of charge to the BUYER, any defects in
the VESSEL which are due to defective material and/or bad workmanship on the part of the SELLER, BUILDER and/or its subcontractors, provided that the defects are discovered within a period of twelve (12) months after the date of delivery of the
VESSEL and a notice thereof is duly given to the SELLER as hereinafter provided. 
 For the purpose of this Article, the
VESSEL shall include her hull, machinery, equipment and gear, but excludes any parts for the VESSEL which have been supplied by or on behalf of the BUYER. 
  

	2.	 Notice of Defects: 

The BUYER shall notify the SELLER in writing, or by facsimile confirmed in writing, of any defects for which claim is made
under this guarantee as promptly as possible after discovery thereof. The BUYER’s written notice shall include full particulars as to the nature and extent of the claimed defects. 

The SELLER shall have no obligation for any defects discovered prior to the expiry date of the said twelve (12) month
period, unless notice of such defect is received by the SELLER not later than thirty (30) days after such expiry date. 
  

	3.	 Remedy of Defects: 

  

	 	(a)	 The SELLER shall remedy, at its expense, or shall cause the BUILDER to remedy, at its expense, any defects, against which the VESSEL is guaranteed
under this Article, by making all necessary repairs or replacements at any of the BUILDER’s shipyards. 

  

	 	(b)	 However, if it is impractical to bring the VESSEL to the BUILDER’s shipyard, the BUYER may cause the necessary repairs or replacements to be
made elsewhere which is deemed suitable for the purpose, provided that, in such event, the SELLER may cause the BUILDER to forward or supply replacement parts or materials to the VESSEL, unless forwarding or supplying thereof to the VESSEL would
impair or delay the operation or working schedule of the VESSEL. In the event that the BUYER proposes to cause the necessary repairs or replacements to be made to the VESSEL at any other shipyard or works than the BUILDER’s shipyard, the BUYER
shall first, but in all events as soon as 

  
 30 

	 	 
possible, give the SELLER in writing or by facsimile confirmed in writing of the time and place such repairs will be made, and if the VESSEL is not thereby delayed, or her operation or working
schedule is not thereby impaired, the SELLER shall have the right to verify by their own representative(s) the nature and extents of the defects complained of. The SELLER shall, in such case, promptly advise the BUYER by facsimile, after such
examination has been completed, of its acceptance or rejection of the defects as ones that are covered by the guarantee herein provided. Upon the SELLER’s acceptance of the defects as justifying remedy under this Article, or upon award of the
arbitration so determining, the SELLER shall immediately pay to the BUYER for such repairs or replacements a sum equal to the reasonable cost of making the same repairs or replacements in the BUILDER’s shipyard. 

 

	 	(c)	 In any case, the VESSEL shall be taken at the BUYER’s cost and responsibility to the place elected, ready in all respects for such repairs or
replacements. 

  

	 	(d)	 Any dispute under this Article shall be referred to arbitration in accordance with the provisions of Article XIII hereof. 

 

	4.	 Extent of SELLER’s and/or the BUILDER’s Responsibility: 

 

	 	(a)	 The SELLER shall have no responsibility or liability for any other defects whatsoever in the VESSEL than the defects specified in Paragraph 1 of
this Article. Nor the SELLER and/or the BUILDER shall in any circumstances be responsible or liable for any consequential losses, damages or expenses including, but not limited to, loss of time, loss of profit or earning or demurrage directly or
indirectly occasioned to the BUYER by reason of the defects specified in Paragraph 1 of this Article or due to repairs or other work done to the VESSEL to remedy such defects.. 

 

	 	(b)	 The SELLER shall not be responsible for any defects in any part of the VESSEL which may subsequent to delivery of the VESSEL have been replaced or
in any way repaired by any other contractor or for any defects which have been caused or aggravated by omission or improper use and maintenance of the VESSEL on the part of the BUYER, its servants or agents or by ordinary wear and tear or by any
other circumstances whatsoever beyond the control of the SELLER. 

  

	 	(c)	 The guarantee contained as hereinabove in this Article replaces and excludes any other liability, guarantee, warranty and/or condition imposed or
implied by the law, customary, statutory or otherwise, by reason of the construction and 

  
 31 

	 	 
sale of the VESSEL by the SELLER and/or the BUILDER for and to the BUYER. 

(End of Article) 

  
 32 

 ARTICLE X – RESCISSION BY BUYER 

 

	1.	 Notice: 

The prepayments made by the BUYER prior to the delivery of the VESSEL 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 specifically permitting the BUYER to do so, then the BUYER shall notify the SELLER in writing or by facsimile
confirmed in writing, and such rescission shall be effective as of the date notice thereof is received by the SELLER (hereinafter the “RECISSION DATE”). 
  

	2.	 Definition of the SELLER’s Default: 

The SELLER shall be deemed to be in default under this CONTRACT: 

 

	 	(a)	 If a petition is filed or an order is made or an effective resolution is passed for the winding up or dissolution or liquidation of the SELLER or
the BUILDER; or if a Receiver is appointed of the undertaking or property of the SELLER or the BUILDER; or if the SELLER or the BUILDER shall apply to any Court for protection from its creditors; or if any similar process or proceeding to the
aforesaid is initiated under the laws of any relevant jurisdiction; 

  

	 	(b)	 If the Corporate Refund Guarantee by the SELLER is not issued and/or is not maintained in accordance with the terms of this CONRACT; or

  

	 	(c)	 If the BUILDER ceases to carry on its shipbuilding business. 

 

	3.	 Refund by SELLER: 

Thereupon the SELLER shall promptly refund and in no event later than five (5) BUSINESS DAYS from the RECISSION DATE to
the BUYER the full amount of all sums paid by the BUYER to the SELLER on account of the VESSEL, unless the SELLER proceeds to the arbitration under the provisions of Article XIII hereof. 

In such event, the SELLER shall pay the BUYER interest at the rate of LIBOR (“LIBOR” as referred to under this
CONTRACT means the offered rate of leading banks for London inter-bank for one (1) month US Dollar as applicable deposit which will be displayed on the Telerate Page 3750 of Telerate Monitor as of 11:00 a.m. (London Time) on each corresponding
date) at the time of the payments for the respective Installments by the BUYER to the SELLER, plus percent (2%) per 

  
 33 

 
annum (hereinafter called the “INTEREST”) on the amount required herein 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 by telegraphic transfer of such refund to the BUYER by the SELLER. 
  

	4.	 Discharge of Obligations: 

Upon such refund 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. 
 (End of Article) 

  
 34 

	
	 ARTICLE XI – BUYER’S DEFAULT

 

1.     Definition of Default:

 
 The BUYER shall be deemed to be in
default of performance of its obligations under this CONTRACT in the following cases:\
  

(a)    If the BUYER fails to pay any of the 1st, 2nd and 3rd Installments to the
SELLER as provided for in Article II hereof;
  

(b)    If the BUYER fails to make deposit covering the 4th Installment and/or
fails to pay the 4th Installment to the SELLER concurrently with the delivery of the VESSEL by the SELLER to the BUYER as provided in Article II hereof;
  

(c)    If the BUYER fails to take delivery of the VESSEL, when the VESSEL is duly
tendered for delivery by the SELLER under the provisions of Article VII hereof; or
  

(d)   i)  If a petition is filed or an order is made or an effective
resolution is passed for the winding up or dissolution or liquidation of the BUYER or its guarantor who shall guarantee the BUYER’s obligation and due performance under this Contract (hereinafter called the “GUARANTOR”); or if a
Receiver is appointed of the undertaking or property of the BUYER or the GUARANTOR; or if the BUYER or the GUARANTOR shall apply to any Court for protection from its creditors; or if any similar process or proceeding to the aforesaid is initiated
under the laws of any relevant jurisdiction; or
  

	     ii)If an event of default under Article XI.1 of the Contract
dated                     (as may be amended from time to time) for construction and sale of DEADWEIGHT 60,200 METRIC TON TYPE SINGLE SCREW MOTOR
BULK CARRIER with the BUILDER’s Hull No.             made and entered into by and between the
                                         
                            and the SELLER under the said Contract be occurred, and thereafter the SELLER under the
said Contract could not recover their right, damage and claim from the Guarantor with regard to such Vessel
  

(e)    If the BUYER or the GUARANTOR ceases to carry on its business; or

 

2.     Interest and Charge:

 
 If the BUYER is in default of payment as
to any Installment as provided in Paragraph 1. Sub-paragraph (a) and (b) of this Article, the BUYER shall pay interest on such Installment at the rate of LIBOR (as defined under Article X) at the due date

  
 35 

 
of such Installment, plus two percent (2%) per annum from the due date thereof to the date of payment to the SELLER of the full amount including interest; in case the BUYER shall fail to
take delivery of the VESSEL as provided in Paragraph 1. Sub-paragraph (c) of this Article, the BUYER shall be deemed in default of payment of the Fourth Installment and shall pay interest thereon at the same rate as aforesaid from and including
the day on which the VESSEL is tendered for delivery by the SELLER. 
 In any event of default by the BUYER, the BUYER shall
also pay all charges and expenses incurred by the SELLER in consequence of such default. 
  

	3.	 Effect of Default: 

  

	 	(a)	 If any default by the BUYER occurs as provided hereinbefore, the BUILDER shall be entitled to postpone the DELIVERY DATE for days not exceeding the
period of continuance of such default by the BUYER. 

  

	 	(b)	 If any default by the BUYER set forth in Paragraph 1. Sub-paragraph (a), (b) or (c) of this Article continues for a period of fifteen
(15) days, or if any default by the BUYER set forth in Paragraph 1. Sub-paragraph (d), (e) or (f) of this Article occurs, the SELLER may, at its option, rescind this CONTRACT by giving notice of such effect to the BUYER by facsimile
confirmed in writing. 

 Upon receipt by the BUYER of such notice of rescission, this CONTRACT shall
forthwith become null and void and any of the BUYER’S SUPPLIES as defined in Article XVII hereof shall become the sole property of the SELLER. 

In the event of such rescission of this CONTRACT in accordance with this Article XI, the SELLER shall be entitled to retain
any Installment or Installments theretofore paid by the BUYER to the SELLER on account of this CONTRACT (hereinafter called the “Retained Installments”), and the SELLER shall not be required to refund the Retained Installments to the BUYER
and shall be entitled to apply the Retained Installments to all losses and damages arising directly or indirectly from such default by the BUYER mentioned above. The rights and remedies of the SELLER hereunder are cumulative and in addition to the
SELLER’s rights, powers and remedies existing at law or in equity or otherwise. 
 For the avoidance of doubts, it is
confirmed that the rescission of this CONTRACT referred to in the second paragraph this Sub-Paragraph (b) and Paragraph 4 of this Article shall include any rescission of this CONTRACT by 

  
 36 

 
any receiver, liquidator, trustee or administrator of the BUYER or its major shareholder in bankruptcy or any insolvency proceedings who is entitled to rescind this CONTRACT under any applicable
law in connection with such bankruptcy or insolvency proceedings. 
  

	4.	 Sale of VESSEL: 

  

	 	(a)	 In the event of rescission of this CONTRACT as above provided, the SELLER shall have full right and power either to complete or not to complete the
VESSEL as it deems fit, and to sell the VESSEL at a public or private sale on such terms and conditions as the SELLER thinks fit without being answerable for any loss or damage. There shall be no obligation on the SELLER to exercise reasonable care
in order to obtain a proper price for the VESSEL and the SELLER shall not be liable to the BUYER for any loss or damage howsoever caused in connection with such sale of the VESSEL, in particular, for the avoidance of doubts and without limiting the
generality of the foregoing, whether such loss or damage is caused by the negligence or other conduct of the SELLER, its servants or agents. 

  

	 	(b)	 In the event of the sale of the VESSEL in its completed state, the proceeds of the sale received by the SELLER shall be applied firstly to payment
of all expenses attending such sale and otherwise incurred by the SELLER as a result of the BUYER’s default, and then to payment of all unpaid Installments of the CONTRACT PRICE and interest on such Installments at the rate of LIBOR (as defined
under Article X) at the due date of such Installment, plus two percent (2%) per annum-from the respective due dates thereof to the date of application. 

  

	 	(c)	 In the event of the sale of the VESSEL in its incomplete state, the proceeds of sale received by the SELLER shall be applied firstly to all
expenses attending such sale and otherwise incurred by the SELLER as a result of the BUYER’s default, and then to payment of all costs of construction of the VESSEL and further to compensation for all losses and damages directly or indirectly
incurred by the SELLER as a result of the BUYER’s default, including but not limited to, a reasonable loss of profit due to the rescission of this CONTRACT, less the Retained Installments. 

 

	 	(d)	 In either of the above events of sale, if the proceeds of sale exceeds the total of amount to which such proceeds are to be applied as aforesaid,
the SELLER shall promptly pay the excess to the BUYER without interest, provided, however, that the amount of such payment to the BUYER shall in no event 

  
 37 

	 	 
exceed the total amount of the Retained Installments and the costs of the BUYER’S SUPPLIES, if any. 

 

	 	(e)	 If the proceeds of sale are insufficient to pay such total amounts payable as aforesaid, the BUYER shall promptly pay the deficiency to the SELLER
upon requested in no event later than five (5) BUSINESS DAYS from the RECISSION DATE. 

 (End of Article) 

  
 38 

 ARTICLE XII – INSURANCE 

 

	1.	 Extent of Insurance Coverage: 

From the time of the erection of first block of the VESSEL to the building berth/dock until the same is completed, delivered to
and accepted by the BUYER, the SELLER shall cause the BUILDER, at the BUILDER’s 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 Japanese insurance companies under coverage corresponding to the Japanese Builder’s Risks Insurance Clause. 

The amount of such insurance coverage shall, up to the date of delivery of the VESSEL, be in an amount at least equal to, but
not limited to, the aggregate of the payment made by the BUYER to the SELLER including 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. 
  

	2.	 Application of Recovered Amount: 

  

	 	(a)	 Partial loss: 

In the event the VESSEL 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 amount recovered under the insurance policy referred to in Paragraph 1 of this Article 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. 

 

	 	(b)	 Total Loss: 

However, in the event that the VESSEL is determined to be an actual or constructive total loss, the SELLER shall refund
immediately to the BUYER the amount of all Installments paid to the SELLER under this CONTRACT without any interest, whereupon this CONTRACT shall be deemed to be rescinded and all rights, duties, liabilities and obligations of each of the parties
to the other shall terminate forthwith. 

  
 39 

	3.	 Termination of SELLER’s Obligation to Insure: 

The SELLER’s obligation to insure the VESSEL hereunder shall cease and terminate forthwith upon delivery of the VESSEL as
evidenced by the duly signed Protocol of Delivery and Acceptance. 
 (End of Article) 

  
 40 

 ARTICLE XIII – DISPUTE AND ARBITRATION 

 

	1.	 Proceedings: 

In the event of any dispute between the parties hereto as to any matter arising out of or relating to this CONTRACT or any
stipulations herein or with respect hereto which cannot be settled by the parties themselves, such dispute shall be submitted to and settled by arbitration held in London, England, in accordance with the Laws of England and in accordance with the
rules then in force of the London Maritime Arbitrators’ Association (the “LMAA”). 
 Either party may demand
arbitration of any such disputes by giving written notice to the other party. Any demand for arbitration by either party hereto shall state the name of the arbitrator appointed by such party and shall also state specifically the question or
questions as to which such party is demanding arbitration. 
 Within twenty (20) days after receipt of such notice of
such demand for arbitration, the other party shall in turn appoint a second arbitrator. The two arbitrators thus appointed shall thereupon select a third arbitrator, and the three arbitrators so named shall constitute the arbitration tribunal
(hereinafter called the “ARBITRATION TRIBUNAL”) for the settlement of such dispute. 
 In the event, however, that
the said other party should fail to appoint a second arbitrator as aforesaid within twenty (20) days following receipt of notice of demand of arbitration, it is agreed that the said other party shall thereby be deemed to have accepted and
appointed as its own arbitrator the one appointed by the party demanding arbitration, and the arbitration shall proceed forthwith before this sole arbitrator who alone, in such event, shall constitute the ARBITRATION TRIBUNAL. And in the further
event that the two arbitrators appointed respectively by the parties hereto as aforesaid should be unable to reach agreement on the appointment of the third arbitrator within twenty (20) days from the date on which the second arbitrator is
appointed, either party 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 made by the sole arbitrator or by the majority of the three (3) arbitrators, as the case may be, subject to any
appeal by either party (including, without limitation an appeal by a party on a point of law under section 69(3) of the Arbitration Act 1996), shall be final, conclusive and binding upon the parties hereto. Any arbitration proceedings under this
CONTRACT shall be subject to the provisions of the Arbitration Act 1996 or any statutory modification or re-enactment thereof for the time being in force. 

  
 41 

 Notwithstanding the preceding provisions of this paragraph, it is recognized that
in the event of any dispute or difference of opinion arising in regard to the construction of the VESSEL, her machinery or equipment, or concerning the quality of materials or workmanship thereof or thereon or regarding the CONTRACT or the
SPECIFICATIONS, such dispute may be referred to the CLASSIFICATION SOCIETY upon mutual agreement of the parties hereto as far as the CLASSIFICATION SOCIETY agrees to determine such dispute, or to such other expert upon mutual agreement of the
parties hereto. The decision of the CLASSIFICATION SOCIETY or the expert shall be final and binding upon the parties hereto 
  

	2.	 Notice of Award: 

The award shall immediately be given to the BUYER and the SELLER in writing or by facsimile confirmed in writing. 

 

	3.	 Expenses: 

The ARBITRATION BOARD shall determine which party shall bear the expenses of the arbitration or the portion of such expenses
which each party shall bear. 
  

	4.	 Entry in Court: 

Judgment upon the award may be entered in any court having jurisdiction thereof. 

 

	5.	 Alteration of DELIVERY DATE: 

In the event of reference to arbitration of any dispute arising out of the matters occurring prior to delivery of the VESSEL,
the award may include any postponement of the DELIVERY DATE which the ARBITRATION BOARD may deem appropriate. 
 (End of Article) 

  
 42 

 ARTICLE XIV – RIGHT OF ASSIGNMENT 

Neither of the parties hereto shall assign this CONTRACT to a third party unless prior consent of the other party is given in writing. 

SELLER to provide their consent to the assignment of the contract to the BUYER’s financing bank upon request from the BUYERS. Such consent
not to be unreasonably withheld or delayed by the SELLER. 
 In case of assignment by the BUYER, such assignment shall further be subject to
approval of the Japanese Government, and the BUYER shall remain liable under this CONTRACT. 
 This CONTRACT shall enure to the benefit of
and shall be binding upon the lawful Successors or the legitimate assigns of either of the parties hereto. 
 (End of Article) 

  
 43 

 ARTICLE XV – TAXES AND DUTIES 

 

	1.	 Taxes and Duties 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 as defined in Article XVII hereof and any other items to be supplied by the BUYER. 
  

	2.	 Taxes and Duties 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 to be procured by the SELLER and/or the BUILDER for construction of the VESSEL. 

(End of Article) 

  
 44 

 ARTICLE XVI – PATENTS, TRADEMARKS, 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 shall defend 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 also including costs and expenses of litigation, if any. 

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/or the BUILDER’s warranty hereunder does not extend to the BUYER’S SUPPLIES as defined in Article XVII hereof. 
  

	2.	 General Plans, SPECIFICATIONS and Working Drawings: 

The SELLER retains all rights with respect to the SPECIFICATIONS, and plans and working drawings, technical descriptions, calculations, test
results and other data, information and documents concerning the design and construction of the VESSEL (hereinafter collectively called the “PROPRIETARY INFORMATION”) and the BUYER undertakes therefore not to disclose the same or divulge
any information contained therein to any third parties, without the prior written consent of the SELLER, excepting where it is necessary for usual operation, repair, maintenance and use of the VESSEL including the sale of the VESSEL to a third party
after delivery of the VESSEL. The BUYER shall make known to such third parties to whom the PROPRIETARY INFORMATION needs to be disclosed, the terms of this Paragraph and ensure that they are under obligation to be bound by the terms hereof. 

(End of Article) 

  
 45 

 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 of the items to be furnished by the BUYER as specified in
3:01 General Part of the SPECIFICATIONS (hereinafter called the “BUYER’S SUPPLIES”) at warehouse or other storage of the SHIPYARD or, if the SELLER and/or the BUILDER so requests, at premises of the BUILDER’s subcontractor in the
proper condition ready for installation in or on the VESSEL, in accordance with the time schedule designated by the SELLER and/or 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 SELLER and/or 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 SELLER and/or the BUILDER, shall, without any charge to the
SELLER and/or the BUILDER, cause the representatives of the manufacturers of the BUYER’S SUPPLIES to assist the SELLER and/or the BUILDER in installation thereof in or on the VESSEL and/or to carry out installation thereof by themselves or to
make necessary adjustments thereof at the SHIPYARD or premises of the BUILDER’s subcontractor. 

  

	 	(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/or the
BUILDER’s other rights hereunder and without being responsible for any consequences therefrom. In such case, the BUYER shall reimburse the SELLER for all costs and expenses incurred by the SELLER and/or the BUILDER in such repair or adjustment
and the DELIVERY DATE may be postponed up to 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, the DELIVERY DATE may be extended up to a period of
such delay in delivery. In such event, the BUYER shall be responsible and pay to the SELLER for all losses and damages incurred by the SELLER and/or the BUILDER by reason of such delay in delivery of the BUYER’S SUPPLIES and such payment shall
be made upon delivery of the VESSEL. If delay in delivery 

  
 46 

	 	 
of any of the BUYER’S SUPPLIES exceeds fifteen (15) 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, without prejudice to the SELLER’s and/or the BUILDER’s other rights as hereinabove provided, either; 

- i) without installation of such BUYER’S SUPPLIES in or on the VESSEL, or 

- ii) with installation of substitute for such BUYER’S SUPPLIES in or on the VESSEL, 

and the BUYER shall accept and take delivery of the VESSEL so constructed. 

The cost of such substitute provided in the above ii) shall be reimbursed by the BUYER to the SELLER upon delivery of the
VESSEL. 
  

	2.	 Responsibility of SELLER: 

The SELLER shall procure the BUILDER to be responsible for storing and handling with reasonable care of the BUYER’S
SUPPLIES after delivery thereof at the SHIPYARD or any other place designated by the SELLER and/or BUILDER but in all circumstances the BUYER’S SUPPLIES shall be clearly marked and identified by the BUYER as belonging to the BUYER, and shall,
at its own cost and expense, install them in or on the VESSEL, unless otherwise provided herein or agreed by the parties hereto, provided, always, that the SELLER and/or the BUILDER shall not be responsible for quality, efficiency and/or performance
of any of the BUYER’S SUPPLIES. 
 However, the BUYER shall be responsible for storing, handling and loading of any
BUYER’S stores, provisions and other articles for the VESSEL, other than the BUYER’S SUPPLIES. 
 (End of Article) 

  
 47 

 ARTICLE XVIII – NOTICE 

 

	1.	 Address: 

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

To the BUYER: 

Attention: 

To the SELLER: 

SUMITOMO CORPORATION 

Ship & Marine Project Dept. No. 1 

1-8-11, Harumi, Chuo-ku, Tokyo, Japan 
  

	2.	 Language: 

Any and all notices and communications in connection with this CONTRACT shall be written in the English language. 

(End of Article) 

  
 48 

 ARTICLE XIX – EFFECTIVE DATE OF CONTRACT 

This CONTRACT shall become effective as from the date of execution hereof by the BUYER and the SELLER (the “EFFECTIVE DATE’). 

However, in the event that Construction Permit for the VESSEL shall not have been issued by the Japanese Government before the keel-laying of
the VESSEL provided always that the SELLER has used reasonable endeavours to obtain the same, then in such case, the SELLER shall immediately refund any amounts received from the BUYER to date without any interest and this CONTRACT shall thereafter
become null and void, unless otherwise mutually agreed 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. 
 (End of Article) 

  
 49 

 ARTICLE XX – INTERPRETATION 

 

	1.	 Laws Applicable: 

The parties hereto agree that the validity and interpretation of this CONTRACT and of each Article and part thereof shall be
governed by 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 prevail and govern. The SPECIFICATIONS and plans are also intended to explain each other, and anything shown on the plans and not stipulated in the SPECIFICATIONS or stipulated in the SPECIFICATIONS and not shown on the plans shall be
deemed and considered as if embodied in both. In the event of conflict between the SPECIFICATIONS and plans, the SPECIFICATIONS shall prevail and govern. 
  

	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 subject matter of this CONTRACT. 
 (End of Article) 

  
 50 

 ARTICLE XXI – CONFIDENTIALITY 

Neither of the parties hereto shall disclose or divulge any or whole terms and conditions under this CONTRACT to any third party unless prior
consent of the other party is given in writing, excepting where it is necessary for the party to perform its obligations under this CONTRACT or to the extent it is required by law, by any governmental or other regulatory authority or by a court or
other authority of competent jurisdiction. In case of such disclosure, The BUYER shall send, where possible and where it is not prohibited from doing so, prior notice to the SELLER together with the disclosure wording. 

The parties hereto shall make known to such third parties to whom any terms of this CONTRACT needs to be disclosed the terms of this Article
and ensure that they are under obligation to be bound by the terms hereof. 
 This Article shall continue in force for a period of four
(4) years from the Effective Date of this CONTRACT notwithstanding the completion or termination of this CONTRACT. 
 (End of Article)

  
 51 

 ARTICLE XXII – COMPLIANCE AND ANTI-BRIBERY 

 

	1.	 Representations of the Parties: 

During the term of this CONTRACT, each party certifies and represents as follows: 

 

	 	(a)	 It will comply with the laws of any jurisdiction applicable to such party as it relates to this CONTRACT, including but not limited to any
applicable anti-corruption and anti-bribery laws, also including, without limitation, the United States Foreign Corrupt Practices Act (“US FCPA”), the UK Bribery Act 2010 (“UK Bribery Act”) and the anti-bribery or anti-corruption
laws of Japan as such laws may be amended from time to time. 

  

	 	(b)	 In connection with this CONTRACT, it has not and will not make any payments or gifts or provide other advantages, or any offers or promises of
payments or gifts or other advantages of any kind, directly or indirectly, to: 

  

	 	a.	 any person or entity with the intention of obtaining or retaining a business advantage for itself or the other party to this CONTRACT;

  

	 	b.	 any official or member of any government or any agency or instrumentality thereof; any official or member of any public international organisation
or any agency or instrumentality thereof; any or official of a political party or any candidate for political office (herein ‘public official’); or any person while knowing or reasonably suspecting that all or a portion of such money or
thing of value will be offered, given or promised, directly or indirectly, to any public official, in violation of the UK Bribery Act, the US FCPA or the laws of Japan. 

 

	 	c.	 In connection with this CONTRACT, it has not and will not request, agree to accept or accept from any person or entity any payments or gifts or
other advantages, or any offers or promises of payments or gifts or other advantages of any kind, directly or indirectly, as a reward or inducement to perform its obligations under this CONTRACT in any way improperly. 

 

	2.	 Indemnification: 

Each party agrees that it will fully indemnify, defend and hold harmless the other party from any claims, liabilities,
damages, expenses, penalties, judgments and losses (including reasonable 

  
 52 

 
attorneys’ fees) assessed or resulting by reason of a breach of the representations and undertakings contained in this Article XXII to the extent permitted by law. 

(End of Article) 

  
 53 

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

									
	 BUYER:
	 		 	 SELLER:

SUMITOMO CORPORATION

			
	 	 		 	 
	 By:
	 		 		 	 By:
	 	
	 Title:
	 		 		 	 Title:
	 	

  
 54 

 Schedule 1 Form of Corporate Refund Guarantee 

Trust Company Complex, Ajeltake Road, Ajeltake Island, 
 Majuro,
Marshall Islands, MH96960 
 Date
:                                 

Dear Sirs, 
 IRREVOCABLE REFUNDMENT LETTER OF
GUARANTEE 
 MES HULL NO.              

 
  

In consideration of your making advance payments to Sumitomo Corporation, Tokyo, Japan of any or all of the installments (or
part thereof) aggregating United States Dollars                     representing fifty percent of the contract price payable before delivery of one
(1) Deadweight 60,200 Metric Ton Type Single Screw Motor Bulk Carrier to be built by Mitsui Engineering & Shipbuilding Co., Ltd., Tokyo, Japan with their Hull
No.             (hereinafter called the “Vessel”), in conformity with the terms and conditions of the Shipsales Contract
dated                     (hereinafter called the “Contract”) between you and us, covering the construction and sale of the Vessel, we, the
undersigned, hereby absolutely, unconditionally and irrevocably guarantee that we will pay to you the amounts of said payments in United States Dollars to the extent so paid by you to us, together with interest thereon as provided in the Contract,
upon your first written demand stating that the said sum has become refundable under and by virtue of the Contract. 
 The
liability of the undersigned under this guarantee shall not be affected by any amendment, changes or modifications to the Contract, provided that such amendment, change or modification shall not affect the amount of the liability of the undersigned
under the guarantee. 
 This Letter of Guarantee shall become null and void upon receipt by you of the sum guaranteed hereby
together with interest thereon or upon the acceptance by you of the delivery of the Vessel constructed in accordance with terms and conditions of the Contract and in either case this Letter of Guarantee shall be returned to us. 

This Letter of Guarantee, and all rights and obligations arising hereunder shall be governed by and construed in accordance
with the laws of England with arbitration in London. 

  
 55 

 
			
	SUMITOMO CORPORATION
	
	  

	  By:	 	
	Title:	 	

  
 56

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00224-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00224-of-00352.parquet"}]]