Document:

EX-10.13

 Exhibit 10.13 
  

			
	Shipbuilding Contract	  	Hull No .            

 SHIPBUILDING CONTRACT 

FOR 
 CONSTRUCTION OF ONE
81,600 DWT BULK CARRIER 
 (HULL NO.:         ) 

BETWEEN 
 [SUBSIDIARY]

 as BUYER 
 and

 CHINA SHIPBUILDING TRADING COMPANY, LIMITED 

with 
 SHANGHAI
JIANGNAN-CHANGXING SHIPBUILDING CO., LTD. 
 Collectively as SELLER 

			
	Shipbuilding Contract	  	Hull No.            

  

 CONTENT 
  

					
	 ARTICLE 1—DESCRIPTION AND CLASS
	  	 	7	  
		
	 1. DESCRIPTION
	  	 	7	  
		
	 2. CLASS AND RULES
	  	 	7	  
		
	 3. PRINCIPAL PARTICULARS AND DIMENSIONS OF THE VESSEL
	  	 	8	  
		
	 4. GUARANTEED SPEED
	  	 	8	  
		
	 5. GUARANTEED FUEL CONSUMPTION
	  	 	8	  
		
	 6. GUARANTEED DEADWEIGHT
	  	 	8	  
		
	 7. SUBCONTRACTING
	  	 	9	  
		
	 8. FLAG and REGISTRATION
	  	 	9	  
		
	 9. STANDARD OF CONSTRUCTION
	  	 	9	  
		
	 ARTICLE 2—CONTRACT PRICE & TERMS OF PAYMENT
	  	 	10	  
		
	 1. CONTRACT PRICE
	  	 	10	  
		
	 2. CURRENCY
	  	 	10	  
		
	 3. TERMS OF PAYMENT
	  	 	10	  
		
	 4. METHOD OF PAYMENT
	  	 	11	  
		
	 5. PREPAYMENT
	  	 	12	  
		
	 6 . SECURITY FOR PAYMENT OF INSTALMENTS BEFORE DELIVERY
	  	 	12	  
		
	 7. REFUNDS
	  	 	12	  
		
	 ARTICLE 3—ADJUSTMENT OF THE CONTRACT PRICE
	  	 	14	  
		
	 1. DELAYED DELIVERY
	  	 	14	  
		
	 2. INSUFFICIENT SPEED
	  	 	15	  
		
	 3. EXCESSIVE FUEL CONSUMPTION
	  	 	15	  
		
	 4. DEADWEIGHT
	  	 	16	  
		
	 5. EFFECT OF RESCISSION
	  	 	16	  
		
	 ARTICLE 4—SUPERVISION AND INSPECTION
	  	 	17	  
		
	 1. APPOINTMENT OF THE BUYER’S SUPERVISOR
	  	 	17	  

  
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	Shipbuilding Contract	  	Hull No.            

  

					
	 2. APPROVAL OF PLANS AND DRAWINGS
	  	 	17	  
		
	 3. SUPERVISION AND INSPECTION BY THE SUPERVISOR
	  	 	18	  
		
	 4. LIABILITY OF THE SELLER
	  	 	18	  
		
	 5. SALARIES AND EXPENSES
	  	 	19	  
		
	 6. REPLACEMENT OF SUPERVISOR
	  	 	19	  
		
	 7. REPORT OF PROGRESS
	  	 	19	  
		
	 ARTICLE 5—MODIFICATION, CHANGES AND EXTRAS
	  	 	20	  
		
	 1. HOW EFFECTED
	  	 	20	  
		
	 2. CHANGES IN RULES AND REGULATIONS, ETC.
	  	 	20	  
		
	 3. SUBSTITUTION OF MATERIALS AND/OR EQUIPMENT
	  	 	21	  
		
	 4. BUYER’S SUPPLIED ITEMS
	  	 	21	  
		
	 ARTICLE 6—TRIALS
	  	 	23	  
		
	 1. NOTICE
	  	 	23	  
		
	 2. HOW CONDUCTED
	  	 	23	  
		
	 3. TRIAL LOAD DRAFT
	  	 	24	  
		
	 4. METHOD OF ACCEPTANCE OR REJECTION
	  	 	24	  
		
	 5. DISPOSITION OF SURPLUS CONSUMABLE STORES
	  	 	25	  
		
	 6. EFFECT OF ACCEPTANCE
	  	 	25	  
		
	 ARTICLE 7—DELIVERY
	  	 	26	  
		
	 1. TIME AND PLACE
	  	 	26	  
		
	 2. WHEN AND HOW EFFECTED
	  	 	26	  
		
	 3. DOCUMENTS TO BE DELIVERED TO THE BUYER
	  	 	26	  
		
	 4. TITLE AND RISK
	  	 	27	  
		
	 5. REMOVAL OF VESSEL
	  	 	27	  
		
	 6. TENDER OF THE VESSEL
	  	 	28	  
		
	 ARTICLE 8—DELAYS & EXTENSION OF TIME FOR DELIVERY
	  	 	29	  
		
	 1. CAUSE OF DELAY
	  	 	29	  
		
	 2. NOTICE OF DELAY
	  	 	29	  

  
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	Shipbuilding Contract	  	Hull No.            

  

					
	 3. RIGHT TO CANCEL FOR EXCESSIVE DELAY
	  	 	29	  
		
	 4. DEFINITION OF PERMISSIBLE DELAY
	  	 	30	  
		
	 ARTICLE 9—WARRANTY OF QUALITY
	  	 	31	  
		
	 1. GUARANTEE OF MATERIAL AND WORKMANSHIP
	  	 	31	  
		
	 2. NOTICE OF DEFECTS
	  	 	31	  
		
	 3. REMEDY OF DEFECTS
	  	 	31	  
		
	 4. EXTENT OF THE SELLER’S LIABILITY
	  	 	32	  
		
	 ARTICLE 10—CANCELLATION, REJECTION AND RESCISSION BY THE
	  	 	34	  
		
	 BUYER ARTICLE 11—BUYER’S DEFAULT
	  	 	35	  
		
	 1. DEFINITION OF DEFAULT
	  	 	35	  
		
	 2. NOTICE OF DEFAULT
	  	 	35	  
		
	 3. INTEREST AND CHARGE
	  	 	35	  
		
	 4. DEFAULT BEFORE DELIVERY OF THE VESSEL
	  	 	36	  
		
	 5. SALE OF THE VESSEL
	  	 	36	  
		
	 ARTICLE 12—INSURANCE
	  	 	38	  
		
	 1. EXTENT OF INSURANCE COVERAGE
	  	 	38	  
		
	 2. APPLICATION OF RECOVERED AMOUNT
	  	 	38	  
		
	 3. TERMINATION OF THE SELLER’S OBLIGATION TO INSURE
	  	 	39	  
		
	 ARTICLE 13—DISPUTES AND ARBITRATION
	  	 	40	  
		
	 1. PROCEEDINGS
	  	 	40	  
		
	 2. ALTERNATIVE ARBITRATION BY AGREEMENT
	  	 	40	  
		
	 3. NOTICE OF AWARD
	  	 	40	  
		
	 4. EXPENSES
	  	 	41	  
		
	 5. AWARD OF ARBITRATION
	  	 	41	  
		
	 6. ENTRY IN COURT
	  	 	41	  
		
	 7. ALTERATION OF DELIVERY TIME
	  	 	41	  
		
	 8. WORK CONTINUANCE
	  	 	41	  
		
	 ARTICLE 14—RIGHT OF ASSIGNMENT
	  	 	42	  

  
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	 ARTICLE 15—TAXES AND DUTIES
	  	 	43	  
		
	 1. TAXES
	  	 	43	  
		
	 2. DUTIES
	  	 	43	  
		
	 ARTICLE 16—PATENTS, TRADEMARKS AND COPYRIGHTS
	  	 	44	  
		
	 ARTICLE 17—NOTICE
	  	 	45	  
		
	 ARTICLE 18—EFFECTIVE DATE OF CONTRACT
	  	 	46	  
		
	 ARTICLE 19—INTERPRETATION
	  	 	47	  
		
	 1. LAW APPLICABLE
	  	 	47	  
		
	 2. DISCREPANCIES
	  	 	47	  
		
	 3. ENTIRE AGREEMENT
	  	 	47	  
		
	 4. DEFINITION
	  	 	47	  
		
	 EXHIBIT “A”
	  	 	49	  
		
	 EXHIBIT B IRREVOCABLE LETTER OF GUARANTEE
	  	 	52	  

  
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	Shipbuilding Contract	  	Hull No.            

  

 SHIPBUILDING CONTRACT 

FOR 
 CONSTRUCTION OF ONE 81,600 DWT
BULK CARRIER 
 (HULL NO.         ) 

This CONTRACT, entered into this day of              by and between
                            , a corporation organized and existing under the Laws of Malta, having its
registered office at 168, St. Christopher Street, Valletta VLT 1467, Malta, (hereinafter called the “BUYER”) on one part; and CHINA SHIPBUILDING TRADING COMPANY, LIMITED, a corporation organized and existing under the Laws of the
People’s Republic of China, having its registered office at 56(Yi) Zhongguancun Nandajie, Beijing 100044, the People’s Republic of China (hereinafter called “CSTC”), and SHANGHAI JIANGNAN-CHANGXING SHIPBUILDING CO., LTD., Ltd, a
corporation organized and existing under the Laws of the People’s Republic of China, having its registered office at No.2468 Changxing Jiangnan Avenue Changxing Town Chongming County, Shanghai 201913, China (hereinafter called the
“BUILDER”) on the other part. CSTC and the BUILDER are hereinafter collectively called the “SELLER” remaining fully responsible for due fulfillment of this Contract. CSTC and the Builder shall be jointly and severally liable for
the obligations and liabilities of the SELLER under or in connection with this Contract. 
 WITNESSETH 

In consideration of the mutual covenants contained herein, the SELLER agrees to design, build, launch, equip and complete at the BUILDER’s Shipyard and
to sell and deliver to the BUYER after completion and successful trial one (1) 81,600 DWT bulk carrier as more fully described in Article 1 hereof (hereinafter called the “VESSEL”), to be registered under the Liberian flag and the
BUYER agrees to purchase and take delivery of the aforesaid VESSEL from the SELLER and to pay for the same in accordance with the terms and conditions hereinafter set forth. 

  
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	Shipbuilding Contract	  	Hull No.            

  

 ARTICLE 1—DESCRIPTION AND CLASS 

 

	1.	DESCRIPTION 

 The VESSEL is about 81,600 metric tons deadweight bulk carrier in sea water of
specific gravity 1.025, at scantling draft moulded of 14.45 meters of the class described below. The VESSEL shall have the BUILDER’s Hull No.              and shall be constructed,
equipped and completed in accordance with the following documentation: 
  

	 	(1)	Specification 

  

	 	(2)	General Arrangement 

  

	 	(3)	Midship Section 

  

	 	(4)	Makers List 

 Attached hereto and signed by each of the parties to this Contract (hereinafter
collectively called the “Specifications”), making an integral part hereof. 
  

	2.	CLASS AND RULES 

 The VESSEL, including its machinery and equipment, shall be designed and
constructed in accordance with the rules and regulations of                              (hereinafter called
the “Classification Society”) and shall be distinguished in the record by the symbol of                         and
shall also comply with the rules and regulations as fully described in the Specifications. 
 The requirements of the authorities as fully
described in the Specifications including that of the Classification Society are to include any additional rules or circulars thereof issued and become effective as at the date of signing this Contract. 

The SELLER shall arrange with the Classification Society to assign a representative or representatives (hereinafter called the
“Classification Surveyor”) to the BUILDER’s Shipyard for supervision of the construction of the VESSEL. 
 All fees and
charges incidental to Classification and to comply with the rules and regulations of this Contract as described in the Specifications issued and become effective up to the date of this Contract as well as royalties, if any, payable on account of the
construction of the VESSEL shall be for the account of the SELLER, except as otherwise provided and agreed herein. The key plans, materials and workmanship entering into the construction of the VESSEL shall at all times be subject to inspections and
tests in accordance with the rules and regulations of the Classification Society. 
 Decisions of the Classification Society as to compliance
or noncompliance with Classification rules and regulations shall be final and binding upon the parties hereto. 

  
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	Shipbuilding Contract	  	Hull No.            

  

	3.	PRINCIPAL PARTICULARS AND DIMENSIONS OF THE VESSEL 

  

							
		  	(a)    	  	 Hull
 Length overall

Length between perpendiculars
 Breadth, moulded

Depth, moulded
 Designed Draught, moulded

Scantling Draught, moulded
	  	 abt. 229.00 m
 225.50 m

32.26 m
 20.05m

20.05 m
 12.20 m m

14.45 m

  

	 	(b)	Propelling Machinery 

 The VESSEL shall be equipped, in accordance with the Specifications, with
one (1) set of MANB&W,                          type Main Engine. 

 

	4.	GUARANTEED SPEED 

 The SELLER guarantees that the trial speed, after correction, is to be not
less than 14.3 knots at the designed draught moulded of 12.2 m. 
 The trial speed shall be corrected for wind speed and shallow water
effect. The correction method of the speed shall be as specified in the Specifications. 
  

	5.	GUARANTEED FUEL CONSUMPTION 

 The SELLER guarantees that the fuel oil consumption of the Main
Engine is not to exceed                  grams/kw.h at CSR and shop trial based on diesel fuel oil having a lower calorific value of 42700 kj/kg and at ISO 3046/1-1986
standard ambient condition. The fuel oil consumption shall be subject to a tolerance of 5%. 
  

	6.	GUARANTEED DEADWEIGHT 

 The SELLER guarantees that the VESSEL is to have a deadweight of not
less than 81,600 metric tons at the scantling draft moulded of 14.45 meters in sea water of 1.025 specific gravity. 
 The term,
“Deadweight”, as used in this Contract, shall be as defined in the Specifications. 
 The actual deadweight of the VESSEL expressed
in metric tons shall be based on calculations made by the BUILDER and checked by the BUYER, and all measurements necessary for such calculations shall be performed in the presence of the BUYER’S supervisor(s) or the party authorized by the
BUYER. 
 Should there be any dispute between the BUILDER and the BUYER in such calculations and/or measurements, the decision of the
Classification Society shall be final. 

  
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	Shipbuilding Contract	  	Hull No.            

  

	7.	SUBCONTRACTING 

 The SELLER may, at its sole discretion and responsibility, subcontract any
portion of the construction work of the VESSEL to experienced subcontractors, but delivery and final assembly into the VESSEL of any such work subcontracted shall be at the BUILDER’s Shipyard. However, any important subcontracting works such as
large blocks, installation of main engine, accommodation etc. shall be carried out with BUYER’s prior written approval which will not be unreasonably withheld. The SELLER shall remain responsible for such subcontracted work. BUYER’s rights
herein shall not in any way be reduced in respect of subcontracted work. 
  

	8.	FLAG and REGISTRATION 

 It is agreed that the VESSEL shall be designed, constructed according to
the requirement to fly Liberian flag, with Malta flag at BUYER’s option, which shall be declared by the BUYER on or before                     .

 The vessel shall be registered by the BUYER at its own cost and expenses under the Liberian flag at the time of delivery and acceptance
thereof. 
  

	9.	STANDARD OF CONSTRUCTION 

 The VESSEL’s construction materials, equipment and workmanship
shall be carried out in a sound and workmanlike manner according to proper BUILDER practice for a new vessel of such type and Classification rules and regulations, and as defined in the Specifications. 

  
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	Shipbuilding Contract	  	Hull No.            

  

 ARTICLE 2—CONTRACT PRICE & 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 cost for the BUYER’s Supplies as provided in Article 5 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 by the BUYER to the SELLER 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 “Banking Day” referred to in this Contract means a day on which commercial banks are open for domestic and foreign exchange business in London, New York, Hong Kong, and Beijing): 

 

	 	(a)	1st Instalment: 

 The sum of United States Dollars
                                        ,
representing ten percent (10%) of the Contract Price, shall become due and payable and be paid by the BUYER within five (5) Banking Days after the BUYER’s receipt of the Refund Guarantee. 

 

	 	(b)	2nd Instalment: 

 The sum of United States Dollars
                                        ,
representing five percent (5%) of the Contract Price, shall become due and payable and be paid within five (5) Banking Days after the cutting of the first steel plate of the VESSEL in the BUILDER’s workshop which to be confirmed by
Classification Society, or                  whichever the later. The SELLER shall notify with a telefax or email notice to the BUYER stating that the 1st steel plate has
been cut in its workshop and demand for payment of this instalment. 
  

	 	(c)	3rd Instalment: 

 The sum of United States Dollars
                                        ,
representing fifteen percent (15%) of the Contract Price, shall become due and payable and be paid within five (5) Banking Days after keel-laying of the first section of the VESSEL which to be confirmed by Classification Society, or
whichever 

  
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	Shipbuilding Contract	  	Hull No.            

  

 
the later. The keel-laying shall be notified by the SELLER with a telefax or email notice to the BUYER stating that the said keel-laying has been carried out. The SELLER shall send to the BUYER a
telefax or email demand for payment of this instalment. 
  

	 	(d)	4th Installment (Payment upon Delivery of the VESSEL): 

 The sum of United States Dollars
                                        ,
representing seventy percent (70%) of the Contract Price, plus any increase or minus any decrease due to modifications and/or adjustments of the Contract Price in accordance with provisions of the relevant Articles hereof, shall become due and
payable and be paid by the BUYER to the SELLER concurrently with delivery of the VESSEL. The SELLER shall send to the BUYER a telefax or email demand for this installment ten (10) days prior to the scheduled date of delivery of the VESSEL. 

 

	4.	METHOD OF PAYMENT 

  

	 	(a)	1st Instalment: 

 The BUYER shall remit the amount of this installment in accordance with
Article II, Paragraph 3 (a) by telegraphic transfer to                      as receiving bank nominated by the SELLER, for credit to the account
of                              with SWIFT advice from
                     or through other receiving bank to be nominated by the SELLER from time to time and such nomination shall be notified to the
BUYER at least 10 days prior to the due date for payment. 
  

	 	(b)	2nd Instalment: 

 The BUYER shall remit the amount of this installment in accordance with
Article II, Paragraph 3(b) by telegraphic transfer to                              as receiving bank
nominated by the SELLER, for credit to the account of CSTC                              with SWIFT advice
from                     , or through other receiving bank to be nominated by the SELLER from time to time and such nomination shall be notified to
the BUYER at least 10 days prior to the due date for payment. 
  

	 	(c)	3rd Installment: 

 The BUYER shall remit the amount of this installment in accordance with
Article II, Paragraph 3(c) by telegraphic transfer to                              as receiving bank
nominated by the SELLER, for credit to the account of 

  
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	Shipbuilding Contract	  	Hull No.            

  

 
with SWIFT advice from                 , or through other receiving bank to be nominated by the SELLER from time to
time and such nomination shall be notified to the BUYER at least 10 days prior to the due date for payment. 
  

	 	(d)	4th Installment (Payable upon delivery of the VESSEL) 

 The BUYER shall, at least seven
(7) days prior to the scheduled date of delivery of the VESSEL, make an irrevocable cash deposit in the name of the BUYER with                 , for a period of
twenty (20) days and covering the amount of this installment (as adjusted in accordance with the provisions of this Contract), with an irrevocable instruction that the said amount shall be released to the SELLER against presentation by the
SELLER to the said                 , of a copy of the Protocol of Delivery and Acceptance signed by the BUYER’s authorized representative and the SELLER. Interest,
if any, accrued from such deposit, shall be for the benefit of the BUYER. 
 If the delivery of the VESSEL is not effected on or before the
expiry of the aforesaid twenty (20) days deposit period, the BUYER shall have the right to withdraw the said deposit plus accrued interest upon the expiry date. However when the newly scheduled delivery date is notified to the BUYER by the
SELLER, the BUYER shall make the cash deposit in accordance with the same terms and conditions as set out above. 
  

	5.	PREPAYMENT 

 The BUYER shall have the right to make prepayment of any and all installments
before delivery of the VESSEL, by giving to the SELLER at least thirty (30) days prior written notice, without any price adjustment of the VESSEL for such prepayment. 
  

	6.	SECURITY FOR PAYMENT OF INSTALMENTS BEFORE DELIVERY 

 The BUYER shall, within 30 days after the
Shipbuilding contract becoming effective, furnish the SELLER with an irrevocable and unconditional Letter of Guarantee in favour of the SELLER issued
by                                        
guaranteeing the BUYER’s obligation for the payment of all 2nd and 3rd instalments of the Contract Price. Such Letter of Guarantee shall be substantially in the form annexed hereto as Exhibit “A”. 

 

	7.	REFUNDS 

 The payments made by the BUYER prior to delivery of the VESSEL shall be in the nature
of advances to the SELLER, and in the event this Contract is rescinded or cancelled by the BUYER in accordance with the specific terms of this Contract permitting such rescission or cancellation, the SELLER shall refund to the BUYER in United States
Dollars the full amount of all sums already paid by the BUYER to the SELLER under this Contract, together 

  
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	Shipbuilding Contract	  	Hull No.            

  

 
with interest (at the rate set out in respective provision thereof) from the respective dates such sums were received by the SELLER to the date of remittance by telegraphic transfer of such
refund to the BUYER. 
 As security to the BUYER, the SELLER shall deliver to the BUYER, as soon as possible after the signing of this
Contract, a Refund Guarantee to be issued by                              (hereinafter referred to as the
Seller’s Bank),                  in the form as per Exhibit “B” annexed hereto. The confirmation for SAFE registration from the refund guarantor shall be
provided within two months after issuance of the refund guarantee. 
 However, in the event of any dispute between the SELLER and the BUYER
with regard to the SELLER’s obligation to repay the installment or installments paid by the BUYER and to the BUYER’S right to demand payment from the Seller’s Bank, under its guarantee, and such dispute is submitted either by the
SELLER or by the BUYER for arbitration in accordance with Article 13 hereof, the SELLER’S BANK shall withhold and defer payment until the arbitration award between the SELLER and the BUYER is published. The SELLER’S BANK shall not be
obligated to make any payment unless the arbitration award orders the SELLER to make repayment. If the SELLER fails to honor the award or judgment, then the SELLER’S BANK shall refund to the extent the arbitration award. 

  
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	Shipbuilding Contract	  	Hull No.            

  

 ARTICLE 3—ADJUSTMENT OF THE CONTRACT PRICE 

The Contract Price of the VESSEL shall be subject to adjustments as hereinafter set forth in the event of the following contingencies. It is hereby understood
by both parties that any reduction of the Contract Price is by way of liquidated damages and not by way of penalty. 
  

	1.	DELAYED DELIVERY 

  

	 	(a)	No adjustment shall be made and the Contract Price shall remain unchanged for the first thirty (30) days of delay in delivery of the VESSEL beyond the Delivery Date as defined in Article 7 hereof ending as of
twelve o’clock midnight of the thirtieth (30th) days of delay. 

  

	 	(b)	If the delivery of the VESSEL is delayed more than thirty (30) days after the Delivery Date as defined in Article 7 hereof, then, in such event, beginning at twelve o’clock midnight of the thirtieth
(30th) day after the date on which delivery is required under this Contract, the Contract Price of the VESSEL shall be reduced by deducting therefrom the sum of United States Dollars
                     per day. In such event of the VESSEL is delayed more than sixty (60) days, the Contract Price of the VESSEL shall be
reduced United States Dollars                      per day. 

Unless the parties hereto agree otherwise , the total reduction in the Contract Price shall be deducted from the 4th installment of the
Contract Price and in any event (including the event that the BUYER consents to take the VESSEL at the later delivery date after the expiration of two hundred and forty (240) days delay of delivery as described in Paragraph 1(c) of this
Article) shall not be more than two hundred ten (210) days at the above specified rate of reduction after the thirty (30) days allowance, that is United States Dollars
                     being the maximum. 
  

	 	(c)	If the delay in the delivery of the VESSEL continues for a period of two hundred and forty (240) days after the Delivery Date as defined in Article 7, then in such event, and after such period has expired, the
BUYER may, at its option, rescind or cancel this Contract in accordance with the provisions of Article 10 of this Contract. The SELLER may at any time after the expiration of the aforementioned two hundred and forty (240) days, if the BUYER has
not served notice of cancellation pursuant to Article 10, demand in writing that the BUYER make an election either cancel or take delivery by a revised delivery date, in which case the BUYER shall, within thirty (30) days after such demand is
received by the BUYER, either notify the SELLER of its decision to cancel this Contract, or consent to take delivery of the VESSEL at a revised delivery date, it being understood and agreed by the parties hereto that, if the VESSEL is not delivered
by such future date, the BUYER shall have the same right of cancellation upon the same terms, as hereinabove provided. 

  

	 	(d)	 For the purpose of this Article, the delivery of the VESSEL shall not be deemed 

  
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	Shipbuilding Contract	  	Hull No.            

  

	 	
delayed and the Contract Price shall not be reduced when and if the Delivery Date of the VESSEL is extended by reason of causes and provisions of Articles 5, 6, 11, 12 and 13 hereof. The Contract
Price shall not be adjusted or reduced if the delivery of the VESSEL is delayed by reason of permissible delays as defined in Article 8 hereof. 

  

	2.	INSUFFICIENT SPEED 

  

	 	(a)	The Contract Price of the VESSEL shall not be affected nor changed by reason of the actual speed (as determined by the Trial Run after correction according to the Specifications) being equal to or less than three-tenths
(3/10) of one knot below the guaranteed speed as specified in Paragraph 4 of Article 1 of this Contract. 

  

	 	(b)	However, commencing with a deficiency of above three-tenths (3/10) of one knot in actual speed (as determined by the Trial Run after correction according to the Specifications) below the guaranteed speed as
specified in Paragraph 4 of Article I of this Contract, the Contract Price shall be reduced as follows: 

 In case of
deficiency 
 above 0.30 but below or at 0.40 knot              USD
             (total) 
 above 0.40 but below or at 0.50 knot
             USD              (total) 

above 0.50 but below or at 0.60 knot              USD
             (total) 
  

	 	(c)	If the deficiency in actual speed (as determined by the Trial Run after correction according to the Specifications) of the VESSEL upon the Trial Run, is more than 0.6 knot below the guaranteed speed of 14.3 knots
, then the BUYER may at its option reject the VESSEL and rescind this Contract in accordance with provisions of Article 10 of this Contract, or may accept the VESSEL at a reduction in the Contract Price as above provided for 0.6 knot only, that is
United States Dollars                      being the maximum. 

 

	3.	EXCESSIVE FUEL CONSUMPTION 

  

	 	(a)	The Contract Price of the VESSEL shall not be affected nor changed if the actual fuel consumption of the Main Engine, as determined by shop trial in manufacturer’s works, as per the Specifications, is greater than
the guaranteed fuel consumption as specified in the Specifications if such actual excess is equal to or less than Five percent (5%). (The fuel oil consumption of the Main Engine is not to exceed        grams per kw per
hour at CSR at shop trial based on the use of a fuel with a low calorific value of 42700KJ/KG and at IS03046/1-1986 standard ambient condition. The fuel oil consumption shall be subject to a tolerance of 5%). 

 

	 	(b)	However, if the actual fuel consumption as determined by shop trial is greater than Five percent (5%) above the guaranteed fuel consumption, then the Contract Price shall be reduced by the sum of United States
Dollars                      for each full one percent (1%) increase in fuel consumption in excess of the above said Five percent
(5%) (fractions of one percent to be prorated). 

  

	 	(c)	 If such actual fuel consumption of the Main Engine as determined by shop trial is more than grams/kw/hour, the BUYER may, at its option, reject the
VESSEL and rescind this Contract in accordance with the provisions of Article 10 of this Contract, or 

  
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may accept the VESSEL at a reduction in the Contract Price as provided in foregoing paragraph (b) subject to a maximum reduction of United States Dollars
                    . Please note that the above mentioned fuel consumption does not include consumption for any engine driven pumps.

  

	4.	DEADWEIGHT 

  

	 	(a)	In the event that there is a deficiency in the actual deadweight of the VESSEL determined as provided in the Specifications, the Contract Price shall not be decreased if such deficiency is Eight hundred
(800.00) metric tons less below the guaranteed deadweight of eighty one thousand six hundred (81,600) metric tons at assigned scantling draft. 

  

	 	(b)	However, the Contract Price shall be decreased by the sum of United States Dollars for each full metric ton of such deficiency being more than Eight hundred (800.00) metric tons. 

 

	 	(c)	In the event that there should be a deficiency in the VESSEL’s actual deadweight which exceeds one thousand four hundred (1400.00) metric tons below the guaranteed deadweight, the BUYER may, at its option,
reject the VESSEL and rescind this Contract in accordance with the provisions of Article 10 of this Contract, or may accept the VESSEL with reduction in the Contract Price in the maximum amount of United States Dollars
                    . 

The total increase or decrease of the Contract Price for the increase or decrease of the deadweight shall be added or deducted from to the 4th
installment of the Contract Price. 
  

	5.	EFFECT OF RESCISSION 

 It is expressly understood and agreed by the parties hereto that in any
case as stated herein, if the BUYER rescinds this Contract pursuant to any provision under this Article, the BUYER, save its rights and remedy set out in Article 10 hereof, shall not be entitled to any liquidated damage or compensation whether
described above or otherwise. 

  
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 ARTICLE 4—SUPERVISION AND INSPECTION 

 

	1.	APPOINTMENT OF THE BUYER’S SUPERVISOR 

 The BUYER shall send in good time to and maintain
at the BUILDER’s Shipyard, at the BUYER’s own cost and expense, one or more representative(s) who shall be duly accredited in writing by the BUYER (such representative(s) being hereinafter collectively and individually called the
“Supervisor”) to supervise and survey the construction by the BUILDER of the VESSEL, her engines and accessories. 
 The BUILDER
shall give due notice to the BUYER and/or the Supervisor of the scheduled performance of ship construction work for which the attendance of the Supervisor is required under this Contract or the Specifications. 

 

	2.	APPROVAL OF PLANS AND DRAWINGS 

 The parties hereto shall, within Thirty (30) days after
signing of this Contract, mutually agree a list of all the plans and drawings, which are to be sent to the BUYER (hereinbelow called “the LIST”). Before arrival of the Supervisor at the BUILDER’s Shipyard, the plans and drawings
specified in the LIST shall be sent to the BUYER, and the BUYER shall, within Fourteen (14) days after receipt thereof (excluding mailing time), return such plans and drawings submitted by the SELLER with comments, if any. Notwithstanding the
above, the BUYER shall nevertheless waive its right to comment on the plans and drawings if such plans and drawings have been previously applied to build other vessels with the same specification as that of the Vessel. 

Concurrently with the arrival of the Supervisor at the BUILDER’s Shipyard, the BUYER shall notify the BUILDER in writing, stating the
authority which the said Supervisor shall have, with regard to the Supervisor can, on behalf of the BUYER, give comments, as the case may be, which of the plans and drawings specified in the LIST but not yet been sent to the BUYER, nevertheless in
line with the Supervisor’s authority. The Supervisor shall, within five (5) days after receipt thereof, return those plans and drawings with comments, if any. 

Unless notification is given to the BUILDER by the Supervisor or the BUYER of the comments to any plans and drawings within the above
designated period of time for each case, the said plans and drawings shall be implemented for construction by the BUILDER. 

  
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	3.	SUPERVISION AND INSPECTION BY THE SUPERVISOR 

 The necessary inspection of the VESSEL, its
machinery, equipment and outfittings shall be carried out by the Classification Society, and/or 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 the Contract and Specifications. 
 The Supervisor shall have, at all times until delivery of the VESSEL, the right to attend
tests according to the mutually agreed test list and inspect the VESSEL, her engines, accessories and materials at the BUILDER’s Shipyard, its subcontractors or any other place where work is done or materials stored in connection with the
VESSEL. The BUILDER shall give the Supervisor one (1) working days advance notice in writing stating particulars of any tests or inspections which must be attended by the Supervisor . In the event that the Supervisor discovers any construction
or material or workmanship which does not or will not conform to the requirements of this Contract and the Specifications, the Supervisor shall promptly give the BUILDER a notice in writing as to such nonconformity, upon receipt of which the BUILDER
shall correct such nonconformity. However the BUYER undertakes and assures the SELLER that the Supervisor shall carry out his inspections in accordance with the agreed inspection procedure and schedule and usual shipbuilding practice and in a way as
to minimize any increase in building costs and delays in the construction of the VESSEL. 
 The BUILDER agrees to furnish free of charge the
Supervisor with proper office space, and other reasonable facilities at the BUILDER’S Shipyard according to BUILDER’s practice at, or in the immediate vicinity of the BUILDER’s Shipyard, but the fees for the international
communication like telephone, telex and telefax, etc. shall be born by the BUYER. At all times, during the construction of the VESSEL until delivery thereof, the Supervisor shall be given free and ready access to the VESSEL, her engines and
accessories, and to any other place where the work is being done, or the materials are being processed or stored, in connection with the construction of the VESSEL, including the yards, workshops, 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. The travel expenses for the said access to SELLER’s subcontractors outside of Shanghai shall be at BUYER’s account.
The transportation within Shanghai shall be provided to the Supervisor by the SELLER. 
  

	4.	LIABILITY OF THE SELLER 

 The Supervisor engaged by the BUYER under this Contract shall at all
times be deemed to be in the employment of the BUYER. The SELLER shall be under no liability whatsoever to the BUYER, or to the Supervisor or the BUYER’s employees or agents for personal injuries, including death, during the time when they, or
any of them, are on the VESSEL, or within the premises of either the SELLER 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 gross
negligence of the SELLER, or of any of the SELLER’s employees or agents or subcontractors of the SELLER. Nor shall the SELLER be under any liability whatsoever to the BUYER for damage to, or loss or destruction of property in China of the BUYER
or of the Supervisor, or of the BUYER’s employees or agents, unless such damage, loss or destruction was caused by gross negligence of the SELLER, or of any of the employees, or agents or subcontractors of the SELLER. 

  
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	5.	SALARIES AND EXPENSES 

 All salaries and expenses of the Supervisor, or any other employees
employed by the BUYER under this Article, shall be for the BUYER’s account. 
  

	6.	REPLACEMENT OF SUPERVISOR 

 The SELLER has the right to request the BUYER in writing to replace
any of the Supervisor who is deemed unsuitable and unsatisfactory for the proper progress of the VESSEL’s construction together with reasons. The BUYER shall investigate the situation by sending its representative to the Builder’s yard, if
necessary, and if the BUYER considers that such SELLER’S request is justified, the BUYER shall effect the replacement as soon as conveniently arrangable. 
  

	7.	REPORT OF PROGRESS 

 The BUYER is entitled to require the SELLER to report the condition of
progress as to the construction of the VESSEL whenever the BUYER requires during the construction of the VESSEL. The progress shall be supplied according to Builder’s standard report format. 

  
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 ARTICLE 5—MODIFICATION, CHANGES AND EXTRAS 

 

	1.	HOW EFFECTED 

 The Specifications and Plans in accordance with which the VESSEL is constructed,
may be modified and/or changed at any time hereafter by written agreement of the parties hereto, provided that such modifications and/or changes or an accumulation thereof will not, in the BUILDER’s reasonable judgment, adversely affect the
BUILDER’s other commitments and provided further that the BUYER shall assent to adjustment of the Contract Price, time of delivery of the VESSEL and other terms of this Contract, if any, as hereinafter provided. Subject to the above, the SELLER
hereby agree to exert their best efforts to accommodate such reasonable requests by the BUYER so that the said changes and/or modifications may be made at a reasonable cost and within the shortest period of time which is reasonable and possible. Any
such agreement for modifications and/or changes shall include an agreement as to the increase or decrease, if any, in the Contract Price of the VESSEL together with an agreement as to any extension or reduction in the time of delivery, providing
additional securities satisfactory to the SELLER, if the increase more than                 United Sate Dollars
                    , or any other alterations in this Contract, or the Specifications or plans occasioned by such modifications and/or changes. The
aforementioned agreement to modify and/or to change the Specifications and/or plans may be effected by an exchange of duly authenticated letters, or telefax, manifesting such agreement. The letters, as well as telefaxes exchanged by the parties
hereto pursuant to the foregoing shall constitute an amendment of the Specifications and/or plans under which the VESSEL shall be built, and such letters, and telefaxes shall be deemed to be incorporated into this Contract and the Specifications by
reference and made a part hereof. Upon consummation of the agreement to modify and/or to change the Specifications and/or plans, the SELLER shall alter the construction of the VESSEL in accordance therewith, including any additions to, or deductions
from, the work to be performed in connection with such construction. If due to whatever reasons, the parties hereto shall fail to agree on the adjustment of the Contract Price or extension of time of delivery or providing additional security to the
SELLER or modification of any other terms of this Contract which are necessitated by such modifications and/or changes, then the SELLER shall have no obligation to comply with the BUYER’s request for any modification and/or changes. 

 

	2.	CHANGES IN RULES AND REGULATIONS, ETC. 

  

	 	(1)	 If, after the date of signing this Contract, any requirements as to the rules and regulations as specified in this Contract and the Specifications 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 SELLER and/or the BUYER, upon receipt of the notice
thereof, shall transmit such information in full to each other in writing, whereupon within twenty-one (21) days after receipt of the said notice by the BUYER from the SELLER or vice versa, the BUYER shall instruct the SELLER in writing as to
the alterations or changes, if any, to be made in the VESSEL which the BUYER, in its sole discretion, shall decide. The SELLER shall promptly comply with such alterations or changes, if any in the construction of the VESSEL, provided that the

  
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BUYER shall first agree: 

  

	 	(a)	As to any increase or decrease in the Contract Price of the VESSEL that is occasioned by the cost for such compliance; and/or 

  

	 	(b)	As to any extension in the time for delivery of the VESSEL that is necessary due to such compliance; and/or 

  

	 	(c)	As to any increase or decrease in the guaranteed deadweight and speed of the VESSEL, if such compliance results in increased or reduced deadweight and speed; and/or 

 

	 	(d)	As to any other alterations in the terms of this Contract or of the Specifications or both, if such compliance makes such alterations of the terms necessary. 

 

	 	(e)	If the price is to be increased, then, in addition, as to providing to the SELLER additional securities satisfactory to the SELLER, if the increase more than United Sate Dollars
                . 

 Agreement as to such
alterations or changes under this Paragraph shall be made in the same manner as provided above for modifications and/or changes of the Specifications and/or Plans. 

(2) If, due to whatever reasons, the parties shall fail to agree on the adjustment of the Contract Price or extension of the time for delivery
or increase or decrease of the guaranteed speed and deadweight or providing additional security to the SELLER, if the increase more than United Sate Dollars
                     or any alternation of the terms of this Contract, if any, then the SELLER shall promptly comply with such alterations or changes
first. The BUYER shall, in any event, bear the costs and expenses for such alterations or changes. The discrepancy with regard to the adjustment of the Contract Price and/or the extension of Delivery Date and/or any other discrepancies to be
determined by arbitration in accordance with Article XIII of this Contract. 
  

	3.	SUBSTITUTION OF MATERIALS AND/OR EQUIPMENT 

 In the event that any of the materials and/or
equipment 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 SELLER may, provided that the BUYER shall
so agrees in writing, supply other materials and/or equipment of equivalent quality or better, 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 and/or equipment shall be effected at no extra cost to the BUYER or delayed delivery of the VESSEL, unless the BUYER specifically agrees thereto in writing. 

 

	4.	BUYER’S SUPPLIED ITEMS 

 The BUYER shall deliver to the SELLER at its shipyard the items as
specified in the Specifications which the BUYER shall supply on its account by the time designated by the SELLER. 

  
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 Should the BUYER fail to deliver to the BUILDER such items within the time specified, the
delivery of the VESSEL shall automatically be extended for a period of such delay, provided such delay in delivery of the BUYER’s supplied items shall affect the delivery of the VESSEL. In such event, the BUYER shall pay to the SELLER all
reasonably incurred losses and damages, if any, sustained by the SELLER due to such delay in the delivery of the BUYER’s supplied items and such payment shall be made upon delivery of the VESSEL. 

Furthermore, if the delay in delivery of the BUYER’s supplied items should exceed fifteen (15) days, the SELLER shall be entitled to
proceed with construction of the VESSEL without installation of such items in or onto the VESSEL, without prejudice to the SELLER’s right hereinabove provided, and the BUYER shall accept the VESSEL so completed. 

The BUILDER shall be responsible for storing and handling of the BUYER’s supplies as specified in the Specifications after delivery to the
BUILDER and shall install them on board the VESSEL at the BUILDER’s expenses. 
 Upon arrival of such shipment of the Buyer’s
supplied items, both parties shall undertake an joint unpacking inspection. If any damages are found to be not suitable for installation, the BUILDER shall be entitled to refuse to accept the BUYER’s supplied items. 

  
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 ARTICLE 6—TRIALS 

 

	1.	NOTICE 

 The BUYER and the Supervisor shall receive from the SELLER at least thirty
(30) days notice in advance and seven (7) days definite notice in advance in writing or telefax, of the time and place of the VESSEL’s sea trial as described in the Specifications (hereinafter referred to as “the Trial Run”)
and the BUYER and/or the Supervisor shall promptly acknowledge receipt of such notice. The BUYER’s representatives and/or the Supervisor shall be on board the VESSEL to witness such Trial Run, and to check upon the performance of the VESSEL
during the same. Failure of the BUYER’s representatives to be present at the Trial Run of the VESSEL, after due notice to the BUYER and the Supervisor as provided above, shall have the effect to extend the date for delivery of the VESSEL by the
period of delay caused by such failure to be present. However, if the Trial Run is delayed more than five (5) days by reason of the failure of the BUYER’s representatives to be present after receipt of due notice as provided above, then in
such event, the BUYER shall be deemed to have waived its right to have its representatives on board the VESSEL during the Trial Run, and the BUILDER may conduct such Trial Run without the BUYER’s representatives being present, and in such case
the BUYER shall be obliged to accept the VESSEL on the basis of a certificate jointly signed by the BUILDER and the Classification Society certifying that the VESSEL, after Trial Run subject to minor alterations and corrections as provided in this
Article, if any, is found to conform to the Contract and Specifications and is satisfactory in all respects. 
 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 conditions permit. The parties hereto recognize that the weather conditions in Chinese waters in which the Trial Run is
to take place are such that great changes in weather may arise momentarily and without warning and, therefore, it is agreed that if during the Trial Run of the VESSEL, the weather should suddenly become unfavorable, as would have precluded the
continuance of the Trial Run, the Trial Run of the VESSEL shall be discontinued and postponed until the first favorable day next following, unless the BUYER shall assent in writing, or by telex or telefax of its acceptance of the VESSEL on the basis
of the Trial Run made prior to such sudden change in weather conditions. 
 In the event that the Trial Run is postponed because of
unfavorable weather conditions, such delay shall be regarded as a permissible delay, as specified in Article 8 hereof. 
  

	2.	HOW CONDUCTED 

  

	 	(a)	All expenses in connection with Trial Run of the VESSEL are to be for the account of the BUILDER, who, during the Trial Run and when subjecting the VESSEL to Trial Run, is to 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 required for the Trial Run as set forth in the Specifications.

 The course of Trial Run shall be determined by the BUILDER and shall be conducted

  
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within the trial water equipped with speed measuring facilities. 
  

	 	(b)	The BUILDER shall provide the VESSEL with the required quantities of water and fuel oil. The lubrication oil, the hydraulic oil and greases shall be supplied by the BUYER, according to the BUILDER’s schedule which
shall be forwarded to the BUYER by the BUILDER, for the conduct of the Trial Run or Trial Runs as prescribed in the Specifications. The cost of the quantities of water, fuel oil, lubricating oil, hydraulic oil and greases consumed during the Trial
Run or Trial Runs shall be for the account of the BUILDER. 

  

	3.	TRIAL LOAD DRAFT 

 In addition to the supplies provided by the BUYER in accordance with
sub-paragraph (b) of the preceding Paragraph 2 hereof, the BUILDER shall provide the VESSEL with the required quantity of fresh water and other stores necessary for the conduct of the Trial Run. The necessary ballast (fresh water, sea water or
any other ballast as may be required) to bring the VESSEL to the trial load draft as specified in the Specifications, shall be for the BUILDER’s account. 

After the Trial Run, the VESSEL shall be maintained with sufficient ballast to attain safe sailing draft as required by dockmaster and harbour
pilot. Should additional work be required to be performed by the BUILDER involving discharging of the entire or partial amount of ballast, the BUILDER shall undertake to replenish such discharged ballast water enabling the VESSEL to re-attain her
original safe sailing draft at the BUILDER’s account 
  

	4.	METHOD OF ACCEPTANCE OR REJECTION 

  

	 	(a)	Upon notification of the BUILDER of the completion of the Trial Run of the VESSEL, the BUYER or the BUYER’s Supervisor shall within six (6) days thereafter, notify the BUILDER in writing or telefax of its
acceptance of the VESSEL or of its rejection of the VESSEL together with the reasons therefor. 

  

	 	(b)	However, should the result of the Trial Run indicate that the VESSEL or any part thereof including its equipment does not conform to the requirements of this Contract and Specifications, then the BUILDER shall
investigate with the Supervisor the cause of failure and the proper steps shall be taken to remedy the same and shall make whatever corrections and alterations and/or re-Trial Run or Runs as may be necessary without extra cost to the BUYER, and upon
notification by the BUILDER of completion of such alterations or corrections and/or re-trial or re-trials, the BUYER shall, within six (6) days thereafter, notify the SELLER in writing or by telex or telefax of its acceptance of the VESSEL or
of the rejection of the VESSEL together with the reason therefor on the basis of the alterations and corrections and/or re-trial or re-trials by the BUILDER. 

  

	 	(c)	In the event that the BUYER fails to notify the SELLER in writing or by telex or telefax of its acceptance or rejection of the VESSEL together with the reason therefor within six (6) days period as provided for in
the above sub-paragraphs (a) and (b), the BUYER shall be deemed to have accepted the VESSEL. 

  

	 	(d)	 Any dispute arising among the parties hereto as to the result of any Trial Run or 

  
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	Shipbuilding Contract	  	Hull No.            

  

	 	
further tests or trials, as the case may be, of the VESSEL shall be solved by reference to arbitration as provided in Article 13 hereof. 

 

	 	(e)	After trial run BUILDER should inform BUYER the delivery time according the actual conditions and SELLER shall be obliged to remove any nonconformities (except such nonconformities accepted by the BUYER) at the time
before delivery of the VESSEL to the BUYER under this Contract. 

  

	5.	DISPOSITION OF SURPLUS CONSUMABLE STORES 

 Should any amount of fresh water, or other unbroached
consumable stores furnished by the BUILDER for the Trial Run or Trial Runs remain on board the VESSEL at the time of acceptance thereof by the BUYER, the BUYER agrees to buy the same from the SELLER at the original purchasing price evidenced by
supporting vouchers thereof, and payment by the BUYER shall be effected as provided in paragraph 3 (b) and 4 (b) of Article 2 of this Contract. 

The BUYER shall supply lubricating oil, hydraulic oil, and greases for the purpose of Trial Runs at its own expenses and the SELLER will
reimburse for the amount of lubricating oil, hydraulic oil and greases actually consumed for the said Trial Run or Trial Runs at the original purchasing price evidenced by supporting vouchers thereof incurred by the BUYER and payment by the SELLER
shall be effected as provided in paragraph 3 (b) and 4 (b) of Article 2 of this Contract. 
  

	6.	EFFECT OF ACCEPTANCE 

 The BUYER’s acceptance of the VESSEL in writing or telefax
notification sent to the SELLER, in accordance with the provisions set out above, 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 SELLER complies with all other procedural requirements for delivery as hereinafter set forth. 

  
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 ARTICLE 7—DELIVERY 

 

	1.	TIME AND PLACE 

 The VESSEL shall be delivered safely afloat by the SELLER to the BUYER at a
berth at the BUILDER’s Shipyard on or before                      in accordance with the Specifications and with all Classification and
Statutory Certificates free of recommendations and/or remarks and after completion of Trial Run (or, as the case may be, re-Trial or re-Trials) and acceptance by the BUYER in accordance with the provisions of Article 6 hereof, 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 the Contract permit extension of the time for delivery, the aforementioned time for delivery of the VESSEL shall be extended
accordingly. The BUILDERS to give the Buyer’s notice of the expected time of delivery of the VESSEL. Such notices to be approximate and to be given 60/30/15 days in advance of the BUILDER’s expected delivery of the vessel and re-given
should this expected delivery date change. 
 The aforementioned date or such later date to which delivery is extended pursuant to the terms
of this Contract is hereinafter called the “Delivery Date”. 
  

	2.	WHEN AND HOW EFFECTED 

 Provided that the BUYER and the SELLER shall each have fulfilled all of
their respective obligations as stipulated in this Contract, delivery of the VESSEL shall be effected forthwith by the concurrent delivery by each of the parties hereto, one to the other, of the Protocol of Delivery and Acceptance, acknowledging
delivery of the VESSEL by the SELLER and acceptance thereof by the BUYER, which Protocol shall be prepared in quadruplicate and executed by each of the parties hereto. 
  

	3.	DOCUMENTS TO BE DELIVERED TO THE 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 part and the like, all as specified in the Specifications, made by the BUILDER. 

 

	 	(c)	PROTOCOL OF STORES OF CONSUMABLE NATURE made by the BUILDER referred to under Paragraph 5 of Article 6 hereof. 

  

	 	(d)	FINISHED DRAWINGS AND PLANS AND MANUALS pertaining to the VESSEL as stipulated in the Specifications, made by the BUILDER. 

  

	 	(e)	PROTOCOL OF DEADWEIGHT AND INCLINING EXPERIMENT, made by the BUILDER. 

  
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	Shipbuilding Contract	  	Hull No.            

  

	 	(f)	ALL CERTIFICATES required to be furnished upon delivery of the VESSEL pursuant to the Specifications. 

Certificates shall be issued by relevant Authorities or Classification Society. The VESSEL shall comply with the above rules and regulations
which are in force at the time of signing this Contract. 
 It is agreed that if 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. 
  

	 	(g)	DECLARATION OF WARRANTY issued by 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 province or country of the port of delivery, as well as of all liabilities of the SELLER to its sub-contractors, employees and
crews and/or all liabilities arising from the operation of the VESSEL in Trial Run or Trial Runs, or otherwise, prior to delivery. 

  

	 	(h)	COMMERCIAL INVOICE made by the SELLER. 

  

	 	(i)	BILL OF SALE made by the SELLER. 

  

	 	(j)	Any other documents necessary for registration of the vessel as mutually agreed between SELLER and BUYER. 

  

	4.	TITLE AND RISK 

 Title to and risk of the VESSEL shall pass to the BUYER only upon delivery
thereof. As stated above, it being expressly understood that, until such delivery is effected, title to the VESSEL, and her equipment, shall remain at all times with the SELLER and are at the entire risk of the SELLER. 

 

	5.	REMOVAL OF VESSEL 

 The BUYER shall take possession of the VESSEL immediately upon delivery and
acceptance thereof, and, if so required, shall remove the VESSEL from the premises of the BUILDER within seven (7) days after delivery and acceptance thereof is effected. If the BUYER shall not remove the VESSEL from the premises of the BUILDER
within the aforesaid seven (7) days, then, in such event, without prejudice to the SELLER’s right to require the BUYER to remove the VESSEL immediately at any time thereafter, the BUYER shall pay to the SELLER the reasonable mooring charge
of the VESSEL. 

  
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	6.	TENDER OF THE VESSEL 

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

  
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	Shipbuilding Contract	  	Hull No.            

  

 ARTICLE 8—DELAYS & EXTENSION OF TIME FOR DELIVERY 

 

	1.	CAUSE OF DELAY 

 If, at any time before actual delivery, either the construction of the VESSEL,
or any performance required hereunder as a prerequisite of delivery of the VESSEL, is delayed due to war, blockade, revolution, insurrection, mobilization, civil commotions, riots, strikes (except the strikes solely in the Builder’s yard),
sabotage, lockouts, local temperature higher than 36 degree centigrade, Acts of God or the public enemy, plague or other epidemics, quarantines, freight embargoes, if any, earthquakes, tidal waves, typhoons, hurricanes, storms or other causes beyond
the control of the BUILDER or of its sub-contractors, as the case may be, or by force majeure of any description from Chinese government that directly effects the construction of the VESSEL, whether of the nature indicated by the forgoing or not, or
by destruction of the BUILDER or works of the BUILDER or its subcontractors, or of the VESSEL or any part thereof, by fire, flood, or other causes beyond the control of the SELLER or its subcontractors as the case may be, or due to the delay caused
by acts of God in the supply of parts essential to the construction of the vessel, then, in the event of delay due to the happening of any of the aforementioned contingencies, the Seller shall not be liable for such delay and the time for delivery
of the VESSEL under this Contract shall be extended without any reduction in the Contract Price for a period of time which shall not exceed the total accumulated time of all such delays, subject nevertheless to the BUYER’s right of cancellation
under Paragraph 3 of this Article and subject however to all relevant provisions of this Contract which authorize and permit extension of the time of delivery of the VESSEL. 
  

	2.	NOTICE OF DELAY 

 Within fourteen (14) days from the date of commencement of any delay on
account of which the SELLER claims that it is entitled under this Contract to an extension of the time for delivery of the VESSEL, the SELLER shall advise the BUYER in writing or telefax, of the date such delay commenced, and the reasons therefor.

 Likewise within fourteen (14) days after such delay ends, the SELLER shall advise the BUYER in writing or telefax, of the date such
delay ended, and also shall specify the maximum period of the time by which the date for delivery of the VESSEL is extended by reason of such delay. Failure of the BUYER to acknowledge the SELLER’s notification of any claim for extension of the
Delivery Date within fourteen (14) days after receipt by the BUYER of such notification, shall be deemed to be a waiver by the BUYER of its right to object to such extension. If the SELLER fails to advise the BUYER of any such delay within the
time limit stipulated above, the SELLER shall not be entitled to any extension for such delay 
  

	3.	RIGHT TO CANCEL FOR EXCESSIVE DELAY 

 If the total accumulated time of all delays on account of
the causes specified in Paragraph 1 of the Article aggregate to two hundred ten (210) days or more, (excluding delays due to 

  
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arbitration as provided for in Article 13 hereof or due to default in performance by the BUYER of a nature which, under the terms of this contract, permits extension of the time of delivery, or
due to delays in delivery of the BUYER’s supplied items, and excluding delays due to causes which, under Article 5, 6, 11 and 12 hereof, permit extension or postponement of the time for delivery of the VESSEL) , then in such event, the BUYER
may in accordance with the provisions set out herein cancel this Contract by serving upon the SELLER telefaxed notice of cancellation which shall be confirmed in writing and the provisions of Article 10 of this Contract shall apply. Such
cancellation shall be effective as of date the faxed notice thereof is received by the SELLER and the SELLER upon receipt of such notice, shall refund immediately to the BUYER, the full amount of all sums paid to the SELLER by the BUYER on account
of the VESSEL with interest at six percent (6%) per annum in the manner as provided in Article 10 of this Contract. The aforementioned refund by the SELLER to the BUYER shall forthwith discharge all obligations, duties and liabilities of each
of the parties to the other under this Contract. The SELLER may, at any time, after the accumulated time of the aforementioned delays justifying cancellation by the BUYER as above provided for, demand in writing that the BUYER shall make an
election, in which case the BUYER shall, within thirty (30) days after such demand is received by the BUYER, either notify the SELLER of its intention to cancel this Contract, or consent to an extension of the time for delivery to an agreed
future date, it being understood and agreed by the parties hereto that, if any further delay occurs on account of causes justifying cancellation as specified in this Article, the BUYER shall have the same right of cancellation upon the same terms as
herein above provided. 
 If the total accumulated time for all delays under this contract including those due to the causes specified in
paragraph 1 above and including delays of a nature which permit postponement only upon payment of liquidated damages as provided by Article 3 but excluding delays solely due to the BUYERS’ default, amounts to 270 days then the BUYER may rescind
the Contract by serving upon the BUILDER a written notice of rescission in accordance with Article 10 
  

	4.	DEFINITION OF PERMISSIBLE DELAY 

 Delays on account of such causes as provided for in Paragraph
1 of this Article, excluding any other extensions of a nature which under the terms of this Contract permit postponement of the Delivery Date, shall be understood to be (and are herein referred to as) permissible delays and are to be distinguished
from unauthorized delays on account of which the Contract Price of the VESSEL is subject to adjustment as provided for in Article 3 hereof. 

  
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 ARTICLE 9—WARRANTY OF QUALITY 

 

	1.	GUARANTEE OF MATERIAL AND WORKMANSHIP 

 The SELLER, for a period
of             months following delivery to the BUYER of the VESSEL, guarantees the VESSEL, her hull and machinery and all parts and equipment thereof and undertakes to remedy or replace,
free of charge to BUYER any defects that are manufactured or furnished or supplied by the BUILDER and/or its sub-contractors under this Contract including material, equipment (however excluding any parts for the Vessel which have been supplied by or
on behalf of the BUYER) against all defects which are due to defective materials, and/or poor workmanship and/or constructural miscalculation and/or inadequate design or construction on the part of the BUILDER and/or its sub-contractors, and not due
to the negligence on the part of the BUYER, or its agents or employees. 
  

	2.	NOTICE OF DEFECTS 

 The BUYER shall notify the SELLER in writing, or telefax, as promptly as
possible, after discovery of any defect(s) or deviations for which a claim is made under this guarantee. The BUYER’s written notice shall describe the nature of the defect and the extent of the damage caused thereby. The SELLER shall have no
obligation under this guarantee for any defects discovered prior to the expiry date of the guarantee, unless notice of such defects, is received by the SELLER not later than thirty (30) days after such expiry date. Telefaxed advice with brief
details explaining the nature of such defect and extent of damage within thirty (30) days after such expiry date and that a claim is forthcoming will be sufficient compliance with the requirements as to time. 

 

	3.	REMEDY OF DEFECTS 

 The SELLER shall remedy at its expense any defects, against which the VESSEL
or any part of the equipment thereof is guaranteed under this Article by making all necessary repairs and/or replacement. Such repairs and/or replacement will be made by the BUILDER. In the event any defects are repaired, replaced, remedied or made
good by the BUILDER the period of guarantee for such item or items shall be extended for another          months but not exceed          months. 

However, if it is impractical to make the repair by the BUILDER, and if forwarding by the BUILDER of replacement parts, and materials cannot be
accomplished without impairing or delaying the operation or working schedule of the VESSEL, then, in any such event, the BUYER shall, cause the necessary repairs or replacements to be made elsewhere provided that the BUYER shall first and in all
events, as soon as possible, give the BUILDER notice in writing, or telefax of the time and place such repairs will be made, and if the VESSEL is not thereby delayed, or her operation or working is not thereby delayed, or her operation or working is
not thereby impaired, the BUILDER shall have the right to verify by its own representative(s) or that of Classification Society the nature and extent of the defects complained of. The BUILDER shall, in such cases, promptly advise the BUYER, by telex
or telefax, after such examination has been completed, of its acceptance or rejection of the 

  
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defects as ones that are subject to the guarantee herein provided. In all minor cases, the Guarantee Engineer, as hereinafter provided for, will act for and on behalf of the BUILDER. 

In any circumstances as set out below, the BUILDER shall immediately pay to the BUYER in United States Dollars by telegraphic transfer the actual cost for
such repairs or replacements including forwarding charges, or at the average cost for making similar repairs or replacements including forwarding charges as quoted by a leading shipyard each in China, Japan, South Korea and Singapore, whichever is
lower: 
  

	(a)	Upon the BUILDER’s acceptance of the defects as justifying remedy under this Article, or 

  

	(b)	If the BUILDER neither accepts nor rejects the defects as above provided, nor request arbitration within thirty (30) days after its receipt of the BUYER’s notice of defects. 

Any dispute shall be referred to arbitration in accordance with the provisions of Article 13 hereof. 

EXTENT OF THE SELLER’S LIABILITY 
 The SELLER shall have no
obligation and/or liabilities with respect to defects discovered after the expiration of the period of guarantee specified above. 
 The SELLER shall be
liable to the BUYER for defects and damages caused by any of the defects specified in Paragraph 1 of this Article provided that such liability of the SELLER shall be limited to damage occasioned within the guarantee period specified in Paragraph 1
above. The SELLER shall not be obligated to repair, or to be liable for, damages to the VESSEL, or to any part of the equipment thereof, due to ordinary wear and tear or caused by the defects other than those specified in Paragraph 1 above, nor
shall there be any SELLER’s liability hereunder for defects in the VESSEL, or any part of the equipment thereof, caused by fire or accidents at sea or elsewhere, or mismanagement, accidents, negligence, or wilful neglect, on the part of the
BUYER, its employees or agents including the VESSEL’s officers, crew and passengers, or any persons on or doing work on the VESSEL other than the SELLER, its employees, agents or subcontractors. Likewise, the SELLER shall not be liable for
defects in the VESSEL, or the equipment or any part thereof, due to repairs or replacement which were made by those other than the SELLER and/or their subcontractors at the direction of the BUYER, except in the case as described in Paragraph 3
above, i.e. that the repair cannot be practically carried out in the BUILDER’s shipyard, and the SELLER has consented such repair being made elsewhere. 

Upon delivery of the VESSEL to the BUYER, in accordance with the terms of the Contract, the SELLER shall thereby and thereupon be released of all
responsibility and liability whatsoever and howsoever arising under or by virtue of this Contract (save in respect of those obligations to the BUYER expressly provided for in this Article 9) including without limitation, any responsibility or
liability for defective workmanship, materials or equipment, design or in respect of any other defects whatsoever and any loss or damage resulting from any act, omission or default of the SELLER. Neither CSTC nor the BUILDER shall, in any
circumstances, be liable for any consequential loss or special loss, or expenses arising from any cause whatsoever including, without limitation, loss of time, loss of profit or earnings or demurrage directly from any commitments of the BUYER in
connection with the VESSEL. 

  
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 The Guarantee provided in this Article and the obligations and the liabilities of the SELLER hereunder are
exclusive and in lieu of and the BUYER hereby waives all other remedies, warranties, guarantees or liabilities, express or implied, arising by Law or otherwise (including without limitation any obligations of the SELLER with respect to fitness,
merchantability and consequential damages) or whether or not occasioned by the SELLER’s negligence. This Guarantee shall not be extended, altered or varied except by a written instrument signed by the duly authorized representatives of the
SELLER, and the BUYER. 

  
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 ARTICLE 10—CANCELLATION, REJECTION AND RESCISSION BY THE BUYER 

 

	1.	All payments made by the BUYER prior to the delivery of the VESSEL shall be in the nature of advances to the SELLER. In the event the BUYER shall exercise its right of cancellation and/or 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 telefax , and such cancellation and/or rescission shall be effective as of the date the
notice thereof is received by the SELLER. 

  

	2.	Thereupon the SELLER shall refund in United States dollars immediately to the BUYER the full amount of all sums paid by the BUYER to the SELLER on account of the VESSEL, and the BUYER’s supplies shall be returned
to BUYER, unless the SELLER disputes the BUYER’s cancellation and/or rescission by instituting arbitration in accordance with Article 13 hereof. If the BUYER’s cancellation or rescission of this Contract is disputed by the SELLER by
instituting arbitration as aforesaid , then no refund shall be made by the SELLER, and the BUYER shall not be entitled to demand repayment from THE SELLER’S BANK under its guarantee, until the arbitration award between the BUYER and the SELLER,
which shall be in favour of the BUYER, declaring the BUYER’s cancellation and/or rescission justified, is made and delivered to the SELLER by the arbitration tribunal. In the event of the SELLER is obligated to make refundment, the SELLER shall
pay the BUYER interest in United States Dollars at the rate of six percent (6%) per annum, if the cancellation or rescission of the Contract is exercised by the BUYER in accordance with the provision of Article 3 1(c), 2(c), 3(c), 4(c) hereof,
on the amount required herein to be refunded to the BUYER computed from the respective dates when such sums were received by the SELLER to the date of remittance by telegraphic transfer of such refund to the BUYER by the SELLER, provided, however,
that if the said rescission by the BUYER is made under the provisions of Paragraph 4 of Article 8, then in such event the SELLER shall not be required to pay any interest. 

 

	3.	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. 

  
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 ARTICLE 11—BUYER’S DEFAULT 

 

	1.	DEFINITION OF DEFAULT 

 The BUYER shall be deemed in default of its obligation under this
Contract if any of the following events occurs: 
  

	 	(a)	The BUYER fails to pay the First or Second or Third installment to the SELLER when any such installment becomes due and payable under the provisions of Article 2 hereof and provided the BUYER shall have received the
SELLER’s demand for payment in accordance with Article 2 hereof; or 

  

	 	(b)	The BUYER fails to pay the fourth installment to the SELLER in accordance with Paragraph 3(d) and 4(d) of Article 2 hereof provided the BUYER shall have received the SELLER’s demand for payment in accordance with
Article 2 hereof; or 

  

	 	(c)	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 7 hereof. 

 

	2.	NOTICE OF DEFAULT 

 If the BUYER is in default of payment or in performance of its obligations
as provided hereinabove, the SELLER shall notify the BUYER to that effect by telefax after the date of occurrence of the default as per Paragraph 1 of this Article and the BUYER shall forthwith acknowledge by telefax to the SELLER that such
notification has been received. In case the BUYER does not give the aforesaid telefax acknowledgment to the SELLER within three (3) days it shall be deemed that such notification has been duly received by the BUYER. 

 

	3.	INTEREST AND CHARGE 

  

	 	(a)	If the BUYER is in default of payment as to any installment as provided in Paragraph 1 (a) and/or 1 (b) of this Article, the BUYER shall pay interest on such installment at the rate of six percent
(6%) per annum until the date of the payment of the full amount, including all aforesaid interest. In case the BUYER shall fail to take delivery of the VESSEL when required to as provided in Paragraph 1 (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, as provided in Article 7 Paragraph 6
hereof. 

  

	 	(b)	In any event of default by the BUYER under 1 (a) or 1 (b) or 1 (c) above, the BUYER shall also pay all costs, charges and expenses incurred by the SELLER in consequence of such default. 

  
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	4.	DEFAULT BEFORE DELIVERY OF THE VESSEL 

  

	 	(a)	If any default by the BUYER occurs as defined in Paragraph I (a) or 1 (b) or 1 (c) of this Article, the Delivery Date shall, at the SELLER’s option, be postponed for a period of continuance of such
default by the BUYER. 

  

	 	(b)	If any such default as defined in Paragraph 1 (a) or 1 (b) or 1 (c) of this Article committed by the BUYER continues for a period of fifteen (15) days, then, the SELLER shall have all following
rights and remedies: 

  

	 	(i)	The SELLER may, at its option, cancel or rescind this Contract, provided the SELLER has notified the BUYER of such default pursuant to Paragraph 2 of this Article, by giving notice of such effect to the BUYER in writing
or telefax. Upon receipt by the BUYER of such telex notice of cancellation or rescission, all of the BUYER’s Supplies shall forthwith become the sole property of the SELLER, and the VESSEL and all its equipment and machinery shall be at the
sole disposal of the SELLER for sale or otherwise; and 

  

	 	(ii)	In the event of such cancellation or rescission of this Contract, the SELLER shall be entitled to retain any installment or installments of the Contract Price paid by the BUYER to the SELLER on account of this Contract.

  

	5.	SALE OF THE VESSEL 

  

	 	(a)	In the event of cancellation or 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 reasonable terms and conditions as the SELLER thinks fit without being answerable for any loss or damage occasioned to the BUYER thereby. 

In the case of sale of the VESSEL, the SELLER shall give telefax or written notice to the BUYER. 

 

	 	(b)	In the event of the sale of the VESSEL in its completed state, the proceeds of sale received by the SELLER shall be applied firstly to payment of all expenses attending such sale and otherwise incurred by the SELLER as
a result of the BUYER’s default, and then to payment of all unpaid installments and/or unpaid balance of the Contract Price and interest on such installment at the interest rate as specified in the relevant provisions set out above 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 (such costs of construction, as herein mentioned, shall include but are not limited to
all costs of labour and/or prices paid or to be paid by the SELLER for the equipment and/or technical design and/or materials purchased or to be purchased, installed and/or to be installed on the VESSEL) and/or any fees, charges, expenses and/or
royalties incurred and/or to be incurred for the VESSEL less the installments so retained by the SELLER, and 

  
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compensation to the SELLER for a reasonable sum of loss of profit due to the cancellation or rescission of this Contract. 

 

	 	(d)	In either of the above events of sale, if the proceeds of sale exceeds the total of the amounts to which such proceeds are to be applied as aforesaid , the SELLER shall promptly pay the excesses 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 SELLER upon request. 

  
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 ARTICLE 12—INSURANCE 

 

	1.	EXTENT OF INSURANCE COVERAGE 

 From the time of keel-laying of the first section or block of the
VESSEL until the same is completed , delivered to and accepted by the BUYER, the SELLER shall, at its own cost and expense, keep the VESSEL and all machinery, materials, equipment, appurtenances and outfit, delivered to the BUILDER for the VESSEL or
built into, or installed in or upon the VESSEL, including the BUYER’s Supplies, fully insured with a first class Chinese insurance company for BUILDER’s risk. 

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 payments 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 SELLER and all losses under such policy shall be payable to the
SELLER. 
  

	2.	APPLICATION OF RECOVERED AMOUNT 

  

	 	(a)	Partial Loss: 

 In the event the VESSEL shall be damaged by any insured cause whatsoever prior
to acceptance and delivery 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 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 other institutions or authorities as described in the Specifications without additional expenses to the BUYER, 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 either: 
  

	 	(i)	By the mutual agreement between the parties hereto, proceed in accordance with terms of this Contract, in which case the amount recovered under said insurance policy shall be applied to the reconstruction and/or repair
of the VESSEL’s damages and/or reinstallation of BUYER’s supplies without additional expenses to the BUYER , provided the parties hereto shall have first agreed in writing as to such reasonable extension 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)	 If due to whatever reasons the parties fail to agree on the above, then refund 

  
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immediately to the BUYER the amount of all installments paid to the SELLER under this Contract without interest whereupon this Contract shall be deemed to be cancelled and all rights, duties,
liabilities and obligations of each of the parties to the other shall terminate forthwith. 

 Within thirty (30) days
after receiving telefax notice of any damage to the VESSEL constituting an actual or a constructive total loss, the BUYER shall notify the SELLER in writing or by telefax of its agreement or disagreement under this sub-paragraph. In the event the
BUYER fails to so notify the SELLER, then such failure shall be construed as a disagreement on the part of the BUYER. This Contract shall be deemed as rescinded and cancelled and the BUYER receive the refund as hereinabove provided and the
provisions hereof shall apply. 
  

	3.	TERMINATION OF THE SELLER’S OBLIGATION TO INSURE 

 The SELLER’s obligation to insure
the VESSEL hereunder shall cease and terminate forthwith upon delivery thereof to and acceptance by the BUYER. 

  
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 ARTICLE 13—DISPUTES 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 stipulation herein or with respect thereto which cannot be settled by the parties themselves, such dispute shall be resolved by arbitration in London, England in accordance with the Laws of England. 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 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 board of arbitration (hereinafter called the “Arbitration Board”) for the settlement of such dispute. 

In the event however, that 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 such party shall thereby be deemed to have accepted and appointed as its own arbitrator the one already 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. 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 any court in England or other official organization in England
having jurisdiction in such matter to appoint the third arbitrator. The award of the arbitration, made by the sole arbitrator or by the majority of the three arbitrators as the case may be, unless appealed by either parties, shall be final,
conclusive and binding upon the parties hereto. 
  

	2.	ALTERNATIVE ARBITRATION BY AGREEMENT 

 Notwithstanding the preceding provisions of this Article,
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 and equipment, or concerning the quality of materials or workmanship thereof or thereon, such dispute may
be referred to the Classification Society upon mutual agreement of the parties hereto. In such case, the opinion of the Classification Society shall be final and binding on the parties hereto. 

 

	3.	NOTICE OF AWARD 

 Notice of any award shall immediately be given in writing or by telefax
confirmed in writing to the SELLER and the BUYER. 

  
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	4.	EXPENSES 

 The arbitrator(s) shall determine which party shall bear the expenses of the
arbitration or the proportion of such expenses which each party shall bear. 
  

	5.	AWARD OF ARBITRATION 

 Any award of arbitration shall be final and binding upon the parties
concerned. 
  

	6.	ENTRY IN COURT 

 Judgment on any award may be entered in any court of competent jurisdiction.

  

	7.	ALTERATION OF DELIVERY TIME 

 In the event of reference to arbitration of any dispute arising
out of matters occurring prior to delivery of the VESSEL, the SELLER shall not be entitled to extend the Delivery Date as defined in Article 7 hereof and the BUYER shall not be entitled to postpone its acceptance of the VESSEL on the Delivery Date
or on such newly planned time of delivery of the VESSEL as declared by the SELLER. However, if the construction of the VESSEL is affected by any arbitration or court proceeding, the SELLER shall then be permitted to extend the Delivery Date as
defined in Article 7 and the decision or the award shall include a finding as to what extent the SELLER shall be permitted to extend the Delivery Date if at all. 
  

	8.	WORK CONTINUANCE 

 Work shall continue during arbitration/dispute, unless otherwise agreed
between SELLER and BUYER. 

  
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 ARTICLE 14—RIGHT OF ASSIGNMENT 

Neither of the parties hereto shall assign this Contract to any other individual or company unless prior consent of the other party. 

The SELLER agrees that the BUYER shall have the right to assign this Contract to its bank or its financial institute for financing purposes only, provided
that: 
 1. The BUYER shall remain exclusively liable to observe and perform any and all obligations under the Building Contract; 

2. The Assignment will not impose upon the SELLER any further obligations or liabilities other than those which have already expressly existed in the Building
Contract prior to the date of Assignment. 
 In this case, the SELLER and SELLER’S BANK as Refund Guarantor shall acknowledge upon receipt of notice of
such assignment in the form acceptable to the SELLER. 

  
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 ARTICLE 15—TAXES AND DUTIES 

 

	1.	TAXES 

 All costs for taxes including stamp duties, if any, incurred in connection with this
Contract in the People’s Republic of China shall be borne by the SELLER. Any taxes and/or duties imposed upon those items or services procured by the SELLER in the People’s Republic of China or elsewhere for the construction of the VESSEL
shall be born by the SELLER. 
  

	2.	DUTIES 

 The SELLER shall indemnify the BUYER for, and hold it harmless against, any duties
imposed in the People’s Republic of China upon materials and equipment which under the terms of this Contract and/or the Specifications will, or may be, supplied by the BUYER from the abroad for installation in the VESSEL as well as any duties
imposed in the People’s Republic of China upon running stores, provisions and supplies furnished by the BUYER from abroad to be stocked on board the VESSEL and also from the payment of export duties, if any, to be imposed upon the VESSEL as a
whole or upon any of its parts or equipment. 
 Any tax or duty other than those described hereinabove, if any, shall be borne by the BUYER.

  
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 ARTICLE 16—PATENTS, TRADEMARKS AND COPYRIGHTS 

The machinery and equipment of the VESSEL may bear the patent number, trademarks or trade names of the manufacturers. The SELLER 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 cost and expense 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. Notwithstanding any provisions contained herein to the contrary, the SELLER’s obligation under this Article should
not be terminated by the passage of any specified period of time. 
 The BUYER promises not to use the technical materials and drawings to build the ship at
any other shipyard. 

  
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	Shipbuilding Contract	  	Hull No.            

  

 ARTICLE 17—NOTICE 

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

 

			
	To the BUYER:	  	
		
	To CSTC:	  	China Shipbuilding Trading Company, Limited
	        Address:	  	No.1 Pudong Dadao, Pudong, Shanghai 200120, The People’s Republic of China
		
	To the BUILDER:	  	SHANGHAI JIANGNAN-CHANGXING SHIPBUILDING CO., LTD.
	        Address:	  	No.2468 Changxing Jiangnan Avenue Changxing Town Chongming County, Shanghai 201913, China

 Any change of address shall be communicated in writing by registered mail by the party making such change to the other party
and in the event of failure to give such notice of change, communications addressed to the party at their last known address shall be deemed sufficient. 

Any and all notices , requests , demands , instructions , advice and communications in connection with this Contract shall be deemed to be given at, and shall
become effective from, the time when the same is delivered to the address of the party to be served, provided, however, that registered airmail shall be deemed to be delivered ten (10) days after the date of dispatch, express courier service
shall be deemed to be delivered five (5) days after the date of dispatch, and telefax acknowledged by the answerbacks shall be deemed to be delivered upon dispatch. 

Any and all notices, communications, Specifications and drawings in connection with this Contract shall be written in the English language and each party
hereto shall have no obligation to translate them into any other language. 

  
 45 

			
	Shipbuilding Contract	  	Hull No.            

  

 ARTICLE 18—EFFECTIVE DATE OF CONTRACT 

This Contract shall become effective after being executed by both parties. 

Upon signing of this contract, both parties hereto shall do the follows: 
  

	(1)	Receipt by the BUYER of a Refund Guarantee covering the 1st, 2nd, and 3rd instalments in the form annexed hereto as Exhibit B issued by the Refund Guarantor in accordance with Article 2 Paragraph 7 hereof.

  

	(2)	Receipt by the SELLER of the 1st instalment in accordance with Paragraph 3(a) and 4(a) of Article 2 of this Contract. 

  

	(3)	Receipt by the SELLER of a Payment Guarantee covering the 2nd and 3rd instalments in the form annexed hereto as Exhibit A issued by the Payment Guarantor in accordance with Article 2 Paragraph 6 hereof.

  
 46 

			
	Shipbuilding Contract	  	Hull No.            

  

 ARTICLE 19—INTERPRETATION 

 

	1.	LAW APPLICABLE 

 The parties hereto agree that the validity and interpretation of this Contract
and of each Article and part hereof be governed by and interpreted in accordance with the Laws of England. 
  

	2.	DISCREPANCIES 

 All general language or requirements embodied in the Specifications are intended
to amplify, explain and implement the requirements of this Contract. However, in the event that any language or requirements so embodied in the Specifications permit an interpretation inconsistent with any provision of this Contract, then in each
and every such event the applicable provisions of this Contract shall 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 govern. 

However, with regard to such inconsistency or contradiction between this Contract and the Specifications as may later occur by any change or
changes in the Specifications agreed upon by and among the parties hereto after execution of this Contract, then such change or changes shall govern. Such change or changes shall be evidenced by signed Memorandum between parties hereto. 

 

	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 after signing the Contract. 
  

	4.	DEFINITION 

 In absence of stipulation of “banking day(s)”, the “day” or
“days” shall be taken as “calendar day” or “calendar days”. 

  
 47 

			
	Shipbuilding Contract	  	Hull No.            

  

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

			
	THE BUYER :	  	THE SELLER :
		  	    CHINA SHIPBUILDING TRADING COMPANY
		
	Name:	  	Name:
		
	Signature:	  	Signature:
		
	Title:	  	Title:
		
		  	THE BUILDER:
		  	 SHANGHAI JIANGNAN-CHANGXING SHIPBUILDING CO., LTD.

		
		  	Name:
		
		  	Signature:
		
		  	Title:

  
 48 

			
	Shipbuilding Contract	  	Hull No.            

  

 EXHIBIT “A” 

LETTER OF GUARANTEE IN RESPECT OF 2ND and 3RD INSTALMENTS 

OF CONTRACT PRICE 
  

	To:	China Shipbuilding Trading Co., Ltd. and 

	  	Shanghai Jiangnan-Changxing Shipbuilding Co., Ltd. 

  

	C/o:	China Shipbuilding Trading Co., Ltd. 

	  	22nd — 27th Floor, Fangyuan Mansion, 

	  	56(Yi) Zhongguancun Nandajie, Haidian District 

	  	Beijing 100044, the People’s Republic of China 

  

	  	Date:                      

Dear Sirs, 
 In consideration of
your executing a Shipbuilding Contract dated             with             (hereinafter called the “BUYER”) for
construction of One (1) Diesel Driven 81,600 DWT Bulk Carrier bearing Builder’s Hull No.             (hereinafter called the “CONTRACT”), We, the undersigned, do hereby
irrevocably, absolutely and unconditionally guarantee, as the primary obligor and not merely as the surety, the due and punctual payment by the BUYER of the 2nd, and 3rd installments of the Contract Price amounting to a total sum of United States
Dollars                         as specified in (2) below. 

 

	(2)	The Instalments guaranteed hereunder, pursuant to the terms of the Shipbuilding Contract, comprise the 2nd installment in the amount of United States
Dollars                         payable by the BUYER within five (5) Banking Days after the cutting of the first steel plate
of the VESSEL in the BUILDER’s workshop, and the 3rd installment in the amount of United States Dollars payable by the BUYER within five (5) banking days after keel-laying of the first section of the VESSEL. 

 

	(3)	We also IRREVOCABLY, ABSOLUTELY and UNCONDITIONALLY guarantee, as primary obligor and not merely as surety, the due and punctual payment by the BUYER of interest on each Installment guaranteed hereunder at the rate of
Six percent (6%) per annum from and including the first day after the date of the instalment in default until the date of full payment by us of such amount guaranteed hereunder. 

 

	(4)	 In the event that the BUYER fails to punctually pay any Instalment guaranteed hereunder or the BUYER fails to pay any interest thereon, and any such
default continues for a period of fifteen 

  
 49 

			
	Shipbuilding Contract	  	Hull No.            

  

	 	
(15) days, then, upon receipt by us of your first written demand, we shall immediately pay to you or your assignee all unpaid 2nd and 3rd instalments, together with the interest as specified in
paragraph (3) hereof, without requesting you to take any or further action, procedure or step against the BUYER or with respect to any other security which you may hold. 

 

	(5)	We hereby agree that at your option this Guarantee and the undertaking hereunder shall be assignable to and if so assigned shall inure to the benefit of any 3rd party designated by you or as your assignee as if any such
third party or                         were originally named herein. 

 

	(6)	Any payment by us under this Guarantee shall be made in United States Dollars by telegraphic transfer to
                        , as receiving bank nominated by you for credit to your account
with                         or through another receiving bank to be nominated by you from time to time, in favour of you or your
assignee. 

  

	(7)	Our obligations under this guarantee shall not be affected or prejudiced by any dispute between you as the SELLER and the BUYER under the Shipbuilding Contract or by the BUILDER’s delay in the construction and/or
delivery of the VESSEL due to whatever causes or by any variation or extension of their terms thereof or by any security or other indemnity now or hereafter held by you in respect thereof, or by any time or indulgence granted by you or any other
person in connection therewith, or by any invalidity or unenforceability of the terms thereof, or by any act, omission, fact or circumstances whatsoever, which could or might, but for the foregoing, diminish in any way our obligations under this
Guarantee. 

  

	(8)	Any claim or demand shall be in writing signed by one of your officers and may be served on us either by hand or by post and if sent by post to
                                         
            (or such other address as we may notify to you in writing), or by tested telex (telex NO:
                                         
        ) via             , with confirmation in writing. 

  

	(9)	This Letter of Guarantee shall come into full force and effect upon delivery to you of this Guarantee and shall continue in force and effect until the VESSEL is delivered to and accepted by the BUYER and the BUYER shall
have performed all its obligations for taking delivery thereof or until the full payment of all 2nd and 3rd Instalments together with the aforesaid interests by the BUYER or us, whichever first occurs. 

 

	(10)	 The maximum amount, however, that we are obliged to pay to you under this Guarantee shall not exceed the aggregate amount of United States
Dollars                         being an amount 

  
 50 

			
	Shipbuilding Contract	  	Hull No.            

  

	equal	to the sum of: 

  

	 	(a)	All the 2nd and 3rd instalments guaranteed hereunder in the total amount of United States Dollars
                        ; and 

  

	 	(b)	Interest at the rate of Six percent (6%) per annum on the Instalment for a period of sixty (60) days in the amount of United States Dollars
                . 

  

	(11)	All payments by us under this Guarantee shall be made without any set-off or counterclaim and without deduction or withholding for or on account of any taxes, duties, or charges whatsoever unless we are compelled by law
to deduct or withhold the same. In the latter event we shall make the minimum deduction or withholding permitted and will pay such additional amounts as may be necessary in order that the net amount received by you after such deductions or
withholdings shall equal the amount which would have been received had no such deduction or withholding been required to be made. 

  

	(12)	This Letter of Guarantee shall be construed in accordance with and governed by the Laws of England. We hereby submit to the non-exclusive jurisdiction of the English courts for the purposes of any legal action or
proceedings in connection herewith in England. 

  

	(13)	When this Letter of Guarantee shall have expired as aforesaid, you will return the same to us without any request or demand from us. 

 

	(14)	IN WITNESS WHEREOF, we have caused this Letter of Guarantee to be executed and delivered by our duly authorized representative the day and year above written. 

 
  

For and on behalf of 

  
 51 

			
	Shipbuilding Contract	  	Hull No.            

  

 EXHIBIT B IRREVOCABLE LETTER OF GUARANTEE 

To: 
 Date 

Dear Sirs, 
 At the request of China Shipbuilding Trading
Company, Limited, 56(Yi) Zhongguancun Nandajie, Beijing 100044, the People’s Republic of China and in consideration of your agreeing to pay China Shipbuilding Trading Company, Limited and Shanghai Jiangnan-Changxing Shipbuilding Co., Ltd.
(hereinafter collectively called “the SELLER”) each instalment of the Contract Price before delivery of the VESSEL under the Contract dated             (as amended and/or
supplemented from time to time and hereinafter called “the Contract”) for the construction of one (1) 81,600DWT Bulk Carrier Vessel to be designated as Hull No.            
(herein called the “VESSEL”) concluded by and amongst you, and the SELLER, we, the undersigned, do hereby irrevocably guarantee repayment to you by the SELLER of an amount up to but not exceeding a total amount of United States Dollars
            , representing the first instalment of the Contract Price of the VESSEL,             , the second instalment of the
Contract Price of the VESSEL, United States Dollars             , the third instalment of the Contract Price of the VESSEL, United States Dollars
            , as you may have paid to the SELLER under the Contract prior to the delivery of the VESSEL, if and when the same or any part thereof becomes repayable to you from the SELLER in
accordance with the terms of the Contract. Should the SELLER fail to make such repayment, we shall pay you the amount the SELLER ought to refund together with interest (x) at the rate of zero percent (0%) if cancellation of the Contract is
exercised by you in accordance with the provisions of Paragraph 4 of Article 8 of the Contract or Paragraph 2(b)(ii) of Article 12 of the Contract, or (y) at the rate of six percent (6%) per annum if the cancellation of the Contract is
exercised by you in accordance with the provisions of Paragraphs 1(c), 2(c), 3(c), or 4(c) of Article 3 of the Contract within thirty (30) days after our receipt of the relevant written demand from you for payment. 

However, in the event of any dispute between you and the SELLER in relation to: 
  

	 	(1)	whether the SELLER shall be liable to repay the instalment or instalment paid by you and 

  

	 	(2)	consequently whether you shall have the right to demand payment from us 

 and such dispute is submitted either
by the SELLER or by you for arbitration in accordance with Article 13 of the Contract, we shall be entitled to withhold and defer payment until the arbitration award is published. We shall not be obligated to make any payment to you unless the
arbitration award orders the SELLER to make repayment. If the SELLER fails to honour the award, then we shall pay to you an amount equal to the arbitration award (but not exceeding the maximum aggregate amount of this Letter of Guarantee as set out
above) plus interest in United States Dollars on such amount from the respective dates on which each instalment of the Contract Price was received by the SELLER to the date of your receipt from us of such amount at the relevant interest rate as set
out above. 

  
 52 

			
	Shipbuilding Contract	  	Hull No.            

  

 The said repayment shall be made in full by us to you in United States Dollars by telegraphic transfer to
such account (in London, New York or elsewhere) as notified by you to us without any deduction (except a tax deduction which we are required by law to make), withholding or set-off. If we are required by law to make a tax deduction, the amount due
to you shall be increased by the amount necessary to ensure that you receive and retain a net amount which, after the tax deduction, is equal to the full amount that you would otherwise have received. 

This Letter of Guarantee shall become effective from the time of the actual receipt of the first instalment of the Contract Price by the SELLER from you and
the aggregate principal amount effective under this Letter of Guarantee shall correspond to the total aggregate payment actually made by you from time to time under the Contract prior to the delivery of the VESSEL. However, the available amount
under this Letter of Guarantee shall in no event exceed above mentioned aggregate amount actually paid to the SELLER, together with interest calculated, as described above at zero percent (0%) or, six percent (6%) per annum, as the case may be
for the period commencing with the date of receipt by the SELLER of each respective instalment to the date of repayments thereof. 
 This Letter of
Guarantee shall remain in force until the earliest of (i) the VESSEL has been delivered to and accepted by you or (ii) refund in full has been made to you by the SELLER or ourselves, or (iii) the later of
            , after which this Letter of Guarantee shall become null and void whether you return it or not. If there exists arbitration between you and the SELLER, the validity of this
guarantee shall automatically be extended until the date the thirtieth (30th) calendar day after publication of the arbitration award. 
 This Letter
of Guarantee shall be assignable (except the right for making demand shall always remain with yourself) to your bank or your financial institute for financing purpose only by a written notice of such assignment in the form acceptable to us with our
acknowledgement. 
 We hereby confirm that this guarantee will be registered with the relevant SAFE authority and confirm further that we have obtained all
necessary approvals and authorizations to issue this Letter of Guarantee and that we are authorized to effect payment thereunder in foreign currency in case of utilization. 

This Letter of Guarantee is governed by the Laws of England and any dispute arising out of or in relation to this Refund Guarantee shall be arbitrated in
London pursuant to the terms of the London Maritime Arbitrators Association. 
 All demands and notices in connection with this Refund Guarantee shall be
sent to us at the following address: 
 Name: 
 Telephone: 

                          
   China 

  
 53 

			
	Shipbuilding Contract	  	Hull No.            

  

									
	Post Code:	  	Swift Code:	  		  		  	
					
	Yours faithfully,	  		  		  		  	
	For	  		  		  		  	
				
	 	  		  		  	

  
 54EX-10.14

 Exhibit 10.14 

CONFIDENTIAL 
 Scorpio Bulkers Inc. (the
“Company”) 
 Ajeltake Road 
 Ajeltake Island,
Majuro 
 Marshall Islands 
 Attn.: Mr Hugh Baker 

London, 5 December 2013 
 Dear Sirs, 

Up to $330,000,000 term loan facility to be made available to the Company for the post-delivery financing of up to 22 Ultramax and Kamsarmax bulk carriers to
be built at Nantong COSCO KHI Ship Engineering Co., Ltd (“NACKS”), Dalian COSCO Kill Ship Engineering Co., Ltd (“DACKS”), Chengxi Shipyard Co., Ltd (“Chengxi”) and Hudong-Zhonghua Shipyard (Group) Co., Ltd
(“Hudong”), the People’s Republic of China (the “Facility”) 
 Crédit Agricole Corporate and Investment Bank
(“CA-CIB”) and Deutsche Bank AG London (“DB”) or any nominated affiliates thereof, are pleased to provide you with this letter (the “Mandate Letter”) that outlines our agreement (subject to your acceptance
as hereinafter provided) to act as Lead Arrangers and Bookrunners for the Facility substantially in accordance with and subject to the terms and conditions set forth herein and in the term sheet (the “Term Sheet”) annexed hereto and
upon which CA-CIB and DB will work with you to arrange the Facility. Capitalized terms not otherwise defined herein have the meaning ascribed to them in the Term Sheet. 
  

	1.	Commitment and Appointment 

 Upon your acceptance of this commitment and subject to the terms and conditions in
the Mandate Letter and the Term Sheet, CA-CIB and DB are prepared to underwrite, syndicate, close and fund the Facility. CA-CIB and DB shall attempt to achieve a successful syndication of the Facility including with China-EXIM Bank and to finalise
the finance documents. 
 The definitive commitment by CA-CIB and DB to provide the services described herein is also subject to our satisfaction that since
the date hereof and through the date of execution of the Facility Documents, (i) no material adverse change in or material disruption of conditions in the financial, banking or capital markets; or (ii) no material adverse change in the
financial condition of the Company and its affiliates or in the industry in which the Company operates, which we, in our reasonable discretion, deem material in connection with the syndication of the Facility shall have occurred and be continuing.

  

	2.	Amount 

 CA-CIB and DB intend to extend a maximum aggregate commitment of $330,000,000 (the “Total
Facility Amount”) divided into: 
 (i) a maximum commitment of $220,000,000 by CA-CIB (“CA-CIB Commitment”); and 

(ii) a maximum commitment of $110,000,000 by DB (“DB Commitment”). 

  

			
	Confidential	  	

  
 1 

	3.	Syndication 

 It is agreed that CA-CIB and DB, in consultation with the Company, will manage and control all
aspects of the syndication of the Facility as the sole Bookrunners. As such CA-CIB and DB shall, in consultation with the Company, select and assemble a club of financial institutions (including China-EXIM Bank) to commit to the Facility, decide on
any titles and fees offered to proposed Lenders and the final allocations of the commitments to the Facility in consultation with the Company. 
 For the
purpose of Clause 6, a “Successful Syndication” is defined as the aggregate commitment by the Bookrunners of $125,000,000 to the Facility. 

For the purpose of the sell-down protocol, the desired final commitment by CA-CIB in the Facility is $75,000,000 (the “CA-CIB Desired Final
Commitment”) and the desired final commitment by DB in the Facility is $50,000,000 (the “DB Desired Final Commitment”) however such desired final commitments may be reduced to accommodate the syndication process and as may
be instructed by the Company. 
 The initial amounts to be transferred for each of CA-CIB and DB (the “Initial Amounts to be Transferred”)
are defined respectively as (i) CA-CIB Commitment less the CA-CIB Desired Final Commitment and (ii) DB Commitment less the DB Desired Final Commitment. 

During the Syndication Period, the commitments and/or participations of the Bookrunners in the Facility will be transferred to financial institutions becoming
Lenders (i) on a pro rata basis of the Initial Amounts to be Transferred by each Bookrunner until each Bookrunner is reduced to its Desired Final Commitment, then (ii) from CA-CIB’s commitment only until CA-CIB’s commitment is
reduced to $50,000,000, then (iii) on a 50/50 basis unless the Bookrunners agree otherwise. 
 The Company undertakes to provide any information
reasonably requested by the Bookrunners or potential Lenders in connection with the syndication, to make available senior management and representatives upon the reasonable request of the Bookrunners and potential Lenders and to use its best efforts
to ensure that the syndication process benefits from the Company’s existing lending relationships. 
  

	4.	Fee 

 An upfront fee (the “Upfront Fee”) of 115 basis points calculated on the Total Facility
Amount and an underwriting fee (the “Underwriting Fee”) of 35 basis points calculated on the Total Facility Amount will be payable on the signing date of the Facility, to the Bookrunners pro rata their commitment in the Total
Facility Amount. 
 The Bookrunners will distribute the Upfront Fee to the Lenders upon their accession to the Facility in their sole discretion. 

 

	5.	Cost and Expenses 

 Recognizing that in connection with the transaction contemplated herein, the Bookrunners
will incur costs and expenses (including, without limitation, reasonable fees and disbursements of outside counsel and technical/insurance advisers), the Company hereby agrees to pay, or reimburse the Bookrunners for, all such reasonable costs and
expenses incurred by the Bookrunners (whether incurred before or after the date hereof), regardless of whether any of the transactions contemplated hereby are consummated. 

It is agreed that the Bookrunners, in consultation with the Company, will instruct a consultant or a broker such as Drewry Shipping Consultants Limited,
Clarksons Shipping Services or SSY Consultancy & Research Ltd to prepare a market analysis for Ultramax bulk carriers for distribution to persons invited to become Lenders and that such market analysis will be paid by the Company. 

All fees and expenses payable under this Mandate Letter shall be non-refundable under any and all circumstances, except as otherwise expressly provided
herein, shall be fully earned when paid, and shall be in addition to any other fee, cost or expense payable in connection with the Facility or other transaction to be entered into by the Company and/or any of its affiliates detailed in a separate
commitment letter or fee letter or otherwise. 

  

			
	Confidential	  	

  
 2 

	6.	Changes in Terms, Market Flex 

 To the extent that the financing needs of the Company vary from those outlined
above and in the Term Sheet, the Bookrunners are prepared to negotiate with you to arrive at financing terms and conditions mutually satisfactory to the Company and the Bookrunners. 

During the period from the date of this Mandate Letter to the date, following close of syndication, on which all Lenders become party to the Facility
Documents (the “Syndication Period”), if CA-CIB or DB, in consultation with the Company, determine, acting reasonably, and by reference to feedback received from institutions approached by the Bookrunners as potential Lenders, that
it is necessary to enhance the prospects of Successful Syndication CA-CIB or DB may, subject to below, elect to on one or more occasions in each case: 
  

	 	(i)	increase the margin of the Facility to enable the Bookrunners to transfer commitments and/or participations in the Facility to persons who will become Lenders provided that the increase in margin from 2.925% p.a.
(as mentioned in the Term Sheet) will be limited to 3.25% p.a.; 

  

	 	(ii)	only in case China-EXIM Bank declines joining the Facility for more than 49.5% of the Total Facility Amount, increase the margin of the Facility to enable the Bookrunners to transfer commitments and/or
participations in the Facility to persons who will become Lenders provided that the increase in margin from 2.925% p.a. will be limited to 3.50% p.a. 

The application of above paragraphs (i) and (ii) shall come in force after (a) the Company has exercised their option to reduce the Total
Facility Amount and/or reduce the tenor of the Facility to five years and (b) the Bookrunners have paid away the maximum amount of the Upfront Fee over $205,000,000 and 25 bps of the Underwriting Fee over the Total Facility Amount to transfer
commitments and/or participations in the Facility to persons invited to become Lenders. 
 The Company agrees to, and shall ensure that each other Obligor
shall, act promptly to amend any relevant document (including, as the case may be, the Facility Documents) to reflect such changes. 
  

	7.	Clear market 

 Except with the prior written consent of the Bookrunners or as otherwise expressly provided
herein, during the Syndication Period, the Company must not announce, enter into discussions to raise, raise or attempt to raise any other finance in the international or any relevant domestic syndicated loan or bank debt. This includes any
bilateral or syndicated facility but does not apply to the Facility. 
  

	8.	Conditions 

 Subject to the terms and conditions set forth in this Mandate Letter and the Term Sheet, this
Mandate Letter creates a firm commitment by the Bookrunners to lend the Facility to the Company and is delivered to you upon the condition that neither the existence of this Mandate Letter, the Term Sheet nor any of the contents hereof or thereof
may be (i) used for any purpose other than your evaluation of the transactions contemplated herein or (ii) furnished by you to any other person or entity other than (a) such of your employees and affiliates, officers and directors and
legal, accounting and other advisors who have a need to know such information, and who are informed by you of the confidential nature of the information and are subject to appropriate confidentiality restrictions, and (b) as may be required by
applicable law or regulations or by an order of a court or governmental agency of competent jurisdiction, provided that you give us prior notice before sharing any such information pursuant to such applicable law or regulations. Notwithstanding the
foregoing, the Company may disclose the commitment contained herein in connection with the initial public offering of the Company’s shares. 
  

	9.	Legal Advice and Non Reliance 

 CA-CIB and DB will not have any liability in respect of any services or advice
provided to the Company by persons other than itself. However, CA-CIB and DB will be entitled to rely upon any advice given or information disclosed by the Company’s advisers without having any responsibility to verify the advice or
information. CA-CIB and DB may, in connection with the transaction, retain its own professional advisers. 

  

			
	Confidential	  	

  
 3 

 The Company represents to CA-CIB and DB and acknowledges and agrees that: 

 

	(a)	it is acting at arm’s length and for its own account in relation to this letter and the proposed transaction; 

  

	(b)	it has made its own independent decision to enter into this letter and the proposed transaction; 

  

	(c)	it will take independent professional advice in order to assess whether the proposed transaction is appropriate for it given its circumstances and objectives; 

 

	(d)	it is capable of assessing the merits of and understanding (on its own behalf or as a result of having taken independent professional advice), and understands and accepts the terms and conditions and risks of this
letter and the proposed transaction. It is also capable of assuming, and assumes, the risks of this letter and the proposed transaction; 

  

	(e)	it is not relying on any communication (written or oral) of CA-CIB and DB, or any CA-CIB and DB Entity’s directors, officers, employees and agents: 

 

	 	(i)	as investment or legal advice; 

  

	 	(ii)	as a representation made in connection with the transaction; 

  

	 	(iii)	as a recommendation to enter into this letter or the proposed transaction; or 

  

	 	(iv)	in respect of the accounting, regulatory capital or tax treatment to be applied to the proposed transaction; 

  

	(f)	no communication (written or oral) received from CA-CIB and DB, or any CA-CIB and DB Entity’s directors, officers, employees and agents shall constitute a representation, assurance or guarantee as to the expected
results of the transaction; 

  

	(g)	CA-CIB and DB have been engaged as an independent contractor to provide the Services and, in rendering such services, CA-CIB and DB will be acting pursuant to a contractual relationship on an arm’s length basis
with respect to the transaction (including in connection with determining the terms of the transaction) and CA-CIB and DB is not, and each CA-CIB and DB Entity’s directors, officers, employees and agents are not, acting as a financial advisor
or a fiduciary to the Company or any other person and any previous or existing relationship between CA-CIB and DB and the Company will not be deemed to create any fiduciary relationship between the parties in respect of the proposed transaction and
the Services; 

  

	(h)	the Services do not constitute “investment advice” or “portfolio management” as defined in Paragraph 1(4) and Paragraph 1(9), respectively, of Article 4 of the Markets in Financial Instruments
Directive (2004/39/EEC); and 

  

	(i)	CA-CIB and DB are not, and each CA-CIB and DB Entity’s directors, officers, employees and agents are not, advising the Company or any other person as to any legal, tax, investment, financial, accounting, regulatory
or other matters in any jurisdiction and that this letter does not constitute advice or a recommendation of any sort to the Company. 

 The
Company confirms that it intends CA-CIB and DB to rely on the representations, acknowledgements and agreements set out above and elsewhere in this letter and that it understands that CA-CIB and will be acting in reliance on those representations,
acknowledgements and agreements. 
  

	10.	Conflict of Interests 

 The Company acknowledges the Bookrunners and their affiliates may be providing debt
financing, equity capital or other services (including financial advisory services) to other persons in respect of which the Company may have conflicting interests. The Company acknowledges that the Bookrunners have no obligation to use in
connection with the transactions contemplated by this Mandate Letter, or to furnish the Company, confidential information obtained from other companies. Likewise the Bookrunners and their affiliates undertake not to use confidential information
obtained from the Company in connection with the transactions contemplated by this 

  

			
	Confidential	  	

  
 4 

 Mandate Letter for purposes other than those necessary under this Mandate Letter, the Fee Letter and the Term
Sheet. 
  

	11.	Indemnity 

 By execution below, the Company hereby agrees to indemnify and hold harmless the Bookrunners and
their affiliates’ officers, directors, employees, and agents (each of the foregoing indemnified parties being an “Indemnified Party”), from and against any and all claims, liabilities, losses, and out-of-pocket costs, and
expenses (including, but solely in the case of claims arising in connection with actual or threatened legal proceedings, all reasonable outside counsel fees) and damages against an Indemnified Party relating to or arising out of the transactions
contemplated hereby; provided, however, that you shall have no indemnification obligation if such loss, claim, damage, liability or expense resulted solely from the gross negligence or wilful misconduct of such Indemnified Party as determined in a
final, non-appealable judgment by a court of competent jurisdiction. In the case of any investigation, litigation or proceeding to which the indemnity in this paragraph applies, such indemnity shall be effective whether or not the investigation,
litigation or proceeding is brought by the Company, its shareholders or its creditors, and the Company shall have the right to participate in and/or control the defense against any such claim or threat and whether or not the Facility are
consummated; provided that the Indemnified Party shall at all times be entitled to representation by independent counsel at the expense of the Company. The Company agrees that no Indemnified Party shall have any liability to the Company or any of
its subsidiaries or affiliates or to its or any of its subsidiaries’ or affiliates’ respective security holders or creditors for any indirect or consequential damages arising out of, related to or in connection with this Mandate Letter,
the Term Sheet or the Facility. 
 The Company agrees that no Indemnified Party shall have any liability (whether direct or indirect, in contract or
otherwise) to the Company or the other member of the Group for or in connection with the transactions referred to above, except for direct (as opposed to indirect or consequential) damages or losses to the extent such liability is found in a final
non-appealable judgement by a court of competent jurisdiction to have resulted from such Indemnified Party’s gross negligence or wilful misconduct. 
  

	12.	Termination 

 CA-CIB and DB are entitled to terminate this letter with immediate effect at any time by written
notice to the Company if the Company has breached any of its payment obligations contained in this letter. CA-CIB and DB are entitled to terminate this letter with immediate effect at any time by written notice to the Company if the Company has
breached any of its other obligations or undertakings contained in this letter and such breach has not been rectified within thirty days of written notification of such breach by CA-CIB and DB to the Company. 

The Company is entitled to terminate this letter with immediate effect at any time by written notice to CA-CIB and DB if CA-CIB and DB have breached any of
its obligations or undertakings contained in this letter and such breach has not been rectified within thirty days of written notification of such breach by the Company to CA-CIB and DB. 

Termination under this paragraph will be without prejudice to any legal rights or obligations that may already have arisen. The provisions of paragraphs 5, 9,
10, 11, this paragraph 12 and paragraphs 13, 14 will continue to apply notwithstanding any termination of this letter. 
  

	13.	Obligations of CA-CIB and DB several 

 The obligations of CA-CIB and DB (in this paragraph each a
“Bank”) under this Mandate Letter are several; and a failure of a Bookrunner to perform its obligations under this Mandate Letter shall not result in: 
  

	 	a)	the obligations of the other Bookrunner being increased; nor 

  

	 	b)	the Company, any other Member of the Group or the other Bookrunner being discharged (in whole or in part) from its obligations under this Mandate Letter, 

and in no circumstances shall a Bookrunner have any responsibility for a failure of the other Bookrunner to perform its obligations under this Mandate Letter.

  

			
	Confidential	  	

  
 5 

	14.	Governing Law and Jurisdiction 

 This Mandate Letter and any non-contractual obligations shall be
governed by New York law without reference to its conflict of law principles. 
 Any legal action or proceeding with respect to this letter shall be brought
exclusively in the courts of the State of New York located in the City of New York, Borough of Manhattan, or of the United States of America for the Southern District of New York and, by execution and delivery of this Mandate Letter, The Company
hereby accept, generally and unconditionally, the jurisdiction of the aforesaid courts; provided that nothing in this Mandate Letter shall limit CA-CIB’s and DB’s right to commence any proceeding in the federal or state courts of any other
jurisdiction to the extent CA-CIB or DB determine that such action is necessary or appropriate to exercise its rights or remedies under this Mandate Letter. The Company hereby irrevocably waives any objection, including any objection to the laying
of venue or based on the grounds of forum non conveniens, that the Company may now or hereafter have to the bringing of any such action or proceeding in such jurisdictions. 

The Company hereby irrevocably waives personal service of any and all legal process, summons, notices and other documents and other service of process of any
kind and consent to such service in any suit, action or proceeding brought in the United States of America with respect to or otherwise arising out of or in connection with this Mandate Letter by any means permitted by applicable law, including by
the mailing thereof (by registered or certified mail, postage prepaid) to the Company’s address specified herein (which shall be effective upon mailing) The Company agrees that a final judgment in any such action or proceeding shall be
conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law. 
 Nothing contained in this paragraph
14 shall affect CA-CIE’s or DB’s right to serve process in any other manner permitted by applicable law or commence legal proceedings or otherwise proceed against the Company in any other jurisdiction. 

TO THE EXTENT PERMITTED BY LAW, THE COMPANY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, SUIT, OR PROCEEDING ARISING OUT OF, IN CONNECTION WITH OR
RELATING TO, THIS MANDATE LETTER AND ANY OTHER TRANSACTION CONTEMPLATED HEREBY. THIS WAIVER APPLIES TO ANY ACTION, SUIT OR PROCEEDING WHETHER SOUNDING IN TORT, CONTRACT OR OTHERWISE. THE COMPANY ACKNOWLEDGES AND AGREES THAT IT HAS RECEIVED FULL AND
SUFFICIENT CONSIDERATION FOR THIS PROVISION AND THAT THIS PROVISION IS A MATERIAL INDUCEMENT FOR YOU ENTERING INTO THIS MANDATE LETTER. 
 Please evidence
your acceptance of the terms of this letter by signing this letter and returning it to Crédit Agricole Corporate and Investment Bank and Deutsche Bank AG London. 
  

									
	Yours sincerely,
				
	 Crédit Agricole Corporate and Investment Bank

 
	 		 		 	
					
	By:	 	 /s/ Benoît Tridon
	 		 		 	 /s/ Yannick Le Gouriérès

					
	Name:	 	Benoît Tridon	 		 		 	Yannick Le Gouriérès
					
	Title:	 	Director	 		 		 	Director

  

			
	Confidential	  	

  
 6 

			
	Deutsche Bank AG London
		
	By:	 	/s/ Nick Roos
		
	Name:	 	Nick Roos
		
	Title:	 	Managing Director

  

			
	 ACCEPTED this 5th day of December

	
	 Scorpio Bulkers Inc.

		
	 By:
	 	 /s/ Hugh Baker

		
	 Name:
	 	 Hugh Baker

		
	 Title:
	 	 Chief Financial Officer

  

			
	Confidential	  	YLG

  
 7 

 Strictly confidential 

 
 SCORPIO BULKERS INC. 

UP TO $330,000,000 CREDIT FACILITY 

SUMMARY OF TERMS AND CONDITIONS 

I. Parties to the Credit Facility 

 

			
	Borrower:	  	Scorpio Bulkers Inc., a company incorporated in the Republic of the Marshall Islands (the “Borrower”).
		
	Guarantors:	  	Each company, directly or indirectly owning a Collateral Vessel as defined on Annex I as joint and several guarantors (each a “Guarantor” and together, the “Guarantors”) all being wholly owned
subsidiaries of the Borrower.
		
	Obligors:	  	The Borrower and each of the Guarantors (each an “Obligor” and together, the “Obligors”).
		
	Group:	  	The Borrower and its subsidiaries (the “Group”).
		
	Lead Arrangers:	  	Export-Import Bank of China (“China-EXIM”), Credit Agricole Corporate and Investment Bank (“CA-CIB”), and Deutsche Bank AG London (or any affiliate thereof) (“DB”) or any nominated affiliates
thereof (the “Lead Arrangers”).
		
	Bookrunners:	  	CA-CIB and Deutsche Bank (the “Bookrunners”).
		
	Coordinating Bank:	  	CA-CIB (the “Coordinating Bank”).
		
	Administrative Agent / Security Trustee:	  	CA-CIB (the “Administrative Agent” and the “Security Trustee”).
		
	Account Bank:	  	CA-CIB (the “Account Bank”).
		
	Lenders:	  	The Lead Arrangers together with a syndicate of financial institutions to be determined by the Bookrunners and the Borrower (the “Lenders”).
		
	Required Lenders:	  	The Lenders having the aggregate outstanding principal amounts and available commitments in excess of 66-2/3% (the “Required Lenders”).
		
	Lenders’ Legal Counsel:	  	Cozen O’Connor or any other law firm acceptable to the Borrower and the Lead Arrangers.
		
	II. Description of Credit Facility	  	
		
	Credit Facility:	  	A post delivery credit facility in the amount of up to $330 million (the “Credit Facility”).
		
	Finance Documents:	  	The Credit Facility, the Security Agreements (as defined below) and any other document designated as a finance document by the Administrative Agent and the Borrower (the “Finance Documents”).
		
	Currency:	  	United States Dollars (“$”).

  
 The above terms and conditions
remain subject to acceptable documentation. Please note further that the entering by the Lenders into any facility agreement requires (1) prior receipt by the Lenders of duly executed account opening forms, both in form and substance satisfactory to
the Lenders and (2) anti-money laundering requirements being met. 

  
 1 

 Strictly confidential 

 
  

			
	Collateral Vessels:	  	 Those vessels listed as vessel 1-22 (inclusive) on Annex I hereto (the “Collateral Vessels”), each of which is owned by the
owner named as vessel owner in Annex I (each a “Vessel Owner”, and collectively, the “Vessel Owners”).
  

“Approved Flag” shall mean Marshall Islands, Liberian, Bahamas, Singapore, Hong Kong and Panamanian flag.

 
 “Approved Classification Society” shall mean a classification society
member of IACS (including, as the case may be, CCS as a co classification society which shall opine only post delivery) and acceptable by the Borrower and the Lead Arrangers.

		
	Closing Date:	  	The date on which the loan documentation evidencing the Credit Facility is entered into (the “Closing Date”), however no later than March 31, 2014.
		
	Initial Borrowing Date:	  	 The date on which the first drawing of a Loan under the Credit Facility occur (the “Initial Borrowing Date”).

		
	Use of Proceeds:	  	 The loans made pursuant to the Credit Facility (each a “Loan”, collectively the “Loans”) and the proceeds
thereof shall be utilized to finance, in part, the Collateral Vessels upon delivery from the shipyard.
  

As used herein “Transaction” shall mean the entering into the Credit Facility.

		
	Availability:	  	Each Loan may be incurred pursuant to a single drawing upon the delivery of the respective Collateral Vessel that shall occur no earlier than one month before nor later than six months after the shipbuilding contract scheduled
delivery date set forth opposite the relevant Collateral Vessel under the heading “Contract Delivery Date” in Annex 1 but in any case no later than December 31, 2016 (the “Commitment Termination Date”) provided that the
drawdown amount of each Loan related to the acquisition of a Collateral Vessel shall not exceed the lesser of (i) 60% of the Fair Market Value of the Collateral Vessel on the drawdown date and (ii) the total applicable amount set forth opposite the
Collateral Vessel under the heading “Loan Amount” in Annex I hereto.
		
	Maturity:	  	The final maturity of the Credit Facility shall be on the 7th anniversary of the Closing Date (the “Maturity Date”).
		
	Scheduled Repayments:	  	 Each Loan shall be repaid on a consecutive quarterly basis in an amount equal to 1/48 of such Loan (equal to a 12-year loan profile) with the
first scheduled repayment to occur on the 21st day of the last month of the fiscal quarter immediately following the fiscal quarter in which the borrowing for such a Loan occurred.

 
 Any outstanding amount under the Credit Facility shall be paid in full on the Maturity
Date.

		
	Voluntary Prepayments:	  	The Borrower shall have the right to prepay Loans, without premium or penalty, in whole or in part at any time and from time to time as long as (x) the Borrower gives the Administrative Agent at least 15 business days’ prior
written notice of its intent to prepay such Loans (y) each prepayment shall be in an aggregate principal amount of at least $5 million and integral multiples of $1 million (or such lesser amount as is acceptable to the Administrative
Agent)

  
 The above terms and conditions
remain subject to acceptable documentation. Please note further that the entering by the Lenders into any facility agreement requires (1) prior receipt by the Lenders of duly executed account opening forms, both in form and substance satisfactory to
the Lenders and (2) anti-money laundering requirements being met. 

  
 2 

 Strictly confidential 

 
  

					
		 	and (z) the prepayment of Loans on any date other than the last day of the interest period applicable thereto will be subject to payment by the Borrower of customary breakage costs. Prepaid amounts may not be redrawn and
will be applied pro rata.
		
	Voluntary Cancellation:	 	 The Borrower shall have the right to permanently reduce or terminate unutilized portions of the Credit Facility, without premium
or penalty, in whole or in part at any time and from time to time as long as the Borrower gives the Administrative Agent at least 15 business days’ prior written notice of its intent to reduce or terminate the Credit Facility.

 
 Voluntary cancellations made pursuant to the preceding paragraph shall be applied to
reduce future Scheduled Repayments on a pro rata basis.

		
	Mandatory Prepayments:	 	1. Sale and Total Loss
		
		 	Upon the sale, total loss or other disposition of any Collateral Vessel, the Loan related to such Collateral Vessel shall be repaid and cancelled in its entirety.
		
		 	2. Change of Control
		
		 	The Borrower shall prepay the Credit Facility within 60 days thereafter if:
			
		 	(i)	 	any of the Guarantors ceases to be owned 100% by the Borrower;
			
		 	(ii)	 	a “Person” or “Group” (within the meaning of Sections 13(d) and 14(d)(2) under the Exchange Act, as in effect on the Closing Date), other than any holders of the Borrower’s Equity Interests as of the date of
this agreement, becomes the ultimate “beneficial owner” (as so defined in Rulesl3(d)-3 and 13(d)-5 under the Exchange Act) and including by reason of any change in the ultimate “beneficial owner” of the Equity Interests of the
Borrower of more than 35% of the total voting power of the voting stock of the power (calculated on a fully diluted basis);
			
		 	(iii)	 	individuals who at the beginning of any period of two consecutive calendar years constituted the Board of Directors of the Borrower cease for any reason to constitute at least 35% of the members of such Board of Directors.
			
	III. Other Terms Applicable to Credit Facility	 		 	
		
	Guarantees:	 	Each Guarantor shall be required to provide an unconditional and irrevocable on-demand guarantee of all amounts owing under the Finance Documents (collectively, the “Guarantees”). The Guarantee shall
contain terms and conditions satisfactory to the Administrative Agent and the Lenders and customary for transactions of this type. The Guarantees shall be guarantees of payment and not of
collection.

  
 The above terms and conditions
remain subject to acceptable documentation. Please note further that the entering by the Lenders into any facility agreement requires (1) prior receipt by the Lenders of duly executed account opening forms, both in form and substance satisfactory to
the Lenders and (2) anti-money laundering requirements being met. 

  
 3 

 Strictly confidential 

 
  

					
	Security:	 	(x) All amounts owing under the Credit Facility and (y) all obligations under the Guarantees to be secured by:
			
		 	(1)	 	The Guarantees.
			
		 	(2)	 	A first priority pledge by the Borrower over all the shares in the Guarantors.
			
		 	(3)	 	A first preferred cross-collateralized mortgage in all Collateral Vessels.
			
		 	(4)	 	A first priority assignment of all insurances over the Collateral Vessels, such assignment to be notified to and acknowledged by the insurers (to the extent required by applicable law).
			
		 	(5)	 	A first priority assignment of all earnings from the Collateral Vessels and any sums whatsoever payable to the Collateral Vessels under or pursuant to a pool agreement as the case may be.
			
		 	(6)	 	A first priority assignment of any existing or future time charter contracts in excess of 12 months in respect of the Collateral Vessels to the extent that this can be obtained by the Borrower using its commercially reasonable
efforts to do so. Such assignment to be notified to, and acknowledged, to the extent possible, by the relevant charterers. Charters in excess of 18 months to be subject to Required Lenders prompt approval, not to be unreasonably withheld.
			
		 	(7)	 	A letter of subordination from the technical and commercial managers of the Collateral Vessels.
			
		 	(8)	 	A first priority pledge of the Earnings Account and the Retention Account (as defined below).
		
		 	All documentation (collectively referred to herein as the “Security Agreements”) evidencing the security required pursuant to the immediately preceding paragraphs shall be in form and substance
reasonably satisfactory to the Administrative Agent and the Lenders and customary for transactions of this type, shall effectively create first priority security interests in the property purported to be covered thereby.
		
	Earnings Account:	 	The Borrower shall open and maintain for the duration of the Credit Facility one bank account in its name with the Account Bank (the “Earnings Account”) and shall procure that all hires, freights,
income, insurance proceeds and other sums payable in respect of each Collateral Vessel are credited to the Earnings Account.
		
		 	The amounts in the Earnings Account shall be freely available to the Borrower and its subsidiaries provided that no default has occurred and no notice has been given to the Borrower by the Administrative Agent
that such amounts shall not be freely available.
		
	Retention Account:	 	The Borrower shall open and maintain for the duration of the Credit Facility one bank account in its name with the Account Bank (the “Retention Account”) and shall procure that, from the fiscal quarter
immediately following the fiscal quarter of the first drawdown under the Credit Facility, on the 21st day of each month 1/3rd of the
next

  
 The above terms and conditions
remain subject to acceptable documentation. Please note further that the entering by the Lenders into any facility agreement requires (1) prior receipt by the Lenders of duly executed account opening forms, both in form and substance satisfactory to
the Lenders and (2) anti-money laundering requirements being met. 

  
 4 

 Strictly confidential 

 
  

					
		 	scheduled repayment and interest due under the Facility is transferred from the Earnings Account to the Retention Account
		
		 	The amounts in the Retention Account shall be available for the payment of interest and the repayment of the Facility only.
		
	Interest Periods:	 	The first interest period of each Loan shall start on the drawing date and end on the first scheduled repayment date of that Loan and each subsequent interest period for that Loan shall be for a period of three (3)
months, or such other period as the Administrative Agent may, with the authorization of all the Lenders, agree with the Borrower (the “Interest Period”).
		
	Interest Rate:	 	The rate of interest on each Loan in respect of an Interest Period is the percentage rate per annum which is the aggregate of:
			
		 	(i)	 	the Applicable Margin;
			
		 	(ii)	 	LIBOR; and
			
		 	(iii)	 	mandatory costs (if any)
		
		 	“Applicable Margin” shall mean 2.925% per annum.
		
		 	Interest on a Loan shall be paid on the last day of the Interest Period relating to such Loan. In the case of an Interest Period longer than three (3) months, accrued interest shall be paid every three (3) months during
that Interest Period and on the last day of that Interest Period. All calculations of interest, Commitment Fee and other fees shall be based on a 360-day year and actual days.
		
	Commitment Fee:	 	A commitment fee (the “Commitment Fee”), computed at a rate per annum equal to 40% of the Applicable Margin, which shall accrue from the Closing Date and until the Commitment Termination Date and shall
be calculated on the unutilized commitments of each Lender under the Credit Facility shall be due and payable quarterly in arrears on the last day of each fiscal quarter and on the Commitment Termination Date (or such earlier date upon which the
Credit Facility is terminated).
		
	Default Interest:	 	Overdue principal, interest and other amounts shall bear interest at a rate per annum equal to the rate which is 2% in excess of the applicable interest rate borne by the Loans. Such interest shall be payable on
demand.
		
	Break Cost:	 	If any Loan is prepaid on any date other than the last day of the interest period applicable thereto it will be subject to payment by the Borrower of customary breakage costs.
		
	Upfront Fee:	 	As per separate letter.
		
	Conditions Precedent:	 	Customary for transactions of the kind contemplated by this Term Sheet, including, but not limited to, the following:
		
		 	A. To the Closing Date
			
		 	(1)	 	All terms of, and the documentation for, each relevant component of the transaction shall be reasonably satisfactory in form and substance to the Administrative Agent and the

  
 The above terms and conditions
remain subject to acceptable documentation. Please note further that the entering by the Lenders into any facility agreement requires (1) prior receipt by the Lenders of duly executed account opening forms, both in form and substance satisfactory to
the Lenders and (2) anti-money laundering requirements being met. 

  
 5 

 Strictly confidential 

 
  

					
		 		 	Lenders, and such documentation shall be in full force and effect. All conditions precedent to the consummation of the Credit Facility as provided in the documents relating thereto shall be satisfied or waived. The Credit Facility
shall be consummated in accordance with the documentation therefore and all applicable laws.
			
		 	(2)	 	Since December 31, 2013, nothing shall have occurred (and neither the Administrative Agent nor any of the Lenders shall have become aware of any condition or circumstance not previously known to it or them) which the Lenders
shall determine has had, or is reasonably likely to have, a material adverse effect (v) on the rights or remedies of the Lenders, (w) on the performance of any of the Obligors, or the Obligors taken as a whole, to perform its or their
obligations to the Lenders, (x) with respect to the Credit Facility or (y) on the property, assets, nature of assets, operations, liabilities or condition (financial or otherwise) of any of the Obligors (each, a “Material Adverse
Effect”).
			
		 	(3)	 	The Administrative Agent shall have received relevant legal opinions from counsel (including, without limitation, local counsel and special maritime counsel), in agreed form to the Lenders.
			
		 	(4)	 	The Administrative Agent and the Lenders shall have been provided with all information and documentation requested in order to carry out and be reasonably satisfied with all necessary “know your customer” or other similar
checks under all applicable laws and regulations pursuant to the transactions contemplated in the Credit Facility.
			
		 	(5)	 	All costs, fees, expenses (including, without limitation, legal fees and expenses) and other compensation contemplated hereby, due and payable to the Lead Arrangers, the Bookrunners, the Coordinating Bank, the Administrative Agent
and the Lenders or otherwise payable in respect of the Credit Facility, shall have been paid to the extent due.
			
		 	(6)	 	All necessary governmental (domestic and foreign) and third party approvals and/or consents in connection with the Credit Facility and the transactions otherwise referred to herein shall have been obtained and remain in effect, and
all applicable waiting periods shall have expired without any action being taken by any competent authority which, in the judgment of the Lenders, restrains, prevents, or imposes materially adverse conditions upon the consummation of the Credit
Facility or the transactions otherwise referred to herein. Additionally, there shall not exist any judgment, order, injunction or other restraint prohibiting or imposing materially adverse conditions upon the Credit Facility or the transactions
otherwise referred to herein.
			
		 	(7)	 	All relevant constitutional and corporate documentation from the Obligors, which shall be certified to by an authorized officer of the Borrower.
			
		 	(8)	 	Delivery of all required Financial Information.

  
 The above terms and conditions
remain subject to acceptable documentation. Please note further that the entering by the Lenders into any facility agreement requires (1) prior receipt by the Lenders of duly executed account opening forms, both in form and substance satisfactory to
the Lenders and (2) anti-money laundering requirements being met. 

  

					
		  	6	  	

 Strictly confidential 

 
  

					
		 	(9)	 	Earnings Account and Retention Account duly established.
			
		 	(10)	 	No litigation by any entity (private or governmental) shall be pending or threatened with respect to the Credit Facility or any document executed in connection therewith or which the Lenders shall determine has had, or is reasonably
likely to have, a Material Adverse Effect.
			
		 	(11)	 	After giving effect to the Credit Facility, the financings incurred in connection therewith and the other transactions contemplated hereby, there shall be no conflict with, or default under, any material agreement of the Borrower or
any of its subsidiaries.
		
		 	B. To each delivery date for each respective Collateral Vessel
			
		 	(1)	 	All terms of, and the documentation for, each component of the Transaction shall be reasonably satisfactory in form and substance to the Lenders, and such documentation shall be in full force and effect. All conditions precedent to
the consummation of the Transaction as provided in the documents relating thereto shall be satisfied or waived. The Transaction shall be consummated in accordance with the documentation thereof and all applicable laws.
			
		 	(2)	 	The Guarantees and the Security Agreements in relation to the relevant Collateral Vessel required hereunder shall have been executed and delivered in form, scope and substance reasonably satisfactory to the Lenders and the Lenders
shall have a first priority perfected security interest in the property purported to be covered thereby, with such exceptions as are reasonably acceptable to all Lenders.
			
		 	(3)	 	The Administrative Agent shall have received (i) evidence that all sums due to the builder set forth opposite the relevant Collateral Vessel under the heading “Shipyard” in Annex I hereto in relation with the relevant
Collateral Vessel have been paid or will be financed from the relevant Loan proceeds (ii) copy of the commercial invoice and of the protocol of delivery and acceptance of the relevant Collateral Vessel, (iii) certificates of ownership from
the appropriate authorities showing the registered ownership and certificates of class from the appropriate classification societies showing the notations of the relevant Collateral Vessel, (iv) results of maritime registry searches with
respect to the relevant Collateral Vessel, which results shall be acceptable to the Administrative Agent and (v) a report, in form and scope acceptable to the Administrative Agent, from BMS Group Ltd or other insurance broker acceptable to the
Administrative Agent with respect to the insurance maintained in respect of the relevant Collateral Vessel, together with a certificate from such brokers certifying that such insurances (x) are placed with such insurance companies and/or
underwriters and/or clubs, in such amounts, against such risks, and in such form, as is acceptable to the Administrative Agent and (y) conform with requirements of the Credit Facility and/or mortgage taken for the benefit of the Lenders in the
respective Collateral Vessel.

  
 The above terms and conditions
remain subject to acceptable documentation. Please note further that the entering by the Lenders into any facility agreement requires (1) prior receipt by the Lenders of duly executed account opening forms, both in form and substance satisfactory to
the Lenders and (2) anti-money laundering requirements being met. 
  

  
 7 

 Strictly confidential 

 
  

					
			
		 	(4)	 	Acceptable management agreements being in place with approved vessel manager for the commercial and technical management of the Collateral Vessel.
			
		 	(5)	 	Since December 31, 2013, nothing shall have occurred (and neither the Administrative Agent nor any of the Lenders shall have become aware of any condition or circumstance not previously known to it or them) which the Lenders
shall determine has had, or is reasonably likely to have, a Material Adverse Effect (v) on the rights or remedies of the Lenders, (w) on the performance of any of the Obligors, or the Obligors as a whole, to perform its or their
obligations to the Lenders, (x) with respect to the Credit Facility or (y) on the property, assets, nature of assets, operations, liabilities or condition (financial or otherwise) of the Obligors.
			
		 	(6)	 	No litigation by any entity (private or governmental) shall be pending or threatened with respect to the Borrower or any of its subsidiaries which the Administrative Agent or the Required Lenders shall determine has had, or could
reasonably be expected to have, a Material Adverse Effect.
			
		 	(7)	 	The Administrative Agent shall have received relevant legal opinions from counsels acceptable to the Administrative Agent and all Lenders.
			
		 	(8)	 	All relevant corporate documentation from the Obligors.
			
		 	(9)	 	All costs, fees, expenses (including, without limitation, legal fees and expenses) and other compensation contemplated hereby, due and payable to the Lead Arrangers, the Administrative Agent and the Lenders or otherwise payable in
respect of the Transaction, shall have been paid to the extent due.
			
		 	(10)	 	All necessary governmental (domestic and foreign) and third party approvals and/or consents in connection with the Transaction and the transactions otherwise referred to herein shall have been obtained and remain in effect, and all
applicable waiting periods shall have expired without any action being taken by any competent authority which, in the judgment of the Administrative Agent, restrains, prevents, or imposes materially adverse conditions upon the consummation of the
Transaction or the transactions otherwise referred to herein. Additionally, there shall not exist any judgment, order, injunction or other restraint prohibiting or imposing materially adverse conditions upon the Transaction or the transactions
otherwise referred to herein.
			
		 	(11)	 	Following the consummation of the Transaction, the financings incurred in connection therewith and the other transactions contemplated hereby, there shall be no conflict with, or default under, any material agreement of any
Obligor.
			
		 	(12)	 	All representations and warranties shall be true and correct on and as of the date of the respective borrowing or issuance (although any representations and warranties which expressly relate to a given date or period shall be
required to be true and correct as of the respective date or for the respective period, as

  
 The above terms and conditions
remain subject to acceptable documentation. Please note further that the entering by the Lenders into any facility agreement requires (1) prior receipt by the Lenders of duly executed account opening forms, both in form and substance satisfactory to
the Lenders and (2) anti-money laundering requirements being met. 
  

  
 8 

 Strictly confidential 

 
  

							
		 		 	the case may be), before and after giving effect to such borrowing or issuance and to the application of the proceeds therefrom, as though made on and as of such date.
			
		 	(13)	 	No event of default under the Credit Facility, or event which with the giving of notice or lapse of time or both would be an event of default under the Credit Facility, shall have occurred and be continuing, or would
result from such borrowing or issuance.
			
		 	(14)	 	After giving effect to the Credit Facility, the financings incurred in connection therewith and the other transactions contemplated hereby, there shall be no conflict with, or default under, any material agreement of the
Borrower or any of its subsidiaries.
			
		 	(15)	 	The Administrative Agent shall have received appraisal reports of recent date from two Approved Brokers (as defined in Annex II), stating the then current fair market value of the relevant Collateral Vessel on an
individual charter-free basis. If an Approved Broker provides a range of values for a Collateral Vessel, the midpoint of that range shall be used in calculating Fair Market Value. “Fair Market Value” shall mean the arithmetic mean
of the above appraisals provided that, if the appraisal reports from the two Approved Brokers differ by more than 10% of the higher appraisal, then the Security Trustee shall appoint a third Approved Broker, at the Borrower’s cost, and
the Fair Market Value shall then be the arithmetic mean of the valuations obtained from the three Approved Brokers.
		
	Representation and Warranties:	 	Customary for transactions of the kind contemplated by this Term Sheet, including, but not limited to, the following to be made by the Borrower or the Guarantors (as the case may be) to the Lenders:
			
		 	(1)	 	Corporate Status and Ownership. Each of the Obligors is a corporation or a limited liability company, duly organized and validly existing under the laws of its jurisdiction of formation or incorporation and
registration, and has the power to own its assets and carry on its business as presently conducted.
			
		 	(2)	 	Powers and authority. Each of the Obligors has the power to enter into and perform, and has taken all necessary corporate action to authorize the entry into, performance and delivery of the Finance Documents, and
the transactions contemplated therein.
			
		 	(3)	 	Legal validity and enforceability. The Finance Documents constitute (or will, when executed by the respective parties thereto, constitute) legal, valid and binding obligation of such parties, enforceable in
accordance with its terms and, save as provided for therein and/or as have been or shall be completed prior to the Initial Borrowing Date, no registration, filing, payment of tax or fees or other formalities are necessary or desirable to render the
Finance Documents enforceable against the Obligors and the Security Agreements to constitute valid and enforceable first priority security in accordance with their terms.

  
 The above terms and conditions
remain subject to acceptable documentation. Please note further that the entering by the Lenders into any facility agreement requires (1) prior receipt by the Lenders of duly executed account opening forms, both in form and substance satisfactory to
the Lenders and (2) anti-money laundering requirements being met. 
  

  
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		 	(4)	 	Non-conflict. The entry into and performance by each of the Obligors of the Credit Facility and the Security Agreements and the transactions contemplated thereby do not and will not conflict with:
				
		 		 	(a)	 	Any present law or regulation or judicial or official order applicable to it;
				
		 		 	(b)	 	Its articles of incorporation, by-laws or other constitutional documents; or
				
		 		 	(c)	 	Any document or agreement, which is binding on the Obligor.
			
		 	(5)	 	No Default. No default exists or might result from the making of any of the Loans and no other circumstances exist which constitute or (with the giving of notice, lapse of time, determination of materiality or the
fulfilment of any other applicable condition, or any combination of the foregoing) would constitute a default under any document which is binding on an Obligor or any of its assets, and which may have a Material Adverse Effect on the ability of the
Obligor to perform its obligations under the Finance Documents.
			
		 	(6)	 	Authorizations and consents. All authorizations and consents required in connection with the entry into, performance, validity and enforceability of, and the transactions contemplated by the Credit Facility, and
for the Obligor to carry on its business as presently conducted, have been obtained and are in full force and effect, or will be obtained prior to the Initial Borrowing Date.
			
		 	(7)	 	Financial and other information. The accounts of the Borrower and its subsidiaries most recently delivered to the Administrative Agent (x) have been prepared in accordance with US GAAP for the Borrower
and otherwise generally accepted accounting principles of the jurisdiction of incorporation of such company consistently applied and (y) fairly represent the financial condition of the Borrower and its subsidiaries, as at the date on which they
were drawn up and (z) there has been no Material Adverse Effect since the date on which those accounts were drawn up, which might reasonably be expected to have a Material Adverse Effect on the ability of the Borrower to perform its obligations
under the Credit Facility. All financial documents and information relating to the Borrower and the subsidiaries or otherwise relevant to the matters contemplated by the Credit Facility which have been supplied by or on behalf of the Borrower are
complete and, as at the date of such documents or information, correct in all material respects, and the Borrower has not omitted to disclose to the Administrative Agent any off-balance sheet liabilities or other information, documents or agreements
which, if disclosed, could reasonably be expected to affect the decision of the Lenders to enter into the Credit Facility.
			
		 	(8)	 	Litigation. No litigation, arbitration or administrative proceedings are pending or, to any Obligor’s knowledge, threatened against any Obligor which might, if
adversely

  
 The above terms and conditions
remain subject to acceptable documentation. Please note further that the entering by the Lenders into any facility agreement requires (1) prior receipt by the Lenders of duly executed account opening forms, both in form and substance satisfactory to
the Lenders and (2) anti-money laundering requirements being met. 
  

  
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		 		 	determined, be reasonably expected to have a Material Adverse Effect on its ability to perform its obligations under the Credit Facility.
			
		 	(9)	 	No money laundering. Each Obligor is acting for its own account and not as lender or trustee or in any other capacity whatsoever on behalf of any third party in relation to the Loans and in relation to the
performance and the discharge of its obligations and liabilities under the Credit Facility and the transactions and other arrangements effected or contemplated therein, and the foregoing will not involve or lead to contravention of any law, official
requirement or other regulatory measure or procedure implemented to combat money laundering (as defined in Article 1 of Directive 2005/60/EC of the European Parliament and of the Council of the European Union).
			
		 	(10)	 	Compliance with laws and Environmental Claims. Except as may already have been disclosed by any Obligor in writing to, and acknowledged in writing by, the Administrative Agent acting with the consent of the
Required Lenders (i) the Obligor’s are in compliance with the provisions of all material laws, including without limitation all material Environmental Laws; and (ii) no material Environmental Claims are pending or, to such
Obligors’ knowledge, threatened against any of the Obligors and to such Obligors’ knowledge, no incident, event or circumstance has occurred which may give rise to such an Environmental Claim. Each of the Obligors shall be in compliance
with the ISM Code and the ISPS Code (to the extent applicable in the discretion of the Administrative Agent).
			
		 	(11)	 	Payment of taxes. Each of the Obligors has fully paid, when due, any and all taxes incurred to date in connection with the operation of its business, ownership or use of any of its assets, and conduct of its
affairs on its premises, except for income and property taxes and assessments which are being contested in good faith and with due diligence, with adequate cash reserves in excess of the contested tax balances, in which case such balances will be
paid before any tax liens falls due.
			
		 	(12)	 	No deductions. None of the Obligors is required to make any deduction or withholding from any payment, which it may become obliged to make to any of the Lenders under the Credit Facility.
			
		 	(13)	 	Pari passu ranking Each of the Obligors’ payment obligations under the Credit Facility rank at least pan passu with the claims of all its other unsecured and unsubordinated creditors, except for obligations
mandatory preferred by law applying to companies generally.
			
		 	(14)	 	Ownership. The Borrower shall directly or indirectly own all the shares in each of the Guarantors which shall be the owners of each of the Collateral
Vessels.

  
 The above terms and conditions
remain subject to acceptable documentation. Please note further that the entering by the Lenders into any facility agreement requires (1) prior receipt by the Lenders of duly executed account opening forms, both in form and substance satisfactory to
the Lenders and (2) anti-money laundering requirements being met. 
  

  
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	Other Covenants:	 	Customary for transactions of the kind contemplated by this Term Sheet, including, but not limited to, the following covenants set forth below, which shall remain in full force and effect from the Closing Date until the
Maturity Date or such date on which the Credit Facility is terminated and all indebtedness owing thereunder has been repaid:
			
		 	(1)	 	Financial Information (Year-end). The Borrower shall provide to the Administrative Agent as soon as reasonably practicable and in any event within 120 days after the end of each financial year the audited annual
consolidated accounts of the Borrower and its subsidiaries and unconsolidated accounts of each of the Guarantors, including balance sheet, cash flow and profit and loss statement for that financial year.
			
		 	(2)	 	Financial Information (Quarterly). The Borrower shall provide to the Administrative Agent as soon as reasonably practicable and in any event within 60 days after the end of March 31, June 30, September 30 and
December 31 of each financial year, the unaudited consolidated accounts of the Borrower for that financial quarter.
			
		 	(3)	 	Financial Information (Other). The Borrower shall provide to the Administrative Agent such other information in respect of the business, properties or condition, financial or otherwise, of the Borrower, the
Guarantors or any of its subsidiaries as the Administrative Agent may from time to time reasonably request.
			
		 	(4)	 	Financial Information (Cash Flow Projections, Etc.). The Borrower shall provide to the Administrative Agent as soon as reasonably practicable and in any event within 90 days after December 31 each calendar year,
cash flow projections (including statement of profit and loss, balance sheet and statement of cash flows) for the Borrower and its subsidiaries (on a consolidated basis) for the following four calendar years.
			
		 	(5)	 	Compliance Certificates. The Borrower shall provide to the Administrative Agent, on a quarterly basis together with the financial information, Compliance Certificates (including supportive schedules) signed by an
authorized officer of the Borrower enabling the Administrative Agent to determine and to monitor the Borrower’s compliance with the “Financial Covenants” (described below).
			
		 	(6)	 	Information — Miscellaneous. The Borrower shall provide to the Administrative Agent promptly upon becoming aware of them, relevant details of any litigation, arbitration or administrative proceedings which
are current or, to its knowledge, threatened or pending against it or any of the Guarantors and which might, if adversely determined, be reasonably expected to have a Material Adverse Effect on the ability of any of the Obligors to perform its
obligations under the Credit Facility.
			
		 	(7)	 	Notification of Default. The Borrower shall notify the Administrative Agent of any Default, which occurs (and the steps, if any, being taken to remedy it) promptly upon becoming aware of it.

  
 The above terms and conditions
remain subject to acceptable documentation. Please note further that the entering by the Lenders into any facility agreement requires (I) prior receipt by the Lenders of duly executed account opening forms, both in form and substance satisfactory to
the Lenders and (2) anti-money laundering requirements being met. 
  

  
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		 	(8)	 	Notification of certain events. The Borrower shall promptly notify the Administrative Agent of (i) any accident to any Collateral Vessel involving repairs the cost of which is likely to exceed $2.5 million (or the
equivalent amount of any other currency), (ii) a total loss, whether actual, constructive or compromised, (iii) the occurrence of any environmental claim in excess of $2.5 million (a “Material Environmental
Claim”) against the Borrower, any Guarantor or any Collateral Vessel, or any incident in excess of $2.5 million (a “Material Incident”) , event or circumstances which may give rise to any
such Material Environmental Claim and (iv) any capture, seizure, arrest, confiscation or detention of any Collateral Vessel or the exercise or purported exercise of any lien on any Collateral Vessel, its insurances or earnings.
			
		 	(9)	 	Total Loss. In the event of a total loss, the Borrower shall, within 180 days after the total loss date, obtain and present to the Administrative Agent a written confirmation from the relevant insurers that the claim
relating to the total loss has been accepted in full, and the insurance proceeds shall, as soon as they are released, be paid to the Administrative Agent and applied in prepayment of the Credit Facility as required under the heading
“Scheduled Repayments” above.
			
		 	(10)	 	Ownership. Each Guarantor shall at all times be 100% owned, directly or indirectly, by the Borrower and each Collateral Vessel shall at all times be 100% owned by the relevant Guarantor.
			
		 	(11)	 	Class. Each Vessel Owner shall procure that the relevant Collateral Vessel is classified by an Approved Classification Society and maintained in the highest class, free of any overdue recommendations, with a
classification society acceptable to the Lenders, and at all times comply with the rules and regulations of the relevant classification society applicable to it. Furthermore, each Vessel Owner shall at all times ensure compliance with all applicable
international conventions and regulations. In particular, each Vessel Owner shall ensure compliance with the ISM-Code and the ISPS-Code (to the extent applicable in the discretion of the Administrative Agent) and shall ensure that any charterer of
any Collateral Vessel and any company performing management services on behalf of any of the Vessel Owners or its subsidiaries complies with said conventions and regulations.
			
		 	(12)	 	Repair and compliance with laws. Each Vessel Owner shall procure that each Collateral Vessel is kept in a good and safe condition and state of repair consistent with prudent ownership and “best in class”
management practice. Each Vessel Owner shall procure compliance with all Environmental Laws and all other laws and regulations relating to the Collateral Vessels, its ownership, operation and management or to the business of each Vessel Owner, and
with its articles of association.
			
		 	(13)	 	Flag, name and registry. Neither the Vessel Owner nor any charterer/contractor shall change the flag, name or registry of

  
 The above terms and conditions
remain subject to acceptable documentation. Please note further that the entering by the Lenders into any facility agreement requires (1) prior receipt by the Lenders of duly executed account opening forms, both in form and substance satisfactory to
the Lenders and (2) anti-money laundering requirements being met. 

  
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		 		 	any Collateral Vessel, or register any Collateral Vessel simultaneously in more than one registry, without the prior written consent of all Lenders (not to be unreasonably withheld or delayed).
			
		 	(14)	 	Management. Any reputable company proposed by the Borrower, which the Required Lenders (respectively all Lenders for the commercial manager) may reasonably approve from time to time as the technical and /or
commercial manager shall continue to perform management services in respect of the Collateral Vessels, and no material changes in such management shall be made without the prior written consent of the Administrative Agent, such consent not to be
unreasonably withheld. For the avoidance of doubt Scorpio Services Holding Ltd, Scorpio Commercial Management S.A.M., Scorpio Ship Management S.A.M. and Zenith A.S. or their affiliates are and are deemed to be managers approved by the Administrative
Agent.
			
		 	(15)	 	Class records and Inspections. Each Vessel Owner shall instruct the classification society to send to the Administrative Agent, following receipt of a written request from the Administrative Agent, copies of all
class records held by the classification society in relation to the Collateral Vessels. The Lenders shall have the right to inspect each Collateral Vessel once a year at the Borrower’s cost and without interfering with the operation such
Collateral Vessel. If an Event of Default occurs and during the continuance of an Event of Default the Lenders are entitled to inspect each Collateral Vessel at all reasonable times at the Borrower’s cost.
			
		 	(16)	 	Performance of Finance Documents. Each Obligor shall perform all of its obligations under the Finance Documents at the times, in the manner and upon the terms set out therein.
			
		 	(17)	 	Payment of taxes. Each Obligor shall duly and punctually pay and discharge all taxes imposed on it or its assets within the time period allowed without incurring penalties (save to the extent that (i) payment
is being contested in good faith and/or payment can be lawfully withheld and (ii) adequate reserves are being maintained for those taxes).
			
		 	(18)	 	Transactions with affiliates. Each Obligor shall procure that all transactions entered into with an affiliate is made on terms no less favorable than could otherwise be obtained on arms-length basis.
			
		 	(19)	 	Limitations on Indebtedness. None of the Vessel Owners shall incur any indebtedness (including contingent liabilities) other than:
				
		 		 	(a)	 	Indebtedness incurred pursuant to the Credit Facility;
				
		 		 	(b)	 	Indebtedness incurred in the ordinary course of business provided that such indebtedness does not give rise to liens securing amounts more than 30 days overdue;
				
		 		 	(c)	 	Existing indebtedness outstanding on the Closing Date which is disclosed to, and acceptable to, the Required

  
 The above terms and conditions
remain subject to acceptable documentation. Please note further that the entering by the Lenders into any facility agreement requires (1) prior receipt by the Lenders of duly executed account opening forms, both in form and substance satisfactory to
the Lenders and (2) anti-money laundering requirements being met. 

  
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		 		 		 	Lenders; and
				
		 		 	(d)	 	Intercompany loans and advances, (if such are granted to the Vessel Owners such loans being subordinated and unsecured to the Credit Facility);
			
		 	(20)	 	Limitations on Liens. None of the Vessel Owners shall permit any liens other than those created under any of the Security Agreements or permitted liens as set for in the Credit Facility;
			
		 	(21)	 	Limitations on opening of bank accounts. Any bank account in the name of a Guarantor shall be opened with the Account Bank;
			
		 	(22)	 	Disposal restrictions. The Borrower shall not and shall ensure that no Guarantor will either in a single transaction or in a series of transactions, whether related or not and whether voluntarily or
involuntarily, without the prior written consent of the Required Lenders, sell, transfer, grant or lease out or otherwise dispose of the whole or a substantial part of its assets (including, without limitation, any Collateral Vessel), or sell,
transfer, grant or lease out or otherwise dispose of any of its assets other than at market value and on arms length terms.
			
		 	(23)	 	Change of business. The Borrower will not, and will ensure that none of the Guarantors will, without the prior written consent of the Required Lenders, engage in any business other than the businesses in
which they are engaged as of the Closing Date and activities directly related thereto, and similar or related business. The Borrower will not, and will ensure that no Guarantor will, without the prior written consent of the Required Lenders, change
its type of organization or jurisdiction.
			
		 	(24)	 	Change of financial year. The Borrower will not, without the prior written consent of the Required Lenders, change its financial year.
			
		 	(25)	 	Investment Restrictions. The Borrower and the Guarantors shall not make any investments and acquisitions unless (i) after giving effect to any such investment, the Borrower and the Guarantors are in
pro forma compliance with the Financial Covenants referred to below and (ii) no default or event of default exists at the time of incurrence thereof or would result therefrom. None of the Vessel Owners shall make any further investments or
acquisitions, except for any capital expenditure or investments related to ordinary upgrade or maintenance work of the Collateral Vessels.
			
		 	(26)	 	Financial Support. None of the Vessel Owners shall procure any financial support (including contingent support) other than:
				
		 		 	(a)	 	Financial support incurred pursuant to the Credit Facility;
				
		 		 	(b)	 	Existing financial support outstanding on the Closing Date which is disclosed to, and acceptable to, the Required Lenders; or

  
 The above terms and conditions
remain subject to acceptable documentation. Please note further that the entering by the Lenders into any facility agreement requires (1) prior receipt by the Lenders of duly executed account opening forms, both in form and substance satisfactory to
the Lenders and (2) anti-money laundering requirements being met. 

  
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		 		 	(c)	  	Financial support consented to by the Required Lenders.
		
	Insurances:	 	The Borrower shall procure that each Collateral Vessel is insured as appropriate for an internationally reputable major shipping company against such risks including:
			
		 	(1)	 	Hull and Machinery
			
		 	(2)	 	Protection & Indemnity (including an adequate club cover for pollution liability as normally adopted by the industry for similar vessels),
			
		 	(3)	 	Hull Interest and/or Freight Interest
			
		 	(4)	 	War Risk insurances (including terrorism, piracy, hijacking and confiscation)
		
		 	in such amounts, on such terms as the Administrative Agent may approve (such approval not to be unreasonably withheld) and with such insurance brokers and insurers as the Administrative Agent may reasonably
approve.
		
		 	The insured value of each Collateral Vessel shall at all times be equal to or greater than its Fair Market Value, and the aggregate insured value of all Collateral Vessels shall be equal to or greater than 110% of the
outstanding Loans under the Credit Facility.
		
		 	Furthermore, the Hull and Machinery insured value of each Collateral Vessels shall at all times cover 80% of its Fair Market Value, and the aggregate Hull and Machinery insured value of all Collateral Vessels shall be
equal to or greater than the total commitment under the Credit Facility, while the remaining cover may be taken out by way of Hull and Freight Interest insurances.
		
		 	In addition, the Borrower shall reimburse the Administrative Agent for the cost of Mortgagees Interest Insurance and Mortgagees Additional Perils which the Administrative Agent will take out on these Collateral Vessels
upon such terms and in such amounts as the Administrative Agent shall deem appropriate.
		
		 	The loss payable clause to be in excess of $1 million and standard letters of undertaking to be executed.
		
	Financial Covenants:	 	The following financial covenants shall apply to the Borrower and the Guarantors on a consolidated basis and shall be measured on a quarterly basis unless otherwise provided for in the clause (iv) below (definitions set
forth below in this section are given in Annex III).
			
		 	(i)	 	Minimum Liquidity. Cash and Cash Equivalents shall at all times be the greater of (i) $50 million or (ii) $850,000 per vessel (the “Minimum Liquidity”). For the relevance of this test cash and
Cash Equivalents can include unutilized and freely available parts of revolving credit facilities with a maturity date in excess of 12 months provided that 66-2/3% of the Minimum Liquidity shall at all times consist of cash.
			
		 	(ii)	 	Minimum Tangible Net Worth. The Borrower shall maintain a Consolidated Tangible Net Worth of not less than

  
 The above terms and conditions
remain subject to acceptable documentation. Please note further that the entering by the Lenders into any facility agreement requires (1) prior receipt by the Lenders of duly executed account opening forms, both in form and substance
satisfactory to the Lenders and (2) anti-money laundering requirements being met. 
  

  
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		 		 	 $500,000,000 plus (a) 25% of the Borrower’s cumulative, positive consolidated net income for each fiscal quarter commencing
on or after December 31, 2013 and (b) 50% of the value of the equity proceeds realized from any issuance of equity interests in the Borrower occurring on or after December 31, 2013.

			
		 	(iii)	 	 Maximum Leverage. The ratio of Net Debt to Consolidated Total Capitalization of not more than 0.60 to 1.00, to be
tested on the last day of each fiscal quarter.

			
		 	(iv)	 	Minimum Interest Coverage. From September 30, 2015 to December 31, 2016 the ratio of Consolidated EBITDA to Consolidated Net Interest Expense calculated on a quarterly basis shall be greater than 1.00 to
1.00; thereafter the ratio of Consolidated EBITDA to Consolidated Net Interest Expense calculated on a four quarter trailing basis shall be greater than (a) from January 1, 2017 to December 31, 2017, 2.00 to 1.00; and (b) at all other times
thereafter, 2.50 to 1.00.
		
		 	Should after the Closing Date the US GAAP requirements materially change so as to impact the Financial Covenants, the Borrower and Lenders shall discuss the required amendments to the Financial Covenants so as to reflect
the aforementioned changes.
		
	Collateral Maintenance:	 	The aggregate Fair Market Value of all Collateral Vessels then acting as security for the Credit Facility shall at all times be at least 140% of the sum of the then aggregate outstanding principal amount of Loans
(the “Collateral Maintenance Test”) provided that, any such non-compliance shall not constitute an event of default as long as within 30 days from the date the Administrative Agent has notified the Borrower in writing of the
occurrence of such non compliance, the Borrower shall either (i) post additional collateral (“Additional Collateral”) reasonably satisfactory to all the Lenders in favor of the Security Trustee (it being understood that cash
collateral comprised of U.S. Dollars is satisfactory and that it shall be valued at par), pursuant to security documentation reasonably satisfactory in form and substance to the Security Trustee, in an aggregate amount sufficient to cure such
non-compliance (and shall at all times during such period and prior to satisfactory completion thereof, be diligently carrying out such actions) or (ii) reduce Loans in an amount sufficient to cure such non-compliance.
		
		 	The Borrower shall provide vessel valuations from two Approved Brokers on a semi-annual basis together with compliance certificate at its own expense.
		
		 	The Lenders may request an assessment of the Fair Market Value of the Collateral Vessels at any time; such assessment shall be at Borrower’s cost only if Additional Collateral is required to pass the Collateral
Maintenance Test.
		
	Dividends Restrictions:	 	The Borrower may (i) pay dividends (or make other distributions to its shareholders) and/or (ii) buy-back its own common stock, provided, that (x) no Event of Default at the time of incurrence thereof or would
result therefrom is then in existence and (y) after giving effect to such payment, the Borrower and its subsidiaries are in compliance with the Financial Covenants.

  
 The above terms and conditions
remain subject to acceptable documentation. Please note further that the entering by the Lenders into any facility agreement requires (1) prior receipt by the Lenders of duly executed account opening forms, both in form and substance
satisfactory to the Lenders and (2) anti-money laundering requirements being met. 
  

  
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	Documentation:	 	 The Lenders’ commitment hereunder will be subject to the negotiation, execution and delivery of satisfactory finance
documents (and related security documents, guarantees and other supporting documentation) consistent with the terms herein (including without limitation; set-off, gross-up, market disruption, clear market, cost of funds, defaulting banks, capital
adequacy, reserves, funding losses, illegality, withholding taxes, increased costs, mitigation, indemnities, disclosure of information, bribery, enforcement and pro rata sharing, severability, notices, costs/expenses (including value added taxes or
other taxes (if applicable)), relationship between Administrative Agent and Lenders, calculations and certificates, amendments and waivers etc.). For the avoidance of doubt, the increased cost include, amongst other things, costs resulting from the
changes introduced as part of the legislative package known as CRD IV.

		
	Events of Default:	 	 Those events of default that are usual, customary and appropriate under the circumstances, including, without
limitation;

			
		 	(1)	 	Non-payment. Each of the Obligors does not pay on the due date an amount payable by it under the Credit Facility and the Guarantees, provided that if, such failure to pay has arisen as a consequence
of an administrative or technical error only, then such event shall not be an Event of Default unless such failure continues for a period in excess of three business days.
			
		 	(2)	 	Breach of other obligations. Each of the Obligors does not comply with provision of the Credit Facility (i.e., Representation and Warranties, Covenants, Financial Covenants, Etc.) provided that if
such non-compliance is, in the reasonable opinion of the Administrative Agent, capable of remedy: (i) the Administrative Agent notifies the Borrower of such non-compliance; and (ii) such non-compliance remains unremedied for a period exceeding
thirty (30) days. For the avoidance of doubt, a breach of Insurances covenants is not capable of remedy.
			
		 	(3)	 	Misrepresentation. A representation, warranty or statement made or repeated in or in connection with the Credit Facility or in any document delivered by or on behalf of any of the Obligors under or in
connection with the Credit Facility was incorrect or misleading in a material respect when made or deemed to be made or repeated.
			
		 	(4)	 	Cross-default. A material event of default occurs and is continuing (subject to any applicable remedy period having expired) under any agreement or document to which any of the Obligors is a party related
to financial indebtedness where the aggregate amount outstanding exceeds $5 million.
			
		 	(5)	 	Liens. A maritime or other lien (not being a lien for crew’s wages, salvage or a lien arising solely by operation of law and/or in the ordinary course of business), arrest, distress or similar charge
is levied upon, or against any Collateral Vessel, its insurances or the earnings and is not discharged within thirty (30) days after any of the Obligors became aware of the same, or unless the Lenders have been provided with additional security in
such form and for such amounts as the Lenders may require.

  
 The above terms and conditions
remain subject to acceptable documentation. Please note further that the entering by the Lenders into any facility agreement requires (1) prior receipt by the Lenders of duly executed account opening forms, both in form and substance satisfactory to
the Lenders and (2) anti-money laundering requirements being met. 
  

  
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		 	(6)	 	Loss of property. Any part of a Guarantor’s or substantial part of the Borrower’s assets is destroyed, abandoned, seized, appropriated or forfeited for any reason provided, in the reasonable opinion of
the Administrative Agent, that such occurrence would adversely affect any of the Obligor’s abilities to perform its obligations under the Credit Facility and the Guarantees.
			
		 	(7)	 	Insolvency. An order of a competent court or an event analogous thereto is made or any effective resolution passed with a view to the bankruptcy, commencement of composition proceedings, debt negotiations,
liquidation, winding-up or similar event of the Borrower or a Guarantor .
			
		 	(8)	 	Admittance of non-payment. The Borrower or a Guarantor is unable or admits in writing its inability to pay its lawful debts as they fall due.
			
		 	(9)	 	Termination of Business. The Borrower and the Guarantors cease or threaten to cease to carry on their business or materially change their business, whether by one or a series of transactions.
			
		 	(10)	 	Authorizations and consents. Any authorization or consent required in connection with the entry into, performance, validity or enforceability of the Finance Documents, or any of the transactions contemplated
thereby, is revoked, terminated or modified, or otherwise ceases to be in full force and effect.
			
		 	(11)	 	Impossibility or illegality. It becomes impossible or unlawful for the Borrower or a Guarantor to fulfill any of the terms of the Finance Documents, for the Administrative Agent to exercise any right or power
vested in it under the Finance Documents.
			
		 	(12)	 	Prohibited Persons. An Obligor is owned directly or indirectly by a Prohibited Person, or any property subject to any security interest constituted by a finance document has been derived from any unlawful
activity.
			
		 		 	“Prohibited Person” shall mean any person with whom transactions are currently prohibited or restricted under the United States of America sanctions administered by the United States of America
Department of Treasury’s Office of Foreign Assets Control (“OFAC”), any other United States of America government sanction, export or procurement laws or any other sanctions or other such restrictions on business dealings imposed by a
member state of the European Union, including a person on any list of restricted entities, persons or organisations published by the United States of America government, the United Nations or the European Union or any member state of the European
Union, including without limitation:
				
		 		 	(a)	  	the United States of America Government’s List of Specially Designated Nationals and Blocked Persons, Denied Persons List, Entities List, Debarred Parties List, Excluded Parties List and Terrorism Exclusion List;

  
 The above terms and conditions
remain subject to acceptable documentation. Please note further that the entering by the Lenders into any facility agreement requires (1) prior receipt by the Lenders of duly executed account opening forms, both in form and substance satisfactory to
the Lenders and (2) anti-money laundering requirements being met. 
  

  
 19 

 Strictly confidential 

 
  

							
				
		 		  	(b)	  	Her Majesty’s Treasury’s Consolidated List of Financial Sanctions Targets;
				
		 		  	(c)	  	the European Union Restricted Person Lists issued pursuant to Council Regulation (EC) No. 881/2002 of 27 May 2002, Council Regulation (EC) No. 2580/2001 of 27 December 2001 and Council Common Position
2005/725/CFSP of 17 October 2005; and the United Nations Consolidated List established and maintained by the 1267 Committee.
			
		 	(13)	  	Material adverse change. Any event or series of events occurs which, in the reasonable opinion of the Required Lenders, may have a Material Adverse Effect.
			
		 	(14)	  	Failure to comply with final judgment. The Borrower and any of the Guarantors fails (within 10 business days after becoming obliged to do so) to comply with or pay any sum in an amount exceeding $2.5 million (or
the equivalent in any other currencies) due from it under any final judgment or any final order (being one against which there is no right of appeal or if a right of appeal exists the time limit for making such appeal has expired and no appeal has
been made or if an appeal has been made such appeal has been dismissed) made or given by any court of competent jurisdiction, provided, however, that such event shall not be deemed to constitute an Event of Default if the Borrower is entitled to
insurance cover for the whole of such sum and the relevant insurers have confirmed liability and undertaken to make payment of the whole of such sum in writing to the person(s) entitled to payment and it is likely (in the reasonable opinion of the
Required Lenders) that the insurers will be able to make such payment within thirty (30) days.
			
		 	(15)	  	Erisa Event.
			
		 	(16)	  	Acceleration. On and at any time after the occurrence of an Event of Default (unless remedied during any applicable remedy period), the Administrative Agent may, and shall if so directed by the Required Lenders,
by notice to the Borrower:
				
		 		  	(a)	  	Immediately cancel the Credit Facility whereupon it shall be immediately be cancelled; and/or;
				
		 		  	(b)	  	Declare that all or part of the Credit Facility, together with accrued interest, and all other amounts accrued or outstanding under the Credit Facility be immediately due and payable, whereupon they shall become immediately due and
payable;
				
		 		  	(c)	  	Declare that all or part of the Credit Facility be payable on demand, whereupon it shall immediately become payable on demand by the Administrative Agent on the instructions of the Required Lenders; and/or
				
		 		  	(d)	  	Without prejudice to any other rights of the Lenders, with or without notice to the Borrower, take such other action as is available to them under the Credit Facility.

  
 The above terms and conditions
remain subject to acceptable documentation. Please note further that the entering by the Lenders into any facility agreement requires (1) prior receipt by the Lenders of duly executed account opening forms, both in form and substance satisfactory to
the Lenders and (2) anti-money laundering requirements being met. 
  

  
 20 

 Strictly confidential 

 
  

							
		
	Amendment or Waivers:	 	Any terms of the Credit Facility and the Security Agreements may be amended or waived only with the written consent of the respective parties thereto and the Required Lenders, and any such amendment will be binding on
all parties provided, that, any such amendment to or waiver that has the effect of changing or which relates to; (i) the definition of “Required Lenders”, (ii) an extension of the date of any payment of any
amount under the Credit Facility, (iii) a reduction in the Applicable Margin or a reduction in the amount of any payment of principal, interest, fees or commission, (iv) an increase in or extension of any Lenders’ commitment, (v) a term which
expressly requires the consent of all the Lenders, (vi) a proposed substitution or replacement of any of the Obligors, (vii) any Security Agreement (including any release thereof), (viii) a Change of Control, or (ix) the definition of Collateral
Maintenance clause, except as expressly provided herein, shall not be made without the prior written consent of all the Lenders. The Administrative Agent may effect, on behalf of any Lender, any amendment or waiver permitted by this
clause.
		
		 	The Borrower shall (for its own cost) have the right, in the absence of a default or event of default, to replace any Lender under the Credit Facility that refuses to consent to certain amendments or waivers of the
Credit Facility which expressly require the consent of such Lender and which have been approved by the Required Lenders.
		
		 	An amendment or waiver which relates to the rights or obligations of the Administrative Agent may not be effected without the consent of the Administrative Agent.
		
	Changes to the Parties:	 	 The Obligors may not assign, transfer or dispose of any of, or any interest in, its rights and/or obligations under the Credit
Facility.

		
		 	Before the Original Borrowing Date, a Lender may, subject to (i) the consent of, and without incurring any additional cost for, the Administrative Agent and the Borrower (unless the transfer is to another affiliate),
(ii) a minimum transfer of $10 million and (iii) payment to the Administrative Agent of a $5,000 assignment fee, which consent shall not be unreasonably withheld or delayed and which shall be deemed to have been given fifteen business days after
being sought unless expressly refused within that period, transfer all or any of its rights and/or obligations under the Credit Facility to another bank or financial institution which is regularly engaged in or established for the purpose of making,
purchasing or investing in asset finance loans or other related products.
		
		 	On or after the Original Borrowing Date, a Lender may, after consultation with the Borrower and subject to (i) the consent of, and without incurring any additional cost for, the Administrative Agent (unless the
transfer is to another affiliate), (ii) a minimum transfer of $10 million and (iii) payment to the Administrative Agent of a $5,000 assignment fee, which consent shall not be unreasonably withheld or delayed and which shall be deemed to have been
given fifteen business days after being sought unless expressly refused within that period, transfer all or any of its rights and/or obligations under the Credit Facility to another bank or financial institution which is regularly engaged in or
established for the purpose of making, purchasing or investing in asset finance loans or other

  
 The above terms and conditions
remain subject to acceptable documentation. Please note further that the entering by the Lenders into any facility agreement requires (1) prior receipt by the Lenders of duly executed account opening forms, both in form and substance satisfactory to
the Lenders and (2) anti-money laundering requirements being met. 

  
 21 

 Strictly confidential 

 
  

							
		 	related products.
		
	Market Disruption:	 	If a Market Disruption Event occurs in relation to a Loan for any Interest Period, then the rate of interest on each Lender’s share of the Loan for the Interest Period shall be the rate per annum which is the sum
of (x) the Applicable Margin and (y) the rate notified to the Administrative Agent by that Lender, which expresses the cost to that Lender of funding its participation in the Loan from whatever source it may reasonably select.
		
		 	“Market Disruption Event” shall mean (i) if LIBOR is not available or (ii) the Administrative Agent receives notifications from a Lender or Lenders whose participations in the Loan exceed 50% of the
Loan that the cost to it or them of obtaining matching deposits in the London interbank market would be in excess of LIBOR.
		
	Indemnification:	 	The documentation for the Credit Facility will contain customary indemnities for the Administrative Agent and the Lenders, other than as a result of such indemnified party’s gross negligence or willful
misconduct.
		
	“Know Your Customer”:	 	The Borrower, Guarantors and each Lender shall supply, or procure the supply of, such documentation and other evidence as is reasonably requested by the Administrative Agent or any Lender in order to carry out and be
satisfied with all necessary “know your customer” (“KYC”) or other similar checks under all applicable laws and regulations pursuant to the transactions contemplated in the Credit Facility and shall satisfy all internal
compliance policies of the Administrative Agent or any Lender related to KYC checks.
		
	Governing Law:	 	The Credit Facility shall be governed by New York law. The Security Agreements shall be governed by the relevant law.
		
	Jurisdiction	 	The courts of the state of New York located in New York County and the United States District Court for the Southern District of New York shall have exclusive jurisdiction to settle any dispute arising out of or in
connection with the Credit Facility and any dispute shall be referred to such New York courts as the court of first instance provided however that, no Lender or the Security Trustee shall be prevented from taking proceedings relating to a dispute in
any other courts with jurisdiction.

  
 The above terms and conditions
remain subject to acceptable documentation. Please note further that the entering by the Lenders into any facility agreement requires (1) prior receipt by the Lenders of duly executed account opening forms, both in form and substance satisfactory to
the Lenders and (2) anti-money laundering requirements being met. 

  
 22 

 Strictly confidential 

 
  

 ANNEX I 

COLLATERAL VESSELS 
  

																							
	 	 	 Collateral
	 	 	 	 	 	 	 	 Contract
	 	 	 	 	 	 	 	 	 	 
	#	 	 Vessels
	 	 Vessel Owner
	 	 Type
	 	 DWT
	 	 Delivery Date
	 	 Hull No
	 	 Shipyard
	 	Contract Price	 	 	Loan Amount	 
										
	 1
	 	SBI Bravo	 	SBI Bravo Shipping Company Ltd	 	Ultramax Bulk Carrier	 	61,000	 	16 March 2015	 	NE180	 	NACKS	 	$	27,520,000	  	 	$	15,000,000	  
	 2
	 	SBI Antares	 	SBI Antares Shipping Company Ltd	 	Ultramax Bulk Carrier	 	61,000	 	16 March 2015	 	NE181	 	NACKS	 	$	27,520,000	  	 	$	15,000,000	  
	 3
	 	SBI Maia	 	SBI Maia Shipping Company Ltd	 	Ultramax Bulk Carrier	 	61,000	 	30 September 2015	 	NEI 82	 	NACKS	 	$	27,520,000	  	 	$	15,000,000	  
	 4
	 	SBI Hydra	 	SBI Hydra Shipping Company Ltd	 	Ultramax Bulk Carrier	 	61,000	 	30 September 2015	 	NE183	 	NACKS	 	$	27,520,000	  	 	$	15,000,000	  
	 5
	 	SBI Hyperion	 	SBI Hyperion Shipping Company Ltd	 	Ultramax Bulk Carrier	 	61,000	 	[15 May 2016]	 	NE194	 	NACKS	 	$	28,000,000	  	 	$	15,000,000	  
	 6
	 	SBI Tethys	 	SBI Tethys Shipping Company Ltd	 	Ultramax Bulk Carrier	 	61,000	 	[15 June 2016]	 	NE195	 	NACKS	 	$	28,000,000	  	 	$	15,000,000	  
	 7
	 	SBI Leo	 	SBI Leo Shipping Company Ltd	 	Ultramax Bulk Carrier	 	61,000	 	29 May 2015	 	DE018	 	DACKS	 	$	27,520,000	  	 	$	15,000,000	  
	 8
	 	SBI Lyra	 	SBI Lyra Shipping Company Ltd	 	Ultramax Bulk Carrier	 	61,000	 	31 July 2015	 	DE019	 	DACKS	 	$	27,520,000	  	 	$	15,000,000	  
	 9
	 	SBI Subaru	 	SBI Subaru Shipping Company Ltd	 	Ultramax Bulk Carrier	 	61,000	 	31 August 2015	 	DE020	 	DACKS	 	$	27,520,000	  	 	$	15,000,000	  
	 10
	 	SBI Ursa	 	SBI Ursa Shipping Company Ltd	 	Ultramax Bulk Carrier	 	61,000	 	30 October 2015	 	DE021	 	DACKS	 	$	27,520,000	  	 	$	15,000,000	  
	 11
	 	SBI Pegasus	 	SBI Pegasus Shipping Company Ltd	 	Ultramax Bulk Carrier	 	63,500	 	30 September 2015	 	CX0651	 	Chengxi	 	$	26,170,000	  	 	$	15,000,000	  
	 12
	 	SBI Orion	 	SBI Orion Shipping Company Ltd	 	Ultramax Bulk Carrier	 	63,500	 	30 November 2015	 	CX0652	 	Chengxi	 	$	26,170,000	  	 	$	15,000,000	  
	 13
	 	SBI Hercules	 	SBI Hercules Shipping Company Ltd	 	Ultramax Bulk Carrier	 	63,500	 	31 January 2016	 	CX0653	 	Chengxi	 	$	26,170,000	  	 	$	15,000,000	  
	 14
	 	SBI Kratos	 	SBI Kratos Shipping Company Ltd	 	Ultramax Bulk Carrier	 	63,500	 	[30 April 2016]	 	TBD	 	Chengxi	 	$	26,417,500	  	 	$	15,000,000	  
	 15
	 	SBI Samson	 	SBI Samson Shipping Company Ltd	 	Ultramax Bulk Carrier	 	63,500	 	[30 June 2016]	 	TBD	 	Chengxi	 	$	26,417,500	  	 	$	15,000,000	  
	 16
	 	SBI Phoenix	 	SBI Phoenix Shipping Company Ltd	 	Ultramax Bulk Carrier	 	63,500	 	[30 September 2016]	 	TBD	 	Chengxi	 	$	26,417,500	  	 	$	15,000,000	  
	 17
	 	SBI Capoeira	 	SBI Capoeira Shipping Company Ltd	 	Kamsarmax Bulk Carrier	 	82,000	 	31 July 2015	 	51228	 	Hudong-Zhonghua	 	$	28,100,000	  	 	$	15,000,000	  
	 18
	 	SBI Carioca	 	SBI Carioca Shipping Company Ltd	 	Kamsarmax Bulk Carrier	 	82,000	 	31 October 2015	 	S1229	 	Hudong-Zhonghua	 	$	28,100,000	  	 	$	15,000,000	  
	 19
	 	SBI Lambada	 	SBI Lambada Shipping Company Ltd	 	Kamsarmax Bulk Carrier	 	82,000	 	31 January 2016	 	S1230	 	Hudong-Zhonghua	 	$	28,100,000	  	 	$	15,000,000	  
	 20
	 	SBI Macarena	 	SBI Macarena Shipping Company Ltd	 	Kamsarmax Bulk Carrier	 	82,000	 	31 May 2016	 	S1231	 	Hudong-Zhonghua	 	$	28,100,000	  	 	$	15,000,000	  
	 21
	 	SBI Swing	 	SBI Swing Shipping Company Ltd	 	Kamsarmax Bulk Carrier	 	82,000	 	31 August 2016	 	S1232	 	Hudong-Zhonghua	 	$	28,100,000	  	 	$	15,000,000	  
	 22
	 	SBI Jive	 	SBI Jive Shipping Company Ltd	 	Kamsarmax Bulk Carrier	 	82,000	 	30 September 2016	 	S1233	 	Hudong-Zhonghua	 	$	28,100,000	  	 	$	15,000,000	  
		 		 		 		 		 		 		 		 	  
	  
	 	 	  
	  
	 
		 		 		 		 		 		 		 		 	$	602,522,500	  	 	$	330,000,000	  

  
 23 

 Strictly confidential 

 
  

 ANNEX II 

APPROVED BROKERS 
 Clarkson 

RS Platou 
 Braemar Seascope
Limited 
 Maersk Broker 

Fearnleys 
 Galbraith 

  

  
 24 

 Strictly confidential 

 
  

 ANNEX III 

FINANCIAL COVENANTS DEFINITIONS 
 “Cash
Equivalents” means: 
 (a) securities issued or directly and fully guaranteed or insured by the United States of America or any agency or
instrumentality thereof (provided that the full faith and credit of the United States of America is pledged in support thereof); 
 (b) time
deposits, certificates of deposit or deposits in the interbank market of any commercial bank of recognized standing organized under the laws of the United States of America, any state thereof or any foreign jurisdiction having capital and surplus in
excess of $500,000,000; and 
 (c) such other securities or instruments as the Required Lenders shall agree in writing; and in respect of both (a) and
(b) above, with a rating category of at least “A+” by S&P and “A” by Moody’s (or the equivalent used by another rating agency) in each case having maturities of not more than ninety (90) days from the date of
acquisition. 
 “Consolidated EBITDA” means, for any accounting period, the consolidated net income of the Borrower for that accounting
period: 
 (a) plus, to the extent deducted in computing the net income of the Borrower for that accounting period, the sum, without duplication, of: 

(i) all federal, state, local and foreign income taxes and tax distributions; 

(ii) Consolidated Net Interest Expense; 
 (iii) depreciation,
depletion, amortization of intangibles and other non-cash charges or non-cash losses (including non-cash transaction expenses and the amortization of debt discounts) and any extraordinary losses not incurred in the ordinary course of business; 

(iv) expenses incurred in connection with a special or intermediate survey (including any underwater survey done in lieu thereof) of a Ship during such
period; and 
 (v) any drydocking expenses; 
 (b) minus, to
the extent added in computing the consolidated net income of the Guarantor for that accounting period, (i) any non-cash income or non-cash gains and (ii) any extraordinary gains on asset sales not in the ordinary course of business. 

“Consolidated Funded Debt” means, for any accounting period, the sum of the following for the Borrower determined (without duplication) on a
consolidated basis for such period and in accordance with US GAAP consistently applied: 
 (a) all Financial Indebtedness; and 

(b) all obligations to pay a specific purchase price for goods or services whether or not delivered or accepted (including take-or-pay and similar obligations
which in accordance with US GAAP would be shown on the liability side of a balance sheet); 
 provided that balance sheet accruals for future
drydock expenses shall not be classified as Consolidated Funded Debt. 

  
 25 

 Strictly confidential 

 
  

 “Consolidated Net Interest Expense” means the aggregate of all interest, commissions,
discounts and other costs, charges or expenses accruing that are due from the Borrower and all of its subsidiaries during the relevant accounting period less (i) commitment fees, (ii) interest income received and (iii) amortization of
deferred charges and arrangement fees, determined on a consolidated basis in accordance with US GAAP and as shown in the consolidated statements of income for the Borrower. 

“Consolidated Tangible Net Worth” means, on a consolidated basis, the total shareholders’ equity (including retained earnings) of the
Borrower, minus goodwill. 
 “Consolidated Total Capitalization” means Consolidated Tangible Net Worth plus Consolidated Funded Debt. 

“Financial Indebtedness” means, with respect to any person (the “Debtor”) at any date of determination (without
duplication): 
 (a) all obligations of the debtor for principal, interest or any other sum payable in respect of any moneys borrowed or raised by the
Debtor; 
 (b) all obligations of the Debtor evidenced by bonds, debentures, notes or other similar instruments; 

(c) all obligations of the Debtor in respect of any acceptance credit, guarantee or letter of credit facility or equivalent made available to the Debtor
(including reimbursement obligations with respect thereto); 
 (d) all obligations of the Debtor to pay the deferred purchase price of property or services,
which purchase price is due more than six months after the date of placing such property in service or taking delivery thereto or the completion of such services, except trade payables; 

(e) all capitalized lease obligations of the Debtor as lessee; 

(f) all Financial Indebtedness of persons other than the Debtor secured by a security interest on any asset of the Debtor, whether or not such Financial
Indebtedness is assumed by the Debtor, provided that the amount of such Financial Indebtedness shall be the lesser of (i) the fair market value of such asset at such date of determination and (ii) the amount of such Financial
Indebtedness; and 
 (g) all Financial Indebtedness of persons other than the Debtor under any guarantee, indemnity or similar obligation entered into by
the Debtor to the extent such Financial Indebtedness is guaranteed, indemnified, etc. by the Debtor. 
 The amount of Financial Indebtedness of any Debtor
at any date shall be the outstanding balance at such date of all unconditional obligations as described above and, with respect to contingent obligations described in (f) and (g) above, the maximum liability upon the occurrence of the
contingency giving rise to the obligation, provided that (i) the amount outstanding at any time of any Financial Indebtedness issued with an original issue discount is the face amount of such Financial Indebtedness less the remaining
unamortized portion of such original issue discount of such Financial Indebtedness at such time, and (ii) Financial Indebtedness shall not include any liability for taxes. 

“Net Debt” means Financial Indebtedness less cash and Cash Equivalents. 

  
 26

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