Document:

Exhibit 10.2

 

SHIPBUILDING
CONTRACT

 

FOR

 

THE
CONSTRUCTION OF

 

ONE (1) 158,000
DWT CLASS CRUDE OIL CARRIER

 

HULL
NO.2300

 

BETWEEN

 

SUEZ TOPAZ
LIMITED

 

(AS BUYER)

 

AND

 

HYUNDAI
HEAVY INDUSTRIES CO. LTD

 

(AS
BUILDER)

 

 

INDEX

 

	
  Article

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  ARTICLE I: DESCRIPTION AND CLASS

  	
   

  	
  2

  
	
   

  	
   

  	
   

  
	
  ARTICLE II: CONTRACT PRICE

  	
   

  	
  4

  
	
   

  	
   

  	
   

  
	
  ARTICLE III: ADJUSTMENT OF THE CONTRACT PRICE

  	
   

  	
  5

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV: INSPECTION AND APPROVAL

  	
   

  	
  7

  
	
   

  	
   

  	
   

  
	
  ARTICLE V: MODIFICATIONS, CHANGES AND EXTRAS

  	
   

  	
  11

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI: TRIALS AND COMPLETION

  	
   

  	
  13

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII: DELIVERY

  	
   

  	
  15

  
	
   

  	
   

  	
   

  
	
  ARTICLE VIII: DELAYS AND EXTENSIONS OF TIME (FORCE
  MAJEURE)

  	
   

  	
  17

  
	
   

  	
   

  	
   

  
	
  ARTICLE IX: WARRANTY OF QUALITY

  	
   

  	
  19

  
	
   

  	
   

  	
   

  
	
  ARTICLE X: PAYMENT

  	
   

  	
  22

  
	
   

  	
   

  	
   

  
	
  ARTICLE XI: BUYER’S DEFAULT

  	
   

  	
  25

  
	
   

  	
   

  	
   

  
	
  ARTICLE XII: BUYER’S SUPPLIES

  	
   

  	
  27

  
	
   

  	
   

  	
   

  
	
  ARTICLE XIII: ARBITRATION

  	
   

  	
  28

  
	
   

  	
   

  	
   

  
	
  ARTICLE XIV: SUCCESSORS AND ASSIGNS

  	
   

  	
  29

  
	
   

  	
   

  	
   

  
	
  ARTICLE XV: TAXES AND DUTIES

  	
   

  	
  30

  
	
   

  	
   

  	
   

  
	
  ARTICLE XVI: PATENTS, TRADEMARKS AND COPYRIGHTS

  	
   

  	
  31

  
	
   

  	
   

  	
   

  
	
  ARTICLE XVII: INTERPRETATION AND GOVERNING LAW

  	
   

  	
  32

  
	
   

  	
   

  	
   

  
	
  ARTICLE XVIII: NOTICE

  	
   

  	
  33

  
	
   

  	
   

  	
   

  
	
  ARTICLE XIX: INSURANCE

  	
   

  	
  34

  
	
   

  	
   

  	
   

  
	
  ARTICLE XX: BUILDER’S DEFAULT

  	
   

  	
  35

  
	
   

  	
   

  	
   

  
	
  ARTICLE XXI: EFFECTIVENESS OF THIS CONTRACT

  	
   

  	
  36

  
	
   

  	
   

  	
   

  
	
  ARTICLE XXI: EXCLUSIVENESS

  	
   

  	
  37

  

 

 

SHIPBUILDING CONTRACT

 

THIS
CONTRACT is made
on this 2nd day of June, 2008 by and between SUEZ TOPAZ LIMITED (hereinafter called the “BUYER”), a corporation incorporated and existing under the laws of The
Republic of the Marshall Islands with its registered office at Trust Company
Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands MH 96960, the
party of the first part and HYUNDAI HEAVY
INDUSTRIES CO., LTD., a company organized and existing under the
laws of the Republic of Korea, having its registered office at 1, Jeonha-Dong,
Dong-Gu, Ulsan, Korea (hereinafter called the “BUILDER”),  the
party of the second part,

 

WITNESSETH:

 

In consideration of the
mutual covenants contained herein, the BUILDER agrees to design, build, launch,
equip, test and complete one (1) 158,000 DWT Class Crude Oil Carrier
as described in Article I hereof (hereinafter called the “VESSEL”) at the BUILDER’S shipyard in Gunsan, Korea
(hereinafter called the “SHIPYARD”)  and
to deliver and sell the VESSEL to the BUYER, and the BUYER agrees to accept
delivery of and purchase from the BUILDER the VESSEL, according to the terms
and conditions hereinafter set forth.

 

(End of Preamble)

 

1

 

ARTICLE
I:     DESCRIPTION AND CLASS

 

1          DESCRIPTION

 

The
VESSEL shall have the BUILDER’S Hull No. 2300 and shall be designed,
constructed, equipped, launched, tested and completed in accordance with the
provisions of this Contract and the specifications No. COOB158-FS-P1 dated
7 May 2008 as amended by the BUILDER’S Reply/Clarifications to BUYER’S
comments ref. no.COOB158-01-R2 dated 31 May 2008 and the general
arrangement plan No.IG-7000-201 dated 30 May 2008 (hereinafter called the “SPECIFICATIONS and the PLAN”) signed on the cover page and initialled on each page by
both parties, which shall constitute an integral part of the CONTRACT although not
attached hereto.

 

The
SPECIFICATIONS and the PLAN are intended to explain each other and anything
shown on the PLAN and not stipulated in the SPECIFICATIONS or anything
stipulated in the SPECIFICATIONS and not shown on the PLAN shall be deemed and
considered as if included in both. Should there be any inconsistencies or
contradictions between the SPECIFICATIONS and the PLAN, the SPECIFICATIONS
shall prevail. Subject to the provisions of Article 1.4 hereof should
there be any inconsistencies or contradictions between this CONTRACT and the
SPECIFICATIONS and the PLAN this CONTRACT shall prevail.

 

2          BASIC
DIMENSIONS AND PRINCIPAL PARTICULARS OF THE VESSEL

 

	
  (a)

  	
   

  	
  The basic dimensions
  and principal particulars of the VESSEL shall be:

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Length, overall

  	
   

  	
  Maximum

  	
   

  	
  274.00 metres

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Length, between
  perpendiculars

  	
   

  	
   

  	
   

  	
  264.00 metres

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Breath, moulded

  	
   

  	
   

  	
   

  	
  48.00 metres

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Depth to Upper Deck,
  moulded

  	
   

  	
   

  	
   

  	
  23.10 metres

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Scantling draft,
  moulded, in seawater of specific gravity of 1.025

  	
   

  	
   

  	
   

  	
  17.15 metres

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Deadweight on the above
  moulded scantling draft of 17.15 metres

  	
   

  	
   

  	
   

  	
  158,460 M/T
  (the  “GUARANTEED
  DEADWEIGHT”)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Main propelling
  machinery

  	
   

  	
   

  	
   

  	
  Hyundai BMW
  6S70MC-C8

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  MCR:

  	
   

  	
  19,620 kW

  	
   

  	
  x 91.0 RPM

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  NCR:

  	
   

  	
  17,658 kW

  	
   

  	
  x 87.9 RPM

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Service speed at 16
  metres design draft at the condition of clean bottom and in calm and deep sea
  with main engine developing a NCR of 17,658 kW with fifteen per cent (15%)
  sea margin

  	
   

  	
   

  	
   

  	
  16 KNOTS (the “GUARANTEED SPEED”)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Specific Fuel
  consumption of the main engine applying I.S.O. reference conditions to the
  result of official shop test at a MCR of 19,620 kW using marine diesel oil
  having lower calorific value of 42,700 kJ/kg.

  	
   

  	
   

  	
   

  	
  169g/kW.h (the “GUARANTEED FUEL CONSUMPTION”)

  

 

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

 

(b)           The dimensions may be slightly modified
by the BUILDER, who also reserves the right to make changes to the
SPECIFICATIONS and the PLAN if found necessary to suit the local conditions and
facilities of the SHIPYARD, the availability of materials and equipment, the

 

2

 

introduction of
improved production methods or otherwise, subject in each case to the approval
of the BUYER.

 

3          CLASSIFICATION,
RULES AND REGULATIONS

 

(a)           The VESSEL shall be built in compliance
with the current rules and regulations of Lloyds Registry, or such other
Classification Society as may be nominated by the BUYER by 30 September 2008
(hereinafter called the “CLASSIFICATION
SOCIETY”). The expression current rules and regulations shall
mean those in effect as of the date of execution of this CONTRACT by all
parties hereto (which shall be deemed to include rules and regulations
adopted and ratified as of the date of this CONTRACT having a mandatory
application date, adopted at the time of execution of this CONTRACT, falling
after the date hereof but before 31 December 2010 to be classed and
registered as “+100A1, Double Hull Oil Tanker CSR, ESP, ShipRight (CM, ACS(B)),
LI, *IWS, SPM, +LMC, UMS, IGS, with descriptive notes Pt.Ht, ShipRight
(BWMP(s), SCM), COW, ETA, NAV1, EP” and also to comply with the rules and
regulations, in force as of the date of this CONTRACT, and requirements
described in the SPECIFICATIONS, in effect as of the date of execution of this
CONTRACT by all parties hereto (which shall be deemed to include rules and
regulations adopted and ratified as of the date of this CONTRACT having a
mandatory application date, adopted at the time of execution of this CONTRACT
falling after the date hereof but before 31 December 2010.

 

(b)           The BUILDER shall arrange with the
CLASSIFICATION SOCIETY for the assignment by the CLASSIFICATION SOCIETY of
representative(s) to the VESSEL during construction. All fees and charges
incidental to the classification of the VESSEL in compliance with the above
specified rules, regulations and requirements of this CONTRACT shall be for the
account of the BUILDER.

 

(c)           The decision of the CLASSIFICATION
SOCIETY as to whether the VESSEL complies with the rules and regulations
of the CLASSIFICATION SOCIETY shall be final and binding upon the BUILDER and
the BUYER.

 

(d)           The BUILDER shall disclose to the BUYER
at their request correspondence related to the VESSEL’S hull key plans
exchanged between the BUILDER and the CLASSIFICATION SOCIETY during the initial
design stage. It is understood that the disclosure is for BUYER’s information
only and that the BUYER does not have the right to interfere or comment with
respect to the disclosed correspondence between the BUILDER and the
CLASSIFICATION SOCIETY, so as that said disclosure will be for information
purposes only.

 

4          SUBCONTRACTING

 

The BUILDER may sub-contract
in accordance with the SPECIFICATIONS without the BUYER’S prior written
approval always provided that:

 

(i)            The BUILDER shall not sub-contract any
part of the VESSEL or the construction work to contractors outside Korea; and

 

(ii)           The pre-erection and final erection of
the VESSEL shall not take place outside the Shipyard except for the
accommodation block, bulbous bow, engine casing and stern frame, which may be
erected without pre-erection at the Shipyard according to the BUILDER’S
practice.

 

The BUILDER may with the
prior written approval of the BUYER sub-contract any other part of the VESSEL
or of the construction work.

 

Whenever the BUILDER
sub-contracts any part of the VESSEL or the construction work the BUILDER shall
remain fully responsible for the product of the works and the performance of
the VESSEL

 

5          REGISTRATION
OF THE VESSEL

 

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

 

(End of Article)

 

3

 

ARTICLE II:     CONTRACT PRICE

 

The contract price
of the VESSEL delivered to the BUYER at the SHIPYARD shall be United States
Dollars Ninety Two Million and Two Hundred Thousand (US$92,200,000)
(hereinafter called the “CONTRACT PRICE”)  which
shall be paid plus any increases or less any decreases due to adjustment or
modifications, if any, as set forth in this CONTRACT. The above CONTRACT PRICE
shall include payment for services in the inspection, tests, survey and
classification of the VESSEL which will be rendered by the CLASSIFICATION
SOCIETY and shall not include the cost of the BUYER’s SUPPLIES as stipulated in
Article XII, but shall include the cost of storing, safekeeping, handling
and installing the BUYER’s SUPPLIES as per Article XII.

 

The CONTRACT PRICE
also includes all costs and expenses for supplying all necessary drawings as
stipulated in the SPECIFICATIONS except those to be furnished by the BUYER for
the VESSEL in accordance with the SPECIFICATIONS.

 

(End of Article)

 

4

 

ARTICLE III:     ADJUSTMENT OF THE CONTRACT PRICE

 

The
CONTRACT PRICE of the VESSEL shall be adjusted as hereinafter set forth in the
event of the following contingencies. It is hereby understood by both parties
that any adjustment of the CONTRACT PRICE as provided for in this Article 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 (ending as of 12 o’clock midnight Korean Standard
Time on the thirtieth (30th) day of
delay) beyond the Delivery Date calculated as provided in Article VII.1
hereof.

 

(b)    If the delivery of the VESSEL is delayed
more than thirty (30) days beyond the date upon which the delivery is due from
the BUILDER under the terms of this CONTRACT, then, beginning at midnight of the
thirtieth (30th)
day after such due date, the CONTRACT PRICE of the VESSEL shall be reduced by
U.S. Dollars Twenty Five Thousand (US$25,000) for each full day of delay.

 

However,
unless the parties agree otherwise, the total amount of deduction from the CONTRACT
PRICE shall not exceed the amount due to cover the delay of one hundred and
eighty (180) days after thirty (30) days of the delay in delivery of the VESSEL
at the rate of deduction as specified hereinabove.

 

(c)     But if the delay in delivery of the
VESSEL continues for a period of more than two hundred and ten (210) days
beyond the date upon which the delivery is due from the BUILDER under the terms
of this CONTRACT then, in such event and after such period has expired, the
BUYER may, at its option, cancel this CONTRACT by serving upon the BUILDER a
notice of cancellation by facsimile to be confirmed by a registered letter via
airmail or courier directed to the BUILDER at the address given in this
CONTRACT. Such cancellation shall be effective as of the date the notice
thereof is received by the BUILDER. If the BUYER has not served the notice of
cancellation after the aforementioned two hundred and ten (210) days delay in
delivery, the BUILDER may demand the BUYER to make an election in accordance with
Article VIII.3 hereof.

 

(d)    For the purpose of this Article, the
delivery of the VESSEL shall be deemed to be delayed when and if the VESSEL,
after taking into full account extension of the Delivery Date or permissible
delays as provided in Article V, VI, VIII, XI or elsewhere in this
CONTRACT, is delivered beyond the date upon which delivery would then be due
under the terms of this CONTRACT.

 

2           INSUFFICIENT
SPEED

 

(a)    The CONTRACT PRICE of the VESSEL shall
not be affected or changed, if the actual speed, as determined by trial runs
more fully described in Article VI hereof, is less than the Guaranteed
Speed provided such deficiency in actual speed is not more than three-tenth
(3/10ths) of a knot below the Guaranteed Speed.

 

(b)    However, as for the deficiency of more
than three-tenth (3/10ths) of a knot in actual speed below the
Guaranteed Speed, the CONTRACT PRICE shall be reduced by U.S. Dollars One
Hundred and Forty Thousand (US$140,000) for each full one-tenth (1/10th) of a knot in excess of the said three-tenth (3/10ths) of a knot of deficiency in speed (fractions of less
than one-tenth (1/10th) of a knot shall be regarded as a full
one-tenth (1/10th) of a knot). However, unless the parties
agree otherwise, the total amount of reduction from the CONTRACT PRICE shall
not exceed the amount due to cover the deficiency of eight-tenths (8/10ths) of one (1) full knot below the Guaranteed Speed
at the rate of reduction as specified above.

 

(c)    If the deficiency in actual speed of the
VESSEL is more than eight-tenths (8/10ths) of one (1) full knot below the Guaranteed Speed under this
CONTRACT, then the BUYER, at its option, may, subject to the BUILDER’S right to
effect alterations or corrections as provided in Article VI.5. hereof,
cancel this CONTRACT or may accept the VESSEL at a reduction in the

 

5

 

CONTRACT
PRICE as above provided for eight-tenths 8/10ths) of one (1) full knot of deficiency only.

 

3           EXCESSIVE
FUEL CONSUMPTION

 

(a)    The CONTRACT PRICE shall not be affected
or changed by reason of the fuel consumption of the VESSEL’S main engine, as
determined by the engine manufacturer’s shop trial as per the SPECIFICATIONS
being more than the Guaranteed Fuel Consumption of the VESSEL’S main engine, if
such excess is not more than five per cent (5%) over the Guaranteed Fuel
Consumption.

 

(b)    However, as for the excess of more than
five per cent (5%) in the actual fuel consumption over the Guaranteed Fuel
Consumption of the VESSEL’S main engine, the CONTRACT PRICE shall be reduced by
U.S. Dollars One Hundred and Forty Five Thousand (U.S.$145,000) for each full
one per cent (1%) increase in fuel consumption in excess of the said five per
cent (5%) increase in fuel consumption (fractions of less than one per cent
(1%) shall be regarded as a full one per cent (1%)). However, unless the
parties agree otherwise, the total amount of reduction from the CONTRACT PRICE
shall not exceed the amount due to cover the excess of eight percent (8%) over
the Guaranteed Fuel Consumption of the VESSEL’S main engine at the rate of
reduction as specified above.

 

(c)    If such actual fuel consumption exceeds
the Guaranteed Fuel Consumption of the VESSEL’S main engine by more than eight
per cent (8%), the BUYER, at its option, may, subject to the BUILDER’S right to
effect alterations or corrections as specified in Article VI.5. hereof,
cancel this CONTRACT or may accept the VESSEL at a reduction in the CONTRACT
PRICE as above provided for the eight per cent (8%) increase only.

 

4           DEADWEIGHT
BELOW CONTRACT REQUIREMENTS

 

(a)    The CONTRACT PRICE of the VESSEL shall
not be affected or changed if the actual deadweight determined as provided in
this CONTRACT and the SPECIFICATIONS is below the Guaranteed Deadweight by an
amount of one thousand four hundred metric tons (1,400m.t.) or less. However,
should the deficiency in the actual deadweight of the VESSEL be more than one
thousand four hundred metric tons (1,400m.t.) below the Guaranteed Deadweight,
then the CONTRACT PRICE of the VESSEL shall be reduced for each full one (1) metric
ton (fractions of less than one (1) metric ton shall be disregarded) of
decreased deadweight in excess of one thousand four hundred metric tons
(1,400m.t.) by the sum of U.S. Dollars One Thousand (US$1,000) per metric ton.

 

However,
unless the parties agree otherwise, the total amount of deduction from the
CONTRACT PRICE shall not exceed the amount due to cover the deficiency of two
thousand six hundred metric tons (2,600m.t.) below the Guaranteed Deadweight
hereinabove.

 

(b)    If the deficiency in the deadweight of
the VESSEL is more than two thousand six hundred metric tons (2,600 m.t.) below
the Guaranteed Deadweight, then the BUYER, at its option, either cancel this
CONTRACT or accept the VESSEL at a reduction in the CONTRACT PRICE as above
provided for one thousand two hundred metric tons (1,200m.t.) of deficiency
only.

 

5           EFFECT OF
CANCELLATION

 

It is
expressly understood and agreed by the parties hereto that in any case, if the
BUYER cancels this CONTRACT under this Article, the BUYER shall not be entitled
to any liquidated damages.

 

6           CUMULATIVE
EFFECT OF LIQUIDATED DAMAGES

 

The
liquidated damages payable under this Article are cumulative and not
exclusive.

 

(End of Article)

 

6

 

ARTICLE IV:     INSPECTION AND APPROVAL

 

1          APPOINTMENT
OF BUYER’S REPRESENTATIVE

 

The BUYER shall
despatch to and maintain at the SHIPYARD, at its own cost, expense and risk,
one or more representatives (hereinafter each called the “BUYER’S REPRESENTATIVE”),  who
shall be duly accredited in writing by the BUYER to supervise adequately the
construction by the BUILDER of the VESSEL, her equipment and all accessories.
Before the commencement of any item of work under this CONTRACT, the BUILDER
shall previously exhibit, furnish to, and, within the limits of the BUYER’S
REPRESENTATIVE’S authority, secure the approval from, the BUYER’S
REPRESENTATIVE of any and all plans and drawings prepared in connection
therewith. Upon appointment of the BUYER’S REPRESENTATIVE, the BUYER shall
notify the BUILDER in writing of the name and the scope of the authority of the
BUYER’S REPRESENTATIVE.

 

2          AUTHORITY
OF THE BUYER’S REPRESENTATIVE

 

Such
BUYER’S REPRESENTATIVE shall, at all times during working hours of the
construction and until delivery and acceptance of the VESSEL, have the right to
inspect the VESSEL, her equipment and all accessories, and work in progress, or
materials utilized in connection with the construction of the VESSEL, wherever
such work is being done or such materials are stored, for the purpose of
determining that the VESSEL, her equipment and accessories are being
constructed in accordance with the terms of this CONTRACT and/or the
SPECIFICATIONS and the PLAN.

 

The
BUILDER will endeavour to arrange for the inspection by the BUYER’s
REPRESENTATIVE during working hours of the BUILDER. However, such inspection
will take place within the BUILDER’S normal working hours (0800 to 1800)
including weekends and/or holiday if this is considered necessary by the BUILDER
in order to meet the BUILDER’S construction schedule, on the condition that the
BUILDER will inform the BUYER’s REPRESENTATIVE at least two (2) days in
advance of such inspection.

 

The
BUYER’s REPRESENTATIVE shall have the right to attend all tests and inspections
performed at the BUILDER’S and/or any sub-contractor’s, manufacturer’s,
supplier’s or vendor’s facility. The BUILDER shall, notify the BUYER reasonably
in advance in writing of the time and place of inspections and tests required
under the CONTRACT and SPECIFICATIONS, and the BUILDER shall make every effort
to avoid overlapping between any such inspections and tests. All inspections
and tests shall be performed at the BUILDER’S cost and expense, but the BUYER
shall bear all costs and expenses relating to the attendance of such
inspections and tests by the BUYER’s REPRESENTATIVE.

 

The
BUYER’S REPRESENTATIVE shall, within the limits of the authority conferred upon
him by the BUYER, make decisions or give advice to the BUILDER on behalf of the
BUYER promptly on all problems arising out of, or in connection with, the
construction of the VESSEL and generally act in a reasonable manner with a view
to co-operating to the utmost with the BUILDER in the construction process of
the VESSEL.

 

The
decision, approval or advice of the BUYER’S REPRESENTATIVE shall be deemed to
have been given by the BUYER and once given shall not be withdrawn, revoked or
modified except with the consent of the BUILDER. The BUYER’S REPRESENTATIVE
shall notify the BUILDER promptly in writing of his discovery of any
construction or materials, which he believes do not or will not conform to the
requirements of the CONTRACT and the SPECIFICATIONS and the PLAN and likewise
advise and consult with the BUILDER on all matters pertaining to the
construction of the VESSEL as may be required by the BUILDER or as he may deem
necessary.

 

However,
if the BUYER’S REPRESENTATIVE fails to submit to the BUILDER without delay any
such demand concerning alterations or changes with respect to the construction,
arrangement or outfitting of the VESSEL, which the BUYER’S REPRESENTATIVE has
examined, inspected or attended at the test thereof under this CONTRACT or the
SPECIFICATIONS, the BUYER’S REPRESENTATIVE shall be deemed to have approved the
same and shall be precluded from making any demand for alterations, changes, or
complaints with respect thereto at a later date.

 

The BUILDER shall comply with any such demand which
is not contradictory to this CONTRACT and the SPECIFICATIONS and the PLAN, provided that any and
all such demands by the BUYER’S REPRESENTATIVE with regard to construction,
arrangement and outfitting of the VESSEL shall be submitted in writing to the
authorised representative of the BUILDER. The BUILDER shall notify the

 

7

 

BUYER’S
REPRESENTATIVE of the names of the persons who are from time to time authorised
by the BUILDER for this purpose.

 

It is
agreed upon between the BUYER and the BUILDER that the modifications,
alterations or changes and other measures necessary to comply with such demand
may be effected at a convenient time and place at the BUILDER’S reasonable
discretion in view of the construction schedule of the VESSEL.

 

In
the event that the BUYER’S REPRESENTATIVE shall advise the BUILDER that he has
discovered, or believes, that the construction or materials do not or will not
conform to the requirements of this CONTRACT and the SPECIFICATIONS and the
PLAN the BUILDER shall not agree with the views of the BUYER’S REPRESENTATIVE
in such respect, either the BUYER or the BUILDER may, with the agreement of the
other party, seek an opinion of the CLASSIFICATION SOCIETY or failing such
agreement, request an arbitration in accordance with the provisions of Article XIII
hereof. The CLASSIFICATION SOCIETY or the arbitration tribunal, as the case may
be, shall determine whether or not a non-conformity with the provisions of this
CONTRACT, the SPECIFICATIONS and the PLAN exists. If the CLASSIFICATION SOCIETY
or the arbitration tribunal, as the case may be, enters a determination in
favour of the BUYER, then in such case the BUILDER shall make the necessary
alterations or changes, or if such alterations or changes cannot be made in
time to meet the construction schedule for the VESSEL, the BUILDER may make a
fair and reasonable offer to adjust the CONTRACT PRICE in lieu of such
alterations and changes which the BUYER may at its sole discretion agree to
accept. If the CLASSIFICATION SOCIETY or the arbitration tribunal, as the case
may be, enters a determination in favour of the BUILDER, then the time for
delivery of the VESSEL shall be extended for the period of delay in
construction, if any, occasioned by such proceedings, and the BUYER shall
compensate the BUILDER for the proven loss and damages incurred by the BUILDER
as a result of the dispute herein referred to.

 

3          APPROVAL OF
DRAWINGS

 

(a)    The BUILDER shall submit to the BUYER
three (3) copies of each of the plans and drawings to be submitted to the
BUYER for its approval at its address as set forth in Article XVIII
hereof. The BUYER shall, within seventeen (17) days after receipt thereof
return to the BUILDER one (1) copy of such plans and drawings together
with the approval or comments, if any, of the BUYER. The BUILDER shall advise
the BUYER of its approval or rejection of the BUYER’s comments, if any, within
seventeen (17) days of receipt thereof. A list of the plans and drawings to be
so submitted to the BUYER and the order of submission thereof shall be mutually
agreed upon between the parties hereto prior to any plan or drawing being
submitted to the BUYER.

 

(b)    Provided that the plans and drawings have
been submitted in the order agreed in subparagraph (a) above, in the event
that the BUYER or the BUYER’S REPRESENTATIVE shall fail to return the plans and
drawings to the BUILDER within the time limit as hereinabove provided, such
plans and drawings shall be deemed to have been automatically approved without
any comment. In the event that the BUILDER fails to advise the BUYER of the
acceptance or rejection of any of the BUILDER’S comments within the time limit
specified above, such comments shall be deemed as approved by the BUILDER. In
the event the plans and drawings submitted by the BUILDER to the BUYER or the
BUYER’S REPRESENTATIVE in accordance with this Article do not meet with
the BUYER or the BUYER’S REPRESENTATIVE’S approval, the matter may be submitted
by either party hereto for determination pursuant to Article XIII hereof.
If the BUYER’s comments on the plans and drawings that are returned to the
BUILDER by the BUYER within the said time limit are not clear or clearly
specified or detailed, the BUILDER shall be entitled to place its own
interpretation on such comments in implementing them, provided it has first
asked the BUYER for a clear copy or for clarification and it has either not
received such clear copy or clarification within three (3) business days
from asking for the same or the clarification provided was incomprehensible.

 

For
the avoidance of doubt, the BUILDER shall be solely responsible for all aspects
of design, construction, workmanship and completion of the VESSEL in accordance
with this CONTRACT and the SPECIFICATIONS. No liability which would otherwise
be imposed on the BUILDER under this CONTRACT shall in any way be prejudiced or
affected by the fact that it arises in relation to (i) any plan or drawing
commented on or approved by the BUYER or the BUYER’s REPRESENTATIVE.

 

8

 

4                                SALARIES AND EXPENSES

 

All
salaries and expenses of the BUYER’S REPRESENTATIVE or any other person or
persons employed by the BUYER hereunder shall be for the BUYER’s account.

 

5                                RESPONSIBILITY OF THE
BUILDER

 

(a)             The
BUILDER shall provide the BUYER’S REPRESENTATIVE and his assistants free of charge
with suitably furnished and adequate in size office space at, or in the
immediate vicinity of, the SHIPYARD together with telephone, facsimile,
computer and modem outlet and such other facilities as may be necessary to
enable the BUYER’S REPRESENTATIVE and his assistants to carry out their work
under this CONTRACT. However, the BUYER shall pay for the telephone or
facsimile facilities used by the BUYER’S REPRESENTATIVE or his assistants.

 

With
an ample prior notice by the BUYER, the BUILDER shall arrange suitable and
convenient living quarters for the BUYER’s REPRESENTATIVES nearest possible to
the Shipyard which living quarters shall be provided for the entire
construction period, all at the BUYER’s expense.

 

The
BUILDER shall assist the BUYER to arrange that the necessary visas, working
permits and/or other documents that may be necessary for the BUYER’s
REPRESENTATIVE to enter and remain and work in Korea will be issued in order on
demand and without delay provided that the BUYER’s REPRESENTATIVE meets the
requirements and laws of Korea.

 

The
BUILDER, its employees, agents and sub-contractors, during its working hours
until delivery and acceptance of the VESSEL, shall arrange for the BUYER’S
REPRESENTATIVE to have free and ready access to the VESSEL, her equipment and
accessories and to any other place (except the areas controlled for the purpose
of national security) where work is being done or materials are being processed
or stored in connection with the construction of the VESSEL including the
premises of sub-contractors.

 

The
BUYER’S REPRESENTATIVE or his assistants or employees shall observe the work rules and
regulations and the guidances prevailing at the BUILDER’S and its
sub-contractor’s premises as advised to the BUYER’S REPRESENTATIVE in writing
in English. The BUILDER shall promptly provide to the BUYER’S REPRESENTATIVE
and/or his assistants and shall ensure that its sub-contractors shall promptly
provide all such information as he or they may reasonably request in connection
with the construction of the VESSEL and her engines, equipment and machinery.

 

(b)            The
BUYER’S REPRESENTATIVE and his assistants shall at all times remain the
employees of the BUYER. The BUILDER shall not be liable to the BUYER or the
BUYER’S REPRESENTATIVE or to his assistants or to the BUYER’S employees or
agents for personal injuries, including death, during the time they, or any of
them, are on the VESSEL or within the premises of either the BUILDER or its
sub-contractors or are otherwise engaged in and about the construction of the
VESSEL, unless, however, such personal injuries, including death, are caused by
the gross negligence of the BUILDER, its sub-contractors, or its or their
employees or agents. The BUILDER shall not be liable to the BUYER for damages
to, or destruction of, property of the BUYER or of the BUYER’S REPRESENTATIVE
or his assistants or the BUYER’S employees or agents, unless such damages, loss
or destruction have been caused by the gross negligence of the BUILDER, its
sub-contractors or its or their employees or agents.

 

The
BUYER and the BUYER’S REPRESENTATIVE or their respective assistant(s) shall
be under no liability whatsoever to the BUILDER, or to its employees,
subcontractors or agents for personal injuries, including death to such
employees, subcontractors or agents, during the time they or any of them are in
the SHIPYARD or within the premises of the BUILDER or its subcontractors or are
otherwise engaged in and upon the construction of the VESSEL unless, however,
such personal injuries including death have been caused by the gross negligence
of the BUYER and/or the BUYER’S REPRESENTATIVE or their respective assistant(s) while
acting within the scope of their employment. Nor shall the BUYER and/or the BUYER’S
REPRESENTATIVE or their respective assistant(s) be under any liability
whatsoever to the BUILDER or to its employees, agents or subcontractors for
damage to, loss or destruction of, property of the BUILDER’S employees,
subcontractors or agents unless such damage, loss or destruction has been
caused by the gross negligence of the BUYER and/or the BUYER’S

 

9

 

REPRESENTATIVE
or their respective assistant(s) while acting within the scope of their
employment.

 

6                                RESPONSIBILITY OF THE BUYER

 

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

 

The
BUILDER has the right to request the BUYER to replace any of the BUYER’S
REPRESENTATIVE and/or his assistants who are deemed unsuitable and
unsatisfactory for the proper progress of the VESSEL’S construction. The BUYER
shall investigate the situation by sending its representative(s) to the
SHIPYARD and if the BUYER considers that such BUILDER’S request is justified,
the BUYER shall effect the replacement as soon as conveniently arrangeable.

 

(End of Article)

 

10

 

ARTICLE V:     MODIFICATIONS, CHANGES AND
EXTRAS

 

1                                HOW EFFECTED

 

Modifications or
changes to the SPECIFICATIONS and the PLAN under which the VESSEL is to be
constructed may be made at any time hereafter by written agreement of the
parties hereto. For the avoidance of doubt modifications required as a result
of changes in Class Rules and Regulations shall be governed by Clause
3 of this Article. Any modification or change requested by the BUYER which does
not affect the frame-work of the SPECIFICATIONS shall be agreed to by the
BUILDER if the BUYER agrees to a reasonable adjustment of the CONTRACT PRICE,
deadweight and/or cubic capacity, speed requirements, the Delivery Date and
other terms and conditions of this CONTRACT reasonably required as a result of
such modification or change. The BUILDER has the right to continue construction
of the VESSEL on the basis of the SPECIFICATIONS and the PLAN until the BUYER
has agreed to such adjustments. The BUILDER shall be entitled to refuse to make
any alteration, change or modification of the SPECIFICATIONS and/or the PLAN
requested by the BUYER, if the BUYER does not agree to the aforesaid
adjustments within seven (7) days of the BUILDER’S notification of the
same to the BUYER, or, if, in the BUILDER’S reasonable judgment, the compliance
with such request of the BUYER would cause an unreasonable disruption of the
normal working schedule of the SHIPYARD.

 

The BUILDER,
however, agrees to exert reasonable efforts to accommodate such reasonable
request by the BUYER so that the said change and modification shall be made at
a reasonable cost and within the shortest period of time reasonably possible.
The aforementioned agreement to modify and change the SPECIFICATIONS and the
PLAN may be effected by exchange of letters or facsimiles manifesting the
agreement.

 

The letters and
facsimiles exchanged by the parties pursuant to the foregoing shall constitute
an amendment to this CONTRACT and the SPECIFICATIONS or the PLAN under which
the VESSEL shall be built. Upon consummation of such an agreement to modify and
change the SPECIFICATIONS or the PLAN, the BUILDER shall alter the construction
of the VESSEL in accordance therewith including any addition to, or deduction
from, the work to be performed in connection with such construction.

 

2                                SUBSTITUTION OF MATERIAL

 

If,
notwithstanding reasonable efforts on the part of the BUILDER, any materials,
machinery or equipment required for the construction of the VESSEL by the
SPECIFICATIONS and the PLAN or otherwise under this CONTRACT cannot be procured
in time to meet the BUILDER’S construction schedule for the VESSEL or are in
short supply (although ordered in due time by the BUILDER) or are unreasonably
high in price compared with the prevailing international market price, the
BUILDER may supply, at no cost to the BUYER and subject to the BUYER’S prior
approval, other materials, machinery or equipment of equal quality and effect
capable of meeting the requirements of the CLASSIFICATION SOCIETY and the
rules, regulations and requirements with which the construction of the VESSEL
must comply.

 

3                                CHANGES IN RULES AND
REGULATIONS

 

If the specified rules and
regulations with which the construction of the VESSEL is required to comply are
altered or changed by the CLASSIFICATION SOCIETY or bodies authorised to make
such alterations or changes, either the BUYER or the BUILDER, upon receipt of
due notice thereof, shall forthwith give notice thereof to the other party in
writing. Thereupon, within twenty (20) days after giving the notice to the
BUILDER or receiving the notice from the BUILDER, the BUYER shall advise the
BUILDER as to the alterations and changes, if any, to be made on the VESSEL
which the BUYER, in its sole discretion, shall decide. The BUILDER shall not be
obliged to comply with such alterations and/or changes if the BUYER fails to
notify the BUILDER of its decision within the time limit stated above.

 

The BUILDER shall
comply promptly with the said request of the BUYER, provided that the BUILDER
and the BUYER shall first agree to:

 

(a)          any
increase or decrease in the CONTRACT PRICE of the VESSEL that is occasioned by
such compliance;

 

11

 

(b)         any
extension or advancement in the Delivery Date of the VESSEL that is occasioned
by such compliance;

 

(c)          any
increase or decrease in the deadweight and/or cubic capacity of the VESSEL, if
such compliance results in any increase or reduction in the deadweight and/or
cubic capacity;

 

(d)         adjustment
of the speed requirements if such compliance results in any increase or
reduction in the speed; and

 

(e)          any
other alterations in the terms of this CONTRACT or of the SPECIFICATIONS or the
PLAN or both, if such compliance makes such alterations of the terms necessary.

 

Any delay in the
construction of the VESSEL caused by the BUYER’S delay in making a decision as
to the alterations and changes to be made to the SPECIFICATIONS or the PLAN as
above shall constitute a permissible delay under this CONTRACT. The BUILDER,
agrees to exert reasonable efforts to accommodate such request by the BUYER so
that the said change and modification shall be made at a reasonable cost and
within the shortest period of time reasonably possible. Such agreement by the
BUYER shall be effected in the same manner as provided above for the
modification and change of the SPECIFICATIONS and the PLAN.

 

(End of Article)

 

12

 

ARTICLE VI:     TRIALS AND COMPLETION 

 

4                                NOTICE

 

The BUILDER shall
notify the BUYER in writing or by facsimile at least fourteen (14) days in
advance of the time and place of the trial run of the VESSEL. Such notice shall
specify the place from which the VESSEL will commence her trial run and the
approximate date upon which the trial run is expected to take place. Such date
shall be further confirmed by the BUILDER five (5) days in advance of the
trial run in writing or by facsimile.

 

The BUYER’S
REPRESENTATIVE, who is to witness the performance of the VESSEL during such
trial run, shall be present at such place on the date specified in such notice.
Should the BUYER’S REPRESENTATIVE fail to be present after the BUILDER’S due notice
to the BUYER as provided above, the BUILDER shall be entitled to conduct such
trial run with the presence of the representative(s) of the CLASSIFICATION
SOCIETY only without the BUYER’S REPRESENTATIVE being present. In such case the
BUYER shall be obliged to accept the VESSEL on the basis of a certificate
issued and signed by the BUILDER and the CLASSIFICATION SOCIETY that the
VESSEL, after the trial run, subject to alterations and corrections, if
necessary, has been found to conform with the SPECIFICATIONS and this CONTRACT
and is satisfactory in all respects, provided the BUILDER first makes such
corrections and alterations promptly.

 

5                                WEATHER CONDITIONS

 

In the event of
unfavourable weather (as provided in the SPECIFICATIONS) on the date specified
for the trial run, the trial run shall take place on the first available day
that weather conditions permit. The parties hereto recognise that the weather
conditions in Korean 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, the weather should
become so unfavourable that the trial run cannot be continued, then the trial
run shall be discontinued and postponed until the first favourable day next
following, unless the BUYER shall assent to the acceptance of the VESSEL by
notification in writing on the basis of such trial run so far made prior to
such change in weather conditions. Any delay of the trial run caused by such unfavourable
weather conditions shall also operate to extend the Delivery Date of the VESSEL
for the period of delay occasioned by such unfavourable weather conditions.

 

6                                HOW CONDUCTED

 

All expenses in
connection with the trials of the VESSEL are to be for the account of the
BUILDER, which, during the trials, is to provide at its own expense the
necessary crew to comply with conditions of safe navigation. The trials shall
be conducted in the manner prescribed in this CONTRACT and the SPECIFICATIONS,
and shall prove fulfillment of the performance requirements for the trials as
set forth in the SPECIFICATIONS.

 

The BUILDER shall
be entitled to conduct preliminary sea trials, during which the propulsion
plant and/or its appurtenance shall be adjusted according to the BUILDER’S
judgement. The BUILDER shall have the right to repeat any trial whatsoever as
it deems necessary.

 

7                                CONSUMABLE STORES

 

The BUILDER shall
load the VESSEL with the required quantity of fuel oil, lubricating oil and
greases, fresh water and other stores necessary to conduct the trials as set
forth in the SPECIFICATIONS. The necessary ballast (fuel oil, fresh water and
such other ballast as may be required) to bring the VESSEL to the trial load
draft, as specified in the SPECIFICATIONS, shall be supplied and paid for by
the BUILDER whilst lubricating oil and greases shall be supplied and paid for
by the BUYER within the time advised by the BUILDER for the conduct of sea
trials as well as for use before the delivery of the VESSEL to the BUYER. The
fuel oil as well as lubricating oil and greases shall be in accordance with the
engine specifications and the BUYER shall decide and advise the BUILDER of the
supplier’s name for lubricating oil and greases before the work commencement of
the VESSEL, provided that the supplier shall be acceptable to the BUILDER
and/or the makers of all the relevant machineries.

 

Any fuel oil,
fresh water or other consumable stores furnished and paid for by the BUILDER
for trial runs remaining on board the VESSEL at the time of acceptance of the
VESSEL by the BUYER shall be bought by the BUYER from the BUILDER at the
BUILDER’S net purchase price for such supply in Korea and payment by the BUYER
thereof shall be made at the time of delivery of the VESSEL. The BUILDER shall
pay the BUYER at the time of delivery of the VESSEL for the consumed quantity
of

 

13

 

any
lubricating oil and greases which were furnished and paid for by the BUYER at
the BUYER’S net purchase price thereof. The consumed quantity of lubricating
oils and greases shall be calculated on the basis of the difference between the
remaining amount, including the same remaining in the main engine, other
machinery and their pipes, stern tube and the like, and the supplied amount.

 

8                               ACCEPTANCE OR REJECTION

 

(a)             If,
during any sea trial, any breakdown occurs entailing interruption or irregular
performance which can be repaired on board, the trial shall be continued after
such repairs and be valid in all respects.

 

(b)            However,
if during or after the trial run, it becomes apparent that the VESSEL or any
part of her equipment requires alterations or corrections which but for this
provision would or might entitle the BUYER to cancel this CONTRACT, the BUILDER
shall notify the BUYER promptly in writing or by facsimile to such effect and
shall simultaneously advise the BUYER of the estimated additional time required
for the necessary alterations or corrections to be made.

 

The
BUYER shall, within two (2) days of receipt from the BUILDER of notice of
completion of such alterations or corrections and after such further trials or
tests as necessary (such trials or tests may be attended by the BUYER’S
REPRESENTATIVE), notify the BUILDER in writing or by facsimile confirmed in
writing of its acceptance, qualified acceptance or rejection of the VESSEL, all
in accordance with the SPECIFICATIONS, the PLAN and this CONTRACT and shall not
be entitled to reject the VESSEL on such grounds until such time.

 

(c)             Save
as above provided, the BUYER shall, within three (3) days after completion
of the trial run and receipt of the official sea trials report, notify the
BUILDER in writing or by facsimile confirmed in writing of its acceptance of
the VESSEL or of the details in respect of which the VESSEL does not conform to
the SPECIFICATIONS or this CONTRACT.

 

If
the BUILDER is in agreement with the BUYER’S determinations as to
non-conformity, the BUILDER shall make such alterations or changes as may be
necessary to correct such non-conformity and shall prove the fulfillment of
this CONTRACT and the SPECIFICATIONS by such tests or trials as may be
necessary. Such tests may be attended by the BUYER’S REPRESENTATIVE.

 

The
BUYER shall, within two (2) days after completion of such tests and/or
trials, notify the BUILDER in writing or by facsimile confirmed in writing of
its acceptance or rejection of the VESSEL.

 

(d)            However,
the BUYER shall not be entitled to reject the VESSEL by reason of any minor or insubstantial
items as not being in conformity with the SPECIFICATIONS, but, in that case,
the BUILDER shall not be released from the obligation to correct and/or remedy
such minor or insubstantial items as soon as practicable after the delivery of
the VESSEL.

 

9                               EFFECT OF ACCEPTANCE

 

The
BUYER’S written or facsimiled notification of acceptance delivered to the
BUILDER as above provided shall be final and binding insofar as conformity of
the VESSEL with the SPECIFICATIONS is concerned in that it shall preclude the
BUYER from refusing formal delivery of the VESSEL as hereinafter provided, if
the BUILDER complies with all conditions of delivery as herein set forth and
provided that, in the case of qualified acceptance, any matters which were
mentioned in the notice of the qualified acceptance by the BUYER as requiring
correction have been corrected satisfactorily.

 

If
the BUYER fails to notify the BUILDER of its acceptance or rejection of the
VESSEL as hereinabove provided, the BUYER shall be deemed to have accepted the
VESSEL. Nothing contained in this Article shall preclude the BUILDER from
exercising any and all rights which the BUILDER has under this CONTRACT if the
BUILDER disagrees with the BUYER’S rejection of the VESSEL or any reasons given
for such rejection, including arbitration provided in Article XIII hereof.

 

(End of Article)

 

14

 

ARTICLE VII:     DELIVERY

 

1                               TIME AND PLACE

 

The
VESSEL shall be delivered by the BUILDER to the BUYER at the SHIPYARD, safely
afloat and, if possible, alongside or otherwise at a safe anchorage on or
before 20 September 2011 (hereinafter called the “DELIVERY DATE”) after completion of satisfactory trials and acceptance by the
BUYER in accordance with the terms of Article VI, except that, in the
event of delays in delivery of the VESSEL by the BUILDER due to causes which
under the terms of this CONTRACT permit extensions of the time for delivery of
the VESSEL the aforementioned DELIVERY DATE shall be extended accordingly.

 

2                               WHEN AND HOW EFFECTED

 

Provided
that the BUYER shall concurrently with the delivery of the VESSEL release to
the BUILDER the fourth instalment as set forth in Article X.2 hereof and
that the parties hereto shall have fulfilled all of their respective
obligations provided for in this CONTRACT (including delivery to the BUYER of
the documents specified in Paragraph 3 of this Article), delivery of the VESSEL
shall be forthwith effected upon acceptance thereof by the BUYER, as
hereinabove provided, by the concurrent delivery by each of the parties hereto
to the other of a PROTOCOL OF DELIVERY AND ACCEPTANCE acknowledging delivery of
the VESSEL by the BUILDER and acceptance thereof by the BUYER, which PROTOCOL
shall be prepared in duplicate and signed by each of the parties hereto.

 

3                               DOCUMENTS TO BE DELIVERED TO
THE BUYER

 

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

 

(a)             PROTOCOL
OF TRIALS of the VESSEL made pursuant to this CONTRACT and the SPECIFICATIONS,

 

(b)            PROTOCOL
OF INVENTORY of the equipment of the VESSEL, including spare parts, tools and
the like, all as specified in the SPECIFICATIONS,

 

(c)             PROTOCOL
OF STORES OF CONSUMABLE NATURE, such as all fuel oil and fresh water remaining
in tanks if its cost is charged to the BUYER under Article VI.4 hereof,

 

(d)            Two
sets of DRAWINGS and PLANS and instruction manuals pertaining to the VESSEL as
stipulated in the SPECIFICATIONS, which shall be furnished to the BUYER at no
additional cost and if any of the same has been stored on an electronic format
the same shall be also provided to the BUYER at no additional cost,

 

(e)             ALL
CERTIFICATES required to be furnished upon delivery of the VESSEL pursuant to
this CONTRACT, the SPECIFICATIONS and the customary shipbuilding practice,
including but without limitation to any of the foregoing:

 

(i)                                       Classification
Certificate

 

(ii)                                    Safety Construction
Certificate

 

(iii)                                 Safety Equipment
Certificate

 

(iv)                                  Safety
Radiotelegraphy Certificate

 

(v)                                 International
Loadline Certificate

 

(vi)                              International
Tonnage Certificate

 

(vii)                           Notarised and apostilled or,
as the case may be, legalised by the appropriate consul BUILDER’S Certificate

 

(viii)                        Ship Sanitation Control
Exemption Certificate

 

15

 

(ix)                                IOPP
Certificate

 

However,
it is agreed by the parties 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 formal certificates as promptly as
possible after such formal certificates have been issued.

 

(f)               DECLARATION
OF WARRANTY of the BUILDER that the VESSEL is delivered to the BUYER free and
clear of any liens, claims, charges, 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
prefecture or country of the port of delivery, as well as of all liabilities of
the BUILDER to its sub-contractors and employees and of all liabilities arising
from the construction of the VESSEL or the operation of the VESSEL in trial
runs, or otherwise, prior to delivery except as otherwise provided under this
CONTRACT.

 

(g)            Commercial
Invoice.

 

(h)            any
other document reasonably requested by the BUYER to be issued by the BUILDER
for registering the VESSEL at its port of registry.

 

4                               TENDER OF THE VESSEL

 

If
the BUYER fails to take delivery of the VESSEL after completion thereof
according to this CONTRACT and the SPECIFICATIONS, the BUILDER shall have the
right to tender delivery of the VESSEL after compliance with all procedural
requirements as provided above.

 

5                               TITLE AND RISK

 

Title
and risk shall pass to the BUYER upon delivery of the VESSEL being effected as
stated above and the BUILDER shall be free of all responsibility or liability
whatsoever related with this CONTRACT except for the warranty of quality
contained in Article IX and the obligations to correct and/or remedy, as
provided in Article VI.5.(d), if any, it being expressly understood that,
until such delivery is effected, the VESSEL and equipment thereof are at the
entire risk of the BUILDER including but not confined to, risks of war,
insurrection and seizure by Governments or Authorities, whether Korean or
foreign, and whether at war or at peace. The title to the BUYER’S SUPPLIES as
provided in Article XII shall remain with the BUYER until installed on the
VESSEL and the BUILDER’S responsibility for such BUYER’S SUPPLIES shall be as
described in Article XII.2.

 

6                               REMOVAL OF THE VESSEL

 

The
BUYER shall take possession of the VESSEL immediately upon delivery thereof and
shall remove the VESSEL from the SHIPYARD within four (4) days after
delivery and acceptance thereof is effected. Port dues and other charges levied
by the Korean Government Authorities after delivery of the VESSEL and any other
costs related to the removal of the VESSEL shall be borne by the BUYER.

 

(End of Article)

 

16

 

ARTICLE VIII:     DELAYS AND EXTENSIONS OF
TIME (FORCE MAJEURE) 

 

1                               CAUSES OF DELAY

 

If,
at any time after signing this CONTRACT, either the construction or delivery of
the VESSEL or any performance required hereunder as a prerequisite to the
delivery thereof is delayed by any of the following events; namely war, acts of
state or government, blockade, revolution, insurrections, mobilization, civil
commotion, riots, strikes, sabotage, lockouts, Acts of God or the public enemy,
plague or other epidemics, quarantines, shortage or prolonged failure of
electric current supplied to the SHIPYARD by an external to the SHIPYARD
source, freight embargoes, or defects in major forgings or castings, or delays
or defects in the BUYER’S SUPPLIES as stipulated in Article XII, if any,
or shortage of substitute materials, machinery or equipment or inability to
obtain delivery or delays in delivery of materials, machinery or equipment,
provided that at the time of ordering the same could reasonably be expected by
the BUILDER to be delivered in time, or defects in materials, machinery or
equipment which could not have been detected by the BUILDER using reasonable
care, or earthquakes, tidal waves, typhoons, hurricanes, prolonged or unusually
severe weather conditions or destruction of the premises or works of the
BUILDER or its sub-contractors, or of the VESSEL, or any part thereof, by fire,
landslides, flood, lightning, explosion, or delays in the BUILDER’S other
commitments resulting from any such causes as described in this Article which
in turn delay the construction of the VESSEL or the BUILDER’S performance under
the CONTRACT, or delays caused by the CLASSIFICATION SOCIETY or the BUYER’S
faulty action or omission, or other causes similar to the above, beyond the
control of the BUILDER, or its sub-contractors, as the case may be, or for any
other causes which under the terms of this CONTRACT, authorize and permit
extension of the time for delivery of the VESSEL provided that the event
causing the relevant delay could not have been reasonably foreseen and avoided
by the BUILDER; then, in the event of delays due to the happening of any of the
aforementioned contingencies, the DELIVERY DATE of the VESSEL under this
CONTRACT shall be extended for a period of time which shall not exceed the
total accumulated time of all such events actually delaying the delivery of the
VESSEL, provided further that no postponement shall be granted under this
CONTRACT if the event causing such delay has resulted from any negligence of
the BUILDER or if such event was in existence as of the date of this CONTRACT.

 

2                               NOTICE OF DELAYS

 

As
soon as practicably possible, but not later than twenty (20) days after
commencement of any delay on account of which the BUILDER claims that it is
entitled under this CONTRACT to an extension of the DELIVERY DATE of the VESSEL
(excluding delays due to arbitration), the BUILDER shall advise the BUYER in
writing or by facsimile of the date such delay commenced, the reasons thereof,
the steps taken to mitigate the same and, if possible, the estimated duration
of the probable delay in the delivery of the VESSEL, and shall supply the BUYER
if reasonably available with evidence to justify the delay claimed. Within one (1) week
after such delay ends, the BUILDER shall likewise advise the BUYER in writing
or by facsimile of the date that such delay ended, and also, shall specify the
period of time by which the BUILDER claims the DELIVERY DATE should be extended
by reason of such delay. Failure of the BUYER to object to the BUILDER’S
notification of any claim for extension of the date for delivery of the VESSEL
within ten (10) days after receipt by the BUYER of such notification shall
be deemed to be a waiver by the BUYER of his right to object of such extension.

 

Failure
of the BUILDER to give any of the above-said notices in time shall be deemed to
be a waiver of the BUILDER’S right to claim for a postponement of the DELIVERY
DATE.

 

3                               RIGHT TO CANCEL FOR EXCESSIVE
DELAY

 

If
the total accumulated time of all permissible and non-permissible delays,
excluding delays due to (i) arbitration under Article XIII; (ii) the
BUYER’S defaults under Article XI; (iii) modifications and changes
under Article V or (iv) delays or defects in the BUYER’S SUPPLIES as
stipulated in Article XII, aggregates two hundred and seventy (270) days
or more, then, the BUYER may, at any time thereafter, cancel this CONTRACT by
giving a written notice of cancellation to the BUILDER. Such cancellation shall
be effective as of the date the notice thereof is received by the BUILDER.

 

If
the BUYER has not served the notice of cancellation as provided in the above or
Article 111.1 hereof, the BUILDER may, at any time after expiration of the
accumulated time of the delay in delivery, either two hundred and seventy (270)
days in case of the delay in this Paragraph or two hundred and ten (210) days
in case of the delay in Article III.1, notify the BUYER of the future date
upon which the BUILDER estimates the VESSEL will be ready for delivery and
demand in writing or by facsimile that the BUYER make an election either to
cancel this CONTRACT or to consent to the delivery of the

 

17

 

VESSEL
at such future date (or other date which the parties hereto may agree), in
which case the BUYER shall, within seven (7) days after receipt of such
demand, make and notify the BUILDER of such election. If the BUYER elects to
consent to the delivery of the VESSEL at such future date (or other future date
as the parties may agree):

 

(a)             Such
future date shall become the contractual delivery date for the purposes of this
CONTRACT; and

 

(b)            If
the VESSEL is not delivered by such revised contractual delivery date the BUYER
shall have the right, in his discretion, to either cancel this CONTRACT
forthwith or to cancel this CONTRACT on the same terms as provided in Article III.1
or this Paragraph.

 

If
the BUYER shall not make an election within ten (10) days as provided
hereinabove, the BUYER shall be deemed to have accepted such extension of the
DELIVERY DATE to the future delivery date indicated by the BUILDER. For the
avoidance of doubt, in the event the BUYER elects, or its deemed to have
elected, not to rescind this CONTRACT, the BUYER shall remain entitled to
receive payment of any liquidated damages that have, or may in the future,
become payable pursuant to the provisions of Article III hereof.

 

4                               DEFINITION OF PERMISSIBLE
DELAYS

 

Delays
on account of the foregoing causes shall be understood to be permissible delays
and are to be distinguished from non-permissible unauthorised delays on account
of which the CONTRACT PRICE of the VESSEL is subject to adjustment as provided
in Article III hereof.

 

(End of Article)

 

18

 

ARTICLE IX:     WARRANTY OF QUALITY 

 

1                               GUARANTEE OF MATERIAL AND
WORKMANSHIP

 

The
BUILDER, for the period of twelve (12) months from the date of delivery and
acceptance of the VESSEL by the BUYER, guarantees the VESSEL and all parts and
equipment thereof that are manufactured, supplied or furnished by the BUILDER
under this CONTRACT against all defects which are directly due to defective
materials, defective design, construction miscalculation and/or poor
workmanship, provided such defects have not been caused after delivery and
acceptance of the VESSEL by perils of the sea, rivers or navigation, or by
normal wear and tear, overloading, improper loading or stowage, corrosion of
the materials, fire, accidents at sea or elsewhere, or by incompetence, mismanagement,
negligence or willful neglect or by alteration or addition by the BUYER not
previously approved by the BUILDER unless such event was caused by an act or
omission of the BUILDER.

 

The
BUILDER will be responsible for all machinery or parts of machinery and all
constructions which are supplied by sub-contractors and will guarantee the
above mentioned for a period of twelve (12) months on the basis as laid down in
this Paragraph.

 

The
BUILDER guarantees repairs and/or replacements to the VESSEL made under this
guarantee for a further period of twelve (12) months from the date of such
repair or replacement provided that the maximum period of guarantee shall not
exceed eighteen (18) months in total from the date of delivery and acceptance
of the VESSEL by the BUYER.

 

The
BUILDER agrees that upon the expiry of this guarantee it shall assign (to the
extent to which it may validly do so) to the BUYER, all rights, title and
interest that the BUILDER may have in and to all guarantees or warranties given
by the supplier of any of the appurtenances and materials used in the
construction and/or operation of the VESSEL. The BUILDER agrees to render to
the BUYER all reasonable assistance in making any claim or taking any action
against any such supplier, which claim or action shall be made and/or taken at
the BUYER’S sole expense. The BUYER shall meet all reasonable expenses incurred
by the BUILDER in rendering any assistance requested by the BUYER pursuant to
this Paragraph.

 

2                               NOTICE OF DEFECTS

 

The
BUYER or its duly authorised representative will notify the BUILDER in writing
or by facsimile promptly after discovery of any defect for which a claim is to
be made under this guarantee.

 

The
BUYER’S written notice shall include full particulars as to the nature of the
defect the extent of the damage caused thereby, but excluding consequential
damage as hereinafter provided. The BUILDER will be under no obligation with
respect to this guarantee in respect of any claim for defects discovered prior
to the expiry date of the guarantee, unless notice of such defects is received
by the BUILDER before the expiry date. However, facsimile advice received by
the BUILDER within five (5) days after such expiry date that a claim is
forthcoming will be sufficient compliance with the requirement as to time,
provided that such facsimile advice shall include at least a brief description
of the defect including the identity of the equipment, extent of damage, name
and number of any replacement part and description of any remedial work required,
and that full particulars are given to the BUILDER not later than ten (10) days
after the expiry date.

 

3                               REMEDY OF DEFECTS

 

(a)             The
BUILDER shall remedy, at its expense, any defects against which the VESSEL is guaranteed
under this Article by making all necessary and reasonably practicable
repairs and/or replacements at the SHIPYARD or elsewhere as provided for in (b) hereinbelow.

 

In such case, the
VESSEL shall be taken at the BUYER’S cost and responsibility to the place
selected, ready in all respects for such repairs and/or replacements and, in
any event, the BUILDER shall not be responsible for towage, dockage, wharfage,
port charges and anything else incurred by the BUYER for getting and keeping
the VESSEL ready for such repairing or replacing.

 

(b)            However,
if it is impractical (which shall include, but not be limited to, an emergency)
to bring the VESSEL to the SHIPYARD, the BUYER may cause the necessary repairs
and/or replacements to be made elsewhere which is deemed by the BUYER with the
consent of the BUILDER, which shall not be unreasonably withheld or unduly
delayed, to be suitable for the purpose, provided that, in such event, the
BUILDER may forward or supply replacement parts or materials under the terms
described in (c) hereinbelow, unless forwarding or supplying

 

19

 

thereof under the
terms described in (c) hereinbelow would impair or delay the operation or
working schedule of the VESSEL. In the event that the BUYER proposes to cause
the necessary repairs and/or replacements to be made to the VESSEL at any
shipyard or works other than the SHIPYARD, the BUYER shall first (but in all
events as soon as reasonably possible) give the BUILDER notice in writing or by
facsimile of the time and place such repairs will be made and, if the VESSEL is
not thereby delayed or her operation or working schedule is not thereby
impaired, the BUILDER shall have the right to verify by its own representative(s) and
at its own expense the nature and extent of the defects complained of. The
BUILDER shall, in such case, promptly advise the BUYER by facsimile, after such
examination has been completed, of its acceptance or rejection of the defects
as ones that are covered by the guarantee herein provided. Upon the BUILDER’S
acceptance of the defects as justifying remedy under this Article or upon
award of the arbitration so determining, the BUILDER shall pay to the BUYER,
within fifteen (15) business days of receipt of the invoice for the works
either the invoiced amount or if the BUILDER in good faith sends to the BUYER
within ten (10) business days a lower quotation for the same work by a
shipyard in the same general region, the BUILDER shall pay to the BUYER the
average of the BUILDER’S quotation and the invoiced amount.

 

(c)             In
the event that it is necessary for the BUILDER to forward a replacement for a
defective part under this guarantee, replacement parts shall be shipped to the
BUYER under the terms of CIF for delivery at the port of call of the VESSEL as
designated in writing by the BUYER.

 

(d)            The
BUILDER reserves the option to retrieve, at the BUILDER’S cost, any of the
replaced equipment/parts in case defects are remedied in accordance with the
provisions in this Article.

 

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

 

4                               EXTENT OF THE BUILDER’S
LIABILITY

 

(a)             Except
as provided in this CONTRACT, the BUILDER shall have no liability or
responsibility whatsoever or howsoever arising for or in connection with any
consequential or special losses, damages or expenses (including but not limited
to loss of time, loss of profit or earnings or demurrage directly or indirectly
caused), any pecuniary loss or expense, any liability to any third party or any
fine, compensation, penalty or other payment or sanction incurred by or imposed
upon the BUYER or any other party whatsoever in relation to or in connection
with this CONTRACT or the VESSEL.

 

(b)            The
BUILDER shall be under no obligation under this guarantee with respect to
defects in respect of which the BUILDER has not received notice in accordance
with Paragraph 2 of this Article by the expiry date of the guarantee
specified in Paragraph 1, nor in any event shall the BUILDER be liable for any
worsening of defects after the expiry date of the guarantee (unless
notification for such defects has been given in time).

 

(c)             The
BUILDER shall under no circumstances be liable for defects in the VESSEL or any
part of equipment thereof caused after delivery and acceptance of the VESSEL by
perils of the sea, rivers or navigation, or normal wear and tear, overloading,
improper loading or stowage, corrosion of the materials or fire or accidents at
sea or elsewhere or by mismanagement, accident, negligence, willful neglect, or
any alteration or addition on the part of the BUYER, its employees or agents or
any other person on or doing work on the VESSEL, including the VESSEL’S
officers, crew and passengers. Likewise, the BUILDER shall not be liable for
defects in the VESSEL or any part of equipment thereof that are due to repairs
carried out by any other than the BUILDER or which have not been carried out in
accordance with the procedure set out in Paragraph 3(b) of this Article.

 

(d)            The
BUILDER shall not be obliged to repair, nor be liable for, damage to the VESSEL
or any part of the equipment thereof, which after delivery and acceptance of
the VESSEL is caused other than by the defects of the nature specified above.
The guarantees contained as hereinabove in this Article replace and
exclude any other liability, guarantee, warranty and/or condition imposed or
implied by statute, common law, custom, contract (including this CONTRACT) or
otherwise on the part of the BUILDER by reason of the construction and sale of
the VESSEL for and to the BUYER.

 

20

 

5                               ASSIGNMENT OF RIGHTS

 

The
BUYER shall be entitled on or after delivery and acceptance of the VESSEL to
assign its rights under ARTICLE IX to any purchaser or bareboat charterer or
financier of the VESSEL with the prior written consent of the BUILDER which may
not be unreasonably withheld. Notice of any such assignment shall be given by
the BUYER to the BUILDER.

 

(End of Article)

 

21

 

ARTICLE X:     PAYMENT

 

1                               CURRENCY

 

All
payments under this CONTRACT shall be made in United States Dollars.

 

For
the purposes of this CONTRACT, in counting the business days, only Saturdays
and Sundays are excepted. When a due date falls on a day when banks are not
open for business in New York, NY, U.S.A., Seoul, Korea and Piraeus, Greece,
such due date shall fall due upon the first business day next following.

 

2                               TERMS OF PAYMENT

 

The
payments of the CONTRACT PRICE shall be made as follows:

 

(a)             First
Instalment

 

U.S. Dollars
Eighteen Million Four Hundred and Forty Thousand (US$18,440,000) shall be paid
within three (3) business days after the later of (i) execution of
this CONTRACT by both parties hereto and (ii) receipt by the BUYER of the
original of the Refund Guarantee specified in Paragraph 8 of this Article and
(iii) 17 June 2008.

 

(b)            Second
Instalment

 

U.S. Dollars Nine
Million Two Hundred and Twenty Thousand (US$9,220,000) shall be paid on or
before 26 November 2008.

 

(c)             Third
Instalment

 

U.S. Dollars
Eighteen Million Four Hundred and Forty Thousand (US$18,440,000) shall be paid
within three (3) business days of (i) receipt by the BUYER of a faxed
copy of Stage Certificate in the form of EXHIBIT “A” attached hereto confirming
that the first block of the keel has been laid in accordance with the
SPECIFICATIONS.

 

(d)            Fourth
Instalment

 

U.S Dollars Forty
Six Million One Hundred Thousand (US$46,100,000) plus or minus any increase or
decrease due to modifications and/or adjustment, if any, arising prior to
delivery of the VESSEL of the CONTRACT PRICE under Articles III and V of this
CONTRACT shall be paid to the BUILDER concurrently with the delivery and
acceptance of the VESSEL. (The date stipulated for payment of each of the
fourth instalments mentioned above is hereinafter in this Article and in Article XI
referred to as the “DUE DATE” of
that instalment).

 

Provided
however that none of the above instalments shall be payable if the Refund
Guarantee referred to in Article X.8 hereof ceases to be in force and no
substitute Refund Guarantee has been provided in accordance with the provisions
of this Contract. It is understood and agreed upon by the BUILDER and the BUYER
that all payments under the provisions of this Article shall not be delayed
or withheld by the BUYER due to any dispute or disagreement of whatsoever
nature arising between the BUILDER and the BUYER. Should there be any dispute
in this connection, the matter shall be dealt with in accordance with the
provisions of arbitration in Article XIII hereof. Expenses for remitting
payments whether charged by the BUYER’S bank or the BUILDER’S bank shall be for
the account of the BUYER.

 

3                               DEMAND FOR PAYMENT

 

At
least fourteen (14) days prior to the DUE DATE of each instalment, with the exception
of the payment of the first and second instalments, the BUILDER shall notify
the BUYER by facsimile of the date such instalment shall become due.

 

The
BUYER shall immediately acknowledge receipt of such notification by facsimile
to the BUILDER and make payment as set forth in this Article. If the BUILDER
fails to receive the BUYER’S said acknowledgement within three (3) days
after sending the aforementioned notification, the BUILDER

 

22

 

SUPPLIES
as stipulated in Article XII which were not incorporated into the VESSEL
and pay to the BUYER an amount equal to the cost to the BUYER of those supplies
incorporated in the VESSEL.

 

6                                TOTAL LOSS

 

If
there is a total loss or a constructive total loss of the VESSEL prior to
delivery and acceptance thereof, the BUILDER shall proceed according to the
mutual agreement of the parties hereto either:

 

(a)             to
build another vessel in place of the VESSEL so lost and deliver it under this
CONTRACT to the BUYER, provided that the parties hereto shall have agreed in
writing to a reasonable cost and time for the construction of such vessel in
place of the lost VESSEL; or

 

(b)            to
refund to the BUYER the full amount of the total sums paid by the BUYER to the
BUILDER under the provisions of Paragraph 2 of this Article together with
interest thereon at the rate of four per cent (4%) per annum from the date
following the date of receipt by the BUILDER of such pre-delivery instalment (s) to
the date of payment by the BUILDER to the BUYER of the refund.

 

If
the parties hereto fail to reach such agreement within two (2) months
after the VESSEL is determined to be a total loss or constructive total loss,
the provisions of paragraph (b) hereinabove shall be applied.

 

7                                DISCHARGE OF OBLIGATIONS

 

Such
refund as provided in the foregoing Clauses 5 and 6 by the BUILDER to the BUYER
shall forthwith discharge all the obligations, duties and liabilities of each
of the parties hereto to the other. Any and all refunds or payments due to the
BUYER under this CONTRACT shall be effected by telegraphic transfer to the
account specified by the BUYER.

 

8                                REFUND GUARANTEE

 

The
BUILDER shall, prior to the receipt by the BUILDER of the first instalment,
deliver to the BUYER at the address provided in Article XVIII hereof, an
irrevocable and assignable letter of guarantee issued by The Export-Import Bank
of Korea, Seoul, Korea for the refund of the pre-delivery instalments plus
interest as aforesaid to the BUYER under or pursuant to Paragraph 5 above in
the form annexed hereto as Exhibit “B” (the “REFUND GUARANTEE”).

 

All
expenses in issuing and maintaining the Refund Guarantee described in this
Paragraph shall be borne by the BUILDER.

 

9                                PERFORMANCE GUARANTEE

 

Upon
signing this CONTRACT, the BUYER shall provide the BUILDER with an irrevocable
and unconditional Corporate Guarantee issued by a Corporate Guarantor
acceptable to the BUILDER for the due and faithful performance by the BUYER of
all its liabilities and responsibilities under the CONTRACT including, but not
limited to, the payment of the CONTRACT PRICE and taking delivery of the
VESSEL, in the form annexed hereto as Exhibit “C”.

 

(End of Article)

 

24

 

ARTICLE XI:     BUYER’S DEFAULT

 

1                                DEFINITION OF DEFAULT

 

The
BUYER shall be deemed to be in default under this CONTRACT in the following
cases:

 

(a)              If
the first, second or third instalment is not paid to the BUILDER within the
respective DUE DATE of each such instalment; or

 

(c)              If
the fourth instalment is not confirmed in accordance with Article X.4(a)(ii) hereof
or if the fourth instalment is not paid to the BUILDER against presentation by
the BUILDER of a duplicate original copy of the PROTOCOL OF DELIVERY AND
ACCEPTANCE duly executed by both parties hereto; or

 

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

 

(d)             If
an order or an effective resolution shall be passed for winding up of the BUYER
(except for the purpose of reorganization, merger or amalgamation); or

 

For
the purpose of this Article, the BUYER shall not be in default if such failure
is due to banking system disruption, in which case the BUYER shall pay to the
BUILDER the interest at the rate of six percent (6%) per annum.

 

In
case the BUYER is in default of any of its obligations under this CONTRACT, the
BUILDER is entitled to and shall have the following rights, powers and remedies
in addition to such other rights, powers and remedies as the BUILDER may have
elsewhere in this CONTRACT and/or at law, at equity or otherwise.

 

2                                EFFECT OF THE BUYER’S
DEFAULT ON OR BEFORE THE DELIVERY OF THE VESSEL

 

If
the BUYER shall be in default as provided in Paragraph 1 above of its
obligations under this CONTRACT, then:

 

(a)             The
DELIVERY DATE of the VESSEL shall be extended automatically for the actual
period of such default and the BUILDER shall not be obliged to pay any
liquidated damages for the delay in delivery of the VESSEL caused thereby.

 

(b)            The
BUYER shall pay to the BUILDER interest at the rate of six percent (6%) per
annum in respect of the instalment(s) in default from the respective DUE DATE
to the date of actual receipt by the BUILDER of the full amount of such
instalment(s).

 

(c)             If
the BUYER is in default in payment of any of the instalment(s) due and
payable prior to or simultaneously with the delivery of the VESSEL, the BUILDER
shall, in writing or by facsimile, notify the BUYER to that effect, and the
BUYER shall, upon receipt of such notification, forthwith acknowledge in
writing or by facsimile to the BUILDER that such notification has been
received.

 

(d)            If
any of the BUYER’S default continues for a period of seven (7) business
days after the BUILDER’S notification to the BUYER of such default, the BUILDER
may, at its option, rescind this CONTRACT by serving upon the BUYER a written
notice or facsimile notice of rescission confirmed in writing.

 

(e)             In
the event of such cancellation by the BUILDER of this CONTRACT due to the BUYER’S
default provided for in Paragraph 1 above, the BUILDER shall be entitled to
retain and apply the instalments already paid by the BUYER to the recovery of
the BUILDER’S loss and damage including, but not being limited to, reasonable
estimated profit due to the BUYER’S default and the cancellation of this
CONTRACT and at the same time the BUILDER shall have the full right and power
either to complete or not to complete the VESSEL which is the sole property of
the BUILDER as it deems fit, and thereafter to sell in a complete or, as the
case

 

25

 

may
be, incomplete state the VESSEL at a public or private sale on such terms and
conditions as the BUILDER thinks fit without being answerable for any loss or
damage.

 

The
proceeds received by the BUILDER from the sale shall be applied in addition to
the instalment(s) retained by the BUILDER as mentioned hereinabove as
follows:

 

FIRST,
in payment of all reasonable costs and expenses of the sale of the VESSEL,
including interest thereon at four percent (4%) per annum from the respective
date of payment of such costs and expenses aforesaid to the date of sale on
account of the BUYER’S default.

 

SECOND,
if the VESSEL has been completed, in or towards satisfaction of the unpaid
balance of the CONTRACT PRICE, to which shall be added the cost of all
additional work and extras agreed by the BUYER including interest thereon at
six percent (6%) per annum from the respective DUE DATE of the instalment in
default to the date of sale, or if the VESSEL has not been completed, in or
towards satisfaction of the unpaid amount of the cost incurred by the BUILDER
prior to the date of sale on account of construction of the VESSEL including
work, labour, materials and reasonably estimated profit which the BUILDER would
have been entitled to receive if the VESSEL had been completed and delivered
plus interest thereon at six percent (6%) per annum from the respective DUE
DATE of the instalment in default to the date of sale.

 

THIRD,
the balance of the proceeds, if any, shall belong to the BUYER, and shall
forthwith be paid over to the BUYER by the BUILDER.

 

In
the event of the proceeds from the sale together with instalment(s) retained
by the BUILDER are insufficient to pay the BUILDER, the BUYER shall be liable
for the deficiency and shall pay the same to the BUILDER upon its demand.

 

(End of Article)

 

26

 

ARTICLE XII:     BUYER’S SUPPLIES

 

1                               RESPONSIBILITY OF THE BUYER

 

The BUYER shall, at its cost and expense, supply all
the BUYER’S supplies as specified in the SPECIFICATIONS (hereinafter called the
“BUYER’S SUPPLIES”), to the BUILDER at the SHIPYARD in perfect condition ready
for the installation and in accordance with the time schedule to be furnished
by the BUILDER to meet the building schedule of the VESSEL.

 

In order to facilitate the installation of the
BUYER’S SUPPLIES by the BUILDER, the BUYER shall furnish the BUILDER with the
necessary plans, instruction books, test report and all test certificates
required by the BUILDER and shall use reasonable endeavours to cause the
representative(s) of the makers of the BUYER’S SUPPLIES to give the
BUILDER any advice, instructions or assistance which the BUILDER may reasonably
require in the installation or adjustment thereof at the SHIPYARD, all without
cost or expense to the BUILDER.

 

The BUYER shall be liable for any expense incurred by
the BUILDER for repair of the BUYER’S SUPPLIES due to defective design or
materials, poor workmanship or performance or due to damage in transit and the
DELIVERY DATE of the VESSEL shall be extended for the period of such repair if
such repair shall affect the delivery of the VESSEL.

 

Commissioning into good order of the BUYER’S SUPPLIES
during and after installation on board shall be made at the BUYER’S expenses by
the representative of the respective maker or the person designated by the
BUYER in accordance with the BUILDER’S building schedule.

 

Should the BUYER fail to deliver to the BUILDER the
BUYER’S SUPPLIES and the necessary document or advice for such supplies within
the time specified by the BUILDER, the DELIVERY DATE of the VESSEL shall
automatically be extended for the period of such delay if such delay in
delivery shall affect the delivery of the VESSEL. In such event, the BUYER
shall pay to the BUILDER all losses and damages sustained by the BUILDER due to
such delay in the delivery of the BUYER’S SUPPLIES and such payment shall be
made upon delivery of the VESSEL provided, however, that the BUILDER shall
have:

 

(a)             furnished the BUYER with the time schedule
referred to above, two (2) months prior to installation of the BUYER’S
SUPPLIES, and

 

(b)            given the BUYER written notice of any delay in
delivery of the BUYER’S SUPPLIES and the necessary document or advice for such
supplies as soon as the delay occurs which might give rise to an extension of
the DELIVERY DATE under this Paragraph.

 

Furthermore, if the delay in delivery of the BUYER’S
SUPPLIES and the necessary document or advice for such supplies should exceed
ten (10) days from the date specified by the BUILDER, the BUILDER shall be
entitled to proceed with construction of the VESSEL without installation of
such items (regardless of their nature or importance to the BUYER or the
VESSEL) in or on the VESSEL without prejudice to the BUILDER’S right
hereinabove provided, and the BUYER shall accept the VESSEL so completed.

 

2                               RESPONSIBILITY OF THE
BUILDER

 

The BUILDER shall be responsible at its own expense
for storing, safekeeping and handling the BUYER’S SUPPLIES which the BUILDER is
required to install on board the VESSEL under the SPECIFICATIONS after delivery
of such supplies to the SHIPYARD and shall install such supplies on board the
VESSEL at the BUILDER’S expense unless otherwise specified in the SPECIFICATIONS.

 

However, the BUILDER shall not be responsible for the
quality, performance or efficiency of any equipment included in the BUYER’S
SUPPLIES and is under no obligation with respect to the guarantee of such
equipment against any defects caused by poor quality, performance or efficiency
of the BUYER’S SUPPLIES unless affected by the BUILDER’S breach of its
obligations under this Paragraph 2. If any of the BUYER’S SUPPLIES is lost or
damaged while in the custody of the BUILDER, the BUILDER shall be responsible
for such loss or damage.

 

(End of Article)

 

27

 

ARTICLE XIII:     ARBITRATION

 

1                               APPOINTMENT OF THE
ARBITRATOR

 

If
any dispute or difference shall arise between the parties hereto concerning any
matter herein contained, or the operation or construction thereof, or any
matter in any way connected with this CONTRACT or the rights, duties or
liabilities of either party under or in connection with this CONTRACT, then, in
every such case, either party may demand arbitration of any such dispute by
giving written to the other party. Any demand for arbitration by either of the
parties hereto shall state the name of the arbitrator appointed by such party
and shall also state specifically the question or questions as to which such
party is demanding arbitration. Within seven (7) 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. 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 seven (7) 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. 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 by the parties hereaforesaid should be unable to agree to
the third arbitrator within ten (10) days from the date on which the
second arbitrator is appointed, either party of the said two arbitrators may
apply to the President for the time being of the London Maritime Arbitrators’
Association to appoint the third arbitrator who shall in making any such
appointment have due regard to the requirement for an expeditious resolution of
the dispute and in particular the availability of any arbitrator so appointed
for any early hearing date.

 

2                               LAWS APPLICABLE

 

Any
arbitration arising hereunder shall be governed by and construed in accordance
with the Arbitration Act 1996 of England or any statutory modification or
re-enactments thereof for the time being in force.

 

The
award of the arbitrator or by the majority of the three arbitrators as the case
may be shall be final, conclusive and binding upon the parties hereto.

 

3                               PROCEEDINGS

 

In
the event of any dispute or difference arising or occurring prior to delivery
to, or acceptance by, the BUYER of the VESSEL being referred to arbitration,
the parties hereby acknowledge that time is of the essence in obtaining an
award from the Arbitration Board on such dispute or difference and the parties
hereby agree that the arbitration shall be conducted according to the following
timetable:

 

(a)             The
claimant in the arbitration to serve points of claim within fourteen (14) days
of the appointment of the Arbitration Board.

 

(b)            The
respondent in the arbitration to serve points of defence and points of
counterclaim, if any, within fourteen (14) days thereafter.

 

(c)             The
claimant to serve points of reply and defence to counterclaim, if any, within
seven (7) days thereafter and the hearing of the arbitration to commence
within twelve (12) weeks of the appointment of the Arbitration Board.

 

4                               ALTERATION OF DELIVERY OF
THE VESSEL

 

In
the event of the arbitration of any dispute or difference arising or occurring
prior to delivery to, or acceptance by the BUYER of, the VESSEL, the award by
the Arbitration Board shall include a finding as to whether or not the
contractual delivery date of the VESSEL should, as a result of such dispute, be
in any way altered thereby and/or whether a delay shall be classified as
permissible or non-permissible for the purposes of Articles III and/or VIII
hereof.

 

(End of Article)

 

28

 

ARTICLE XIV:     SUCCESSORS AND ASSIGNS

 

The
BUILDER agrees that, prior to delivery of the VESSEL, this CONTRACT may, with
the prior written approval of the BUILDER, (which shall not be unreasonably
withheld or unduly delayed), be transferred or assigned by the BUYER, and the
title thereto may be taken by another company provided however that such
consent will not be required in the case of the BUYER assigning its rights
under this CONTRACT to a bank or financial institution financing any of the
instalments payable hereunder and for which prior written notice is given to
the BUILDER. In the event of any assignment pursuant to the terms of the
CONTRACT, the assignee, its successors and assigns shall succeed to all the
rights and obligations of the BUYER under this CONTRACT. However, the BUYER
shall remain responsible for performance by the assignee, its successors and
assigns of all the BUYER’S obligations, liabilities and responsibilities under this
CONTRACT. It is understood that any expenses or charges incurred due to the
transfer of this CONTRACT shall be for the account of the BUYER.

 

The
BUILDER shall have the right to assign this CONTRACT at any time after the
effective date hereof, provided that prior written agreement is obtained from
the BUYER.

 

(End of Article)

 

29

 

 

ARTICLE XV:     TAXES AND
DUTIES

 

1                               TAXES:

 

Unless
otherwise expressly provided for in this CONTRACT, all costs and taxes
including stamp duties, if any, incurred in or levied by any country except
Korea in connection with this CONTRACT shall be borne by the BUYER and
corresponding costs and taxes in Korea, before delivery of the VESSEL, if any,
shall be borne by the BUILDER.

 

2                               DUTIES:

 

The BUILDER shall
hold the BUYER harmless from any payment of duty imposed in Korea upon
materials or supplies which, under the terms of this CONTRACT, or amendments
thereto, may be supplied by the BUYER from abroad for the construction of the
VESSEL.

 

The
BUILDER shall likewise hold the BUYER harmless from any payment of duty imposed
in Korea in connection with materials or supplies for operation of the VESSEL,
including running stores, provisions and supplies necessary to stock the VESSEL
for its operation. This indemnity does not, however, extend to any items
purchased by the BUYER for use in connection with the VESSEL which are not
absolutely required for the construction or operation of the VESSEL.

 

(End of Article)

 

30

 

ARTICLE XVI:     PATENTS, TRADEMARKS AND
COPYRIGHTS

 

1                                PATENTS, TRADEMARKS AND
COPYRIGHTS

 

Machinery
and equipment of the VESSEL, whether made or furnished by the BUILDER under
this CONTRACT, may bear the patent numbers, trademarks, or trade names of the
manufacturers. The BUILDER shall defend and save harmless the BUYER from all
liabilities or claims for or on account of the use of any patents, copyrights
or design of any nature or kind, or for the infringement thereof including any
unpatented invention made or used in the performance of this CONTRACT and also
for any costs and expenses of litigation, if any, in connection therewith. No
such liability or responsibility shall be with the BUILDER with regard to
components and/or equipment and/or design supplied by the BUYER.

 

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

 

2                                RIGHTS TO THE
SPECIFICATIONS, PLANS, ETC.

 

The
BUILDER retains all rights with respect to the SPECIFICATIONS, plans and
working drawings, technical descriptions, calculations, test results and other
data, information and documents concerning the design and construction of the
VESSEL and the BUYER undertakes therefore not to disclose the same or divulge
any information contained therein to any third parties, including but not
limited to any other shipbuilders without the prior written consent of the
BUILDER, excepting where it is necessary for usual operation, repair and
maintenance of the VESSEL or for the sale or financing thereof. In case the
BUYER is in breach of its obligations under this Article, the BUILDER shall be
entitled to any rights, powers and remedies in this CONTRACT and/or at law, at
equity or otherwise to recover any proven damages caused by the breach of the
BUYER.

 

(End of Article)

 

31

 

ARTICLE XVII:     INTERPRETATION
AND GOVERNING LAW

 

This CONTRACT has been prepared in English and shall
be executed in duplicate and in such number of additional copies as may be
required by either party respectively. The parties hereto irrevocably agree
that the validity and interpretation of this CONTRACT and of each Article and
part thereof shall be governed by, and be construed in accordance with, the
laws of England. No term of this CONTRACT is enforceable under the provisions
of the Contracts (Rights of Third Parties) Act 1999 by a person who is not a
party to this Agreement.

 

(End of Article)

 

32

 

ARTICLE XVIII:     NOTICE

 

Any and all notices, requests, demands, instructions, advice and
communications in connection with this CONTRACT shall be written in English.
Notices or other official communications pursuant to this CONTRACT shall be in
writing in English and shall be sent by registered air mail, by courier, or
facsimile and shall be deemed to be given when first received whether by
registered mail, by courier or facsimile. They shall be addressed as follows,
unless and until otherwise advised: -

 

	
  To
  the BUILDER:

  	
   

  	
  Hyundai
  Heavy Industries Co., Ltd.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  #1,
  Jeonha-Dong, Dong-Gu, Ulsan

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Korea

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Facsimile:
  +82 52 202-3448 / 202 3425

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attention:
  Mr Hyun Dal Hwang / G. M. Project Management Department

  
	
   

  	
   

  	
   

  
	
  To
  the BUYER:

  	
   

  	
  Suez
  Topaz Limited

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  c/o
  Quest Enterprises Maritime S.A.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Pandoras
  13 & Kuprou

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Glyfada,
  Athens

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Greece

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Facsimile:
  +30 210 894 4688

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attention:
  Mr Arcadis

  

 

The said notices shall become effective upon receipt of the letter or
facsimile communication by the receiver thereof. Where a notice by facsimile is
concerned which is required to be confirmed by letter, then, unless the
CONTRACT or the relevant Article thereof otherwise requires, the notice
shall become effective upon receipt of the facsimile.

 

(End of Article)

 

33

 

ARTICLE XIX:     INSURANCE

 

1                                EXTENT OF INSURANCE COVERAGE

 

From
the time of launching of the VESSEL until the same is completed, delivered to
and accepted by the BUYER, the BUILDER shall, at its own cost and expense, keep
the VESSEL and all machinery, materials, equipment, appurtenances and outfit
delivered to the SHIPYARD for the VESSEL or built into, or installed in or
upon, the VESSEL, including the BUYER’S SUPPLIES, fully insured with 1st class Korean insurance companies under
coverage corresponding to the Builder’s Risks Insurance Clause available in the
London Market.

 

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
all payments made by the BUYER to the BUILDER (including the value of the
BUYER’s SUPPLIES).

 

2                                APPLICATION OF RECOVERED
AMOUNT

 

(a)             Partial
Loss:

 

In the event the
VESSEL shall be damaged by any insured cause whatsoever prior to acceptance
thereof by the BUYER and in the further event that such damage shall not
constitute an actual or a constructive total loss of the VESSEL, the BUILDER
shall apply the amount recovered under the insurance policy referred to in
Paragraph 1 of this Article to the repair of such damage satisfactory to
the CLASSIFICATION SOCIETY, and the BUYER shall accept the VESSEL under this
CONTRACT if completed in accordance with this CONTRACT and SPECIFICATIONS.

 

(b)            Total
Loss:

 

In the event that
the VESSEL is determined to be an actual or constructive total loss, then the
provisions of Article X.6 shall apply.

 

(End of Article)

 

34

 

ARTICLE XX:     BUILDER’S
DEFAULT

 

The
BUYER shall be entitled to terminate this CONTRACT forthwith by the giving of
notice to the BUILDER by letter, telex or tele-facsimile should any of the
following events occur:

 

(a)            failure
to maintain the Refund Guarantee in accordance with the terms of this CONTRACT
and in particular Article X hereof; or

 

(b)           the filing
of a petition or the making of an order or the passing of an effective
resolution for the winding-up of the BUILDER or the placing of the BUILDER
under court protection or the appointment of a receiver of the undertaking or
property of the BUILDER or the insolvency of or a suspension of payment by the
BUILDER or the cessation of the carrying on of business by the BUILDER or the
making by the BUILDER of any special arrangement or composition with creditors of
the BUILDER or any analogous proceedings and the BUILDER fails to remedy such
breach within ten (10) days of receipt by the BUILDER of written notice
from the BUYER.

 

(End of Article)

 

35

 

ARTICLE XXI:     EFFECTIVENESS
OF THIS CONTRACT

 

This
CONTRACT shall become effective upon signing by the parties hereto.

 

(End of Article)

 

36

 

ARTICLE XXII:     EXCLUSIVENESS

 

This
CONTRACT shall constitute the only and entire agreement between the parties
hereto, and unless otherwise expressly provided for in this CONTRACT, all other
agreements, oral or written, made and entered into between the parties prior to
the execution of this CONTRACT shall be null and void.

 

(End of Article)

 

37

 

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

 

	
  BUYER

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  BUILDER

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SIGNED by

  	
  )

  	
   

  	
  SIGNED by

  	
  )

  
	
  For
  and on behalf of SUEZ TOPAZ LIMITED pursuant
  to a Power of Attorney dated             2008

  	
  )

  )

  	
   

  	
  for
  and on behalf of HYUNDAI HEAVY INDUSTRIES
  CO., LTD. pursuant to a Power of Attorney
  dated     2008

  	
  )

  )

  
	
   

  	
  )

  )

  )

  	
   

  	
   

  	
  )

  )

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/ Stamatis Molaris

  	
   

  	
   

  	
  /s/ D. Y. Han

  
	
  Name:

  	
  Stamatis Molaris

  	
   

  	
   

  	
  Name:

  	
  D.
  Y. Han

  
	
  Title:

  	
  Attorney-in-fact

  	
   

  	
   

  	
  Title:

  	
  Attorney-in-fact

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  in the presence of:

  	
   

  	
   

  	
  in
  the presence of:

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Witness:

  	
   

  	
   

  	
  Witness:

  
	
  By

  	
  /s/
  S. Marie Kelly

  	
   

  	
   

  	
  By

  	
  /s/ J. C. Bae

  
	
  Name:

  	
  S.
  Marie Kelly

  	
   

  	
   

  	
  Name:

  	
  J. C. Bae

  
	
  Title:

  	
   

  	
   

  	
   

  	
  Title:

  	
  Attorney-in-fact

  
							

 

38

 

EXHIBIT “A”

 

STAGE
CERTIFICATE

 

Hull
No. 2300 (the “VESSEL”)  under
a Shipbuilding Contract dated the 2nd day of June 2008 (the “CONTRACT”)  made between SUEZ TOPAZ LIMITED (the “BUYER”) and
Hyundai Heavy Industries Co. Ltd (the “BUILDER”).

 

We
hereby certify in connection with the CONTRACT of the VESSEL that

 

[                                              ]

 

	
  For and on behalf of

  the BUILDER

  	
   

  	
  For and on behalf of

  the BUYER

  
	
   

  	
   

  	
  (Authorised
  Representative)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Dated:

  	
   

  	
  Dated:

  

 

 

	
   

  	
  For and on
  behalf of

  	
   

  
	
   

  	
  the CLASSIFICATION SOCIETY

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Dated:

  	
   

  

 

39

 

EXHIBIT “B”

 

LETTER OF GUARANTEE
NO:              

 

Date:                                           ,
2008

 

Gentlemen:

 

In consideration of you entering in the
shipbuilding contract
dated                                   ,
2008 (hereinafter called “CONTRACT”) made
by and between SUEZ TOPAZ LIMITEDof Marshall
Islands (hereinafter called the “BUYER”) and
Hyundai Heavy Industries Co., Ltd., Ulsan, Korea (hereinafter called the “BUILDER”) for the construction by the BUILDER and the
purchase by the BUYER of one (1) 158,000 DWT Class Crude Oil Carrier
having the BUILDER’S Hull No.2300 (hereinafter called the “VESSEL”),
we hereby open our irrevocable letter of guarantee number
                              in
favour of the BUYER for account of the BUILDER as follows.

 

If,
in connection with the terms of the CONTRACT, the BUYER shall become entitled
to a refund of the advance payments made to the BUILDER prior to the delivery
of the VESSEL, we hereby irrevocably guarantee the repayment of the same to the
BUYER within thirty (30) days after demand not exceeding US$
                                        
(Say U.S. Dollars                                          
only) together with interest thereon at the rate of six percent (6 %) per
annum, from the date following the date of receipt by the BUILDER to the date
of remittance by telegraphic transfer of such refund.

 

The amount of this guarantee will be automatically increased upon the
BUILDER’S receipt of the respective instalment, not more than two
(2) times, each time by the amount of instalment plus interest thereon as
provided in the CONTRACT, but in any eventuality the amount of this guarantee
shall not exceed the total sum of US$                                        (Say
U.S.
Dollars                                       only)
plus interest thereon at the rate of six percent (6 %) per annum from the date
following the date of the BUILDER’S receipt of each instalment to the date of
remittance by telegraphic transfer of the refund. However, in the event of
cancellation of the CONTRACT being based on delays due to force majeure or
other causes beyond the control of the BUILDER, the interest rate of refund
shall be reduced to four percent (4 %) per annum as provided in Article X
of the CONTRACT.

 

The payment by the undersigned under this letter of guarantee (subject
to the second and third paragraph hereof) shall be made upon simple receipt by
us of a written demand from you including a signed statement certifying that
the BUYER’S demand for refund has been made in conformity with Article X
of the CONTRACT and the BUILDER has failed to make the refund.

 

It is hereby understood that payment of any interest provided herein is
by way of liquidated damages due to cancellation of the CONTRACT and not by way
of compensation for use of money.

 

Notwithstanding the provisions hereinabove, in the event that within
thirty (30) days from the date of your claim to the BUILDER referred to above,
we receive notification from you or the BUILDER accompanied by written
confirmation to the effect that your claim to cancel the CONTRACT or your claim
for refundment thereunder has been disputed and referred to arbitration in
accordance with the provisions of the CONTRACT, we shall under this guarantee,
refund to you the sum adjudged to be due to you by the BUILDER pursuant to the
award made under such arbitration or, as the case may be, final court judgment
following such arbitration award immediately upon receipt from you of a demand
for the sums so adjudged and a copy of the relevant arbitration award or, as
the case may be, court judgment.

 

The letter of guarantee shall become null and void upon receipt by the
BUYER of the sum guaranteed hereby or upon acceptance by the BUYER of the
delivery of the VESSEL in accordance with the terms of the CONTRACT and, this
letter of guarantee shall be returned to us.

 

This letter of guarantee is assignable and valid from the date of this
letter of guarantee until such time as the VESSEL is delivered by the BUILDER
and accepted by the BUYER in accordance with the provisions of the CONTRACT.

 

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

 

[                                                               ]

 

Fax:

 

40

 

This letter of guarantee
shall remain in full force and effect, notwithstanding any amendments made to
the CONTRACT by the parties thereto. The bankruptcy or insolvency of the
BUILDER or the BUILDER’S breach or default under the CONTRACT shall not effect
our obligations under this Letter of Guarantee. Our obligation under this
Letter of Guarantee shall not be discharged or impaired by any novation of,
amendment of, or supplement to, the CONTRACT after the date of issuance of this
Letter of Guarantee by us, provided however that the sum guaranteed hereinabove
shall not be increased and the period of the validity of this guarantee
stipulated hereinabove shall not be extended without the prior written consent
of us.

 

This letter of
guarantee shall be governed by and construed in accordance with the laws of
England and any dispute between you and us hereunder or in relation hereto
shall be submitted to arbitration in London before a tribunal of three
arbitrators, such arbitration shall be conducted in accordance with the
Arbitration Act 1996 and the rules of the London Maritime Arbitration
Association (LMAA) in London, England.

 

 

	
   

  	
  Very truly yours 

  
	
   

  	
  for and on behalf of

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By 

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  

 

41

 

EXHIBIT “C”

 

Hyundai Heavy
Industries Co., Ltd.

 

1, Jeonha-Dong,
Dong-Gu,

 

	
  Ulsan. Korea

  	
   

  	
  Date:

  	
  2008

  
	
  Korea

  	
   

  	
   

  	
   

  

 

PERFORMANCE
GUARANTEE

 

Gentlemen,

 

In consideration
of your executing a shipbuilding contract (hereinafter called the “CONTRACT”)  dated
                       2008
with SUEZ TOPAZ LIMITED (hereinafter called the “BUYER”)  providing for the
construction of one (1) 158,000 DWT Class Crude Oil Carrier having
the BUILDER’S Hull No.2300 (hereinafter called the “VESSEL”)  and providing, among other things,
for payment of the contract price amounting
to                                    (U.S.$                     )
for the VESSEL, prior to, upon and after the delivery of the VESSEL, the
undersigned, as a primary obligor and not as a surety merely, hereby
unconditionally and irrevocably guarantees to you, your successors and assigns,
the due and faithful performance by the BUYER of all its liabilities and
responsibilities under the CONTRACT and any supplements, amendments, changes or
modifications hereinafter made thereto including but not limited to, due and
prompt payment of the above said contract price (whether on account of
principal, interest or otherwise) by the BUYER to you, your successors and
assigns under the CONTRACT, notwithstanding any obligation of the BUYER being
or becoming unenforceable by defect in or want of its powers, (hereby expressly
waiving notice of any such supplement, amendment, change or modification as may
be agreed to by the BUYER) and confirms that this guarantee shall be fully
applicable to the CONTRACT whether so supplemented, amended, changed or
modified and if it shall be assigned by the BUYER in accordance with the terms
of the CONTRACT.  This guarantee will expire on delivery of the
VESSEL to the BUYER.

 

The undersigned hereby certifies, represents and
warrants that all acts, conditions and things required to be done and performed
and to have occurred precedent to the creation and issuance of this guarantee,
and to constitute the guarantee the valid and legally binding obligation of the
undersigned enforceable in accordance with its terms have been done and
performed and have occurred in due and strict compliance with applicable laws.

 

The payment by the
undersigned under this guarantee shall be made forthwith upon receipt by us of
written demand from you including a statement that the BUYER is in default of
payment of the amounts (including, but not limited to, the instalment(s) payable prior
to or upon delivery of the VESSEL) that were due under the CONTRACT, without
requesting you to take any or further procedure or step against the BUYER.

 

This Performance
Guarantee shall become effective upon execution by us and shall become null and
void upon rescission by the BUYER of the CONTRACT or delivery and acceptance of
the VESSEL.

 

The existence of this Performance Guarantee and its
terms and conditions shall be treated by you as confidential and shall not be
disclosed by you to any person, authority or entity (other than your bank) and
any relevant court or arbitration tribunal.

 

This guarantee
shall be governed by and interpreted in accordance with the laws of England and
the undersigned hereby submits to the non-exclusive jurisdiction of the courts
of England.

 

 

	
   

  	
  Very truly yours 

  
	
   

  	
  For and behalf of [·]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

42

 

ADDENDUM
NO. 1

 

ADDENDUM
NO.1 dated 17 November 2008 to a shipbuilding contract dated
2 June 2008 (the “Contract”) made between Suez Topaz Limited (the
“Buyer”) and Hyundai Heavy Industries Co. Ltd (the “Builder”) for the construction of one (1) 158,000 DWT class crude oil
carrier bearing Hull No. 2300.

 

WHEREAS:

 

(a)    the Buyer
assigned to Fortis Bank of 166 Syngrou Avenue, 176 71 Athens, Greece absolutely
all interests and rights under the Contract by a predelivery security
assignment dated 23 June 2008 (the “Predelivery
Security Assignment”);

 

(b)    the Buyer and
the Builder, pursuant to a facsimile message dated 26 June 2008 and addressed
by the Builder to (inter alios) the Buyer, agreed to amend the words “26
November 2008” in Paragraph 2 of Article X of the Contract to read “17 November
2008”; and

 

(c)    the Buyer and
the Builder have now agreed to further amend the due date and method of payment
of the Second Instalment (as such term is defined in Paragraph 2(b).

 

NOW, in
consideration of the promises contained herein, it is hereby agreed by the
parties to this Addendum as follows:

 

1          The Contract shall, with
effect on and from the date the Buyer obtains all consents required to be
obtained by it in connection with this Addendum pursuant to the Predelivery
Security Assignment, be (and it is hereby) amended as follows (and the Contract
(as so amended) will continue to be binding upon each of the parties hereto
upon such terms as so amended):

 

(a)     by deleting the
words “Ninety Two Million and Two Hundred Thousand (US$92,200,000)” in the
second line of Article II of the Contract and by inserting in its place the
words “Ninety Two Million Seven Hundred and Sixty Nine Thousand Two Hundred and
Seven (US$92,769,207)”;

 

(b)    by deleting the
word “fourth” in the second line of Clause 2 of Article VII and by inserting in
its place the word “fifth”;

 

(c)     by deleting
Paragraphs 2, 3 and 4 of Article X of the Contract in their entirety and by
inserting in their place the following new Paragraphs 2, 3 and 4:

 

“ARTICLE
X:     PAYMENT

 

2        TERMS OF PAYMENT

 

The payments of the
CONTRACT PRICE shall be made as follows:

 

(a)      First Instalment

 

U.S. Dollars Eighteen
Million Four Hundred and Forty Thousand (US$18,440,000) shall be paid within
three (3) business days after the later of (i) execution of this CONTRACT by
both parties hereto and (ii) receipt by the BUYER of the original of the Refund

 

 

Guarantee specified in
Paragraph 8 of this Article and (iii) 17 June 2008.

 

(b)      Second Instalment

 

U.S. Dollars Four Million
Six Hundred and Thirty Six Thousand Eight Hundred and Ninety Two (US$4,636,892)
shall be paid on the later of (i) three (3) business days after receipt by the
BUYER of the original of the Supplemental Letter to the Refund Guarantee
specified in Paragraph 8 of this Article and attached to addendum No. 1 dated
17 November 2008 to this CONTRACT in the form of Exhibit “A” (the “Supplemental Letter”)  and
(ii) 17 December 2008.

 

(c)      Third Instalment

 

U.S. Dollars Five Million
One Hundred and Fifty Two Thousand Three Hundred and Fifteen (US$5,152,315)
shall be paid on 15 July 2010.

 

(d)      Fourth Instalment

 

U.S. Dollars Eighteen
Million Four Hundred and Forty Thousand (US$18,440,000) shall be paid within
three (3) business days of receipt by the BUYER of a faxed copy of Stage
Certificate in the form of EXHIBIT “A” attached hereto confirming that the
first block of the keel has been laid in accordance with the SPECIFICATIONS.

 

(e)      Fifth Instalment

 

U.S Dollars Forty Six
Million One Hundred Thousand (US$46,100,000) plus or minus any increase or
decrease due to modifications and/or adjustment, if any, arising prior to
delivery of the VESSEL of the CONTRACT PRICE under Articles II, III and V of
this CONTRACT shall be paid to the BUILDER concurrently with the delivery and
acceptance of the VESSEL. (The date stipulated for payment of each of the five
instalments mentioned above is hereinafter in this Article and in Article XI
referred to as the “DUE DATE” of
that instalment).

 

Provided however that
none of the above instalments shall be payable if the Refund Guarantee referred
to in Article X.8 hereof (as amended and supplemented by the Supplemental
Letter) ceases to be in force and no substitute Refund Guarantee has been
provided in accordance with the provisions of this Contract. It is understood
and agreed upon by the BUILDER and the BUYER that all payments under the
provisions of this Article shall not be delayed or withheld by the BUYER due to
any dispute or disagreement of whatsoever nature arising between the BUILDER
and the BUYER. Should there be any dispute in this connection, the matter shall
be dealt with in accordance with the provisions of arbitration in Article XIII
hereof. Expenses for remitting payments whether charged by the BUYER’S bank or
the BUILDER’S bank shall be for the account of the BUYER.

 

 

3        DEMAND FOR PAYMENT

 

At least fourteen (14)
days prior to the DUE DATE of each instalment, with the exception of the
payment of the first, second and third instalments, the BUILDER shall notify
the BUYER by facsimile of the date such instalment shall become due.

 

The BUYER shall
immediately acknowledge receipt of such notification by facsimile to the
BUILDER and make payment as set forth in this Article.  If the
BUILDER fails to receive the BUYER’s said acknowledgement within three (3) days
after sending the aforementioned notification, the BUILDER shall promptly
facsimile to the BUYER a second notification of similar import. The BUYER shall
immediately acknowledge by facsimile receipt of the foregoing second
notification regardless of whether or not the first notification was
acknowledged as aforesaid.

 

4        METHOD OF PAYMENT

 

(a)      All the pre-delivery
payments and the payment due on delivery in settlement of the CONTRACT PRICE as
provided for in Paragraph 2 of this Article shall be made in U.S. Dollars on or
before the DUE DATE thereof by telegraphic transfer as follows:

 

(i)        The
payment of the first, second, third and fourth instalments shall be made to the
account (Account No.:04-029-695) of the The Export-Import Bank of Korea,
(hereinafter called the “KOEXIM”) with
Deutsche Bank Trust Company Americas, New York, USA (hereinafter called the “DBTC”) or the account of the BUILDER with or any other bank
in favour of the BUILDER, as designated and notified by the BUILDER at least
five (5) business days prior to the DUE DATE.

 

(ii)       The
BUYER shall cause a bank in Seoul, Korea (the “BUYER’s Bank”)
acceptable to the BUILDER to make the payment of the fifth instalment (as
provided for in Paragraph 2(e) of this Article) to The Export-Import Bank of
Korea in favour of the BUILDER or to the account of the BUILDER with a bank
designated and notified by the BUILDER upon the BUILDER’s presentation to the
BUYER’s Bank of a duplicate copy of the PROTOCOL OF DELIVERY AND ACCEPTANCE of
the VESSEL signed by the BUILDER and the BUYER.

 

(iii)      At least two (2) business days prior to the
scheduled delivery date of the VESSEL, the BUYER’s Bank shall irrevocably
confirm by a cable or any other equivalent means, to The Export-Import Bank of
Korea or such other bank that the payment of the fifth instalment will be made
unconditionally and immediately upon the BUILDER’S presentation to the BUYER’s
bank of the said PROTOCOL OF DELIVERY AND ACCEPTANCE duly executed by both
parties hereto.

 

(b)      Simultaneously with each of
such payments (save for payment of the fifth instalment), the BUYER shall
advise the BUILDER of the details of the payments by cable or facsimile and, at
the same time, the BUYER shall cause the BUYER’s remitting bank to

 

 

advise the Export-Import
Bank of Korea or other bank of the details of such payments by authenticated
bank cable or telex.”;

 

(d)    by adding the following new
Paragraph 10 at the end of Article X of the Contract:

 

“PREPAYMENT

 

The Buyer shall have the
right to prepay any of the instalments due under this Contract without any
premium or penalty, save that, in the event that the Buyer pays the second
instalment or the third instalment earlier than their respective DUE DATE, the
fifth instalment shall be reduced by United States Dollars Eight Hundred and
Ninety Six (US$896) for each day either instalment is paid earlier than its
respective DUE DATE.”

 

(e)     by deleting the
words “second or third” in the first line of sub-paragraph (a), Paragraph 1 of
Article XI of the Contract and by inserting in their place the words “second,
third or fourth”; and

 

(f)     by deleting the
word “fourth” in the first and second line of paragraph (b), Paragraph 1 of
Article XI of the Contract and by inserting in its place in both cases the word
“fifth”.

 

2          Save as provided in
clause 1 of this Addendum, the terms of the Contract will not be otherwise
amended and shall remain in full force and effect.

 

3          This Addendum shall be
kept strictly private and confidential by both parties hereto and shall not be
disclosed to any third party. However, the parties may disclose this Addendum
to a third party to the extent necessary to perform the Contract (such as the
Buyer’s banks providing financing to the Buyer for the payment of the Contract
Price) or if required by any law or regulation or court order, and in such case
the parties shall instruct such third party to observe the full confidentiality
of this Addendum.

 

4          Each party hereby confirms
that all internal procedures relevant to such party have been taken and all
consents relevant to such party have been duly obtained regarding the
amendments to the Contract pursuant to this Addendum save for any consents
required to be obtained by the Buyer in connection with the Addendum pursuant
to the Predelivery Security Assignment which consents will be obtained and
provided by the Buyer to the Builder within two (2) days from the date of this
Addendum.

 

5          This Addendum shall be
governed by English law.

 

IN
WITNESS whereof the parties to this Addendum have caused this
Addendum to be duly executed on the date first above written.

 

 

EXHIBIT
“A”

 

Form
of Supplemental Letter to Refund Guarantee

 

[TO BE TYPED AND
PRINTED ON THE LETTERHEAD OF THE EXPORT-IMPORT BANK OF

KOREA]

[·]
2008

 

To:                  Suez
Topaz Limited

Trust Company Complex

Ajeltake Road

Ajeltake Island

Majuro, Marshall Islands
MH96960

 

Gentlemen

 

Letter of Guarantee No.
M0902-806-LG-00040 dated 5 June 2008 (the “Letter of Guarantee”)

 

We refer to:

 

1          a shipbuilding contract
dated 2 June 2008 (the “Original Contract”)  made
between Suez Topaz Limited (the “Buyer”)  and
Hyundai Heavy Industries Co., Ltd (the “Builder”)  for
the construction of one (1) 158,000 DWT class crude oil carrier bearing Hull No.
2300, as amended by an addendum No. 1 dated [•] November 2008 (the “Addendum” and together with the Original
Contract referred to as the “Contract”) made between the Builder and the Buyer
in respect of the Original Contract; and

 

2          the Letter of Guarantee
(a copy of which is attached to this letter and marked as Exhibit “A”) issued
by us in your favour and pursuant to which we have guaranteed to you the refund
of any advance payments made by you to the Builder under the Contract.

 

We hereby confirm that we
have reviewed the terms of the Addendum and consent to the amendments to the
Original Contract contained in the Addendum and agree that the Letter of
Guarantee and our obligations thereunder shall remain and continue in full
force and effect notwithstanding the said amendments to the Original Contract
contained in the Addendum Provided however that the Letter of Guarantee is
hereby amended by deleting the third paragraph of the Letter of Guarantee in
its entirety and by inserting in its place the following new paragraph:

 

“The amount of this guarantee will be automatically
increased upon the BUILDER’S receipt of the respective instalment, not more
than three (3) times, each time by the amount of the relevant instalment plus
interest thereon as provided in the CONTRACT, but in any eventuality the amount
of this guarantee shall not exceed the total sum of US$46,669,207 (Say U.S.
Dollars Forty Six Million Six Hundred and Sixty Nine Thousand Two Hundred and
Seven only) plus interest thereon at the rate of six percent (6%) per annum
from the date following the date of the BUILDER’S receipt of each instalment to
the date of remittance by telegraphic transfer of the refund. However, in the
event of cancellation of the CONTRACT being based on delays due to force majeure
or other causes beyond the control of the BUILDER, the interest rate of refund
shall be reduced to four percent (4 %) per annum as provided in Article X of
the CONTRACT.”.

 

 

This supplemental letter is
governed by and shall be construed in accordance with English law.

 

Yours faithfully,

 

 

	
  For and on behalf of

  
	
  THE EXPORT-IMPORT BANK OF KOREA

  
	
   

  
	
   

  
	
  By:

  	
   

  	
   

  

 

 

	
  SIGNED for an on
  behalf of

  	
  )

  
	
   

  	
  )

  
	
  SUEZ TOPAZ LIMITED

  	
  )

  
	
   

  	
  )

  
	
  by: [ILLEGIBLE]

  	
  )

  	
  [ILLEGIBLE]

  
	
   

  	
   

  
	
   

  	
   

  
	
  SIGNED for and on
  behalf of

  	
  )

  
	
  HYUNDAI HEAVY INDUSTRIES CO., LTD

  	
  )

  
	
  by: E. C. Han

  	
  )

  	
  /s/ E. C. Han

  

 

 

ADDENDUM NO. 2

 

ADDENDUM NO. 2
dated 17 December 2008 to a shipbuilding contract dated 2 June 2008
(the “Original Contract”) as amended by addendum No.1 dated 17
November 2008 (“Addendum No. 1” and together with the Original Contract, the “Contract”),  both made between
Suez Topaz Limited (the “Buyer”) and Hyundai Heavy Industries Co.,
Ltd. (the “Builder”) for the construction of one (1) 158,000
DWT class crude oil carrier bearing Hull No. 2300.

 

WHEREAS:

 

(a)    Pursuant to a predelivery security
assignment dated 23 June 2008 (the “Predelivery
Security Assignment”) executed by
the Buyer in favour of Fortis Bank of 166 Syngrou Avenue, 176 71 Athens, Greece
(“Fortis
Bank”)  the Buyer
has assigned to Fortis Bank absolutely all interests and rights under the
Contract;

 

(b)    pursuant to Addendum No.1 (i) the
Buyer and the Builder amended (inter alios) the terms of payment of the second
instalment of the Contract Price (as such term is defined in Article II of
the Contract) payable to the Builder pursuant to Paragraph 2(b) of Article X
of the Original Contract and (ii) The Export-Import Bank of Korea issued a
first supplemental letter to Refund Guarantee dated 1 December 2008 (the “First Supplemental Letter”),  an
original of which was received by the Buyer on 17 December 2008; and

 

(c)    the Buyer and the Builder have now agreed
to further amend the terms of payment of the second instalment of the Contract
Price (as such term is defined in Article II of the Contract) payable to
the Builder pursuant to Paragraph 2(b) of Article X of the Contract.

 

NOW, in consideration of the promises contained herein, it
is hereby agreed by the parties to this Addendum as follows:

 

1          The Contract shall, with effect on and
from the date the Buyer obtains all consents required to be obtained by it in
connection with this Addendum pursuant to the Predelivery Security Assignment,
be (and it is hereby) amended as follows (and the Contract (as so amended) will
continue to be binding upon each of the parties hereto upon such terms as so
amended):

 

(a)           by deleting the words “Ninety Two Million
Seven Hundred and Sixty Nine Thousand Two Hundred and Seven (US$92,769,207)” in
the second line of Article II of the Contract and by inserting in their
place the words “Ninety Two Million Eight Hundred and Eighty Nine Thousand
Three Hundred and Twenty Three (US$92,889,323)”; and

 

(b)           by deleting Paragraph 2 of Article X
of the Contract in its entirety and by inserting in its place the following new
Paragraph 2:

 

“ARTICLE X:     PAYMENT

 

2     TERMS OF PAYMENT

 

The payments of the CONTRACT PRICE shall be made as
follows:

 

(a)          First Instalment

 

U.S. Dollars
Eighteen Million Four Hundred and Forty Thousand (US$18,440,000) shall be paid
within three (3) business days after the later of (i) execution of
this CONTRACT by both parties hereto and 
(ii) receipt by the BUYER of the original of the Refund

 

 

Guarantee
specified in Paragraph 8 of this Article and (iii) 17 June 2008.

 

(b)         Second Instalment

 

U.S.
Dollars Four Million Seven Hundred and Fifty Seven Thousand and Eight
(US$4,757,008) shall be paid on the later of (i) three (3) business
days after receipt by the BUYER of the original of (A) the first
supplemental letter to the Refund Guarantee dated 1 December 2008 (the “First Supplemental Letter”) and (B) the second supplemental
letter to the Refund Guarantee specified in Paragraph 8 of this Article and
attached to addendum No.2 dated 17 December 2008 to this CONTRACT in the
form of Exhibit “A” (the “Second
Supplemental Letter”) and
(ii) 30 April 2009.

 

(c)          Third Instalment

 

U.S.
Dollars Five Million One Hundred and Fifty Two Thousand Three Hundred and
Fifteen (US$5,152,315) shall be paid on 15 July 2010.

 

(d)         Fourth Instalment

 

U.S.
Dollars Eighteen Million Four Hundred and Forty Thousand (US$18,440,000) shall
be paid within three (3) business days of receipt by the BUYER of a faxed
copy of Stage Certificate in the form of EXHIBIT “A” attached hereto confirming
that the first block of the keel has been laid in accordance with the
SPECIFICATIONS.

 

(e)          Fifth Instalment

 

U.S
Dollars Forty Six Million One Hundred Thousand (US$46,100,000) plus or minus
any increase or decrease due to modifications and/or adjustment, if any,
arising prior to delivery of the VESSEL of the CONTRACT PRICE under Articles II, III
and V of this CONTRACT shall be paid to the BUILDER concurrently with the
delivery and acceptance of the VESSEL. (The date stipulated for payment of each
of the five instalments mentioned above is hereinafter in this Article and
in Article XI referred to as the “DUE
DATE” of that instalment).

 

Provided
however that none of the above instalments shall be payable if the Refund
Guarantee referred to in Article X.8 hereof (as amended and supplemented
by the First Supplemental Letter and the Second Supplemental Letter) ceases to
be in force and no substitute Refund Guarantee has been provided in accordance
with the provisions of this Contract. It is understood and agreed upon by the
BUILDER and the BUYER that all payments under the provisions of this Article shall
not be delayed or withheld by the BUYER due to any dispute or disagreement of
whatsoever nature arising between the BUILDER and the BUYER. Should there be
any dispute in this connection, the matter shall be dealt with in accordance
with the provisions of arbitration in Article XIII hereof. Expenses for
remitting payments whether charged by the BUYER’S
bank or the BUILDER’S bank shall
be for the account of the BUYER.”.

 

 

2          Save as provided in clause 1 of this
Addendum, the terms of the Contract will not be otherwise amended and shall
remain in full force and effect.

 

3          This Addendum shall be kept strictly
private and confidential by both parties hereto and shall not be disclosed to
any third party. However, the parties may disclose this Addendum to a third
party to the extent necessary to perform the Contract (such as the Buyer’s banks providing financing to the Buyer for the payment of
the Contract Price) or if required by any law or regulation or court order, and
in such case the parties shall instruct such third party to observe the full
confidentiality of this Addendum.

 

4          Each party hereby confirms that all
internal procedures relevant to such party have been taken and all consents
relevant to such party have been duly obtained regarding the amendments to the
Contract pursuant to this Addendum save for any consents required to be
obtained by the Buyer in connection with this Addendum pursuant to the
Predelivery Security Assignment which consents will be obtained and provided by
the Buyer to the Builder within five (5) days from the date of this
Addendum.

 

5          This Addendum and any-non-contractual
obligations connected with this Addendum and the Contract shall be governed by
English law.

 

IN
WITNESS whereof
the parties to this Addendum have caused this Addendum to be duly executed on
the date first above written.

 

 

EXHIBIT “A”

 

Form of Second Supplemental
Letter to Refund Guarantee

 

[TO BE TYPED AND PRINTED ON THE LETTERHEAD OF THE EXPORT-IMPORT BANK OF

KOREA]

 

[·] 200   [·]

 

To:       Suez Topaz Limited

Trust
Company Complex

Ajeltake
Road

Ajeltake
Island

Majuro,
Marshall Islands MH96960

 

Gentlemen

 

Letter
of Guarantee No. M0902-806-LG-00040 dated 5 June 2008 (the “Original
Letter of Guarantee”) as amended and supplemented by a supplemental letter
dated 1 December 2008 (the “First Supplemental Letter of Guarantee” and
together with the Original Letter of Guarantee, the “Letter of Guarantee”)

 

We refer to:

 

1         a shipbuilding contract dated 2 June 2008
(the “Original Contract”) as amended and supplemented by
addendum No.1 dated 17 November 2008 (“Addendum No. 1” and
together with the Original Contract referred to as the “Principal
Contract”) and as further amended by addendum No. 2 dated 17 December 2008
(“Addendum
No. 2” and together with the Principal Contract referred
to as the “Contract”),  each
made between Suez Topaz Limited (the “Buyer”)  and
Hyundai Heavy Industries Co., Ltd. (the “Builder”) for the construction of one (1) 158,000
DWT class crude oil carrier bearing Hull No. 2300; and

 

2          the Original Letter of Guarantee and the
First Supplemental Letter of Guarantee (a copy of each of which is attached to
this letter and marked as Exhibits “A” and “B” respectively) issued by us in
your favour and pursuant to which we have guaranteed to you the refund of any
advance payments made by you to the Builder under the Contract.

 

We hereby confirm
that we have reviewed the terms of Addendum No. 2 and consent to the
amendments to the Principal Contract contained in Addendum No. 2 and agree
that the Letter of Guarantee and our obligations thereunder shall remain and
continue in full force and effect notwithstanding the said amendments to the
Principal Contract contained in Addendum No. 2 Provided however that the
Letter of Guarantee is hereby further amended by deleting in the fourth line of
the third paragraph of the Letter of Guarantee the words “US$46,669,207 (Say
U.S. Dollars Forty Six Million Six Hundred and Sixty Nine Thousand Two Hundred
and Seven only)” and by inserting in their place the words “US$46,789,323 (Say
U.S. Dollars Forty Six Million Seven Hundred and Eighty Nine Thousand Three
Hundred and Twenty Three only)”.

 

 

This supplemental
letter and any non-contractual obligations connected with this supplemental
letter and the Letter of Guarantee are governed by and shall be construed in
accordance with English law.

 

Yours
faithfully,

 

 

For
and on behalf of

THE
EXPORT-IMPORT BANK OF KOREA

 

 

	
  By:

  	
   

  	
   

  

 

 

	
  SIGNED
  for an on
  behalf of

  	
  )

  	
   

  
	
  SUEZ
  TOPAZ LIMITED

  	
  )

  	
   

  
	
  by:    B. Spiliopoulos

  	
  )

  	
  /s/ B. Spiliopoulos

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  SIGNED
  for and on
  behalf of

  	
  )

  	
   

  
	
  HYUNDAI
  HEAVY INDUSTRIES CO., LTD

  	
  )

  	
   

  
	
  by: E. C. Han

  	
  )

  	
  /s/ E.C. HanExhibit 10.3

 

	
  

  	
  www.koreaexim.go.kr

  
	
  16-1, Yoido-Dong,
  Yeongdeungpo-Gu, Seoul 150-996, Korea

  Tel. 822-3779-6315 Fax. 822-3779-6745

  	
   

  

 

LETTER OF GUARANTEE NO.
M0902-806-LG-00057

 

Date: June 5,
2008

 

Gentlemen:

 

In consideration
of you entering in the shipbuilding contract dated June 2, 2008
(hereinafter called “CONTRACT”) made by and between SUEZ DIAMOND LIMITED of
Marshall Islands (hereinafter called the “BUYER”) and Hyundai Heavy Industries
Co., Ltd., Ulsan, Korea (hereinafter called the “BUILDER”) for the construction
by the BUILDER and the purchase by the BUYER of one (1) 158,000 DWT Class Crude
Oil Carrier having the BUILDER’S Hull No.2301 (hereinafter called the “VESSEL”),
we hereby open our irrevocable letter of guarantee number M0902-806-LG-00057 in
favour of the BUYER for account of the BUILDER as follows.

 

If, in connection
with the terms of the CONTRACT, the BUYER shall become entitled to a refund of
the advance payments made to the BUILDER prior to the delivery of the VESSEL,
we hereby irrevocably guarantee the repayment of the same to the BUYER within
thirty (30) days after demand not exceeding US$ 18,440,000 (Say U.S. Dollars
Eighteen Million Four Hundred Forty Thousand only) together with interest
thereon at the rate of six percent (6 %) per
annum, from the date following the date of receipt by the BUILDER to the date
of remittance by telegraphic transfer of such refund.

 

The amount of this
guarantee will be automatically increased upon the BUILDER’S receipt of the
respective instalment, not more than two (2) times, each time by the
amount of instalment plus interest thereon as provided in the CONTRACT, but in
any eventuality the amount of this guarantee shall not exceed the total sum of
US$ 46,100,000 (Say U.S. Dollars Forty Six Million One Hundred Thousand only)
plus interest thereon at the rate of six percent (6 %) per annum from the date
following the date of the BUILDER’S receipt of each instalment to the date of
remittance by telegraphic transfer of the refund. However, in the event of
cancellation of the CONTRACT being based on delays due to force majeure or
other causes beyond the control of the BUILDER, the interest rate of refund
shall be reduced to four percent (4 %) per annum as provided in Article X
of the CONTRACT.

 

 

The payment by the
undersigned under this letter of guarantee (subject to the second and third
paragraph hereof) shall be made upon simple receipt by us of a written demand
from you including a signed statement certifying that the BUYER’S demand for
refund has been made in conformity with Article X of the CONTRACT and the
BUILDER has failed to make the refund.

 

It is hereby
understood that payment of any interest provided herein is by way of liquidated
damages due to cancellation of the CONTRACT and not by way of compensation for
use of money.

 

Notwithstanding
the provisions hereinabove, in the event that within thirty (30) days from the
date of your claim to the BUILDER referred to above, we receive notification
from you or the BUILDER accompanied by written confirmation to the effect that
your claim to cancel the CONTRACT or your claim for refundment thereunder has
been disputed and referred to arbitration in accordance with the provisions of
the CONTRACT, we shall under this guarantee, refund to you the sum adjudged to
be due to you by the BUILDER pursuant to the award made under such arbitration
or, as the case may be, final court judgment following such arbitration award
immediately upon receipt from you of a demand for the sums so adjudged and a
copy of the relevant arbitration award or, as the case may be, court judgment.

 

The letter of
guarantee shall become null and void upon receipt by the BUYER of the sum
guaranteed hereby or upon acceptance by the BUYER of the delivery of the VESSEL
in accordance with the terms of the CONTRACT and, this letter of guarantee
shall be returned to us.

 

This letter of
guarantee is assignable and valid from the date of this letter of guarantee
until such time as the VESSEL is delivered by the BUILDER and accepted by the
BUYER in accordance with the provisions of the CONTRACT.

 

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

 

[16-1, Yoido-Dong,
Youngdeungpo-Gu, Seoul 150-996, Korea ]

Fax: +822-3779-6745

 

 

This letter of
guarantee shall remain in full force and effect, notwithstanding any amendments
made to the CONTRACT by the parties thereto. The bankruptcy or insolvency of
the BUILDER or the BUILDER’S breach or default under the CONTRACT shall not
effect our obligations under this Letter of Guarantee. Our obligation under
this Letter of Guarantee shall not be discharged or impaired by any novation
of, amendment of, or supplement to, the CONTRACT after the date of issuance of
this Letter of Guarantee by us, provided however that the sum guaranteed
hereinabove shall not be increased and the period of the validity of this
guarantee stipulated hereinabove shall not be extended without the prior
written consent of us.

 

This letter of
guarantee shall be governed by and construed in accordance with the laws of
England and any dispute between you and us hereunder or in relation hereto
shall be submitted to arbitration in London before a tribunal of three
arbitrators, such arbitration shall be conducted in accordance with the
Arbitration Act 1996 and the rules of the London Maritime Arbitration
Association (LMAA) in London, England.

 

 

Very truly yours

 

 

For and on behalf of

The Export-Import Bank of Korea

 

 

	
  By:

  	
  /s/ Sang-Hun Lee

  	
   

  	
  By:

  	
  /s/ Sung-Young
  Choi

  
	
  Name:

  	
  Sang-Hun
  Lee

  	
   

  	
  Name:

  	
  Sung-Young
  Choi

  
	
  Title:

  	
  Senior Deputy Director

  	
   

  	
  Title:

  	
  Director

  
	
  Ship
  Financing Department

  	
   

  	
  Ship Financing
  Department

  	
   

  
						

 

 

ADDENDUM NO. 1

 

ADDENDUM
NO. 1 dated 17 November 2008 to a shipbuilding contract
dated 2 June 2008 (the “Contract”)
made between Suez Diamond Limited (the “Buyer”)  and Hyundai Heavy Industries Co. Ltd (the “Builder”)
for the construction of one (1) 158,000 DWT class crude oil
carrier bearing Hull No. 2301.

 

WHEREAS:

 

(a)                    the Buyer
assigned to Fortis Bank of 166 Syngrou Avenue, 176 71 Athens, Greece absolutely
all interests and rights under the Contract by a predelivery security
assignment dated 23 June 2008 (the “Predelivery
Security Assignment”);

 

(b)                   the Buyer and
the Builder, pursuant to a facsimile message dated 26 June 2008 and
addressed by the Builder to (inter alios) the Buyer, agreed to amend the words “26
November 2008” in Paragraph 2 of Article X of the Contract to read “17
November 2008”; and

 

(c)                    the Buyer and
the Builder have now agreed to further amend the due date and method of payment
of the Second Instalment (as such term is defined in Paragraph 2(b).

 

NOW, in
consideration of the promises contained herein, it is hereby agreed by the
parties to this Addendum as follows:

 

1                             The
Contract shall, with effect on and from the date the Buyer obtains all consents
required to be obtained by it in connection with this Addendum pursuant to the
Predelivery Security Assignment, be (and it is hereby) amended as follows (and the
Contract (as so amended) will continue to be binding upon each of the parties
hereto upon such terms as so amended):

 

(a)                    by deleting
the words “Ninety Two Million and Two Hundred Thousand (US$92,200,000)” in the
second line of Article II of the Contract and by inserting in its place
the words “Ninety Two Million Seven Hundred and Sixty Nine Thousand Two Hundred
and Seven (US$92,769,207)”;

 

(b)                   by deleting the
word “fourth” in the second line of Clause 2 of Article VII and by
inserting in its place the word “fifth”;

 

(c)                    by deleting
Paragraphs 2, 3 and 4 of Article X of the Contract in their entirety and
by inserting in their place the following new Paragraphs 2, 3 and 4:

 

“ARTICLE X: PAYMENT

 

2                           TERMS
OF PAYMENT

 

The payments of the
CONTRACT PRICE shall be made as follows:

 

(a)                     First
Instalment

 

U.S. Dollars Eighteen
Million Four Hundred and Forty Thousand (US$18,440,000) shall be paid within
three (3) business days after the later of (i) execution of this
CONTRACT by both parties hereto and (ii) receipt by the BUYER of the
original of the Refund

 

 

Guarantee specified in
Paragraph 8 of this Article and (iii) 17 June 2008.

 

(b)                    Second
Instalment

 

U.S. Dollars Four Million
Six Hundred and Thirty Six Thousand Eight Hundred and Ninety Two (US$4,636,892)
shall be paid on the later of (i) three (3) business days after
receipt by the BUYER of the original of the Supplemental Letter to the Refund
Guarantee specified in Paragraph 8 of this Article and attached to
addendum No. 1 dated 17 November 2008 to this CONTRACT in the form of
Exhibit “A” (the “Supplemental Letter”) and
(ii) 17 December 2008.

 

(c)                     Third
Instalment

 

U.S. Dollars Five Million
One Hundred and Fifty Two Thousand Three Hundred and Fifteen (US$5,152,315)
shall be paid on 15 July 2010.

 

(d)                    Fourth Instalment

 

U.S. Dollars Eighteen
Million Four Hundred and Forty Thousand (US$18,440,000) shall be paid within
three (3) business days of receipt by the BUYER of a faxed copy of Stage
Certificate in the form of EXHIBIT “A” attached hereto confirming that the
first block of the keel has been laid in accordance with the SPECIFICATIONS.

 

(e)                     Fifth
Instalment

 

U.S Dollars Forty Six
Million One Hundred Thousand (US$46,100,000) plus or minus any increase or
decrease due to modifications and/or adjustment, if any, arising prior to
delivery of the VESSEL of the CONTRACT PRICE under Articles II, III and V
of this CONTRACT shall be paid to the BUILDER concurrently with the delivery
and acceptance of the VESSEL. (The date stipulated for payment of each of the
five instalments mentioned above is hereinafter in this Article and in Article XI
referred to as the “DUE DATE” of
that instalment).

 

Provided however that
none of the above instalments shall be payable if the Refund Guarantee referred
to in Article X.8 hereof (as amended and supplemented by the Supplemental
Letter) ceases to be in force and no substitute Refund Guarantee has been
provided in accordance with the provisions of this Contract. It is understood
and agreed upon by the BUILDER and the BUYER that all payments under the
provisions of this Article shall not be delayed or withheld by the BUYER
due to any dispute or disagreement of whatsoever nature arising between the
BUILDER and the BUYER. Should there be any dispute in this connection, the
matter shall be dealt with in accordance with the provisions of arbitration in Article XIII
hereof. Expenses for remitting payments whether charged by the BUYER’S bank or
the BUILDER’S bank shall be for the account of the BUYER.

 

 

3                           DEMAND FOR PAYMENT

 

At least fourteen (14)
days prior to the DUE DATE of each instalment, with the exception of the
payment of the first, second and third instalments, the BUILDER shall notify
the BUYER by facsimile of the date such instalment shall become due.

 

The BUYER shall
immediately acknowledge receipt of such notification by facsimile to the
BUILDER and make payment as set forth in this Article. If the BUILDER fails to
receive the BUYER’s said acknowledgement within three (3) days after
sending the aforementioned notification, the BUILDER shall promptly facsimile
to the BUYER a second notification of similar import. The BUYER shall
immediately acknowledge by facsimile receipt of the foregoing second
notification regardless of whether or not the first notification was
acknowledged as aforesaid.

 

4                           METHOD OF PAYMENT

 

(a)                     All the
pre-delivery payments and the payment due on delivery in settlement of the
CONTRACT PRICE as provided for in Paragraph 2 of this Article shall be
made in U.S. Dollars on or before the DUE DATE thereof by telegraphic transfer
as follows:

 

(i)                       The payment
of the first, second, third and fourth instalments shall be made to the account
(Account No.:04-029-695) of the The Export-Import Bank of Korea, (hereinafter
called the KOEXIM”)  with Deutsche Bank Trust Company Americas,
New York, USA (hereinafter called the “DBTC”)  or the account of the BUILDER with or any
other bank in favour of the BUILDER, as designated and notified by the BUILDER
at least five (5) business days prior to the DUE DATE.

 

(ii)                    The BUYER
shall cause a bank in Seoul, Korea (the “BUYER’S
Bank”)  acceptable to
the BUILDER to make the payment of the fifth instalment (as provided for in
Paragraph 2(e) of this Article) to The Export-Import Bank of Korea in
favour of the BUILDER or to the account of the BUILDER with a bank designated
and notified by the BUILDER upon the BUILDER’S presentation to the BUYER’s Bank
of a duplicate copy of the PROTOCOL OF DELIVERY AND ACCEPTANCE of the VESSEL
signed by the BUILDER and the BUYER.

 

(iii)                 At least two (2) business
days prior to the scheduled delivery date of the VESSEL, the BUYER’s Bank shall
irrevocably confirm by a cable or any other equivalent means, to The
Export-Import Bank of Korea or such other bank that the payment of the fifth
instalment will be made unconditionally and immediately upon the BUILDER’S
presentation to the BUYER’s bank of the said PROTOCOL OF DELIVERY AND
ACCEPTANCE duly executed by both parties hereto.

 

(b)                    Simultaneously
with each of such payments (save for payment of the fifth instalment), the
BUYER shall advise the BUILDER of the details of the payments by cable or
facsimile and, at the same time, the BUYER shall cause the BUYER’s remitting
bank to

 

 

advise the Export-Import
Bank of Korea or other bank of the details of such payments by authenticated
bank cable or telex.”;

 

(d)                    by adding the
following new Paragraph 10 at the end of Article X of the Contract:

 

“PREPAYMENT

 

The Buyer shall have the
right to prepay any of the instalments due under this Contract without any
premium or penalty, save that, in the event that the Buyer pays the second
instalment or the third instalment earlier than their respective DUE DATE, the
fifth instalment shall be reduced by United States Dollars Eight Hundred and
Ninety Six (US$896) for each day either instalment is paid earlier than its
respective DUE DATE.”

 

(e)                     by deleting
the words “second or third” in the first line of sub-paragraph (a), Paragraph 1
of Article XI of the Contract and by inserting in their place the words “second,
third or fourth”; and

 

(f)                       by deleting
the word “fourth” in the first and second line of paragraph (b), Paragraph 1 of
Article XI of the Contract and by inserting in its place in both cases the
word “fifth”.

 

2                            Save
as provided in clause 1 of this Addendum, the terms of the Contract will not be
otherwise amended and shall remain in full force and effect.

 

3                            This
Addendum shall be kept strictly private and confidential by both parties hereto
and shall not be disclosed to any third party. However, the parties may
disclose this Addendum to a third party to the extent necessary to perform the
Contract (such as the Buyer’s banks providing financing to the Buyer for the
payment of the Contract Price) or if required by any law or regulation or court
order, and in such case the parties shall instruct such third party to observe
the full confidentiality of this Addendum.

 

4                            Each
party hereby confirms that all internal procedures relevant to such party have
been taken and all consents relevant to such party have been duly obtained
regarding the amendments to the Contract pursuant to this Addendum save for any
consents required to be obtained by the Buyer in connection with the Addendum
pursuant to the Predelivery Security Assignment which consents will be obtained
and provided by the Buyer to the Builder within two (2) days from the date
of this Addendum.

 

5                            This
Addendum shall be governed by English law.

 

IN
WITNESS whereof the parties to this Addendum have caused this
Addendum to be duly executed on the date first above written.

 

 

EXHIBIT “A”

 

Form of Supplemental Letter to
Refund Guarantee

 

[TO BE TYPED AND PRINTED ON THE LETTERHEAD OF THE EXPORT-IMPORT BANK OF
KOREA]

 

[·] 2008

 

	
  To:

  	
  Suez Diamond Limited

  
	
   

  	
  Trust Company Complex

  
	
   

  	
  Ajeltake Road

  
	
   

  	
  Ajeltake Island

  
	
   

  	
  Majuro, Marshall Islands MH96960

  

 

Gentlemen

 

Letter
of Guarantee No. M0902-806-LG-00057 dated 5 June 2008 (the “Letter of
Guarantee”)

 

We refer to:

 

1                             a
shipbuilding contract dated 2 June 2008 (the “Original Contract”)  made
between Suez Diamond Limited (the “Buyer”)
and Hyundai Heavy Industries Co., Ltd (the “Builder”)  for the construction of one (1) 158,000
DWT class crude oil carrier bearing Hull No. 2301, as amended by an
addendum No. 1 dated [·]
November 2008 (the “Addendum” and
together with the Original Contract referred to as the “Contract”) made between
the Builder and the Buyer in respect of the Original Contract; and

 

2                             the
Letter of Guarantee (a copy of which is attached to this letter and marked as Exhibit “A”)
issued by us in your favour and pursuant to which we have guaranteed to you the
refund of any advance payments made by you to the Builder under the Contract.

 

We hereby confirm that we
have reviewed the terms of the Addendum and consent to the amendments to the
Original Contract contained in the Addendum and agree that the Letter of
Guarantee and our obligations thereunder shall remain and continue in full
force and effect notwithstanding the said amendments to the Original Contract
contained in the Addendum Provided however that the Letter of Guarantee is
hereby amended by deleting the third paragraph of the Letter of Guarantee in
its entirety and by inserting in its place the following new paragraph:

 

“The amount of this
guarantee will be automatically increased upon the BUILDER’S receipt of the
respective instalment, not more than three (3) times, each time by the
amount of the relevant instalment plus interest thereon as provided in the
CONTRACT, but in any eventuality the amount of this guarantee shall not exceed
the total sum of US$46,669,207 (Say U.S. Dollars Forty Six Million Six Hundred
and Sixty Nine Thousand Two Hundred and Seven only) plus interest thereon at
the rate of six percent (6%) per annum from the date following the date of the
BUILDER’S receipt of each instalment to the date of remittance by telegraphic
transfer of the refund. However, in the event of cancellation of the CONTRACT
being based on delays due to force majeure or other causes beyond the control
of the BUILDER, the interest rate of refund shall be reduced to four percent (4
%) per annum as provided in Article X of the CONTRACT.”

 

 

This supplemental letter
is governed by and shall be construed in accordance with English law.

 

Yours faithfully,

 

 

For and on behalf of

THE EXPORT-IMPORT BANK OF KOREA

 

 

	
  By:

  	
   

  	
   

  

 

 

	
  SIGNED
  for an on
  behalf of

  	
  )

  	
   

  
	
  SUEZ
  DIAMOND LIMITED

  	
  )

  	
   

  
	
  by: 

  	
  [ILLEGIBLE]

  	
  )

  	
  /s/ [ILLEGIBLE]

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  SIGNED
  for and on
  behalf of

  	
  )

  	
   

  
	
  HYUNDAI
  HEAVY INDUSTRIES CO., LTD

  	
  )

  	
   

  
	
  by: 

  	
  E. C. HAN

  	
  )

  	
  /s/ E. C. HAN

  

 

 

ADDENDUM NO. 2

 

ADDENDUM
NO. 2 dated 17 December 2008 to a shipbuilding contract
dated 2 June 2008 (the “Original
Contract”) as amended by addendum No.1 dated 17 November 2008 (“Addendum No. 1” and together with the
Original Contract, the “Contract”),  both made between Suez Diamond Limited
(the “Buyer”)  and Hyundai Heavy Industries Co., Ltd.
(the “Builder”)  for the construction of one (1) 158,000
DWT class crude oil carrier bearing Hull No. 2301.

 

WHEREAS:

 

(a)                     Pursuant to a
predelivery security assignment dated 23 June 2008 (the “Predelivery Security Assignment”)  executed by the Buyer in favour of Fortis
Bank of 166 Syngrou Avenue, 176 71 Athens, Greece (“Fortis Bank”)  the
Buyer has assigned to Fortis Bank absolutely all interests and rights under the
Contract;

 

(b)                    pursuant to
Addendum No.1 (i) the Buyer and the Builder amended (inter alios) the
terms of payment of the second instalment of the Contract Price (as such term
is defined in Article II of the Contract) payable to the Builder pursuant
to Paragraph 2(b) of Article X of the Original Contract and (ii) The
Export-Import Bank of Korea issued a first supplemental letter to Refund
Guarantee dated 1 December 2008 (the “First
Supplemental Letter”),  an
original of which was received by the Buyer on 17 December 2008; and

 

(c)                     the Buyer and
the Builder have now agreed to further amend the terms of payment of the second
instalment of the Contract Price (as such term is defined in Article II of
the Contract) payable to the Builder pursuant to Paragraph 2(b) of Article X
of the Contract.

 

NOW, in
consideration of the promises contained herein, it is hereby agreed by the
parties to this Addendum as follows:

 

1                             The
Contract shall, with effect on and from the date the Buyer obtains all consents
required to be obtained by it in connection with this Addendum pursuant to the
Predelivery Security Assignment, be (and it is hereby) amended as follows (and
the Contract (as so amended) will continue to be binding upon each of the
parties hereto upon such terms as so amended):

 

(a)                    by deleting
the words “Ninety Two Million Seven Hundred and Sixty Nine Thousand Two Hundred
and Seven (US$92,769,207)” in the second line of Article II of the
Contract and by inserting in their place the words “Ninety Two Million Eight
Hundred and Eighty Nine Thousand Three Hundred and Twenty Three (US$92,889,323)”;
and

 

(b)                   by deleting
Paragraph 2 of Article X of the Contract in its entirety and by inserting
in its place the following new Paragraph 2:

 

“ARTICLE
X: PAYMENT

 

2                           TERMS OF PAYMENT

 

The payments of the
CONTRACT PRICE shall be made as follows:

 

(a)                       First
Instalment

 

U.S. Dollars Eighteen
Million Four Hundred and Forty Thousand (US$18,440,000) shall be paid within
three (3) business days after the later of (i) execution of this
CONTRACT by both parties hereto and (ii) receipt by the BUYER of the
original of the Refund

 

 

Guarantee specified in
Paragraph 8 of this Article and (iii) 17 June 2008.

 

(b)                      Second
Instalment

 

U.S. Dollars Four Million
Seven Hundred and Fifty Seven Thousand and Eight (US$4,757,008) shall be paid
on the later of (i) three (3) business days after receipt by the
BUYER of the original of (A) the first supplemental letter to the Refund
Guarantee dated 1 December 2008 (the “First
Supplemental Letter”) and (B) the second supplemental letter to
the Refund Guarantee specified in Paragraph 8 of this Article and attached
to addendum No.2 dated 17 December 2008 to this CONTRACT in the form of Exhibit “A”
(the “Second Supplemental Letter”)
and (ii) 30 April 2009.

 

(c)                       Third
Instalment

 

U.S. Dollars Five Million
One Hundred and Fifty Two Thousand Three Hundred and Fifteen (US$5,152,315)
shall be paid on 15 July 2010.

 

(d)                      Fourth
Instalment

 

U.S. Dollars Eighteen
Million Four Hundred and Forty Thousand (US$18,440,000) shall be paid within
three (3) business days of receipt by the BUYER of a faxed copy of Stage
Certificate in the form of EXHIBIT “A” attached hereto confirming that the
first block of the keel has been laid in accordance with the SPECIFICATIONS.

 

(e)                       Fifth
Instalment

 

U.S Dollars Forty Six
Million One Hundred Thousand (US$46,100,000) plus or minus any increase or
decrease due to modifications and/or adjustment, if any, arising prior to
delivery of the VESSEL of the CONTRACT PRICE under Articles II, III and V
of this CONTRACT shall be paid to the BUILDER concurrently with the delivery
and acceptance of the VESSEL. (The date stipulated for payment of each of the
five instalments mentioned above is hereinafter in this Article and in Article XI
referred to as the “DUE DATE” of
that instalment).

 

Provided however that
none of the above instalments shall be payable if the Refund Guarantee referred
to in Article X.8 hereof (as amended and supplemented by the First
Supplemental Letter and the Second Supplemental Letter) ceases to be in force
and no substitute Refund Guarantee has been provided in accordance with the
provisions of this Contract. It is understood and agreed upon by the BUILDER
and the BUYER that all payments under the provisions of this Article shall
not be delayed or withheld by the BUYER due to any dispute or disagreement of
whatsoever nature arising between the BUILDER and the BUYER. Should there be
any dispute in this connection, the matter shall be dealt with in accordance
with the provisions of arbitration in Article XIII hereof. Expenses for
remitting payments whether charged by the BUYER’S bank or the BUILDER’S bank
shall be for the account of the BUYER.”.

 

 

2                             Save
as provided in clause 1 of this Addendum, the terms of the Contract will not be
otherwise amended and shall remain in full force and effect.

 

3                             This
Addendum shall be kept strictly private and confidential by both parties hereto
and shall not be disclosed to any third party. However, the parties may
disclose this Addendum to a third party to the extent necessary to perform the
Contract (such as the Buyer’s banks providing financing to the Buyer for the
payment of the Contract Price) or if required by any law or regulation or court
order, and in such case the parties shall instruct such third party to observe
the full confidentiality of this Addendum.

 

4                             Each
party hereby confirms that all internal procedures relevant to such party have
been taken and all consents relevant to such party have keen duly obtained
regarding the amendments to the Contract pursuant to this Addendum save for any
consents required to be obtained by the Buyer in connection with this Addendum
pursuant to the Predelivery Security Assignment which consents will be obtained
and provided by the Buyer to the Builder within five (5) days from the
date of this Addendum.

 

5                             This
Addendum and any-non-contractual obligations connected with this Addendum and
the Contract shall be governed by English law.

 

IN
WITNESS whereof the parties to this Addendum have caused this
Addendum to be duly executed on the date first above written.

 

 

EXHIBIT “A”

 

Form of Second Supplemental Letter to Refund
Guarantee

 

[TO BE
TYPED AND PRINTED ON THE LETTERHEAD OF THE EXPORT-IMPORT BANK OF KOREA]

 

[·]
200[·]

 

	
  To:

  	
  Suez Diamond Limited

  
	
   

  	
  Trust Company Complex

  
	
   

  	
  Ajeltake Road

  
	
   

  	
  Ajeltake Island

  
	
   

  	
  Majuro, Marshall Islands MH96960

  

 

Gentlemen

 

Letter
of Guarantee No. M0902-806-LG-00057 dated 5 June 2008 (the “Original
Letter of Guarantee”) as amended and supplemented by a supplemental letter
dated 1 December 2008 (the “First Supplemental Letter of Guarantee” and
together with the Original Letter of Guarantee, the “Letter of Guarantee”)

 

We refer to:

 

1                             a
shipbuilding contract dated 2 June 2008 (the “Original Contract”)  as
amended and supplemented by addendum No.1 dated 17 November 2008 (“Addendum No. 1” and together with the
Original Contract referred to as the “Principal
Contract”)  and as
further amended by addendum No. 2 dated 17 December 2008 (“Addendum No. 2” and together with the
Principal Contract referred to as the “Contract”),
each made between Suez Diamond Limited (the “Buyer”)  and Hyundai Heavy Industries Co., Ltd.
(the “Builder”)  for the construction of one (1) 158,000
DWT class crude oil carrier bearing Hull No. 2301; and

 

2                             the
Original Letter of Guarantee and the First Supplemental Letter of Guarantee (a
copy of each of which is attached to this letter and marked as Exhibits “A” and
“B” respectively) issued by us in your favour and pursuant to which we have
guaranteed to you the refund of any advance payments made by you to the Builder
under the Contract.

 

We hereby confirm that we
have reviewed the terms of Addendum No. 2 and consent to the amendments to
the Principal Contract contained in Addendum No. 2 and agree that the
Letter of Guarantee and our obligations thereunder shall remain and continue in
full force and effect notwithstanding the said amendments to the Principal
Contract contained in Addendum No. 2 Provided however that the Letter of Guarantee
is hereby further amended by deleting in the fourth line of the third paragraph
of the Letter of Guarantee the words “US$46,669,207 (Say U.S. Dollars Forty Six
Million Six Hundred and Sixty Nine Thousand Two Hundred and Seven only)” and by
inserting in their place the words “US$46,789,323 (Say U.S. Dollars Forty Six
Million Seven Hundred and Eighty Nine Thousand Three Hundred and Twenty Three
only)”.

 

 

This supplemental letter
and any non-contractual obligations connected with this supplemental letter and
the Letter of Guarantee are governed by and shall be construed in accordance
with English law.

 

Yours faithfully,

 

 

For and on behalf of

THE EXPORT-IMPORT BANK OF KOREA

 

 

	
  By:

  	
   

  	
   

  

 

 

	
  SIGNED
  for an on
  behalf of  

  	
  )

  	
   

  
	
  SUEZ
  DIAMOND LIMITED

  	
  )

  	
   

  
	
  By: 

  	
  [ILLEGIBLE]

  	
  )

  	
  /s/ [ILLEGIBLE]

  
				

 

 

	
  SIGNED
  for and on
  behalf of 

  	
  )

  	
   

  
	
  HYUNDAI
  HEAVY INDUSTRIES CO., LTD

  	
  )

  	
   

  
	
  By:

  	
  E. C. HAN

  	
  )

  	
  /s/ E. C. HAN

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